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公司公告

长 安B:2010年第三季度报告全文(英文版)2010-10-29  

						Stock Code: 000625(200625) Abbreviated name of the stock: Changan Automobile(Changan B) Bulletin No.:2010-44

    2010 Third Quarter Report of

    Chongqing Changan Automobile Company Limited

    §1 Important Notes

    1.1 The Board of Directors, the Supervisory Committee and directors, supervisors and senior management of

    Chongqing Changan Automobile Company Limited (hereinafter referred to as “the Company”) warrant that this

    report does not contain any false or misleading statements or omit any material facts and all information set forth

    herein are true, accurate and complete.

    1.2 None of the directors, supervisors, senior management demonstrated uncertainty or disagreement about

    the truthfulness, accuracy, and completeness of this quarterly report.

    1.3 Directors absent from the meeting

    Name of the Director Reasons for the absence Name of the consignee

    Lian Gang On Business

    1.4 The financial statements of this quarter have not been audited.

    1.5 Chairman Mr. xv Liuping, General Manager Mr. Zhang Baolin, Chief Accountants Mr. Cui Yunjiang and

    Mr. Hua ZhanBiao guarantee the truthfulness and completeness of the financial statements of the quarter report.

    1.6 The report shall be presented in both Chinese and English, and should there be any conflicting

    understanding of the text, the Chinese version shall prevail.

    §2 Company Profile

    2.1 Main accounting data and financial indicators

    In RMB Yuan

    2010.9.30 2009.12.31 Increase/decrease (%)

    Gross Assets 27,703,372,370.38 25,241,314,645.21 9.75%

    Owners’ equity attributable to

    shareholders of listed company 10,306,656,939.29 8,895,667,191.69 15.86%

    Share capital 2,325,657,615.00 2,334,022,848.00 -0.36%

    Net asset per share attributable to

    shareholders of listed company 4.43 3.81 16.27%

    Jul-Sep. 2010

    Changes of

    Reporting Period on

    the same Period last

    year (%)

    Jan.-Sep. 2010

    Changes of

    Reporting Period on

    the same Period last

    year (%)

    operation total income 6,227,268,727.00 -0.01% 22,854,723,660.07 28.91%

    Net profit attributable to shareholders

    of listed company 352,591,435.41 15.78% 1,719,156,787.02 107.75%

    Net cash flow from operating activities - - 4,152,627,442.06 31.34%

    Net cash flow from operating activities

    per share - - 1.79 31.82%

    Basic earnings per share 0.15 15.38% 0.74 105.56%

    Diluted earning per share 0.15 15.38% 0.74 105.56%

    Return rate on net assets 3.50% Increase 0.13

    percentage points 17.62% Increase 7.25

    percentage points

    Return on equity after deducting

    non-recurring gains and losses 3.47% Increase 0.16

    percentage points 17.58% Increase7.30

    percentage points

    Items and amounts of extraordinary gains and losses

    Non-recurring gain and loss items Amount2

    Profit and loss arising from the disposal of non-current assets -1,881,356.64

    Government grants 2,547,361.37

    Donation expenditure on public welfare 4,563,744.00

    The other -333,924.88

    Non-recurring profit and loss effect on income tax -1,350,912.29

    Net effect on the non-recurring profit and loss attributable to minority shareholders 251,411.84

    Total 3,796,323.40

    Reconciliation description under the PRC accounting standards and International Financial Reporting Standards

    Sep30,2010 2010 Third

    Accountant difference adjustment list Quarter

    Net assets Net profits

    Workout accountant according to the enterprise accounting rule and syatem under the PRC 10,306,656,939.29 1,719,156,787.02

    Adjustment of according to international accounting rules

    Payment to currency shareholders of A share cash opposite price -71,284,065

    Workout accountant according to the international finance report rules 10,164,088,809.29 1,719,156,787.02

    2.2 Total number of shareholders at the end of the report period and statement on shares held by the

    top ten tradable shareholders

    Unit: share

    Total shareholders number 225,989

    Top ten shareholders of stock without limited sale

    Name of shareholders

    Total number of shares

    without condition of

    limited sale

    Share type

    CHINA CHANGAN AUTOMOBILE COMPANY LIMITED 1,063,087,489 Renminbi ordinary share

    DREYFUS PREMIER INVESTMENT FDS INC.-DREYFUS

    GREATER CHINA FD 26,292,615 Foreign capital stock listed within China

    GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 17,139,211 Foreign capital stock listed within China

    BONJOUR CHINA FUND 2 16,568,176 Foreign capital stock listed within China

    Bank Of China-E Fund Shenzhen Stock Exchange 100

    Exchange-Traded Fund 12,478,394 Renminbi ordinary share

    China Construction Bank- FullGoal Tianbo the theme of

    innovative Securities Investment Fund 12,159,488 Renminbi ordinary share

    JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 9,239,280 Foreign capital stock listed within China

    Tokai Securities - Bank of Communications - Dongfeng 5 Asset

    Management Plan sets 8,810,049 Renminbi ordinary share

    Rongtong Shenzhen Stock Exchange

    100 Index Securities Investment Fund

    7,770,546 Renminbi ordinary share

    TEMPLETON CHINA WORLD FUND INC 7,507,924 Foreign capital stock listed within China

    §3 Important Matters

    3.1 Significant changes in major accounting data, financial highlight and reason of these changes.

    √Applicable □Not Applicable

    NO Balance Sheet Items Sep. 30 2010 Jan. 1th 2010 Changes

    1 Monetary fund 6,592,375,424.26 3,658,380,928.50 80.20%3

    2 Notes receivable 4,630,788,469.83 7,022,333,591.84 -34.06%

    3 Account receivable 540,191,888.67 182,991,180.86 195.20%

    4 Construction in process 1,842,427,364.08 1,316,169,651.80 39.98%

    5 Intangible assets 868,138,434.09 378,030,601.16 129.65%

    6 Notes payable 5,631,947,535.77 2,797,030,532.62 101.35%

    7 Prepayment received 1,224,548,267.61 3,031,972,501.29 -59.61%

    8 Other current liability 1,995,282,518.28 842,516,160.16 136.82%

    9 Expected liabilities 592,604,951.74 416,077,626.26 42.43%

    Income Statement Items Jan-Sep 2010 Jan-Sep 2009 Changes

    10 Business income 22,854,723,660.07 17,728,850,449.62 28.91%

    11 Business cost 18,601,887,186.00 14,156,146,307.52 31.41%

    12 Business tax and surcharge 471,360,783.11 358,338,301.39 31.54%

    13 Sales expense 2,443,426,050.52 1,766,710,651.71 38.30%

    14 Asset impairment loss -9,564,005.91 367,399,118.16 -102.60%

    15 Investment gain 1,438,547,642.61 602,727,242.00 138.67%

    16 Operational profit 1,700,988,014.73 766,971,234.33 121.78%

    17 Gross profit 1,700,682,312.79 771,710,361.17 120.38%

    18 Net profit attributable to the owners of parent

    company 1,719,156,787.02 827,527,441.41 107.75%

    Cash Flow Statement Items Jan-Sep 2010 Jan-Sep 2009 Changes

    19 Cash flow generated by business operation, net 4,152,627,442.06 3,161,639,427.19 31.34%

    20 Net cash flow generated by investment -588,375,720.22 -364,946,303.79 -61.22%

    21 Net cash flow generated by financing -629,846,291.68 -263,822,866.05 -138.74%

    22 Net increase of cash and cash equivalents 2,933,994,495.76 2,532,643,673.83 15.85%

    During reporting period the Company continued to take “Course Leading Plan” as command, tightly centers on target of the

    whole year and takes charge of sale management; the Company also continued to intensify cost-control and product line-up

    optimization. The Company’s production & sale volume had new record, and its scale & profit still kept growth. From January to

    September, 2010, car sale volume reached 1,337,658 units with year-on-year increase of 33.24%. Among them mini passenger car &

    truck sold 625,814 with increase of 22.18% and Changan Brand sedan sold 132,017 units with increase of 82.29%.

    Due to production expansion and sale growth Company’s total assets reached 27.703 billion yuan with increase 9.75% comparing

    with beginning year until the end of the reporting period. Its total debt was 17.319 billion yuan with increase 6.89% in comparison with

    beginning year. Assets debt ratio was 62.51%, 1.68% lower than beginning year. Among them the receivables, the notes payable, other

    current liabilities and expected debt averagely increased by over 30% than beginning year. Because of new C and H Series engine

    project investment, Company’s on-going construction increased by 39.98% than beginning year. Because land-use right and sedan

    project capitalization were switched into intangible assets, intangible assets increase were 129.65% higher than beginning year. During

    reporting period because car credit sale increased, the notes payable & advance collections balance relatively decreased, and amount

    payable balance ratio grew.

    From January to September, 2010 due to car sale growth Company’s income, operation cost, business tax & VAT, and sale cost

    increased comparing with the same period of last year. During reporting period invest profit reached 1.439 billion yuan with

    year-on-year growth of 138.67%, and its Joint venture business grew to contribute in large scale to Company’s profit. Its total Profit

    and net profit attributed to its parent company respectively grew by 120.38% and 107.75% more than last year. Company achieved a

    better business income.

    From January to September, 2010 Company achieved net cash and cash equivalent growth up into 2.934 billion yuan with year-on-year

    increase 15.85%. Among them net cash flow from business was 4.153 billion yuan with year-on-year growth of 31.34%, which

    indicated net cash and cash equivalent acquired during business operation. At the end of reporting period monetary fund was 6.592

    billion yuan and 80.20% higher than beginning year. Net cash flow accrued from Company’s investment was 0.223 billion yuan more

    than last year, which reflected expenditure increase for equity-type investment such as Company’s fixed assets purchase and

    investment payment. Net cash flow accrued from financing was 0.366 billion yuan more than last year mainly because banking loans

    decreased and dividend paying increased.

    3.2 The progress and influence of significant events and the analysis and explanation on resolving proposal

    □Applicable √Not Applicable

    3.2.1Qualified opinion4

    □Applicable √Non-applicable

    3.2.2Particular about fund offers to controlling shareholders and associated parties, and external guarantee that against the regulation.

    □Applicable √Non-applicable

    3.2.3Particular about signing and implementation on significant contracts of ordinary management

    □Applicable √Non-applicable

    3.2.4Others

    √Applicable □Non-applicable

    According to the related proposal to issue additional A shares to raise funds, which was examined and approved on the first time

    temporary General Shareholders’ Meeting on March 8, 2010 meeting, the Company will issue share less than 20% of total capital stock

    before the issuance, to raise not more than RMB 4 billion yuan (including issuance costs) which will be used for Changan car

    production line expansion, technological transformation projects, small-displacement engine upgrading projects, and its own brand

    R&D capacity-building projects. The current application materials have been submitted to the China Securities Regulatory

    Commission.

    3.3 The fulfillment of the commitment made by the Company, shareholders and the actual controller

    √Applicable □Not Applicable

    Commitments Promisee Content of commitments Implementation

    Commitments

    made when

    share merger

    reform

    CHINA CHANGAN

    AUTOMOBILE

    COMPANY LIMITED

    (1) To comply with laws, rules and

    regulations, and perform legal duty of

    commitment.

    (2) Since the non-circulated shares are

    entitled to be circulated, at least they can’t be

    dealt with or transferred within 24 months. At

    the expiration of 24 months, the shareholders

    of non-circulated shares can sell the shares in

    stock exchange in amount of no more than 5%

    of total within 12 months, and no more than

    10% of total within 24 months.

    (3) After the reform of non-tradable

    shares, the Company performs the scheme of

    incentive share awards for the managements

    according to relative government regulation.

    The controlling shareholder of the

    Company, CHINA CHANGAN

    AUTOMOBILE COMPANY

    LIMITED. since the reform program

    being implementation, strictly

    compliance with the share-trading

    reform commitments made by it. The

    Company management has yet launch

    an equity incentive plan. According to

    the "Statement on Changan

    Automobile Co., Ltd. share structure

    reform of the relevant commitments

    and the implementation of that" issued

    by the Company’s controlling

    shareholder, China South Industry

    Automobile Co., Ltd., incentive plan

    will be studied and implement timely

    according to SASAC’s provisions."

    Other

    Commitment

    CHINA CHANGAN

    AUTOMOBILE

    COMPANY LIMITED

    In order to better protect investors’ interest,

    and prevent or finally settle possible

    &potential trade competition, the Company’s

    controlling shareholders-China Changan

    Automobile Company made commitment: 1.

    Jiangxi Changhe Automobile Liability Co.

    and HARBIN Hafei Automobile Liability Co.

    will be merged into Chongqing Changan as

    these two companies in two consecutive years

    annually make profits, occupy sustainable

    development capacity and have improved

    management level. 2. As Changan-PSA J.V is

    established and put into production, China

    Changan proposes to transfer its total shares

    of J.V. to Chongqing Changan.

    Still waiting to fulfill some

    conditions

    3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the period from

    the beginning of the year to the end of the next report period compared with the same period of the last year

    according to prediction, as well as explanations on the reasons

    □Applicable √Not Applicable

    3.5.Other significant events need to be explained

    3.5.1Particular about security investment5

    □Applicable √Non-applicable

    3.5.2 Interviews and visits in the reporting period

    √Applicable □Not Applicable

    Time/date Place Way Visitors Main content involved and material

    provided

    2010.7.9

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey UG Investment Automotive Industry Development,

    Company’s Business

    2010.7.21

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey J.P.Morgan Chase Investment Automotive Industry Development,

    Company’s Business

    2010.7.22

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey GSI Management LLC Automotive Industry Development,

    Company’s Business

    2010.8.23

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey Korea Investment Securities Automotive Industry Development,

    Company’s Business

    2010.9.2

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey Artisan Management LLC Automotive Industry Development,

    Company’s Business

    2010.9.8

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey Tiger Asia Fund Automotive Industry Development,

    Company’s Business

    2010.9.10

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey INVESCO Funds( Hong Kong) Automotive Industry Development,

    Company’s Business

    2010.9.15

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey Kingdon Capital Automotive Industry Development,

    Company’s Business

    2010.9.17

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey People's Insurance Asset

    Management

    Automotive Industry Development,

    Company’s Business

    2010.9.17

    Meeting Room,

    Changan

    Headquarters

    On-Site Survey Soros Fund Management LLC Automotive Industry Development,

    Company’s Business

    3.6 Derivative products investment

    □Applicable √Not Applicable

    3.6.1 Positions of derivatives held by the Company at period-end

    □Applicable √Not Applicable

    §4. Attachment

    4.1 Balance Sheet

    Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. Sep.30 2010 in RMB yuan

    Items ConsoliAdta ttehde end Poaf rteenrmt c ompany ConsoliBdeagteindn ing Poaf rteenrmt c ompany

    Current asset:

    Monetary fund 6,592,375,424.26 4,764,821,175.79 3,658,380,928.50 1,973,263,003.71

    Settlement provision

    Outgoing call loan

    Trading financial assets

    Notes receivable 4,630,788,469.83 3,944,561,330.88 7,022,333,591.84 5,372,680,455.666

    Account receivable 540,191,888.67 875,833,361.43 182,991,180.86 581,698,017.44

    Prepayment 399,361,434.29 289,935,552.76 503,479,133.38 329,644,151.89

    Insurance receivable

    Reinsurance receivable

    Provisions of Reinsurance contracts receivable

    Interest receivable

    Dividend receivable 450,030.00 450,030.00 450,030.00 450,030.00

    Other account receivable 166,514,746.67 193,833,274.86 63,636,373.59 129,910,087.06

    Repurchasing of financial assets

    Inventories 2,630,284,246.47 1,668,582,178.73 2,701,131,615.71 1,438,979,289.27

    Non-current asset due in 1 year

    Other current asset 13,124.00 20,508.87

    Total of current asset 14,959,979,364.19 11,738,016,904.45 14,132,423,362.75 9,826,625,035.03

    Non-current assets

    Loans and payment on other’s behalf disbursed

    Disposable financial asset 176,612,500.00 176,612,500.00 238,205,000.00 238,205,000.00

    Expired investment in possess

    Long-term receivable

    Long-term share equity investment 5,470,789,198.88 6,502,382,130.85 4,787,860,441.63 5,856,668,740.78

    Property investment 63,404,600.65 65,563,825.59

    Fixed assets 3,540,861,198.86 3,040,602,240.75 3,347,742,796.93 2,572,674,562.93

    Construction in process 1,842,427,364.08 1,439,016,717.09 1,316,169,651.80 1,226,791,383.39

    Engineering material 1,570,278.35 795,898.75 838,718.75 838,718.75

    Fixed asset disposal 869,564.07

    Production physical assets

    Gas & petrol

    Intangible assets 868,138,434.09 664,277,881.44 378,030,601.16 250,935,419.01

    R&D expense 239,402,724.23 239,222,831.51 200,849,901.80 199,526,282.03

    Goodwill 9,804,394.00 9,804,394.00

    Long-term prepaid expenses 32,959,445.22 1,125,500.00 33,495,141.27 1,260,560.00

    Differed income tax asset 367,422,867.83 272,862,357.91 322,381,245.46 204,563,633.47

    Other non-current asset 130,000,000.00 130,000,000.00 407,080,000.00 407,080,000.00

    Total of non-current assets 12,743,393,006.19 12,466,898,058.30 11,108,891,282.46 10,958,544,300.36

    Total of assets 27,703,372,370.38 24,204,914,962.75 25,241,314,645.21 20,785,169,335.39

    Current liabilities

    Short-term loans 155,000,000.00 350,270,268.00 50,000,000.00

    Loan from Central Bank

    Deposit received and hold for others

    Call loan received

    Trade off financial liabilities 4,563,744.00

    Notes payable 5,631,947,535.77 5,249,118,177.77 2,797,030,532.62 2,716,438,173.31

    Account payable 5,797,779,121.07 3,865,697,512.80 6,559,948,368.16 3,988,443,774.45

    Prepayment received 1,224,548,267.61 1,071,244,897.70 3,031,972,501.29 1,718,105,586.42

    Selling of repurchased financial assets

    Fees and commissions receivable

    Employees’ wage payable 167,244,114.83 141,696,386.27 177,703,190.75 145,719,031.197

    Tax payable 207,873,414.27 243,633,762.82 246,689,891.89 289,396,852.43

    Interest payable 60,000.00 60,000.00 420,000.00 420,000.00

    Dividend payable 79,742.80 79,742.80

    Other account payable 757,805,059.64 283,904,648.40 683,865,744.49 416,328,996.78

    Reinsurance fee payable

    Insurance contract provision

    Entrusted trading of securities

    Entrusted selling of securities

    Non-current liability due in 1 year 50,000,000.00 50,000,000.00 15,000,000.00

    Other current liability 1,995,282,518.28 943,119,509.97 842,516,160.16 465,475,119.91

    Total of current liability 15,987,619,774.27 11,848,474,895.73 14,710,060,144.16 9,790,327,534.49

    Non-current liabilities

    Long-term borrowings 148,000,000.00 499,000,000.00 300,000,000.00

    Bond payable

    Long-term payable 20,409,725.66 20,409,725.66 30,081,000.00 22,216,000.00

    Special payable 546,895,595.98 532,455,283.98 515,089,405.79 515,089,405.79

    Expected liabilities 592,604,951.74 347,067,842.26 416,077,626.26 222,800,775.48

    Differed income tax liability 23,059,875.00 23,059,875.00 32,298,750.00 32,298,750.00

    Other non-recurring liabilities

    Total of non-current liabilities 1,330,970,148.38 922,992,726.90 1,492,546,782.05 1,092,404,931.27

    Total of liability 17,318,589,922.65 12,771,467,622.63 16,202,606,926.21 10,882,732,465.76

    Owners’ equity (or shareholders’ equity)

    Practical capital collected (or share capital) 2,325,657,615.00 2,325,657,615.00 2,334,022,848.00 2,334,022,848.00

    Capital reserves 1,621,938,539.76 1,712,971,582.86 1,797,604,215.47 1,859,502,088.33

    Less: Shares in stock 26,925,731.38 26,925,731.38

    Special reserves

    Surplus reserves 1,167,011,424.00 1,167,011,424.00 1,167,011,424.00 1,167,011,424.00

    Common risk provision

    Attributable profit 5,192,049,360.53 6,227,806,718.26 3,623,954,435.60 4,568,826,240.68

    Different of foreign currency translation

    Total of owner’s equity belong to the parent company 10,306,656,939.29 11,433,447,340.12 8,895,667,191.69 9,902,436,869.63

    Minor shareholders’ equity 78,125,508.44 143,040,527.31

    Total of owners’ equity 10,384,782,447.73 11,433,447,340.12 9,038,707,719.00 9,902,436,869.63

    Total of liabilities and owners’ equity 27,703,372,370.38 24,204,914,962.75 25,241,314,645.21 20,785,169,335.398

    4.2 Income Statement of the report term

    Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jul-Sep 2010 in RMB yuan

    Items ConsolidaCteudr rent Ptearrmen t company ConsoSlaidmaete pde riodP laarset nyte caor mpany

    I. Total business income 6,227,268,727.00 4,489,063,069.00 6,228,199,734.00 4,132,262,348.00

    Incl. Business income 6,227,268,727.00 4,489,063,069.00 6,228,199,734.00 4,132,262,348.00

    Interest income

    Insurance fee earned

    Fee and commission received

    II. Total business cost 6,336,075,018.00 4,519,905,432.00 6,213,164,441.00 4,060,352,038.00

    Incl. Business cost 5,214,035,160.88 3,797,517,771.26 4,958,210,718.99 3,250,557,390.22

    Interest expense

    Fee and commission paid

    Insurance discharge payment

    Net claim amount paid

    Net insurance policy reserves provided

    Insurance policy dividend paid

    Reinsurance expenses

    Business tax and surcharge 113,383,487.14 78,732,294.10 126,380,381.27 89,828,932.49

    Sales expense 632,447,388.70 337,025,230.78 620,992,998.99 305,465,108.42

    Administrative expense 387,694,728.01 320,687,766.31 350,782,146.43 274,064,404.51

    Financial expenses -19,007,328.47 -21,699,400.00 7,589,588.98 -8,772,453.29

    Asset impairment loss 7,521,581.90 7,641,769.41 149,208,606.14 149,208,655.85

    Plus: Gains from change of fair value (“-“ for loss) 0.00 0.00 857,879.34 0.00

    Investment gain (“-“ for loss) 435,051,903.36 429,722,921.88 265,058,101.59 267,981,370.44

    Incl. Investment gains from affiliates 435,051,903.23 429,722,921.88 265,058,101.67 267,981,370.86

    Gains from currency exchange (“-“ for loss) 0.00 0.00 0.00 0.00

    III. Operational profit (“-“ for loss) 326,245,612.36 398,880,558.88 280,951,273.93 339,891,680.44

    Plus: Non business income 4,160,044.91 1,868,431.23 8,826,318.48 2,222,607.19

    Less: Non-business expenses 1,351,818.80 1,023,799.00 2,807,582.21 953,237.25

    Incl. Loss from disposal of non-current assets 206,994.62 0.00 593,237.26 358,897.26

    IV. Gross profit (“-“ for loss) 329,053,838.47 399,725,191.11 286,970,010.20 341,161,050.38

    Less: Income tax expenses -45,201,145.32 -50,865,312.77 -24,505,028.42 -28,989,213.57

    V. Net profit (“-“ for net loss) 374,254,983.79 450,590,503.88 311,475,038.62 370,150,263.95

    Net profit attributable to the owners of parent company 352,591,435.41 450,590,503.88 304,533,448.01 370,150,263.95

    Minor shareholders’ equity 21,663,548.38 0.00 6,941,590.61 0.00

    VI. Earnings per share:

    (I) Basic earnings per share 0.15 0.19 0.13 0.16

    (II) Diluted earnings per share 0.15 0.19 0.13 0.16

    VII. Other misc. incomes 23,509,715.95 23,509,715.95 -81,890.00 -81,890.34

    VIII. Total of misc. incomes 397,764,699.74 474,100,219.83 311,393,148.62 370,068,373.61

    Total of misc. incomes attributable to the owners of

    the parent company 376,101,151.36 474,100,219.83 304,451,558.01 370,068,373.61

    Total misc gains attributable to the minor shareholders 21,663,548.38 0.00 6,941,590.61 0.009

    4.3 Income Statement From Beginning of year to end of Reporting Period

    Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2010 in RMB yuan

    Items ConsolidaCteudr rent Ptearrmen t company ConsoSlaidmaete pde riodP laarset nyte caor mpany

    I. Total business income 22,854,723,660.07 15,731,567,689.61 17,728,850,449.62 11,591,452,815.70

    Incl. Business income 22,854,723,660.07 15,731,567,689.61 17,728,850,449.62 11,591,452,815.70

    Interest income

    Insurance fee earned

    Fee and commission received

    II. Total business cost 22,596,847,031.95 15,383,629,128.34 17,566,323,639.83 11,336,920,211.28

    Incl. Business cost 18,601,887,186.00 12,837,874,168.89 14,156,146,307.52 9,136,747,686.53

    Interest expense

    Fee and commission paid

    Insurance discharge payment

    Net claim amount paid

    Net insurance policy reserves provided

    Insurance policy dividend paid

    Reinsurance expenses

    Business tax and surcharge 471,360,783.11 338,000,397.14 358,338,301.39 251,630,711.23

    Sales expense 2,443,426,050.52 1,420,746,271.49 1,766,710,651.71 910,713,557.42

    Administrative expense 1,109,310,077.37 864,081,104.23 902,804,533.88 699,817,103.63

    Financial expenses -19,573,059.14 -57,610,895.01 14,924,727.17 -30,343,083.51

    Asset impairment loss -9,564,005.91 -19,461,918.40 367,399,118.16 368,354,235.98

    Plus: Gains from change of fair value (“-“ for loss) 4,563,744.00 1,717,182.54

    Investment gain (“-“ for loss) 1,438,547,642.61 1,421,995,954.79 602,727,242.00 612,974,640.97

    Incl. Investment gains from affiliates 595,872,684.70 1,371,034,966.50 595,773,468.05 1,365,459,985.83

    Gains from currency exchange (“-“ for loss)

    III. Operational profit (“-“ for loss) 1,700,988,014.73 1,769,934,516.06 766,971,234.33 867,507,245.39

    Plus: Non business income 11,744,017.94 5,893,767.97 14,850,754.77 4,807,105.16

    Less: Non-business expenses 12,049,719.88 7,533,538.05 10,111,627.93 7,033,429.79

    Incl. Loss from disposal of non-current assets 3,268,771.70 1,649,462.41 1,289,897.26

    IV. Gross profit (“-“ for loss) 1,700,682,312.79 1,768,294,745.98 771,710,361.17 865,280,920.76

    Less: Income tax expenses -22,550,229.29 -41,747,593.69 -63,766,248.62 -77,566,874.47

    V. Net profit (“-“ for net loss) 1,723,232,542.08 1,810,042,339.67 835,476,609.79 942,847,795.23

    Net profit attributable to the owners of parent company 1,719,156,787.02 1,810,042,339.67 827,527,441.41 942,847,795.23

    Minor shareholders’ equity 4,075,755.06 7,949,168.38

    VI. Earnings per share:

    (I) Basic earnings per share 0.74 0.78 0.36 0.41

    (II) Diluted earnings per share 0.74 0.78 0.36 0.41

    VII. Other misc. incomes -52,353,625.00 -52,353,625.00 995,738.00 995,738.00

    VIII. Total of misc. incomes 1,670,878,917.08 1,757,688,714.67 836,472,347.79 943,843,533.23

    Total of misc. incomes attributable to the owners of

    the parent company 1,666,803,162.02 1,757,688,714.67 828,523,179.41 943,843,533.23

    Total misc gains attributable to the minor shareholders 4,075,755.06 7,949,168.3810

    4.4 Cash Flow Statement from the beginning of year to the end of report term.

    Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2010 in RMB yuan

    Items ConsolidaCteudr rent Ptearrmen t company ConsSoalimdaet epde riodP laarset nyte caor mpany

    I. Net cash flow from business operation

    Cash received from sales of products and providing of

    services 18,349,010,085.11 16,227,943,375.95 11,835,888,394.61 8,507,483,865.88

    Net increase of customer deposits and capital kept for

    brother company

    Net increase of loans from central bank

    Net increase of inter-bank loans from other financial

    bodies

    Cash received against original insurance contract

    Net cash received from reinsurance business

    Net increase of client deposit and investment

    Net increase of trade financial asset disposal

    Cash received as interest, processing fee, and

    commission

    Net increase of inter-bank fund received

    Net increase of repurchasing business

    Tax returned 37,167,169.09 60,772,180.64

    Other cash received from business operation 261,197,369.24 126,563,363.61 185,086,904.82 100,453,602.05

    Sub-total of cash inflow from business activities 18,647,374,623.44 16,354,506,739.56 12,081,747,480.07 8,607,937,467.93

    Cash paid for purchasing of merchandise and services 9,925,862,272.93 9,066,309,136.38 5,953,985,540.69 4,522,870,198.18

    Net increase of client trade and advance

    Net increase of savings in central bank and brother

    company

    Cash paid for original contract claim

    Cash paid for interest, processing fee and commission

    Cash paid for policy dividend

    Cash paid to staffs or paid for staffs 1,007,038,022.06 781,161,178.31 627,752,154.37 472,732,922.79

    Taxes paid 1,441,686,650.24 993,348,543.90 1,141,018,591.97 763,699,839.25

    Other cash paid for business activities 2,120,160,236.15 1,870,206,682.83 1,197,351,765.85 968,596,721.61

    Sub-total of cash outflow from business activities 14,494,747,181.38 12,711,025,541.42 8,920,108,052.88 6,727,899,681.83

    Cash flow generated by business operation, net 4,152,627,442.06 3,643,481,198.14 3,161,639,427.19 1,880,037,786.10

    II. Cash flow generated by investing

    Cash received from investment retrieving 68,954,825.00 61,994,825.00 3,250,000.00 3,250,000.00

    Cash received as investment gains 832,868,390.91 832,155,290.91 555,520,167.70 567,201,172.92

    Net cash retrieved from disposal of fixed assets,

    intangible assets, and other long-term assets 15,996,432.11 10,839,935.84 5,461,633.79 467,681.39

    Net cash received from disposal of subsidiaries or other

    operational units

    Other investment-related cash received 190,000.00

    Sub-total of cash inflow due to investment activities 917,819,648.02 904,990,051.75 564,421,801.49 570,918,854.31

    Cash paid for construction of fixed assets, intangible

    assets and other long-term assets 1,172,605,208.24 972,371,332.33 926,471,735.13 787,853,043.18

    Cash paid as investment 333,590,160.00 282,990,160.00 2,896,370.15 2,896,370.15

    Net increase of loan against pledge

    Net cash received from subsidiaries and other

    operational units

    Other cash paid for investment activities

    Sub-total of cash outflow due to investment activities 1,506,195,368.24 1,255,361,492.33 929,368,105.28 790,749,413.3311

    Net cash flow generated by investment -588,375,720.22 -350,371,440.58 -364,946,303.79 -219,830,559.02

    III. Cash flow generated by financing

    Cash received as investment

    Incl. Cash received as investment from minor

    shareholders

    Cash received as loans 616,774,858.73 1,303,581,154.00 450,000,000.00

    Cash received from bond placing 10,499,048.41

    Other financing-related cash received 2,355,897.72 44,155.76 2,929,865.87 626,297.00

    Subtotal of cash inflow from financing activities 619,130,756.45 44,155.76 1,317,010,068.28 450,626,297.00

    Cash to repay debts 1,065,375,951.00 339,000,000.00 1,454,892,280.61 525,026,516.42

    Cash paid as dividend, profit, or interests 177,499,955.28 162,517,456.59 83,000,870.16 71,111,563.67

    Incl. Dividend and profit paid by subsidiaries to minor

    shareholders

    Other cash paid for financing activities 6,101,141.85 78,284.65 42,939,783.56 27,165,158.68

    Subtotal of cash outflow due to financing activities 1,248,977,048.13 501,595,741.24 1,580,832,934.33 623,303,238.77

    Net cash flow generated by financing -629,846,291.68 -501,551,585.48 -263,822,866.05 -172,676,941.77

    IV. Influence of exchange rate alternation on cash and

    cash equivalents -410,934.40 -226,583.52

    V. Net increase of cash and cash equivalents 2,933,994,495.76 2,791,558,172.08 2,532,643,673.83 1,487,530,285.31

    Plus: Balance of cash and cash equivalents at the

    beginning of term 3,658,380,928.50 1,973,263,003.71 1,661,738,524.68 1,166,965,437.50

    VI. Balance of cash and cash equivalents at the end of

    term 6,592,375,424.26 4,764,821,175.79 4,194,382,198.51 2,654,495,722.81

    4.4 Auditors’Report Auditing Opinion: Unaudited