Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Chongqing Changan Automobile Company Limited
2020 Semi-annual Report
August 2020
Chongqing Changan Automobile Company Limited 2020 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 2020, the Company has no plans of cash dividend, no bonus shares and no
share converted from capital reserve.
The Chairman of the Board Zhu Huarong, 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 2020 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 ........................................................................ 8
Chapter 4 Business Discussion and Analysis ........................................................... 10
Chapter 5 Important Matters .................................................................................... 22
Chapter 6 Changes in the shareholding of the company and shareholders.............. 31
Chapter 7 Information about Directors, Supervisors, Senior Management ............. 36
Chapter 8 Corporate Bonds ...................................................................................... 37
Chapter 9 The Financial Statements......................................................................... 38
Chapter 10 Documents for Future Reference ......................................................... 159
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Chongqing Changan Automobile Company Limited 2020 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 Co., Ltd., 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
Changan Industry Refers to
Automobile (Group) Co., Ltd., a subsidiary company of South Industries
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
Chongqing Changan Suzuki Automobile Co., Ltd., a subsidiary company
Changan Suzuki Refers to
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
CME Refers to Changan Mazda Engine Co., Ltd., a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the Company
Changan Finance Refers to Changan Automobile Finacing Co., Ltd., an associate of the Company
China South Industries Group Finance Co., Ltd., a subsidiary company of
South Industries Finance Refers to
South Industries
United Prosperity (Hong Kong)Investment Co., Ltd., a subsidiary
UPI Refers to
company 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., an associate of
CMAL Refers to
China Changan
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Chongqing Changan Automobile Company Limited 2020 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 Zhu Huarong
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 2019.
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 2020 Semi-annual Report
The newspaper appointed for information disclosure, the website for the publishment 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
2019.
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) 32,781,657,479.10 29,875,780,096.84 9.73%
Net profit belonging to shareholders of
2,602,166,402.68 -2,240,039,761.11 216.17%
the listed company (Yuan)
Net profit belonging to shareholders of
the listed company after deduction of -2,616,888,301.47 -2,911,767,596.44 10.13%
non-recurring profit and loss (Yuan)
Net cash flow arising from operating
6,912,586,693.60 4,220,263,630.95 63.80%
activities (Yuan)
Basic earnings per share (Yuan/Share) 0.54 -0.47 215.28%
Diluted earnings per share (Yuan/Share) Not applicable Not applicable Not applicable
Return on equity (ROE) (%) 5.74% -4.97% Up 10.71 points
Increase/decrease
Report period Same period of last year
y-o-y (%)
Total assets (RMB) 102,801,758,302.93 97,617,053,590.38 5.31%
Net assets attributable to shareholder of
46,668,569,340.78 44,028,312,743.66 6.00%
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 2020 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
3. Explanation of the differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
VI. Non-recurring items and amounts
√ Applicable □ Not applicable
In RMB Yuan
Item Amount Illustration
Non-recurring items and amounts(including accrued reversal assets
3,547,727,244.56
impairment part)
Government subsidies included in the profit and loss of the current period
(Except closely related to business operations, in accordance with the
215,977,955.28
national unified standard quota or quantitative enjoyment of government
subsidies)
Current net profit from beginning to combined date of business
combination under common control
In addition to the effective hedging business related to the normal business
of the company, the gains and losses from changes in fair value arising
from the holding of trading financial assets, derivative financial assets,
trading financial liabilities, derivative financial liabilities, and disposal of 1,753,674,697.00
transactional financial assets, derivative finance Investment income from
assets, trading financial liabilities, derivative financial liabilities and other
debt investments
Gains and losses from entrusted loans 6,884,080.21
Other non-business income and expenditures other than the above items -20,172,785.69
Interest on deferred payment of funds received by non-financial enterprises 21,549,119.75
Subtract: Influenced amount of income tax 293,310,943.88
Influenced amount of miniority shareholders’ equity (after tax) 13,274,663.08
Total 5,219,054,704.15 --
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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
□ 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 2020 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 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 company's vehicle segment mainly includes
Changan Passenger car, Changan Oushang, Changan Kaicheng, and joint ventures/joint companies Changan Ford and Changan
Mazda. Up to now, the company has successfully launched a series of classic brands such as CS series, Eado series, UNI sequence,
Oushang series and Shenqi Series; a series of famous JV products such as all new Focus, Escort, Escape, Edge, Explorer, Corsair,
Axela, CX-5, CX-8, CX-30 and so on. At the same time, we have launched new energy vehicles such as CS55 E-Rock, Eado EV,
new Benben EV and CS15EV, which are admired by the market and loved by the consumers.
II. Major changes in assets
1. Major changes in assets
No significant changes in major assets during the reporting period
2. Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
The Company sticks to the principle of innovation and technology-led development, and the Company has built up a
world-class R&D capability, backed by the industry-leading Global R&D system. With the creation of classic products as its core, the
Company accelerated the "Beidou Tianshu" and "Shangrila" projects to transform into smart travel technology company. As the core
of the intelligent strategy, the global software center of Chang'an automobile is located in Xiantao Data Valley. The center is
dedicated to building the largest, world-leading, autonomous, safe and controllable software technology and mobile intelligent
platform in China. The company has 16 fields including vibration and noise, collision safety, braking performance, chassis test, drive
system, 194 international advanced laboratories and the world's leading data center with cloud technology. As of June 2020, a total of
14,411 patent applications have been filed at home and abroad, including 4,449 for invention patents.
Continue to build classic products. The first new car UNI-T from Passenger car high-end product series "UNI" was officially
launched; the sales number of Eado PLUS amounted to more than 10,000 three months in a row; the 2020 new CS75, Benben E-star,
Keshang EV and other models were successfully launched. The Chang'an Oushang X5 was officially unveiled, and the first prototype
of the 2.0 T vertical engine was successfully fired. CS55 pure electric version was launched in July, the NEDC range was up to 605
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
km with the fast charge up to 30% ~ 80% in 35 minutes. The sales number of CS75 Plus came to more than 150,000 units since its
launch of last September, overtaking many joint-venture brands and leading the pack in the same category.
Innovative Technology accelerates. The L3 class autopilot uses UNI-T to achieve the first domestic mass production, including
40 km/h under the congestion of automatic driving function and 40 km/h above high-speed automatic driving auxiliary function,
freeing hands, feet and eyes; blue whale power platform NE15 with UNI-T, fuel consumption as low as 6.3 l/100km, comparable to
the first-class joint venture brand. "PM0.1" composite anti-bacterial and anti-toxic high-efficiency filter passed the Certification
Center "CATARC CN95" certification issued by China Automotive Technology Research Center, carrying with the Eado PLUS.
Ultraviolet lamp sterilization system was carried with UNI-T debut. Breakthroughs have been made in such advanced technologies as
load distribution and structural optimization of carbon fiber body, integrated design of carbon fiber body and aluminum alloy frame,
connection technology of various lightweight materials, etc. , to achieve carbon fiber, aluminum alloy and other lightweight materials
integrated applications.
The brand is poised to rise. The group business brands develop separately, and the revision consummates the group brand
management principle, and two business brands positioning of Oushang and the Kaicheng is conducted; the Company formulates the
goal and the policy for the passenger brand upward, advances the key match weight to fall on the ground, achieves the continuous
innovation in brand communication forms, conducts the planning live events, builds the direct links with customers, achieves double
growth in traffic and value, and accelerates the brand image upgrade; the Company optimizes the public opinion monitoring and
maintenance system, continues to build design, intelligence, service, power, health and other positive public opinion label image, and
raises the brand attention steadily.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Chapter 4 Business Discussion and Analysis
I. Overview
At the beginning of the New Year in 2020, the sudden spread of the new coronavirus epidemic in China and many countries
around the world has not only brought about a "grey Rhinoceros" in China's economy, but also a shock to the global economy, that
shut down global economic activity and disrupted normal social life. China's auto industry has been on a downward trend in recent
years, the epidemic situation further exacerbated the decline of the auto market, and the normal operation of the entire industrial
chain. The sales number of auto industry came to 3.672 million vehicles in the first quarter of 2020, down 42.4 % from the same
period of last year.
In the face of the epidemic, under the strong leadership of the Central Committee of the Communist Party of China with
Comrade Xi Jinping at its core, the Chinese people have worked together with one heart and one mind to overcome difficulties and
given full play to the advantages of the socialist system with Chinese characteristics, to rally the troops against the epidemic. With
the joint efforts of the whole country and the broad masses of the people, the situation of epidemic prevention and control throughout
the country has continued to improve, and the situation of accelerating the restoration of order in production and life has continued to
consolidate and expand. The car market has also gradually shaken off the impact of the epidemic and began to gradually pick up. In
the first half of 2020, China's auto market recorded cumulative production and sales of 10.112 million vehicles and 10.257 million
vehicles respectively, down 16.8 percent and 16.9 percent respectively from the same period of last year. Passenger car sales fell by
22.4% to 7.873 million units, with passenger car sales down by 26.0% and SUV sales down by 14.9%. The production and sales
number of new energy passenger cars amounted to 267,000, down by 40.8% from the same period of last year. The outbreak has also
accelerated the reshuffle of the industry, with sales of 9.139 million vehicles by the top 10 groups in the first half of the year, down
by 16.5% from the same period of last year, a slightly smaller decline than the industry and accounting for 89.1% of total vehicle
sales, 0.4 percentage points higher than a year earlier. (The above data from China automobile industry production and Marketing
News by China Automobile Industry Association and its industry information release)
In the first half of 2020, in the face of the sudden new coronavirus epidemic situation, the company took solid steps to prevent
and control the epidemic situation, and quickly organized the resumption of work and production, ensuring that both the epidemic
situation prevention and control and the production and operation work moved forward in a strong and orderly manner. In the first
half of 2020, the company effectively seized the opportunity of market recovery after the outbreak of the disease. The total sales
reached 831,000 units, a year-on-year increase of 1.3%, ranking the fifth in the Chinese automobile industry in terms of sales volume.
During the reporting period, the main work is as follows:
1. Fully guard against the new coronavirus epidemic, "pull, grab, force" to fully promote the resumption of work and
production,
In the face of the epidemic, the Company resolutely implemented the decisions and plans of the Party Central Committee,
regarded the disease prevention and control as a priority task, established the emergency work leading group for the first time,
clarified the responsibilities and working mechanisms for epidemic prevention and control, provided comprehensive guidance for
specific work such as epidemic prevention and control, supplies, security, and resumption of work and production, and ensured the
rapid implementation of various measures. While firmly winning the battle of preventing and controlling the epidemic, the Company
has always put the safety and health of its workers and staff at the top of its agenda, and has made full use of various channels to
spread knowledge of epidemic prevention to its employees, arranged a special person to collect the health condition of each unit
every day and sent several batches of emergency materials to each unit, and set up a mask production line to ensure the safety of the
employees.
In order to effectively ensure the resumption of work and production, the Company quickly responded to production demand,
coordinated production materials, and carried forward three major actions (supporting suppliers to resume work, seizing inventory
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
materials, and rationalizing logistics and transportation) , implement the three key points (key areas, key materials, key risk
suppliers) , set up 10 major resource coordination groups, seize resources, pull inventory, spare materials, and fully coordinate the
supply of materials. In the National Epidemic Prevention and control situation, the Company promoted the entire industrial chain
back to work through "pull, grab, force", and achieved a year-on-year outperformance of the industry, 303,000 units sold in the first
quarter with year-on-year decline less than the industry; In the first half of 2020, sales volume of the Company increased by 1.5%
year-on-year, which showed a good momentum of development.
2. Strengthen the implementation of the strategy, and steadily advance the reform and adjustment
The Company fully advanced the "third pioneering plan for Innovation and entrepreneurship" , focus on the strategic main line
of "strengthening the main business, steadily transforming, expanding the market, building the ecology, and grasping the guarantee" ,
focus on "customer-oriented, firmly reform, innovative marketing, ultimate efficiency" , focus on the implementation of key work to
ensure the strategic landing. Major reform projects have made steady progress, completing the reform of Chang'an Oushang and
Kaicheng. The Company will actively promote organizational change, complete organizational changes such as the Liangjiang
factory, and carry out functional adjustments. The Company will set up software and technology companies and other organizations,
and constantly push for the implementation of "small headquarters+ enterprise clusters + shared platforms + incubation centers." The
Company will push forward the reform of the talent pool, continue to optimize the personnel structure, make solid progress in
matching talents and posts, and make the talent pool more stable.
3. Adhere to the bottom line thinking, and improve the quality of operation
While fighting the new coronavirus epidemic, the Company continued to make overall efforts to improve the quality of
operation based on the "16 words" policy. The work of "increasing revenue, reducing cost, cutting expenditure, controlling
investment, lowering storage, financing, cashing out and reforming" has been thoroughly carried out. The average price of
autonomous brand cars has been continuously raised, and significant results have been achieved in reducing costs and expenditures,
and the scale of aged vehicles has been reduced significantly, and the overall quality of operations has picked up in an orderly
manner. In the face of the impact of the epidemic on the entire industry, the Company has followed the general strategy of "fast
contraction, save expenditure, scramble resources, sustainable, change direction, build ecology, stabilize the team and ensure safety"
based on the general idea of "resource protection, group heating, steady cost reduction", the strategy of cost reduction is steadily
introduced to enhance the company's plan reserve to deal with market changes. The Company will continue to push forward the
action plan of "fast contraction and low expenditure", and continue to reduce manufacturing costs and interim costs. The Company
formulated the short, medium and long-term supply guarantee program to effectively deal with the risk of supply guarantee. The
Company further strengthened the lean labor, increased the level of personnel between the bases, reduced human resources waste,
and saved recruitment and labor costs.
4. The remarkable effect of the product structure adjustment, the innovative dissemination pushing up the brand
The new products performed well in the market one after another, the pre-sale order of Eado PLUS for 16 days breaks ten
thousand and its sales breaks ten thousand for three months in a row since the official launch by the online direct broadcast on March
27. The first new car UNI-T from the new high-end product series of "UNI" officially launched, and the pre-sale order for 32 days
exceeded more than 16,000; as a future technology mass producer, UNI-T endowed with a new design language, a new intelligent
vehicle system, a new blue whale power, a new platform architecture, "four new" blessing for consumers to bring unprecedented
control quality. Lincoln adventurer smoothly took off the line, which fully reflected the determination of Lincoln brand deeply rooted
in the Chinese market. Changan Ford has launched a large, high-end flagship SUV, dubbed as the new sixth-generation Ford
Explorer, the first in the $400,000 series to adopt a new generation of luxury performance longitudinal rear-drive layout and set a
new standard in the market segment.
Innovative brand communication will promote the battlefield from offline to online, and the passenger cars build the online
communication of "Chang'an live studio", and have the direct access to the new generation of consumers; the live coverage of UNI-T
debut broadcast across 38 regions around the world, Eado PLUS "cloud listing" becomes a counter-trend explosion. Through the
"thermal imaging anti-epidemic vehicle" public events, the first car brand pro-poor live broadcast events with goods and other events,
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
the Company aimed to build a good brand image. UNI-T achieved the new crowd expansion, face-to-face joint venture brand
competition, its new product design and technology concept to further strengthen the brand positioning of Chang'an passenger car,
"Technology Chang'an, smart partner".
5. Accelerating the implementation of the "Beidou Tianshu" and "shangri-la" programs, and the application of
innovative technologies
The Company advanced the "Beidou Tianshu" and "Shangri-la" programs; "intelligent cockpit domain control system" has been
selected by the Ministry of Industry and Information Technology (miit) as one of the "new generation of key tasks for artificial
intelligence industry innovation"; The Company held the event with the L3 production system, and UNI-T can easily handle all kinds
of road conditions under the condition of public open road, which proves the strength of Chang'an's L3 self-driving technology. The
core of the intelligent strategy of "Beidou Tianshu" ——global software center has been set up in Xiantao Data Valley, dedicated to
building the largest software technology and mobile intelligent platform in China. With NEDC's 301 km long range and 30 minutes
DC fast charging speed, Benben E-star has truly freed users from range anxiety and charging anxiety; the first pure electric car with a
carbon fiber body has come off the line smoothly, which marks the important achievement of the new energy vehicle project, and the
national key research and development plan of the 13th five-year plan undertaken by the Company, and the successful ignition of the
first prototype of the Chang'an blue whale 2.0 t longitudinal engine at the Global R & D Center, further speeding up the use of blue
whale power in light vehicles.
To speed up the application of innovative technologies to the ground, CS75 PLUS conducted a parade in densely populated
areas with an AI intelligent thermal imaging temperature measurement system, and covered more than 10,000 people for six days;
the "PM0.1" grade composite anti-bacterial and anti-toxic high-efficiency air-conditioning filter with Eado PLUS listed on the
market, with plasma generator, custom fresh air system and other configurations to achieve better than the "N95 mask" level of
protection; UV sterilization system with UNI-T debut helped to defend the epidemic through science and technology. Core Product
CS75PLUS acquired 6 outstanding (G) results in "Zhongbaoyan" collision test, showing strong safety strength.
6. Strengthen the marketing, and enhance the customer experience
The Company strengthened the marketing, and the overall trend of the Company business continues to improve. The Chang'an
passenger car brands bucked the trend, with 308,000 units sold in the first half, up by 1.2% year-on-year, while the sales volume and
prices of Oushang both rose with 72,000 units, up by 7.7% on the year-on-year basis and an average unit price increase of more than
20%. Key products have performed admirably with the CS75 series breaking 20,000 and the Eado PLUS breaking 10,000 for three
months in a row. In the first half of the year, the CS35 PLUS ranked first in the segment of the autonomous small SUV market
(retail) . In June, the wholesale of Eado PLUS amounted to more than 16,000 vehicles, retail number ranking first among Chinese
brands of the Compact car. The Company continued to promote the quality and efficiency of marketing channels, maintain the scale
of traditional channels, exhibit the new retail channels through the full scene layout, and continue to expand the coverage. Oushang
automobile continued to promote the process of producing passenger cars with the significant increase of the proportion with
Yunying standard product, and the average price increased significantly, and the channel coverage continued to increase. In the new
energy area, the Company launched the country's first "car to the countryside", and stimulated the rural areas of new energy car
consumption.
Focus on the improvement of customer experience, build customer service system, improve customer satisfaction; resolutely
implement the "double project" in products, customers, and marketing and other resources. Strong focus on customer service TOP
problem solving, and customer satisfaction indicators continue to improve. The first 5G + Ar Remote Service Center was set up in
China to solve the problems of vehicle owners and service stations by 5G + AR technology, and provide users with the ultimate
service experience. Driven by user demand as the origin of the product refresh, and the main core product design two-year renovation,
the Company ensured the user's voice feedback to the full development process to achieve a solid foundation for the launch of
UNI-T, and PLUS series.
7. The joint venture has risen to the challenge and steadily improved its quality of operation
The joint ventures continued to deepen communication and exchanges with its partners around key projects such as Lincoln's
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
and electric vehicles. The company has also steadfastly advanced the "revitalization plan" of Chang'an Ford, with 97,000 units sold in
the first half of 2020, up by 29.7% year-on-year. Ford Edge, Lincoln Adventurer, Ford Explorer and many other brand-new models
were listed on the market. Among them, the Lincoln adventurer has months of better than expected end retail sales. Changan Mazda
continued to implement product planning and conducted the on-line and off-line linkage of the new product CX-30 with the audience
of more than 60 million people; Changan Mazda continued to pay close attention to improving the quality of business, cost reduction
and efficiency.
8. Actively fulfill the social responsibility of listed companies and exhibit the responsibility of the state-owned enterprise
While doing a good job in the prevention and control of the epidemic, the Company also jumped into the front line of the
epidemic and worked together with the people of the whole country to tide over the difficulties and help each other, and actively
fulfilled corporate social responsibility. During the outbreak, the Company and its affiliated enterprises donated 10 million yuan to
fully support the epidemic prevention and control work, and over 10,000 party members donated 1.22 million yuan. The Company
started the production of ambulances, and delivered more than 1500 negative pressure ambulances. The Chang 'an new energy
technology enterprise joined hands with T3 travel and Chelai travel to provide free commuting, official and emergency mission travel
services for medical staff. The Company also took the advantage of the Global Research and Development Center Network "six
countries and nine places" as well as overseas bases to actively purchase anti-epidemic masks and protective clothing, and timely
offered the assistance to the domestic anti-epidemic front. In order to protect the rights and interests of customers, the Company takes
the initiative to provide care and protection to customers from two aspects: Vehicle Care and humanistic care. The service includes
delay of maintenance, pick-up and delivery of vehicles, national road rescue, epidemic situation care reminder, vehicle maintenance
reminder and other intimate services.
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
32,781,657,479.10 29,875,780,096.84 9.73%
revenue
Operating cost 29,734,615,697.63 27,419,410,626.92 8.44%
Operating 1,270,717,082.07 1,443,216,541.30 -11.95%
expenses
General and
Mainly due to changes in organization and prepaid
administrative 1,164,152,772.91 843,160,552.62 38.07%
wages
expenses
R&D expenses 1,464,554,423.42 1,720,159,658.88 -14.86%
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Financial
-98,053,545.38 -96,832,709.15 -1.26%
expenses
Mainly due to changes in the fair value of
Income tax
189,931,296.64 116,567,696.08 62.94% transactional financial assets leading to an increase
expense
in deferred income tax liabilities
Subtotal of cash
Mainly due to the significant decrease in "cash paid
inflow from
6,912,586,693.60 4,220,263,630.95 63.80% for purchasing goods and receiving labor services"
operating
compared with the previous year
activities
Mainly because the "cash paid for the purchase
Subtotal of cash
and construction of fixed assets, intangible assets
inflow from
-1,252,707,158.77 -3,684,509,162.66 66.00% and other long-term assets" and "cash paid for
investment
investment" decreased compared with the previo
activities
us year
Subtotal of cash
inflow from Mainly due to the increase in "cash received from
1,809,378,548.18 -65,487,944.32 2862.92%
financing borrowings" compared with the previous year
activity
Net increase in Mainly due to the net cash inflow from operating
cash and cash 7,460,644,506.35 499,453,398.49 1393.76% activities and financing activities during the current
equivalents period
Major changes on profit composition or profit resources in reporting period
√ Applicable □ Not applicable
The company's profit during the reporting period was greatly affected by non-recurring gains and losses. For details, please refer to
Chapter 2 " VI. Non-recurring items and amounts" in this report.
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
32,781,657,479.10 29,734,615,697.63 9.29% 9.73% 8.44% Up 1.07%
Production
According to products
Vehicles 32,049,653,469.63 28,965,284,746.97 9.62% 7.50% 5.97% Up 1.30%
According to region
China 31,119,150,931.79 28,129,352,859.96 9.61% 9.51% 8.27% Up 1.03%
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Chongqing Changan Automobile Company Limited 2020 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(%)
Mainly due to the net cash
inflow from operating
Monetary capital 17,326,421,237.43 16.85% 10,066,171,353.48 10.31% 6.54% activities and financing
activities during the current
period
Mainly due to the changes in
the scope of consolidation in
the current period, the
Accounts accounts receivable in the
2,299,982,425.41 2.24% 838,314,076.82 0.86% 1.38%
receivable original consolidation scope
were turned into accounts
receivable outside the
consolidation scope
Inventory 4,040,392,469.99 3.93% 3,375,441,488.37 3.46% 0.47%
Investment
6,989,493.94 0.01% 7,102,849.72 0.01% 0.00%
property
Long-term equity
12,808,010,205.56 12.46% 11,008,336,989.09 11.28% 1.18%
investment
Fixed assets 25,896,056,062.39 25.19% 27.60% -2.41%
26,939,490,554.19
Construction in
1,793,015,326.03 1.74% 1,729,803,028.43 1.77% -0.03%
progress
Due to new loans from the
Short-term loan 365,525,472.30 0.36% 229,580,000.00 0.24% 0.12%
company's subsidiaries
Due to the company's new
Long-term loan 1,555,300,000.00 1.51% 55,300,000.00 0.06% 1.46%
special loan this year
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
2. Assets and liabilities measured by fair value
√ Applicable □ Not applicable
In RMB Yuan
Amount
Profit and loss from Accumulated fair Impairment Amount purchased
Amount at year sold in the Amount at year
changes in fair value value changes provisions in the in the current
Item beginning current end
in the current period included in equity reporting period period
period
Financial assets
Transactional
financial 2,419,476,200.00 1,753,674,697.00 4,173,150,897.00
assets
Equity
instrument 734,506,100.00 734,506,100.00
investment
Subtotal of
financial 3,153,982,300.00 1,753,674,697.00 4,907,656,997.00
assets
Others
Total 3,153,982,300.00 1,753,674,697.00 4,907,656,997.00
Financial
- - - - - -
liabilities
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 505,302,056.19 Mainly acceptance bond
Notes receivable 6,153,373,909.00 Pledge for issuing bills payable
Intangible assets 17,870,990.16 Bank mortgage
Fixed assets 23,577,247.06 Collateral to obtain working capital
Total 6,700,124,202.41
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
V. Analysis of Investment
1. General information
√ Applicable □ Not applicable
External investment
Investment Amount in the
Investment Amount in the same period of last year(Yuan) Variance rate
report period(Yuan)
2,290,000,000 1,800,000,000 27.22%
Particulars of investees
Proportion in the
Company Name Principal business
investees’ equity (%
Licensed items: technology import and export; import and export agency;
import and export of goods (items that are subject to approval in accordance
with the law can only be carried out after the approval of the relevant
departments, and the specific business items are subject to the approval
results)
General projects: technical services, technology development, technical
consultation, technical exchanges, technology transfer, technology
promotion; industrial design services; software development; industrial
automatic control system device manufacturing; industrial automatic control
Zhongqi Chuangzhi system device sales; mechanical parts and components sales; electric power
3.125%
Technology Co., Ltd. Sales of electronic components; sales of electronic products; research and
development of auto parts; retail of auto parts; wholesale of auto parts; sales
of new energy vehicle production and testing equipment; sales of new energy
vehicles; motor vehicle modification services; integrated circuit
manufacturing; electronic components Device manufacturing; engineering
and technical research and experimental development; electrical signal
equipment manufacturing; sales of new catalytic materials and additives;
research and development of electronic special materials; battery sales;
battery manufacturing (except for items subject to approval according to law,
independent of business license Carry out business activities)
Licensed items: car rental, technology import and export, import and export
of goods (items that are subject to approval in accordance with the law can
only be carried out after the approval of the relevant departments, and the
specific business projects are subject to the approval documents or licenses of
Chongqing Changan
the relevant departments)
Kaicheng Automobile 83.64%
General items: new automobile sales, automobile parts wholesale, automobile
Technology Co., Ltd.
parts and accessories manufacturing, new energy automobile sales, new
energy automobile electrical accessories sales, automobile parts research and
development, technical services, technical development, technical
consultation, technical exchanges, Technology transfer, technology
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
promotion, engineering and technology research and experimental
development, software development, information consulting services (not
including licensing information consulting services), mold manufacturing,
mold sales, domestic cargo transportation agency, energy saving management
services, energy recovery system research and development, New energy
prime mover equipment manufacturing, emerging energy technology research
and development, Internet sales (except for the sale of commodities that
require licenses), old automobile sales, automobile spare parts retail, motor
vehicle repair and maintenance (except for items subject to legal approval,
business operations License to carry out business activities independently
according to law)
Note: The above are investment projects approved by the board of directors during the reporting period. For specific information,
please refer to the "Announcement on Related Party Transactions of T3 Technology Platform Companies" (Announcement Number:
2020-06) and "Announcement on Resolutions of the First Meeting of the Eighth Board of Directors" (Announcement Number:
2020-56).
2. Major equity investment in the reporting period
□ Applicable √ Not applicable
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
Number of Percentage Percentage
Number of Book value at
Securiti Securities Initial shares held at of shares of shares Reporting period
Securities shares held at the end of the Accounting Source of
es short investment cost the beginning held at the held at the profit and loss
code the end of the period account shares
variety name （Yuan） of the period beginning of end of the （Yuan）
period（Share） （Yuan）
（Share） the period period
Southwest Transactional Initial
Stock 600369 50,000,000 35,500,000 0.63% 35,500,000 0.63% 162,945,000 -18,459,709.66
Securities financial assets investment
Transactional Initial
Stock 300750 CATL 1,000,000,821 22,999,575 1.06% 22,999,575 1.04% 4,010,205,897 1,780,037,549.74
financial assets investment
Total 1,050,000,821 58,499,575 -- 58,499,575 -- 4,173,150,897 1,761,577,840.08 -- --
(2) Derivative Investments
□ Applicable √ Not applicable
18
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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
On December 3, 2019, Chongqing Changan New Energy Vehicle Technology Co., Ltd. (hereinafter referred to as "new energy
technology company"), a wholly-owned subsidiary of Changan Automobile, introduced four strategic investors. After the capital
increase is completed, the company's share of the new energy technology company's equity has dropped from 100% to 48.9546%,
losing control of the new energy technology company. For details, please refer to the “Announcement on the Public Investment
Increase of the Wholly-owned Subsidiary Subsidiary Company and the Company’s Abandonment of Priority Subscription of Capital
Contributions to Capital Increase and Capital Increase” ( Announcement number: 2019-67). On January 13, 2020, the matter was
reviewed and approved by the first extraordinary general meeting of shareholders in 2020 (Announcement No. 2020-04). On January
20, 2020, new energy technology company completed the industrial and commercial change registration. For details, please refer to
the "Announcement on the Progress of the Wholly-owned Subsidiary Subsidiary's Capital Increase by Public Listing and the
Company's Abandonment of Capital Increase and Share Priority Subscription of Investment Rights" (Announcement Number :
2020-04).
On December 30, 2019, Changan Automobile and Shenzhen Qianhai Ruizhi Investment Co., Ltd. (hereinafter referred to as
"Qianhai Ruizhi") signed the "Equity Transfer Agreement" and transferred all the 50% equity of Changan PSA to Qianhai Ruizhi. For
details, please refer to the "Announcement on the Sale of Equity Interests in Joint Ventures" (Announcement No. 2020-02). On
January 13, 2020, the matter was reviewed and approved by the first extraordinary general meeting of shareholders in 2020
(Announcement No. 2020-04). On May 21, 2020, the company completed the industrial and commercial change registration. For
details, please refer to the "Announcement on the Progress of the Sale of Equity in Joint Ventures" (Announcement Number:
2020-42).
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
Zhenjiang Demao Hairun Equity Engaged in non-securities
150,001 100% 401,021 0 151,379
Investment Fund Partnership (Limited equity investment activities and
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Partnership) related consulting business
Changan Mazda Automobile Co. Ltd 11,097USD 50% Produce and sell auto and parts 1,257,352 694,057 65,911
Changan Ford Automobile Co., Ltd 24,100USD 50% Produce and sell auto and parts 4,721,117 1,650,111 -114,048
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a wholly-owned subsidiary, Chongqing Changan Automobile
Software Technology Co., Ltd., and acquired Changan Weilai New Energy Automobile Technology Co., Ltd., and the two companies
were included in the scope of the consolidated statement. Chongqing Changan New Energy Automobile Technology Co., Ltd.
introduced strategic investors. The company lost control and its shareholding ratio was reduced to 48.96%. It was no longer included
in the scope of consolidation, and subsequent measurement was carried out according to the equity method.
Acquisition and disposal of subsidiaries On the overall production and operation
Name
during the reporting period and performance impact
Chongqing Changan Automobile Software
Newly established No major influence
Technology Co., Ltd.
Changan Weilai New Energy Automobile Business combination not under
No major influence
Technology Co., Ltd. common control
Chongqing Changan New Energy Automobile
Dilution of equity and loss of control Major influence
Technology Co., Ltd.
VIII. Structural main business under the company control
□ Applicable √ Not applicable
IX. Forecast for the operating performance of Jan.-Sep. 2020
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
The overseas epidemic situation continues to spread with the emergence of the long tail effect, and the epidemic is still difficult
to control effectively before the vaccine is released on a large scale. It is expected that by the middle of next year, the prevention and
control of the epidemic situation in major global economies and economic repair will become normal, economic growth is still
struggling to return to normal levels before the outbreak. Combined with the intensification of international trade disputes, the
China's exports and imports will be faced with a significant negative impact. The global economy will shrink by more than 5% this
year, according to projections by the IMF and other international groups, and China's economy will grow only modestly. At present,
with the economy facing downward pressure and increasing uncertainties in the external environment, residents' consumer
confidence is obviously insufficient, while the short-term demand for automobiles, as an optional consumption, is obviously
restrained. The decline in the auto market led to the company's current operating pressure.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Countermeasures: On the one hand, the company will continue to increase market expansion efforts, reduce the impact of
external factors to the minimum, maintain the basic stability of business scale, on the other hand, strengthen the sense of hardship,
continue to carry out internal potential, improve quality, reduce costs, increase efficiency, improve the quality and efficiency of
business operations to ensure the achievement of strategic objectives.
XI. Interviews and visits in the reporting period
√ Applicable □ Not applicable
Date Manner Object Content discussed and material offered
For details, see the January 16, 2020 Shenzhen stock exchange interactive
2020.01.14 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 14, 2020 investor
relations activities record sheet
For details, see the January 21, 2020 Shenzhen stock exchange interactive
2020.01.21 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 21, 2020 investor
relations activities record sheet
For details, see the May 6, 2020 Shenzhen stock exchange interactive
"PanoramaRoadsh
2020.04.30 All investors (http://irm.cninfo.com.cn) on the Changan Automobile: April 30, 2020 investor
ow World" Webcast
relations activities record sheet
For details, see the May 9, 2020 Shenzhen stock exchange interactive
2020.05.07 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 7, 2020 investor
relations activities record sheet
For details, see the May 9, 2020 Shenzhen stock exchange interactive
2020.05.08 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 8, 2020 investor
relations activities record sheet
For details, see the May 14, 2020 Shenzhen stock exchange interactive
2020.05.12 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor
relations activities record sheet(1)
For details, see the May 14, 2020 Shenzhen stock exchange interactive
2020.05.12 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor
relations activities record sheet(2)
For details, see the June 28, 2020 Shenzhen stock exchange interactive
2020.06.24 On-Site Survey Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 24, 2020 investor
relations activities record sheet
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Chongqing Changan Automobile Company Limited 2020 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 Session Type participatio Holding Date Disclosure Date Disclosure Index
n ratio
2020 The First http//www.cninfo.com.cn
Interim 2020 The First Interim Shareholders Meeting
Interim 44.572% January 13, 2020 January 14, 2020
Shareholders Resolution Announcement(Announcement Number:
Meeting 2020-04)
2019 Annual http//www.cninfo.com.cn
Shareholders Annual 59.488% May 22, 2020 May 23, 2020 2019 Annual Shareholders Meeting Resolution
Meeting Announcement(Announcement Number: 2020-44)
2020 The http//www.cninfo.com.cn
Second Interim 2020 The Second Interim Shareholders Meeting
Interim 46.695% June 22, 2020 June 23, 2020
Shareholders Resolution Announcement(Announcement Number:
Meeting 2020-55)
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
The company plans not to distribute cash dividends, not to send bonus shares, not to increase equity by provident fund in the first half
of the year.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
III. Commitments finished in implementation by the Company, shareholders, actual
controller,acquirer, directors, supervisors, senior executives or other related parties in
the reporting period and commitments unfinished in implementation at the end of the
reporting period
□ Applicable √ Non-applicable
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
VII. Bankruptcy restructuring related matters
□ Applicable √ Not-applicable
During the report period, no matters related to bankruptcy restructuring occur.
VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
During the report period, the company has no crucial litigation or arbitration events.
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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
XI. Company equity incentive plan, the implementation of the employee stock ownership plan
or other staff incentives.
√ Applicable □ Not-applicable
On April 28, 2020, the 65th meeting of the seventh board of directors of Chongqing Changan Automobile Co., Ltd. deliberated
and approved the "Proposal on Cancellation of Certain Stock Options of the Company", and planned to cancel 8.81 million stock
options. For details, please refer to "Announcement on the Cancellation of Part of the Company’s Stock Options" (Announcement
Number: 2020-31) disclosed by the company on April 30. On June 4, 2020, the company disclosed the "Announcement on
Completion of Cancellation of Stock Options" (Announcement Number: 2020-46). According to relevant regulations, the company
has completed the cancellation of stock options in China Securities Depository and Clearing Co., Ltd. Shenzhen Branch.
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
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
3. Related transactions of common investment
√ Applicable □ Not-applicable
On January 17, 2020, Changan Automobile signed an agreement with China First Automobile Co., Ltd., Dongfeng Motor Group
Co., Ltd., China North Industries Group Co., Ltd., and Nanjing Jiangning Economic Development Technology Development Co., Ltd.
to jointly initiate the establishment of China Automobile Chuangzhi Technology Co., Ltd., with a registered capital of 16 billion yuan,
of which Changan Automobile invested 500 million yuan, holding 3.125% of the shares. For details, please refer to the
"Announcement on Related Party Transactions of T3 Technology Platform Companies" (Announcement No.: 2020-06).
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
24
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Temporary
Name of temporary announcements Temporary announcement site name
announcement date
Announcement on related party transactions regarding the
April 28, 2020 http://www.cninfo.com.cn
subscription of non-publicly issued A shares by related parties
Announcement about increasing estimated amount of 2020 daily
April 30, 2020 http://www.cninfo.com.cn
related transaction
Announcement on related party transactions concerning the
June 23, 2020 http://www.cninfo.com.cn
extension of entrusted loans to Jiangling Holdings for one year
XIII. The non-operating occupation for the capital by the controlling shareholder of the listed
company and its related parties
□ Applicable √ Not-applicable
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.
25
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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
Basic status
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. Wastewater mainly comes from pre-treatment wastewater,
paint spray wastewater and oily wastewater from engine manufacturing machines. The wastewater is discharged to the urban sewage
pipe network after physical and biochemical treatment at the wastewater treatment station of each production base, and discharged to
the standard after being treated by the urban sewage treatment plant. The exhaust gas is mainly paint spraying waste gas and oven
waste gas. The paint spraying waste gas is concentrated by adsorption and incineration, and the waste gas from the oven is discharged
after incineration. Sulfur dioxide and nitrogen oxides mainly come from the exhaust gas from the combustion of clean energy natural
gas, and they are all discharged in an organized manner. The company's headquarters and branch companies have a sound
environmental management system, all of which have passed tripartite audits and obtained environmental management system
certification.
Pollution discharge information
During the reporting period, there were 412 pollutant outlets and 17 water pollutant outlets. The emission standards were strictly
implemented according to the national sewage comprehensive discharge standard, the water pollutant discharge standard in Beijing,
the national standard for the comprehensive emission of air pollutants, the standard for the emission of air pollutants on the surface of
automobile manufacturing in Chongqing, the standard for the comprehensive emission of air pollutants, and the vehicle
Manufacturing industry (painting process) air pollutant emission standard in Beijing, national industrial enterprise boundary
environmental noise emission standard and so on. The total emission of major pollutants: 641.11 tons of chemical oxygen, 58.33 tons
of ammonia nitrogen, 26.98 tons of sulfur dioxide, 163.45 tons of nitrogen oxides and quantitative volatile organic compounds
2245.02 tons. All the pollutants in the company are discharged, and there is no excess total emission.
Solid wastes are separately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag,
phosphated residue and 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. During the reporting period, we entrusted the
disposal of 3,500 tons of hazardous waste and the use of 42,300 tons of general industrial solid waste.
Construction and operation of pollution prevention facilities
During the reporting period, the main waste gas prevention and control facilities include foundry dust removal and
deodorization facilities in engine factories, welding dust removal facilities in vehicle factories and treatment facilities for coating
volatile organic waste gas; together with wastewater treatment facilities, they are included in preventive maintenance management of
equipment, with account books, operation instructions, preventive maintenance rules, preventive maintenance plans and
26
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
implementation records, and equipment inspection, dosing, slag removal, filter bag replacement, etc. The facilities are running
normally. The key pollutant discharge units are all equipped with automatic wastewater monitoring facilities and entrusted the
tripartite company to operate and maintain the facilities.
Administrative licensing of environmental impact assessment and other environmental protection for construction projects
In accordance with the "Environmental Impact Assessment Law of the People's Republic of China", "Construction Project
Environmental Protection Management Regulations", "Chongqing Municipal Environmental Protection Regulations", "Interim
Measures for Environmental Protection Acceptance of Construction Projects" and other laws and regulations, the company develops
environmental impacts of new, renovated and expanded projects Evaluation and completion of environmental protection acceptance
work, strictly implement the environmental impact assessment system and the "three simultaneous" system.
During the reporting period, we have obtained the solid waste acceptance approval of the global R&D center project and the
NE1 phase I project, and completed the environmental protection acceptance of the construction project.
Emergency preparedness and exercise of emergency environmental events
Continue to carry out environmental protection emergency drills to improve the emergency response capabilities of
environmental emergencies. During the reporting period, all bases had environmental risk assessment reports and emergency
response plans for environmental emergencies. The Mould Division, General Automobile Research Institute and Power Research
Institute of Chongqing headquarters are revising emergency plans for environmental emergencies. All bases formulate emergency
drill plans in accordance with the requirements of laws and regulations, and carry out emergency drills according to the plan to
continuously improve the practicability of emergency plans and the emergency response capabilities of employees. During the
reporting period, no environmental emergencies occurred.
Programming and implementation of self-monitoring of the environment
During the reporting period, Changan Automobile’s key pollutants were: Liangjiang Plant, Jiangbei Engine Factory, Yubei
Factory, Beijing Changan, Hefei Changan. All the key sewage made self-monitoring schemes, and self-monitoring has been carried
out, and information disclosure has been carried out according to the requirements of the local ecological environment department.
Others
During the reporting period, Liangjiang Factory, Jiangbei Engine Factory, Yubei Factory, and Mould Division carried out the
2019 environmental credit evaluation work in accordance with the requirements of the local ecological environment authority.
2. Fulfill social responsibility of targeted poverty alleviation
√ Applicable □ Not applicable
The year 2020 will be a decisive year in the fight against poverty. By implementing General Secretary Xi Jinping's important
statement on poverty alleviation, the Company will fulfill its political responsibility in the fight against poverty in accordance with
the decisions and plans of the CPC Central Committee, the State Council and the overall arrangements of the group companies. The
Company will continue to pursue the basic strategy of precision poverty reduction and eradication, and make overall progress in
poverty alleviation and reduction so as to make new and greater contributions to building the well-off society in all respects and
achieving the first centenary goal.
（1）Targeted poverty alleviation in 2020
4.5 million RMB donated to Luxi County for poverty alleviation
On the Education Poverty Alleviation Project: Firstly, invest 1.5 million funds to improve the facilities of Zhuma primary school
in Xiangyang Township, Luxi County. The construction content: Teaching building, school road hardening, basketball court, etc.
Secondly, a new type of vocational skills training program for rural farmers in Luxi County with 500,000 funds invested to provide
skills training to 100 farmers with the intention and ability to find employment (no less than 50 poor households with file-sharing
cards), and the training content includes welder, electrician skills-based. Through the “one helps each other” approach to training,
27
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
they could master a skill, and increase income through the transfer of labor.
On Health and poverty alleviation projects: the Company supported the allocation project of negative-pressure ambulances in
Luxi County with a total investment of 390,000 yuan. According to relevant procurement requirements, the Company centralized the
procurement of two negative-pressure ambulances. The vehicles will be used by the Luxi County People's Hospital and the Luxi
County Hospital of traditional Chinese medicine. Through the deployment of negative pressure ambulance, the prevention and
treatment capacity of infectious disease in Luxi County improved, and the emergency response capacity of the infectious disease
enhanced.
On the people's livelihood poverty alleviation project: Firstly, the Luxi County Fund for Dynamic Monitoring the prevention
and control of poverty with 1.51 million yuan. The fund is mainly used for poverty-stricken households, marginal households,
monitoring households and other disadvantaged groups. The implementation of the project will consolidate Luxi County's
achievements in poverty alleviation, improve the quality of poverty alleviation, and prevent the returning to poverty and the
emergence of new poor people. Secondly, the Company invested 600,000 in the emergency rescue vehicle configuration project in
Luxi County for the procurement of fire engines. In accordance with the relevant procurement requirements, the Company procured
four small emergency water tanker vehicles for fire fighting operations with their property rights to the Luxi County fire rescue
brigade. The implementation of the project can effectively avoid the occurrence of poverty due to disaster.
6 million RMB donated to Yanshan County for poverty alleviation
On Industrial Development and poverty alleviation projects: the Company invested 2.36 million yuan in the project for the
purchase of heat removal equipment for black-feathered chick-rearing houses in Panlong Township, and the project was organized
and implemented by the People's Government of Panlong Township. The Company adopted the cooperative development model of
"government + co-operatives + industries + posts (poor households) " , the government will help fund the project of purchasing
temperature-removing equipment for black-feathered chick-rearing in breeding cooperative in Yanshan County. A Project
Cooperation Agreement was operated and managed by the cooperative itself for a period of 60 months. The cooperative shall
voluntarily pledge the farm and its property as collateral for the venture capital of the cooperative, and shall pay 180,000 yuan of the
cooperative income every 12 months, and the cooperative income funds are mainly used for labor remuneration of public welfare
posts and public welfare undertakings, so as to consolidate the achievements of poverty eradication.
On the education and poverty alleviation projects: firstly, all the universities and primary schools in the town of AMeng carried
out school affiliated projects with an investment of 1.1 million yuan and built 200 meters of fences, 900 meters of retaining walls and
1,200 ㎡ of hardened playing fields, 90 ㎡ of new Bathroom,18 ㎡ of duty room and a gate. In this way, the county improved the
conditions of running schools so that schools can meet the requirements of compulsory education balanced development. Secondly,
the Yanshan County, the Campus Love Bathhouse Construction Project, invested 2 million for the implementation of 15 love
bathhouses (a total of 540 square meters) , and supporting solar energy and shower equipment. The implementation of the project has
met the needs of 15 rural schools, improved school conditions, and promoted the healthy growth of rural students.
On Health Poverty Alleviation Projects: the Yanshan County, Negative Pressure Ambulance Project, invested 540,000 funds to
purchase two Chang'an Ruixing M90 negative pressure ambulances. On the basis of standard configuration, the ambulances were
equipped with transshipment suction machine and defibrillator. The current lack of negative pressure ambulances in Yanshan County
is not conducive to the transfer of infectious disease cases, in particular the current epidemic of pneumonia with novel coronavirus
infection prevention and control work.
0.3 million RMB donated to Pengshui County for poverty alleviation
In accordance with the spirit of the circular of the Office of the Leading Group of the Poverty Alleviation Group of the
Chongqing Development and Reform Commission on the publication of the 2020 work for counterpart assistance to Pengshui
County (No.1 [2020] of the Chongqing Development and Reform Commission) ,the Company has invested 300,000 yuan in
Chongqing Pengshui County.
（2）Poverty alleviation through consumption in 2020
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
The Company together with People's Daily has completed the first-ever online public welfare live broadcast with the theme of
"poverty alleviation, love and innovation" in Luxi and Yanshan counties of Yunnan Province. The total number of viewers reached
34.1 million, the number of likes broke 10 million, and the consumption sales of helping the poor live broadcast amounted to
1.133493 million yuan.
Changan Automobile Statistics on Poverty Alleviation in the first half of 2020
Indicator Unit Quantity / Details
Ⅰ. Total —— ——
1.funds 10 thousand RMB 1080
2. Material 10 thousand RMB 0
Ⅱ. Subdivision —— ——
1. Industrial poverty alleviation —— 236
1) The project for the purchase of heat removal
1.1 Industrial poverty alleviation project type —— equipment for black-feathered chick-rearing
houses in Panlong Township; 236
2. Education poverty alleviation —— 510
1) School affiliated project of all universities
and primary schools in Ameng town, Yanshan
County; 110
2) Construction project of love Bath Hall in
2.1 Funding for poor students 10 thousand RMB Yanshan County; 200
3) Upgrading Project of Zhuma Primary School
in Xiangyang Township, Luxi County; 150
4) skills training project of new type
professional farmers in Luxi County; 50
3. Medical and health poverty alleviation —— 93
1) Luxi County Negative Pressure Ambulance
Project; 39
3.1 Medical and health resources invested in poverty areas 10 thousand RMB
2)Yanshan County, Negative Pressure
Ambulance Project; 54
4. Other projects - people's livelihood poverty alleviation —— 241
1) Luxi County Dynamic Monitoring
Anti-poverty Fund; 151
4.1 Amount of investment 10 thousand RMB 2) Luxi County, Yunnan Emergency Vehicle
Allocation Project; 60
3) Pengshui County; 30
（3）Follow-up precision poverty alleviation plan
According to the document "on the 2020 Jiangbei Youyang Tujia and Miao Autonomous County counterpart Assistance Work
Program Notice" (No. 2[2020] of the District counterpart Assistance Work Leading Group Office of Chongqing Municipality) , the
counterpart assistance work for Chongqing Youyang Tujia and Miao Autonomous County County will be completed by the Company.
The Company will continue to help the poor through consumption, disseminate the concept of "love the world", and build up the
image of the Company as an excellent enterprise.
29
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
XVI. Other important matters
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of this report.
XVII. Important matters of company subsidiaries
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of this report.
30
Chongqing Changan Automobile Company Limited 2020 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 18,900 0.00% - - - - - 18,900 0.00%
1. State-owned legal
0 0.00% - - - - - 0 0.00%
person shares
2. Senior management
18,900 0.00% - - - - - 18,900 0.00%
personnel shares
Circulated shares 4,802,629,611 100.00% - - - - - 4,802,629,611 100.00%
1. Domestic listed
3,900,643,469 81.22% - - - - - 3,900,643,469 81.22%
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
Progress of Share Repurchase
□ Applicable √ Not-applicable
Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding
□ Applicable √ Not-applicable
31
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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
□ 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
6 months after
Zhu Huarong 18,900 - - 18,900 Executive lock stocks
the retirement
Total 18,900 - - 18,900 -- --
II. Issuing and listing of securities
1. Securities issuance (excluding preferred stocks) during the reporting period
√Applicable □Not-applicable
On April 27, 2020, the company held the 64th meeting of the seventh board of directors, at which 13 proposals including the
"Proposal on the Company's Non-public Issuance of A Shares" were reviewed and approved, and the company plans to issue
non-public shares to specific targets. The total amount of raised funds does not exceed 6 billion yuan (including this figure). For
details, please refer to the relevant announcement disclosed by the company on the http://www.cninfo.com.cn on April 28, 2020. On
May 22, 2020, this matter was approved by the 2019 Annual General Meeting of Shareholders (Announcement No.: 2020-44).
2. Changes in the total number of shares of the Company and changes in the structure of the shareholders
and in the structure of the Company's assets and liabilities
√Applicable □Not-applicable
On April 18, 2020, the company disclosed the "Indicative Announcement Concerning the Gratuitous Transfer of 0.71% Equity
of the Company by the Actual Controller" (Announcement No.: 2020-18). The company’s actual controller, China South Industries
Group has signed a free transfer agreement with China Power Technology Investment Holdings Co., Ltd. (hereinafter referred to as
“China Power Technology Investment Holdings”) to transfer 34,232,588 shares of Changan Automobile for free., which accounts for
0.71% of the company’s total issued shares.
On May 29, 2020, the company disclosed the "Announcement on Obtaining the Approval of the State-owned Assets Supervision
and Administration Commission of the State Council for the Gratuitous Transfer of the Company's Equity by the Actual Controller"
(Announcement No.: 2020-45). On June 19, 2020, the company disclosed the "Announcement on the Completion of Transfer
32
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Registration for the Gratuitous Transfer of State-owned Equity of the Actual Controller" (Announcement No.: 2020-54), confirming
that the transfer and registration procedures of the above-mentioned freely transferred shares was completed, and the transfer date
was June 18, 2020.
3. Existing internal staff shares
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: one share
Number of preferred
At the end of the report period, the total number of shareholders with resumed
136,260 0
shareholders voting rights at the
period-end
Holding more than 5% of the shareholders, or top 10 shareholders situation
Percentage Increases and Pledged/ Frozen
Non-circulated Circulated
Nature of of total Shares held at decreases cases
Name of shareholders shares held at shares held at
Shareholders shares the year-end during the Share
the year-end the year-end amount
(%) report period status
China South Industries State-owned legal No pledge
20.84% 1,001,080,085 -34,232,588 - -
Group Co., Ltd. person shares or freeze
China Changan State-owned legal No pledge
19.32% 928,044,946 - - -
Automobile Co., Ltd. person shares or freeze
domestic general
China securities No pledge
legal person 4.88% 234,265,333 - - -
finance Co, Ltd or freeze
shares
Hong Kong Central foreign legal
4.05% 194,470,755 76,774,027
Settlement Co., Ltd. person shares.
United Prosperity
foreign legal No pledge
Investment Co., 3.21% 154,120,237 - - -
person shares or freeze
Limited
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 0.76% 36,547,305 -1,459,431 - -
person shares or freeze
FUND
GIC PRIVATE foreign legal No pledge
0.73% 35,283,393 - - -
LIMITED person shares or freeze
33
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
China Power
State-owned legal No pledge
Investment Holdings 0.71% 34,232,588 34,232,588 - -
person shares or freeze
Co., Ltd.
CAPE ANN GLOBAL
foreign legal No pledge
DEVELOPING 0.51% 24,423,660 2,572,535 - -
person shares or freeze
MARKETS FUND
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. 1,001,080,085 RMB ordinary shares 1,001,080,085
China Changan Automobile Co., Ltd. 928,044,946 RMB ordinary shares 928,044,946
China securities finance Co, Ltd 234,265,333 RMB ordinary shares 234,265,333
Hong Kong Central Settlement Co., Ltd. 194,470,755 RMB ordinary shares 194,470,755
Domestic listed foreign
United Prosperity Investment Co., Limited 154,120,237 154,120,237
shares
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
Domestic listed foreign
DRAGON BILLION SELECT MASTER FUND 36,547,305 36,547,305
shares
Domestic listed foreign
GIC PRIVATE LIMITED 35,283,393 35,283,393
shares
China Power Investment Holdings Co., Ltd. 34,232,588 RMB ordinary shares 34,232,588
CAPE ANN GLOBAL DEVELOPING MARKETS Domestic listed foreign
24,423,660 24,423,660
FUND 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 its
infinite tradable relationship between shareholders and wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited belong
top 10 shareholders or concerted action 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
34
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
35
Chongqing Changan Automobile Company Limited 2020 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 2019 annual report.
II. Departure and Hiring information of the directors, supervisors and senior manager
√ Available □ Not-available
Name Duties Type Date Reason
Zhu Huarong Director ,Chairman Election June 22th, 2020 Appointment due to work
Tan Xiaogang Director Election June 22th, 2020 Appointment due to work
Lv Laisheng Director Election June 22th, 2020 Appointment due to work
Zhou Zhiping Director Election June 22th, 2020 Appointment due to work
Wang Jun Director Election June 22th, 2020 Appointment due to work
Zhang Deyong Director Election June 22th, 2020 Appointment due to work
Liu Jipeng independent director Election June 22th, 2020 Appointment due to work
Li Qingwen independent director Election June 22th, 2020 Appointment due to work
Chen Quanshi independent director Election June 22th, 2020 Appointment due to work
Ren Xiaochang independent director Election June 22th, 2020 Appointment due to work
Pang Yong independent director Election June 22th, 2020 Appointment due to work
Tan Xiaosheng independent director Election June 22th, 2020 Appointment due to work
Wei Xinjiang independent director Election June 22th, 2020 Appointment due to work
Cao Xingquan independent director Election June 22th, 2020 Appointment due to work
Yan Ming Supervisory board chairman Election June 22th, 2020 Appointment due to work
Sun Dahong Supervisor Election June 22th, 2020 Appointment due to work
Zhao Jun Supervisor Election June 22th, 2020 Appointment due to work
Wang Yanhui Employee Supervisor Election June 19th, 2020 Appointment due to work
Luo Yan Employee Supervisor Election June 19th, 2020 Appointment due to work
Zhu Huarong President, Party Secretary recruitment July 13th, 2020 Appointment due to work
Deputy Secretary of the Party
Wang Jun Committee (Identified as a senior recruitment July 13th, 2020 Appointment due to work
manager)
Yuan Mingxue Executive Vice President recruitment July 13th, 2020 Appointment due to work
36
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Liu Bo Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
He Chaobing Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Li Wei Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Secretary of the Commission for
Hua Zhanbiao Discipline Inspection (identified as a recruitment July 13th, 2020 Appointment due to work
senior manager)
Tan Benhong Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Liu Zhengjun Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Zhang Deyong The chief accountant recruitment July 13th, 2020 Appointment due to work
Ye Pei Vice President recruitment July 13th, 2020 Appointment due to work
Zhao Fei Vice President recruitment July 13th, 2020 Appointment due to work
Chen Wei Vice President recruitment July 13th, 2020 Appointment due to work
Li Mingcai Vice President recruitment July 13th, 2020 Appointment due to work
Li Jun Board Sectary recruitment July 13th, 2020 Appointment due to work
Zhang Baolin Chairman Departure June 5th, 2020 Job change
Zhang Dongjun Director Departure June 22th, 2020 General election
Zhao Huixia Supervisor Departure June 22th, 2020 General election
Zhang Jingjing Deputy Vice Director Departure July 13th, 2020 General election
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
37
Chongqing Changan Automobile Company Limited 2020 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 ment
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account June 30, 2020 December 31, 2019
Current assets:
Cash 17,326,421,237.43 10,066,171,353.48
Transactional financial assets 4,173,150,897.00 2,419,476,200.00
Notes receivable 21,629,277,146.93 26,805,635,587.19
Accounts receivable 2,299,982,425.41 838,314,076.82
Prepayments 636,088,225.27 623,801,896.07
Other receivables 1,042,027,106.65 3,731,755,992.46
Inventories 4,040,392,469.99 3,375,441,488.37
Contract assets 2,055,476,727.43
Other current assets 1,100,242,219.66 1,746,120,128.04
Total current assets 54,303,058,455.77 49,606,716,722.43
Non-current assets:
Long-term receivables 12,808,010,205.56 11,008,336,989.09
Other equity investment 734,506,100.00 734,506,100.00
Investment properties 6,989,493.94 7,102,849.72
Fixed assets 25,896,056,062.39 26,939,490,554.19
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Construction in progress 1,793,015,326.03 1,729,803,028.43
Intangible assets 5,048,286,334.37 5,209,619,313.49
Devlopment expenditure 516,943,366.86 814,745,464.20
Goodwill 42,586,584.41 9,804,394.00
Long-term deferred expenses 11,768,576.59 14,327,639.90
Deferred tax assets 1,640,537,797.01 1,542,600,534.93
Total non-current assets 48,498,699,847.16 48,010,336,867.95
Total assets 102,801,758,302.93 97,617,053,590.38
Current liabilities:
Short-term loans 365,525,472.30 229,580,000.00
Notes payable 17,021,001,941.49 13,430,543,294.23
Accounts payable 18,206,448,534.41 18,905,725,271.50
Advances from customers 2,315,641,685.78
Contract liabilities 2,162,739,729.94
Payroll payable 899,656,704.69 1,046,335,781.91
Taxes payable 448,654,660.12 889,092,442.80
Other payables 3,074,351,444.31 4,809,918,141.45
Interest payables 1,167,776.43 40,384.93
Other current liabilities 4,569,806,449.83 4,253,942,761.77
Total current liabilities 46,748,184,937.09 45,880,779,379.44
Non-current liabilities:
Long-term loans 1,555,300,000.00 55,300,000.00
Long-term payable 702,461,540.35 857,356,423.71
Long term payroll payable 43,359,523.52 45,932,000.00
Estimated liabilities 3,169,800,842.14 3,352,580,839.28
Deferred earnings 3,450,963,103.29 3,194,291,079.21
Deferred tax liabilities 557,904,374.46 296,742,890.29
Total non-current liabilities 9,479,789,383.76 7,802,203,232.49
Total liabilities 56,227,974,320.85 53,682,982,611.93
Owners’ equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,366,097,594.66 5,366,097,594.66
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Other Comprehensive Income 146,761,519.56 139,994,580.19
Special reserves 78,399,497.78 47,076,242.71
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 33,873,337,962.28 31,271,171,559.60
Equity attributable to owners 46,668,569,340.78 44,028,312,743.66
Minority interests -94,785,358.70 -94,241,765.21
Total equity 46,573,783,982.08 43,934,070,978.45
Total liabilities and owener’s equity 102,801,758,302.93 97,617,053,590.38
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
Account June 30, 2020 December 31, 2019
Current assets:
Cash 13,159,786,888.55 6,563,020,335.56
Transactional financial assets 162,945,000.00 184,245,000.00
Notes receivable 20,639,888,071.96 25,837,326,483.09
Accounts receivable 5,793,044,421.21 5,094,270,365.72
Prepayments 477,501,198.01 403,105,316.24
Other receivables 2,087,736,557.44 2,597,314,344.40
Inventories 2,692,995,183.22 1,735,570,691.28
Contract assets 1,412,177,092.60
Other current assets 413,864,092.40 798,430,035.62
Total current assets 46,839,938,505.39 43,213,282,571.91
Non-current assets:
Long-term equity investments 15,927,040,641.38 16,052,319,271.82
Other equity investment 724,309,400.00 724,309,400.00
Fixed assets 19,696,145,485.76 20,301,231,002.41
Construction in progress 1,630,762,467.34 1,545,211,000.22
Intangible assets 3,851,090,092.12 4,030,438,649.57
Development expenditure 436,066,340.39 431,774,377.27
Long-term deferred expenses 7,742,327.63 9,719,259.84
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Deferred tax assets 1,401,475,134.44 1,318,884,054.48
Total non-current assets 43,674,631,889.06 44,413,887,015.61
Total assets 90,514,570,394.45 87,627,169,587.52
Current liabilities:
Short-term loans 29,580,000.00 29,580,000.00
Notes payable 15,032,991,305.12 11,983,445,725.06
Accounts payable 15,706,279,887.99 15,601,432,751.74
Advances from customers 1,870,992,349.08
Contract liabilities 1,807,709,690.50
Payroll payable 597,737,081.03 641,340,149.30
Taxes payable 307,533,461.81 453,619,905.66
Other payables 2,664,677,248.88 4,301,257,819.04
Interest payables 1,167,776.43 40,384.93
Other current liabilities 3,747,004,808.36 3,400,065,879.02
Total current liabilities 39,893,513,483.69 38,281,734,578.90
Non-current liabilities:
Long-term loans 1,555,300,000.00 55,300,000.00
Long-term payable 130,720,735.03 285,768,478.89
Long term payroll payable 20,430,629.02 22,747,000.00
Estimated liabilities 2,330,116,808.17 2,413,434,397.36
Deferred earnings 2,169,871,239.55 2,135,615,106.85
Deferred tax liabilities 78,580,341.60 81,775,341.60
Total non-current liabilities 6,285,019,753.37 4,994,640,324.70
Total liabilities 46,178,533,237.06 43,276,374,903.60
Owners' equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,014,772,792.87 5,014,772,792.87
Other comprehensive income 259,380,413.58 259,380,413.58
Special reserves 21,702,787.13 19,917,658.63
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 31,836,208,397.31 31,852,751,052.34
Total owners' equity 44,336,037,157.39 44,350,794,683.92
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Total liabilities and owners’ equity 90,514,570,394.45 87,627,169,587.52
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Total operating revenue 32,781,657,479.10 29,875,780,096.84
Less:Operating cost 29,734,615,697.63 27,419,410,626.92
Tax and surcharges 1,206,286,383.45 1,080,270,474.78
Operating expenses 1,270,717,082.07 1,443,216,541.30
General and administrative expenses 1,164,152,772.91 843,160,552.62
Research and development expenses 1,464,554,423.42 1,720,159,658.88
Financial expenses -98,053,545.38 -96,832,709.15
Interest expense 20,373,153.36 28,216,059.24
Interest income 131,048,028.86 128,484,820.10
Add: Other income 215,977,955.28 620,733,074.11
Investment income 3,000,803,663.99 -108,336,709.94
Including: Investment income from associates and joint
-528,282,156.89 -108,336,709.94
venture
Gains from changes in fair value 1,753,674,697.00 40,337,151.27
Credit impairment loss -23,300,119.01 -9,529,733.66
Asset impairment loss -208,242,617.71 -152,676,538.06
Gain on disposal of assets 33,428,646.97 9,392,459.28
3.Operating profit 2,811,726,891.52 -2,133,685,345.51
Add: Non-operating income 31,178,860.44 18,836,680.44
Less: Non-operating expenses 51,351,646.13 12,645,067.20
4.Total profit 2,791,554,105.83 -2,127,493,732.27
Less: Income tax expense 189,931,296.64 116,567,696.08
5.Net profit 2,601,622,809.19 -2,244,061,428.35
Classification by going concern
Net profit from continuing operations 2,601,622,809.19 -2,244,061,428.35
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 2,602,166,402.68 -2,240,039,761.11
Minority interests -543,593.49 -4,021,667.24
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
6.Other comprehensive income, net of tax 6,766,939.37 22,567,848.13
Net after-tax net of other comprehensive income
6,766,939.37 22,567,848.13
attributable to the parent company owner
Other comprehensive income that will be reclassified
6,766,939.37 22,567,848.13
into profit or loss
Foreign currency financial statement translation
6,766,939.37 22,567,848.13
difference
7.Total comprehensive income 2,608,389,748.56 -2,221,493,580.22
Total comprehensive income attributable to owners 2,608,933,342.05 -2,217,471,912.98
Total comprehensive income attributable to minority
-543,593.49 -4,021,667.24
interest
8.Earnings per share
Basic earnings per share 0.54 -0.47
Diluted earnings per share Not applicable Not applicable
4. Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 29,758,919,897.37 26,805,108,322.22
Less: Operating cost 27,911,858,903.03 24,637,906,770.95
Tax and surcharges 762,021,502.79 855,166,897.03
Operating expenses 961,039,656.72 902,216,576.48
General and administrative expenses 726,483,524.17 307,874,508.68
Research and development expenses 1,380,814,145.22 1,710,222,941.73
Financial expenses -97,970,764.79 -88,753,361.46
Interest expense 4,888,747.72 14,997,114.41
Interest income 110,304,548.86 109,584,194.58
Add: Other income 57,884,810.14 406,839,978.09
Investment income 2,317,139,772.66 -73,898,822.33
Including: Investment income from associates and joint
-430,245,711.08 -78,048,193.41
venture
Gains from changes in fair value -21,300,000.00 51,830,000.00
Credit impairment loss -21,114,561.28 -4,381,254.25
Asset impairment loss -162,746,163.89 -141,818,001.51
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Gain on disposal of assets -10,976,304.75 6,747,426.61
2.Operating profit 273,560,483.11 -1,274,206,684.58
Add: Non-operating income 22,925,521.70 14,232,341.29
Less: Non-operating expenses 43,916,807.17 8,718,726.38
3.Total profit 252,569,197.64 -1,268,693,069.67
Less: Income tax expense -85,786,079.95 99,788,296.30
4.Net profit 338,355,277.59 -1,368,481,365.97
Net profit from continuing operations 338,355,277.59 -1,368,481,365.97
Net profit from discontinued operations
5.Other comprehensive income, net of tax
6.Total comprehensive income 338,355,277.59 -1,368,481,365.97
7.Earnings per share
Basic earnings per share 0.07 -0.28
Diluted earnings per share 不适用 不适用
5. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 39,547,166,284.75 37,501,789,702.13
Refunds of taxes 212,875,606.35 305,232,064.00
Cash received relating to other operating activities 1,460,594,720.28 3,464,749,370.24
Subtotal of cash inflows 41,220,636,611.38 41,271,771,136.37
Cash paid for goods and services 26,823,061,336.77 29,029,097,098.22
Cash paid to and on behalf of employees 2,602,751,432.93 2,984,764,831.32
Cash paid for all types of taxes 1,774,453,965.05 1,743,016,544.47
Cash paid relating to other operating activities 3,107,783,183.03 3,294,629,031.41
Subtotal of cash outflows 34,308,049,917.78 37,051,507,505.42
Net cash flows from operating activities 6,912,586,693.60 4,220,263,630.95
2.Cashflows from investing activities:
Cash received from investment income 52,200,268.08
Net cash received from disposal of fixed assets, intangible assets 50,925,772.51 5,214,056.34
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
and other long-term assets
Cash received relating to other investing activities 2,401,804.55 1,478,695.29
Subtotal of cash inflows 105,527,845.14 6,692,751.63
Cash paid for acquisition of fixed assets, intangible assets and
1,240,508,778.71 2,438,475,206.69
other long-term assets
Cash paid for acquisition of investments 13,494,996.00 936,788,517.00
Cash paid relating to other investing activities 104,231,229.20 315,938,190.60
Subtotal of cash outflows 1,358,235,003.91 3,691,201,914.29
Net cash flows from investing activities -1,252,707,158.77 -3,684,509,162.66
3.Cash flows from financing activities:
Absorb cash received from investment
Cash received relating to other financing activities 1,661,945,472.30 41,000,000.00
Cash received relating to other financing activities 330,073,299.87 37,159,887.74
Subtotal of cash inflows 1,992,018,772.17 78,159,887.74
Cash repayments of borrowings 26,000,000.00 27,708,100.00
Cash paid for distribution of dividends or profits and interest
14,711,837.52 23,367,744.44
expenses
Cash paid relating to other financing activities 141,928,386.47 92,571,987.62
Subtotal of cash outflows 182,640,223.99 143,647,832.06
Net cash flows from financing activities 1,809,378,548.18 -65,487,944.32
4.Effect of changes in exchange rate on cash -8,613,576.66 29,186,874.52
5.Net increase in cash and cash equivalents 7,460,644,506.35 499,453,398.49
Add: Opening balance of cash and cash equivalents 9,360,474,674.89 9,648,153,614.80
6.Closing balance of cash and cash equivalents 16,821,119,181.24 10,147,607,013.29
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 35,373,943,984.62 34,665,878,858.45
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Cash received relating to other operating activities 307,884,774.24 2,199,853,209.77
Subtotal of cash inflows 35,681,828,758.86 36,865,732,068.22
Cash paid for goods and services 24,853,008,533.51 26,688,730,896.99
Cash paid to and on behalf of employees 1,869,061,222.17 2,093,118,245.08
Cash paid for all types of taxes 745,408,673.77 1,228,855,624.27
Cash paid relating to other operating activities 1,991,778,401.18 3,878,425,262.91
Subtotal of cash outflows 29,459,256,830.63 33,889,130,029.25
Net cash flows from operating activities 6,222,571,928.23 2,976,602,038.97
2.Cashflows from investing activities:
Cash received from return on investments 56,622,717.45 4,398,333.33
Net cash received from disposal of fixed assets, intangible assets
93,034.76
and other long-term assets
Subtotal of cash inflows 56,715,752.21 4,398,333.33
Cash paid for acquisition of fixed assets, intangible assets and
992,736,013.34 2,281,259,200.99
other long-term assets
Cash paid for acquisition of investments 186,108,581.00 997,294,972.55
Cash paid relating to other investing activities 300,000,000.00
Subtotal of cash outflows 1,178,844,594.34 3,578,554,173.54
Net cash flows from investing activities -1,122,128,842.13 -3,574,155,840.21
3.Cash flows from financing activities:
Cash received from borrowings 1,500,000,000.00
Subtotal of cash inflows 1,500,000,000.00
Cash paid for distribution of dividends or profits and interest
3,676,533.11 14,997,114.41
expenses
Subtotal of cash outflows 3,676,533.11 14,997,114.41
Net cash flows from financing activities 1,496,323,466.89 -14,997,114.41
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents 6,596,766,552.99 -612,550,915.65
Add: Opening balance of cash and cash equivalents 6,563,020,335.56 7,310,973,018.99
6.Closing balance of cash and cash equivalents 13,159,786,888.55 6,698,422,103.34
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Chongqing Changan Automobile Company Limited 2020 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 5,366,097,594.66 47,076,242.712,401,324,255.50 31,271,171,559.60 139,994,580.19 -94,241,765.21 43,934,070,978.45
II. At beginning of year 4,802,648,511.00 5,366,097,594.66 47,076,242.712,401,324,255.50 31,271,171,559.60 139,994,580.19 -94,241,765.21 43,934,070,978.45
III. Changes during the year 31,323,255.07 2,602,166,402.68 6,766,939.37 -543,593.49 2,639,713,003.63
1.Total comprehensive
2,602,166,402.68 6,766,939.37 -543,593.49 2,608,389,748.56
income
2. Capital contributed by
owners and capital decreases
3. Distribution of profit
Distribution to owners
4. Special reserves 31,323,255.07 31,323,255.07
(1) Pick-up in current
58,125,436.05 58,125,436.05
period
(2) Used in current period -26,802,180.98 -26,802,180.98
IV. At end of current period 4,802,648,511.00 5,366,097,594.66 78,399,497.78 2,401,324,255.50 33,873,337,962.28 146,761,519.56 -94,785,358.70 46,573,783,982.08
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Chongqing Changan Automobile Company Limited 2020 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 5,057,242,440.17 41,222,369.10 2,401,324,255.50 33,707,011,170.31 235,509,930.44 -92,036,723.19 46,152,921,953.33
II. At beginning of year 4,802,648,511.00 5,057,242,440.17 - 41,222,369.10 2,401,324,255.50 33,707,011,170.31 235,509,930.44 -92,036,723.19 46,152,921,953.33
III. Changes during the year - - - 31,431,730.08 - -2,326,487,434.31 22,567,848.13 -4,021,667.24 -2,276,509,523.34
1.Total comprehensive
-2,240,039,761.11 22,567,848.13 -4,021,667.24 -2,221,493,580.22
income
2. Capital contributed by
-
owners and capital decreases
3. Distribution of profit -86,447,673.20 -86,447,673.20
Distribution to owners -86,447,673.20 -86,447,673.20
4. Special reserves 31,431,730.08 31,431,730.08
(1) Pick-up in current
36,229,412.78 36,229,412.78
period
(2) Used in current period -4,797,682.70 -4,797,682.70
IV. At end of current period 4,802,648,511.00 5,057,242,440.17 - 72,654,099.18 2,401,324,255.50 - 31,380,523,736.00 258,077,778.57 -96,058,390.43 43,876,412,429.99
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Chongqing Changan Automobile Company Limited 2020 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 Retained earnings comprehensive Total equity
reserves
shares income
I. At end of last year 4,802,648,511.00 5,014,772,792.87 19,917,658.63 2,401,324,255.50 31,852,751,052.34 259,380,413.58 44,350,794,683.92
Add: others -354,897,932.62 -354,897,932.62
II. At beginning of year 4,802,648,511.00 5,014,772,792.87 19,917,658.63 2,401,324,255.50 31,497,853,119.72 259,380,413.58 43,995,896,751.30
III. Changes during the year 1,785,128.50 338,355,277.59 340,140,406.09
1.Total comprehensive income 338,355,277.59 338,355,277.59
2. Capital contributed by owners and
capital decreases
The amount of shares paid into the owner's
equity
3. Distribution of profit
Distribution to owners
4. Special reserves 1,785,128.50 1,785,128.50
(1) Pick-up in current period 23,380,155.36 23,380,155.36
(2) Used in current period -21,595,026.86 -21,595,026.86
IV. At end of current period 4,802,648,511.00 5,014,772,792.87 21,702,787.13 2,401,324,255.50 31,836,208,397.31 259,380,413.58 44,336,037,157.39
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Prior period
In RMB Yuan
Prior period
Less: Other
Items Special
Share capital Capital reserves Treasury Surplus reserves Retained earnings comprehensive Total equity
reserves
shares income
I. At end of last year 4,802,648,511.00 4,705,917,638.38 19,835,367.61 2,401,324,255.50 34,682,279,143.32 149,525,803.58 46,761,530,719.39
II. At beginning of year 4,802,648,511.00 4,705,917,638.38 - 19,835,367.61 2,401,324,255.50 34,682,279,143.32 149,525,803.58 46,761,530,719.39
III. Changes during the year - - - 6,116,128.10 - -1,454,929,039.17 - -1,448,812,911.07
1.Total comprehensive income -1,368,481,365.97 - -1,368,481,365.97
2. Capital contributed by owners and -
capital decreases
The amount of shares paid into the owner's
equity
3. Distribution of profit -86,447,673.20 -86,447,673.20
Distribution to owners -86,447,673.20 -86,447,673.20
4. Special reserves 6,116,128.10 6,116,128.10
(1) Pick-up in current period 23,037,668.82 23,037,668.82
(2) Used in current period -16,921,540.72 -16,921,540.72
IV. At end of current period 4,802,648,511.00 4,705,917,638.38 - 25,951,495.71 2,401,324,255.50 33,227,350,104.15 149,525,803.58 45,312,717,808.32
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
III. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) is a company limited by shares
registered in Chongqing, People’s Republic of China. It was establish on 31 October 1996 with an indefinite business period. The
ordinary A shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the
Shenzhen Stock Exchange. Changan Group is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,
2020, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “China
Changan”) and its wholly-owned subsidiary Zhonghui Futong (Hong Kong) Investment Company Limited held a total of ordinary
shares of the company 1,082,165,183 shares with an equity ratio of 22.53%. China South Industries Group Co., Ltd. (hereinafter
referred to as “China South Group”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries
International Holdings (Hong Kong) Company Limited, hold 1,003,625,399 ordinary shares of the company, with a 20.90%
shareholding ratio. China Changan and W China South Group holds ordinary shares 2,085,790,582 in total with a shareholding ratio
of 43.43%.
The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and sales
of automobiles (including cars), automobile engine products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and China South Group respectively.
The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of this
year, please refer to Note VIII.
IV. BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for Business 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 presented 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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies and
accounting estimates, mainly reflected in provision of accounts receivables (note 5 (9)), inventory valuation (Note 5 (10)),
depreciation of fixed assets, intangible assets amortization (Note 5 (15) (18)), condition of capitalization of research and development
expense (Note 5 (18)) and revenue recognition and measurement (Note 5 (24)).
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 30 June 2020 and the financial results
and the cash flows for the half year 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
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 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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
Goodwill is initially recognised and measured at cost, being the excess of the aggregate of the fair value of the consideration
transferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the
acquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition, goodwill is
measured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or
the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower
than the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fair
value of the acquiree’s identifiable assets, liabilities and contingent liabilities and the fair value of the consideration transferred (or
the fair value of the equity securities issued), together with the fair value of the Group’s previously held equity interest in the
acquiree. If after that reassessment, the aggregate of the fair value of the consideration transferred (or the fair value of the equity
securities issued) and the Group’s previously held equity interest in the acquiree is still lower than the Group’s interest in the fair
value of the acquiree’s net identifiable assets, the Group recognise the remaining difference in profit or loss.
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the Company and all of its subsidiaries,
is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemed
separate entity, or a structured entity controlled by the Company).
In the preparation of the consolidated financial statements, 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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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 it 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.
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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized (i.e., removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumed an obligation to pay the 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 financial asset, or (b) has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a
new liability, and the difference between the respective carrying amounts is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular way
purchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulation
or convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and
the Group’s business model for managing them: financial assets at fair value through profit or loss, financial assets at amortized cost
and financial assets at fair value through other comprehensive income. All affected related financial assets will be reclassified only if
the Group changes its business model for managing financial assets.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale of
goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical
expedient of not adjusting the effect of a significant financing component due within one year, are initially measured at the
transaction price.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss, and
transaction costs relating to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within a
business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are
recognized in profit or loss when the asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. Interest income is recognized using the effective interest method. The interest income, impairment
losses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in other
comprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycled
to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated at
fair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly
recovered as part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other
comprehensive income, and no provision for impairment is made. When the financial asset is derecognized, the accumulated gains or
losses previously included in other comprehensive income are transferred from other comprehensive income to retained earnings.
Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through other
comprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequently
measured at fair value with net changes in fair value recognized in profit or loss.
Classification and measurement of financial liabilities
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, other financial
liabilities, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. For financial liabilities at fair
value through profit or loss, relevant transaction costs are directly recognized in profit or loss, and transaction costs relating to other
financial assets 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 financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fair
value with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit or
loss are recognised in profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented in
other comprehensive income with no subsequent reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measured at amortized cost and
equity instrument investments measured at fair value and whose changes are included in other comprehensive income, and reserves
for loss are recognized.
For receivables and contract assets that do not contain significant financing components, the Group uses a simplified measurement
method to measure the loss provision vased on the expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group assesses on each balance sheet date
whether its credit risk has not increased significantly since initial recognition, it is in the first stage. The Group measures the loss
provision based on the amount equivalent to the expected credit loss in the next 12 months, and calculates the interest income based
on the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yet
suffered credit impairment, it is in the second at this stage, the Group measures the loss provision based on the amount equivalent to
the expected credit loss for the entire duration, and calculates the interest income based on the book balance and the actual interest
rate; If credit impairment occurs after initial recognition, it is in the third stage. The amount of expected credit losses is measured
over the entire duration of the loss allowance, and interest income is calculated based on amortized cost and effective interest rate.
For financial instruments with low credit risk on the balance sheet date, the Group assumes that their credit risk has not increased
significantly since initial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group has
considered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable and
other receivables based on the ageing combination.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Please refer to Note X.3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk, the definition of
credit impairment assets that have occurred, and assumptions about the expected credit loss measurement.
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets,
the Group directly writes down the book balance of the financial asset.
Offsetting of financial instruments
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 recognized amounts; and there is an intention to settle on a net basis, or to realise the assets and
settle the liabilities simultaneously.
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. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-value
consumables and spare parts.
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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
11. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations
and customer payments. The group offsets the contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to customers, and this right depends on
factors other than the passage of time.
For the determination method and accounting treatment method of the expected credit loss of the contract assets of the Group, please
refer to the notes V.9.
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable from
customers, such as the payment received before the transfer of promised goods or services.
12. Assets related to contract costs
The Group’s assets related to contract costs include contract acquisition costs and contract performance costs. According to their
liquidity, they are separately listed in inventory, other current assets and other non-current assets.
If the incremental cost incurred by the Group for obtaining the contract is expected to be recovered, it shall be recognized as an asset
as the cost of obtaining the contract, unless the asset amortization period does not exceed one year.
The cost incurred by the Group for the performance of the contract that does not apply to the scope of relevant standards such as
inventory, fixed assets or intangible assets, and meets the following conditions at the same time, is recognized as an asset as the
contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or
similar expenses), clearly borne by the customer, and other costs incurred solely due to the contract;
(2) This cost increases the company's future resources for fulfilling contract performance obligations;
(3) The cost is expected to be recovered.
The Group amortizes the assets related to the contract cost on the same basis as the income recognition related to the assets, and is
included in the current profit and loss.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
If the book value of assets related to contract costs is higher than the difference between the following two items, the Group will
make provision for impairment of the excess part and recognize it as an asset impairment loss:
(1) The remaining consideration that the enterprise is expected to obtain due to the transfer of goods or services related to the asset;
(2) Estimate the costs that will be incurred for the transfer of the relevant goods or services.
If the depreciation factors of the previous period have changed, and the difference of (1) minus (2) is higher than the book value of
the asset, the original provision for asset depreciation should be reversed and included in the current profit and loss, but reversed The
subsequent book value of the asset should not exceed the book value of the asset on the date of reversal under the assumption that no
impairment provision is made.
13. Long-term equity investments
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 measured 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 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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
14. 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.
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15. 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.
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:
Category Deprecation period Residual rate (%) Yearly deprecation 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 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.
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.
16. 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.
17. 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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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 is 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 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.
18. Intangible assets
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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
19. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
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.
20. 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:
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
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.
21. 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.
22. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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 dependents 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 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.
23. Provisions
An obligation related to a contingency shall be recognised by the Group as a provision when all of the following conditions are
satisfied, except for contingent considerations and contingent liabilities assumed in a business combination not involving entities
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
under common control:
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.
The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control are
measured at fair value upon initial recognition. After initial recognition, the balance of the amount recognized according to the
estimated liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue
recognition principle is subsequently measured at the higher of the two.
24. 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.
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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
25. Revenue generated from contracts with customers
The Group has fulfilled its performance obligations in the contract, that is, revenue is recognized when the customer obtains control
of the relevant goods or services. Obtaining control of related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.
Sales contract
Commodity sales contracts between the Group and customers are usually based on contracts, and performance obligations should
include transfer of goods, transportation services, and free maintenance. The Group generally considers the following factors and
recognizes revenue at the xx time point: the current right to receive payment for the product, the transfer of major risks and rewards
in the ownership of the product, the transfer of the legal ownership of the product, the transfer of the physical asset of the product
Transfer, the customer accepts the product.
Provide service contract
The performance obligations of the service provision contract between the Group and its customers are due to the fact that the
customers obtain and consume the economic benefits brought by the Group’s performance at the same time as the Group’s
performance, and the Group has the right to accumulate Part of the revenue from the completed performance so far, the Group
regards it as a performance obligation performed within a certain period of time, and recognizes the revenue according to the
performance progress, unless the performance progress cannot be reasonably determined. The Group determines the performance
progress of the services provided in accordance with the output method. When the performance progress cannot be reasonably
determined, if the cost incurred by the Group is expected to be compensated, the revenue shall be recognized according to the amount
of the cost incurred until the performance progress can be reasonably determined.
Variable consideration
Some of the contracts between the Group and customers have sales rebates and other arrangements that lead to changes in the agreed
amount of consideration, forming variable consideration. The Group determines the best estimate of the variable consideration based
on the expected value or the most likely amount, but the transaction price including the variable consideration does not exceed the
amount that the accumulated recognized revenue will most likely not be materially reversed when the relevant uncertainty is
eliminated Amount.
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality assurance for the products sold. For
guarantee quality assurance to ensure that the products sold meet the established standards, the Group conducts accounting treatment
in accordance with Notes XII, 29. For the service quality assurance that provides a separate service in addition to the established
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
standards to ensure that the goods sold meet the established standards, the Group regards it as a single performance obligation, based
on the stand-alone selling price of the goods and services provided. In a relative proportion, part of the transaction price is allocated
to service quality assurance, and revenue is recognized when the customer obtains control of the service. When assessing whether the
quality assurance provides a separate service in addition to ensuring that the products sold meet the established standards, the Group
considers whether the quality assurance is a legal requirement, the quality assurance period, and the nature of the group's
commitment to perform tasks.
Reward Points Program
The Group grants customers reward points when selling goods or providing services, and customers can exchange reward points for
free or discounted goods or services. The reward points program provides customers with a major right. The Group regards it as a
single performance obligation, and allocates part of the transaction price to reward points in proportion to the stand-alone selling
price of the goods or services provided and the reward points. Revenue is recognized when the points are exchanged for control of
goods or services or when the points expire.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to independently
determine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods to
the customers, so the Group is the main responsible person , And recognize revenue based on the total consideration received or
receivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or handling fee
expected to be entitled to receive. This amount shall be the net amount of the total consideration received or receivable minus the
price payable to other related parties, or based on The established commission amount or ratio is determined.
26. 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 a 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 Group uses the gross method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income
and shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant cost
expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged
to the profit and loss account in the current period or used to write down the relevant cost.
The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferred
income. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonably
and systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
directly charged to the current profit and loss. The remaining book value of the government grants related to assets should be
charged to the profit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
27. Income taxes
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 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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
When the following conditions are met at the same time, the deferred tax assets and deferred tax liabilities are listed at the net amount
after offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred tax
assets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on the
same taxable subject or different taxpaying subjects However, in the future, during each period when the significant deferred tax
assets and deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and current
income tax liabilities with net amount or obtain assets and pay off debts at the same time.
28. 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 contingent rents shall be recorded in
the profits and losses of the period in which they actually arise.
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.
The contingent rents shall be recorded in the profits and losses of the period in which they actually arise.
29. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
30. 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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
31. 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 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.
32. 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.
Business model
The classification of financial assets at initial recognition depends on the business model of the Group’s management of financial
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
assets. When judging the business model, the Group considers the methods including enterprise evaluation and reporting of financial
asset performance to key management personnel, risks affecting financial asset performance and its anagement method and the way
in which related business managers get paid. When evaluating whether to take contract cash flow as the goal, the Group needs to
analyze and judge the reasons, time, frequency and value of the sale of financial assets before the due date.
Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.
Ite is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstanding
principal, including correction of the time value of money during the evaluation, it is necessary to determine whether there is a
significant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics, it is
necessary to determine whether the fair value of the prepayment characteristics is very small, etc.
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 financial instruments
The Group uses the expected credit loss model to assess the impairment of financial instruments. The application of the expected
credit loss model requires significant judgments and estimates. All reasonable and valid information must be considered, including
forward-looking information. In making these judgments and estimates, the Group infers the expected changes in the credit risk of
the debtor based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and other
factors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equal to
the actual amount of future impairment losses.
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.
Fair value of unlisted equity investments
For unlisted equity instrument investments, several valuation models are used to estimate the fair value. This requires the Group to
make estimates of unobservable market parameters such as price-to-book ration, discount rate, sustainable growth rate, asset price
index, etc., and is therefore uncertain.
Development expenditures
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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. Factors that influence estimation of related warranty claim include: 1) renewal of laws and
regulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty based
on selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As at
balance sheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty
payment during relative warranty period, and recent trends of product renovation and replacement, and further adjustment if
necessary. Any increase or decrease in the provision would affect profit or loss in future years.
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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
33. Changes in accounting policies and estimates
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No. 14-Revenue" (referred to
as the "New Revenue Standards"). Since January 1, 2020, the Group will conduct accounting treatment in accordance with the
newly revised standards. According to the convergence regulations, the comparable period information will not be adjusted. The
difference between the implementation of the new standards and the current standards on the first day will be retrospectively
adjusted for retained earnings at the beginning of the reporting period . According to the time set by the Ministry of Finance, the
company will implement the new revenue standards from January 1, 2020. According to the convergence regulations, no
adjustment will be made to the comparable period information.
The new revenue standard establishes a new revenue recognition model for regulating revenue generated from contracts with
customers. According to the new revenue standards, the method of revenue recognition should reflect the entity's transfer of goods
or services to customers, and the amount of revenue should reflect the amount of consideration that the entity expects to be
entitled to because of the transfer of these goods or services to customers. At the same time, the new revenue standard also
regulates the judgments and estimates required for each link of revenue recognition. The Group only adjusts the cumulative
impact of contracts that have not been completed on January 1, 2020. For contract changes or changes that occurred before
January 1, 2020, the Group adopts a simplified approach to all contracts that are subject to contract changes. The final
arrangement is to identify the fulfilled and unfulfilled performance obligations, determine the transaction price, and allocate the
transaction price between the fulfilled and unfulfilled performance obligations.
The impact of the implementation of the new revenue standard on the 2020 financial statements is as follows:
Consolidated balance sheet
In RMB Yuan
Account December 31, 2019 January 01, 2020 Adjustment
Current assets:
Cash 10,066,171,353.48 10,066,171,353.48
Transactional financial assets 2,419,476,200.00 2,419,476,200.00
Notes receivable 26,805,635,587.19 26,805,635,587.19
Accounts receivable 838,314,076.82 838,314,076.82
Prepayments 623,801,896.07 623,801,896.07
Other receivables 3,731,755,992.46 269,534,090.37 -3,462,221,902.09
Inventories 3,375,441,488.37 3,375,441,488.37
Contract assets 3,462,221,902.09 3,462,221,902.09
Other current assets 1,746,120,128.04 1,746,120,128.04
Total current assets 49,606,716,722.43 49,606,716,722.43
Non-current assets:
Long-term receivables 11,008,336,989.09 11,008,336,989.09
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Other equity investment 734,506,100.00 734,506,100.00
Investment properties 7,102,849.72 7,102,849.72
Fixed assets 26,939,490,554.19 26,939,490,554.19
Construction in progress 1,729,803,028.43 1,729,803,028.43
Intangible assets 5,209,619,313.49 5,209,619,313.49
Devlopment expenditure 814,745,464.20 814,745,464.20
Goodwill 9,804,394.00 9,804,394.00
Long-term deferred expenses 14,327,639.90 14,327,639.90
Deferred tax assets 1,542,600,534.93 1,542,600,534.93
Total non-current assets 48,010,336,867.95 48,010,336,867.95
Total assets 97,617,053,590.38 97,617,053,590.38
Current liabilities:
Short-term loans 229,580,000.00 229,580,000.00
Notes payable 13,430,543,294.23 13,430,543,294.23
Accounts payable 18,905,725,271.50 18,905,725,271.50
Advances from customers 2,315,641,685.78 -2,315,641,685.78
Contract liabilities 2,315,641,685.78 2,315,641,685.78
Payroll payable 1,046,335,781.91 1,046,335,781.91
Taxes payable 889,092,442.80 889,092,442.80
Other payables 4,809,918,141.45 4,809,918,141.45
Other current liabilities 4,253,942,761.77 4,253,942,761.77
Total current liabilities 45,880,779,379.44 45,880,779,379.44
Non-current liabilities:
Long-term loans 55,300,000.00 55,300,000.00
Long-term payable 857,356,423.71 857,356,423.71
Long term payroll payable 45,932,000.00 45,932,000.00
Estimated liabilities 3,352,580,839.28 3,352,580,839.28
Deferred earnings 3,194,291,079.21 3,194,291,079.21
Deferred tax liabilities 296,742,890.29 296,742,890.29
Total non-current liabilities 7,802,203,232.49 7,802,203,232.49
Total liabilities 53,682,982,611.93 53,682,982,611.93
Owners’ equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,366,097,594.66 5,366,097,594.66
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Other Comprehensive Income 139,994,580.19 139,994,580.19
Special reserves 47,076,242.71 47,076,242.71
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 31,271,171,559.60 31,271,171,559.60
Equity attributable to owners 44,028,312,743.66 44,028,312,743.66
Minority interests -94,241,765.21 -94,241,765.21
Total equity 43,934,070,978.45 43,934,070,978.45
Total liabilities and owener’s equity 97,617,053,590.38 97,617,053,590.38
Balance sheet
单位：元
Account December 31, 2019 January 01, 2020 Adjustment
Current assets:
Cash 6,563,020,335.56 6,563,020,335.56
Transactional financial assets 184,245,000.00 184,245,000.00
Notes receivable 25,837,326,483.09 25,837,326,483.09
Accounts receivable 5,094,270,365.72 5,094,270,365.72
Prepayments 403,105,316.24 403,105,316.24
Other receivables 2,597,314,344.40 941,161,145.80 -1,656,153,198.60
Inventories 1,735,570,691.28 1,735,570,691.28
Contract assets 1,656,153,198.60 1,656,153,198.60
Other current assets 798,430,035.62 798,430,035.62
Total current assets 43,213,282,571.91 43,213,282,571.91
Non-current assets:
Long-term equity investments 16,052,319,271.82 16,052,319,271.82
Other equity investment 724,309,400.00 724,309,400.00
Fixed assets 20,301,231,002.41 20,301,231,002.41
Construction in progress 1,545,211,000.22 1,545,211,000.22
Intangible assets 4,030,438,649.57 4,030,438,649.57
Development expenditure 431,774,377.27 431,774,377.27
Long-term deferred expenses 9,719,259.84 9,719,259.84
Deferred tax assets 1,318,884,054.48 1,318,884,054.48
Total non-current assets 44,413,887,015.61 44,413,887,015.61
Total assets 87,627,169,587.52 87,627,169,587.52
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Current liabilities:
Short-term loans 29,580,000.00 29,580,000.00
Notes payable 11,983,445,725.06 11,983,445,725.06
Accounts payable 15,601,432,751.74 15,601,432,751.74
Advances from customers 1,870,992,349.08 -1,870,992,349.08
Contract liabilities 1,870,992,349.08 1,870,992,349.08
Payroll payable 641,340,149.30 641,340,149.30
Taxes payable 453,619,905.66 453,619,905.66
Other payables 4,301,257,819.04 4,301,257,819.04
Other current liabilities 3,400,065,879.02 3,400,065,879.02
Total current liabilities 38,281,734,578.90 38,281,734,578.90
Non-current liabilities:
Long-term loans 55,300,000.00 55,300,000.00
Long-term payable 285,768,478.89 285,768,478.89
Long term payroll payable 22,747,000.00 22,747,000.00
Estimated liabilities 2,413,434,397.36 2,413,434,397.36
Deferred earnings 2,135,615,106.85 2,135,615,106.85
Deferred tax liabilities 81,775,341.60 81,775,341.60
Total non-current liabilities 4,994,640,324.70 4,994,640,324.70
Total liabilities 43,276,374,903.60 43,276,374,903.60
Owners' equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,014,772,792.87 5,014,772,792.87
Other comprehensive income 259,380,413.58 259,380,413.58
Special reserves 19,917,658.63 19,917,658.63
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 31,852,751,052.34 31,852,751,052.34
Total owners' equity 44,350,794,683.92 44,350,794,683.92
Total liabilities and owners’ equity 87,627,169,587.52 87,627,169,587.52
VI. Taxes
1. Main taxes and tax rates
Value added tax (“VAT”) - VAT payable is the difference between VAT output and less
deductible VAT input for the current year.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
VAT output of sales of products has been calculated by applying a rate of 13% to the taxable
value since 1 April 2019 (16% before 1 April 2019).
And VAT output of income from providing labor services has been calculated by applying a
rate of 6% to the taxable value during this year.
Consumption tax - Consumption tax is calculated at 1%, 3% or 5% of taxable income.
City maintenance and construction 7% of the turnover tax paid is calculated and paid.
-
tax
Educational surcharge - 3% of the actual turnover tax paid is calculated and paid.
Local educational surcharge - 2% of the turnover tax actually paid is calculated and paid.
Corporate income tax - Corporate income tax is paid at 15% or 25% of taxable income.
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax preferential policies, the following
companies of the group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15%
within the prescribed period: the company (2018-2020), and the Company’s subsidiaries including Hefei Changan Automobile
Company Limited (2019-2021), Hebei Changan Automobile Company Limited (2017-2019), Baoding Changan Bus Manufacturing
Company Limited (2017-2019), Chongqing Changan Connected Car Technology Co., Ltd. (2019-2021) and Beijing Changan
Automotive Engineering Technology Company Limited (2018-2020).
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%. The Company’s subsidiaries, including Chongqing Changan Special Automobile Co., Ltd,
Chongqing Changan Automobile Supporting Service Co., Ltd. and Chongqing Changan Suzuki Automobile Co., Ltd. are qualified to
the requirement and are subjected to the preferential tax rate of 15%.
VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
Item Ending Beginning
Cash 14,977.41 18,280.08
Cash at bank 16,821,104,203.83 9,360,456,394.81
Other cash 505,302,056.19 705,696,678.59
Total 17,326,421,237.43 10,066,171,353.48
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
As at 30 June 2020, the book value of restricted cash and cash equivalents is RMB 505,302,056.19, which was mainly restricted for
the issuance of acceptance bill.
As at 30 June 2020, the cash at bank oversea is equivalent to RMB 219,602,378.35.
2. Transactional financial assets
Item Ending Beginning
Financial assets measured at fair value and whose changes
are included in the current profit and loss-equity 4,173,150,897.00 2,419,476,200.00
instrument investment
Total 4,173,150,897.00 2,419,476,200.00
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Type Ending Beginning
Commercial acceptance bill 2,109,965,475.65 7,475,629,607.72
Bank acceptance bill 19,519,311,671.28 19,330,005,979.47
Total 21,629,277,146.93 26,805,635,587.19
(2) The notes receivable pledged as follows:
Type 30 June 2019 31 December 2018
Commercial acceptance bill 361,829,675.00 365,040,070.00
Bank acceptance bill 5,791,544,234.00 2,760,059,280.00
Total 6,153,373,909.00 3,125,099,350.00
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2020 and 31 December 2019.
(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 662,937,930.00
Bank acceptance bill 993,166,843.10 1,937,078,894.54
Total 993,166,843.10 - 2,600,016,824.54 -
4. Accounts receivable
(1)Aging analysis of the accounts receivable is as follows:
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Aging Ending Beginning
Within 1 year 2,129,247,041.33 678,737,828.90
1 to 2 years 124,986,062.13 141,612,978.25
2 to 3 years 49,822,288.08 33,700,863.10
Over 3 years 98,670,214.99 68,414,880.58
Total 2,402,725,606.53 922,466,550.83
Less: Provision - 102,743,181.12 -84,152,474.01
Total 2,299,982,425.41 838,314,076.82
(2)The movements in provision for impairment of accounts receivable are as follows:
Addition Deduction
Beginning balance Ending balance
Provision Other Reversal Write-off
2020 84,152,474.01 19,762,832.77 1,172,125.66 102,743,181.12
2019 90,614,319.90 13,362,617.00 6,450,000.00 13,374,462.89 84,152,474.01
(3)Analysis of accounts receivable by category is as follows:
Ending
Item
Balance Provision
Amount (%) Amount (%)
Individually analyzed for provision 1,644,201,932.79 68.43 64,203,085.58 3.90
Accounts receivable analyzed as groups for provision 758,523,673.74 31.57 38,540,095.54 5.08
Total 2,402,725,606.53 100.00 102,743,181.12 4.28
Beginning
Item
Balance Provision
Amount (%) Amount (%)
Individually analyzed for provision 216,876,810.50 23.51 49,267,460.68 22.72
Accounts receivable analyzed as groups for provision 705,589,740.33 76.49 34,885,013.33 4.94
Total 922,466,550.83 100.00 84,152,474.01 9.12
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Ending Beginning
Estimated face Expected credit Expected credit loss Provision Provision for
Face balance
value for default loss rate (%) for the entire duration ratio (%) bad debt
Within 1 year 659,634,029.05 1.11 7,354,250.99 601,963,326.69 0.80 4,799,025.50
1 to 2 years 54,905,522.87 7.04 3,866,061.16 56,368,999.03 7.54 4,250,219.24
2 to 3 years 11,522,151.00 33.80 3,894,643.60 20,043,284.25 31.23 6,258,614.71
3 to 4 years 14,417,151.43 43.31 6,243,620.13 10,355,210.70 42.66 4,417,566.60
4 to 5 years 1,531,440.86 46.89 718,141.13 2,411,538.03 45.52 1,097,691.19
Over 5 years 16,513,378.53 99.70 16,463,378.53 14,447,381.63 97.33 14,061,896.09
Total 758,523,673.74 5.08 38,540,095.54 705,589,740.33 4.94 34,885,013.33
(5)As at June 30, 2020, accounts receivable from Top 5 clients amounted to RMB1,526,610,729.58, accounted for 63.54% of the
total accounts receivable (December 31, 2019：RMB191,520,443.31，accounted for 20.76% of the total amount).
(6) As of June 30, 2020, the Group has no accounts receivable that are derecognized as the transfer of financial assets (2018: Nil).
5. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
Ending Beginning
Aging
Amount % Amount %
Within 1 year 516,320,018.74 81.17 427,508,750.42 68.53
1 to 2 years 110,947,847.63 17.44 190,277,683.92 30.50
2 to 3 years 7,818,383.63 1.23 4,480,529.56 0.72
Over 3 years 1,001,975.27 0.16 1,534,932.17 0.25
Total 636,088,225.27 100.00 623,801,896.07 100.00
(2)As at 30 June 2020, the total amount of the top five prepayments was RMB 371,147,084.34, accounting for 58.35% of the total
amount of prepayments (2019: RMB 465,836,148.17, accounting for 74.68%).
6. Other receivables
(1)Aging analysis of other receivables is as follows:
Ending Beginning
Within 1 year 960,768,073.61 130,092,224.20
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
1 to 2 years 51,044,853.03 133,414,975.39
2 to 3 years 24,464,905.99 1,265,977.01
Over 3 years 18,827,421.03 17,715,984.88
Total 1,055,105,253.66 282,489,161.48
Provision -13,078,147.01 - 12,955,071.11
Total 1,042,027,106.65 269,534,090.37
(2)Other receivables are classified by nature as follows:
Nature Ending Beginning
New energy subsidy 96,341,496.10 5,401,842.90
Reserve 32,179,103.25 41,810,604.18
Equity transfer receivable 798,700,000.00
Other 114,806,507.30 222,321,643.29
Total 1,042,027,106.65 269,534,090.37
(3)In 2020, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the
expected credit losses for the entire duration are as follows:
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Balance at the end of the previous year 291,182.01 111,686,526.12 13,616,375.98 125,594,084.11
Changes in accounting policies 0.00 -111,066,213.00 -1,572,800.00 -112,639,013.00
Opening balance 291,182.01 620,313.12 12,043,575.98 12,955,071.11
Changes due to the opening balance
- Transfer to Stage 2 -274,825.18 274,825.18
- Transfer to Stage 3 -826,113.91 826,113.91
- Turn back Stage 2
- Turn back Stage 1
Provision 81,146.21 57,668.33 138,814.54
Reversal -15,738.64 -15,738.64
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Ending balance 81,764.40 126,692.72 12,869,689.89 13,078,147.01
Movement of other account receivable balance as follow:
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Balance at the end of the previous year 2,205,778,389.26 1,637,955,311.33 13,616,375.98 3,857,350,076.57
Changes in accounting policies -1,940,287,730.49 -1,633,000,384.60 -1,572,800.00 -3,574,860,915.09
Opening balance 265,490,658.77 4,954,926.73 12,043,575.98 282,489,161.48
Changes due to the opening balance
- Transfer to Stage 2 -2,700,041.57 2,700,041.57
- Transfer to Stage 3 -826,113.91 826,113.91
- Turn back Stage 2
- Turn back Stage 1
Addition 876,669,396.33 222,877.06 876,892,273.39
Derecognition -102,971,320.63 -4,918.00 -102,976,238.63
Write-off -1,299,942.58 -1,299,942.58
Ending balance 1,035,188,750.32 7,046,813.45 12,869,689.89 1,055,105,253.66
(4)In 2019, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the
expected credit losses for the entire duration are as follows:
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Opening balance 688,784.69 473,328.51 6,686,050.38 7,848,163.58
Changes due to the
opening balance
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 -150,000.00 -348,425.91 498,425.91 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Provision 135,958.46 111,637,659.12 7,431,094.18 119,204,711.76
Reversal -383,561.14 -76,035.60 - -459,596.74
Transfer - - - -
Write-off - - -999,194.49 -999,194.49
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Closing balance 291,182.01 111,686,526.12 13,616,375.98 125,594,084.11
Movement of other account receivable balance as follow:
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Opening balance 3,228,443,949.91 5,738,281.45 6,686,050.38 3,240,868,281.74
Changes due to the opening
balance
- Transfer to Stage 2 -2,203,754,203.78 2,203,754,203.78 - -
- Transfer to Stage 3 -5,079,519.22) -2,850,000.87 7,929,520.09 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Addition 1,603,831,056.07 667,724.40 - 1,604,498,780.47
Derecognition -417,662,893.72 -569,354,897.43 - -987,017,791.15
Write-off - - -999,194.49 -999,194.49
Closing balance 2,205,778,389.26 1,637,955,311.33 13,616,375.98 3,857,350,076.57
(5)As at June 30, 2020, top five debtors of other receivables are as follows:
Proportion of total other
Debtors Amount Aging
receivables (%)
First 798,700,000.00 Within 6 months 75.70
Second 124,312,677.99 1-2 years 11.78
Third 76,449,253.20 Within 6 months 7.25
Fourth 10,944,887.98 Within 6 months 1.04
Fifth 8,403,835.35 Within 6 months 0.80
Total 1,018,810,654.52 96.56
As at 31 December 2019, top five debtors of other receivables are as follows:
Proportion of total other
Debtors Amount Aging
receivables (%)
First 1,770,677,411.60 0-4 years 45.90
Second 1,071,115,340.00 Within 1year 27.77
Third 430,588,852.51 0-5 years 11.16
Fourth 131,582,160.00 Within 1 year 3.41
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Fifth 124,312,677.94 1-2 years 3.22
Total 3,528,276,442.05 91.46
(6) As of June 30, 2020, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2019: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
Ending Beginning
Item
Balance Provision Net value Balance Provision Net value
Raw materials 757,653,010.63 353,832,972.07 403,820,038.56 843,669,443.37 350,525,510.02 493,143,933.35
Work in transit 74,730,000.00 - 74,730,000.00 293,575,861.15 - 293,575,861.15
Work in progress 1,017,286,537.93 91,270,247.87 926,016,290.06 657,730,109.07 28,324,925.14 629,405,183.93
Commodity stock 2,758,195,870.81 156,547,980.65 2,601,647,890.16 1,958,389,227.87 83,956,153.45 1,874,433,074.42
Revolving materials - - - 51,101,639.03 - 51,101,639.03
Spare parts 34,178,251.21 - 34,178,251.21 33,781,796.49 - 33,781,796.49
Total 4,642,043,670.58 601,651,200.59 4,040,392,469.99 3,838,248,076.98 462,806,588.61 3,375,441,488.37
(2) Provision for inventory
In RMB Yuan
Deduction
Type Beginning Provision Ending
Reversal Write-off
Raw materials 350,525,510.02 13,899,766.91 5,905,198.31 4,687,106.55 -
Work in progress 28,324,925.14 71,004,875.39 708,212.46 7,351,340.20 -
Commodity stock 83,956,153.45 132,318,652.44 3,372,139.06 28,491,314.07 27,863,372.11
Total 462,806,588.61 217,223,294.74 9,985,549.83 40,529,760.82 27,863,372.11
8. Contract assets (applicable from January 1, 2020)
(1) Classification of Contract assets
In RMB Yuan
Ending Beginning
Item Provision for Provision for
Balance Net value Balance Net value
impairment impairment
New energy
2,172,702,076.43 117,225,349.00 2,055,476,727.43 3,574,860,915.09 112,639,013.00 3,462,221,902.09
business
Total 2,172,702,076.43 117,225,349.00 2,055,476,727.43 3,574,860,915.09 112,639,013.00 3,462,221,902.09
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
(2) Current contract assets provision for impairment
In RMB Yuan
Balance at the end Changes in Provision for Deduction
Ending balance
of the previous year accounting policies this year Reversal Write-off
2020 112,639,013.00 4,586,336.00 117,225,349.00
(3) The contract assets with provision for impairment losses using the simplified method are as follows:
In RMB Yuan
Ending
Item
Estimated book balance in default Expected credit loss rate Lifetime expected credit loss
New energy business 2,172,702,076.43 5.40 117,225,349.00
Total 2,172,702,076.43 5.40 117,225,349.00
9. Other current assets
In RMB Yuan
Item Ending Beginning
Accrual input tax 794,281,653.55 1,428,518,317.99
Entrusted Loan 300,000,000.00 300,000,000.00
Others 5,960,566.11 17,601,810.05
Total 1,100,242,219.66 1,746,120,128.04
10. Other equity instrument investments
Accumulative changes Reason for being
in fair value included designated
Dividends
in other Fair value as fair value through
Income
comprehensive other comprehensive
income income
Unlisted equity
Corun Hybrid Power Technology Co. Ltd 4,820,300.00 204,820,300.00 -
instruments
Unlisted equity
China South Industry Group Finance Co., Ltd. 158,945,000.00 315,965,800.00 -
instruments
Guoqi (Beijing) Intelligent Network
Unlisted equity
Association Automotive Research Institute 50,000,000.00 100,000,000.00 -
instruments
Co., Ltd.
Guoqi Automobile Power Cell Research Co., Unlisted equity
12,538,500.00 52,538,500.00 -
Ltd. instruments
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
China North Industries Group Financial Unlisted equity
3,629,500.00 34,181,500.00 -
Leasing Co., Ltd. instruments
Unlisted equity
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 -
instruments
Unlisted equity
Chongqing Ante trading Co., Ltd - 3,000,000.00 -
instruments
CAERI(Beijing) automobile Lightweight Unlisted equity
- 3,000,000.00 -
Technology Research Institution Co., Ltd. instruments
Unlisted equity
Sichuan Glass Co., Ltd. - - -
instruments
合计 229,933,300.00 734,506,100.00
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
11. Long-term equity investment
In RMB Yuan
Increase or Investment income under Other equity Cash dividends Provision ending
Investee Beginning balance Other Deduction Provision Ending balance
decrease equity method variation declared balance
Joint Venture
Changan Ford Automobile Co., Ltd. 1,782,823,327.91 -570,006,507.40 1,212,816,820.51
Changan Mazda Automobile Co., Ltd. 2,177,010,905.02 323,202,621.60 2,500,213,526.62
Changan Mazda Engine Co., Ltd. 830,272,340.69 11,597,486.28 -37,000,000.00 804,869,826.97
Changan PSA Automobiles Co., Ltd. 346,038,983.87 -114,234,986.00 -231,803,997.87
Changan Weilai New Energy
-12,871,719.42 -18,666,611.81 31,538,331.23
Automobile Technology Co., Ltd.
Nanchang Jiangling Holding Co., Ltd. 2,081,815,165.31 34,848,792.52 2,116,663,957.83
Associates
Chongqing Changan Kuayue
192,005,274.10 27,957,230.96 219,962,505.06
Automobile Co., Ltd.
Chongqing Changan Kuayue
Automobile Sales Co., Ltd. (note1)
Beijing Fang’an cresent taxi Co., Ltd.
(note1)
Changan Automobile Financing Co.,Ltd 2,195,040,654.44 123,493,951.66 2,318,534,606.10
Hainan Anxinxing Information
3,560,384.10 -795,039.88 2,765,344.22
Technology Co., Ltd.
Nanjing Chelai Travel Technology Co., 1,474,945.09 -143,024.65 1,331,920.44
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Ltd.
Hunan Guoxin Semiconductor
25,152,447.20 -126,648.85 25,025,798.35
Technology Co., Ltd.
Nanjing Leading Equity Investment 32.16 935,218,355.48
935,218,323.32
Partnership
Nanjing Leading Equity Investment -93,594.67 1,351,821.02
1,445,415.69
Management Co., Ltd.
Jiangling Holdings Co., Ltd. 398,992,953.62 -94,049,105.60 304,943,848.02
Chongqing Changan New Energy
Automobile Technology Co., Ltd. 2,565,221,040.00 -232,817,307.40 2,332,403,732.60
(Note 2)
Anhe (Chongqing) Equity Investment
1,939,605.86 -419,202.42 1,520,403.44
Fund Management Co., Ltd.
Hangzhou Chelizi Intelligent
7,527,572.23 1,753,349.94 9,280,922.17
Technology Co., Ltd.
Beijing Wutong Chelian Technology
4,094,510.40 -17,183,381.33 -13,088,870.93
Co., Ltd.
Pakistan Master Automobile Co., Ltd. 36,795,899.66 -2,600,212.00 34,195,687.66
Total 11,008,336,989.09 2,565,221,040.00 -528,282,156.89 -37,000,000.00 -200,265,666.64 12,808,010,205.56 --
Note1: As at June 30, 2020, the Group is not responsible for extra loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd. and Beijing Fang’an cresent taxi Co., Ltd. Therefore, when
excess losses of these two associates occurred, the Group just reduced its correspondent long-term equity investment to zero, and did not recognize contingent liabilities accordingly.
Note2: In 2020, Chongqing Changan New Energy Automobile Technology Co., Ltd. introduced a strategic investor. The company lost control over it, and its shareholding ratio was reduced to
48.96%. It will no longer be included in the scope of consolidation and will be followed up by the equity method. Metering.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
12. 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 2,947,250.28 113,355.78 3,060,606.06
amortization
Buildings 2,947,250.28 113,355.78 3,060,606.06
III. Net Value 7,102,849.72 -113,355.78 6,989,493.94
Buildings 7,102,849.72 -113,355.78 6,989,493.94
IV. Impairment Provision 7,102,849.72 -113,355.78 6,989,493.94
Buildings 7,102,849.72 -113,355.78 6,989,493.94
13. Fixed assets
Beginning Ending
Fixed assets 25,896,056,062.39 26,939,490,554.19
Fixed assets cleanup
total 25,896,056,062.39 26,939,490,554.19
Fixed assets
In RMB Yuan
Item Beginning Addition Deduction Ending
I. Original cost 46,410,278,338.13 362,437,404.30 349,430,828.47 46,423,284,913.96
Buildings 11,144,160,050.01 391,688.99 791,082.72 11,143,760,656.28
Machinery 25,623,584,497.53 301,790,428.81 231,669,579.38 25,693,705,346.96
Vehicles 1,355,868,955.84 853,112.65 100,357,287.31 1,256,364,781.18
Other Equipments 8,286,664,834.75 59,402,173.85 16,612,879.06 8,329,454,129.54
II. Accumulated
18,610,392,441.59 1,341,667,160.44 199,611,157.36 19,752,448,444.67
depreciation
Buildings 2,515,402,360.27 173,789,227.82 326,755.36 2,688,864,832.73
Machinery 11,496,523,762.29 889,236,401.15 123,506,026.96 12,262,254,136.48
Vehicles 629,232,960.52 86,129,280.66 71,207,725.68 644,154,515.50
Other Equipments 3,969,233,358.51 192,512,250.81 4,570,649.36 4,157,174,959.96
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
III. Net Value 27,799,885,896.54 -979,229,756.14 149,819,671.11 26,670,836,469.29
Buildings 8,628,757,689.74 -173,397,538.83 464,327.36 8,454,895,823.55
Machinery 14,127,060,735.24 -587,445,972.34 108,163,552.42 13,431,451,210.48
Vehicles 726,635,995.32 -85,276,168.01 29,149,561.63 612,210,265.68
Other Equipments 4,317,431,476.24 -133,110,076.96 12,042,229.70 4,172,279,169.58
IV.Impairment Provision 860,395,342.35 1,004,872.80 86,619,808.25 774,780,406.90
Buildings 85,592,184.71 - 85,592,184.71
Machinery 631,047,449.99 78,191,258.02 552,856,191.97
Vehicles 36,761,889.19 1,004,872.80 7,970,158.80 29,796,603.19
Other Equipments 106,993,818.46 458,391.43 106,535,427.03
V. Book Value 26,939,490,554.19 -980,234,628.94 63,199,862.86 25,896,056,062.39
Buildings 8,543,165,505.03 -173,397,538.83 464,327.36 8,369,303,638.84
Machinery 13,496,013,285.25 -587,445,972.34 29,972,294.40 12,878,595,018.51
Vehicles 689,874,106.13 -86,281,040.81 21,179,402.83 582,413,662.49
Other Equipments 4,210,437,657.78 -133,110,076.96 11,583,838.27 4,065,743,742.55
The depreciation during the reporting period is RMB 1,341,667,160.44. During the period the construction in progress amounting to
RMB 366,499,861.3 is transferred to the fixed asset.
14. 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
Vehicle production equipment 131,759,496.47 131,759,496.47 163,180,665.02 - 163,180,665.02
Yuzui motor city project 105,456,656.33 105,456,656.33 39,547,629.19 - 39,547,629.19
Engine plant 985,844,453.47 985,844,453.47 880,128,770.64 - 880,128,770.64
Vehicle research institution 56,076,752.30 56,076,752.30 40,087,119.45 - 40,087,119.45
Vehicle moulds 208,172,446.27 208,172,446.27 284,573,714.88 - 284,573,714.88
Light vehicle technical
transformation project of 48,832,435.33 48,832,435.33 65,394,282.59 - 65,394,282.59
Baoding Changan bus
Beijing vehicle construction 71,002,689.79 71,002,689.79 60,307,306.09 - 60,307,306.09
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
project
Car production Project Of
4,218,237.16 4,218,237.16 6,491,703.97 - 6,491,703.97
Hefei Changan
Others 231,050,886.91 49,398,728.00 181,652,158.91 239,490,564.60 49,398,728.00 190,091,836.60
Total 1,842,414,054.03 49,398,728.00 1,793,015,326.03 1,779,201,756.43 49,398,728.00 1,729,803,028.43
(2) Movement of major construction in progress projects
In RMB Yuan
Transferred to fixed
Item Beginning Addition Deduction Ending
assets
Vehicle production equipment 163,180,665.02 38,172,278.22 69,593,446.77 131,759,496.47
Yuzui motor city project 39,547,629.19 71,463,192.85 5,554,165.71 105,456,656.33
Engine plant 880,128,770.64 126,482,988.92 20,767,306.09 985,844,453.47
Vehicle research institution 40,087,119.45 35,444,551.49 19,454,918.64 56,076,752.30
Vehicle moulds 284,573,714.88 61,338,065.13 137,739,333.74 208,172,446.27
Light vehicle technical
transformation project of 65,394,282.59 57,177,161.14 73,739,008.40 48,832,435.33
Baoding Changan bus
Beijing vehicle construction
60,307,306.09 10,834,303.92 138,920.22 71,002,689.79
project
Car production Project Of
6,491,703.97 8,206,689.90 10,480,156.71 4,218,237.16
Hefei Changan
Others 190,091,836.60 20,753,118.07 29,032,605.02 160,190.74 181,652,158.91
Total 1,729,803,028.43 429,872,349.64 366,499,861.30 160,190.74 1,793,015,326.03
(3) Provision for impairment of construction in progress
On June 30, 2020, the balance of impairment provision for construction in progress was RMB 49,398,728.00. There was no accrued
or resold amount in the current year. (As of December 31, 2019, the amount of impairment provision for construction in progress was
RMB 49,398,728.00).
15. Intangible assets
Details of intangible assets
In RMB Yuan
Item Beginning Addition Deduction Ending
I. Original cost 10,490,391,183.90 379,638,618.07 28,911,602.62 10,841,118,199.35
Land use rights 2,753,082,390.28 2,753,082,390.28
Software use rights 705,159,803.48 2,892,485.99 708,052,289.47
Trademark use rights 211,784,400.00 1,536.47 211,782,863.53
Non-patent technology 6,820,364,590.14 376,746,132.08 28,910,066.15 7,168,200,656.07
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
II. Accumulated amortization 5,003,686,933.67 514,642,717.04 2,582,722.47 5,515,746,928.24
Land use rights 461,981,506.33 27,980,857.36 489,962,363.69
Software use rights 564,665,067.35 14,506,702.89 579,171,770.24
Trademark use rights 188,453,466.62 8,749,999.98 197,203,466.60
Non-patent technology 3,788,586,893.37 463,405,156.81 2,582,722.47 4,249,409,327.71
III. Net value 5,486,704,250.23 -135,004,098.97 26,328,880.15 5,325,371,271.11
Land use rights 2,291,100,883.95 -27,980,857.36 2,263,120,026.59
Software use rights 140,494,736.13 -11,614,216.90 128,880,519.23
Trademark use rights 23,330,933.38 -8,749,999.98 1,536.47 14,579,396.93
Non-patent technology 3,031,777,696.77 -86,659,024.73 26,327,343.68 2,918,791,328.36
IV. Impairment provision 277,084,936.74 277,084,936.74
Land use rights -
Software use rights 23,617,923.17 23,617,923.17
Non-patent technology 253,467,013.57 253,467,013.57
V. Book value 5,209,619,313.49 -135,004,098.97 26,328,880.15 5,048,286,334.37
Land use rights 2,291,100,883.95 -27,980,857.36 2,263,120,026.59
Software use rights 116,876,812.96 -11,614,216.90 105,262,596.06
Trademark use rights 23,330,933.38 -8,749,999.98 1,536.47 14,579,396.93
Non-patent technology 2,778,310,683.20 -86,659,024.73 26,327,343.68 2,665,324,314.79
As at 30 June 2020, the intangible assets from internal research and development account for 52.8% of total intangible assets.
16. Development expenditure
In RMB Yuan
Deduction
Item Beginning Addition Included in current Recognized as Other Ending
profit and loss intangible assets reductions
Automobile
814,745,464.20 366,481,969.95 22,883,914.03 376,296,822.32 265,103,330.94 516,943,366.86
Development
Total 814,745,464.20 366,481,969.95 22,883,914.03 376,296,822.32 265,103,330.94 516,943,366.86
Note: On June 30, 2020, Chongqing Changan New Energy Automobile Technology Co., Ltd. was no longer included in the scope of
consolidation, and its development expenditure balance at the beginning of the year was transferred from other reductions.
17. Goodwill
In RMB Yuan
Impairment
Investee Beginning Addition Deduction Ending
provision
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Hebei Changan Automobile Co., Ltd 9,804,394.00 9,804,394.00
Nanjing Changan Automobile Co., Ltd 73,465,335.00
Changan Weilai New Energy Automobile
32,782,190.41 32,782,190.41
Technology Co., Ltd.
Total 9,804,394.00 32,782,190.41 42,586,584.41 73,465,335.00
18. Long-term deferred expenses
In RMB Yuan
Item Beginning Addition Amortization Ending
Long-term deferred expenses 14,327,639.90 166,065.12 2,725,128.43 11,768,576.59
Total 14,327,639.90 166,065.12 2,725,128.43 11,768,576.59
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 195,653,594.70 164,441,555.61
Accrued expenses and contingent liabilities 863,580,630.22 868,144,392.63
Unpaid tech development expense and
100,553,896.97 53,515,293.21
advertisement expense
Deferred income 412,073,835.87 410,605,039.66
Unpaid salary and bonus and others 68,675,839.25 45,894,253.82
Subtotal 1,640,537,797.01 1,542,600,534.93
Deferred tax liabilities:
Changes in fair value of trading financial assets 507,030,506.4 243,979,301.85
Fair value adjustment of business combination not
39,335,008.50 41,224,728.88
under the same control
Others 11,538,859.56 11,538,859.56
Subtotal 557,904,374.46 296,742,890.29
20. Provision for the impairment of assets
In RMB Yuan
Item Beginning Current Deduction Ending
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
accrual Other
Reversal Write-off
reduction
I. Bad debt provision 97,107,545.12 19,901,647.31 1,187,864.30 - 115,821,328.13
II. Provision for impairment of contract assets 112,639,013.00 4,586,336.00 117,225,349.00
III. Provision for obsolete inventory 462,806,588.61 217,223,294.74 9,985,549.83 40,529,760.82 27,863,372.11 601,651,200.59
IV. Provision for the impairment of fixed
860,395,342.35 1,004,872.80 86,619,808.25 774,780,406.90
assets
V. Provision for the impairment of intangible
277,084,936.74 277,084,936.74
assets
VI. Provision for the impairment of goodwill 73,465,335.00 73,465,335.00
VII. Provision for the impairment of
49,398,728.00 49,398,728.00
available-for-sale financial assets
Total 1,932,897,488.82 242,716,150.85 11,173,414.13 127,149,569.07 27,863,372.11 2,009,427,284.36
21. Short-term loans
In RMB Yuan
Item Ending Beginning
Pledge loans 50,000,000.00 50,000,000.00
Credit loans 315,525,472.30 179,580,000.00
Total 365,525,472.30 229,580,000.00
22. Notes payable
In RMB Yuan
Item Ending Beginning
Commercial acceptance bill 2,803,761,463.16 2,551,863,471.51
Bank acceptance bill 14,217,240,478.33 10,878,679,822.72
Total 17,021,001,941.49 13,430,543,294.23
23. Accounts payable
In RMB Yuan
Item Ending Beginning
Accounts payable 18,206,448,534.41 18,905,725,271.50
total 18,206,448,534.41 18,905,725,271.50
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
24. Contract liabilities (applicable from January 1, 2020)
In RMB Yuan
Item Ending Beginning
Payment 2,162,739,729.94 2,315,641,685.78
total 2,162,739,729.94 2,315,641,685.78
Note: Contract liabilities are mainly the advance receipts collected by the Group from customers before the performance obligations
are fulfilled. The related revenue of the contract will be recognized when the Group fulfills its performance obligations.
25. Payroll payable
In RMB Yuan
Item Beginning Addition Deduction Ending
Short term salary benefits 972,606,354.60 2,355,576,601.66 2,567,610,264.06 760,572,692.20
Defined contribution plans 68,484,427.31 165,667,817.43 103,828,904.94 130,323,339.80
Early retirement benefits and
5,245,000.00 22,477,102.71 18,961,430.02 8,760,672.69
others
Total 1,046,335,781.91 2,543,721,521.80 2,690,400,599.02 899,656,704.69
Short term salary benefits as follows:
In RMB Yuan
Item Beginning Addition Deduction Ending
Salary, bonus, allowance
777,811,109.08 1,861,583,042.41 2,167,875,073.48 471,519,078.01
and subsidy
Employee benefit 11,657,039.54 120,191,337.32 127,527,360.08 4,321,016.78
Social insurance 11,380,417.43 155,106,082.91 95,196,580.81 71,289,919.53
Housing accumulation fund 2,797,302.45 135,252,535.37 124,882,733.53 13,167,104.29
Labor fund and employee
168,960,486.10 83,443,603.65 52,128,516.16 200,275,573.59
education fund
Total 972,606,354.60 2,355,576,601.66 2,567,610,264.06 760,572,692.20
Defined contribution plans as follows:
In RMB Yuan
Item Beginning Addition Deduction Ending
Basic retirement
61,036,996.88 160,243,022.88 99,301,280.64 121,978,739.12
security
Unemployment
7,447,430.43 5,424,794.55 4,527,624.30 8,344,600.68
insurance
Total 68,484,427.31 165,667,817.43 103,828,904.94 130,323,339.80
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
26. Taxes payable
In RMB Yuan
Item Ending Beginning
Value-added tax 100,005,350.24 84,852,296.03
Consumption tax 297,692,384.99 629,406,972.37
Corporate income tax 23,178,777.31 120,351,092.86
City maintenance and construction tax, education
13,725,286.76 34,455,756.66
additional expenses
Others 14,052,860.82 20,026,324.88
Total 448,654,660.12 889,092,442.80
27. Other payables
Item Ending Beginning
Dividend payable 1,167,776.43 40,384.93
Other payables 3,073,183,667.88 4,809,877,756.52
合计 3,074,351,444.31 4,809,918,141.45
Dividend payable
In RMB Yuan
Item Ending Beginning
Interest on long-term borrowings with interest
1,138,824.98 8,216.67
payments due
Interest payable on short-term loans 28,951.45 32,168.26
Total 1,167,776.43 40,384.93
Other payables
In RMB Yuan
Item Ending Beginning
Deposits of dealer and supplier 152,403,024.39 284,705,119.28
Maintenance fees 71,072,432.97 158,503,895.70
Advertising fees 215,104,111.47 405,752,873.43
Warehousing and transport fees 429,551,017.85 247,969,064.86
Advance receipt of equity transfer - 831,300,000.00
Purchase and construction of fixed assets,
1,225,514,269.65 2,091,437,803.04
intangible assets and project deposits
Others 979,538,811.55 790,209,000.21
Total 3,073,183,667.88 4,809,877,756.52
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
28. Estimated liabilities
In RMB Yuan
Item Beginning Addition Deduction Ending
product quality assurance 2,762,766,347.50 362,013,019.76 499,183,282.39 2,625,596,084.87
Supplier compensation 589,814,491.78 45,609,734.51 544,204,757.27
Total 3,352,580,839.28 362,013,019.76 544,793,016.90 3,169,800,842.14
Note: The product quality assurance is the maintenance cost of the estimated three-package period of the sold vehicle.
29. Other current liabilities
In RMB Yuan
Item Ending Beginning
Accrued utilities 13,728,982.55 25,777,106.11
Accrued transportation fee 531,631,020.43 501,351,278.96
Accrued maintenance fee 45,276,063.03 39,493,497.48
Accrued technology transfer and development 308,326,480.76 101,005,700.82
fee
Accrued commercial discount payable 2,830,265,407.90 3,028,296,317.93
Accrued market development expense 482,066,300.72 355,903,653.68
Accrued rental fee 79,555,300.00 83,111,810.66
Others 278,956,894.44 119,003,396.13
Total 4,569,806,449.83 4,253,942,761.77
30. Non-current liabilities due within one year
In RMB Yuan
Item Ending Beginning
Credit loan 1,555,300,000.00 55,300,000.00
Total 1,555,300,000.00 55,300,000.00
31.Long-term payables
Item Ending Beginning
Special payables 702,461,540.35 857,356,423.71
Total 702,461,540.35 857,356,423.71
Special payables
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Item Beginning Addition Deduction Ending
New vehicle product 13,397,745.48 2,032,200.00 906,362.96 14,523,582.52
Land relocation compensation 555,350,709.40 555,350,709.40
Development and
industrialization of C206 pure 31,167.55 23,196.00 7,971.55
electric cars
Intelligent manufacturing
167,757,531.08 2,238,300.00 140,724,363.46 29,271,467.62
project
Lightweight design of
48,960,118.00 13,153,605.26 35,806,512.74
automobile structure
Others 71,859,152.20 10,761,953.00 15,119,808.68 67,501,296.52
Total 857,356,423.71 15,032,453.00 169,927,336.36 702,461,540.35
32. Deferred income
30 June, 2020
In RMB Yuan
Item Beginning Addition Deduction Ending
Government grants related to
2,858,873,083.08 267,690,549.97 146,117,354.84 2,980,446,278.21
assets
Government grants related to
209,830,081.10 300,000,000.00 39,313,256.02 470,516,825.08
income
Others 125,587,915.03 8,118,378.89 133,706,293.92
Total 3,194,291,079.21 575,808,928.86 319,136,904.78 3,450,963,103.29
As at 30 June 2020, 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 2,259,609,252.14 142,587,149.97 65,267,136.32 2,336,929,265.79 Related to asset
Subsidies for plant
400,927,900.80 125,103,400.00 35,929,748.82 490,101,551.98 Related to asset
construction
Technical innovation funds 16,150,000.00 16,150,000.00 Related to asset
Other asset - related subsidies 182,185,930.14 - 44,920,469.70 137,265,460.44 Related to asset
Income-related government
209,830,081.10 300,000,000.00 39,313,256.02 470,516,825.08 Related to income
subsidies
Total 3,068,703,164.18 567,690,549.97 185,430,610.86 3,450,963,103.29
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
33. Share capital
In RMB Yuan
Current movement
Transfer of
Beginning Issuance of Ending
Stock dividend reserve to others Subtotal
shares
common shares
The sum of
4,802,648,511.00 - - - - - 4,802,648,511.00
shares
34. Capital reserves
In RMB Yuan
Item Beginning Addition Deduction Ending
Share premium 4,938,329,830.94 4,938,329,830.94
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 366,254,879.52 366,254,879.52
Total 5,366,097,594.66 5,366,097,594.66
35. Other comprehensive income
In RMB Yuan
Increase or Increase or
2019/1/1 2019/12/31 2020/6/30
decrease decrease
Remeasure the net liabilities or
changes in net assets of defined 1,175,000.00 254,000.00 1,429,000.00 1,429,000.00
benefit plans
Under the equity method, the
invested unit's share of other
-2,088,068.00 -2,088,068.00 -2,088,068.00
comprehensive income that cannot
be reclassified into profit and loss
Changes in the fair value of other
131,858,460.00 63,584,845.00 195,443,305.00 195,443,305.00
equity instrument investments
Translation differences of foreign
-60,928,211.01 6,138,554.20 -54,789,656.81 6,766,939.37 -48,022,717.44
currency financial statements
Total 70,017,180.99 69,977,399.20 139,994,580.19 6,766,939.37 146,761,519.56
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
36. Surplus reserves
In RMB Yuan
Item Beginning Addition Deduction Ending
Statutory surplus 2,401,324,255.50 - - 2,401,324,255.50
Total 2,401,324,255.50 - - 2,401,324,255.50
37. Retained earnings
In RMB Yuan
Item Sum
Retained earnings at beginning of year 31,271,171,559.60
Add: Net profit belong to parent company 2,602,166,402.68
Retained earnings at the end 33,873,337,962.28
38. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Revenue Cost Revenue Cost
Main business 32,014,959,151.44 29,353,108,421.60 29,100,899,960.18 26,869,270,640.75
Other business 766,698,327.66 381,507,276.03 774,880,136.66 550,139,986.17
Total 32,781,657,479.10 29,734,615,697.63 29,875,780,096.84 27,419,410,626.92
39. Tax and surcharges
In RMB Yuan
Item Report period Same period of last year
Consumption tax 954,339,591.94 858,219,663.65
City maintenance and construction tax 79,821,375.83 66,201,215.72
Education additional expenses 50,469,342.13 48,193,289.93
Others 121,656,073.55 107,656,305.48
Total 1,206,286,383.45 1,080,270,474.78
40. Operating expenses
In RMB Yuan
Item Report period Same period of last year
Payroll and welfare 204,419,163.59 217,259,045.38
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Promotional advertising fees and sales 863,454,318.26 315,728,251.14
service fees
Transportation expenses 110,198,692.55 840,974,104.51
Travelling expenses 21,867,777.56 39,917,298.97
Package expenses 4,637,273.00 12,659,730.13
Administrative expenses 1,929,938.37 2,538,568.31
Consulting fee 993,897.25 3,900,858.69
Training fee 1,557,051.04 3,755,007.88
Others 61,658,970.45 6,483,676.29
Total 1,270,717,082.07 1,443,216,541.30
41. General and administrative expenses
In RMB Yuan
Item Report period Same period of last year
Payroll and welfare 710,197,732.15 511,834,200.57
Administrative expenses 1,813,546.15 8,543,521.30
Depreciation and amortization 133,684,029.10 138,824,075.95
Miscellaneous service charges 11,389,441.25 5,974,056.43
Traffic and travelling expenses 19,024,299.22 22,241,582.82
Entertainment expenses 450,275.19 1,162,489.46
Others 287,593,449.85 154,580,626.09
Total 1,164,152,772.91 843,160,552.62
42. Research and development expenses
Item Report period Same period of last year
Wages and benefits 519,844,836.98 868,126,885.03
Material fee 58,974,839.13 85,090,579.88
Subcontract fee 171,587,497.89 119,210,568.21
Travel research fee 10,103,859.15 17,519,367.04
Test fee 43,007,880.00 49,958,628.39
Depreciation and amortization 580,661,427.53 501,999,298.39
other fee 80,374,082.74 78,254,331.94
Total 1,464,554,423.42 1,720,159,658.88
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
43. Financial expenses
In RMB Yuan
Item Report period Same period of last year
Interest expense 20,373,153.36 28,216,059.24
Less: interest income 131,048,028.86 128,484,820.10
Exchange gain or loss 4,908,537.21 -2,640,391.42
Others 7,712,792.91 6,076,443.13
Total -98,053,545.38 -96,832,709.15
44. 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 33,428,646.97 9,392,459.28 33,428,646.97
Total 33,428,646.97 9,392,459.28 33,428,646.97
45. Impairment loss on assets
In RMB Yuan
Item Report period Same period of last year
1. Bad debt loss 207,237,744.91 152,676,538.06
2. Impairment provision of obsolete inventory 1,004,872.80
Total 208,242,617.71 152,676,538.06
46. Credit impairment loss (applicable from January 1, 2019)
Item Report period Same period of last year
I. Notes receivable and bad debts of accounts receivable 18,590,707.11 7,380,783.24
2. Impairment of contranct assets 123,075.90 2,148,950.42
3. Loss of bad debts of other receivables 4,586,336.00
Total 23,300,119.01 9,529,733.66
47. Changes in fair value gains and losses
Sources of income from changes in fair value Report period Same period of last year
Transactional financial assets 1,753,674,697.00 40,337,151.27
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Total 1,753,674,697.00 40,337,151.27
48. Investment income
In RMB Yuan
Item Report period Same period of last year
1.Long-term equity investment income under equity
-528,282,156.89 -108,336,709.94
method
2.Investment income from disposal of long-term
3,514,298,597.59
equity investments
3.Investment income obtained during the period of
7,903,143.08
holding trading financial assets
4.Others 6,884,080.21
Total 3,000,803,663.99 -108,336,709.94
49. Other income
In RMB Yuan
Item Report period Same period of last year Explain
R&D special funds 49,313,256.03 476,456,238.65
Deferred revenue amortization 146,117,354.84 110,976,095.19
Other government subsidies 20,547,344.41 33,300,740.27
Total 215,977,955.28 620,733,074.11 --
50. Non-operating income
In RMB Yuan
Item Report period Same period of last year
Fines and others 31,178,860.44 18,836,680.44
Total 31,178,860.44 18,836,680.44
51. Non-operating expenses
In RMB Yuan
Item Report period Same period of last year
Donation 16,759,250.00 2,300,000.00
Vehicle reward 6,029,776.00
Fines and late fees 130,851.84 1,065,115.94
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Others 34,461,544.29 3,250,175.26
Total 51,351,646.13 12,645,067.20
52. Income tax expenses
In RMB Yuan
Item Report period Same period of last year
Current income tax expense 26,707,074.55 31,508,825.01
Deferred income tax adjustment 163,224,222.09 85,058,871.07
Total 189,931,296.64 116,567,696.08
53. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
Item Amount
Interest income 120,704,400.68
Government grants related to operating activities 474,224,889.28
Others 865,665,430.32
Total 1,460,594,720.28
(2) The major cash paid relating to other operating activities
In RMB Yuan
Item Amount
Selling expenses 933,772,246.27
Administrative expenses 1,025,434,454.14
R&D expensess 401,581,519.34
Others 746,994,963.28
Total 3,107,783,183.03
(3) The major cash received relating to other investing activities
In RMB Yuan
Item Amount
Others 2,401,804.55
Total 2,401,804.55
(4) The major cash paid relating to other investing activities
In RMB Yuan
Item Amount
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Disposal of subsidiary equity 104,231,229.20
Total 104,231,229.20
(5) The major cash received relating to other financing activities
In RMB Yuan
Item Amount
Redemption of the deposit for acceptance 330,073,299.87
Total 330,073,299.87
(6) The major cash paid relating to other financing activities
Item Amount
Payment of acceptance billsother 129,678,677.47
Others 12,249,709.00
Total 141,928,386.47
54. 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 2,601,622,809.19 -2,244,061,428.35
Add: credit impairment loss 23,300,119.01 9,529,733.66
Add: provision for assets impairment 208,242,617.71 152,676,538.06
Depreciation of fixed assets, oil and gas assets, productive
1,341,780,516.22 1,412,926,235.60
biological assets
Amortization of intangible assets 514,642,717.04 485,234,277.39
Amortization of long-term deferred expense 2,725,128.43 1,190,008.24
Disposal loss/(income) on fixed assets, intangible assets and
-33,428,646.97 -9,392,459.28
others long-term assets(with “-” for gains)
Loss of fair value change (revenue is marked with "-") -1,753,674,697.00 -40,337,151.27
Financial expense(with “-” for gains) 20,373,153.36 28,216,059.24
Investment loss(with “-” for gains) -3,000,803,663.99 108,336,709.94
Decrease in deferred tax assets(with “-” for gains) -97,937,262.08 91,826,434.28
Increase in deferred tax debts(with “-” for gains) 261,161,484.17 -6,753,936.40
Decrease in inventory(with “-” for gains) -664,950,981.62 -787,955,680.07
Decrease in operating receivables(with “-” for gains) 4,982,533,829.23 3,615,249,233.77
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Increase in operating payables(with “-” for gains) 2,756,790,261.85 1,406,660,271.88
Others -249,790,690.95 -3,081,215.74
Net cash flows from operating activities 6,912,586,693.60 4,220,263,630.95
2. Investment and financing activities involving no cash
incomings / outgoings
3. Movement of cash and cash equivalents
Ending balance of cash equivalents 16,821,119,181.24 10,147,607,013.29
Less: beginning balance of cash equivalents 9,360,474,674.89 9,648,153,614.80
Net increase in cash and cash equivalents 7,460,644,506.35 499,453,398.49
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash
Including: Cash on hand 14,977.41 18,280.08
Bank deposits that can be readily used 16,821,104,203.83 9,360,456,394.81
II. Ending balance of cash and cash equivalents 16,821,119,181.24 9,360,474,674.89
VIII. The change of consolidation scope
1. Business combination not under the Same Control
The company originally held 50% of the equity of Changan Weilai New Energy Automobile Technology Co., Ltd. (hereinafter
referred to as "Changan Weilai"), and was able to exercise joint control over it, accounting for the equity method. In 2020, the
company will increase its investment in Changan Weilai through cash increase and other methods. The transaction date is June 4,
2020. After the capital increase is completed, the company holds a total of 95.38% of the equity of Changan Weilai and confirmed
goodwill of RMB 32,782,190.41.
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
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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
Chongqing Changan Automobile 100%
Chongqing Sales 9900
Software Technology Co., Ltd.
(2) Subsidiary clearing during the reporting period
□ Applicable √ Not Applicable
Subsidiary clearing during the reporting period and related circumstances:
□ Applicable √ Not Applicable
(3) Other reduced subsidiaries during the reporting period
Chongqing Changan New Energy Automobile Technology Co., Ltd. introduced a strategic investor. The company lost control over it,
and its shareholding ratio was reduced to 48.96%. It was no longer included in the scope of consolidation and was subsequently
measured by the equity method.
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 Lease 8,850 100.00
Technology Co., Ltd.
Chongqing Changan Special Automobile
Chongqing Chongqing Sales 2,000 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 2,900 100.00 -
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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 -
Changan Japan Designing Center Co.,Ltd Habin Habin R&D JPY2,000 100.00 -
Troy, Troy,
Changan United States R&D Center Co.,
United United R&D USD154 100.00 -
Ltd.
states states
Moscow, Moscow,
Changan Automobile Russia Co., Ltd. Sales RUB220,382 100.00 -
Russia Russia
St. Paul, St. Paul,
Changan Brazil Holdings Limited Sales BRL100 100.00 -
Brazil Brazil
Shenzhen Changan New Energy Automobile
Shenzhen Shenzhen Sales 14,800 100.00 -
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
Nanjing Nanjing Lease 500 100.00 -
Technology Co., Ltd.
Nanjing Changan New Energy Automobile
Nanjing Nanjing Sales 5,000 100.00
Sales & Service Co., Ltd.
Fuzhou Fuqing Changan New Energy
Fuzhou Fuzhou Sales 200 100.00 -
Automobile Sales & Service 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.
Chongqing Chehemei Technology Co., Ltd. Chongqing Chongqing Sales 1,000 100.00
Chongqing Changan Automobile Software
Chongqing Chongqing R&D 9900 100.00 -
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)
Chongqing Changan Suzuki Automobile Co.,
Chongqing Chongqing Manufacturing 133,764 100.00
Ltd.
Zhenjiang Demao Hairun Equity Investment Financial
Zhenjiang Zhenjiang 150,001 100.00
Fund Partnership (Limited Partnership) industry
Changan Weilai New Energy Automobile Nanjing Nanjing Manufacturing 18800 95.38
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Sales & Service Co., Ltd.
III. The subsidiary formed by business combination under common control
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
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, 2020, 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
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 Mazda Engine Co.,
Nanjing Nanjing ofautomobiles, and USD20,996 50.00 - Equity
Ltd. (Note 1)
components
Manufacture and sale
Jiangling Investment Co., Ltd. Nanchang Nanchang ofautomobiles, and 100,000 50.00 - Equity
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.
Chongqing Changan Kuayue Sale of Changan
Chongqing Chongqing 300 34.30 - Equity
Automobile Sales Co., Ltd. Kuayue’ s automobile
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and agricultural cars
and components.
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 476,843.1 28.66 - Equity
ltd. construction loans of
exhibition hall,spare
parts loans and
maintenance equipment
loans, etc.
Software and hardware
Hainan Anxinxing technology
Chengmai Chengmai
Information Technology Co., development, technical 3,000 30.00 - Equity
County County
Ltd. consulting, auto parts
sales
Car sales, leasing,
Nanjing Chelai Travel software technology
Nanjing Nanjing 10,000 10.00 - Equity
Technology Co., Ltd. development, technical
services
Technology
development
Hunan Guoxin Semiconductor consulting, technical
Zhuzhou Zhuzhou 50,000 25.00 - Equity
Technology Co., Ltd. services, technology
transfer in the field of
power semiconductors
Technology
development, technical
Beijing Wutong Chelian
Beijing Beijing consulting, technical 20,000 - - Equity
Technology Co., Ltd.
services, technology
transfer
Anhe (Chongqing) Equity
Equity investment
Investment Fund Management Chongqing Chongqing 1,000 - - Equity
management
Co., Ltd.
Hangzhou Chelizi Intelligent
Hangzhou Hangzhou Car travel service 630 - - Equity
Technology Co., Ltd.
Manufacture and sale
Pakistan Master Motors Co., Lahore, Lahore,
ofautomobiles, and PKR75,000 30,000 Equity
Ltd. Pakistan Pakistan
components
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Manufacture and sale
Jiangling Holding Co., Ltd. Nanchang Nanchang ofautomobiles, and - Equity
200,000 25.00
components
Equity investment,
Nanjing Leading Equity
Nanjing Nanjing venture capital 976,000 15.00 - Equity
Investment Partnership
investment
Nanjing Leading Equity
Equity investment
Investment Management Co., Nanjing Nanjing 1,000 16.39 - Equity
management
Ltd.
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
Financial Assets Measured at
Measured at fair value and
Fair Value and Their Changes
2019.6.30 Measured at amortized cost its changes are included in
Included in Current Profits and
other comprehensive income
Losses
Cash 17,326,421,237.43
Transactional financial assets 4,173,150,897.00
Notes receivable 21,629,277,146.93
Accounts receivable 2,299,982,425.41
Other receivables 1,042,027,106.65
Other current assets 315,431,147.57
Investment in other equity
734,506,100.00
instruments
Total 4,173,150,897.00 42,613,139,063.99 734,506,100.00
In RMB Yuan
Financial assets measured at
Financial assets measured at fair
fair value with changes
value and whose changes are Financial assets measured at
2019.12.31 included in other
included in the current profit and amortized cost
comprehensive income
loss (standard requirements)
(designated)
Cash - 10,066,171,353.48 -
Transactional financial
2,419,476,200.00 - -
assets
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Notes receivable - 26,805,635,587.19 -
Accounts receivable - 838,314,076.82 -
Other receivables - 3,731,755,992.46 -
Other current assets - 317,546,789.66 -
Investment in other equity
- - 734,506,100.00
instruments
Total 2,419,476,200.00 41,759,423,799.61 734,506,100.00
Financial liabilities
In RMB Yuan
2020.6.30 2019.12.31
Short-term loans 365,525,472.30 229,580,000.00
Notes payable 17,021,001,941.49 13,430,543,294.23
Accounts payable 18,206,448,534.41 18,905,725,271.50
Other payables 3,074,351,444.31 4,809,918,141.45
Long-term loan 1,555,300,000.00 55,300,000.00
Total 40,222,627,392.51 37,431,066,707.18
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2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2020, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable
is RMB 991,651,260.00 (December 31, 2019: RMB 1,894,125,685.18). On June 30, 2020, its maturity date is 1 to 6 months.
According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has the
right to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its
risks and rewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the related
accounts payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book
value. The Group believes that continued involvement in fair value is not significant.
In the first half of 2020, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in
the proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition
thereof. Endorsements occur roughly and evenly during the year.
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.
Since the counterparties of monetary funds and bank acceptance bills receivable are banks with good reputation and high credit ratings, these financial
instruments have low credit risk.
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 2020, 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 30 June 2020, among the Group’s collections with specific credit risk, 63.54% of accounts receivables of
the Group are due from top five clients. The Group does not hold any gage from or enhance credit limit to these clients.
Credit Risk Increasing the Judgment Criteria Significantly
The Group assesses whether the credit risk of the relevant financial instruments has increased significantly since the initial
confirmation on each balance sheet day. In determining whether credit risk has increased significantly since the initial confirmation,
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the Group considers that reasonable and valid information, including qualitative and quantitative analysis based on the Group's
historical data, external credit risk rating and forward-looking information, can be obtained without unnecessary additional costs or
efforts. Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the Group
compares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial confirmation date
to determine the change of default risk of financial instruments during the expected lifetime.
When triggering one or more of the following quantitative and qualitative criteria, the Group believes that the credit risk of financial
instruments has increased significantly:
Quantitative criteria are that the probability of default of the remaining duration of the reporting day rises by more than a certain
percentage compared with the initial confirmation
Qualitative criteria include major adverse changes in the debtor's business or financial situation, early warning customer lists, etc.
The upper limit indicator is that the debtor's contract payments (including principal and interest) are overdue for more than [30] days.
Other financial assets of the Group include monetary funds, sellable financial assets, other receivables, etc. The credit risk of these
financial assets originates from the default of the counterparty, and the maximum risk exposure equals the book value of these
instruments. The Group faces no credit risk in this year due to the provision of financial guarantees.
Definition of assets with impaired credit
In order to determine whether credit impairment occurs, the defining criteria adopted by the Group are consistent with the internal
objectives of credit risk management for relevant financial instruments, taking into account quantitative and qualitative indicators.
When assessing whether the debtor has suffered credit impairment, the Group mainly considers the following factors:
Major financial difficulties occur to the issuer or debtor;
The debtor breaches the contract, such as defaulting of the interest or overdue principal, etc.
The creditor gives the debtor concessions in no other case for economic or contractual considerations related to the debtor's financial
difficulties;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial assets;
Purchase or derivation of a financial asset at a substantial discount reflects the credit losses.
Credit impairment of financial assets may be caused by the interaction of multiple events, not necessarily by separate identifiable
events.
Parameters for Measuring Expected Credit Loss
Depending on whether credit risk has increased significantly and whether credit impairment has occurred, the Group measures
impairment provision for different assets by anticipated credit losses for 12 months or the whole life period, respectively. The key
parameters of anticipated credit loss measurement include default probability, default loss rate and default risk exposure. Considering
the quantitative analysis and forward-looking information of historical statistics (such as counterparty ratings, guarantees and
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collateral types, repayment methods, etc.), the Group establishes a default probability, default loss rate and default risk exposure
model.
The relevant definitions are as follows:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12 months
or throughout the remaining period. The default probability of the group is adjusted based on the results of XX model, and
forward-looking information is added to reflect the default probability of the debtor under the current macroeconomic environment.
The default loss rate refers to the group's expectation of the extent of loss from exposure to default risk. According to the type of
counterparty, the way and priority of recourse, and the different collateral, the loss rate of breach of contract is also different. The
default loss rate is the percentage of risk exposure loss at the time of default, which is calculated on the basis of the next 12 months
or the whole duration.
The default risk exposure is the amount that the group should be repaid in the event of default in the next 12 months or throughout
the remaining period.
Prospective information
The assessment of significant increase in credit risk and the calculation of anticipated credit losses involve forward-looking
information. Through historical data analysis, the Group identifies key economic indicators affecting credit risk and expected credit
loss of various business types.
The impact of these economic indicators on default probability and default loss rate varies with different business types. In this
process, the Group applies expert judgment to forecast these economic indicators annually based on the results of expert judgment,
and determines the impact of these economic indicators on default probability and default loss rate through [regression analysis].
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 30 June 2019, 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.
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In 30 June, 2019, the Group only has limited 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 operated 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 transactional financial investments
(Note VII 2) as at 30 June 2020. The Group’s listed investments are listed on the Shanghai and Shenzhen 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.
Carrying amount of equity
Change in fair value Increase/(decrease) in equity
investments
2020.6.30
Shanghai- Transactional
162,945,000.00 5% 6,925,162.50
financial assets
Shanghai- Transactional
162,945,000.00 -5% -6,925,162.50
financial assets
Shenzhen-Transactional
4,010,205,897.00 5% 170,433,750.62
financial assets
Shenzhen-Transactional
4,010,205,897.00 -5% -170,433,750.62
financial assets
2019.12.31
Shanghai- Available for sale 184,245,000.00 5% 7,830,412.50
Shanghai- Available for sale 184,245,000.00 -5% -7,830,412.50
Shenzhen- Available for sale 2,235,231,200.00 5% 94,997,326.00
Shenzhen- Available for sale 2,235,231,200.00 -5% -94,997,326.00
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 2019 and 30, June 2020.
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The Group’s leverage ratio on the balance sheet date is as follows:
30 June 2020 31 December 2019
Leverage ratio 54.70% 54.99%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2020
In RMB Yuan
Input measured at fair value
Quoted price in active Important and Important but unobservable
market observable input input Total
(The first level) (The second level) (The third level)
Transactional financial assets 4,173,150,897.00 4,173,150,897.00
Other equity instruments 734,506,100.00 734,506,100.00
Total 4,173,150,897.00 734,506,100.00 4,907,656,997.00
December 31, 2019
In RMB Yuan
Input measured at fair value
Quoted price in active Important and observable Important but
market input unobservable input (The Total
(The first level) (The second level) third level)
Transactional financial
184,245,000.00 2,235,231,200.00 - 2,419,476,200.00
assets
Other equity instruments - - 734,506,100.00 734,506,100.00
Total 184,245,000.00 2,235,231,200.00 734,506,100.00 3,153,982,300.00
2. Fair value valuation
The management has assessed the monetary funds, notes receivable and accounts receivable, other receivables, short-term loans,
other payables, bills payable and accounts payable. The fair value is equal to the book value because the remaining period is not long.
The fair value of financial assets and financial liabilities is determined by the amount of voluntarily exchange of assets or debt
settlement between the parties to the transaction in a fair transaction, rather than the amount of money that is forced to sell or
liquidate.
Long-term borrowings and long-term borrowings due within one year are determined using the discounted future cash flow method
to determine the fair value, using the market yields of other financial instruments with similar contractual terms, credit risk and
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remaining maturity as the discount rate. On June 30, 2020 the risk assessment of long-term borrowings and long-term borrowings
due within one year was not significant.
The equity instruments listed by the Company include unrestricted ordinary shares and restricted shares. The unrestricted ordinary
shares investment determines the fair value by market quotation, and the restricted stock investment uses the discounted valuation
model to estimate the fair value. We believe that the fair value and its changes estimated by valuation techniques are reasonable and
are also the most appropriate value on the balance sheet date.
XII. Related parties and related party transactions
1. Parent company of the Company
Proportion of Proportion of
Parent company Place of registration Registered capital Nature of the business shares in the voting rights in
Company (%) the company (%)
China Changan Manufacture and sale of
Automobile Group Beijing 6,092,273,400.00 automobiles, engine, and 22.53% 22.53%
Co ,Ltd. components
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX.3 Stake in other entities.
4. Other related parties
Other related parties Relationship
Chongqing Qingshan Transmission Sales Co., Ltd. Subordinate company of South Industries
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Subordinate company of South Industries
Chongqing Changrong Machinery Co., Ltd. Subordinate company of South Industries
Chengdu Lingchuan Special Industry Co., Ltd. Subordinate company of South Industries
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Subordinate company of South Industries
Chongqing Changfeng Jiquan Machinery Co., Ltd. Subordinate company of South Industries
Chongqing Construction Tongda Industrial Co., Ltd. Subordinate company of South Industries
Yunnan Xiyi Industries Co., Ltd. Subordinate company of South Industries
Chongqing Shangfang Auto Parts Co., Ltd. Subordinate company of South Industries
120
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Other related parties Relationship
Chongqing Dajiang Xinda Vehicle Co., Ltd. Subordinate company of South Industries
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Subordinate company of South Industries
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Subordinate company of South Industries
China South Industries Group Finance Co., Ltd. Subordinate company of South Industries
Southwest Ordnance Industry Corporation Subordinate company of South Industries
Chengdu Wanyou Filter Co., Ltd. Subordinate company of South Industries
Chongqing Yihong Engineering Plastic Products Co., Ltd. Subordinate company of South Industries
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Subordinate company of South Industries
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Subordinate company of South Industries
Chongqing Nexteer Steering System Co., Ltd. Subordinate company of South Industries
Chongqing Dajiang Jiexin Forging Co., Ltd. Subordinate company of South Industries
Chongqing Jialing Yimin Special Equipment Co., Ltd. Subordinate company of South Industries
Chengdu Guangming Tianzhong Environmental Technology Co., Ltd. Subordinate company of South Industries
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Subordinate company of South Industries
Chongqing Changan Industry (Group) Co., Ltd. Subordinate company of South Industries
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. Subordinate company of South Industries
Chongqing Changan Real Estate Development Co., Ltd. Subordinate company of Changan Industry
Chongqing Changan Construction Engineering Co., Ltd. Subordinate company of Changan Industry
Chongqing Changan Property Management Co., Ltd. Subordinate company of Changan Industry
China Changan Automobile Group Co., Ltd. Parent company
China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch China Changan Branch
Sichuan Jian'an Industry Co., Ltd. Subordinate company of China Changan
Southern Inte Air Conditioning Co., Ltd. Subordinate company of China Changan
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. Subordinate company of China Changan
Chengdu Huachuan Denso Co., Ltd. Subordinate company of China Changan
Chongqing Automotive Air Conditioner Co., Ltd. Subordinate company of China Changan
Southern Trina Chassis Systems Co., Ltd. Subordinate company of China Changan
Chongqing Changan Minsheng Logistics Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Longrui Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Longxing Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Trading Co., Ltd. Subordinate company of China Changan
121
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Other related parties Relationship
Hafei Automobile 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 Showa Auto Parts Co., Ltd. Subordinate company of China Changan
Harbin Dongan Automobile Power Co., Ltd. Subordinate company of China Changan
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. Subordinate company of China Changan
Zhonghui Fortis (Hong Kong) Investment Co., Ltd. Subordinate company of China Changan
China North Industries Group Financial Leasing Co., Ltd. Subordinate company of China Changan
Wanyou Automobile Investment Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Automobile Trading Service Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Economic Development Co., Ltd. Subordinate company of China Changan
Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. Subordinate company of China Changan
.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
Guangxi Wanyou Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Nanning Wanyou 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
Southern Faurecia Auto Parts Co., Ltd. Subordinate company of China Changan
Chengdu Wanyou Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Bazhong Wanyou Automobile Sales Service Co., Ltd. Subordinate company of China Changan
Harbin Broadcom Auto Parts Manufacturing Co., Ltd. Subordinate company of China Changan
China Changan Automobile Group Hefei Investment Co., Ltd. Subordinate company of China Changan
5. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
122
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Whether
it exceeds
Nature of the Approved Prior-period
Related parties Current amount the
transaction transaction amount amount
transactio
n amount
Purchase of
Changan Ford Automobile Co., Ltd. 4,825,291.25 4,161,704.83 Yes 1,290,483.83
spare parts
Purchase of
Changan Mazda Automobile Co., Ltd. - 24,596,000.00 No -
spare parts
Purchase of
Changan Auto Finance Co., Ltd. - 1,100,000.00 No -
spare parts
Purchase of
Hangzhou Cherizi Intelligent Technology
spare parts、 32,858.40 2,477,105.19 No 3,150,482.79
Co., Ltd.
Accept service
Chongqing Changan New Energy Purchase of
292,316,059.70 2,913,152,000.00 No -
Automobile Technology Co., Ltd. spare parts
Chongqing Qingshan Transmission Sales Purchase of
3,951,626.52 10,380,349.56 No 3,559,602.32
Co., Ltd. spare parts
Hubei Xiaogan Huazhong Automotive
Accept service 38,549,124.98 100,294,692.47 No 46,683,372.83
Lamp Co., Ltd.
Chongqing Changrong Machinery Co.,
Accept service 68,484,512.99 87,999,257.12 No 6,433,171.02
Ltd.
Chengdu Lingchuan Special Industry Co., Purchase of
- 81,402,637.59 No 9,930,016.99
Ltd. spare parts
Chengdu Lingchuan Vehicle Fuel Tank
Accept service 4,856,159.30 24,721,523.51 No 18,186,753.45
Co., Ltd.
Chongqing Changfeng Jiquan Machinery Purchase of
39,562.52 13,116,014.09 No 10,396,114.98
Co., Ltd. spare parts
Chongqing Construction Tongda Purchase of
15,227,209.83 37,741,834.31 No -
Industrial Co., Ltd. spare parts
Purchase of
Yunnan Xiyi Industry Co., Ltd. 31,247,072.00 85,283,366.75 No 30,665,985.08
spare parts
Chongqing Shangfang Auto Parts Co., Purchase of
18,227,944.17 46,753,393.44 No 15,447,216.43
Ltd. spare parts
Chongqing Dajiang Xinda Vehicle Co., Purchase of
- 9,208.73 No 7,009,231.20
Ltd. spare parts
Chongqing Dajiang Yuqiang Plastic Purchase of
60,582,775.09 181,289,169.09 No 70,660,688.47
Products Co., Ltd. spare parts
Chongqing Jianshe Vehicle Air Purchase of
50,801,423.79 120,259,712.43 No 45,884,509.86
Conditioner Co., Ltd. spare parts
123
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Whether
it exceeds
Nature of the Approved Prior-period
Related parties Current amount the
transaction transaction amount amount
transactio
n amount
Purchase of
Chengdu Wanyou Filter Co., Ltd. 47,326,318.61 110,217,592.57 No 56,809,638.72
spare parts
Chongqing Yihong Engineering Plastic Purchase of
1,785,587.35 6,841,082.30 No 3,943,111.25
Products Co., Ltd. spare parts
Purchase of
Beijing Beiji Electromechanical Industry
spare parts、 262,158.45 697,033.72 No 21,611.25
Co., Ltd.
Accept service
Chengdu Jialing Huaxi Optical Precision
Accept service 6,983,371.89 15,441,943.93 No 6,120,347.20
Machinery Co., Ltd.
Chongqing Nexteer Steering System Co.,
Accept service 303,123,612.34 850,598,822.58 No 319,878,978.48
Ltd.
Chongqing Dajiang Jiexin Forging Co.,
Accept service 1,330,537.16 2,830,268.77 No 1,178,761.66
Ltd.
Chengdu Guangming Tianzhong
Accept service - - No (1,885.21)
Environmental Technology Co., Ltd.
Chongqing Xiyi Automobile Connecting
Accept service (1,571.72) - No (5,769.12)
Rod Co., Ltd.
Chongqing Changan Industry (Group) Purchase of
2,646,670.74 10,123,723.73 No 348,568.01
Co., Ltd. spare parts
Hubei Huazhong Marelli Automotive Purchase of
379,667,416.38 354,480,088.86 Yes -
Lighting Co., Ltd. spare parts
Chongqing Changan Construction Purchase of
- 190,379,474.50 No 7,313,785.24
Engineering Co., Ltd. spare parts
Chongqing Changan Property
Accept service 2,933,009.46 4,252,500.00 No 1,812,064.04
Management Co., Ltd.
China Changan Automobile Group Co., Purchase of
Ltd. Chongqing Qingshan Transmission spare parts、 1,091,053,146.70 1,956,447,808.69 No 455,343,757.53
Branch Accept service
Sichuan Jian'an Industry Co., Ltd. Accept service 300,829,143.28 905,645,453.27 No 353,770,028.01
Southern Inte Air Conditioning Co., Ltd. Accept service 173,331,986.97 414,801,618.97 No 153,661,141.06
Sichuan Ningjiang Shanchuan Machinery
Accept service 97,803,118.73 207,425,439.69 No 51,016,595.30
Co., Ltd.
Chengdu Huachuan Denso Co., Ltd. Accept service 196,376,880.72 402,906,003.30 No 130,426,180.96
Southern Trina Chassis Systems Co., Ltd. Accept service 307,409,807.58 602,765,517.99 No 202,875,095.90
Chongqing Changan Minsheng Logistics Accept service 865,998,486.41 2,728,794,918.17 No 827,152,859.32
124
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Whether
it exceeds
Nature of the Approved Prior-period
Related parties Current amount the
transaction transaction amount amount
transactio
n amount
Co., Ltd.
Chengdu Wanyou Xiangyu Automobile
Accept service 426,011.37 865,631.43 No 248,627.10
Sales Service Co., Ltd.
Chengdu Wanyou Trading Co., Ltd. Accept service 10,555.36 82,713.89 No 18,514.24
Chongqing Anfu Automobile Marketing Purchase of
43,818.58 - Yes -
Co., Ltd. spare parts
China Changan Automobile Group
Accept service 6,413.27 51,612.68 No 25,144.55
Tianjin Sales Co., Ltd.
Chengdu Ningjiang Showa Auto Parts
Accept service 43,467,720.96 130,921,565.82 No 47,772,865.85
Co., Ltd.
Harbin Dongan Automobile Power Co., Purchase of
451,467,256.21 1,063,183,700.68 No 420,102,474.82
Ltd. spare parts
Harbin Dongan Automobile Engine Purchase of
417,266,451.54 1,260,355,536.15 No 353,143,739.85
Manufacturing Co., Ltd. spare parts
Chengdu Wanyou Automobile Trading Purchase of
411,726.27 1,566,868.08 No 464,001.50
Service Co., Ltd. spare parts
Chongqing Wanyou Economic Purchase of
571,494,801.82 583,856,955.71 No 134,932,176.36
Development Co., Ltd. spare parts
Yunnan Wanyou Automobile Sales Purchase of
780,899.66 3,099,140.81 No 1,084,974.53
Service Co., Ltd. spare parts
Guizhou Wanyou Automobile Sales Purchase of
655,606.26 2,661,096.18 No 986,717.54
Service Co., Ltd. spare parts
Yunnan Xiangyu Automobile Sales Purchase of
79,915.55 361,697.69 No 124,427.22
Service Co., Ltd. spare parts
Panzhihua Wanyou Automobile Sales Purchase of
90,562.92 219,811.59 No 13,092.15
Service Co., Ltd. spare parts
Ya'an Wanyou Automobile Sales Service Purchase of
112,581.31 390,845.20 No 128,960.48
Co., Ltd. spare parts
Chongqing Wanyou Ducheng Purchase of
274,639.05 1,034,263.79 No 327,791.37
Automobile Sales Service Co., Ltd. spare parts
Chongqing Wanyou Xingjian Automobile Purchase of
160,585.36 699,496.18 No 257,093.48
Sales Service Co., Ltd. spare parts
Luzhou Wanyou Automobile Service Co., Purchase of
84,600.36 138,350.93 No 20,198.04
Ltd. spare parts
125
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Whether
it exceeds
Nature of the Approved Prior-period
Related parties Current amount the
transaction transaction amount amount
transactio
n amount
Purchase of
Southern Faurecia Auto Parts Co., Ltd. 200,998,771.72 421,007,240.46 No 114,560,039.57
spare parts
Bazhong Wanyou Automobile Sales Purchase of
41,138.48 52,948.05 No 14,698.71
Service Co., Ltd. spare parts
Harbin Broadcom Auto Parts
Purchase of
Manufacturing Co., Ltd.Changan Ford - 167,559.70 No -
spare parts
Automobile Co.,Ltd.
Total 6,055,875,357.64 15,970,104,295.17 3,915,188,036.21
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
Note：The company calculated the actual amount of related party transactions according to the related parties under the same control
of the South Group, and compared with the transaction amount approved at the beginning of the year.
(2) Goods sold and services offered
In RMB Yuan
Related parties Nature of the transaction Current amount Prior-period Amount
Changan Ford Automobile Co., Ltd. Sales of spare parts、staff support 743,941.88 856,081.97
Changan Mazda Automobile EngCo.,
Sales of spare parts、staff support 4,036,655.18 2,683,010.71
Ltd.
Changan Mazda Engine Co., Ltd. Sales of spare parts、staff support - 12,830.19
Nanjing Chelai Travel Technology Co.,
Sales of spare parts - 50,442.48
Ltd.
Chongqing Changan Kuayue
Training fee 137,603.78 5,913.00
Automobile Co., Ltd.
Hangzhou Chelizi Intelligent
Car rental income - 8,193,799.97
Technology Co., Ltd.
Chongqing Changan New Energy
Income from trademark right 972,051,413.45 -
Automobile Technology Co., Ltd.
Chongqing Changan Industrial (Group)
Sales of spare parts - 124,339.62
Co., Ltd.
Chengdu Lingchuan Special Industry
Electricity fee - 2,011.39
Co., Ltd.
Chengdu Lingchuan Vehicle Fuel Tank
Sales of spare parts 1,668,185.97 1,362,120.82
Co., Ltd.
Yunnan Xiyi Industry Co., Ltd. Sales of vehicles and spare parts 2,559,166.80 2,876,531.50
Chongqing Shangfang Auto Parts Co.,
Sales of spare parts - 20,037.74
Ltd.
Chongqing Dajiang Yuqiang Plastic Sales of vehicles and spare parts 558,413.01 345,391.14
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Related parties Nature of the transaction Current amount Prior-period Amount
Products Co., Ltd.
Chongqing Jianshe Vehicle Air
Sales of vehicles and spare parts - 12,037.74
Conditioner Co., Ltd.
Ordnance Equipment Group Finance
Sales of vehicles and spare parts - 1,260,010.87
Co., Ltd.
Chengdu Wanyou Filter Co., Ltd. Sales of spare parts、Training fee - 76,460.18
Chongqing Yihong Engineering Plastic
Electricity fee - 943.30
Products Co., Ltd.
Chongqing Changan Industry (Group)
Sales of vehicles and spare parts - 312,427.84
Co., Ltd.
Chongqing Changan Construction
Sales of vehicles and spare parts - 19,563.79
Engineering Co., Ltd.
China Changan Automobile Group Co.,
Ltd. Chongqing Qingshan Transmission Sales of vehicles and spare parts 1,579,125.47 270,959.66
Branch
Sichuan Ningjiang Shanchuan
Sales of vehicles 305,799.06 -
Machinery Co., Ltd.
Chongqing Changan Minsheng Logistics
Sales of vehicles and spare parts 507,924.04 9,676,923.83
Co., Ltd.
Chengdu Wanyou Xiangyu Automobile
Sales of spare parts 514,114,179.34 414,364,744.60
Sales Service Co., Ltd.
Chongqing Anfu Automobile Marketing
Sales of spare parts 7,627,054.89 34,296,238.49
Co., Ltd.
China Changan Automobile Group
Sales of spare parts 62,075,372.58 62,048,690.92
Tianjin Sales Co., Ltd.
Chengdu Ningjiang Showa Auto Parts
Sales of vehicles and spare parts - 559,797.07
Co., Ltd.
Harbin Dongan Automobile Power Co.,
Sales of vehicles and spare parts 31,887.37 6,860,735.86
Ltd.
Harbin Dongan Automobile Engine
Sales of vehicles and spare parts 23,028,367.10 11,294,757.38
Manufacturing Co., Ltd.
China North Industries Group Financial
Sales of vehicles and spare parts 77,547.17 -
Leasing Co., Ltd.
Wanyou Automobile Investment Co.,
Sales of vehicles and spare parts 264,690,859.01 194,731,627.80
Ltd.
Chengdu Wanyou Automobile Trading
Sales of vehicles and spare parts 190,745,183.84 173,518,730.23
Service Co., Ltd.
Chongqing Wanyou Economic
Sales of vehicles and spare parts 695,050,958.14 602,957,695.96
Development Co., Ltd.
Chongqing Wanyou Zunda Automobile
Sales of vehicles and spare parts 131,579,690.10 150,130,921.74
Sales Service Co., Ltd.
Yunnan Wanyou Automobile Sales Sales of vehicles and spare parts 437,318,866.83 309,384,958.88
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Related parties Nature of the transaction Current amount Prior-period Amount
Service Co., Ltd.
Guizhou Wanyou Automobile Sales
Sales of vehicles and spare parts 370,715,806.38 347,551,447.54
Service Co., Ltd.
Yunnan Xiangyu Automobile Sales
Sales of vehicles and spare parts 43,517,953.51 45,082,563.98
Service Co., Ltd.
Panzhihua Wanyou Automobile Sales
Sales of vehicles and spare parts 144,054.09 -
Service Co., Ltd.
Ya'an Wanyou Automobile Sales
Sales of vehicles and spare parts 252,146.29 -
Service Co., Ltd.
Chongqing Wanyou Ducheng
Sales of vehicles and spare parts 347,013.72 5,998.70
Automobile Sales Service Co., Ltd.
Chongqing Wanyou Xingjian
Sales of vehicles and spare parts 496,623.26 -
Automobile Sales Service Co., Ltd.
Luzhou Wanyou Automobile Service
Sales of vehicles and spare parts 284,227.69 -
Co., Ltd.
Chengdu Wanyou Automobile Sales
Sales of vehicles and spare parts (196,660.99) 3,373,560.20
Service Co., Ltd.
Bazhong Wanyou Automobile Sales
Sales of vehicles and spare parts 183,115.86 -
Service Co., Ltd.
China Changan Automobile Group Hefei
Sales of vehicles and spare parts 66,969,966.54 -
Investment Co., Ltd.
Total 3,793,202,441.36 2,384,324,307.09
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(3) Related-party leasing
Rent assets to related parties
In RMB Yuan
Type of leased Report period
Lessee Starting date Expiring date
assets recognized rental
Chongqing Changan Industrial (Group)
Building 2018.01.01 2032.12.31 3,283,373.71
Co., Ltd.
Chongqing Changan New Energy
Building 2020.01.01 2020.12.31 2,098,588.40
Automobile Technology Co., Ltd.
Chongqing Changan New Energy Battery
2020.01.01 2020.12.31 1,175,045.73
Automobile Technology Co., Ltd. workshop
Chongqing Changan Min Sheng
Building 2019.10.01 2020.09.30 601,461.41
Logistics Co., Ltd.
Rent assets from related parties
In RMB Yuan
128
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Report period
Type of
Lessor Starting date Expiring date recognized
leased assets
rental
(4) Other related transactions
Integrated service charges
In RMB Yuan
Same period of last
Related parties Nature of the transaction Report period Amount
period Amount
Payment of land rental fees 13,960,191.76 13,960,191.76
Payment of building rental fees 2,129,622.09 2,320,098.28
Changan Industries (Group)
Payment of utilities 62,495,905.46 41,936,461.05
Co. Ltd
Payment of fire fighting fees - -
Others 4,286,872.15 5,598,032.75
Total 82,872,591.46 63,814,783.84
Purchase of project materials
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Construction Co., Ltd 66,354,530.30 219,003,991.17
Chongqing Changan Min Sheng Logistics Co., Ltd. 1,646,984.15 510,059.11
Changan Industries (Group) Co. Ltd 17,522.13 6,163.00
Total 68,019,036.58 219,520,213.28
Staff expenses for technical supporting
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Changan Mazda Automobile Co.,Ltd. 7,021,656.61 7,242,531.36
Changan Ford Automobile Co.,Ltd. 9,057,020.82 10,419,283.74
Changan Mazda Engine Co., Ltd. - 833,481.46
Jiangling Holding Co., Ltd. - 884,649.40
Changan PSA Automobiles Co., Ltd. - 242,271.06
Hainan Anxinxing Information Technology Co., Ltd. - 652,302.36
129
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Total 16,078,677.43 20,274,519.38
Techonology development service charges
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Changan Ford Automobile Co.,Ltd. - 769,811.32
Harbin Dongan Auto Engine Co., Ltd. - 11,320,754.71
Total - 12,090,566.03
Collection of trademark use rights fees
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Kuayue Automobile Co., Ltd. 9,596,603.77 8,689,641.51
Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 5,495,658,697.16 5,352,685,473.98
Changan Automobile Finance Co., Ltd 3,500,000,000.00 1,200,000,000.00
In the first half of 2020, 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 1.81% and 2.89% respectively.
Borrowing
Short-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 330,000,000.00 200,000,000.00
Interest income of deferred payment
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Wanyou Automobile Investment Co., Ltd. 18,756.64 -
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 624,381.42 373,037.00
China Changan Automobile Group Tianjin Sales Co., Ltd. - 14,735.00
130
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Same period of last period
Related parties Report period Amount
Amount
Chengdu Wanyou Auto Trade Service Co., Ltd. 165,392.98 193,056.00
Yunnan Wanyou Automobile Sales & Service Co., Ltd. 54,715.93 349,378.00
Guizhou Wanyou Automobile Sales & Service Co., Ltd. 200,337.69 97,614.00
Guangxi Wanyou Automobile Sales & Service Co., Ltd. - 64,825.00
Nanning Wanyou Automobile Sales & Service Co., Ltd. - 34,018.00
Chongqing Wanyou Economic Development Co., Ltd. 81,141.59 153,555.00
Yunnan Xiangyu Auto Sales and Service Co., Ltd. - 78,469.00
China Changan Automobile Group Hefei Investment
20,224.78 -
Co., Ltd.
Total 1,164,951.03 1,358,687.00
6. Payment and receivables of related parties
Payment receivables of related listed companies
In RMB Yuan
Ending balance Beginning balance
Provision Provision
Items Related parties
Book balance for Book balance for
bad-debts bad-debts
Notes Harbin Dongan Automotive Engine
13,938,175.05 - 9,190,280.17 -
receivable Manufacturing Co., Ltd.
Notes
Wanyou Automobile Investment Co., Ltd. 2,191,420,000.00 - 2,602,280,000.00 -
receivable
Notes Chengdu Wanyou Automobile Trading
26,500,000.00 - 9,500,000.00 -
receivable Service Co., Ltd.
Notes Chongqing Wanyou Economic
15,000,000.00 - 8,000,000.00 -
receivable Development Co., Ltd.
Notes Guizhou Wanyou Automobile Sales and
16,500,000.00 - 3,500,000.00 -
receivable Service Co., Ltd
Subtotal 2,263,358,175.05 - 2,632,470,280.17 -
Account
Jiangling Holding Co., Ltd. 39,964,487.77 - 40,768,788.19 -
receivable
Account Chongqing Changan Minsheng Logistics
31,032,040.00 - 31,516,680.23 -
receivable Co., Ltd.
Account
Changan Ford Automobile Co., Ltd. 174,282.81 - 19,811,465.27 -
receivable
Account Changan Weilai New Energy Automobile - - 16,596,799.90 -
131
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Ending balance Beginning balance
Provision Provision
Items Related parties
Book balance for Book balance for
bad-debts bad-debts
receivable Technology Co., Ltd.
Account Chongqing Changan Crossing Vehicle Co.,
12,275,376.76 - 11,194,267.89 -
receivable Ltd.
Account Harbin Dongan Automobile Engine
5,077,565.84 - 9,855,355.88 -
receivable Manufacturing Co., Ltd.
Account
Changan Mazda Automobile Co., Ltd. - - 5,775,176.73 -
receivable
Account
Changan Mazda Engine Co., Ltd. - - 5,042,050.65 -
receivable
China Changan Automobile Group Co.,
Account
Ltd. Chongqing Qingshan Transmission 1,647,356.43 - 1,737,782.37 -
receivable
Branch
Account Chongqing Changan Industry (Group) Co.,
719,539.69 - 719,539.69 -
receivable Ltd.
Account Hainan Anxinxing Information Technology
- - 555,058.16 -
receivable Co., Ltd.
Nanning Wanyou Automobile Sales
Account
Service Co., Ltd. - - 13,398.00 -
receivable
Account Guangxi Wanyou Automobile Sales
- - 997.60 -
receivable Service Co., Ltd.
Account Chongqing Wanyou Economic
- - 50.00 -
receivable Development Co., Ltd.
Account
Changan Auto Finance Co., Ltd. 34,280.44 - - -
receivable
Account Chongqing Changan New Energy
1,125,261,727.03 - - -
receivable Automobile Technology Co., Ltd.
Subtotal 1,216,186,656.77 - 143,587,410.56 -
Other
Changan Ford Automobile Co.,Ltd. 124,312,677.99 - 124,312,677.99 -
receivable
Other Ordnance Equipment Group Finance Co.,
222,083.89 - - -
receivable Ltd.
Other Ordnance Equipment Group Finance Co.,
1,157,446.69 - 1,157,446.69 -
receivable Ltd.
Other Hafei Automobile Co., Ltd. 1,500,000.00 - 1,500,000.00 -
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Ending balance Beginning balance
Provision Provision
Items Related parties
Book balance for Book balance for
bad-debts bad-debts
receivable
Other
Changan Mazda Automobile Co., Ltd. - 8,505,710.03 -
receivable
Other Chongqing Changan Minsheng Logistics
- 2,000.00 -
receivable Co., Ltd.
Subtotal 127,192,208.57 - 135,477,834.71 -
Advanced Chongqing Changan New Energy
1,746,847.67 - - -
payment Automobile Technology Co., Ltd.
Advanced Sichuan Ningjiang Shanchuan Machinery
698.29 - - -
payment Co., Ltd.
Subtotal 1,747,545.96 - - -
Accounts payable to related parties of listed companies
In RMB Yuan
Beginning
Items Related parties Ending balance
balance
Notes
Chongqing Changan New Energy Automobile Technology Co., Ltd. 50,758,200.00 -
payable
Notes
Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. 14,190,000.00 10,780,000.00
payable
Notes
Chongqing Construction Tongda Industrial Co., Ltd. 9,790,000.00 1,830,000.00
payable
Notes
Chongqing Shangfang Auto Parts Co., Ltd. 13,430,000.00 4,290,000.00
payable
Notes
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. 76,250,000.00 53,810,000.00
payable
Notes
Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. 54,807,896.33 33,330,000.00
payable
Notes
Chengdu Wanyou Filter Co., Ltd. 13,590,000.00 21,280,000.00
payable
Notes
Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. 7,820,000.00 5,990,000.00
payable
Notes
Chongqing Nexteer Steering System Co., Ltd. 335,060,000.00 74,380,000.00
payable
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
Notes
Chongqing Changan Industry (Group) Co., Ltd. 1,052,750.94 -
payable
Notes
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. 35,970,000.00 20,220,000.00
payable
Notes
Chongqing Changan Construction Engineering Co., Ltd. 73,390,060.00 121,867,838.20
payable
Notes China Changan Automobile Group Co., Ltd. Chongqing Qingshan
481,590,000.00 2,340,000.00
payable Transmission Branch
Notes
Sichuan Jian'an Industry Co., Ltd. 8,900,000.00 9,040,000.00
payable
Notes
Southern Inte Air Conditioning Co., Ltd. 175,960,000.00 23,620,000.00
payable
Notes
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. 41,910,000.00 20,130,000.00
payable
Notes
Chengdu Huachuan Denso Co., Ltd. 3,970,000.00 5,250,000.00
payable
Notes
Southern Trina Chassis Systems Co., Ltd. 1,800,000.00 -
payable
Notes
Chongqing Changan Minsheng Logistics Co., Ltd. 245,490,874.09 208,474,669.94
payable
Notes
Chengdu Ningjiang Showa Auto Parts Co., Ltd. 53,630,000.00 33,410,000.00
payable
Notes
Harbin Dongan Automobile Power Co., Ltd. 448,020,000.00 456,350,000.00
payable
Notes
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. 272,510,000.00 215,280,000.00
payable
Notes
Southern Faurecia Auto Parts Co., Ltd. 10,900,000.00 10,430,000.00
payable
Notes
Chongqing Wanyou Economic Development Co., Ltd. - 85,000,000.00
payable
Notes
Chongqing Dajiang Jiexin Forging Co., Ltd. - 990,000.00
payable
Notes
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 6,530,000.00
payable
Notes
Chengdu Lingchuan Special Industry Co., Ltd. - 11,750,000.00
payable
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
Subtotal 2,430,789,781.36 1,436,372,508.14
Account
Changan Ford Automobile Co., Ltd. 2,205,450.09 -
payable
Account
Jiangling Holdings Co., Ltd. 102,373.73 54,252,872.36
payable
Account
Hangzhou Cherizi Intelligent Technology Co., Ltd. 47,430.00 10,300.00
payable
Account
Chongqing Changan New Energy Automobile Technology Co., Ltd. 51,067,341.49 -
payable
Account
Chongqing Qingshan Transmission Sales Co., Ltd. 4,688,757.02 6,000,654.43
payable
Account
Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. 20,321,529.68 16,125,402.98
payable
Account
Chongqing Changrong Machinery Co., Ltd. 31,588,885.68 34,631,661.73
payable
Account
Chengdu Lingchuan Special Industry Co., Ltd. 83,416.46 11,517,508.37
payable
Account
Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. 1,322,372.50 2,314,165.15
payable
Account
Chongqing Changfeng Jiquan Machinery Co., Ltd. 18,385.26 771,021.74
payable
Account
Chongqing Construction Tongda Industrial Co., Ltd. 12,686,425.28 13,392,905.91
payable
Account
Yunnan Xiyi Industry Co., Ltd. 10,359,553.43 10,260,364.91
payable
Account
Chongqing Shangfang Auto Parts Co., Ltd. 10,053,054.65 9,623,137.04
payable
Account
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. 22,871,520.77 43,490,517.76
payable
Account
Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. 23,175,345.06 36,717,236.76
payable
Account
Chengdu Wanyou Filter Co., Ltd. 24,267,680.72 14,735,390.09
payable
Account
Chongqing Yihong Engineering Plastic Products Co., Ltd. 635,885.86 2,483,796.69
payable
Account Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. 2,361,138.41 2,296,210.05
135
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
payable
Account
Chongqing Nexteer Steering System Co., Ltd. 262,870,488.08 275,441,045.49
payable
Account
Chongqing Dajiang Jiexin Forging Co., Ltd. 705,714.98 407,750.93
payable
Account
Chongqing Jialing Yimin Special Equipment Co., Ltd. 104,496.50 104,496.50
payable
Account
Chengdu Guangming Tianzhong Environmental Technology Co., Ltd. 83,175.03 83,175.03
payable
Account
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. 42,457.58 44,233.62
payable
Account
Chongqing Changan Industry (Group) Co., Ltd. 355,985.02 1,091,699.47
payable
Account
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. 131,231,660.26 124,726,255.34
payable
Account China Changan Automobile Group Co., Ltd. Chongqing Qingshan
232,087,750.72 394,961,436.10
payable Transmission Branch
Account
Sichuan Jian'an Industry Co., Ltd. 74,999,608.58 92,109,316.98
payable
Account
Southern Inte Air Conditioning Co., Ltd. 56,895,179.13 166,469,317.60
payable
Account
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. 18,709,148.33 9,726,316.79
payable
Account
Chengdu Huachuan Denso Co., Ltd. 40,851,167.54 37,881,398.09
payable
Account
Southern Trina Chassis Systems Co., Ltd. 128,293,897.03 113,131,244.68
payable
Account
Chongqing Changan Minsheng Logistics Co., Ltd. 10,442,349.66 77,014,716.44
payable
Account
Hafei Automobile Co., Ltd. 661,117.68 661,117.68
payable
Account
Chengdu Ningjiang Showa Auto Parts Co., Ltd. 28,498,953.39 49,157,712.35
payable
Account
Harbin Dongan Automobile Power Co., Ltd. 218,070,561.01 203,956,811.46
payable
Account Harbin Dongan Automobile Engine Manufacturing Co., Ltd. 133,347,777.10 228,154,563.74
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
payable
Account
Chongqing Wanyou Economic Development Co., Ltd. 216,078,209.48 75,873,758.78
payable
Account
Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. 9,264.78 -
payable
Account
Southern Faurecia Auto Parts Co., Ltd. 76,765,551.38 90,040,708.53
payable
Account
Chongqing Dajiang Xinda Vehicle Co., Ltd. - 4,267,143.49
payable
Account
Chongqing Automotive Air Conditioner Co., Ltd. - 205,041.51
payable
Account
Chongqing Changan Crossing Vehicle Co., Ltd. - 47,749.88
payable
Account
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. - 6,129.88
payable
Account
Changan Ford Automobile Co., Ltd. - 5,890.05
payable
2,204,192,176.3
Subtotal 1,848,961,059.35
8
Contract
Changan Mazda Automobile Co., Ltd. 1,423,660.83 -
liabilities
Contract
Changan Mazda Engine Co., Ltd. 3,256,185.92 -
liabilities
Contract
Chongqing Shangfang Auto Parts Co., Ltd. 3,980.00 3,980.00
liabilities
Contract China Changan Automobile Group Co., Ltd. Chongqing Qingshan
1.57 -
liabilities Transmission Branch
Contract
Chongqing Wanyou Automobile Sales Service Co., Ltd. 86,425.66 -
liabilities
Contract
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. 27,144,500.69 65,138,573.75
liabilities
Contract
Hafei Automobile Co., Ltd. 670,500.00 670,500.00
liabilities
Contract
Chongqing Anfu Automobile Marketing Co., Ltd. 2,180,268.00 1,507,840.00
liabilities
Contract China Changan Automobile Group Tianjin Sales Co., Ltd. 3,680,686.89 2,144,856.26
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
liabilities
Contract
Wanyou Automobile Investment Co., Ltd. 5,347,008.74 69,383,313.74
liabilities
Contract
Chengdu Wanyou Automobile Trading Service Co., Ltd. 7,890,116.87 39,526,387.91
liabilities
Contract
Chongqing Wanyou Economic Development Co., Ltd. 44,265,770.78 142,137,256.41
liabilities
Contract
Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. 7,282,961.81 755,716.55
liabilities
Contract
Yunnan Wanyou Automobile Sales Service Co., Ltd. 18,994,713.86 42,896,658.83
liabilities
Contract
Guizhou Wanyou Automobile Sales Service Co., Ltd. 27,977,493.85 52,269,285.08
liabilities
Contract
Yunnan Xiangyu Automobile Sales Service Co., Ltd. 1,971,343.67 5,542,733.67
liabilities
Contract
Panzhihua Wanyou Automobile Sales Service Co., Ltd. 2,173.15 -
liabilities
Contract
Ya'an Wanyou Automobile Sales Service Co., Ltd. 21,840.00 -
liabilities
Contract
Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. 87,279.35 -
liabilities
Contract
Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. 77,522.48 -
liabilities
Contract
Luzhou Wanyou Automobile Service Co., Ltd. 24,390.55 -
liabilities
Contract
Chengdu Wanyou Automobile Sales Service Co., Ltd. 500,317.00 1,489,422.47
liabilities
Contract
Bazhong Wanyou Automobile Sales Service Co., Ltd. 89,330.80 50,000.00
liabilities
Contract
Jiangling Holdings Co., Ltd. - 6,854,200.00
liabilities
Contract
China Changan Automobile Group Hefei Investment Co., Ltd. 4,776,515.65 4,033,352.74
liabilities
Contract
Changan Auto Finance Co., Ltd. - 41,300.00
liabilities
Contract Chongqing Changan Minsheng Logistics Co., Ltd. - 259.00
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
liabilities
Subtotal 157,754,988.12 434,445,636.41
Other
Yunnan Wanyou Automobile Sales Service Co., Ltd. 10,599.68 108,223.30
payables
Other
Guizhou Wanyou Automobile Sales Service Co., Ltd. 5,475.56 5,016.48
payables
Other
Panzhihua Wanyou Automobile Sales Service Co., Ltd. 13,793.08 16,219.40
payables
Other
Ya'an Wanyou Automobile Sales Service Co., Ltd. 1,853.44 12,267.46
payables
Other
Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. 3,116.82 5,889.92
payables
Other
Chongqing Changan Minsheng Logistics Co., Ltd. 442,398,207.89 191,519,531.45
payables
Other
Chongqing Changan Crossing Vehicle Co., Ltd. - 64,412,855.00
payables
Other
Chongqing Changan Industry (Group) Co., Ltd. 19,834,668.85 4,770,656.96
payables
Other
Chongqing Changan Construction Engineering Co., Ltd. 1,105,910.99 2,356,505.24
payables
Other
Chongqing Changan Property Management Co., Ltd. 4,656,723.41 1,655,478.59
payables
Other
Changan Ford Automobile Co., Ltd. - 1,461,694.00
payables
Other
Sichuan Jian'an Industry Co., Ltd. 6,188.00 579,179.33
payables
Other
Chongqing Wanyou Economic Development Co., Ltd. 23,882.15 415,466.55
payables
Other
Southern Inte Air Conditioning Co., Ltd. - 190,324.96
payables
Other
Changan Mazda Engine Co., Ltd. - 144,115.79
payables
Other
Chengdu Wanyou Filter Co., Ltd. 120,000.00 121,303.84
payables
Other
Nanning Wanyou Automobile Sales Service Co., Ltd. - 120,520.60
payables
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
Other
China Changan Automobile Group Tianjin Sales Co., Ltd. - 100,000.00
payables
Other
Harbin Dongan Automobile Power Co., Ltd. - 67,239.90
payables
Other
Southern Trina Chassis Systems Co., Ltd. 36,431.20 65,122.43
payables
Other
Chengdu Wanyou Automobile Trading Service Co., Ltd. - 58,295.80
payables
Other
Chengdu Huachuan Denso Co., Ltd. 31,591.08 51,037.08
payables
Other
Chongqing Dajiang Xinda Vehicle Co., Ltd. - 50,000.00
payables
Other
Guangxi Wanyou Automobile Sales Service Co., Ltd. - 48,424.07
payables
Other
Chengdu Lingchuan Special Industry Co., Ltd. - 26,343.16
payables
Other
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. - 20,493.00
payables
Other
Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. - 10,951.72
payables
Other
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. - 8,324.53
payables
Other
Luzhou Wanyou Automobile Service Co., Ltd. - 3,770.68
payables
Other
Bazhong Wanyou Automobile Sales Service Co., Ltd. - 2,683.74
payables
Other
Chengdu Wanyou Trading Co., Ltd. 816.23 1,176.14
payables
Other
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 800.00
payables
Other
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. - 389,785.41
payables
Other
Chongqing Nexteer Steering System Co., Ltd. - 307,910.00
payables
Other
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. 290,793.25 304,924.09
payables
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Beginning
Items Related parties Ending balance
balance
Other
Chongqing Anfu Automobile Marketing Co., Ltd. - 300,000.00
payables
Other
Chongqing Changrong Machinery Co., Ltd. - 299,999.63
payables
Other
Chongqing Changan New Energy Automobile Technology Co., Ltd. 177,488.10 -
payables
Other
Chongqing Changan Minsheng Logistics Co., Ltd. 20,000.00 -
payables
Other
Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. 550,000.00 -
payables
Other
Luzhou Wanyou Automobile Service Co., Ltd. 4,544.61 -
payables
Other
Southern Faurecia Auto Parts Co., Ltd. 254,250.00 -
payables
Subtotal 469,546,334.34 270,012,530.25
XIII. Share-based payments
1. General information
2020.06
The total amount of the employee services as a result of the share-based
payments
The equity settled share based payments are as follows:
2019.06
The accumulated amount of equity settled share-based payments included in
capital 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.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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.
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);
The 1 st
4 month after the grant date ROE≥15%
exercise 1/3 to the last trading day sinc The above indicators≥benchmark average, and ≥75
period e 36 month after the grant quartile
date △EVA>0;
The ratio of prime operating revenue to operating
revenue≥95%
2018 net profit growth rate based on 2015 averag
e growth rate ≥3.2%(growth amount equivalent to
The 1st trading day since 3
RMB10,507,000,000);
The 2nd 6 month after the grant date
ROE≥15%
exercise 1/3 to the last trading day sinc
The above indicators≥benchmark average, and ≥75
period e 48 month after the grant
quartile
date
△EVA>0;
The ratio of prime operating revenue to operating
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
revenue≥95%
2019 net profit growth rate based on 2015 averag
e growth rate ≥3.2%(growth amount equivalent to
The 1st trading day since 4 RMB10,844,000,000);
The 3 rd
8 month after the grant date ROE≥15%
exercise 1/3 to the last trading day sinc The above indicators≥benchmark average, and ≥75
period e 60 month after the grant quartile
date △EVA>0;
The ratio of prime operating revenue to operating
revenue≥95%
On the grant date, the fair value of the above stock options of the Company was RMB 139,527,600.00. As the
performance appraisal target of the first and second exercise periods of the stock option incentive plan of the
company has not reached the target, and a total of 21 incentive objects have respectively terminated the labor
contract with the company, the company no longer meets the stock option incentive conditions. On December 31,
2019, a total of 29.14 million stock options were cancelled. The share option fee confirmed by the company in
June 2019 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:
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 2020, the group has no investment commitment that has been signed but not yet fully fulfilled.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
2. Contingencies
By June 30th 2020, 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
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.
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,
144
Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
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)The aging analysis is as follow:
In RMB Yuan
Account receivable age Ending Beginning
Within 1 year 4,258,303,879.00 3,555,684,864.42
1 to 2 years 644,991,910.51 822,210,403.02
2 to 3 years 568,696,835.44 482,665,541.27
Over 3 years 360,166,448.23 256,419,059.60
Total 5,832,159,073.18 5,116,979,868.31
Bad debt provision -39,114,651.97 -22,709,502.59
5,793,044,421.21 5,094,270,365.72
(2) The changes in the provision for bad debts of accounts receivable are as follows
In RMB Yuan
Items Beginning balance Provision Decrease Ending balance
2020.06.30 22,709,502.59 16,405,289.98 140.60 39,114,651.97
2019.12.31 15,559,782.05 7,149,720.54 22,709,502.59
(3) Disclosure of accounts receivable
In RMB Yuan
Items Ending
Book balance Provision for bad-debts
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Amount (%) Amount (%)
Individual assessment of credit
expected loss and provision for bad 5,533,699,691.47 94.88 10,079,188.59 0.18
debts
Assess bad debt provision for
expected credit expected loss
298,459,381.71 5.12 29,035,463.38 9.73
according to credit risk
characteristics combination
Total 5,832,159,073.18 100.00 39,114,651.97 0.67
Beginning
Items
Book balance Provision for bad-debts
Amount (%) Amount (%)
Individual assessment of credit
expected loss and provision for bad 4,991,086,298.96 97.54
debts
Assess bad debt provision for 18.04
expected credit expected loss
125,893,569.35 2.46 22,709,502.59
according to credit risk
characteristics combination
Total 5,116,979,868.31 100.00 22,709,502.59 0.44
(4) The parent company's portfolio of expected credit losses based on credit risk assessment is as follows:
In RMB Yuan
Ending Beginning
Expected
Estimated book Lifetime Estimated book Lifetime
credit Expected credit
balance in expected credit balance in expected credit
loss rate loss rate (%)
default loss default loss
(%)
Within 1 year 262,887,578.65 2.66 6,990,427.49 90,224,930.90 2.49 2,248,850.10
1 to 2 years 65.00 10.82 7.03 26.00 22.04 5.73
2 to 3 years 10,885,166.00 34.02 3,703,548.10 18,843,871.50 32.27 6,080,101.72
3 to 4 years 12,760,271.43 50.27 6,415,180.13 4,898,440.32 50.10 2,454,244.41
4 to 5 years - - - - - -
Over 5 years 11,926,300.63 100.00 11,926,300.63 11,926,300.63 100.00 11,926,300.63
Total 298,459,381.71 9.73 29,035,463.38 125,893,569.35 18.04 22,709,502.59
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
（5）As of June 30, 2020, the top five accounts receivable totaled RMB 4,928,714,691.57, accounting for 84.51% of the total
accounts receivable (As of December 31, 2019, the top five accounts receivable totaled RMB 4,011,467,403.94 , Accounting for
78.40% of the total accounts receivable).
（6）As of June 30, 2020, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December
31, 2019: None)
2. Other receivables
(1)The aging analysis is as follow:
In RMB Yuan
Account receivable age Ending Beginning
Within 1 year 1,833,502,273.67 601,025,929.83
1 to 2 years 44,921,624.68 334,100,615.63
2 to 3 years 203,660,776.86 259,642.21
Over 3 years 9,493,155.47 9,493,155.47
Total 2,091,577,830.68 944,879,343.14
Bad debt provision -3,841,273.24 - 3,718,197.34
2,087,736,557.44 941,161,145.80
（2）Other receivables are classified by nature as follows:
In RMB Yuan
Items Ending Beginning
Equity transfer receivable 798,700,000.00
Subsidy 5,318,000.00 3,458,000.00
Loans to subsidiaries 1,077,303,980.00 640,557,716.20
Reserve fund 31,996,661.76 36,352,884.22
Asset disposal 5,789,491.11 23,424,046.17
Other receivables 168,628,424.57 237,368,499.21
Total 2,087,736,557.44 941,161,145.80
（3）The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetime
expected credit losses are as follows（Only for 2020）：
In RMB Yuan
Bad debt provision The first stage The second stage The second stage Total
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Expected credit Expected credit Expected credit
losses in the next loss for the entire loss for the entire
12 months life life
(Single evaluation) (Group evaluation)
Balance at the end of the previous year 1,095,164,331.54 1,614,084,422.33 2,850,000.87 2,712,098,754.74
Changes in accounting policies -157,274,027.00 -1,609,945,384.60 -1,767,219,411.60
Balance on January 1, 2020 937,890,304.54 4,139,037.73 2,850,000.87 944,879,343.14
In this period, Balance on January 1, 2020
--Transfer to the second stage -2,700,041.57 2,700,041.57
--Transfer to the third stage -826,113.91 826,113.91
--Turn back to the second stage
--Turn back to the first stage
Current provision 1,241,942,939.89 1,241,942,939.89
Current return -95,244,452.35 -95,244,452.35
Ending balance
The changes in the balance of other receivables are as follows：
In RMB Yuan
The first stage The second stage The second stage
Expected credit Expected credit loss Expected credit
Bad debt provision losses in the next for the entire life loss for the entire Total
12 months (Single evaluation) life
(Group evaluation)
Balance at the end of the previous year 1,095,164,331.54 1,614,084,422.33 2,850,000.87 2,712,098,754.74
Changes in accounting policies 102,251,573.00 -1,609,945,384.60 0.00 -1,507,693,811.60
Balance on January 1, 2019 1,197,415,904.54 4,139,037.73 2,850,000.87 1,204,404,943.14
In this period, Balance on January 1, 2019
--Transfer to the second stage -2,700,041.57 2,700,041.57
--Transfer to the third stage -826,113.91 826,113.91
--Turn back to the second stage
--Turn back to the first stage
New in this period 982,417,339.89 982,417,339.89
Termination confirmation -95,244,452.35 -95,244,452.35
Write off this year
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Total 2,081,888,750.51 6,012,965.39 3,676,114.78 2,091,577,830.68
（4）The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetime
expected credit losses are as follows（Only for 2019）：
In RMB Yuan
The first stage The second stage The second stage
Expected credit Expected credit loss Expected credit
Bad debt provision losses in the next for the entire life loss for the entire Total
12 months (Single evaluation) life
(Group evaluation)
Balance on January 1, 2019 155,223.55 348,425.91 99,781.94 603,431.40
In this period, Balance on January 1, 2019
--Transfer to the second stage - - - -
--Transfer to the third stage -348,425.91 348,425.91
--Turn back to the second stage - - - -
--Turn back to the first stage - - - -
Current provision 135,958.46 111,643,227.46 2,501,574.96 114,280,760.88
Current return - - - -
Resale of the current period - - -99,781.94 -99,781.94
Write off this year - - - -
Other changes - - - -
Total 291,182.01 111,643,227.46 2,850,000.87 114,784,410.34
The changes in the balance of other receivables are as follows：
In RMB Yuan
The first stage The second stage The second stage
Expected credit Expected credit loss Expected credit
Bad debt provision losses in the next for the entire life loss for the entire Total
12 months (Single evaluation) life
(Group evaluation)
Balance on January 1, 2019 2,326,952,103.37 436,899.38 99,781.94 2,326,952,103.37
In this period, Balance on January 1, 2019
--Transfer to the second stage -1,664,613,313.78 1,664,613,313.78 - -1,664,613,313.78
--Transfer to the third stage -2,413,101.49 -436,899.38 2,850,000.87 -2,413,101.49
--Turn back to the second stage - - - -
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
--Turn back to the first stage - - - -
New in this period 706,450,278.94 516,085,890.00 1,222,536,168.94
Termination confirmation -271,211,635.50 -566,614,781.45 - -837,826,416.95
Write off this year - - -99,781.94 -99,781.94
Other changes -
Total 1,095,164,331.54 1,614,084,422.33 2,850,000.87 2,712,098,754.74
(5) As of June 30, 2020, the top five other receivables are as follows:
In RMB Yuan
company name Amount Aging Proportion to the total balance of other receivables (%)
First place 877,303,980.00 within half year 41.94
Second place 798,700,000.00 In half year 38.19
Third place 200,000,000.00 2 to 3 years 9.56
Fourth place 124,312,677.99 within 5 year 5.94
Fifth place 10,944,887.98 within 6 mounths 0.52
Total 2,011,261,545.97 96.15
(6)As of June 30, 2020, the Group had no other receivables derecognized as financial asset transfers (December 31, 2019:
None).
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3. Long-term equity investment
In RMB Yuan
Investment gains and Other impairment
beginning cash bonus in current
Invested in increase/decrease losses under the equity equity Other reduction provision in Ending balance Impairment
amount period
method changes current period
1、Joint ventures
Changan Ford Automobile Co.,
1,782,823,327.91 -570,006,507.40 1,212,816,820.51
Ltd
Changan Mazda Automobile
2,177,010,905.02 323,202,621.60 2,500,213,526.62
Co.,Ltd.
Changan Ford Mazda Engine
830,272,340.69 11,597,486.28 -37,000,000.00 804,869,826.97
Co., Ltd.
Changan PSA Automobiles Co.,
346,038,983.87 -114,234,986.00 -231,803,997.87 -
Ltd.
Changan Weilai New Energy
Automobile Technology Co., -12,871,719.42 -18,666,611.81 31,538,331.23 -
Ltd.
Jiangling Investment Co., Ltd. 2,081,815,165.31 34,848,792.52 2,116,663,957.83
2、Associated Enterprises
Chongqing Changan Kuayue
192,005,274.10 27,957,230.96 219,962,505.06
Automobile Co., Ltd
Chongqing Changan Kuayue
Automobile Marketing Co., - -
Ltd.
Beijing Fang’an Xinyue taxi - -
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Investment gains and Other impairment
beginning cash bonus in current
Invested in increase/decrease losses under the equity equity Other reduction provision in Ending balance Impairment
amount period
method changes current period
Co., Ltd
Chongqing Auto Finance Co.,
2,195,040,654.44 123,493,951.66 2,318,534,606.10
Ltd.
Hainan Anxinxing Information
3,560,384.10 -795,039.88 2,765,344.22
Technology Co., Ltd.
Nanjing Chelai Travel
1,474,945.09 -143,024.65 1,331,920.44
Technology Co., Ltd.
Hunan Guoxin Semiconductor
25,152,447.20 -126,648.85 25,025,798.35
Technology Co., Ltd.
Nanjing Leading Equity
935,218,323.32 32.16 935,218,355.48
Investment Partnership
Nanjing Lingxing Equity
Investment Management Co., 1,445,415.69 -93,594.67 1,351,821.02
Ltd.
Jiangling Holding Co., Ltd. 398,992,953.62 -94,049,105.60 304,943,848.02
Chongqing Changan New
Energy Automobile Technology
Co., Ltd. 1,610,174,778.05 -153,230,307.40 1,456,944,470.65
3、Subsidiaries
Nanjing Changan Automobile
422,533,259.00 422,533,259.00
Co., Ltd.
Hebei Changan Automobile 438,223,236.00 438,223,236.00
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Investment gains and Other impairment
beginning cash bonus in current
Invested in increase/decrease losses under the equity equity Other reduction provision in Ending balance Impairment
amount period
method changes current period
Co., Ltd.
Chongqing Changan
Automobile International Sales 13,068,581.00 13,068,581.00
Service Co., Ltd.
Chongqing Changan
Automobile Customer Service 29,700,000.00 29,700,000.00
Co., Ltd.
Chongqing Changan Chelian
88,500,000.00 88,500,000.00
Technology Co., Ltd.
Chongqing Changan Special
2,500,000.00 2,500,000.00
Vehicle Co., Ltd.
Chongqing Changan Europe
155,469,913.50 155,469,913.50
Design Center Co., Ltd
Chongqing Changan new
- -
Engergy Automobile Co. Ltd
Changan United Kingdom
250,093,850.95 250,093,850.95
R&D Center Co., Ltd.
Beijing Changan Automotive
engineering and Technology 1,000,000.00 1,000,000.00
Reseach Co., Ltd.
Changan Japan Design Center
1,396,370.15 1,396,370.15
Co., Ltd.
Changan United States R&D 10,243,460.00 10,243,460.00
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Investment gains and Other impairment
beginning cash bonus in current
Invested in increase/decrease losses under the equity equity Other reduction provision in Ending balance Impairment
amount period
method changes current period
Center Co., Ltd.
Baoding Changan Bus
176,002,613.18 176,002,613.18
Manufacturing Co., Ltd.
Hefei Changan Automobile Co.,
35,367,765.23 35,367,765.23
Ltd
Changan Automobile Russia
251,242,589.15 251,242,589.15
Co., Ltd.
Changan Brazil Holding Co.,
2,584,556.97 2,584,556.97
Ltd
Shenzhen Changan New
Engergy Automobile Service 184,800,000.00 13,338,871.00 198,138,871.00
Co. Ltd
Nanjing Changan New Energy
Automobile Sales & Service 50,000,000.00 50,000,000.00
Co., Ltd.
Fuzhou Changan New Energy
Automobile Sales & Service 2,000,000.00 2,000,000.00
Co., Ltd.
Xiamen Changan New Energy
Automobile Sales & Service 2,000,000.00 2,000,000.00
Co., Ltd.
Guangzhou Changan New
4,000,000.00 4,000,000.00
Energy Automobile Sales &
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Investment gains and Other impairment
beginning cash bonus in current
Invested in increase/decrease losses under the equity equity Other reduction provision in Ending balance Impairment
amount period
method changes current period
Service Co., Ltd.
Chongqing Changan New
Energy Automobile Technology 1,238,742,571.54 -1,238,742,571.54 -
Co., Ltd.
Changan Suzuki Automobile
594,949,059.30 594,949,059.30
Co., Ltd.
Zhenjiang Demao Hairun
Equity Investment Fund
1,129,922,044.91 1,129,922,044.91
Partnership (Limited
Partnership)
Chongqing Chehemei
10,000,000.00 10,000,000.00
Technology Co., Ltd.
Chongqing Changan
Automobile Software - 99,000,000.00 99,000,000.00
Technology Co., Ltd.
Changan Weilai New Energy
Automobile Technology Co., - 58,461,669.77 58,461,669.77
Ltd.
Total 16,052,319,271.82 1,780,975,318.82 -430,245,711.08 -37,000,000.00 -1,439,008,238.18 － 15,927,040,641.38 －
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
4. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Revenue Cost Revenue Cost
Main business 28,058,352,585.87 26,601,356,969.23 25,956,607,065.04 24,182,358,106.88
Other business 1,700,567,311.50 1,310,501,933.80 848,501,257.18 455,548,664.07
Total 29,758,919,897.37 27,911,858,903.03 26,805,108,322.22 24,637,906,770.95
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
608,962,802.11
method
Long-term equity investment income measured by equity
-430,245,711.08 -78,048,193.41
method
investment income from long -term equity investment
2,124,526,141.26
disposition
Investment income obtained during the period of holding
2,840,290.34
trading financial assets
others 11,056,250.03 4,149,371.08
Total 2,317,139,772.66 -73,898,822.33
(2) Long-term equity investment incomemeasured by cost accounting method
In RMB Yuan
Items Current amount Prior-period amount
Chongqing Changan Automobile Customer Service Co.,
603,900,000.00
Ltd.
Zhenjiang Demao Hairun Equity Investment Fund
5,062,802.11
Partnership (Limited Partnership)
Total 608,962,802.11
(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 -570,006,507.40 -388,312,379.14
Changan Mazda Automobile Engine Co., Ltd 11,597,486.28 22,279,051.96
Hainan Anxinxing Information Technology Co., Ltd. -795,039.88 -775,195.24
Nanjing Chelai Travel Technology Co., Ltd. -143,024.65 -238,955.00
Jiangling Holding Co., Ltd -94,049,105.60 -236,679,161.41
Changan Mazda Automobile Co., Ltd 323,202,621.60 431,236,189.88
Chongqing Changan Kuayue Automobile Co., Ltd 27,957,230.96 39,038,877.69
Changan Suzuki Automobile Co., Ltd. -114,234,986.00 -37,577,002.31
Changan Auto Finance Co., Ltd. 123,493,951.66 121,622,360.91
Changan Weilai New Energy Automobile Technology Co.,
-18,666,611.81 -16,493,522.92
Ltd.
Hunan Guoxin Semiconductor Technology Co., Ltd. -126,648.85 -145,569.13
Jiangling Investment Co., Ltd. 34,848,792.52
Chongqing Changan New Energy Automobile Technology
-153,230,307.40
Co., Ltd.
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
Nanjing Leading Equity Investment Partnership (Limited
32.16 -12,002,888.70
Partnership)
Nanjing Leading Equity Investment Management Co., Ltd. -93,594.67
Total -430,245,711.08 -78,048,193.41
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 3,547,727,244.56
Government subsidies counted in current profit and loss (except the
government subsidies which are closely related with business events, and 215,977,955.28
given certain amount according to national standards)
In addition to the effective hedging business related to the normal
business of the company, the gains and losses from changes in fair value
arising from the holding of trading financial assets, derivative financial
assets, trading financial liabilities, derivative financial liabilities, and 1,753,674,697.00
disposal of transactional financial assets, derivative finance, investment
income from trading financial assets, trading financial liabilities,
derivative financial liabilities and other debt investments
Gains and losses from entrusted loans 6,884,080.21
Interest on deferred payment of funds received from non - financial
21,549,119.75
enterprises
Other non-business incomings and outgoings except above-mentioned
-20,172,785.69
items
Less: amount influenced by income tax 293,310,943.88
Amount influenced by minority shareholders’ interest (after tax) 13,274,663.08
Total 5,219,054,704.15
Notes:Profit and loss of non-current assets disposition are mainly from the disposal of the equity of Chongqing Changan New
Energy Automobile Technology Co., Ltd. and Changan PSA Peugeot Citroen Automobile Co., Ltd. held during the period.
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 on Earnings per share
Profit in report period
equity Basic EPS Basic EPS
Net profit belonging to the Company’s common
5.74% 0.54 Not applicable
stockholders
Net profit belonging to the Company’s common
-5.75% -0.54 Not applicable
stockholders 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
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Chongqing Changan Automobile Company Limited 2020 Semi-annual Report
(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 2020 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 and CEO: Zhu Huarong
Chongqing Changan Automobile Company Limited
August 31, 2020
159
