Jiangling Motors Corporation, Ltd.
2021 Annual Report
2022-03
1
Chapter I Important Notes, Contents and Abbreviations
Important Note
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.
Chairman Qiu Tiangao, CFO Joey Zhu and Chief of Finance Department, Ding Ni,
confirm that the Financial Statements in this Annual Report are truthful and
complete.
All Directors were present at the Board meeting to review this Annual Report.
The year 2021 profit distribution proposal approved by the Board of Directors is
as follows:
A cash dividend of RMB 2.66(including tax) will be distributed for every 10 shares
held based on the total share capital of 863,214,000 shares, and there is no
stock dividend. The Board decided not to convert capital reserve to share capital
this time.
2
Contents
Chapter I Important Notes, Contents and Abbreviations .......................... 2
Chapter II Brief Introduction and Operating Highlight ................................ 5
Chapter III Management Discussion and Analysis ..................................... 10
Chapter IV Corporate Governance Structure .............................................. 30
Chapter V Environment and Social Responsibilities ................................. 59
Chapter VI Major events ................................................................................ 63
Chapter VII Share Capital Changes & Shareholders.................................... 69
Chapter VIII Preferred Shares ........................................................................ 74
Chapter IX Bond related Information .......................................................... 75
Chapter X Financial Statements ................................................................. 76
3
Catalog on Documents for Reference
1. Originals of 2021financial statements signed by legal representative, Chief
Financial Officer and Chief of Finance Department.
2. Originals of the Independent Auditor’s Reports signed by Independent
accountants and stamped by the accounting firm.
3. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in 2021.
4. The Annual Report in the China GAAP.
Abbreviations:
JMC or the Company Jiangling Motors Corporation, Ltd.
JIC Nanchang Jiangling Investment Co., Ltd.
Ford Ford Motor Company
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co., Ltd.
JMCH JMC Heavy Duty Vehicle Co., Ltd.
EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
4
Chapter II Brief Introduction and Operating Highlight
1. Company’s Information
Share’s name Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing Shenzhen Stock Exchange
Company’s Chinese
江铃汽车股份有限公司
name
English name Jiangling Motors Corporation, Ltd.
Abbreviation JMC
Company legal
Qiu Tiangao
representative
No. 2111, Yingbin Middle Avenue, Nanchang County,
Registered Address
Nanchang City, Jiangxi Province, P.R.C
Postal Code of
330200
Registered Address
Due to the relocation of JMC’s Qingyunpu site, the original
registered address " No. 509, Northern Yingbin Avenue,
Changes of Registered
Nanchang City, Jiangxi Province" was changed to "No.2111,
Address
Yingbin Middle Avenue, Nanchang County, Nanchang City,
Jiangxi Province" in October 2021.
No. 2111, Yingbin Middle Avenue, Nanchang County,
Headquarters Address
Nanchang City, Jiangxi Province, P.R.C
Postal Code of
330200
Headquarters Address
Website http://www.jmc.com.cn
E-mail relations@jmc.com.cn
2. Contact Person and Method
Board Secretary Securities Affairs Representative
Name Xu Lanfeng Quan Shi
No. 2111, Yingbin Middle Avenue, No. 2111, Yingbin Middle Avenue,
Address Nanchang County, Nanchang City, Nanchang County, Nanchang City,
Jiangxi Province, P.R.C Jiangxi Province, P.R.C
Tel 86-791-85266178 86-791-85266178
Fax 86-791-85232839 86-791-85232839
E-mail relations@jmc.com.cn relations@jmc.com.cn
3. Information Disclosure and Place for Achieving Annual Report
Stock Exchange Website for
http://www.szse.cn
Publication of JMC’s Annual Report
Newspapers and Website for China Securities, Securities Times, Hong Kong
5
Publication of JMC’s Annual Report Commercial Daily, cninfo (http://www.cninfo.com.cn)
Securities Department, Jiangling Motors
Place for Achieving Annual Report
Corporation, Ltd.
4. Changes of Registration
Organization Code 913600006124469438
Changes in the Main
No change.
Business since the Listing
On December 1, 1993, JMC A shares were listed on
Shenzhen Stock Exchange, while JMCG, the founder-
member, was the controlling shareholder of the Company.
On September 29, 1995 and November 12, 1998, JMC
issued additional 344 million B shares totally, while, after the
additional B share issuance, JMCG and Ford were the
controlling shareholders of the Company. On December 8,
2005, the 354.176 million JMC shares held by JMCG, the
former controlling shareholder, were transferred to Jiangling
Changes of Controlling
Motor Holdings Co., Ltd. After the transference, Jiangling
Shareholders
Motor Holdings Co., Ltd. and Ford were the controlling
shareholders of the Company.
In 2019, Jiangling Motor Holdings Co., Ltd., the former
controlling shareholder, was divided and separated into
Jangling Motor Holdings Co., Ltd. and Nanchang Jiangling
Investment Co., Ltd., and transferred the 354.176 million
JMC shares it held to Nanchang Jiangling Investment Co.,
Ltd. Presently, Nanchang Jiangling Investment Co., Ltd. and
Ford are the controlling shareholders of the Company.
5. Other Information
Accounting Firm Appointed by JMC for Audit
PricewaterhouseCoopers Zhong Tian LLP
Name
(‘PwC Zhong Tian’)
11/F, PricewaterhouseCoopers Center Link Square 2,202 Hu
Headquarters Address
Bin Road, Huangpu District, Shanghai 200021, PRC
Names of Signed
Lei Fang, Ye Dan
Accountants
The recommendation agency engaged by the Company executing the persistent
supervision responsibilities in the reporting period
□Applicable □√Not Applicable
The financial consultant engaged by the Company performing the duties of
persistent supervision and guidance in the reporting period
□Applicable □√Not Applicable
6
6. Main accounting data and financial ratios
Unit: RMB
Change
2021 2020 2019
(%)
Revenue 35,221,306,472 33,095,733,665 6.42% 29,173,636,262
Profit Attributable to the
Equity Holders of the 574,165,944 550,698,958 4.26% 147,812,078
Company
Net Profit Attributable to
Shareholders of Listed
Company After Deducting 29,628,811 405,188,533 -92.69% -308,254,449
Non-Recurring Profit or
Loss
Net Cash Generated From
1,760,193,010 3,698,342,828 -52.41% 2,736,867,238
Operating Activities
Basic Earnings Per Share
0.67 0.64 4.26% 0.17
(RMB)
Diluted Earnings Per
0.67 0.64 4.26% 0.17
Share (RMB)
Weighted Average Return
5.87% 5.13% 0.74% 1.42%
on Equity Ratio
Change
End of Year 2021 End of Year2020 End of Year 2019
(%)
Total Assets 26,359,084,120 28,185,185,418 -6.48% 24,298,528,593
Shareholders’ Equity
Attributable to the Equity 8,555,444,589 10,986,474,009 -22.13% 10,496,563,781
Holders of the Company
The lower of the Company’s net profit before and after deduction of non-recurring
gains and losses in the most recent three fiscal years is negative, and the audit
report of the most recent year shows that the Company’s ability to continue
operations is uncertain
□Yes □√No
The lower of the net profit before and after non-recurring gains and losses is
negative
□Yes □√No
7. Accounting data difference between China GAAP and IFRS
I. Differences in net profit and net assets in financial statements between in
accordance with international accounting standards and Chinese accounting
standards
7
□Applicable □√Not Applicable
II. Differences in net profit and net assets in financial statements betweenin
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable □√Not Applicable
8. Main accounting data quarterly
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 8,041,295,685 9,634,325,403 7,815,433,165 9,730,252,219
Profit Attributable to the
Equity Holders of the 277,530,327 127,683,728 72,235,853 96,716,036
Company
Net Profit Attributable to
Shareholders of Listed
Company After 150,125,194 -36,283,319 75,550,360 -159,763,424
Deducting Non-
Recurring Profit or Loss
Net Cash Generated
From Operating -2,012,581,942 2,082,499,791 -523,738,971 2,214,014,132
Activities
Whether or not the above mentioned financial indicators and the total number of
the company has disclosed the major difference between quarterly reports and
semi-annual report
□Yes □√No
9. Non-recurring profit and loss items and amounts
□√Applicable □Not Applicable
Unit: RMB
2021 2020 2019
Profit and loss of non-current assets disposal (including 5,107,814 -167,780,780 -4,212,722
the charge-off part of the asset impairment provision)
Gains on disposal of long-term equity investments 52,133,307 - -
Government subsidies included in the current profit and 552,831,370 277,756,664 466,818,134
loss
Capital occupation fee charged for non-financial 15,836,668 7,628,722 10,877,889
enterprises included in the current profit and loss
In addition to the effective hedging business related to -16,082,076 76,150,461 36,773,734
the normal operating business of the Company, holding
the gains and losses of fair value changes arising from
trading financial assets and trading financial liabilities,
as well as the investment income obtained from the
disposal of trading financial assets, trading financial
liabilities and available for sale financial assets
8
Return of the impairment provision for receivables with 2,250,000 6,540,000 -
a separate impairment test
Other non-operating income and expenses except the 2,027,076 5,869,080 -940,331
above
Other profit and loss items that meet the definition of 18,765,020 -10,493,560 -
non-recurring profit and loss
Less: Income tax impact amount 88,332,046 50,160,162 53,250,177
Total 544,537,133 145,510,425 456,066,527
Details of other profit and loss items that meet the definition of non-recurring
profit and loss
□Applicable □√Not Applicable
There is no any other profit and loss items that meet the definition of non-
recurring profit and loss in the Company.
The description of that the non-recurring profit and loss items listed in Corporate
Information Disclosure of Public Issuing Securities No.1 are defined as recurring
profit and loss items
□Applicable □√Not Applicable
The Company does not have a situation in which the non-recurring profit and loss
items listed in No.1 of Corporate Information Disclosure Announcement No.1 are
defined as recurring profit and loss.
9
Chapter III Management Discussion and Analysis
1. The industry situation of the company during the reporting period
Looking back to 2021, affected by economic recovery, industry prosperity, dual
carbon targets, the overall market bottomed out and rebounded, showing a trend
of high before and low after.
The overall market: the total sales volume of the whole year was 26,275,000
units, with a year-on-year growth of 3.8%. Influenced by economic recovery,
industry prosperity and dual carbon target, the control of the epidemic provided a
guarantee for the recovery of the auto market, but attention should also be paid
to the adverse factors such as chip shortage and rising raw material prices.
Commercial vehicle market: the annual sales volume of commercial vehicles was
4,793,000 units, down 6.6% year on year (among which, the cumulative sales
volume of light commercial vehicles was 3,189,000 units, down 0.6% year on
year), mainly affected by the overdraft of Stage VI switch and the overload
control, etc.
Passenger vehicle market: in the whole year, passenger vehicles showed
recovery growth, with the sales volume of 21,482,000 units, up 6.5% year-on-
year (among which, SUV totalled 10,101,000 units, with the highest growth rate
of 6.8%).
New energy vehicle market: the annual sales volume of new energy vehicles was
3,521,000 units, up 157.5% year on year, and the penetration rate increased to
13.4%, while the monthly penetration rate in December was close to 20%. The
overall new energy vehicle market was further shifted from policy-driven to
market-driven.
The commercial vehicle segment light bus that JMC is in, driven by double cycle,
E-commerce, the rapid development of boutique tourism and customized
passenger transport, will further promote the sales of this segment. In the future,
with the gradual liberalization of urban traffic restriction policy, people's pursuit of
a better life and the development of modern agriculture will further release the
demand for Pickup trucks. With the promotion of the dual carbon target, the rise
of green distribution, the construction of new urbanization and urban circle, the
structural freight demand will be further enlarged, which will be a stimulating
factor for the development of light truck market. With the continuous
improvement of people's income level and the personalized demand of the Z era
consumer group, the SUV market with high cost performance will continue to
grow. The market segment that JMC is in will be further developed in the future,
and continue to open up incremental space.
2. Company’s Core Business during the Reporting Period
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During the reporting period, the Company's main business is the production and
sale of commercial vehicles, SUVs and related components. The main products
include JMC light truck, Pickup, light bus, Yusheng SUV, Ford-branded light bus,
MPV and other commercial vehicles and SUV products. JMC also produces
engines, castings and other components. The Company takes high quality
development as the main line, focuses on value, lean operation, and transforms
from scale expansion development to lean value growth.
In 2021, JMC continued to expand the technical reservation and investment in
new products, smart connectivity, new energy and light weight, etc. Based on
vehicle, JMC developed autonomous driving and smart connectivity functions
and achieved more function expansion through the third space with vehicle as
the carrier. At the same time, JMC strengthens the construction of digitalization
operation capability, thus entering such key value fields as network socialization
and financial payment, etc., forming massive ecological circle and presenting
excellent overall performance in the industry.
Vehicle manufacturing and operation
□√Applicable □Not Applicable
Production and Sales Volume Information
Production Volume (Unit) Sales Volume (Unit)
YOY YOY
2021 FY 2020 FY change 2021 FY 2020 FY change
(%) (%)
By Products
Light Bus 100,168 94,945 5.50% 101,516 92,994 9.16%
Truck 118,117 128,949 -8.40% 118,105 128,875 -8.36%
Pickup 68,268 66,209 3.11% 67,906 65,204 4.14%
SUV 53,096 46,212 14.90% 53,481 44,025 21.48%
Total 339,649 336,315 0.99% 341,008 331,098 2.99%
By Region
China 339,649 336,315 0.99% 341,008 331,098 2.99%
Explanation on the above 30% year-on-year change of related date.
□Applicable □√Not Applicable
Component Kit System Construction
JMC owns in-house R&D and manufacturing capability for key components, with
such important components as engine, body parts, frame, wheel and front axle,
etc. developed and manufactured independently. For some other key
components, JMC keeps strategic cooperation with industry leading suppliers,
e.g. Bosch, Garrett, Yunnei Power, and ZF. JMC has established strategic
cooperation with such leading enterprises as CATL and Suzhou Inovance on
new energy development. For smart connectivity, JMC conducted diversified
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cooperation with such giants as Tencent, Hengrun, IFLYtek and Desay SV, etc.
for ecology development. JMC takes enabling customers successful as the vision,
and works with suppliers on providing customer-centric vehicle experience and
creating sustainable swift supply system. Through innovative thinking and
digitalized means, JMC established complete supplier admission, capability
enhancement and supplier control mechanism from the perspectives of
technology, quality, cost, delivery and service, etc., so as to effectively promote
the competitiveness improvement of supplier system.
Production and operation of auto parts during the reporting period
□Applicable □√Not Applicable
The Company carries out auto finance business
□Applicable □√Not Applicable
The Company carries out new energy vehicle related business
□√Applicable □Not Applicable
Production and operation of new energy vehicles and parts
Production Sales Volume Revenue
Product Category Capacity(Unit)
Volume(Unit) (Unit) (RMB)
New Energy Bus 50,000 190 186 32,817,563
Series
New Energy 50,000 785 793 116,617,579
Passenger Vehicles
and Pickup
New Energy Truck 30,000 1,427 1,178 159,171,122
130,000 2,402 2,157 308,606,264
Note: all new energy
Total vehicles are collinear
with corresponding fuel
vehicles.
New energy vehicle Subsidy
JMCdid not receive new energy vehicle subsidy in 2021.
3. Core Competitiveness Analysis
JMC is a Sino-foreign joint venture auto company with R&D, manufacturing and
sales operations. With leading position and advanced technology of commercial
vehicles, JMC is a China auto industry pioneer providing excellent products and
solutions to smart logistics, and a provider of Ford value products.JMC also is
certificated as a national high-tech enterprise, national innovative pilot enterprise,
national enterprise technology center, national industrial design center, national
intellectual property demonstration enterprises and national automobile export
base. JMC has been ranking among the top 100 most valuable global brands for
consecutive years. JMC light buses ranked No.1 in the segment with 30.5%
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market share. JMC Pickup ranked No.2 in the segment with 14.6% market share.
JMC light trucks ranked No.4 in the segment with 7.7% market share.
As No.1 brand in China, JMC light bus insists on taking customers as the center,
observes customer demand and light bus operation scenarios. JMC launched
European light bus product portfolio with high quality, excellent performance and
great cost performance, covering all scenarios of freight, passenger transport
and refitting. JMC is the pioneer in industry providing Uptime 100% solution,
continuing to help customers create value, thus achieving rapid growth of sales
volume. JMC’s light bus market share has been ranking No.1 in the segment for
consecutive seven years. Awarded the title of “Vehicle No.1 for Epidemic
Fighting”, JMC light bus continued to contribute to medical and health vehicles in
2021, developing a number of special vehicles such as nucleic acid sampling test
vehicle and Novel Coronavirus Nucleic acid testing mobile laboratory. JMC new
Transit negative pressure ambulance has also provided an important barrier for
the prevention and control of the epidemic around the Beijing Winter Olympics
and ensured the success of the Beijing Winter Olympics. As the flagship product
of the family, the new generation Transit Pro has up to 13 kinds of intelligent
driving auxiliary configurations. Equipped with iFLYTEK intelligent network
system, it makes driving more convenient and more enjoyable. Moreover,
"Uptime 100% solution" is used to meet users' 24-hour all-weather efficient
vehicle demand and service demand, leading the new era of digital light bus. As
a multi-functional light bus with No.1applicability, the new Transit is equipped
with Ward's global top ten engine, with the strongest boron steel body of light bus,
and the driving comfort of passenger car level, which can meet the diversified
use scenarios. Teshun is an economical light bus with No.1 cost performance. In
2021, Teshun Space King was launched with a great impact. Together with
freight head platform "Cargo Lala", Teshun showed its talents in the fast-winning
competition called “ceiling” of logistics competition and won high praise. JMC
light bus with strong brand strength and product strength, recognized by
mainstream authoritative media and official authorities, won a number of
authoritative awards, becoming the “grand slam” winner in light bus market.
JMC light truck has always been customer-oriented, with in-depth insight into
light truck operation scenarios, and constantly enriching product lines. In
response to the new blue license plate laws and regulations, lightweight iron and
aluminium containers were launched. Lightweight chassis and a series of weight
reduction measures were utilized on the new-generation light truck to enhance
product competitiveness.
As the leading brand in Pickup market, with the unremitting customer-centric
concept, JMC launched new Yuhu7 and Baodian products, creating Pickup life
mode with immersive experience. Yuhu7 possesses the highlights of strong
power, extraordinary quality, leading technology and fashionable life. In order to
expand the multiple application attributes of Pickup, to meet customers' higher
pursuit of fun in life, JMC launched the JFX Yuhu Life Family series activities.
Various activities interpreted Yuhu Life Family and enabled Pickup infinite
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possibilities. Based on the customers’ use habits in various scenarios, Baodian
provides low dock model and flat container structure, which enables design more
practical, goods moving more energy saving and overall style more fashionable.
JMC continues to promote the construction of brand-new PV channels. In order
to further deepen the cooperation between both parties, and also to facilitate the
implementation of Ford China 2.0 strategy, the Company and Ford Motor
Company established the JMC Ford Automobile Technology (Shanghai) Co., Ltd
(hereinafter referred to as “JMC Ford Technology”). In 2021, there have been
175 Family Space Ford experience stores, covering over 150 cities in China.
JMC Ford Technology shall insist on the belief of challenger, adheres to Ford
brand spirit of pioneering and innovation, challenges tradition and disrupts itself,
strengthens technical innovative capability, and creates outstanding customer
experience with differentiation, rejuvenation, personalization and profession.
Ford Everest is a high-performance all-road SUV, equipped with 2.3T Ward
global top ten engine + Ford 10AT transmission, professional non-carrying
chassis, intelligent all-time four-wheel drive and TMS all-road management
system. Ford Equator is a cost-effective medium and large SUV, equipped with
more than 20 configurations of Co-Pilot360 Chi Hang driving assistance system,
dual 12.3 screen equipped with Tencent TAI 3.0 voice intelligent vehicle system,
AR real navigation, bringing intelligent technology cockpit experience. In 2021,
the export volume of Ford Territory surged by 106% year on year. Ford Territory
won high recognition from overseas consumers, thus realizing the brand-new
layout of “in China, for China, for World”.
Ford Equator Sport, which is a new wide-body SUV pioneer with official orders
kicked off in 2022, not only adopts new Ford potential aesthetics with Mobileye
autonomous driving chip, but also leads the peers in hashrate, autonomous
driving and smart cabin, displaying the highly potential starting of JMC Ford
Technology, and providing the confidence to the new power of auto technology
company.
4. Core Business Analysis
I. Summary
2021 is still not free from the impact of the epidemic, but the entire automotive
industry is still tenacious forward. Looking back at the auto market in 2021, due
to the lack of chip, auto manufacturer reduced production volume, and
technology companies were optimistic about the auto market, so scrambled to
manufacture vehicles. The auto market strived to recover and grow in the face of
multiple challenges. In 2021, 26,275,000 vehicles were sold in China, up 3.8%
year-on-year.
During the reporting period, in order to respond to the intensified competition,
stricter homologation requirement and cost increase, JMC has been dedicated in
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improving the product quality, promoting new product development, controlling
operation cost and enhancing production efficiency. At the same time, JMC
launched a series of marketing proposals to actively cope with market risks. In
2021, JMC achieved sales volume of 341,008 units, including 101,516 light
buses, 118,105 trucks, 67,906 Pickups and 53,481 SUVs, with YOY growth of
2.99%. In 2021, the total production volume was 339,649 units, including
100,168 light buses, 118,117 trucks, 68,268 Pickups and 53,096 SUVs, with
YOY increase of 0.99%.
In 2021, the operation revenue reached RMB35.221 billion, up 6.42% year on
year. The operation cost was RMB 30.117 billion, up 9.44% year on year. The
marketing expense was RMB1.532 billion, with YOY decrease of 0.84%. The
administration expense was RMB1.152 billion, up 13.82% year over year. R&D
cost was RMB 1.709 billion, up 27.18% year on year. The financial expense was
RMB -296 million, down by 49.70% year over year.
In 2021, JMC planned the productivity of 320,000 units and the utilization rate
was 106%. In 2021, the investment in Fushan Plant project was RMB 345 million,
with 63% of the project completed.
II. Revenue and Cost
(a) Composition of Sales Revenue
Unit: RMB
2021 FY 2020 FY YOY
Proportion Proportion change
Amount Amount
(%) (%) (%)
Revenue 35,221,306,472 100% 33,095,733,665 100% 6.42%
By Industry
Automobile Industry 35,221,306,472 100% 33,095,733,665 100% 6.42%
By Products
Vehicle 32,317,182,099 91.75% 30,666,834,098 92.66% 5.38%
Components 2,101,505,690 5.97% 1,774,007,492 5.36% 18.46%
Automobile 111,360,531 0.32% 94,435,844 0.29% 17.92%
Maintenance Services
Material & Others 691,258,152 1.96% 560,456,231 1.69% 23.34%
By Region
China 35,221,306,472 100% 33,095,733,665 100% 6.42%
Sales model
Distribution 33,828,173,736 96.04% 31,731,165,121 95.88% 6.61%
Direct selling 1,393,132,736 3.96% 1,364,568,544 4.12% 2.09%
(b) Reach to 10% of Revenue or Profit by Industry, Product, Region or Sales
Model
□√Applicable □Not Applicable
15
Unit: RMB
YOY YOY gross
YOY Cost
Gross turnover margin
Turnover Cost Change
Margin change change
(%)
(%) (points)
By Industry
Automobile 35,221,306,472 30,117,454,367 14.49% 6.42% 9.44% -2.36%
Industry
By Products
Vehicle 32,317,182,099 27,809,982,305 13.95% 5.38% 8.47% -2.45%
By Region
China 35,221,306,472 30,117,454,367 14.49% 6.42% 9.44% -2.36%
If the Company’s core business scope is adjusted during the reporting period, the
Company’s core business data of last year need to be adjusted per the scope in
this year
□Applicable □√Not Applicable
(c) Whether the Company’s Goods Revenue Higher Than Service Revenue
□√Yes □No
Industry Item Unit 2021 2020 Change (%)
Sales Volume unit 341,008 331,098 2.99%
Automobile Production Volume unit 339,649 336,315 0.99%
Inventory Volume unit 10,188 11,821 -13.81%
Explanation on YOY change of over 30%
□Applicable □√Not Applicable
(d) Execution of the Company’s Signed Major Sales Contracts and Major
Purchase Contracts as of the Reporting Period
□Applicable □√Not Applicable
(e) Composition of Operating Cost
Product categories
Unit: RMB
Item 2021 FY 2020 FY
YOY
Product Proportion Proportion Change
Cost Cost
(%) (%) （%）
Vehicle Cost 27,809,982,305 92.34% 25,638,598,860 93.17% 8.47%
Components Cost 1,557,352,106 5.17% 1,250,772,343 4.54% 24.51%
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Automobile Cost 118,486,239 0.39% 95,282,459 0.35% 24.35%
Maintenance Services
Material & Others Cost 631,633,717 2.10% 533,856,251 1.94% 18.32%
(f) Whether the Consolidated Scope was Changed During the Reporting Period
□√Yes □No
The 60% equity of Taiyuan Jiangling Power Co., Ltd., a former wholly-owned
subsidiary of the Company, has been transferred to Yunnan Yunnei Power
Group Co., Ltd. in November 2021. "Taiyuan Jiangling Power Co., Ltd." has been
renamed as "Shanxi Yunnei Power Co., Ltd.". After the equity transfer, Shanxi
Yunnei Power Co., Ltd. was not included in the scope of the consolidated
statement of the Company.
In 2021, the Company and Ford Motor Company(“Ford”) subscribed to the capital
contribution of RMB102 million and RMB 98 million respectively to set up
Jiangling Ford Automobile Technology (Shanghai) Co., Ltd.("Jiangling Ford
Technology”), the total registered capital subscribed amount to RMB200 million.
The Company holds 51% of the shares of Jiangling Ford Technology and got the
control of Jiangling Ford Technology’s Board of Shareholders and Directors.
Jiangling Ford Technology is a subsidiary of the Company. As of December 31,
2021, Jiangling Ford Technology completed the business registration while not in
operation yet.
(g) Major Change or Adjustment on Business, Products or Services During the
Reporting Period
□Applicable □√Not Applicable
(h) Main Customers and Suppliers
Main Customers
Total sales value to top 5 customers（RMB） 5,601,678,211.00
Accounted for the proportion of JMC’s total annual turnover 15.90%
Included related party transaction accounted for the
9.75%
proportion of JMC’s total annual turnover
Top 5 Customers
Percentage of
Sales Value
No. Name of the Customer JMC’s Total
(RMB)
Turnover (%)
1 Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 3,009,681,649 8.55%
2 Zhejiang Jiangling Motors Sales Company 1,061,202,534 3.01%
3 Chengli Special Automobile Co., Ltd. 560,588,462 1.59%
4 Beijing Jinglingshun Auto Sales Company 545,373,013 1.55%
17
Jiangxi JMCG Specialty Vehicles Sales 424,832,553 1.20%
5
Service Co., Ltd.
Total 5,601,678,211 15.90%
Other introduction to main customers
□√Applicable □Not Applicable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and Jiangxi JMCG Specialty
Vehicles Sales Service Co., Ltd. are related parties of the Company.
Top 5 Suppliers:
Total purchase value from top 5 suppliers（RMB） 4,890,214,576
Accounted for the proportion of JMC’s total annual purchase
18.40%
amount
Included related party transaction accounted for the proportion of
10.73%
JMC’s total annual purchase amount
Percentage of
Purchase JMC’s Total
No. Name of the Supplier
Value (RMB) Annual Purchase
Amount (%)
Bosch Auto Diesel System (Wuxi) 1,238,849,375 4.66%
1
Company
Jiangxi Jiangling Special Purpose 985,020,418 3.71%
2
Vehicle Co., Ltd.
Nanchang Baojiang Steel Processing 967,549,307 3.64%
3
Distribution Co., Ltd.
4 Jiangxi Jiangling Chassis Co., Ltd. 898,433,987 3.38%
5 Bosch Powertrain Co., Ltd. 800,361,489 3.01%
Total 4,890,214,576 18.40%
Other introduction to main suppliers
□√Applicable □Not Applicable
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd., Nanchang Baojiang Steel
Processing Distribution Co., Ltd., and Jiangxi Jiangling Chassis Co., Ltd. are
related parties of the Company.
III. Expense
Unit: RMB
Description of
YOY
2021 2020 significant
Change
Changes
Distribution Expenses 1,531,808,043 1,544,737,028 -0.84%
Administrative Expenses 1,152,218,590 1,012,347,173 13.82%
18
mainly due to
the interest
Finance Income-net -295,755,557 -197,567,513 49.70% income from
bank deposits
increased.
R & D Expenses 1,709,014,171 1,343,812,092 27.18%
IV. Research & Development
The expected
Name of impact on the
Goals to be
main R&D Project purpose Project progress Company's
achieved
project future
development
Equator was launched
Enhance the in March 2021,
Increase the
competitiveness Equator Sport was
PV product Company's
of Jiangling Ford launched in January
program operating
passenger 2022, and the other
revenue.
vehicle products. PV products are in
progress.
Enhance the Increase the
Light bus
competitiveness Company's
product In progress.
of light bus operating
program
products. revenue.
Enhance the Increase the
Light truck
competitiveness Company's
product In progress.
of light truck operating
program
products. revenue.
Enhance the Increase the
Pickup
competitiveness Company's
product In progress.
of pickup operating
program
products. revenue.
Company R & D personnel
2021 2020 Change(%)
R&D staff (person) 2,315 2,393 -3.26%
R&D staff as % of total employees 17.90% 17.73% 0.17%
Educational structure of R&D personnel —— —— ——
Undergraduate 1,609 1,646 -2.20%
Master 559 593 -5.70%
Age composition of R&D personnel —— —— ——
Under the age of 30 602 816 -26.20%
30 ~ 40 years old 1,382 1,278 8.10%
19
R&D Investment
2021 2020 Change(%)
R&D investment (RMB) 1,886,139,707 1,664,559,872 13.31%
R&D investment as % of revenue 5.36% 5.03% 0.33%
Capitalization of R&D investment 177,125,536 320,747,780 -44.78%
Capitalization of R&D investment as % of
9.39% 19.27% -9.88%
R&D investment
Causes and impacts of major changes in the composition of R&D personnel
□Applicable □√Not Applicable
Major change of R&D investment as % of revenue
□Applicable □√Not Applicable
Major change of capitalization of R & D investment
□√Applicable □Not Applicable
Reason of the change is due to the decrease in the amount of R&D investment
eligible for capitalization in this year.
V. Cash Flow Analysis
Unit: RMB
Change
Item 2021 2020
(%)
Cash received from operating activities 39,740,902,264 35,570,910,131 11.72%
Cash outflows from operating activities 37,980,709,254 31,872,567,303 19.16%
Net cash flows from operating activities 1,760,193,010 3,698,342,828 -52.41%
Cash received from investing activities 2,915,954,321 15,608,879,156 -81.32%
Cash outflows from investing activities 2,994,592,220 17,522,317,586 -82.91%
Net cash flows from investing activities -78,637,899 -1,913,438,430 95.89%
Cash received from financing activities 1,484,497,639 2,291,211,222 -35.21%
Cash outflows from financing activities 4,718,956,565 1,892,097,149 149.40%
Net cash flows from financing activities -3,234,458,926 399,114,073 -910.41%
Net increase/(decrease) in cash and
-1,552,903,815 2,184,018,471 -171.10%
cash equivalents
Explanation on the major factors regarding major change of related data
□√Applicable □Not Applicable
Year on year decrease of the net cash flow generated by operating activities was
due to the increase in payment for goods purchased.
.
Year on year increase of the net cash flow from investment activities was mainly
due to the reduced cash payments on current investments.
20
Year on year decrease of the net cash flow from financing activities was mainly
due to the reduction in the current loan and the payment of 2020 annual
dividends.
.
Year on year decrease of the net increase in cash and cash equivalents was
mainly attributable to the payment of 2020 annual dividends.
Explanation on significant difference between net cash generated from operating
activities and net profit during the reporting period.
□Applicable □√Not Applicable
5. Non- core business analysis
□Applicable □√Not Applicable
6. Analysis of Assets and Liabilities
I. Major changes
Unit: RMB
YOY
End of 2021 Beginning of 2021 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash
9,569,051,314 36.30% 11,121,955,129 39.46% -3.16%
equivalents
Accounts
2,994,798,227 11.36% 2,999,883,212 10.64% 0.72%
receivables
Inventories 1,974,728,632 7.49% 2,086,605,692 7.40% 0.09%
Long-term equity
257,251,255 0.98% 39,496,548 0.14% 0.84%
investments
Fixed assets 6,029,302,031 22.87% 5,165,956,410 18.33% 4.54%
Construction in
448,338,672 1.70% 1,535,497,770 5.45% -3.75%
progress
Right-of-use
306,225,810 1.16% 28,405,890 0.10% 1.06%
assets
Short-term
300,000,000 1.14% 500,000,000 1.77% -0.63%
borrowings
Contract
272,274,177 1.03% 558,526,846 1.98% -0.95%
liabilities
Long-term
2,087,537 0.01% 2,563,666 0.01% -
borrowings
Lease liabilities 263,409,414 1.00% 18,998,952 0.07% 0.93%
Foreign assets account for a relatively high proportion
□Applicable □√Not Applicable
II. The fair value of the assets and liabilities.
21
Unit: RMB
1.Trading
financial assets
financial 2.Receivables Financial
Item (excluding Subtotal
assets financing liabilities
derivative
financial assets)
Beginning of
803,892,985 815,583,669 1,619,476,654 3,716,727
the period
Loss/profit in
fair value in the -3,650,656 0 -3,650,656 6,987,892
period
Cumulative
changes in fair
0 0 0 0
value recorded
into equity
Impairment in
0 0 0 0
the period
Purchase in the
1,800,000,000 3,073,998,320 4,873,998,320 0
period
Sell in the
2,500,000,000 3,688,070,319 6,188,070,319 0
period
Other changes 0 0 0 0
End of the
100,242,329 201,511,670 301,753,999 10,704,619
period
Other change
None.
Whether there is a significant change in the measurement attributes of the
Company's main assets during the reporting period
□Applicable √Not Applicable
III. Restriction on Assets Rights as of the End of the Reporting Period
There was no restriction on rights of major assets as of the end of the reporting
period.
7. Investment Analysis
I. Summary
□Applicable □√Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□√Applicable □Not Applicable
22
Unit: RMB
Name of investee company Jiangling Ford Motor Technology (Shanghai) Co.,
Ltd.
Main business Engineering and technical research and
experimental development, sales of vehicles, new
energy vehicles, auto parts, electric accessories of
new energy vehicles, plug-in hybrid professional
engines, charging piles, centralized rapid charging
stations, new energy vehicles for electric facilities,
new energy vehicles production and testing
equipment; Technical consulting and business
information consulting in the field of automotive
science and technology; Economic information
consulting, marketing planning, corporate image
planning, etc.
Investment way Establish a new company
Investment amount 102,000,000
Proportion of shareholding 51.00%
Investment source Self-funded
Partner Ford Motor Company
Investment horizon 30 years
Product type Not applicable
Progress as of the balance Business registration was completed on December
sheet date 27,2021.
Expected earnings -
Profit and loss of Not yet in operation.
investment in the current
period
Whether litigation is No
involved
Date of disclosure September 27, 2021
Index The announcement (No. 2021-054) was published
on the website: www.cninfo.com.cn.
III. Ongoing Major Non-Equity Investment during the Reporting Period
□√Applicable □Not Applicable
Project Name Fushan Plant
Investment Method Self-built
Fixed Assets (Y/N) Y
Industry Automobile Industry
Spending in 2021 (RMB) 345,225,886
Cumulative Actual Investment (RMB) 1,388,435,757
Investment source Self-funded
Progress 95%
23
Anticipated income -
Accumulated earnings realized by the end of -
the reporting period
Reasons for missed schedule and projected Not Applicable
earnings
Disclosure date November 15th, 2017
Index *
*The announcement (No. 2017-044) was published on November 15, 2017 on
the website: www.cninfo.com.cn.
IV. Financial Assets Investment
(a) Stock Investment
□Applicable □√Not Applicable
There was no financial assets investment on the reporting period.
(b)Derivative Investment
□Applicable □√Not Applicable
There was no derivative investment on the reporting period.
V. Usage of Raised Fund
□Applicable □√Not Applicable
There was no usage of raised fund on the reporting period.
8. Sales of Major Assets and Equity
I. Sale of Major Assets
□Applicable □√Not Applicable
There was no sale of major assets on the reporting period.
II. Sales of Major Equity
□√Applicable □Not Applicable
Yunnan Yunnei Power Group
Counterparty Volvo Lastvagnar Aktiebolag
Co., Ltd.
60% equity of Taiyuan Jiangling 100% equity of JMC Heavy Duty
Sold equity Power Co., Ltd., a wholly-owned Vehicle Co., Ltd., a wholly
subsidiary owned subsidiary of JMC
Date of sale November 5, 2021 The deal is still in progress.
Transaction price
360,000 781,400
(RMB thousand)
Net profit contributed
by the equity to the
listed company from RMB -120,947.4thousand in
RMB -38,086.8thousand
the beginning of the 2021.
current period to the
selling date
24
Introduce external strategic
Impact of the sale on One of the measures to achieve
partner to develop heavy engine
the Company the Company's strategic vision.
business.
Proportion of net
profit contributed by
equity sale to the total 9.08% The deal is still in progress.
net profit of the listed
company
Equity sale pricing
Public bidding process. Public bidding process.
principle
Whether it is a related
No. No.
party transaction
Association with the
No relationship. No relationship.
counterparty
Whether all the equity
involved has been Yes. No.
transferred
Whether the plan is
implemented as
scheduled, if not, the
Yes. Yes.
reason and the
measures taken by
the company
Date of disclosure January 7, 2021 August 24, 2021
The announcement (No. 2021- The announcement (No. 2021-
Index 002) was published on the 047) was published on the
website: www.cninfo.com.cn website: www.cninfo.com.cn
9. Analysis of major shareholding companies
□√Applicable □Not Applicable
Operating Results of Main Subsidiaries and Joint-Stock Companies whose
impact on JMC’s net profit more than 10%
Unit: RMB’000
Jiangling Motors Sales JMC Heavy Duty Vehicle
Name of companies
Corporation, Ltd Co., Ltd.
Type of companies Subsidiary Subsidiary
Production and sales of
Sales of vehicles and
Main business automobiles, engines and
service parts.
other automotive parts
Registered capital 50,000 1,323,793
Assets 4,898,230 832,562
Net assets 258,369 792,043
Turnover 30,749,374 258
25
Operating profit 35,649 -121,391
Net profit 28,189 -120,947
Acquisition and disposal of the subsidiaries
□√Applicable □Not Applicable
Acquisition and disposal
Name of Companies Influence
of the subsidiaries
60% equity of Taiyuan Introducing external strategic partner to
Taiyuan Jiangling Power Jiangling Power Co., Ltd. develop heavy engine business. This
Co., Ltd. was sold through public transaction has no significantimpact on the
bidding process. Company’s profit in the current period.
This external investment was invested by
the Company's own funds, and it is not
Jiangling Ford Motor expected to have a significant adverse
JMC and Ford Motor
Technology (Shanghai) Company jointly invested.
Co., Ltd. impact on the Company's financial position
and operating results in the current period
and future.
Description of the main holding and participating companies
None.
10. Structured Entities Controlled by JMC
□Applicable □√Not Applicable
11. Outlook
I. Industry Competition and Development Trend
(I) Industry Trend
Looking ahead to 2022, the economic growth will return to the potential rate with
higher downturn pressure. It’s predicted that there will be more room for marco
policy easing, which will form cross-cycle adjustment to the economy. There will
be low growth before high growth in the whole year, with 5.5% growth rate. The
tone of stabilizing growth is beneficial to the bulk commodity like automobile.
The overall market: the annual sales volume was 27.5 million units, with YOY
increase of 3%. The policy on stabilizing growth is conducive to the stable growth
of bulk commodity.
Commercial Vehicle market: the annual sales volume was 4.5 million units, with
YOY decrease of 6%. The switch of emission homologation, the normalized
advance of overload governance and the stricter environmental protection rules
result in rationalization of CV market.
Passenger Vehicle market: the annual sales volume was 23 million units, up 5.5%
year on year. The restocking is expected to propel for sales volume rise.
26
New Energy Vehicle market: the annual sales volume was 5 million units, with
YOY growth of 56%. There are high supply and demand of NEVs, which shall
continue.
The economic growth rate was adjusted, and power was being switched. China’s
auto market ended a three-year decline. The trend of electrification, connectivity
and intelligence in auto industry has been established. JMC shall keep the
strategy firm, insist on taking customers as the center and optimize business
structure, with technology studied in depth, marketing service updated and
ecological cooperation deepened.
(II) Company Strategy
JMC adheres to the vision of Becoming Leader in LCV and Provider of Ford
Value Product, and the value of Integrity, Dedication, Innovation and
Collaboration. Commercial vehicle is targeted at becoming the integrated
supplier of product and service for urban and mainline logistics. Passenger
vehicle is to look for breakthrough and great development in medium and small
size market. JMC is to center around the main line of high-quality development,
focus on value and operation in a lean way, thus transforming from scale
expansion development mode to lean value growth mode. JMC will focus on key
business and be dedicated in its segments. With customer-centric concept and
improved all-value chain market awareness, JMC is to actively make its products
the leaders in segments. JMC is also following the new development trend of
auto industry, promoting the CASE strategy of Connectivity, Artificial, Sharing
and Electrification. JMC has planned for New Energy Vehicle, smart connectivity,
autonomous driving and other key area. Through overall coordination and CASE
integration, JMC accelerates to build the business ecology system with global
competitiveness that looks into the future.
(III) Operation Plan
In 2022, JMC is targeting at the sales volume of 380,000 units, with business
revenue of about RMB 39 billion, up 11% respectively year on year. In order to
improve the revenue and profitability, JMC is committed to the following in 2022:
i. to continue to consolidate and improve the leading advantages in LCV
segment, to deepen LCV marketing system and dealer capability build, with
brand reputation improved;
ii. through establishing a PV Joint Venture, to accelerating the expansion of PV
business and channel capability improvement, with customer experience
innovated, “JMC Ford” brand positioning specified and star product created;
iii. to insist on taking customers as the center, and deeply understands market
changes and customer demands, with continuous innovation and efficient
synergy, thus providing the best product and service to customers;
iv. to launch Ford Equator Sport, next-generation Teshun, new Transit SVO and
brand-new light truck, etc., with high quality. And meanwhile, to improve
product competitiveness and complete PV and LCV product line-up;
27
v. to continue the promotion of digital transformation and improves customer
experience with proactive digital service and predictive service system;
vi. to create the new business concept of “Lifelong Partner” and construct
operation ecology with customized product and integrated service;
vii. to continue to reduce the cost and improve efficiency with lean management,
and also to build efficient and swift team to lay solid foundation for the overall
strategy development; and
viii. to expand the whole vehicle export and component sales.
(IV) Potential Risks and Solutions
In 2022, there are still repeated outbreaks of the epidemic in the world and also
uncertainties in the recovery and growth of world economy. Guided by the long-
term strategic planning of "double cycle" new development pattern, dual carbon
goals and common prosperity, China's economy is expected to start a round of
overall optimization of the demand structure, but it faces short-term economic
costs. With the rise of start-ups in vehicle manufacturing, and due to stricter
regulations, rising raw material prices and tight chip supply, the industry
competition is further intensified, which brings great challenges to the Company's
operation. In order to maintain robust development, JMC will focus on the
following:
i. JMC will continue to have a good control on epidemic and steadily promote
the company’s production and sales;
ii. Being customer-centric, JMC will make in-depth insight into customer
demands and market changes, with new business growth point identified and
opportunities grasped in the disruptive industry;
iii. JMC is to accelerate the digital transformation and utilize digital marketing
means to empower channel capability expansion with customer experience
enhanced;
iv. JMC will complete CV BEV strategy and construct brand-new LCV ecology
through the cooperation with leading logistic company / freight platform;
v. JMC will continue the cost reduction and efficiency improvement with supplier
capability and vehicle quality improved;
vi. JMC is going to strengthen the Company governance and strictly abide by
national laws and regulations with risk assessment and control mechanism
completed; and
vii. JMC is to accelerate business process digitalization and increase operation
efficiency by establishing swift work team.
The company will focus on LCV with SUV as the support. And meanwhile, JMC
is going to push for in-depth scientific innovation and continue to consolidate the
advantages of commercial vehicles, thus being strong in passenger vehicle. The
Company shall accelerate the development of new energy vehicles with focus on
marketing and service, and speed up the digital transformation of each function
so as to improve customer experience. By expanding new business and profit
mode, the Company is to construct the sustainable ecology platform. By
strengthening sales channel construction, JMC will enhance the market
reputation and customer experience. At the same time, JMC also focuses on new
28
product development and launch the competitive products with required quality
and cost target as soon as possible, thus expanding the market share and
profitability, supporting the Company’s high-quality development with stable cash
flow.
12. External Research, Communication, and Media Interview to the Company
□√Applicable □Not Applicable
Date Communication Type of Information
Method Object Discussed and
Materials offered
April8, 2021 Other Individual JMC Operating
Investors highlights
May 14, 2021 Other Individual JMC Operating
Investors highlights
29
Chapter IV Corporate Governance Structure
1. Status of the Corporate Governance in JMC
During the reporting period, the Company strictly abided by the Company Law, the
Securities Law, the Code of Corporate Governance for Listed Companies in China,
the Rules Governing Listing of Stock on Shenzhen Stock Exchange, as well as
relevant laws and regulations, to carry out corporate governance activities and
continued to improve its corporate governance.
Whether there are significant differences between the actual situation of corporate
governance in the company and the laws, administrative regulations and that of
regulations on corporate governance of listed companies promulgated by CSRC
□Yes□√No
There is no significant difference between the actual situation of corporate
governance in JMC and the laws, administrative regulations and that of
regulations on corporate governance of listed companies promulgated by CSRC.
2. Separation between JMC and the Controlling Shareholders and actual controller
in respect of Personnel, Assets and Finance, and Independence concerning
Organization and Business:
(1) With respect to personnel matters, the positions of chairman and president are
held by different individuals; JMC’s senior management do not hold positions other
than director positions with its controlling shareholders; JMC senior management
personnel are paid by JMC; labor, personnel matters and compensation
management of JMC are completely independent.
(2) With respect to assets, JMC assets are complete. The assets utilized by JMC,
including production system, supporting production system and peripheral facilities,
and non-patent technology, are owned and/or controlled by JMC.
(3) With respect to finance, JMC has an independent finance department and
independent accounting system, and has a uniform and independent accounting
system and financial control system for its branches and subsidiaries. JMC has its
own bank accounts, and there are no bank accounts jointly owned by JMC and its
controlling shareholders. JMC pays taxes independently in accordance with
relevant laws.
(4) With respect to organization, JMC’s organization is independent, complete and
scientifically established with a sound and efficient operating mechanism. The
establishment and the operation of JMC’s corporate governance are strictly
carried out per the Articles of Association of JMC. Production and administrative
management are independent from the controlling shareholders. JMC has
established an organization structure that meets the need for ongoing
development.
(5) With respect to business, JMC has independent purchasing, production and
sales systems. The purchasing, production and sales of main materials and
products are carried out through its own purchasing, production & sales functions.
JMC is independent from the controlling shareholders in respect to its business,
30
and has independent and complete business and self-sufficient operating
capability.
3. Horizontal Competition
□Applicable □√Not Applicable
4 Introduction to the Shareholders’ Meetings Held in the Reporting Period
(1) Index to the Shareholders’ Meeting in the reporting period
In 2021, the Company has hold four Shareholders’ Meetings, and the relevant
contents are as follows:
Meeting 1：2021 First Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.92%
Convening date: January 25, 2021
Disclosure date: January 26, 2021
The meeting resolution: approved the proposal on the capital increase to JMC
Heavy Duty Vehicle Co., Ltd., a wholly owned subsidiary of JMC.
Meeting2：2021 Second Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.44%
Convening date: May 25, 2021
Disclosure date: May 26, 2021
The meeting resolution: approved the proposal on the sale of 100% of the equities
of JMC Heavy Duty Vehicle Co., Ltd., a wholly owned subsidiary of JMC, through
the public bidding process.
Meeting3：2020 Annual Shareholders’ Meeting
The meeting type: annual shareholders’ meeting
Investor participation ratio: 75.92%
Convening date: June 25, 2021
Disclosure date: June 26, 2021
The meeting resolutions:
1. approved the 2020 Work Report of the Board of Directors of JMC;
2. approved the 2020 Work Report of the Supervisory Board of JMC;
3. approved the 2020 Financial Statements of JMC;
4. approved the Proposal on JMC Profit Distribution for Year 2020;
5. approved the Proposal on Retaining PricewaterhouseCoopers Zhong Tian
CPAs LLP as External Auditor from 2022 to 2024 with Annual Audit Fee of
RMB 1.88 million;
6. approved the Proposal on Retaining PricewaterhouseCoopers Zhong Tian
CPAs LLP as the C-Sox Auditor from 2022 to 2024 with Annual Audit Fee of
RMB 440 thousand;
7. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with JMCG Finance Company;
8. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Jiangling Motors Group Co., Ltd. and its subsidiaries;
9. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Ford Motor Company and its subsidiaries;
31
10. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its
subsidiaries;
11. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with China South Industries Group Corporation and its subsidiaries;
12. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Jiangxi Huaxiang Auto Components Co., Ltd.;
13. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
14.approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with GETRAG (Jiangxi) Transmission Company;
15. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
16. approved the Proposal on the Y2021 Routine Related Party Transaction
Framework with Nanchang Faurecia Emissions Control Technologies Co., Ltd.;
17. approved the Proposal on Electing Ms. Xiong Chunying as a Director of the
Tenth Board of Directors of the Company.
Meeting 3：2021 Third Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.13%
Convening date: October 18, 2021
Disclosure date: October 19, 2021
The meeting resolutions:
1. approved the Proposal on Amendment to the Articles of Association of JMC
(Year 2021);
2. approved the Proposal on Electing Mr. Yu Zhuoping as an Independent Director
of the Tenth Board of Directors of JMC;
3. approved the Proposal on Electing Mr. Zhang Yangyang as a Supervisor of
JMC;
4.01. approved the Proposal on Electing Mr. Yuan Mingxue as a Director of the
Tenth Board of Directors of JMC;
4.02. approved the Proposal on Electing Mr. Ryan Anderson as a Director of the
Tenth Board of Directors of JMC.
(2) Special Shareholders’ Meeting convened by preferred-shareholders whose
voting rights were restored
□Applicable □√Not Applicable
5.Directors, supervisors and senior managers
(1) Basic information
Shares at Share Share
the Stock Change s at
Gende Term of restricte
Name Position Age period- option in the the
r Office d stock
beginnin s reportin period-
g g period end
2020.06.19
Qiu
Chairman Male 55 - 0 0 0 0 0
Tiangao
2023.06.18
Manto Vice 2021.06.25
Male 59 0 0 0 0 0
Wong Chairman -
32
2023.06.18
2021.10.18
Ryan
Director Male 48 - 0 0 0 0 0
Anderson
2023.06.18
2021.06.25
Xiong Director & Femal
57 - 1,200 0 0 0 1,200
Chunying President e
2023.06.18
2020.06.19
Jin Director &
Male 54 - 0 0 0 0 0
Wenhui EVP
2023.06.18
2021.10.18
Yuan
Director Male 53 - 0 0 0 0 0
Mingxue
2023.06.18
2020.06.19
Chen Independen
Male 42 - 0 0 0 0 0
Jiangfeng t Director
2023.06.18
2020.06.19
Wang Independen Femal
43 - 0 0 0 0 0
Yue t Director e
2023.06.18
2021.10.18
Yu Independen
Male 61 - 0 0 0 0 0
Zhuoping t Director
2023.06.18
2020.06.19
Chief
Xiao Hu Male 53 - 0 0 0 0 0
supervisor
2023.06.18
2021.10.18
Zhang
Supervisor Male 45 - 0 0 0 0 0
Yangyang
2023.06.18
2020.06.19 0 0
Zhang
Supervisor Male 52 - 40 0 40
Jian
2023.06.18
2022.03.16
Ma Jian Supervisor Male 46 - 0 0 0 0 0
2023.06.18
2022.03.16
Femal
Li Yanling Supervisor 44 - 0 0 0 0 0
e
2023.06.18
2021.10.01
Joey Zhu CFO Male 39 - 0 0 0 0 0
2023.06.18
2020.06.19
Ding
VP Male 49 - 0 0 0 0 0
Wenmin
2023.06.18
2021.02.01
Erik
VP Male 47 - 0 0 0 0 0
Hermann
2023.06.18
2020.06.19
Wu
VP Male 47 - 0 0 0 0 0
Xiaojun
2023.06.18
2021.04.01
Xu VP &Board Femal
52 - 0 0 0 0 0
Lanfeng Secretary e
2023.06.18
2020.06.19
Liu Femal
VP 59 - 0 0 0 0 0
Shuying e
2023.06.18
2020.08.01
Jerry Lin VP Male 45 0 0 0 0 0
-
33
2023.06.18
2021.04.01
Liu
VP Male 48 - 0 0 0 0 0
Rangpo
2023.06.18
2021.09.01
Xiang
VP Male 46 - 0 0 0 0 0
Dongping
2023.06.18
2021.10.01
Wu Femal
VP 45 - 0 0 0 0 0
Jiehong e
2023.06.18
2021.12.01
Yang
VP Male 41 - 0 0 0 0 0
Shenghua
2023.06.18
2020.06.19
Anning Ex-Vice
Male 60 - 0 0 0 0 0
Chen Chairman
2021.06.25
2020.06.19
Wan
Ex-Director Male 56 - 0 0 0 0 0
Jianrong
2021.10.18
Thomas 2020.06.19
Peter Ex-Director Male 44 - 0 0 0 0 0
Hilditch 2021.10.18
2020.06.19
Manto Ex-
Male 59 - 0 0 0 0 0
Wong President
2021.06.25
Ex- 2020.06.19
Li Xianjun Independen Male 54 - 0 0 0 0 0
t Director 2021.10.18
2020.06.19
Alvin Qing Ex-
Male 64 - 0 0 0 0 0
Liu Supervisor
2021.10.18
2020.06.19
Ding Ex-
Male 52 - 20 0 0 0 20
Zhaoyang Supervisor
2022.03.15
2020.06.19
Chen Ex-
Male 48 - 0 0 0 0 0
Guang Supervisor
2022.03.15
2020.06.19
Femal
Li Weihua Ex-CFO 44 - 0 0 0 0 0
e
2021.09.30
2020.06.19
Wan
Ex-VP Male 60 - 0 0 0 0 0
Hong
2021.03.31
2020.06.19
Li Xiaojun Ex-VP Male 46 - 0 0 0 0 0
2021.09.01
2020.06.19
Milton
Ex-VP Male 47 - 0 0 0 0 0
Wong
2021.01.31
2020.06.19
Luo Femal
Ex-VP 43 - 0 0 0 0 0
Xiaofang e
2021.11.30
2020.06.19
Yu
Ex-VP Male 53 - 0 0 0 0 0
Jianbin
2021.12.17
2021.04.01
Xiong Yi Ex-VP Male 46 0 0 0 0 0
-
34
2021.08.31
Total 1260 0 0 0 1260
Whether there are any outgoing Directors and Supervisors and the dismissal of
senior management personnel during the reporting period?
□√Yes □No
Changes of Directors, Supervisors and Senior Management
□√Applicable □Not Applicable
Name Position Status Date Reason
Manto Vice
elected 2021.06.25 Work need.
Wong Chairman
Xiong
Director elected 2021.06.25 Work need.
Chunying
Ryan
Director elected 2021.10.18 Work need.
Anderson
Yuan
Director elected 2021.10.18 Work need.
Mingxue
Yu Independent
elected 2021.10.18 Work need.
Zhuoping Director
Zhang
Supervisor elected 2021.10.18 Work need.
Yangyang
Ma Jian Supervisor elected 2022.03.16 Work need.
Li Yanling Supervisor elected 2022.03.16 Work need.
Xiong
President employment 2021.05.01 Appointment due to work need.
Chunying
Joey Zhu CFO employment 2021.10.01 Appointment due to work need.
Eric
VP employment 2021.02.01 Appointment due to work need.
Hermann
Xu Lanfeng VP employment 2021.04.01 Appointment due to work need.
Liu Rangpo VP employment 2021.04.01 Appointment due to work need.
Xiong Yi VP employment 2021.04.01 Appointment due to work need.
Xiang
VP employment 2021.09.01 Appointment due to work need.
Dongping
Wu Jiehong VP employment 2021.10.01 Appointment due to work need.
Yang
VP employment 2021.12.01 Appointment due to work need.
Shenghua
Ex-Vice
Aning Chen Leave 2021.06.25 Work rotation.
Chairman
Wan
Ex-Director Leave 2021.10.18 Work rotation.
Jianrong
Thomas
Peter Ex-Director Leave 2021.10.18 Work rotation.
Hilditch
Manto
Ex-President Leave 2021.06.25 Work rotation.
Wong
Ex-
Li Xianjun Independent Leave 2021.10.18 The term of office has expired.
Director
Alvin Qing Ex- Leave 2021.10.18 Work rotation.
35
Liu Supervisor
Ding Ex-
Leave 2022.03.15 Work rotation.
Zhaoyang Supervisor
Chen Ex-
Leave 2022.03.15 Work rotation.
Guang Supervisor
Li Weihua Ex-CFO Leave 2021.09.30 Work rotation.
Wan Hong Ex-VP Leave 2021.03.31 Retired.
Li Xiaojun Ex-VP Leave 2021.08.31 Work rotation.
Milton
Ex-VP Leave 2021.01.31 Work rotation.
Wong
Luo
Ex-VP Leave 2021.11.30 Work rotation.
Xiaofang
Yu Jianbin Ex-VP Leave 2021.12.16 Work rotation.
Xiong Yi Ex-VP Leave 2021.08.31 Resign.
(2). Employment
Particulars about working experience of Directors, Supervisors and senior
management:
Directors:
Mr. Qiu Tiangao, born in 1966, holds a Bachelor Degree in Mechanical
Manufacturing and a Master Degree in Industrial Engineering from Huazhong
University of Science and Technology, and is Chairman of JMCG, Chairman of
Nanchange Jiangling Investment Co., Ltd., and Chairman of JMC. Mr. Qiu
Tiangao held various positions including General Manager, Chairman of
Nanchang Gear Co., Ltd., Chairman of Jiangxi JMCG Gear Co., Ltd., Vice
President of Jiangling Motor Holdings Co., Ltd., and Director & General Manager
of JMCG.
Mr. Manto Wong, born in 1962, holds a Bachelor’s Degree in Computer
Engineering and a Master’s Degree in Business Administration from the University
of Michigan, U.S.A., and is General manager of Commercial Vehicle Division for
Ford Motor (China) Ltd., andVice Chairman of JMC. Mr. Manto Wong held various
positions including Manger of U.S. Market Analysis Department of Ford, Chief
Financial Officer of JMC, President of JMC, Chief Financial Officer of Ford Japan
operations, Director of Business Strategy for Asia Pacific of Ford, Vice President
and Chief Financial Officer for Ford Motor (China) Ltd., and Vice President of
Finance for Chang’an Ford, President of JMC.
Mr. Ryan Anderson, born in 1973, holds a Bachelor’s degree in Economics from
University of Chicago and a Master’s degree in Business Administration from
University of Michigan - Ann Arbor, and is Director and CFO of Ford Motor (China)
Ltd., Director of JMC, Director of Chang’an Ford Automobile Limited and Fuqi
Trading (Shanghai) Ltd., and Chairman of Ford Blue Mache Technology (Nanjing)
Co., Ltd. Mr. Ryan Anderson has held various positions including Treasurer of
Ford Europe, Product Development Controller, Marketing & Sales Controller of
Ford Asia Pacific, Director of Corporate Financial Planning and Analysis for Ford
Motor Company.
Ms. Xiong Chunying, born in 1964, senior engineer, holds a Bachelor Degree in
Automobile Engineering from Jiangsu Engineering College, a Master Degree in
36
Industrial Economics from Jiangxi University of Finance and Economics and an
EMBA Degree from China Europe International Business School, and is President
and a Director of JMC, in charge of the Company's product research and
development. Ms. Xiong Chunying held various positions including Chief of
Quality Management Department, Assistant to the President, Vice President, and
Director for JMC.
Mr. Jin Wenhui, born in 1967, senior engineer, holds a Bachelor’s Degree in
Mechanical Manufacturing, a Master’s Degree in Mechanical Engineering from
Huazhong University of Science and Technology and an EMBA Degree in China
Europe International Business School, and is Director &First Executive Vice
President of JMC, in charge of marketing sales & service, and assist the President
to manage the Company. Mr. Jin Wenhui held various positions including Chief of
Manufacturing Department, Assistant to the President, Vice President for JMC,
Director, General Manager of JMCG Jingma Motors Co., Ltd., and Executive Vice
General Manager of Jiangxi-Isuzu Motors Co., Ltd., and Executive Vice President
of JMC.
Mr. Yuan Mingxue, born in 1968, holds a Bachelor’s degree in Auto Engineering
from Beijing Institute of Technology and an EMBA from China Europe International
Business School, and is Deputy Secretary of the Party Committee, Chairman of
the Labor Union, President of Chang'an Automobile University for Chongqing
Chang’an Automobile Company Limited and Director of JMC. Mr. Yuan Mingxue
has held various positions including Assistant to the President of Chang’an Auto
and Executive Vice President of Jiangling Holdings Limited Company, Assistant to
the President and Director of Strategy Planning Department for Chang’an Auto,
Assistant to the President and Director of Overseas Development Department for
Chang’an Auto, Vice President, Executive Vice President of Chang’an Auto.
Mr. Chen Jiangfeng, born in 1979, holds a Bachelor’s Degree and Master’s
Degree in Law from International Law Department, Foreign Affairs College, and is
Senior Deputy General Counsel & Executive Director of Gilead (Shanghai)
Pharmaceutical Technology Co., and an Independent Director of JMC. Mr. Chen
Jiangfeng has held various positions including Legal Counsel of Ford Motor (China)
Ltd., Legal Counsel of Ford Motor Research & Engineering (Nanjing) Co., Ltd./
Chang’an Ford Mazda Automobile Corporation, Ltd., Nanjing Company/Chang’an
Ford Mazda Engine Company, Ltd., Senior Legal Counsel & Compliance Officer of
Ford Asia Pacific & Africa, Senior Legal Counsel of BMW China Automotive
Trading Ltd., and Member of China Country Council, Head of legal, Director,
Merck Healthcare China.
Ms. Wang Yue, born in 1978, holds a Bachelor’s Degree in Accountancy from
Henan University, a Master’s Degree in Accountancy from Zhongnan University of
Economics and Law, and a Doctor’s Degree in Accountancy from Shanghai
University of Financial and Economics, and is an Associate Professor of School of
Accountancy for Shanghai University of Financial and Economics, an Independent
Director of JMC, an Independent Director of Shanghai Xinhua Media Co., Ltd., an
Independent Director of Zhuhai Letong Chemical Co., Ltd., an Independent
Director of Jiangsu Hongde Special Components Co., Ltd., and an Independent
Director of Guangdong Yangshan United Precision Manufacturing Co., Ltd. Ms.
Wang Yue has served as Research Assistant at The Hong Kong Polytechnic
37
University and China Europe International School, and during 2012~2013, served
as Visiting Scholar at Zimmerman Center for University of Illinois at Urbana-
Champaign.
Mr. Yu Zhuoping, born in 1960, holds a Bachelor's degree in Mechanical
Engineering and a Master's degree in Mechanical Engineering from Tongji
University and a Doctor's degree in Automotive Engineering from Tsinghua
University, and is Director of Collaborative Innovation Center for Intelligent Energy
Vehicles of Tongji University, Chairman of Tongji Automobile Design and
Research Institute Co., Ltd., Chairman of Nanchang Jiling New Energy
Technology Co. Ltd., a Director of Shanghai Motor Vehicle Inspection Certification
& Tech Innovation Center Co., Ltd., a Director of Beijing National Hydrogen
Zhonglian Hydrogen Energy Technology Research Institute Co., Ltd., Chairman
and General Manager of Shanghai Intelligent New Energy Vehicle Science and
Technology Innovation Function Platform Co., Ltd., a Counsellor of Shanghai
Municipal People's Government, a Vice President of China Society of Automotive
Engineers, a Non-Executive Director of Huazhong In-Vehicle Holdings Company
Limited, an Independent Director of Shanghai Haili (Group) Co., Ltd., an
Independent Director of Weichai Power Co., Ltd., an Independent Director of
Ningbo Shenglong Automotive Powertrain System Co., Ltd., an Independent
Director of Huayu Automotive Systems Co., Ltd and an Independent Director of
JMC. Mr. Yu Zhuoping held various positions including Director of School of
Mechanical Engineering, Executive Deputy Director of New Energy Vehicle
Engineering Center, Executive Vice Dean, Dean of School of Automotive Studies
for Tongji University, and Assistant to the President of Tongji University.
Supervisors:
Mr. Xiao Hu, born in 1968, holds a Bachelor’s Degree in Radio from Information
Science & Electronic Engineering Department of Zhejiang University, and is a
member of the Standing Committee of the CPC, the secretary of Discipline
Inspection Commission and Chairman of Supervisory Board for JMCG, and Chief
Supervisor of JMC. Mr. Xiao Hu has served as a cadre in the General Office of the
Nanchang Municipal People's Government, deputy director of the Office of the
Working Committee of the Nanchang Hi-tech Industrial Development Zone, deputy
director of the Software Industry Office of the Nanchang Hi-tech Industry
Development Zone Administrative Committee, deputy head of the Organization
Department of the Working Committee of Nanchang Hi-tech Industry Development
Zone, deputy director of the Personnel and Labor Bureau of the Nanchang Hi-tech
Industry Development Zone Administrative Committee, Head of the Organization
Department of the Working Committee of Nanchang Hi-tech Industry Development
Zone, and the Director of the Personnel Bureau of the Nanchang Hi-tech Industry
Development Zone Administrative Committee.
Mr. Zhang Yangyang, born in 1979, holds a LLB degree in International Law from
China Foreign Affairs University and a LLM degree from the University of Michigan
Law School (Ann Arbor), is qualified to practice law in People’s Republic of China
and in the State of New York, the United States of America, and is currently serve
as a Director and General Counsel of Ford Motor (China) Ltd., Principle of Beijing
Branch for Ford Motor (China) Ltd., a Supervisory of Ford Blue Mache Technology
(Nanjing) Co., Ltd., a Supervisor of Ford Blue Mache Auto Sales (Shanghai) Co.,
Ltd and a Supervisor of JMC. Mr. Zhang Yangyang previously assumed a series
38
of legal related positions within Ford including Managing Counsel for Ford China
and ASEAN region, Senior Counsel for Ford China Operations, etc.
Mr. Zhang Jian, born in 1969, holds a College Degree in Secretarial Professional
from North China University of Technology, and is Chairman of JMCG Labor
Union, Chairman of Supervisor Board of Nanchang Jiangling Investment Co., Ltd.,
and a Supervisor of JMC. Mr. Zhang Jian held various positions including
Secretary of Chairman and Deputy Director of Office for JMC, Director of Office,
Director of Communist Party Office, Chief of Publicity Department for JMCG,
Assistant to General Manager of JMCG, and Senior Vice Chairman of JMCG
Labor Union.
Mr. Ma Jian, born in 1975, holds a College Degree in Mechanical &Electrical
Engineering from Nanchang University of Aeronautical Technology, a Master
Degree in Mechanical Engineering from Huazhong University of Science and
Technology, and is a Supervisor and Chief of Manufacturing Department for JMC.
Mr. Ma Jian held various positions including Lead Engineer, Assistant to the Chief,
Deputy Chief of Manufacturing Department for JMC, Director of Nanchang factory
for Getrag Powertrain (Jiangxi) Co. Ltd., and Director of Nanchang Factory and
Director of DCT Factory for Magna Powertrain (Jiangxi) Co. Ltd.
Ms. Li Yanling, born in 1977, holds a College Degree in Industrial and Trade
English from Nanchang University of Aeronautical Technology, a Bachelor Degree
in English from Jiangxi Normal University, and is a Supervisor and Deputy Chief of
Public Relationship Department for JMC. Ms. Li Yanling held various positions
including Assistant to Ford Quality Expert of Quality Control Department, Assistant
to Ford Expert of Public Relationship and Legal Affairs Department, Executive
Assistant to President, Chief of Translation Office, and Deputy Chief of Public
Relationship Department of JMC.
Senior management:
Ms. Xiong Chunying, please refer to the part of Directors for her resume.
Mr. Jin Wenhui, please refer to the part of Directors for his resume.
Mr. Joey Zhu, born in 1982, holds a Bachelor’s Degree in Accounting from Nanjing
University and a Master’s Degree in Financial Engineering from Nanyang
Technological University, and is CFO of JMC. Mr. Joey Zhu held various positions
including PD Profit Planning Manager, Profit Analysis Manager, Admin & IT
Controller, and PD Finance Controller for Ford Asia & Pacific, Deputy CFO of
CEVT, Sweden, Finance Controller of Byton NEV Company, Senior Business
Development Manager, CFO of BEV Division, and BEV Strategic Partnership
Development Director for Ford China.
Mr. Ding Wenming, born in 1972, holds a Bachelor’s Degree in Automobile
Exertion from Wuhan University of Technology, and is a Vice President of JMC, in
charge of the Company's product research and development. Mr. Ding Wenming
held various positions including Deputy Chief of Product Development Center,
Chief of Product Planning & Program Management Department, and Assistant to
the President for JMC.
39
Mr Eric Hermann, born in 1964, holds a Bachelor’s Degree in Engineering
Mechanical and a Master’s Degree in Engineering Mechanical from University of
Michigan, and is a Vice President of JMC, in charge of the Company's product
research and development. Mr. Eric Hermann held various positions in Ford Motor
Company including Light Truck Exhaust Design Engineer, Vehicle NVH
Supervisor, VE Launch Leader, Exhaust, AIS & Clutch Supervisor, AIS, Cooling,
Exhaust & CAE Manager, BoF Cooling & Mounts Manager, Unibody Exhaust &
AIS Manager, and Global AIS Manager, as well as the Director of Powertrain
Engineering Department and Assistant President for JMC.
Mr. Wu Xiaojun, born in 1974, holds a Bachelor’s Degree from Wuhan University
of Technology and a MBA from Jiangxi University of Finance and Economics, and
is a Vice President of JMC, CEO of New Energy Division for JMC, Executive
Director and General Manager of Jiangling Heavy Vehicle Co., Ltd., in charge of
the new energy business of commercial vehicles for the Company. Mr. Wu Xiaojun
held various positions including Chief of Quality Department, Assistant to the
President for JMC, and Executive Deputy General Manager of JMC Heavy Duty
Vehicle Co., Ltd.
Ms. Xu Lanfeng, born in 1969, holds a Bachelor’s Degree in Forging Technology
and Equipment from Jiangxi Industry University and a MBA from University of
International Business and Economics, and is a Vice President and the Board
Secretary of JMC, in charge of the Company’s human resources and relevant
duties of Board Secretary. Ms. Xu Lanfeng held various positions in JMC including
Deputy Plant Manager of Framing Plant, Deputy Chief, Chief of Manufacture
Department and Assistant to the President of JMC.
Ms. Liu Shuying, born in 1962, senior engineer, holds a Bachelor’s Degree in
Mechanical Manufacturing from Jiangxi University of Technology, and is a Vice
President of JMC, in charge of the Company's product research and development.
Ms. Liu Shuying held various positions including Chief of Quality & Supervision
Department of Jiangling-Isuzu Motors Company Limited, Director of Product
Development Center and Assistant to the President of JMC.
Mr. Jerry Lin, born in 1976, holds a Bachelor’s Degree in Aerospace Engineering
and a Master’s Degree in Aerospace Engineering from Tamkang University, China
Taiwan, and is a Vice President of JMC, in charge of manufacturing business of
the Company. Mr. Jerry Lin held various positions including AE TCF & Powertrain
Lead Engineer, AE TCF & Powertrain Supervisor, TCF MPE Superintendent for
Ford Lio Ho Motor Co., Ltd., Program Manager of Ford Motor Company, Plant
Launch & FPS Manager, TCF Area Manager, Body Area Manager, and Plant
Manager of Chang’an Ford Automobile Co., Ltd.
Mr. Liu Ranbo, born in 1973, holds a Bachelor’s Degree in Plastic Forming from
Wuhan Automotive Polytechnic University, and is a Vice President for JMC and
General Manager of Jiangling Motor Sales Co., Ltd., in charge of commercial
vehicle sales business of the Company. Mr. Liu Ranbo held various positions in
JMC including Marketing Service Manager for Customer Service Department,
Regional Manager for East 3 / East 1 District, JMC Light Truck Brand Manager,
40
Sales Director of Jiangling Motors Sales General Company, and Deputy General
Manager of Jiangling Motor Sales Co., Ltd.
Mr. Xiang Dongping, born in 1975, holds a Bachelor’s Degree in Management
Engineering from Shanghai Jiao Tong University, a MBA Degree from The Hong
Kong Polytechnic University and an EMBA Degree from China Europe
International Business School, and is a Vice President for JMC, General Manager
of Jiangling Ford Motor Technology (Shanghai) Co., Ltd., in charge of the
passenger vehicle sales business of the Company. Mr. Xiang Dongping held
various positions including Executive Director and Senior Director of Sales for
Shanghai Volkswagen Brand Marketing Division, Vice General Manager of
Shanghai Automotive International Trading Co., Ltd. and General Manager of
SAIC International Marketing Center, Executive Vice-President of Volvo Cars
China Sales Co. Ltd., Co-founder & Chief Marketing Officer of ENOVATE, Vice
President of Hyundai Motor Group (China) and Vice-General Manager & Sales
Director of Beijing Hyundai Motor Co., Ltd.
Ms. Wu Jiehong, born in 1976, holds a Bachelor’s Degree in Finance
Management from Nanchang University and a MBA from Jiangxi University of
Finance and Economics, and is a Vice President for JMC, in charge of the
strategic development of the Company and assist the CFO to support the financial
work. Ms. Wu Jiehong held various positions including Assistant to the Chief of
Financial Department, Chief of Internal Audit Office, and Chief of Financial
Department for JMC, Finance Manager for Ford APA, Chief of Planning
Department, and Assistant to the President for JMC.
Mr. Yang Shenghua, born in 1980, holds a Bachelor’s Degree in English
Language & Literature from Huazhong University of Science and Technology and
a Master’s Degree in Business Administration from Nanjing University, and is a
Vice President of JMC, in charge of purchasing business of the Company. Mr.
Yang Shenghua held various positions including Program Purchasing Supervisor
of Chang’an Ford Automobile Co., Ltd., Program Purchasing Manager, and
Purchasing Strategy & Program Director for JMC.
Positions at the shareholder entities
□√Applicable □Not Applicable
Name Shareholder Title Term of Compensation
Entity Office Paid by
Shareholder
Entity (Y/N)
Qiu Tiangao JIC Chairman 2019.05.28 N
General manager of
Manto Wong Ford Commercial Vehicle 2021.05.01 Y
Division, Ford China
Ryan Anderson Ford CFO, Ford China 2021.06.01 Y
Jin Wenhui JIC Director 2019.05.28 N
Yuan Mingxue JIC Director 2019.05.28 N
Zhang Jian JIC Chief supervisor 2019.05.28 N
Description of the positions in the shareholder entities None.
41
Particulars about positions and concurrent positions in other entities
□√Applicable □Not Applicable
Compensation
Name Entity Title Paid by Other
Entities (Y/N)
Chairman, Legal
Qiu Tiangao JMCG Y
Representative
Chairman, Legal
Qiu Tiangao JiangxiISUZU Co., Ltd. N
Representative
JMCG New Energy Vehicle Co., Chairman, Legal
Qiu Tiangao N
Ltd. Representative
Nanchang Jiangling Investment Chairman, Legal
Qiu Tiangao N
Co. Ltd. Representative
Nanchang Intelligent New Energy
Qiu Tiangao Chairman N
Vehicle Research Institute
General Manager
Manto Wong Ford Motor (China) Ltd. of Commercial N
Vehicle Division
Ryan Director, Chief
Ford Motor (China) Ltd. N
Anderson Financial Officer
Ryan Chang’an Ford Automobile Co.,
Director N
Anderson Ltd.
Ryan Ford Shuttle Trading (Shanghai)
Director N
Anderson Co., Ltd.
Ryan Lincoln Automobile Sales Service
Director N
Anderson (Shanghai) Co., Ltd
Ryan Ford blue Mach Technology
Chairman N
Anderson (Nanjing) Co., Ltd
Jin Wenhui JMCG Director N
Jiangling Ford Motor Technology
Jin Wenhui Chairman N
(Shanghai) Co., Ltd.
Executive
Jin Wenhui Jiangling Motor Sales Co., Ltd. Director, Legal N
Representative
Hanon Systems (Nanchang) Co.,
Jin Wenhui Vice Chairman N
Ltd.
Executive
Guangzhou Fujiang New Energy
Jin Wenhui Director, Legal N
Automobile Sales Co., Ltd.
Representative
Yuan Chongqing Chang’an Automobile Chairman of the
Y
Mingxue Company Limited Labor Union
Yuan
Chang'an Automobile University President N
Mingxue
Executive
Gilead (Shanghai)
Chen Director, Senior
Pharmaceutical Technology Co., Y
Jiangfeng Deputy General
Ltd.
Counsel
Shanghai University of Finance Associate
Wang Yue Y
and Economics Professor
Wang Yue Shanghai XinHua Media Co., Ltd. Independent Y
42
Director
Independent
Wang Yue Zhuhai Letong Chemical Co., Ltd. Y
Director
Jiangsu Hongde Special Parts Independent
Wang Yue Y
Co.,Ltd. Director
Guangdong Yangshan United Independent
Wang Yue Y
Precision Manufacturing Co., Ltd. Director
Tongji Automobile Design and
Yu Zhuoping Chairman N
Research Institute Co., Ltd.
Nanchang Jiling New Energy
Yu Zhuoping Chairman N
Technology Co., Ltd.
Shanghai Motor Vehicle
Yu Zhuoping Inspection Certification & Tech Director Y
Innovation Center Co., Ltd.
Beijing National Hydrogen
Zhonglian Hydrogen Energy
Yu Zhuoping Director N
Technology Research Institute
Co., Ltd.
Shanghai Intelligent New Energy
Vehicle Science and Technology Chairman &
Yu Zhuoping N
Innovation Function Platform Co., President
Ltd.
Independent
Yu Zhuoping Shanghai Haili (Group) Co., Ltd. Y
Director
Huayu Automotive Systems Co., Independent
Yu Zhuoping Y
Ltd. Director
Independent
Yu Zhuoping Weichai Power Co., Ltd. Y
Director
Ningbo Shenglong Automotive Independent
Yu Zhuoping Y
Powertrain System Co., Ltd. Director
Huazhong In-Vehicle Holdings Non-executive
Yu Zhuoping Y
Company Limited Director
Shanghai Municipal People's
Yu Zhuoping Counsellor N
Government
China Society of Automotive
Yu Zhuoping Vice Chairman N
Engineers
Xiao Hu JMCG Chief Supervisor Y
Xiao Hu JMCG Jingma Motors Co., Ltd. Supervisor N
Jiangxi Jiangling Group Special
Xiao Hu Supervisor N
Vehicle Co., Ltd.
Jiangxi Jiangling Chassis Co.,
Xiao Hu Supervisor N
Ltd.
Jiangling Dingsheng Investment
Xiao Hu Supervisor N
Co., Ltd.
Jiangxi Jiangling Real Estate Co.,
Xiao Hu Chief Supervisor N
Ltd.
Director, General
Zhang
Ford Motor (China) Ltd. Counsel, Principal Y
Yangyang
of Beijing Branch
Zhang Ford Motor Research (Nanjing) Supervisor N
43
Yangyang Co., Ltd.
Zhang Ford Motor Research
Supervisor N
Yangyang Test(Nanjing) Co., Ltd.
Zhang Ford Shuttle Trading (Shanghai)
Supervisor N
Yangyang Co., Ltd.
Zhang Lincoln Automobile Sales Service
Supervisor N
Yangyang (Shanghai) Co., Ltd.
Zhang Jiangling Ford Motor Technology
Supervisor N
Yangyang (Shanghai) Co., Ltd.
Zhang Ford blue Mach Technology
Supervisor N
Yangyang (Nanjing) Co., Ltd.
Zhang Ford Blue Mach Technology
Supervisor N
Yangyang (Nanjing) Co., Ltd.
Chairman of the
Zhang Jian JMCG Y
Labor Union
Nanchang Jiangling Investment
Zhang Jian Chief Supervisor N
Co. Ltd.
JMCG New Energy Automobile
Zhang Jian Supervisor N
Co. Ltd.
Jiangxi Jiangling Special-Purpose
Zhang Jian Supervisor N
Vehicle Co., Ltd.
Jiangxi JMCG Specialty Vehicles
Zhang Jian Supervisor N
Co., Ltd.
Zhang Jian Nanchang Gear Co., Ltd. Chief Supervisor N
Zhang Jian JMCG Finance Co., Ltd. Chief Supervisor N
Jiangxi Lingrui Renewable
Zhang Jian Supervisor N
Resources Development Co., Ltd.
Jiangxi Jiangling Real Estate
Zhang Jian Supervisor N
Co.,Ltd
Jiangxi Jiangling Motors Imp. &
Zhang Jian Chief Supervisor N
Exp. Co., Ltd.
Magna Powertrain (Jiangxi) Co.
Zhang Jian Supervisor N
Ltd.
Jiangxi Yizhizhixing Automobile
Zhang Jian Supervisor N
Operation Service Co., Ltd.
Jiangling Ford Motor Technology
JoeyZhu Director N
(Shanghai) Co., Ltd.
Hanon Systems (Nanchang) Co.,
JoeyZhu Director N
Ltd.
Guangzhou Fujiang New Energy
JoeyZhu Supervisor N
Automobile Sales Co., Ltd.
Ding
JMCG Director N
Wenming
Executive
JMC Heavy Duty Vehicle Co.,
Wu Xiaojun Director, General N
Ltd.
Manager
Shenzhen Fujiang New Energy
Wu Xiaojun Executive Director N
Automobile Sales Co., Ltd.
Wu Xiaojun Shanxi Yunnei Power Co., Ltd. Director N
Wu Jiehong JMC Heavy Duty Vehicle Co., Supervisor N
44
Ltd.
Shenzhen Fujiang New Energy
Wu Jiehong Supervisor N
Automobile Sales Co., Ltd.
Wu Jiehong Shanxi Yunnei Power Co., Ltd. Director N
Jiangling Ford Motor Technology
Liu Rangpo Director N
(Shanghai) Co., Ltd.
Liu Rangpo Jiangling Motor Sales Co., Ltd. General Manager N
Xiang Jiangling Ford Motor Technology
General Manager N
Dongping (Shanghai) Co., Ltd.
Description of the positions in other entities None
Penalties from securities regulator to the present and resigned Directors,
Supervisors and senior executives in the recently three years
□Applicable □√Not Applicable
(4). Compensation of Directors, Supervisors and Senior Executives
Decision-making procedure, determination of basis, and actual payment regarding
the compensation of the Directors, Supervisors and senior executives
Directors and Supervisors who did not concurrently hold other management
positions in JMC were not paid by JMC. Director Qiu Tiangao, Supervisor Xiao Hu
and Supervisor Zhang Jian were paid by JMCG. Director Manto Wong, Director
Ryan Anderson and Supervisor Zhang Yangyang were paid by Ford. Director
Yuan Mingxue were paid by Chongqing Chang’an Automobile Co., Ltd.
(a) In accordance with JMC Executive Compensation Scheme approved by the
Board of Directors, the compensation for the Chinese-side senior management
consists of base salary and floating bonus. The base salary level is determined
according the grade of the senior executives, and the floating bones shall be paid
according to the operating performance. 70% of the bonus will be distributed in
this year, and the rest 30% will be distributed in the next three years. In 2021, the
Company paid annual compensation before tax of approximately RMB 2,010
thousand to First EVP Jin Wenhui, paid approximately RMB 1,450thousand to VP
Ding Wenming, paid approximately RMB 1,610thousand to VP Wu Xiaojun, paid
approximately RMB 1,380thousand to VP & Board Secretary Xu Lanfeng, paid
approximately RMB 1,420 thousand to VP Liu Shuying, paid approximately RMB
1,730 thousand to VP Liu Rangpo, paid approximately RMB 1,320 thousand to VP
Wu Jiehong, paid annual compensation before tax of approximately RMB 820
thousand per personto two Ex-employee-representative Supervisors, Mr. Ding
Zhaoyang and Mr. Chen Guang, paid approximately RMB 1,390 thousand toEx-
EVP Xiong Chunying, paid approximately RMB 720 thousand toEx-VP Wan Hong,
paid approximately RMB 1,150 thousand to Ex-VP Li Xiaojun, paid approximately
RMB 1,280 thousand to Ex-VP Yu Jianbin. The total compensation before tax paid
by JMC for the aforesaid persons was about RMB 17.10 million in the reporting
period, including the long-term incentive of RMB 1,100 thousand deferred from the
previous years.
(b)JMC pays annual compensation for Ford-seconded senior management
personnel to Ford in accordance with the Personnel Secondment Agreement
signed between JMC and Ford & Ford Affiliates. In 2021, the Company should pay
approximately RMB 730 thousand to Ford for Director and President Xiong
Chunying, pay approximately RMB 280 thousand for CFO Joey Zhu, pay US$470
45
thousand for Vice President Erik Hermann, pay RMB 1,100thousand forVice
President Jerry Lin, pay RMB 370 thousand for Vice President Xiang Dongping,
pay RMB 1,100 thousand for Vice President Yang Shenghua, pay
US$170thousand for Ex-President Manto Wong, pay US$40thousand for Ex-Vice
President Milton Wong. pay RMB 830 thousand for Ex-CFO Li Weihua, pay RMB
1,100 thousand for Ex-Vice President Luo Xiaofang. These payments made by
JMC to Ford do not reflect the actual salaries earned by Ford-seconded senior
management.
(c) Pursuant to the resolutions of JMC 2011 Annual Shareholder’s Meeting, the
annual compensation for the JMC Independent Directors is RMB 100 thousand
per person, and JMC bears their travel-related expenses associated with JMC’s
business. In 2021, the Company paid annual compensation before tax of RMB
100 thousand to Independent Director Chen Jiangfeng, paid annual compensation
before tax of RMB 100 thousand to Independent Director Wang Yue, paid annual
compensation before tax of RMB 20 thousand to Independent Director Yu
Zhuoping, paid annual compensation before tax of RMB 80 thousand to Ex-
Independent Director Li Xianjun.
Table on compensation of the Directors, Supervisors and senior executives in the
reporting period
Unit: RMB’ 000
Compensatio
Compensatio
n Paid by
Name Position Gender Age Present (Y/N) n Before Tax
Related Party
Paid by JMC
(Y/N)
Qiu TiangaoChairman Male 55 Y 0 Y
Vice
Manto Wong
Chairman
Male 59 Y * Y
Ryan
Director Male 48 Y 0 Y
Anderson
Xiong Director &
Female 57 Y 1,390* N
Chunying President
Director &
Jin Wenhui Male 54 Y 2,010 N
EVP
Yuan Mingxue Director Male 53 Y 0 Y
Chen Independent
Male 42 Y 100 N
Jiangfeng Director
Independent
Wang Yue Female 43 Y 100 N
Director
Independent
Yu Zhuoping Male 61 Y 20 N
Director
Chief
Xiao Hu Male 53 Y 0 Y
supervisor
Zhang
Supervisor Male 45 Y 0 Y
Yangyang
Zhang Jian Supervisor Male 52 Y 0 Y
JoeyZhu CFO Male 39 Y * Y
Ding Wenming VP Male 49 Y 1,450 N
Erik Hermann VP Male 47 Y * Y
Wu Xiaojun VP Male 47 Y 1,610 N
VP &Board
Xu Lanfeng Female 52 Y 1,380 N
Secretary
Liu Shuying VP Female 59 Y 1,420 N
46
Jerry Lin VP Male 45 Y * Y
Liu Rangpo VP Male 48 Y 1,730 N
Xiang
Dongping
VP Male 46 Y * Y
Wu Jiehong VP Female 45 Y 1,320 N
Yang
Shenghua
VP Male 41 Y * Y
Ex-Vice
Anning Chen Male 60 N 0 Y
Chairman
Wan Jianrong Ex-Director Male 56 N 0 Y
Thomas Peter
Ex-Director Male 44 N 0 Y
Hilditch
Manto Wong Ex- President Male 59 N * Y
Ex-
Li Xianjun Independent Male 54 N 80 N
Director
Ex-
Alvin Qing Liu Male 64 N 0 Y
Supervisor
Ding Ex-
Male 52 Y 820 N
Zhaoyang Supervisor
Ex-
Chen Guang Male 48 Y 820 N
Supervisor
Li Weihua Ex-CFO Female 44 N * Y
Wan Hong Ex-VP Male 60 N 720 N
Li Xiaojun Ex-VP Male 46 N 1,150 N
Milton Wong Ex-VP Male 47 N * Y
Luo Xiaofang Ex-VP Female 43 N * Y
Yu Jianbin Ex-VP Male 53 N 1,280 N
Xiong Yi Ex-VP Male 46 N * Y
Total - - - - 17,400 -
*See the instructions in the previous paragraph.
6. Directors’ Performance of Duty
(1) Introduction to the Board of Directors
Meeting Convening Date Disclosure Date Meeting Resolutions
1.agreed the proposal on capital
increase to JMCH.
2021.01.05-
Paper Meeting 2021.01.09 2.approved the Notice on Holding
01.08
2021 First Special Shareholders’
Meeting of JMC.
approved MC 2020 Second Half
2021.01.15-
Paper Meeting 2021.01.22 Assets Impairment Provisions&
01.20
Write-off proposal.
2021.01.22- approved the personnel changes of
Paper Meeting 2021.01.30
01.28 senior executives.
approved CX756 Vehicles
Cooperation Contract among Ford
2021.01.28-
Paper Meeting 2021.02.06 Motor Company, Ford Global
02.04
Technologies, LLC and the
Company.
Fourth Session of approved the personnel changes of
2021.03.26 2021.03.27
the Tenth Board senior executives.
Paper Meeting 2021.03.27 approves the L536 program KO.
2021.03.17- 1. Proposal on Year 2020 Profit
Paper Meeting 2021.03.30
03.26 Distribution;
47
2. approved the 2020 Annual
Report of the Company and the
Extracts from such Annual Report.
3. approved the 2020Work Report
of the Board of Directors of the
Company.
4. approved the Company’s
2020FinancialStatements.
5. approved the Company’s 2020
Internal Control Self-assessment
Report.
6.approved the Company’s 2020
Corporate Social Responsibility
Report.
7.approved JMCG Finance
Company Continuous Risk
Assessment Report.
8.approved retaining
PricewaterhouseCoopers Zhong
Tian CPAs LLP as external auditor
and the C-Sox Auditor from 2022to
2024.
2021.04.19- approved the 2021 First Quarter
Paper Meeting 2021.04.28
04.27 Report of the Company.
2021.04.21- approved the personnel changes of
Paper Meeting 2021.04.29
04.27 senior executives.
1. approved the Articles of
Association of Shanxi Yunnei
Power Co., Ltd.
Paper Meeting 2021.04.30
2. approved the Appointment of
Directors for Shanxi Yunnei Power
Co., Ltd.
1. approved the proposal on the
sale of 100% of the equities of JMC
Heavy Duty Vehicle Co., Ltd., a
2021.04.30- wholly owned subsidiary of JMC,
Paper Meeting 2021.05.08
05.06 through the public bidding process;
2. approved the Notice on Holding
2021 Second Special Shareholders’
Meeting of JMC.
Approved the FE Credits Trading
Agreement among Jiangling
Holdings Limited, Jiangling Motors
2021.05.21- Group Co., Ltd. and the Company,
Paper Meeting 2021.05.29
05.27 and the FE Credits Trading
Agreement between JMCG New
Energy Vehicle Co., Ltd. and the
Company.
1. approved the proposal on the
personnel changes of Directors;
2021.05.21-
Paper Meeting 2021.06.01 2.approved the Notice on Holding
05.18
2020 Annual Shareholders’ Meeting
of JMC.
Elected the Vice Chairman and
Fifth Session of the
2021.06.25 2021.06.29 members of the special committees
Tenth Board
under the Board of Directors.
1. approved the V362C MCA
Paper Meeting 2021.06.25
Program;
48
2. approved the V363C program
phase II long lead funding;
3.approved the N822program;
4.approved the T360 program
Phase II long lead funding.
approved the P789 program Phase
Paper Meeting 2021.07.13
II long lead funding.
approved the personnel changes of
Paper Meeting 2021.08.23 2021.08.24
senior executives.
1.approved JMC 2021Half-year
Report and the Extracts from JMC
2021.08.19- 2021Half-year Report.
Paper Meeting 2021.08.28
08.26 2.approved JMCG Finance
Company Continuous Risk
Assessment Report.
Sixth Session of approved the personnel changes of
2021.09.24 2021.09.25
the Tenth Board senior executives.
2021.09.24- approved the changes of Directors
Paper Meeting
09.26 of JMCH.
Approved the Joint Venture and
Shareholders Agreement of
Paper Meeting 2021.09.25 2021.09.27 Jiangling Ford Joint Venture
Company between Ford Motor
Company and JMC.
1. approved the Articles of
Association of Jiangling Ford Joint
Venture Company.
Paper Meeting 2021.09.25
2.approved JMC BOD Authorization
to JMC ECM on Jiangling Ford
Joint Venture Company.
1.agreed the Proposal on
Amendment to the Articles of
Association of JMC (Year 2021),
and to submit it to the
2021.09.26- Shareholders’ Meeting for approval.
Paper Meeting 2021.09.29
09.27 2、approved the Independent
Director Changes Proposal;
3. approved the Notice on Holding
2021 Third Special Shareholders’
Meeting of JMC.
1. Opinions of the Board of
Directors on additional of temporary
proposals by the Company’s
2021.09.30- shareholders to the 2021 Third
Paper Meeting 2021.10.08
10.07 Special Shareholders’ Meeting;
2.approved the postponement of
the 2021 Third Special
Shareholders’ Meeting of JMC.
1.Proposal for the election of
members of the special committee
under the Board of Directors ；
2.approved the Proposal on
Paper Meeting 2021.10.18
Amendment to the Articles of
Association of Jiangling Motors
Sales Corporation, Ltd. (Year
2021).
Paper Meeting 2021.11.02- 2021.11.12 approved the 2021 Third Quarter
49
10.26 Report of the Company.
2021.11.02- approved the personnel changes of
Paper Meeting 2021.11.12
11.10 senior executives.
Approved the nomination of the
Paper Meeting 2021.11.02 Directors for Jiangling Ford Joint
Venture Company.
Approved the “SUPERDUTY”
Paper Meeting 2021.11.18 Trademark Transfer Agreement
between Ford and JMC
1. approved the 2022 Routine
Related Party Transaction Forecast
Seventh Session of
2021.12.17 2021.12.21 Proposal;
the Tenth Board
2. approved the personnel changed
of senior executives.
1.approved the 2022 Operating
Budget of the Company;
Paper Meeting 2021.12.20
2.approved the JP360 Program;
3.approved the V363CProgram.
(2) Particulars about the Directors’ attendance to the Board meeting and the
Shareholders’ Meeting
Not to Presence
Presence present in at the
Required
Presence in form of Presence person in two Shareholde
Name Board Absence
in Person Paper by Proxy consecutive rs’ Meeting
Attendance
Meeting meetings
(Y/N)
Qiu Tiangao 31 4 27 - - N 3
Manto Wong 31 4 27 - - N 4
Ryan
7 1 6 - - N 0
Anderson
Xiong
19 3 16 - - N 2
Chunying
Jin Wenhui 31 2 16 13 - Y 2
Yuan Mingxue 7 1 6 - - N 0
Chen
31 4 27 - - N 1
Jiangfeng
Wang Yue 31 3 27 1 - N 0
Yu Zhuoping 7 1 6 - - N 0
Anning Chen 12 1 11 - - N 0
Wan Jianrong 24 3 21 - - N 1
Thomas Peter
24 1 6 17 - Y 0
Hilditch
Li Xianjun 24 1 21 2 - N 0
Statements on failure to attend Board meetings in person for two consecutive
occasions
Director Jin Wenhui did not attend the Board meetings in person for two
consecutive occasions due to physical reasons. Ex-Director Thomas Peter Hilditch
did not attend the Board meetings in person for two consecutive occasions due to
work rotation to the United States.
(3) Dissent from Directors
50
□Yes □√No
The Directors of the Company had no dissent to the relevant proposals of the
Company in the reporting period.
(4) Other introduction to Directors’ Performance of Duty
□√Yes □No
All the Directors of the Company fulfill their duties, diligent, active attention to
the Company’s management information, financial situation, major matters, etc., to
the proposals submitted to the Board of Directors thorough study and discussion,
and put forward their respective opinions, make recommendations for the
Company's business development, make decisions fully consider the interests of
minority shareholders and the demands, strengthen the scientific Board decision,
promote the sustainable, stable and healthy development of the work.
7. 2021 Situation of the Committees under the Board of Directors
(1) Audit Committee
Members:
Chairman: Wang Yue
Member: Yuan Mingxue, Ryan Anderson, Chen Jiangfeng, Yu Zhuoping
Secretary: Joey Zhu
The number of meetings held in the reporting period: five.
The first Audit Committee meeting of 2021 was convened on January 14,
2021. Meeting contents:
1.Approved the Asset Impairment Reserve for the second half of 2020, and
agreed to submit it to the Board of Directors for approval;
2.Reviewed the 2020 Annual Financial and Accounting Statements of JMC,
and would review the Company's financial and accounting statements again after
the auditor forms the preliminary audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters (if any): None.
The second Audit Committee meeting of 2021 was convened on February 20,
2021. Meeting contents:
Reviewed the Company's financial report after the certified auditor issued its
initial audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters (if any): None.
The third Audit Committee meeting of 2021 was convened on March 3, 2021.
Meeting contents:
1.Reviewed the PwC Report;
2.Reviewed the 2020 Financial Report audited by the auditor and agreed to
submit it to the Board of Directors for approval;
3.Reviewed the Annual Audit Summary Report of External Auditors and
agreed to submit it to the Board of Directors for approval;
51
4.Reviewed the 2020 Internal Control Self-Evaluation Report and agreed to
submit it to the Board of Directors for approval;
5.Reviewed the Audit Committee Performance Report and agreed to submit it
to the Board of Directors for approval;
6.Reviewed the External Auditor Selection and Fees and submitted to the
Board of Directors and Shareholders’ Meeting for approval.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters (if any): None.
The forth Audit Committee meeting of 2021 was convened on June 25, 2021.
Meeting contents:
1.Reviewed the Internal Control Work Report for the first half of 2021 and the
Work Plan for the second half of 2021;
2. Reviewed the PwC Report.
Important comments and suggestions made: the Committee members
recommended the Company pay attention to data security and antitrust
compliance risk, and attach importance to information security and the use and
protection of sensitive data.
Other performance of duties: None.
Details of the objection to matters (if any): None.
The fifth Audit Committee meeting of 2021 was convened on December 17,
2021. Meeting contents:
1.Reviewed the Internal Control Work Report 2021 and approved the Internal
Audit Work Plan 2022.
2.Reviewed the Asset Impairment Preparation Report 2021 and agreed to
submit it to the Board for review.
3.Reviewed and approved the Financial Statements Audit Schedule 2021.
4. Reviewed the PwC Report.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters (if any): None.
(2) Compensation Committee
Members:
Chairman: Chen Jiangfeng
Member: Qiu Tiangao, Ryan Anderson, Wang Yue, Yu Zhuoping
Secretary: Xu Lanfeng
The number of meetings held in the reporting period: one.
ACompensationCommittee meeting was convened on March 3, 2021.
Meeting contents:
1. Reviewed and approved the Proposal on 2020 Year-end Bonus for the
Company’s senior executives;
2. Reviewed and approved the adjustment of the annual total cash income
target of the Company’s senior executives in 2021;
3. Reviewed and approved the KPIs for the Company’s senior executives in
2021;
52
4. Reviewed and approved to adjust the cap of single KPI fulfillment in JMC
Executive Compensation Scheme; and,
5. Reviewed and approved the 2020 Due Diligence Report of the
Compensation Committee.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters (if any): None.
(3) Strategy Committee
Members:
Chairman: Qiu Tiangao
Member: Manto Wong, Ryan Anderson, Xiong Chunying, Jin Wenhui,
Yuan Mingxue
Secretary: Wu Jiehong
The number of meetings held in the reporting period: one.
A StrategyCommittee meeting was convened on September 24, 2021.
Meeting contents:
Reviewed the Company’s 2025 Strategy Status Report.
Important comments and suggestions made: in order to cope with the new
situation, new changes and new challenges, the Company needs to focus on the
strategic deployment and realization path at the strategic level, and continuously
promote the implementation of the winning strategy of customized products and
integrated services; and called for further study of new strategic opportunities.
Other performance of duties: None.
Details of the objection to matters (if any): None.
8. Works of Supervisory Board
Risks found by the Supervisory Board in the reporting period
□Yes □√No
The Supervisory Board had no dissent on inspection items in the reporting period.
9. Employees
(1) Employees, Professional Structure and Educational Level
Employees in parent company at the end of reporting
12,462
period(persons)
Employees in subsidiaries at the end of reporting period(persons) 468
Total employees at the end of reporting period(persons) 12,930
Total employees paid compensation (persons) 13,842
Retired employees bore retirement benefits in parent company and
912
its subsidiaries
Professional Structure
Employees
Type
(Persons)
Production Worker 8,470
Sales Personnel 599
Technical Personnel 2,992
Finance Personnel 156
Administrative Staff 713
53
Total 12,930
Educational Level
Employees
Type
(Persons)
Master degree and higher 889
Undergraduate degree 3,437
Polytechnic school degree 1,692
Below polytechnic school degree 6,912
Total 12,930
(2) Compensation Policy
In 2021, JMC strictly abided by the relevant requirements of national labor laws
and regulations, and provided safe and comfortable work places. The Company
also established and improved the incentive system that can effectively help the
realization of the Company’s strategy and targets, which can reflect the close
relationship between personal value contribution and the Company’s strategy
realization. JMC established performance-oriented culture and identity, rewarded
talents with excellent performance. At the same time, the Company constantly
improves employee welfare policies to meet the diversified individual needs of
employees and improve employee experience and satisfaction.
(3) Training
In 2021, with To Become Leader in Light Commercial Vehicle and Provider of Ford
Value Products as the vision, JMC paid attention to the talent transformation and
training of new automotive technologies, built an effective learning ecology,
focused on learning effects and experience, based on improving customer
performance, and provided human resource support for the Company's strategic
goals, so as to meet the company's future industry challenges in the field of new
energy, intelligent network and intelligent manufacturing. For more information
about the completion of 2021 training, please refer to the 2021 Social
Responsibility Report released by the Company.
(4) Labour outsourcing
□Applicable □√Not Applicable
10. Profit distribution and capital reserve conversion
Establishment, implementation or adjustment of profit distribution policy, esp. cash
dividend distribution policy, regarding common stock during the reporting period
□√Applicable □Not Applicable
In accordance with the requirements of laws, regulations and the Articles of
Association of the Company, the Company's profit distribution policy maintains
continuity and stability, and the Company pays attention to the reasonable return
to investors. The Company gives priority to cash dividend, and subject to the
provisions of laws, regulations and the Articles of Association of the Company, the
Board of Directors can put forward a mid-term or special profit distribution
proposal. The Company's profit distribution policy is in line with the CSRC's
guidance on encouraging cash dividends for listed companies.
Special Explanation on Cash Dividend Policy
Whether to comply with the requirements of the Articles of Association of JMC
Y
or resolution of the Shareholders’ Meeting (Y/N)
54
Whether the standards and proportion of dividends on profit distribution are
Y
clear (Y/N)
Whether the procedures are valid and legal (Y/N) Y
Whether the Independent Director fulfil their duties (Y/N) Y
Whether middle and small shareholders have opportunities to claim their
Y
appeals and their legal rights and interests are completely protected (Y/N)
Whether the condition and procedure are reasonable and transparent when the
Y
cash dividend policy is being changed (Y/N)
The Company made a profit during the reporting period and the profit of the parent
company distributable to the common shareholders is positive, but a distribution
plan of cash dividends for the common shares is not put forward
□Applicable □√Not Applicable
Proposal on Year 2021 Profit Distribution Plan or Capital Reserve Conversion
□√Applicable □Not Applicable
Stock dividend (share) for every 10 shares 0
Cash Dividend (RMB) for every 10 shares (including tax) 2.66
Total share capital (share) 863,214,000
Total cash dividend distribution amounts (RMB) (including tax) 229,614,924.00
Amount of cash dividend (RMB) in other ways (e.g. repurchase of
0.00
shares)
Total cash dividend amounts (RMB) (including other ways) 229,614,924.00
Distributable profit (RMB) 6,259,291,734.00
Total cash dividends (including other ways) as a proportion of total
100%
profit distribution
Cash dividend status
If the development stage of the Company is not easy to distinguish but there are major
fund expenditure arrangements, the minimum proportion of cash dividends in this profit
distribution shall reach 20% when the profit distribution is carried out.
Detailed description of profit distribution or capital reverse conversion proposal
Proposal on year 2021 profit distribution: the Company plans to distribute a cash dividend
of RMB 2.66 (including tax) for every 10 shares held. Based on the total share capital of
863,214,000 shares as of December 31, 2021, the total cash dividend distribution
amounts shall be RMB 229,614,924. The cash dividend on B share shall be paid in Hong
Kong Dollars and converted at the middle rate of the HK dollar’s exchange rate against
RMB quoted by the People’s Bank of China on the first working day following the relevant
resolution adopted by the Company’s Annual Shareholders’ Meeting. The Board decided
not to convert the capital reserve to the share capital this time. The proposal is subject to
the approval of the Company’s 2021 annual shareholders’ meeting.
11. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan and
Other Employee Incentive Method
□Applicable □√Not Applicable
There was neither equity incentive plan or ESOP, nor other employee incentive
method during the reporting period.
12. Internal control system construction and implementation during the reporting
period
(1) Internal control construction and implementation
55
According to the requirements of the Basic Standard for Enterprise Internal
Control (C-SOX) along with its Application Guidelines and Internal Control
Guidelines for Public Companies listed on the Shenzhen Stock Exchange jointly
issued by the Ministry of Finance and China Security Regulation Commission, the
Company has established a set of sound and effective internal control system, and
at the same time, combined with the internal and external environment, internal
institutions and management requirements, so as to make the internal control
system design scientific, simple, applicable and effective operation.
The Company has reasonably planned the organizational structure, and
established a control structure with the full participation of the Audit Committee,
Executive Committee, senior management and business level under the
leadership of the Board of Directors. The Audit Committee has an audit
department, which supervises and evaluates the operation of the Company's
internal control system through internal audit.
Through the operation, analysis and evaluation of the internal control system, the
Company has effectively prevented the risks in the operation and management,
and promoted the realization of the internal control objectives.
This year, the Company's internal control can cover the main aspects of the
Company's operation and management without major omissions; the units,
businesses and matters and high-risk areas included in the evaluation scope
cover the main aspects of the Company's operation and management without
major omissions.
(2) Major defect of internal control in the reporting period
□Yes □√No
13.The Company's management control over the subsidiaries during the reporting
period
□Applicable □√Not Applicable
During the reporting period, the Company has not purchased new subsidiaries.
14. Internal Control Self-Assessment Report or Internal Control Audit Report
(1) Internal Control Self-Assessment Report
Issuance date March 30, 2022
Index www.cninfo.com.cn
Total value of assets of the
entities in scope counts as % of
100.00%
that disclosed in the consolidated
financial statements
Total value of operating revenue
of the entities in scope counts
100.00%
as % of that disclosed in the
consolidated financial statements
Deficiency Determination Criteria
Type Type Type
Material Weakness: An error that Material Weakness: Unscientific
changes the trend of results, decision making process such as
Qualitative Criteria
changes profit to loss or loss to incorrect decisions that result in
profit Ineffective anti-fraud process unsuccessful mergers and
56
or any fraud involving senior acquisitions; Major regulatory
management Ineffective control compliance issues; Frequent
over accounting policies Ineffective media reports harmful to the
oversight by the Audit Company’s reputation; A lack of
Committee Significant Deficiency; control within key business
Errors in management reporting processes or systematic
systems or Corporate accounting breakdown of control policies
records that could lead to incorrect
management decisions; Actions Material weakness identified in
inconsistent with Company values, the self-assessment without any
policies and other Corporate action plan implemented
guidelines that are likely to Significant Deficiency; control
significantly impact cost, quality, deficiency, or combination of
customer satisfaction, reputation, control deficiencies, that does not
or competitive advantage; Control meet the criteria for material
issues in IT infrastructure or weakness but deserves the
applications that may lead to concerns of the Audit Committee
impairment of Company and the Board of Directors. Minor
operations. Any actions indicating Deficiency Any control
fraud or theft that is significant in deficiencies that do not meet the
value Minor Deficiency; Any control criteria for material or significant.
deficiencies that do not meet the
criteria for material or significant.
Material Weakness Misstatement in
the Income Statement is more than
5% of the annual profit before
taxation; Misclassification in the
Income Statement is more than
0.4% of the annual sales revenue
Adjustment of net assets in the
Balance Sheet is more than 1% of
the shareholders' equity Adjustment
of asset or liability in the Balance
Sheet is more than 0.6% of the total Please refer to internal control
assets; Adjustment in the Cash Flow deficiency over financial reporting
Quantitative Criteria
Statement is more than 3% of the for the criteria for non-financial
reporting internal control.
total net cash flow in the operating
activities. Significant Deficiency
Misstatement in the Income
Statement is more than 2.5% of the
annual profit before taxation;
Misclassification in the Income
Statement is more than 0.2% of the
annual sales revenue; Adjustment of
net assets in the Balance Sheet is
more than 0.5% of the Shareholders’
equity; Adjustment of asset or
57
liability in the Balance Sheet is more
than 0.3% of the Total assets;
Adjustment in the Cash Flow
Statement is more than 1.5% of the
total net cash flow from the
operating activities. Minor Deficiency
All the deficiencies that do not meet
the quantitative criteria for
significant.
Number of Material Weakness in
0
financial report
Number of Material Weakness in
0
non-financial report
Number of Significant Deficiency in
0
financial report
Number of Significant Deficiency in
0
non-financial report
(2). Internal Control Audit Report
□√Applicable □Not Applicable
Opinions in the Internal Control Audit Report
The comments in the Internal Control Audit Report issued by PWC Zhongtian
Accountants (special general partnership) are as follows: On December 31, 2021, JMC
maintained effective internal control of financial reporting in all major aspects in
accordance with the Basic Code for Enterprise Internal Control and relevant provisions.
Disclosure of Internal Control Audit Report Disclosed
Issuance Date March 30, 2022
Index www.cninfo.com.cn
Type of Opinion Standard and unqualified opinions
Major Defect Regarding Non-financial Report or no No
Abnormal opinion issued by the accounting firm
□Yes □√No
Whether the Opinion issued by the accounting firm keeps the same with that of
self-assessment report made by the Board?
□√Yes □No
15.Situation of Problem Rectification for the self-inspection of the special action
for the governance of listed companies
According to the deployment of the China Securities Regulatory Commission, in
2021, the Company organized the self-inspection of the special action for the
governance of listed companies. After self-inspection, the Company did not find
any situation that needs to be rectified.
58
Chapter V Environment and Social Responsibilities
1.Major Environmental issues
(1) Environmental protection
Whether the Company and affiliates is the key pollution discharge unit published
by environmental protection administration?
□√Yes□No
Name of principal Wastewater (COD, NH-N) Exhaust gas
pollutant and (SO2,NOx,smoke,toluol,xylene）
specific pollutant
Mode of discharge continuous discharge continuous discharge
Number of
4 120
discharge outlet
Distribution of 3 in Fushan Site, 1 in 38 in Fushan Site, 47 in Xiaolan
discharge outlet Xiaolan Site, 1 in Cast Site, 31 in Cast Plant and 4 in
Plant and 1 in Axle Plant Axle Plant
Discharge "COD:68mg/L SO2: 12mg/m3; NOx:91mg/m3;
concentration NH-N:0.786mg/L" smoke:
20mg/m3;toluol:0.316mg/m3;
dimethylbenzene:0.145mg/m3;
Applicable “Wastewater Discharge "The Emission Standard of Air
standard for Standard”(GB 8978-1996) Pollutants”, "Emission Standard
pollutant discharge of Air Pollutants for Boiler”（GB
13271-2014）
Total amount of COD: 30.9t; NOx: 22.4t
discharge NH-N:0.61
Total amount of COD≤517.39t; NH- NOx≤60.91t
discharge N≤24.795t
audited
Excessive Meet Standard Meet Standard
discharge
The construction and operation of pollutant preventive and control facilities
In order to meet the environmental protection requirements and ensure that all
environmental indicators meet the standard of emission, the Company has
continuously taken various governance measures. The Company has built some
standardized hazardous waste storage sites, such as Xiaolan hazardous waste
station, Fushan hazardous waste station, Casting Plant hazardous waste station,
and Axle Plant hazardous waste station. In 2021, JMC has governed the VOCs
emission of Xiaolan Plant and Axle Plant. Through process modification and
adding VOCs disposal facility, VOCs emission was reduced significantly, thus
lowering the risk of environmental pollution. The Company also managed the
exhaust of diesel test vehicles to ensure the emission meets the standards. The
governance facility in Fushan and Xiaolan Plant has been put into full operation,
providing protection to the green JMC. The newly-added wastewater sludge drying
system strives to reduce both the amount and cost of waste. The Company has
established intelligent environmental protection monitoring platform, pollutants
online real-time monitoring, hazardous waste intelligent management system and
other digital platforms to create intelligent green JMC.
59
EIA on construction project and other administrative permits for environmental
protection
The Company strictly implements the construction project environmental impact
assessment system. With respect to new construction, expansion and
reconstruction, JMC comprehensively planned environmental protection and
evaluated the “Three Simultaneities”. From the source of design, JMC carried out
the philosophy of energy saving and low carbon all the time. The Company carries
on the environmental monitoring every year according to the requirements,
ensures the pollutant discharge meeting the requirements of discharge permit,
formulates the stricter internal control target, and strives to reduce the impact of
environmental pollution to the minimum. In 2021, JMC completed the Fushan
Plant productivity optimization project, productivity optimization component
relocation project and environmental acceptance of Xiaolan simulation crash lab.
And meanwhile, the Company also received the environmental approval of VOC
governance in Xiaolan Paintshop.
Emergency plan on emergency environmental incidents
In order to dilute or prevent environmental risks, JMC established an emergency
preparation and response procedure and specific environmental emergency plans,
so as to formulate corresponding control methods for potential accidents and
emergences occurred or that may probably occur, and has been filed with the
environmental protection bureau.JMC organize various emergency drills to the
effectiveness of the plan.
Environmental self-monitoring scheme
JMC carries out self-monitoring in strict accordance with the Method for Self-
monitoring and Information Disclosure of State Key Monitoring Enterprises (Trial).
Its self-monitoring schemes, monitoring results and annual monitoring reports on
pollution sources were disclosed on the “Jiangxi Province pollution source
enterprise portal system”.
Administrative punishment for environmental problems during the reporting period
None.
Other information related to environmental protection
None.
Measures and effects taken to reduce carbon emissions during the reporting
period
□√Applicable □Not Applicable
In response to the national call for carbon neutrality and carbon standards, the
Company promoted the green and low-carbon development of enterprises in 2021.
The energy supervisor team and all plants promoted energy saving and
consumption reduction from production organization, standardized management,
process optimization, production pace improvement, and application of energy
saving technologies. The Company also increased the energy conservation
publicity, for the staff to popularize the concept of energy conservation, enhance
the staff energy awareness.
60
In 2021, the comprehensive energy consumption of the company's million output
value down 5% compared with 2020. The company's comprehensive energy
consumption per unit down 3% compared with 2020. In the T coating workshop of
Xiaolan Plant transferred from Qingyunpu Plant, chain roller machines and rotary
moving machines can increase the storage area in painting, improve the
production time of painting trolley line in single shift, meet the capacity adjustment
ability of welding WBS, thus reducing the production time of painting and saving
energy consumption. JMC Manufacturing Department implemented energy
management system in Fushan Plant, and through the system timely and
comprehensive grasped their energy utilization, by monitoring the production
status, combining with the production information system data. Through the
organic combination of energy and the output, as well as utilizing the energy big
data from the industry, the assessment can be made on the actual energy usage
of the enterprise, thus providing support for production and operation planning.
Other environmental protection related information
None.
2. Corporation Social Responsibilities
JMC always consciously undertake social responsibility and create brand public-
benefit “Jiangling Xiqiao Project” with the aim of “Green, Love, and Safe”. By the
end of 2021, JMC has invested a total of more than RMB 34 million in building 412
caring bridges distributed in 128 counties of 25 provinces or municipalities directly
under the central government or autonomous regions, and over 600,000 people
benefit and get lifted out of poverty.
During the reporting period, the Company operated according to law and
regulations, upheld the interest of the shareholders, especially small & medium-
sized shareholders, protected the legitimate rights and interests of employees, and
treated suppliers, customers and consumers sincerely. Simultaneously, JMC paid
attention to environmental protection, energy saving and consumption reduction,
fully reduced energy consumption and pollutant discharge, and actively fulfilled
corporate social responsibility.
JMC 2021 Corporation Social Responsibilities Report can be downloaded from
JMC official website: www.jmc.com.cn or the website: www.cninfo.com.cn.
3. The consolidation and expansion of poverty alleviation achievements and rural
revitalization
In 2021, the Company placed the consolidation and expansion of poverty
alleviation achievements at the top of its priority list, promoted poverty alleviation
policies, measures and work systems, and gradually made a smooth transition to
rural revitalization to ensure effective linkage with rural revitalization.
We need to consolidate and expand our achievements in poverty alleviation,
maintain overall policy stability, and improve the mechanism for monitoring and
helping prevent people from falling back into poverty. Timely detection and
assistance will be provided to unstable households and marginal households
prone to poverty. Industrial assistance should not be provided from village to
household, but should be provided from township to village. We will continue to do
61
a good job in labor service cooperation and actively expand channels for local and
nearby employment.
We also comprehensively improved Xianting rice, horseshoe and other
characteristic agricultural products market competitiveness. Through land transfer,
we promoted vegetable industry development, optimized characteristic industry
development structure. We will continue to consolidate the infrastructure of
agriculture and lay a solid foundation for industrial development.
In 2022, the village task force will continue to strengthen targeted assistance and
prevent people from returning to poverty, and constantly explore new methods and
approaches for targeted assistance. We will continue to carry out the practical
activities of "Doing practical things for the people", do our best to do good things
for the people, take concrete actions to consolidate the achievements in poverty
alleviation and lay a solid foundation for rural revitalization.
62
Chapter VI Major events
1. Commitments
(1) Commitments of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period
□Applicable √Not Applicable
There is no commitment of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period.
(2) Earnings forecast of the assets or project and the explanations
□Applicable □√Not Applicable
2. 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.
3. Illegal outside guarantee
□Applicable √Not Applicable
The Company had no illegal outside guarantee during the reporting period.
4.The board's explanation of the situation related to the latest "non-standard audit
Report"
□Applicable □√Not Applicable
5. Explanation of the Board of Directors, Supervisory Committee and Independent
Directors to abnormal opinions from accounting firm
□Applicable □√Not Applicable
6. Explanation on major accounting errors that shall be restated during the
reporting period
□Applicable □√Not Applicable
There was no major accounting error that shall be restated during the reporting
period.
7.Description of changes in the scope of consolidated statements as compared
with the previous year's financial statements
□√Applicable □Not Applicable
In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd.
(hereinafter referred to as “Yunnei Group”) signed by consensus the property
rights transaction contract of Yunnei Group purchasing 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. In November 2021, 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. was transferred to Yunnei Group, and “Taiyuan
Jiangling Power Co., Ltd.” was renamed as “Shanxi Yunnei Power Co., Ltd.”. After
the equity transfer, Shanxi Yunnei Power Co., Ltd. was not included in the scope
of the Company's consolidated statements.
63
In 2021, the Company and Ford Motor Company (“Ford”) subscribed to the capital
contribution of RMB 102 million and RMB 98 million respectively to set up
Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. ("Jiangling Ford
Technology”), the total registered capital subscribed amount to RMB 200 million.
The Company holds 51% of the shares of Jiangling Ford Technology and got the
control of Jiangling Ford Technology’s Board of Shareholders and Directors.
Jiangling Ford Technology is a subsidiary of the Company. As of December 31,
2021, Jiangling Ford Technology completed the business registration while not in
operation yet.
8. Appointment or Dismissal of Accounting Firm
Current accounting firm
Name PricewaterhouseCoopers Zhong Tian LLP
Compensation (RMB’000) 2,000
Consecutive years offering audit services 20
Names of signed accountants Lei Fang, Ye Dan
Consecutive years offering audit
Lei Fang 5 year, Ye Dan 4 year
services of signed accountants
Dismissal of accounting firm
□Applicable □√Not Applicable
Appointment of C-SOX auditor, financial consultant or sponsor
□√Applicable □Not Applicable
Upon the approval of 2017 Annual Shareholders’ Meeting, JMC agreed to appoint
PricewaterhouseCoopers Zhong Tian LLP as JMC’s 2019to 2021 C-SOX auditor.
In 2021, JMC paid RMB 550 thousand to PricewaterhouseCoopers Zhong Tian
LLP for the C-SOX audit.
9. Suspension and Termination of Listing after Annual Report Disclosed
□Applicable □√Not Applicable
10. Related Matters regarding Bankruptcy
□Applicable □√Not Applicable
There was no matter involving bankruptcy during the reporting period.
11. Major Litigation or Arbitration
□Applicable □√Not Applicable
There was no major litigation or arbitration during the reporting period.
12. Punishment
□Applicable □√Not Applicable
Neither JMC nor its Directors or senior management were punished by regulatory
authorities during the reporting period.
13. Honesty and credit of JMC and its controlling shareholder or actual controlling
party
□Applicable □√Not Applicable
14. Major Related Transactions
(1) Routine related party transactions
64
Please refer to the Note 8 related party transactions of the notes to the
consolidated financial statements in the Chapter X Financial Statements for details.
(2) Major related party transaction concerning transfer of assets or equity
□Applicable □√Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.
(3) Related party transaction concerning outside co-investment
□√Applicable □Not Applicable
Partner Ford Motor Company
Ford, representing 32% of the outstanding shares
Relationship of the Company, is the second largest shareholder
of the Company.
Name of the invested Jiangling Ford Motor Technology (Shanghai) Co.,
enterprise Ltd.
Engineering and technical research and
experimental development, sales of vehicles, new
energy vehicles, auto parts, electric accessories of
new energy vehicles, plug-in hybrid professional
engines, charging piles, centralized rapid charging
The main business of the stations, new energy vehicles for electric facilities,
invested enterprise new energy vehicles production and testing
equipment; Technical consulting and business
information consulting in the field of automotive
science and technology; Economic information
consulting, marketing planning, corporate image
planning, etc.
The registered capital of the RMB 200 million
invested enterprise
The total assets of the *
investee enterprise
The net assets of the *
invested enterprise
The net profit of the invested *
enterprise
Progress of the major None
projects under construction of
the invested enterprises
* Note: Jiangling Ford Motor Technology (Shanghai) Co., Ltd. completed business
registration on December 27, 2021, and not yet make operating activities in the
reporting period.
(4) Related credit and debt
□√Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes □√No
The Company had no non-operating related credit and debt in the reporting period.
65
5、Transaction with related financial companies or financial companies that the
company holds
□√Applicable □Not Applicable
Balance at Current amount
Balance at
the
Maximum the
Related The related beginning of Deposit Take out the
daily deposit Deposit rate beginning of
party relationship the amount amount
limit the period
period(RMB (RMB mils) (RMB mils)
(RMB mils)
mils)
JMCG
Subsidiary 1.725%-
Finance
Company
of JMCG * 2.25%
1,232 21,206 21,378 1,060
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company at
the end of each month to the lower of the following: 1) 25% of JMCG Finance
Company absorbing deposit in prior year end; or 2) 12% of JMC’s consolidated
total cash reserve.
6. The transactions between the financial company controlled by the company and
its related parties
□Applicable □√Not Applicable
There is no deposit, loan, credit granting or other financial business between the
financial company controlled by the company and its related parties.
(7) Other major related party transactions
□√Applicable □Not Applicable
Please refer to the Note 8 related party transactions of the notes to the
consolidated financial statements for details.
The announcement on Related Party Transactions
Website for
Name Disclosure Date
Disclosure
Public Announcement on Related Party
2021.02.06 www.cninfo.com.cn.
Transactions
Public Announcement on Related Party
2021.05.29 www.cninfo.com.cn.
Transactions
Public Announcement on Establishment of a
2021.09.27 www.cninfo.com.cn.
Joint Venture with Related Party
Public Announcement on the 2021 Forecast
2021.12.21 www.cninfo.com.cn.
Routine Related Party Transactions
15. Major Contracts and Execution
(1) Entrustment, contract or lease
a. Entrustment
□Applicable □√Not Applicable
There was no entrustment in the reporting period.
b. Contract
□Applicable □√Not Applicable
There was no contract in the reporting period.
c. Lease
□√Applicable □Not Applicable
66
Please refer to the Note 4 (15), note 4 (29) and note 8 (5) (b) of the financial
statements in the Chapter X Financial Statements for detail.
Project with more than 10% of net profit
□Applicable □√Not Applicable
There was no lease project with more than 10% of net profit in the reporting period.
(2) Major guarantee
□Applicable □√Not Applicable
The Company had no outside guarantee in the reporting period.
(3) Entrustment on cash asset management
a. Trust investment
□Applicable □√Not Applicable
There was no trust investment in the reporting period.
b. Entrusted loan
□Applicable □√Not Applicable
There was no entrusted loan in the reporting period.
(4) Other major contract
□Applicable □√Not Applicable
16. Other Major Events
□√Applicable □Not Applicable
In 2021, the Company received government incentives of approximate RMB
552million appropriated from Nanchang City, Nanchang Xiaolan Economic and
Technological Development Zone, which is to support the daily operation and
development of the Company.
17.Major event of JMC subsidiary
□√Applicable □Not Applicable
In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd.
(hereinafter referred to as “Yunnei Group”) signed by consensus the property
rights transaction contract of Yunnei Group purchasing 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. In August 2021, the Company and Yunnei
Group completed the transfer procedures of 60% of the equity of Taiyuan
Jiangling Power Co., Ltd., and renamed Taiyuan Jiangling Power Co., Ltd. as
Shanxi Yunnei Power Co., Ltd. The Company now holds 40% of the equity of
Shanxi Yunnei Power Co., Ltd., Yunnei Group holds 60% of the equity of Shanxi
Yunnei Power Co., Ltd., and Shanxi Yunnei Power Co., Ltd. is not included in the
scope of the Company's consolidated statements.
In January 2021, the Shareholders’ Meeting of JMC approved to increase the
capital by RMB 1.142 billion in cash to JMC Heavy Duty Vehicle Co., Ltd. Upon
completion of the capital increase, the registered capital of JMC Heavy Duty
Vehicle Co., Ltd. was increased from RMB 181,793,174 to RMB 1,323,793,174.In
May 2021, the Shareholders’ Meeting of JMC approved to sell 100% of the equity
of JMC Heavy Duty Vehicle Co., Ltd. through the public bidding process at Shanxi
67
Property Rights Exchange. At the expiration of the bidding announcement period,
the above subject matter is solicited to an intended transferee, Volvo Lastvagnar
Aktiebolag. On August 23, 2021, by consensus, the Company signed the Equity
Interest Transfer Agreement Relating to100% of the Equity Interests in JMC
Heavy Duty Vehicle Co., Ltd. with Volvo Lastvagnar Aktiebolag. As of the date of
disclosure of the report, the relevant transaction between the Company and Volvo
Lastvagnar Aktiebolag is still in progress.
In September 2021, the Board of Directors of JMC approved to jointly establish
Jiangling Ford Joint Venture Company with Ford Motor Company. In December
2021, the Joint Venture by the Company and Ford, Jiangling Ford Motor
Technology (Shanghai) Co., LTD., completed the business registration and
obtained the business license with a registered capital of RMB 200 million. JMC
held 51% equity, and Ford held 49% equity.
68
Chapter VII Share Capital Changes & Shareholders
1. Changes of shareholding structure
I. Table of the changes of shareholding structure
Before the change Change (+, -) After the change
Proportion New Reserve- Proportion
Bonus
Shares of total share converted Others Subtotal Shares of total
Shares
shares (%) s shares shares (%)
I. Limited tradable
750,840 0.09% 750,840 0.09%
A shares
1. Other domestic
750,840 0.09% 750,840 0.09%
shares
Including:
Domestic legal
745,140 0.09% 745,140 0.09%
person shares
Domestic natural
5,700 0.00% 5,700 0.00%
person shares
II. Unlimited
862,463,160 99.91% 862,463,160 99.91%
tradable shares
1. A shares 518,463,160 60.06% 518,463,160 60.06%
2. B shares 344,000,000 39.85% 344,000,000 39.85%
III. Total 863,214,000 100.00% 863,214,000 100.00%
Causes of shareholding changes
□Applicable □√Not Applicable
Approval of changes of shareholding structure
□Applicable □√Not Applicable
Shares Transfer
□Applicable □√Not Applicable
Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’
equity attributable to the equity holders of the Company, generated from shares
transfer
□Applicable □√Not Applicable
Others to be disclosed necessarily or per the requirements of securities regulator
□Applicable □√Not Applicable
II. Changes of limited A shares
□Applicable □√Not Applicable
2. Securities Issuance and Listing
I. Securities issuance (not including preferred shares) in the reporting period
□Applicable □√Not Applicable
II. Explanation on changes of shares, shareholding structure, assets and liabilities
structure
□Applicable □√Not Applicable
III. Current staff shares
□Applicable □√Not Applicable
3. Shareholders and actual controlling parties
69
I. Total shareholders, top ten shareholders, and top ten shareholders holding
unlimited tradable shares
Total shareholders as JMC had 50,481 shareholders, including 44,678 A-share holders, and 5,806 B-share
of the end of the holders, as of December 31, 2021.
reporting period
Total shareholders as JMC had 45,406 shareholders, including 39,620 A-share holders, and5,786 B-share
of the last month-end holders, as of February 28, 2022.
prior to the disclosure
date of the Report
Top ten shareholders
Shares
Shares
Shareholding Shares at due to
Shareholder Change with
Shareholder Name Percentage the End of mortgage
Type (+,-) Trading
(%) Year or mark
Restriction
or frozen
Nanchang Jiangling State-owned
41.03% 354,176,000 0 0 0
Investment Co., Ltd. legal person
FORD MOTOR Foreign legal
32.00% 276,228,394 0 0 0
COMPANY person
Shanghai Automotive State-owned
1.51% 13,019,610 0 0 0
Co., Ltd. legal person
National Social
Domestic non-
Security Fund - One
State-owned 0.77% 6,643,441 6,643,441 0 0
One Eight
legal persons
Combinations
Foreign legal
GAOLING FUND,L.P. 0.63% 5,453,086 0 0 0
person
Domestic
Jin Xin 0.54% 4,619,136 2,022,736 0 0
Natural Person
INVESCO FUNDS Foreign legal
0.52% 4,454,844 -387,045 0 0
SICAV person
Hong Kong Central Foreign legal
0.51% 4,423,878 -1,746,698 0 0
Clearing Limited person
Wells Securities
Domestic non-
dividend index
State-owned 0.38% 3,244,400 3,244,400 0 0
enhanced securities
legal persons
investment fund
Domestic
Li Yifeng 0.34% 2,896,026 1,677,318 0 0
Natural Person
Strategic investors or general legal persons become the top
None.
10 shareholders due to the placement of new shares
Notes on association among above-mentioned None.
shareholders
Description of the above shareholders' entrusted /
None.
entrusted voting rights and waived voting rights
A special description of the special repurchase account
None.
among the first 10 shareholders
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Restriction Share Type
Nanchang Jiangling Investment Co., Ltd. 354,176,000 A share
FORD MOTOR COMPANY 276,228,394 B share
Shanghai Automotive Co., Ltd. 13,019,610 A share
National Social Security Fund - One One
6,643,441 A share
Eight Combinations
GAOLING FUND,L.P. 5,453,086 B share
Jin Xin 4,619,136 B share
70
INVESCO FUNDS SICAV 4,454,844 B share
Hong Kong Central Clearing Limited 4,423,878 A share
Wells Securities dividend index
3,244,400 A share
enhanced securities investment fund
Li Yifeng 2,896,026 B share
The top 10 shareholders to sell circulated
shares, and the infinite tradable
None.
relationship between shareholders and
top 10 shareholders or concerted action
Notes on association among above- None.
mentioned shareholders
Stock buy-back by top ten shareholders or top ten shareholders holding unlimited
tradable shares in the reporting period
□Applicable □√Not Applicable
The top 10 common shareholders of the company and the top 10 common
shareholders with unlimited conditions of sale did not conduct agreed repurchase
transactions during the reporting period.
II. Controlling Shareholders
Nature of controlling shareholders: Central/Local government holdings, foreign
holdings
Type: Legal person
Legal Establishe Organization
Name Main scope of business
representative d Date code
investment management, industrial
Nanchang Jiangling May 28, 91360125MA
Qiu Tiangao investment, asset management
Investment Co., Ltd. 2019 38LUR91F
and other business.
to design, manufacture, market,
and service a full line of Ford cars,
trucks, sport utility vehicles
(“SUVs”), electrified vehicles, and
Ford Motor William Clay January 1, Lincoln luxury vehicles, provide
Company Ford, Jr. 1903 financial services through Ford
Motor Credit Company LLC, and
be pursuing leadership positions in
electrification, autonomous
vehicles, and mobility solutions.
Change of controlling shareholders
□Applicable □√Not Applicable
The controlling shareholder of the company did not change during the reporting
period.
III. Actual Controlling Parties
Nature of controlling shareholders: Central/Local State-owned Assets Supervision
and Administration
Type: Legal person
Legal Established Organization
Name Main scope of business
representative Date code
manufacturing of automobiles, engines,
9136000015 chassis, specialty vehicle, transmission,
JMCG Qiu Tiangao July 27, 1991
8263759R other products, automotive quality testing,
sales of self-produced products and raw
71
materials, equipment, electronic products,
parts and others, as well as related after-
sales services and maintenance services;
development of products derived from JMC
brand light vehicle; overseas auto project-
contracting, export equipment, material and
related labour services.
development, manufacturing, sales, import &
Chongqing
export business of auto (including sedan),
Changan October 31, 9150000020
Zhu Huarong engine, automotive components, die, tools,
Automobile 1996 286320X6
installation of machinery, technological
Co., Ltd.
consultant services.
Equity of listed company in domestic and aboard
market held by the entity controlled by the actual None
controlling party during the reporting period
Change of actual controlling parties
□Applicable □√Not Applicable
There was no change of actual controlling parties in the reporting period.
Ownership and control relations between the Company and the actual controlling
parties are shown as follows:
SASAC
Nanchang State-owned Assets Supervision
and Administration Committee
41.58% 100%
Chongqing Changan Automobile Co., Ltd. JMCG
50% 50%
Nanchang Jiangling Investment Co., Ltd. Ford Motor Company
41.03% 32%
Jiangling Motors Co., Ltd.
Actual controlling parties control the Company by the way of trust or other assets
management
□Applicable □√Not Applicable
IV. The cumulative number of shares pledged by the controlling shareholder or the
largest shareholder and its acting partners accounts for 80% of the number of
shares held by them.
□Applicable □√Not Applicable
V. Other legal person shareholder holding more than 10% of total equity of the
Company
□Applicable □√Not Applicable
VI Shareholding reducing restriction to controlling shareholders, actual controlling
parties, restructuring parties and other commitment-making entities
72
□Applicable □√Not Applicable
4.The specific implementation of share repurchase during the reporting period
The implementation progress of share repurchase.
□Applicable □√Not Applicable
The implementation progress of the reduction of the shares repurchase through
centralized bidding
□Applicable □√Not Applicable
73
Chapter VIII Preferred Shares
□Applicable □√Not Applicable
JMC had no preferred shares in the reporting period.
74
Chapter IX Bond related Information
□Applicable √Not Applicable
75
Chapter X Financial Statements
Type of Audit Report Standard and Unqualified Opinion
Signature date March 28, 2022
Name of Auditor PricewaterhouseCoopers Zhong Tian LLP
Document No. of Audit Report PwC ZT Shen Zi (2022) No. 10080
76
Auditor’s Report
PwC ZT Shen Zi (2022) No. 10080
(Page 1 of 5)
To the shareholders of Jiangling Motors Corporation, Ltd.,
Opinion
What we have audited
We have audited the accompanying financial statements of Jiangling Motors Corporation, Ltd.
(hereinafter “Jiangling Motors”), which comprise:
the consolidated and company balance sheets as at 31 December 2021;
the consolidated and company income statements for the year then ended;
the consolidated and company cash flow statements for the year then ended;
the consolidated and company statements of changes in equity for the year then ended;
and
notes to the financial statements.
Our opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and company’s financial position of Jiangling Motorsas at 31 December 2021, and
their financial performance and cash flows for the year then ended in accordance with the
requirements of the Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Jiangling Motors in accordance with the Code of Ethics for Professional
Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have
fulfilled our other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Key audit matters identified in our audit is Expenditures on research and development.
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PwC ZT Shen Zi (2022) No. 10080
(Page 2 of 5)
Key Audit Matters (Cont’d)
Key Audit Matters How our audit addressed the Key Audit Matter
Expenditures on research We understood, evaluated and tested the internal controls
and development related to the expenditures on research and development.
Please refer to Note 2(14)(e) We obtained a breakdown, by value, of all individual research
and Note 4(16) to the financial and development projects and reconciled this to the amounts of
statements. research and development expenses and capitalised research
and development projects, which were recorded in the general
We focussed on this matter ledger, identifying no reconciling differences.
due to the incurred amount of
research and development We tested the projects where research and development
expenditures is expenses were in excess of RMB21,000,000, together with a
RMB1,886,139,707, among sample of randomly selected immaterial projects from the
which the amount of the remaining population, as follows:
development costs capitalised We obtained the lists of expenses by nature on selected
is RMB 177,125,536 in 2021 projects and inspected contracts and underlying
and the fact that there is invoices which were directly related to those projects.
management’s judgement We also checked the reasonableness of the indirect
involved in assessing whether expenses attributable to relevant projects, including
the criteria set out in the employment costs and depreciation expenses, by
accounting policies(Note understanding the allocating method and inspecting
2(14)(e)), required for
the supporting for the assembling and allocating
capitalisation of such
process of those indirect expenses.
development costs had been
met, particularly: We compared the recorded research and development
Technical feasibility of the costs of the above projects to their budgeted amounts
project and discussed the progress of the above projects with
Likelihood of the the project managers.
generating of sufficient
future economic benefits We found no material issues arising from the above procedures.
Timing to start
capitalisation
We obtained the lists of capitalised projects and tested those
We had particular regard to projects with the capitalised amounts over RMB21,000,000.
the fact that Jiangling Motors We obtained explanations from management of why those
has continued to invest in the projects were considered to be capital in nature, in terms of
technical improvements for its how the specific requirements of CASs No. 6 - Intangible Assets
automobile products, and were met. We also conducted interviews with individual project
therefore we focussed on the managers responsible for those projects selected to corroborate
accuracy and completeness of these explanations, which enabled us to independently assess
recorded research and whether the projects met all the criteria for capitalisation set
development expenditures out in accounting standards. In addition, we reviewed the
and whether the economic selected projects’ inspection reports at different phases
benefits of the projects under including the reports which indicated that the subject projects
development supported the entered into developmental stage and related management and
amounts capitalised. board meeting minutes. We found the information we gathered
from those documents to be consistent with explanations
As part of our work we also obtained from individual project managers and to be in line
focussed on management’s with management’s assessment that the costs met the relevant
judgements regarding capitalisation criteria. We considered management’s
whether capitalised costs judgements on whether those selected projects should be
were of a development stage capitalised were appropriate.
rather than research stage
(which would result in the
costs being expensed rather
than capitalised), and
78
whether costs, including
employment costs, were
directly attributable to
relevant projects.
PwC ZT Shen Zi (2022) No. 10080
(Page 3 of 5)
Other Information
Management of Jiangling Motors is responsible for the other information. The other information
comprises all of the information included in 2021 annual report of Jiangling Motors other than the
financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of Management and the Audit Committee for the Financial Statements
Management of Jiangling Motors is responsible for the preparation and fair presentation of these
financial statements in accordance with the CASs, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing these financial statements, management is responsible for assessing Jiangling Motors’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intend to liquidate Jiangling
Motors or to cease operations, or have no realistic alternative but to do so.
The Audit Committee is responsible for overseeing Jiangling Motors’sfinancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with CSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
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Auditor’s Responsibilities for the Audit of the Financial Statements(Cont’d)
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt onJiangling Motors’s ability of
to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in these financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause Jiangling Motors to cease to continue as a going concern.
Evaluate the overall presentation (including the disclosures), structure and content of the
financial statements, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within Jiangling Motors to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
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Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
From the matters communicated with the Audit Committee, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
PricewaterhouseCoopers Zhong TianLLP Signing CPA
———————————
Lei Fang (Engagement Partner)
Shanghai, the People’s Republic of China Signing CPA ———————————
28 March 2022 Ye Dan
81
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF THE AUDITORS
31 DECEMBER 2021
82
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEET AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
Assets Notes 31 December2021 31 December 2020 31 December 2021 31 December 2020
Consolidated Consolidated Company Company
Current assets
Cash and cash equivalents 4(1) 9,569,051,314 11,121,955,129 7,706,280,711 8,473,562,045
Financial assets held for
trading 4(2) 100,242,329 803,892,985 - 502,797,917
Notes receivable 4(3) 119,783,900 - 300,000,000 -
4(4)、
Accounts receivable 15(1) 2,994,798,227 2,999,883,212 1,409,320,240 3,330,880,651
Financing receivables 4(5) 201,511,670 815,583,669 13,725,275 29,412,448
Advances to suppliers 4(6) 497,302,198 452,714,683 496,546,531 451,832,917
4(7)、
Other receivables 15(2) 399,983,736 128,989,573 400,787,837 1,359,907,223
Inventories 4(8) 1,974,728,632 2,086,605,692 1,974,728,632 2,020,079,494
Current portion of non-current
assets 4(10) 13,236,153 - 13,236,153 -
Other current assets 4(9) 984,174,056 737,369,737 881,324,652 678,079,950
Total current assets 16,854,812,215 19,146,994,680 13,195,950,031 16,846,552,645
Non-current assets
Long-term receivables 4(11) 44,952,638 - 44,952,638 -
4(12)
、
Long-term equity investments 15(3) 257,251,255 39,496,548 1,103,802,245 1,561,496,548
Fixed assets 4(13) 6,029,302,031 5,165,956,410 5,497,170,652 4,331,796,677
Construction in progress 4(14) 448,338,672 1,535,497,770 448,112,420 1,429,348,858
Right-of-use assets 4(15) 306,225,810 28,405,890 304,449,400 28,405,890
Intangible assets 4(16) 1,073,881,961 931,391,553 844,988,965 637,918,837
Development expenditures 4(16) 111,004,350 173,473,242 111,004,350 173,473,242
Deferred tax assets 4(17) 1,233,315,188 1,163,969,325 285,288,625 370,120,915
Total non-current assets 9,504,271,905 9,038,190,738 8,639,769,295 8,532,560,967
TOTAL ASSETS 26,359,084,120 28,185,185,418 21,835,719,326 25,379,113,612
83
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEET AS AT 31 DECEMBER
2021(CONTINUED)
(All amounts in RMB Yuan unless otherwise stated))
31 December 2021 31 December 2020 31 December 2021 31 December 2020
Liabilities and equity Notes Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 4(19) 300,000,000 500,000,000 300,000,000 500,000,000
Derivative financial liabilities 4(20) 10,704,619 3,716,727 10,704,619 3,716,727
Accounts payable 4(21) 9,702,584,830 10,026,215,877 9,702,584,830 10,022,399,964
Contract liabilities 4(22) 272,274,177 558,526,846 67,392,485 42,397,868
Employee benefits payable 4(23) 766,986,525 759,368,606 690,921,936 687,984,808
Taxes payable 4(24) 287,171,720 218,445,227 111,626,950 95,599,544
Other payables 4(25) 5,253,800,805 4,153,849,625 1,985,838,271 1,495,307,482
Current portion of non-current
liabilities 4(26) 78,039,188 10,909,163 76,893,591 10,909,163
Other current liabilities 4(27) 420,456,813 410,899,328 35,663,765 39,220,370
Total current liabilities 17,092,018,677 16,641,931,399 12,981,626,447 12,897,535,926
Non-current liabilities
Long-term borrowings 4(28) 2,087,537 2,563,666 2,087,537 2,563,666
Lease liabilities 4(29) 263,409,414 18,998,952 262,016,700 18,998,952
Provisions 4(30) 197,587,164 195,896,139 - -
Deferred income 4(31) 49,074,545 49,944,625 49,074,545 49,944,625
Long-term employee benefits
payable 4(32) 55,684,000 62,855,000 55,370,000 62,561,000
Deferred tax liabilities 4(17) 24,000,545 126,995,164 - 102,300,000
Other non-current liabilities 4(33) 119,777,649 99,526,464 108,673,373 90,866,994
Total non-current liabilities 711,620,854 556,780,010 477,222,155 327,235,237
Total liabilities 17,803,639,531 17,198,711,409 13,458,848,602 13,224,771,163
Equity
Share capital 4(34) 863,214,000 863,214,000 863,214,000 863,214,000
Capital surplus 4(35) 839,442,490 839,442,490 839,442,490 839,442,490
Other comprehensive income 4(36) (16,422,750) (11,759,250) (16,684,500) (12,021,750)
Surplus reserve 4(37) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 4(38) 6,437,603,849 8,863,969,769 6,259,291,734 10,032,100,709
Total equity attributableto
shareholders of the Company 8,555,444,589 10,986,474,009 8,376,870,724 12,154,342,449
Minority interests - - - -
Total equity 8,555,444,589 10,986,474,009 8,376,870,724 12,154,342,449
TOTAL LIABILITIES AND
EQUITY 26,359,084,120 28,185,185,418 21,835,719,326 25,379,113,612
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
84
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE YEAR ENDED 31
DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
2021 2020 2021 2020
Item Notes
Consolidated Consolidated Company Company
Revenue 4(39)、15(4) 35,221,306,472 33,095,733,665 32,892,038,392 30,728,247,865
4(39)、4(45)、
Less:Cost of sales
15(4) (30,117,454,367) (27,518,509,913) (29,110,316,368) (26,277,296,318)
Taxes and surcharges 4(40) (968,148,993) (837,877,008) (928,747,793) (808,544,571)
Selling and distribution expenses 4(41)、4(45) (1,531,808,043) (1,544,737,028) (247,250,188) (226,152,644)
General and administrative
expenses 4(42)、4(45) (1,152,218,590) (1,012,347,173) (993,790,073) (806,195,496)
Research and development
expenses 4(43)、4(45) (1,709,014,171) (1,343,812,092) (1,696,132,130) (1,341,100,949)
Financial expenses 4(44) 295,755,557 197,567,513 212,372,641 179,281,512
Including: Interest expenses (23,640,234) (19,283,170) (23,561,570) (19,232,913)
Interest income 300,401,839 215,262,461 216,746,764 196,071,590
Add: Other income 4(48) 551,071,245 268,222,289 550,726,007 246,472,249
Investment income 4(49)、15(5) (568,716) 70,178,856 (46,544,278) 70,427,986
Including: Share of profit of
associates and joint ventures 4(49)、15(5) (22,245,293) (1,438,009) (21,475,697) (1,438,009)
Gains on changes in fair value 4(50) (10,638,548) 721,890 (9,785,809) (373,178)
Credit impairment losses 4(47) 14,328,162 (79,766,249) 3,505,404 (56,761,565)
Asset impairment losses 4(46) (43,273,452) (681,884,784) (1,422,816,945) (1,158,304,106)
Gains on disposal of assets 4(51) 16,977,005 (713,072) 26,312,882 (548,969)
Operating profit 566,313,561 612,776,894 (770,428,258) 549,151,816
Add: Non-operating income 4(52) 4,606,837 11,634,917 2,363,699 4,303,815
Less: Non-operating expenses 4(53) (14,448,952) (172,753,545) (14,140,968) (30,611,761)
Total profit 556,471,446 451,658,266 (782,205,527) 522,843,870
Less: Income tax expenses 4(54) 17,694,498 99,040,692 15,547,022 85,506,286
Net profit 574,165,944 550,698,958 (766,658,505) 608,350,156
Classified by continuity of
operations
Net profit from continuing
operations 574,165,944 550,698,958 (766,658,505) 608,350,156
Net profit from discontinued
operations - - - -
Classified by ownership of the
equity
Minority interests - - - -
Attributable to shareholders of
the Company 574,165,944 550,698,958 (766,658,505) 608,350,156
Other comprehensive income,
net of tax
Attributable to shareholders of
the Company
Other comprehensive income
items which will not be
reclassified to profit or loss
Changes arising from
remeasurement of defined
benefit plan 4(36) (4,663,500) (363,750) (4,662,750) (405,000)
Attributable to minority interests - - - -
Total comprehensive income 569,502,444 550,335,208 (771,321,255) 607,945,156
Attributable to shareholders of
the Company 569,502,444 550,335,208 (771,321,255) 607,945,156
Attributable to minority interests - - - -
Earnings per share
Basic earnings per share(RMB
Yuan) 4(55) 0.67 0.64 —— ——
Diluted earnings per share(RMB
Yuan) 4(55) 0.67 0.64 —— ——
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
85
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
2021 2020 2021 2020
Item Notes
Consolidated Consolidated Company Company
Cash flows from operating activities
Cash received from sales of goods or
rendering of services 39,004,121,378 35,125,114,857 37,770,178,605 30,135,915,527
Cash received relating to other operating
activities 4(56) 736,780,886 445,795,274 613,181,977 348,244,836
Sub-total of cash inflows 39,740,902,264 35,570,910,131 38,383,360,582 30,484,160,363
Cash paid for goods and services (30,184,229,122) (25,087,676,080) (29,501,916,289) (24,034,906,418)
Cash paid to and on behalf of employees (2,621,245,572) (2,140,291,935) (2,458,757,584) (1,934,667,949)
Payments of taxes and surcharges (2,262,657,388) (1,797,705,380) (1,819,787,242) (1,561,759,004)
Cash paid relating to other operating
activities 4(56) (2,912,577,172) (2,846,893,908) (1,742,292,716) (1,708,207,234)
Sub-total of cash outflows (37,980,709,254) (31,872,567,303) (35,522,753,831) (29,239,540,605)
Net cash flows from operating activities 4(57) 1,760,193,010 3,698,342,828 2,860,606,751 1,244,619,758
Cash flows from investing activities
Cash received from disposal of
investments 2,500,000,000 15,307,000,000 2,142,000,000 17,624,568,383
Cash received from returns on investments 15,174,593 77,849,662 3,894,456 75,400,552
Net cash received from disposal of fixed
assets, intangible assets and other long-
term assets 37,460,481 32,672,679 36,440,992 30,206,852
Cash received from disposal of
subsidiaries and other business units 84,615,031 - 108,000,000 -
Cash received relating to other investing
activities 4(56) 278,704,216 191,356,815 215,581,457 249,783,971
Sub-total of cash inflows 2,915,954,321 15,608,879,156 2,505,916,905 17,979,959,758
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets (1,169,407,698) (1,410,515,107) (1,158,649,784) (1,357,972,695)
Cash paid to acquire investments (1,800,000,000) (16,107,000,000) (1,720,252,413) (18,467,738,455)
Cash paid relating to other investing
activities (25,184,522) (4,802,479) (20,697,147) (4,802,479)
Sub-total of cash outflows (2,994,592,220) (17,522,317,586) (2,899,599,344) (19,830,513,629)
Net cash flows from investing activities (78,637,899) (1,913,438,430) (393,682,439) (1,850,553,871)
Cash flows from financing activities
Cash received from borrowings 1,484,497,639 2,291,211,222 1,484,497,639 2,291,211,222
Sub-total of cash inflows 1,484,497,639 2,291,211,222 1,484,497,639 2,291,211,222
Cash repayments of borrowings (1,700,425,493) (1,800,450,682) (1,700,425,493) (1,800,450,682)
Cash payments for distribution of
dividends, profits or interest expenses (3,002,467,779) (78,895,390) (3,002,467,779) (78,895,390)
Cash paid relating to other financing
activities 4(56) (16,063,293) (12,751,077) (15,810,013) (10,297,938)
Sub-total of cash outflows (4,718,956,565) (1,892,097,149) (4,718,703,285) (1,889,644,010)
Net cash flows from financing activities (3,234,458,926) 399,114,073 (3,234,205,646) 401,567,212
Effect of foreign exchange rate changes
on cash and cash equivalents - - - -
Net increase/(decrease) in cash and
cash equivalents 4(57) (1,552,903,815) 2,184,018,471 (767,281,334) (204,366,901)
Add: Cash and cash equivalents at
beginning of year 4(57) 11,121,955,129 8,937,936,658 8,473,562,045 8,677,928,946
Cash and cash equivalents at end of
year 4(57) 9,569,051,314 11,121,955,129 7,706,280,711 8,473,562,045
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
86
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Other Minority
Item Notes Share Capital Surplus Retained Total equity
comprehensive interests
capital surplus reserve earnings
income
Balance at 1 January 2020 863,214,000 839,442,490 (11,395,500) 431,607,000 8,373,695,791 - 10,496,563,781
Movements for the year ended31 December 2020 - - (363,750) - 490,273,978 - 489,910,228
Total comprehensive income
Net profit - - - - 550,698,958 - 550,698,958
Other comprehensive income - - (363,750) - - - (363,750)
Total comprehensive income for the year - - (363,750) - 550,698,958 - 550,335,208
Profit distribution
Distribution to shareholders 4(38) - - - - (60,424,980) - (60,424,980)
Balance at 31 December 2020 863,214,000 839,442,490 (11,759,250) 431,607,000 8,863,969,769 - 10,986,474,009
Balance at 1 January 2021 863,214,000 839,442,490 (11,759,250) 431,607,000 8,863,969,769 - 10,986,474,009
Movements for the year ended31 December 2021 - - (4,663,500) - (2,426,365,920) - (2,431,029,420)
Total comprehensive income
Net profit - - - - 574,165,944 - 574,165,944
Other comprehensive income - - (4,663,500) - - - (4,663,500)
Total comprehensive income for the year - - (4,663,500) - 574,165,944 - 569,502,444
Profit distribution
Distribution to shareholders 4(38) - - - - (3,000,531,864) - (3,000,531,864)
Balance at 31 December 2021 863,214,000 839,442,490 (16,422,750) 431,607,000 6,437,603,849 - 8,555,444,589
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
87
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB unless otherwise stated)
Other
Share Capital
Item Notes comprehensive Surplus reserve Retained earnings Total equity
capital surplus
income
Balance at 1 January 2020 863,214,000 839,442,490 (11,616,750) 431,607,000 9,484,175,533 11,606,822,273
Movements for the year ended
31 December 2020 - - (405,000) - 547,925,176 547,520,176
Total comprehensive income
Net profit - - - - 608,350,156 608,350,156
Other comprehensive income - - (405,000) - - (405,000)
Total comprehensive income
for the year - - (405,000) - 608,350,156 607,945,156
Profit distribution
Distribution to shareholders 4(38) - - - - (60,424,980) (60,424,980)
Balance at 31 December 2020 863,214,000 839,442,490 (12,021,750) 431,607,000 10,032,100,709 12,154,342,449
Balance at 1 January 2021 863,214,000 839,442,490 (12,021,750) 431,607,000 10,032,100,709 12,154,342,449
Movements for the year ended
31 December 2021 - - (4,662,750) - (3,772,808,975) (3,777,471,725)
Total comprehensive income
Net profit - - - - (766,658,505) (766,658,505)
Other comprehensive income - - (4,662,750) - - (4,662,750)
Total comprehensive income
for the year - - (4,662,750) - (766,658,505) (771,321,255)
Profit distribution
Distribution to shareholders 4(38) - - - - (3,000,531,864) (3,000,531,864)
Others - - - - (5,618,606) (5,618,606)
Balance at 31 December 2021 863,214,000 839,442,490 (16,684,500) 431,607,000 6,259,291,734 8,376,870,724
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
88
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information
Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi
Motors Manufacturing Factory on 16 June 1992. The registration number of the enterprise
business license is No. 913600006124469438. The registered address of the Company
and the address of its headquarters are both Nanchang City, Jiangxi Province of the
People’s Republic of China (“the PRC”).
On 23 July 1993, with the approval of the China Securities Regulatory Commission
(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi
[1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1
December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of
25,214,000 shares were distributed for the 1993 dividend distribution programme with the
approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group
(Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi
[1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Office Fu
[1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998,
with the approval of CSRC (Zheng Jian Fa Zi [1998] No. 19), the Company issued
additional 170,000,000 B shares.
According to the resolution of the shareholders’ meeting regarding the split share structure
reform on 11 January 2006, the Company implemented the Scheme on Split Share
Structure Reform on 13 February 2006. After the implementation, the Company’s total
paid-in capital remains the same. Related details are disclosed in Note 4(34).
As at 31 December 2021, the Company’s paid-in capital totalled RMB863,214,000, with
par value of RMB1 per share.
The business scope of the Company and its subsidiaries (hereinafter “the Group”)
includes production and sales of automobile assemblies such as automobiles, special
(modified) vehicles, engines and chassis and other automobile parts, and provision of
related after-sales services; retail and wholesale of imported E series automobiles of Ford
Motor (China) Co., Ltd. (“FORD”) as the dealer; import and export of automobiles and
parts; dealership of used cars; provision enterprise management and consulting services
related to production and sales of automobiles.
Subsidiaries included in the consolidation scope for the current year are detailed in Note
6.
These financial statements were authorised for issue by the Company's Board of Directors
on 28th March 2022.
2 Summary of significant accounting policies and accounting estimates
The Group determines specific accounting policies and estimates based on the features of
its production and operation, which mainly comprise the measurement of expected credit
losses (“ECL”) on receivables (Note 2(8)), valuation of inventories (Note 2(9)),
depreciation of fixed assets and amortisation of intangible assets and right-of-use assets
(Note 2(11), (14), (22)), criteria for capitalisation of development expenditures (Note
2(14)), recognition and measurement of revenue (Note 2(19)), etc.
Key judgements and critical accounting estimates and key assumptions applied by the
Group on the determination of significant accounting policies are set out in Note 2(24).
89
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for
Business Enterprises - Basic Standard, specific accounting standards and relevant
regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent
periods (hereinafter collectively referred to as “the Accounting Standards for Business
Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of
Information Disclosure by Companies Offering Securities to the Public No.15 - General
Rules on Financial Reporting issued by CSRC.
As at 31 December 2021, the Group's net current liabilities amounted to
RMB237,206,462. Of which, the contract liabilities amount to RMB272,274,177will be
recognised in revenue within 12 months after the balance sheet date. The reason for the
occurrence of net current liabilities at the end of this year was mainly due to the significant
amount of cash dividends distributed to all shareholders by the Company this year(Note 4
(38)). Considering the 12-month cash flow projection of the Group provided by the
management, including the expected netoperation cash inflows and the bank facilities
available, as well as the dividends distribution plan proposed by the Board of Directors
and the expected net investment cash outflows, the management expected that the Group
has enough funds to cover maturing debt and maintain the usual operation in the next 12
months. Accordingly, the management of the Company prepared the financial statements
on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2021 are in
compliance with the Accounting Standards for Business Enterprises, and truly and
completely present the consolidated and company’s financial position of the Company. As
at 31 December 2021 and their financial performance, cash flows and other information
for the year then ended.
(3) Fiscal year
The Company’s fiscal year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (“RMB”). The financial statements are presented in
RMB.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company
and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are
de-consolidated from the date that such control ceases. For a subsidiary that is acquired
in a business combination involving enterprises under common control, it is included in the
consolidated financial statements from the date when it, together with the Company,
comes under common control of the ultimate controlling party. The portion of the net
profits realised before the combination date is presented separately in the consolidated
income statement.
90
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(5) Preparation of consolidated financial statements (Cont'd)
In preparing the consolidated financial statements, where the accounting policies or the
accounting periods of the Company and subsidiaries are inconsistent, the financial
statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business
combinations involving enterprises not under common control, the individual financial
statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in
the consolidated financial statements. The portion of subsidiaries’ shareholders' equity
and the portion of subsidiaries’ net profits and losses and comprehensive income for the
period not attributable to the Company are recognised as minority interests, net profit
attributed to minority interests and total comprehensive income attributed to minority
interests, and presented separately in the consolidated financial statements under
shareholders' equity, net profits and total comprehensive income respectively. If the
subsidiaries’ loss for the current period attributed to the minority shareholders exceeds
their share in the opening shareholder’s equity, the excess will be deducted against the
minority interests. Unrealised profits and losses resulting from the sale of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to owners of
the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary
to the Company are eliminated and allocated between net profit attributable to owners of
the parent and net profit attributed to minority interests in accordance with the allocation
proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the
sale of assets by one subsidiary to another are eliminated and allocated between net profit
attributable to owners of the parent and net profit attributed to minority interests in
accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at
the Group level and at the Company or its subsidiary level, adjustment will be made from
the perspective of the Group.
The Group remeasure the remaining investment held at its fair value in the consolidated
statement of financial position when the control is lost because of the partially disposal of
the equity or other reasons. The difference between the consideration of the disposal as
well as the fair value of the remaining investment and the share of net assets of the former
subsidiary calculated based on the original share since the acquisition date as well as the
good will is recognised in investment income in the period of control lost. In addition, the
other comprehensive income and other changes in owner's equity related to the
investment of the former subsidiary, are reclassified to profit or loss when the control is
lost, except for the changes arising from remeasurement of net liabilities or net assets of
defined benefit, the accumulated changes in fair value from the equity instruments not
held for trading and designated as financial assets at fair value through other
comprehensive income by the investee.
(6) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on
demand, and short-term and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
91
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(7) Foreign currency translation
Foreign currency transactions
Foreign currency transactions are translated into recording currency using the exchange
rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are
translated into recording currency using the spot exchange rates on the balance sheet
date. Exchange differences arising from these translations are recognised in profit or loss
for the current period, except for those attributable to foreign currency borrowings that
have been taken out specifically for acquisition or construction of qualifying assets, which
are capitalised as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical costs are translated at the balance sheet
date using the spot exchange rates at the date of the transactions. The effect of exchange
rate changes on cash is presented separately in the cash flow statement.
(8) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial
liability is recognised when the Group becomes a party to the contractual provisions of the
instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets, financial assets are classified as: (1) financial
assets at amortised cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction
costs that are attributable to the acquisition of the financial assets are included in the
initially recognised amounts, except for the financial assets at fair value through profit or
loss, the related transaction costs of which are recognised directly in profit or loss for the
current period. Accounts receivable or notes receivable arising from sales of products or
rendering of services (excluding or without regard to significant financing components) are
initially recognised at the consideration that is entitled to be charged by the Group as
expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of
financial liabilities from the perspective of the issuer, and are measured in the following
three ways:
Measured at amortised cost:
The objective of the Group’s business model is to hold the financial assets to collect the
contractual cash flows, and the contractual cash flow characteristics are consistent with a
basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount
outstanding. The interest income of such financial assets is recognised using the effective
interest method. Such financial assets mainly include cash at bank and on hand, notes
receivable, accounts receivable, other receivables and long-term receivables, etc.
92
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
Measured at fair value through other comprehensive income:
The objective of the Group’s business model is to hold the financial assets to both collect
the contractual cash flows and sell such financial assets, and the contractual cash flow
characteristics are consistent with a basic lending arrangement. Such financial assets are
measured at fair value through other comprehensive income, except for the impairment
gains or losses, foreign exchange gains and losses, and interest income calculated using
the effective interest method which are recognised in profit or loss for the current period.
Such financial assets mainly include financing receivables, etc.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or
those measured at fair value through other comprehensive income, are measured at fair
value through profit or loss. At initial recognition, the Group does not designate a portion
of financial assets as at fair value through profit or loss to eliminate or significantly reduce
an accounting mismatch. Financial assets that are due in more than one year as from the
balance sheet date and are expected to be held for over one year are included in other
non-current financial assets, and the others are included in financial assets held for
trading.
93
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment
Loss provision for financial assets at amortised cost and investments in debt instruments
at fair value through other comprehensive income is recognised on the basis of ECL.
Giving consideration to reasonable and supportable information on past events, current
conditions and forecasts of future economic conditions, as well as the default risk weight,
the Group recognises the ECL as the probability-weighted amount of the present value of
the difference between the cash flows receivable from the contract and the cash flows
expected to collect.
As at each balance sheet date, the ECL of financial instruments at different stages are
measured respectively. 12-month ECL provision is recognised for financial instruments in
Stage 1 that have not had a significant increase in credit risk since initial recognition;
lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a
significant increase in credit risk yet without credit impairment since initial recognition; and
lifetime ECL provision is recognised for financial instruments in Stage 3 that have had
credit impairment since initial recognition.
For the financial instruments with low credit risk on the balance sheet date, the Group
assumes there is no significant increase in credit risk since initial recognition and
recognises the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with low credit risk, the Group
calculates the interest income by applying the effective interest rate to the gross carrying
amount (before deduction of the impairment provision). For the financial instrument in
Stage 3, the interest income is calculated by applying the effective interest rate to the
amortised cost (after deduction of the impairment provision from the gross carrying
amount).
For notes receivable, accounts receivable and financing receivables arising from sales of
goods and rendering of services in the ordinary course of operating activities, the Group
measures the lifetime ECL provision regardless of whether there is a significant financing
component.
94
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont'd)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
In case the ECL of an individually assessed financial asset can be evaluated with reasonable
cost, the Group determines the ECL based on impairment assessment of an individual financial
asset. In case the ECL of an individually assessed financial asset cannot be evaluated with
reasonable cost, the Group divides the receivables into certain groupings based on credit risk
characteristics, and calculates the ECL for the groupings. Basis for determining groupings and
related provision method are as follows:
Grouping - Bank acceptance notes State-owned banks and joint stock banks
Grouping - Trade acceptance notes Customers purchasing using Trade acceptance
Grouping - Sales of general automobiles: Customers of general automobiles
Grouping - Sales of new energy automobiles Customers of new energy automobiles
Grouping - Sales of automobile parts Customers of automobile parts
Grouping -operating advances and
guarantees Operating advances and guarantees
Grouping –Others Accrued interest on cash at bank
For accounts receivable that are classified into groupings and notes receivable and financing
receivables arising from sales of goods and rendering of services in the ordinary course of
operating activities, the Group calculates the ECL with reference to historical credit losses
experience, current conditions and forecasts of future economic conditions, and based on the
exposure at default and the lifetime ECL rate. For other notes receivable, financing receivables
and other receivables classified into groupings, the Group calculates the ECL with reference to
the historical credit loss experience, current conditions and forecasts of future economic
conditions, and based on the exposure at default and the 12-month or lifetime ECL rate.
The Group recognises the loss provision made or reversed into profit or loss for the current
period. For debt instruments held at fair value through other comprehensive income, the Group
adjusts other comprehensive income while the impairment loss or gain is recognised in profit or
loss for the current period.
95
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont'd)
(a) Financial assets (Cont’d)
(iii) Derecognition
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the
financial asset expire, (ii) the financial asset has been transferred and the Group transfers
substantially all the risks and rewards of ownership of the financial asset to the transferee,
or (iii) the financial asset has been transferred and the Group has not retained control of
the financial asset, although the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset.
When a financial asset is derecognised, the difference between the carrying amount and
the sum of the consideration received and the cumulative changes in fair value that are
previously recognised directly in other comprehensive income is recognised in profit or
loss for the current period.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial
liabilities at fair value through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost,
including notes payable, accounts payable, other payables, borrowings, etc. Such
financial liabilities are initially recognised at fair value, net of transaction costs incurred,
and subsequently measured using the effective interest method. Financial liabilities that
are due within one year (inclusive) are classified as current liabilities; those with maturities
over one year but are due within one year (inclusive) as from the balance sheet date are
classified as current portion of non-current liabilities. Others are classified as non-current
liabilities.
A financial liability is derecognised or partly derecognised when the underlying present
obligation is discharged or partly discharged. The difference between the carrying amount
of the derecognised part of the financial liability and the consideration paid is recognised
in profit or loss for the current period.
96
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at
the quoted price in the active market. The fair value of a financial instrument that is not
traded in an active market is determined by using a valuation technique. In valuation, the
Group adopts valuation techniques applicable in the current situation and supported by
adequate available data and other information, selects inputs with the same characteristics
as those of assets or liabilities considered in relevant transactions of assets or liabilities by
market participants, and gives priority to the use of relevant observable inputs. When
relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(9) Inventories
(a) Classification
Inventories include raw materials, work in progress products, finished goods, materials in
transit, low value consumables, materials consigned for processing, etc., and are
measured at the lower of cost and net realisable value.
(b) Costing of inventories
Cost is determined using the weighted average method. The cost of finished goods and
work in progress comprise raw materials, direct labour and systematically allocated
production overhead based on the normal production capacity.
(c) Basis for determining net realisable value of inventories and method for making provision
for inventories
Provision for inventories is determined at the excess amount of the carrying amounts of
the inventories over their net realisable value. Net realisable value is determined based on
the estimated selling price in the ordinary course of business, less the estimated costs to
completion and estimated costs necessary to make the sale and related taxes.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation methods of low-value consumables
Low-value consumables are amortised into expenses in full when issued for use.
97
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries, and the Group’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control.
Associates are the investees that the Group has a significant influence on their financial
and operating decisions.
Investments in subsidiaries are presented using the cost method in the Company’s
financial statements, and adjusted to the equity method when preparing the consolidated
financial statements. Investments in associates are accounted for using the equity
method.
(a) Determination of investment cost
For long-term equity investments acquired through a business combination involving
enterprises under common control, the investment cost shall be the absorbing party’s
share of the carrying amount of owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at the combination date;
for long-term equity investments acquired through a business combination not involving
enterprises under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination, such as
long-term equity investments acquired by payment in cash, the initial investment cost shall
be the purchase price actually paid; for long-term equity investments acquired by issuing
equity securities, the initial investment cost shall be the fair value of the equity securities
issued.
(b) Subsequent measurement and recognition of profit or loss
Long-term equity investments accounted for using the cost method are measured at the
initial investment cost. Cash dividend or profit distribution declared by an investee is
recognised as investment income into profit or loss for the current period.
Where the initial investment cost exceeds the Group’s share of the fair value of the
investee’s identifiable net assets at the time of acquisition, the investment is initially
measured at that cost. Where the initial investment cost is less than the Group’s share of
the fair value of the investee’s identifiable net assets at the time of acquisition, the
difference is included in profit or loss for the current period and the cost of the long-term
equity investment is adjusted upwards accordingly.
98
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments (Cont’d)
(b) Subsequent measurement and recognition of profit or loss (Cont’d)
For long-term equity investments accounted for using the equity method, the Group
recognises the investment income or losses according to its share of net profit or loss of
the investee. The Group does not recognise further losses when the carrying amounts of
the long-term equity investment together with any long-term interests that, in substance,
form part of the Group’s net investment in investees are reduced to zero. However, if the
Group has obligations for additional losses and the criteria with respect to recognition of
provisions are satisfied, the Group continues recognising the investment losses and the
provisions at the amount it expects to undertake. The Group’s share of the changes in
investee’s owner's equity other than those arising from the net profit or loss, other
comprehensive income and profit distribution is recognised in capital surplus with a
corresponding adjustment to the carrying amounts of the long-term equity investment. The
carrying amount of the investment is reduced by the Group’s share of the profit distribution
or cash dividends declared by the investees. Unrealised gains or losses on transactions
between the Group and its investees are eliminated to the extent of the Group’s equity
interest in the investees, based on which the investment income or losses are recognised.
Any losses resulting from transactions between the Group and its investees, which are
attributable to asset impairment losses are not eliminated.
(c) Basis for determining existence of control and significant influence over investees
Control is the power over investees that can bring variable returns through involvement in
related activities of investees and the ability to influence the returns by using such power
over investees.
Significant influence is the power to participate in making decisions on financial and
operating policies of the investee but is not control or joint control over making those
policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries and associates is
reduced to the recoverable amounts when the recoverable amounts are below their
carrying amount (Note 2(15)).
(11) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, Vehicles, moulds, and
electronic and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will
flow to the Group and the costs can be reliably measured. Fixed assets purchased or
constructed by the Group are initially measured at cost at the time of acquisition. The fixed
assets contributed by the state-owned shareholders upon the restructuring of the
Company are recorded at the valued amount determined by the state-owned asset
administration department.
99
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Fixed assets (Cont’d)
(a) Recognition and initial measurement of fixed assets (Cont’d)
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed
asset when it is probable that the associated economic benefits will flow to the Group and
the related cost can be reliably measured. The carrying amount of the replaced part is
derecognised. All the other subsequent expenditures are recognised in profit or loss for
the period in which they are incurred.
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the
assets to their estimated net residual values over their estimated useful lives. For the fixed
assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining
useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage
of cost and the annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual depreciation
lives residual values rates
Buildings 35 to 40 years 4% 2.4% to 2.7%
Machinery and equipment 10 to 15 years 4% 6.4% to 9.6%
Vehicles 5 to 10 years 4% 9.6% to 19.2%
Moulds 5 years - 20%
Electronic and other
equipment 5 to 7 years 4% 13.7% to 19.2%
The estimated useful life and the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed and adjusted as appropriate at
each year-end.
(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(15)).
(d) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The amount of proceeds from disposals on sale,
transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes
and expenses is recognised in profit or loss for the current period.
100
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction
costs, installation costs, borrowing costs that are eligible for capitalisation and other costs
necessary to bring the construction in progress ready for their intended use. Construction
in progress is transferred to fixed assets when the assets are ready for their intended use,
and depreciation is charged starting from the following month. The carrying amount of
construction in progress is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 2(15)).
(13) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an
asset that needs a substantially long period of time for its intended use commence to be
capitalised and recorded as part of the cost of the asset when expenditures for the asset
and borrowing costs have been incurred, and the activities relating to the acquisition and
construction that are necessary to prepare the asset for its intended use have
commenced. The capitalisation of borrowing costs ceases when the asset under
acquisition or construction becomes ready for its intended use and the borrowing costs
incurred thereafter are recognised in profit or loss for the current period. Capitalisation of
borrowing costs is suspended during periods in which the acquisition or construction of an
asset is interrupted abnormally and the interruption lasts for more than 3 months, until the
acquisition or construction is resumed.
The capitalised amount of specific borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the interest expenses incurred in the
current period less interest income of the unused borrowings deposited at banks or
investment income from temporary investments.
The capitalised amount of general borrowings intended to be used for the acquisition or
construction of qualifying assets is determined by the weighted average of the excess of
accumulated capital expenditure over capital expenditure of the special borrowings
multiplied by the weighted average effective interest rate of the utilised general
borrowings. The effective interest rate is the rate at which the future cash flows of the
borrowings over the expected lifetime or a shorter applicable period are discounted into
the initial recognised amount of the borrowings.
(14) Intangible assets
Intangible assets include land use rights, software use fees, non-patent technologies and
after-sales service management mode, and are measured at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of
50 years. If the acquisition costs of the land use rights and the buildings located thereon
cannot be reasonably allocated between the land use rights and the buildings, all of the
acquisition costs are recognised as fixed assets.
101
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(b) Software use fees
Software use fees are amortised on a straight-line basis over the estimated useful life of 5
years.
(c) Non-patent technologies
Non-patent technologies are amortised on the straight-line basis over the estimated useful
life of 5 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation
method is performed at each year-end, with adjustment made appropriately.
(e) Research and development
The expenditure on an internal research and development project is classified into
expenditure on the research phase and expenditure on the development phase based on
its nature and whether there is material uncertainty that the research and development
activities can form an intangible asset at the end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for
research on manufacturing technique of automobile products is recognised in profit or loss
in the period in which it is incurred. Prior to mass production, expenditure on the
development phase related to the design and testing phase in regard to the final
application of manufacturing technique of automobile products is capitalised only if all of
the following conditions are satisfied:
the development of manufacturing technique of automobile products has been fully
demonstrated by technical team;
management intends to complete the development of manufacturing technique of
automobile products, and use or sell it;
the research and analysis of preliminary market survey indicate that products
manufactured with manufacturing technique of automobile products are marketable;
adequate technical and financial supports are available for development of
manufacturing techniques of automobile products and subsequent mass production;
and
expenditure on development of manufacturing techniques of automobile products can
be reliably collected.
Other expenditures on the development phase that do not meet the conditions above are
recognised in profit or loss in the period in which they are incurred. Development
expenditures previously recognised as expenses are not recognised as an asset in a
subsequent period. Capitalised expenditure on the development phase is presented as
development expenditures in the balance sheet and transferred to intangible assets at the
date that the asset is ready for its intended use.
(f) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when
the recoverable amounts are below their carrying amounts (Note 2(15)).
102
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(15) Impairment of long-term assets
Fixed assets, construction in progress, right-of-use assets, intangible assets with finite
useful lives and long-term equity investments in subsidiaries and associates are tested for
impairment if there is any indication that the assets may be impaired at the balance sheet
date; intangible assets that are not yet available for their intended use are tested for
impairment at least once a year, irrespective of whether there is any indication of
impairment. If the result of the impairment test indicates that the recoverable amount of an
asset is less than its carrying amount, a provision for impairment and an asset impairment
loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less
disposal costs and the present value of the future cash flows expected to be derived from
the asset. Provision for asset impairment is determined and recognised on the individual
asset basis. If it is not possible to estimate the recoverable amount of an individual asset,
the recoverable amount of a group of assets to which the asset belongs is determined. A
group of assets is the smallest group of assets that is able to generate independent cash
inflows.
Goodwill that is separately presented in the financial statements is tested at least once a
year for impairment, irrespective of whether there is any indication that it may be impaired.
In conducting the test, the carrying amount of goodwill is allocated to the related asset
group or groups of asset groups which are expected to benefit from the synergies of the
business combination. If the result of the test indicates that the recoverable amount of an
asset group or a group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognised. The impairment loss is
first deducted from the carrying amount of goodwill that is allocated to the asset group or
group of asset groups, and then deducted from the carrying amounts of other assets
within the asset group or group of asset groups in proportion to the carrying amounts of
assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value
recovered in the subsequent periods.
(16) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group
in exchange for service rendered by employees or for termination of employment
relationship, which include short-term employee benefits, post-employment benefits,
termination benefits, etc.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and
subsidies, staff welfare, premiums or contributions on medical insurance, work injury
insurance and maternity insurance, housing funds, union running costs and employee
education costs, short-term paid absences, etc. The short-term employee benefits actually
occurred are recognised as a liability in the accounting period in which the service is
rendered by the employees, with a corresponding charge to the profit or loss for the
current period or the cost of relevant assets. Non-monetary benefits are measured at fair
value.
103
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee benefits (Cont'd)
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under
which the Group pays fixed contributions into a separate fund and will have no obligation
to pay further contributions; and defined benefit plans are post-employment benefit plans
other than defined contribution plans. During the reporting period, premiums or
contributions on basic pensions and unemployment insurance paid for employees belong
to defined contribution plans; supplementary retirement benefits for employees are defined
benefit plans.
(i) Defined contribution plans
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by
local authorities of Ministry of Human Resources and Social Security. Monthly payments of
premiums on the basic pensions are calculated according to the bases and percentage
prescribed by the relevant local authorities. When employees retire, the relevant local
authorities are obliged to pay the basic pensions to them. The amounts based on the
above calculations are recognised as liabilities in the accounting period in which the
service has been rendered by the employees, with a corresponding charge to the profit or
loss for the current period or the cost of relevant assets.
(ii) Defined benefit plans
The Group also provides employees with supplementary retirement benefits in addition to
the insurance system prescribed by the State. Such supplementary retirement benefits
belong to defined benefit plans. The defined benefit liabilities recognised on the balance
sheet represent the present value of defined benefit obligations less the fair value of the
plan assets. The defined benefit obligations are calculated annually by an independent
actuary using projected unit credit method at the interest rate of treasury bonds with similar
obligation term and currency. Service costs related to supplementary retirement benefits
(including current service costs, historical service costs and settled gains or losses) and
net interest are recognised in profit or loss for the current period or the cost of related
assets, and changes arising from remeasurement of net liabilities or net assets of defined
benefit plans are recognised in other comprehensive income.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with
employees before the end of the employment contracts or as an offer to encourage
employees to accept voluntary redundancy before the end of the employment contracts.
The Group recognises a liability arising from compensation for termination of the
employment relationship with employees, with a corresponding charge to profit or loss for
the current period at the earlier of the following dates: 1) when the Group cannot
unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when
the Group recognises costs or expenses for a restructuring that involves the payment of
termination benefits.
104
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee benefits (Cont'd)
(c) Termination benefits (Cont’d)
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early
retirement arrangements. The early retirement benefits refer to the salaries and social
security contributions to be paid to and for the employees who accept voluntary retirement
before the normal retirement date prescribed by the State, as approved by the
management. The Group pays early retirement benefits to those early retired employees
from the early retirement date until the normal retirement date. The Group accounts for the
early retirement benefits in accordance with the treatment for termination benefits, in
which the salaries and social security contributions to be paid to and for the early retired
employees from the off-duty date to the normal retirement date are recognised as
liabilities with a corresponding charge to the profit or loss for the current period. The
differences arising from the changes in the respective actuarial assumptions of the early
retirement benefits and the adjustments of benefit standards are recognised in profit or
loss in the period in which they occur.
The termination benefits expected to be settled within one year since the balance sheet
date are classified as employee benefits payable.
(17) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are
approved at the shareholders’ meeting.
(18) Provisions
Provisions for product warranties, compensation to suppliers, etc. are recognised when
the Group has a present obligation, it is probable that an outflow of economic benefits will
be required to settle the obligation, and the amount of the obligation can be measured
reliably.
A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Factors on a contingency, such as the risks, uncertainties
and the time value of money, are taken into account as a whole in reaching the best
estimate of a provision. Where the effect of the time value of money is material, the best
estimate is determined by discounting the related future cash outflows. The increase in the
discounted amount of the provision arising from passage of time is recognised as interest
expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
reflect the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are
classified as current liabilities.
105
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Revenue
The Group manufactures automobiles and automobile parts and sells them to distributors
and end customers. In addition, the Group also provides customers with auto maintenance
and additional quality warranty services. The Group recognises revenue at the amount of
the consideration that is entitled to be charged by the Group as expected when the
customer obtains control over relevant goods or services.
(a) Selling automobiles and automobile parts to distributors and end customers
The Group manufactures automobiles and automobile parts and sells such products to
distributors and end customers. The Group recognises revenue from sales of automobiles
after they are delivered as prescribed in the contract, customers have accepted the
products and the delivery documents have been signed by both parties. The Group
recognises revenue from sales of parts after they are delivered to the designated location
as prescribed in the contract, customers have accepted the products and the delivery
documents have been signed by both parties.
Where two or more obligations are included in a contract between the Group and the
customers, at the beginning date of the contract, the Group allocates the transaction price
to individual obligation in the relative proportion to the individual selling prices of products
or services committed in each individual obligation. When the individual selling price is
unobservable, the Group makes reasonable estimates on the individual selling price with
comprehensive consideration to all available information, and by using market adjustment
method, cost plus method, etc.
The credit periods granted by the Group to distributors and end customers are generally
within one year, which is consistent with the industry practice, and there is no significant
financing component. The Group provides product warranties for automobiles and
automobile parts as required by laws and regulations, and recognises the corresponding
provisions (Note 2(18)).
The Group provides distributors and end customers with sales discounts based on sales
volume, and related revenue is recognised at contract consideration net of the discount
amount estimated based on historical experience and using the expected value method.
(b) Rendering of services
The Group provides customers with car maintenance and additional quality warranty
services, and the revenue is recognised based on the progress of service provision within
a certain period. According to the nature of the service provided, the performance
progress is determined in accordance with the value of the labour provided to the
customer.
When the Group recognises revenue based on the stage of completion, the amount with
unconditional collection right obtained by the Group is recognised as accounts receivable,
and the rest is recognised as contract assets. Meanwhile, loss provision for accounts
receivable and contract assets are recognised on the basis of ECL (Note 2(8)). If the
contract price received or receivable exceeds the amount for the completed service, the
excess portion will be recognised as contract liabilities. Contract assets and contract
liabilities under the same contract are presented on a net basis.
106
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group
from the government, including support funds for enterprise development, financial
subsidies, etc.
Government grants are recognised when the grants can be received and the Group can
comply with all attached conditions. If a government grant is a monetary asset, it will be
measured at the amount received or receivable. If a government grant is a non-monetary
asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will
be measured at its nominal amount.
Government grants related to assets refer to government grants which are obtained by the
Group for the purposes of purchase, construction or acquisition of the long-term assets.
Government grants related to income refer to the government grants other than those
related to assets.
Government grants related to assets are recorded as deferred income and recognised in
profit or loss on a reasonable and systemic basis over the useful lives of the assets.
Government grants related to income that compensate future costs, expenses or losses
are recorded as deferred income and recognised in profit or loss in reporting the related
expenses; government grants related to income that compensate incurred costs, expenses
or losses are recognised in profit or loss directly in the current period.
The Group applies the presentation method consistently to the similar government grants
in the financial statements.
Government grants that are related to ordinary activities are included in operating profit,
otherwise, they are recorded in non-operating income.
The interest subsidies directly received from government are recorded as a reduction of
interest expenses.
107
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax bases of assets and liabilities and their carrying
amounts (temporary differences). Deferred tax asset is recognised for the deductible
losses that can be carried forward to subsequent years for deduction of the taxable profit
in accordance with the tax laws. No deferred tax liability is recognised for a temporary
difference arising from the initial recognition of goodwill. No deferred tax asset or deferred
tax liability is recognised for the temporary differences resulting from the initial recognition
of assets or liabilities due to a transaction other than a business combination, which
affects neither accounting profit nor taxable profit (or deductible loss). At the balance
sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates
that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible
losses and tax credits to the extent that it is probable that taxable profit will be available in
the future against which the deductible temporary differences, deductible losses and tax
credits can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences arising from
investments in subsidiaries and associates, except where the Group is able to control the
timing of reversal of such temporary differences, and it is probable that the temporary
differences will not reverse in the foreseeable future. When it is probable that the
deductible temporary differences arising from investments in subsidiaries and associates
will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the deductible temporary differences can be utilised, the
corresponding deferred tax assets are recognised.
Deferred tax assets and deferred tax liabilities are offset when:
the deferred tax assets and deferred tax liabilities are related to the same taxpayer
within the Group and the same taxation authority; and
that taxpayer within the Group has a legally enforceable right to offset current tax
assets against current tax liabilities.
108
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
The Group as the lessee:
At the commencement date, the Group shall recognise the right-of-use asset and measure
the lease liabilities at the present value of the lease payments that are not paid at that
date. Lease payments include fixed payments, the exercise price of a purchase option if
the lessee is reasonably certain to exercise that option, and payments of penalties for
terminating the lease if the lessee exercises an option to terminate the lease. Variable
lease payments in proportion to sales are excluded from lease payments and recognised
in profit or loss as incurred. Lease liabilities that are due within one year (inclusive) as
from the balance sheet date are included in the current portion of non-current liabilities.
The Group's right-of-use assets represent leased buildings. Right-of-use assets are
measured initially at cost which comprises the amount of the initial measurement of lease
liabilities, any lease payments made at or before the commencement date and any initially
direct costs, less any lease incentives received. If it is reasonably probable that the Group
will obtain ownership of the underlying asset by the end of the lease term, the asset is
depreciated over its remaining useful life; otherwise the asset is depreciated over the
shorter of the lease term and its remaining useful life. The carrying amounts of the right-of-
use assets are reduced to the recoverable amounts when the recoverable amounts are
below their carrying amounts (Note 2(15)).
For short-term leases with a term of 12 months or less and leases of an individual asset
(when new) of low value, the Group may, instead of recognising right-of-use assets and
lease liabilities, recognise the lease payments in the cost of the underlying assets or in
profit or loss for the current period on a straight-line basis over the lease term.
The Group shall account for a lease modification as a separate lease if both: (1) the
modification extends the scope of the lease by adding the right to use one or more
underlying assets; (2) the increased consideration is equivalent to the amount of the
individual price of the expanded part of the lease scope adjusted according to the contract
conditions.
For a lease modification that is not accounted for as a separate lease, the Group shall
redetermine the lease term at the effective date of the lease modification, and remeasure
the lease liability by discounting the revised lease payments using a revised discount rate,
except for the simplified method for contract changes directly caused by COVID-19. For a
lease modification which narrows the scope of the lease or shortens the lease term, the
Group decreases the carrying amount of the right-of-use asset, and recognises in profit or
loss any gain or loss relating to the partial or full termination of the lease. For other
changes which lead to the remeasurement of lease liabilities, the Group correspondingly
adjusts the carrying amount of the right-of-use asset.
For the rental waivers due to COVID-19 and for the period ended before 30 June 2022
only, the Group applies the simplified method, records the undiscounted waivers in profit
or loss and adjusts lease liability when the agreement is reached to dismiss the original
payment obligation.
109
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Leases (Cont'd)
The Group as the lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. An operating lease is a lease other than a
finance lease.
As the lessor, the Group does not hold any finance lease. Where the Group leases out
self-owned buildings under operating leases, rental income the refrom is recognised on a
straight-line basis over the lease term.
(23) Segment information
The Group identifies operating segments based on the internal organisation structure,
management requirements and internal reporting system, and discloses segment
information of reportable segments which is determined on the basis of operating
segments.
An operating segment is a component of the Group that satisfies all of the following
conditions: (1) the component is able to earn revenues and incur expenses from its
ordinary activities; (2) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to
assess its performance, and (3) for which the information on financial position, operating
results and cash flows is available to the Group. Two or more operating segments that
have similar economic characteristics and satisfy certain conditions can be aggregated
into one single operating segment.
110
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements
applied based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
(a) Critical judgements in applying the accounting policies
(i) Classification of financial assets
Significant judgements made by the Group in the classification of financial assets include
business models and analysis on contractual cash flow characteristics.
The Group determines the business model for financial assets management on the group
basis, and factors to be considered include the methods for evaluating the financial assets
performance and reporting such performance to key management personnel, the risks
relating to the financial assets performance and corresponding management methods, the
ways in which related business management personnel are remunerated, etc.
When assessing whether contractual cash flow characteristics of financial assets are
consistent with basic lending arrangement, key judgements made by the Group include:
the possibility of changes in time schedule or amount of the principal during the lifetime
due to reasons such as repayment in advance; whether interest only includes time value
of money, credit risks, other basic lending risks and considerations for costs and profits.
For example, whether the repayment in advance only reflects the principal outstanding
and corresponding interest and reasonable compensation paid for early termination of the
contract.
(ii) Judgement on significant increase in credit risk and occurrence of credit impairment
Judgement made by the Group for significant increase in credit risk is mainly based on
whether the overdue days exceed 30 days, or whether one or more of the following
indicators change significantly: business environment of the debtor, internal and external
credit rating, significant changes in actual or expected operating results, significant
decrease in value of collateral or credit rate of guarantor, etc.
Judgement made by the Group for the occurrence of credit impairment is mainly based on
whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or
more of the following conditions is/are satisfied: the debtor is suffering significant financial
difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes
bankrupt, etc.
111
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
(a) Critical judgements in applying the accounting policies (Cont’d)
(iii) Judgement on capitalisation of development expenditures
Development expenditures are capitalised when the criteria in Note 2(14)(e) are fulfilled.
The assessments on whether the criteria for capitalisation of development expenditures
have been met involve judgements of the Group, including the technical feasibility of the
project, the likelihood of the project generating sufficient future economic benefits and the
timing to start capitalisation particularly. The Group makes the judgements on the
capitalisation of development expenditures and records the process in meeting minutes
based on feasibility analysis, regular review on the development project phase, etc.
(iv) Timing of revenue recognition
The Group sells automobiles and automobile parts to distributors or end customers. The
Group recognises revenue from sales of automobiles after they are delivered as prescribed
in the contract, distributors or end customers have accepted the products and the delivery
documents have been signed by both parties. The Group recognises revenue from sales of
parts after they are delivered to the designated location as prescribed in the contract,
distributors or end customers have accepted the products and the delivery documents are
signed by both parties. Thereafter, the distributors or end customers own the products, have
the right to set prices independently, and bear the risks from price fluctuation or damage of
the products. The distributors or end customers have obtained the control of the products
after accepting the products. Therefore, the Group recognises the sales revenue of the
products at the time when the delivery documents have been signed.
(v) Sales with product warranties
The Group provides statutory warranty for automobiles and automobile parts, and the
periods and terms of such warranty comply with the requirements of laws and regulations
related to the products. The Group does not provide any significant additional service or
additional warranty for this purpose, thus this kind of warranty cannot be identified as a
separate performance obligation. In addition, the Group also offers additional warranty other
than the requirements of laws and regulations, which is identified as a separate
performance obligation. The Group recognises the revenue of the additional warranty over
time during the period when services are rendered.
112
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next fiscal
year are outlined below:
(i) Measurement of ECL
The Group calculates ECL through default risk exposure and ECL rate and determines the
ECL rate based on default probability and default loss rate. In determining the ECL rate, the
Group uses data such as internal historical credit loss experience, etc., and adjusts historical
data based on current conditions and forward-looking information.
When considering forward-looking information, the Group takes different macroeconomic
scenarios into consideration. In 2021, the weights of “base”, “bad” and “good” are 68%, 16%
and 16% (2020: 68%, 16% and 16%) under three economic scenarios respectively for the
consideration of forward-looking information. The Group regularly monitors, and reviews
important macroeconomic assumptions and parameters related to the calculation of ECL
rate, including the risks of economic downturn, external market environment, changes of
technological environment and customer, gross domestic product, consumer price index and
broad money supply. In 2021, the Group has considered the uncertainty caused by COVID-
19 and updated relevant assumptions and parameters accordingly. The key macroeconomic
parameters used in each scenario are listed as follows:
Scenarios
Base Bad Good
Gross domestic product 7.81% 4.74% 10.89%
Consumer price index 1.82% -1.38% 5.02%
In 2020, the key macroeconomic parameters used in each scenario are listed below:
Scenarios
Base Bad Good
Gross domestic product 14.25% 14.15% 14.34%
Money supply 9.20% 7.72% 10.68%
113
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(ii) Impairment of long-term asset
The Group assesses whether there is any indication that non-current assets other than
financial assets may be impaired at the balance sheet date. When there are indications
showing the carrying amounts of such assets cannot be recovered, an impairment test will
be performed.
When the carrying amount of non-current assets or asset groups other than financial assets
is higher than the recoverable amount, which is the higher of an asset’s fair value less
disposal costs and the present value of the future cash flows expected to be derived from
the asset, it shows non-current assets or asset groups are impaired.
The amount of an asset’s fair value less disposal costs was determined by the price of a
sale agreement in affair rade, less the costs that are directly attributable to the disposal of
the asset. Where there is no sales agreement but there is an active market of assets, the
amount is determined by the market price less the costs that are directly attributable to the
disposal of the asset. The market price of assets is determined by the considerations
provided by the buyer. Where there is no sales agreement or active market of assets, the
amount of an asset’s fair value less disposal costs was determined based on the best
information available, with reference to the latest transaction price or results of similar assets
of the same industry.
Disposal costs include legal cost, taxes and handling fee related to asset disposal, and
direct costs incurred to bring the assets to a saleable state.
(iii) Income tax and deferred income tax
The Group is subject to enterprise income tax in multiple regions. There are some
transactions and events for which the ultimate tax treatment is uncertain during the ordinary
course of business. Significant judgement is required from the Group in determining the
provision for income taxes in each of these regions. Where the final tax outcome of these
matters is different from the amounts that were initially recorded, such differences will impact
the income tax and deferred tax provisions in the period in which such determination is
made.
114
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(iii) Income tax and deferred income tax (Cont’d)
As stated in Note 3(2), the Company is a high-tech enterprise. The “High-Tech Enterprise
Certificate” is effective for three years. Upon expiration, application for high-tech enterprise
assessment should be submitted again to the relevant government authorities. Based on
the past experience of reassessment for high-tech enterprise upon expiration and its
actual conditions, the Company considers that it is able to obtain the qualification for high-
tech enterprises in the next 3 years, and therefore a preferential tax rate of 15% is used to
calculate the corresponding deferred income tax. If the Company cannot obtain the
qualification for high-tech enterprise upon expiration, then the Company is subject to a
statutory tax rate of 25% for the calculation of income tax, which further influences the
recognised deferred tax assets, deferred tax liabilities and income tax expenses.
Deferred tax assets are recognised for the deductible tax losses that can be carried
forward to subsequent years to the extent that it is probable that taxable profit will be
available in the future against which the deductible tax losses can be utilised. Taxable
profit that will be available in the future includes the taxable profit that will be realised
through ordinary course of business and the taxable profit that will be increased upon the
future reversal of taxable temporary differences incurred in prior periods. Judgements and
estimates are required to determine the time and amounts of taxable profit in the future.
Any difference between the reality and the estimate may result in adjustment to the
carrying amount of deferred tax assets.
(iv) Provisions
The Group undertakes after-sales repair or replacement obligations for automobiles sold
based on the after-sales service agreement. Management estimates related provisions
based on historical after-sales service data, including the repair and replacement provided
as well as current trends.
Factors that may impact the estimation of warranty costs include improvement of the
Group’s productivity and production quality, as well as changes in related parts and labour
costs. Any increase or decrease in provisions will have impact on profit or loss of the
Group in the future.
115
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(v) Provision for decline in the value of inventories
The Group's inventories are stated at the lower of cost and net realisable value. Net
realisable value of inventories is the amount of the estimated selling price in the ordinary
course of business, less the estimated costs to completion and estimated costs necessary
to make the sales and related taxes.
If the management revises the estimated selling price of the inventory, the estimated costs
to be incurred by the time of completion, and the estimated selling expenses and related
taxes, the revised estimated selling price is lower than the currently adopted estimated
selling price, or the revised until The estimated costs, estimated sales expenses, and
related taxes and fees at the completion of the project are higher than the currently
adopted estimates, the Group needs to make provision for inventory.
If the actual selling prices, costs to completion, selling and distribution expenses and
related taxes are higher or lower than management’s estimates, the Group shall recognise
the relevant differences in the consolidated income statement during the corresponding
accounting period.
(25) Significant changes in accounting policies
The Ministry of Finance released the Notice on Adjusting the Application Scope of the
Provisions on the Accounting Treatment Regarding COVID-19-Related Rent Concessions
(Cai Kuai [2021] No. 9), the Circular on Issuing Interpretation No. 14 of Accounting
Standards for Business Enterprises (Cai Kuai [2021] No. 1) and Q&A on Implementation
of Accounting Standards for Business Enterprises in 2021. The financial statements for
the year ended 31 December 2021 have been prepared in accordance with the above
standard, circular and Q&A, and the impacts on the financial statements of the Group
andthe Company are as follows:
(a) Accounting treatment regards COVID-19-related rent concession
For the part of the rent concession that is caused directly by COVID-19, which is
respectively made with the lessee and the lessor and happened before 30 June 2022, the
Group and the Company has taken simplified methods in the above Notice (note 4(45))
when preparing the financial statement for the year ended 31 December 2021. The notice
listed above has no impact on the accounting treatment of the Group and the Company as
the lessor.
116
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Significant changes in accounting policies (Cont’d)
(b) Accounting treatment for changes on the basis of determining the contractual cash flows of
financial assets or financial liabilities due to the reform in the benchmark interest rate
Reform towards benchmark interest rate, specified in Interpretation No.14 of Accounting
Standards for Business Enterprises, has no significant influence towards the basis of
determining the contractual cash flows of financial assets and financial liabilities when
preparing the Group and Company’s financial statements for 2021.
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxation basis Tax rate
Enterprise income tax (a) Taxable income 15% and 25%
Value-added tax Taxable value-added amount (Tax payable 13%, 9% and 6%
(“VAT”)(b) is calculated using the taxable sales
amount multiplied by the applicable tax
rate less deductible input VAT of the
current period)
Consumption tax (c) Taxable sales amount 3%, 5% and 9%
City maintenance and The payment amount of VAT and 5% and 7%
construction tax (d) consumption tax
(a) Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for
Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the
Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by
the State Taxation Administration and relevant regulations, during the period from 1 January
2018 to 31 December 2023, the cost of newly purchased equipment with the original cost less
than RMB5 million can be fully deducted against taxable profit in the next month after the
asset is put into use, instead of being depreciated annually for tax filing.
Pursuant to the Circular on Further Improving Pre-tax additional deduction for Research and
Development Expenses (Cai Shui [2021] No. 13) issued by the Ministry of Finance and the
State Taxation Administration, from 1 January 2021, the Group’s actual research and
development expenses that are not recognised as intangible assets but included in profit or
loss, are allowed to 100% pre-tax additional deduction (during the period of 1 January 2018 to
31 December 2020:75%); those expenses recognised as intangible assets can be amortised
before tax at 200% of the costs of intangible assets (during the period of 1 January 2018 to 31
December 2020:175%).
(b) Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform
(Announcement [2019] No. 39) and relevant regulations jointly issued by the Ministry of
Finance, the State Taxation Administration and the General Administration of Customs, the
Group’s taxable products sales revenue is subject to the VAT at the rate of 13%. The Group's
real estate leasing business is subject to the VAT at the rate of 9%. Revenue from provision of
technical service to external parties is subject to VAT at the rate of 6%.
117
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(1) The main categories and rates of taxes applicable to the Group are set out below (Cont’d):
(c) Pursuant to the Interim Regulations of the People's Republic of China on Consumption Tax
promulgated by the State Council (Order No. 539 of the State Council of the People's
Republic of China) and the Notice of Ministry of Finance and State Taxation Administration on
Adjusting Consumption Tax Policies for Passenger Cars (Cai Shui [2008] No. 105), the
consumption tax rates of the Group's taxable products are 3%, 5% and 9%.
(d) Pursuant to the Circular of the State Council on Unifying the Collection of City Construction
and Maintenance Tax and Educational Surcharge on Domestic and Foreign-Owned
Enterprises and Individuals (Guo Fa [2010] No. 35) issued by the State Council, the Group is
subject to city construction and maintenance tax at the rates of 5% and 7%.
(2) Tax preference
Pursuant to the Circular on the Announcement of the First Batch of High-Tech Enterprises of
Jiangxi Province for the year 2021 (Gan Gao Qi Ren Ban [2021] No. 8), the Company is
certified as a high-tech enterprise, and the valid term is three years. During the period from 1
January 2021 to 31 December 2023, the Company is subject to enterprise income tax at the
rate of 15%(2020:15%).
In 2021, except for the Company, the Company’s wholly-owned companies, including JMC
Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen
Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), and Guangzhou Fujiang New
Energy Automobile Sales Co., Ltd. (“GZFJ”), were subject to the enterprise income tax at the
rate of 25% (2020: 25%).
118
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2021 31 December 2020
Cash at bank (a) 9,569,051,314 11,121,955,129
(a) As at 31 December 2021, cash at bank of the Group deposited with Jiangling Motor Group
Finance Company (“JMCF”) was RMB1,059,580,980 (31 December 2020:
RMB1,231,825,734) (Note 8(6)), and interest was calculated at the bank annual interest
rate for RMB deposit of 1.725% to 2.25% over the same period (2020: 0.455% to
3.30%)(Note 8(5)).
JMCF, a holding subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking
financial institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment
Co., Ltd. (“JIC”), a main shareholder of the Company.
(2) Financial assets held for trading
31 December 2021 31 December 2020
Structural deposits 100,242,329 803,892,985
(3) Notes receivable
31 December 2021 31 December 2020
Trade acceptance notes 119,783,900 -
Less: Provision for bad debts - -
119,783,900 -
(a) As at 31 December 2021, there were no notes receivable pledged.
(b) As at 31 December 2021, there was no notes receivable that have been endorsed or
discounted but not yet matured.
(c) Provision for bad debts
For notes receivable arising from sales of goods and rendering of services in the ordinary
course of operating activities, the Group measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component. As at 31 December
2021, the acceptors of the notes receivable held by the Group were dealers with good credit
and the Group therefore believed that the relevant notes receivable would not result in
material losses due to their defaults.
119
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable
31 December 2021 31 December 2020
Accounts receivable 3,213,330,895 3,233,785,212
Less: Provision for bad debts (218,532,668) (233,902,000)
2,994,798,227 2,999,883,212
(a) The ageing of accounts receivable is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 2,713,109,300 2,729,338,870
1 to 2 years 128,900,600 18,746,837
Over 2 years 371,320,995 485,699,505
3,213,330,895 3,233,785,212
(b) As at 31 December 2021, the top five accounts receivable ranked by remaining balances
are analysed as follows:
Amount of provision % of total
Balance for bad debts balance
Company 1 1,055,206,739 (2,469,956) 32.84%
Company 2 124,233,514 (247,448) 3.87%
Company 3 118,452,703 (96,776) 3.69%
Company 4 100,295,872 (80,107) 3.12%
Company 5 72,230,000 (72,230,000) 2.25%
1,470,418,828 (75,124,287) 45.77%
(c) Provision for bad debts
For accounts receivable, the Group measures the loss provision based on the lifetime ECL
regardless of whether there is a significant financing component.
(i) Accounts receivable for which provision for bad debts is made on the individual basis are
analysed as follows:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable i) 103,180,418 100% (103,180,418)
Receivables for
automobiles ii) 80,862,880 100% (80,862,880)
184,043,298 (184,043,298)
120
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which provision for bad debts is made on the individual basis are
analysed as follows (Cont’d):
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable i) 103,180,418 100% (103,180,418)
Receivables for
automobiles ii) 83,112,880 100% (83,112,880)
186,293,298 (186,293,298)
i) As at 31 December 2021 and 31 December 2020, government subsidies receivable for
new energy automobiles amounted to RMB103,180,418. As the corresponding new energy
vehicles may not meet the corresponding subsidy policy standards, the Group considered
the receivables cannot be collected, therefore, full provision was made for those
receivables.
ii) As at 31 December 2021, since aforesaid companies in debts had difficulties in operation
and were involved in several legal proceedings, the Group considered that it was difficult to
recover such receivables, so related provision for bad debts was made in full amount
RMB80,862,880(31 December 2020: RMB83,112,880).
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Sales of general automobiles:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,279,044,623 0.08% (1,829,856)
Overdue for 1 to 30 days 182,608,365 0.08% (146,245)
Overdue for 31 to 60 days 48,703,203 2.44% (1,186,068)
Overdue for 61 to 90 days 25,563,462 4.15% (1,061,263)
Overdue over 90 days 37,478,374 5.01% (1,876,531)
2,573,398,027 (6,099,963)
121
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Sales of general automobiles(Cont’d):
31 December 2020
Book balance Provision for bad debts
Amount Life timeECL(%) Amount
Not overdue 2,092,329,084 0.21% (4,395,983)
Overdue for 1 to 30 days 262,730,035 0.21% (551,996)
Overdue for 31 to 60 days 345,798 6.35% (21,961)
Overdue for 61 to 90days 1,936,800 10.74% (208,085)
Overdue over 90 days 17,757,747 17.59% (3,123,783)
2,375,099,464 (8,301,808)
Grouping - Sales of new energy automobiles:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Overdue over 90 days 187,009,300 14.67% (27,438,915)
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 149,343,763 6.28% (9,378,788)
Overdue for 1 to 30 days - — -
Overdue for 31 to 60 days 194,083,088 14.52% (28,173,753)
Overdue for 61 to 90 days - — -
Overdue over 90 days 3,993,700 16.25% (649,037)
347,420,551 (38,201,578)
122
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping –Automobile parts:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 236,210,964 0.30% (708,633)
Overdue for 1 to 30 days 10,782,728 0.30% (32,348)
Overdue for 31 to 60 days 14,692,940 0.50% (73,465)
Overdue for 61 to 90 days 3,469,461 0.60% (20,817)
Overdue over 90 days 3,724,177 3.09% (115,229)
268,880,270 (950,492)
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 288,024,625 0.30% (864,074)
Overdue for 1 to 30 days 21,425,030 0.30% (64,275)
Overdue for 31 to 60 days 11,544,651 0.50% (57,723)
Overdue for 61 to 90 days 1,809,917 0.60% (10,860)
Overdue over 90 days 2,167,676 5.00% (108,384)
324,971,899 (1,105,316)
(iii) The provision for bad debts in the current year amounted to RMB15,345,078 was
reversed, because the accrued bad debts were received in 2021.Among them, RMB
2,250,000 of accounts receivable for which provision for bad debts was made on the
individual basis in the previous period were recovered in the current period, and the
corresponding book balance was RMB 2,250,000.The significant amounts reversed or
recovered were as follows:
Basis and justification for
Reasons for determining the provision for Amount of Recovery
reversal/recovery bad debts reversal/recovery method
The aforesaid companies in
debts had difficulties in
The actual receipt operation and were involved in
of account several legal proceedings, the
receivables relating Group considered the
to the provision for receivables cannot be collected,
Accounts bad debts made in therefore, full provision was
receivable 1 the prior period. made for those receivables. 2,250,000 Received
(d) As at 31 December 2021 and 31 December 2020, there were no accounts receivable
pledged.
123
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Financing receivables
31 December 2021 31 December 2020
Bank acceptance notes 201,511,670 815,583,669
The Group endorses the bank acceptance notes as required by daily fund management,
which also met the criteria for dere cognition, and therefore classified those the bank
acceptance notes as financial assets at fair value through other comprehensive income.
The Group had no bank acceptance notes for which the provision for impairment was
made on the individual basis. As at 31 December 2021, the Group measures the loss
provision of financing receivables based on the lifetime ECL. As of 31 December, 2021,
the acceptors of the Groups’ notes receivable were mainly major state-owned banks or
large and medium-sized banks withgoodreputationandcreditranking. Therefore, the Group
expected there was no significant loss on related bank acceptance notes arising from
bank default.
As at 31 December 2021, the Group had no pledged bank acceptance notes receivable
presented in financing receivables.
As at 31 December 2021, the Group's notes receivable had been endorsed or discounted
but not yet matured were as follows:
Derecognised Not derecognised
Bank acceptance notes 1,326,983,992 -
(6) Advances to suppliers
(a) The ageing of advances to suppliers is analysed as below:
31 December 2021 31 December 2020
% of total % of total
Amount balance Amount balance
Within 1 year 497,302,198 100% 452,714,683 100%
(b) As at 31 December 2021, the top five advances to suppliers ranked by remaining balances
are analysed as follows:
Amount % of total balance
Company 1 399,394,083 80.31%
Company 2 58,836,729 11.83%
Company 3 21,870,265 4.40%
Company 4 8,885,838 1.79%
Company 5 5,016,888 1.01%
494,003,803 99.34%
124
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables
31 December 2021 31 December 2020
Receivable for
subsidiarydisposal(Note 5) 252,000,000 -
Import working capital advances 25,000,000 35,000,000
Disposal of assets 17,668,457 -
Advances for gas fee 7,409,989 7,367,141
Others 98,941,850 86,840,341
401,020,296 129,207,482
Less: Provision for bad debts (1,036,560) (217,909)
399,983,736 128,989,573
(a) The ageing of other receivables is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 398,699,129 128,336,086
Over 1 year 2,321,167 871,396
401,020,296 129,207,482
(b) Provision for losses and changes in book balance statements:
Stage 1
12-month ECL
(grouping) Total
Book balance Provision for bad debts Provision for bad debts
31 December 2020 129,207,482 (217,909) (217,909)
Netincreasein the current
year 271,812,814 — —
Bad debt provision
reserved in the current
year — (823,789) (823,789)
Bad debt provision written
off in the current year — 5,138 5,138
31 December 2021 401,020,296 (1,036,560) (1,036,560)
As at 31 December 2021 and 31 December 2020, the Group had no other receivables at
Stage 2 and Stage 3. The analysis of other receivables at Stage 1 is stated below:
(i) As at 31 December 2021 and 31 December 2020, the Group had no other receivables
with provision for bad debts on the individual basis.
125
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
(ii) As at 31 December 2021 and 31 December 2020, the Group’s other receivables with
provision for bad debts on the grouping basis were analysed below:
Other receivables with provision on the grouping basis at Stage 1:
31 December 2021 31 December 2020
Book balance Provision for losses Book balance Provision for losses
Provision Provision
Amount ratio Amount Amount ratio Amount
Grouping of operating
advances and
guarantees:
Within 1 year 343,446,354 0.30% (1,029,601) 68,052,441 0.32% (215,154)
Over 1 year 2,321,167 0.30% (6,959) 871,396 0.32% (2,755)
Grouping of others i):
Within 1 year 55,252,775 - - 60,283,645 - -
401,020,296 (1,036,560) 129,207,482 (217,909)
i) As at 31 December 2021 and 31 December 2020,the grouping of others are mainly
interest receivables from the Group's bank deposits. the Group’s interest receivable from
cash at bank mainly came from major state-owned banks or other large and medium sized
banks with good reputation and credit ranking. Therefore, the Group expected that there
was no material credit risk associated with related interest receivable and thus there was no
significant losses on related interest receivable from bank default.
(c) RMB823,789 of provision for bad debts was reversed in the current year.
(d) As at 31 December 2021, the top five other receivables by the balance of the debtors are
listed as follows:
% of
total Provision for
Nature Balance Ageing balance bad debts
Receivable
for subsidiary
Company 1 disposal 252,000,000 Within 1 year 62.84% (756,000)
Advances
classified as
Company 2 expenses 31,266,512 Within 1 year 7.80% (93,800)
Advances
classified as
Company 3 expenses 25,000,000 Within 1 year 6.23% (75,000)
Disposal of
Company 4 assets 17,668,457 Within 1 year 4.41% (53,005)
Advances
classified as
Company 5 expenses 7,397,042 Within 1 year 1.84% (22,191)
333,332,011 83.12% (999,996)
126
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2021 31 December 2020
Provision for Carrying Provision for Carrying
Book balance inventories amount Book balance inventories amount
Raw materials 875,837,414 (70,998,768) 804,838,646 816,201,410 (109,312,198) 706,889,212
Finished goods 740,881,390 - 740,881,390 815,055,053 - 815,055,053
Work in progress 205,597,637 (1,297,098) 204,300,539 268,716,191 (175,387) 268,540,804
Materials in
transit 94,075,651 - 94,075,651 98,887,111 - 98,887,111
Low-cost
consumables 93,028,528 (4,443,955) 88,584,573 160,969,525 (32,479,143) 128,490,382
Materials
processed on
commission 42,047,833 - 42,047,833 68,743,130 - 68,743,130
2,051,468,453 (76,739,821) 1,974,728,632 2,228,572,420 (141,966,728) 2,086,605,692
(b) Provision for inventories is analysed as follows:
Increase in the
31 December current year Decrease in the current year 31 December
2020 Provision Reversal Write-off 2021
Raw materials (109,312,198) (40,609,433) 5,024,205 73,898,658 (70,998,768)
Low-cost
consumables (32,479,143) (4,223,181) 1,402,449 30,855,920 (4,443,955)
Work in progress (175,387) (1,234,309) 5,218 107,380 (1,297,098)
(141,966,728) (46,066,923) 6,431,872 104,861,958 (76,739,821)
(c) Provision for decline in the value of inventories is as follows:
Reason for current year reversal or
Specific basis for determining net write-off of provision for decline in
realisable value the value of inventories
Raw materials/Work in Based on the estimated selling price, Increase in the net realisable value of
progress/Low value less the estimated costs to completion, the inventories of which a provision
consumables estimated selling and distribution for decline in the value had been
expenses and related taxes made in prior years or sales
realised
127
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Other current assets
31 December 2021 31 December 2020
Taxes prepaid, input VAT to be
deducted and to be verified 984,174,056 736,953,815
Others - 415,922
984,174,056 737,369,737
(10) Current portion of long-term receivables
31 December 2021 31 December 2020
Current portion of long-term
receivables(Note 4(11)) 13,236,153 -
(11) Long-term receivables
31 December 2021 31 December 2020
Long-term receivables 64,375,548 -
Less:Unearned financing income (5,993,630)
Provision for bad debts (193,127) -
Current portion of long-term
receivables (13,236,153) -
44,952,638 -
As at 31 December 2021, the Group's long-term receivables were generated by instalment
collections from disposal of fixed assets, which will be recovered from 2022 to 2026.
128
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments
31 December 2021 31 December 2020
Associate
- Shanxi Yunnei Power Co., Ltd. (“The PowerCompany”) 220,842,615 —
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 36,408,640 39,496,548
Less: Provision for impairment of long-term equity investments - -
257,251,255 39,496,548
Associate
Movements for the current year
Cash
Share of net dividends Ending
31 profit/(loss) declared 31 balance of
December Increase in the under equity by joint Provision for December Shareholding Voting rights provision for
2020 current period method ventures impairment 2021 (%) (%) impairment
ThePower Company (i) — 240,000,000 (19,157,385) - - 220,842,615 40% 40% -
Hanon Systems 39,496,548 - (3,087,908) - - 36,408,640 19.15% 33.33% -
Total 39,496,548 240,000,000 (22,245,293) - - 257,251,255
Related information of equity in associates is set forth in Note 6(2).
129
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments (Cont’d)
(i) The Power Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly
owned subsidiary of the Company. According to the resolution of the Board of Directors in
October 2020, the Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd.
through public listing on the Shanghai United Assets and Equity Exchange.
In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd. (hereinafter
referred to as "Yunnei Group") signed the equity transaction contract.
On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting
in 2021, and approved the change of the Power Company's name to Shanxi Yunnei Power
Co., Ltd., the change of shareholders to Yunnei Group and the Company, and the
establishment of the board of directors, and election of directors. After the completion of the
aforementioned changes, Yunnei Group has become the parent company and the ultimate
parent company of the Power Company. The Company holds 40% of the shares of the Power
Company and the Power Company becomes an associate of the Company.
(ii) Hanon Systems has applied new financial instruments standard, new revenue standard and
new lease standard (“new standards”) since 1 January 2021,
whichhavenosignificantimpactontheopeningbalanceofretainedearningsin2021 and have no
significant impact on the opening balance of retained earnings and long-term equity
investments in 2021 of the Group and the Company.
130
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets
31 December 2021 31 December 2020
Fixed assets (a) 6,027,890,644 5,164,260,516
Fixed assets pending for disposal (b) 1,411,387 1,695,894
6,029,302,031 5,165,956,410
(a) Fixed assets
Machinery and Electronic and
. Buildings equipment Vehicles Moulds other equipment Total
Cost
31 December 2020 2,300,951,630 4,011,283,000 353,517,996 3,154,261,304 4,004,241,347 13,824,255,277
Increase in the
current year
Transfer from
construction in
progress 538,509,317 706,767,723 69,996,484 180,038,631 626,022,878 2,121,335,033
Decrease in the
current year
Disposal or
retirement (12,050,420) (935,268,120) (38,506,644) (87,011,282) (602,643,563) (1,675,480,029)
Disposal of
subsidiary (82,341,445) (143,668,191) (8,210,163) (11,336,918) (103,958,753) (349,515,470)
Others - (147,265,400) - - (41,271,909) (188,537,309)
31 December 2021 2,745,069,082 3,491,849,012 376,797,673 3,235,951,735 3,882,390,000 13,732,057,502
Accumulated
depreciation
31 December 2020 (573,584,513) (2,390,076,662) (232,596,897) (2,372,671,702) (2,596,189,492) (8,165,119,266)
Increase in the
current year
Provision (62,844,878) (242,175,058) (33,820,824) (199,661,463) (349,487,527) (887,989,750)
Decrease in the
current year
Disposal or
retirement 4,630,261 769,404,860 29,799,812 80,589,492 539,734,981 1,424,159,406
Disposal of
subsidiary 8,113,372 53,053,728 5,046,854 5,185,220 55,174,829 126,574,003
Others - 134,692,427 - - 32,486,031 167,178,458
31 December 2021 (623,685,758) (1,675,100,705) (231,571,055) (2,486,558,453) (2,318,281,178) (7,335,197,149)
Provision for
impairment
31 December 2020 - (94,376,123) (6,070,058) (343,015,623) (51,413,691) (494,875,495)
Increase in the
current year
Provision - (2,131,673) (263,994) - (1,242,734) (3,638,401)
Decrease in the
current year
Disposal or
retirement - 83,943,269 3,500,585 6,158,551 35,941,782 129,544,187
31 December 2021 - (12,564,527) (2,833,467) (336,857,072) (16,714,643) (368,969,709)
Carrying amount
31 December 2021 2,121,383,324 1,804,183,780 142,393,151 412,536,210 1,547,394,179 6,027,890,644
31 December 2020 1,727,367,117 1,526,830,215 114,851,041 438,573,979 1,356,638,164 5,164,260,516
In 2021, depreciation charged to fixed assets amounted to RMB887,989,750 (2020:
RMB984,968,013), of which the depreciation expenses charged in the cost of sales, selling and
distribution expenses, general and administrative expenses and research and development
expenses were RMB694,724,288, RMB1,965,774, RMB125,771,056 and RMB65,528,632 (2020:
RMB747,787,243, RMB2,892,455, RMB166,883,300 and RMB67,405,015), respectively.
131
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
The costs of fixed assets transferred from construction in progress amounted to
RMB2,121,335,033 (2020: RMB974,985,684).
(i) Temporarily idle fixed assets
As at 31 December 2021, the fixed assets with a carrying amount of approximately
RMB862,054,869 (a cost of RMB2,081,185,910) (31 December 2020: a carrying amount of
approximately RMB16,532,578 and a cost of RMB483,214,712) were temporarily idle due to
the reorganization plan of JMCH and the change of business development, product
strategies, product process, etc. The analysis is as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 956,130,282 (347,949,680) - 608,180,602
Machinery and
equipment 165,809,251 (86,285,548) (5,802,462) 73,721,241
Vehicles 75,474,990 (48,323,990) (2,777,601) 24,373,399
Moulds 476,856,785 (152,576,330) (322,906,129) 1,374,326
Electronic and
other equipment 406,914,602 (239,436,212) (13,073,089) 154,405,301
2,081,185,910 (874,571,760) (344,559,281) 862,054,869
(ii) Fixed assets with pending certificates of ownership:
Reasons for not obtaining
Carrying amount certificates of ownership
Buildings 726,462,819 Pending procedures
132
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(b) Fixed assets pending for disposal
31 December 2021 31 December 2020
Electronic and other
equipment 1,096,021 1,639,777
Machinery and equipment 280,051 56,117
Vehicles 35,315 -
1,411,387 1,695,894
(14) Construction in progress
31 December 2021 31 December 2020
Provision Provision
for Carrying for Carrying
Book balance impairment amount Book balance impairment amount
N822 project 92,903,791 - 92,903,791 31,176,961 - 31,176,961
CX743conversion
project 62,473,608 - 62,473,608 26,409,132 - 26,409,132
Coating VOC treatment
project 59,811,593 - 59,811,593 5,000,000 - 5,000,000
Fushan new plant
investment project 56,875,765 - 56,875,765 522,070,550 - 522,070,550
CX756 project 50,714,716 - 50,714,716 89,516,432 - 89,516,432
V363C project 29,320,960 - 29,320,960 - - -
Capacity optimisation
project 18,120,130 - 18,120,130 504,378,481 - 504,378,481
V348 conversion
project 13,061,667 - 13,061,667 23,183,603 - 23,183,603
V362 MCA project 4,666,773 - 4,666,773 - - -
JF8/CX743 project 3,622,051 - 3,622,051 7,347,943 - 7,347,943
JP360 2,615,448 - 2,615,448 - - -
Construction of
Xiaolan 600 mu
Phase 3 plan 1,858,797 - 1,858,797 105,196,107 - 105,196,107
Collision Simulation
Laboratory 4,535 - 4,535 45,422,684 - 45,422,684
N356 project - - - 13,789,890 - 13,789,890
Other miscellaneous
and pending
installation projects 52,980,484 (691,646) 52,288,838 162,697,633 (691,646) 162,005,987
449,030,318 (691,646) 448,338,672 1,536,189,416 (691,646) 1,535,497,770
133
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
% of Accumulative Including:
Transfer to fixed Disposal of project capitalised Borrowing costs
Budget 31 December Increase in the assets in the subsidiary in the Decrease in the 31 December investment Progress borrowing capitalised in the
Project name (In RMB 0’000) 2020 current year current year current year current year 2021 in budget of project costs current year Source of fund
N822 project 20,700 31,176,961 79,784,264 (18,057,434) - - 92,903,791 53% 53% - - Self-owned funds
CX743conversion
project 11,349 26,409,132 38,096,925 (2,032,449) - - 62,473,608 57% 57% - - Self-owned funds
Coating VOC treatment
project 7,730 5,000,000 55,305,566 (493,973) - - 59,811,593 78% 78% - - Self-owned funds
Fushan new plant
investment project 205,200 522,070,550 283,887,779 (676,873,577) - (72,208,987) 56,875,765 95% 95% - - Self-owned funds
CX756 project 17,768 89,516,432 33,843,896 (72,645,612) - - 50,714,716 76% 76% - - Self-owned funds
V363C project 54,300 - 29,632,695 (311,735) - - 29,320,960 6% 6% - - Self-owned funds
Capacity optimisation
project 133,990 504,378,481 473,577,551 (959,835,902) - - 18,120,130 73% 73% - - Self-owned funds
V348 conversion project 4,390 23,183,603 10,238,869 (20,360,805) - - 13,061,667 83% 83% - - Self-owned funds
V362 MCA project 3,966 - 4,666,773 - - - 4,666,773 12% 12% - - Self-owned funds
JF8/CX743 project 13,690 7,347,943 4,288,655 (8,014,547) - - 3,622,051 96% 96% - - Self-owned funds
JP360 26,823 - 2,813,837 (198,389) - - 2,615,448 3% 3% - - Self-owned funds
Construction of Xiaolan
600 mu Phase 3 plan 20,977 105,196,107 59,858,339 (163,195,649) - - 1,858,797 79% 79% - - Self-owned funds
Collision Simulation
Laboratory 9,651 45,422,684 6,937,581 (52,355,730) - - 4,535 80% 80% - - Self-owned funds
N356 project 11,802 13,789,890 406,366 (14,196,256) - - - 100% 100% - - Self-owned funds
Other miscellaneous
and pending
installation projects 162,697,633 180,000,970 (132,762,975) (108,340,562) (48,614,582) 52,980,484 292,897 - Self-owned funds
1,536,189,416 1,263,340,066 (2,121,335,033) (108,340,562) (120,823,569) 449,030,318 292,897
134
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
31 December 2020 current year current year 31 December 2021 Reason for provision
Other miscellaneous
and pending The recoverable amount is
installation projects (691,646) - - (691,646) lowerthan the book value
135
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Right-of-use assets
Buildings
Cost
31 December 2020 42,736,398
Increase in the current year
New lease contracts 319,356,247
Decrease in the current year
Expiration of lease contract -
31 December 2021 362,092,645
Accumulated depreciation
31 December 2020 (14,330,508)
Increase in the current year
Provision (41,536,327)
Decrease in the current year
Expiration of lease contract -
31 December 2021 (55,866,835)
Provision for impairment
31 December 2020 -
Increase in the current year -
Decrease in the current year -
31 December 2021 -
Carrying amount
31 December 2021 306,225,810
31 December 2020 28,405,890
In 2021, depreciation of right-of-use assets amounted to RMB41,536,327
(2020:RMB14,748,075), of which RMB32,683,225, RMB3,824,867, RMB3,998,038 and
RMB1,030,197were included in cost of sales, selling and distribution expenses and
administrative expenses and research and development expenses, respectively (2020:
RMB11,550,187, RMB3,112,038 and RMB85,850 were included in cost of sales, selling
and distribution expenses and research and development expenses, respectively).
136
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Intangible assets
After-sales
services
Land use Software Non-patent management
rights licenses technologies mode Others Total
Cost
31 December 2020 751,625,667 206,965,791 540,153,070 36,979,184 1,599,516 1,537,323,228
Increase in the current
year
Transfer from
construction in
progress 72,208,987 48,614,582 - - - 120,823,569
Internal research
and development - - 239,594,428 - - 239,594,428
Decrease in the
current year
Disposal - (183,146) - - - (183,146)
Disposal of
subsidiary (68,741,281) (54,640) - - - (68,795,921)
31 December 2021 755,093,373 255,342,587 779,747,498 36,979,184 1,599,516 1,828,762,158
Accumulated amortisation
31 December 2020 (181,512,922) (130,785,042) (216,248,050) (36,979,184) (1,599,516) (567,124,714)
Increase in the current
year
Provision (16,014,455) (26,963,804) (117,309,644) - - (160,287,903)
Decrease in the
current year
Disposal - 137,360 - - - 137,360
Disposal of
subsidiary 11,188,209 13,812 - - - 11,202,021
31 December 2021 (186,339,168) (157,597,674) (333,557,694) (36,979,184) (1,599,516) (716,073,236)
Provision for impairment
31 December 2020 - - (38,806,961) - - (38,806,961)
Increase in the current
year - - - - - -
Provision - - - - - -
31 December 2021 - - (38,806,961) - - (38,806,961)
Carrying amount
31 December 2021 568,754,205 97,744,913 407,382,843 - - 1,073,881,961
31 December 2020 570,112,745 76,180,749 285,098,059 - - 931,391,553
In 2021, amortization charged to intangible assets amounted to RMB160,287,903 (2020:
RMB128,255,625), of which RMB415,534, RMB363,744, RMB40,110,291 and RMB
119,398,334 were included in cost of sales, selling and distribution expenses and administrative
expenses and research and development expenses, respectively(2020: RMB546,138, RMB
406,143, RMB37,768, 698, RMB89,534,646 were included in cost of sales, selling and
distribution expenses and administrative expenses and research and development expenses,
respectively).
137
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Intangible assets (Cont’d)
The Group's development expenditures are set out below:
Decrease in the current year
31 December Increase in the Recognised as 31 December
2020 current year intangible assets Write-off 2021
Automobile products
development project 173,473,242 177,125,536 - (239,594,428) 111,004,350
Expenditures on research and development of the Group incurred in 2021 amounted to
RMB1,886,139,707 (2020: RMB1,664,559,872) in total, of which RMB1,709,014,171
(2020: RMB1,343,812,092) was recognised in profit or loss for the current period,
RMB66,121,186 (2020: RMB147,274,538) was recognised as intangible assets for the
current period and RMB111,004,350 (2020: RMB173,473,242) was included in the ending
balance of development expenditures. As at 31 December 2021, the intangible assets
developed by the Group accounted for 38% (31 December 2020: 31%) of the carrying
amount of intangible assets.
(17) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2021 31 December 2020
Deductible temporary Deductible temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4,820,934,400 1,096,537,713 3,918,637,644 896,970,479
Recoverable losses 1,878,611,797 282,043,452 2,032,780,205 307,105,716
Provision for asset
impairment 1,209,522,802 186,548,154 897,520,189 140,838,024
Non-patent technology 155,010,935 34,890,219 108,124,026 23,281,348
Employee education
funds unpaid 67,882,259 10,494,123 42,695,014 6,607,339
Retirement benefits plan 59,941,000 14,147,350 67,587,000 15,497,050
Deferred income 49,074,545 7,361,182 49,944,625 7,491,694
Others 138,426,727 23,420,738 54,068,775 8,189,817
8,379,404,465 1,655,442,931 7,171,357,478 1,405,981,467
Including:
Expected to be recovered
within 1 year (inclusive) 1,320,586,445 1,065,699,235
Expected to be
recovered after 1 year 334,856,486 340,282,232
1,655,442,931 1,405,981,467
138
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Deferred tax assets and deferred tax liabilities (Cont’d)
(b) Deferred tax liabilities before offsetting
31 December 2021 31 December 2020
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed assets 1,685,457,873 353,019,830 1,247,553,627 235,959,055
Net losses related to debt
exemption and equity
transactions between
parent and subsidiary 408,000,000 61,200,000 682,000,000 102,300,000
Differences between the fair
value of the identifiable net
assets and carrying
amount arising from
business combinations not
under common control 96,002,180 24,000,545 98,780,656 24,695,164
Amortisation of intangible
assets 45,631,805 7,847,331 38,367,939 5,779,320
Others 242,329 60,582 1,095,069 273,767
2,235,334,187 446,128,288 2,067,797,291 369,007,306
Including:
Expected to be recovered
within 1 year (inclusive) 116,988,634 147,540,386
Expected to be recovered
after 1 year 329,139,654 221,466,920
446,128,288 369,007,306
(c) Deductible temporary differences and deductible losses for which no deferred tax asset
was recognised are analysed as follows:
31 December 2021 31 December 2020
Deductible temporary differences 1,380,010,739 3,119,574
Deductible losses 108,539,538 171,901,892
1,488,550,277 175,021,466
(d) Deductible losses for which no deferred tax asset was recognised will be expired in
following years:
31 December 2021 31 December 2020
2024 108,539,538 171,901,892
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting are as
follows:
31 December 2021 31 December 2020
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (422,127,743) 1,233,315,188 (242,012,142) 1,163,969,325
Deferred tax liabilities (422,127,743) 24,000,545 (242,012,142) 126,995,164
139
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Provision for asset impairment and losses
31 December Increase in the Decrease in the current year 31 December
2020 current year Reversal Write-off Other 2021
Provision for bad debts of
accounts receivable 233,902,000 - (15,345,078) - (24,254) 218,532,668
Including: Provision for bad
debts on the
individual basis 186,293,298 - (2,250,000) - - 184,043,298
Provision for bad
debts on the
grouping basis 47,608,702 - (13,095,078) - (24,254) 34,489,370
Provision for bad debts of other
receivables 217,909 823,789 - - (5,138) 1,036,560
Provision for impairment of
long-term receivables - 193,127 - - - 193,127
Sub-total 234,119,909 1,016,916 (15,345,078) - (29,392) 219,762,355
Provision for inventories 141,966,728 46,066,923 (6,431,872) (104,861,958) - 76,739,821
Provision for impairment of
fixed assets 494,875,495 3,638,401 - (129,544,187) - 368,969,709
Provision for impairment of
construction in progress 691,646 - - - - 691,646
Provision for impairment of
goodwill 89,028,412 - - - - 89,028,412
Provision for impairment of
intangible assets 38,806,961 - - - - 38,806,961
Sub-total 765,369,242 49,705,324 (6,431,872) (234,406,145) - 574,236,549
999,489,151 50,722,240 (21,776,950) (234,406,145) (29,392) 793,998,904
140
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Short-term borrowings
31 December 2021 31 December 2020
Credit loan 300,000,000 500,000,000
As at 31 December 2021, the interest rate for the short-term borrow ingsis 2.85%(31
December 2020: between 2.05% to 3.15%).
(20) Derivative financial liabilities
31 December 2021 31 December 2020
Derivative financial liabilities -
Forward exchange contracts 10,704,619 3,716,727
As at 31 December 2021 and 31 December 2020, derivative financial liabilities mainly
represented forward exchange contracts.
(21) Accounts payable
31 December 2021 31 December 2020
Payable for automobile parts 9,377,900,014 9,672,652,729
Payable for raw and auxiliary
materials 324,684,816 353,563,148
9,702,584,830 10,026,215,877
As at 31 December 2021, accounts payable with ageing over 1 year amounted to
RMB747,156,926 (31 December 2020: RMB431,202,897), which mainly represented
materials payable for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.
141
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Contract liabilities
31 December 2021 31 December 2020
Advances for automobiles and
automobile parts 223,779,674 521,367,837
Advances for maintenance and
warranty services 168,272,152 136,685,473
392,051,826 658,053,310
Less: Contract liabilities carried
forward to revenue after 1
year (Note 4(33)) (119,777,649) (99,526,464)
272,274,177 558,526,846
In 2021, contract liabilities amounting to RMB558,526,846(2020:
RMB268,170,154)included in the carrying amount As at 31 December 2020 were
transferred to the revenue of 2021, including advances for automobiles and automobile
parts amounting to RMB521,367,837 (2020: RMB227,774,183), and advances for
maintenance and warranty services amounting to RMB37,159,009 (2020:
RMB40,395,971).
(23) Employee benefits payable
31 December 2021 31 December 2020
Short-term employee benefits
payable (a) 593,229,732 617,598,452
Defined contribution plans payable (b) 168,161,617 135,699,978
Defined benefit plans payable (c) 2,930,000 3,415,000
Termination benefits payable (d) 2,665,176 2,655,176
766,986,525 759,368,606
(a) Short-term employee benefits
31 December Increase in the Decrease in the 31 December
2020 current year current year 2021
Wages and salaries,
bonus, allowances,
and subsidies 539,376,881 1,870,970,234 (1,944,872,701) 465,474,414
Staff welfare 26,872,505 122,589,603 (110,145,006) 39,317,102
Social security
contributions 3,877,466 116,050,622 (102,596,226) 17,331,862
Including: Medical
insurance - 98,300,892 (85,954,986) 12,345,906
Work injury
insurance 3,877,466 6,355,063 (6,276,378) 3,956,151
Maternity
insurance - 11,394,667 (10,364,862) 1,029,805
Housing funds - 159,849,067 (159,656,606) 192,461
Labor union and
employee education
costs 47,471,600 67,705,466 (44,263,173) 70,913,893
Other short-term
employee benefits - 9,686,712 (9,686,712) -
617,598,452 2,346,851,704 (2,371,220,424) 593,229,732
142
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(23) Employee benefits payable (Cont'd)
(b) Defined contribution plans
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021
Basic pensions 131,620,467 243,129,681 (211,668,261) 163,081,887
Supplementary
pensions - 10,400,000 (10,400,000) -
Unemployment
insurance 4,079,511 7,640,865 (6,640,646) 5,079,730
135,699,978 261,170,546 (228,708,907) 168,161,617
(c) Defined benefit plans
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021
Post-retirement
benefits
payable (Note
4(32)) 3,415,000 2,350,051 (2,835,051) 2,930,000
(d) Termination benefits payable
31 December 2021 31 December 2020
Early retirement benefits payable
(Note 4(32)) 1,327,000 1,317,000
Other termination benefits (i) 1,338,176 1,338,176
2,665,176 2,655,176
(i) In 2021, other termination benefits paid by the Group for termination of the employment
relationship were RMB16,420,116 (2020: RMB15,631,166).
(24) Taxes payable
31 December 2021 31 December 2020
Enterprise income tax payable 170,084,881 88,142,260
Consumption tax payable 85,326,751 78,952,885
Land use tax payable 6,174,129 5,746,521
Unpaid VAT 434,482 26,439,025
Others 25,151,477 19,164,536 19,278,5
287,171,720 218,445,227
143
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Other payables
31 December 2021 31 December 2020
Promotion expenses 2,620,282,716 2,213,691,765
Research and development project
expenses 877,392,808 673,089,112
Construction payment 541,897,265 290,525,592
Transportation expenses 273,386,502 148,274,852
Advertising and new product
planning fees 138,500,269 161,524,470
Guarantees payable 131,123,402 97,973,078
Technological transformation project
expenses 61,104,696 21,530,592
Trademark license fee 15,572,521 2,485,538
Consulting fees 14,322,912 10,298,545
Ordinary share dividends payable 6,463,836 6,463,836
Others 573,753,878 527,992,245
5,253,800,805 4,153,849,625
As at 31 December 2021, other payables with ageing over 1 year of RMB1,433,335,159
(31 December 2020: RMB819,824,836) mainly comprised guarantees collected from
logistics companies, distributors and repair stations, payables for construction projects and
payables for research and development expenses. Such payables have not been finally
settled yet in view of the continuing business transactions with distributors and service
providers, and engineering projects and research and development projects that had not
yet been accepted and completed.
(26) Current portion of non-current liabilities
31 December 2021 31 December 2020
Current portion of lease
liabilities(Note 4(29)) 77,621,681 10,481,886
Current portion of long-term
borrowings(Note 4(28)) 417,507 427,277
78,039,188 10,909,163
(27) Other current liabilities
31 December 2021 31 December 2020
Provisions expected to be settled
within 1 year(Note 4(30)) 391,365,455 343,121,509
Others 29,091,358 67,777,819
420,456,813 410,899,328
144
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Long-term borrowings
31 December 2021 31 December 2020
Guaranteed loans 2,505,044 2,990,943
Less: Current portion of long-term
borrowings(Note 4(26)) (417,507) (427,277)
2,087,537 2,563,666
The above guaranteed loanswere long-term borrowings amounting to
USD392,905guaranteed by JMCF, borrowed from Industrial and Commercial Bank of
China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year and
the principal was paid in instalments between 10 December 2007 and 27 October 2027. In
2021, the interest rate of long-term borrowings was 1.5% (2020: 1.5%).
31 December 2021 31 December 2020
Amount in Amount in
Starting Maturity Interest foreign RMB foreign RMB
date date Currency rate (%) currency equivalent currency equivalent
ICBC Nanchang
Ganjiang Sub- 27 February 27 October
branch 1998 2027 USD 1.5% 392,905 2,505,044 458,389 2,990,943
(29) Lease liabilities
31 December 2021 31 December 2020
Lease liabilities 341,031,095 29,480,838
Less: Current portion of non-
current liabilities (Note
4(26)) (77,621,681) (10,481,886)
263,409,414 18,998,952
(a) As at 31 December 2021, the Group has no leases that are not included in lease liabilities
but will result in potential future cash outflows.
(b) As at 31 December 2021, Group has no signed short-term lease and low-value asset lease
contracts that are simplified in accordance with the new lease standards..
145
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Provisions
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021
Product warranties i) 511,619,012 454,077,121 (396,448,655) 569,247,478
Provision for contracts 27,398,636 - (7,693,495) 19,705,141
539,017,648 454,077,121 (404,142,150) 588,952,619
Less: Provisions
expected to
be settled
within 1 year
(Note 4(27)) (343,121,509) (391,365,455)
195,896,139 197,587,164
i) Product warranties are expenses expected to be incurred during the warranty period from free
after-sales services, product warranty and other services for the vehicles sold.
(31) Deferred income
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021 Reason
Government Subsidy for
grants (a) 49,944,625 1,200,000 (2,070,080) 49,074,545 projects
(a) Government grants
Decrease in the current year Asset
31 Increase in 31
December the current Offset December related/
2020 year Recognised in financial 2021 Income
other income expenses related
Research and
development-
related Income
subsidies 47,519,981 960,000 (309,955) - 48,170,026 related
Government
interest Income
subsidies 1,760,125 - - (1,760,125) - related
Income
Others 664,519 240,000 - - 904,519 related
49,944,625 1,200,000 (309,955) (1,760,125) 49,074,545
146
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Long-term employee benefits payable
31 December 2021 31 December 2020
Supplementary retirement benefits
and early-retirement benefits
eligible for recognition of provisions 59,941,000 67,587,000
Less: Payable within 1 year (4,257,000) (4,732,000)
55,684,000 62,855,000
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable(Note 4(23)(c),(d)).
For retired and early-retired employees, the Group provides them with a certain amount of
supplementary benefits during their retirement or early-retirement period. The amount of
benefits depends on the employee's position, length of service and salary at the time of
retirement or early-retirement, and is adjusted in accordance with inflation rate and other
factors. The Group's obligations for supplementary retirement and early-retirement benefits
as at the balance sheet date were calculated using projected unit credit method and were
reviewed by an external independent actuary.
(a) Movements of retirement and early-retirement benefits of the Group are as follows:
Present value of the obligations of the defined
benefit plan
31 December 2021 31 December 2020
Opening balance 67,587,000 68,441,000
Cost of defined benefit plans
recognised in profit or loss for the
current period
- Current service cost 1,346,000 1,242,000
- Past service cost (14,664,000) -
- Actuarial losses/(gains)recognised
immediately 800,000 (843,000)
- Net interest 2,463,000 2,324,000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial losses 6,218,000 485,000
Other movements
- Benefits paid (3,809,000) (4,062,000)
Ending balance 59,941,000 67,587,000
147
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Long-term employee benefits payable (Cont'd)
(b) The actuarial assumptions used to determine the present value of defined benefit plan
obligations
31 December 2021 31 December 2020
Discount rate 3.00% 3.75%
Inflation rate 2.00% 2.00%
Salaries and benefits growth
rates 0%-6% 0%-6%
Future mortality assumptions were determined based on the China Life Insurance Mortality
Table (2010-2013), which is publicly available statistical information for the Chinese region.
(c) The sensitivity analysis of the actuarial assumptions used to determine the present value of
defined benefit plan obligations is as follows:
Effect on present value of
defined benefit obligations
Variation in Assumed Assumed
assumptions increase decrease
Decrease of Increase of
Discount rate 0.5% 5.9% 6.7%
Increase of Decrease of
Inflation rate 0.5% 4.0% 3.4%
The above sensitivity analysis is based on a change in an assumption while holding all
other assumptions constant. In practice, changes in some of the assumptions may be
correlated. The projected unit credit method is also utilised in calculating the present value
of the defined benefit obligations in the analysis.
(d) Supplementary retirement and early-retirement benefits expose the Group to various
risks, mainly including risk of changes in the interest rate of treasury bonds, inflation risk,
etc. Decline in the interest rate of treasury bonds will lead to an increase in defined benefit
plan liabilities. Supplementary retirement and early-retirement benefits obligations keep
pace with inflation, and the rise in inflation will increase the defined benefit plan liabilities.
(33) Other non-current liabilities
31 December 2021 31 December 2020
Contract liabilities carried forward to
revenue after one year (Note
4(22)) 119,777,649 99,526,464
148
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Share capital
Movements for the current year
31 December Shares Transfer 31 December
2020 newly Bonus from capital 2021
issued share surplus Others Sub-total
Shares subject to trading
restriction -
Other domestic shares
Including: Shares held by
domestic non-state-
owned legal
persons 745,140 - - - - - 745,140
Shares held by domestic
natural persons 5,700 - - - - - 5,700
750,840 - - - - - 750,840
Shares not subject to trading
restriction -
Ordinary shares denominated in
RMB 518,463,160 - - - - - 518,463,160
Domestically listed foreign
shares 344,000,000 - - - - - 344,000,000
862,463,160 - - - - - 862,463,160
863,214,000 - - - - - 863,214,000
Since the implementation of the Company's Scheme on Share Split Reform on 13 February 2006, As at 31 December 2021, there were 750,840
shares currently unavailable for trading. During the reporting period, During the reporting period, there was no shares with trading restrictions were
released from the restricted conditions.
149
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Share capital (Cont’d)
Movements for the current year
31 December Shares Transfer 31 December
2019 newly Bonus from capital 2020
issued share surplus Others Sub-total
Shares subject to trading
restriction -
Other domestic shares
Including: Shares held by
domestic non-state-
owned legal
persons 749,940 - - - (4,800) (4,800) 745,140
Shares held by domestic
natural persons 975 - - - 4,725 4,725 5,700
750,915 - - - (75) (75) 750,840
Shares not subject to trading
restriction -
Ordinary shares denominated in
RMB 518,463,085 - - - 75 75 518,463,160
Domestically listed foreign
shares 344,000,000 - - - - - 344,000,000
862,463,085 - - - 75 75 862,463,160
863,214,000 - - - - - 863,214,000
150
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Capital surplus
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
Increase in Decrease in
31 December the current the current 31 December
2019 year year 2020
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
151
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Other comprehensive income
Other comprehensive income in the Other comprehensive income in the income statement for
balance sheet the year ended 31 December 2021
Amount Less: Transfer-
incurred out of previous
Attributable before other Attributable
31 to the parent 31 income tax comprehensive Less: to the parent
December company December for the income in the Income tax company
2020 after tax 2021 current year current year expenses after tax
Other comprehensive income items which
will not be reclassified to profit or loss
Actuarial gains on defined benefit plans (11,759,250) (4,663,500) (16,422,750) (6,218,000) - 1,554,500 (4,663,500)
Other comprehensive income in the Other comprehensive income in the income statement for
balance sheet the year ended 31 December 2020
Amount Less: Transfer-
incurred out of previous
Attributable before other Attributable
31 to the parent 31 income tax comprehensive Less: to the parent
December company December for the income in the Income tax company
2019 after tax 2020 current year current year expenses after tax
Other comprehensive income items which
will not be reclassified to profit or loss
Actuarial gains on defined benefit plans (11,395,500) (363,750) (11,759,250) (485,000) - 121,250 (363,750)
152
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Surplus reserve
31 December Increase in the Decrease in the 31 December
2020 current year current year 2021
Statutory surplus reserve 431,607,000 - - 431,607,000
31 December Increase in the Decrease in the 31 December
2019 current year current year 2020
Statutory surplus reserve 431,607,000 - - 431,607,000
In accordance with the Company Law of the People's Republic of China, the Company’s
Articles of Association and the resolution of the Board of Directors, the Company should
appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company
can cease appropriation when the statutory surplus reserve accumulated to more than 50%
of the registered capital. The statutory surplus reserve can be used to make up for the loss
or increase the share capital upon approval from the appropriate authorities. As the
accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered
capital, no appropriation was made in the current year (2020: Nil).
The Company reserves the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can
be used to compensate for the losses incurred in prior years or increase the share capital
upon approval from appropriate authorities.
(38) Retained earnings
2021 2020
Retained earnings at the beginning of the
year 8,863,969,769 8,373,695,791
Add: Net profit attributable to
shareholders of the parent
company for the current year 574,165,944 550,698,958
Less: Ordinary share dividends payable
(a) (3,000,531,864) (60,424,980)
Retained earnings at the end of the year 6,437,603,849 8,863,969,769
(a) According to the resolution of the general meeting of shareholders on 25 June 2021, the
Company distributed cash dividends of RMB3.476 per share to all shareholders, calculated
on the basis of 863,214,000 issued shares, for a total of RMB3,000,531,864.
According to the resolution of the meeting of board of directors on 28March 2022, the board
of directors proposeto distribute cash dividends of RMB0.266 per share to all shareholders,
calculated on the basis of 863,214,000 issued shares, for a total of RMB229,614,924(Note
11).
153
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Revenue and cost of sales
2021 2020
Revenue from main operations 34,530,048,320 32,535,277,434
Revenue from other operations 691,258,152 560,456,231
35,221,306,472 33,095,733,665
2021 2020
Cost of revenue from main operations 29,485,820,650 26,984,653,662
Cost of sales from other operations 631,633,717 533,856,251
30,117,454,367 27,518,509,913
(a) Revenue and cost of sales from main operations
2021 2020
Revenue from Cost of revenue Revenue from Cost of revenue
main operations from main main operations from main
operations operations
Sales of
automobiles 32,317,182,099 27,809,982,305 30,666,834,098 25,638,598,860
Sales of
automobile
parts 2,101,505,690 1,557,352,106 1,774,007,492 1,250,772,343
Automobile
maintenance
services 111,360,531 118,486,239 94,435,844 95,282,459
34,530,048,320 29,485,820,650 32,535,277,434 26,984,653,662
(b) Revenue and cost of sales from other operations
2021 2020
Revenue from Cost of sales from Revenue from Cost of sales from
other operations other operations other operations other operations
Sales of
materials 561,673,748 505,559,175 409,363,603 385,388,976
Others 129,584,404 126,074,542 151,092,628 148,467,275
691,258,152 631,633,717 560,456,231 533,856,251
154
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Revenue and cost of sales (Cont’d)
(c) The Group's revenue is broken down as follows:
2021
Automobiles Automobile parts Automobile Materials and Total
maintenance others
services, etc.
Revenue from main
operations 32,317,182,099 2,101,505,690 111,360,531 - 34,530,048,320
Including: Recognised at
a time point 32,317,182,099 2,101,505,690 - - 34,418,687,789
Recognised
within a
certain
period - - 111,360,531 - 111,360,531
Revenue from other
operations - - - 691,258,152 691,258,152
32,317,182,099 2,101,505,690 111,360,531 691,258,152 35,221,306,472
2020
Automobiles Automobile parts Automobile Materials and Total
maintenance others
services
Revenue from main
operations 30,666,834,098 1,774,007,492 94,435,844 - 32,535,277,434
Including: Recognised at
a time point 30,666,834,098 1,774,007,492 - - 32,440,841,590
Recognised
within a
certain
period - - 94,435,844 - 94,435,844
Revenue from other
operations - - - 560,456,231 560,456,231
30,666,834,098 1,774,007,492 94,435,844 560,456,231 33,095,733,665
(i) As at 31 December 2021, the amount of revenue corresponding to the performance obligations
that the Group has signed but has not performed or has not yet performed is RMB392,051,826,
of which the Group expects that RMB223,779,674 will be recognized as revenue from the sale
of automobiles and parts in 2022. RMB168,272,152 will be recognized as revenue from
automobile maintenance services during 2022 to 2027.
(40) Taxes and surcharges
2021 2020
Consumption tax 760,386,647 630,470,931
City construction and maintenance tax 82,265,926 88,105,730
Educational surcharge 76,717,032 77,624,969
Land use tax 18,625,222 18,174,629
Real estate tax 17,284,111 14,724,040
Stamp duty 12,397,463 8,275,503
Others 472,592 501,206
968,148,993 837,877,008
155
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Selling and distribution expenses
2021 2020
Promotion expenses 462,406,230 341,416,881
Warranties 454,077,121 470,211,035
Employee benefits 189,694,233 146,679,411
Advertising and
new product planning fees 186,501,944 246,766,019
Storage expenses 48,592,062 37,410,599
Packaging material expenses 36,696,621 34,225,598
Sales network
construction expenses 14,063,346 134,851,706
Depreciation and amortisation
expenses 6,154,385 6,410,636
Others 133,622,101 126,765,143
1,531,808,043 1,544,737,028
(42) General and administrative expenses
2021 2020
Employee benefits 576,689,666 536,931,919
Depreciation and amortisation
expenses 169,879,385 204,651,998
Trademark license fee 56,532,031 46,878,508
Repair expenses 56,019,261 30,893,355
Cartagefee 40,886,163 8,174,289
Consulting expenses 38,531,796 23,668,984
General office expenses 26,545,639 20,691,777
Others 187,134,649 140,456,343
1,152,218,590 1,012,347,173
(43) Research and development expenses
2021 2020
Employee benefits 483,915,948 450,728,077
Design fee 378,814,577 239,481,179
Technology development expenses 239,561,528 224,124,643
Materials expenses 204,200,408 91,583,428
Depreciation and amortisation
expenses 185,957,163 157,025,511
Others 216,564,547 180,869,254
1,709,014,171 1,343,812,092
156
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(44) Financial expenses
2021 2020
Interest costs 17,868,043 27,293,064
Add: Interest costs on lease
liabilities 7,532,316 1,444,481
Less: Government grants (Note
4(31)) (1,760,125) (9,454,375)
Interest expenses 23,640,234 19,283,170
Less: Interest income from cash at
bank (257,779,550) (207,633,739)
Fund occupation fee (a) (15,836,668) (7,628,722)
Other interest income (26,785,621) -
Interest income (300,401,839) (215,262,461)
Exchange gains or losses (21,273,861) (2,841,917)
Others 2,279,909 1,253,695
(295,755,557) (197,567,513)
(a) The fund occupation fee is the fee paid to the Group at the rate agreed by both parties
when the distributors delay payment or settle with a bill of exchange.
(45) Expenses by nature
The cost of sales, selling and distribution expenses, general and administrative expenses
and research and development expenses in the income statement are listed as follows by
nature:
2021 2020
Changes in inventories of finished
goods and work in progress 137,184,837 (331,803,127)
Consumed raw materials, low value
consumables, etc. 26,762,865,094 24,178,117,051
Employee benefits 2,614,387,917 2,517,567,518
Depreciation of fixed assets 887,989,750 984,968,013
Amortisation of intangible assets 160,287,903 128,255,625
Depreciation of right-of-use assets 41,536,327 14,748,075
Transportation expenses 803,085,951 672,534,669
Promotion expenses 462,406,230 341,416,881
Warranties 454,077,121 470,211,035
Design fee 378,814,577 239,481,179
Technology development expenses 239,561,528 224,124,643
Advertising and new product
planning fees 186,501,944 246,766,019
Fixed asset repair and maintenance
expenses (a) 184,972,267 153,676,679
Others 1,196,823,725 1,579,341,946
34,510,495,171 31,419,406,206
157
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Expenses by nature (Cont’d)
(a) The Group includes daily maintenance expenses ineligible for the capitalisation of fixed
assets regarding the production and processing of inventories into cost of inventories,
which will be carried forward to cost of sales, and those regarding the R&D Department,
Administrative Department, and Sales Department are included in research and
development expenses, management expenses and selling and distribution expenses
respectively.
(b) As stated in Note 2(22), the Group directly recognises the lease payments of short-term
lease and low value lease into profit or loss for the current period. In 2021, the amount was
RMB1,066,925(2020: RMB898,733).
Due to the impact of COVID-19, the lessor exempted the Group from paying the rental of
RMB47,937for the 2021, and the Group has deducted the above rental waivers against the
rental expense for the current period (2020: RMB442,611).
(46) Asset impairment losses
2021 2020
Provision for inventories 39,635,051 133,257,119
Impairment of fixed assets 3,638,401 487,531,202
Impairment of intangible assets - 38,806,961
Impairment of development
expenditures - 22,289,502
43,273,452 681,884,784
(47) Credit impairment losses
2021 2020
Losses on bad debts of accounts
receivable (15,345,078) 79,857,936
Losses on bad debts of other
receivables 823,789 (91,687)
Losses on bad debts of long-term
receivables 193,127 -
(14,328,162) 79,766,249
(48) Other income
Assets related/
2021 2020 Income related
Subsidy for operating
activities 539,301,095 240,480,710 Income related
Research and
development
activities related
subsidies 11,770,150 27,741,579 Income related
551,071,245 268,222,289
158
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Investment income
2021 2020
Investment income from disposal of long-
term equity investments 52,133,307 -
Investment income from financial assets
held for trading 15,174,593 77,849,662
Losses on discount of financing receivables
eligible for dere cognition (25,013,202) (3,811,706)
Losses on long-term equity investments
under equity method (22,245,293) (1,438,009)
Investment loss from forward exchange
settlement (20,618,121) (2,421,091)
(568,716) 70,178,856
There is no significant restriction on the remittance of investment income of the Group.
(50) Gains on changes in fair value
2021 2020
Financial assets at fair value through profit or loss -
Structural deposits (3,650,656) 3,892,985
Derivative financial assets and derivative financial
liabilities -
Losses on forward exchange contracts (6,987,892) (3,171,095)
(10,638,548) 721,890
(51) Gains on disposal of assets
Amount recognised in
non-recurring profit or
2021 2020 loss in 2021
Gains/(Losses) on
disposal of assets 16,977,005 (713,072) 16,977,005
159
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Non-operating income
Amount recognised in
non-recurring profit or
2021 2020 loss in 2021
Compensation and
penalty income 3,437,808 2,999,142 3,437,808
Government grants
(a) - 80,000 -
Others 1,169,029 8,555,775 1,169,029
4,606,837 11,634,917 4,606,837
(53) Non-operating expenses
Amount recognised
in non-recurring profit
2021 2020 or loss in 2021
Losses on scrapping and
disposal of assets (i) 11,869,191 167,067,708 11,869,191
Donations 1,995,000 5,198,781 1,995,000
Others 584,761 487,056 584,761
14,448,952 172,753,545 14,448,952
(i)In 2020, due to the business restructuring plan of JMCH, the disposal losses of land and
above-ground buildings amount to RMB141,186,984 was recognised in losses on
scrapping and disposal of assets.
(54) Income tax expenses
2021 2020
Current income tax calculated based
on tax law and related regulations 170,451,319 102,545,094
Deferred income tax (188,145,817) (201,585,786)
(17,694,498) (99,040,692)
160
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Income tax expenses (Cont’d)
The reconciliation from income tax calculated based on the applicable tax rates and total
profit presented in the consolidated income statement to the income tax expenses is listed
below:
2021 2020
Total profit 556,471,446 451,658,266
Income tax calculated at applicable tax rates (149,370,177) (65,608,806)
Effect of change in the tax rates 46,112,633 (38,461,745)
Tax credit - (289,629)
Additional deductions (166,139,453) (117,791,694)
Non-taxable loss 3,221,355 215,701
Equity transactions and debt exemption
between parent and subsidiary 41,735,873 302,000,000
Costs, expenses and losses not deductible
for tax purposes 16,317,418 51,214,472
Utilisation of previously unrecognised
deductible temporary differences (663,082) (40,487,091)
Deductible losses for which no deferred tax
asset was recognised in the current
period 206,931,524 -
Utilisation of the deductible loss of the
unrecognized deferred tax asset in the
previous period (15,840,589) (189,831,900)
Income tax expenses (17,694,498) (99,040,692)
(55) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of
outstanding ordinary shares of the parent company:
2021 2020
Consolidated net profit attributable to ordinary
shareholders of the parent company 574,165,944 550,698,958
Weighted average number of ordinary shares
outstanding issued by the Company 863,214,000 863,214,000
Basic earnings per share 0.67 0.64
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company adjusted based on the dilutive potential
ordinary shares by the adjusted weighted average number of outstanding ordinary shares
of the Company. As there were no dilutive potential ordinary shares in 2021 (2020: Nil),
diluted earnings per share equalled to basic earnings per share.
161
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2021 2020
Government grants 551,961,290 291,706,526
Guarantees from distributors 113,421,092 32,766,930
Guarantees for bidding 39,786,000 66,942,375
Input VAT refund - 39,282,451
Others 31,612,504 15,096,992
736,780,886 445,795,274
(b) Cash paid relating to other operating activities
2021 2020
Research and development
expenses 738,436,009 1,019,457,533
Warranties 432,219,371 403,917,538
Promotion expenses 374,879,458 301,960,017
Advertising expenses 222,689,351 309,656,829
Maintenance expenses 129,000,432 82,439,384
Guarantees 123,112,381 68,989,781
Travelling expenses 40,534,753 33,806,899
Others 851,705,417 626,665,927
2,912,577,172 2,846,893,908
(c) Cash received relating to other investing activities
2021 2020
Interest from cash at bank 262,810,420 179,442,715
Interest from acceptance notes 10,349,063 5,836,694
Interest from credit sales 5,465,709 3,696,018
Investment income from forward
exchange settlement 79,024 2,381,388
278,704,216 191,356,815
162
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Notes to the cash flow statement (Cont’d)
(d) Cash paid relating to other financing activities
2021 2020
Payments of lease liabilities 14,398,829 12,717,923
Others 1,664,464 33,154
16,063,293 12,751,077
(57) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
2021 2020
Net profit 574,165,944 550,698,958
Add: Provision for asset impairment
(Note 4(46)) 43,273,452 681,884,784
Provision for credit impairment
(Note 4(47)) (14,328,162) 79,766,249
Depreciation of fixed assets (Note
4(13)) 887,989,750 984,968,013
Amortisation of intangible assets
(Note 4(16)) 160,287,903 128,255,625
Depreciation of right-of-use assets
(Note 4(15)) 41,536,327 14,748,075
Increase in provisions(Note 4(30)) 49,934,971 137,381,909
(Gain)/Losses on disposal of long-
term assets (5,107,814) 167,780,780
Financial expenses (275,191,314) (198,304,506)
Investment income (Note 4(49)) 568,716 (70,178,856)
Losses /(Gains) on changes in fair
value (Note 4(50)) 10,638,548 (721,890)
Increase in deferred tax assets (85,151,198) (303,240,969)
(Decrease)/Increase in deferred tax
liabilities (102,994,619) 101,655,183
Increase in inventories (134,813,338) (325,788,721)
Decrease/(increase) in operating
receivables 196,013,053 (1,117,125,510)
Increase in operating payables 413,370,791 2,866,563,704
Net cash flows from operating activities 1,760,193,010 3,698,342,828
163
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(57) Supplementary information to the cash flow statement (Cont’d)
(a) Supplementary information to the cash flow statement(Cont’d)
Net increase/(decrease) in cash and cash equivalents
2021 2020
Cash and cash equivalents
at the end of the year 9,569,051,314 11,121,955,129
Less: Cash and cash equivalents at the
beginning of the year (11,121,955,129) (8,937,936,658)
Net increase in cash
And cash equivalents (1,552,903,815) 2,184,018,471
(b) Disposal of subsidiaries
2021
Cash or cash equivalents received in the current
period for disposal of subsidiaries in the current
period 108,000,000
Less: Cash and cash equivalents held by
subsidiaries at the date of loss of control (23,384,969)
Net cash received for disposal of subsidiaries 84,615,031
Considerations for disposal of subsidiaries in 2021
The Power Company 360,000,000
Net assets of the subsidiaries disposed in 2021 at the date of disposal
Current assets 150,917,970
Non-current assets 423,199,630
Current liabilities (26,008,881)
Non-current liabilities (242,026)
547,866,693
(c) Cash and cash equivalents
31 December 2021 31 December 2020
Cash at bank available for payment at any
time 9,569,051,314 11,121,955,129
164
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Foreign currency monetary items
31 December 2021
Amounts foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings -
USD 392,905 6.3757 2,505,044
Other payables -
USD 20,517,258 6.3757 130,811,883
EUR 33,288 7.2197 240,329
131,052,212
5 Changes in the scope of consolidation(Cont’d)
(1) Set up of subsidiaries
In 2021, the Company and Ford Motor Company(“Ford”) subscribed to the capital
contribution of RMB102,000,000 and 98,000,000 respectively to set up Jiangling Ford
Automobile Technology (Shanghai) Co., Ltd.("Jiangling Ford(Shanghai)”), the total
registered capital subscribed amount to RMB200,000,000. The Company holds 51% of the
shares of Jiangling Ford(Shanghai) and got the control of Jiangling Ford(Shanghai)’s Board
of Shareholders and Directors. Jiangling Ford(Shanghai) is the subsidiary of the Company.
As of December 31, 2021, Jiangling Ford(Shanghai) is completed the business registration
while not in operation yet; the subscribed capital contribution has not been paid by the
Company and Ford.
165
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the scope of consolidation
(2) Disposal of subsidiaries
(a) Aggregated information of subsidiaries disposed in the current year:
Amount transferred
to investment
Difference between income or losses
proceeds from from other
disposal and comprehensive
Basis for corresponding income related to
Proceeds Original Method judgement of shares of net assets initial equity
from shareholding Disposal Remaining of Timing of losing timing of in the consolidated investment in the
Subsidiaries disposal proportion proportion proportion disposal control losing control financial statements subsidiaries
Acquisition
The Power public of control by
Company 360,000,000 100% 60% 40% listing 5 November 2021 purchaser 52,133,307 -
In 2021, the Company sold 60% of the 100% equity of thePower Companyto Yunnei Group. The control was lost on 5 November 2021, resulting in a
disposal gain of RMB52,133,307.
(b) Gains or losses on disposal are as follows:
Amount
Consideration received from the disposal 360,000,000
Fair value of the remaining 40% equity at the date of disposal 240,000,000
Less: Share of net assets of the Power Company in the consolidated financial statements (547,866,693)
Other comprehensive income transferred to profit or loss for the current period -
Investment income from disposal 52,133,307
The fair value of the remaining 40% equity on the date of losing control was determined mainly based on the consideration of the disposedequity.
166
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the scope of consolidation(Cont’d)
(2) Disposal of subsidiaries(Cont’d)
(b) Gains or losses on disposal are as follows(Cont’d):
As of December 31, 2021, the Group has received an equity purchase payment of RMB108,000,000 from Yunnei Group, and the remaining receivables
amount to RMB252,000,000 are recognised in other receivables(Note 4(7)).
6 Equity in other entities
(1) Equity in subsidiaries
Structure of the Group
Main place of Place of
Subsidiaries business registration Nature of business Shareholding (%) Method of acquisition
Direct Indirect
Nanchang, Nanchang, Retail, wholesale and lease of
JMCS Jiangxi Jiangxi automobiles 100% - Set up by investment
Business combinations
Taiyuan, Taiyuan, involving enterprises not
JMCH(i) Shanxi Shanxi Manufacture and sales of automobiles 100% - under common control
Shenzhen, Shenzhen,
SZFJ Guangdong Guangdong Retail, wholesale and lease of automobiles 100% - Set up by investment
Guangzhou, Guangzhou,
GZFJ Guangdong Guangdong Retail, wholesale and lease of automobiles 100% - Set up by investment
Jiangling
Ford(Shanghai) Sales of automobiles,technical and
(Note 5(1)) Shanghai Shanghai business information consultation 51% - Set up by investment
(i)According to the resolution of Board of Directors held from April 30 to May 6, 2021, the Company sold 100% equity of JMCH held by the Company
through Shanxi Property Rights Exchange at a price of not less than RMB764,069,207. On August 9, 2021, the listing announcement period has expired
and Volvo Lastvagnar Aktiebolag became the intended transferee for the equity transaction. On August 23, 2021, the Company and Volvo Lastvagnar
Aktiebolag reached an agreement through negotiation and signed the "Equity Transaction Agreement on 100% Equity of Jiangling Heavy Duty Truck Co.,
Ltd.". The benchmark price for equity transfer is RMB781,400,000. As of December 31, 2021, the equity transaction is under approval by the relevant
state departments.
167
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities(Cont’d)
(2) Equity in associates
(a) General information of significant associates
Shareholding (%)
Place of registration Direct Indirect
Associates -
The Power Company(i) Taiyuan City, Shanxi Province 40% -
(i)The Power Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly-owned
subsidiary of the Company. According to the resolution of the Board of Directors in October 2020, the
Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd. through public listing on the
Shanghai United Assets and Equity Exchange.
In January 2021, The Company and Yunnei Group signed the equity transaction contract.
On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting in
2021, and approved the change of the Power Company's name to Shanxi Yunnei Power Co., Ltd.,
the change of shareholders to Yunnei Group and the Company, and the establishment of the board
of directors, and election of directors. After the completion of the aforementioned changes, Yunnei
Group has become the parent company and the ultimate parent company of the Power Company.
The Company holds 40% of the shares of the Power Company and the Power Company becomes an
associate of the Company.
The above equity investments are accounted for using the equity method by the Group.
(b) Summarised financial information for significant associates
31 December 2021
The Power Company
Current assets 153,906,457
Non-current assets 421,186,131
Total assets 575,092,588
Current liabilities 35,108,575
Non-current liabilities -
Total liabilities 35,108,575
Minority interests 215,993,605
Attributable to shareholders of the parent company 323,990,408
Shares of net assets based on shareholding (i) 215,993,605
Adjustments
- Unrealised profits arising from internal
transactions (16,004,313)
- Others (ii) 20,853,323
Carrying amount of equity investments in
associates 220,842,615
168
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(2) Summarised financial information for significant associates(Cont’d)
From November 5, 2021
(date of the equity delivery) to
December 31, 2021
The Power Company
Revenue 4,211,261
Net loss (7,882,680)
Other comprehensive
income -
Total comprehensive loss (7,882,680)
Dividends received from
associates by the Group -
(i) The Group calculated the shares of assets in proportion of the shareholdings and based on the
amount attributable to the parent company of the associates in their consolidated financial
statements. The amount in the consolidated financial statements of associates considers the
impacts of fair value of identifiable assets and liabilities of associates at the time of acquisition and
the unification of accounting policies. None of the assets involved in transactions between the
Group and associates contribute to business.
(ii) Other adjustments were mainly the remeasurement for fair value of remaining equity in the
consolidated financial statements, which resulted from the loss of control over the original subsidiary
due to the disposal of part of the equity investment.
(c) Summarised information of insignificant associates
2021 2020
Aggregated carrying amount of investments 36,408,640 39,496,548
Aggregate of the following items in proportion
Net profit (i) (3,087,908) (1,438,009)
Other comprehensive income (i) - -
Total comprehensive income (3,087,908) (1,438,009)
(i) The net profit and other comprehensive income have taken into account the impacts of both the
fair value of the identifiable assets and liabilities upon the acquisition of investment in joint
ventures and associates and the unification of accounting policies adopted by the joint ventures
and the associates to those adopted by the Group.
7 Segment information
Revenue and profits of the Company mainly arise from production and domestic sales of
automobiles, and the primary assets of the Group are all located in China. Management of the
Group assesses the operating performance of the Group as a whole. Therefore, no segment
report is prepared for the current year.
169
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal Code of
enterprise registration representative Nature of business organisation
State-
owned Nanchang, Investment and 91360125MA38LU
JIC enterprise China Qiu Tiangao asset management R91F
Foreign United William Clay Manufacture and
Ford enterprise States Ford, Jr. sales of automobiles N/A
(b) Registered capital and changes in major shareholders
31 December Increase in the Decrease in the 31 December
2020 current year current year 2021
JIC 1,000,000,000 - - 1,000,000,000
Ford USD 41,000,000 - - USD 41,000,000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
31 December 2021 31 December 2020
Shareholding Voting rights Shareholding Voting rights
(%) (%) (%) (%)
JIC 41.03% 41.03% 41.03% 41.03%
Ford 32% 32% 32% 32%
(2) Information of subsidiaries
The general information and other related information of subsidiaries are set out in Note
6(1).
(3) Information of associates
The information of associates is set out in Note 4(12).
170
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(4) Information of other related parties
Relationship with the Group
JMCG Shareholder of JIC
Chongqing Changan Automobile Co., Ltd. Shareholder of JIC
JMCG Jingma Motors Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangxi Lingrui Recycling Resources Development
Corporation Wholly-owned subsidiary of JMCG
Nanchang Gear Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangling Material Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangxi JMCG Industry Co., Ltd. Wholly-owned subsidiary of JMCG
JMCG Property Management Co. Wholly-owned subsidiary of JMCG
Jiangxi Jiangling Chassis Co., Ltd. Holding subsidiary of JMCG
Nanchang JMCG Shishun Logistics Co., Ltd. Holding subsidiary of JMCG
JMCF Holding subsidiary of JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. Holding subsidiary of JMCG
Nanchang JMCG Xinchen Auto Component Co., Ltd. Holding subsidiary of JMCG
Jingdezhen Shishun Logistics Co., Ltd. Holding subsidiary of JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd Holding subsidiary of JMCG
Jiangxi Mingfang Auto Parts Industry Co., Ltd Holding subsidiary of JMCG
Ford Global Technologies,LLC Wholly-owned subsidiary of Ford
Ford Trading Company LLC Wholly-owned subsidiary of Ford
Ford Motor (China) Co., Ltd. Wholly-owned subsidiary of Ford
Ford Motor Research & Engineering (Nanjing) Co., Ltd. Wholly-owned subsidiary of Ford
Ford Motor Co. Thailand Ltd. Wholly-owned subsidiary of Ford
Ford Otomotiv Sanayi A.S. Holding subsidiary of Ford
Auto Alliance (Thailand) Co., Ltd. Holding subsidiary of Ford
Ford Vietnam Limited Holding subsidiary of Ford
Changan Ford Automobile Co., Ltd. Joint venture of Ford
Nanchang JMCG Frame Co., Ltd Subsidiary under indirect control of JMCG
Nanchang JMCG Liancheng Auto Component Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang Lianda Machinery Co., Ltd. Subsidiary under indirect control of JMCG
Jiangling Aowei Automobile Spare Part Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Boya brake system Co., Ltd Subsidiary under indirect control of JMCG
NC.Gear Forging Factory Subsidiary under indirect control of JMCG
JMCG Jiangxi Engineering Construction Co., Ltd. Subsidiary under indirect control of JMCG
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Group subsidiary of JIC’s shareholder
Chongqing Anfu Vehicle Marketing Co., Ltd. Group subsidiary of JIC’s shareholder
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. Group subsidiary of JIC’s shareholder
Chongqing Anbo Vehicle Sales Co., Ltd. Group subsidiary of JIC’s shareholder
Yunan Wanfu Vehicle Sales & Service Co., Ltd. Group subsidiary of JIC’s shareholder
Dali Wanfu Vehicle Sales & Service Co., Ltd. Group subsidiary of JIC’s shareholder
Beijing Beifang Changfu Vehicle Sales & Service Co.,
Ltd. Group subsidiary of JIC’s shareholder
China Changan Group Hefei Investing Co., Ltd. Group subsidiary of JIC’s shareholder
Beijing Baiwang Changfu Vehicle Sales & Service
Co., Ltd. Group subsidiary of JIC’s shareholder
171
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(4) Information of other related parties (Cont'd)
Relationship with the Group
China Changan Group Tianjin Sales Co., Ltd. Group subsidiary of JIC’s shareholder
Guizhou Wanjia Automobile Sales and Service Co. LTD Group subsidiary of JIC’s shareholder
Anhui Wanyou Automobile Sales service Co. LTD Group subsidiary of JIC’s shareholder
Honghe Wanfu Vehicle Sales & Service Co., Ltd. Group subsidiary of JIC’s shareholder
Jiangxi Jiangling Lear Interior System Co., Ltd. Joint venture of JMCG
Jiangxi ISUZU Co., Ltd. Joint venture of JMCG
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Joint venture of JMCG
Nanchang Unistar Electric & Electronics Co., Ltd. Joint venture of JMCG
Nanchang Yinlun Heat-exchanger Co., Ltd. Joint venture of JMCG
Jiangxi ISUZU Engine Co., Ltd. Joint venture of JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Associate of JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. Associate of JMCG
Jiangxi JMCG Specialty Vehicles Co., Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Associate of JMCG
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. (i) Associate of JMCG
Nanchang Baojiang Steel Processing Distribution Co., Ltd. Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd. Associate of JMCG
Faurecia Emissions Control Technologies (Nanchang)
Co., Ltd. Associate of JMCG
Jiangling Motor Holdings Co., Ltd. Associate of JMCG
Jiangxi Lingyun Automobile Industry Technology Co.,Ltd Associate of JMCG
Nanchang Hengou Industry Co., Ltd. Associate of JMCG
Jiujiang Fuwantong Vehicle Co., Ltd. Associate of JMCG
Jiangxi Fuxiang Vehicle Co., Ltd. Associate of JMCG
Jiangxi Jiangling Overseas Automobile Sales and
Service Co., Ltd. Associate of JMCG
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Associate of JMCG
Jiangling Motor Electricity Vehicle Co., Ltd. Associate of JMCG
Dibao transportation equipment (Nanchang) Co., Ltd Associate of JMCG
Jiangxi Yizhizhihang automobile operation Service Co.,
Ltd Associate of JMCG
Jiangxi JMCG Motorhome Co.,Ltd. Associate of JMCG
Ji'an Qingyuan District Yongfuda Vehicle Co., Ltd. Associate of JMCG
(i) In November 2021, Nanchang JMCG Mekra-Lang Vehicle Mirror Co., Ltd. was renamed
toNanchang JMCG SMR Huaxiang Mirror Co., Ltd.
172
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions
(a) Purchase and sales of goods, provision and receipt of services
Purchase of goods:
Nature of related party
Related parties transactions 2021 2020
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of automobile parts 985,020,418 880,431,974
Nanchang Baojiang Steel Processing Distribution Co., Ltd. Purchase of raw materials 967,549,307 963,538,705
Jiangxi Jiangling Chassis Co., Ltd. Purchase of automobile parts 898,433,987 925,826,174
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of automobile parts 787,759,240 775,969,464
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Purchase of automobile parts 772,387,021 754,832,828
Ford Purchase of automobile parts 627,489,896 652,370,322
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of automobile parts 513,132,683 502,651,787
Faurecia Emissions Control Technologies (Nanchang) Co.,
Ltd. Purchase of automobile parts 477,760,140 471,477,165
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Purchase of automobile parts 470,431,786 -
Nanchang JMCG Liancheng Auto Component Co., Ltd. Purchase of automobile parts 416,531,044 404,381,671
Nanchang JMCG Shishun Logistics Co., Ltd. Purchase of automobile parts 366,945,009 402,465,442
Nanchang Unistar Electric & Electronics Co., Ltd. Purchase of automobile parts 344,122,534 313,333,686
Hanon Systems Purchase of automobile parts 213,213,340 215,580,989
JMCG Purchase of automobile parts 179,153,533 175,089,346
Nanchang Yinlun Heat-exchanger Co., Ltd. Purchase of automobile parts 112,831,150 87,043,427
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Purchase of automobile parts 105,244,091 113,007,282
Dibao transportation equipment (Nanchang) Co., Ltd Purchase of automobile parts 92,353,687 -
Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. Purchase of automobile parts 90,812,109 84,594,829
Nanchang Lianda Machinery Co., Ltd. Purchase of automobile parts 72,039,671 81,935,083
Changan Ford Automobile Co., Ltd. Purchase of automobile parts 48,145,204 56,465,853
Auto Alliance (Thailand) Co., Ltd. Purchase of automobile parts 45,310,450 67,659,797
173
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Purchase of goods (Cont'd):
Related parties Nature of related party transactions 2021 2020
Jiangling Motor Holdings Co., Ltd. Purchase of automobile parts 43,636,191 40,171,568
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of automobile parts 41,659,140 39,104,828
Jiangxi Lingyun Automobile Industry Technology Co.,Ltd Purchase of automobile parts 37,844,846 17,290,556
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Purchase of automobile parts 33,875,299 40,513,016
Jiangling Material Co., Ltd. Purchase of raw materials and automobile parts 32,138,057 25,302,089
Jiangxi JMCG Boya brake system Co., Ltd Purchase of automobile parts 30,510,070 19,296,893
Ford Otomotiv Sanayi A.S. Purchase of automobile parts 22,119,616 39,382,418
Jiangxi ISUZU Engine Co., Ltd. Purchase of automobile parts 20,171,236 15,163,002
Jiangling Aowei Automobile Spare Part Co., Ltd. Purchase of automobile parts 18,664,870 22,474,184
Nanchang JMCG Xinchen Auto Component Co., Ltd. Purchase of automobile parts 14,697,466 16,576,226
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd Purchase of automobile parts 14,081,765 -
Jiangxi JMCG Industry Co., Ltd. Purchase of automobile parts 10,268,410 1,525,809
NC.Gear Forging Factory Purchase of automobile parts 9,391,656 7,485,354
Jiangxi Lingrui Recycling Resources Development
Corporation Purchase of automobile parts 8,484,962 10,063,375
Ford Motor Co. Thailand Ltd. Purchase of automobile parts 3,939,065 6,388,549
Jiangxi Mingfang Auto Parts Industry Co., Ltd Purchase of automobile parts 3,510,953 -
Nanchang Hengou Industry Co., Ltd. Purchase of automobile parts 3,105,865 203,250
Nanchang Gear Co., Ltd. Purchase of automobile parts - 9,786,797
Other related parties Purchase of automobile parts 4,019,558 5,902,367
8,938,785,325 8,245,286,105
The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic
parts.
The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties.
The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation
between the two parties, and is adjusted regularly.
174
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Receipt of services:
Related parties Nature of related party transactions 2021 2020
Nanchang JMCG Shishun Logistics Co., Ltd. Transportation 308,005,709 327,801,942
Trademark management fees, technology
Ford Global Technologies,LLC development 278,546,988 248,378,764
JMCG Jiangxi Engineering Construction Co., Engineering construction
Ltd. 202,783,377 298,581,804
Ford Technical services and personnel costs 110,282,579 154,911,420
Jiangxi JMCG Industry Co., Ltd. Meals 22,676,641 27,037,730
Changan Ford Automobile Co., Ltd. Service fee, labor costs, etc. 21,913,168 63,254,852
Technical services and technical
Ford Otomotiv Sanayi A.S. development, personnel costs 18,265,089 44,011,234
Ford Motor (China) Co., Ltd. Personnel costs, etc. 16,127,484 11,859,943
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Transportation fee, rental fee, etc. 12,343,777 3,078,267
Jiangling Motor Holdings Co., Ltd. Labor fee, rental fee, personnel fee 10,097,592 6,847,601
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Agency fee, advertising fee, etc. 9,680,267 9,455,440
Ford Motor Research & Engineering (Nanjing) Personnel costs
Co., Ltd. 9,082,057 10,025,252
JMCG Property Management Co. Property fees, etc. 3,352,585 2,280,889
Magna PT Powertrain (Jiangxi) Co., Ltd.(i) Design fee, experimental costs 2,440,812 8,721,427
Nanchang Jiangling HuaXiang Auto Design fee, experimental costs
Components Co., Ltd. 2,175,305 2,425,848
Chongqing Changan Automobile Co., Ltd. Personnel costs 1,680,278 1,781,095
Jiangxi JMCG Specialty Vehicles Sales Promotion
Corporation, Ltd. 1,509,434 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. Promotion 1,509,221 6,748,500
Jiangxi ISUZU Engine Co., Ltd. Experimental costs 1,491,671 -
175
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Receipt of services (Cont’d):
Nature of related party
Related parties transactions 2021 2020
JMCG Rental expenses, etc. 1,403,765 722,094
Chongqing Anfu Vehicle Marketing Co., Ltd. Warranty 1,153,740 87,448
Dali Wanfu Vehicle Sales & Service Co., Ltd. Warranty, promotions 1,060,388 302,091
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Warranty 1,022,766 204,416
Other related parties 5,697,181 9,817,366
1,044,301,874 1,238,335,423
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
176
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Sales of goods:
Related parties Nature of related party transactions 2021 2020
Sales of vehicles and accessories,
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. utilities, etc. 3,009,201,649 1,503,468,690
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. Sale of vehicles 424,832,553 390,031,512
Jiangxi Jiangling Special Purpose Vehicle Co., Sales of vehicles and accessories,
Ltd. utilities 108,430,877 133,908,645
Jiangxi Lingrui Recycling Resources
Development Corporation Waste materials, utilities 91,363,165 85,072,002
Jiangxi Jiangling Chassis Co., Ltd. Sales of accessories 71,371,856 68,495,760
Jiangxi JMCG Specialty Vehicles Co., Ltd. Sales of vehicles and accessories 61,352,599 135,016,982
JMCG Jingma Motors Co., Ltd. Sales of vehicles and accessories 56,901,153 37,537,654
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Sales of vehicles and accessories 53,876,378 41,208,636
Chengdu Wanxing Vehicle Sales & Service Co.,
Ltd. Sales of vehicles and accessories 47,840,275 8,760,743
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 46,641,322 10,872,595
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 45,806,320 20,243,696
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 39,401,634 49,648,874
Chongqing Anbo Vehicle Sales Co., Ltd. Sales of vehicles and accessories 37,899,577 12,999,033
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Sales of accessories 35,851,242 -
China Changan Group Tianjin Sales Co., Ltd. Sales of vehicles and accessories 26,458,070 221,770
Beijing Beifang Changfu Vehicle Sales &
Service Co., Ltd. Sales of vehicles and accessories 12,749,059 21,171,011
Nanchang JMCG Shishun Logistics Co., Ltd. Sales of vehicles and accessories 12,470,469 33,591,930
Guizhou Wanjia Automobile Sales and Service
Co. LTD Sales of vehicles and accessories 10,893,900 -
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. Sales of accessories 10,779,022 871,742
Nanchang Hengou Industry Co., Ltd. Sales of accessories 9,982,170 8,496,187
177
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Sales of goods (Cont'd):
Related parties Nature of related party transactions 2021 2020
Nanchang JMCG Liancheng Auto Component
Co., Ltd. Sales of accessories 8,931,828 36,734,587
Jiujiang Fuwantong Vehicle Co., Ltd. Sales of vehicles and accessories 7,122,010 23,066,338
Jiangxi Jiangling Lear Interior System Co., Ltd. Sales of accessories 5,759,013 4,819,843
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Sales of accessories 3,382,979 6,300,596
Sales of accessories, utilities and waste
Jiangxi JMCG Industry Co., Ltd. materials, etc. 3,129,560 3,155,702
Jiangxi ISUZU Co., Ltd. Sales of accessories 2,910,489 4,581,683
Nanchang Lianda Machinery Co., Ltd. Sales of accessories 2,332,429 1,748,053
Magna PT Powertrain (Jiangxi) Co., Ltd.(i) Sales of accessories 1,850,790 451,200
Anhui Wanyou Automobile Sales Service Co.
LTD Sales of vehicles and accessories 1,574,031 -
Jiangxi Yizhizhihang automobile operation
Service Co., Ltd Sale of vehicles 1,302,655 -
Yunan Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 493,926 6,550,243
Beijing Baiwang Changfu Vehicle Sales &
Service Co., Ltd. Sales of vehicles and accessories 429,324 4,029,396
Jiangxi Jiangling Overseas Automobile Sales
and Service Co., Ltd. Sales of vehicles and accessories 389,202 3,451,607
Ji'an Qingyuan District Yongfuda Vehicle Co.,
Ltd. Sales of vehicles and accessories 128,243 2,948,093
China Changan Group Hefei Investing Co., Ltd. Sales of vehicles and accessories 111,195 14,027,598
Jiangxi Fuxiang Vehicle Co., Ltd. Sales of vehicles, accessories, utilities 105,495 4,518,451
Honghe Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 83,549 2,204,686
178
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont'd)
Sales of goods (Cont'd):
Nature of related party
Related parties transactions 2021 2020
Nanchang JMCG Frame Co., Ltd Sales of accessories - 9,682,940
Jingdezhen Shishun Logistics Co., Ltd. Sale of vehicles - 2,389,380
Other related parties 2,297,881 6,370,413
4,256,437,889 2,698,648,271
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
179
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(b) Leases
(i) The lease income recognised in the current year with the Group as the lessor:
Name of the lessee Type of the leased asset 2021 2020
Jiangling Material Co., Ltd. Buildings 60,550 -
Jiangxi ISUZU Co., Ltd. Buildings 29,708 53,411
90,258 53,411
(ii) Increase of right-of-use assets in the current year with the Group as the lessee
Name of the lessor Type of the leased asset 2021 2020
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings 16,852,582 -
JMCG Buildings 182,766 -
17,035,348 -
180
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(b) Leases (Cont'd)
(iii) Interest expenses on lease liabilities in the current year with the Group as the lessee:
2021 2020
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 538,978 50,258
JMCG 417,937 568,210
956,915 618,468
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCF 2,505,044 5 March 2001 30 October 2029 Not fully performed
In 2021, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD2,282,123. As at 31
December 2021, JMCF provided borrowing guarantee to the bank borrowing of USD392,905, equivalent to RMB2,505,044 (31 December 2020:
USD458,389, equivalent to RMB2,990,943) for the Group.
181
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(d) Transfer of assets
Nature of related party
Related parties transactions 2021 2020
Jiangxi Lingrui Recycling Resources
Development Corporation Sales of fixed assets 19,069,865 -
Jiangxi JMCG Industry Co., Ltd. Sales of fixed assets - 1,783
19,069,865 1,783
The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties.
182
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(e) Purchase of assets
Nature of related party
Related parties transactions 2021 2020
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. Purchase of fixed assets 4,946,744 3,629,699
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of fixed assets 2,480,000 8,120,000
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Purchase of fixed assets 444,600 -
Jiangling Motor Holdings Co., Ltd. Purchase of fixed assets - 337,660
7,871,344 12,087,359
The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.
(f) Provision of technology sharing
Nature of related party
Related parties transactions 2021 2020
Ford Motor Research & Engineering (Nanjing) Engineering and technical
Co., Ltd. service 66,669,000 83,687,640
Ford Vietnam Limited Technical service 12,780,000 30,623,000
Ford Technical service 12,450,000 17,988,000
Jiangxi ISUZU Co., Ltd. Technical service 6,390,000 -
Ford Trading Company, LLC Technical service 4,795,000 -
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Technical service 480,000 1,750,000
Ford Otomotiv Sanayi A.S. Technical service 340,000 -
103,904,000 134,048,640
The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties.
183
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(g) Purchase of CAFC credit and NEV credit
Related parties 2021 2020
Jiangling Motor Holdings Co., Ltd. 177,528,302 -
Jiangling Motor Electricity Vehicle Co., Ltd. 11,186,318 23,304,481
188,714,620 23,304,481
The Group’s pricing on CAFC credit and NEV credit purchased from related parties is based
on the agreed price by both parties.
(h) Remuneration of key management
2021 2020
Remuneration of key management 17,375,367 12,148,337
(i) Interest income
2021 2020
JMCF 17,076,393 18,598,836
Cash at bank of the Group deposited with JMCF was calculated based on the bank
annual interest rate for RMB deposit of 1.725% to 2.25% over the same period (2020:
0.455% to 3.30%).
(j) Interest expenses
2021 2020
Jiangxi Zhonglian Intelligent Logistics
Co., Ltd. 120,000 120,000
Nanchang JMCG Shishun Logistics Co.,
Ltd. 30,000 30,000
150,000 150,000
184
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties
Receivables from related parties:
31 December 2021 31 December 2020
Provision for bad Provision for bad
Amount debts Amount debts
Accounts receivable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 1,055,206,739 (2,469,956) 1,081,916,003 (2,368,381)
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. 70,709,214 (56,476) 22,613,476 (47,488)
JMCG Jingma Motors Co., Ltd. 16,858,567 (59,595) 4,953,579 (14,861)
Jiangxi JMCG Specialty Vehicles Co., Ltd. 10,889,510 (9,689) 9,705,710 (20,997)
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. 4,511,078 (7,003) 1,539,411 (4,618)
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 4,113,754 (14,542) - -
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. 3,253,009 (11,499) 943,109 (2,829)
Nanchang JMCG Liancheng Auto Component
Co., Ltd. 1,655,446 (5,852) 8,906,500 (26,720)
Jiangxi Jiangling Lear Interior System Co., Ltd. 1,430,746 (5,058) 1,192,642 (3,578)
Nanchang Hengou Industry Co., Ltd. 1,189,979 (4,207) 394,513 (1,184)
Magna PT Powertrain (Jiangxi) Co., Ltd.(i) 1,102,564 (3,898) 196,507 (590)
Nanchang JMCG Frame Co., Ltd 1,094,172 (3,868) 11,499,163 (34,497)
Ford Vietnam Limited - - 19,500,000 (97,500)
Ford - - 6,304,000 (31,520)
Jiangxi Jiangling Chassis Co., Ltd. - - 4,786,897 (14,361)
Nanchang JMCG Shishun Logistics Co., Ltd. - - 4,267,697 (12,803)
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. - - 3,340,025 (7,014)
Other related parties 2,287,518 (8,087) 3,813,944 (13,215)
1,174,302,296 (2,659,730) 1,185,873,176 (2,702,156)
185
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
Receivables from related parties (Cont'd):
31 December 2021 31 December 2020
Provision for bad Provision for bad
Amount debts Amount debts
Other receivables
Jiangling Motor Electricity Vehicle Co., Ltd. 31,266,512 (93,800) - -
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 25,000,000 (75,000) 35,201,661 (105,605)
Jiangxi Lingrui Recycling Resources
Development Corporation 17,668,457 (53,005) - -
Other related parties 121,141 (364) 6,644 (20)
74,056,110 (222,169) 35,208,305 (105,625)
186
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
Receivables from related parties (Cont'd):
31 December 31 December
2021 2020
Advances to Nanchang Baojiang Steel
suppliers Processing Distribution Co., Ltd. 399,394,083 355,529,951
Financing
receivables JMCG Jingma Motors Co., Ltd. 2,357,022 5,172,364
Nanchang JMCG Frame Co., Ltd 2,000,000 -
4,357,022 5,172,364
Prepayment for Jiangxi Jiangling Motors Imp. & Exp.
projects Co., Ltd. - 1,239,661
Cash at bank JMCF 1,059,580,980 1,231,825,734
In 2021, the sales amount settled by JMCF wasRMB21,188,639,037(2020:
RMB21,682,764,117).
187
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties:
31 December 31 December
2021 2020
Accounts Nanchang Jiangling HuaXiang Auto
payable Components Co., Ltd. 476,070,536 600,620,464
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. 405,329,856 450,355,413
Jiangxi Jiangling Chassis Co., Ltd. 314,370,464 381,961,882
Jiangxi Jiangling Lear Interior System Co., Ltd. 251,892,398 244,023,570
Magna PT Powertrain (Jiangxi) Co., Ltd.(i) 224,125,697 257,203,673
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 188,395,117 343,739
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 181,015,647 140,584,875
Nanchang JMCG Liancheng Auto Component
Co., Ltd. 162,044,531 177,586,249
Nanchang Unistar Electric & Electronics Co.,
Ltd. 118,507,723 107,067,804
Ford 112,369,950 165,212,418
Nanchang JMCG Shishun Logistics Co., Ltd. 99,211,184 112,968,126
JMCG 68,694,580 108,139,686
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. 61,887,021 84,273,999
Hanon Systems 51,492,058 119,546,495
Jiangxi JMCG Specialty Vehicles Co., Ltd. 46,385,916 44,095,229
Nanchang Yinlun Heat-exchanger Co., Ltd. 38,501,505 39,863,083
Jiangxi Lingge Non-ferrous Metal Die-casting
Co., Ltd. 38,128,081 33,997,041
Dibao transportation equipment (Nanchang)
Co., Ltd 29,226,123 -
Nanchang Lianda Machinery Co., Ltd. 19,653,964 31,713,777
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. 16,813,329 17,656,588
Jiangling Motor Holdings Co., Ltd. 15,315,388 11,635,750
Jiangxi JMCG Boya brake system Co., Ltd 14,172,332 8,797,919
Changan Ford Automobile Co., Ltd. 10,017,548 7,408,214
Jiangxi Lingyun Automobile Industry
Technology Co.,Ltd 9,533,560 5,184,778
Jiangxi ISUZU Engine Co., Ltd. 7,167,608 441,696
Nanchang JMCG Xinchen Auto Component
Co., Ltd. 6,542,386 5,721,038
Jiangxi Lingrui Recycling Resources
Development Corporation 5,669,023 4,814,171
Jiangxi Jiangling group Fuxin Auto Parts Co.,
Ltd 5,126,842 -
Jiangling Aowei Automobile Spare Part Co.,
Ltd. 4,402,913 11,243,037
Auto Alliance (Thailand) Co., Ltd. 3,986,161 4,294,750
NC.Gear Forging Factory 3,008,017 921,767
Jiangxi JMCG Industry Co., Ltd. 2,995,670 1,044,850
Ford Otomotiv Sanayi A.S. 2,224,130 4,727,288
Jiangling Material Co., Ltd. 2,143,099 1,955,537
Jiangxi Mingfang Auto Parts Industry Co., Ltd 1,920,999 -
Nanchang Hengou Industry Co., Ltd. 1,537,861 -
Nanchang Gear Co., Ltd. 90,024 3,414,942
Other related parties 2,100,155 1,810,372
3,002,069,396 3,190,630,220
188
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties (Cont'd):
31 December 31 December
2021 2020
Other JMCG Jiangxi Engineering Construction Co.,
payables Ltd. 112,247,451 7,117,653
Ford Global Technologies,LLC 65,331,412 18,050,765
Ford 61,135,567 48,814,942
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. 24,120,434 23,287,853
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. 11,035,849 10,269,987
Magna PT Powertrain (Jiangxi) Co., Ltd.(i) 8,783,237 13,139,275
Nanchang JMCG Shishun Logistics Co., Ltd. 7,302,639 8,370,326
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. 5,719,260 1,588,791
Ford Motor (China) Co., Ltd. 4,670,514 2,570,952
Jiangxi JMCG Specialty Vehicles Co., Ltd. 4,590,958 3,682,741
Ford Otomotiv Sanayi A.S. 4,578,953 5,265,976
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 4,111,935 3,285,350
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 3,209,698 1,456,956
Nanchang Baojiang Steel Processing
Distribution Co., Ltd. 2,722,060 1,944,877
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. 2,229,384 1,345,255
Jiangxi JMCG Industry Co., Ltd. 1,753,181 3,726,567
Chongqing Changan Automobile Co., Ltd. 1,680,278 1,781,095
Hanon Systems 1,475,000 1,475,000
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. 1,438,427 2,481,859
JMCG Property Management Co. 1,265,900 995,400
Jiangxi Jiangling Lear Interior System Co., Ltd. 1,007,000 1,207,000
Nanchang Unistar Electric & Electronics Co.,
Ltd. 966,018 800,915
Jiangxi JMCG Motorhome Co.,Ltd. 737,264 481,132
China Changan Group Tianjin Sales Co., Ltd. 700,000 -
Jiangxi ISUZU Engine Co., Ltd. 596,744 -
Nanchang Yinlun Heat-exchanger Co., Ltd. 515,028 380,006
Changan Ford Automobile Co., Ltd. 120,136 18,503,441
JMCG 23,833 2,313,728
Other related parties 1,828,155 4,423,066
335,896,315 188,760,908
Contract Jiangxi Jiangling Group Special Vehicle Co.,
liabilities Ltd. 1,790,486 -
Other related parties 2,793,328 2,191,137
4,583,814 2,191,137
Lease
liabilities Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 17,391,559 -
JMCG 7,027,932 9,033,918
24,419,491 9,033,918
189
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(7) Commitments in relation to related parties
Capital commitments 31 December 2021 31 December 2020
JMCG Jiangxi Engineering
Construction Co., Ltd. 270,278,911 377,223,784
Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).
9 Contingencies
As at 31 December 2021, the Group had no contingencies that needed to be disclosedin
the notes to the financial statements.
10 Commitments
Capital expenditure commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised
on the balance sheet as at the balance sheet date were as follows:
31 December 2021 31 December 2020
Buildings, machinery and equipment 1,040,550,000 1,127,750,000
190
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Subsequent events
(1) Profit distribution
According to the resolution at the Board of Directors’ meeting on March28th, 2022, the
Board of Directors proposed that the Company distribute cash dividends of RMB0.266 per
share to all shareholders. Based on the issued shares of 863,214,000, the proposed cash
dividends totalled RMB229,614,924.
12 Financial instrument and risk
The Group's activities expose it to a variety of financial risks, which mainly comprise
market risk (primarily including foreign exchange risk and interest rate risk), credit risk and
liquidity risk. The above financial risks and the Group's risk management policies to
mitigate the risks are as follows:
The Board of Directors is responsible for planning and establishing the Group's risk
management framework, formulating the Group's risk management policies and related
guidelines, and supervising the implementation of risk management measures. The Group
has established risk management policies to identify and analyse the risks faced by the
Group. These risk management policies specify the risks such as market risk, credit risk
and liquidity risk management. The Group regularly evaluates the market environment and
changes in the Group's operating activities to determine whether to update the risk
management policies and systems or not. The Group’s risk management is carried out by
the Risk Management Committee under policies approved by the Board of Directors. The
Risk Management Committee works closely with other business departments of the Group
to identify, evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports
the audit results to the Risk Management Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority
of the transactions are denominated in RMB. The Group is exposed to foreign exchange
risk arising from the recognised assets and liabilities, and future transactions denominated
in foreign currencies, primarily with respect to USD. The Group monitors the amount of
assets and liabilities, and transactions denominated in foreign currencies to minimise the
foreign exchange risk. Therefore, the Group signed forward exchange contracts to
mitigate the foreign exchange risk (Note 4(20)).
The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group and the subsidiaries of the Group, were expressed in RMB As at 31
December 2021 and 31 December 2020 as follows:
31 December 2021
USD EUR Total
Financial liabilities
denominated in foreign
currency -
Derivative financial liabilities 10,704,619 - 10,704,619
Current portion of long-term
borrowings 417,507 - 417,507
Long-term borrowings 2,087,537 - 2,087,537
Other payables 130,811,883 240,329 131,052,212
144,021,546 240,329 144,261,875
191
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
31 December 2020
USD EUR Total
Financial liabilities
denominated in foreign
currency -
Derivative financial liabilities 3,716,727 - 3,716,727
Current portion of long-term
borrowings 427,277 - 427,277
Long-term borrowings 2,563,666 - 2,563,666
Other payables 70,936,756 1,469,682 72,406,438
77,644,426 1,469,682 79,114,108
As at 31 December 2021, for the financial assets and liabilities dominated in foreign
currencies, if the RMB had strengthened/weakened by 10% against the USD while all
other variables had been held constant, the Group’s net profit would have been
approximately RMB10,422,046(31 December 2020: approximately RMB 6,599,776)
higher/lower; if the RMB had strengthened/weakened by 10% against the EUR while all
other variables had been held constant, the Group’s net profit would have been
approximately RMB20,428(31 December 2020: approximately RMB142,961)higher/lower.
(b) Interest rate risk
The Group's interest rate risk mainly arises from interest-bearing debts such as short-term
borrowings and long-term borrowings. The financial liabilities of floating interest rate
expose the Group to cash flow interest rate risk, and the financial liabilities of fixed
interest rate expose the Group to fair value interest rate risk. The Group determines the
relative proportions of fixed-rate and floating-rate contracts based on the prevailing
market environment. As at 31 December 2021, the Group’s short-term borrowings of
RMB300,000,000(31 December 2020: RMB500,000,000) were fixed-rate borrowings, and
long-term borrowings of USD392,905 (31 December 2020: USD458,389) were fixed-rate
contracts, therefore there was no significant cash flow interest rate risk.
As at 31 December 2021 and 31 December 2020, there was no significant difference
between the fair value and the carrying amount of the Group’s bank borrowings with fixed
rates.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable,
accounts receivable, financing receivables, other receivables, long-term receivables and
derivative financial assets at fair value through profit or loss that are not included in the
impairment assessment scope. The carrying amount of the Group’s financial assets
reflects its maximum credit exposure on the balance sheet date.
The Group expects that there is no significant credit risk associated with cash at bank and
on hand since they are deposited at state-owned banks and other medium or large
sizebanks with good reputation and high credit rating. The Group does not expect that
there will be significant losses from non-performance by these banks.
192
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial instrument and risk (Cont’d)
(2) Credit risk (Cont’d)
In addition, the Group has policies to limit the credit exposure on notes receivable, accounts
receivable, financing receivables, other receivables and long-term receivables. The Group
assesses the credit quality of and sets credit limits on its customers by taking into account
their financial position, the availability of guarantee from third parties, their credit history and
other factors such as current market conditions. The credit history of the customers is
regularly monitored by the Group. In respect of customers with a poor credit history, the
Group will use written payment reminders, or shorten or cancel credit periods, to ensure the
overall credit risk of the Group is limited to a controllable extent.
As at 31 December 2021, the Group had no significant collateral or other credit
enhancements held as a result of the debtor’s mortgage (31 December 2020: Nil).
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group. The Group monitors rolling forecasts of the Group's short-term and long-term
liquidity requirements to ensure it has sufficient cash and securities that are readily
convertible to cash to meet operational needs, while maintaining sufficient headroom on its
undrawn committed borrowing facilities from major financial institutions so that the Group
does not breach borrowing limits or covenants on any of its borrowing facilities to meet the
short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity
date below at their undiscounted contractual cash flows:
31 December 2021
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 300,000,000 - - - 300,000,000
Derivative
financial
liabilities 10,704,619 - - - 10,704,619
Accounts payable 9,702,584,830 - - - 9,702,584,830
Other payables 5,253,800,805 - - - 5,253,800,805
Lease liabilities 90,602,618 80,927,296 203,090,850 - 374,620,764
Long-term
borrowings 453,517 447,254 1,304,189 422,205 2,627,165
15,358,146,389 81,374,550 204,395,039 422,205 15,644,338,183
193
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial instrument and risk (Cont’d)
(3) Liquidity risk (Cont’d)
The financial liabilities of the Group at the balance sheet date are analysed by their maturity
date below at their undiscounted contractual cash flows (Cont'd):
31 December 2020
Within 1 1 to 2 2 to 5 Over 5
year years years years Total
Short-term
borrowings 502,173,333 - - - 502,173,333
Derivative
financial
liabilities 3,716,727 - - - 3,716,727
Accounts
payable 10,026,215,877 - - - 10,026,215,877
Other
payables 4,153,849,625 - - - 4,153,849,625
Lease
liabilities 11,683,625 11,419,366 8,646,930 - 31,749,921
Long-term
borrowings 470,539 464,130 1,353,936 870,579 3,159,184
14,698,109,726 11,883,496 10,000,866 870,579 14,720,864,667
(i) As at 31 December 2021,the Group did not have lease contracts that had been signed but
had not yet been implemented.
194
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the
fair value hierarchy of the lowest level input that is significant to the entire fair value
measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Assets and liabilities measured at fair value on a recurring basis
As at 31 December 2021, the assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets -
Financial assets held for
trading -
Structural deposits - 100,242,329 - 100,242,329
Financing receivables -
Notes receivable - - 201,511,670 201,511,670
- 100,242,329 201,511,670 301,753,999
As at 31 December 2021, the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial liabilities -
Derivative financial
liabilities -
Forward foreign
exchange contracts - 10,704,619 - 10,704,619
195
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2020, the assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets -
Financial assets held for
trading -
Structural deposits - 803,892,985 - 803,892,985
Financing receivables -
Notes receivable - - 815,583,669 815,583,669
- 803,892,985 815,583,669 1,619,476,654
As at 31 December 2020, the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial liabilities -
Derivative financial
liabilities -
Forward foreign
exchange contracts - 3,716,727 - 3,716,727
The Group takes the date on which events causing the transfers between the levels take
place as the timing specific for recognising the transfers. There was no transfer between
Level 1 and Level 2 in 2021.
The fair value of financial instruments traded in an active market is determined at the
quoted market price; and the fair value of those not traded in an active market is
determined by the Group using valuation technique. The valuation models used mainly
comprise discounted cash flow model and market comparable corporate model. The inputs
of valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate,
etc.
196
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 financial assets are analysed below:
Changes in unrealised gains
or losses included in profit
or loss in 2021 with respect
Gains to assets still held As at 31
recognised in December 2021 - gains or
31 December 31 December profit or loss losses on changes in fair
2020 Increase Decrease 2021 (a) value
Financial assets
Financial assets
held for trading -
Monetary fund - 500,000,000 (500,000,000) - 198,623 -
Financing
receivables -
Notes receivable 815,583,669 3,073,998,320 (3,688,070,319) 201,511,670 - -
Total assets 815,583,669 3,573,998,320 (4,188,070,319) 201,511,670 198,623 -
(a) Gains recognised in profit or loss are recognised in investment income in the income statement.
197
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 financial assets are analysed below(Cont'd):
Changes in unrealised gains
or losses included in profit
or loss in 2020 with respect
Gains to assets still held As at 31
recognised in December 2020 - gains or
31 December 31 December profit or loss losses on changes in fair
2019 Increase Decrease 2020 (a) value
Financial assets
Financial assets
held for trading -
Monetary fund - 500,000,000 (500,000,000) - 244,059 -
Financing
receivables -
Notes receivable 289,044,373 2,325,165,208 (1,798,625,912) 815,583,669 - -
Total assets 289,044,373 2,825,165,208 (2,298,625,912) 815,583,669 244,059 -
(a) Gains recognised in profit or loss are recognised in investment income in the income statement.
198
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(2) Assets measured at fair value on a non-recurring basis
As at 31 December 2021 and 31 December 2020, the Group had no assets measured at
fair value on a non-recurring basis.
(3) Assets and liabilities not measured at fair value but for which the fair value is disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly comprise
notes receivable, accounts receivable, other receivables, long-term receivables, short-term
borrowings, payables, lease liabilities and long-term borrowings, etc.
The carrying amount of the Group's financial assets and liabilities not measured at fair
value is a reasonable approximation of their fair value.
The fair value of long-term borrowings is the present value of the contractually determined
stream of future cash flows discounted at the rate of interest applied at that time by the
market to instruments of comparable credit status and providing substantially the same
cash flows on the same terms, and categorised within Level 3 of the fair value hierarchy.
14 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue
as a going concern in order to provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, refund capital to shareholders, issue new shares or sell
assets to reduce debts.
The Group's total capital is calculated as “shareholders’ equity” as shown in the
consolidated balance sheet. The Group is not subject to external mandatory capital
requirements, and monitors capital on the basis of equity ratio.
As at 31 December 2021 and 31 December 2020, the Group's equity ratio was as follows:
31 December 2021 31 December 2020
Total borrowings 302,505,044 502,990,943
Total shareholders’ equity 8,555,444,589 10,986,474,009
Equity ratio 4% 5%
199
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements
(1) Accounts receivable
31 December 2021 31 December 2020
Accounts receivable 1,576,660,469 3,502,761,954
Less: Provision for bad debts (167,340,229) (171,881,303)
1,409,320,240 3,330,880,651
(a) The ageing of accounts receivable is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 1,231,549,719 3,043,074,741
Over1 years 345,110,750 459,687,213
1,576,660,469 3,502,761,954
(b) As at 31 December 2021, the top five accounts receivable ranked by remaining balances
are analysed as follows:
Amount of
provision for bad % of total
Balance debts balance
Company 1 1,049,027,460 (2,448,112) 66.53%
Company 2 74,668,369 - 4.74%
Company 3 72,230,000 (72,230,000) 4.58%
Company 4 27,956,053 (98,825) 1.77%
Company 5 16,858,567 (59,595) 1.07%
1,240,740,449 (74,836,532) 78.69%
200
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts
(i) Accounts receivable for which provision for bad debts is made on the individual basis are
analysed as follows:
31 December 2021
Book balance Provision for bad debts
Provision for
Amount Lifetime ECL (%) bad debts
Receivables from related
parties within the
Group i) 74,668,369 - -
New energy subsidies
receivable ii) 84,903,126 100% (84,903,126)
Receivables for
automobiles iii) 72,230,000 100% (72,230,000)
231,801,495 (157,133,126)
31 December 2020
Book balance Provision for bad debts
Provision for
Amount Lifetime ECL (%) bad debts
Receivables from related
parties within the
Group i) 1,775,196,875 - -
New energy subsidies
receivable ii) 84,903,126 100% (84,903,126)
Receivables for
automobiles iii) 74,480,000 100% (74,480,000)
1,934,580,001 (159,383,126)
i) As at 31 December 2021, the Company's accounts receivable from subsidiaries SZFJ was
RMB74,668,369. The Company carried out individual assessment on receivables from
subsidiaries. Based on the judgement of credit risk, there is no significant credit risk on
receivables from subsidiaries, no overdue or impairment.
As at 31 December 2020, the Company's accounts receivable due from subsidiaries JMCS,
SZFJ and GZFJ were RMB1,605,066,624, RMB167,353,472 and RMB2,776,779
respectively, totalling to RMB1,775,196,875. The Company carried out individual assessment
on receivables from subsidiaries. Based on the judgement of credit risk, there is no
significant credit risk on receivables from subsidiaries, no overdue or impairment.
ii) As at 31 December 2021 and 31 December 2020,state subsidies receivable for new
energy automobiles amounted to RMB84,903,126. As the corresponding new energy
vehicles may not meet the corresponding subsidy policy standards, the Company considered
that the state subsidies cannot be collected, therefore, full provision was made.
iii) As at 31 December 2021, since aforesaid companies in debts had difficulties in operation
and were involved in several legal proceedings, the Company considered that it was difficult
to recover such receivables, so related provision for bad debts was made in full amount
RMB72,230,000(31 December 2020:RMB74,480,000).
201
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Sales of general automobiles:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 833,314,688 0.08% (675,142)
Overdue for 1 to 30 days 149,950,389 0.08% (120,161)
Overdue for 31 to 60 days 29,645,955 2.44% (721,967)
Overdue over 90 days 17,638,503 4.15% (732,260)
114,035 5.01% (5,710)
1,030,663,570 (2,255,240)
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 1,096,348,057 0.21% (2,303,427)
Overdue for 1 to 30 days 70,701,614 0.21% (148,544)
Overdue for 31 to 60 days 345,798 6.35% (21,961)
1,167,395,469 (2,473,932)
Grouping - Sales of new energy automobiles:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Overdueover 90 days 111,207,654 6.51% (7,234,301)
202
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Sales of new energy automobiles(Cont’d):
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 138,042,462 4.94% (6,826,200)
Overdue for 1 to 30 days - — -
Overdue for 31 to 60 days 23,243,550 10.25% (2,381,426)
161,286,012 (9,207,626)
Grouping - Automobile parts:
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL(%) Amount
Not overdue 171,058,119 0.30% (513,174)
Overdue for 1 to 30 days 10,595,578 0.30% (31,787)
Overdue for 31 to 60 days 14,644,585 0.50% (73,223)
Overdue for 61 to 90 days 3,464,188 0.60% (20,785)
Overdue over 90 days 3,225,280 2.44% (78,593)
202,987,750 (717,562)
203
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Automobile parts (Cont’d):
31 December 2020
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 206,087,099 0.30% (618,261)
Overdue for 1 to 30 days 19,968,933 0.30% (59,907)
Overdue for 31 to 60 days 10,595,310 0.50% (52,977)
Overdue for 61 to 90 days 1,295,045 0.60% (7,770)
Overdue over 90 days 1,554,085 5.00% (77,704)
239,500,472 (816,619)
(iii) The provision for bad debts in the current year amounted to RMB4,541,074 was reversed,
because of the actual receipt of account receivables relating to the provision for bad debts
made in the prior period. Among them, RMB2,250,000 of accounts receivable for which
provision for bad debts was made on the individual basis in the previous period were
recovered in the current period, and the corresponding book balance was
RMB2,250,000.The significant amounts reversed or recovered were as follows:
Basis and justification for
Reasons for determining the provision for Amount of Recovery
reversal/recovery bad debts reversal/recovery method
The aforesaid companies in
The actual debts had difficulties in
receipt of operation and were involved in
account several legal proceedings, the
receivables Company considered the
relating to the receivables cannot be
provision for bad collected, therefore, full
Accounts debts made in provision was made for those
receivable 1 the prior period. receivables. 2,250,000 Received
(d) In 2021, no accounts receivable were written off.
(e) As at 31 December 2021 and 31 December 2020, the Company did not have accounts
receivable that were pledged.
204
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables
31 December 2021 31 December 2020
Receivable for subsidiary
disposal(Note 5) 252,000,000 -
Import working capital advances 25,000,000 35,000,000
Disposal of assets 17,668,457 -
Receivables from JMCH 9,679,410 1,247,724,942
Others 97,471,253 77,371,021
401,819,120 1,360,095,963
Less: Provision for bad debts (1,031,283) (188,740)
400,787,837 1,359,907,223
(a) The ageing of other receivables is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 399,577,953 1,359,304,567
Over 1 year 2,241,167 791,396
401,819,120 1,360,095,963
205
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements
Stage 1
12-month ECL
(grouping) 12-month ECL (individual) Sub-total Total
Provision for Provision for Provision for Provision for
Book balance bad debts Book balance bad debts bad debts bad debts
31 December 2020 112,371,021 (188,740) 1,247,724,942 - (188,740) (188,740)
Net increase/(decrease) in the
current year 279,768,689 — (1,238,045,532) — — —
Provision for bad debts reserved
in the current year — (842,543) — - (842,543) (842,543)
Provision for bad debts written
off in the current year — - — - - -
31 December 2021 392,139,710 (1,031,283) 9,679,410 - (1,031,283) (1,031,283)
206
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d)
As at 31 December 2021 and 31 December 2020, the Company did not have any other
receivables at Stage 2 and Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 31 December 2021 and 31 December 2020, provision for bad debts of other receivables
on the individual basis was analysed as follows:
31 December 2021
12-month ECL Provision for
Stage 1 Book balance (%) bad debts Reason
Receivables from JMCH 9,679,410 - - i)
i) As at 31 December 2021, the Company’s other receivables from subsidiary JMCH were
RMB9,679,410 (31 December 2020: RMB1,247,724,942). The Company carried out an
individual assessment on receivables from subsidiaries. Based on the judgement of credit risk,
there is no significant credit risk on receivables from subsidiaries that were overdue and
impaired.
(ii) As at 31 December 2021 and 31 December 2020, the Company’s other receivables with
provision for bad debts on the grouping basis were analysed below:
Other receivables with provision on the grouping basis at Stage 1:
31 December 2021 31 December 2020
Book
balance Provision for losses Book balance Provision for losses
Provision Provision
Amount ratio Amount Amount ratio Amount
Grouping of
operating
advances and
guarantees
Within 1 year 341,767,579 0.30% (1,024,521) 62,120,657 0.30% (186,365)
Over 1 year 2,241,167 0.30% (6,762) 791,396 0.30% (2,375)
Grouping of others):
Within 1 year 48,130,964 - - 49,458,968 - -
392,139,710 (1,031,283) 112,371,021 (188,740)
i)As at 31 December 2021 and 31 December 2020, the grouping of others are mainly interest
receivables from the Company's bank deposits. the Company’s interest receivable from cash
at bank mainly came state-owned banks and other medium or large size listed banks with
good reputation and high credit rating. Therefore, the Company expected there was no
significant loss on related interest receivable from non-performance by these banks.
As at 31 December 2021, the Company had no other receivables at Stage 2 and Stage 3.
207
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(c) In 2021, the provision for bad debts reserved amounted to RMB842,543.
(d) In 2021, no other receivables were written off.
(e) As at 31 December 2021, the top five other receivables ranked by remaining balances are
analysed as follows:
Provision
% of total for bad
Nature Balance Ageing balance debts
Receivable for
subsidiary Within 1
Company 1 disposal 252,000,000 year 62.71% (756,000)
Advances
classified as Within 1
Company 2 expenses 31,266,512 year 7.78% (93,800)
Advances
classified as Within 1
Company 3 expenses 25,000,000 year 6.22% (75,000)
Disposal of Within 1
Company 4 assets 17,668,457 year 4.40% (53,005)
Disposal of Within 1
Company 5 assets 9,679,410 year 2.41% -
335,614,379 83.52% (977,805)
208
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments
31 December 2021 31 December 2020
Subsidiaries (a) 2,756,943,493 2,048,000,000
Associates (b) 252,402,245 39,496,548
3,009,345,738 2,087,496,548
Less: Provision for impairment of long-term equity investments for subsidiaries (1,905,543,493) (526,000,000)
Provision for impairment of long-term equity investments for associates - -
(1,905,543,493) (526,000,000)
1,103,802,245 1,561,496,548
(a) Subsidiaries
Changes in the current year
Balance of
Other provision Cash
additions for impairment dividends
31 December Additional Debt Provision for and 31 December at the end the declared
2020 investments exemption impairment subtractions 2021 year this year
JMCH 852,000,000 1,142,000,000 166,943,493 (1,379,543,493) - 781,400,000 (1,905,543,493) -
JMCS 50,000,000 - - - - 50,000,000 - -
SZFJ 10,000,000 - - - - 10,000,000 - -
GZFJ 10,000,000 - - - - 10,000,000 - -
ThePower
Company(i) 600,000,000 - - - (600,000,000) - - -
1,522,000,000 1,142,000,000 166,943,493 (1,379,543,493) (600,000,000) 851,400,000 (1,905,543,493) -
209
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries(Cont’d)
(i) ThePower Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly-owned subsidiary of the Company. According to the
resolution of the Board of Directors in October 2020, the Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd. through public listing on
the Shanghai United Assets and Equity Exchange.
In January 2021, The Company and Yunnei Group signed the equity transaction contract.
On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting in 2021, and approved the change of the Power
Company's name to Shanxi Yunnei Power Co., Ltd., the change of shareholders to Yunnei Group and the Company, and the establishment of the
board of directors, and election of directors. After the completion of the aforementioned changes, Yunnei Group has become the parent company and
the ultimate parent company of the Power Company. The Company holds 40% of the shares of the Power Company and the Power Company
becomes an associate of the Company.
(b) Associate
Movements for the current year
Cash
Share of net dividends Ending
31 profit/(loss) declared by 31 balance of
December Increase in the under equity joint Provision for December Shareholding Voting rights provision for
2020 current period method ventures impairment 2021 (%) (%) impairment
ThePower Company — 240,000,000 (24,006,395) - - 215,993,605 40% 40% -
Hanon Systems 39,496,548 - (3,087,908) - - 36,408,640 19.15% 33.33% -
Total 39,496,548 240,000,000 (27,094,303) - - 252,402,245
210
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
2021 2020
Revenue from main operations 32,230,431,936 30,175,972,435
Revenue from other operations 661,606,456 552,275,430
32,892,038,392 30,728,247,865
2021 2020
Cost of revenue from main operations 28,545,317,717 25,758,133,679
Cost of sales from other operations 564,998,651 519,162,639
29,110,316,368 26,277,296,318
(a) Revenue and cost of sales from main operations
2021 2020
Cost of
Revenue from revenue from Cost of revenue
main main Revenue from from main
operations operations main operations operations s
Sales of
automobiles 30,095,151,966 26,882,101,617 28,382,524,670 24,423,856,544
Sales of
automobile
parts 2,026,158,467 1,544,733,777 1,699,021,801 1,238,994,675
Automobile
maintenance
services 109,121,503 118,482,323 94,425,964 95,282,460
32,230,431,936 28,545,317,717 30,175,972,435 25,758,133,679
(b) Revenue and cost of sales from other operations
2021 2020
Revenue from Cost of sales Cost of sales
other from other Revenue from from other
operations operations other operations operations
Sales of
materials 473,568,747 441,423,371 389,754,210 366,341,033
Others 188,037,709 123,575,280 162,521,220 152,821,606
661,606,456 564,998,651 552,275,430 519,162,639
211
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales (Cont’d)
(c) The breakdown of revenue earned in 2021 was as follows:
2021
Automobile
maintenance Materials
Automobiles Automobile parts services and others Total
Revenue from main
operations 30,095,151,966 2,026,158,467 109,121,503 - 32,230,431,936
Including: Recognised at a
time point 30,095,151,966 2,026,158,467 - - 32,121,310,433
Recognised within
a certain period - - 109,121,503 - 109,121,503
Revenue from other
operations - - - 661,606,456 661,606,456
30,095,151,966 2,026,158,467 109,121,503 661,606,456 32,892,038,392
2020
Automobile Total
Automobile maintenance Materials
Automobiles parts services and others
Revenue from main
operations 28,382,524,670 1,699,021,801 94,425,964 - 30,175,972,435
Including: Recognised at a
time point 28,382,524,670 1,699,021,801 - - 30,081,546,471
Recognised
within a
certain period - - 94,425,964 - 94,425,964
Revenue from other
operations - - - 552,275,430 552,275,430
28,382,524,670 1,699,021,801 94,425,964 552,275,430 30,728,247,865
(i) As of 31 December 2021, the amount of revenue corresponding to the performance
obligations that the company has signed but has not performed or has not yet performed is
RMB176,065,858, of which the company expects that RMB25,201,908 will be recognized as
revenue from the sale of automobiles and parts in 2022. RMB150,863,950 will be
recognized as revenue from automobile maintenance services during 2022 to 2027.
(5) Investment income
2021 2020
Investment income from financial assets held for trading 3,894,456 75,400,552
Investment loss from forward exchange settlement (20,618,121) (2,421,091)
Losses on discount of financing receivables eligible for
derecognition (8,344,916) (1,113,466)
Losses on long-term equity investments under equity
method (21,475,697) (1,438,009)
(46,544,278) 70,427,986
There is no significant restriction on the remittance of investment income to the Company.
212
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
2021 2020
Government grants recognised in profit or
loss for the current period 552,831,370 277,756,664
Gains on disposal of long-term equity
investments 52,133,307 -
Gains and losses arising from changes in
fair value of financial assets and liabilities
held at fair value through profit or loss,
and investment losses on disposal of
related financial assets and liabilities (16,082,076) 76,150,461
Fund occupation fee received from non-
financial institutions 15,836,668 7,628,722
Gains/Losses on disposal of non-current
assets 5,107,814 (167,780,780)
Reversal of provision for impairment of
receivables tested individually 2,250,000 6,540,000
Net amount of other non-operating
income and expenses 2,027,076 5,869,080
Other items of profit or loss conforming to
the definition of non-recurring profit or
loss 18,765,020 (10,493,560)
632,869,179 195,670,587
Effect of income tax (88,332,046) (50,160,162)
Effect of gains and losses on minority
interests (net of tax) - -
544,537,133 145,510,425
Basis for preparation of statement of non-recurring profit or loss
Under the requirements in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public - Non-recurring Profit or Loss
[2008] from CSRC, non-recurring profit or loss refers to that arises from transactions and
events that are not directly relevant to ordinary activities, or that are relevant to ordinary
activities, but are extraordinary and not expected to recur frequently that would have an
influence on users of financial statements making economic decisions on the financial
performance and profitability of an enterprise.
2 Return on net assets and earnings per share
Weighted average Earnings per share
return on net assets Basic earnings per Diluted earnings
(%) share per share
2021 2020 2021 2020 2021 2020
Net profit attributable to
ordinary shareholders
of the Company 5.87% 5.13% 0.67 0.64 0.67 0.64
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss 0.30% 3.77% 0.03 0.47 0.03 0.47
213
