2014 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 is true, accurate and complete. 1.2 Directors absent from the meeting. Name of the Director Reasons for the absence Name of the consignee Zhang Baolin On Business Lian Gang On Business Dong Yang On Business 1.3 Chairman Mr. Xu Liuping, Chief Accountants Mr. Wang Kun and Mr. Hua ZhanBiao guarantee the truthfulness and completeness of the financial statements of the quarter report. 1.4 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 Financial Highlight and Changes in Shareholders 2.1 Main accounting data and financial indicators In RMB Yuan Increase/decrease 2014.9.30 2013.12.31 (%) Before Adjustment After Adjustment After Adjustment Total asset 65,065,769,454.42 53,364,694,275.91 54,512,107,747.02 19.36% Net asset attributable to the 23,414,786,455.60 18,778,354,427.87 18,863,616,684.11 24.13% shareholders of the listed company Changes of Changes of Reporting Reporting Period on Jul-Sep. 2014 Jan.-Sep. 2014 Period on the same the same Period last Period last year (%) year (%) operation total income 12,544,777,769.25 48.81% 36,751,508,411.20 28.32% Net profit attributable to 1,824,763,530.91 101.43% 5,452,856,529.84 155.23% shareholders of the listed company Net profit attributable to the shareholders of the listed company 1,790,455,561.83 101.35% 5,353,432,332.82 156.36% after deducting of non-recurring gain/loss Net cash flow generated by business -- -- 4,760,340,830.36 84.86% operation Basic earnings per share 0.39 105.26% 1.17 154.35% Diluted earning per share 0.39 105.26% 1.17 154.35% Return rate on net assets 7.89% 2.30% 25.50% 11.78% Items and amounts of extraordinary gains and losses Project Amount Gain/loss of non-current assets (including the write-off of assets impairment reserves) -4,472,323.57 The government subsidies included in the current profits and losses (except government subsidies closely 65,212,358.47 related to corporate business, entitled in fixed quota or quantity) Current net gain/loss generated by the enterprise merger under common control from the year beginning to -43,588,252.13 the merger date 1 Profit and loss from contingency items irrelevant with normal business of the Company profit and loss from fair value changes by holding of transaction financial assets and liabilities, except effective hedging 55,187,888.36 business related to normal business of the Company, and investment income from disposal of transaction financial assets and liabilities as well as financial assets available for sale Other non-business income and expenditures other than the above items 43,167,876.30 Subtract: Influenced amount of income tax 11,779,163.34 Influenced amount of miniority shareholders equity (after tax) 4,304,187.07 Total 99,424,197.02 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 amount of shareholders at the The total amount of shareholders is 106,739, and A shareholder is 91,288 ,B shareholder end of report period is 15,451. Top 10 Shareholder Information Shareholding Share amount of infinite share Share amount Nature of amount at the condition Shareholder Name stake(%) of limited sale shareholders end of report condition share status amount period China Changan Automobile Group state owned legal no pledge or 39.11% 1,823,595,216 373,358,342 Co., Ltd. person freeze National Social Security Fund- domestic non-state no pledge or 1.29% 60,014,324 Portfolio 102 legal person share freeze VALUE PARTNERS CLASSIC foreign legal no pledge or 0.99% 46,372,107 FUND person shares freeze Zhonghui Fortis Investment Co., foreign legal no pledge or 0.97% 45,195,100 Ltd. person shares freeze HTHK-MANULIFE CHINA foreign legal no pledge or 0.87% 40,410,827 VALUE FUND person shares freeze Bank of China-Dacheng Blue chip domestic non-state no pledge or 0.78% 36,303,923 securites investment fund legal person share freeze Bank of Communications-Huaan no pledge or domestic non-state Strategy stock securites investment legal person share 0.77% 35,714,239 freeze fund DRAGON BILLION CHINA foreign legal no pledge or 0.74% 34,302,861 MASTER FUND person shares freeze Industrial and Commercial Bank of no pledge or domestic non-state China-Guangfa Strategy Hybrid 0.72% 33,659,670 freeze legal person share securites investment fund HSBC Global Investment Funds- foreign legal no pledge or 0.72% 33,433,626 Chinese equity person shares freeze Top 10 Shareholder Information of Infinite Sale Condition 股份种类 股东名称 持有无限售条件股份数量 股份种类 数量 China Changan Automobile Group Co., Ltd. 1,450,236,874 RMB Common Stock 1,450,236,874 National Social Security Fund- Portfolio 102 60,014,324 RMB Common Stock 60,014,324 VALUE PARTNERS CLASSIC FUND 46,372,107 domestic foreign share 46,372,107 Zhonghui Fortis Investment Co., Ltd. 45,195,100 domestic foreign share 45,195,100 HTHK-MANULIFE CHINA VALUE FUND 40,410,827 domestic foreign share 40,410,827 Bank of China-Dacheng Blue chip securites 36,303,923 RMB Common Stock 36,303,923 investment fund Bank of Communications-Huaan Strategy stock 35,714,239 RMB Common Stock 35,714,239 2 securites investment fund DRAGON BILLION CHINA MASTER FUND 34,302,861 domestic foreign share 34,302,861 Industrial and Commercial Bank of China-Guangfa 33,659,670 RMB Common Stock 33,659,670 Strategy Hybrid securites investment fund HSBC Global Investment Funds- Chinese equity 33,433,626 domestic foreign share 33,433,626 Among the top 10 shareholders, China Changan Automobile Group Co., Correlation or concerted action among top 10 infinite Ltd., the controlling shareholder, and its wholly owned subsidiary sale tradable share holders, and between top 10 infinite Zhonghui Futong Investment Co., Ltd. belong to the concerted actor sale tradable share holders and top 10 shareholders. regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. §3 Important Matters 3.1 Significant changes in major accounting data, financial highlight and reason of these changes. √Applicable □Not Applicable Balance Sheet Items Sep. 30 2014 Jan. 1th 2013 Changes 1 Cash 8,260,303,395.09 4,535,825,972.55 82.11% 2 Prepayment 1,067,590,133.59 698,944,852.07 52.74% 3 Other receivables 289,812,434.26 211,810,998.81 36.83% 4 Inventory 6,576,496,245.22 4,735,051,726.57 38.89% 5 Short-term loans 298,000,000.00 1,398,000,000.00 -78.68% 6 Notes payable 13,351,489,798.62 9,577,654,675.13 39.40% 7 Accounts payable 11,007,020,162.63 7,963,798,219.72 38.21% 8 Tax payables 570,622,156.04 113,689,600.15 401.91% Non-current liabilities due within - 520,000,000.00 -100.00% 9 one year 10 Other current liabilities 2,498,864,380.98 1,900,629,102.12 31.48% 11 Long-term loans - 1,270,000,000.00 -100.00% 12 Provisions 1,678,076,310.79 1,117,167,286.59 50.21% 13 Retained earnings 13,529,050,750.78 8,543,591,148.40 58.35% Income Statement Items Jan-Sep 2014 Jan-Sep 2013 Changes 14 Business tax and surcharges 1,426,977,822.94 917,782,937.50 55.48% 15 Financial expenses 97,280,409.78 74,092,526.38 31.30% 16 Impairment loss on assets 32,979,029.43 125,275,943.79 -73.67% 17 Investment income 6,000,333,310.21 3,119,847,794.75 92.33% 18 Financial expenses 5,321,486,924.82 2,030,869,553.49 162.03% 19 Operating profit 5,469,873,899.69 2,091,708,156.88 161.50% 20 Net profit 5,438,840,956.15 2,104,538,393.58 158.43% 21 Net profit attributable to owners 5,452,856,529.84 2,136,428,302.39 155.23% Cash Flow Statement Items Jan-Sep 2014 Jan-Sep 2013 Changes Net cash flows from operating 22 4,760,340,830.36 2,575,077,920.05 84.86% activities Net cash flow generated by 23 2,459,307,747.23 -258,503,291.58 1051.36% investment 3 Net increase of cash and cash 24 3,794,871,113.61 1,803,426,811.39 110.43% equivalents Net cash flow generated by 25 -3,420,407,288.46 -512,079,352.34 -567.94% financing In the reporting period, the Company took the initiative to change and innovate, in face of the slowdown of the industrial growth, the sluggish demand during the slack season and the downward trend of the market shares from Chinese-owned brands. The production, and sales growth rate of the Company kept outpacing the industry growth rate, the profit growth maintained higher than the revenue growth, while the income growth was higher than the sales growth. As of the reporting period, the Company had total assets of 65.065 billion Yuan, with an increase of 19.36% over the beginning of the year; the total liabilities of 41.803 billion Yuan, with an increase of 16.81% over the beginning of the year; the asset-liability ratio is 64.25%, decreased by 1.4% than the beginning of the year. Among the items in the balance sheet, the monetary funds highly increased over the beginning of the year mainly due to the increase of the share out bonus from JV Changan Ford Automobile; Taxes payable was higher the beginning of the year mainly due to the sales growth; Notes payable increased significantly over the beginning of the year mainly due to the expansion of the production and sales scale with more self-owned notes issued; The inventory increased due to the larger balance of automobile stock; accounts payable increased significantly over the beginning of the year mainly due to the larger volume of purchase resulting from the expansion of the production and sales scale; Development expenditure increased over the beginning of the year mainly due to the increase capitalization of the research and development projects; The short-term borrowings decreased than the beginning of the year mainly due to the repayment of bank borrowings; Taxes payable was less than the beginning of the year mainly due to the final settlement of the corporate income tax; Payable interest was less than the beginning of the year mainly due to the payment of the interest on corporate bonds; Other receivables increased significantly over the beginning of the year due to the rising of the tax reimbursement for export; the balance of short-term loan decreased due to the repayment of bank loans and the balance of long-term loan and the non-current liabilities within one year decreased due to the repayment of loans; Other current liabilities increased over the beginning of the year mainly due to the prepayment of the transportation costs caused by the increase of the production and sales; Provisions increased over the beginning of the year mainly due to the prepayment of the "three guarantees" expense caused by the increase of the sales; Retained earnings increased over the beginning of the year mainly due to the increase in earnings from joint venture. From January to September, 2014, on account of the expansion of automobile production and sales, the optimization of product structure and a significant increase in profit of the JV Changan Ford Automobile, the business tax and surcharges, the investment income, operating income, operating profit , total profit and net profit attributable to the parent company increased substantially; the business tax and surcharges increased substantially mainly due to the sales growth and the larger proportion of vehicles charged with higher consumption duty; Financial expenses rose significantly due to the increase of the interest income and the decrease of the interest expense; Asset impairment losses decreased significantly mainly due to the provision of impairment loss for the fixed asset and intangible asset last year. From January to September, 2014, the Company has achieved the net increase of 3.794 billion in cash and cash equivalents with an increase of 110.43% on year-on-year basis. The cash flow generated from operating activities was 4.76 billion Yuan, with an increase of 2.185 billion Yuan of inflow Y-o-y, mainly due to the increase of the cash received from car sales Y-o-y; Net cash flow generated from investment activities was 2.459 billion Yuan, with a increase of 2.717 billion Yuan of inflow Y-o-y, mainly due to the increase of the receipt of the cash dividends from Changan Ford; Net cash flow generated from financing activities was -3.42 billion Yuan, with a decrease of 2.908 billion Yuan of inflow, mainly due to more repayment of loans over the same period of last year. 3.2 The progress and influence of significant events and the analysis and explanation on resolving proposal According to the “On transfer of Chongqing Changan Suzuki Automobile Co., Ltd. 1% Shares” through the 21st meeting of the 6th the board of directors. To accelerate the development of Chongqing Changan Suzuki Automobile Co., Ltd.s (“Changan Suzuki”), the company planned to transfer 1% shares of Changan Suzuki in Chongqing United Assets and Equity Exchange by single public trade. As of the date of this report, the company has received 28.4598 million yuan from the transferee Suzuki Corporation , which acquired 1% share of Chongqing Changan Suzuki Automobile, and has completed the registration formalities related to equity transaction. At present the company holds 50% share in Chongqing Changan Suzuki Automobile Co. Details. For details, please refer to the relevant announcements disclosed at CNINF www.cninfo.com.cn. Disclosure Description of the Important Items Interim reports disclosure Web Query Date On transfer of Chongqing Changan Suzuki Jul.1,2014 http://www.cninfo.com.cn/finalpage/2014-07-01/1200020522.PDF Automobile Co., Ltd. 1% Shares The Progress On transfer of Chongqing Changan Oct.15,2012 http://www.cninfo.com.cn/finalpage/2014-10-15/1200299369.PDF Suzuki Automobile Co., Ltd. 1% Shares 3.3 The fulfillment of the commitment made by the Company, shareholders and the actual controller √Applicable □Not Applicable period Commitment Commitment for commitments Commitment content Performance entity time commitm ent 4 As of the end of the reporting period, 1.Will abide by the laws, regulations and CCAG, the Companys shareholder rules, to perform the legal obligations.2. with share selling restrictions, held Held by the original non-tradable shares 373,358,342 shares with selling from obtaining the right to list and trade restrictions, which will be lifted after date, At least 24 months is not publicly the implementation of management traded or transferred, The 24 months after share incentive plan according to the the expiration of the term of, Non-tradable commitments of shareholding shareholders stock exchange through the reform. During the reporting period, The commitments China sale of shares, The sale of shares of the May, 2006 according to CCAGs document “A of stock reform Changan company accounted for the proportion of Supplementary Explanation to the total number of within 12 months and Participating in the Share Split not more than five percent, In 24 months Reform of Chongqing Changan of no more than ten percent,3. Company in Automobile Co., Ltd.”, the Company the shares changed after the completion of confirmed that it will implement the According to the national related management share incentive plan management systems and methods for before June 30, 2016, according to implementing the management equity relevant national regulations and incentive plan measures. In order to avoid and eventually solve the possible competition or potential competitors, Better maintain the interests of investors, the company controlling The Harbin Hf Automobile Industry shareholder China Changan commitment: Other small Group Co at present is still running China In two consecutive years profit of Harbin September, shareholders at a loss, The conditions have not yet Changan Hf Automobile Industry Group Co, With 2010 commitment reached the profitable for two the continuous development ability and consecutive years. management level is improved significantly under the condition of, Proposed that enterprises into the company. If the Changan Peugeot Citroen in 2013 for listing Corporation contributio In 2013, Changan Peugeot Citroen n to investment income lower than -12 for the company contribution to 500.,(ten thousand Yuan), investment income of RMB -5058 Other small ten thousand yuan, Not less than China December, shareholders 2014 investment listing Corporation 2 Years Chinese Changan promised lowest Changan 2012 commitment contributions earn less than -17500 (ten return on investment of -12500 ten thousand Yuan), China Changan thousand yuan. promised to make up the difference in cash. 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 3.5Particular about security investment Holding other listing Corporation ownership situation description √Applicable □Non-applicable Initial Opening Opening Closing Closing Company Company investment equity equity equity equity Equity Accounting title name variety cost (RMB Holdings holding ratio holdings Holdings source Yuan) (share) (%) (share) (%) Southwest Securities Tradable financial 50,000,000 17,750,000 0.76% 17,750,000 0.76% Initial investment Securities Firm assets Hua Xia Commercial 8,149,714 7,276,000 0.11% 8,658,800 0.10% Tradable financial 2The 2011 merger Bank bank assets Financial of Changan bus 5 assets for trade investment Total 58,149,714 -- -- 3.6 Investments in derivatives □Applicable √Not Applicable No Investments in derivatives in the reporting period. 3.7 Interviews and visits in the reporting period Main content involved and Time/date Place Way Visitor type Visitors material provided Gouxin Securities、Wanjia Fund、Baoying Fund、Minsen Automotive Industry Meeting Room, 2014.7.16 On-Site Survey Institution Investments、CITIPCE、 Development and Companys Changan Headquarters Business Dacheng Fund、Xingtai Investments Meeting Room, Automotive Industry 2014,7.17 On-Site Survey Institution CITIC Securities Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.7.24 On-Site Survey Institution Guotai Fund Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.9.5 On-Site Survey Institution Haitong Securities Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.9.15 On-Site Survey Institution China Securitities Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.9.16 On-Site Survey Institution China AMC、Fullgoal Fund Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry CICC、Industrial Securities 2014.9.16 On-Site Survey Institution Development and Companys Changan Headquarters Asset Management Co., Ltd Business Meeting Room, Automotive Industry 2014.9.19 On-Site Survey Institution J Capital Research Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.9.19 On-Site Survey Institution BNP Paribas China Development and Companys Changan Headquarters Business Meeting Room, Automotive Industry 2014.9.22 On-Site Survey Institution Binyuan Capital Development and Companys Changan Headquarters Business J.P. Morgan Asset Automotive Industry Meeting Room, 2014.9.24 On-Site Survey Institution Mannagment、BNP Paribas Development and Companys Changan Headquarters Business Securities 3.8 Effect of new or revised accounting standards on the consolidated financial statements 1、According to the "Notice on the Issuance and Revision of Accounting Standards for Enterprises No.2 - Long Term Equity Investment "(Accounting Standard No.14 [2014]), the company does not have control, joint control and significant influence over the equity investment whose fair value can not be reliably measured, the equity investment should be measured at the cost of available for sale financial assets, not measured as a long-term equity investment, and the retroactive adjustment method should be adopted. Specific adjustments are as follows: RMB:Yuan 6 Affected account and amount (2013.12.31) Adjustment Issue long-term equity available for sale investments financial assets Reclass the equity investment under "long-term equity investment" whose fair value can not be reliably measured and the company does not have control, joint control and significant influence over as "available for sale financial assets" -108,809,274.00 108,809,274.00 2 、 According to the "Notice on the Issuance and Revision of Accounting Standards for Enterprises No.9 – Staff Welfare"(Accounting Standard No.8 [2014]), the Company recalculates the changes of net liabilities or net assets from the benefit plan and includes the changes in other comprehensive income. Based on preliminary estimate, the effect of changes in accounting policy on financial statements at the beginning of the period is not significant, and the effect will be presented in the Annual Report. 3、Since July 1st, 2014, the company has adopted the following revised accounting standards "Accounting Standards for Enterprises No.30- Presentation of Financial Statements", "Enterprise Accounting Standards No. 33-Consolidated Financial Statements" and "Accounting Standards for Enterprises No.37 - Presentation of Financial Instruments", "Enterprise Accounting Standards No.39 - Fair Value Measurement", "Enterprise Accounting Standards No.40 - Joint Venture Arrangement", "Enterprise Accounting Standards No. 41 – Disclosure of Equity in Other Subjects". The change in accounting policy has no significant impact on the company financial status, operating results and cash flow. §4. Attachment 1. Financial statements 1、Consolidated Balance Sheet Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. Sep. 30 2014 in RMB yuan Account Ending Balance Opening Balance Current assets: Cash 8,260,303,395.09 4,535,825,972.55 Deposit Reservation for Balance Funds loaned to other financial institutions Financial assets held for trading Notes receivable 13,754,317,802.36 11,272,212,347.84 Accounts receivable 644,534,799.15 604,638,231.06 Prepayments 1,067,590,133.59 698,944,852.07 Premiums receivable Reinsurance receivable Reinsurance reserve receivable Interest receivable Dividend receivable 3,650,000,000.00 Other receivables 289,812,434.26 211,810,998.81 Reverse repurchase agreements Inventories 6,576,496,245.22 4,735,051,726.57 Classified as assets held for sale Non-current assets within one year Other current assets 2,642,266.86 2,585,737.57 Total current assets 34,245,697,076.53 22,061,069,866.47 7 Non-current assets: Entrustment loans and advances Available-for-sale financial assets 318,467,486.00 366,128,690.00 Held-to-maturity investments Long-term receivables Long-term equity investments 10,540,910,850.05 12,357,672,514.64 Investment properties 9,565,817.80 9,490,627.13 Fixed assets 14,454,547,550.90 14,372,992,511.16 Construction in progress 1,140,742,790.60 1,328,773,757.05 Construction materials 96,690.75 96,690.75 Liquidation of fixed assets 4,618,937.92 8,696.53 Productive biological assets Oil and gas asset Intangible assets 2,425,598,251.59 2,076,220,482.54 Development expenditure 663,506,628.82 685,666,604.48 Goodwill 9,804,394.00 9,804,394.00 Long-term deferred expenses 1,062,401.88 1,410,228.76 Deferred tax assets 1,182,498,596.79 998,435,801.99 Other non-current assets 68,651,980.79 244,336,881.52 Total non-current assets 30,820,072,377.89 32,451,037,880.55 TOTAL ASSETS 65,065,769,454.42 54,512,107,747.02 Current liabilities: Short-term loans 298,000,000.00 1,398,000,000.00 Due to The Peoples Bank of China Placements of deposits from other financial institutions Funds borrowed from other financial institutions Financial liabilities held for trading Notes payable 13,351,489,798.62 9,577,654,675.13 Accounts payable 11,007,020,162.63 7,963,798,219.72 Advances from customers 5,319,735,522.91 4,260,282,749.23 Repurchase agreements Commission payable Payroll payable 745,206,211.83 825,803,375.99 Taxes payable 570,622,156.04 113,689,600.15 Interest payables 47,496,333.33 78,113,712.49 Dividend payables 79,742.80 79,742.80 Other payables 1,395,632,065.99 1,786,024,577.49 Reinsurance payable Reinsurance reserve payable Commission of security trading Commission of underwriting 8 Liabilities classified as held for sale Non-current liabilities within one year 520,000,000.00 Other current liabilities 2,498,864,380.98 1,900,629,102.12 Total current liabilities 35,234,146,375.13 28,424,075,755.12 Non-current liabilities: Long-term loans 1,270,000,000.00 Bonds payable 1,970,205,199.90 1,967,266,759.93 Long-term payables 24,215,822.74 24,587,000.00 Special payables 179,399,960.26 213,630,202.50 Estimated liabilities 1,678,076,310.79 1,117,167,286.59 Deferred tax liabilities 30,330,520.88 41,842,961.06 Other non-current liabilities 2,687,026,225.00 2,728,322,939.90 Total non-current liabilities 6,569,254,039.57 7,362,817,149.98 Total liabilities 41,803,400,414.70 35,786,892,905.10 Owners equity(or shareholders equity) Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00 Capital reserves 3,204,855,037.07 3,611,380,385.08 Less: Treasury shares Special reserves 5,568,725.35 1,670,967.02 Other comprehensive income 196,152,857.87 227,815,099.08 Surplus reserves 1,816,272,976.53 1,816,272,976.53 General reserve Undistributed profit 13,529,050,750.78 8,543,591,148.40 Equity attributable to owners 23,414,786,455.60 18,863,616,684.11 Minority interests -152,417,415.88 -138,401,842.19 Total Owners equity (or Shareholdersequity) 23,262,369,039.72 18,725,214,841.92 TOTAL LIABILITIES AND OWNERS EQUITY( OR 65,065,769,454.42 54,512,107,747.02 SHAREHOLDERS EQUITY) 2、Balance Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. Sep. 30 2014 in RMB yuan Account Ending Balance Opening Balance Current assets: Cash 7,281,528,644.72 3,290,584,684.00 Financial assets held for trading Notes receivable 13,272,445,500.66 10,612,070,124.82 Accounts receivable 2,518,476,426.37 1,393,930,437.57 Prepayments 965,098,949.99 1,006,257,953.21 Interest receivable Dividend receivable 3,650,000,000.00 Other receivables 300,241,330.69 550,745,735.30 9 Inventories 5,789,815,988.28 3,995,173,686.02 Classified as assets held for sale Non-current assets within one year Other current assets 153,040.80 Total current assets 33,777,759,881.51 20,848,762,620.92 Non-current assets: Available-for-sale financial assets 295,894,274.00 285,066,774.00 Held-to-maturity investments Long-term receivables Long-term equity investments 11,883,300,266.88 13,658,387,927.37 Investment properties Fixed assets 12,174,546,787.56 11,991,246,390.25 Construction in progress 996,105,647.53 1,227,441,848.35 Construction materials 96,690.75 96,690.75 Liquidation of fixed assets Productive biological assets Oil and gas asset Intangible assets 2,155,624,599.41 1,854,137,128.97 Development expenditure 611,080,206.10 612,487,126.25 Goodwill Long-term deferred expenses 405,180.00 540,240.00 Deferred tax assets 1,099,003,150.45 897,445,610.07 Other non-current assets 68,651,980.79 244,336,881.52 Total non-current assets 29,284,708,783.47 30,771,186,617.53 TOTAL ASSETS 63,062,468,664.98 51,619,949,238.45 Current liabilities: Short-term loans 200,000,000.00 1,200,000,000.00 Financial liabilities held for trading Notes payable 12,213,713,804.85 7,579,635,615.92 Accounts payable 9,237,229,328.79 6,807,637,925.32 Advances from customers 5,372,595,405.11 4,277,575,537.45 Payroll payable 668,108,095.48 710,331,644.30 Taxes payable 919,180,402.91 478,169,294.18 Interest payable 47,496,333.33 77,672,045.84 Dividend payable Other payables 1,049,485,909.74 1,404,722,740.89 Liabilities classified as held for sale Non-current liabilities within one year 520,000,000.00 Other current liabilities 2,383,006,923.61 1,677,944,402.50 Total current liabilities 32,090,816,203.82 24,733,689,206.40 Non-current liabilities: Long-term loans 1,270,000,000.00 10 Bonds payable 1,970,205,199.90 1,967,266,759.93 Long-term payables 24,215,822.74 24,587,000.00 Special payables 118,758,053.18 129,901,302.92 Estimated liabilities 1,364,639,768.69 761,596,810.09 Deferred tax liabilities 24,630,750.00 23,006,625.00 Other non-current liabilities 2,175,359,734.55 2,218,891,199.06 Total non-current liabilities 5,677,809,329.06 6,395,249,697.00 Total liabilities 37,768,625,532.88 31,128,938,903.40 Owners’ equity (or Shareholders’ equity): Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00 Capital reserves 2,808,618,786.16 3,206,920,753.13 Less: Treasury shares Special reserves 513,566.35 Other comprehensive income Surplus reserves 1,816,272,976.53 1,816,272,976.53 General reserve Retained earnings 15,836,627,157.19 10,645,127,982.64 Foreign currency reserve Equity attributable to owners 25,293,843,132.10 20,491,010,335.05 TOTAL LIABILITIES AND OWNERS EQUITY( OR 63,062,468,664.98 51,619,949,238.45 SHAREHOLDERS EQUITY) 3、Consolidated Income Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jul-Sep 2014 in RMB yuan Account Current Period Prior Period I. Total operating revenue 12,544,777,769.25 8,429,923,121.91 Including: operating revenue 12,544,777,769.25 8,429,923,121.91 Interest income Earned premium Fee and commission income II. Total operating cost 12,669,682,099.02 8,920,111,779.37 Including: Operating cost 10,086,674,608.63 7,053,154,226.90 Interest expenses Fee and commission expenses Surrender value Compensation expenses Net insurance contract reserve Policy dividend expenses Reinsurance expenses Business tax and surcharges 501,882,319.90 276,004,557.85 Operating expenses 1,034,896,118.03 828,022,477.20 11 General and administrative expenses 1,037,674,080.88 741,692,671.52 Financial expenses 8,130,849.57 21,237,845.90 Impairment loss on assets 424,122.01 Add: Profit and loss from fair value changes (- represent loss) Investment income (- represent loss) 1,916,293,063.73 1,315,076,179.17 Including: Investment income from associates and from 1,912,506,547.56 1,311,656,179.17 joint venture Net foreign exchange differences(- means loss) III. Operating profit (- represent loss) 1,791,388,733.96 824,887,521.71 Add: Non-operating income 74,091,651.63 21,888,285.81 Less: Non-operating expenses 10,903,624.47 1,649,638.37 Including: loss on disposal of non-current assets 7,512,147.05 28,023.25 IV. Total profit(- represent loss) 1,854,576,761.12 845,126,169.15 Less: Income tax expense 31,563,620.08 -41,899,845.33 V. Net profit (- represent net loss) 1,823,013,141.04 887,026,014.48 Including: The net profit of the combined parties before business combination Net profit attributable to owners 1,824,763,530.91 905,924,934.73 Minority interests -1,750,389.87 -18,898,920.25 VI. Earnings per share: -- -- I) Basic earnings per share 0.39 0.19 II) Diluted earnings per share 0.39 0.19 VII. Other comprehensive income 29,804,503.37 24,318,912.00 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods other comprehensive income items satisfied predetermined condition will be reclassified to profit or loss in the future accounting period VIII. Total comprehensive income 1,852,817,644.41 911,344,926.48 Total comprehensive income attributable to owners 1,854,568,034.28 930,243,846.73 -1,750,389.87 -18,898,920.25 Total comprehensive income attributable to minority interest 4、Income Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jul-Sep 2014 in RMB yuan Account Current Period Prior Period I. Operating revenue 12,368,730,785.87 7,408,717,050.78 Less: Operating cost 10,055,370,633.02 6,060,887,715.35 Business tax and surcharges 451,123,681.12 250,196,296.64 Operating expenses 952,887,539.52 792,961,493.69 General and administrative expenses 917,664,800.01 611,431,748.38 Financial expenses 1,586,113.81 16,077,085.42 Impairment loss on assets 424,122.01 12 Add: Profit and loss from fair value Changes (- represent loss) Investment income (- represent loss) 1,915,347,319.06 1,314,522,845.84 Including: Investment income from associates and from 1,912,506,547.56 1,311,656,179.17 joint venture II. Operating profit (- represent loss) 1,905,021,215.44 991,685,557.14 Add: Non-operating income 91,981,227.67 16,042,918.42 Less: Non-operating expenses 41,227,870.30 1,142,698.09 Including: loss on disposal of non-current assets 38,652,697.08 16,403.75 III. Total profit(- represent loss) 1,955,774,572.81 1,006,585,777.47 Less: Non-operating expenses 32,430,772.67 -44,420,782.23 IV. Net profit (- represent net loss) 1,923,343,800.14 1,051,006,559.70 V. Earnings per share: -- -- I) Basic earnings per share 0.41 0.23 II) Diluted earnings per share 0.41 0.23 VI. Other comprehensive income 29,942,773.12, 20,268,125.00 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods other comprehensive income items satisfied predetermined condition will be reclassified to profit or loss in the future accounting period VII. Total comprehensive income 1,953,286,573.26 1,071,274,684.70 5、Consolidated Income Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2014 in RMB yuan Account Current Period Prior Period I. Total operating revenue 36,751,508,411.20 28,640,989,715.25 Including: operating revenue 36,751,508,411.20 28,640,989,715.25 Interest income Earned premium Fee and commission income II. Total operating cost 37,430,354,796.59 29,729,635,549.51 Including: Operating cost 30,082,157,100.79 24,057,219,746.49 Interest expenses Fee and commission expenses Surrender value Compensation expenses Net insurance contract reserve Policy dividend expenses Reinsurance expenses Business tax and surcharges 1,426,977,822.94 917,782,937.50 Operating expenses 3,149,926,143.70 2,498,595,749.34 General and administrative expenses 2,641,034,289.95 2,056,668,646.01 Financial expenses 97,280,409.78 74,092,526.38 13 Impairment loss on assets 32,979,029.43 125,275,943.79 -332,407.00 Add: Profit and loss from fair value changes (- represent loss) Investment income (- represent loss) 6,000,333,310.21 3,119,847,794.75 Including: Investment income from associates and from 5,911,263,048.22 3,085,797,974.51 joint venture Net foreign exchange differences(- means loss) III. Operating profit (- represent loss) 5,321,486,924.82 2,030,869,553.49 Add: Non-operating income 164,545,237.67 80,538,111.53 Less: Non-operating expenses 16,158,262.80 19,699,508.14 Including: loss on disposal of non-current assets 9,632,111.62 4,162,103.62 IV. Total profit(- represent loss) 5,469,873,899.69 2,091,708,156.88 Less: Income tax expense 31,032,943.54 -12,830,236.70 V. Net profit (- represent net loss) 5,438,840,956.15 2,104,538,393.58 Including: The net profit of the combined parties before business -43,588,252.13 -100,466,458.67 combination Net profit attributable to owners 5,452,856,529.84 2,136,428,302.39 Minority interests -14,015,573.69 -31,889,908.81 VI. Earnings per share: -- -- I) Basic earnings per share 1.17 0.46 II) Diluted earnings per share 1.17 0.46 VII. Other comprehensive income -31,662,241.21 -2,129,148.00 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods other comprehensive income items satisfied predetermined condition will be reclassified to profit or loss in the future accounting period VIII. Total comprehensive income 5,407,178,714.94 2,102,409,245.58 Total comprehensive income attributable to owners 5,421,194,288.63 2,134,299,154.39 -14,015,573.69 -31,889,908.81 Total comprehensive income attributable to minority interest 6、Income Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2014 in RMB yuan Account Current Period Prior Perid I. Operating revenue 36,531,504,293.67 23,424,783,845.30 Less: Operating cost 30,451,785,175.65 19,479,633,047.69 Business tax and surcharges 1,266,021,661.93 800,541,790.04 Operating expenses 2,824,148,467.73 2,073,050,712.76 General and administrative expenses 2,241,541,783.18 1,711,581,294.41 Financial expenses 80,666,771.69 62,919,475.13 Impairment loss on assets 37,651,812.28 93,368,086.68 Add: Profit and loss from fair value Changes (- represent loss) Investment income (- represent loss) 5,951,181,255.18 3,121,485,444.18 14 Including: Investment income from associates and from 5,911,263,048.22 3,085,797,974.51 joint venture II. Operating profit (- represent loss) 5,580,869,876.39 2,325,174,882.77 Add: Non-operating income 142,672,576.70 61,021,128.65 Less: Non-operating expenses 45,921,672.51 17,331,702.13 Including: loss on disposal of non-current assets 40,525,925.75 3,705,722.03 III. Total profit(- represent loss) 5,677,620,780.58 2,368,864,309.29 Less: Non-operating expenses 18,724,678.57 -41,768,786.00 IV. Net profit (- represent net loss) 5,658,896,102.01 2,410,633,095.29 V. Earnings per share: -- -- I) Basic earnings per share 1.21 0.52 II) Diluted earnings per share 1.21 0.52 VI. Other comprehensive income 9,122,023.12 22,178,625.00 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods other comprehensive income items satisfied predetermined condition will be reclassified to profit or loss in the future accounting period VII. Total comprehensive income 5,668,018,125.13 866,741,491.82 7、Consolidated cash flow statement Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2014 in RMB yuan Account Current Period Prior Perid I. CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from sale of goods or rendering of services 34,603,553,486.27 29,126,416,525.49 Net increase in customer deposits and placements of deposits from other financial institutions Net increase in amounts due to the Central Bank Net decrease in funds loaned to other financial institutions Cash receipts from primary insurance contract Net cash receipts from reinsurance agreement Net increase in saving from incident and investment deposit Net increase in disposal of financial assets held for trading Cash receipts from interest and fee and commission income Net increase in funds borrowed from other financial institutions Net increase in repurchase agreements Refunds of taxes 88,390,158.10 28,269,313.27 Cash received relating to other operating activities 348,217,331.95 667,398,464.41 Sub-total of cash inflows 35,040,160,976.32 29,822,084,303.17 Cash paid for goods and services 21,451,435,766.56 19,867,729,439.41 Net increase in loans and advances Net increase in amounts due from the Central Bank and placements of deposits with other financial institutions Cash payments for primary insurance contract 15 Cash payments for interest and fee and commission expenses Cash payments for policy dividend Cash paid to and on behalf of employees 2,929,734,006.61 1,981,195,033.62 Cash paid for all types of taxes 2,727,712,499.51 2,010,840,490.53 Cash paid relating to other operating activities 3,170,937,873.28 3,387,241,419.56 Sub-total of cash outflows 30,279,820,145.96 27,247,006,383.12 Net cash flows from operating activities 4,760,340,830.36 2,575,077,920.05 II. CASH FLOWS FROM INVESTING ACTIVITIES: Cash received from disposal of investments 9,299,199.77 8,232,153.38 Cash received from return on investments 4,161,840,637.96 1,632,693,160.50 Net cash received from disposal of fixed assets, intangible assets 4,220,942.31 1,175,300.58 and other long-term assets Cash and cash equivalents of subsidiary receipts upon a acquisition Cash received relating to other investing activities 39,692,452.00 Sub-total of cash inflows 4,175,360,780.04 1,681,793,066.46 Cash paid for acquisition of fixed assets, intangible assets and 1,274,206,756.19 1,934,916,625.36 other long-term assets Cash paid for acquisition of investments 441,846,276.62 5,299,732.68 Net increase in pledged loan Cash paid for acquisition of subsidiary and other business units Cash paid relating to other investing activities 80,000.00 Sub-total of cash outflows 1,716,053,032.81 1,940,296,358.04 Net cash flows from investing activities 2,459,307,747.23 -258,503,291.58 III. CASH FLOWS FROM FINANCING ACTIVITIES: Cash received from absorbing investment 3,038.44 100,000,000.00 Including: cash received from absorbing investment from minority interest of subsidiary Cash received from borrowings 80,000,000.00 988,000,000.00 Cash received from issuing bond Cash received relating to other financing activities 422,871,817.29 39,878,401.46 Sub-total of cash inflows 502,874,855.73 1,127,878,401.46 Cash repayments of borrowings 2,970,000,000.00 1,231,000,000.00 Cash paid for distribution of dividends or profits and interest 655,453,955.49 408,153,461.89 expenses Including: cash paid for dividends or profits and interest expenses to minority interest of subsidiary Cash paid relating to other financing activities 297,828,188.70 804,291.91 Sub-total of cash outflows 3,923,282,144.19 1,639,957,753.80 Net cash flows from financing activities -3,420,407,288.46 -512,079,352.34 IV. EFFECT OF CHANGES IN EXCHANGE RATE ON -4,370,175.52 -1,068,464.74 CASH V. NET INCREASE IN CASH AND CASH 3,794,871,113.61 1,803,426,811.39 EQUIVALENTS Add: Opening balance of cash and cash equivalents 3,942,941,861.56 4,643,494,705.55 16 VI. CLOSING BALANCE OF CASH AND CASH 7,737,812,975.17 6,446,921,516.94 EQUIVALENT 8、Cash flow statement Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Sep 2014 in RMB yuan Account Current Period Prior Perid I. CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from sale of goods or rendering of services 32,747,931,951.09 22,934,437,905.20 Refunds of taxes 4,883,000.00 Cash received relating to other operating activities 186,160,080.81 574,221,089.77 Sub-total of cash inflows 32,934,092,031.90 23,513,541,994.97 Cash paid for goods and services 20,930,616,009.18 14,884,416,266.64 Cash paid to and on behalf of employees 2,322,976,387.19 1,488,277,887.61 Cash paid for all types of taxes 2,441,084,316.53 1,723,404,129.27 Cash paid relating to other operating activities 2,646,768,158.58 2,928,900,896.33 Sub-total of cash outflows 28,341,444,871.48 21,024,999,179.85 Net cash flows from operating activities 4,592,647,160.42 2,488,542,815.12 II. CASH FLOWS FROM INVESTING ACTIVITIES: Cash received from disposal of investments 5,189,514.86 8,232,153.38 Cash received from return on investments 4,112,688,582.93 1,636,421,276.39 Net cash received from disposal of fixed assets, intangible assets 1,487,831.98 536,432.49 and other long-term assets Cash received from disposal of subsidiary and other business units Cash received relating to other investing activities 250,000,000.00 150,000,000.00 Sub-total of cash inflows 4,369,365,929.77 1,795,189,862.26 Cash paid for acquisition of fixed assets, intangible assets and 1,097,495,278.06 1,669,745,624.29 other long-term assets Cash paid for acquisition of investments 441,846,276.62 5,299,732.68 Cash paid for acquisition of subsidiary and other business units Cash paid relating to other investing activities 250,000,000.00 Sub-total of cash outflows 1,539,341,554.68 1,925,045,356.97 Net cash flows from investing activities 2,830,024,375.09 -129,855,494.71 III. CASH FLOWS FROM FINANCING ACTIVITIES: Cash received from absorbing investment 3,038.44 Cash received from borrowings 790,000,000.00 Cash received from issuing bond Cash received relating to other financing activities 990.49 Sub-total of cash inflows 4,028.93 790,000,000.00 Cash repayments of borrowings 2,790,000,000.00 1,020,000,000.00 Cash paid for distribution of dividends or profits and interest 641,731,603.72 395,798,352.90 expenses Cash paid relating to other financing activities Sub-total of cash outflows 3,431,731,603.72 1,415,798,352.90 17 Net cash flows from financing activities -3,431,727,574.79 -625,798,352.90 IV. EFFECT OF CHANGES IN EXCHANGE RATE ON CASH V. NET INCREASE IN CASH AND CASH 3,990,943,960.72 1,732,888,967.51 EQUIVALENTS Add: Opening balance of cash and cash equivalents 3,290,584,684.00 3,081,165,146.84 VI. CLOSING BALANCE OF CASH AND CASH 7,281,528,644.72 4,814,054,114.35 EQUIVLANT 2. Auditor’s report The 3rd quarterly report has not been audited. 18