2015 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 All the directors attend the meeting. 1.3 Chairman Mr. Xu Liuping, Chief Accountants Mr. Wang Kun and Mr. Hua ZhanBiao guarantee the accuracy, 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 2015.9.30 2014.12.31 (%) Total asset 81,496,245,224.69 69,687,352,890.82 16.95% Net asset attributable to the 31,095,460,670.58 25,637,298,549.80 21.29% shareholders of the listed company Changes of Changes of Reporting Reporting Period on Jul-Sep. 2015 Jan.-Sep. 2015 Period on the same the same Period last Period last year (%) year (%) Operation total income 15,055,000,317.76 20.01% 48,107,955,495.25 30.90% Net profit attributable to 1,655,576,666.88 -9.27% 6,740,843,194.01 23.62% shareholders of the listed company Net profit attributable to the shareholders of the listed company 1,546,606,695.03 -13.62% 6,436,517,954.72 20.23% after deducting of non-recurring gain/loss Net cash flow generated by business -- -- 8,043,051,911.61 68.96% operation Basic earnings per share 0.36 -7.69% 1.45 23.93% Diluted earning per share 0.36 -7.69% 1.45 23.93% Return rate on net assets 5.46% Down 2.43% 23.76% Down 1.74% Items and amounts of extraordinary gains and losses √Applicable □Not Applicable Items Amount Gain/loss of non-current assets (including the write-off of assets impairment reserves) -7,858,086.26 The government subsidies included in the current profits and losses (except government subsidies closely 345,642,788.19 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 the merger date 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 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 32,959,462.75 Subtract: Influenced amount of income tax 63,475,860.10 Influenced amount of miniority shareholders’ equity (after tax) 2,943,065.29 Total 304,325,239.29 For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable In reporting period, the Company has no particular items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. 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 number of shareholders is 173,270, and A shareholders is 152,517, B shareholders is end of report period 20,753. 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 domestic non-state no pledge or China Securities Finance Co., Ltd. 2.99% 139,422,848 legal person share freeze domestic non-state no pledge or Central Huijin Investment Co., Ltd. 1.19% 55,393,100 legal person share freeze Zhonghui Fortis Investment Co., foreign legal no pledge or 0.97% 45,195,100 Ltd. person shares freeze foreign legal no pledge or GIC PRIVATE LIMITED 0.88% 41,122,768 person shares freeze HTHK-MANULIFE CHINA foreign legal no pledge or 0.74% 34,519,781 VALUE FUND person shares freeze MORGAN STANLEY & CO. foreign legal no pledge or 0.69% 31,961,073 INTERNATIONAL PLC person shares freeze CITIGROUP GLOBAL MARKETS foreign legal no pledge or 0.64% 29,666,192 LIMITED person shares freeze foreign legal no pledge or GAOLING FUND,L.P. 0.58% 26,839,458 person shares freeze National Social Security Fund- domestic non-state no pledge or 0.54% 25,099,985 Portfolio 103 legal person share freeze Top 10 Shareholder Information of Infinite Sale Condition Type and amount of shares Shareholder Name Shares at the year end Type Amount China Changan Automobile Group Co., Ltd. 1,450,236,874 RMB Common Stock 1,450,236,874 China Securities Finance Co., Ltd. 139,422,848 RMB Common Stock 139,422,848 Central Huijin Investment Co., Ltd. 55,393,100 RMB Common Stock 55,393,100 Zhonghui Fortis Investment Co., Ltd. 45,195,100 domestic foreign share 45,195,100 GIC PRIVATE LIMITED 41,122,768 domestic foreign share 41,122,768 HTHK-MANULIFE CHINA VALUE FUND 34,519,781 domestic foreign share 34,519,781 MORGAN STANLEY & CO. INTERNATIONAL PLC 31,961,073 domestic foreign share 31,961,073 CITIGROUP GLOBAL MARKETS LIMITED 29,666,192 RMB Common Stock 29,666,192 GAOLING FUND,L.P. 26,839,458 domestic foreign share 26,839,458 National Social Security Fund- Portfolio 103 25,099,985 RMB Common Stock 25,099,985 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 Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase transactions during the report period □Available √Non available §3 Important Matters 3.1 Significant changes in major accounting data, financial highlight and reason of these changes. □Available √Non available Balance Sheet Items Sep. 30 2015 Jan. 1th 2015 Changes 1 Cash 18,363,418,341.99 9,693,083,497.78 89.45% 2 Construction in progress 2,672,203,918.86 1,273,996,965.24 109.75% 3 Development expenditure 899,012,570.04 627,845,455.00 43.19% 4 Short-term loans 60,000,000.00 90,000,000.00 -33.33% 5 Notes payable 18,480,971,309.83 13,108,623,397.32 40.98% 6 Tax payables 709,965,313.77 36,024,006.54 1870.81% 7 Provisions 1,733,552,405.24 1,221,114,880.50 41.96% 8 Retained earnings 20,687,352,289.37 15,115,601,819.79 36.86% Income Statement Items Jan-Sep 2015 Jan-Sep 2014 Changes 9 Operating revenue 48,107,955,495.25 36,751,508,411.20 30.90% 10 Operating cost 39,456,464,606.28 30,082,157,100.79 31.16% 11 Business tax and surcharges 2,143,673,854.61 1,426,977,822.94 50.22% 12 Financial expenses -116,457,346.01 97,280,409.78 -219.71% 13 Impairment loss on assets 124,376,195.78 32,979,029.43 277.14% Cash Flow Statement Items Jan-Sep 2015 Jan-Sep 2014 Changes Net cash flows from operating 14 8,043,051,911.61 4,760,340,830.36 68.96% activities Net cash flow generated by 15 -1,271,063,006.66 -3,420,407,288.46 62.84% financing Net increase of cash and cash 16 8,727,338,441.09 3,794,871,113.61 129.98% equivalents 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 macro-economy. The production, and sales growth rate of the Company kept outpacing the industry growth rate. As of the reporting period, the Company had total assets of 81.496 billion Yuan, with an increase of 16.95% over the beginning of the year; the total liabilities of 50.623 billion Yuan, with an increase of 14.45% over the beginning of the year; the asset-liability ratio is 62.12%, decreased by 1.35% than the beginning of the year. Among the items in the balance sheet, the monetary fund increased hugely over the beginning of the year mainly due to the increase of the share out bonus from JV Changan Ford Automobile and the increase of net cash flow from operating activities; Balance of construction in progress hugely increased mainly attributed to the amount of new construction projects greater than the amount of construction projects transferred into fixed assets; Development expenditure increased over the beginning of the year mainly due to the increasing 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; 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; Taxes payable increased over the beginning of the year mainly due to the increase of operating revenue; 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 Chongqing Changan and the joint venture. From January to September, 2015, 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 operating income, the operating cost increased substantially; the business tax and surcharges increased substantially mainly due to the sales growth and the larger proportion of 4 vehicles charged with higher consumption duty; Financial expenses dropped 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 inventory this year. From January to September, 2015, the Company has achieved the net increase of 8.727 billion in cash and cash equivalents with an increase of 129.98% on year-on-year basis. The cash flow generated from operating activities was 8.043 billion Yuan, with an increase of 3.283 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 financing activities was -1.271 billion Yuan, with a increase of 2.149 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 √Applicable □Non-applicable On March 6, 2015, the company's twenty-ninth session of the sixth board of directors meeting reviewed and approved “The proposal of purchasing shares of the Chongqing automotive finance co., LTD.”,the company offered 1.155 billion, accounting for 35% share. On March 25, 2015, the Company held the first extraordinary shareholders' general meeting in 2015 to pass the “The proposal of purchasing shares of the Chongqing automotive finance co., LTD.”. On April 22, 2015, the Company 's thirty-third session of the sixth board of directors meeting reviewed and approved “Preplan of 2015 Non-public Offering” and other motion files, the scale of non-public offering is 321 million shares with the total amount of 6 billion yuan. On May 20, 2015 the company received the SASAC’s notice on “Announcement about the Company's Non-public Offering of A Shares Approved by SASAC” (state owned property rights [2015] No. 350). On May 26, 2015, the second extraordinary shareholders' general meeting is held for reviewing and approving “Preplan of 2015 Non-public Offering”. On June 10, 2015, the company received the administrative licensing application acceptance notice no. 151479 from China securities regulatory commission. Details please refer to the disclosure in the cninfo net of www.cninfo.com.cn, a related announcement. Description of the Important Items Disclosure Date Interim reports disclosure Web Query Special Announcement on RPT Transactions with Chongqing Auto March 7, 2015 http://www.cninfo.com.cn/finalpage/2015-03-07/1200676764.PDF Finance Ltd. Announcement on 2015 First Extraordinary Shareholders' General March 26, 2015 http://www.cninfo.com.cn/finalpage/2015-03-26/1200742339.PDF Meeting Preplan of 2015 Non-public Offering April 23, 2015 http://www.cninfo.com.cn/finalpage/2015-04-23/1200890058.PDF Announcement about the Company's Non-public Offering of A Shares May 21, 2015 http://www.cninfo.com.cn/finalpage/2015-05-21/1201040214.PDF Approved by SASAC Announcement on 2015 Second Extraordinary Shareholders' General May 27, 2015 http://www.cninfo.com.cn/finalpage/2015-05-27/1201067398.PDF Meeting Announcement about the Company's Non-public Offering of A Shares June 27, 2015 http://www.cninfo.com.cn/finalpage/2015-06-11/1201133491.PDF Accepted by by CSRC 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 1.Aabide by the laws, regulations and As of the end of the reporting period, rules, and perform the legal obligations.2. CCAG, the Company’s shareholder Hold by the original non-tradable shares with share selling restrictions, held from obtaining the right to list and trade 373,358,342 shares with selling date, At least 24 months is not publicly restrictions, which will be lifted after The commitments China traded or transferred, The 24 months after May, 2006 the implementation of management of stock reform Changan the expiration of the term of, Non-tradable share incentive plan according to the shareholders stock exchange through the commitments of shareholding sale of shares, The sale of shares of the reform. During the reporting period, company accounted for the proportion of according to CCAG’s document “A the total number of within 12 months and Supplementary Explanation to not more than five percent, in 24 months Participating in the Share Split 5 of no more than ten percent. 3. After the Reform of Chongqing Changan completion of stock reform, according to Automobile Co., Ltd.”, the Company the national related management systems confirmed that it will implement the and methods the company will implement management share incentive plan the management equity incentive plan. before June 30, 2016, according to relevant national regulations and measures. In order to avoid and eventually solve the possible competition or potential competitors, better maintain the interests of investors, the company controlling shareholder China Changan makes the The Harbin Hafei Automobile Other small commitment: In two consecutive years China September, Industry Group Co at present is still shareholders Harbin Hafei Automobile Industry Group Changan 2010 running at a loss, and don’t record commitment Co, records the net profit with the the profit for two consecutive years. continuous development ability and improving management level. Under such condition, the Company proposes that the enterprises shall be merged into the company. 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 Holdings Accounting title name variety cost (RMB Holdings holding ratio holdings source Yuan) (share) (%) (share) (%) Southwest Securities Tradable financial 50,000,000 17,750,000 0.76% 35,500,000 0.76% Initial investment Securities Firm assets Total 50,000,000 17,750,000 -- 35,500,000 -- 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 Content discussed and material Date Location Manner Reception object offered Meeting Room, On-Site Automotive Industry Development 2015.1.4 Zealustre Assets Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Guotai Junan Securities、Mirae Automotive Industry Development 2015.2.4 Changan Headquarters Survey Asset and Company’s Business CITIC Securities、Huaan Meeting Room, On-Site Funds、CITIC-Prudential Fund Automotive Industry Development 2015.2.6 Changan Headquarters Survey Management Co.、Harvest and Company’s Business Fund、PICC Asset Management 6 Co.、Changsheng Fund Management Co.、Value Partners Meeting Room, On-Site Automotive Industry Development 2015.3.6 China Minzu Securities Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Angel Investment Co.、CITIC Automotive Industry Development 2015.3.13 Changan Headquarters Survey Securities International and Company’s Business Meeting Room, Telephone China Securities Co. Automotive Industry Development 2015.4.17 Changan Headquarters conference and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.5.6 Tiger Pacific Capital L.P. Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.5.12 Fubon Securities Changan Headquarters Survey and Company’s Business China Merchants Securities、 Meeting Room, On-Site Everyoung Capital Automotive Industry Development 2015.5.14 Changan Headquarters Survey Management、Shenzhen and Company’s Business Tangrong Investment Meeting Room, On-Site JPMorgan Asset Management、Automotive Industry Development 2015.5.27 Changan Headquarters Survey Credit Suisse and Company’s Business Meeting Room, On-Site AllianceBernstein (Singapore) Automotive Industry Development 2015.6.1 Changan Headquarters Survey Ltd.、Deutsche Bank and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.6.5 Huatai Securities Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Citibank、Janchor Partners Automotive Industry Development 2015.6.8 Changan Headquarters Survey Limited and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.6.10 Guolian Securities Changan Headquarters Survey and Company’s Business Meeting Room, On-Site CI Global Investments Asia Automotive Industry Development 2015.6.11 Changan Headquarters Survey Ltd.、Macquarie Securities and Company’s Business Meeting Room, On-Site 3W Fund Management、 Automotive Industry Development 2015.6.25 Changan Headquarters Survey Greewoods Asset Management and Company’s Business Meeting Room, On-Site BNP Paribas Equities(Asia) Automotive Industry Development 2015.6.30 Changan Headquarters Survey Ltd. and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.6.30 China Securities Co. Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Zheshang Securities、CIB Fund Automotive Industry Development 2015.7.2 Changan Headquarters Survey Management and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.7.7 Foresea Life Insurance Changan Headquarters Survey and Company’s Business Meeting Room, On-Site BOC International (China) Automotive Industry Development 2015.7.9 Changan Headquarters Survey Limited and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.7.22 Hillhouse Capital Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Longquan Investment Automotive Industry Development 2015.7.24 Changan Headquarters Survey Management and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.7.27 HSBC Changan Headquarters Survey and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.7.29 China Securities Co. Changan Headquarters Survey and Company’s Business Meeting Room, China Securities Co.、Harvest On-Site Automotive Industry Development 2015.8.31 Fund、UBS SDIC、CCB Changan Headquarters Survey and Company’s Business Principal Asset Management 7 Co.、ICBC Credit Suisse Asset Management、China Life AMP Asset Management、Sunshine Asset Management、 Commando Capital、Tianan Property Insurance、CICC Fund、Bank Of Beijing Scotiabank Asset Management、Desheng Capital、Hope Asset、Hillhouse Capital、Golden Resources、 Gaohua Securities、Heng An Standard Life、Tianjun Investment、China Life Pension、Anbang Insurance Group、New China Fund Management、JT Asset Management Meeting Room, On-Site Southwest Securities、China Automotive Industry Development 2015.9.15 Changan Headquarters Survey Southern Asset Management and Company’s Business Meeting Room, On-Site Founder Securities、Bosera Automotive Industry Development 2015.9.18 Changan Headquarters Survey Funds and Company’s Business Meeting Room, On-Site Automotive Industry Development 2015.9.28 Red Horse Capital Changan Headquarters Survey and Company’s Business 3.8 Illegal external guarantees □ applicable √ not applicable The Company has no illegal external guarantees during the reporting period. 3.9 The controlling shareholder and its related parties occupying the non-operating capital of the listed company □ applicable √ not applicable During the reporting period, no controlling shareholder and its related parties occupied the non-operating capital of the listed company. §4. Attachment I Financial statements 1.Consolidated Balance Sheet Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. in RMB yuan Account Ending Balance Opening Balance Current assets: Cash 18,363,418,341.99 9,693,083,497.78 Deposit Reservation for Balance Funds loaned to other financial institutions Financial assets held for trading Notes receivable 16,679,471,350.16 17,780,161,662.94 Accounts receivable 853,853,931.19 758,876,190.82 Prepayments 959,829,351.09 839,752,551.46 Premiums receivable 8 Reinsurance receivable Reinsurance reserve receivable Interest receivable 38,639,791.67 22,083,194.44 Dividend receivable 2,130,000.00 - Other receivables 333,318,785.95 260,457,285.50 Reverse repurchase agreements Inventories 6,982,670,585.30 6,572,186,481.51 Classified as assets held for sale Non-current assets within one year Other current assets 3,003,255.65 3,370,219.83 Total current assets 44,216,335,393.00 35,929,971,084.28 Non-current assets: Entrustment loans and advances Available-for-sale financial assets 410,091,101.12 544,456,774.00 Held-to-maturity investments Long-term receivables Long-term equity investments 15,097,382,977.60 12,623,989,600.46 Investment properties 9,247,048.34 9,460,145.04 Fixed assets 13,690,181,640.44 14,565,579,796.38 Construction in progress 2,672,203,918.86 1,273,996,965.24 Construction materials 96,690.75 96,690.75 Liquidation of fixed assets 962,786.36 12,412.53 Productive biological assets Oil and gas asset Intangible assets 2,917,264,352.83 2,878,965,225.15 Development expenditure 899,012,570.04 627,845,455.00 Goodwill 9,804,394.00 9,804,394.00 Long-term deferred expenses 2,407,811.42 1,687,863.32 Deferred tax assets 1,356,101,764.93 1,160,584,772.58 Other non-current assets 215,152,775.00 60,901,712.09 Total non-current assets 37,279,909,831.69 33,757,381,806.54 TOTAL ASSETS 81,496,245,224.69 69,687,352,890.82 Current liabilities: Short-term loans 60,000,000.00 90,000,000.00 Due to The People’s Bank of China Placements of deposits from other financial institutions Funds borrowed from other financial institutions Financial liabilities held for trading Notes payable 18,480,971,309.83 13,108,623,397.32 Accounts payable 13,402,781,203.47 13,038,793,688.31 Advances from customers 5,725,339,858.07 5,802,717,284.79 9 Repurchase agreements Commission payable Payroll payable 992,583,423.85 1,022,369,664.80 Taxes payable 709,965,313.77 36,024,006.54 Interest payables 47,223,000.00 73,458,000.00 Dividend payables 79,742.80 79,742.80 Other payables 1,359,759,787.48 2,007,416,635.58 Reinsurance payable Reinsurance reserve payable Commission of security trading Commission of underwriting Liabilities classified as held for sale Non-current liabilities within one year Other current liabilities 3,296,637,882.32 2,921,898,971.68 Total current liabilities 44,075,341,521.59 38,101,381,391.82 Non-current liabilities: Long-term loans Bonds payable 1,974,123,119.86 1,971,184,679.89 Long-term employee compensation 39,767,730.24 48,317,000.00 Special payables 159,333,328.18 146,635,935.13 Deferred income 2,604,336,537.56 2,687,392,181.26 Estimated liabilities 1,733,552,405.24 1,221,114,880.50 Deferred tax liabilities 36,810,763.75 55,915,125.00 Other non-current liabilities Total non-current liabilities 6,547,923,884.83 6,130,559,801.78 Total liabilities 50,623,265,406.42 44,231,941,193.60 Owners’ equity(or shareholders’ equity) Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00 Capital reserves 3,227,489,320.83 3,227,489,320.83 Less: Treasury shares Special reserves 20,525,263.99 7,864,849.94 Other comprehensive income 165,764,634.39 292,013,397.24 Surplus reserves 2,331,443,054.00 2,331,443,054.00 General reserve Undistributed profit 20,687,352,289.37 15,115,601,819.79 Equity attributable to owners 31,095,460,670.58 25,637,298,549.80 Minority interests -222,480,852.31 -181,886,852.58 Total Owners’ equity (or Shareholders’equity) 30,872,979,818.27 25,455,411,697.22 TOTAL LIABILITIES AND OWNERS’ EQUITY( OR SHAREHOLDERS’ EQUITY) 81,496,245,224.69 69,687,352,890.82 10 2、Balance Sheet Statement Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. in RMB yuan Account Ending Balance Opening Balance Current assets: Cash 17,387,653,138.13 8,828,152,864.35 Financial assets held for trading - Notes receivable 16,387,776,760.63 17,437,167,211.16 Accounts receivable 4,055,177,423.13 2,761,909,831.22 Prepayments 1,109,632,048.55 718,818,105.48 Interest receivable 38,639,791.67 22,083,194.44 Dividend receivable 2,130,000.00 - Other receivables 419,977,561.47 668,159,856.84 Inventories 6,125,464,191.86 5,742,492,948.04 Classified as assets held for sale Non-current assets within one year Other current assets Total current assets 45,526,450,915.44 36,178,784,011.53 Non-current assets: Available-for-sale financial assets 410,091,101.12 544,456,774.00 Held-to-maturity investments Long-term receivables Long-term equity investments 16,435,158,335.92 13,961,764,958.78 Investment properties Fixed assets 11,339,119,594.84 12,096,357,952.31 Construction in progress 2,375,917,046.50 1,104,857,686.48 Construction materials 96,690.75 96,690.75 Liquidation of fixed assets Productive biological assets Oil and gas asset Intangible assets 2,637,725,233.10 2,609,607,273.08 Development expenditure 787,161,595.03 553,114,237.90 Goodwill Long-term deferred expenses 225,100.00 360,160.00 Deferred tax assets 1,304,692,226.31 1,074,871,906.67 Other non-current assets 215,152,775.00 60,901,712.09 Total non-current assets 35,505,339,698.57 32,006,389,352.06 TOTAL ASSETS 81,031,790,614.01 68,185,173,363.59 Current liabilities: Short-term loans Financial liabilities held for trading Notes payable 17,710,761,492.13 12,543,099,927.12 11 Accounts payable 12,157,032,106.86 10,740,190,881.58 Advances from customers 5,818,622,297.57 5,759,636,471.07 Payroll payable 890,611,636.94 880,808,485.74 Taxes payable 1,020,034,435.19 377,767,827.46 Interest payable 47,223,000.00 73,458,000.00 Dividend payable Other payables 1,068,322,783.18 1,689,613,940.30 Liabilities classified as held for sale Non-current liabilities within one year Other current liabilities 3,122,646,926.56 2,699,580,446.95 Total current liabilities 41,835,254,678.43 34,764,155,980.22 Non-current liabilities: Long-term loans Bonds payable 1,974,123,119.86 1,971,184,679.89 Long-term employee compensation 20,736,881.19 27,778,000.00 Special payables 93,383,627.93 76,263,426.13 Deferred income 2,133,164,325.58 2,195,144,515.81 Estimated liabilities 1,577,102,243.45 1,203,676,749.38 Deferred tax liabilities 35,760,000.00 55,915,125.00 Other non-current liabilities Total non-current liabilities 5,834,270,198.01 5,529,962,496.21 Total liabilities 47,669,524,876.44 40,294,118,476.43 Owners’ equity (or Shareholders’ equity): Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00 Capital reserves 2,831,662,835.16 2,831,662,835.16 Less: Treasury shares Special reserves 10,011,201.93 3,127,864.50 Other comprehensive income 203,228,000.00 317,440,375.00 Surplus reserves 2,331,443,054.00 2,331,443,054.00 General reserve Retained earnings 23,323,034,538.48 17,744,494,650.50 Foreign currency reserve Ownership of the parent company's total equity 33,362,265,737.57 27,891,054,887.16 Minority shareholders' rights and interests Equity attributable to owners 33,362,265,737.57 27,891,054,887.16 TOTAL LIABILITIES AND OWNERS’ EQUITY( OR SHAREHOLDERS’ EQUITY) 81,031,790,614.01 68,185,173,363.59 3、Consolidated Income Statement (The reporting period) Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan Account Current Period Prior Period 12 I. Total operating revenue 15,055,000,317.76 12,544,777,769.25 Including: operating revenue 15,055,000,317.76 12,544,777,769.25 Interest income Earned premium Fee and commission income II. Total operating cost 15,008,661,279.50 12,669,682,099.02 Including: Operating cost 12,206,530,406.06 10,086,674,608.63 Interest expenses Fee and commission expenses Surrender value Compensation expenses Net insurance contract reserve Policy dividend expenses Reinsurance expenses Business tax and surcharges 598,046,983.09 501,882,319.90 Operating expenses 1,193,108,408.17 1,034,896,118.03 General and administrative expenses 1,055,440,120.45 1,037,674,080.88 Financial expenses -40,687,482.85 8,130,849.57 Impairment loss on assets -3,777,155.42 424,122.01 Add: Profit and loss from fair value changes (‘-‘ represent loss) Investment income (‘-‘ represent loss) 1,517,987,797.70 1,916,293,063.73 Including: Investment income from associates and from 1,512,662,797.70 1,912,506,547.56 joint venture Net foreign exchange differences(‘-’ means loss) III. Operating profit (‘-’ represent loss) 1,564,326,835.96 1,791,388,733.96 Add: Non-operating income 146,174,434.47 74,091,651.63 Less: Non-operating expenses 11,735,051.48 10,903,624.47 Including: loss on disposal of non-current assets 5,482,074.41 7,512,147.05 IV. Total profit(‘-’ represent loss) 1,698,766,218.95 1,854,576,761.12 Less: Income tax expense 56,253,263.86 31,563,620.08 V. Net profit (‘-’ represent net loss) 1,642,512,955.09 1,823,013,141.04 Including: The net profit of the combined parties before business combination Net profit attributable to owners 1,655,576,666.88 1,824,763,530.91 Minority interests -1,3,063,711.79 -1,750,389.87 VI. Earnings per share: -- -- I) Basic earnings per share 0.36 0.39 II) Diluted earnings per share 0.36 0.39 VII. Other comprehensive income -70,787,299.33 29,804,503.37 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods other comprehensive income items satisfied predetermined -70,787,299.33 29,804,503.37 condition will be reclassified to profit or loss in the future accounting 13 period VIII. Total comprehensive income 1,571,725,655.76 1,852,817,644.41 Total comprehensive income attributable to owners 1,584,789,367.55 1,854,568,034.28 -13,063,711.79 -1,750,389.87 Total comprehensive income attributable to minority interest 4、Income Statement (The reporting period) Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan Account Current Period Prior Period I. Operating revenue 14,373,367,136.50 12,368,730,785.87 Less: Operating cost 11,744,507,563.38 10,055,370,633.02 Business tax and surcharges 566,969,922.30 451,123,681.12 Operating expenses 1,095,314,766.52 952,887,539.52 General and administrative expenses 922,905,618.06 917,664,800.01 Financial expenses -47,968,438.14 1,586,113.81 Impairment loss on assets -529,644.56 424,122.01 Add: Profit and loss from fair value Changes (‘-’ represent loss) Investment income (‘-’ represent loss) 1,517,987,797.70 1,915,347,319.06 Including: Investment income from associates and from 1,512,662,797.70 1,912,506,547.56 joint venture II. Operating profit (‘-’ represent loss) 1,610,155,146.64 1,905,021,215.44 Add: Non-operating income 133,144,611.33 91,981,227.67 Less: Non-operating expenses 8,949,387.46 41,227,870.30 Including: loss on disposal of non-current assets 4,547,055.50 38,652,697.08 III. Total profit(‘-’ represent loss) 1,734,350,370.51 1,955,774,572.81 Less: Non-operating expenses 49,599,973.17 32,430,772.67 IV. Net profit (‘-’ represent net loss) 1,684,750,397.34 1,923,343,800.14 V. Earnings per share: -- -- I) Basic earnings per share 0.36 0.41 II) Diluted earnings per share 0.36 0.41 VI. Other comprehensive income -74,381,375.00 29,942,773.12 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 -74,381,375.00 29,942,773.12 period VII. Total comprehensive income 1,610,369,022.34 1,953,286,573.26 5、Consolidated Income Statement(The beginning of the year to the reporting period income statement) Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan 14 Account Current Period Prior Period I. Total operating revenue 48,107,955,495.25 36,751,508,411.20 Including: operating revenue 48,107,955,495.25 36,751,508,411.20 Interest income Earned premium Fee and commission income II. Total operating cost 48,031,669,736.05 37,430,354,796.59 Including: Operating cost 39,456,464,606.28 30,082,157,100.79 Interest expenses Fee and commission expenses Surrender value Compensation expenses Net insurance contract reserve Policy dividend expenses Reinsurance expenses Business tax and surcharges 2,143,673,854.61 1,426,977,822.94 Operating expenses 3,328,259,040.06 3,149,926,143.70 General and administrative expenses 3,095,353,385.33 2,641,034,289.95 Financial expenses -116,457,346.01 97,280,409.78 Impairment loss on assets 124,376,195.78 32,979,029.43 Add: Profit and loss from fair value changes (‘-‘ represent loss) Investment income (‘-‘ represent loss) 6,480,937,592.45 6,000,333,310.21 Including: Investment income from associates and from 5,911,263,048.22 joint venture 6,423,393,377.14 Net foreign exchange differences(‘-’ means loss) III. Operating profit (‘-’ represent loss) 6,557,223,351.65 5,321,486,924.82 Add: Non-operating income 399,484,232.27 164,545,237.67 Less: Non-operating expenses 28,740,067.59 16,158,262.80 Including: loss on disposal of non-current assets 7,902,292.09 9,632,111.62 IV. Total profit(‘-’ represent loss) 6,927,967,516.33 5,469,873,899.69 Less: Income tax expense 227,718,322.05 31,032,943.54 V. Net profit (‘-’ represent net loss) 6,700,249,194.28 5,438,840,956.15 Including: The net profit of the combined parties before business - -43,588,252.13 combination Net profit attributable to owners 6,740,843,194.01 5,452,856,529.84 Minority interests -40,593,999.73 -14,015,573.69 VI. Earnings per share: -- -- I) Basic earnings per share 1.45 1.17 II) Diluted earnings per share 1.45 1.17 VII. Other comprehensive income -126,248,762.85 -31,662,241.21 Where: Other comprehensive income items can not be reclassified into profit or loss in future accounting periods 15 other comprehensive income items satisfied predetermined condition will be reclassified to profit or loss in the future accounting -126,248,762.85 -31,662,241.21 period VIII. Total comprehensive income 6,574,000,431.43 5,407,178,714.94 Total comprehensive income attributable to owners 6,614,594,431.16 5,421,194,288.63 -14,015,573.69 Total comprehensive income attributable to minority interest -40,593,999.73 6、Income Statement(The beginning of the year to the reporting period income statement) Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan Account Current Period Prior Perid I. Operating revenue 46,889,180,993.55 36,531,504,293.67 Less: Operating cost 38,977,865,565.47 30,451,785,175.65 Business tax and surcharges 1,985,636,892.44 1,266,021,661.93 Operating expenses 3,053,403,384.86 2,824,148,467.73 General and administrative expenses 2,707,637,319.04 2,241,541,783.18 Financial expenses -111,578,616.35 80,666,771.69 Impairment loss on assets 130,776,658.24 37,651,812.28 Add: Profit and loss from fair value Changes (‘-’ represent loss) Investment income (‘-’ represent loss) 6,480,937,592.45 5,951,181,255.18 Including: Investment income from associates and from 5,911,263,048.22 joint venture 6,423,393,377.14 II. Operating profit (‘-’ represent loss) 6,626,377,382.30 5,580,869,876.39 Add: Non-operating income 328,679,467.15 142,672,576.70 Less: Non-operating expenses 24,173,733.64 45,921,672.51 Including: loss on disposal of non-current assets 6,674,722.91 40,525,925.75 III. Total profit(‘-’ represent loss) 6,930,883,115.81 5,677,620,780.58 Less: Income tax expenses 183,250,503.40 18,724,678.57 IV. Net profit (‘-’ represent net loss) 6,747,632,612.41 5,658,896,102.01 V. Earnings per share: -- -- I) Basic earnings per share 1.45 1.21 II) Diluted earnings per share 1.45 1.21 VI. Other comprehensive income -114,212,375.00 9,122,023.12 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 -114,212,375.00 9,122,023.12 period VII. Total comprehensive income 6,633,420,237.41 5,668,018,125.13 16 7、Consolidated cash flow statement Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan Account Current Period Prior Perid I. CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from sale of goods or rendering of services 51,702,837,976.00 34,603,553,486.27 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 117,854,027.25 88,390,158.10 Cash received relating to other operating activities 749,700,681.63 348,217,331.95 Sub-total of cash inflows 52,570,392,684.88 35,040,160,976.32 Cash paid for goods and services 33,098,712,289.69 21,451,435,766.56 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 Cash payments for interest and fee and commission expenses Cash payments for policy dividend Cash paid to and on behalf of employees 3,657,503,343.25 2,929,734,006.61 Cash paid for all types of taxes 4,002,176,936.84 2,727,712,499.51 Cash paid relating to other operating activities 3,768,948,203.49 3,170,937,873.28 Sub-total of cash outflows 44,527,340,773.27 30,279,820,145.96 Net cash flows from operating activities 8,043,051,911.61 4,760,340,830.36 II. CASH FLOWS FROM INVESTING ACTIVITIES: Cash received from disposal of investments - 9,299,199.77 Cash received from return on investments 4,005,414,215.31 4,161,840,637.96 Net cash received from disposal of fixed assets, intangible assets 618,582.25 4,220,942.31 and other long-term assets Cash and cash equivalents of subsidiary receipts upon a acquisition Cash received relating to other investing activities 5,680,000.00 - Sub-total of cash inflows 4,011,712,797.56 4,175,360,780.04 Cash paid for acquisition of fixed assets, intangible assets and 1,833,892,501.59 1,274,206,756.19 other long-term assets Cash paid for acquisition of investments 215,165,550.26 441,846,276.62 17 Net increase in pledged loan Cash paid for acquisition of subsidiary and other business units Cash paid relating to other investing activities 45,000.00 - Sub-total of cash outflows 2,049,103,051.85 1,716,053,032.81 Net cash flows from investing activities 1,962,609,745.71 2,459,307,747.23 III. CASH FLOWS FROM FINANCING ACTIVITIES: Cash received from absorbing investment - 3,038.44 Including: cash received from absorbing investment from minority interest of subsidiary Cash received from borrowings 60,000,000.00 80,000,000.00 Cash received from issuing bond Cash received relating to other financing activities 67,961,859.16 422,871,817.29 Sub-total of cash inflows 127,961,859.16 502,874,855.73 Cash repayments of borrowings 90,000,000.00 2,970,000,000.00 Cash paid for distribution of dividends or profits and interest 1,280,936,977.31 655,453,955.49 expenses Including: cash paid for dividends or profits and interest expenses to minority interest of subsidiary Cash paid relating to other financing activities 28,087,888.51 297,828,188.70 Sub-total of cash outflows 1,399,024,865.82 3,923,282,144.19 Net cash flows from financing activities -1,271,063,006.66 -3,420,407,288.46 IV. EFFECT OF CHANGES IN EXCHANGE RATE ON -7,260,209.58 -4,370,175.52 CASH V. NET INCREASE IN CASH AND CASH 8,727,338,441.08 3,794,871,113.61 EQUIVALENTS Add: Opening balance of cash and cash equivalents 9,362,853,917.71 3,942,941,861.56 VI. CLOSING BALANCE OF CASH AND CASH 18,090,192,358.79 7,737,812,975.17 EQUIVALENT 8、Cash flow statement Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. in RMB yuan Account Current Period Prior Perid I. CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from sale of goods or rendering of services 49,361,291,578.69 32,747,931,951.09 Refunds of taxes Cash received relating to other operating activities 776,126,534.85 186,160,080.81 Sub-total of cash inflows 50,137,418,113.54 32,934,092,031.90 Cash paid for goods and services 32,408,586,970.29 20,930,616,009.18 Cash paid to and on behalf of employees 2,959,054,842.89 2,322,976,387.19 Cash paid for all types of taxes 3,674,450,623.69 2,441,084,316.53 Cash paid relating to other operating activities 3,506,222,314.51 2,646,768,158.58 Sub-total of cash outflows 42,548,314,751.38 28,341,444,871.48 Net cash flows from operating activities 7,589,103,362.16 4,592,647,160.42 18 II. CASH FLOWS FROM INVESTING ACTIVITIES: Cash received from disposal of investments - 5,189,514.86 Cash received from return on investments 4,005,414,215.31 4,112,688,582.93 Net cash received from disposal of fixed assets, intangible assets 70,290,041.88 1,487,831.98 and other long-term assets Cash received from disposal of subsidiary and other business units Cash received relating to other investing activities 5,380,000.00 250,000,000.00 Sub-total of cash inflows 4,081,084,257.19 4,369,365,929.77 Cash paid for acquisition of fixed assets, intangible assets and 1,619,485,414.11 1,097,495,278.06 other long-term assets Cash paid for acquisition of investments 215,165,550.26 441,846,276.62 Cash paid for acquisition of subsidiary and other business units Cash paid relating to other investing activities Sub-total of cash outflows 1,834,650,964.37 1,539,341,554.68 Net cash flows from investing activities 2,246,433,292.82 2,830,024,375.09 III. CASH FLOWS FROM FINANCING ACTIVITIES: Cash received from absorbing investment - 3,038.44 Cash received from borrowings Cash received from issuing bond Cash received relating to other financing activities - 990.49 Sub-total of cash inflows - 4,028.93 Cash repayments of borrowings - 2,790,000,000.00 Cash paid for distribution of dividends or profits and interest 1,276,036,381.20 641,731,603.72 expenses Cash paid relating to other financing activities Sub-total of cash outflows 1,276,036,381.20 3,431,731,603.72 Net cash flows from financing activities -1,276,036,381.20 -3,431,727,574.79 IV. EFFECT OF CHANGES IN EXCHANGE RATE ON CASH V. NET INCREASE IN CASH AND CASH 8,559,500,273.78 3,990,943,960.72 EQUIVALENTS Add: Opening balance of cash and cash equivalents 8,828,152,864.35 3,290,584,684.00 VI. CLOSING BALANCE OF CASH AND CASH 17,387,653,138.13 7,281,528,644.72 EQUIVLANT II. Auditor’s report The 3rd quarterly report has not been audited. 19