Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chongqing Changan Automobile Company Limited
2018 Semi-annual Report
August 2018
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executives
of the company hereby guarantee that no false or misleading statement or major omission was made
to the materials in this report and that they will assume all the responsibilities, individually and
jointly, for the trueness, accuracy and completeness of the contents of this report.
All the directors attended the board meeting for reviewing the semi-annual report.
For the first half of 2018, the Company has no plans of cash dividend, no bonus shares and no
share converted from capital reserve.
The Chairman of the Board Zhang Baolin, the Chief Financial Officer Zhang Deyong and the
responsible person of the accounting institution (Accountant in charge) Chen Jianfeng hereby
declare that the Financial Statements enclosed in this annual report are true, accurate and complete.
The prospective description regarding future business plan and development strategy in this
report does not constitute virtual commitment. The investors shall pay attention to the risk.
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.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 4
Chapter 3 Analysis of Main Business ........................................................................ 7
Chapter 4 Business Discussion and Analysis ............................................................. 9
Chapter 5 Important Matters .................................................................................... 22
Chapter 6 Changes in the shareholding of the company and shareholders.............. 30
Chapter 7 Information about Directors, Supervisors, Senior Management ............. 34
Chapter 8 Corporate Bonds ...................................................................................... 34
Chapter 9 The Financial Statements......................................................................... 35
Chapter 10 Documents for Future Reference......................................................... 147
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Definitions
Items Definitions
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Co., Ltd. , the Company’s actual controller
China Changan Automobile Group Corporation, old name: China South
China Changan Refers to
Industries automobile Co., Ltd., a subsidiary company of South Industries
Chongqing Changan Industry (Group) Co., Ltd., old name: Changan
Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a
Changan Industry Refers to
subsidiary company of South Industries, the controlling shareholder of the
Company before December, 2005
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd. , a subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co., Ltd. , a
International Company Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co. Ltd,，a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co. Ltd, a JV of the Company
CFME Refers to Changan Ford Mazda Engine Co. Ltd, a JV of the Company
Changan Suzuki Refers to Chongqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
CAPSA Refers to Changan PSA Automobiles Co., Ltd，a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., a JV of the Company
Changan Finance Refers to Changan Auto Finance Co.Ltd Company's Joint Stock Company
Financial Co. of CSGC Refers to Financial Co. of China South Industries Group Co., Ltd. ,
United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company
UPI Refers to
of China Changan
Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company
Hafei Group Refers to
of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a Joint Stock
CMAL Refers to
Company of China Changan.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile 、Changan B Stock Code 000625、200625
Listed on Shenzhen Stock Exchange
Company in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Company Limited
English
Legal representative Zhang Baolin
II. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Li Jun
No. 260, East Jianxin Road, Jiangbei District,
Contact address
Chongqing
Telephone 023-67594008
Fax 023-67866055
E-mail address cazqc@changan.com.cn
III. Others
1. Way of contact
Whether registration address, office address and its post code as well as website and email of the Company changed in the
reporting period or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in the
reporting period. See more details in Annual Report 2017.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
The newspaper appointed for information disclosure, the website for the publish of the semi-annual report appointed by CSRC
and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2017.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement over previous years accounting data due to changes of
accounting policies or accounting errors?
□ Yes √ No
Increase/decrease
Report period Same period of last year
y-o-y (%)
Operating revenue (Yuan) 35,642,832,190.04 33,555,213,109.46 6.22%
Net profit belonging to shareholders of
1,609,606,578.84 4,620,545,739.52 -65.16%
the listed company (Yuan)
Net profit belonging to shareholders of
the listed company after deduction of 695,716,688.41 3,556,761,447.08 -80.44%
non-recurring profit and loss (Yuan)
Net cash flow arising from operating
4,401,401,760.15 4,959,704,724.11 -11.26%
activities (Yuan)
Basic earnings per share (Yuan/Share) 0.34 0.96 -64.58%
Diluted earnings per share (Yuan/Share) 0.34 0.96 -64.58%
Return on equity (ROE) (%) 3.39% 10.42% Down 7.03%
Increase/decrease
Report period Same period of last year
y-o-y (%)
Total assets (RMB) 100,410,971,452.44 106,125,114,622.69 -5.38%
Net assets attributable to shareholder of
47,315,245,829.90 47,598,690,942.28 -0.60%
the listed company(RMB)
V. The differences between domestic and international accounting standards
1. Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √ Not applicable
No difference
VI. Non-recurring items and amounts
√ Applicable □ Not applicable
In RMB Yuan
Item Amount Illustration
Gain/loss of non-current assets 18,771,809.69
The government subsidies included in the current profits and losses (except
government subsidies closely related to corporate business, entitled in 1,116,231,219.32
fixed quota or quantity)
Current net profit from beginning to combined date of business
combination under common control
Investment income from disposing available-for-sale equity securities
Other non-business income and expenditures other than the above items -23,029,866.17
Interest on deferred payment of funds received by non-financial enterprises 8,091,557.41
Subtract: Influenced amount of income tax 180,608,049.13
Influenced amount of miniority shareholders’ equity (after tax) 25,566,780.69
Total 913,889,890.43 --
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –
non-recurring gains and losses” defined non-recurring items ,and“Public offering of securities information disclosure of the
company's information disclosure announcement No. 1 - non-recurring gains and losses”The items, defined as recurring items, are
listed in the announcement No. 1 and shall be explained.
□ Applicable √ Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gains
and losses to define a case of recurring profit or loss.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 3 Analysis of Main Business
I. The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□ Yes √ No
During the reporting period, the company's main business is the R&D, manufacturing and sale of cars, the R&D and production
of automobile engine products. Besides, the company integrates advantageous resources to actively develop travel services, new
retail, financial investments and so on and carry out multi-dimensional industrial layout.
Changan automobile always adheres to the mission of "leading the car civilization for the benefit of human life", and the
concept of "energy conservation, environmental protection, scientific and technological intelligence", vigorously develops new
energy and smart cars, guides the automobile civilization by the use of scientific and technological innovation, and provides
customers with high quality products and services. After years of development, the products cover low & middle class, wide range
and various series such as sedans, mini cars, buses, trucks, SUV, MPV, including the traditional fuel and new energy models, and the
engine platforms from 1.0L to 2.0L. The company owns many famous brands such as Changan passenger car, Oushang automobile,
Kaicheng automobile, Changan Ford, Changan Mazda, Changan SUZUKI, Changan PSA and so on. Up to now, the company has
successfully launched a series of classic brands such as Alsvin, CS series, Eado, Raeton, Oushang and Honor series; a series of
famous JV products such as new Focus, new Mondeo, Kuga, Edge, CX-5, Axela,Vitara, Alivio, DS7 and so on. At the same time, we
have launched new energy vehicles such as Eado EV, new Benben EV, and CS15 EV, which are admired by the market and loved by
the consumers.
II. Major changes in assets
1. Major changes in assets
□ Applicable √ Not applicable
No significant changes in major assets during the reporting period
2. Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
Driven by "the third-time entrepreneurship - innovation and entrepreneurship program", Changan Automobile is committed to
becoming a technology enterprise that leads smart travel products and services. It aims at building the world's leading car enterprise
driven by "innovation" with "efficiency" as the core competitiveness of the organization. Changan focuses on promoting the new
energy “Shangri-La” plan, the “Beidou Tianshu” intelligent plan, and the advanced technology promotion plan. It is promoting the
creation of three special platforms for new energy, realizing the industrialization of intelligent driving L2 into the market, and rapidly
realizing the industrial application of new technologies. In the first half of 2018, the company promoted the development of nearly
400 science and technology projects.
Great achievements have been made in the reform and development. The company has promoted a matrix management
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
model based on product development and marketing, and released the product development process CA-PDS4.0. The development
cycle has been shortened by 17%. "1/2 Project" has steadily went on. Average time of management process has been reduced by 68%,
and management efficiency has been greatly improved.
A series of new products have been released into the market on schedule. Eight new products, such as the second
generation of Eado, Eado DT, new CS75 and COS1° have been released into the market on schedule. H15TG-AA engine has been
successfully launched on the new CS75 as scheduled.
The application of advanced technology has increased. The L2 self-driving technology has been successfully launched on
CS55, and the APA4.0 (auto parking) has been successfully launched on the new CS75. 82 technical research projects such as Icar
platform and CA-MPA platform have went on smoothly. 10 major technical breakthroughs such as three-level automatic driving, fuel
cell and American standard collision regulations have been progressing smoothly and prepared for subsequent products.
Opening and cooperation have made progress. Changan has developed three major vehicle platforms, second-generation
power systems and three-in-one electric drive systems, and promoted the building of new energy platform steadily. The company has
cooperated with leading Internet companies such as Tencent, Huawei, Keda Xunfei, Horizon and Gaode to build an intelligent
automobile industry alliance. In April 2018, the company obtained the license of Chongqing Autopilot Road Test .
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 4 Business Discussion and Analysis
I. Overview
In the first half of 2018, the automobile industry carried out the decisions of the Communist Party Central Committee and the
State Council, insisted on the principle of innovation-driven, open and inclusive, and open to the outside world in an all-round way.
With the main line of supply-side structural reform to promote mass entrepreneurship and innovation, the automobile industry
accelerated the transformation and upgrading of the industry, solidly promoted the strategy of empowering the country through
manufacturing, and promoted the transformation of the industry from scale to quality. From January to June 2018, the production and
sales of China's automobile market maintained steady growth. The cumulative production and sales reached 14.085 million and
14.066 million, respectively up by 4.2% and 5.6% on a year-on-year basis. The sales growth rate accelerated by 1.8 percentage points
over the same period of last year. 11.775 million passenger vehicles were sold, up by 4.6% year-on-year over the same period.
Among them, the sales of basic passenger car increased by 5.5% and SUV increased by 9.7% year-on-year. Among the new energy
passenger vehicles, the production and sales of pure electric passenger vehicles reached 259,000, increasing by 95.9% year-on-year
with strong development momentum. Industry concentration was further intensified. The sales volume of the top ten enterprises in
the automobile sales totalled 12.517 million, with the growth rate of 6.0%, which was 0.4 percentage points higher than the industry
growth rate, accounting for 89% of the total vehicle sales and 0.3 percentage points higher than that of last year. The above data
comes from "China automobile industry production and sales express" (China Automobile Industry Association) and its industry
information release.
In the first half of 2018, Changan took "Vision 2025" as the guide and "strengthening efficiency, promoting brand, experience
orientation and innovation breakthrough" as the key, thoroughly implemented "the third-time entrepreneurship - innovation and
entrepreneurship program" and solidly promoted the enterprise transforming and upgrading. Changan held strong confidence, stood
up to competition, boldly reformed, generated revenue and reduced costs, and went all out to accomplish various business objectives.
In the first half of 2018, Changan sold 1.207 million vehicles, ranking fourth in China's automobile industry. The main achievements
during the reporting period are as follows:
1. Strongly promote strategic execution and vigorously promote efficiency
"The third-time entrepreneurship - innovation and entrepreneurship program" was promoted in an orderly way. The company
was guided by the innovation and entrepreneurship plan and focused on the “1143” strategy to promote the company's key business
strategy decomposition, clarify the development ideas and goals of each business segments, accelerate the decomposition of strategic
objectives, decompose to form a strategic target system and strengthen the key capabilities of product-oriented and resource matching.
The company established a business quality improvement matrix project team, vigorously promoted income increase, cost reduction,
waste reduction and built system capabilities to ensure efficiency improvement.
Changan vigorously promoted reform and innovation. "1/2 Project" was progressed steadily. The company streamlined process,
increased the proportion of authorization, and greatly improved operational efficiency. Organizational model continued to be
optimized. Business unit reform was promoted in an orderly manner. Online and offline resources were integrated. Emerging
business was actively explored. The matrix transformation in the R&D field achieved initial results and effectively shortened the
development cycle. The reform of marketing field achieved initial success and operating efficiency was improved. The company
innovated the incentive and restraint mechanism, implemented the whole staff and post matching, and gradually established the
position and salary system which was in line with the market.
2. Accelerate brand planning and enrich brand promotion channels
Changan completed the brand architecture design. Based on the upgrading of consumption, Changan optimized its existing
brand structure under the overall strategy of brand upwards and would form four independent business brands, such as mid-to
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
high-end passenger cars, Changan Automobile, Oushang Automobile and Kaicheng Automobile. Under the combined effect of the
matrix, Changan will comprehensively promote the brand upwards, meet different needs to deepen the market segments, provide
users with more focused and perfect products and services, and realize the experience upgrade of users and brands.
Changan innovated diversified brand activities, kept up with the trend of the times, focused on technology fashion and innovated
brand activities. The company exclusive titled Chongqing International Marathon, combined the enterprising corporate image with
the spirit of marathon and delivered brand concept of "driving forward with you". The company entered the field of automobile event
marketing. These series of competitions not only verified the excellent product quality, but also injected passion, vitality and
enterprising brand elements into Changan Automobile.
3. The application of intelligent technology is accelerated and the R&D strength continues to be in the lead
Advanced technology was accelerated for application. Intelligent technologies such as APA4.0 have been successfully launched
on the new CS75. L2 self-driving technology has been successfully launched on CS55, and various intelligent technology research
projects and major technical research projects have been rapidly advanced. In addition, Changan Automobile obtained the license of
Chongqing Autopilot Road Test in April 2018 after obtaining the license of California Road Driverless Vehicle Test in November
2017, indicating the speed up of Changan in the field of intelligence. In the field of intelligent manufacturing, the stamping and
welding workshop of Changan Automobile Liangjiang No. 2 Factory was recognized as the annual digital workshop and intelligent
factory in Chongqing in 2018. The welding automation rate reached 90%, which was 20% higher than the traditional factory's
production efficiency. The product defect rate was reduced by 20%. The delivery cycle was shortened by 15%. The operating cost
was reduced by 21% and the intelligent manufacturing capability was in the lead in China.
The intelligent strategy was upgraded. The company formulated the “Beidou Tianshu” plan and build intelligent car platforms in
stages with the support of automatic driving, intelligent network and intelligent interaction. The mass production vehicles will reach
L3 in 2020 and L4 in 2025.
The R&D strength continues to be in the lead. In the 2017-2018 evaluation of the national-recognized enterprise technology
center announced by the National Development and Reform Commission, Changan Automobile ranked third in the country and first
in the industry with 96.4 points. The R&D strength ranked first in the China's automobile industry for 10 consecutive years.
4. The new energy industry developing smoothly and "Shangri-La" plan gradually taking form
The company established a new energy technology company, integrated relevant functions, built an operation system of new
energy industry chain and built a platform for independent operation and introduction of social capital. At the same time, the
company will continue to explore innovative business models and strive to explore new energy profit paths.
The company improved product planning. Changan defined the development plan for new energy products for passenger cars,
and formulated a two-step strategy of entering the industry's first echelon (350,000 units) in 2020 and achieving one of the top two
brands (1.16 million units) in China in 2025. The company will promote key technology development, enhance core technology
capabilities and complete the three new energy vehicle platform by 2020.
5. Accelerate the integration of global resources and continue to explore emerging businesses
The company has reached strategic cooperation with more than ten industry leaders such as Tencent, Huawei, Baidu, Weilai
Automobile, Keda Xunfei, Intel, NXP and Alibaba, and launched a new model of integrated innovation to create a new highland for
technological innovation. Changan Automobile's "Changan trip" Internet + intelligent travel platform has invested more than 6000
vehicles in Chongqing, Nanjing, Hefei, Hangzhou, Xiamen and Quanzhou. At present, the platform is running on time-based leasing,
long-term and short-term rental business. It plans to complete the operation of 10,000 vehicles in 2018. It is expected to reach 40
cities and 50,000 vehicles in 2020. The company accelerated the integration of new energy resources and industrial chain layout,
cooperated with BYD to develop new energy battery technology, established a joint venture with Zhidou to produce low-speed
electric vehicles, built a pure electric platform with Weilai, and jointly promoted T3 with FAW and Dongfeng.
6. Increase marketing reform efforts to help Changan transform and upgrade
Changan Automobile has experienced the rapid growth in the past two decades. Under the background of complex changes in
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
the automobile industry, the company faces the challenges of the new industry transformation period of Internet, intelligence and new
energy. Changan is currently in a painful period of strategic transformation in terms of product structure, enterprise structure and new
business model adjustment. In face of increasingly fierce competition in the automobile market, on the one hand, Changan
Automobile takes efficiency as the core to further optimize the management system and reform and innovation, enhances the ability
and vitality to cope with the changes of the industry and market competition. On the other hand, it launches an all-round marketing
battle, adheres to market-oriented and customer-centered, accurately grasps the customer pain points, and continuously optimizes
marketing mode around customers and value creation. Changan carried out marketing promotion actions to increase market response
speed, increased investment in sales resources to promote sale, strengthened efforts in channel construction and formulated
differentiated channel development strategies. The customer operating efficiency was gradually improved, and complaint satisfaction
rate reached industry's leading level. It sped up the development of new marketing businesses and innovated models for profit
opportunities.
Changan Automobile will take the four strategic measures of "Changan brand promotion and development, integration of
resources development, construction of marketing innovation model, overseas market exploitation" as the grasp to comprehensively
promote "The third-time entrepreneurship - innovation and entrepreneurship program". Changan formed a clear brand structure to
achieve brand upward and transform from “operating products” to “operating brands”. Focusing on fast, accurate, interactive and
direct, Changan upgrades its customer service capabilities in full value chain and transforms from “serving users” to “operating
customers”. Changan builds an innovative marketing model, operating a new business model such as operating the ecosystem,
operating customers, developing e-commerce, sharing travel, time-sharing lease, and used cars, to transform from "providing
products + services" to "providing products + service products + travel solutions". Changan promotes the intelligent strategy of
"Beidou Tianshu" to become a leader of smart cars, accelerates the development of new energy resources with "Shangri-La" plan as
its guide, cooperates with cross-border enterprises strategically to form a new energy ecosphere, creating the safest, most convenient
and most intelligent experience, and transforms from "traditional products" to "intelligent + new energy products".
II. Analysis of Main Business
1. Overview
Are they identical with those disclosed in the "I. Overview" in the Chapter of Business Discussion and Analysis?
√ Yes □ No
Please refer to the content of "I. Overview" in the Chapter of Business Discussion and Analysis.
2. Y-o-y changes of main financial data
In RMB Yuan
Same period of last Y-o-y
Current period Reasons for changes
year(restated) increase/decrease
Operating
35,642,832,190.04 33,555,213,109.46 6.22%
revenue
Operating cost 30,614,845,704.45 28,792,755,690.32 6.33%
Operating
2,543,462,428.51 2,004,176,042.01 26.91%
expenses
General and
2,155,401,262.05 1,785,734,071.11 20.70%
administrative
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
expenses
Financial
-225,518,842.31 -246,821,602.15 8.63%
expenses
Income tax Increase in deferred income tax assets and decrease in
15,288,317.83 40,996,104.66 -62.71%
expense current income tax expenses
Subtotal of cash
inflow from
4,401,401,760.15 4,959,704,724.11 -11.26%
operating
activities
Subtotal of cash Mainly due to the decrease in cash received from the
inflow from investment income, the decrease in cash received from
-2,973,370,521.87 3,237,426,642.84 -191.84%
investment other investment activities and the increase in cash for
activities the acquisition of long-term assets
Subtotal of cash Mainly due to the decrease in cash paid for repayment
inflow from 869,502,774.20 -4,406,635,181.43 119.73% of debts and the decrease in cash paid for dividend
financing activity distribution
Net increase in
Mainly due to the decrease in cash inflow from
cash and cash 2,316,338,311.36 3,815,834,313.15 -39.30%
operating activities and investment activities
equivalents
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
3. Composition of Main Business
In RMB Yuan
Increase or
Increase or
decrease of
Gross decrease of Increase or decrease
Operating revenue Operating cost operating
profit operating of gross profit y-o-y
revenue
cost y-o-y
y-o-y
According to industries
Automobile
34,440,982,013.45 30,172,410,492.58 12.39% 5.59% 5.77% Down 0.16%
Production
According to products
Vehicles 34,368,280,256.20 30,082,686,676.78 12.47% 5.61% 5.87% Down 0.22%
According to region
China 33,128,902,612.24 28,783,568,072.99 13.12% 3.72% 3.44% Down 0.24%
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
III. Analysis of non principal business
□ Applicable √ Not applicable
IV. Assets and liability
1. The significant changes of the assets and liability
In RMB Yuan
Current period Same period of last year
Increase/
Ratio in Ratio in
Item decrease YoY change (%)
Amount total Amount total
(%)
assets(%) assets(%)
Monetary capital 24,067,745,140.49 23.97% 27,882,391,375.71 25.99% -2.02%
Accounts
1,925,729,920.41 1.92% 1,900,029,553.88 1.77% 0.15%
receivable
The ending balance of
inventory and its proportion of
total assets decreased
year-on-year mainly attributed
Inventory 4,726,421,476.59 4.71% 10,765,993,986.86 10.04% -5.33% to the optimization of auto
sales finance mode and the
reduction of the inventory
from cooperative financial
institutions
Investment
7,442,917.06 0.01% 7,669,628.62 0.01% 0.00%
property
Long-term equity
15,638,035,950.97 15.57% 14,116,985,988.70 13.16% 2.41%
investment
Fixed assets 18,456,584,832.13 18.38% 15,652,944,713.96 14.59% 3.79%
Construction in
4,728,241,031.94 4.71% 4,054,053,618.83 3.78% 0.93%
progress
Short-term loan 186,000,000.00 0.19% 188,810,327.67 0.18% 0.01%
Long-term loan 0.00 0.00% 19,980,912.00 0.02% -0.02%
2. Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Comprehensive Cumulative Impairment Purchasing Selling
Amount at year
Item income in the fair value provisions amount in the amount in Amount at year end
beginning
reporting period change in the reporting the
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
recorded into reporting period reporting
equity period period
Financial assets
Financial assets
16,436.50 -2,353.65 9,672.57 13,667.50
available for sales
Subtotal of
16,436.50 -2,353.65 9,672.57 13,667.50
financial assets
Total 16,436.50 -2,353.65 9,672.57 13,667.50
Whether the measurement attributes of main assets in the reporting period have significantly changed
□ Yes √ No
3. Property rights limits by the end of report period
In RMB Yuan
book value at the end of this
Item Limited Reason
year
Monetary fund 300,101,738.60 Acceptance bond
Notes receivable 545,823,326.93 Pledge for issuing bills payable
Mortgage loans and obtain the amount of commercial
Fixed assets 239,422,583.95
acceptance
Mortgage loans and obtain the amount of commercial
Intangible assets 45,835,735.69
acceptance
Total 1,131,183,385.17
V. Analysis of Investment
1. General information
√ Applicable □ Not applicable
External investment
Investment Amount in the report Investment Amount in the same period of last
Variance rate
period(Yuan) year(Yuan)
2,198,000,000 -
Particulars of investees
Company Name Principal business Proportion in the investees’ equity (%
Design, manufacture and sale of Peugeot,
Changan PSA Automobiles Co., Ltd Citroen and DS brand cars and light 50%
commercial vehicles
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Engineering and technical research and
experimental development; product design,
industrial design; technical development,
consultation, promotion, services, transfer;
China Automotive (Beijing) intelligent
sales of machinery and equipment, hardware
network union Automotive Research 8.33%
and electrical, electronic products, electronic
Institute Co., Ltd.
components; import and export of goods,
technology import and export, import and
export agent; technical testing, property
management
Technical development, technical consultation,
technical services, technology transfer;
Beijing Wutong Chelian Technology Co., economic and trade consultation; design,
49%
Ltd. production, agency, advertising; import and
export of goods, technology import and export;
sales of self-developed products
Automobile and parts import and export,
Changan Automobile Russia Co., Ltd. 100%
automobile distribution and other services
2. Major equity investment in the reporting period
√ Applicable □ Not applicable
Progress on
Company Principal Investment Investment Share-holding Capital Investment Any Disclosure Disclosure
Partner book closing
name business mode amount ratio source period litigations date(in case) index(in case)
date
Design, Announcement
Capital
manufacture on Related
increase not
and sale of Transactions of
completed,
Changan PSA Peugeot, Capital Increase
Increasing Its own PSA Peugeot Indefinite industrial and
Automobiles Citroen and 1,800,000,000 50% No 2018-01-13 to Changan
capital capital Citron duration commercial
Co., Ltd DS brand cars Peugeot Citroen
registration
and light Automobile Co.,
procedures not
commercial Ltd. (Bulletin
completed
vehicles No: 2018-03)
China Engineering China First Announcement
Establishment
Automotive and technical Automobile of the 29th
completed,
(Beijing) research and Co., Ltd., Meeting of the
industrial and
intelligent experimental Newly Its own Dongfeng Indefinite 7th Board of
50,000,000 8.33% commercial No 2018-04-04
network union development; established capital Motor Group duration Directors of
registration
Automotive product Co., Ltd., Chongqing
procedures
Research design, Guangzhou Changan
completed
Institute Co., industrial Automobile Automobile
15
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Ltd. design; Group Co., Company
technical Ltd., Beijing Limited
development, Automotive (Bulletin No:
consultation, Research 2018-13)
promotion, Institute Co.,
services, Ltd.,
transfer; sales Zhengzhou
of machinery Yutong Bus
and Co., Ltd.,
equipment, Jiangling
hardware and Motors
electrical, Corporation,
electronic Zhejiang Asia
products, Pacific
electronic Mechanical
components; and Electrical
import and Co., Shanghai
export of Baolong
goods, Automobile
technology Technology
import and Co., Ltd.,
export, import Huizhou
and export Desai Xiwei
agent; Automotive
technical Electronics
testing, Co., Ltd.,
property China
management Automotive
Technology
Research
Center Co.,
Ltd.,
Enlighten
Cloud Control
(Beijing)
Technology
Co., Ltd.
Technical Announcement
Establishment
Beijing development, Tencent of the 31st
completed,
Wutong technical Landway Meeting of the
Newly Its own Indefinite industrial and
Chelian consultation, 98,000,000 49% (Shenzhen) No 2018-04-12 7th Board of
established capital duration commercial
Technology technical Technology Directors of
registration
Co., Ltd. services, Co., Ltd. Chongqing
procedures
technology Changan
16
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
transfer; completed Automobile
economic and Company
trade Limited
consultation; (Bulletin No:
design, 2018-18)
production,
agency,
advertising;
import and
export of
goods,
technology
import and
export; sales
of
self-develope
d products
Announcement
of the 33st
Automobile Meeting of the
and parts 7th Board of
The approval
Changan import and Directors of
of the
Automobile export, Increasing Its own Indefinite Chongqing
250,000,000 100% - Ministry of No 2018-05-07
Russia Co., automobile capital capital duration Changan
commerce is
Ltd. distribution Automobile
required
and other Company
services Limited
(Bulletin No:
2018-27)
Total -- -- 2,198,000,000 -- -- -- -- -- -- -- --
3. Major non-equity investment in the reporting period
Please refer to Notes 7 Item 13 “Construction in progress” in the Financial Statement.
4. Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
Opening Opening Closing Closing
Initial Closing Gain/loss in
Company Company equity equity equity equity Accounting Equity
investment book value the reporting
name variety Holdings holding holdings Holdings title source
cost (Yuan) (Yuan) period (Yuan)
(share) ratio (share) (%)
17
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
(%)
Tradable
Southwest Securities Initial
50,000,000 35,500,000 0.63% 35,500,000 0.63% 136,675,000 - financial
Securities Firm investment
assets
(2) Derivative Investments
□ Applicable √ Not applicable
5. Use of raised funds
□ Applicable √ Not applicable
VI. Selling of major assets and major equity
1. Selling of major assets
□ Applicable √ Not applicable
There is no selling of major assets.
2. Selling of Equity
□ Applicable √ Not applicable
There is no selling of major equity.
VII. Analysis of main holding companies and equity companies
√ Applicable □ Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10% of net profits
Unit: Ten Thousand Yuan
Main
Registered Equity
Name Main businesses Total assets operating Net profit
capital held
income
Hebei Changan Automobile Co., Ltd. 46,469 RMB 94.22% Produce and sell auto and parts 186,259 211,401 3,405
Nanjing Changan Automobile Co., Ltd. 60,181 RMB 84.73% Produce and sell auto and parts 168,548 101,652 9,840
Hefei Changan Automobile Co., Ltd. 77,500 RMB 100% Produce and sell auto and parts 261,293 200,943 -3,933
Baoding Changan Bus Manufacture
3,000 RMB 100% Produce and sell auto and parts 346,553 175,808 1,125
Co., Ltd.
Changan PSA Automobiles Co., Ltd 400,000 RMB 50% Produce and sell auto and parts 747,028 45,749 -34,346
Changan Ford Automobile Co., Ltd 24,100 USD 50% Produce and sell auto and parts 4,317,868 3,064,316 174,711
Changan Mazda Automobile Co., Ltd 11,097 USD 50% Produce and sell auto and parts 1,503,100 1,106,517 127,090
18
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan newly established four wholly owned subsidiaries, Xiamen Changan New Energy
Automobile Sales & Service Co., Ltd., Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd., Fuzhou Fuqing
Changan New Energy Automobile Sales & Service Co., Ltd. and Chongqing Changan New Energy Automobile Technology Co., Ltd..
Therefore, they are included in the consolidated statements in 2018. Shanghai Changan Automobile Engineering Technology Co., Ltd.
was liquidated during the reporting period. Therefore, it is no longer included in the consolidated statements in 2018.
Acquisition and disposal of subsidiaries On the overall production and operation
Name
during the reporting period and performance impact
Xiamen Changan New Energy Automobile
Newly established None
Sales & Service Co., Ltd.
Guangzhou Changan New Energy Automobile
Newly established None
Sales & Service Co., Ltd.
Fuzhou Fuqing Changan New Energy
Newly established None
Automobile Sales & Service Co., Ltd.
Chongqing Changan New Energy Automobile
Newly established None
Technology Co., Ltd.
Shanghai Changan Automobile Engineering
Liquidation None
Technology Co., Ltd.
VIII. Structural main business under the company control
□ Applicable √ Not applicable
IX. Forecast for the operating performance of Jan.-Sep. 2018
The accumulated net profit forecast for the beginning of the year to the end of the next reporting period may be a loss or a warning
and explanation of a significant change compared with the same period of the previous year
□ Applicable √ Not applicable
X. Possible risks and coresponding measures
1. Policy and regulatory risks: the implementation of emission laws and regulations, the relaxation of share ratio, tariff adjustment
and the tightening of control over the excessive pollutants have a great impact on the development and pattern of the automobile
industry.
Actions: keep up with policy trends, strengthen policy research, and make good response plans.
2. Increasing market competition: China's auto market has entered a low-speed growth trend. Regardless of joint ventures or
independent products, they are seriously homogenized, especially for cars and SUVs of 70-150 thousand yuan, with a product
concentration of 45%.
Actions: accelerate the speed of product replacement, highlight the individualization and differentiation of products, rapidly increase
the market scale of independent products, and grasp the strategic opportunities of "the Belt and Road", actively expand overseas
19
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
markets, and enhance the competitiveness of the international market.
3. Business model risks: with the rapid development of technologies such as smart interconnection and big data, various capitals
such as speculative capital, non-industrial capital, and cross-border capital have flooded into the industry, disrupted the industry,
caused disorder competition in the market and changed the traditional business model.
Actions: Changan Automobile will seize the strategic opportunity and realize the transformation from a traditional automobile
manufacturing enterprise to a modern technology service enterprise and become an internationally competitive Chinese brand.
XI. Interviews and visits in the reporting period
√ Applicable □ Not applicable
Date Manner Object Content discussed and material offered
For details, see the January 5, 2018 Shenzhen stock exchange interactive
2018.1.4 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 4, 2018 investor
relations activities record sheet
For details, see the January 15, 2018 Shenzhen stock exchange interactive
2018.1.11 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 11, 2018 investor
relations activities record sheet
For details, see the January 19, 2018 Shenzhen stock exchange interactive
2018.1.17 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 17, 2018 investor
relations activities record sheet
For details, see the January 19, 2018 Shenzhen stock exchange interactive
2018.1.18 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan automobile: February 18, 2018 investor
relations activities record sheet
For details, see the January 25, 2018 Shenzhen stock exchange interactive
2018.1.24 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 24, 2018 investor
relations activities record sheet
For details, see the January 30, 2018 Shenzhen stock exchange interactive
2018.1.26 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 26, 2018 investor
relations activities record sheet
For details, see the February 13, 2018 Shenzhen stock exchange interactive
2018.2.12 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: February 12, 2018 investor
relations activities record sheet
For details, see the March 8, 2018 Shenzhen stock exchange interactive
2018.3.6 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: March 6, 2018 investor
relations activities record sheet
For details, see the March 12, 2018 Shenzhen stock exchange interactive
2018.3.8 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: March 8, 2018 investor
relations activities record sheet
For details, see the March 16, 2018 Shenzhen stock exchange interactive
2018.3.13 On-Site Survey Institution
(http://irm.cninfo.com.cn) on the Changan Automobile: March 13, 2018 investor
20
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
relations activities record sheet
For details, see the March 19, 2018 Shenzhen stock exchange interactive
2018.3.15 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: March 15, 2018 investor
relations activities record sheet
21
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 5 Important Matters
I. Annual shareholders meeting and interim shareholders meeting during the reporting
period
1. Shareholders meeting during the reporting period
Investors'
Meeting
Type participatio Holding Date Disclosure Date Disclosure Index
Session
n ratio
http//www.cninfo.com.cn
2017 Annual
2017Annual Shareholders Meeting Resolution
Shareholders Annual 57.32% May, 18th, 2018 May, 19th, 2018
Announcement(Announcement Number:
Meeting
2018-34)
http//www.cninfo.com.cn
2018 The First
2018 The First Interim Shareholders
Interim
Interim 44.44% Jan, 30th, 2018 Jan, 31th, 2018 Meeting Resolution
Shareholders
Announcement(Announcement Number:
Meeting
2018-07)
2. Preferred shareholders’ request to hold the interim shareholders meeting with restoration of voting
rights
□ Applicable √ Non-applicable
II. Preplan for Company common stock profit distribution and capital reserves converting
into share capital in the reporting period
□ Applicable √ Non-applicable
III. Commitments that company, shareholders, actual controllers, the acquirer, directors,
supervisors and senior management personnel or other affiliated parties during the report
period fulfilled and by the end of report period not yet fulfilled.
period
Commitment Commitment for
commitments Commitment content Performance
entity time commitm
ent
Share limited When the company 36 China Changan did not sell company shares
China Changan Oct., 2016
commitment non-publicly subscribes for months during the reporting period
22
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
new shares of listed
companies in 2016, the
newly acquired shares of
listed company can not be
transferred within 36 months
since the listing, but can be
transferred after 36 months
according to relevant
provisions of China
Securities Regulatory
Commission and Shenzhen
Stock Exchange.
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
made the commitment: In The Harbin Hafei Automobile Industry
Other small
two consecutive years profit September, Group Co at present is still running at a
shareholders China Changan
of Harbin Hafei Automobile 2010 loss, The conditions have not yet reached
commitment
Industry Group Co, With the the profitable for two consecutive years.
continuous development
ability and management
level is improved
significantly.Under such
condition, the enterprise will
be affiliated into the
company.
IV. The appointment and dismissal of accounting firms
Is the semi-annual financial report audited?
□ Yes √ No
V. The board of directors, and supervisors explaining the "non standard audit report" from
the accounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "non standard audit report" of last year
□ Applicable √ Not-applicable
23
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
VII. Bankruptcy restructuring related matters
□ Applicable √ Not-applicable
During the report period, no bankruptcy restructuring related matters occur.
VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not-applicable
During the reporting period, there’s no punishment and rectification.
X. The integrity of company and its controlling shareholder, actual controller
□ Applicable √ Not-applicable
XI. Company equity incentive plan, the implementation of the employee stock ownership plan
or other staff incentives.
√ Applicable □ Not-applicable
At the 30th meeting of the 7th board of directors, 《A bill to cancel some stock options of the Company》was deliberated and
passed on Apr 17th, 2018, and 10,826,600 stock options would be cancelled. For details, please refer to 《The announcement of
cancellation about some stock options of the company》(Announcement Number: 2018-23) on Apr 18th, 2018. On May 24th, 2018,
the company disclosed 《Notice on the completion of cancellation about some stock options》(Announcement Number: 2018-35),
according to relevant regulations, the company applied to the shenzhen branch of China securities registration and settlement co.,
LTD for the cancellation of stock options and completed the cancellation procedures.
XII. Significant related party transactions
1. Related transactions related to day-to-day operation
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
2. Assets or equity acquisition, sales related transactions
□ Applicable √ Not-applicable
No related transaction of the acquisition or sale of assets or shares occurred during the reporting period.
24
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
3. Related transactions of common investment
□ Applicable √ Not-applicable
During the reporting period, the company has no related transactions of common investment
4. Related rights and debt relations
√ Applicable □ Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
Whether there is any non-business related credits and debts
□ Applicable √ Not-applicable
There is no non-operating associated credits and debts during the reporting period.
5. Other significant related transactions
√ applicable □ not applicable
Related queries in disclosure website of temporary announcement of related transactions
Temporary
Name of temporary announcements Temporary announcement site name
announcement date
Announcement about related transaction of replenishment chang 'an
Jan, 13th, 2018 http://www.cninfo.com.cn
Peugeot Citroen automobile co., LTD
Related Transactions Announcement about approving of United
Apr, 4th, 2018 http://www.cninfo.com.cn
Prosperity (Hong Kong)Investment Co., Ltd trade financing
Related transactions announcement about renewing 《Daily
Framework Agreement For Related Transactions》、《Property Apr, 4th, 2018 http://www.cninfo.com.cn
Leasing Framework Agreement》、《Integrated Service Agreement》
Announcement about increasing estimated amount of 2018 daily
Apr, 18th, 2018 http://www.cninfo.com.cn
related transaction
Related Transactions Announcement that China South Industries
May, 7th, 2018 http://www.cninfo.com.cn
Group Co., Ltd. provides financial service for the company
Related transaction announcement thet Chongqing Automobile
May, 7th, 2018 http://www.cninfo.com.cn
Finance Co., Ltd. provides financial services
XIII. The non-operating occupation for the capital by the controlling shareholder of the
listed company and its related parties
□ Applicable √ Not-applicable
25
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
XIV. Major contract and its performance
1. Trusteeship, contracting, leasing matters
(1) Trusteeship
□ Applicable √ Not-applicable
Information about Trusteeship
There is no Trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not-applicable
Information about contracting
There is no contracting during the reporting period.
(3) Leasing
√ Applicable □ Not-applicable
Information about leasing
Related party rental situation can be found in the note 12 of financial statements 4 (3) related party relationships and transactions.
Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□ Applicable √ Not-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2. Major guarantee
□ Applicable √ Not-applicable
There’s no major guarantee during the report period.
3. Other major contract
□ Applicable √ Not-applicable
There’s no other major contract during the reporting period.
XV. Social responsibility
1. Significant environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√ Yes □ No
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonia
nitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc. All departments put pollution control facilities as well as
production equipment into preventive maintenance management of equipment with normal operation, pollutant discharge up to
normal standard, and the total amount of discharged key pollutant is confined with the total amount of indicators. Solid wastes are
separately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag, phosphated residue and
26
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
waste solvent, etc. The units with hazardous waste business qualification are entrusted to dispose hazardous wastes. The general
industrial solid wastes and household garbage are disposed by the units with qualification according to the requirement of the local
government. The waste electrical and electronic products are disassembled by the units with qualification and are safely disposed by
the units with hazardous waste business qualification.
(1) Strictly implement Disclosure System of Information
In the first half of 2018, Key sewage units of Changan Automobile: Yuzui Base of OuShang Automotive Division, Yuzui Base of
Jiangbei Engine Factory, Yubei Factory, Beijing Changan, Hefei Changan, Nanjing Changan. The original national control
units(Yuzui Base of OuShang Automotive Division, Yuzui Base of Jiangbei Engine Factory, Yubei Factory) strictly carry out
self-monitoring in accordance with the "National Key Monitoring Enterprise Self-monitoring and Information Disclosure Approach
(Trial)". Self-monitoring program, monitoring results, pollution monitoring annual reports are disclosed on the "National Key
Monitoring Enterprise Self-monitoring and Information Disclosure Platform". Other key sewage units disclosed the information
according to the requirements of environmental protection departments of local governments.
(2) Strictly implement "EIA system" and environmental protection "three simultaneous" systems of the construction
project
Carry out the company's environmental impact assessment of “newly established, rectified, expanded projects” and
implement"EIA system" of the construction project according to the regulations. Strengthen the review on pollutant factors, the total
amount of emission and pollution control facilities during the environmental impact assessment. Strictly supervise the
implementation of “simultaneous design, simultaneous construction, and simultaneous acceptance” of project environmental
protection facilities to ensure full compliance between project construction and environmental impact assessment approval. In the
first half of 2018, the Company obtained "New Energy Electric Drive Assembly System Project EIA Approval",and completed the
EIA acceptance about Dianjiang Test Site Project(Phase II)、PDC Project(Phase I)、Passenger Car Project.
(3) Carry out environmental protection risk management, and enhance emergency response capacity
Continue to carry out environmental protection emergency drills to enhance the response capacity to environmental emergencies.
In the first half of 2018, the Company carried out a company-level environmental emergency drills(emergency drill for passenger
vehicle wastewater discharge exceeding standard in Yuzui), more than 80 emergency drills at the factory and workshop. The scene
settings, emergency handling, impact range, exercise script, evaluation and other aspects have been greatly improved.
Strengthen control of company's environmental risk units to prevent sudden environmental incidents.
(4) Detailed pollutant discharge of the company:
During the reporting period, the Company had 216 air pollutant discharge ports and 14 water pollutant discharge ports. The
implemented emission standards include the national "Integrated Wastewater Discharge Standard", Beijing "Water Pollutant
Discharge Standard", the national "Air Pollutant Integrated Emission Standard", Chongqing "automobile vehicle manufacturing
surface coating air pollutant discharge standards" "Air Pollutant Integrated Emission Standard", Beijing "automobile vehicle
manufacturing industry (coating process) air pollutant discharge standards", the national "industrial enterprises boundary
environmental noise emission standards" and so on. The total amount of pollutants approved: COD170 tons, 28 tons of ammonia.
The company's pollutants can meet the corresponding emission standards with no extral emissions, no major environmental problems
and no rectification.
In 2018, the company intended to implement the emission reduction measures with the investment of 145 million yuan. The
main projects include: Nanjing Changan, Changan Bus Light Vehicle VOC Project; Changan Ford Chongqing Factory CAF2/3 VOC
Governance Project(Phase II); Yubei Factory, Oushang Automotive Division, Beijing Changan Sludge Drying Project.
2. Fulfill social responsibility of targeted poverty alleviation
√ Applicable □ Not applicable
27
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
In the first half of 2018, Changan Automobile actively responded to the "13th Five-Year Plan for Poverty Alleviation" and fully
implemented the spirit of the 19th Party Congress and the Central Poverty Alleviation Work Conference. In accordance with the
arrangements of the Party Central Committee and the State Council, and in light of the actual situation of enterprises, we will
earnestly promote donations such as precise poverty alleviation, public welfare relief, and public utility construction, and strive to
promote economic and social development in poverty-stricken areas.
(1) In the first half of 2018, precise poverty alleviation in "two counties" of Yunnan
The company donated RMB 11 million to Luxi County.
On education poverty alleviation projects: firstly, invest 2 million yuan to improve the teaching facilities of Santang Town
Junior Middle School; secondly, invest 1.77 million yuan to build Changan Automobile (Luxi) Training Base Project (Phase II).
On the poverty alleviation project of people's livelihood: invest 7.23 million yuan to build a rural domestic garbage collection
and transportation facility project in Luxi County.
The company donated RMB 11 million to Yanshan County.
On the industrial poverty alleviation project: firstly, invest 2.5 million yuan to build an apple planting project in Ashe Township;
secondly, invest 2 million yuan to build SanQi planting project in Panlong Township; thirdly, invest 1 million yuan for the
commercial cattle breeding project in Weimo Township; finally, invest 1 million yuan in the pepper planting project in Ganhe
Township.
On education poverty alleviation projects: firstly, invest 2 million yuan for the construction of the student dormitory building in
Awenzhai Primary School; secondly, invest 1.4 million yuan for the student loan program.
On the poverty alleviation project of people's livelihood: firstly, invest 1 million yuan in township hospitals equipment
configuration project; secondly, invest 100,000 yuan in disaster relief projects.
(2) In the first half of 2018, precise poverty alleviation in Pengshui County, Chongqing.
According to the "Notice of the Chongqing Municipal Development and Reform Commission's Leading Group for Poverty
Alleviation on Carrying out Donation Assistance and Reporting Poverty Alleviation Materials"( Yu Development and Reform
Commission of the Poverty Alleviation Group issued [2018] Document No. 2), Changan Automobile donated 300,000 yuan to
Pengshui County.
Chang'an Automobile Statistics on Poverty Alleviation in the first half of 2018
Index Unit Quantity / Details
Ⅰ. Total —— ——
1.funds 10 thousand RMB 2230
2. Material 10 thousand RMB ——
Ⅱ. Subdivision —— ——
1. Industrial poverty alleviation —— ——
1) Apple Planting Project in Ashe Township；
2) Sanqi Planting Project in Panlong Township;
1.1 Industrial poverty alleviation project type ——
3) Cattle Breeding Project in Weimo Township;
4) Pepper Planting Project in Ganhe Township.
1.2 Industrial poverty alleviation project investment funds 10 thousand RMB 650
2. Education poverty alleviation —— ——
2.1 Funding for poor students 10 thousand RMB 140
2.2 Improve educational resources in poor areas 10 thousand RMB 577
28
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
3. Medical and health poverty alleviation —— ——
3.1 Medical and health resources invested in poverty areas 10 thousand RMB 110
4. Other projects - people's livelihood poverty alleviation —— ——
4.1 Amount of investment 10 thousand RMB 753
(3) Follow-up precision poverty alleviation plan
According to the "Notice of the Jiangbei Agricultural Committee of Chongqing on Applying the 2018 Counterpartment
Assistance Project" (Jiangbei Agricultural Committee [2018] No. 128) , the company will carry out poverty alleviation donations for
Youyang County in the second half of 2018.
XVI. Other important matters
√ Applicable □ Not applicable
On Mar. 16th, 2018, the company disclosed 《Chongqing Changan Automobile Co., Ltd. announcement on the free transfer of
state-owned shares of controlling shareholders》(Announcement Number: 2018-11). The controlling shareholder of the company——
China Changan Automobile Group Co., Ltd. intends to transfer about 1,035,312,673 shares of Changan Automobile (accounting for
21.56% of the total share capital) to China South Industries Group Co., Ltd. without charge.
On May 31th, 2018, the company disclosed《Announcement of Chongqing Changan Automobile Co., Ltd. on the free transfer of
the controlling shareholder's state-owned shares approved by the SASAC》(Announcement Number: 2018-39). On Jun 21th, 2018,
the company disclosed 《 Announcement on the completion free transfer of controlling shareholders' state-owned shares 》
(Announcement Number: 2018-42) and confirmed the transfer registration process of the above-mentioned free transfer of shares on
Jun 15th, 2018.
XVII. Important matters of company subsidiaries
□ Applicable √ Not-applicable
29
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 6 Changes in the shareholding of the company and
shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: one share
Balance before current Balance after current
Addition and deduction(+，-) during change
change change
Provident
Ratio Additional Stock Ratio
Quantity fund other Quantity Quantity
(%) issued dividend (%)
transfer
Non-circulated shares 139,781,303 2.91% 139,781,303 2.91%
1. State-owned legal
139,762,403 2.91% 139,762,403 2.91%
person shares
2. Senior management
18,900 0.00% 18,900 0.00%
personnel shares
Circulated shares 4,662,867,208 97.09% 4,662,867,208 97.09%
1. Domestic listed
3,760,881,066 78.31% 3,760,881,066 78.31%
RMB shares
2. Domestic listed
901,986,142 18.78% 901,986,142 18.78%
foreign shares
Total shares 4,802,648,511 100.00% 4,802,648,511 100.00%
Reason of stock changes
□ Applicable √ Not-applicable
Approval of stock changes
□ Applicable √ Not-applicable
Ownership transfer of stock change
□ Applicable √ Not-applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share and
diluted earnings per share, the net assets per share belonging to the common shareholder of the company
□ Applicable √ Not-applicable
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose
30
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
□ Applicable √ Not-applicable
2. Change in Non-circulated shares
√ Available □ Not-available
Unit: one share
Non-circulated Non-circulated
Name of Decrease during the Increase during the Reason for non-circulated Date for the
shares held at the shares held at the
shareholders reporting period reporting period shares circulated shares
year-beginning year-end
China Changan Non-public offering
Automobile Co., 139,762,403 - - 139,762,403 shares of 139,762,403 2019-10-14
Ltd. in 2016
6 months after
Zhu Huarong 18,900 - - 18,900 Executive lock stocks
the retirement
Total 139,781,303 - - 139,781,303 -- --
II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: one share
At the end of the report period, the total number of
196,868. A shareholders: 168,019. B shareholders: 28,849.
shareholders
Holding more than 5% of the shareholders, or top 10 shareholders situation
Percentage Increases and Non-circulat Pledged/ Frozen
Circulated
Nature of of total Shares held at decreases ed shares cases
Name of shareholders shares held at
Shareholders shares the year-end during the held at the Share
the year-end amount
(%) report period year-end status
China South Industries State-owned legal No pledge
21.56% 1,035,312,673 1,035,312,673
Group Co., Ltd. person shares or freeze
China Changan State-owned legal No pledge
19.33% 928,044,946 -1,035,312,673 139,762,403 788,282,543
Automobile Co., Ltd. person shares or freeze
domestic general
China securities No pledge
legal person 4.55% 218,580,149 16,535,328
finance Co, Ltd or freeze
shares
United Prosperity foreign legal No pledge
2.23% 107,267,728
(Hongkong) person shares or freeze
31
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Investment Co.,
Limited
GIC PRIVATE foreign legal No pledge
1.84% 88,270,713 7,377,141
LIMITED person shares or freeze
domestic general
Central Huijin No pledge
legal person 1.15% 55,393,100
Investment Ltd. or freeze
shares
DRAGON BILLION
foreign legal No pledge
SELECT MASTER 0.85% 40,597,114 34,577,045
person shares or freeze
FUND
Anbang Asset
Mgmt-China fund, finance No pledge
0.67% 32,070,942 -
Merchants Bank- products, etc. or freeze
Anbang Asset-China
Anbang Asset Mgmt－
fund, finance No pledge
China Minsheng Bank 0.65% 31,082,094
products, etc. or freeze
－Anbang Asset-China
MONETARY
foreign legal No pledge
AUTHORITY OF 0.56% 26,917,178 1,008,881
person shares or freeze
SINGAPORE
Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan
Explanation on the relationship and the Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity
action alike of above shareholders (Hong Kong) Investment Co., Limited. belong to the concerted actor regulated by “Disclosure Administration
of Shares Change Information of The Listed Company”.
The ten largest circulated shareholders
Shares type
Name of shareholders Shares at the year end
Type Amount
China South Industries Group Co., Ltd. 1,035,312,673 RMB ordinary shares 1,035,312,673
China Changan Automobile Co., Ltd. 788,282,543 RMB ordinary shares 788,282,543
China securities finance Co, Ltd 218,580,149 RMB ordinary shares 218,580,149
Domestic listed foreign
United Prosperity (Hongkong) Investment Co., Limited 107,267,728 107,267,728
shares
Domestic listed foreign
GIC PRIVATE LIMITED 88,270,713 88,270,713
shares
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
Domestic listed foreign
DRAGON BILLION SELECT MASTER FUND 40,597,114 40,597,114
shares
Anbang Asset Mgmt-China Merchants Bank- Anbang 32,070,942 RMB ordinary shares 32,070,942
32
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Asset-China
Anbang Asset Mgmt－China Minsheng Bank－Anbang
31,082,094 RMB ordinary shares 31,082,094
Asset-China
Domestic listed foreign
MONETARY AUTHORITY OF SINGAPORE 26,917,178 26,917,178
shares
Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual
The top 10 shareholders to sell circulated shares, and the controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and
infinite tradable relationship between shareholders and its wholly owned subsidiary United Prosperity (Hong Kong)Investment Co., Limited
top 10 shareholders or concerted action belong to the concerted actor regulated by “Disclosure Administration of Shares Change
Information of The Listed Company”.
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 √ Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchase
transactions during the reporting period
IV. The change of the controlling shareholders and theactual controllers
During the reporting period the change of controlling shareholders
□ Available √ Not- available
No changes in controlling shareholders during the reporting period.
The change of the actual controllers during the reporting period
□ Available √ Not- available
No changes in the actual controllers during the reporting period.
33
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 7 Information about Directors, Supervisors, Senior
Management
I. Share ownership of directors, supervisors and senior managers
□ Available √ Not- available
The share ownership of the directors, supervisors and senior managers has no change during the reporting period. For details, plaese
refer to 2017 annual report.
II. Departure and Hiring information of the directors, supervisors and senior manager
Name Duties Type Date Reason
Director, Vice President, Departure Jan 27th, 2018 Job arrangement
Wang Kun Secretary of the board of
directors
Cao Xingquan Independent director Election May 19th, 2018 Appointment due to work
Zhang Deyong Director Election May 19th, 2018 Appointment due to work
Zhang Dongjun Director Election May 19th, 2018 Appointment due to work
Wang Xiaoxiang Director Departure May 26th, 2018 Job arrangement
Gong Bin Vice President Departure May 29th, 2018 Job arrangement
Huang Zhongqiang Vice President Departure May 29th, 2018 Job arrangement
Luo Minggang Vice President Departure May 29th, 2018 Job arrangement
Chapter 8 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange and fails to be fully paid
up or not due on maturity until the approval of the semi-annual report
□ Yes √ No
34
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 9 The Financial Statements
I. Auditing Report
Semi-annual report is audited
□ Yes √ No
No audit on the semi-annual financial report.
II. Financial statement
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account Ending Balance Opening Balance
Current assets:
Cash 24,067,745,140.49 22,631,536,496.53
Notes receivable 18,390,476,412.74 29,156,481,085.20
Accounts receivable 1,925,729,920.41 1,806,807,193.04
Prepayments 1,004,033,538.79 1,102,239,931.33
Interest receivable 55,081,274.30 42,184,263.88
Other receivables 2,096,542,096.16 1,645,276,455.04
Inventories 4,726,421,476.59 4,666,183,421.80
Other current assets 2,195,054,890.51 1,705,910,530.43
Total current assets 54,461,084,749.99 62,756,619,377.25
Non-current assets:
Available-for-sale financial assets 564,227,000.00 541,917,000.00
Long-term receivables
Long-term equity investments 15,638,035,950.97 14,098,523,896.97
Investment properties 7,442,917.06 7,556,272.84
Fixed assets 18,456,584,832.13 19,044,528,950.70
Construction in progress 4,728,241,031.94 3,234,173,155.52
Construction materials
Liquidation of fixed assets 1,342,869.14 4,716.98
Intangible assets 4,011,477,965.19 4,047,945,129.67
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Devlopment expenditure 956,013,379.97 836,638,328.10
Goodwill 9,804,394.00 9,804,394.00
Long-term deferred expenses 14,569,071.92 13,545,589.39
Deferred tax assets 1,562,147,290.13 1,533,857,811.27
Total non-current assets 45,949,886,702.45 43,368,495,245.44
Total assets 100,410,971,452.44 106,125,114,622.69
Current liabilities:
Short-term loans 186,000,000.00 185,000,000.00
Notes payable 20,222,535,762.78 18,002,926,579.81
Accounts payable 15,501,582,938.54 21,902,826,194.15
Advances from customers 1,935,292,614.32 3,878,382,556.43
Payroll payable 775,438,321.46 1,640,885,322.33
Taxes payable 206,628,829.13 394,321,397.14
Interest payables
Dividend payables 2,157,870,026.46 79,742.80
Other payables 1,820,125,863.40 2,599,013,410.98
Non-current liabilities due within one
13,423,420.00 13,151,946.67
year
Other current liabilities 3,792,413,587.50 3,562,154,645.82
Total current liabilities 46,611,311,363.59 52,178,741,796.13
Non-current liabilities:
Long-term loans - 6,575,973.33
Bonds payable
Long-term payable
Long term payroll payable 105,773,348.51 113,012,000.00
Special payable 216,541,226.77 290,607,151.02
Contingent liabilities 2,542,043,126.47 2,423,958,274.70
Deferred earnings 3,730,623,896.39 3,627,817,419.05
Deferred tax liabilities 17,069,250.00 21,222,750.00
Total non-current liabilities 6,612,050,848.14 6,483,193,568.10
Total liabilities 53,223,362,211.73 58,661,935,364.23
Owners’ equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,099,405,956.94 5,099,405,956.94
Less: Treasury shares
36
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Other Comprehensive Income 329,988,957.43 82,959,423.84
Special reserves 45,988,791.91 28,279,733.06
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 34,635,889,357.12 35,184,073,061.94
Equity attributable to owners 47,315,245,829.90 47,598,690,942.28
Minority interests -127,636,589.19 -135,511,683.82
Total equity 47,187,609,240.71 47,463,179,258.46
Total liabilities and owener’s equity 100,410,971,452.44 106,125,114,622.69
2. Balance sheet
In RMB Yuan
Account Ending Balance Opening Balance
Current assets:
Cash 22,689,732,804.05 20,634,514,487.95
Notes receivable 17,701,785,367.98 29,010,848,480.70
Accounts receivable 5,540,094,852.90 4,991,996,591.00
Prepayments 871,316,636.66 960,555,695.17
Interest receivable 55,081,274.30 42,184,263.88
Other receivables 2,216,333,615.11 1,723,723,602.89
Inventories 3,717,205,618.67 4,005,921,440.85
Other current assets 1,548,207,146.93 1,178,094,749.84
Total current assets 54,339,757,316.60 62,547,839,312.28
Non-current assets:
Available-for-sale financial assets 554,317,000.00 532,007,000.00
Long-term receivables
Long-term equity investments 17,430,011,940.55 15,786,743,636.55
Investment properties
Fixed assets 15,087,534,046.27 15,582,899,632.64
Construction in progress 3,936,119,637.89 2,763,521,275.98
Construction materials
Liquidation of fixed assets
Intangible assets 3,320,233,576.20 3,341,218,169.73
Development expenditure 813,831,574.70 733,947,670.46
Goodwill
37
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Long-term deferred expenses 12,851,515.57 12,821,802.39
Deferred tax assets 1,453,005,738.60 1,421,165,907.17
Total non-current assets 42,607,905,029.78 40,174,325,094.92
Total assets 96,947,662,346.38 102,722,164,407.20
Current liabilities:
Short-term loans
Notes payable 19,101,504,842.78 16,874,603,207.01
Accounts payable 13,141,085,740.88 19,476,620,759.93
Advances from customers 1,676,549,768.68 3,724,183,178.58
Payroll payable 578,717,128.59 1,377,250,229.66
Taxes payable 189,476,624.87 320,050,382.91
Interest payables
Dividend payables 2,157,790,283.66 -
Other payables 1,892,869,657.20 3,181,207,281.30
Non-current liabilities within one year
Other current liabilities 3,659,654,941.31 3,453,269,881.59
Total current liabilities 42,397,648,987.97 48,407,184,920.98
Non-current liabilities:
Long-term loans
Bonds payable
Long-term payable
Long term payroll payable 84,404,887.09 91,263,000.00
Special payable 161,190,517.37 235,256,441.62
Contingent liabilities 2,400,416,383.94 2,380,971,255.26
Deferred earnings 2,848,820,379.02 2,879,604,719.46
Deferred tax liabilities 17,069,250.00 21,222,750.00
Total non-current liabilities 5,511,901,417.42 5,608,318,166.34
Total liabilities 47,909,550,405.39 54,015,503,087.32
Owners' equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 4,717,192,101.72 4,717,192,101.72
Less: Treasury shares
Other comprehensive income 398,740,399.77 132,520,410.88
Special reserves 22,783,308.91 12,013,706.73
38
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 36,695,423,364.09 36,640,962,334.05
Total owners' equity 49,038,111,940.99 48,706,661,319.88
Total liabilities and owners’ equity 96,947,662,346.38 102,722,164,407.20
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
Operating revenue 35,642,832,190.04 33,555,213,109.46
Less: Operating cost 30,614,845,704.45 28,792,755,690.32
Tax and surcharges 1,286,915,201.57 1,443,786,480.14
Operating expenses 2,543,462,428.51 2,004,176,042.01
General and administrative expenses 2,155,401,262.05 1,785,734,071.11
Financial expenses -225,518,842.31 -246,821,602.15
Impairment loss on assets 108,941,422.42 92,122,720.46
Add: Investment income 1,362,011,815.11 3,831,618,978.64
Including: Investment income from
1,362,011,815.11 3,831,618,978.64
associates and joint venture
Gain on disposal of assets 18,771,809.69 8,914,486.07
Other incomes 1,116,231,219.32 1,153,834,905.86
Operating profit 1,655,799,857.47 4,677,828,078.14
Add: Non-operating income 29,318,896.76 43,495,774.09
Less: Non-operating expenses 52,348,762.93 12,865,146.02
Total profit 1,632,769,991.30 4,708,458,706.21
Less: Income tax expense 15,288,317.83 40,996,104.66
Net profit 1,617,481,673.47 4,667,462,601.55
Classification by going concern
Net profit from continuing operations 1,617,481,673.47 4,667,462,601.55
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 1,609,606,578.84 4,620,545,739.52
Minority interests 7,875,094.63 46,916,862.03
Other comprehensive income, net of tax 247,029,533.59 -49,271,529.86
Total comprehensive income 1,864,511,207.06 4,618,191,071.69
39
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Total comprehensive income
1,856,636,112.43 4,571,274,209.66
attributable to owners
Total comprehensive income
7,875,094.63 46,916,862.03
attributable to minority interest
Earnings per share
Basic earnings per share 0.34 0.96
Diluted earnings per share 0.34 0.96
4. Income Statement
In RMB Yuan
Account Current Period Prior Perid
Operating revenue 34,209,065,716.02 32,839,522,229.70
Less: Operating cost 29,726,487,573.72 28,904,081,124.37
Tax and surcharges 1,092,437,739.80 1,135,041,753.22
Operating expenses 2,298,436,366.37 1,803,479,171.45
General and administrative
1,804,533,573.37 1,436,070,738.53
expenses
Financial expenses -248,434,734.69 -256,888,513.32
Impairment loss on assets 114,014,999.44 133,639,836.86
Add: Investment income 1,995,138,886.45 3,830,647,885.91
Including: Investment income from
1,362,011,815.11 3,831,618,978.64
associates and from joint venture
Gain on disposal of assets 23,972,983.02 -736,556.03
Other income 761,820,507.26 289,212,455.26
Operating profit 2,202,522,574.74 3,803,221,903.73
Add: Non-operating income 22,601,200.00 33,242,956.33
Less: Non-operating expenses 44,712,292.46 13,025,800.35
Total profit 2,180,411,482.28 3,823,439,059.71
Less: Income tax expense -31,839,831.42 -8,032,861.72
Net profit 2,212,251,313.70 3,831,471,921.43
Classification by going concern
Net profit from continuing
2,212,251,313.70 3,831,471,921.43
operations
Net profit from discontinued
operations
40
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Other comprehensive income, net of tax 266,219,988.89 -45,866,000.00
Total comprehensive income 2,478,471,302.59 3,785,605,921.43
5. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Perid
Cash flows from operating activities:
Cash received from sale of goods
47,598,885,985.36 46,780,300,361.41
or rendering of services
Refunds of taxes 196,358,525.83 140,895,941.36
Cash received relating to other
1,720,885,871.60 2,518,058,023.51
operating activities
Subtotal of cash inflows 49,516,130,382.79 49,439,254,326.28
Cash paid for goods and services 36,479,347,621.36 34,870,252,065.09
Cash paid to and on behalf of
3,423,077,482.78 3,158,460,344.22
employees
Cash paid for all types of taxes 1,795,067,722.02 3,357,708,868.23
Cash paid relating to other
3,417,235,796.48 3,093,128,324.63
operating activities
Subtotal of cash outflows 45,114,728,622.64 44,479,549,602.17
Net cash flows from operating activities 4,401,401,760.15 4,959,704,724.11
Cashflows from investing activities:
Cash received from return on
114,500,000.00 4,458,000,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 18,444,059.30 12,051,601.04
long-term assets
Cash received relating to other
17,358,750.00 629,600,000.00
investing activities
Subtotal of cash inflows 150,302,809.30 5,099,651,601.04
Cash paid for acquisition of fixed
assets, intangible assets and other 3,071,429,581.17 1,761,384,957.20
long-term assets
Cash paid for acquisition of
52,243,750.00 100,840,001.00
investments
Cash paid relating to other
investing activities
41
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Subtotal of cash outflows 3,123,673,331.17 1,862,224,958.20
Net cash flows from investing activities -2,973,370,521.87 3,237,426,642.84
Cash flows from financing activities:
Cash received from borrowings 166,000,000.00 185,569,008.83
Cash received relating to other
880,129,667.40 749,802,481.32
financing activities
Subtotal of cash inflows 1,046,129,667.40 935,371,490.15
Cash repayments of borrowings 171,300,000.00 2,140,000,000.00
Cash paid for distribution of
dividends or profits and interest 5,326,893.20 3,168,151,086.02
expenses
Cash paid relating to other
- 33,855,585.56
financing activities
Subtotal of cash outflows 176,626,893.20 5,342,006,671.58
Net cash flows from financing activities 869,502,774.20 -4,406,635,181.43
Effect of changes in exchange rate on
18,804,298.88 25,338,127.63
cash
Net increase in cash and cash
2,316,338,311.36 3,815,834,313.15
equivalents
Add: Opening balance of cash and cash
21,451,305,090.53 22,993,432,067.05
equivalents
Closing balance of cash and cash
23,767,643,401.89 26,809,266,380.20
equivalents
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Perid
Cash flows from operating activities:
Cash received from sale of goods
45,723,211,451.95 44,484,189,667.84
or rendering of services
Refunds of taxes
Cash received relating to other
1,227,875,965.34 1,206,879,552.91
operating activities
Subtotal of cash inflows 46,951,087,417.29 45,691,069,220.75
Cash paid for goods and services 34,485,733,663.71 33,584,162,667.42
Cash paid to and on behalf of 2,753,479,395.91 2,480,880,221.05
42
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
employees
Cash paid for all types of taxes 1,308,603,097.31 2,696,116,766.30
Cash paid relating to other
3,359,852,336.20 2,881,114,513.51
operating activities
Subtotal of cash outflows 41,907,668,493.13 41,642,274,168.28
Net cash flows from operating activities 5,043,418,924.16 4,048,795,052.47
Cashflows from investing activities:
Cash received from disposal of
839,201.56 -
investments
Cash received from return on
119,200,416.67 4,464,991,013.22
investments
Net cash received from disposal of
fixed assets, intangible assets and other 18,417,859.30 403,878.24
long-term assets
Cash received relating to other
100,000,000.00 791,000,000.00
investing activities
Subtotal of cash inflows 238,457,477.53 5,256,394,891.46
Cash paid for acquisition of fixed
assets, intangible assets and other 2,869,658,085.59 1,602,304,152.01
long-term assets
Cash paid for acquisition of
157,000,000.00 100,437,390.50
investments
Cash paid relating to other
200,000,000.00 100,000,000.00
investing activities
Subtotal of cash outflows 3,226,658,085.59 1,802,741,542.51
Net cash flows from investing activities -2,988,200,608.06 3,453,653,348.95
Cash flows from financing activities:
Cash received from borrowings
Cash received relating to other
461,856,503.42 707,928,498.17
financing activities
Subtotal of cash inflows 461,856,503.42 707,928,498.17
Cash repayments of borrowings - 1,980,000,000.00
Cash paid for distribution of
dividends or profits and interest - 3,147,923,019.82
expenses
Cash paid relating to other
financing activities
43
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Subtotal of cash outflows - 5,127,923,019.82
Net cash flows from financing activities 461,856,503.42 -4,419,994,521.65
Effect of changes in exchange rate on
cash
Net increase in cash and cash
2,517,074,819.52 3,082,453,879.77
equivalents
Add: Opening balance of cash and cash
20,172,657,984.53 22,326,566,084.67
equivalents
Closing balance of cash and cash
22,689,732,804.05 25,409,019,964.44
equivalents
44
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
7. Consolidated statement of changes in shareholders’ equity
In RMB Yuan
Current period
Equity attributable to owners
Items
Less: Other
Special General Minority interest Total equity
Share capital Capital reserves Treasury Surplus reserves Retained earnings comprehensive
reserves reserves
shares income
I. At end of last year 4,802,648,511.00 5,099,405,956.94 - 28,279,733.062,401,324,255.50 - 35,184,073,061.94 82,959,423.84 -135,511,683.82 47,463,179,258.46
II. At beginning of year 4,802,648,511.00 5,099,405,956.94 - 28,279,733.062,401,324,255.50 - 35,184,073,061.94 82,959,423.84 -135,511,683.82 47,463,179,258.46
III. Changes during the year - - - 17,709,058.85 - - -548,183,704.82 247,029,533.59 7,875,094.63 -275,570,017.75
1.Total comprehensive
- - - - - - 1,609,606,578.84 247,029,533.59 7,875,094.63 1,864,511,207.06
income
2. Capital contributed by
owners and capital decreases
3. Distribution of profit - - - - - - -2,157,790,283.66 - - -2,157,790,283.66
Distribution to owners - - - - - - -2,157,790,283.66 - - -2,157,790,283.66
4. Special reserves - - - 17,709,058.85 - - - - - 17,709,058.85
(1) Pick-up in current
- - - 40,997,574.06 - - - - - 40,997,574.06
period
(2) Used in current period - - - -23,288,515.21 - - - - - -23,288,515.21
IV. At end of current period 4,802,648,511.00 5,099,405,956.94 - 45,988,791.91 2,401,324,255.50 - 34,635,889,357.12 329,988,957.43 -127,636,589.19 47,187,609,240.71
45
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Prior period
In RMB Yuan
Prior period
Equity attributable to owners
Items
Less: Other
Special General Minority interest Total equity
Share capital Capital reserves Treasury Surplus reserves Retained earnings comprehensive
reserves reserves
shares income
I. At end of last year 4,802,648,511.00 5,085,301,532.55 - 16,349,485.65 2,401,324,255.50 - 31,126,707,710.94 141,480,908.23 -220,652,853.81 43,353,159,550.06
31,126,707,710.
II. At beginning of year 4,802,648,511.00 5,085,301,532.55 - 16,349,485.65 2,401,324,255.50 - 141,480,908.23 -220,652,853.81 43,353,159,550.06
94
III. Changes during the year - 25,192,500.00 - 9,591,966.43 - - 1,540,676,367.05 -49,271,529.86 46,916,862.03 1,573,106,165.65
1.Total comprehensive
- - - - - - 4,620,545,739.52 -49,271,529.86 46,916,862.03 4,618,191,071.69
income
2. Capital contributed by
- 25,192,500.00 - - - - - - - 25,192,500.00
owners and capital decreases
3. Distribution of profit - - - - - - -3,079,869,372.47 - - -3,079,869,372.47
Distribution to owners - - - - - - -3,079,869,372.47 - - -3,079,869,372.47
4. Special reserves - - - 9,591,966.43 - - - - - 9,591,966.43
(1) Pick-up in current
- - - 34,781,156.92 - - - - - 34,781,156.92
period
(2) Used in current period - - - -25,189,190.49 - - - - - -25,189,190.49
IV. At end of current period 4,802,648,511.00 5,110,494,032.55 - 25,941,452.08 2,401,324,255.50 - 32,667,384,077.99 92,209,378.37 -173,735,991.78 44,926,265,715.71
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
8. Statement of changes in shareholders’ equity
In RMB Yuan
Current period
Less: Other
Items Special
Share capital Capital reserves Treasury Surplus reserves comprehensive Retained earnings Total equity
reserves
shares income
I. At end of last year 4,802,648,511.00 4,717,192,101.72 - 12,013,706.73 2,401,324,255.50 132,520,410.88 36,640,962,334.05 48,706,661,319.88
II. At beginning of year 4,802,648,511.00 4,717,192,101.72 - 12,013,706.73 2,401,324,255.50 132,520,410.88 36,640,962,334.05 48,706,661,319.88
III. Changes during the year - - - 10,769,602.18 - 266,219,988.89 54,461,030.04 331,450,621.11
1.Total comprehensive income - - - - - 266,219,988.89 2,212,251,313.70 2,478,471,302.59
2. Capital contributed by owners and
capital decreases
The amount of shares paid into the owner's
equity
3. Distribution of profit - - - - - - -2,157,790,283.66 -2,157,790,283.66
Distribution to owners - - - - - - -2,157,790,283.66 -2,157,790,283.66
4. Special reserves - - - 10,769,602.18 - - - 10,769,602.18
(1) Pick-up in current period - - - 28,985,079.84 - - - 28,985,079.84
(2) Used in current period - - - -18,215,477.66 - - - -18,215,477.66
IV. At end of current period 4,802,648,511.00 4,717,192,101.72 - 22,783,308.91 2,401,324,255.50 398,740,399.77 36,695,423,364.09 49,038,111,940.99
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Prior period
In RMB Yuan
Prior period
Less: Other
Items Special
Share capital Capital reserves Treasury Surplus reserves comprehensive Retained earnings Total equity
reserves
shares income
I. At end of last year 4,802,648,511.00 4,689,475,046.88 - 7,555,003.10 2,401,324,255.50 202,294,552.68 33,488,484,537.62 45,591,781,906.78
II. At beginning of year 4,802,648,511.00 4,689,475,046.88 - 7,555,003.10 2,401,324,255.50 202,294,552.68 33,488,484,537.62 45,591,781,906.78
III. Changes during the year - 25,192,500.00 - 6,058,696.89 - -45,866,000.00 751,602,548.96 736,987,745.85
1.Total comprehensive income - - - - - -45,866,000.00 3,831,471,921.43 3,785,605,921.43
2. Capital contributed by owners and
- 25,192,500.00 - - - - - 25,192,500.00
capital decreases
The amount of shares paid into the owner's
- 25,192,500.00 - - - - - 25,192,500.00
equity
3. Distribution of profit - - - - - - -3,079,869,372.47 -3,079,869,372.47
Distribution to owners - - - - - - -3,079,869,372.47 -3,079,869,372.47
4. Special reserves - - - 6,058,696.89 - - - 6,058,696.89
(1) Pick-up in current period - - - 21,295,002.00 - - - 21,295,002.00
(2) Used in current period - - - -15,236,305.11 - - - -15,236,305.11
IV. At end of current period 4,802,648,511.00 4,714,667,546.88 - 13,613,699.99 2,401,324,255.50 156,428,552.68 34,240,087,086.58 46,328,769,652.63
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
III. Corporate information
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) was established by
China Changan Automobile Group (hereafter referred to as the “Changan Group”) as the individual originator on
31 October 1996. The company was set up using the group’s net asset relating to the operation of mini cars and
engine, the shares it owned in Chongqing Changan Suzuki company limited (equal to 506,190,000 shares of the
Company) and the fund raised from the issuance of 250,000,000 foreign capital stock (B shares), with total share
capital of RMB756,190,000.
With the approval of China Securities Regulatory Commission, the company initially floated on share market on
19 May 1997 by issuing 120,000,000 common shares (A share) to the public. The offering increased the total
share capital to RMB 876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the original
876,190,000 shares. The issuance was made from capital reserve and increased the total share capital to RMB
1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares held by existing shareholders, which
increased the total share capital from RMB 1,226,666,000 to RMB 1,471,999,200.
On 26 August 2004, with the approval of China Securities Regulatory Commission, the Company offered
148,850,000 common shares (A share) to the market, which increased the total share capital to RMB
1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the “South Group”), the
ultimate parent company, used the common share (850,399,200 shares) owned by its subsidiary, Changan Group,
as part of the investment to establish China South Industries Motor Company (hereafter referred to as ”South
Industries Motor”). The share occupied 52.466% of the Company’s total share capital. Therefore, South industries
Motor became the parent company of the Company. On 30 March 2006, the transfer of share was registered by
Shenzhen branch of China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the shareholders at the
implementation date of reformation of non-tradable shares for their non-tradable shares according to the ”Reply of
the problems related to the reformation of non-tradable shares of Chongqing Changan Automobile Co., Ltd.”
(2006[442] Guo Zi Chan Quan) issued by the State-owned Assets Supervision and Administration Commission of
State Council and the related shareholder’s meeting. After the reformation of non-tradable shares, South Industries
Motor occupied 45.548% of equity through 738,255,200 common shares.
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders, which increased
the total share capital from RMB 1,620,849,200 to RMB 1,945,019,040.
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders. The issuance
was made from capital reserve and increased the total share capital to RMB 2,334,022,848.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution about ‘the
reacquisition of foreign capital stock listed in China’ was approved in the meeting. For the buyback period ended
on 3 March 2010, the company repurchased 8,365,233 shares in total, equal to 0.3584% of total capital.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South industries Motor,
the parent company changed its name to China Changan Automobile Industry (Group) Co., Ltd. (hereafter
referred to as the “China Changan”).
With the approval of China Securities Regulatory Commission on 14 January 2011, the Company issued
360,166,022 common shares (A share), which increased the total share capital to RMB 2,685,823,637. After the
completion of the issuance, China Changan holds 1,163,787,489 shares of the Company's common stock, and the
held equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10 shares from
capital reserve to existing shareholders. After this issuance, the total share capital has been increased to RMB
4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution about ‘the
reacquisition of foreign capital stock listed in China’ was approved in the meeting. For the buyback period ended
on 20 March 2012, the company repurchased 171,596,438 shares in total, equal to 3.55% of total capital. On 30
March 2012, the company cancelled the share and the share capital decreased to RMB 4,662,886,108.
During 2013 and 2014, China Changan, the parent company of the Company, continuously sold 181,260,000 and
89,962,264 shares in total in secondary market. As at 31 December 2014, China Changan holds 1,823,595,216
shares of the Company’s ordinary shares, with shares proporation decreasing to 39.11%.
With the approval of China Securities Regulatory Commission on 14 September 2016, the Company issued
139,762,403 non-public common shares (A share) to China Changan Automobile Industry (Group) Co., Ltd.,
which caused the total share capital increased to RMB 4,802,648,511. After the completion of the issuance, China
Changan holds 1,963,357,619 shares of the Company's common stock, with shares proporation increasing to
40.88%.
As at 30 June 2018, the Company’s parent company and ultimate controlling company is China Changan and
South Group respectively.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the manufacturing and
sales of automobile (include cars), automobile engine, spare parts.
The consolidated scope of the consolidated financial statements is based on the control. For details, please refer to
Note 8 for the changes in the scope of the consolidated financial statements for the current year.
IV. BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for Business
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Enterprises-Basic Standard and the specific standards issued and modified subsequently, and the implementation
guidance, interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as
“Accounting Standards for Business Enterprises”).
The financial statements are listed on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial
instruments. If the assets are impaired, the corresponding provisions should be made accordingly. The assets are
recorded at assessed value by State-owned Assets Supervision and Administration Commission of the State
Council, which are invested into the Group in the reforming period.
V. Significant accounting policies and accounting estimates
The group has formulated specific accounting policies and accounting estimates based on the characteristics of
actualdaily operations, mainly reflected in the provision method for uncollectible accounts receivable [Note 5
( 10 ) ], the valuation method of inventories [Note 5 ( 11 ) ], depreciation of fixed assets and amortization of
intangible assets [ Note 5 ( 14 ) ( 17 ) ], the capitalization conditions for r & d expenses [Note 5 ( 18 ) ], revenue
recognition and measurement [Note 5 ( 22 ) ].
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at June 30, 2018 and the
financial results and the cash flows for 1-6 month then ended in accordance with Accounting Standards for
Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of
the currency is Yuan. Each entity in the Group determines its own functional currency in accordance with the
operating circumstances. At the end of the reporting period, the foreign currency financial statements are
translated into the reporting currency of the Company of RMB.
4. Business combination
A business combination is a transaction or event that brings together two or more separate entities into one
reporting entity. Business combinations are classified into business combinations involving entities under
common control and business combinations involving entities not under common control.
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in which all of the
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
combining entities are ultimately controlled by the same party or parties both before and after the combination,
and that control is not transitory. For a business combination involving entities under common control, the party
which, on the combination date, obtains control of another entity participating in the combination is the acquiring
party, while that other entity participating in the combination is a party being acquired. Combination date is the
date on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under
common control shall be measured at their carrying amounts at the combination date as recorded by the party
being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of
the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be
adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be
adjusted against retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
For a business combination involving entities not under common control, the party that, on the acquisition date,
obtains control of another entity participating in the combination is the acquirer, while that other entity
participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the
business combination at their fair values on the acquisition date.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities)
and the fair value of the acquirer’s previously held equity interest in the acquiree exceeds the acquirer’s interest in
the fair value of the acquiree’s identifiable net assets, the difference shall be recognized as goodwill and measured
at cost less any accumulated impairment losses. Where the sum of the fair value of the consideration transferred
(or the fair value of the issued equity securities) and the fair value of the acquirer’s previously held equity interest
in the acquiree is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the
difference shall be accounted for according to the following requirements: (i) the acquirer shall reassess the
measurement of the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and
measurement of the fair value of the consideration transferred (or the fair value of the issued equity securities) and
the fair value of the acquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the
sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair
value of the acquirer’s previously held equity interest in the acquiree is still less than the acquirer’s interest in the
fair values of the acquiree’s identifiable net assets, the acquirer shall recognize the remaining difference
immediately in the income statement for the current period.
5. Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control, and includes the
financial statements of the Company and its subsidiaries as at June 30, 2018. A subsidiary is an enterprise or entity
that is controlled by the Group (including an enterprise, seperable part of the investee and a structured entity
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
controlled by the Company).
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using
consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows
relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong
to minorities, the exceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under common control,
the operating results and cash flows of the acquiree should be included in the consolidated financial statements,
from the day that the Group gains control, till the Group ceases the control of it. While preparing the
consolidated financial statements, the acquirer should adjust the subsidiary’s financial statements, on the basis of
the fair values of the identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the
operating results and cash flows of the acquiree should be included in the consolidated financial statements from
the beginning of the period in which the combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then
the Group should reassess whether has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint
venture arrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint venturers. Joint
ventures refer to those joint venture arrangements, only the right to net assets of which is enjoyed by the joint
venturers.
Any joint venturer shall recognize the following items related to its share of benefits in the joint operation and
conduct accounting treatment in accordance with relevant accounting standards for business enterprises: assets it
solely holds and its share of jointly-held assets based on its percentage; liabilities it solely assumes and its share of
jointly-assumed liabilities based on its percentage; incomes from sale of output enjoyed by it from the joint
operation; incomes from sale of output from the joint operation based on its percentage; and separate costs and
costs for the joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are
short-term, highly liquid investments held by the Group, that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the
foreign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are
translated using the spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The
exchange gains or losses arising from occurrence of transactions and exchange of currencies, except for those
relating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized, are
dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remain
to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the
functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be
translated at the spot exchange rate prevailing on the date when the fair values are determined. The exchange
difference thus resulted should be charged to the current income or other comprehensive income account of the
current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign
currencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at
exchange rates ruling at the balance sheet date; shareholders’ equity accounts other than retained profits are
translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense in
income statement are translated into Renminbi at spot exchange rates on transaction occurrence; total difference
between translated assets and translated liabilities and shareholders’ equity is separately listed as “foreign
currency exchange differences” below retained profits. The translation difference arising from the settlement of
oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of the
assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average
exchange rate prevailing on the transaction month during which the cash flows occur. The amount of the effect on
the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the
cash flow statement.
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual
provision of the instrument.
The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets),
be written off from the account and balance sheet , when the following conditions are met:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an obligation to pay the
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
received cash flows in full without material delay to a third party under a “pass-through” arrangement; and
either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financial
liability is derecognized. If an existing financial liability is replaced by the same creditor, with a new financial
liability that has substantially different terms, or if the terms of an existing financial liability are substantially
revised, such replacement or revision is accounted for as the derecognition of the original liability and the
recognition of a new liability, and the difference thus resulted is recognized in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized or derecognized
according to the transaction date accounting. A normal way to buy or sell financial instruments refers to,
according to the contract terms, receive or deliver financial instruments within the period as required by legal
regulation or generally accepted guidelines. Transaction date refers to the date when the Group committed to buy
or sell financial instruments.
Classification and measurement of financial assets
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair value
through profit or loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, and
the derivatives designated as effective hedging instrument. A financial asset is recognized initially at fair value.
In the case of financial assets at fair value through profit or loss, relevant transaction costs are directly charged to
the profit and loss of the current period; transaction costs relating to financial assets of other categories are
included in the amount initially recognized.
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated
upon initial recognition as at fair value through profit or loss. A financial asset held for trading is the financial
asset that meets one of the following conditions: the financial asset is acquired for the purpose of selling it in a
short term; the financial asset is a part of a group of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this group for the
purpose of short-term profits; the financial asset is a derivative, except for a derivative that is designated as
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled
by delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair value
cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent
measurement. All the realized or unrealized gains or losses on these financial assets
are recognized in profit or loss for the current period. Dividend or interest income related to financial assets at fair
value through profit or loss is recognized in profit or loss for the current period.
Held-to-maturity investments
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are
subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition, impairment or amortization are recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Such kind of financial assets are subsequently measured at amortized cost using the effective
interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or
loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale
or are not classified as the above financial assets. After initial recognition, available-for-sale financial assets are
measured at fair value. The premium/discount is amortized using effective interest method and recognized as
interest income or expense. A gain or loss arising from a change in the fair value of an available-for-sale financial
asset is recognized in other comprehensive income as a component of capital reserve, except for impairment
losses and foreign exchange gains and losses resulted from monetary financial assets, until the financial asset is
derecognized or determined to be impaired, at which time the accumulated gain or loss previously recognized in
capital reserve is removed from capital reserve and recognized in profit or loss for the current period. Interests and
dividends relating to an available-for-sale financial asset are recognized in profit or loss for the current period.
The equity investment instruments, for which there is no quoted price in active market and whose fair value
cannot be reliably measured, shall be measured at cost.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into the following categories: financial
liabilities at fair value through profit or loss, other financial liabilities, and the derivatives designated as effective
hedging instrument. For financial liabilities at fair value through profit or loss, relevant transaction costs are
directly recognized in profit or loss for the current period, and transaction costs relating to other financial
liabilities are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those
designated as at fair value through profit or loss. A financial liability held for trading is the financial liability that
meets one of the following conditions: the financial liability is assumed for the purpose of repurchasing it in a
short term; the financial liability is a part of a group of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this group for the
purpose of short-term profits; the financial liability is a derivative, except for a derivative that is designated and
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled
by delivery of an unquoted equity instrument (without a quoted price form an active market) whose fair value
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
cannot be reliably measured. For such kind of financial liabilities, fair values are adopted for subsequent
measurement. All the realized or unrealized gains or losses on these financial liabilities are recognized in profit or
loss for the current period.
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the effective interest
method.
Offsetting of financial instrumentsts
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
or to realise the assets and settle the liabilities simultaneously.
Impairment of financial assets
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is objective
evidence that the financial asset is impaired, the Group makes provision for the impairment loss. Objective
evidence that a financial asset is impaired is evidence arising from one or more events that occurred after the
initial recognition of the asset and that event has an impact on the estimated future cash flows of the financial
asset which can be reliably estimated.
Financial assets carried at amortized cost
When the financial assets carried at amortized cost are impaired, the carrying amount of the financial asset shall
be reduced to the present value of the estimated future cash flow (excluding future credit losses that have not been
incurred). The amount of reduction is recognized as an impairment loss in the income statement. Present value of
estimated future cash flow is discounted at the financial asset’s original effective interest rate and includes the
value of any related collateral.
If a financial asset is individually significant, the Group assesses the asset individually for impairment, and
recognizes the amount of impairment in the income statement if there is objective evidence of impairment. For a
financial asset that is not individually significant, the Group can include the asset in a group of financial assets
with similar credit risk characteristics and collectively assess them for impairment. For financial assets that are not
impaired upon individual tests (including financial assets that are individually significant or insignificant),
impairment testsshould be conducted on them again by including them in the group of financial assets. Assets for
which an impairment loss is individually recognized will not be included in a collective assessment of
impairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized cost, there is
objective evidence of a recovery in value of the financial asset which can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is reversed and
recognized in the income statement. However, the reversal shall not result in a carrying amount of the financial
asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
the impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in fair value that had
been recognized directly in capital reserve are removed from equity and recognized in the income statement. The
amount of the cumulative loss that is removed from capital reserves and recognized in the income statement (net
of any principal repayment and amortization) and current fair value, less any impairment loss on that financial
asset previously recognized in the income statement.
In the case of equity investments classified as available for sale, objective evidence would include a significant or
prolonged decline in the fair value of an investment below its cost. The determination of what is “significant” or
''prolonged” requires judgement. “Significant” is evaluated against the original cost of the investment and
“prolonged” against the period in which the fair value has been below its original cost. Impairment losses on
equity instruments classified as available for sale are not reversed through the income statement. Increases in their
fair value after impairment are recognised directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this judgement, the
Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than
its cost.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference between the
present value discounted at the prevailing rate of return of similar financial assets and the book value of the
financial asset are provided as a provision and recognized in the current income statement. The impairment loss
recognized cannot be reversed.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group
derecognizes the financial asset; and if the Group retains substantially all the risks and rewards of the financial
asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset,
the Group determines whether it has retained control of the financial asset. In this case: (i) if the Group has not
retained control, it derecognizes the financial asset and recognize separately as assets or liabilities any rights and
obligations created not retained in the transfer; (ii) if the Group has retained control, it continues to recognize the
financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an
associated liability.
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision：
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Criterion for individually significant items Accounts receivable balance greater than RMB15 million due from
non-related parties
Method for provision A provision of the difference between recoverable amount and book
value is recognized based on individually analysis
(2) Accounts receivable analyzed by credit risk charactristics group for provision：
Criterion for group
Accounts receivable due from non-related parties other than individually
Group 1
significant items or insignificatntly but analyzed individually for provision
Group 2 Accounts receivable due from related parties
Method for the provision of group
Group 1 Making provision according to aging analysis
A provision of the difference between recoverable amount and book value is
Group 2
recognized based on individually analysis.
Group 1, the provision analyzed according to aging analysis:
Aging Accounts receivable Other receivables
Provision percentage (%) Provision percentage (%)
Within 1 year
Within 6 months 0 0
6 to 12 months 5 5
1 to 2 years 10 10
2 to 3 years 30 30
3 to 4 years 50 50
4 to 5 years 80 80
Above 5 years 100 100
(3) Accounts receivable which is individually insignificant but analyzed individually for provision
There is objective evidence that the accounts receivable due
Criterion for individually analysis for provision from non-related parties is impaired and the future recoverable
possibility is little.
A provision of the difference between recoverable amount and
Method for provision
book value is recognized individually.
11. Inventory
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing
materials, low-value consumables and spare parts.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion
and other costs incurred in bringing the inventory to its present location and condition.Weighted average method
is assigned to the determination of actual costs of inventories. One-off writing off method is adopted in
amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher
than the net realizable value, provision for the inventory should be made through profit or loss. If factors that
resulted in the provision for the inventory have disappeared and made the net realizable value higher than their
book value, the amount of the write-down should be reversed, to the extent of the amount of the provision for the
inventory, and the reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. The impairment provision should be made on a
basis of each item of inventories according to the difference between cost and net realizable value. For large
numbers of inventories at relatively low unit prices, the provision for loss on decline in value of inventories
should be made by category.
12. Long-term equity investments include investments in subsidiaries, joint ventures and associates
The long-term investments are initially recorded at costs on acquisition. Long-term investments acquired from
business combination under common control shall be initially measured at the carrying value of the held interest
of the party being acquired; The difference between the initial meassued amounts and the book value of
consideration, adjust the capital reserves (if the capital reserve is insufficient to be offset, retained earnings should
be adjusted); Long-term investments acquired from business combination not under common control shall be
initially measured at the cost (or, the sum of the cost and the carrying value of the previously held equity interest
in the acquire for the business combination achieved by stages), which include the fair value of the consideration
paid, the liabilities beard and the fair value of issued equity instrument; the other comprehensive income produced
from the investment before the acquisition should be transferred into the current year investment income on
disposal. Long-term investments acquired not from business combination are initially measured at 1)the
consideration together with the cost necessary incurred; 2) the fair value of the equity instruments; and 3) the
consideration agreed in the investment agreement by the investors, otherwise the agreed consideration were not
fair.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separate
financial statements of the Company. Control is the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost of
long-term equity investment should be adjusted in case of additional investment or disinvestments. When cash
dividends or profits are declared by the invested enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or
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significant influence on the investee enterprise. Joint control is the contractually agreed sharing of control over an
economic activity, and exists only when the strategic financial and operating decisions relating to the activity
require the unanimous consent of the parties sharing control (the venturers). Significant influence is the power to
participate in the financial and operating policy decisions of an economic activity but is not control or joint control
over those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing
enterprise’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, the difference
is accounted for as an initial cost. As to the initial investment cost is less than the investing enterprise’s interest in
the fair values of the investee’s identifiable net assets at the acquisition date, the difference shall be charged to the
income statement for the current period, and the cost of the long-term equity investment shall be adjusted
accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the
current period as a gain or loss on investment, and also increases or decreases the carrying amount of the
investment. When recognizing its share in the net profit or loss of the investee entities, the Group should, based on
the fair values of the identifiable assets of the investee entity when the investment is acquired, in accordance with
the Group’s accounting policies and periods, after eliminating the portion of the profits or losses, arising from
internal transactions with joint ventures and associates, attributable to the investing entity according to the share
ratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be
recognized in full), recognize the net profit of the investee entity after making appropriate adjustments. The book
value of the investment is reduced to the extent that the Group’s share of the profit or cash dividend declared to be
distributed by the investee enterprise. However, the share of net loss is only recognized to the extent that the book
value of the investment is reduced to zero, except to the extent that the Group has incurred obligations to assume
additional losses. The Group shall adjust the carrying amount of the long-term equity investment for other changes
in owners’ equity of the investee enterprise (other than net profits or losses), and include the corresponding
adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respective
long-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the
carrying amount shall be recognized in the income statement for the current period. As to other comprehensive
income recognized based on measurement of the original equity investment by employing the equity method,
accounting treatment shall be made on the same basis as would be required if the invested entity had directly
disposed of the assets or liabilities related thereto when measurement by employing the equity method is
terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the income statement for
the current period. If the remaining equities still be measured under the equity method, accumulative change
previously recorded in other comprehensive income shall be transferred to current profit or loss, in measurement
on the same basis as the invested entity had directly disposed of the assets or liabilities related thereto. The income
or loss recorded in the equity directly should been transferred to the current income statement on settlement of the
equity investment on the disposal proportion.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land
use right, land use right which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses
pertinent to an investment property shall be included in the cost of the investment property, if the economic
benefits pertinent to this real estate are likely to flow into the enterprise, and, the cost of the investment property
can be reliably measured. Otherwise, they should be included in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property. The buildings are
depreciated under straight-line method.
14. Fixed asset
(1) Recognition of fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to
the Group and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset
that meet the recognition criteria shall be included in the cost of the fixed asset, and the book value of the
component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be
recognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the
purchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working condition
for its intended use, such as delivery and handling costs, installation costs and other surcharges.
(2) Depreciation method of fixed assets
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annual
depreciation rates for each category of fixed assets are as follows:
Yearly deprecation rate
Category Deprecation period Residual rate (%)
(%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 12 years 3% 8.08%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the moulds in machinery should be depreciated in units-of-production method.
(3) Others
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method
applied at least at the end of each year and makes adjustments if necessary.
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15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction,
including all necessary construction expenditure incurred during the construction period, borrowing costs that
should be capitalized before the construction reaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
16. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds.
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs
incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign
currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalized, otherwise the borrowing costs are expensed in the period during which they are incurred. A
qualifying asset is an asset (an item of property, plant and equipment and inventory etc.) that necessarily takes a
substantial period of time to get ready for its intended use of sale.
The capitalization of borrowing costs are as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the
qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the
income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be
determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual
interest expense incurred on that borrowing for the period less any bank interest earned form depositing the
borrowed funds before being used on the asset or any investment income on the temporary investment of
those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such
borrowings is determined by applying a weighted average interest rate to the weighted average of the
excess amounts of cumulative expenditure on the asset over and above the amounts of specific-purpose
borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance,
other than procedures necessary for their reaching the expected useful conditions, happens, and the duration of the
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
discontinuance is over three months, the capitalization of the borrowing costs is suspended. Borrowing costs
incurred during the discontinuance are recognized as expense and charged to the income statement of the current
period, till the construction or manufacture of the assets resumes.
17. Intangible asset
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will
flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured at
cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition,
if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to
generate economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there is
no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as
intangible assets. With respect to self-developed properties, the corresponding land use right and buildings should
be recorded as intangible and fixed assets separately. As to the purchased properties, if the reasonable allocation of
outlays cannot be made between land and buildings, all assets purchased will be recorded as fixed assets.The cost
of a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life.
For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortization
method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing its
recoverable amount with its carrying amount annually, whenever there is an indication that the intangible asset
may be impaired. An intangible asset with an indefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine
whether events and circumstances continue to support an indefinite useful life assessment for that asset. If there
are indicators that the intangible asset has finite useful life, the accounting treatment would be in accordance with
the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and
development cost.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically
feasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c)
the usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able
to prove that there is a potential market for the products manufactured by applying the intangible assets or there is
a potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able to
finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources; and (e) the development expenditures of the
intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements
unanimously should be expensed in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has
been determined, in which the relevant research complete all the fractionalization of products measurements and
final product scheme under final approval of management. The expenditures incurred before project-determination
stage is charged to the current income, otherwise it is recorded as development cost.
19. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses,
which have been paid and should be deferred in the following years. Long-term deferred expenses are amortized
on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of
accumulated amortization.
20. Contingent liabilities
Except contingent liability recognized in a business combination, the Group recognizes an contingent liability
when the obligation arising from a contingency meets the following conditions:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary
for the performance of relevant present obligations, with comprehensive consideration given to factors such as the
risks, uncertainty and time value of money relating to contingencies. The book value of the contingent liabilities
should be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannot
reflect the present best estimate, the book value should be adjusted according to the best estimate.
21. Share-based payments
The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based
payments. The term "equity-settled share-based payment" refers to a transaction in which an enterprise grants
shares or other equity instruments as a consideration in return for services.
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The equity-settled share-based payment in return for employee services shall be measured at the fair value of the
equity instruments granted to the employees. As to an equity-settled share-based payment in return for services of
employees, if the right may be exercised immediately after the grant, the fair value of the equity instruments shall,
on the date of the grant, be included in the relevant cost or expense and the capital reserves shall be increased
accordingly. As to a equity-settled share-based payment in return for employee services, if the right cannot be
exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then on
each balance sheet date within the vesting period, the services obtained in the current period shall, based on the
best estimate of the number of vested equity instruments, be included in the relevant costs or expenses and the
capital reserves at the fair value of the equities instruments on the date of the grant. The fair value is determined
using Black-Scholes model (Note 13).
Within the vesting period or before the prescribed performance conditons are met, the relevant costs or expenses
and capital reserves shall be determined and increased based on the best estimate of the number of vested equity
instruments on each balance sheet date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not been
met, no expense is recognised. Where awards include a market or non-vesting condition, the transactions are
treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified, if the original terms of the award are met. In addition, an expense is recognised for any
modification that increases the total fair value of the share-based payments, or is otherwise beneficial to the
employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting
conditions within the control of either the Group or the employee are not met. However, if a new award is
substituted for the cancelled award, and is designated as a replacement award on the date that it is granted, the
cancelled and new awards are treated as if they were a modification of the original award, as described in the
previous paragraph.
22. Revenue
Revenue is recognized only when an inflow of economic benefits is probable, the amount of which can be reliably
measured, and all of the following conditions are qualified.
Revenue from the sale of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group
retains neither continuing management involvement to the degree usually associated with ownership nor effective
control over the goods sold; and the amount of revenue can be measured reliably. The proceeds earned from sales
of goods are determined based on the amount received or receivable as stipulated in the contract or agreement,
otherwise the amount is not fair; If the amount received or receivable as stipulated in the contract or agreement is
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
collected in a defer method, it includes the financing elements and should be determined according to the fair
value of the amount received or receivable as stipulated in the contract or agreement.
Revenue from the rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance
sheet date, revenue associated with the transaction is recognized using the percentage of completion method, or
otherwise, the revenue is recognized to the extent of costs incurred that are expected to be recoverable. The
outcome of a transaction involving rendering of services can be estimated reliably when all of the following
conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the associated
economic benefits will flow into the Group; the stage of completion of the transaction can be measured reliably;
and the costs incurred and to be incurred for the transaction can be measured reliably. The Group determines the
stage of completion of a transaction involving the rendering of services by using the proportion of services
performed to date to the total services to be performed. The total amount of revenue earned from rendering service
are determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise
the amount is not fair.
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others and the applicable
effective interest rate.
Royalty income
Royalty income is recognized according to the agreed time and method by both parties in related contracts.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis
over the lease term.
23. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any
conditions attached to the grant and the grant will be received. Monetary grants are accounted for at received or
receivable amount. Non-monetary grants are accounted for at fair value. If there is no reliable fair value available,
the grants are accounted for at nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the
long-term assets shall be recognized as the government grant related to assets. A government grant which is not
specified by the government documents shall be judged based on the basic conditions to obtain the government
grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as
the government grant related to assets.
The other government grant shall be recognized as the government grant related to gain. A grant relating to
income, which as compensation for future costs, is recognized as deferred income initially, and as income when
the related cost incurs. The grant as compensation for costs already incurred should be recognized as income for
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
the current period. A grant relating to assets is recognized as deferred income initially, and as income evenly
among the useful life of the related assets. The grant accounted for at nominal amount is recognized as income for
the current period.
24. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An
operating lease is a lease other than a finance lease.
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term,
and either included in the cost of another related asset or charged to the income statement for the current period.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis
over the lease term.
25. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their
employees in exchange for services provided by the employees or termination of labor relation. Employee
compensation includes short-term compensation and post-employment benefits. The benefits offered by
enterprises to the spouse, children, the dependants of the employee, the family member of deceased employee and
other beneficiaries are also employee compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actural employees salaries and are charged to the
statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and the
relevant expenditure, is recognized, when incurred, in the costs of relevant assets or the profit and loss for the
current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately
administered fund. The benefits are unfunded. The cost of providing benefits under the defined benefit plan is
determined using the projected unit credit actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
statement of financial position with a corresponding debit or credit to retained profits through other
comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss
in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment;
and the date that the Group recognises restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group
recognises the following changes in the net defined benefit obligation under administrative expenses in the
consolidated statement of profit or loss by function:service costs comprising current service costs, past-service
costs, gains and losses on curtailments and non-routine settlements;net interest expense or income
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the offer of those
benefits and when the Group recognises restructuring costs involving the payment of termination benefits.
26. Income tax
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include
in the income statement for the current period, except to the extent that the tax arises from a business combination
or if it relates to a transaction or event which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to
be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their
carrying amounts, and temporary differences between the carrying amounts and the tax bases of items, the tax
bases of which can be determined for tax purposes, but which have not been recognized as assets and liabilities,
deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial
recognition of an asset or liability in a transaction which contains both of the following characteristics: the
transaction is not a business combination and at the time of the transaction, it affects neither the accounting
profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in jointly-controlled enterprises, where the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognized to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply
to the period when the asset is realized or the liability is settled, according to the requirements of tax laws. The
measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow
from the manner in which the Group expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient
taxable income cannot be generated to use the tax benefits of deferred tax assets, the book value of deferred tax
assets should be reduced. When it is probable that sufficient taxable income can be generated, the amount of such
reduction should be reversed. When it is probable that sufficient taxable income can be generated, the amount of
such reduction should be reversed.
27. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes,
and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any
indication exists that an asset may be impaired, the Group estimates the recoverable amount of the asset and
performs impairment tests. Goodwill arising from a business combination and an intangible asset with an
indefinite useful life are tested for impairment at least at the end of every year, irrespective of whether there is any
indication that the asset may be impaired. An intangible asset which is not ready for its intended use is tested for
impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the
future cash flow expected to be derived from the asset. The Group estimates the recoverable amount on an
individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Group
determines the recoverable amount of the asset group to which the asset belongs. Identification of an asset group
is based on whether major cash flows generated by the asset group are independent of the cash flows from other
assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is
reduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognized
in the income statement for the current period.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is
allocated, on a reasonable basis, to related asset groups; if it is impossible to allocate to the related asset groups, it
is allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of asset
groups is a group or set of asset group that is able to benefit from the synergies of the business combination and
shall not be larger than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is
any indication of impairment, the Group firstly tests the asset group or the set of asset groups excluding the
amount of goodwill allocated for impairment, i.e., it determines and compares the recoverable amount with the
related carrying amount and then recognize impairment loss if any. Thereafter, the Group tests the asset group or
set of asset groups including goodwill for impairment, the carrying amount (including the portion of the carrying
amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable
amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the
amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in
the asset group or set of asset groups, and then eliminated by the book value of other assets according to the
proportion of the book values of assets other than the goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
28. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
29. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement,
while be recognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixed
assets or not. The expenditure shall write down the special reserve; the capital expenditure shall be recognized as
fixed assets when meet the expected conditions for use, and write down the special reserve while recognizing
accumulated depreciation with the same amount.
30. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the
absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most
advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using
the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identical
assets or liabilities; Level 2 – based on valuation techniques for which the lowest level input that is significant to
the fair value measurement is observable, either directly or indirectly; Level 3 – based on valuation techniques for
which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines
whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
31. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that
affect the amounts and disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingent
liabilities, at the balance sheet date. However, uncertainty about these assumptions and estimates could result in
outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities affected in the
future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments which
have significant effect on the financial statements:
Operating leases - as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group has
determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the
significant risks and rewards of ownership of these properties which are leased out on operating leases.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated
uncertainty, which may result in the significant adjustments to the book value of the subsequent accounting period,
are as the following:
Impairment of available-for-sale
The Group classifies certain assets as available for sale and recognises movements of their fair values in equity.
When the fair value declines, management makes assumptions about the decline in value to determine whether
there is an impairment that should be recognized in the income statement.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets other than
financial assets may be impaired. If there is any sign of possible assets impairment, the assets concerned should be
subject to impairment test. When the carrying amount of an asset or the relevant assets group exceeds its
recoverable amount which is the higher one of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the expected future cash flow of the asset, the asset is considered impaired. The
fair value minus the disposal expenses is determined by reference to the recent market transactions price or
observed market price less any directly attributable expenditure for disposing. When making an estimate of the
present value of the future cash flow of an asset, the Group should estimate the future cash flows of the asset or
the relevant assets group, with the appropriate discount rate selected to reflect the present value of the future cash
flows.
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable, the impairment test
should be conducted individually. Where there is evidence that indicates impairment, the loss should be
recognized with the respective provision accrued, equaling to the difference between the present value of the
future cash flows and the book value of receivables. For other receivables concerned, management should accrue
the general provisions, along with the receivables individually tested while no impairment incurred, taking in
account the collectability.
Inventory impairment based on the net realizable value
According to accounting policy, inventories shall be measured at the lower of cost and the net realizable value.
Provision for inventories is recognized in the income statement when the cost is higher than the net realizable
value and when the inventories are obsolete and slow-moving. The Group will reassess whether a single inventory
is obsolete, slow-moving or whether the net realizable value is lower than the inventories’ cost at end of each year.
Development expenditures
When determining the capitalization amount, management should make assumptions such as the expected cash
flows of the assets related, the applicable discount rate and expected benefit period.
Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and
deductible temporary differences to the extent of the amount of the taxable income which it is most likely to
obtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments, as
well as the tax planning are compulsory for management to estimate the time and amount of prospective taxable
profits and thus determine the appropriate amount of the deferred tax assets concerned.
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform
satisfactorily based on certain pre-determined conditions. Management estimates the related warranty claims
based on historical warranty claim information including level of repairs and returns as well as recent trends that
might suggest that past cost information may differ from future claims. Factors that could impact the estimated
claim information include the success of the Group’s quality controls, as well as parts and labour costs. Any
increase or decrease in the provision would affect profit or loss in future years.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Depreciation and amortization
The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible
assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangible
assets of similar nature and functions. Management will increase the depreciation and amortization charges where
useful lives are less than previously estimated.
32. The change of major accounting policies and estimates
During the reporting period, the company did not have any changes about accounting policies and estimates.
VI. Taxes
1. The major categories of taxes and surcharges
Categories of taxes and surcharges Basis of tax Tax rate
Levy on the taxable sales and rendering of services,
Value added tax (“VAT”) 5%, 6% or17%
deducted the deductible input VAT.
Consumption tax Taxable sales 1%, 3% or5%
Business tax Taxable sales 5%
City maintenance and construction tax The turnover taxes paid 5% or7%
Educational surcharge The turnover taxes paid 3%
Local educational surcharge The turnover taxes paid 2%
Corporate income tax Taxable income 15% or25%
2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions
(Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration and
the National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in the
Western Region and engaged in encouraged business would be entitled to a preferential CIT rate of 15%.. For the
year ended 2015, the Company, Changan Special Sales and Chongqing Changan Automobile Supporting are
qualified to the requirement and acquired permission of the preferential tax rate of 15% from Chongqing Jiangbei
National Tax Bureau (refer to Jiang Fa Gai Ti[2015] No. 135).
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the Certification of New
and High Technology Enterprises (Guo Ke Fa Huo [2008] No. 172) and Circular of the Working Guidance on the
Recognition of Hi-tech Enterprises (Guo Ke Fa Huo [2008] No. 362), and ratification of Hebei High-Tech
Enterprise Recognition Office (Ji Gao Ban [2014] No. 7), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd.
and Hebei Changan Automobile Co., Ltd. were recognized as Hi-tech enterprises and subjected to the preferential
tax rate of 15%.
VII. Notes to the consolidated financial statements
1. Cash and cash equivalents
In RMB Yuan
Item Ending Beginning
Cash 11,825.00 33,089.31
Cash at bank 23,767,631,576.89 21,451,272,001.22
Other cash 300,101,738.60 1,180,231,406.00
Total 24,067,745,140.49 22,631,536,496.53
As at 30 June 2018, the book value of restricted cash and cash equivalents is RMB 300,101,738.60, which was mainly restricted for
the issuance of acceptance bill.
As at 30 June 2018, the cash at bank oversea is equivalent to RMB 114,365,678.53.
2. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Type Ending Beginning
Commercial acceptance bill 2,821,052,830.00 9,142,240,884.70
Bank acceptance bill 15,569,423,582.74 20,014,240,200.50
Total 18,390,476,412.74 29,156,481,085.20
(2) The notes receivable pledged as follows:
Type 30 June 2018 31 December 2017
Bank acceptance bill 545,823,326.93 287,427,970.00
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2018 and 31 December 2017.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
In RMB Yuan
Ending Beginning
Type
Derecognition Un-derecognition Derecognition Un-derecognition
Commercial acceptance bill - - 70,962,210.00 -
Bank acceptance bill 961,310,940.00 - 1,198,514,460.00 -
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Total 961,310,940.00 - 1,269,476,670.00 -
3. Accounts receivable
(1) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
In RMB Yuan
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually
significant items
and analyzed 527,010,174.73 26.84 - - 734,064,982.48 39.83 - -
individually for
provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable
analyzed for
1,036,772,648.35 52.81 24,283,177.36 2.34 811,522,470.21 44.04 22,765,588.74 2.81
provision
according to aging
analysis
Group 2. Accounts
receivable from 386,230,274.69 19.67 - - 283,985,329.09 15.41 - -
related parties
Group subtotal 1,423,002,923.04 72.48 24,283,177.36 1.71 1,095,507,799.30 59.45 22,765,588.74 2.08
Individually
insignificant items
but analyzed 13,264,933.57 0.68 13,264,933.57 100 13,264,933.57 0.72 13,264,933.57 100
individually for
provision
Total 1,963,278,031.34 100 37,548,110.93 1.91 1,842,837,715.35 100 36,030,522.31 1.96
Within groups, accounts receivable analyzed for provision according to aging analysis:
√ Applicable □ Not applicable
In RMB Yuan
Ending Beginning
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Including：
Within 6 months 955,406,533.48 92.15 - 753,965,095.69 92.91 -
6 to 12 months 29,378,417.75 2.83 1,468,920.88 18,262,202.43 2.25 913,110.11
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Within 1 year
984,784,951.23 94.98 1,468,920.88 772,227,298.12 95.16 913,110.11
subtotal
1 to 2 years 24,457,498.59 2.36 2,445,749.86 12,198,268.67 1.50 1,219,826.87
2 to 3 years 2,514,884.50 0.24 754,465.35 1,451,653.80 0.18 435,496.14
3 to 4 years 10,530,865.52 1.02 5,265,432.76 10,368,508.00 1.28 5,184,254.00
4 to 5 years 679,200.00 0.07 543,360.00 1,319,200.00 0.16 1,055,360.00
Over 5 years 13,805,248.51 1.33 13,805,248.51 13,957,541.62 1.72 13,957,541.62
Total 1,036,772,648.35 100 24,283,177.36 811,522,470.21 100 22,765,588.74
Within groups, accounts receivable analyzed for provision according to other analysis:
In RMB Yuan
Ending Beginning
Name
Balance Provision Balance Provision
Accounts receivable provision
386,230,274.69 - 283,985,329.09 -
for bad debts with related party
On 30 June 2018, there is no accounts receivable with separate amounts and separate provision for bad debts (31 December 2017:
none).
(2) As for June 30, 2018, provision for impairment of accounts receivable amounting to RMB 2,398,816.90 has been accrued
(2017: RMB 8,587,659.49). Provision for impairment of accounts receivable amounting to RMB 798,522.79 has been reversed
(2017: RMB 3,058,543.46).
(3) As at 30 June 2018, provision for impairment of accounts receivable amounting to RMB 82,705.49 is written off (2017:
RMB 444,720.00).
(4) As at 30 June 2018, the top five debtors of accounts receivables totalled RMB 717,217,296.14, accounting for 36.53% of
total receivables (2017: RMB 553,166,995.66, accounting for 30.02% of total receivables).
(5) As at 30 June 2018, the group has no accounts receivable as a termination of financial assets transfer (2017: none).
4. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
Ending Beginning
Aging
Amount % Amount %
Within 1 year 992,356,992.65 98.84 1,099,772,284.11 99.78
1 to 2 years 10,141,614.24 1.01 447,067.45 0.04
2 to 3 years 1,000,000.00 0.10 1,485,647.87 0.13
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Over 3 years 534,931.90 0.05 534,931.90 0.05
Total 1,004,033,538.79 100 1,102,239,931.33 100
As at 30 June 2018, the total amount of the top five prepayments was RMB 888,386,086.76, accounting for 88.48% of the total
amount of prepayments (2017: RMB 993,006,069.80, accounting for 90.09%).
5. Interest receivable
In RMB Yuan
Item Ending Beginning
Fixed deposits 55,081,274.30 42,184,263.88
6. Other receivables
(1) An analysis of the other receivables by category as at the end of reporting period is as follows:
In RMB Yuan
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed
1,883,637,827.35 89.65 - - 1,404,077,945.42 85.12 - -
individually for
provision
Other receivables analyzed as groups for provision
Group 1: Other
receivables analyzed for
186,364,915.47 8.87 1,625,933.46 0.87 201,199,672.08 12.20 1,177,852.02 0.59
provision according to
aging analysis
Group 2:Other
receivables from related 28,165,286.80 1.34 - - 41,176,689.56 2.50 - -
parties
Group subtotal 214,530,202.27 10.21 1,625,933.46 0.76 242,376,361.64 14.70 1,177,852.02 0.49
individually insignificant
items but analyzed
2,976,813.22 0.14 2,976,813.22 100 2,978,743.66 0.18 2,978,743.66 100
individually for
provision
Total 2,101,144,842.84 100.00 4,602,746.68 0.22 1,649,433,050.72 100.00 4,156,595.68 0.25
Within groups, other receivables analyzed for provision according to aging analysis
√ Applicable □ Not applicable
In RMB Yuan
Aging Ending Beginning
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Including:
Within 6 months 171,786,449.50 92.17 - 194,289,589.40 96.57 -
6 to 12 months 12,336,442.40 6.62 616,822.12 5,512,392.58 2.74 275,619.62
Within 1 year subtotal 184,122,891.90 98.79 616,822.12 199,801,981.98 99.31 275,619.62
1 to 2 years 1,072,883.60 0.58 107,288.36 405,884.15 0.20 40,588.42
2 to 3 years 290,443.07 0.16 87,132.92 48,000.00 0.02 14,400.00
3 to 4 years 128,014.34 0.07 64,007.61 193,123.94 0.10 96,561.97
4 to 5 years 0.55 - 0.44 - - -
Over 5 years 750,682.01 0.40 750,682.01 750,682.01 0.37 750,682.01
Total 186,364,915.47 100 1,625,933.46 201,199,672.08 100 1,177,852.02
Within groups, other receivable analyzed for provision according to other analysis:
In RMB Yuan
Ending Beginning
Name
Balance Provision Balance Provision
Other receivable provision for
28,165,286.80 - 41,176,689.56 -
bad debts with related party
On 30 June 2018, there is no other receivable with separate amounts and separate provision for bad debts (31 December 2017: none).
(2) As for June 30, 2018, provision for impairment of other receivable amounting to RMB 520,778.00 has been accrued (2017:
RMB 1,231,570.84). Provision for impairment of other receivable amounting to RMB 18,072.20 has been reversed (2017:
RMB 1,109,854.82).
(3) As at 30 June 2018, provision for impairment of other receivable amounting to RMB 56,554.8 is written off (2017: RMB
85,402.61).
(4) As at 30 June 2018, the group has no other receivables as a termination of financial assets transfer (2017: none).
(5) As at 30 June 2018, top five debtors of other receivables are as follows:
Proportion of total other
Debtors Ending balance Years
receivables (%)
First 1,544,178,640.00 Within 3 years 73.49
Second 229,198,886.11 Within 3 years 10.91
Third 28,823,310.00 1 to 2 years 1.37
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Fourth 27,431,572.54 Within 6 months 1.31
Fifth 21,053,000.00 Within 1 year 1.00
Total 1,850,685,408.65 - 88.08
7. Inventory
(1) Classification of inventory
In RMB Yuan
Ending Beginning
Item
Balance Provision Net value Balance Provision Net value
Raw materials 608,090,995.26 53,440,961.77 554,650,033.49 461,911,233.10 33,713,007.05 428,198,226.05
Work in transit 448,120,820.40 - 448,120,820.40 511,912,371.36 - 511,912,371.36
Work in progress 856,411,506.90 20,963,970.65 835,447,536.25 633,181,546.29 32,329,369.55 600,852,176.74
Commodity stock 2,934,264,568.28 101,360,370.90 2,832,904,197.38 3,154,147,791.47 103,902,330.06 3,050,245,461.41
Revolving materials - - - 26,530,300.45 - 26,530,300.45
Spare parts 55,298,889.07 - 55,298,889.07 48,444,885.79 - 48,444,885.79
Total 4,902,186,779.91 175,765,303.32 4,726,421,476.59 4,836,128,128.46 169,944,706.66 4,666,183,421.80
(2) Provision for inventory
In RMB Yuan
Deduction
Type Beginning Provision Ending
Reversal Write-off
Raw materials 33,713,007.05 21,959,954.84 636,470.54 1,595,529.58 53,440,961.77
Work in progress 32,329,369.55 2,861,402.11 13,237,201.09 989,599.92 20,963,970.65
Commodity stock 103,902,330.06 96,089,591.05 198,853.86 98,432,696.35 101,360,370.90
Total 169,944,706.66 120,910,948.00 14,072,525.49 101,017,825.85 175,765,303.32
8. Other current assets
In RMB Yuan
Item Ending Beginning
Accrual input tax 2,162,944,222.31 1,699,621,114.17
Others 32,110,668.20 6,289,416.26
Total 2,195,054,890.51 1,705,910,530.43
9. Available-for-sale financial assets
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Item Ending Beginning
Available-for-sale equity securites 136,675,000.00 164,365,000.00
Other 427,552,000.00 377,552,000.00
Total 564,227,000.00 541,917,000.00
1. The available-for-sale equity securites are the 35.50 million shares of Southwest Securities Co., Ltd as of June 30, 2018.
2. Others: On June 30, 2018 the group’s ownership,measured by the cost of the investment, does not have control, joint control or
significant influenceand there is no offer in the active market, the fair value can not be reliably measured by the equity investment.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
10. Long-term equity investment
In RMB Yuan
Explanation for
the difference
Voting between
Accounting Addition/ Shareholding Current Current cash
Investee Initial amount Beginning Ending percentage shareholding Impairment
method (deduction) percentage (%) provision dividends
(%) percentage and
voting
percentage
Joint ventures
Chongqing Changan Suzuki
Equity 237,719,933.33 1,190,705,710.43 -80,032,104.09 1,110,673,606.34 50 50 None - - -
Automobile Co., Ltd
Jiangling Holding Co., Ltd Equity 1,008,511,522.00 2,907,749,943.37 -83,707,141.74 2,824,042,801.63 50 50 None - - -
Changan Ford Automobile Co.,
Ltd(former name: Changan Ford Equity 975,232,926.29 4,125,426,104.20 866,427,723.13 4,991,853,827.33 50 50 None - - -
Mazda Automobile Co., Ltd)
Changan Mazda Automobile
Equity 1,097,839,635.00 2,439,429,811.02 635,451,737.12 3,074,881,548.14 50 50 None - - -
Co., Ltd
Changan Ford Mazda Engine
Equity 786,734,634.10 903,838,395.08 -73,187,649.79 830,650,745.29 50 50 None - - 114,500,000.00
Co., Ltd
Changan PSA Automobiles Co.,
Equity 2,007,841,700.00 93,561,126.76 -171,729,822.06 -78,168,695.30 50 50 None - - -
Ltd，a JV of the Company
Associates -
Chongqing Changan Kuayue Equity 61,800,885.00 101,399,892.43 17,458,524.85 118,858,417.28 34.3 34.3 None - - -
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Automobile Co., Ltd
Chongqing Changan Kuayue
Equity 1.00 - - - 34.3 34.3 None - - -
Automobile Sales Co., Ltd
Beijing Fangan Taxi LLC Equity 6,000,000.00 - - - 20.7 20.7 None - - -
Chongqing Auto Finance Co.Ltd Equity 1,805,000,000.00 1,817,669,991.73 137,070,317.23 1,954,740,308.96 28.66 28.66 None - - -
Zhenjiang Demao Hairun Equity
Investment Fund Partnership Equity 518,743,029.48 518,742,921.95 289,516,719.35 808,259,641.30 32.67 32.67 None - - -
(Limited Partnership)
Hangzhou Chelizi Intelligent
Equity 2,243,750.00 - 2,243,750.00 2,243,750.00 20 20 None - - -
Technology Co., Ltd.
Total -- 8,507,668,016.20 14,098,523,896.97 1,539,512,054.00 15,638,035,950.97 -- -- -- - - 114,500,000.00
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
11. Investment property
According to the cost of the investment real estate
In RMB Yuan
Item Beginning Addition Deduction Ending
I. Original cost 10,050,100.00 - - 10,050,100.00
Buildings 10,050,100.00 - - 10,050,100.00
II. Accumulated depreciationand
2,493,827.16 113,355.78 - 2,607,182.94
amortization
Buildings 2,493,827.16 113,355.78 - 2,607,182.94
III. Net Value 7,556,272.84 -113,355.78 - 7,442,917.06
Buildings 7,556,272.84 -113,355.78 - 7,442,917.06
IV. Impairment Provision 7,556,272.84 -113,355.78 - 7,442,917.06
Buildings 7,556,272.84 -113,355.78 - 7,442,917.06
12. Fixed assets
In RMB Yuan
Item Beginning Addition Deduction Ending
I. Original cost 31,092,079,689.71 518,376,227.55 359,069,765.75 31,251,386,151.51
Buildings 7,588,350,429.43 6,957,485.61 4,967,723.31 7,590,340,191.73
Machinery 17,780,317,915.84 101,696,094.53 179,543,314.95 17,702,470,695.42
Vehicles 758,168,041.39 39,022,979.13 2,186,906.73 795,004,113.79
Other Equipments 4,965,243,303.05 370,699,668.28 172,371,820.76 5,163,571,150.57
II. Accumulated
11,166,770,830.03 1,045,654,724.17 264,765,212.09 11,947,660,342.11
depreciation
Buildings 1,585,639,930.24 127,192,502.26 - 1,712,832,432.50
Machinery 7,183,157,682.85 521,677,710.87 94,478,028.29 7,610,357,365.43
Vehicles 207,356,765.94 70,246,042.36 1,431,464.77 276,171,343.53
Other Equipments 2,190,616,451.00 326,538,468.68 168,855,719.03 2,348,299,200.65
III. Net Value 19,925,308,859.68 -527,278,496.62 94,304,553.66 19,303,725,809.40
Buildings 6,002,710,499.19 -120,235,016.65 4,967,723.31 5,877,507,759.23
Machinery 10,597,160,232.99 -419,981,616.34 85,065,286.66 10,092,113,329.99
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Vehicles 550,811,275.45 -31,223,063.23 755,441.96 518,832,770.26
Other Equipments 2,774,626,852.05 44,161,199.60 3,516,101.73 2,815,271,949.92
IV.Impairment Provision 880,779,908.98 - 33,638,931.71 847,140,977.27
Buildings 83,371,676.72 - - 83,371,676.72
Machinery 673,609,726.30 - 32,024,837.06 641,584,889.24
Vehicles 223,852.23 - - 223,852.23
Other Equipments 123,574,653.73 - 1,614,094.65 121,960,559.08
V. Book Value 19,044,528,950.70 -527,278,496.62 60,665,621.95 18,456,584,832.13
Buildings 5,919,338,822.47 -120,235,016.65 4,967,723.31 5,794,136,082.51
Machinery 9,923,550,506.69 -419,981,616.34 53,040,449.60 9,450,528,440.75
Vehicles 550,587,423.22 -31,223,063.23 755,441.96 518,608,918.03
Other Equipments 2,651,052,198.32 44,161,199.60 1,902,007.08 2,693,311,390.84
The depreciation during the reporting period is RMB 1,045,654,724.17. During the period the construction in progress amounting to RMB
462,849,859.01 is transferred to the fixed asset.
13. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Closing balance Openning balance
Item
Balance Provision Book value Balance Provision Book value
Mini-bus production
1,123,638,327.96 - 1,123,638,327.96 997,340,616.73 - 997,340,616.73
equipment
Yuzui motor city project 602,342,467.90 - 602,342,467.90 247,220,662.88 - 247,220,662.88
Car production equipment 253,282,390.98 - 253,282,390.98 165,767,240.81 - 165,767,240.81
Engine plant 496,911,181.63 - 496,911,181.63 341,191,269.61 - 341,191,269.61
Vehicle research institution 665,267,271.81 - 665,267,271.81 401,869,572.35 - 401,869,572.35
Vehicle moulds 461,248,201.97 - 461,248,201.97 365,419,879.40 - 365,419,879.40
Light vehicle technical
transformation project of 52,602,943.34 - 52,602,943.34 28,393,497.74 - 28,393,497.74
Baoding Changan bus
Plant for vehicle test project 6,413,634.95 - 6,413,634.95 6,052,888.00 - 6,052,888.00
Beijing vehicle construction
156,149,317.24 - 156,149,317.24 163,600,842.58 - 163,600,842.58
project
Engine Base of Nanjing 5,126,636.04 - 5,126,636.04 3,201,929.85 - 3,201,929.85
Yuzui Refitting factory 31,385,789.99 - 31,385,789.99 30,880,135.49 - 30,880,135.49
Car production Project Of 502,844,386.55 - 502,844,386.55 156,409,567.96 - 156,409,567.96
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Hefei Changan
Nanjing Welding
Technological - - - 3,351,229.28 - 3,351,229.28
transformation project
Yubei Factory 156,977.90 - 156,977.90 145,173.18 - 145,173.18
Others 370,871,503.68 - 370,871,503.68 323,328,649.66 - 323,328,649.66
Total 4,728,241,031.94 - 4,728,241,031.94 3,234,173,155.52 - 3,234,173,155.52
(2) Movement of major construction in progress projects
In RMB Yuan
Transferred to fixed
Item Beginning Addition Deduction Ending
assets
Mini-bus production
997,340,616.73 144,371,711.76 18,074,000.53 - 1,123,638,327.96
equipment
Yuzui motor city project 247,220,662.88 425,202,343.66 70,080,538.64 - 602,342,467.90
Car production equipment 165,767,240.81 102,294,839.15 14,779,688.98 - 253,282,390.98
Engine plant 341,191,269.61 201,304,112.54 45,584,200.52 - 496,911,181.63
Vehicle research institution 401,869,572.35 270,459,262.14 7,061,562.68 - 665,267,271.81
Vehicle moulds 365,419,879.40 174,022,790.49 78,194,467.92 - 461,248,201.97
Light vehicle technical
transformation project of 28,393,497.74 24,209,445.60 - - 52,602,943.34
Baoding Changan bus
Plant for vehicle test project 6,052,888.00 428,123.01 67,376.06 - 6,413,634.95
Beijing vehicle construction
163,600,842.58 63,733,108.34 71,184,633.68 - 156,149,317.24
project
Engine Base of Nanjing 3,201,929.85 2,273,762.79 349,056.60 - 5,126,636.04
Yuzui Refitting factory 30,880,135.49 2,199,007.15 1,693,352.65 - 31,385,789.99
Car production Project Of
156,409,567.96 346,434,818.59 - - 502,844,386.55
Hefei Changan
Nanjing Welding
Technological 3,351,229.28 - 3,351,229.28 - -
transformation project
Yubei Factory 145,173.18 11,804.72 - - 156,977.90
Others 323,328,649.66 199,972,605.49 152,429,751.47 - 370,871,503.68
Total 3,234,173,155.52 1,956,917,735.43 462,849,859.01 - 4,728,241,031.94
(3) Impairment for construction in progress
None
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
14. Liquidation of fixed assets
In RMB Yuan
Item Beginning Ending Reason
machinery equipment 4,716.98 1,342,869.14 Asset retirement
Total 4,716.98 1,342,869.14
15. Intangible assets
Details of intangible assets
In RMB Yuan
Item Beginning Addition Deduction Ending
I. Original cost 7,156,994,397.31 309,555,465.10 - 7,466,549,862.41
Land use rights 2,384,260,724.00 74,140,024.32 - 2,458,400,748.32
Software use rights 440,803,454.31 4,276,291.77 - 445,079,746.08
Trademark use rights 211,784,400.00 10,306.61 - 211,794,706.61
Non-patent technology 4,120,145,819.00 231,128,842.40 - 4,351,274,661.40
II. Accumulated amortization 2,885,416,546.63 349,623,578.41 - 3,235,040,125.04
Land use rights 280,991,802.54 25,278,204.72 - 306,270,007.26
Software use rights 396,959,100.18 17,108,763.10 - 414,067,863.28
Trademark use rights 153,453,466.62 8,749,999.98 - 162,203,466.60
Non-patent technology 2,054,012,177.29 298,486,610.61 - 2,352,498,787.90
III. Net value 4,271,577,850.68 -40,068,113.31 - 4,231,509,737.37
Land use rights 2,103,268,921.46 48,861,819.60 - 2,152,130,741.06
Software use rights 43,844,354.13 -12,832,471.33 - 31,011,882.80
Trademark use rights 58,330,933.38 -8,739,693.37 - 49,591,240.01
Non-patent technology 2,066,133,641.71 -67,357,768.21 - 1,998,775,873.50
IV. Impairment provision 223,632,721.01 - 3,600,948.83 220,031,772.18
Software use rights 21,319,804.81 - - 21,319,804.81
Non-patent technology 202,312,916.20 - 3,600,948.83 198,711,967.37
V. Book value 4,047,945,129.67 -40,068,113.31 -3,600,948.83 4,011,477,965.19
Land use rights 2,103,268,921.46 48,861,819.60 - 2,152,130,741.06
Software use rights 22,524,549.32 -12,832,471.33 - 9,692,077.99
Trademark use rights 58,330,933.38 -8,739,693.37 - 49,591,240.01
Non-patent technology 1,863,820,725.51 -67,357,768.21 -3,600,948.83 1,800,063,906.13
As at 30 June 2018, the intangible assets from internal research and development account for 44.87% of total
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
intangible assets.
16. Development expenditure
In RMB Yuan
Deduction
Charged to income Charged to income Ending
Item Beginning Addition
Statement of the Statement of the Current
Current period period
Automobile
836,638,328.10 485,401,483.77 61,739,089.55 304,287,342.35 956,013,379.97
Development
Total 836,638,328.10 485,401,483.77 61,739,089.55 304,287,342.35 956,013,379.97
17. Goodwill
In RMB Yuan
Impairment
Investee Beginning Addition Deduction Ending
provision
Hebei Changan Automobile Co., Ltd 9,804,394.00 - - 9,804,394.00 -
Nanjing Changan Automobile Co., Ltd - - - - 73,465,335.00
Total 9,804,394.00 - - 9,804,394.00 73,465,335.00
18. Long-term deferred expenses
In RMB Yuan
Item Beginning Addition Amortization Other deduction Ending
Long-term deferred expenses 13,545,589.39 1,246,951.68 223,469.15 - 14,569,071.92
Total 13,545,589.39 1,246,951.68 223,469.15 - 14,569,071.92
19. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities:
In RMB Yuan
Item Ending Beginning
Deferred tax assets:
Provision for the impairment of assets 208,635,488.68 168,817,572.61
Accrued expenses and contingent liabilities 786,960,665.17 769,116,660.06
Unpaid tech development expense and
76,787,383.53 77,899,364.21
advertisement expense
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Deferred income 446,396,210.91 479,391,091.10
Unpaid salary and bonus and others 43,367,541.84 38,633,123.29
Subtotal 1,562,147,290.13 1,533,857,811.27
Deferred tax liabilities:
Available-for-sale financial assets on the changes
17,069,250.00 21,222,750.00
in fair value
Others
Subtotal 17,069,250.00 21,222,750.00
20. Provision for the impairment of assets
In RMB Yuan
Deduction
Item Beginning Addition Ending
Reversal Write-off
I. Bad debt provision 40,187,117.99 2,919,594.90 816,594.99 139,260.29 42,150,857.61
II. Provision for obsolete
169,944,706.66 120,910,948.00 14,072,525.49 101,017,825.85 175,765,303.32
inventory
III. Provision for the impairment
880,779,908.98 - - 33,638,931.71 847,140,977.27
of fixed assets
IV. Provision for the impairment
223,632,721.01 - - 3,600,948.83 220,031,772.18
of intangible assets
V. Provision for the impairment
73,465,335.00 - - - 73,465,335.00
of goodwill
VI. Provision for the impairment
of available-for-sale financial 1,809,274.00 - - - 1,809,274.00
assets
Total 1,389,819,063.64 123,830,542.90 14,889,120.48 138,396,966.68 1,360,363,519.38
21. Short-term loans
In RMB Yuan
Item Ending Beginning
Pledge loans 186,000,000.00 175,000,000.00
Guaranteed loans - 10,000,000.00
Credit loans
Total 186,000,000.00 185,000,000.00
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
22. Notes payable
In RMB Yuan
Item Ending Beginning
Commercial acceptance bill - 1,585,249,372.80
Bank acceptance bill 20,222,535,762.78 16,417,677,207.01
Total 20,222,535,762.78 18,002,926,579.81
23. Accounts payable
In RMB Yuan
Item Ending Beginning
Accounts payable 15,501,582,938.54 21,902,826,194.15
total 15,501,582,938.54 21,902,826,194.15
24. Advances from customers
In RMB Yuan
Item Ending Beginning
Advances from customers 1,935,292,614.32 3,878,382,556.43
total 1,935,292,614.32 3,878,382,556.43
25. Payroll payable
30 June 2018
In RMB Yuan
Item Beginning Addition Deduction Ending
Short term salary benefits 1,567,656,287.03 2,454,600,682.62 3,336,139,763.96 686,117,205.69
Defined contribution plans 68,156,035.30 272,419,202.68 256,353,067.81 84,222,170.17
Early retirement benefits 5,073,000.00 981,065.47 955,119.87 5,098,945.60
Total 1,640,885,322.33 2,728,000,950.77 3,593,447,951.64 775,438,321.46
Short term salary benefits as follows:
30 June 2018
In RMB Yuan
Item Beginning Addition Deduction Ending
Salary, bonus, allowance
1,207,501,206.86 1,949,500,550.62 2,841,138,372.75 315,863,384.73
and subsidy
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Employee benefit 207,402,348.95 111,906,449.19 109,943,371.44 209,365,426.70
Social insurance -174,158.92 166,910,544.15 164,398,082.31 2,338,302.92
Housing accumulation fund 59,222,161.27 156,439,370.15 155,442,121.89 60,219,409.53
Labor fund and employee
93,704,728.87 69,843,768.51 65,217,815.57 98,330,681.81
education fund
Total 1,567,656,287.03 2,454,600,682.62 3,336,139,763.96 686,117,205.69
Defined contribution plans as follows:
30 June 2018
In RMB Yuan
Item Beginning Addition Deduction Ending
Basic retirement
60,088,662.53 265,417,650.40 248,719,236.73 76,787,076.20
security
Unemployment
8,067,372.77 7,001,552.28 7,633,831.08 7,435,093.97
insurance
Total 68,156,035.30 272,419,202.68 256,353,067.81 84,222,170.17
26. Taxes payable
In RMB Yuan
Item Ending Beginning
Value-added tax 6,751,596.16 20,724,979.91
Consumption tax 215,617,720.51 315,331,520.62
Corporate income tax -34,319,675.86 -5,866,525.85
Individual Income tax 1,475,832.48 3,496,728.45
City maintenance and construction tax 1,563,752.49 27,566,226.75
Education additional expenses 1,058,841.54 20,798,543.86
Others 14,480,761.81 12,269,923.40
Total 206,628,829.13 394,321,397.14
27. Dividend payable
In RMB Yuan
Item Ending Beginning
Dividend payable – A share dividend 2,157,790,283.66 -
Dividend payable – Hebei Changan Minority
79,742.80 79,742.80
interests
Total 2,157,870,026.46 79,742.80
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
28. Other payables
In RMB Yuan
Item Ending Beginning
Deposits of dealer and supplier 48,038,638.84 64,938,552.00
Maintenance fees 193,799,878.35 166,703,421.92
Sales incentive fees - 23,159,476.00
Advertising fees 231,462,027.04 322,762,545.86
Warehousing and transport fees 273,094,120.79 169,100,711.73
Integrated service charges and miscellaneous
190,772,430.73 140,284,047.51
expenses
Purchase and construction of fixed assets,
591,860,696.22 1,499,489,207.73
intangible assets and project deposits
Others 291,098,071.43 212,575,448.23
Total 1,820,125,863.40 2,599,013,410.98
29. Contingent liabilities
In RMB Yuan
Item Beginning Addition Deduction Ending
Warranty 2,423,958,274.70 481,330,044.04 363,245,192.27 2,542,043,126.47
Total 2,423,958,274.70 481,330,044.04 363,245,192.27 2,542,043,126.47
Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
30. Other current liabilities
In RMB Yuan
Item Ending Beginning
Accrued utilities 12,037,428.18 59,634,137.49
Accrued transportation fee 626,565,018.81 540,328,536.56
Accrued maintenance fee 68,247,641.79 55,133,842.44
Accrued technology transfer and development
293,074,345.01 164,331,878.15
fee
Accrued commercial discount payable 2,018,529,715.36 1,928,754,888.23
Accrued market development expense 556,882,954.98 578,090,324.55
Accrued rental fee 93,753,857.96 96,417,863.95
Accrued consultancy fee 36,724,136.50 45,510,193.20
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Others 86,598,488.91 93,952,981.25
Total 3,792,413,587.50 3,562,154,645.82
31. Non-current liabilities due within one year
In RMB Yuan
Item Ending Beginning
Non-current liabilities due within one year 13,423,420.00 13,151,946.67
Total 13,423,420.00 13,151,946.67
32. Long-term loans
In RMB Yuan
Item Ending Beginning
Credit loan 13,423,420.00 19,727,920.00
Deduction of loans due within one year -13,423,420.00 -13,151,946.67
Total - 6,575,973.33
33. Special payables
In RMB Yuan
Item Beginning Addition Deduction Ending
Project 863 2,603,472.95 - 151,423.33 2,452,049.62
Test on key technology of hybrid
1,346,665.57 - 4,200.00 1,342,465.57
electric vehicles
New vehicle product 7,808,326.58 - 1,879,277.00 5,929,049.58
Automobile product chain sharing
4,550,973.75 - 3,513,440.44 1,037,533.31
platform
Gasoline Engine Development 1,453,543.15 - 214,506.15 1,239,037.00
Changan Automobile E-type gasoline
engine cylinder block, cylinder head
67,480,246.95 - 67,412,924.31 67,322.64
machine plus production line
demonstration project
Land relocation compensation 55,350,709.40 - - 55,350,709.40
Automotive order to delivery system
1,450,263.11 - - 1,450,263.11
project
Industrialization of patented
662,296.98 - 462,296.98 200,000.00
technologies
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Vehicle network intelligent information
terminal middleware key technologies 1,460,052.95 100,000.00 675,662.40 884,390.55
research and application
Development and industrialization of
14,582,280.58 - 11,136,000.00 3,446,280.58
C206 pure electric cars
System development of
electromagnetic compatibility of key 1,334,037.55 - 288,323.56 1,045,713.99
accessories on electric cars
Intalligent manufacturIng project 45,455,157.40 - 9,693,416.91 35,761,740.49
Lightweight design of automobile
63,564,705.20 - 786,375.01 62,778,330.19
structure
All-region platform development
1,000,000.00 - 1,000,000.00 -
technology
LTE-V wireless transmission
technology standardization and 2,586,540.75 - 500,019.24 2,086,521.51
prototype development verification
Development and demonstration
application of high performance 1,501,158.52 - 22,074.65 1,479,083.87
magnesium alloy
Research and application of IoT control
integration technology in intelligent 3,145,200.00 - 453,530.49 2,691,669.51
cabin system of automobile industry
Others 13,271,519.63 27,398,400.00 3,370,853.78 37,299,065.85
Total 290,607,151.02 27,498,400.00 101,564,324.25 216,541,226.77
34. Deferred income
30 June, 2018
In RMB Yuan
Item Beginning Addition Deduction Ending
Government grants related to
2,825,085,486.08 17,358,750.00 77,441,797.78 2,765,002,438.30
assets
Government grants related to
754,048,245.36 300,000,000.00 152,034,541.70 902,013,703.66
income
Others 48,683,687.61 14,924,066.82 - 63,607,754.43
Total 3,627,817,419.05 332,282,816.82 229,476,339.48 3,730,623,896.39
2017
Item Beginning Addition Deduction Ending
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Government grants related to
2,762,931,782.46 246,106,000.00 183,952,296.38 2,825,085,486.08
assets
Government grants related to
- 900,000,000.00 145,951,754.64 754,048,245.36
income
Others 22,953,843.91 25,729,843.70 - 48,683,687.61
Total 2,785,885,626.37 1,171,835,843.70 329,904,051.02 3,627,817,419.05
As at 30 June 2018, details of liabilities related to government grants are as follows:
Recorded to Relates to
Item Beginning Addition Ending
other income asset/gain
Project subsidy funds 2,393,683,325.86 - 52,423,241.54 2,341,260,084.32 Related to asset
Subsidies for plant
343,254,680.06 - 24,748,714.76 318,505,965.30 Related to asset
construction
Technical innovation funds 16,150,000.00 - - 16,150,000.00 Related to asset
Other asset - related subsidies 71,997,480.16 17,358,750.00 269,841.48 89,086,388.68 Related to asset
Other income - related
754,048,245.36 300,000,000.00 152,034,541.70 902,013,703.66 Related to income
subsidies
Total 3,579,133,731.44 317,358,750.00 229,476,339.48 3,667,016,141.96
As at 31 December 2017, details of liabilities related to government grants are as follows:
Recorded to Relates to
Item Beginning Addition Ending
non-operating income asset/gain
Project subsidy funds 2,338,351,870.83 176,401,000.00 121,069,544.97 2,393,683,325.86 Related to asset
Subsidies for plant
392,747,109.56 - 49,492,429.50 343,254,680.06 Related to asset
construction
Technical innovation
16,150,000.00 - - 16,150,000.00 Related to asset
funds
Other asset - related
15,682,802.07 69,705,000.00 13,390,321.91 71,997,480.16 Related to asset
subsidies
Other income - related Related to
- 900,000,000.00 145,951,754.64 754,048,245.36
subsidies income
Total 2,762,931,782.46 1,146,106,000.00 329,904,051.02 3,579,133,731.44
35. Share capital
In RMB Yuan
Current movement
Beginning Issuance of Transfer of Ending
Stock dividend others Subtotal
shares reserve to
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
common shares
The sum of
4,802,648,511.00 - - - - - 4,802,648,511.00
shares
36. Capital reserves
In RMB Yuan
Item Beginning Addition Deduction Ending
Share premium 4,969,218,884.37 - - 4,969,218,884.37
Share-based payment 32,697,000.00 - - 32,697,000.00
Capital reserve transferred
44,496,899.00 - - 44,496,899.00
arising from the old standards
Restricted capital reserve of
17,015,985.20 - - 17,015,985.20
equity investments
Others 35,977,188.37 - - 35,977,188.37
Total 5,099,405,956.94 - - 5,099,405,956.94
37. Other comprehensive income
In RMB Yuan
Item Report period Same period of last year
1. Profits (loss) generated from available for sale financial
-27,690,000.00 -53,960,000.00
assets
Less: Available for sale financial assets arising from income tax
-4,153,500.00 -8,094,000.00
effect
Net - through other comprehensive income into the profits and
losses of the current
Subtotal -23,536,500.00 -45,866,000.00
2. Translation differences of foreign currency financial
-19,190,455.30 -3,405,529.86
statements
3. Shares in the other comprehensive income of the investee
289,756,488.89 -
accounted for according to the equity method
Total 247,029,533.59 -49,271,529.86
38. Surplus reserves
In RMB Yuan
Item Beginning Addition Deduction Ending
Statutory surplus 2,401,324,255.50 - - 2,401,324,255.50
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Total 2,401,324,255.50 - - 2,401,324,255.50
39. Retained earnings
In RMB Yuan
Item Sum
Retained earnings at beginning of year before adjustments 35,184,073,061.94
Adjust the early undistributed profits total
Retained earnings at beginning of year after adjustments 35,184,073,061.94
Add: Net profit belong to parent company 1,609,606,578.84
Less: the statutory surplus reserves
Extract discretionary surplus reserve
Extract general risk preparation
Common stock dividends payable 2,157,790,283.66
Retained earnings at the end 34,635,889,357.12
40. Operating revenue and cost
(1) Operating revenue and operating cost
In RMB Yuan
Item Report period Same period of last year
Operating revenue 34,440,982,013.45 32,617,521,902.09
Other operating revenue 1,201,850,176.59 937,691,207.37
Operating cost 30,614,845,704.45 28,792,755,690.32
(2) Main business (divisions)
In RMB Yuan
Report period Same period of last year
Item
Operating revenue Operating cost Operating revenue Operating cost
Motor industry 34,440,982,013.45 30,172,410,492.58 32,617,521,902.09 28,525,190,993.69
Total 34,440,982,013.45 30,172,410,492.58 32,617,521,902.09 28,525,190,993.69
(3) Main business (product)
In RMB Yuan
Report period Same period of last year
Item
Operating revenue Operating cost Operating revenue Operating cost
Sale of goods 34,368,280,256.20 30,082,686,676.78 32,543,856,637.89 28,413,429,812.27
Outsourcing processing 72,701,757.25 89,723,815.80 73,665,264.20 111,761,181.42
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Total 34,440,982,013.45 30,172,410,492.58 32,617,521,902.09 28,525,190,993.69
(4) Main business areas (points)
In RMB Yuan
Report period Same period of last year
Item
Operating revenue Operating cost Operating revenue Operating cost
Domestic 33,128,902,612.24 28,783,568,072.99 31,939,968,925.48 27,825,290,643.34
Overseas 1,312,079,401.21 1,388,842,419.59 677,552,976.61 699,900,350.35
Total 34,440,982,013.45 30,172,410,492.58 32,617,521,902.09 28,525,190,993.69
41. Tax and surcharges
In RMB Yuan
Item Report period Same period of last year
Consumption tax 1,046,865,578.31 1,176,447,268.05
City maintenance and construction tax 81,462,766.85 94,761,334.23
Education additional expenses 60,907,556.48 76,037,881.67
Others 97,679,299.93 96,539,996.19
Total 1,286,915,201.57 1,443,786,480.14
42. Operating expenses
In RMB Yuan
Item Report period Same period of last year
Payroll and welfare 179,109,833.87 167,605,237.83
Promotional fee and advertising fee 903,062,133.99 172,192,621.54
Transportation expenses 1,045,016,389.46 1,060,691,210.71
Travelling expenses 30,138,418.47 35,699,649.99
Package expenses 30,646,835.90 10,580,395.13
Administrative expenses 2,271,915.34 7,627,254.67
Selling service fee 309,623,568.29 478,091,205.25
Consulting fee 2,347,166.50 -
Training fee 15,475,414.33 -
Others 25,770,752.36 71,688,466.89
Total 2,543,462,428.51 2,004,176,042.01
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
43. General and administrative expenses
In RMB Yuan
Item Report period Same period of last year
Payroll and welfare 1,033,979,823.22 753,919,030.38
Technology research expenses 481,875,764.34 496,834,118.06
Administrative expenses 6,553,837.65 10,389,794.81
Depreciation and amortization 482,901,113.09 439,047,564.15
Miscellaneous service charges 1,189,374.05 1,977,124.68
Tax fee - 2,222,681.88
Traffic expenses 26,145,159.06 25,708,114.03
Travelling expenses 56,659,448.61 13,619,514.39
Entertainment expenses 1,536,025.02 1,584,377.47
Others 64,560,717.01 40,431,751.26
Total 2,155,401,262.05 1,785,734,071.11
44. Financial expenses
In RMB Yuan
Item Report period Same period of last year
Interest expense 13,996,367.31 40,703,286.60
Less: interest income 263,722,875.78 303,510,275.41
Exchange gain or loss 16,320,129.48 1,961,950.68
Others 7,887,536.68 14,023,435.98
Total -225,518,842.31 -246,821,602.15
45. Assets disposal income
In RMB Yuan
Included in 2018 non-recurring
Item Report period Same period of last year
gains and losses
Fixed assets disposal income 18,771,809.69 8,914,486.07 18,771,809.69
Total 18,771,809.69 8,914,486.07 18,771,809.69
46. Impairment loss on assets
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Item Report period Same period of last year
1. Bad debt loss 2,102,999.91 -623,835.34
2. Impairment provision of obsolete inventory 106,838,422.51 87,591,687.47
3. Impairment provision of fixed assets - 5,154,868.33
Total 108,941,422.42 92,122,720.46
47. Investment income
In RMB Yuan
Item Report period Same period of last year
Long-term equity investment income under equity
1,362,011,815.11 3,831,618,978.64
method
Investment income obtained during the period of
holding available-for-sale financial assets
Total 1,362,011,815.11 3,831,618,978.64
48. Other income
In RMB Yuan
Item Report period Same period of last year Explain
R&D special funds 526,000,000.00 500,000,000.00
Vehicle development project support 331,454,741.70 390,790,754.64
Research and development grants for
100,000,000.00 158,190,000.00
power and intelligent technology
Deferred revenue amortization 78,888,221.15 79,980,008.84
Other government subsidies 79,888,256.47 24,874,142.38
Total 1,116,231,219.32 1,153,834,905.86
49. Non-operating income
In RMB Yuan
Item Report period Same period of last year
Fines and others 29,318,896.76 43,495,774.09
Total 29,318,896.76 43,495,774.09
50. Non-operating expenses
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Item Report period Same period of last year
Donation 22,300,000.00 1,584,000.00
Vehicle reward 4,080,100.00 -
Fines and late fees 2,968,836.54 -
Others 22,999,826.39 11,281,146.02
Total 52,348,762.93 12,865,146.02
51. Income tax expenses
In RMB Yuan
Item Report period Same period of last year
Current income tax expense 43,577,796.68 145,560,653.05
Deferred income tax adjustment -28,289,478.85 -104,564,548.39
Total 15,288,317.83 40,996,104.66
52. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
Item Amount
Interest income 238,562,155.21
Government grants related to operating activities 1,162,743,710.07
Others 319,580,006.32
Total 1,720,885,871.60
(2) The major cash paid relating to other operating activities
In RMB Yuan
Item Amount
Selling expenses 2,054,729,026.35
Administrative expenses 638,520,325.74
Others 723,986,444.39
Total 3,417,235,796.48
(3) The major cash received relating to other investing activities
In RMB Yuan
Item Amount
Government grants related to assets 17,358,750.00
Total 17,358,750.00
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
(4) The major cash received relating to other financing activities
In RMB Yuan
Item Amount
Redemption of the deposit for acceptance 880,129,667.40
Total 880,129,667.40
(5) The major cash paid relating to other financing activities:
None
53. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information Current Amount Prior-period Amount
1. Cash flow relating to operating activities calculated by
adjusting the net profit
Net profit 1,617,481,673.47 4,667,462,601.55
Add: provision for assets impairment 108,941,422.42 92,122,720.46
Depreciation of fixed assets, oil and gas assets, productive
1,045,654,724.17 1,085,730,618.57
biological assets
Amortization of intangible assets 349,623,578.41 307,724,434.91
Amortization of long-term deferred expense 113,355.78 154,198.52
Disposal loss/(income) on fixed assets, intangible assets and
41,953,319.31 -8,972,014.55
others long-term assets(with “-” for gains)
Financial expense(with “-” for gains) -225,518,842.31 -246,821,602.15
Investment loss(with “-” for gains) -1,362,011,815.11 -3,831,618,978.64
Decrease in deferred tax assets(with “-” for gains) -28,289,478.86 -69,564,793.22
Decrease in inventory(with “-” for gains) -60,238,054.79 -3,461,887,164.25
Decrease in operating receivables(with “-” for gains) 9,804,878,336.43 6,028,658,163.96
Increase in operating payables(with “-” for gains) -6,933,248,936.62 403,223,316.88
Others 42,062,477.85 -6,506,777.93
Net cash flows from operating activities 4,401,401,760.15 4,959,704,724.11
2. Investment and financing activities involving no cash
incomings / outgoings
3. Movement of cash and cash equivalents
Ending balance of cash equivalents 23,767,643,401.89 26,809,266,380.20
Less: beginning balance of cash equivalents 21,451,305,090.53 22,993,432,067.05
Net increase in cash and cash equivalents 2,316,338,311.36 3,815,834,313.15
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash
Including: Cash on hand 11,825.00 33,089.31
Bank deposits that can be readily used 23,767,631,576.89 21,451,272,001.22
II. Ending balance of cash and cash equivalents 23,767,643,401.89 21,451,305,090.53
VIII. The change of consolidation scope
1. Business combination not under the Same Control
□ Applicable √ Not Applicable
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary company
through multiple transactions
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
Registered Type of Registered Capital(Ten Proportion of shares enjoyed
Name
Address business Thousand Yuan) by the group
Xiamen Changan New Energy
Fujian Province,
Automobile Sales & Service Co., Sales 200 100.00
Xiamen
Ltd.
Guangzhou Changan New Guangdong Sales 400 100.00
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Energy Automobile Sales & Province,
Service Co., Ltd. Guangzhou
Fuzhou Fuqing Changan New
Fujian Province,
Energy Automobile Sales & Sales 200 100.00
Fuzhou
Service Co., Ltd.
Chongqing Changan New Energy
Chongqing R&D 9900 100.00
Automobile Technology Co., Ltd.
(2) Subsidiary clearing during the reporting period
Registered Type of Registered Capital(Ten Proportion of shares enjoyed
Name
Address business Thousand Yuan) by the group
Shanghai Changan Automobile
Engineering Technology Co., Shanghai R&D 100 100.00
Ltd.
IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows：
Total proportion
Main Registered
Registered Nature of of shareholders
Company name operating capital (ten
place business (%)
place thousand)
Direct Indirect
I. The subsidiary formed by establishment or investment
Hebei Changan Automobile Co., Ltd. (Note
Dingzhou Dingzhou Manufacturing 46,469 94.22 -
1)
Chongqing Changan International
Chongqing Chongqing Sales 1,376 100.00 -
Automobile Sales Co., Ltd.
Chongqing Changan Vehicle Networking
Chongqing Chongqing Sales 8,850 100.00 -
Technology Co., Ltd.
Chongqing Changan Special Automobile
Chongqing Chongqing Sales 500 50.00 -
Sales Co., Ltd (Note 2)
Chongqing Changan Automobile Supporting
Chongqing Chongqing Sales 3,000 99.00 1.00
Service Co., Ltd.
Chongqing Changan New Energy
Chongqing Chongqing R&D 2,900 65.00 -
Automobile Co. Ltd.
Chongqing Changan Europe Design
Turin, Italy Turin, Italy R&D EUR1,738.36 100.00 -
Academy Co., Ltd.
Nottingham, Nottingham,
Changan United Kingdom R&D Center Co.,
United United R&D GBP2,482 100.00 -
Ltd.
Kingdom Kingdom
Beijing Changan R&D Center Co., Ltd. Beijing Beijing R&D 100 100.00 -
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Harbin Changan R&D Center Co., Ltd. Habin Habin R&D 100 100.00 -
Yokohama, Yokohama,
Changan Japan Designing Center Co.,Ltd. R&D JPY2,000 100.00 -
Japan Japan
Changan United States R&D Center Co., Troy, United Troy, United
R&D USD154 100.00 -
Ltd. states states
Moscow, Moscow,
Changan Automobile Russia Co., Ltd. Sales USD20 100.00 -
Russia Russia
St. Paul, St. Paul,
Changan Brazil Holdings Limited Sales BRL100 100.00 -
Brazil Brazil
Shenzhen Changan New Energy Automobile
Shenzhen Shenzhen Sales 5000 100.00 -
Service Co., Ltd
Hangzhou Changan Yixing Technology Co.,
Hangzhou Hangzhou Lease 500 100.00 -
Ltd.
Hefei Changan Yixing Technology Co., Ltd. Hefei Hefei Lease 500 100.00 -
Nanjing Changan Connected Car Technology
Nanjing Nanjing Lease 500 100.00 -
Co., Ltd.
Beijing Changan Vehicle Networking
Beijing Beijing Lease 500 100.00 -
Technology Co., Ltd.
Haikou Changan Vehicle Networking
Haikou Haikou Lease 500 100.00 -
Technology Co., Ltd.
Changan Vehicle Networking (Shanghai)
Shanghai Shanghai Lease 500 100.00 -
Technology Co., Ltd.
Tianjin Changan Vehicle Networking
Tianjin Tianjin Lease 500 100.00 -
Technology Co., Ltd.
Xiamen Changan New Energy Automobile
Xiamen Xiamen Sales 200 100.00 -
Sales & Service Co., Ltd.
Guangzhou Changan New Energy
Guangzhou Guangzhou Sales 400 100.00 -
Automobile Sales & Service Co., Ltd.
Fuzhou Fuqing Changan New Energy
Fuzhou Fuzhou Sales 200 100.00 -
Automobile Sales & Service Co., Ltd.
Chongqing Changan New Energy
Chongqing Chongqing R&D 9900 100.00 -
Automobile Technology Co., Ltd.
II. The subsidiary formed by business combination not under common control
Nanjing Changan Automobile Co.,
Nanjing Nanjing Manufacturing 60,181 84.73 -
Ltd.(Note1)
III. The subsidiary formed by business combination under common control
Chongqing Changan Automobile sales
China China Sales 350 100.00 -
subsidiaries
Hebei Baoding Changan Bus Co., Ltd. Dingzhou Dingzhou Manufacturing 3,000 100.00 -
Hefei Changan Automobile Co.,Ltd. Hefei Hefei Manufacturing 77,500 100.00 -
Note 1: The Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei Changan
Automobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to the
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
voting right consigned from minority shareholders.
Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company that
the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been
controlled by the Company, so it is included in the scope of consolidated financial statements.
As at June 30, 2018, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
Main Registered Total proportion of
Registered Accounting
Company name operating Nature of business capital (ten shareholders (%)
place treatment
place thousand) Direct Inderect
I. Joint ventures
Manufacture and sale
Chongqing Changan Suzuki
Chongqing Chongqing ofautomobiles, and USD19,000 50.00 - Equity
Automobile Co., Ltd.
components
Manufacture and sale
Jiangling Holding Co., Ltd. Nanjing Nanjing ofautomobiles, and 200,000 50.00 - Equity
components
Manufacture and sale
Changan Ford Automobile
Chongqing Chongqing ofautomobiles, and USD24,100 50.00 - Equity
Co., Ltd.
components
Manufacture and sale
Changan Mazda Automobile
Nanjing Nanjing ofautomobiles, and USD11,097 50.00 - Equity
Co., Ltd.
components
Manufacture and sale
Changan Ford Mazda Engine
Nanjing Nanjing ofautomobiles, and USD20,996 50.00 - Equity
Co., Ltd.
components
Manufacture and sale
Changan PSA Automobiles
Shenzhen Shenzhen ofautomobiles, and 400,000 50.00 - Equity
Co., Ltd.
components
II. Associates
Develop, product and
Chongqing Changan Kuayue sale of automobile and
Chongqing Chongqing 6,533 34.30 - Equity
Automobile Co., Ltd. components; import
and export goods.
Sale of Changan
Chongqing Changan Kuayue Kuayue’ s automobile
Chongqing Chongqing 300 34.30 - Equity
Automobile Sales Co., Ltd. and agricultural cars
and components.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Technical advisory
services for automobile
For the car loan
Beijing Fang’an Taxi Co., Ltd. Beijing Beijing 2,897.96 20.70 - Equity
business
Provide car loan;
provide vehicle loans
and operating
equipment loans to car
Chongqing Auto Finance Co., dealers, including the
Chongqing Chongqing 476843.1 28.66 - Equity
ltd. construction loans of
exhibition hall,spare
parts loans and
maintenance equipment
loans, etc.
Zhenjiang Demao Hairun Non-securities equity
Equity Investment Fund investment activities
Zhenjiang Zhenjiang 150,001 32.67 - Equity
Partnership and related consulting
Business (limited partnership) services
Production and
Hangzhou Chelizi Intelligent manufacture of
Hangzhou Hangzhou 630 20.00 - Equity
Technology Co., Ltd. computer software and
automotive electronics
X. Risks associated with financial instruments
1. Classification of financial instruments
The book values of different classes of financial instruments are as follows:
Financial assets
In RMB Yuan
Loans and accounts Available-for-sale financial
June 30,2018 Total
receivable assets
Cash 24,067,745,140.49 - 24,067,745,140.49
Notes receivable 18,390,476,412.74 - 18,390,476,412.74
Accounts receivable 1,925,729,920.41 - 1,925,729,920.41
Other receivables 2,096,542,096.16 - 2,096,542,096.16
Available-for-sale financial assets - 564,227,000.00 564,227,000.00
Interest receivable 55,081,274.30 - 55,081,274.30
Total 46,535,574,844.10 564,227,000.00 47,099,801,844.10
Financial liabilities
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
In RMB Yuan
June 30,2018 2017
Short-term loans 186,000,000.00 185,000,000.00
Notes payable 20,222,535,762.78 18,002,926,579.81
Accounts payable 15,501,582,938.54 21,902,826,194.15
Dividend payable 2,157,870,026.46 79,742.80
Other payables 1,820,125,863.40 2,599,013,410.98
Non-current liabilities due within one year 13,423,420.00 13,151,946.67
Long-term loans - 6,575,973.33
Total 39,901,538,011.18 42,709,573,847.74
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As of June 30 2018, the Group has endorsed bank acceptance bill with a carrying amount of RMB 961,310,940 to suppliers to settle
the accounts payable. The maturities of the notes are between 1 to 6 months, according to the relevant provisions of the "law of
negotiable instruments", if the banks refuse the payment, the holder has the right of recourse to the Group (the "continuing
involvement"). The Group holds the view that almost all the risks and rewards concerned have been transferred; therefore, the book
value of the accounts payable should be derecognized. The maximum loss and the undiscounted cash flow of the continuing
involvement and repurchase is equal to its book value, the Group regards the fair value of the continuing involvement is not
significant.
In first half of 2018, the Group didn’t recoganize profit or loss on the transferring date. No revenue or expense should be recogazied
in accordance with the continuing involvement in the current period. The indorsement occurred flatly in this period.
3. Risks of financial instruments
The Group’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purpose
of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and
liabilities such as accounts receivable and accounts payable, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk. The Group’s risk
management policies are summarized below:
Credit risk
The Group trades only with recognized, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on
credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the
result that the Group’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevant
operating unit, the Group does not offer credit terms without the approval of the special department of credit control.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents,
available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, the Group’s
exposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of these
instruments, listed as book value of financial assets in consolidated financial statements. In 2014, there was no credit risk arising
from financial guarantee.
No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients and
industries collectively. As at 30June 2017, among the Group’s collections with specific credit risk, 36.39% of accounts receivables of
the Group are due from top five clients respectively.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
An analysis of financial assets of individual impairment:
June 30, 2018
In RMB Yuan
Total Book value Impairment provision
Accounts
1,925,729,920.41 1,963,278,031.34 37,548,110.93
receivable
Other receivables 2,096,542,096.16 2,101,144,842.84 4,602,746.68
Notes receivable 18,390,476,412.74 18,390,476,412.74 -
Available-for-sale
564,227,000.00 564,227,000.00 -
financial assets
Interest receivable 55,081,274.30 55,081,274.30 -
Although the existence of the company in Part of the accounts receivable impairment due to credit risk, but should be single
recognized impairment losses of accounts receivable balance of accounts receivable the ending balance of proportion is very small,
and the company has been confirmed according to the situation of credit risk the possibility of credit risk loss. For no signs that need
individual recognized impairment losses of accounts receivable, the company according to the history of the credit risk of loss occur
aging analysis of the proportion of reasonably estimate the possible loss of credit risk, and the provision for bad debt provision in the
balance sheet date. Therefore, the company does not exist because of the occurrence of credit risk and leads to a significant loss.
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the
maturity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating
capital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at June 30, 2018, the Group’s
loans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are
settled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 2018, the Group has less transactional currency exposures of its total revenue that is valued in currencies other than the units'
functional currency. Since most of the Group’s businesses are opertated in China mainland, the estimated influence of fluctuation of
foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as available-for-sale investments
(Note VII 9) as at June 30, 2018. The Group’s listed investments are listed on the Shanghai stock exchanges and valued at quoted
market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change ( based on the
carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with all other
variables held constant, based on their carrying amounts at the end of the reporting period.
In RMB Yuan
Carrying amount of equity investments Change in fair value Increase/
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
(decrease) in net profit
June 30, 2018
Shanghai- Available for sale 136,675,000.00 5% 6,833,750.00
Shanghai- Available for sale 136,675,000.00 -5% -6,833,750.00
Dec. 31, 2017
Shanghai- Available for sale 164,365,000.00 5% 8,218,250.00
Shanghai- Available-for-sale 164,365,000.00 -5% -8,218,250.00
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capital
ratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To
maintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares.
The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capital
management stay the same in First half of 2018.
On June 30, 2018 and December 31, 2017, the Group’s leverage ratio on the balance sheet date is as follows:
June 30, 2018 December 31, 2017
Leverage ratio 53.01% 55.28%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2018
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Available-for-sale
financial assets- equtiy 136,675,000.00 - - 136,675,000.00
instruments
December 31, 2017
In RMB Yuan
Input measured at fair value
Quoted price in Important and observable Important but
active market input unobservable input Total
(The first level) (The second level) (The third level)
Available-for-sale 164,365,000.00 - - 164,365,000.00
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
financial assets- equtiy
instruments
2. Assets and liabilities disclosed in fair value
Up to June 30, 2018, there is neither transference of financial assets and liabilities between first and second level, nor transference to
or from third level.
Fair value of financial instruments
Following are book value and fair value of financial instruments of the group except for equity instruments whose fair value is
similar with book value and those neither have quoted market price in active market nor be reliably measured.
In RMB Yuan
Book value Fair value
Beginning Ending Beginning Ending
Finacial assets
Financial assets available for sale- equtiy instruments 136,675,000.00 164,365,000.00 136,675,000.00 164,365,000.00
Finacial liabilities
Bonds payable
Non current liabilitiesdue within one year
Management has assessed and concluded that the fair value of the accounts, including cash, notes receivable, accounts receivable,
other receivables, short-term loans, intrest payable, dividend payables, other payables, notes payable, accounts payable and so on,
equal to book value because of their short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could
be incurred or settled by knowledged, willing parties in a current arm’s-length transaction, other than liquidation or unwilling sales.
Methods and hypothesis followed are used for determining fair value.
Bonds payable are carried at armotized cost and thoses fair value are determined by the settlement price on 30 June 2018 and 31
December 2017, which are traded in open and active market.
XII. Related parties and related party transactions
1. Parent company of the Company
Proportion Proportion
Related of shares in of voting Final
Parent Company Place of Legal Nature of Registered Organization
parties’ the rights in the controlling
company type registration representative the business capital Code
relationship Company company party
(%) (%)
China Manufacture
China South
Changan and sale of
controlling Liability 4,582,373,7 Industries 9111000-0710
Automobile Beijing Xu Liuping automobiles, 19.33% 19.33%
shareholder limited 00.00 Group 93-39484
Group engine, and
corporation
Co ,Ltd. components
Main business and products: design, development, manufacturing and marketing of automobiles, motorcycles, automobile
motorcycle engines, automobile motorcycle parts and components; Sales of optical products, electronic and optoelectronic
111
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
products,night vision equipments, information and communications equipment; technology development, technology transfer,
technical consulting, technical training, technical services related to the above mentioned business; Import and export business; Asset
acquisitions, recapitalization.
2. Subsidiaries
See subsidiaries in IX. Stake in other entities.
3. Other related parties
Other related parties Relationship
Changan Ford Automobile Co.,Ltd. Joint venture
Changan Ford Automobile Co., Ltd. - Harbin branch Joint venture
Changan Mazda Automobile Co.,Ltd. Joint venture
Changan Ford Mazda Engine Co., Ltd. Joint venture
Chongqing Changan Suzuki Automobile Co., Ltd. Joint venture
Jiangling Holding Co., Ltd. Joint venture
Jiangling Holding Landwind Plant Joint venture
Changan PSA Automobiles Co., Ltd. Joint venture
Chongqing Changan Kuayue Automobile Co., Ltd. Associated enterprise
Chongqing Changan Industrial (Group) Co., Ltd. Subordinate company of South Industries
Chongqing Changan Real Estate Development Co., Ltd. Subordinate company of Changan Industries
Chongqing Changan Construction Engineering Co., Ltd. Subordinate company of Changan Industries
Sichuan Hongguang Machinery and Electrics Co., Ltd. Subordinate company of Changan Industries
Chongqing Changan Property Management Co., Ltd. Subordinate company of Changan Industries
China Changan Automobile Co., Ltd. Parent company
China Changan Automobile Co., Ltd. – Chongqing Qingshan Transmission
Branch of China Changan
Branch
Sichuan Jianan Industrial Co., Ltd. Subordinate company of China Changan
Sichuan Jian'an Industrial Co., Ltd. - Chengdu Jianan Axle Branch Subordinate company of China Changan
South Air International Co.,Ltd. Subordinate company of China Changan
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Subordinate company of China Changan
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. - Longchang Shock
Subordinate company of China Changan
Absorber Branch
Chengdu Huachuan Electric Equipment Co., Ltd. Subordinate company of China Changan
Chongqing Automobile Air-Conditioning Co., Ltd. Subordinate company of China Changan
Csgc Trw Chassis Systems Co.,Ltd. Subordinate company of China Changan
Chongqing Changan Min Sheng Logistics Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Auto Sales and Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd. Subordinate company of China Changan
Guangxi Wanyou Auto Sales and Service Co., Ltd. Subordinate company of China Changan
Nanning Wanyou Auto Sales and Service Co., Ltd. Subordinate company of China Changan
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Trading Co., Ltd. Subordinate company of China Changan
Hafei Motor Co., Ltd. Subordinate company of China Changan
Chongqing Anfu Automobile Marketing Co., Ltd. Subordinate company of China Changan
China Changan Automobile Group Tianjin Sales Co., Ltd. Subordinate company of China Changan
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Subordinate company of China Changan
Harbin Dongan Auto Engine Co., Ltd. Subordinate company of China Changan
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Subordinate company of China Changan
United Prosperity Investment Co., Ltd (Hongkong) Subordinate company of China Changan
United Prosperity Investment Co., Ltd (Shenzhen) Subordinate company of China Changan
Wanyou Automobile Investment Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Auto Trade Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Economic Development Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Economic Development Co., Ltd. - Jiangnan Branch Subordinate company of China Changan
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guangxi
Subordinate company of China Changan
Branch
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guizhou
Subordinate company of China Changan
Branch
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Parts
Subordinate company of China Changan
Branch
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Sichuan
Subordinate company of China Changan
Branch
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. –Yunnan
Subordinate company of China Changan
Branch
Yunnan Wanyou Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Guizhou Wanyou Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Yunnan Xiangyu Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Chongqing Fuji Supply Chain Management Co., Ltd. Subordinate company of China Changan
Panzhihua Wanyou Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Ya'an Wanyou Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. Subordinate company of China Changan
Luzhou Wanyou Automobile Service Co., Ltd. Subordinate company of China Changan
Luzhou Wanyou Automobile Service Co., Ltd. – Naxi Branch Subordinate company of China Changan
Chongqing Qingshan Transmission Sales Co., Ltd. Subordinate company of South Group
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Subordinate company of South Group
Chongqing Changrong Machinery Co., Ltd. Subordinate company of South Group
Chengdu Lingchuan Special Industry Co., Ltd. Subordinate company of South Group
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Subordinate company of South Group
Chongqing Changfeng Jiquan Machinery Co., Ltd. Subordinate company of South Group
Yunnan Xiyi Industries Co., Ltd. Subordinate company of South Group
Chongqing Shangfang Automobile Fittings Co., Ltd. Subordinate company of South Group
113
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Subordinate company of South Group
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Subordinate company of South Group
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Subordinate company of South Group
China South Industries Group Finance Co., Ltd. Subordinate company of South Group
Southwest Ordnance Industry Corporation Subordinate company of South Group
Chongqing Wanyou Engineering Installation Co., Ltd. Subordinate company of South Group
Chengdu Wanyou Filter Co., Ltd. Subordinate company of South Group
Chongqing Yihong Engineering Plastic Products Co., Ltd. Subordinate company of South Group
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Subordinate company of South Group
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Subordinate company of South Group
Chongqing Nexteer steering system co., Ltd Subordinate company of South Group
Chongqing Dajiang Jiexing Forging Co., Ltd. Subordinate company of South Group
Chongqing Jialing Yimin Special Equipment Co., Ltd. Subordinate company of South Group
Chengdu Guangming Tianzhong Environmental Protection Technology Co.,
Subordinate company of South Group
Ltd.
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Subordinate company of South Group
4. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
Whether it
Nature of the Approved exceeds the
Related parties Current amount Prior-period amount
transaction transaction amount transaction
amount
Changan Ford Automobile Purchase of spare
50,528,796.32 134,632,100.00 No 75,369,099.10
Co.,Ltd. parts
Chongqing Changan Suzuki Purchase of spare
40,015,153.39 148,209,400.00 No 91,610,674.73
Automobile Co., Ltd. parts
Changan Peugeot Citroen Purchase of spare
- 270,394,300.00 No -
Automobile Co., Ltd. parts
Chongqing Xiyi Automobile Purchase of spare
-4,295.93 - No 147,693.40
Linkage Rod Co., Ltd. parts
Chongqing Changan Kuayue
Accept service 2,185,200.00 22,000,000.00 No 53,411,400.00
Automobile Co., Ltd.
Purchase of spare
Changan Industries Group Co.
parts and accept 35,491,790.41 29,081,000.00 Yes 22,284,149.38
Ltd.
service
Chongqing Changan
Transportation fee 669,938,773.76 2,683,286,600.00 No 768,217,130.41
Minsheng Logistics Co., Ltd
Sichuan Hongguang Purchase of spare 5,247,314.70 18,211,100.00 No 3,742,906.54
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Whether it
Nature of the Approved exceeds the
Related parties Current amount Prior-period amount
transaction transaction amount transaction
amount
Machinery and Electrics Co., parts
Ltd.
Chongqing Changan Property
Accept service 1,880,756.31 4,576,100.00 No 3,119,331.42
Management Co., Ltd.
Chongqing Changan
Purchase of spare
Construction Engineering Co., 767,688.60 296,575,200.00 No -
parts
Ltd.
China Changan Automobile Purchase of spare
- - No 310,385.23
Co., Ltd. parts
China Changan Automobile
Co., Ltd. –Chongqing Purchase of spare
790,009,094.86 2,215,145,600.00 No 947,612,141.41
Qingshan Transmission parts
Branch
Sichuan Jian'an Industry Co., Purchase of spare
396,002,416.92 1,048,424,200.00 No 470,981,559.71
Ltd. parts
Sichuan Jian'an Industrial Co.,
Purchase of spare
Ltd.–Chengdu Jian'an -20,068.28 7,573,100.00 No -
parts
Automobile Bridge Branch
Southern Inte Air Purchase of spare
278,286,144.78 745,430,600.00 No 227,232,590.96
Conditioning Co., Ltd. parts
Sichuan Ningjiang Shanchuan Purchase of spare
68,700,314.53 208,112,800.00 No 105,119,671.81
Machinery Co, Ltd. parts
Sichuan Ningjiang Shanchuan
Machinery Co, Purchase of spare
14,571,788.09 66,717,300.00 No 55,686,449.39
Ltd.-Longchang Shock parts
Absorber Branch
Chengdu Huachuan Electric Purchase of spare
147,010,890.28 358,368,300.00 No 172,671,760.20
Equipment Co., Ltd. parts
Chongqing Changfeng Jiquan Purchase of spare
11,501,147.75 44,057,400.00 No 20,665,043.14
Machinery Co., Ltd. parts
Southern Tianhe Chassis Purchase of spare
302,296,647.64 925,778,600.00 No 255,910,955.40
System Co., Ltd. parts
Chengdu Ningjiang Zhaohe
Purchase of spare
Automobile Components Co., 11,369,508.22 37,672,400.00 No 23,211,614.17
parts
Ltd.
115
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Whether it
Nature of the Approved exceeds the
Related parties Current amount Prior-period amount
transaction transaction amount transaction
amount
Harbin Dongan Auto Engine Purchase of spare
407,727,748.76 1,057,646,400.00 No 470,425,124.49
Co., Ltd. parts
Harbin Dongan Automotive
Purchase of spare
Engine Manufacturing Co., 232,165,111.94 789,592,900.00 No 885,672,904.03
parts
Ltd.
Hubei Xiaogan Huazhong Purchase of spare
41,165,671.16 92,815,200.00 No 41,495,725.39
Automobile Light Co., Ltd. parts
Chongqing Changrong Purchase of spare
12,476,284.96 71,831,400.00 No 11,785,659.17
Machinery Co., Ltd. parts
Chengdu Lingchuan Special Purchase of spare
16,648,659.65 80,733,900.00 No 13,228,609.04
Industry Co., Ltd. parts
Chengdu Lingchuan Vehicle Purchase of spare
36,629,643.10 68,885,600.00 No 23,549,781.40
Oil Tank Co., Ltd. parts
Yunnan Xiyi Industries Co., Purchase of spare
50,426,409.01 122,033,400.00 No 44,919,506.45
Ltd. parts
Chongqing Shangfang Purchase of spare
25,730,159.90 77,385,800.00 No 37,750,754.20
Automobile Fittings Co., Ltd. parts
Chongqing Dajiang Xinda Purchase of spare
81,105,898.94 88,924,300.00 No 13,876,784.01
Vehicles Shares Co., Ltd. parts
Chongqing Dajiang Yuqiang Purchase of spare
161,444,150.25 213,901,300.00 No 1,683,008.98
Plastic Co., Ltd. parts
Chongqing Jianshe
Purchase of spare
Automobile Air-conditioner 44,409,783.45 95,165,000.00 No 95,402,778.55
parts
Co., Ltd.
Chongqing Wanyou Zunda
Purchase of spare
Automobile Sales & Service - - No 57,762,014.69
parts
Co., Ltd.
Chengdu Wanyou Filter Co., Purchase of spare
93,328,718.59 165,183,400.00 No 99,629,474.41
Ltd. parts
Chongqing Yihong
Purchase of spare
Engineering Plastic Products 14,426,634.47 27,087,300.00 No 20,476,902.56
parts
Co., Ltd.
Chengdu Ningxing Purchase of spare
- 24,882,700.00 No 5,857,317.24
Automobile Spring Co., Ltd parts
Chengdu Jialing Huaxi Optical Purchase of spare 7,735,029.09 25,721,400.00 No 5,426,840.77
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Whether it
Nature of the Approved exceeds the
Related parties Current amount Prior-period amount
transaction transaction amount transaction
amount
& Precision Machinery Co., parts
Ltd.
Chongqing Qingshan Purchase of spare
3,372,342.00 6,989,800.00 No 2,765,777.75
Transmission Sales Co., Ltd. parts
Chongqing Dajiang Jiexing Purchase of spare
778,239.55 14,895,800.00 No 2,152,623.81
Forging Co., Ltd. parts
Beijing Beiji
Purchase of spare
Mechanical&Electric 41,364.74 201,300.00 No 69,412.93
parts
Induustry Co., Ltd
Chongqing Jialing Yimin Purchase of spare
No
Special Equipment Co., Ltd. parts
Chengdu Guangming
Tianzhong Environmental Purchase of spare
-1,771.14 - No -
Protection Technology Co., parts
Ltd.
United Prosperity Investment
Accept service No
Co., Ltd(Note 1)
Chongqing Nexteer steering Purchase of spare
307,967,283.63 869,956,300.00 No 51,877,949.09
system co., ltd parts
Chongqing Wanyou Economic Purchase of spare
191,811,118.53 368,667,200.00 No -
Development Co., Ltd. parts
Chongqing Wanyou
Engineering Installation Co., Engineer material - 32,025,000.00 No -
Ltd.
Purchasing
Jiangling Holdings Co., Ltd. complete vehicles 211,813,380.00 1,034,052,800.00 No -
and parts
Total 4,766,980,922.93 14,592,824,300.00 5,183,113,505.36
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
Note1: During the reporting period, United Prosperity Investment Co., Ltd did not provide trade financing services to the company
for the overseas procurement of machine equipments.
(2) Goods sold and services offered
In RMB Yuan
Related parties Nature of the transaction Current amount Prior-period Amount
117
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Changan Ford Automobile Sales of raw materials and
959,683.96 15,719,208.35
Co.,Ltd. components
Chongqing Changan Suzuki Sales of raw materials and
9,470,279.42 8,890,992.31
Automobile Co., Ltd. components
Sales of raw materials and
Jiangling holdings co., ltd 92,466,850.38 29,782,109.60
components
Chongqing Changan Sales of raw materials and
49,034,525.61 -
Minsheng Logistics Co., Ltd components
Sichuan Hongguang
Sales of raw materials and
Machinery and Electrics 965,831.85 1,074,846.49
components
Co., Ltd.
China Changan Automobile
Co., Ltd. –Chongqing Sales of raw materials and
3,754.72 52,935.85
Qingshan Transmission components
Branch
Chengdu Huachuan Electric Sales of raw materials and
- 24,075.47
Equipment Co., Ltd. components
Southern Tianhe Chassis Sales of raw materials and
3,754.72 72,181.13
System Co., Ltd. components
Chongqing Anfu Sales of vehicles,spare
4,504,052.51 22,148,398.28
Automobile Co., Ltd. parts
China Changan Automobile
Sales of vehicles,spare
Group Tianjin Sales Co., 96,595,781.73 74,515,797.49
parts
Ltd.
Harbin Dongan Automotive
Engine Manufacturing Co., Technical service 541,580.93 18,944,981.56
Ltd.
Harbin Dongan Auto Engine
Sales of spare parts 5,807,864.29 27,764,630.20
Co., Ltd.
Wanyou Automobile Sales of vehicles, spare
278,840,354.88 437,016,833.02
Investment Co.,Ltd parts
Chengdu Lingchuan Special
Sales of spare parts 10,007.55 4,082,092.31
Industry Co., Ltd.
Yunnan Xiyi Industries Co.,
Sales of spare parts 4,070,438.35 2,645,320.52
Ltd.
ChongqingChangan Kuayue
Sales of spare parts 26,078.68 632,918.59
Automobile Co., Ltd.
Southern Inte Air
Sales of spare parts 4,708.49 4,708.49
Conditioning Co., Ltd.
Chongqing Wanyou Zunda
Sales of vehicles, spare
Automobile Sales & Service - 731,784,709.20
parts
Co., Ltd.
118
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chongqing Wanyou Zunda
Automobile Sales and Sales of vehicles, spare
12,136,503.95 154,535,311.08
Service Co., Ltd. Guangxi parts
Branch
Nanning Wanyou
Sales of vehicles, spare
Automobile Sales & Service 18,660,666.94 32,281,963.18
parts
Co., Ltd.
Chongqing Wanyou Zunda
Automobile Sales and Sales of vehicles, spare
57,749,959.33 542,474,119.33
Service Co., Ltd. Sichuan parts
Branch
Chengdu Wanyou Xiangyu
Sales of vehicles, spare
Auto Sales and Service Co., 564,089,962.66 471,785,083.17
parts
Ltd.
Chongqing Shangfang
Sales of vehicles, spare
Automobile Fittings Co., 35,037.74 14,445.28
parts
Ltd.
Chongqing Dajiang Xinda Sales of vehicles, spare
- 50,513.21
Vehicles Shares Co., Ltd. parts
Chongqing Wanyou Zunda
Automobile Sales and Sales of vehicles, spare
41,553,601.57 401,384,549.34
Service Co., Ltd. Yunnan parts
Branch
Chongqing Wanyou Zunda
Automobile Sales and Sales of vehicles, spare
27,679,119.48 539,172,575.27
Service Co., Ltd. Guizhou parts
Branch
Yunnan Xiangyu Auto Sales Sales of vehicles, spare
67,497,061.87 38,598,636.78
and Service Co., Ltd. parts
Chengdu Wanyou Filter Co., Sales of vehicles, spare
3,754.72 48,120.75
Ltd. parts
China South Industries
Regulatory charges 5,333,618.49 53,011,538.65
Group Finance Co.,Ltd
Changan Mazda Automobile Sales of vehicles, spare
1,064,339.48 -
Co., Ltd. parts
Sichuan Jian'an Industry
Other service fees 3,754.72 -
Co., Ltd.
Sichuan Ningjiang
Shanchuan Machinery Co., Other service fees 3,754.72 -
Ltd.
Guangxi Wanyou
Sales of vehicles, spare
Automobile Sales & Service 79,266,636.74 -
parts
Co., Ltd.
119
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chengdu Wanyou Auto Sales of vehicles, spare
307,793,749.81 -
Trade Service Co., Ltd. parts
Chongqing Changrong
Other service fees 3,754.72 -
Machinery Co., Ltd.
Chongqing Construction
Vehicle Air Conditioner Other service fees 3,754.72 -
Co., Ltd.
Chongqing Wanyou
Sales of vehicles, spare
Economic Development Co., 466,874,730.20 -
parts
Ltd.
Chongqing Wanyou
Sales of vehicles, spare
Economic Development Co., 318,109,175.14 -
parts
Ltd. Jiangnan Branch
Chongqing Wanyou Zunda
Automobile Sales and
Sales of spare parts 58,340,829.40 -
Service Co., Ltd. Parts
Branch
Yunnan Wanyou
Sales of vehicles, spare
Automobile Sales & Service 350,671,270.23 -
parts
Co., Ltd.
Guizhou Wanyou
Sales of vehicles, spare
Automobile Sales & Service 452,909,126.31 -
parts
Co., Ltd.
Panzhihua Wanyou
Automobile Sales & Service Sales of spare parts 11,045.54 -
Co., Ltd.
Ya'an Wanyou Automobile
Sales of spare parts 16,589.56 -
Sales & Service Co., Ltd.
Chongqing Wanyou
Ducheng Automobile Sales Sales of spare parts 72,903.23 -
& Service Co., Ltd.
Chongqing Wanyou
Xingjian Automobile Sales Sales of spare parts 71,605.18 -
& Service Co., Ltd.
Zhangzhou Wanyou
Automobile Service Co., Sales of spare parts 53,390.03 -
Ltd.
Total 3,373,315,244.55 3,608,513,594.90
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(3) Related-party leasing
In RMB Yuan
Lessee Type of leased Starting date Expiring date Report period recognized
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
assets rental
Jiangling Holdings Co., Ltd. Equipment 2017.04.01 2019.03.03 4,422,030.00
Chongqing Changan Min Sheng
Building 2016.09.01 2019.08.31 951,550.00
Logistics Co., Ltd.
Chongqing Changan Industrial
Building 2018.01.01 2032.12.31 3,283,373.71
Co., Ltd.
Rent assets from related parties
In RMB Yuan
Type of leased Report period recognized
Lessor Starting date Expiring date
assets rental
Chongqing Changan Min Sheng
Storeroom 2017.12.17 2018.12.31 714,065.94
Logistics Co., Ltd.
Chongqing Changan Min Sheng
Storeroom 2017.06.08 2017.11.30 470,058.49
Logistics Co., Ltd.
Chongqing Changan Suzuki
Site 2017.03.01 2018.02.28 104,899.04
Automobile Co., Ltd.
Chongqing Changan Real Estate
Site 2018.01.01 2018.12.31 764,274.28
Development Co., Ltd.
Chongqing Changan Property
Building 2017.04.01 2018.03.31 129,548.25
Management Co., Ltd.
Chongqing Changan Property
Building 2018.04.01 2018.04.30 43,182.75
Management Co., Ltd.
Chongqing Changan Real Estate
Building 2018.01.01 2018.12.31 304,833.00
Development Co., Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
(4) Other related transactions
Integrated service charges
In RMB Yuan
Same period of last period
Related parties Nature of the transaction Report period Amount
Amount
Payment of land rental fees 15,738,619.47 122,460.45
Payment of building rental fees 2320098.28 -
Changan Industries
Payment of utilities 41,238,737.71 45,214,566.89
Group Co. Ltd
Payment of fire fighting fees - 685,000.00
Others 2,604,188.16 3,127,196.57
Total 61,901,643.62 49,149,223.91
Purchase of project materials
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Chongqing Changan Construction Co., Ltd 285,684,556.02 101,429,877.83
Chongqing Changan Min Sheng Logistics Co., Ltd. 362,735.93 5,493,075.52
Chongqing wanyou engineering installation co., ltd 49,273,687.28 20,944,360.81
Total 335,320,979.23 127,867,314.16
Staff expenses for technical supporting
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Changan Mazda Automobile Co.,Ltd. 5,113,134.48 5,132,075.47
Chongqing Changan Suzuki Automobile Co., Ltd. 1,539,750.64 -
Changan Ford Automobile Co.,Ltd. 10,500,543.45 10,762,414.02
Total 17,153,428.57 15,894,489.49
Techonology development service charges
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Jiangling Holdings Co., Ltd. 1,886,792.45 -
Total 1,886,792.45 -
Collection of trademark use rights fees
In RMB Yuan
122
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Related parties Report period Amount Same period of last period Amount
Chongqing Changan Kuayue Automobile Co., Ltd. 6,483,396.23 3,744,169.81
Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 4,570,371,194.59 4,449,345,493.13
Changan Automobile Finance Co., Ltd 1,500,000,000.00 1,500,000,000.00
In the first half of 2018, the annual rate of return of the company in the financial limited liability company of China South Industries
Group Finance Co., Ltd and Changan automobile finance co., ltd is 1.9 % and 3.915 % respectively.
Borrowing
Short-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 186,000,000.00 175,000,000.00
Interest income of deferred payment
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Chongqing Wanyou Zunda Automobile Sales & - 131,052.14
Service Co., Ltd.
Wanyou Automobile Investment Co., Ltd. 2,186.32 705,979.48
Chongqing Wanyou Zunda Automobile Sales and
- 19,045.30
Service Co., Ltd. Guangxi Branch
Chongqing Wanyou Zunda Automobile Sales and
- 81,722.22
Service Co., Ltd. Guizhou Branch
Yunan Xiangyu Auto Sales and Service Co., Ltd. - 12,622.23
Chongqing Wanyou Zunda Automobile Sales and
- 816,674.36
Service Co., Ltd. Sichuan Branch
Chengdu Wanyou Xiangyu Auto Sales and Service 116,762.05 520,312.83
Co., Ltd. Wanyou Zunda Automobile Sales and
- 1,115,457.26
Service Co., Ltd. Yunan Branch
China Changan Automobile Group Tianjin Sales
8,617.09 -
Co., Ltd.
Chengdu Wanyou Auto Trade Service Co., Ltd. 48,452.99 -
Yunnan Wanyou Automobile Sales & Service Co.,
64,533.33 -
Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Guizhou Wanyou Automobile Sales & Service Co.,
28,282.91 -
Ltd.
Total 268,834.69 3,402,865.82
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
5. Payment and receivables of related parties
Payment receivables of related listed companies
In RMB Yuan
Ending balance Beginning balance
Items Related parties Provision for Provision for
Book balance Book balance
bad-debts bad-debts
Notes
Tianjin Sales Co., Ltd.CCAG 39,526,490.00 - 37,824,480.00 -
receivable
Notes Wanyou Automobile Investment
207,400,000.00 - 2,676,220,000.00 -
receivable Co., Ltd.
Notes Yunnan Wanyou Automobile
124,380,000.00 - 17,000,000.00 -
receivable Sales and Service Co., Ltd
Notes Chengdu Wanyou Auto Trade
145,000,000.00 - 16,900,000.00 -
receivable Service Co., Ltd.
Notes Chongqing Wanyou Economic
194,140,000.00 - 2,000,000.00 -
receivable Development Co., Ltd.
Notes Guizhou Wanyou Automobile
171,900,000.00 - 2,000,000.00 -
receivable Sales & Service Co., Ltd.
Notes Guangxi Wanyou Automobile
2,800,000.00 - 1,500,000.00 -
receivable Sales & Service Co., Ltd.
Notes Yunnan Xiangyu Automobile
34,620,000.00 - - -
receivable Sales & Service Co., Ltd.
Notes Nanning Wanyou Automobile
6,420,000.00 - - -
receivable Sales & Service Co., Ltd.
Chengdu Wanyou Xiangyu
Notes
Automobile Sales & Service Co., 149,000,000.00 - - -
receivable
Ltd.
Subtotal 1,075,186,490.00 - 2,753,444,480.00 -
Account Changan Ford Automobile
- - 22,529,864.32 -
receivable Co.,Ltd.
Account Chongqing Changan Suzuki
103,186,219.74 - 135,914,168.09 -
receivable Automobile Co., Ltd.
Account
Jiangling Holding Co., Ltd 113,423,244.94 - 30,661,901.66 -
receivable
Account Changan Peugeot Citroen
22,758,165.00 - 22,926,567.86 -
receivable Automobile Co., Ltd.
Account Chongqing Changan Kuayue
26,509,633.04 - 10,887,572.26 -
receivable Automobile Co., Ltd
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Account Changan Mazda Automobile Co.,
- - 10,185,773.13 -
receivable Ltd.
Account Chongqing Changan Min Sheng
56,586,500.25 - - -
receivable Logistics Co., Ltd.
Account Harbin Dongan Automotive
44,554,740.12 - 43,541,400.14 -
receivable Engine Manufacturing Co., Ltd.
Account Yunnan Wanyou Automobile
- - 4,700,833.08 -
receivable Sales and Service Co., Ltd
Account Chengdu Wanyou Auto Trade
- - 1,311,647.66 -
receivable Service Co., Ltd.
Account Chongqing Changan Industries
- 1,325,600.89 -
receivable Group Co. Ltd 4,773,143.29
Subtotal 386,230,274.69 - 283,985,329.09 -
Other Chongqing Changan Suzuki
27,374,260.16 - 40,784,896.53 -
receivable Automobile Co., Ltd.
Other China South Industries Group
241,878.39 - - -
receivable Finance Co., Ltd
Other Chongqing Changan Min Sheng
281,148.25 - 123,793.03 -
receivable Logistics Co., Ltd.
Other Harbin Dongan Auto Engine Co.,
268,000.00 - 268,000.00 -
receivable Ltd.
Subtotal 28,165,286.80 41,176,689.56
Advanced Chongqing Changan Suzuki
295,474.25 - 295,474.25 -
payment Automobile Co., Ltd.
Subtotal 295,474.25 - 295,474.25 -
Accounts payable to related parties of listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes
Harbin Dongan Automobile Power Co., Ltd. 538,815,000.00 617,420,000.00
payable
Notes Harbin Dongan Automobile Engine
216,487,900.00 479,180,000.00
payable Manufacturing Co., Ltd.
Notes Chongqing Changan Construction Engineering
299,405,493.00 332,992,262.00
payable Co., Ltd.
Notes China Changan Automobile Co., Ltd.
299,870,000.00 214,270,000.00
payable –Chongqing Qingshan Transmission Branch
Notes Chongqing Changan Min Sheng Logistics Co., 171,002,497.63 198,023,651.37
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
payable Ltd.
Notes
Chongqing Changan Suzuki Automobile Co., Ltd. 120,635,816.08 189,532,516.13
payable
Notes
South Air International Co.,Ltd. 283,320,000.00 182,640,000.00
payable
Notes
Changan Ford Automobile Co.,Ltd. 126,781,543.38 65,536,197.82
payable
Notes Chongqing Wanyou Engineering Installation Co.,
51,264,191.75 52,786,747.00
payable Ltd.
Notes Chongqing Construction Vehicle Air Conditioner
21,890,000.00 27,120,000.00
payable Co., Ltd.
Notes Sichuan Ningjiang Shanchuan Machinery Co.,
23,950,000.00 20,580,000.00
payable Ltd.
Notes
Chengdu Wanyou Filter Co., Ltd. 62,010,000.00 14,960,000.00
payable
Notes
Hubei Xiaogan Huazhong Auto Lamp Co., Ltd. 19,960,000.00 9,950,000.00
payable
Notes Chengdu Jialing Huaxi Optical Precision
12,240,000.00 7,690,000.00
payable Machinery Co., Ltd.
Notes
Sichuan Jian'an Industry Co., Ltd. 5,000,000.00 5,910,000.00
payable
Notes
Chongqing Changfeng Jiyu Machinery Co., Ltd. 12,300,000.00 5,510,000.00
payable
Notes
Chongqing Yihong Engineering Plastics Co., Ltd. 8,840,000.00 5,310,000.00
payable
Notes
Chengdu Huachuan Denso Co., Ltd. 2,570,000.00 2,190,000.00
payable
Notes Sichuan Hongguang Automobile Electrical Co.,
2,940,000.00 2,030,000.00
payable Ltd.
Notes
Southern Tianhe Chassis System Co., Ltd. 190,000.00 1,370,000.00
payable
Notes
Chengdu Ningxing Automobile Spring Co., Ltd. - 1,110,000.00
payable
Notes
Chengdu Lingchuan Special Industry Co., Ltd. 11,510,000.00 170,000.00
payable
Notes
Chongqing Changan Kuayue Automobile Co., Ltd 35,631,901.39 -
payable
Notes Chongqing Shangfang Auto Parts Co., Ltd. 200,000.00 -
127
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
payable
Notes Chongqing Dajiang Yugqiang Plastic Products
142,490,000.00 -
payable Co., Ltd.
Notes
Chongqing Dajiang Jiexin Forging Co., Ltd. 930,000.00 -
payable
Subtotal 2,470,234,343.23 2,436,281,374.32
Account
Harbin Dongan Automobile Power Co., Ltd. 239,912,645.10 345,797,944.98
payable
Account China Changan Automobile Co., Ltd.
82,059,537.62 207,968,397.78
payable –Chongqing Qingshan Transmission Branch
Account
Southern Tianhe Chassis System Co., Ltd. 79,076,167.38 199,363,707.33
payable
Account
Jiangling Holdings Co., Ltd. 133,102,373.73 191,084,011.75
payable
Account
Chongqing Nexteer Steering System Co., Ltd. 242,879,683.57 176,288,268.39
payable
Account
Southern Inte Air Conditioning Co., Ltd. 71,888,114.42 171872351.5
payable
Account Harbin Dongan Automobile Engine
70,183,107.51 155,247,645.33
payable Manufacturing Co., Ltd.
Account
Sichuan Jian'an Industry Co., Ltd. 97,987,282.15 117,078,608.55
payable
Account
Chongqing Changan Kuayue Automobile Co., Ltd 1,216,091.55 93,727,399.68
payable
Account
Changan Ford Automobile Co.,Ltd. 11,723,605.16 89,646,556.61
payable
Account
Chongqing Changan Suzuki Automobile Co., Ltd. 35,098,690.66 77,082,367.50
payable
Account Chongqing Wanyou Economic Development Co.,
74,064,072.75 54,096,010.02
payable Ltd.
Account
Chengdu Wanyou Filter Co., Ltd. 50,666,108.25 42,372,755.39
payable
Account Chongqing Changan Minsheng Logistics Co.,
120,157,503.60 37,085,168.07
payable Ltd.
Account
Chongqing Dajiang Xinda Automobile Co., Ltd. 56,255,628.27 30,253,807.17
payable
Account Chongqing Dajiang Yuqiang Plastic Products Co.,
71,814,653.56 26,019,486.15
payable Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Account
Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. 17,232,048.62 25,415,872.54
payable
Account Chongqing Construction Vehicle Air Conditioner
31,598,774.90 21,933,236.63
payable Co., Ltd.
Account
Hubei Xiaogan Huazhong Auto Lamp Co., Ltd. 17,026,184.06 18,068,182.67
payable
Account
Chongqing Changfeng Jiyu Machinery Co., Ltd. 10,049,158.17 14,806,992.88
payable
Account
Chongqing Shangfang Auto Parts Co., Ltd. 9,752,747.74 12,633,188.89
payable
Account
Chongqing Changan Industries Group Co. Ltd 21,827,532.88 10,548,846.45
payable
Account
Chengdu Ningxing Automobile Spring Co., Ltd. - 8,808,787.49
payable
Account
Chongqing Yihong Engineering Plastics Co., Ltd. 3,494,773.28 8,669,550.54
payable
Account
Yunnan Xiyi Industrial Co., Ltd. 11,933,961.93 5,574,383.25
payable
Account Sichuan Ningjiang Shanchuan Machinery Co.,
14,231,841.87 5,527,769.06
payable Ltd.
Account Chengdu Jialing Huaxi Optical Precision
2,180,536.79 5,431,628.68
payable Machinery Co., Ltd.
Account
Chengdu Huachuan Denso Co., Ltd. 26,304,851.24 4,332,585.36
payable
Account Sichuan Ningjiang Shanchuan Machinery Co.,
4,491,581.72 4,093,547.21
payable Ltd. Longchang Shock Absorber Branch
Account
Chengdu Lingchuan Special Industry Co., Ltd. 6,237,447.98 3,626,071.14
payable
Account
Chongqing Changrong Machinery Co., Ltd. 3,478,024.59 3,524,818.39
payable
Account
Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd. 11,644,384.60 2,976,243.85
payable
Account Sichuan Hongguang Automobile Electrical Co.,
1,406,219.30 1,939,534.94
payable Ltd.
Account
Hafei Automobile Co., Ltd. 661,117.68 661,117.68
payable
Account
Chongqing Dajiang Jiexin Forging Co., Ltd. 184,596.76 605,591.85
payable
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Account Chongqing Changan Construction Engineering
242,002.64 271,400.31
payable Co., Ltd.
Account
Chongqing Automobile Air Conditioner Co., Ltd. 205,041.51 205,041.51
payable
Account Chongqing Jialing Yimin Special Equipment Co.,
104,496.50 104,496.50
payable Ltd.
Account Chengdu Guangming Tianzhong Environmental
86,617.41 88,689.65
payable Protection Technology Co., Ltd.
Account Chongqing Xiyi Automobile Connecting Rod
65,110.17 70,136.39
payable Co., Ltd.
Account Beijing Beiji Electromechanical Industry Co.,
48,435.24 26,382.70
payable Ltd.
Account Sichuan Jian'an Industrial Chengdu Jianan Axle
- 20,257.22
payable Branch
Account Chongqing Qingshan Transmission Sales Co.,
4,935,786.56 548.02
payable Ltd.
Subtotal 1,637,508,539.42 2,174,949,387.99
Advance Chengdu Wanyou Xiangyu Auto Sales and
27,866,189.84 149,605,982.46
receipts Service Co., Ltd.
Advance Chongqing Wanyou Economic Development Co.,
36,263,741.47 147,992,787.85
receipts Ltd.
Advance Guizhou Wanyou Automobile Sales & Service
34,897,988.08 93,966,433.63
receipts Co., Ltd.
Advance Yunnan Wanyou Automobile Sales & Service
7,659,187.24 56,027,446.21
receipts Co., Ltd.
Advance
Wanyou Automobile Investment Co., Ltd. 17,748,734.00 33,392,271.43
receipts
Advance
Chengdu Wanyou Auto Trade Service Co., Ltd. 3,600,358.61 28,665,986.30
receipts
Advance Yunnan Xiangyu Automobile Sales & Service
1,707,858.67 13,152,733.90
receipts Co., Ltd.
Advance Guangxi Wanyou Automobile Sales & Service
5,265,173.17 10,218,258.22
receipts Co., Ltd.
Advance
Tianjin Sales Co., Ltd.CCAG 1,086,718.44 8,262,589.55
receipts
Advance
Changan Ford Mazda Engine Co., Ltd. 3,288,125.92 3,202,789.69
receipts
Advance Nanning Wanyou Automobile Sales & Service 274,641.31 3,049,999.16
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
receipts Co., Ltd.
Advance
Hafei Automobile Co., Ltd. 670,500.00 670,500.00
receipts
Advance
Chongqing Changan Minsheng Logistics Co., Ltd. - 361,998.32
receipts
Advance
Chongqing Anfu Automobile Marketing Co., Ltd. 1,155,144.00 119,144.00
receipts
Advance
Changan Mazda Automobile Co., Ltd 232,800.63 113,420.00
receipts
Advance
Southern Inte Air Conditioning Co., Ltd. - 4,991.00
receipts
Advance
Chongqing Shangfang Auto Parts Co., Ltd. 3,980.00 -
receipts
Advance Chongqing Wanyou Economic Development Co.,
17,875,663.79 -
receipts Ltd. Jiangnan Branch
Advance Chongqing Wanyou Zunda Automobile Sales and
236,049.57 -
receipts Service Co., Ltd. Guangxi Branch
Advance Chongqing Wanyou Zunda Automobile Sales and
5,821,619.84 -
receipts Service Co., Ltd. Guizhou Branch
Advance Chongqing Wanyou Zunda Automobile Sales and
9,143,714.05 -
receipts Service Co., Ltd. Parts Branch
Advance Chongqing Wanyou Zunda Automobile Sales and
2,604,650.10 -
receipts Service Co., Ltd. Sichuan Branch
Advance Chongqing Wanyou Zunda Automobile Sales and
3,281,320.52 -
receipts Service Co., Ltd. Yunan Branch
Advance Chongqing Wanyou Longrui Automobile Sales &
659.60 -
receipts Service Co., Ltd.
Advance Chongqing Wanyou Ducheng Automobile Sales
138,221.72 -
receipts & Service Co., Ltd.
Advance Chongqing Wanyou Xingjian Automobile Sales &
57,612.00 -
receipts Service Co., Ltd.
Advance
Luzhou Wanyou Automobile Service Co., Ltd. 5,654.88 -
receipts
Subtotal 180,886,307.45 548,807,331.72
Other Chongqing Changan Minsheng Logistics Co.,
305,237,260.47 159,507,227.79
payables Ltd.
Other Chongqing Changan Construction Engineering
8,179,765.09 23,746,341.39
payables Co., Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Other
Chongqing Changan Industries Group Co. Ltd. 18,455,573.67 4,841,997.36
payables
Other Chongqing Changan Property Management Co.,
3,727,132.40 2470202.68
payables Ltd.
Other Chongqing Wanyou Engineering Installation Co.,
3,510,639.25 2,278,297.00
payables Ltd.
Other
Hafei Automobile Co., Ltd. 184,804.39 640,668.85
payables
Other Chongqing Wanyou Economic Development Co.,
- 450,057.20
payables Ltd.
Other
Chongqing Changan Suzuki Automobile Co., Ltd. 110,144.00 330,432.00
payables
Other
Chengdu Wanyou Auto Trade Service Co., Ltd. - 191,979.64
payables
Other Yunnan Wanyou Automobile Sales & Service
- 182,607.80
payables Co., Ltd.
Other Guizhou Wanyou Automobile Sales & Service
- 159,500.00
payables Co., Ltd.
Other Guangxi Wanyou Automobile Sales & Service
- 150,000.00
payables Co., Ltd.
Other
Changan Ford Mazda Engine Co., Ltd. - 144,115.79
payables
Other
Chengdu Wanyou Filter Co., Ltd. - 120,000.00
payables
Other
Chongqing Anfu Automobile Marketing Co., Ltd. - 100,000.00
payables
Other Chongqing Wanyou Zunda Automobile Sales &
100,000.00 -
payables Service Co., Ltd.
Other Chongqing Wanyou Zunda Automobile Sales and
50,000.00 -
payables Service Co., Ltd. Guangxi Branch
Other Chongqing Wanyou Zunda Automobile Sales and
150,000.00 -
payables Service Co., Ltd. Guizou Branch
Other Chongqing Wanyou Zunda Automobile Sales and
150,000.00 -
payables Service Co., Ltd. Sichuan Branch
Other Chongqing Wanyou Zunda Automobile Sales and
100,000.00 -
payables Service Co., Ltd. Yunnan Branch
Subtotal 339,955,319.27 195,313,427.50
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
XIII. Share-based payments
1. General information
2018.6
The total amount of the employee services as a result of the share-based payments 32,697,000.00
The equity settled share based payments are as follows:
2018.6
The accumulated amount of equity settled share-based payments included in capital 32,697,000.00
reserve
The amount of equity settled share-based payments included in expense -
2. Share-based payment scheme
On 23 September 2016, the share option was approved to be granted on 23 September 2016 by the 12th meeting
of the seventh session of the Board of Directors and the 8th meeting of the seventh session of Board of
Supervisors. According to the share option scheme, the Company granted 29,140,000 options to 202 employees,
conferring rights to purchase 1 A share of Changan Automobile for each option before the expiration date. Share
options are granted to directors, chief executive officers and key technical and management personnel.
The share option will expire in 5 years. After the vesting period of 24 month since the grant date, the option shall
be exercised in three periods. In each exercise period, 1/3 of the total options could be exercised when the
prescribed performance conditions are met. The exercise price is RMB14.12 per share. The options granted shall
be exercised before the expiration date. The share should not be exercised unless the prescribed conditions are met.
The exercisable shares not exercised in above periods will be written off by the Company. The company has
disclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution".According to the
company's stock option incentive plan (Revised Draft), the relevant provisions on the stock option price
adjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment,
issuance or reduced matters occur before the stock exercise,the stock option price should be adjusted. The exercise
price of the adjusted stock option is 13.478 yuan. The incentive object must be exercised within the validity period
of the option exercise. If the exercise conditions are not met, the current stock options may not be exercised. If
part of the stock options that meet the exercise conditions but are not exercised in the above exercise period are
cancelled by the company.
The performance indicators of the share option includes:
(1) Return on equity (ROE)
(2) Net profit growth rate attributable to owners
(3) Economic value added (EVA), and
(4) The ratio of prime operating revenue to operating revenue
The above net profit and ROE are based on net profit and weighted average net assets attributable to owners
deducting non-recurring gains and losses.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
The exercise terms of share options:
Exercise Exercise
Exercise Time Exercise Terms
Period Ratio
2017 net profit growth rate based on 2015 average
growth rate ≥3.2%(growth amount equivalent to
The 1st trading day since 2 RMB10,182,000,000);
st
The 1 4 month after the grant date ROE≥15%
exercise 1/3 to the last trading day sinc The above indicators≥benchmark average, and ≥7
period e 36 month after the grant 5 quartile
date △EVA>0;
The ratio of prime operating revenue to operating
revenue≥95%
2018 net profit growth rate based on 2015 avera
ge growth rate ≥3.2%(growth amount equivalent t
o RMB10,507,000,000);
The 1st trading day since 3
ROE≥15%
The 2nd 6 month after the grant date
The above indicators≥benchmark average, and ≥7
exercise 1/3 to the last trading day sinc
5 quartile
period e 48 month after the grant
△EVA>0;
date
The ratio of prime operating revenue to operating
revenue≥95%
2019 net profit growth rate based on 2015 avera
ge growth rate ≥3.2%(growth amount equivalent t
o RMB10,844,000,000);
The 1st trading day since 4
ROE≥15%
The 3rd 8 month after the grant date
The above indicators≥benchmark average, and ≥7
exercise 1/3 to the last trading day sinc
5 quartile
period e 60 month after the grant
△EVA>0;
date
The ratio of prime operating revenue to operating
revenue≥95%
The fair value of share options granted amounted to RMB139,527,600. On April 17, 2018, according to the 30th
meeting of the seventh board of directors of the Company, due to the failure of the performance evaluation target
of the first exercise period of the stock option incentive plan, and 12 incentive targets have been dismiss the labor
contract, so they no longer meet the conditions of stock option incentives. The Company has approved the
cancellation of 10,826,600 stock options by the board of directors. After the cancellation, the company's stock
options issued under the plan are 18.831 million shares, and the corresponding fair value is RMB. 87,721,200
yuan. The share option fee confirmed by the company in June 2018 is RMB 0.00.
The fair value of the equity-settled share option is determined using Black-Scholes model based on the estimate in
accordance with the terms and conditions of the share options. The input variables are as follows:
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Valuation factors 2016
Dividend rate (%) 0%
Expected volatility (%) 29.78%
Historical volatility (%) 29.78%
Risk-free rate (%) 2.4987%
Expected duration (year) 4
Share price as at the grant date (Yuan) 15.43
The expected duration of the option is based on the historical data of the past, which is not necessarily reflected in
the exercise of the right in future.The expected volatility is based on the assumption that the historical volatility
reflects the future trend, but not necessarily the actual results.
XIV. Commitments and Contingencies
1. Significant commitments
Investment commitment
By June 30th 2018, the group has no investment commitment that has been signed but not yet fully fulfilled.
2. Contingencies
By June 30th 2018, the company has no significant contingencies that need to be published.
XV. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √ Not Applicable
2. Distribution of profit
□ Applicable √ Not Applicable
3. Sales return
□ Applicable √ Not Applicable
XVI. Other important events
1. Correction of accounting error of earlier stage
□ Applicable √ Not Applicable
135
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
2. Debt restructuring
□ Applicable √ Not Applicable
3. Asset replacement
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinuing operation
□ Applicable √ Not Applicable
6. Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,
and identify the report and information disclosed of the brand based on the identified branch.
business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’s
resource distribution and evaluate its overall performance
(3) The group receives related accounting information on the financial situation, operation performance and cash flow.
If two or more components have similar economic features and meet the conditions, they should be consolidated into one branch.
Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China. The
management of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this year’s
report.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Account Receivables
In RMB Yuan
Ending Beginning
Items Book balance Provision for bad-debts Book balance Provision for bad-debts
Amount (%) Amount (%) Amount (%) Amount (%)
Individually significant
amount and account
receivables of individually
provision for bad debts
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Account receivables of provision for bad-debts calculated and extracted by groups
Group 1: account
receivables of provision
for bad-debts calculated 610,262,793.76 10.99 14,881,634.65 2.44 336,704,741.88 6.73 13,247,893.43 3.93
and extracted by aging
analysis
Group 2: Account
receivables for related 4,944,713,693.79 89.01 - - 4,668,539,742.55 93.27 - -
parties
Group subtotal 5,554,976,487.55 100 14,881,634.65 0.27 5,005,244,484.43 100 13,247,893.43 0.26
Notindividually
significant amount but
other receivables of
individually provision
for bad debts
Total 5,554,976,487.55 100 14,881,634.65 0.27 5,005,244,484.43 100 13,247,893.43 0.26
Types of account receivables
Within groups, account receivables of provision for bad-debts are calculated and extracted by aging analysis
√ Applicable □ Not Applicable
In RMB Yuan
Ending Beginning
Account
Book balance Provision for Book balance Provision for
receivable age
Amount (%) bad-debts Amount (%) bad-debts
Within 1 year
Including
0- 6 months 558,051,597.15 91.45 - 308,058,891.27 91.50 -
6 to 12 months 25,508,286.00 4.18 1,275,414.30 11,052,418.43 3.28 552,620.92
Within 1 year
583,559,883.15 95.63 1,275,414.30 319,111,309.70 94.78 552,620.92
subtotal
1 to 2 years 14,541,878.43 2.38 1,454,187.84 5,432,400.00 1.61 543,240.00
2 to 3 years 2,836.67 - 851.00 2,836.67 - 851.00
3 to 4 years 14,028.00 - 7,014.00 14,028.00 - 7,014.00
4 to 5 years
Over 5 years 12,144,167.51 1.99 12,144,167.51 12,144,167.51 3.61 12,144,167.51
Total 610,262,793.76 100 14,881,634.65 336,704,741.88 100 13,247,893.43
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage
□ Applicable √ Not applicable
(2) On June 30, 2018, the top five accounts receivable totalled RMB 4,325,702,550.47, accounting for 77.88% of the total
accounts receivable (2017: RMB 3,973,737,026.11, accounting for 82.95% of the total accounts receivable).
(3) Account receivables of related parties
In RMB Yuan
2018.6 2017.12
Group provision for provision for
book balance book balance
bad-debts bad-debts
Related party accounts receivable provision for bad
4,944,713,693.79 - 4,668,539,742.55 -
debts
2. Other receivables
(1) Other receivables
In RMB Yuan
Ending Beginning
Provision for Provision for
Items Book balance Book balance
bad-debts bad-debts
Amount (%) Amount (%) Amount (%) Amount (%)
Individually significant
amount and account
1,544,178,640.00 69.64 - - 1,127,509,417.42 65.37 - -
receivables of individually
provision for bad debts
Account receivables of provision for bad-debts calculated and extracted by groups
Group 1: account receivables
of provision for bad-debts
121,990,433.54 5.50 1,072,191.62 0.88 125,520,423.39 7.28 1,088,333.82 0.87
calculated and extracted by
aging analysis
Group 2: Account receivables
of provision for bad-debts
551,236,733.19 24.86 - - 471,782,095.90 27.35 - -
calculated and extracted by
related parties
Group subtotal 673,227,166.73 30.36 1,072,191.62 0.16 597,302,519.29 34.63 1,088,333.82 0.18
no Individually significant
amount but other receivables
of individually provision
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
for bad debts
Total 2,217,405,806.73 100 1,072,191.62 0.05 1,724,811,936.71 100 1,088,333.82 0.06
Types of the account receivables
account receivables of provision for bad-debts are calculated and extracted by aging analysis
√ Applicable □ Not Applicable
In RMB Yuan
Ending Beginning
Account
Book balance Provision for Book balance Provision for
receivable Age
Amount (%) bad-debts Amount (%) bad-debts
Within 1 year
Among：
0-6 months 117,153,597.36 96.03 - 119,053,084.31 94.85 -
6 to 12 months 2,861,451.16 2.35 143,072.56 5,512,392.58 4.39 275,619.62
Within 1 year
120,015,048.52 98.38 143,072.56 124,565,476.89 99.24 275,619.62
subtotal
1 to 2 years 1,072,883.60 0.88 107,288.36 76,250.15 0.06 7,625.02
2 to 3 years 23,805.07 0.02 7,141.52 48,000.00 0.04 14,400.00
3 to 4 years 128,014.34 0.10 64,007.17 80,014.34 0.06 40,007.17
4 to 5 years - - - - - -
Over 5 years 750,682.01 0.62 750,682.01 750,682.01 0.60 750,682.01
Total 121,990,433.54 100 1,072,191.62 125,520,423.39 100 1,088,333.82
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage.
□ Applicable √ not Applicable
(2) Other account receivables of related parties
In RMB Yuan
2018 2017
Group
Book balance Provision for bad-debts Book balance Provision for bad-debts
Related party other
accounts receivable
551,236,733.19 - 471,782,095.90 -
provision for bad
debts
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
3. Long-term equity investment
In RMB Yuan
impair
Explanation for the
Share Voting ment
Accou difference between Impa
beginning proportion in proportion in provisi cash bonus in
Invested in nting capitalized cost increase/decrease ending amount shareholding irme
amount the company the company on in current period
method percentage and nt
invested (%) invested (%) current
voting percentage
period
1、Joint ventures
Chongqing Changan Suzuki
Equity 237,719,933.33 1,190,705,710.43 -80,032,104.09 1,110,673,606.34 50 50 None - - -
Automobile Co., Ltd
Jiangling Holding Co., Ltd Equity 1,008,511,522.00 2,907,749,943.37 -83,707,141.74 2,824,042,801.63 50 50 None - - -
Changan Ford Automobile
Equity 975,232,926.29 4,125,426,104.20 866,427,723.13 4,991,853,827.33 50 50 None - - -
Co., Ltd
Changan Mazda Automobile
Equity 1,097,839,635.00 2,439,429,811.02 635,451,737.12 3,074,881,548.14 50 50 None - - -
Co., Ltd
Changan Ford Mazda Engine
Equity 786,734,634.10 903,838,395.08 -73,187,649.79 830,650,745.29 50 50 None - - 114,500,000.00
Co., Ltd
Changan PSA Automobile
Equity 2,007,841,700.00 93,561,126.76 -171,729,822.06 -78,168,695.30 50 50 None - - -
Co., Ltd
2、Associated Enterprises
Chongqing Changan Kuayue
Equity 61,800,885.00 101,399,892.43 17,458,524.85 118,858,417.28 34.3 34.3 None - - -
Automobile Co., Ltd
Chongqing Changan Kuayue Equity 1.00 - - 0.00 34.3 34.3 None - - -
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Automobile Sales Co., Ltd
Beijing Fang’an Xinyue taxi
Equity 6,000,000.00 - - 0.00 20.7 20.7 None - - -
Co., Ltd
Chongqing Auto Finance
Equity 1,805,000,000.00 1,817,669,991.73 137,070,317.23 1,954,740,308.96 28.66 28.66 None - - -
Co., Ltd.
Zhenjiang Demao Hairun
Equity Investment Fund
Equity 518,743,029.48 518,742,921.95 289,516,719.35 808,259,641.30 32.67 32.67 None - - -
Partnership (Limited
Partnership)
3、Subsidiaries
minority
shareholders
Nanjing Changan
Cost 422,533,259.00 422,533,259.00 - 422,533,259.00 84.73 91.53 authorize the - - -
Automobile Co., Ltd
company to exercise
voting right
minority
shareholders
Hebei Changan Automobile
Cost 438,223,236.00 438,223,236.00 - 438,223,236.00 94.22 95.62 authorize the - - -
Co., Ltd
company to exercise
voting right
Chongqing Changan
International Automobile Cost 13,068,581.00 13,068,581.00 - 13,068,581.00 100 100 None - - -
Sales and Service Co., Ltd
Chongqing Changan
Automobile Customer Cost 29,700,000.00 29,700,000.00 - 29,700,000.00 99 99 None - - 628,650,000.00
Service Co., Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chongqing Changan Vehicle
Networking Technology Co., Cost 88,500,000.00 88,500,000.00 - 88,500,000.00 100 100 None - - -
Ltd.
Chongqing Changan
Cost 3,150,000.00 3,150,000.00 - 3,150,000.00 100 100 None - - -
Automobile Sales Co., Ltd
Chongqing Changan Special
Cost 2,500,000.00 2,500,000.00 - 2,500,000.00 50 50 None - - -
Automobile Co., Ltd
Chongqing Changan Europe
Cost 155,469,913.50 155,469,913.50 - 155,469,913.50 100 100 None - - -
Design Center Co., Ltd
Chongqing Changan new
Cost 18,850,000.00 18,850,000.00 - 18,850,000.00 65 65 None - - -
Engergy Automobile Co. Ltd
Changan United Kingdom
Cost 236,387,395.40 236,387,395.40 - 236,387,395.40 100 100 None - - -
R&D Center Co., Ltd.
Beijing Changan Automotive
engineering and Technology Cost 1,000,000.00 1,000,000.00 - 1,000,000.00 100 100 None - - -
Reseach Co., Ltd.
Harbin Changan Automotive
Technology Reseach Co., Cost 1,000,000.00 1,000,000.00 - 1,000,000.00 100 100 None - - -
Ltd.
Shanghai Changan
Automotive Engineering and Cost - 1,000,000.00 -1,000,000.00 - 100 100 None - - -
Technology Co., Ltd.
Changan Japan Design
Cost 1,396,370.15 1,396,370.15 - 1,396,370.15 100 100 None - - -
Center Co., Ltd.
Changan United States R&D
Cost 10,243,460.00 10,243,460.00 - 10,243,460.00 100 100 None - - -
Center Co., Ltd.
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Baoding Changan Bus
Cost 176,002,613.18 176,002,613.18 - 176,002,613.18 100 100 None - - -
Manufacturing Co., Ltd.
Hefei Changan Automobile
Cost 35,367,765.23 35,367,765.23 - 35,367,765.23 100 100 None - - -
Co., Ltd
Changan Automobile Russia
Cost 1,242,589.15 1,242,589.15 - 1,242,589.15 100 100 None - - -
Co., Ltd.
Changan Brazil Holding Co.,
Cost 2,584,556.97 2,584,556.97 - 2,584,556.97 100 100 None - - -
Ltd
Shenzhen Changan New
Engergy Automobile Service Cost 50,000,000.00 50,000,000.00 - 50,000,000.00 100 100 None - - -
Co. Ltd
Xiamen Changan New
Energy Automobile Sales & Cost 2,000,000.00 - 2,000,000.00 2,000,000.00 100 100 None - - -
Service Co., Ltd.
Guangzhou Changan New
Energy Automobile Sales & Cost 4,000,000.00 - 4,000,000.00 4,000,000.00 100 100 None - - -
Service Co., Ltd.
Fuzhou Fuqing Changan
New Energy Automobile Cost 2,000,000.00 - 2,000,000.00 2,000,000.00 100 100 None - - -
Sales Co., Ltd.
Chongqing Changan New
Energy Automobile Cost 99,000,000.00 - 99,000,000.00 99,000,000.00 100 100 None - - -
Technology Co., Ltd.
10,299,644,005.7
Total - 15,786,743,636.55 1,643,268,304.00 17,430,011,940.55 - - - - - 743,150,000.00
8
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
4. Operating revenue and cost
(1) Operating revenue
In RMB Yuan
Items Current amount Prior-period amount
Main business income 32,840,989,835.15 31,674,932,332.88
Other business income 1,368,075,880.87 1,164,589,896.82
Operating cost 29,726,487,573.72 28,904,081,124.37
(2) Main business (classified by industries)
In RMB Yuan
Current amount Prior-period amount
Industries
revenue cost revenue cost
Automobile manufacturing
32,840,989,835.15 29,084,851,115.73 31,674,932,332.88 28,528,331,081.30
industry
Total 32,840,989,835.15 29,084,851,115.73 31,674,932,332.88 28,528,331,081.30
(3) Main business (classified by products)
In RMB Yuan
Current amount Prior-period amount
Products
revenue cost revenue cost
Sales of goods 32,768,288,077.90 28,995,127,299.93 31,601,267,068.68 28,416,569,899.88
Outsourcing processing 72,701,757.25 89,723,815.80 73,665,264.20 111,761,181.42
Total 32,840,989,835.15 29,084,851,115.73 31,674,932,332.88 28,528,331,081.30
5. Investment income
(1) Details of investment income
In RMB Yuan
Items Current amount Prior-period amount
Long-term equity investment income measured by cost
628,650,000.00 -
method
Long-term equity investment income measured by equity
1,362,011,815.11 3,831,618,978.64
method
investment income from long -term equity investment
42,715.98 -2,000,000.00
disposition
others 4,434,355.36 1,028,907.27
Total 1,995,138,886.45 3,830,647,885.91
(2) Long-term equity investment incomemeasured by cost accounting method
None
(3) Long-term equity investment income measured by equity accounting method
In RMB Yuan
Invested in company Current amount Prior-period amount
Changan Ford Automobile Co., Ltd. 866,427,723.13 3,094,825,993.27
Changan Mazda Automobile Co., Ltd. 635,451,737.12 600,278,338.63
Changan Suzuki Automobile Co., Ltd. -80,032,104.09 -19,611,249.15
Changan Ford Mazda Engine Co., Ltd. 41,312,350.21 55,447,236.74
Jiangling Holding Co., Ltd -83,707,141.74 96,573,362.50
Chongqing Xiyi Automobile Linkage Rod Co.,
- 127,449.67
Ltd
Changan PSA Automobile Co., Ltd. -171,729,822.06 -45,643,059.35
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chongqing Changan Kuayue Automobile Co.,
17,458,524.85 6,419,549.31
Ltd.
Chongqing Auto Finance Co., Ltd. 137,070,317.23 43,201,357.02
Zhenjiang Demao Hairun Equity Investment
-239,769.54 -
Fund Partnership (Limited Partnership)
Total 1,362,011,815.11 3,831,618,978.64
6. Supplementary information of cash flow statement
In RMB Yuan
Supplementary information Current amount Prior-period amount
1. Cash flow relating to operating activities calculated by adjusting
the net profit
Net profit 2,212,251,313.70 3,831,471,921.43
Add: provision for assets impairment 114,014,999.44 133,639,836.86
Depreciation of fixed assets, oil and gas assets, productive biological
806,662,201.79 638,817,928.22
assets
Amortization of intangible assets 296,811,222.72 267,263,626.81
Amortization of long-term deferred expense
Disposal loss/(income) on fixed assets, intangible assets and others
39,045,358.00 684,027.55
long-term assets
Financial expense -248,434,734.69 -256,888,513.32
Investment loss -1,995,138,886.45 -3,830,647,885.91
Decrease in deferred tax assets -31,839,831.43 -113,878,150.78
Decrease in inventory 288,715,822.18 -3,660,997,018.33
Decrease of operational receivables 9,987,481,500.02 5,693,325,815.98
Increase of operational payables -6,426,150,041.12 1,346,003,463.96
Net cash flow from operating activities 5,043,418,924.16 4,048,795,052.47
2. Major investment and financing activities involving no cash
incomings / outgoings
3. Net change in cash and cash equivalent
Ending balance of cash 22,689,732,804.05 25,409,019,964.44
Less: beginning balance of cash 20,172,657,984.53 22,326,566,084.67
Net increase in cash and cash equivalents 2,517,074,819.52 3,082,453,879.77
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
Items Amount Explanation
Profit and loss of non-current assets disposition 18,771,809.69
Government subsidies counted in current profit and loss (except the
government subsidies which are closely related with business events, and 1,116,231,219.32
given certain amount according to national standards)
Other non-business incomings and outgoings except above-mentioned
-23,029,866.17
items
Interest on deferred payment of funds received from non - financial
8,091,557.41
enterprises
Less: amount influenced by income tax 180,608,049.13
Amount influenced by minority shareholders’ interest (after tax) 25,566,780.69
Total 913,889,890.43 --
145
Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the
Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies
Offering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
□ Applicable √ Not applicable
2. Return on equity and earnings per share
In RMB Yuan
Weighted average return Earnings per share
Profit in report period
on equity Basic EPS Diluted EPS
Net profit belonging to the Company’s common stockholders 3.39% 0.34 0.34
Net profit belonging to the Company’s common stockholders
1.47% 0.14 0.14
after deducting non-recurring profit and loss
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad
have adjusted the data differences, identify the name of the auditing institution abroad.
None
4. Others
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2018 Semi-annual Report
Chapter 10 Documents for Future Reference
Catalogue of Reference Files
1、Semi-annual report with signature of legal representative;
2、Financial statements, with the signatures and seals of legal representative, person in charge of accounting, and
person in accounting agency;
3、BOD resolutions and written confirmation documents signed by board members and senior executives;
4、Written auditing opinions in form of resolution by the Board of Supervisors;
5、All original copies of company documents and announcements disclosed in China Securities Journal,
Securities Time, and Hong Kong Commercial Daily in reporting period.
The company will provide the the abovementioned reference files timely when required by China Securities
Regulatory Commission and Shenzhen Stock Exchange, and required by shareholders according to law and
corporate regulations.
Chairman: Zhang Baolin
Submit Date Approved by BOD: August 31, 2018
147
