Jiangling Motors Corporation, Ltd.
2023 Half-year Report
2023-08
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 Half-year Report are truthful,
accurate and complete.
All the Directors were present at the Board meeting to review this Half-year
Report.
Future plans, development strategies and other forward-looking statements in
this report do not constitute a substantial commitment of the Company to
investors. Investors are advised to pay attention to investment risks.
Neither cash dividend nor stock dividend was distributed. The Board decided
not to convert capital reserve to share capital this time.
The Half-year Report is prepared in Chinese and English. In case of
discrepancy, the Chinese version will prevail.
2
Contents
Chapter I Important Notes, Contents and Abbreviations ......................... 2
Chapter II Brief Introduction and Operating Highlight ............................... 5
Chapter III Management Discussion and Analysis .................................... 8
Chapter IV Corporate Governance Structure .......................................... 18
Chapter V Environment and Social Responsibilities .............................. 21
Chapter VI Major events .......................................................................... 25
Chapter VII Share Capital Changes & Shareholders ............................... 29
Chapter VIII Preferred Shares................................................................... 32
Chapter IX Bond related Information....................................................... 33
Chapter X Financial Statements ............................................................ 34
3
Catalogue on Documents for Reference
1. Originals of 2023 Half-year financial statements signed by Chairman, Chief
Financial Officer and Chief of Finance Department.
2. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in the first half of 2023.
3. Chinese version of the Half-year Report prepared per the China GAAP.
Abbreviations:
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co., Ltd.
Ford Ford Motor Company
JIC Nanchang Jiangling Investment Co., Ltd.
JMC or the Company Jiangling Motors Corporation, Ltd.
JMCH JMC Heavy Duty Vehicle Co., Ltd.
EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
4
Chapter II Brief Introduction
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
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 City, Jiangxi Province, Nanchang City, Jiangxi Province,
P.R.C 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. Other
I. Contact methods
Changes of registered address, headquarter address, postal code, website
and e-mail in the reporting period
□Applicable Not Applicable
The Company's registered address, headquarter address, postal code,
website and e-mail remain unchanged during the reporting period.
For details, please refer to the 2022 Annual report.
II. Changes of newspapers and website for information disclosure, and place
for achieving half-year report in the reporting period
□Applicable Not Applicable
There is no change of names of the medias and website of Stock Exchange
for publication of the Company’s Half-year Report and the place for achieving
the Company’s Half-year Report in the reporting period. Please refer to 2022
Annual Report for details.
III. Other Relevant Information
Whether other relevant information has changed during the reporting period
□Applicable Not Applicable
5
4. Main accounting data and financial ratios
Unit: RMB
Reporting period Same period
(2023 first half) last year Change (%)
Revenue 15,429,372,309 14,222,759,384 8.48%
Profit Attributable to the
Equity Holders of the 729,387,557 452,381,022 61.23%
Company
Net Profit Attributable to
Shareholders of Listed
Company After 417,729,211 -108,434,576 485.24%
Deducting Non-Recurring
Profit or Loss
Net Cash Generated
1,657,148,337 -3,331,546,475 149.74%
From Operating Activities
Basic Earnings Per
0.84 0.52 61.23%
Share (RMB)
Diluted Earnings Per
0.84 0.52 61.23%
Share (RMB)
Weighted Average up 2.57
7.59% 5.02%
Return on Equity Ratio percentage points
At the end of the At the end of the
reporting period previous year Change (%)
Total Assets 27,888,246,043 27,468,321,835 1.53%
Shareholders’ Equity
Attributable to the Equity 9,616,596,204 9,243,817,333 4.03%
Holders of the Company
5. 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
□Applicable Not Applicable
II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable Not Applicable
6. Non-recurring profit and loss items and amounts
Applicable □Not Applicable
6
Unit: RMB
Reporting period
(2023 first half)
Profit and loss of non-current assets disposal (including
-755,894
the charge-off part of the asset impairment provision)
Government subsidies included in the current profit and
358,643,954
loss
Capital occupation fee charged for non-financial
6,890,293
enterprises included in the current profit and loss
In addition to the effective hedging business related to
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, 6,774,959
as well as the investment income obtained from the
disposal of trading financial assets, trading financial
liabilities and available for sale financial assets
Other non-operating income and expenses except the
6,919,342
above
Other profit and loss items that meet the definition of
-9,062,423
non-recurring profit and loss
Less: Income tax impact amount 57,720,416
Influence of minority shareholders' equity 31,469
Total 311,658,346
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.
7
Chapter III Management Discussion and Analysis
1. Company’s Core Business during the Reporting Period
In 2023, as a joint result from the gradual recovery of the domestic economy,
the continuous release of the effect of national policies, and the lower base of
the same period of last year, the automobile industry has also begun to
gradually recover. In the first half of the year, the total production and sales of
automobiles were 13.248 million and 13.239 million, with YOY growth of 9.3%
and 9.8% respectively. Among them, the production and sales of passenger
cars were 11.281 million and 11.268 million, with YOY growth of 8.1% and 8.8%
respectively, while those of commercial vehicles were 1.967 million and 1.971
million, with YOY growth of 16.9% and 15.8% respectively. New energy
vehicles continue the momentum of rapid growth, and their production and
sales in the first half of the year were 3.788 million and 3.747 million, with YOY
growth of 42.4% and 44.1%, and the market share was 28.3%.
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, 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 the first half of 2023, JMC achieved sales volume of 146,350 units, including
33,346 light buses, 31,790 trucks, 27,415 Pickups and 53,799 SUVs, with YOY
increase of 7.64%. In the first half of 2023, the total production volume was
143,150 units, including 31,644 light buses, 31,720 trucks, 25,483 Pickups and
54,303 SUVs, with YOY increase of 8.00%. In the first half of 2023, JMC
operation revenue reached RMB 15.429 billion, up 8.48% year on year; the
Company’s profit attributable to the Company’s equity holders reached RMB
729 million, up 61.23% year on year, mainly reflecting the increase in gross
profit due to the increase in sales volume and the decrease in raw material
costs, as well as the increase in profit due to the change in profit and loss of
minority shareholders.
2. Core Competitiveness Analysis
The Company is a modern Sino-foreign joint venture that integrates automobile
research and development, manufacturing and sales. It is a pioneer in the
Chinese auto industry that provides excellent products and solutions for the
intelligent logistics field by relying on the market leadership and advanced
technology of light commercial vehicles. It owns the titles of National High-tech
Enterprise, National Innovation Pilot Enterprise, National Enterprise
Technology Center, National Industrial Design Center, National Intellectual
Property Demonstration Enterprise, and National Vehicle Export Base. It has
8
been ranking among the top 100 most valuable automobile brands in the world
for many consecutive years. In the first half of 2023, JMC light bus ranked No.1
in the segment, Pickup ranked No.2 in the segment, and light truck ranked No.6
in the segment. Export sales have soared, doubling year-on-year.
JMC always takes customers as the center, and provides customized
integrated solution based on customer use scenarios. During the epidemic
period, Transit Ambulance was the first negative pressure ambulances
delivered nationwide, and was awarded as "Vehicle No.1 in Epidemic Fighting".
The market share of JMC ambulance and police vehicle exceeds 80% in SVO
segment. At the same time, the Company continues to empower smart logistics,
design integrated solutions for the needs of large logistics customers to
increase efficiency and reduce cost, and provide C2B customized product
services, end-to-end logistics solutions and overall logistics capacity platform
services.
The Company is a full scenario solution provider for light commercial vehicles.
JMC light bus has an insight into customers’ needs and the light bus operation
scenarios, and has launched high-quality, excellent and cost-effective light bus
product portfolios, achieving the full coverage of scenarios like freight,
passenger transport and refit. The Company launched the new Light Truck
Kaiyun +, as the first model under the Qingyun structure, through eight
upgrades and nine customized product configurations to truly achieve a high
degree of matching with users’ needs, opening the era of light truck
customization. JMC launched "JMC Dadao", a new Pickup product, positioning
"Chinese pickup expert of full scenarios", covering the market of mid-to-high
commercial and passenger dual-use and passenger off-road Pickups whose
price are more than RMB 100,000. JMC has established the coexistent strategy
of the three major Pickup products and completed the full price and product
matrix layout in the Pickup segment. JMC Ford passenger vehicles continue to
strengthen differentiated customer experience, channel expansion and brand
communication.
The Company adheres to the dual-brand strategy of JMC and Ford, giving full
play to its own advantages while deeply integrating Ford's global system. In
terms of technology research and development, with the help of Ford's global
platform, the Company has gradually formed the core competitiveness of
independent research and development, established an independent research
and development system, built an advanced global digital design platform, and
developed design and new product release simultaneously with Ford Global, is
a world-leading technology center and industrial design center. In terms of
brand channels, the Company currently has more than 400 tier 1 dealers, with
a total of more than 1,000 dealers, and has established a modern marketing
system through the four-in-one franchise model of sales, accessories, service
9
and information. In terms of manufacturing management, the Company has
vehicle production bases such as Xiaolan Plant and Fushan Plant, covering
stamping, welding, painting, diesel engines, gasoline engines and other
advanced manufacturing technology, to create a highly intelligent, highly
flexible smart manufacturing center. The Company is a demonstration
enterprise in Jiangxi Province for integration of informatization and
industrialization. JMC has been deeply ploughing in such fields as electrification,
connectivity, intelligence, sharing and digitalization, etc. JMC new energy brand,
“JMC Fun-to-Drive” implements the strategy of transforming future with science
and technology, revitalizing industry with smart manufacturing, and lead the
Company to get on the track of new energy development more quickly.
3. Core Business Analysis
Summary
Whether the disclosure is the same as the main business engaged in by the
Company during the reporting period
Yes □No
Year-over-Year Changes of Main Financial Data
Unit: RMB
YOY change
2023 1H 2022 1H Reason
（%）
Revenue 15,429,372,309 14,222,759,384 8.48%
Cost of sales 13,156,439,449 12,331,101,754 6.69%
Distribution costs 655,850,091 696,658,422 -5.86%
Administrative expenses 520,114,941 452,056,986 15.06%
Finance expense -93,306,361 -80,197,351 -16.35%
Mainly due to losses
Income tax expense -91,534,142 -8,935 -1024344.79%
of subsidiaries.
Research and
1,084,212,021 896,948,849 20.88%
Development Expenditure
Mainly due to the
increase of sales
volume, the
Net cash generated from increased payments
1,657,148,337 -3,331,546,475 -149.74%
operating activities received from
dealers and the
decrease of
payments for goods.
10
Mainly due to the
received money by
the disposal of the
land and
Net cash used in investing aboveground
-658,303,311 441,137,006 -249.23%
activities buildings in the
Qingyunpu site of
the Company during
the same period last
year.
Mainly due to the
lower new
Net cash used in financing borrowings
-283,374,696 1,120,616,839 -125.29%
activities compared to the
same period last
year.
Mainly due to the
Net increase/(decrease) in increase in net cash
715,470,330 -1,769,792,630 -140.43%
cash and cash equivalents generated from
operating activities.
Significant changes in the composition or source of profits during the reporting
period
□Applicable Not Applicable
There was no significant change in the composition or source of profits
Composition of Core Business
Unit: RMB
2023 First Half 2022 First Half
YOY change
Proportion Proportion
Amount Amount （%）
(%) (%)
Revenue 15,429,372,309 100% 14,222,759,384 100% 8.48%
By Industry
Automobile Industry 15,429,372,309 100% 14,222,759,384 100% 8.48%
By Products
Vehicle 13,332,827,137 86.41% 12,865,705,605 90.46% 3.63%
Components 1,810,283,833 11.73% 1,060,688,066 7.46% 70.67%
Automobile Maintenance
60,945,176 0.40% 50,406,375 0.35% 20.91%
services
Material & Others 225,316,163 1.46% 245,959,338 1.73% -8.39%
By region
China 15,429,372,309 100% 14,222,759,384 100% 8.48%
Reach to 10% of Revenue or Profit by Industry, Product or Region
Applicable □Not Applicable
11
Unit: RMB
Y-O-Y gross
Gross Y-O-Y turnover Y-O-Y Cost
Turnover Cost margin change
Margin change (%) Change (%)
(points)
By Industry
Automobile
15,429,372,309 13,156,439,449 14.73% 8.48% 6.69% 1.43%
Industry
By Products
Vehicle 13,332,827,137 11,457,724,950 14.06% 3.63% 1.89% 1.46%
By Region
China 15,429,372,309 13,156,439,449 14.73% 8.48% 6.69% 1.43%
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
4. Non-core business analysis
□Applicable Not Applicable
5. Analysis of Assets and Liabilities
I. Major changes
Unit: RMB
YOY
June 30, 2023 December 31, 2022 Proportion
Asset item change
Proportio
Amount Amount Proportion (Points)
n
Cash and cash equivalents 9,875,434,450 35.41% 8,604,977,725 31.33% 4.08%
Accounts receivables 4,392,802,999 15.75% 4,245,541,752 15.46% 0.29%
Inventories 1,765,496,170 6.33% 2,129,040,820 7.75% -1.42%
Long-term equity
244,589,183 0.88% 248,482,822 0.90% -0.02%
investments
Fixed assets 5,507,814,029 19.75% 5,446,384,369 19.83% -0.08%
Construction in progress 612,199,142 2.20% 718,612,190 2.62% -0.42%
Right-of-use asset 213,592,537 0.77% 233,622,890 0.85% -0.08%
Short-term borrowings 1,300,000,000 4.66% 1,100,000,000 4.00% 0.66%
Contract liabilities 194,672,088 0.70% 152,065,025 0.55% 0.15%
Long-term borrowings 11,506,059 0.04% 20,858,057 0.08% -0.04%
Lease liabilities 134,278,525 0.48% 193,090,351 0.70% -0.22%
II. Main Overseas Assets
□Applicable Not Applicable
III. The fair value of the assets and liabilities.
Applicable □Not Applicable
12
Unit: RMB
1.Trading
financial 2.
assets Derivative
financial financial
Financing Financial
Item (excluding Subtotal
assets assets receivables liabilities
derivative
financial
assets)
Beginning
of the
period 0 2,972,698 376,662,817 379,635,515 0
Loss/profit
in fair value
in the
period 136,000 4,114,063 0 4,250,063 0
Cumulative
changes in
fair value
recorded
into equity 0 0 0 0 0
Impairment
in the
period 0 0 0 0 0
Purchase in
the period 100,000,000 0 1,428,361,700 1,528,361,700 0
Sell in the
period 0 0 1,441,003,480 1,441,003,480 0
Other
changes 0 0 0 0 0
End of the
period 100,136,000 7,086,761 364,021,037 471,243,798 0
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
IV. Restriction on Assets Rights as of the End of the Reporting Period
Unit: RMB
Book value at the end
Items Cause for restriction
of the period
Cash and cash Deposit of bank borrowings,
equivalents 541,048,830.00 litigation frozen funds.
6. Investment Analysis
I. Summary
□Applicable Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□Applicable Not Applicable
13
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable Not Applicable
IV. Financial Assets Investment
(a) Stock Investment
□Applicable Not Applicable
There was no stock 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.
7. Sales of Major Assets and Equity
I. Sales of Major Assets
□Applicable Not Applicable
No Major Assets were sold during the reporting period.
II. Sales of Major Equity
Applicable □Not Applicable
Counterparty Volvo Lastvagnar Aktiebolag
100% equity of JMC Heavy Duty Vehicle Co., Ltd., a
Sold equity
wholly owned subsidiary of JMC
Date of sale The transaction had been terminated
Transaction price (RMB thousand) 781,400
Equity sale pricing principle Public bidding process.
Whether it is a related party transaction No.
Association with the counterparty No relationship.
Whether all the equity involved has
No.
been transferred
Since the items required for government approval
on the transaction were not completed within the
agreed time, the Company and Volvo Lastvagnar
Whether the plan is implemented as Aktiebolag agree to terminate the transaction
scheduled, if not, the reason and the through negotiation.
measures taken by the company The Company will continue to actively promote the
restructuring of Jiangling Heavy Duty Vehicle Co.,
Ltd., and make a timely announcement according to
the process.
Date of disclosure May 13, 2023
The announcement (No. 2023-013) was published
Index
on the website: www.cninfo.com.cn
8. Analysis of major shareholding companies
14
Applicable □Not Applicable
Operating Results of Main Subsidiaries and Joint-Stock Companies whose
impact on JMC’s net profit more than 10%
Unit: RMB
Jiangling Motors Jiangling Ford Motor
Name of JMC Heavy Duty
Sales Corporation, Technology
companies Vehicle Co., Ltd.
Ltd (Shanghai) Co., Ltd.
Type of
Subsidiary Subsidiary Holding subsidiary
companies
Engineering and
technology research
Production and sales
and experimental
Sales of vehicles of automobiles,
Main business development, sales of
and service parts. engines and other
vehicles, new energy
automotive parts
vehicles, auto parts,
etc.
Registered
50,000,000 1,323,793,174 200,000,000
capital
Total assets 5,197,518,585 679,324,917 473,609,343
Net assets 270,214,956 644,548,405 -483,553,669
Turnover 10,204,357,097 67,403 61,921,303
Operating
-97,801,782 -52,531,870 -769,412,525
profit
Net profit -72,796,328 -52,191,177 -577,083,161
Acquisition and disposal of the subsidiaries
□Applicable Not Applicable
Description of the main holding and participating companies
None.
10. Structured Entities Controlled by JMC
□Applicable Not Applicable
10. Potential Challenges and Solutions
In 2023, as the economy and society fully return to normal operation, the
national economy continues to recover and the overall recovery is good. At the
same time, the current economic operation is also facing new difficulties and
challenges, mainly because domestic demand is insufficient, some enterprises
face difficulties in business operation, many hidden risks exist in key areas, and
the external environment is complex and grim, but the Chinese economy has
great resilience and potential for development, and the fundamentals for long-
term improvement have not changed. Under the background of the acceleration
15
of the transformation of the new four modernizations of the automobile industry,
the competition pattern of the industry is becoming increasingly fierce, and the
price of raw materials is still at a high level, although it has been reduced, which
brings greater challenges to the Company's operation. In order to accelerate
the transformation and development of the Company and achieve effective
improvement in quality and reasonable growth in quantity, the Company will
focus on the following aspects:
(1) Continue to consolidate and improve the Company's leading
advantages in the field of light commercial vehicles, improve channel
capabilities, and promote brand upgrading and renewal;
(2) Take advantage of new products to break the circle and attract potential
customers, promote brand upgrading and renewal, improve the
commercial vehicles’ product matrix, and enhance products’
competitiveness;
(3) Continue to optimize the network of passenger vehicles’ dealers,
promote brand transformation, strengthen customers’ experience, and
enhance channel’s combat capabilities;
(4) Continue to accelerate the development and launch of new energy
products, strengthen the brand awareness of new energy, promote the
construction of new energy channels, and improve the terminal
marketing capacity; Explore new energy’s innovative marketing model;
(5) Continue to deepen the export business cooperation with Ford,
accelerate the project initiation, research and development of export
products, and enhance the coverage of export products; Continue to
build capacity of overseas business and expand opportunities in new
market;
(6) Always insist on taking customers as the center, deeply understand the
market changes and customer needs, continue to innovate, and
cooperate in an efficient way to provide customers with quality products
and services;
(7) Continue to promote cost reduction, expense control and efficiency
improvement, while strengthening the management and control of
operating cash flow, and improving the quality of operations;
(8) Strengthen corporate governance, strictly abide by national laws and
regulations, and improve risk assessment and control mechanisms.
The Company will focus on light commercial vehicles with SUVs as the support,
further promote scientific and technological innovation and industrial
transformation, stabilize the leading position of light commercial vehicles, and
improve the sales of passenger vehicles. JMC is to strengthen market
development, promote brand renewal, and continue to consolidate the core
competitiveness of light commercial vehicles. Channel construction and brand
transformation of passenger vehicles will be accelerated to improve market
awareness and customer experience. The Company will accelerate the
development of new energy vehicles, vigorously expand overseas export
business, strengthen the existing market, and exploit incremental markets. The
16
Company shall expand new business and profit model, and build an ecological
platform for future sustainable development. At the same time the Company will
also focus on the process control and launch planning of new product programs,
so as to achieve high-quality production of new products and volume targets.
JMC is to accelerate the digital transformation, implement quality and efficiency
improvement actions, improve operational efficiency and profitability to promote
high-quality development of the Company.
17
Chapter IV Corporate Governance Structure
1. Introduction to the Shareholders’ Meetings Held in the Reporting Period
I. Index to the Shareholders’ Meeting in the reporting period
In the first half of 2023, the Company has hold one Shareholders’ Meetings,
and the relevant contents are as follows:
Session of the meeting：2022 Annual Shareholders’ Meeting
The meeting type: annual shareholders’ meeting
Investor participation ratio: 75.40%
Convening date: June 16, 2023
Disclosure date: June 17, 2023
The meeting resolutions:
1. approve 2022 Work Report of the Board of Directors of JMC;
2. approve 2022 Work Report of the Supervisory Board of JMC;
3. approve 2022 Annual Report of JMC and the Extracts from such Annual
Report;
4. approve 2022 Financial Statements of JMC;
5. approve the Proposal on JMC Profit Distribution for Year 2022;
6. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with JMCG Finance Company;
7. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its
subsidiaries;
8. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Jiangling Motor Group Co., Ltd. and its subsidiaries;
9. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Ford Motor Company and its subsidiaries;
10. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Nanchang Jiangling HuaXiang Auto Components Co.,
Ltd.;
11. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Nanchang Baojiang Steel Processing Distribution Co.,
Ltd.
12. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Magna PT Powertrain (Jiangxi) Co., Ltd.;
13. appvoe the Proposal on the Y2023 Routine Related Party Transaction
Framework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
14. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Jiangxi JMCG Specialty Vehicles Co., Ltd. and its
subsidiaries;
15. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Nanchang Faurecia Emissions Control Technologies Co.,
Ltd.;
18
16. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with China South Industries Group Corporation and its
subsidiaries;
17. approve the Proposal on the Y2023 Routine Related Party Transaction
Framework with Nanchang Unistar Electric & Electronics Co., Ltd.;
18. approve JMC Year 2023-2025 Shareholder Return Plan;
19. Election of Directors for the Eleventh Board of Directors of JMC (Excluding
Independent Directors):
19.01 approve the Proposal on Electing Mr. Qiu Tiangao as a Director of the
Eleventh Board of Directors of JMC;
19.02 approve the Proposal on Electing Mr. Shengpo Wu as a Director of the
Eleventh Board of Directors of JMC;
19.03 approve the Proposal on Electing Mr. Ryan Anderson as a Director of the
Eleventh Board of Directors of JMC;
19.04 approve the Proposal on Electing Ms. Xiong Chunying as a Director of
the Eleventh Board of Directors of JMC;
19.05 approve the Proposal on Electing Mr. Jin Wenhui as a Director of the
Eleventh Board of Directors of JMC;
19.06 approve the Proposal on Electing Mr. Yuan Mingxue as a Director of the
Eleventh Board of Directors of JMC;
20. Election of Independent Directors for the Eleventh Board of Directors of
JMC:
20.01 approve the Proposal on Electing Mr. Yu Zhuoping as an Independent
Director of the Eleventh Board of Directors of JMC;
20.02 approve the Proposal on Electing Mr. Chen Jiangfeng as an Independent
Director of the Eleventh Board of Directors of JMC;
20.03 approve the Proposal on Electing Ms. Wang Yue as an Independent
Director of the Eleventh Board of Directors of JMC;
21. Election of Supervisors for the Eleventh Supervisory Board of JMC:
21.01 approve the Proposal on Electing Mr. Xiao Hu as a Supervisor of the
Eleventh Supervisory Board of JMC;
21.02 approve the Proposal on Electing Mr. Zhang Yangyang as a Supervisor
of the Eleventh Supervisory Board of JMC;
21.03 approve the Proposal on Electing Mr. Zhang Jian as a Supervisor of the
Eleventh Supervisory Board of JMC.
II. Special Shareholders’ Meeting convened by preferred-shareholders whose
voting rights were restored
□Applicable Not Applicable
1. Changes of directors, supervisors and senior management
□Applicable Not Applicable
There were no changes in the Directors, Supervisors and senior management
of the Company during the reporting period, as detailed in the 2022 Annual
Report.
19
3. Proposal on profit distribution and converting capital reserve to share
capital for the reporting period
□Applicable Not Applicable
The Company planned that neither cash dividend nor stock dividend was
distributed, and not to convert capital reserve to share capital for the first half
of 2023.
4. 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.
20
Chapter V Environmental and Social Responsibility
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
Policies and industry standards on environmental protection
In the process of production and operation, the Company strictly abides by
Environmental Protection Law, Air Pollution Prevention and Control Law, Water
Pollution Prevention and Control Law, Solid Waste Pollution Prevention and
Control Law, Environmental Impact Assessment Law, Hazardous Waste
Storage Pollution Control Standard, Technical Specification for Setting
Hazardous Waste Identification Marks and other applicable regulations and
standards on environmental protection. Through the implementation of
ISO14001 Environmental Management System and Ford Environmental
Operating System, the Company believes that quality and environmental
protection are with the same importance, strictly complies with environmental
laws and regulations, constantly reduces the environmental pollution and
resource loss in the manufacturing process, avoids environmental accidents,
and continuously improves environmental behavior.
Administrative permit for environmental protection
In the process of environmental operation control, the Company takes the
initiative to analyze and foresee the current and future hidden worries, actively
takes preventive measures, and makes targeted countermeasures to
implement improvements. In terms of new construction, expansion and
reconstruction projects, the Company should make comprehensive
environmental protection planning and "three simultaneous" assessment, and
always implement the concept of energy saving and low carbon from the design
source. In 2023, the environmental impact assessment on film pretreatment
technical renovation project of SUV line in the Company's Xiaolan
Paintshophas been completed; the application for the extension of the sewage
discharge permit for Casting Plant has been approved; the sewage discharge
permits of other plants are within the period of validity.
Name of
company or JMC JMC
subsidiary
Kind of principal
Wastewater discharge
pollutant and Exhaust emission pollutant
pollutant
specific pollutant
21
Name of principal
pollutant and COD, NH-N SO2, NOx, NMHC
specific pollutant
Mode of
Intermittent discharge Intermittent discharge
discharge
Number of
5 150
discharge outlet
Distribution of 1 in Fushan Site, 2 in
38 in Fushan Site, 81 in
discharge outlet Xiaolan Site, 1 in
Xiaolan Site, 28 in Casting
Casting Plant and 1 in
Plant and 3 in Axle Plant
Axle Plant
Discharge NOx: 71mg/m3;
COD: 30-132mg/L
concentration NMHC: 3.40mg/m3
NH-N: 0.741-5.99mg/L
Particulate matter: 1.8 mg/m3
Applicable Emission Standards for
standard for Atmospheric Pollutants from
pollutant Boilers (GB13271-2014)
discharge Gan EIA [2015] No. 144 Volatile Organic Compounds
Integrated Wastewater Emission Standards - Part 5:
Discharge Standard Auto Manufacturing
(GB 8978-1996) (DB36/1101.5-2019)
Emission Standard of Air
Pollutants for Foundry
Industry (GB 39726—2020)
Total amount of COD: 15.09t; NOx: 24.39t
discharge NH-N: 0.79t
Total amount of
COD≤533.851t;
discharge NOx≤95.59t
NH-N≤25.197t
audited
Excessive Meet Standard Meet Standard
discharge
Treatment of pollutants
The Company has built five wastewater treatment stations, including Fushan
Wastewater Treatment Station and Xiaolan Wastewater Treatment Station,
which treated about 400,000 tons of wastewater from January to June in 2023,
and the treated wastewater steadily met the national discharge standards. In
order to ensure the standard discharge of waste gas, the Company has
installed zeolite roller + RTO and other disposal facilities, and the equipment
operates stably. JMC smart environmental supervision platform monitors in real
time to ensure the stable up-to-standard discharge of VOC data. In terms of the
waste management, the Company has adopted intelligent management system
to further standardize the refined management of hazardous waste. And by
means of source control, brainstorming, digging into the internal potential, the
Company has actively adopted various measures to reduce waste and cost.
Emergency plan on emergency environmental incidents
22
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. The
Emergency Plan has been registered in Environmental Protection Bureau. JMC
organizes various emergency drills to ensure the effectiveness of the plan.
Relevant information of investment in environmental governance and
protection and payment of environmental protection tax
From January to June 2023, the Company invested RMB 1.5 million in the
disposal of solid waste, RMB 500,000 in environmental monitoring and online
operation, and RMB 160,000 in the installation of intelligent terminal devices of
hazardous waste in Engine Plant and Axle Plant to meet the latest requirements
of the national laws and regulations. The Company has also invested RMB
160,000 to transform the hazardous waste station of Axle Plant, and the
improved hazardous waste station met the standardization requirements. In
2023, from January to June, the Company paid a total of about RMB 90
thousand as environmental protection tax.
Environmental self-monitoring scheme
The Company carries out self-monitoring in strict accordance with the
requirements of the state. The monitoring schemes, monitoring results, and
annual monitoring report on pollution sources were disclosed on the
government platform. In 2023, from January to June, the reporting rate of self-
monitoring data of the Company's four plants on the national monitoring
platform is 100%.
Administrative punishment for environmental problems during the
reporting period
None.
Other environmental information that should be disclosed
None.
Measures and effects taken to reduce carbon emissions during the
reporting period
Applicable □Not Applicable
The energy conservation optimization of Xiaolan Plant VOC treatment
equipment’s on-of：①After RTO is shut down, heat storage mode at high
temperature is adopted, and the initial temperature of ceramic is 300~400℃ the
next day, reducing the heating time, the heating time is reduced from 2.5 hours
to 1 hour. ②After production, the fresh air fan is used for dilution purge instead
of open RTO for waste gas treatment, and the shutdown is reduced form 2
hours to 0.5 hours, which can save annual electricity consumption of 900,000
degrees and natural gas consumption of 70,000 cubic meters.
23
Energy saving and consumption reduction of Fushan Coating air compressor
station: There are two dryers running at the same time in the small painting air
compressor station. By increasing the control range of the inverter from 8.4-9.2
to 8.7-9.4, the operation of one dryer can be saved, which can save annual
electricity consumption of 200,000 degrees.
Improvements on engines and sealer application machines: To ensure the
sealer application temperature, it is necessary to turn on the heating air
conditioner. By adding the silicone rubber heating sheet and adding the
temperature control unit, the temperature of the heating sheet is controlled to
ensure the temperature of the sealer application machine, so that the heating
air conditioner does not need to be turned on.It can save annually natural gas
consumption of 33,000 cubic meters.
Other environmental information that should be disclosed
None.
2. Social responsibility
The Company has thoroughly implemented the decision and arrangement of
the CPC Central Committee on consolidating the achievements of poverty
alleviation and comprehensively promoting rural revitalization. According to the
arrangement of Jiangxi Provincial Party Committee and provincial government,
under the leadership of JMCG, the Company implemented the designated
assistance work of Xianting Village, Songhu Town, Nanchang Xinjian District,
Huanggangtou Village, Liuhu Town, Nanchang Xinjian District, and Luoyang
Village, Dafen Town, Suichuan County, Ji 'an City. With industrial revitalization
as the starting point, the Company deeply promoted rural revitalization through
deployment of talents and consumer assistance. In the first half of 2023, the
Company purchased more than 5,000 catties of rapeseed oil and 46,000 catties
of yellow peaches from the help villages, driving the villagers to increase
income and get rich. At the same time, the Company continued to carry out the
"Jiangling Xiqiao Project", a public welfare project. In February 2023, the
brand of "Jiangling Xiqiao Project" was renewaled, the "Internet +" model was
introduced, and the "Build A Bridge Together, Jiangling Xiqiao Monthly Donor
Plan" was launched on the "National Public Welfare", the official public
fundraising platform of China Rural Development Fund, and through the JMC
Zhixing APP, millions of JMC car owners are linked to the JMC Xiqiao Project,
driving more forces to help rural revitalization.
24
Chapter VI Major Events
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. 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. Appointment or Dismissal of Accounting Firm
Whether the 2023 half-year report is audited?
□Yes No
JMC 2023 half-year report is not audited.
5. Explanation of the Board of Directors, the Supervisory Board to abnormal
opinions from accounting firm for the reporting period
□Applicable Not Applicable
6. Explanation of the board of directors to abnormal opinions from accounting
firm in 2022 report
□Applicable Not Applicable
7. Related Matters regarding Bankruptcy
□Applicable Not Applicable
There was no matter involving bankruptcy during the reporting period.
8. Litigation or arbitration
Major Litigation or Arbitration
□Applicable Not Applicable
There was no major litigation or arbitration during the reporting period.
Other litigation
□Applicable Not Applicable
9. Punishment
25
□Applicable Not Applicable
10. Honesty and credit of JMC and its controlling shareholder or actual
controlling party
□Applicable Not Applicable
11. Major related transactions
I. Routine related party transactions
Applicable □Not Applicable
Please refer to the note 7 “Related party Transactions” to the financial
statements in the Chapter X Financial Statements for details.
II. 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.
III. Related party transaction concerning outside co-investment
□Applicable Not Applicable
There was no outside co-investment during the reporting period.
IV. 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.
V. Transaction with related financial companies or financial companies that
the company holds
Applicable □Not Applicable
Deposit business
Balance at Current amount
Balance at
the
Maximum Deposit Take out the the end of
Related The related beginning of
daily deposit Deposit rate amount amount the period
party relationship the
limit (RMB (RMB (RMB
period(RMB
thousands) thousands) thousands)
thousands)
JMCG
Subsidiary 1.35%-
Finance * 886,250 6,457,960 6,558,000 786,210
of JMCG 2.25%
Company
* 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.
26
Loan business
Balance at Current amount
the Balance at
loan limit Loan beginning Loan Repayment the end of
Related The related
(RMB rate of the amount amount the period
party relationship
thousands) range period (RMB (RMB (RMB
(RMB thousands) thousands) thousands)
thousands)
JMCG
Subsidiary
Finance 1,000,000 2.5% 200,000 0 200,000 0
of JMCG
Company
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance
Subsidiary of JMCG Granting credit 1,300,000 0
Company
VI. The transactions between the financial company controlled by the
company and its related parties
□Applicable Not Applicable
The Company has no controlling financial company.
VII. Other major related party transactions
□Applicable Not Applicable
The Company has no other major related party transation in the reporing
period.
12. 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
Please refer to the Note 4 (16), note 4 (29) and note 7 (5) (b) of the financial
statements in the Chapter X Financial Statements for details.
Project of which the profit and loss brought for the company reaches more
than 10% of the total profit of the company during the reporting period
□Applicable Not Applicable
27
There was no leasing project of which the profit and loss brought for the
Company reached more than 10% of the total profit of the Company during
the reporting period.
II. Major guarantee
□Applicable Not Applicable
The Company had no outside guarantee in the reporting period.
III. Entrusted financial management
□Applicable Not Applicable
There was no entrusted financial management in the reporting period.
IV. Other Major Contracts
□Applicable Not Applicable
There was no other major contract in the reporting period.
13. Other major events
□Applicable Not Applicable
There was no other major event in the reporting period.
14. Major event of JMC subsidiary
□Applicable Not Applicable
28
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
Progress in the implementation of share repurchase
□Applicable Not Applicable
The implementation progress of reducing the buyback shares by means of
centralized bidding
□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
29
2. Securities issuance and listing
□Applicable Not Applicable
3. Shareholders and shareholding status
Total shareholders (as of JMC had 43,677 shareholders, including 38,093 A-share holders, and 5,584 B-share
June 30, 2023) holders.
Top ten shareholders
Shares
Shareholding Shares at Shares with due to
Shareholder
Shareholder Name Percentage the End of Change (+,-) Trading mortgage
Type
(%) Year Restriction or mark or
frozen
Nanchang Jiangling State-owned
41.03% 354,176,000 0 0 0
Investment Co., Ltd. legal person
Foreign legal
Ford Motor Company 32.00% 276,228,394 0 0 0
person
Hong Kong Securities
Foreign legal
Clearing Company Ltd. 1.69% 14,605,036 9,106,304 0 0
person
(HKSCC)
Shanghai Automotive State-owned
1.51% 13,019,610 0 0 0
Co., Ltd. Legal person
Domestic
Jin Xing 0.75% 6,498,500 392,300 0 0
Natural Person
Foreign legal
GAOLING FUND, L.P. 0.63% 5,453,086 0 0 0
person
INVESCO FUNDS Foreign legal
0.44% 3,818,089 0 0 0
SICAV person
Domestic
Li Yifeng 0.26% 2,285,500 -368,100 0 0
Natural Person
LSV EMERGING
Foreign legal
MARKETS EQUITY 0.23% 1,961,600 0 0 0
person
FUND, L.P.
Ping An Asset
Domestic non-
Management - Xinfu 34
State-owned 0.21% 1,819,029 1,819,029 0 0
Asset Management
legal persons
Product
Strategic investors or general legal persons become the top 10 shareholders due to the placement
None.
of new shares
Description of association among the above-mentioned shareholders or concerted action None.
Description of the above shareholders' entrusted / entrusted voting rights and waived voting rights None.
A special description of the special repurchase account among the top 10 shareholders None.
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
Hong Kong Securities Clearing Company
14,605,036 A share
Ltd. (HKSCC)
Shanghai Automotive Co., Ltd. 13,019,610 A share
Jin Xing 6,498,500 B share
GAOLING FUND, L.P. 5,453,086 B share
INVESCO FUNDS SICAV 3,818,089 B share
Li Yifeng 2,285,500 B share
LSV EMERGING MARKETS EQUITY
1,961,600 B share
FUND, L.P.
Ping An Asset Management - Xinfu 34 Asset
1,819,029 A share
Management Product
30
Description of the association and concerted action between the top 10 shareholders
holding unlimited tradable shares and between the top 10 shareholders holding None.
unlimited tradable shares and the top 10 shareholders.
Description of the top 10 shareholders participating in margin trading business None.
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.
4. Changes of shares held by directors, supervisors and senior management
□Applicable Not Applicable
There was no change of shares held by Directors, Supervisors and senior
management in the reporting period. Please refer to 2022 annual report for
details.
5. Change of controlling shareholders or actual controlling parties
Change of controlling shareholders
□Applicable Not Applicable
There was no change of controlling shareholders during the reporting period.
Change of actual controlling parties
□Applicable Not Applicable
There was no change of actual controlling parties during the reporting period.
31
Chapter VIII Preferred Shares
□Applicable Not Applicable
JMC had no preferred shares in the reporting period.
32
Chapter IX Bond related Information
□Applicable Not Applicable
33
Chapter X Financial Statements
JIANGLING MOTORS CORPORATION, LTD.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
34
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 30 JUNE 2023
(All amounts in RMB Yuan unless otherwise stated)
30 June 2023 31 December 2022 30 June 2023 31 December 2022
Assets Note
Consolidated* Consolidated Company* Company
Current assets
Cash and cash equivalents 4(1) 9,875,434,450 8,604,977,725 7,481,796,932 6,910,646,428
Financial assets held for
100,136,000 - - -
trading 4(2)
Derivative financial assets 4(3) 7,086,761 2,972,698 7,086,761 2,972,698
Notes receivable 4(4) 174,659 742,752,730 500,174,659 1,099,742,888
4(5)、
Accounts receivable 4,392,802,999 4,245,541,752 3,868,035,170 2,368,898,327
13(1)
Financing receivables 4(6) 364,021,037 376,662,817 154,798,531 56,868,760
Advances to suppliers 4(7) 294,535,913 277,743,526 294,535,913 277,278,672
4(8)、
Other receivables 75,428,532 111,063,372 79,012,999 128,855,851
13(2)
Inventories 4(9) 1,765,496,170 2,129,040,820 1,765,496,170 2,129,040,820
Current portion of non-current
14,170,026 13,851,634 14,170,026 13,851,634
assets 4(11)
Other current assets 4(10) 1,232,518,771 1,362,502,624 1,180,999,559 1,310,164,197
Total current assets 18,121,805,318 17,867,109,698 15,346,106,720 14,298,320,275
Non-current assets
Long-term receivables 4(12) 24,006,049 31,148,044 24,006,049 31,148,044
4(13)、
Long-term equity investments 244,589,183 248,482,822 1,193,140,173 1,146,033,812
13(3)
Fixed assets 4(14) 5,507,814,029 5,446,384,369 5,050,472,910 4,961,529,936
Construction in progress 4(15) 612,199,142 718,612,190 579,352,195 688,385,553
Right-of-use assets 4(16) 213,592,537 233,622,890 199,060,941 232,666,362
Intangible assets 4(17) 1,516,359,364 1,195,005,752 1,296,700,786 971,966,227
Development expenditures 4(17) 361,194,976 477,233,877 361,194,976 477,233,877
Deferred tax assets 4(18) 1,286,685,445 1,250,722,193 109,924,902 235,320,874
Total non-current assets 9,766,440,725 9,601,212,137 8,813,852,932 8,744,284,685
TOTAL ASSETS 27,888,246,043 27,468,321,835 24,159,959,652 23,042,604,960
35
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS (CONT'D) AS AT 30 JUNE 2023
(All amounts in RMB Yuan unless otherwise stated)
30 June 2023 31 December 2022 30 June 2023 31 December 2022
Liabilities and equity Note
Consolidated* Consolidated Company* Company
Current liabilities
Short-term borrowings 4(20) 1,300,000,000 1,100,000,000 800,000,000 1,100,000,000
Accounts payable 4(21) 8,939,531,087 9,015,978,354 8,938,374,402 9,015,584,820
Contract liabilities 4(22) 194,672,088 152,065,025 423,440,567 1,011,195
Employee benefits payable 4(23) 967,168,765 915,703,680 873,460,304 824,364,157
Taxes payable 4(24) 94,726,465 193,249,604 93,639,867 110,894,972
Other payables 4(25) 5,903,153,144 5,672,708,511 2,684,104,044 2,418,186,421
Current portion of non-
4(26) 78,126,567 72,680,756 71,037,193 71,491,054
current liabilities
Other current liabilities 4(27) 385,411,966 386,889,542 87,017,709 29,814,619
Total current liabilities 17,862,790,082 17,509,275,472 13,971,074,086 13,571,347,238
Non-current liabilities
Long-term borrowings 4(28) 11,506,059 20,858,057 11,506,059 20,858,057
Lease liabilities 4(29) 134,278,525 193,090,351 127,154,897 192,887,339
Provisions 4(30) 246,591,541 250,762,589 - -
Deferred income 4(31) 64,781,931 60,849,643 64,781,931 60,849,643
Long-term employee
4(32) 49,230,343 51,293,000 49,004,343 51,067,000
benefits payable
Deferred tax liabilities 4(18) 22,964,666 23,305,359 - -
Other non-current liabilities 4(33) 116,447,990 118,240,580 - -
Total non-current
645,801,055 718,399,579 252,447,230 325,662,039
liabilities
Total liabilities 18,508,591,137 18,227,675,051 14,223,521,316 13,897,009,277
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
4(36) (13,484,250) (13,484,250) (13,844,250) (13,844,250)
income
Special reserve 4(37) 9,394,050 - 9,394,050 -
Surplus reserve 4(38) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 4(39) 7,486,422,914 7,123,038,093 7,806,625,046 7,025,176,443
Total equity attributable to
shareholders of the 9,616,596,204 9,243,817,333 9,936,438,336 9,145,595,683
Company
Minority interests (236,941,298) (3,170,549) - -
Total equity 9,379,654,906 9,240,646,784 9,936,438,336 9,145,595,683
TOTAL LIABILITIES AND
EQUITY
27,888,246,043 27,468,321,835 24,159,959,652 23,042,604,960
note：* Unaudited financial indexes
36
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR 2023 FIRST HALF-YEAR
(All amounts in RMB Yuan unless otherwise stated)
2023 First 2022 First 2023 First 2022 First
Item Note Half-year Half-year Half-year Half-year
Consolidated* Consolidated* Company* Company*
Revenue 4(40)、13(4) 15,429,372,309 14,222,759,384 15,449,037,934 13,389,364,818
4(40)、4(46)
Less: Cost of sales (13,156,439,449) (12,331,101,754) (12,862,306,219) (11,909,476,970)
、13(4)
Taxes and surcharges 4(41) (440,363,547) (389,826,444) (434,553,879) (377,488,847)
Selling and distribution
4(42)、4(46) (655,850,091) (696,658,422) (72,461,216) (83,308,622)
expenses
General and administrative
4(43)、4(46) (520,114,941) (452,056,986) (470,830,812) (406,986,891)
expenses
Research and development
4(44)、4(46) (748,135,775) (666,994,373) (748,135,775) (666,994,373)
expenses
Financial expenses 4(45) 93,306,361 80,197,351 60,804,106 54,389,966
Including: Interest expenses (17,531,522) (28,127,051) (17,378,308) (28,081,558)
Interest income 116,473,977 116,152,161 83,081,729 90,066,994
Add: Other income 4(48) 358,643,954 261,059,234 356,955,122 260,767,899
Investment income 4(49)、13(5) (13,413,788) (21,941,623) (12,981,958) (21,583,903)
Including: Share of profit of
(3,893,639) (4,151,633) (3,893,639) (4,151,633)
associates and joint ventures
Gains on changes in fair value 4(50) 4,250,063 5,030,223 4,114,063 5,272,552
Credit impairment losses 4(47) (2,335,878) 14,373,447 (2,164,265) 6,759,141
Gains on disposal of assets 4(51) (293,630) 395,561,300 (236,732) 395,626,098
Operating profit 348,625,588 420,401,337 1,267,240,369 646,340,868
Add: Non-operating income 4(52) 7,042,517 2,019,528 6,143,130 152,468
Less: Non-operating expenses 4(53) (585,439) (506,418) (536,187) (501,138)
Total profit 355,082,666 421,914,447 1,272,847,312 645,992,198
Less: Income tax expenses 4(54) 91,534,142 8,935 (125,395,973) (44,469,043)
Net profit 446,616,808 421,923,382 1,147,451,339 601,523,155
Classified by continuity of
operations
Net profit from continuing
446,616,808 421,923,382 1,147,451,339 601,523,155
operations
Net profit from discontinued
- - - -
operations
Classified by ownership of the
equity
Minority interests (282,770,749) (30,457,640) - -
Attributable to shareholders of
729,387,557 452,381,022 1,147,451,339 601,523,155
the Company
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 4(36) - - - -
benefit plan
Attributable to minority
- - - -
interests
Total comprehensive income 446,616,808 421,923,382 1,147,451,339 601,523,155
Attributable to shareholders of
729,387,557 452,381,022 1,147,451,339 601,523,155
the Company
Attributable to minority
(282,770,749) (30,457,640) - -
interests
37
Earnings per share
Basic earnings per share (RMB
4(55) 0.84 0.52 —— ——
Yuan)
Diluted earnings per share
4(55) 0.84 0.52 —— ——
(RMB Yuan)
note：* Unaudited financial indexes
38
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR 2023 FIRST HALF-
YEAR
(All amounts in RMB Yuan unless otherwise stated)
2023 First 2022 First 2023 First 2022 First
Item Note Half-year Half-year Half-year Half-year
Consolidated* Consolidated* Company* Company*
Cash flows generated from/(uesd in)
operating activities
Cash received from sales of goods or
17,406,530,446 13,881,647,926 16,222,462,727 13,084,629,718
rendering of services
Refunds of taxes 304,302,316 186,169,752 304,302,316 139,724,259
Cash received relating to other
4(56) 405,291,238 345,024,561 387,595,895 312,654,885
operating activities
Sub-total of cash inflows 18,116,124,000 14,412,842,239 16,914,360,938 13,537,008,862
Cash paid for goods and services -12,822,290,581 -13,805,191,534 -12,450,373,527 -13,336,027,601
Cash paid to and on behalf of
-1,214,500,391 -1,339,385,986 -1,096,589,996 -1,232,176,140
employees
Payments of taxes and surcharges -1,103,139,617 -1,243,506,029 -1,073,581,827 -1,055,447,311
Cash paid relating to other operating
4(56) -1,319,045,074 -1,356,305,165 -771,371,068 -736,258,757
activities
Sub-total of cash outflows -16,458,975,663 -17,744,388,714 -15,391,916,418 -16,359,909,809
Net cash flows generated
4(57) 1,657,148,337 -3,331,546,475 1,522,444,520 -2,822,900,947
from/(uesd in) operating activities
Cash flows (uesd in)/generated from
investing activities
Cash received from disposal of
- 200,000,000 - -
investments
Cash received from returns on
- 1,523,836 - -
investments
Net cash received from disposal of
fixed assets, intangible assets and 795,730 781,145,312 1,676,649 781,143,451
other long term assets
Cash received from disposal of
36,000,000 63,700,000 36,000,000 63,700,000
subsidiaries and other business units
Cash received relating to other
4(56) 103,235,093 125,467,180 76,225,119 102,590,963
investing activities
Sub-total of cash inflows 140,030,823 1,171,836,328 113,901,768 947,434,414
Cash paid to acquire fixed assets,
intangible assets and other long-term -698,245,427 -619,241,914 -696,001,267 -615,965,224
assets
Cash paid to acquire investments -100,000,000 -100,000,000 -53,167,203 -51,938,730
Cash paid relating to other investing
-88,707 -11,457,408 -88,707 -11,457,408
activities
Sub-total of cash outflows -798,334,134 -730,699,322 -749,257,177 -679,361,362
Net cash flows (uesd in)/generated
-658,303,311 441,137,006 -635,355,409 268,073,052
from investing activities
Cash flows (uesd in)/generated from
financing activities
Cash received from absorbing
49,000,000 49,000,000 - -
investments
Including: cash received by the
subsidiary from absorbing minority 49,000,000 49,000,000 - -
shareholders' investment
Cash received from borrowings 2,586,819,167 2,378,749,167 2,091,194,167 2,378,749,167
Sub-total of cash inflows 2,635,819,167 2,427,749,167 2,091,194,167 2,378,749,167
Cash repayments of borrowings -2,406,409,044 -1,300,208,436 -2,406,409,044 -1,300,208,436
Cash payments for distribution of
-3,335,711 -168,968 -3,335,711 -168,968
dividends, profits or interest expenses
Cash paid relating to other financing
4(56) -509,449,108 -6,754,924 -5,865,317 -6,420,903
activities
Sub-total of cash outflows -2,919,193,863 -1,307,132,328 -2,415,610,072 -1,306,798,307
39
Net cash flows (uesd in)/generated
-283,374,696 1,120,616,839 -324,415,905 1,071,950,860
from financing activities
Effect of foreign exchange rate
changes on cash and cash - - - -
equivalents
Net increase/(decrease) in cash and
4(57) 715,470,330 -1,769,792,630 562,673,206 -1,482,877,035
cash equivalents
Add: Cash and cash equivalents at
4(57) 8,543,193,654 9,569,051,314 6,863,577,337 7,706,280,711
beginning of year
Cash and cash equivalents at end of
4(57) 9,258,663,984 7,799,258,684 7,426,250,543 6,223,403,676
period
note：* Unaudited financial indexes
40
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(All amounts in RMB Yuan unless otherwise stated)
First half of 2023
Attributable to shareholders of the parent company
Other Minority
Item Note Share Capital Special Surplus Retained Total equity
comprehensive interests
capital surplus reserve reserves earnings
income
Balance at 1 January 2023 863,214,000 839,442,490 (13,484,250) - 431,607,000 7,123,038,093 (3,170,549) 9,240,646,784
Movements for the six months
- - - 9,394,050 - 363,384,821 (233,770,749) 139,008,122
ended 30 June 2023*
Total comprehensive income
Net profit/(loss) - - - - - 729,387,557 (282,770,749) 446,616,808
Other comprehensive income - - - - - - - -
Total comprehensive income for the
- - - - - 729,387,557 (282,770,749) 446,616,808
year
Capital contributed by owners and
capital decreases
Capital invested by shareholders - - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders 4(39) - - - - - (366,002,736) - (366,002,736)
Special reserves
Provided - - - 12,877,704 - - - 12,877,704
Ultilized - - - (3,483,654) - - - (3,483,654)
Balance at 30 June 2023* 863,214,000 839,442,490 (13,484,250) 9,394,050 431,607,000 7,486,422,914 (236,941,298) 9,379,654,906
41
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT’D)
(All amounts in RMB Yuan unless otherwise stated)
First half of 2022
Attributable to shareholders of the parent company
Other Minority
Item Note Share Capital Surplus Retained Total equity
comprehensive interests
capital surplus reserves earnings
income
Balance at 1 January 2022 863,214,000 839,442,490 (16,422,750) 431,607,000 6,437,603,849 - 8,555,444,589
Movements for the six months ended
- - - - 222,766,098 18,542,360 241,308,458
30 June 2022*
Total comprehensive income
Net profit - - - - 452,381,022 (30,457,640) 421,923,382
Other comprehensive income - - - - - - -
Total comprehensive income for the
- - - - 452,381,022 (30,457,640) 421,923,382
year
Capital contributed by owners and
capital decreases
Capital invested by shareholders - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders 4(39) - - - - (229,614,924) - (229,614,924)
Balance at 30 June 2022* 863,214,000 839,442,490 (16,422,750) 431,607,000 6,660,369,947 18,542,360 8,796,753,047
note：* Unaudited financial indexes
42
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
(All amounts in RMB Yuan unless otherwise stated)
First half of 2023
Other
Share Capital Special Surplus Retained
Item Note comprehensive Total equity
capital surplus reserve reserves earnings
income
Balance at 1 January 2023 863,214,000 839,442,490 (13,844,250) - 431,607,000 7,025,176,443 9,145,595,683
Movements for the six months
- - - 9,394,050 - 781,448,603 790,842,653
ended 30 June 2023*
Total comprehensive income
Net profit - - - - - 1,147,451,339 1,147,451,339
Other comprehensive income - - - - - - -
Total comprehensive income
- - - - - 1,147,451,339 1,147,451,339
for the year
Profit distribution
Distribution to shareholders 4(39) - - - - - (366,002,736) (366,002,736)
Special reserves
Provided - - - 12,877,704 - - 12,877,704
Ultilized - - - (3,483,654) - - (3,483,654)
Balance at 30 June 2023* 863,214,000 839,442,490 (13,844,250) 9,394,050 431,607,000 7,806,625,046 9,936,438,336
43
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY (CONT’D)
(All amounts in RMB Yuan unless otherwise stated)
First half of 2022
Other
Capital Surplus Retained
Item Note Share capital comprehensive Total equity
surplus reserves earnings
income
Balance at 1 January 2022 863,214,000 839,442,490 (16,684,500) 431,607,000 6,259,291,734 8,376,870,724
Movements for the six months ended 30
- - - - 371,908,231 371,908,231
June 2022*
Total comprehensive income
Net profit - - - - 601,523,155 601,523,155
Other comprehensive income - - - - - -
Total comprehensive income for the
- - - - 601,523,155 601,523,155
year
Profit distribution
Distribution to shareholders 4(39) - - - - (229,614,924) (229,614,924)
Balance at 30 June 2022* 863,214,000 839,442,490 (16,684,500) 431,607,000 6,631,199,965 8,748,778,955
note：* Unaudited financial indexes
44
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 30 June 2023, 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 FORD E series automobiles of Ford Motor
(China) Co., Ltd. as the dealer; import and export of automobiles and parts; dealership of
used cars; provision of enterprise management and consulting services related to
production and sales of automobiles.
Subsidiaries included in the consolidation scope for the current period are detailed in Note
5.
These financial statements were authorised for issue by the Company's Board of Directors
on August 28 2023.
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(25).
45
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 Standard 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.
These financial statements have been prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the Six Months Ended 30 June 2023 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 30 June 2023 and their financial performance, cash flows and other information for the
period then ended.
(3) Fiscal year
The Company’s fiscal year starts on 1 January and ends on 30 June.
(4) Recording currency
The recording currency of the company and its subsidiaries 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.
46
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 sales 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 sales 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 sales 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.
47
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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:
48
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 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. The Group presents long-term
receivables that are due within one year from the balance sheet date (including one year)
as non-current assets due within one year.
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.
49
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 receivables financing at fair value
through other comprehensive income is recognised on the basis of ECL.
Giving consideration to reasonable and supportable information that is related to past
events, current conditions and forecasts of future economic conditions and is available
without undue cost or effort at the balance sheet date, 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.
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
recognises the lifetime ECL regardless of whether there exists a significant financing
component.
Except for the above-mentioned notes receivable, accounts receivable and financing
receivables, 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 and identifies it in Stage 1 since initial
recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1 and Stage 2, 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).
50
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 methods are as follows:
Grouping - Bank acceptance notes State-owned banks and joint stock banks
Customers purchasing using trade acceptance
Grouping - Trade acceptance notes notes
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 - Other receivables Other receivables with the same nature
For accounts receivable classified as a portfolio and financing of notes receivable and
receivables resulting from daily operating activities such as sale of goods and provision of
services, 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.
51
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
52
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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-process, finished goods, low-value consumables,
materials in transit and materials on consignment, etc., and are measured at the lower of cost
or net realizable 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, estimated contract fulfilment costs and estimated costs necessary to make the
sale and related taxes.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation method of low value consumables
Low value consumables are amortised into expenses in full when issued for use.
53
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
For long-term equity investments accounted for using the equity method, 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.
54
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
55
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 2 to 10 years 4%-22.32% 9.6% to 42.2%
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.
56
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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, 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.
57
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 to 7 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.
58
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(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)).
(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.
59
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
60
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
61
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Revenue
The Group sells automobiles and automobile parts to distributors or 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) Sale of 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. According to the contract, the delivery is completed after
the products are delivered at the contracted delivery location and acceptance by both
parties. The Group recognises the revenue at the timing of delivery completion.
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 automobile 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.
62
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 at no consideration, 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 Group recorded at the actual amount of borrowings when received the loans at policy-
based preferential interest rates received and the related borrowing costs are calculated on
the basis of the principal amount borrowed and the preferential interest rate under the policy.
63
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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.
64
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 by the regulations of the Ministry of
Finance. 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 eligible rental waivers on existing lease contracts, 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.
65
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 and vehicles under operating leases, rental income is recognised on a
straight-line basis over the lease term.
(23) Specific Reserve
According to the decision of the State Council on Further Strengthening the work of
production safety(Guofa No.2 2004), the notice of Circular of the State Council on Further
Strengthening the work of enterprise production safety (Guofa No.23 2010) and Measures
for the Administration of the Extraction and Use of Enterprise Production Safety Expenses
(Caizi (2022) No. 136) issued by the Ministry of Finance and the Ministry of Emergency
Response in December 2022, the Group extracted safety production costs at a certain
percentage of its operating revenue in the previous year, which is specifically used for safety
costs.
The Group's production safety expenses, which are extracted in accordance with the
aforementioned national regulations, are included in the cost of relevant products or current
profit or loss, and are also included in special reserves.
When the safety fund is subsequently used for revenue expenditure, the specific reserve is
reduced accordingly. On utilization of the safety fund for fixed assets, the specific reserve
is reduced as the fixed assets are recognised, which is the time when the related assets are
ready for their intended use; in such cases, an amount that corresponds to thereduction in
the specific reserve is recognised in accumulated depreciation with respect to the related
fixed assets. As a consequence, such fixed assets are not depreciated in subsequent
periods.
(24) 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.
66
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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
When the Group distinguishes the different stages of financial instruments, its judgement
on significant increase in credit risk and occurrence of credit impairment is as follows:
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.
67
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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. According
to the contract, the delivery is completed after the products are delivered at the contracted
delivery location and acceptance 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. The Group recognizes the revenue at the
timing of the delivery completion.
(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.
68
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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 the first half of 2023, the weights of “base”, “bad” and “good”
are 68%, 16% and 16% (In the first half of 2022: 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 the first half of 2023, the Group
has considered the uncertainty under different macroeconomic scenarios, 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 4.56% 2.02% 7.11%
Consumer price
index 3.45% -33.12% 40.02%
In the first half of 2022, the key macroeconomic parameters used in each scenario are listed
below:
Scenarios
Base Bad Good
Gross domestic
product 7.81% 4.74% 10.89%
Consumer price
index 1.82% -1.38% 5.02%
69
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(ii) Provision for long-term asset impairment
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 an arm’s length transaction, 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.
70
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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.
71
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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, estimated contract performance
costs, 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 and distribution 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 contract
performance costs, 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 decline in the value of inventory.
If the actual selling prices, costs to completion, estimated contract performance costs,
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.
72
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
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 Taxable income 15% and 25%
(a)
Value-added tax Taxable value-added amount (Tax 13%, 9% and 6%
(“VAT”) (b) payable 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.
(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%.
(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 Maintenance
and Construction 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
maintenance and construction tax at the rates of 5% and 7%.
73
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(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. Under Article 28 of the Enterprise
Income Tax Law of the People's Republic of China, the income tax rate applicable to the
Company for the year of 2023 is 15% (2022: 15%).
In 2023, 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”), Guangzhou Fujiang New Energy
Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai)
Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of
25% (2022: 25%).
74
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2023 31 December 2022
Cash at bank 8,472,449,674 7,656,947,735
Deposits from a finance company (a)
(Note 7(6)) 786,214,310 886,245,919
Other cash 541,048,830 -
Interest receivable 75,721,636 61,784,071
9,875,434,450 8,604,977,725
(a) As at 30 June 2023, the Group's bank deposits placed with Jiangling Motor Group Finance
Company Limited(“JMCF”) bear interest at the bank's annual interest rate of 1.35% - 2.25%
(2022: 1.725% - 2.25%) on RMB deposits for the same period.
As at 30 June 2023, Other cash was RMB 541,048,830 (31 December 2022: none), which
was mainly restricted for the issuance of bank short-term borrowings of RMB 500,000,000
and litigation frozen funds of RMB 41,048,830.
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
30 June 2023 31 December 2022
Structural deposits 100,136,000 -
(3) Derivative financial assets
30 June 2023 31 December 2022
Derivative financial assets -
Forward exchange contracts 7,086,761 2,972,698
75
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Notes receivable
30 June 2023 31 December 2022
Trade acceptance notes 174,800 743,071,151
Less: Provision for bad debts (141) (318,421)
174,659 742,752,730
As at 30 June 2023, the Group had no notes receivable from Jiangxi Jiangling Import &
Export Co., Ltd. (31 December 2022: RMB 600,000,000) (Note 7(6)).
(a) As at 30 June 2023, there were no notes receivable pledged.
(b) As at 30 June 2023, the Group's notes receivable presented as endorsed or discounted but
not yet due are as follows.
(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 30 June 2023, The Group measures the provision for bad debts on the basis of
expected credit losses throughout its life and the related amount is RMB141 (31 December
2022: RMB318,421). the amount of provision for bad debts reversed was RMB318,280,The
reason is that the amounts for which bad debts had been accrued were recovered in the
current period.
(5) Accounts receivable
30 June 2023 31 December 2022
Accounts receivable 4,517,096,603 4,367,065,120
Less: Provision for bad debts (124,293,604) (121,523,368)
4,392,802,999 4,245,541,752
76
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(a) The ageing of accounts receivable is analysed as follows:
30 June 2023 31 December 2022
Within 1 year 4,320,998,284 4,183,936,645
1 to 2 years 37,430,780 12,186,785
Over 2 years 158,667,539 170,941,690
4,517,096,603 4,367,065,120
(b) As at 30 June 2023, 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 2,779,801,800 (3,379,001) 61.54%
Company 2 90,614,670 (162,990) 2.01%
Company 3 75,114,809 (158,069) 1.66%
Company 4 73,504,160 (59,300) 1.63%
Company 5 72,230,000 (72,230,000) 1.60%
3,091,265,439 (75,989,360) 68.44%
(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:
30 June 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
110,154,214 (110,154,214)
77
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
110,154,214 (110,154,214)
As at 30 June 2023 and 31 December 2022, The Group assessed the expected credit
losses on the related accounts receivables, the Group considered the receivables cannot
be collected, therefore, full provision was made for those receivables.
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Sales of general automobiles:
30 June 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 3,284,726,202 0.08% (2,656,109)
Overdue for 1 to 30
days 171,755,788 0.08% (138,575)
Overdue for 31 to 60
day 52,527,514 1.32% (691,778)
Overdue for 61 to 90
days 28,856,941 1.97% (569,164)
Overdue over 90 days 173,227,815 2.85% (4,934,044)
3,711,094,260 (8,989,670)
78
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 3,342,241,063 0.04% (1,433,732)
Overdue for 1 to 30
days 191,926,407 0.04% (82,244)
Overdue for 31 to 60
days 60,431,806 1.07% (645,450)
Overdue for 61 to 90
days 28,747,850 2.07% (596,073)
Overdue over 90 days 132,725,554 3.14% (4,170,090)
3,756,072,680 (6,927,589)
Grouping - Sales of new energy automobiles:
30 June 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 8,413,260 30.47% (2,563,287)
31 December 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 8,803,260 31.06% (2,734,591)
79
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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:
30 June 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 662,225,720 0.30% (1,986,677)
Overdue for 1 to 30 days 12,592,533 0.30% (37,778)
Overdue for 31 to 60 days 1,516,525 0.50% (7,583)
Overdue for 61 to 90 days 13,853 0.60% (83)
Overdue over 90 days 11,086,238 5.00% (554,312)
687,434,869 (2,586,433)
31 December 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 467,350,948 0.30% (1,402,053)
Overdue for 1 to 30 days 16,889,558 0.30% (50,669)
Overdue for 31 to 60 days 1,741,552 0.50% (8,708)
Overdue for 61 to 90 days 1,297,746 0.60% (7,786)
Overdue over 90 days 4,755,162 5.00% (237,758)
492,034,966 (1,706,974)
(iii) The amount of provision for bad debts for the period was RMB2,770,236 .
80
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(d) For the six months ended 30 June 2023, The group has no actual write-off accounts
receivable.
(e) As at 30 June 2023 and 31 December 2022, there were no accounts receivable pledged.
(6) Financing receivables
30 June 2023 31 December 2022
Bank acceptance notes 364,021,037 376,662,817
The Group endorses the bank acceptance notes as required by daily fund management,
which also met the criteria for derecognition, 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 30 June 2023, the Group measures the loss provision of
financing receivables based on the lifetime ECL. As at 30 June 2023, the acceptors of the
Groups’ notes receivable were mainly major state-owned banks or large and medium-sized
banks with good reputation and credit ranking. Therefore, the Group expected there was no
significant loss on related bank acceptance notes arising from bank default.
As at 30 June 2023, the Group had no pledged bank acceptance notes receivable
presented in financing receivables.
As at 30 June 2023, the Group's bank acceptance notes had been endorsed or discounted
but not yet matured were RMB1,060,822,483 and were derecognised.
81
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Advances to suppliers
(a) The ageing of advances to suppliers is analysed as below:
30 June 2023 31 December 2022
% of total % of total
Amount balance Amount balance
Within 1 year 294,535,913 100% 277,743,526 100%
(b) As at 30 June 2023, the top five advances to suppliers ranked by remaining balances are
analysed as follows:
Amount % of total balance
Company 1 249,319,087 84.65%
Company 2 18,839,581 6.40%
Company 3 8,444,594 2.87%
Company 4 7,223,907 2.45%
Company 5 4,593,189 1.56%
288,420,358 97.93%
(8) Other receivables
30 June 2023 31 December 2022
Receivable for subsidiary disposal 24,900,000 60,900,000
Import working capital 7,000,000 10,000,000
Disposal of assets 4,604,745 4,604,745
Others 39,165,837 35,893,235
75,670,582 111,397,980
Less: Provision for bad debts (242,050) (334,608)
75,428,532 111,063,372
82
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(a) The ageing of other receivables is analysed as follows:
30 June 2023 31 December 2022
Within 1 year 40,075,543 47,163,619
Over 1 year 35,595,039 64,234,361
75,670,582 111,397,980
(b) Provision for losses and changes in book balance statements:
Stage 1
12-month ECL (grouping) Total
Provision for bad Provision for bad
Book balance debts debts
31 December 2022 111,397,980 (334,608) (334,608)
Net decrease in the current
period (35,727,398) - -
Bad debt provision reversed
in the current period - 92,558 92,558
30 June 2023 75,670,582 (242,050) (242,050)
As at 30 June 2023 and 31 December 2022, 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 30 June 2023 and 31 December 2022, the Group had no other receivables with
provision for bad debts on the individual basis.
(ii) As at 30 June 2023, the Group’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Expected credit
loss ratio within Provision for
Book balance Rationale
the next 12 bad debts
months
Portfolio accrual：
Receivable for
subsidiary disposal 24,900,000 0.30% (74,700) Expected credit losses
Import working capital 7,000,000 0.30% (21,000) Expected credit losses
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 39,165,837 0.34% (132,536) Expected credit losses
75,670,582 (242,050)
83
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(ii) As at 31 December 2022, the Group’s other receivables with provision for bad debts on the grouping
basis were analysed below:
Expected credit
Book loss ratio within Provision for
Rationale
balance the next 12 bad debts
months
Portfolio accrual：
Receivable for
subsidiary disposal 60,900,000 0.30% (182,700) Expected credit losses
Import working Expected credit losses
capital 10,000,000 0.30% (30,000)
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 35,893,235 0.30% (108,094) Expected credit losses
111,397,980 (334,608)
(c) RMB92,558 of provision for bad debts was reversed in the current period.
(d) As at 30 June 2023, the top five other receivables by the balance of the debtors are listed as follows:
Provision
% of total for bad
Nature Balance Ageing balance debts
Receivable for
subsidiary More than one
Company 1 disposal 24,900,000 year 32.91% (74,700)
Within one
Company 2 Prepayment 13,980,264 year 18.48% (41,941)
Import working Within one
Company 3 capital, etc. 7,572,820 year 10.01% (22,718)
Asset disposal More than one
Company 4 payments, etc. 4,614,745 year 6.10% (13,844)
More than one
Company 5 Guarantees 2,645,744 year 3.50% (7,937)
53,713,573 71.00% (161,140)
(9) Inventories
(a) Inventories are summarised by categories as follows:
30 June 2023 31 December 2022
Provision for Provision for
decline in the decline in the
Book value of Carrying Book value of Carrying
balance inventories amount balance inventories amount
Raw materials 1,035,312,166 (70,413,441) 964,898,725 1,077,387,177 (70,415,497) 1,006,971,680
Finished goods 444,235,711 - 444,235,711 695,697,324 - 695,697,324
Work in progress 211,279,723 (808,074) 210,471,649 254,199,491 (857,711) 253,341,780
Low value
consumables 89,797,146 - 89,797,146 93,411,573 (537,572) 92,874,001
Materials in transit 32,132,208 - 32,132,208 42,989,505 - 42,989,505
Materials
consigned for
processing 23,960,731 - 23,960,731 37,166,530 - 37,166,530
1,836,717,685 (71,221,515) 1,765,496,170 2,200,851,600 (71,810,780) 2,129,040,820
84
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Inventories (Cont’d)
(b) Provision for decline in the value of inventories is analysed as follows:
31
December Increase in the
2022 current period Decrease in the current period 30 June 2023
Provision Reversal Write-off
Raw materials (70,415,497) - - 2,056 (70,413,441)
Low value
consumables (537,572) - - 537,572 -
Work in
progress (857,711) - - 49,637 (808,074)
(71,810,780) - - 589,265 (71,221,515)
(c) Provision for decline in the value of inventories is analysed as follows:
Reason for current period write-
Specific basis for determining off of provision for decline in the
net realisable value value of inventories
Based on the estimated selling
price, less the estimated costs
Raw materials/Work to completion, estimated
in progress/Low contract performance costs
value and selling and distribution
consumables expenses and related taxes Sales realised
(10) Other current assets
30 June 2023 31 December 2022
Taxes prepaid, input VAT to be
deducted and to be verified 1,232,518,771 1,362,502,624
(11) Current portion of non-current assets
30 June 2023 31 December 2022
Current portion of long-term
receivables (Note 4(12)) 14,170,026 13,851,634
(12) Long-term receivables
30 June 2023 31 December 2022
Long-term receivables 40,855,427 48,695,467
Less: Unearned financing income (2,556,786) (3,549,703)
Provision for bad debts (122,566) (146,086)
Current portion of long-term
receivables(Note 4(11)) (14,170,026) (13,851,634)
24,006,049 31,148,044
As at 30 June 2023, the Group's long-term receivables were generated by instalment collections
from disposal of fixed assets, which will be recovered from 2023 to 2026.
85
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments
30 June 2023 31 December 2022
Associates
- Shanxi Yunnei Power Co., Ltd. (“The Power Company”) 208,609,672 211,055,689
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 35,979,511 37,427,133
Less: Provision for impairment of long-term equity investments - -
244,589,183 248,482,822
Associates
Movements for the current period
Share of net Ending
Increase/ profit/(loss) balance of
31 December decreace in the under equity Cash dividends Provision for Shareholding Voting rights provision for
2022 current period method declared impairment 30 June 2023 (%) (%) impairment
The Power
Company 211,055,689 - (2,446,017) - - 208,609,672 40% 40% -
Hanon
Systems 37,427,133 - (1,447,622) - - 35,979,511 19.15% 33.33% -
Total 248,482,822 - (3,893,639) - - 244,589,183 -
Related information of equity in associates is set forth in Note 5(2).
86
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets
30 June 2023 31 December 2022
Fixed assets (a) 5,505,890,597 5,446,006,505
Fixed assets pending for disposal (b) 1,923,432 377,864
5,507,814,029 5,446,384,369
(a) Fixed assets
Machinery and Electronic and other
. Buildings equipment Vehicles Moulds equipment Total
Cost
31 December 2022 2,213,414,020 3,153,309,149 475,545,179 3,454,685,625 4,168,066,138 13,465,020,111
Increase in the
current period
Transfer from
construction in
progress 2,868,477 57,047,957 3,398,186 359,017,169 83,918,124 506,249,913
Decrease in the
current period
Disposal or
retirement - (3,161,279) (2,208,865) (11,767,268) (5,555,154) (22,692,566)
Others - (8,903,200) - - - (8,903,200)
30 June 2023 2,216,282,497 3,198,292,627 476,734,500 3,801,935,526 4,246,429,108 13,939,674,258
Accumulated
depreciation
31 December 2022 (419,406,028) (1,788,482,688) (278,327,488) (2,546,577,850) (2,632,387,758) (7,665,181,812)
Increase in the
current period
Provision (28,382,754) (114,036,766) (23,487,027) (98,380,111) (178,631,565) (442,918,223)
Decrease in the
current period
Disposal or
retirement - 2,162,076 1,813,139 9,832,802 5,138,715 18,946,732
Others - 2,093,104 - - - 2,093,104
30 June 2023 (447,788,782) (1,898,264,274) (300,001,376) (2,635,125,159) (2,805,880,608) (8,087,060,199)
Provision for
impairment
31 December 2022 - (12,392,150) (2,571,080) (323,447,442) (15,421,122) (353,831,794)
Increase in the
current period
Provision - - - - - -
Decrease in the
current period
Disposal or
retirement - 6,934,687 - - 173,645 7,108,332
30 June 2023 - (5,457,463) (2,571,080) (323,447,442) (15,247,477) (346,723,462)
Carrying amount
30 June 2023 1,768,493,715 1,294,570,890 174,162,044 843,362,925 1,425,301,023 5,505,890,597
31 December 2022 1,794,007,992 1,352,434,311 194,646,611 584,660,333 1,520,257,258 5,446,006,505
For the six months ended 30 June 2023, depreciation charged to fixed assets amounted to
RMB442,918,223 (the six months ended 30 June 2022: RMB435,117,387), 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 RMB364,837,796, RMB1,135,033,
RMB46,055,032 and RMB30,890,362 (the six months ended 30 June 2022: RMB353,653,366,
RMB1,141,073, RMB47,510,686 and RMB32,812,262), respectively.
The costs of fixed assets transferred from construction in progress amounted to RMB506,249,913
(the six months ended 30 June 2022: RMB364,904,815).
87
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(i) Temporarily idle fixed assets
As at 30 June 2023, the fixed assets with a carrying amount of approximately
RMB459,419,449 (a cost of RMB1,452,686,873) (31 December 2022: a carrying amount of
approximately RMB507,898,988 and a cost of RMB1,521,049,605) were temporarily idle due
to the reorganisation plan of JMCH and the change of product process, etc. The analysis is
as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 409,162,422 (101,151,588) - 308,010,834
Machinery and
equipment 184,323,642 (127,161,324) (5,216,580) 51,945,738
Vehicles 67,133,078 (52,969,611) (2,473,956) 11,689,511
Moulds 453,633,168 (140,338,185) (312,746,465) 548,518
Electronic and
other equipment 338,434,563 (239,439,488) (11,770,227) 87,224,848
1,452,686,873 (661,060,196) (332,207,228) 459,419,449
As at 30 June 2023, the fixed assets with a carrying amount of approximately RMB
440,493,790 (a cost of RMB856,841,465) were temporarily idle due to the reorganisation
transaction of JMCH(Notes 5(1)) , the group will continue to actively promote the restructuring
of JMCH, and there was no further impairment charged during this period.
(ii) Fixed assets with pending certificates of ownership:
Reasons for not obtaining
Carrying amount certificates of ownership
Buildings 9,863,629 Pending procedures
88
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets (Cont’d)
(b) Fixed assets pending for disposal
30 June 2023 31 December 2022
Moulds 1,812,760 -
Electronic and other equipment 85,891 216,104
Machinery and equipment 24,781 161,363
Vehicles - 397
1,923,432 377,864
(15) Construction in progress
30 June 2023 31 December 2022
Provision for Carrying Book Provision for Carrying
Book balance impairment amount balance impairment amount
Projects for
commercial
vehicles 380,830,242 - 380,830,242 537,796,267 - 537,796,267
Projects for
passenger
vehicles 136,493,472 - 136,493,472 87,126,228 - 87,126,228
Projects for
automobiles
factory 24,749,876 - 24,749,876 42,929,882 - 42,929,882
Projects for
automobile
parts factory 11,613,896 - 11,613,896 5,424,980 - 5,424,980
Others 59,203,302 (691,646) 58,511,656 46,026,479 (691,646) 45,334,833
612,890,788 (691,646) 612,199,142 719,303,836 (691,646) 718,612,190
89
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Transfer to
Transfer to intangible Including:
Budget Increase fixed assets assets in the % of project Accumulative Borrowing costs
(In 31 December in the current in the current current investment in Progress of capitalised capitalised in the
Project name RMB0’000) 2022 period period period 30 June 2023 budget project borrowing costs current period Source of fund
Projects for
commercial
vehicles 205,984 537,796,267 249,669,866 (406,635,891) - 380,830,242 85% 85% - - Self-owned funds
Projects for
passenger
vehicles 86,465 87,126,228 90,594,629 (40,877,827) (349,558) 136,493,472 69% 69% - - Self-owned funds
Projects for
automobiles
factory 320,105 42,929,882 26,391,725 (44,571,731) - 24,749,876 74% 74% - - Self-owned funds
Projects for
automobile
parts factory 14,070 5,424,980 6,222,529 (33,613) - 11,613,896 68% 68% - - Self-owned funds
Self-owned funds
Others 46,026,479 28,776,700 (14,130,851) (1,469,026) 59,203,302 292,897 - and borrowings
719,303,836 401,655,449 (506,249,913) (1,818,584) 612,890,788 292,897 -
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
31 December 2022 current period current period 30 June 2023 Reason for provision
Other miscellaneous
and pending The recoverable amount is lower
installation projects (691,646) - - (691,646) than the carrying amount
90
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Right-of-use assets
Buildings
Cost
31 December 2022 349,143,173
Increase in the current period
New lease contracts 16,056,861
30 June 2023 365,200,034
Accumulated depreciation
31 December 2022 (115,520,283)
Increase in the current period
Provision (36,087,214)
30 June 2023 (151,607,497)
Provision for impairment
31 December 2022 -
Increase in the current period -
Decrease in the current period -
30 June 2023 -
Carrying amount
30 June 2023 213,592,537
31 December 2022 233,622,890
For the six months ended 30 June 2023, depreciation of right-of-use assets amounted to
RMB36,087,214 (the six months ended 30 June 2022:RMB35,233,057), of which
RMB30,709,882, RMB2,481,794, RMB2,398,823 and RMB496,715 were included in cost
of sales, selling and distribution expenses, general and administrative expenses and
research and development expenses, respectively (the six months ended 30 June 2022:
RMB31,995,045, RMB409,941, RMB2,398,822 and RMB429,249 were included in cost of
sales, selling and distribution expenses, general and administrative expenses and research
and development expenses, respectively).
91
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Intangible assets/Development expenditures
(a) Intangible assets
After-sales
services
Land use Software use Non-patent management
rights fees technologies mode Others Total
Cost
31 December 2022 628,964,157 334,638,306 1,086,102,005 36,979,184 1,599,516 2,088,283,168
Increase in the
current period
Transfer from
construction in
progress - 1,818,584 - - - 1,818,584
Internal research
and
development - - 452,115,147 - - 452,115,147
Decrease in the
current period
Disposal - - - - - -
30 June 2023 628,964,157 336,456,890 1,538,217,152 36,979,184 1,599,516 2,542,216,899
Accumulated
amortisation
31 December 2022 (139,952,223) (191,182,266) (484,757,266) (36,979,184) (1,599,516) (854,470,455)
Increase in the
current period
Provision (6,636,555) (21,778,719) (104,164,845) - - (132,580,119)
Decrease in the
current period
Disposal - - - - - -
30 June 2023 (146,588,778) (212,960,985) (588,922,111) (36,979,184) (1,599,516) (987,050,574)
Provision for
impairment
31 December 2022 - - (38,806,961) - - (38,806,961)
Increase in the
current period - - - - - -
Provision - - - - - -
30 June 2023 - - (38,806,961) - - (38,806,961)
Carrying amount
30 June 2023 482,375,379 123,495,905 910,488,080 - - 1,516,359,364
31 December 2022 489,011,934 143,456,040 562,537,778 - - 1,195,005,752
For the six months ended 30 June 2023, amortisation charged to intangible assets amounted
to RMB132,580,119 (the six months ended 30 June 2022: RMB90,867,377), of which
RMB24,071, RMB232,310, RMB25,706,378 and RMB106,617,360 were included in cost of
sales, selling and distribution expenses, general and administrative expenses and research
and development expenses (the six months ended 30 June 2022: RMB24,071, RMB223,566,
RMB21,185,313 and RMB69,434,427), respectively.
92
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Intangible assets/Development expenditures (Cont’d)
(b) Development expenditures
The Group’s development expenditures are set out below:
Decrease in the current period
Recognised as
31 December Increase in the Recognised in intangible
2022 current period profit or loss assets 30 June 2023
Automobile
products
development
project 477,233,877 336,076,246 - (452,115,147) 361,194,976
Expenditures on research and development of the Group incurred For the six months ended
30 June 2023 amounted to RMB1,084,212,021 (the six months ended 30 June 2022:
RMB896,948,849) in total, of which RMB748,135,775 (the six months ended 30 June 2022:
RMB666,994,373) was recognised in profit or loss for the current period, RMB336,076,246
(the six months ended 30 June 2022: RMB229,954,476) was recognised in development
expenditures for the current period and RMB104,628,790 (the six months ended 30 June
2022: RMB62,429,052) transferred from development expenditures to intangible assets for
the current period and RMB231,447,456 (the six months ended 30 June 2022:
RMB167,525,424) was included in the ending balance of development expenditures. As at
30 June 2023, the intangible assets developed by the Group accounted for 52% (31
December 2022: 36%) of the carrying amount of intangible assets.
(18) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2023 31 December 2022
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4,655,366,449 1,048,743,969 4,978,763,776 1,120,987,322
Recoverable losses 3,871,185,935 695,258,435 3,634,617,217 571,696,850
Provision for asset
impairment 1,086,654,228 167,628,158 1,092,015,809 168,415,220
Non-patent technology 247,609,905 61,155,677 208,440,047 50,268,260
Employee education
funds unpaid 100,723,793 15,734,960 88,505,949 13,780,833
Deferred income 64,781,931 9,717,290 60,849,643 9,127,446
Retirement benefits plan 54,748,143 13,344,121 55,374,000 13,438,000
Others 178,811,615 30,311,340 174,643,793 29,512,438
10,259,881,999 2,041,893,950 10,293,210,234 1,977,226,369
Including:
Expected to be
recovered within 1
year (inclusive) 1,340,834,385 1,399,402,738
Expected to be
recovered after 1
year 701,059,565 577,823,631
2,041,893,950 1,977,226,369
93
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities (Cont’d)
(b) Deferred tax liabilities before offsetting
30 June 2023 31 December 2022
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed
assets 2,831,667,310 677,481,992 2,823,844,034 652,665,271
Equity transactions
between parent and
subsidiary 408,000,000 61,200,000 408,000,000 61,200,000
Differences between
the fair value of the
identifiable net assets
and carrying amount
arising from business
combinations
involving enterprises
not under common
control 91,858,664 22,964,666 93,221,436 23,305,359
Amortisation of
intangible assets 65,688,691 15,429,499 56,434,371 12,193,000
Others 7,222,761 1,097,014 2,972,698 445,905
3,404,437,426 778,173,171 3,384,472,539 749,809,535
Including:
Expected to be
recovered within 1
year (inclusive) 181,763,213 145,213,640
Expected to be
recovered after 1
year 596,409,958 604,595,895
778,173,171 749,809,535
94
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses for which no deferred tax asset was
recognised are analysed as follows:
30 June 2023 31 December 2022
Deductible temporary differences 1,380,253,868 1,380,025,289
Deductible losses 253,246,661 202,505,688
1,633,500,529 1,582,530,977
(d) Deductible losses for which no deferred tax asset was recognised will be expired in following
years:
30 June 2023 31 December 2022
2024 109,336,011 109,336,011
2025 - -
2026 - -
2027 93,001,631 93,169,677
2028 50,909,019 -
253,246,661 202,505,688
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting are as
follows:
30 June 2023 31 December 2022
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (755,208,505) 1,286,685,445 (726,504,176) 1,250,722,193
Deferred tax liabilities (755,208,505) 22,964,666 (726,504,176) 23,305,359
95
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Provision for asset impairment and losses
Decrease in the current period
31 December Increase in the Write- 30
2022 current period Reversal off/Disposal June 2023
Provision for bad debts of notes receivable 318,421 - (318,280) - 141
Provision for bad debts of accounts
receivable 121,523,368 2,770,236 - - 124,293,604
Including: Provision for bad debts on the
individual basis 110,154,214 - - - 110,154,214
Provision for bad debts on the
grouping basis 11,369,154 2,770,236 - - 14,139,390
Provision for bad debts of other receivables 334,608 - (92,558) - 242,050
Provision for bad debts of long-term
receivables 146,086 - (23,520) - 122,566
Sub-total 122,322,483 2,770,236 (434,358) - 124,658,361
Provision for decline in the value of
inventories 71,810,780 - - (589,265) 71,221,515
Provision for impairment of fixed assets 353,831,794 - - (7,108,332) 346,723,462
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 554,169,593 - - (7,697,597) 546,471,996
676,492,076 2,770,236 (434,358) (7,697,597) 671,130,357
96
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Short-term borrowings
30 June 2023 31 December 2022
Credit loan 800,000,000 1,100,000,000
Guarantees loan 500,000,000 -
1,300,000,000 1,100,000,000
As at 30 June 2023, the above short-term borrowings were all caused by bank short-term
loan, which bear the interest rates ranging from 1.75% to 2.4% (31 December 2022: from
2.35% to 2.75%).
(21) Accounts payable
30 June 2023 31 December 2022
Payable for automobile parts 8,571,286,768 8,783,467,597
Payable for raw and auxiliary
materials 368,244,319 232,510,757
8,939,531,087 9,015,978,354
As at 30 June 2023, accounts payable with ageing over one year amounted to
RMB696,422,634 (31 December 2022: RMB652,758,141), which mainly represented
materials payable for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.
97
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Contract liabilities
30 June 2023 31 December 2022
Advances for automobiles and
automobile parts 137,441,756 94,400,145
Advances for maintenance and
warranty services 173,678,322 175,905,460
311,120,078 270,305,605
Less: Contract liabilities carried
forward to revenue after 1
year (Note 4(33)) (116,447,990) (118,240,580)
194,672,088 152,065,025
(23) Employee benefits payable
30 June 2023 31 December 2022
Short-term employee benefits payable (a) 652,963,489 631,243,123
Defined contribution plans payable (b) 308,786,100 279,041,381
Defined benefit plans payable (c) 2,803,000 2,803,000
Termination benefits payable (d) 2,616,176 2,616,176
967,168,765 915,703,680
(a) Short-term employee benefits
Decrease in
31 December Increase in the the current
2022 current period period 30 June 2023
Wages and salaries,
bonus, allowances
and subsidies 454,910,923 993,647,218 (960,642,203) 487,915,938
Staff welfare 59,167,710 30,632,325 (39,282,026) 50,518,009
Social security
contributions 24,132,419 57,917,512 (73,390,393) 8,659,538
Including: Medical
insurance 17,300,118 56,189,463 (72,701,934) 787,647
Work injury
insurance 6,832,301 1,728,049 (688,459) 7,871,891
Housing funds 467,942 99,791,391 (99,783,266) 476,067
Labour union funds
and employee
education funds 92,564,129 33,421,263 (20,591,455) 105,393,937
Other short-term
employee benefits - 3,361,960 (3,361,960) -
631,243,123 1,218,771,669 (1,197,051,303) 652,963,489
98
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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
2022 period period 30 June 2023
Basic pensions 260,527,342 123,436,987 (96,284,293) 287,680,036
Supplementary
pensions 10,400,000 - - 10,400,000
Unemployment
insurance 8,114,039 3,847,119 (1,255,094) 10,706,064
279,041,381 127,284,106 (97,539,387) 308,786,100
(c) Defined benefit plans
Decrease in
31 December Increase in the the current
2022 current period period 30 June 2023
Post-retirement
benefits payable
(Note 4(32)) 2,803,000 1,436,800 (1,436,800) 2,803,000
(d) Termination benefits payable
30 June 2023 31 December 2022
Early retirement benefits payable
(Note 4(32)) 1,278,000 1,278,000
Other termination benefits (i) 1,338,176 1,338,176
2,616,176 2,616,176
(i) For the six months ended 30 June 2023, other termination benefits paid by the Group for
termination of the employment relationship were RMB10,806,089 (the six months ended 30
June 2022: RMB1,123,392).
(24) Taxes payable
30 June 2023 31 December 2022
Consumption tax payable 74,246,260 87,601,901
Land use tax payable 4,831,953 4,831,953
Unpaid VAT 800,152 24,542,717
Enterprise income tax payable - 55,230,198
Others 14,848,100 21,042,835
94,726,465 193,249,604
99
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Other payables
30 June 2023 31 December 2022
Promotion expenses 2,615,585,173 2,566,403,266
Research and development project
expenses 1,164,009,858 1,139,399,835
Construction payment 410,501,788 534,127,177
Ordinary share dividends payable 374,354,271 6,463,836
Transportation expenses 185,504,240 239,369,691
Advertising and new product
planning fees 150,847,930 160,966,200
Guarantees payable 113,399,487 111,554,518
Technological transformation project
expenses 37,381,884 51,152,889
Consulting fees 27,018,361 22,274,659
Trademark license fee 15,699,857 13,971,949
Others 808,850,295 827,024,491
5,903,153,144 5,672,708,511
As at 30 June 2023, other payables with ageing over one year of RMB2,018,296,943 (31
December 2022: RMB1,696,105,568) 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
30 June 2023 31 December 2022
Current portion of lease liabilities
(Note 4(29)) 74,653,392 72,224,685
Current portion of long-term
borrowings (Note 4(28)) 3,473,175 456,071
78,126,567 72,680,756
(27) Other current liabilities
30 June 2023 31 December 2022
Provisions expected to be settled
within 1 year (Note 4(30)) 367,544,537 374,617,524
Others 17,867,429 12,272,018
385,411,966 386,889,542
100
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Long-term borrowings
30 June 2023 31 December 2022
Guaranteed loans(a) 2,129,290 2,280,355
Credit loans(b) 12,849,944 19,033,773
Less: Current portion of long-term
borrowings (Note 4(26)) (3,473,175) (456,071)
11,506,059 20,858,057
(a) As at 30 June 2023, the above guaranteed loans were long-term borrowings amounting to
USD 294,679 guaranteed 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.
30 June 2023 31 December 2022
Amount in Amount in
Interest foreign RMB foreign RMB
Starting date Maturity date Currency rate (%) currency equivalent currency equivalent
ICBC Nanchang
Ganjiang Sub - 27 February 27 October
branch 1998 2027 USD 1.5% 294,679 2,129,290 327,421 2,280,355
(b) As at 30 June 2023, the principal amount of bank credit borrowings is repayable in
installments during 2024.
For the six months ended 30 June 2023, the interest rate of long-term borrowings was 1.5-
2.5% (the six months ended 30 June 2022: 1.5%).
(29) Lease liabilities
30 June 2023 31 December 2022
Lease liabilities(a) 208,931,917 265,315,036
Less: Current portion of non-
current liabilities (Note
4(26)) (74,653,392) (72,224,685)
134,278,525 193,090,351
(a) As at 30 June 2023, the Group has no leases that are not included in lease liabilities but will
result in potential future cash outflows.
101
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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
2022 period period 30 June 2023
Product warranties (a) 610,033,067 126,130,480 (135,456,636) 600,706,911
Provisions for contract
fulfilment 15,347,046 - (1,917,879) 13,429,167
625,380,113 126,130,480 (137,374,515) 614,136,078
Less: Provisions
expected to be
settled within 1
year (Note 4(27)) (374,617,524) (367,544,537)
250,762,589 246,591,541
(a) 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
31 December Increase in the Decrease in the
2022 current period current period 30 June 2023 Reason
Government Subsidy for
grants 60,849,643 6,400,000 (2,467,712) 64,781,931 projects
(a) Government grants
Decrease in the
current period
31 December Increase in the Recognised in 30 June Asset related/
2022 current period other income 2023 Income related
Research and
development-
related Income
subsidies 49,259,707 6,000,000 (1,542,355) 53,717,352 related
Equipment
purchasing-
related
subsidies 10,335,417 - (805,357) 9,530,060 Asset related
Income
Others 1,254,519 400,000 (120,000) 1,534,519 related
60,849,643 6,400,000 (2,467,712) 64,781,931
102
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Long-term employee benefits payable
30 June 2023 31 December 2022
Supplementary retirement benefits and
early-retirement benefits eligible for
recognition of provisions 53,311,343 55,374,000
Less: Payable within 1 year (4,081,000) (4,081,000)
49,230,343 51,293,000
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
30 June 2023 31 December 2022
Opening balance 55,374,000 59,941,000
Cost of defined benefit plans
recognised in profit or loss for the
current period
- Current service cost - 1,161,000
- Past service cost - -
- Actuarial gains or losses recognised -
immediately 82,000
- Net interest - 1,744,000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial gains - (3,918,000)
Other movements
- Benefits paid (2,062,657) (3,636,000)
Ending balance 53,311,343 55,374,000
103
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 major actuarial assumptions used to determine the present value of defined benefit plan
obligations
30 June 2023 31 December 2022
Discount rate 3.00% 3.00%
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.
(33) Other non-current liabilities
30 June 2023 31 December 2022
Contract liabilities carried forward to
revenue after 1 year (Note 4(22)) 116,447,990 118,240,580
104
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Share capital
Movements for the current period
31 December Shares newly Bonus Transfer from
2022 issued share capital surplus Others Sub-total 30 June 2023
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 30 June 2023, there were 750,840 shares
currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions.
105
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 Bonus Transfer from 31 December
2021 newly issued share capital surplus Others Sub-total 2022
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
106
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Capital surplus
Decrease in
31 December Increase in the the current
2022 current period period 30 June 2023
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
Decrease in
31 December Increase in the the current 31 December
2021 current year year 2022
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
107
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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 balance Other comprehensive income in the income statement for the six months ended 30
sheet June 2023
Amount Less: Transfer-out
Attributable to incurred before of previous other Attributable to
the parent income tax for comprehensive Less: the parent Attributable to
31 December company after the current income in the Income tax company after the subsidiary
2022 tax 30 June 2023 period current period expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (13,484,250) - (13,484,250) - - - - -
Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31
sheet December 2022
Less: Transfer-out
Attributable to Amount of previous other Attributable to
the parent incurred before comprehensive Less: the parent Attributable to
31 December company after 31 December income tax for income in the Income tax company after the subsidiary
2021 tax 2022 the current year current period expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (16,422,750) 2,938,500 (13,484,250) 3,918,000 - (979,500) 2,938,500 -
108
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Special reserve
Increase in Decrease in
31 December the current the current
2022 period period 30 June 2023
Safety fund - 12,877,704 (3,483,654) 9,394,050
(38) Surplus reserve
Increase in Decrease in
31 December the current the current
2022 period period 30 June 2023
Statutory surplus
reserve 431,607,000 - - 431,607,000
Increase in Decrease in
31 December the current the current 31 December
2021 year year 2022
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 period (2022: Nil).
The Company appropriates for 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.
(39) Retained earnings
Six months ended 30 June
2023 2022
Retained earnings at the beginning of the year 7,123,038,093 6,437,603,849
Add: Net profit attributable to shareholders of the
parent company for the current period 729,387,557 452,381,022
Less: Ordinary share dividends payable (a) (366,002,736) (229,614,924)
Retained earnings at the end of the period 7,486,422,914 6,660,369,947
(a) According to the resolution of the meeting of board of directors on 28 March 2023, the board
of directors propose to distribute cash dividends of RMB0.424 per share to all shareholders,
calculated on the basis of 863,214,000 issued shares, for a total of RMB366,002,736，and
the proposal was approved by the shareholders' meeting on 16 June 2023.
109
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Revenue and cost of sales
Six months ended 30 June
2023 2022
Revenue from main operations 15,204,056,146 13,987,205,046
Revenue from other operations 225,316,163 235,554,338
15,429,372,309 14,222,759,384
Six months ended 30 June
2023 2022
Cost of sales from main operations 12,949,555,180 12,109,195,653
Cost of sales from other operations 206,884,269 221,906,101
13,156,439,449 12,331,101,754
(a) Revenue and cost of sales from main operations
Six months ended 30 June
2023 2022
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 13,332,827,137 11,457,724,950 12,865,705,605 11,244,951,198
Sales of
automobile
parts 1,810,283,833 1,433,996,048 1,060,688,066 803,494,300
Automobile
maintenance
services, etc. 60,945,176 57,834,182 60,811,375 60,750,155
15,204,056,146 12,949,555,180 13,987,205,046 12,109,195,653
(b) Revenue and cost of sales from other operations
Six months ended 30 June
2023 2022
Revenue from Cost of sales Revenue from Cost of sales
other from other other from other
operations operations operations operations
Sales of
materials 175,794,567 159,216,134 191,061,332 178,388,921
Others 49,521,596 47,668,135 44,493,006 43,517,180
225,316,163 206,884,269 235,554,338 221,906,101
110
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Revenue and cost of sales (Cont’d)
(c) The Group’s revenue is broken down as follows:
Six months ended 30 June 2023
Automobile
Automobile maintenance Materials and
Automobiles parts services. others Total
Revenue from main operations 13,332,827,137 1,810,283,833 60,945,176 - 15,204,056,146
Including: Recognised at a time
point 13,332,827,137 1,810,283,833 - - 15,143,110,970
Recognised within a
certain period - - 60,945,176 - 60,945,176
Revenue from other
operations (i) - - - 225,316,163 225,316,163
13,332,827,137 1,810,283,833 60,945,176 225,316,163 15,429,372,309
Six months ended 30 June 2022
Automobile
Automobile maintenance Materials and
Automobiles parts services. others Total
Revenue from main operations 12,865,705,605 1,060,688,066 50,406,375 10,405,000 13,987,205,046
Including: Recognised at a time 12,865,705,605 1,060,688,066
point - 10,405,000 13,936,798,671
Recognised within a
certain period - - 50,406,375 - 50,406,375
Revenue from other
operations (i) - - - 235,554,338 235,554,338
12,865,705,605 1,060,688,066 50,406,375 245,959,338 14,222,759,384
(i) The Group's Revenue from other operations includes sales of materials and technical service
provided, etc. Of which, revenue from sales of materials is recognized at a certain point in time,
and revenue from technical service provided is recognized within a certain period
As at 30 June 2023, the amount of revenue corresponding to the performance obligations that
the Group has signed but has not performed or has not yet performed is RMB311,120,078, of
which the Group expects that RMB137,441,756 and RMB57,230,332 will be recognised as
revenue from the sales of automobiles and parts and revenue from the sales of automobile
maintenance services, etc respectively in 2023, RMB116,447,990 will be recognised as revenue
from automobile maintenance services, etc during 2024 to 2028.
(41) Taxes and surcharges
Six months ended 30 June
2023 2022
Consumption tax 373,711,792 287,322,632
City maintenance and construction tax 18,963,390 36,012,229
Educational surcharge 18,884,757 34,946,861
Land use tax 10,305,123 11,981,547
Real estate tax 9,680,483 11,253,617
Stamp duty 8,613,872 8,049,599
Others 204,130 259,959
440,363,547 389,826,444
111
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(42) Selling and distribution expenses
Six months ended 30 June
2023 2022
Promotion expenses 227,249,175 206,589,048
Warranties 126,130,480 195,277,051
Employee benefits 117,185,212 106,274,641
Advertising and new product planning fees 70,042,801 89,719,606
Storage expenses 25,782,982 24,386,326
Packaging material expenses 15,619,732 16,349,345
Depreciation and amortisation expenses 3,849,137 1,774,580
Others 69,990,572 56,287,825
655,850,091 696,658,422
(43) General and administrative expenses
Six months ended 30 June
2023 2022
Employee benefits 305,643,416 262,789,333
Depreciation and amortisation expenses 74,160,233 71,094,821
Trademark license fee 32,535,858 29,184,964
Repair expenses 10,861,777 13,075,304
Consulting expenses 6,821,567 8,748,003
General office expenses 6,348,243 7,077,300
Others 83,743,847 60,087,261
520,114,941 452,056,986
(44) Research and development expenses
Six months ended 30 June
2023 2022
Employee benefits 256,836,007 250,946,160
Depreciation and amortisation expenses 138,004,437 102,675,938
Design fee 118,103,150 107,366,166
Materials expenses 85,363,612 61,555,048
Technology development expenses 75,714,080 96,028,487
Others 74,114,489 48,422,574
748,135,775 666,994,373
112
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Financial expenses
Six months ended 30 June
2023 2022
Interest costs 12,140,837 21,269,478
Add: Interest costs on lease liabilities 5,390,685 6,857,573
Interest expenses 17,531,522 28,127,051
Less: Interest income from cash at bank (108,590,767) (107,825,929)
Other interest income (7,883,210) (8,326,232)
Interest income (116,473,977) (116,152,161)
Exchange gains or losses 4,937,885 7,477,127
Others 698,209 350,632
(93,306,361) (80,197,351)
(46) 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:
Six months ended 30 June
2023 2022
Changes in inventories of finished goods and
work in progress 294,331,743 278,486,607
Consumed raw materials and low value
consumables, etc. 11,856,243,351 10,797,906,093
Employee benefits 1,356,861,864 1,303,098,857
Depreciation of fixed assets 442,918,223 435,117,387
Amortisation of intangible assets 132,580,119 90,867,377
Depreciation of right-of-use assets 36,087,214 35,233,057
Transportation expenses 259,830,610 316,638,202
Promotion expenses 227,249,175 206,589,048
Warranties 126,130,480 195,277,051
Design fee 118,103,150 107,366,166
Technology development expenses 75,714,080 96,028,487
Advertising and new product planning fees 70,042,801 89,719,606
Fixed asset repair and maintenance expenses
(a) 54,578,826 49,914,391
Others 29,868,620 144,569,206
15,080,540,256 14,146,811,535
(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.
113
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Credit impairment losses
Six months ended 30 June
2023 2022
Losses on bad debts of accounts receivable 2,770,236 (14,023,396)
Losses on bad debts of notes receivable (318,280) -
Losses on bad debts of other receivables (92,558) (326,531)
Losses on bad debts of long-term receivables (23,520) (23,520)
2,335,878 (14,373,447)
(48) Other income
Six months ended 30 June Asset related/
2023 2022 Income related
Supporting funds by
government 350,200,000 256,908,600 Income related
Research and development
activities related subsidies 2,192,354 93,204 Income related
Equipment purchasing-related
subsidies 805,357 134,226 Asset related
Other subsidies related with
daily operation 5,446,243 3,923,204 Income related
358,643,954 261,059,234
(49) Investment income
Six months ended 30 June
2023 2022
Losses on discount of financing receivables eligible for
derecognition (12,045,045) (8,585,648)
Losses on long-term equity investments under equity
method (3,893,639) (4,151,633)
Investment loss from forward exchange settlement 2,524,896 (10,728,178)
Investment income from financial assets held for trading - 1,523,836
(13,413,788) (21,941,623)
There is no significant restriction on the remittance of investment income of the Group.
(50) Gains on changes in fair value
Six months ended 30 June
2023 2022
Derivative financial assets -
Gains on forward exchange contracts 4,114,063 5,272,552
Financial assets at fair value through profit or loss -
Structural deposits 136,000 (242,329)
4,250,063 5,030,223
114
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(51) Gains on disposal of assets
Six months ended 30 June Amount recognised in
non-recurring profit or
loss For the six
months ended 30
2023 2022 June 2023
(Losses)/Gains on
disposal of assets (i) (293,630) 395,561,300 (293,630)
(i) The gains generated from disposal of land and above-ground buildings of Qingyunpu
Factory in six months ended 30 June 2022 was RMB394,117,791.
(52) Non-operating income
Six months ended 30 June Amount recognised
in non-recurring profit
or loss For the six
months ended 30
2023 2022 June 2023
Compensation and penalty
income and Others 7,042,517 2,019,528 7,042,517
(53) Non-operating expenses
Six months ended 30 June Amount recognised
in non-recurring profit
or loss For the six
months ended 30
2023 2022 June 2023
Losses on scrapping of
assets 462,383 249,038 462,383
Donations 5,050 5,280 5,050
Others 118,006 252,100 118,006
585,439 506,418 585,439
(54) Income tax expenses
Six months ended 30 June
2023 2022
Current income tax calculated based
on tax law and related regulations (173,134,972) (37,967,101)
Deferred income tax 81,600,830 37,958,166
(91,534,142) (8,935)
115
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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:
Six months ended 30 June
2023 2022
Total profit 355,082,666 421,914,447
Income tax calculated at applicable tax rates (38,901,653) 40,560,200
Effect of change in the tax rates 20,382,054 25,295,893
Additional deductions (90,087,306) (76,963,987)
Non-deductible investment losses 584,046 622,745
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 12,742,388 11,802,338
Tax deduction - (1,487,861)
Costs, expenses and losses not deductible
for tax purposes 3,746,329 161,737
Income tax expenses (91,534,142) (8,935)
(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:
Six months ended 30 June
2023 2022
Consolidated net profit attributable to ordinary
shareholders of the parent company 729,387,557 452,381,022
Weighted average number of ordinary shares
outstanding issued by the Company 863,214,000 863,214,000
Basic earnings per share 0.84 0.52
(b) 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 For the six months ended 30
June 2023 (the six months ended 30 June 2022: Nil), diluted earnings per share equalled to
basic earnings per share.
116
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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
Six months ended 30 June
2023 2022
Government grants 362,576,242 273,306,804
Guarantees 22,162,178 32,972,688
Others 20,552,818 38,745,069
405,291,238 345,024,561
(b) Cash paid relating to other operating activities
Six months ended 30 June
2023 2022
Research and development expenses 468,474,355 425,248,558
Promotion expenses 209,100,546 304,676,243
Warranties 173,887,603 193,444,885
Advertising expenses 79,645,485 83,599,440
Maintenance expenses 43,587,238 34,587,032
Guarantees 33,126,160 38,337,255
Trademark royalties 27,447,499 27,841,258
Consulting Fees 25,157,593 22,095,778
Others 258,618,595 226,474,716
1,319,045,074 1,356,305,165
(c) Cash received relating to other investing activities
Six months ended 30 June
2023 2022
Interest from cash at bank 94,653,202 115,825,204
Other interest 8,581,891 9,641,976
103,235,093 125,467,180
117
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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
Six months ended 30 June
2023 2022
Payments of lease liabilities 9,449,108 6,754,924
Payments of short-term borrowings guarantees 500,000,000 -
509,449,108 6,754,924
(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
Six months ended 30 June
2023 2022
Net profit 446,616,808 421,923,382
Add: Provision for credit impairment (Note 4(47)) 2,335,878 (14,373,447)
Depreciation of fixed assets (Note 4(14)) 442,918,223 435,117,387
Amortisation of intangible assets (Note 4(17)) 132,580,119 90,867,377
Depreciation of right-of-use assets (Note 4(16)) 36,087,214 35,233,057
(Decrease)/Increase in provisions (Note 4(30)) (11,244,035) 20,674,585
Losses/(Gains) on disposal of long-term assets 755,894 (395,312,262)
Financial expenses (94,004,623) (80,553,800)
Investment income (Note 4(49)) 13,413,788 21,941,623
Gains on changes in fair value
(Note 4(50)) (4,250,063) (5,030,223)
Increase in deferred tax assets (35,963,252) (54,648,025)
Decrease in deferred tax liabilities (340,693) (347,556)
Decrease in inventories 308,145,911 47,455,534
Increase in other cash (41,048,830) -
Decrease /(Increase) in operating receivables 694,355,906 (1,823,060,996)
Decrease in operating payables (233,209,908) (2,031,433,111)
Net cash flows generated from/(uesd in) operating
activities 1,657,148,337 (3,331,546,475)
118
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan 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
Six months ended 30 June
2023 2022
Cash and cash equivalents at the end of
the period 9,258,663,984 7,799,258,684
Less: Cash and cash equivalents at the
beginning of the year (8,543,193,654) (9,569,051,314)
Net increase/(decrease) in cash and cash
equivalents 715,470,330 (1,769,792,630)
(b) Cash and cash equivalents
30 June 2023 31 December 2022
Cash at bank available for payment at any
time 8,472,449,674 7,656,947,735
Cash at finance company available for
payment at any time 786,214,310 886,245,919
9,258,663,984 8,543,193,654
(58) Foreign currency monetary items
30 June 2023
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings -
USD 294,679 7.2258 2,129,290
Other payables -
USD 21,845,028 7.2258 157,847,805
EUR 33,288 7.8771 262,213
158,110,018
119
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 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,
JMCS Jiangxi Jiangxi Retail, wholesale and lease of automobiles 100% - Set up by investment
Business combinations involving
JMCH (i) Taiyuan, Shanxi Taiyuan, Shanxi Manufacture and sales of automobiles 100% - enterprises not 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 Sales of automobiles, technical and
(Shanghai)(a) Shanghai Shanghai business information consultation 51% - Set up by investment
(i) According to the resolution of Board of Directors held from 30 April 2021 to 6 May 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 9 August 2021, the listing announcement period has expired
and Volvo Lastvagnar Aktiebolag(“Volvo”) became the intended transferee for the equity transaction. On 23 August 2021, the Company and Volvo reached
an agreement through negotiation and signed the Equity Transaction Agreement on 100% Equity of Jiangling Heavy Duty Vehicle Co., Ltd. The benchmark
price for equity transfer is RMB781,400,000. As at 30 June 2023, Due to the failure of the government approval matters required for this exchange to be
completed within the agreed time, the equity transaction has been terminated, and the company will continue to actively promote the restructuring of JMCH,
so JMCH remains as a subsidiary of the Company and is included in the consolidated financial statements.
120
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 Interests in other entities (Cont’d)
(1) Equity in subsidiaries (Cont’d)
(a) Subsidiaries with significant minority interests
Total profit or loss attributable to minority
Shareholding of shareholders for the six months ended 30 Dividends paid to minority shareholders for the Minority interests as at 30
Subsidiaries minority shareholders June 2023 six months ended 30 June 2023 June 2023
Jiangling Ford (Shanghai) 49%5 (282,770,749) - (236,941,298)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
As at June 30 2023
Non-current
Current assets Non-current assets Total assets Current liabities liabities Total liabities
Jiangling Ford (Shanghai) 226,749,403 246,859,940 473,609,343 950,039,385 7,123,627 957,163,012
The six months ended 30 June 2023
Total comprehensive Cash flows from operating
Revenue Net profit income activities
(
Jiangling Ford (Shanghai) 61,921,303 (577,083,161) (577,083,161) (57,222,688)
121
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 Interests in other entities (Cont’d)
(2) Equity in associates
(a) General information of significant associates
Shareholding (%)
Place of registration Direct Indirect
Associate -
The Power Company Taiyuan, Shanxi 40% -
(b) Summarised financial information for significant associates
30 June 2023 31 December 2022
The Power Company The Power Company
Current assets 166,900,452 194,926,320
Non-current assets 439,254,319 426,146,460
Total assets 606,154,771 621,072,780
Current liabilities 99,476,077 107,387,068
Non-current liabilities 252,684 152,778
Total liabilities 99,728,761 107,539,846
Minority interests 202,570,404 205,413,174
Attributable to shareholders of the parent
company 303,855,606 308,119,760
Share of net assets based on shareholding (i) 202,570,404 205,413,174
Adjustments
- Unrealised profits arising from internal
transactions (14,814,055) (15,210,808)
- Others (ii) 20,853,323 20,853,323
Carrying amount of equity investments in
associates 208,609,672 211,055,689
122
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(2) Equity in associates (Cont’d)
(b) Summarised financial information for significant associates (Cont’d)
The six months ended 30 June
2023 2022
The Power Company The Power Company
Revenue 23,975,774 40,592,217
Net loss (12,707,406) (11,009,189)
Other comprehensive income - -
Total comprehensive loss (12,707,406) (11,009,189)
Dividends received from associates by the
Group - -
(i) The Group calculated the shares of net 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
The six months ended 30 June
2023 2022
Aggregated carrying amount of investments 35,979,511 36,263,930
Aggregate of the following items in proportion
Net loss (i) (1,447,622) (144,710)
Other comprehensive income (i) - -
Total comprehensive loss (1,447,622) (144,710)
(i) Net profit and other comprehensive income have taken into account the fair value of identifiable
assets and liabilities at the time of acquisition of the investments and the impact of adjustments to
uniform accounting policies.
123
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
6 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 period.
During the six months ended 30 June 2023, the operating revenue obtained from a single
customer of the Group accounted for more than 10% of the Group's operating revenue,
amounting to RMB4,775,490,540 (the six months ended 30 June 2022:
RMB2,214,607,113), or 30.95% (the six months ended 30 June 2022: 15.57%) of the
Group's operating revenue.
7 Related parties and related party transactions
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal Nature of Code of
enterprise registration representative business organisation
Investment and
State-owned Nanchang, asset 91360125MA38L
JIC enterprise China Qiu Tiangao management UR91F
Manufacture and
Foreign United William Clay sales of
Ford enterprise States Ford, Jr. automobiles N/A
(b) Registered capital and changes in major shareholders
31 December Increase in the Decrease in the
2022 current period current period 30 June 2023
JIC 1,000,000,000 - - 1,000,000,000
Ford USD 42,000,000 - - USD 42,000,000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
30 June 2023 31 December 2022
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
5(1).
(3) Information of associates
The information of associates is set out in Note 4(13).
124
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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
Jiangxi JMCG Industry Co.,Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi Lingrui Recycling Resources
Development Corporation Wholly-owned Subsidiary of JMCG
Jiangling Material Co.,Ltd. Wholly-owned Subsidiary of JMCG
JMCG Property Management Co. Wholly-owned Subsidiary of JMCG
JMCG Jingma Motors Co., Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi Jiangling Special Purpose Vehicle
Co.,Ltd. Wholly-owned Subsidiary of JMCG
Jiangling Motor Group (Nanchang) Fushan
Energy Co., LTD Wholly-owned Subsidiary of JMCG
JMCF Holding subsidiary of JMCG
Jiangxi Jiangling Chassis Co.,Ltd. Holding subsidiary of JMCG
Nanchang JMCG Shishun Logistics Co., Ltd. Holding subsidiary of JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting
Co.,Ltd. Holding subsidiary of JMCG
Jiangxi Mingfang Auto Parts Industry Co.,
Ltd Holding subsidiary of JMCG
Jiangxi JMCG Specialty Vehicles
Corporation, Ltd. Holding subsidiary of JMCG
Jiangling Motor Electricity Vehicle Co., Ltd. Holding subsidiary of JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co.,
Ltd. Holding subsidiary of JMCG
Ford Motor Research & Engineering
(Nanjing) Co., Ltd. Wholly-owned Subsidiary of Ford
Ford Global Technologies, LLC Wholly-owned Subsidiary of Ford
Ford Thailand Motor Co. Ltd. Wholly-owned Subsidiary of Ford
Ford Motor (China) Co., Ltd. Wholly-owned Subsidiary of Ford
Ford Trading Company, LLC Wholly-owned Subsidiary of Ford
Ford Vietnam Limited Holding Subsidiary of Ford
Auto Alliance (Thailand) Co.,Ltd. Holding Subsidiary of Ford
Ford Otomotiv Sanayi A.S. Holding Subsidiary of Ford
Changan Ford Automobile Co.,Ltd. Joint venture of Ford
JMCG Jiangxi Engineering Construction Co.,
Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Liancheng Auto
Component Co.,Ltd. Subsidiary under indirect control of JMCG
Jiangling Aowei Aotomobile Spare Part
Co.,Ltd. Subsidiary under indirect control of JMCG
Nanchang Lianda Machinery Co.,Ltd. Subsidiary under indirect control of JMCG
Nanchang Gear Forging Co.,Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Boya brake system Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Xinchen Auto Component
Co.,Ltd. Subsidiary under indirect control of JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co.,
Ltd Subsidiary under indirect control of JMCG
Jiangxi JMCG Motorhome Co.,Ltd. Subsidiary under indirect control of JMCG
125
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(4) Information of other related parties (Cont'd)
Relationship with the Group
Subsidiary under indirect control of
Nanchang Hengou Industry Co., Ltd. JMCG
Jiangxi JMCG Specialty Vehicles Sales Subsidiary under indirect control of
Corporation, Ltd. JMCG
Subsidiary under indirect control of
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. JMCG
China Changan Group Tianjin Sales Co.,Ltd Group Subsidiary of JIC's Shareholder
Dali 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
Guizhou Wanfu Vehicle Sales & Service Co.,
Ltd. Group Subsidiary of JIC's Shareholder
Beijing Baiwang Changfu 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
Guizhou Wanjia Automobile Sales and Service
Co. LTD Group Subsidiary of JIC's Shareholder
Jiangxi Jiangling Lear Interior System Co.,Ltd. Joint venture of JMCG
Nanchang Jiangling Hua Xiang 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 ISUZU Co., Ltd. Joint venture of JMCG
Dibao transportation equipment (Nanchang)
Co., Ltd Joint venture of JMCG
Jiangling Motor Holdings Co., Ltd Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd Associate of JMCG
Nanchang Baojiang Steel Processing
Distribution Co.,Ltd. Associate of JMCG
Faurecia Emissions Control Technologies
(Nanchang) Co.,Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co.,Ltd. Associate of JMCG
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. Associate of JMCG
Jiangxi Lingyun Automobile Industry
Technology Co.,Ltd Associate of JMCG
126
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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:
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of automobile parts 612,879,253 333,486,963
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Purchase of automobile parts 573,081,318 382,320,934
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of automobile parts 354,855,203 242,153,680
Nanchang Baojiang Steel Processing Distribution Co., Ltd. Purchase of raw materials 338,563,188 403,267,450
Jiangxi Jiangling Chassis Co., Ltd. Purchase of automobile parts 298,114,886 339,792,672
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Purchase of automobile parts 296,110,915 266,851,205
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of automobile parts 262,668,568 266,044,891
Faurecia Emissions Control Technologies (Nanchang) Co.,
Ltd. Purchase of automobile parts 184,385,384 214,626,269
Nanchang Unistar Electric & Electronics Co., Ltd. Purchase of automobile parts 141,928,577 166,933,947
Nanchang JMCG Liancheng Auto Component Co., Ltd. Purchase of automobile parts 134,266,900 189,110,774
Jiangxi Lingyun Automobile Industry Technology Co.,Ltd Purchase of automobile parts 100,142,856 27,863,903
Nanchang JMCG Shishun Logistics Co., Ltd. Purchase of automobile parts 94,684,781 93,079,273
Hanon Systems Purchase of automobile parts 78,188,938 76,171,447
Ford Purchase of automobile parts 70,921,401 149,947,751
Nanchang Yinlun Heat-exchanger Co., Ltd. Purchase of automobile parts 59,390,004 50,988,587
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Purchase of automobile parts 56,603,368 46,100,961
Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. Purchase of automobile parts 35,681,186 40,574,487
Dibao transportation equipment (Nanchang) Co., Ltd Purchase of automobile parts 26,955,832 37,004,698
127
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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):
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Nanchang Lianda Machinery Co., Ltd. Purchase of automobile parts 19,699,255 22,528,774
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Purchase of automobile parts 19,397,071 20,702,602
Changan Ford Automobile Co., Ltd. Purchase of automobile parts 16,978,981 27,868,811
Jiangxi Lingrui Recycling Resources Development
Corporation Purchase of automobile parts 15,092,027 6,687,750
Auto Alliance (Thailand) Co., Ltd. Purchase of automobile parts 12,302,972 19,826,351
Jiangxi JMCG Boya brake system Co., Ltd Purchase of automobile parts 9,926,780 9,985,963
Jiangling Material Co., Ltd. Purchase of raw materials 9,453,368 14,261,806
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of automobile parts 9,438,144 12,189,849
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. Purchase of automobile parts 6,039,341 6,121,107
Jiangxi ISUZU Engine Co., Ltd. Purchase of automobile parts 5,843,600 14,990,491
Jiangling Aowei Automobile Spare Part Co., Ltd. Purchase of automobile parts 5,647,036 5,589,279
Jiangling Motor Group (Nanchang) Fushan Energy Co.,
LTD Purchase of raw materials 4,674,040 -
Nanchang JMCG Xinchen Auto Component Co., Ltd. Purchase of automobile parts 3,920,960 3,521,896
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Purchase of automobile parts 3,910,008 2,068,147
Ford Otomotiv Sanayi A.S. Purchase of automobile parts 3,709,077 4,123,733
Jiangling Motor Holdings Co., Ltd. Purchase of automobile parts 2,613,788 22,122,273
JMCG Purchase of automobile parts 2,515,904 56,308,360
Ford Motor Co. Thailand Ltd. Purchase of automobile parts 1,056,616 1,980,663
128
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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):
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Shanxi Yunnei Power Group Co., Ltd. Purchase of automobile parts 580,055 12,307,701
Nanchang Gear Forging Co.,Ltd. Purchase of automobile parts 937,224 2,029,108
Nanchang Hengou Industry Co., Ltd. Purchase of automobile parts 326,857 1,781,318
Other related parties Purchase of automobile parts 454,199 1,202,423
3,873,939,861 3,594,518,297
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.
129
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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:
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Nanchang JMCG Shishun Logistics Co., Ltd. Transportation, removal fee, etc. 138,271,507 193,566,015
Trademark management fees,
Ford Global Technologies,LLC technology development 105,294,784 117,920,247
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Design fee, Personnel costs 102,360,446 7,304,257
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Cartage fee, storage fee, etc. 42,263,367 8,736,909
Ford Motor (China) Co., Ltd. Technical services and personnel costs 25,690,619 8,952,383
Ford Technical services and personnel costs 16,941,345 84,615,500
Jiangxi JMCG Industry Co., Ltd. Meals 15,784,854 10,006,592
JMCG Labour fee, rental fee, etc. 9,035,774 353,839
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Agency fee, advertising fee, etc. 7,490,617 8,769,093
JMCG Property Management Co. Property fees, labour costs, etc. 5,496,458 672,170
JMCG Jiangxi Engineering Construction Co., Ltd. Engineering construction 4,494,827 -
Ford Otomotiv Sanayi A.S. Technical services and technical development 4,048,186 7,397,330
Changan Ford Automobile Co., Ltd. Service fee, labour costs, etc. 2,659,578 5,099,373
Magna PT Powertrain (Jiangxi) Co., Ltd. Design fee, experimental costs 1,728,126 4,036,036
China Changan Group Tianjin Sales Co., Ltd. Warranty and promotion 1,184,253 236,108
Chongqing Changan Automobile Co., Ltd. Personnel costs 1,165,327 1,229,023
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Design fee, experimental costs 1,000,000 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. Promotion 474,033 1,143,651
Shanxi Yunnei Power Group Co., Ltd. Consulting - 4,109,652
Jiangling Motor Holdings Co., Ltd. Labour fee, rental fee - 1,165,365
Other related parties 5,051,545 4,475,115
490,435,646 469,788,658
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
130
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 and provision of services:
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Sales of vehicles and accessories, etc. 4,771,391,370 2,209,977,113
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Ltd. Sales of vehicles 96,069,902 282,115,147
JMCG Jingma Motors Co., Ltd. Sales of vehicles and accessories 66,150,936 24,715,398
Jiangxi JMCG Specialty Vehicles Co., Ltd. Sales of vehicles and accessories 36,125,691 44,907,062
Jiangxi Lingrui Recycling Resources Development
Corporation Sales of waste materials, etc. 29,443,114 34,140,746
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 28,322,195 29,103,852
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 27,313,444 22,480,856
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 25,855,442 24,018,999
China Changan Group Tianjin Sales Co., Ltd. Sales of vehicles and accessories 21,666,937 21,636,708
Jiangxi Jiangling Chassis Co., Ltd. Sales of accessories 21,409,740 42,234,955
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Sales of vehicles and accessories 18,605,372 32,393,211
Jiangxi ISUZU Engine Co., Ltd. Sales of accessories 14,870,252 -
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 13,177,316 18,290,574
Beijing Baiwang Changfu Vehicle Sales & Service Co.,
Ltd. Sales of vehicles and accessories 11,354,377 46,988
Beijing Beifang Changfu Vehicle Sales & Service Co.,
Ltd. Sales of vehicles and accessories 10,989,264 8,851,241
Jiangxi Jiangling Lear Interior System Co., Ltd. Sales of accessories 10,950,458 3,840,532
Guizhou Wanjia Automobile Sales and Service Co. LTD Sales of vehicles and accessories 10,915,251 7,915,724
Jiangxi ISUZU Co., Ltd. Sales of accessories 10,806,891 12,091,000
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Sales of accessories 9,072,055 6,383,323
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Sales of vehicles and accessories 6,367,741 42,637,998
131
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 and provision of services(Cont'd):
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Chongqing Anbo Vehicle Sales Co., Ltd. Sales of vehicles and accessories 6,332,539 18,711,495
Nanchang Hengou Industry Co., Ltd. Sales of accessories 4,772,985 4,123,832
Nanchang JMCG Liancheng Auto Component Co., Ltd. Sales of accessories 3,427,362 3,283,574
JMCG Sales of accessories 1,722,665 -
Sales of accessories and waste
Jiangxi JMCG Industry Co., Ltd. materials, etc. 1,388,357 1,649,088
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Sales of accessories 1,324,600 1,657,502
Nanchang JMCG Shishun Logistics Co., Ltd. Sales of vehicles and accessories, etc. 482,009 1,057,296
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Sales of accessories 448,728 2,338,248
Other related parties 2,693,318 2,722,934
5,263,450,311 2,903,325,396
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
132
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(b) Leases
(i) The lease income recognised in the current period with the Group as the lessor:
Six months ended 30 June
Name of the lessee Type of the leased asset 2023 2022
Jiangxi JMCG Motorhome Co.,Ltd. Buildings - 2,945
(ii) Interest expenses on lease liabilities in the current period with the Group as the lessee:
Six months ended 30 June
2023 2022
Name of the lessor Type of the leased asset
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings 162,032 311,702
JMCG Buildings 114,569 169,421
276,601 481,123
133
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(c) Guarantee received
Guarantor Guaranteed amount Starting date Ending date Fully performed or not
JMCF 2,129,290 5 March 2001 30 October 2029 Not fully performed
For the six months ended 30 June 2023, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of
USD 2,282,123. As at 30 June 2023, JMCF provided borrowing guarantee to the bank borrowing of USD 294,679, equivalent to RMB2,129,290 (31
December 2022: USD 327,421, equivalent to RMB2,280,355) for the Group.
(d) Transfer of assets
Six months ended 30 June
Nature of related party
Related parties transactions 2023 2022
Jiangxi Lingrui Recycling Resources Development Corporation. Sales of fixed assets 121,707 -
JMCG Jingma Motors Co., Ltd. Sales of fixed assets - 4,527,773
121,707 4,527,773
The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties.
134
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(e) Purchase of assets
Six months ended 30 June
Related parties Nature of related party
transactions 2023 2022
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Purchase of fixed assets 21,138,257 14,279,803
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of fixed assets 9,584,000 6,988,280
Nanchang JMCG Liancheng Auto Component Co., Ltd. Purchase of fixed assets 4,009,591 5,520,000
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of fixed assets 2,800,000 -
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of fixed assets 535,980 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of fixed assets 456,637 456,637
38,524,465 27,244,720
The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.
135
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(f) Provision of technology sharing and distribution service
Six months ended 30 June
Related parties Nature of related party transactions 2023 2022
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Technical service 19,180,000 13,494,000
Ford Motor (China) Co., Ltd. Distribution and technical service 5,784,640 10,405,000
Ford Vietnam Limited Technical service 5,100,000 7,890,000
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Technical service 4,099,170 4,630,000
Ford Technical service 3,283,725 9,350,000
Jiangxi ISUZU Co., Ltd. Technical service 2,274,000 710,000
Ford Trading Company, LLC Technical service 1,509,518 -
41,231,053 46,479,000
The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties.
136
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(g) Remuneration of key management
Six months ended 30 June
2023 2022
Remuneration of key management 7,593,376 6,880,167
(h) Interest income
Six months ended 30 June
2023 2022
JMCF 7,308,840 8,304,462
Cash at bank of the Group deposited with JMCF was calculated based on the bank annual
interest rate for RMBdeposit of 1.35% to 2.25% over the same period (the six months ended
30 June 2022: 1.725% to 2.25%).
(i) Interest expenses
Six months ended 30 June
2023 2022
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 120,000 -
Nanchang JMCG Shishun Logistics Co., Ltd. 30,000 -
150,000 -
(j) Purchase of CAFC credit and NEV credit
Six months ended 30 June
2023 2022
Jiangling Motor Electricity Vehicle Co., Ltd. - 64,474,060
137
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties
30 June 2023 31 December 2022
Provision for bad Provision for bad
Amount debts Amount debts
Accounts receivable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 2,779,801,800 (3,379,001) 1,809,124,109 (1,495,512)
JMCG Jingma Motors Co., Ltd. 68,786,880 (649,167) 46,820,892 (140,841)
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 38,737,656 (1,097,665) 105,372,893 (963,329)
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 20,717,536 (212,189) 60,082,649 (329,953)
Jiangxi ISUZU Engine Co., Ltd. 13,046,421 (39,139) 254,748 (764)
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 8,811,051 (7,108) - -
Jiangxi ISUZU Co., Ltd. 6,140,141 (23,262) 3,650,860 (10,953)
Jiangxi Jiangling Lear Interior System Co., Ltd. 3,941,537 (11,825) 3,326,672 (9,980)
Jiangxi JMCG Specialty Vehicles Co., Ltd. 3,915,155 (3,657) 9,109,228 (5,477)
Ford Vietnam Limited 2,660,000 (7,980) 3,250,000 (9,750)
JMCG 1,946,611 (5,840) - -
Nanchang JMCG Liancheng Auto Component Co., Ltd. 1,468,881 (4,407) 1,773,035 (5,319)
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 70,776 (212) 1,340,748 (4,022)
Ford Motor Research & Engineering (Nanjing) Co., Ltd. - - 21,973,800 (65,921)
Nanchang JMCG Shishun Logistics Co., Ltd. - - 1,735,793 (744)
Ford Motor (China) Co., Ltd. - - 1,727,858 (5,184)
Other related parties 2,937,769 (10,544) 3,645,113 (10,026)
2,952,982,214 (5,451,996) 2,073,188,398 (3,057,775)
138
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
Receivables from related parties (Cont'd):
30 June 2023 31 December 2022
Provision for bad Provision for bad
Amount debts Amount debts
Other receivables
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 7,572,820 (22,718) 10,231,067 (30,693)
JMCG Jingma Motors Co., Ltd. 4,614,745 (13,844) 4,614,745 (13,844)
Other related parties 237,392 (712) 4,000 (12)
12,424,957 (37,274) 14,849,812 (44,549)
139
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2023 2022
Advances to Nanchang Baojiang Steel
suppliers Processing Distribution Co., Ltd. 249,319,087 233,947,199
Advances for JMCG Jiangxi Engineering Construction
engineering Co., Ltd. 4,899,362 -
Financing Jiangxi Jiangling Motors Imp. & Exp.
receivables Co., Ltd. 116,180,759 50,000,000
Jiangxi JMCG Specialty Vehicles
Co., Ltd. 45,000,000 40,000,000
JMCG Jingma Motors Co., Ltd. 2,951,912 3,000,000
Jiangxi ISUZU Co., Ltd. 2,000,000 600,000
Jiangxi ISUZU Engine Co., Ltd. 1,242,764 -
167,375,435 93,600,000
Jiangxi Jiangling Motors Imp. & Exp.
Notes receivable Co., Ltd. - 600,000,000
Cash at bank JMCF 786,214,310 886,245,919
Short-term
borrowings JMCF - 200,000,000
For the six months ended 30 June 2023, the sales amount settled by JMCF was
RMB6,450,656,589 (the six months ended 30 June 2022: RMB6,037,852,983), of which, the
amount of 0 (the six months ended 30 June 2022: RMB169,310,000) was settled through
the discounted electronic commercial acceptances which interest paid by buyers. As at June
30, 2023, the Group’s commercial acceptances amounting to 0 had discounted but not yet
due (December 31, 2022: 140,330,000) arising under the aforesaid business.
140
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2023 2022
Accounts payable
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. 614,311,824 538,861,064
Jiangxi Jiangling Lear Interior System Co., Ltd. 391,980,977 341,829,498
Magna PT Powertrain (Jiangxi) Co., Ltd. 325,733,071 295,727,129
Jiangxi Jiangling Chassis Co., Ltd. 317,035,789 287,843,287
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 201,759,379 209,344,967
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 200,456,700 280,456,600
Nanchang JMCG Liancheng Auto Component Co., Ltd. 133,349,385 168,502,531
Faurecia Emissions Control Technologies (Nanchang) Co.,
Ltd. 110,339,057 142,695,801
Jiangxi Lingyun Automobile Industry Technology Co.,Ltd 68,981,628 22,971,514
Nanchang JMCG Shishun Logistics Co., Ltd. 64,226,594 51,617,596
Nanchang Unistar Electric & Electronics Co., Ltd. 56,880,348 59,831,745
Hanon Systems 44,860,026 52,260,989
Nanchang Yinlun Heat-exchanger Co., Ltd. 42,414,056 38,139,971
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. 36,769,592 48,052,587
Jiangxi JMCG Specialty Vehicles Co., Ltd. 30,392,467 48,084,822
Ford 28,981,870 63,701,961
Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. 26,805,331 29,858,865
Jiangxi Lingrui Recycling Resources Development
Corporation 15,836,074 15,959,512
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 15,258,340 15,558,679
Dibao transportation equipment (Nanchang) Co., Ltd 14,598,832 29,824,381
Nanchang Lianda Machinery Co., Ltd. 10,192,859 15,928,121
Changan Ford Automobile Co., Ltd. 8,608,931 2,891,546
Jiangling Motor Holdings Co., Ltd. 7,256,682 7,254,527
Jiangxi JMCG Boya brake system Co., Ltd 7,126,823 6,664,021
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. 6,855,450 3,044,022
Jiangling Aowei Automobile Spare Part Co., Ltd. 4,786,639 4,202,862
Jiangxi Mingfang Auto Parts Industry Co., Ltd. 4,086,011 5,244,867
Nanchang JMCG Xinchen Auto Component Co., Ltd. 3,527,402 1,532,286
Jiangxi ISUZU Engine Co., Ltd. 3,313,424 407,986
JMCG 1,223,749 21,226,897
Auto Alliance (Thailand) Co., Ltd. 1,125,355 5,080,988
Jiangling Material Co., Ltd. 31,440 1,444,482
Other related parties 3,277,865 3,877,724
2,802,383,970 2,819,923,828
141
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2023 2022
Other payables
Ford 100,824,929 190,788,653
JMCG Jiangxi Engineering Construction Co., Ltd. 73,015,783 73,068,908
Ford Global Technologies,LLC 55,673,213 57,966,899
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 20,037,625 2,397,259
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 17,178,680 17,583,786
Nanchang Jiangling HuaXiang Auto Components Co.,
Ltd. 15,831,586 15,949,537
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 10,778,439 11,939,889
Ford Motor (China) Co., Ltd. 10,061,027 14,421,987
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 9,884,815 18,560,568
Nanchang JMCG Shishun Logistics Co., Ltd. 7,892,701 7,599,823
JMCG 6,875,062 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. 5,829,157 5,156,445
Jiangxi JMCG Industry Co., Ltd. 3,073,186 4,883,512
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 2,911,036 6,064,606
JMCG Property Management Co. 2,841,667 22,736
Ford Otomotiv Sanayi A.S. 1,606,719 4,749,574
Hanon Systems 1,475,000 1,475,000
Chongqing Changan Automobile Co., Ltd. 1,165,327 2,458,047
Nanchang Unistar Electric & Electronics Co., Ltd. 1,160,959 1,908,865
Nanchang Baojiang Steel Processing Distribution Co.,
Ltd. 1,121,868 1,121,868
Other related parties 4,443,578 5,436,055
353,682,357 443,554,017
Contract liabilities
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 2,741,478 1,902,370
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. 1,469,789 1,056,081
Guizhou Wanjia Automobile Sales and Service Co. LTD 1,198,415 497,354
Chongqing Anbo Vehicle Sales Co., Ltd. 1,099,829 1,112,609
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 3,028 1,143,867
Other related parties 2,108,455 1,372,066
8,620,994 7,084,347
Lease liabilities
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 5,505,150 9,542,357
JMCG 3,591,762 4,732,873
9,096,912 14,275,230
142
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(7) Commitments in relation to related parties
Capital commitments 30 June 2023 31 December 2022
JMCG Jiangxi Engineering
Construction Co., Ltd. 19,956,147 -
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. 15,677,612 20,786,749
Jiangxi Jiangling Special Purpose
Vehicle Co., Ltd. 11,091,570 11,091,570
Nanchang JMCG Liancheng Auto
Component Co., Ltd. 4,678,200 4,678,200
Magna PT Powertrain (Jiangxi) Co.,
Ltd. 791,000 3,955,000
52,194,529 40,511,519
Guarantee of commitments in relation to related parties is set out in Note 7(5)(c).
8 Contingencies
As at 30 June 2023, the Group had no contingencies that needed to be disclosed in the notes
to the financial statements.
9 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 are as follows:
30 June 2023 31 December 2022
Buildings, machinery and equipment 493,570,000 484,700,000
143
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
10 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 continuously 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(3)).
144
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group, were expressed in RMBas at 30 June 2023 and 31 December 2022 as
follows:
30 June 2023
USD EUR Total
Financial assets
denominated in
foreign currency -
Derivative financial
assets 2,469,521 4,617,240 7,086,761
Financial liabilities
denominated in
foreign currency -
Current portion of
long-term
borrowings 473,175 - 473,175
Long-term borrowings 1,656,115 - 1,656,115
Other payables 157,847,805 262,213 158,110,018
159,977,095 262,213 160,239,308
31 December 2022
USD EUR Total
Financial assets
denominated in
foreign currency -
Derivative financial
assets 808,826 2,163,872 2,972,698
Financial liabilities
denominated in
foreign currency -
Current portion of
long-term
borrowings 456,071 - 456,071
Long-term borrowings 1,824,284 - 1,824,284
Other payables 253,263,898 247,094 253,510,992
255,544,253 247,094 255,791,347
145
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 30 June 2023, for the financial assets and liabilities dominated in foreign currencies,
if the RMBhad strengthened/weakened by 10% against the USD while all other variables
had been held constant, the Group’s net profit would have been approximately
RMB13,351,160 (31 December 2022: approximately RMB21,592,894) 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 30 June 2023, the Group’s short-term borrowings of RMB1,300,000,000
(31 December 2022: RMB1,100,000,000) were fixed-rate borrowings, and long-term
borrowings of USD294,679 (31 December 2022: USD327,421) were fixed-rate contracts,
long-term borrowings of RMB12,849,944 (31 December 2022: RMB 19,033,773) were
fixed-rate borrowings, therefore there was no significant cash flow interest rate risk.
As at 30 June 2023 and 31 December 2022, 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 at 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 size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.
146
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
10 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 30 June 2023, the Group had no significant collateral or other credit enhancements held
as a result of the debtor’s mortgage (31 December 2022: 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, 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:
30 June 2023
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,300,000,000 - - - 1,300,000,000
Accounts
payable 8,939,531,087 - - - 8,939,531,087
Other payables 5,903,153,144 - - - 5,903,153,144
Lease liabilities 83,115,309 74,761,330 67,004,028 - 224,880,667
Long-term
borrowings 3,538,308 10,350,289 1,209,554 - 15,098,151
16,229,337,848 85,111,619 68,213,582 - 16,382,663,049
31 December 2022
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,100,000,000 - - - 1,100,000,000
Accounts
payable 9,015,978,354 - - - 9,015,978,354
Other payables 5,672,708,511 - - - 5,672,708,511
Lease liabilities 81,918,426 71,289,585 132,786,495 - 285,994,506
Long-term
borrowings 488,566 19,515,498 1,404,129 - 21,408,193
15,871,093,857 90,805,083 134,190,624 - 16,096,089,564
(i) As at 30 June 2023, the Group did not have lease contracts that had been signed but had not
yet been implemented.
147
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 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 30 June 2023, 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-
Structured deposits - - 100,136,000 100,136,000
Financing receivables -
Notes receivable - - 364,021,037 364,021,037
Derivative financial assets -
Forward foreign exchange
contracts - 7,086,761 - 7,086,761
- 7,086,761 464,157,037 471,243,798
As at 30 June 2023, the group didn’t have liabilities measured at fair value on a recurring
basis.
148
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2022, 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 -
Financing receivables -
Notes receivable - - 376,662,817 376,662,817
Derivative financial assets -
Forward foreign exchange
contracts - 2,972,698 - 2,972,698
- 2,972,698 376,662,817 379,635,515
As at 31 Decmber 2022, the group didn’t have liabilities measured at fair value on a recurring
basis.
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 for the six months ended 30 June 2023.
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, credit spreads, liquidity
premium, EBITDA multiplier and liquidity lack discount.
149
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets are analysed below:
Changes in unrealised
gains or losses included
in profit or loss For the
six months ended 30
June 2023 with respect
to assets still held as at
Gains 30 June 2023 - gains or
31 December recognised in losses on changes in fair
2022 Increase Decrease 30 June 2023 profit or loss value
Financial assets
Financial assets held for
trading -
structural deposits - 100,000,000 100,000,000 - 136,000
Financing
receivables -
Notes receivable 376,662,817 1,428,361,700 (1,441,003,480) 364,021,037 - -
Total assets 376,662,817 1,528,361,700 (1,441,003,480) 464,021,037 - 136,000
150
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets are analysed below (Cont'd):
Changes in unrealised
gains or losses included
in profit or loss for 2022
with respect to assets still
Gains held as at 31 December
31 December 31 December recognised in 2022 - gains or losses on
2021 Increase Decrease 2022 profit or loss changes in fair value
Financing
receivables -
Notes
receivable 201,511,670 3,664,369,012 (3,489,217,865) 376,662,817 - -
Total assets 201,511,670 3,664,369,012 (3,489,217,865) 376,662,817 - -
151
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(2) Assets measured at fair value on a non-recurring basis
As at 30 June 2023 and 31 December 2022, 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.
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 and lease liabilities 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.
12 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 30 June 2023 and 31 December 2022, the Group's equity ratio was as follows:
30 June 2023 31 December 2022
Total borrowings 1,314,979,234 1,121,314,128
Total shareholders’ equity 9,379,654,906 9,240,646,784
Equity ratio 14% 12%
152
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements
(1) Accounts receivable
30 June 2023 31 December 2022
Accounts receivable 3,946,042,284 2,444,372,969
Less: Provision for bad debts (78,007,114) (75,474,642)
3,868,035,170 2,368,898,327
(a) The ageing of accounts receivable is analysed as follows:
30 June 2023 31 December 2022
Within 1 year 3,777,291,347 2,281,564,617
Over 1 year 168,750,937 162,808,352
3,946,042,284 2,444,372,969
(b) As at 30 June 2023, the top five accounts receivable ranked by remaining balances were
analysed as follows:
Amount of provision
Balance for bad debts % of total balance
Company 1 2,755,963,035 (3,307,484) 69.84%
Company 2 689,713,331 - 17.48%
Company 3 111,044,989 - 2.81%
Company 4 90,614,670 (162,990) 2.30%
Company 5 72,230,000 (72,230,000) 1.83%
3,719,566,025 (75,700,474) 94.26%
153
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 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:
30 June 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Receivables from related
parties within the Group
i) 800,758,320 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
872,988,320 (72,230,000)
31 December 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Receivables from related
parties within the Group
i) 347,148,082 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
419,378,082 (72,230,000)
i) As at 30 June 2023, the Company's accounts receivable from subsidiary Jiangling Ford
(Shanghai) and SZFJ was RMB689,713,331 and RMB111,044,989 (31 December 2022：the
Company's accounts receivable from subsidiary Jiangling Ford (Shanghai)、SZFJ and JMCS
was Nil 、 RMB105,318,231 and RMB241,829,851). The Company carried out individual
assessment on receivables from subsidiaries. Based on the judgement of credit risk, there
was no significant credit risk on receivables from subsidiaries that were overdue and
impaired.
ii) As at 30 June 2023, the Company assessed the expected credit losses on the related
accounts receivable and expected that it was probable that such amounts would not be
collected and therefore a full provision for bad debts was made.
154
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 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:
30 June 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,311,859,079 0.08% (1,871,239)
Overdue for 1 to 30 days 137,385,230 0.08% (110,846)
Overdue for 31 to 60 days 2,386,353 1.32% (31,428)
Overdue for 61 to 90 days 4,749,710 1.97% (93,682)
Overdue over 90 days 12,807,539 3.00% (384,125)
2,469,187,911 (2,491,320)
31 December 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 1,574,700,311 0.04% (676,307)
Overdue for 1 to 30 days 20,338,359 0.04% (8,715)
Overdue for 31 to 60 days 7,025,162 1.07% (75,033)
Overdue for 61 to 90 days - - -
Overdue over 90 days 1,046,303 3.37% (35,212)
1,603,110,135 (795,267)
Grouping - Sales of new energy automobiles:
30 June 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4,853,760 20.60% (999,805)
155
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 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 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 4,853,760 20.60% (999,805)
Grouping - Automobile parts:
30 June 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 576,170,043 0.30% (1,728,510)
Overdue for 1 to 30 days 11,094,273 0.30% (33,283)
Overdue for 31 to 60 days 1,404,495 0.50% (7,022)
Overdue for 61 to 90 days - - -
Overdue over 90 days 10,343,482 5.00% (517,174)
599,012,293 (2,285,989)
31 December 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 400,583,282 0.30% (1,201,749)
Overdue for 1 to 30 days 10,972,629 0.30% (32,918)
Overdue for 31 to 60 days 1,307,433 0.50% (6,537)
Overdue for 61 to 90 days 377 0.53% (2)
Overdue over 90 days 4,167,271 5.00% (208,364)
417,030,992 (1,449,570)
156
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(d) In the six months ended 30 June 2023, no accounts receivable had been written off.
(e) As at 30 June 2023 and 31 December 2022, the Company did not have accounts receivable
that were pledged.
(2) Other receivables
30 June 2023 31 December 2022
Receivable for subsidiary disposal 24,900,000 60,900,000
Receivables from JMCH 9,679,410 9,679,410
Import working capital 7,000,000 10,000,000
Disposal of assets 4,604,745 4,604,745
Others 33,056,740 43,987,307
79,240,895 129,171,462
Less: Provision for bad debts (227,896) (315,611)
79,012,999 128,855,851
(a) The ageing of other receivables is analysed as follows:
30 June 2023 31 December 2022
Within 1 year 34,160,021 55,337,691
Over 1 year 45,080,874 73,833,771
79,240,895 129,171,462
(b) Provision for losses and changes in book balance statements
Stage 1 Total
12-month ECL (grouping) 12-month ECL (individual)
Provision
Book Provision for Book Provision for for bad
balance bad debts balance bad debts debts
31 December 2022 105,065,828 (315,611) 24,105,634 - (315,611)
Net decrease in
the current
period (35,504,343) - (14,426,224) - -
Provision for bad
debts reserved
in the current
period - 87,715 - - 87,715
30 June 2023 69,561,485 (227,896) 9,679,410 - (227,896)
157
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 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 30 June 2023 and 31 December 2022, the Company did not have any other receivables
at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 30 June 2023 and 31 December 2022, provision for bad debts of other receivables on
the individual basis was analysed as follows:
30 June 2023
12-month ECL Provision for
Stage 1 Book balance (%) bad debts Reason
Receivables from JMCH 9,679,410 - - i)
9,679,410 -
31 December 2022
12-month ECL Provision for
Stage 1 Book balance (%) bad debts Reason
Receivables from
Jiangling Ford (Shanghai) 14,426,224 - - i)
Receivables from JMCH 9,679,410 - - i)
24,105,634 -
i) As of 30 June 2023, the Company had other receivables from its subsidiaries JMCH,
amounting to RMB9,679,410 (31 December 2022: the Company had other receivables from
its subsidiaries, JMCH and Jiangling Ford (Shanghai), amounting to RMB9,679,410 and
RMB14,426,224 ).The Company assessed the receivables from subsidiaries individually and
based on the judgment of credit risk, the receivables from subsidiaries are not subject to
significant credit risk and are not past due and impaired.
158
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 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)
(ii) As at 30 June 2023 and 31 December 2022, 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:
(ii) As at 30 June 2023, the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Expected credit
Book loss ratio within Provision for
Rationale
balance the next 12 bad debts
months
Portfolio accrual：
Receivable for subsidiary
disposal 24,900,000 0.30% (74,700) Expected credit losses
Import working capital 7,000,000 0.30% (21,000) Expected credit losses
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 33,056,740 0.36% (118,382) Expected credit losses
69,561,485 (227,896)
(iii) As at 31 December 2022, the Company’s other receivables with provision for bad debts on
the grouping basis were analysed below:
Expected credit
Book loss ratio within Provision for
Rationale
balance the next 12 bad debts
months
Portfolio accrual：
Receivable for subsidiary
disposal 60,900,000 0.30% (182,700) Expected credit losses
Import working capital 10,000,000 0.30% (30,000) Expected credit losses
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 29,561,083 0.30% (89,097) Expected credit losses
105,065,828 (315,611)
As at 30 June 2023 and 31 December 2022, the Company had no other receivables at Stage
2 or Stage 3.
159
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(c) For the six months ended 30 June 2023, the provision for bad debts reversed amounted to
RMB87,715.
(d) For the six months ended 30 June 2023, no other receivables were written off.
(e) As at 30 June 2023, the top five other receivables ranked by remaining balances were analysed
as follows:
% of
total Provision for
Nature Balance Ageing balance bad debts
Receivable for
subsidiary
Company 1 disposal 24,900,000 Over 1 year 31.42% (74,700)
Advances
classified as Within 1
Company 2 expenses 13,980,264 year 17.64% (41,941)
Receivable from
Company 3 subsidiary 9,679,410 Over 1 year 12.22% -
Import working Within 1
Company 4 capital, etc. 7,572,820 year 9.56% (22,718)
Assets
Company 5 receivables, etc 4,614,745 Over 1 year 5.82% (13,844)
60,747,239 76.66% (153,203)
160
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments
30 June 2023 31 December 2022
Subsidiaries (a) 2,858,943,493 2,807,943,493
Associates (b) 239,740,173 243,633,812
3,098,683,666 3,051,577,305
Less: Provision for impairment of long-term equity investments for subsidiaries (1,905,543,493) (1,905,543,493)
Provision for impairment of long-term equity investments for associates - -
(1,905,543,493) (1,905,543,493)
1,193,140,173 1,146,033,812
(a) Subsidiaries
Movement in the
current period
Balance of
provision for Cash dividends
31 December Additional impairment at the declared this
2022 investments 30 June 2023 end of the period period 30 June 2023
Gross amount Gross amount Carrying amount
JMCH 2,686,943,493 - 2,686,943,493 (1,905,543,493) - 781,400,000
JMCS 50,000,000 - 50,000,000 - - 50,000,000
SZFJ 10,000,000 - 10,000,000 - - 10,000,000
GZFJ 10,000,000 - 10,000,000 - - 10,000,000
Jiangling Ford
(Shanghai) 51,000,000 51,000,000 102,000,000 - - 102,000,000
2,807,943,493 51,000,000 2,858,943,493 (1,905,543,493) - 953,400,000
161
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS EDNED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(b) Associates
Movements in the current period
Cash
Share of net dividends Ending
Increase in profit/(loss) declared by balance of
31 December the current under equity joint Provision for Shareholding Voting provision for
2022 period method ventures impairment 30 June 2023 (%) rights (%) impairment
The Power
Company 206,206,679 - (2,446,017) - - 203,760,662 40% 40% -
Hanon
Systems 37,427,133 - (1,447,622) - - 35,979,511 19.15% 33.33% -
Total 243,633,812 - (3,893,639) - - 239,740,173 -
162
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
Six months ended 30 June
2023 2022
Revenue from main operations 14,581,518,843 13,153,777,616
Revenue from other operations 867,519,091 235,587,202
15,449,037,934 13,389,364,818
Six months ended 30 June
2023 2022
Cost of sales from main operations 12,661,082,710 11,688,319,077
Cost of sales from other operations 201,223,509 221,157,893
12,862,306,219 11,909,476,970
(a) Revenue and cost of sales from main operations
Six months ended 30 June
2023 2022
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 12,803,883,870 11,227,861,094 12,104,498,465 10,873,199,856
Sales of
automobile
parts 1,777,634,973 1,433,221,616 1,024,913,088 803,494,300
Automobile
maintenance
services - - 24,366,063 11,624,921
14,581,518,843 12,661,082,710 13,153,777,616 11,688,319,077
(b) Revenue and cost of sales from other operations
Six months ended 30 June
2023 2022
Cost of sales Revenue from Cost of sales
Revenue from from other other from other
other operations operations operations operations
Sales of
materials 176,010,823 159,438,315 191,377,317 178,704,400
Others 691,508,268 41,785,194 44,209,885 42,453,493
867,519,091 201,223,509 235,587,202 221,157,893
163
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales (Cont’d)
(c) The breakdown of revenue earned was as follows:
Six months ended 30 June 2023
Automobile
Automobile maintenance Materials
Automobiles parts services and others Total
Revenue from main operations 12,803,883,870 1,777,634,973 - - 14,581,518,843
Including: Recognised at a time
point 12,803,883,870 1,777,634,973 - - 14,581,518,843
Recognised within a
certain period - - - - -
Revenue from other
operations (i) - - - 867,519,091 867,519,091
12,803,883,870 1,777,634,973 - 867,519,091 15,449,037,934
Six months ended 30 June 2022
Automobile
Automobile maintenance Materials
Automobiles parts services and others Total
Revenue from main operations 12,104,498,465 1,024,913,088 24,366,063 - 13,153,777,616
Including: Recognised at a time
point 12,104,498,465 1,024,913,088 - - 13,129,411,553
Recognised within
a certain period - - 24,366,063 - 24,366,063
Revenue from other
operations (i) - - - 235,587,202 235,587,202
12,104,498,465 1,024,913,088 24,366,063 235,587,202 13,389,364,818
(i) The Company's revenue from other operations includes sales of materials and service
provided, etc. Of which, revenue from sales of materials is recognized at a certain point in
time, and revenue from service provided is recognized within a certain period.
As at 30 June 2023, the amount of revenue corresponding to the performance obligations
that the Company had signed but had not performed or had not yet performed was
RMB423,440,567, and the Company expected that RMB423,440,567 will be recognised as
revenue from the sales of automobiles and parts in 2023.
(5) Investment income
Six months ended 30 June
2023 2022
Losses on discount of financing receivables eligible for
derecognition (11,613,214) (6,704,092)
Gains on long-term equity investments under equity method (3,893,639) (4,151,633)
Investment loss from forward exchange settlement 2,524,895 (10,728,178)
(12,981,958) (21,583,903)
There is no significant restriction on the remittance of investment income to the Company.
164
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2023
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
Six months ended 30 June
2023 2022
Government grants recognised in profit or loss
for the current period 358,643,954 261,059,234
Gains or losses on disposal of non-current
assets (755,894) 395,312,262
Fund occupation fee received from non-
financial institutions 6,890,293 7,029,072
Gains or 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 6,774,959 (4,174,119)
Net amount of other non-operating income and
expenses 6,919,342 1,762,148
Reversal of provision for impairment of
receivables tested individually - 110,068
Other items of profit or loss conforming to the
definition of non-recurring profit or loss (9,062,423) -
369,410,231 661,098,665
Effect of income tax (57,720,416) (100,191,259)
Effect of gains or losses on minority interests
(net of tax) (31,469) (91,808)
311,658,346 560,815,598
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 Basic earnings Diluted earnings
assets (%) per share per share
Six months ended 30 June
2023 2022 2023 2022 2023 2022
Net profit attributable to
ordinary shareholders
of the Company 7.59% 5.02% 0.84 0.52 0.84 0.52
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss 4.35% (1.20%) 0.48 (0.13) 0.48 (0.13)
165
