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长 安B:2016年第一季度报告全文(英文版)2016-04-30  

						          2016 First Quarter Report



                     Of



Chongqing Changan Automobile Company Limited




                 April, 2016




                      1
                                   Chapter 1            Important Notes
     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.
     All directors attended the board meeting for reviewing the first quarter report.
     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.




                                                          2
    Chapter 2                Changes in Key Financial Data and Shareholders
2.1 Main accounting financial data
   During the reporting period the previous financial data whether the retroactive adjustment or restatement
□Yes √No
                                                                                                                           In RMB Yuan
                                                                            The same period last             Changed (%)
                                                The reporting period
                                                                                   year
Operating income                                    19,337,756,565.65          18,197,185,337.09                             6.27%
Net profit attributable to shareholders of
                                                     2,673,017,139.39            2,494,491,155.26                            7.16%
the Company
Net profit excluding non-recurring gains
and losses attributable to shareholders of           2,529,388,182.32            2,349,996,871.48                            7.63%
listed company
cash flow from operating activities                  1,615,418,932.11            2,773,784,253.36                          -41.76%
Basic earnings per share                                             0.57                     0.53                           7.55%
Diluted earnings per share                                           N/A                      N/A                             N/A
Weighted average return on net assets                            7.49%                     9.28%                             -1.79%
                                             This reporting period              End of 2015                  Changed (%)
Total assets                                        94,787,608,469.12          89,413,988,669.66                             6.01%
Net assets attributable to shareholders of
                                                    37,025,759,117.77          34,385,189,070.36                             7.68%
listed company
Accidental gain/loss item and amount
√ Applicable □ Not applicable
                                                                                                                         In RMB Yuan
                                                                                  Amount of the period from the
                                      Item                                        beginning of year to the end of       Explanation
                                                                                  report term
 Gain/loss of non-current assets                                                                      -6,061,812.25
 Government subsidies accounted into current gain/loss account, other than
 those closely related to the Company’s common business, comply with the                            186,834,715.50
 national policy and continues to enjoy at certain fixed rate or amount.
 Other non-business income and expenditures other than the above                                      -2,373,865.80
 Less:   Influenced amount of income tax                                                              34,413,043.02
         Influenced amount of minority shareholders’ equity                                            357,037.36
                                    Total                                                          143,628,957.07
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

2.2.1 Total number of shareholders at the end of the report period and statement on shares held by the top ten
tradable shareholders

                                                                                                                      Unit: share


                                                                     3
As of the reporting period, the total   Totaled 157,575, of which 138,119 was A share shareholders and 19,456 were B share
number of shareholders                  shareholders.
                                                           Top 10 Shareholders
                                           Properties of      Shareholding       Number of      Conditional       Pledging or freezing
       Name of the shareholder
                                           shareholder            (%)             shares          shares          Share status     Amount
                                        State-owned legal                                                       No pledge or
China Changan Automobile Co., Ltd.                                  39.11% 1,823,595,216          373,358,342                            0
                                          person shares                                                         frozen
                                         domestic general                                                       No pledge or
China securities finance Co, Ltd                                        2.99%    139,422,848                                             0
                                        legal person shares                                                     frozen
                                         domestic general                                                       No pledge or
Central Huijin Investment Ltd.                                          1.19%     55,393,100                                             0
                                        legal person shares                                                     frozen
United Prosperity Investment Co.,         foreign legal                                                         No pledge or
                                                                        0.97%     45,195,100                                             0
Limited                                   person shares                                                         frozen
                                          foreign legal                                                         No pledge or
GIC PRIVATE LIMITED                                                     0.91%     42,473,436                                             0
                                          person shares                                                         frozen
HTHK-MANULIFE CHINA VALUE                 foreign legal                                                         No pledge or
                                                                        0.74%     34,519,781                                             0
FUND                                      person shares                                                         frozen
National Social Security Fund-           domestic general                                                       No pledge or
                                                                        0.64%     29,999,873                                             0
Portfolio 102                           legal person shares                                                     frozen
VALUE PARTNERS             domestic non-state                                                                   No pledge or
                                                                        0.62%     28,823,840                                             0
HIGH-DIVIDEND STOCKS FUNDS legal person shares                                                                  frozen
National Social Security Fund-          domestic general                                                        No pledge or
                                                                        0.60%     28,099,961                                             0
Portfolio 103                           legal person shares                                                     frozen
Northeast Securities Co. Ltd.-                                                                                  No pledge or
                                         domestic general
customer guarantee of securities credit                                 0.54%     25,142,323                    frozen                   0
                                        legal person shares
transactions security account
                                               Top 10 holders of unconditional shares
                                                                         Amount of shares                 Category of shares
                     Name of the shareholder                              without sales
                                                                           restriction           Category of shares         Amount
China Changan Automobile Co., Ltd.                                              1,450,236,874 RMB Ordinary share           1,450,236,874
China securities finance Co, Ltd                                                 139,422,848 RMB Ordinary share                139,422,848
Central Huijin Investment Ltd.                                                    55,393,100 RMB Ordinary share                  55,393,100
                                                                                               Domestic listed foreign
United Prosperity Investment Co., Limited                                         45,195,100                                     45,195,100
                                                                                               shares
                                                                                               Domestic listed foreign
GIC PRIVATE LIMITED                                                               42,473,436                                     42,473,436
                                                                                               shares
                                                                                               Domestic listed foreign
HTHK-MANULIFE CHINA VALUE FUND                                                    34,519,781                                     34,519,781
                                                                                               shares
National Social Security Fund- Portfolio 102                                      29,999,873 RMB Ordinary share                  29,999,873
                                                                                               Domestic listed foreign
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS                                         28,823,840                                     28,823,840
                                                                                               shares
National Social Security Fund- Portfolio 103                                      28,099,961 RMB Ordinary share                  28,099,961
Northeast Securities Co. Ltd.- customer guarantee of securities
                                                                                  25,142,323 RMB Ordinary share                  25,142,323
credit transactions security account
                                                                    Among the top 10 shareholders, China Changan Automobile
                                                                    Group Co., Ltd., the controlling shareholder, and its wholly
Explanation on the relationship and the action alike of above       owned subsidiary United Prosperity Investment Co., Limited.
shareholders                                                        belong to the concerted actor regulated by “Disclosure
                                                                    Administration of Shares Change Information of The Listed
                                                                    Company”.




                                                                    4
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase
transactions during the report period


□Applicable √Not Applicable


2.2.2 Total number of preferred shareholders at the end of the report period and statement on preferred shares held
by the top ten tradable shareholders

□Applicable √Not Applicable




                                                            5
                                      Chapter 3              Important Matters
3.1 Significant changes&reasons in major accounting data, financial indicators

                                                                                                              In RMB Yuan
                                                                           st                    st
               Balance Sheet Items                               Mar. 31 ,2016             Jan. 1 , 2016         Changes (%)
         1     Accounts receivable                                1,269,879,426.54          875,479,556.55                 45.05%
         2     Interest receivable                                      34,362,686.12         15,295,866.67              124.65%
         3     Construction project                               4,081,505,848.79         3,063,874,006.92                33.21%
         4     Long-term deferred expenses                              13,931,886.95          8,028,811.27                73.52%
         5     Short-term loan                                         165,000,000.00         50,000,000.00              230.00%
         6     Taxes payable                                           563,955,603.14       356,749,196.49                 58.08%
         7     Interest payable                                         99,693,000.00         73,458,000.00                35.71%
         8     Special reserves                                         31,531,878.26         22,036,479.54                43.09%
               Income Statement Items                            Jan-Mar 2016             Jan-Mar 2015           Changes (%)
         1     Selling expenses                                   1,245,628,687.54          904,802,167.72                 37.67%
         2     Financial expenses                                      -43,658,323.21         -9,831,149.81              -344.08%
         3     Non-operating expenses                                   24,603,975.77          2,920,202.20              742.54%
         4     Income tax                                                4,952,715.30        110,290,285.35               -95.51%
         5     Profit for distribution                           26,572,240,402.83       17,610,092,975.05                 50.89%
               Cash Flow Statement Items                         Jan-Mar 2016             Jan-Mar 2015           Changes (%)
               Net Cash flow generated by business
         1                                                        1,615,418,932.11         2,773,784,253.36               -41.76%
               operation
         2     Net cash flow generated by investment              -1,046,353,980.69         -530,913,758.99               -97.09%
         3     Net cash flow generated by financing                    123,093,161.14         47,504,723.04              159.12%
         4     Net increase of cash and cash equivalents               692,249,507.90      2,295,470,823.30               -69.84%
     As at the end of reporting period, the Company’s total asset is 94.8 Billion Yuan, with 6.01% growth compared with the beginning
of the year; the total liability is 58 Billion Yuan, with 4.97% growth compared with the beginning of the year; the debt asset ratio is
61.18%, which is 0.6% lower than that at the beginning of the year. Compared with beginning of the year, the increase of accounts
receivable is mainly due to the growth of car sales; the huge increase of interest receivables is mainly due to the interest on deposits of
the parent company; the increase of construction project is mainly due to new construction projects for passenger cars this year; the
huge increase of long-term deferred expenses is mainly due to the new car extended warranty costs; the huge increase of tax payable is
mainly due to the increase of VAT payable and business income taxes; the increase of interest payable is due to the increase of bond
interest payable; the huge increase of short-term loan is due to the increasingly borrowing of short-term loans from Boding Changan
Bus; the huge increase of special reserve is due to the increase of safety production cost.
     During the reporting period, the increase of the selling expenses is due to the increasing of the accrued discount compared with
the same period of last year; the significant decrease of financial expenses is mainly caused by the decrease of loan interests from
financial institutions; the huge increase of non-operating expense was mainly caused by the loss of fixed assets disposal; the income
tax costs substantially reduced mainly due to the increase of deferred income tax assets.
     During the reporting period, the cash and cash equivalent reduced by 1.603 billion Yuan, down by 69.84% on a year-on-year
basis, mainly resulting from the material decrease of net cash flow generated from operating activities. The net cash flow generated
from operating activities reduced by 1.158 billion Yuan mainly due to the sales growth rate smaller than that of the purchase of goods,
the tax paid in cash and the cash payments to employees. The cash flows from investing activities reduced by 0.515 billion Yuan,
adown by 97.09% on a year-on-year basis, due to the increase of cash for the purchase of fixed assets, intangible assets and other
long-term assets. The net cash flows from financing activities increased by 0.076 billion yuan, a year-on-year increase of 159.12%,
due to the decrease of cash repayments to the debts, and the increase of other cash related financing activities.


3.2 The progress and influence of significant events and the analysis and explanation on resolving proposal
√Applicable □Not Applicable
     On March 7, 2016, the 42nd session of the sixth board of directors approved “On the general election for the seventh board of
directors”, and the company elected Xu Liuping, Zhang Baolin, Zhu Huarong, Zhou Zhiping, Tan Xiaogang, Wang Xiaoxiang, Wang
Kun as the candidate for the seventh session of the board of directors; at the same time, the board of directors nominated Shuai
Tianlong, Liu Jipeng, Li Xiang, Li Qingwen, Tan Xiaosheng, Hu Yu, Pang Yong, and Chen Quanshi as the independent directors


                                                                   6
candidate for the seventh session of the board of directors. On March 7, 2016, the 19th session of the sixth board of supervisors
reviewed and approved the “On the general election for the seventh board of supervisors”, and the company elected Xiaoyong, Sun
Dahong, Zhao Huixia as the candidate for the board of supervisors, and the company workers congress elected Zhang Anguo, Luo
Yan as the employee supervisor candidate for the board of supervisors. On March 23, 2016, the company held its first extraordinary
general meeting in 2016 and approved “On the general election for the seventh board of directors”, and “On the general election for
the seventh board of supervisors”.
     On March 30, 2016, the 2nd session of the seventh board of directors approved “The company's stock option incentive plan
(Draft) ”, and the incentive plan intended to grant 31.22 million shares of stock options to the incentive objects, accounting for about
0.67% of 4.66 billion shares at the signing time for the incentive plan. During the reporting period, the stock options incentive plan
and its related matters still waited for the approval from State-owned Assets Supervision and Administration Commission (SASAC)
and the approval of the general meeting of shareholders.
     On March 30, 2016, the 2nd session of the seventh board of directors approved “The withdrawal of the application documents for
2015 non-public offering of shares”, “The Preplan for 2016 non-public offering of shares" and other related bills. The 2016 non
public offering of shares is issued for China Changan Automobile Group Co., Ltd., with the subscription amount of 2 billion yuan.
From the end of reporting period to the disclosure date, the withdrawal of the application documents for 2015 non-public offering of
shares was approved by the China Securities Regulation Commission (CSRC), and the Preplan for 2016 non-public offering of shares
and its related matters acquired the approval from SASAC and the general meeting of shareholders (Bulletin No.-51). The Preplan
for 2016 non-public offering of shares and its related matters still needs to acquire the approval from CSRC.
     For details, please refer to relevant announcements of tidal wave in the web of www.cninfo.com.cn.
    Description of the Important Items          Disclosure Date                   Interim reports disclosure Web Query
Announcement of the forty-second                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                             2016.3.8
meeting of the sixth board of directors                             etin_detail/true/1202028232?announceTime=2016-03-08
Announcement of the nineteenth meeting                              http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                             2016.3.8
of the sixth board of supervisors                                   etin_detail/true/1202028234?announceTime=2016-03-08
2016 first extraordinary general meeting                            http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                             2016.3.24
resolution announcement                                             etin_detail/true/1202071712?announceTime=2016-03-24
Announcement of the second meeting of                               http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                             2016.3.31
the seventh board of directors                                      etin_detail/true/1202113167?announceTime=2016-03-31
Notice on the risk of non - public offering
                                                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
of shares in diluted spot returns and the   2016.3.31
                                                                    etin_detail/true/1202113157?announceTime=2016-03-31
measures taken to fill
A signed conditional share subscription
                                                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
agreement with China Changan                 2016.3.31
                                                                    etin_detail/true/1202113158?announceTime=2016-03-31
Automobile Group Limited by
Announcement on the stock option
                                                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
incentive related to the related party       2016.3.31
                                                                    etin_detail/true/1202113170?announceTime=2016-03-31
transactions
Notice on the withdrawal of the application                         http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                            2016.3.31
for non - public issuance of shares in 2015                         etin_detail/true/1202113155?announceTime=2016-03-31
The non-public offering of shares related                           http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
                                             2016.3.31
to the related party transactions                                   etin_detail/true/1202113156?announceTime=2016-03-31
Announcement on receiving the approval
                                                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
notice of CSRC on ending the 2016.4.23
                                                                    etin_detail/true/1202227166?announceTime=2016-04-23
administrative license
Announcement on receiving the approval
                                                                    http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bull
notice of SASAC on non - public issuance 2016.4.29
                                                                    etin_detail/true/1202265962?announceTime=2016-04-29
of shares in 2016


3.3 Commitments make within the report period or persisted to the period by the Company
or shareholder with over 5 percent shares held

  Commitment Item            Promise                         Promise    content                                 Performance
                                 1.Will abide by the laws, regulations and rules, to By the end of reporting term, Limited
                                 perform the legal obligations.2. Held by the original conditions of the sale of shares of the
The commitments of               non-tradable shares from obtaining the right to list and company held by the shareholders of
                   China Changan trade date, At least 24 months is not publicly traded or China Changan 1,913,557,480shares,
stock reform
                                 transferred, The 24 months after the expiration of the The 1,538,287,238conditions for the
                                 term of, Non-tradable shareholders stock exchange unlimited sale of shares, The
                                 through the sale of shares, The sale of shares of the remaining 373,358,342 shares for the

                                                                   7
                                          company accounted for the proportion of the total limited conditions of the sale of shares,
                                          number of within 12 months and not more than five According to the commitments to the
                                          percent, In 24 months of no more than ten percent,3. management equity incentive plan
                                          Company in the shares changed after the completion implemented after the lifting of
                                          of According to the national related management restrictions on sale. During the
                                          systems and methods for implementing the reporting period, the 2nd session of the
                                          management equity incentive plan                     seventh board of directors examined
                                                                                               and approved the "The company stock
                                                                                               option incentive plan (Draft)", and the
                                                                                               stock options incentive plan and its
                                                                                               related matters still waited for the
                                                                                               approval from SASAC and the
                                                                                               approval of the general meeting of
                                                                                               shareholders.
                                    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
Other small                         shareholder China Changan commitment: In two Group Company Ltd. at present is still
shareholders          China Changan consecutive years profit of Harbin HF Automobile running at a loss, The conditions have
commitment                          Industry Group Company Ltd. With the continuous not yet reached the profitable for two
                                    development ability and management level is consecutive years.
                                    improved significantly under the condition of,
                                    Proposed that enterprise into the company.


3.4 Forecast of operation performance from Jan. – June of 2016
□Applicable       √Not Applicable


3.5 Securities Investment
√Applicable       □Non-applicable
                  Opening             Opening         Closing    Closing
                                                                                      Gain/loss  in
 Company Company equity                equity          equity     equity Closing book the reporting                                  Equity
                                                                          value  (RMB               Accounting title
  name    variety Holdings          holding ratio     holdings   Holdings             period (RMB                                    source
                                                                               Yuan)
                                        (%)                                                 Yuan)
                  (share)                              (share)    (%)
Southwest Securities                                                                                        Tradable
                     17,750,000          0.76% 35,500,000            0.76% 302,105,000                  0                      Initial investment
Securities Firm                                                                                             financial assets
          Total        17,750,000        0.76% 35,500,000            0.76% 302,105,000                  0


3.6 Derivative Investment
□Applicable √Not Applicable

3.7 Interviews and visits in the reporting period
√Applicable □Not Applicable
   Date           Manner            Object                 Reception object                    Content discussed and material offered
                                                                                        For details, see the January 15, 2016 Shenzhen stock
                                                                                        exchange interactive (http://irm.cninfo.com.cn) on the
2016.1.14 On-Site Survey       Institution          First State Investments
                                                                                        Changan Automobile: January 14, 2016 investor
                                                                                        relations activities record sheet
                                                                                  For details, see the January 18, 2016 Shenzhen stock
                                                    Invesco investment、Macquarie exchange interactive (http://irm.cninfo.com.cn) on the
2016.1.15 On-Site Survey       Institution
                                                    Securities                    Changan Automobile: January 15, 2016 investor
                                                                                  relations activities record sheet
                                                                                        For details, see the January 19, 2016 Shenzhen stock
                                                                                        exchange interactive (http://irm.cninfo.com.cn) on the
2016.1.18 On-Site Survey       Institution          Mingji Investment Company
                                                                                        Changan Automobile: January 18, 2016 investor
                                                                                        relations activities record sheet
                                                                                        For details, see the January 21, 2016 Shenzhen stock
                                                    CICC 、 Norway's          sovereign exchange interactive (http://irm.cninfo.com.cn) on the
2016.1.20    On-Site Survey    Institution
                                                    investment funds                    Changan automobile: January 20 2016 investor
                                                                                        relations activities record sheet


                                                                      8
                                              GuoTaiJunAn.、China Universal For details, see the January 25, 2016 Shenzhen stock
                                              Asset Management 、 Ping’an exchange interactive (http://irm.cninfo.com.cn) on the
                                              asset management 、 Xingye Changan Automobile: January 21, 2016 investor
2016.1.21   On-Site Survey      Institution                                   relations activities record sheet
                                              Fund 、 CICC 、 Huarong
                                              Securities、Harvest Fund、China
                                              Securities

                                              Guotai Junan Securities、       For details, see the February 15, 2016 Shenzhen stock
                                                                              exchange interactive (http://irm.cninfo.com.cn) on the
2016.1.29   On-Site Survey      Institution   Western securities、Huarong     Changan Automobile: January 29, 2016 investor
                                              Securities、Tianan Insurance    relations activities record sheet

                                              Southwest Securities、Tianan For details, see the February 4, 2016 Shenzhen stock
                                                                           exchange interactive (http://irm.cninfo.com.cn) on the
2016.2.3    On-Site Survey      Institution   Insurance、HSBC Jinxin Fund、Changan Automobile: February 3, 2016 investor
                                              Nanfang Fund、UBS SDIC       relations activities record sheet
                                                                          For details, see the February 23, 2016 Shenzhen stock
                                              Yuandian Asset Management、 exchange interactive (http://irm.cninfo.com.cn) on the
2016.2.19   On-Site Survey      Institution
                                              CITICS                      Changan Automobile: February 19, 2016 investor
                                                                          relations activities record sheet
                                                                              For details, see the February 26, 2016 Shenzhen stock
                                              Shanghai Zhengxiang
                                                                              exchange interactive (http://irm.cninfo.com.cn) on the
2016.2.24   On-Site Survey      Institution   investment management co.,
                                                                              Changan Automobile: February 24, 2016 investor
                                              LTD
                                                                              relations activities record sheet
                                              Zeal Asset、The Bank of China For details, see the March 1, 2016 Shenzhen stock
                                              Asset Management 、 Yingfeng exchange interactive (http://irm.cninfo.com.cn) on the
2016.2.26   On-Site Survey      Institution   Investment 、 Yin Hua Fund, Changan Automobile: February 26, 2016 investor
                                              Hong Sang Assets, ICBC Credit relations activities record sheet
                                              Suisse, Jianan Fund, CICC,
                                              Guoxin securities
                                                                             For details, see the March 3, 2016 Shenzhen stock
                                              Ontario Teachers' Pension Plan exchange interactive (http://irm.cninfo.com.cn) on the
2016.3.2    On-Site Survey      Institution
                                                                             Changan Automobile: March 2 ,2016 investor
                                                                             relations activities record sheet
                                              Xingye     General    Global,   For details, see the March 7, 2016 Shenzhen stock
                                              Truvalue Asset Management,      exchange interactive (http://irm.cninfo.com.cn) on the
2016.3.3    On-Site Survey      Institution
                                              Fosun group, China Post Fund,   Changan Automobile: March 3,2016 investor
                                              Ping An Securities              relations activities record sheet
                                                                              For details, see the March 7, 2016 Shenzhen stock
                                              Northeast Securities            exchange interactive (http://irm.cninfo.com.cn) on the
2016.3.3    On-Site Survey      Institution
                                                                              Changan Automobile: March 3 ,2016 investor
                                                                              relations activities record sheet



3.8 Illegal external guarantee
□Applicable √Not Applicable


3.9 Controlling shareholder and its related parties to the listing Corporation's non operating funds
□Applicable √Not Applicable




                                                                9
                                 Chapter 4   Financial Statements
4.1 Consolidated Balance Sheet

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


 Account                                                    Ending Balance         Opening Balance
 Current assets:

      Cash
                                                          18,717,327,462.55       18,035,109,674.21
      Notes receivable
                                                          22,871,620,405.87       22,683,096,211.46
      Accounts receivable
                                                           1,269,879,426.54         875,479,556.55
      Prepayments
                                                            670,045,561.03          852,071,794.54
      Interest receivable
                                                             34,362,686.12           15,295,866.67
      Dividend receivable
                                                             23,684,883.31           23,684,883.31
      Other receivables
                                                           1,299,731,870.88        1,001,485,245.40
      Inventories
                                                           8,934,950,658.28        8,129,075,131.92
      Non-current assets within one year                                  -                        -

      Other current assets
                                                             10,476,526.96             8,909,736.44
 Total current assets
                                                          53,832,079,481.54       51,624,208,100.50
 Non-current assets:                                                          .

 Available-for-sale financial assets
                                                            481,466,274.00          530,811,274.00
      Held-to-maturity investments                                       -                       -
      Long-term receivables                                               -                        -

      Long-term equity investments
                                                          17,324,214,367.00       14,906,500,436.50
      Investment properties
                                                               7,953,018.07            8,009,695.96
      Fixed assets
                                                          13,630,448,037.59       13,910,237,530.81
      Construction in progress
                                                           4,081,505,848.79        3,063,874,006.92
      Construction materials
                                                                 96,690.75               96,690.75
      Liquidation of fixed assets
                                                                285,633.54               12,412.53
      Intangible assets
                                                           2,974,807,190.90        2,843,331,742.67
      Development expenditure
                                                           1,007,469,133.92        1,093,462,382.64
      Goodwill
                                                               9,804,394.00            9,804,394.00
      Long-term deferred expenses
                                                             13,931,886.95             8,028,811.27


                                                10
     Deferred tax assets
                                                     1,423,546,512.07    1,415,611,191.11
     Other non-current assets                                       -                   -

Total non-current assets
                                                    40,955,528,987.58   37,789,780,569.16
TOTAL ASSETS
                                                    94,787,608,469.12   89,413,988,669.66
Current liabilities:

     Short-term loans
                                                      165,000,000.00       50,000,000.00
     Notes payable
                                                    20,130,081,720.28   18,662,900,601.34
     Accounts payable
                                                    15,768,403,475.73   14,973,826,566.55
     Advances from customers
                                                     7,446,602,252.11    7,326,612,631.20
     Payroll payable
                                                     1,318,753,778.01    1,499,613,879.78
     Taxes payable
                                                      563,955,603.14      356,749,196.49
     Interest payables
                                                       99,693,000.00       73,458,000.00
     Dividend payables
                                                           79,742.80           79,742.80
     Other payables
                                                     1,854,709,430.09    1,762,874,858.05
     Non-current liabilities within one year                        -                   -

     Other current liabilities
                                                     3,706,002,148.01    3,930,898,961.15
Total current liabilities
                                                    51,053,281,150.17   48,637,014,437.36
Non-current liabilities:
     Long-term loans                                                -                   -

     Bonds payable
                                                     1,976,082,079.84    1,975,102,599.85
           long-term payable                                        -                   -

     Long-term employee benefit payables
                                                      124,128,324.01      106,622,000.00
     Special payables
                                                      158,587,617.76      164,121,780.05
     Provisions
                                                     1,993,466,501.90    1,641,676,220.15
     Deferred Revenue
                                                     2,637,398,014.38    2,666,543,408.82
     Deferred tax liabilities
                                                       43,255,135.73       49,285,500.00
     Other non-current liabilities                                 -                   -

Total non-current liabilities
                                                     6,932,917,673.62    6,603,351,508.87
Total liabilities
                                                    57,986,198,823.79   55,240,365,946.23
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                                          -                   -

     Other consolidated income
                                                      200,168,353.85      242,110,844.54


                                               11
      Special reserves
                                                                                                   31,531,878.26          22,036,479.54
      Surplus reserves
                                                                                              2,331,443,054.00         2,331,443,054.00
      General reserve                                                                                        -                        -

      Retained earnings
                                                                                             26,572,240,402.83        23,899,223,263.45
 Equity attributable to owners
                                                                                             37,025,759,117.77        34,385,189,070.36
 Minority interests
                                                                                                  -224,349,472.44       -211,566,346.93
 Total Owners’ equity (or Shareholders’ equity)
                                                                                             36,801,409,645.33        34,173,622,723.43

 Liabilities and owners' equity (or shareholders' equity) in total
                                                                                             94,787,608,469.12        89,413,988,669.66



4.2 Balance Sheet

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


                        Account                                      Ending Balance                          Opening Balance
 Current assets:
      Cash                                                                 17,548,639,510.70                        17,223,403,333.90
      Notes receivable                                                     22,543,685,684.00                        22,362,236,477.47
      Accounts receivable                                                   4,043,033,087.05                         3,395,349,268.28
      Prepayments                                                             528,264,820.60                          671,459,087.20
      Interest receivable                                                      34,362,686.12                           15,295,866.67
      Dividend receivable                                                      23,684,883.31                           23,684,883.31
      Other receivables                                                     1,124,614,054.64                         1,020,947,609.25
      Inventories                                                           7,946,404,860.98                         7,034,843,877.19
      Other current assets                                                                    -                                     -
 Total current assets                                                      53,792,689,587.40                        51,747,220,403.27
 Non-current assets:

 Available-for-sale     financial assets                                      481,466,274.00                          530,811,274.00

      Held-to-maturity investments                                                            -                                     -
      Long-term receivables                                                                   -                                     -
      Long-term equity investments                                         18,652,354,192.33                        16,234,640,261.83
      Investment properties                                                                   -                                     -
      Fixed assets                                                         11,312,775,724.80                        11,439,456,287.51
      Construction in progress                                              3,659,285,774.72                         2,694,046,285.96
      Construction materials                                                          96,690.75                            96,690.75
      Intangible assets                                                     2,688,113,234.63                         2,549,877,967.28
      Development expenditure                                                 832,576,731.17                          973,680,610.53
      Goodwill                                                                                -                                     -
      Long-term deferred expenses                                              12,864,636.00                             5,734,664.00
      Deferred tax assets                                                   1,361,226,868.56                         1,311,976,033.85
      Other non-current assets                                                184,595,895.00                          184,595,895.00
 Total non-current assets                                                  39,185,356,021.96                        35,924,915,970.71



                                                                      12
TOTAL ASSETS                                       92,978,045,609.36   87,672,136,373.98
Current liabilities:
     Short-term loans                                              -                   -
     Notes payable                                 19,369,539,995.38   17,867,862,639.24
     Accounts payable                              13,483,561,573.01   12,261,927,977.59
     Advances from customers                        7,451,588,652.06    7,244,681,597.34
     Payroll payable                                1,202,343,360.43    1,340,616,604.42
     Taxes payable                                   814,980,465.98      685,518,624.02
     Interest payable                                 99,693,000.00       73,458,000.00
     Dividend payable                                              -                   -
     Other payables                                 1,440,807,318.33    1,715,127,488.12
Non-current liabilities within one year                            -                   -
     Other current liabilities                      3,485,869,625.35    3,751,184,504.59
Total current liabilities                          47,348,383,990.54   44,940,377,435.32
Non-current liabilities:
     Long-term loans
     Bonds payable                                  1,976,082,079.84    1,975,102,599.85
     Long-term payanles                                            -                   -

     Long-term employee benefit payables              95,439,110.72       87,565,000.00

     Special payables                                103,228,369.52      103,856,111.50
     Provisions                                     1,840,497,262.03    1,610,185,432.44
     Deferred Revenue                               2,191,938,201.82    2,212,002,396.55
     Deferred tax liabilities                         41,883,750.00       49,285,500.00
     Other non-current liabilities                                 -                   -
Total non-current liabilities                       6,249,068,773.93    6,037,997,040.34
Total liabilities                                  53,597,452,764.47   50,978,374,475.66

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                                         -                   -
     Other consolidated income                       239,835,531.91      281,190,781.91
     Special reserves                                 19,581,432.14       12,723,372.00
     Surplus reserves                               2,331,443,054.00    2,331,443,054.00
     General reserve                               29,295,183,883.68   26,573,855,747.25
     Foreign currency reserve                      39,380,592,844.89   36,693,761,898.32
TOTAL LIABILITIES AND OWNERS ’
                                                   92,978,045,609.36   87,672,136,373.98
EQUITY( OR SHAREHOLDERS’ EQUITY)




                                              13
4.3 Consolidated Income Statement of the report term

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


                                            Account                                 Current Period         Prior Period
   I. Total operating revenue                                                       19,337,756,565.65    18,197,185,337.09
     Including: operating revenue                                                   19,001,051,834.52    17,932,804,269.75
   II. Total operating cost                                                         19,268,801,804.42    18,110,329,632.78
     Including: Operating cost                                                      16,274,941,124.73    15,455,790,245.73
              Business tax and surcharges                                             878,762,709.46       862,134,686.68
              Operating expenses                                                     1,245,628,687.54      904,802,167.72
              General and administrative expenses                                     906,143,346.43       897,295,094.06
              Financial expenses                                                       -43,658,323.21        -9,831,149.81
              Impairment loss on assets                                                  6,984,259.47           138,588.40
     Add:     Profit and loss from fair value changes (‘-‘ represent loss)                         -                    -
              Investment income (‘-‘ represent loss)                               2,417,713,930.50     2,321,428,518.93
              Including: Investment income from associates and from joint venture    2,417,713,930.50     2,321,428,518.93
   III. Operating profit (‘-’ represent loss)                                      2,486,668,691.73     2,408,284,223.24

     Add: Non-operating income                                                        203,122,013.22       183,195,663.93
     Less: Non-operating expenses                                                      24,603,975.77          2,920,202.20
              Including: loss on disposal of non-current assets                          5,969,162.67         2,328,357.86

   IV. Total profit(‘-’ represent loss)                                            2,665,186,729.18     2,588,559,684.97
     Less: Income tax expense                                                            4,952,715.30      110,290,285.35

   V. Net profit (‘-’ represent net loss)                                          2,660,234,013.88     2,478,269,399.62

     Net profit attributable to owners                                               2,673,017,139.39     2,494,491,155.26
     Minority interests                                                                -12,783,125.51       -16,221,755.64
   VI. Earnings per share:                                                                           -                    -
     I) Basic earnings per share                                                     2,660,234,013.88     2,478,269,399.62
     II) Diluted earnings per share                                                  2,673,017,139.39     2,494,491,155.26
   VII. Other comprehensive income                                                     -12,783,125.51       -16,221,755.64
   VIII. Total comprehensive income

     Total comprehensive income attributable to owners                                           0.57                 0.53

     Total comprehensive income attributable to minority interest                             不适用               不适用




                                                                     14
4.4 Income Statement of the report term

Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD..                                                                 in RMB yuan
                                                Account                                    Current Period         Prior Perid
       I.              Operating revenue                                                   18,708,427,128.79    18,072,108,418.41
            Less: Operating cost                                                           15,913,768,734.07    15,567,957,070.56
                   Business tax and surcharges                                               807,178,522.27        789,943,702.12
                   Operating expenses                                                       1,154,216,546.29       822,964,978.40
                   General and administrative expenses                                       752,849,402.16        758,285,096.77
                   Financial expenses                                                         -37,401,767.97        -6,022,146.20
                   Impairment loss on assets                                                    2,278,397.46           138,588.40
            Add:     Profit and loss from fair value Changes (‘-’ represent loss)                         -                      -

                     Investment income (‘-’ represent loss)                               2,419,554,705.50     2,321,428,518.93

                     Including: Investment income from associates and from joint venture    2,417,713,930.50     2,321,428,518.93

 II.                Operating profit (‘-’ represent loss)                                 2,535,092,000.01     2,460,269,647.29
            Add: Non-operating income                                                        190,290,365.04        161,996,478.10
            Less: Non-operating expenses                                                      20,997,835.55          2,600,739.31
                     Including: loss on disposal of non-current assets                          2,574,926.45         2,049,321.27

 III.               Total profit(‘-’ represent loss)                                      2,704,384,529.50     2,619,665,386.08

            Less: Non-operating expenses                                                      -16,943,606.93        94,405,465.58
 IV.                Net profit (‘-’ represent net loss)                                   2,721,328,136.43     2,525,259,920.50
 VI.                Other comprehensive income                                                              -                      -
 VII.               Total comprehensive income                                              2,721,328,136.43     2,525,259,920.50
 V.                 Earnings per share:
 I)                 Basic earnings per share                                                            0.58                    0.54
 II)                Diluted earnings per share                                                       不适用                不适用



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

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                      20,795,370,881.16    17,381,085,430.68

            Refunds of taxes                                                                  97,491,096.85         42,093,983.86

            Cash received relating to other operating activities                             555,567,965.52        175,255,971.54

 Sub-total of cash inflows                                                                 21,448,429,943.53    17,598,435,386.08
            Cash paid for goods and services                                               14,340,956,800.90    10,255,698,680.16

            Cash paid to and on behalf of employees                                         2,012,301,025.20     1,705,646,117.44

            Cash paid for all types of taxes                                                1,774,832,778.46     1,648,207,479.16



                                                                           15
      Cash paid relating to other operating activities                                1,704,920,406.86     1,215,098,855.96

 Sub-total of cash outflows                                                          19,833,011,011.42    14,824,651,132.72

 Net cash flows from operating activities                                             1,615,418,932.11     2,773,784,253.36

   II. CASH FLOWS FROM INVESTING ACTIVITIES:


      Net cash received from disposal of fixed assets, intangible assets and other
                                                                                            57,227.53           502,729.67
 long-term assets

      Cash received relating to other investing activities                                            -         380,000.00

 Sub-total of cash inflows                                                                  57,227.53           882,729.67

      Cash paid for acquisition of fixed assets, intangible assets and other
                                                                                      1,046,411,208.22      531,734,753.40
 long-term assets

      Cash paid for acquisition of investments                                                        -          16,735.26

      Cash paid relating to other investing activities                                                -          45,000.00

 Sub-total of cash outflows                                                           1,046,411,208.22      531,796,488.66

 Net cash flows from investing activities                                            -1,046,353,980.69      -530,913,758.99

   III. CASH FLOWS FROM FINANCING ACTIVITIES:

      Cash received from borrowings                                                    115,000,000.00        60,000,000.00

      Cash received relating to other financing activities                              31,766,793.24        77,956,494.33

 Sub-total of cash inflows                                                             146,766,793.24       137,956,494.33
      Cash repayments of borrowings                                                                   -      60,000,000.00

      Cash paid for distribution of dividends or profits and interest expenses            1,938,558.42          522,633.34

      Cash paid relating to other financing activities                                  21,735,073.68        29,929,137.95

 Sub-total of cash outflows                                                             23,673,632.10        90,451,771.29

 Net cash flows from financing activities                                              123,093,161.14        47,504,723.04

   IV. EFFECT OF CHANGES IN EXCHANGE RATE ON CASH                                           91,395.34          5,095,605.89

   V. NET INCREASE IN CASH AND CASH EQUIVALENTS                                        692,249,507.90      2,295,470,823.30

      Add: Opening balance of cash and cash equivalents                                               -                   -

   VI.         CLOSING BALANCE OF CASH AND CASH EQUIVLANT                              692,249,507.90      2,295,470,823.30




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

Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD..                                           in RMB yuan
                                       Account                                       Current Period        Prior Perid

   I. CASH FLOWS FROM OPERATING ACTIVITIES:


                                                                   16
     Cash received from sale of goods or rendering of services                      19,763,794,780.34   16,693,919,274.93

     Refunds of taxes                                                                  50,000,000.00                    -

     Cash received relating to other operating activities                             294,545,645.18      158,127,825.48

Sub-total of cash inflows                                                           20,108,340,425.52   16,852,047,100.41

     Cash paid for goods and services                                               13,855,112,175.44   10,051,876,365.65

     Cash paid to and on behalf of employees                                         1,656,501,846.98    1,427,856,381.76

     Cash paid for all types of taxes                                                1,653,469,804.23    1,543,448,015.36

     Cash paid relating to other operating activities                                1,638,939,812.20    1,129,574,904.09

Sub-total of cash outflows                                                          18,804,023,638.85   14,152,755,666.86

Net cash flows from operating activities                                             1,304,316,786.67    2,699,291,433.55

  II. CASH FLOWS FROM INVESTING ACTIVITIES:

     Cash received from disposal of investments                                                     -                   -

     Cash received from return on investments                                            1,840,775.00                   -

     Net cash received from disposal of fixed assets, intangible assets and other
                                                                                           25,227.53       70,031,309.30
long-term assets

     Cash received from disposal of subsidiary and other business units                             -                   -

     Cash received relating to other investing activities                              50,000,000.00                    -

Sub-total of cash inflows                                                              51,866,002.53       70,031,309.30
     Cash paid for acquisition of fixed assets, intangible assets and other
                                                                                      980,946,612.40      488,537,412.11
long-term assets

     Cash paid for acquisition of investments                                                       -          16,735.26

     Cash paid for acquisition of subsidiary and other business units                               -                   -

     Cash paid relating to other investing activities                                  50,000,000.00                    -

Sub-total of cash outflows                                                           1,030,946,612.40     488,554,147.37

Net cash flows from investing activities                                              -979,080,609.87     -418,522,838.07

  III. CASH FLOWS FROM FINANCING ACTIVITIES:

     Cash received from absorbing investment                                                        -                   -

     Cash received from borrowings                                                                  -                   -

     Cash received from issuing bond                                                                -                   -

     Cash received relating to other financing activities                                           -                   -

Sub-total of cash inflows                                                                           -                   -

     Cash repayments of borrowings                                                                  -                   -

     Cash paid for distribution of dividends or profits and interest expenses                       -                   -



                                                                  17
     Cash paid relating to other financing activities                      -                  -

 Sub-total of cash outflows                                                -                  -
 Net cash flows from financing activities                                  -                  -
   IV. EFFECT OF CHANGES IN EXCHANGE RATE ON CASH                          -                  -

   V. NET INCREASE IN CASH AND CASH EQUIVALENTS               325,236,176.80   2,280,768,595.48
     Add: Opening balance of cash and cash equivalents

   VI. CLOSING BALANCE OF CASH AND CASH EQUIVLANT             325,236,176.80   2,280,768,595.48




4.7 Auditors’Report Auditing Opinion: Unaudited




                                                         18