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长 安B:2021年半年度报告(英文版)2021-08-31  

                                       Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




Chongqing Changan Automobile Company Limited
           2021 Semi-annual Report




                  August 2021
                                     Chongqing Changan Automobile Company Limited 2021 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.
      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.
     All the directors attended the board meeting for reviewing the semi-annual report.
     The forward-looking statements such as future plans and development strategies involved in
this report do not constitute the company’s substantial commitments to investors. Investors and
related parties should maintain adequate risk awareness and understand the differences between
plans, forecasts and commitments.
      The possible risks and countermeasures of the company are described in the third section
"Management Discussion and Analysis" of this report. Investors are kindly requested to pay
attention to the relevant content.
      For the first half of 2021, the Company has no plans of cash dividend, no bonus shares and no
share converted from capital reserve.
     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.




                                                  1
                                             Chongqing Changan Automobile Company Limited 2021 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 Corporate Governance ............................................................................. 18

Chapter 5 Environment and social responsibility .................................................... 20

Chapter 6 Important Matters .................................................................................... 23

Chapter 7 Changes in the shareholding of the company and shareholders.............. 28

Chapter 8 Preferred shares ....................................................................................... 35

Chapter 9 Bonds ....................................................................................................... 35

Chapter 10 The Financial Statements....................................................................... 36




                                                            2
                                            Chongqing Changan Automobile Company Limited 2021 Semi-annual Report



                                       Documents for Future Reference
     1. Financial statements, with the signatures and seals of legal representative, person in charge of accounting,
and person in accounting agency;
     2. All original copies of company documents and announcements disclosed in China Securities Journal,
Securities Time, Securities Daily, Shanghai Securities News, and Hong Kong Commercial Daily in reporting
period.
                                                    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 Industries
China Changan             Refers to
                                      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           Refers to Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company

Hebei Changan             Refers to Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company

Hefei Changan             Refers to Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company
Changan Bus               Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
                                      Chongqing Changan Automobile International Sale Service Co., Ltd., a
International Company Refers to
                                      subsidiary company of the Company
Changan Ford              Refers to Changan Ford Automobile Co., Ltd., a JV of the Company
Changan Mazda             Refers to Changan Mazda Automobile Co., Ltd., a JV of the Company
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
South Industries                      China South Industries Group Finance Co., Ltd., a subsidiary company of South
                          Refers to
Finance                               Industries
                                      United Prosperity (Hong Kong)Investment Co., Ltd., a subsidiary company of
UPI                       Refers to
                                      China Changan
                                      Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of
Hafei Group               Refers to
                                      China Changan
                                      Chongqing Changan Minsheng APLL Logistics Co., Ltd., an associate of China
CMAL                      Refers to
                                      Changan




                                                          3
                                                 Chongqing Changan Automobile Company Limited 2021 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 2020.


2. Information disclosure and preparation place

      Whether information disclosure and preparation place changed in reporting period or not
      □ Applicable   √ Not applicable
      The newspaper appointed for information disclosure, the website for the publishment of the semi-annual report appointed by

                                                                  4
                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


CSRC and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report
2020.


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 need to retrospectively adjust or restate the accounting data of previous years
√Yes     □No
Reasons for retrospective adjustment or restatement: changes in accounting policies
                                                                                                                        In RMB Yuan

                                                                              The same period of last year            Variance (%)
                                             The reporting period
                                                                         Before adjustment     After adjustment      After adjustment

Operating income                                56,784,631,899.07         32,781,657,479.10     32,781,657,479.10              73.22%

Net profit attributable to shareholders of
                                                 1,729,245,208.60           2,602,166,402.68     2,602,166,402.68              -33.55%
the Company

Net profit excluding non-recurring gains
and losses attributable to shareholders of         739,756,972.08          -2,616,888,301.47    -2,616,888,301.47             128.27%
listed company

cash flow from operating activities             17,698,826,870.37           6,912,586,693.60     6,912,586,693.60             156.04%

Basic earnings per share                                      0.32                      0.54                  0.54             -40.74%

Diluted earnings per share                                     N/A                      N/A                   N/A                  N/A

Weighted average return on net assets                       3.22%                     5.74%                  5.74%    Down 2.52 Points

                                               At the end of the                      End of 2020                     Variance (%)
                                               reporting period          Before adjustment     After adjustment      After adjustment

Total assets                                   130,457,601,160.37        120,915,805,349.52    118,265,186,394.85              10.31%

Net assets attributable to shareholders of
                                                54,145,677,385.61         53,410,193,236.09     53,410,193,236.09                1.38%
listed company

Reasons for changes in accounting policies and corrections of accounting errors
In order to make the company’s accounting more accurate, objective and fair to reflect the company’s financial status and operating
results, the company’s government subsidy accounting policy is changed from January 1, 2021, from the total amount method to the
net amount method. For details, see " Announcement on Changes in Accounting Policies (Announcement Number: 2021-43).




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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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


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 impairment part)             601,066,861.33

Government subsidies included in the profit and loss of the current period (Except
closely related to business operations, in accordance with the national unified standard       517,107,352.50
quota or quantitative enjoyment of government subsidies)

Gains and losses from entrusted loans                                                            6,959,316.06

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,
                                                                                                15,734,698.73
derivative financial liabilities, and disposal of transactional financial assets, derivative
finance Investment income from assets, trading financial liabilities, derivative financial
liabilities and other debt investments

Other non-business income and expenditures other than the above items                           26,880,243.65

Interest on deferred payment of funds received by non-financial enterprises                     17,542,698.15

Subtract: Influenced amount of income tax                                                       88,222,076.78

Influenced amount of miniority shareholders’ equity (after tax)                               107,580,857.12

Total                                                                                          989,488,236.52          --

According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –

                                                                     6
                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


non-recurring gains and losses” defined non-recurring items ,and“Public offering of securities information disclosure of the
company's information disclosure announcement No. 1 - non-recurring gains and losses”The items, defined as recurring items, are
listed in the announcement No. 1 and shall be explained.
□ Applicable   √ Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gains
and losses to define a case of recurring profit or loss.




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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                Chapter 3              Analysis of Main Business

I. The main business of the Company in the reporting period

     (1) Business Overview
     The company belongs to the automobile manufacturing industry. Its main business covers the R&D, manufacturing and sales of
vehicles (including passenger cars and commercial vehicles) and the R&D and production of engines. The company focuses on the
industrial development trend, actively develops new businesses such as mobile travel, automobile living services, new marketing and
power exchange services, and accelerates the exploration of industrial finance, used cars and other fields, to build a more
comprehensive industrial ecology.
     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 owns many famous brands such as
Changan passenger car, Oushang automobile, Kaicheng automobile, Changan Ford, Changan Mazda and so on. Up to now, the
company has successfully launched a series of classic brands such as CS series, Eado series, UNI,Oushang series, and Shenqi series;
a series of famous JV products such as all new Focus, Escort, Escape, Explorer,Adventurer,aviator,,Axela, CX-5, CX-30 and so on.
At the same time, The company has launched new energy vehicles such as Eado EV, new Benben EV and CS55 E-Rock, which are
admired by the market and loved by the consumers.
     The company adopts the business model of "paying equal attention to autonomous business and joint ventures", carries out
entity operation on its own automobile brand businesses such as Chang'an Automobile, Oushang automobile and Kaicheng
automobile, and firmly creates its own classic brands; The company controls the investment of Changan Ford, Changan Mazda and
other joint ventures, and continues to deepen mutual trust and cooperation with partners.
     (2) Industry situation
      In the first half of 2021, under the backdrop of the uncertainty of the world economic recovery and the imbalance of the world
economy, thanks to the constraint of the Novel Coronavirus Pneumonia and the fast resumption of production and recovery, China's
economy has recovered steadily in the first half of 2021, and the trend of the economic development has been stable and strong. The
fundamentals of our economy have been unchanged for a long time. In the process of transformation and development, the
automobile industry is affected by factors such as the rise in commodity prices and the shortage of chips, superimposed on the market
recovery after the epidemic last year. Although the growth momentum remained year-on-year, the market growth margin slowed
down. The specific situation of the industry is as follows:
      In the first half of 2021, the cumulative production and sales of the automobile industry reached 12.569 million and 12.891
million respectively, with a year-on-year increase of 24.2% and 25.6% respectively (the production and sales volume increased by
3.4% and 4.4% respectively compared with the same period in 2019). The year-on-year growth of sales volume has begun to decline
since March. The sales volume of passenger cars reached 10.07 million, with a year-on-year increase of 27.0%, higher than the
overall growth rate of the industry; the sales volume of sedans is 4.643 million, a year-on-year increase of 26.2%; SUV sales volume
was 4.731 million, a year-on-year increase of 28.6%, 1.6 percentage points higher than that of the passenger car industry. The sales
volume of commercial vehicles reached 2.884 million, a year-on-year increase of 20.9%, and the growth rate fell month by month
from February, ending the momentum of continuous growth since February 2020.
     The market share of new energy vehicles continued to run at a high level. In the first half of 2021, the production and sales of
new energy vehicles reached 1.215 million and 1.206 million respectively, with a year-on-year increase of more than 200%. In the
first half of 2021, the cumulative sales of new energy vehicles reached a record high in the same period, and the scale has been the
same as that of 2019. Among them, the production and sales of pure electric vehicles were 1.022 million and 1.005 respectively, with
a year-on-year increase of 231.4% and 222.9% respectively.


                                                                  8
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     The share of narrow passenger cars of Chinese brands continued to increase. In the first half of 2021, the sales volume of the
narrow passenger car industry reached 9.875 million, a year-on-year increase of 27.2%, and the growth rate was at a historical high in
the same period in recent years. Driven by the rapid growth of new energy vehicles, the market share of Chinese brands continued to
rise. From January to June, the market share of Chinese brands was 41.5%, a year-on-year increase of 6.2 percentage points; The
market share of European and Japanese decreased year-on-year, with the market share of 24.2% and 22.3% respectively, down 2.8
percentage points and 1.7 percentage points respectively year-on-year( The above data / information comes from China automobile
industry production and marketing newsletter published by China Automobile Industry Association and its industry information
release)
     (3) Enterprise market performance
     In the first half of 2021, the Company focused on "firm transformation, innovation breakthrough, digital drive, quality
improvement and efficiency enhancement", firmly promoted the "third entrepreneurship - innovation and entrepreneurship plan",
paid attention to the improvement of scale, market share and profit margin, and strengthened the marketing traction and the
improvement of operation quality. In the first half of 2021, the company achieved sales of 1.201 million vehicles, a year-on-year
increase of 44.5% with the market share increasing by 1.2 percentage points year-on-year, and returned to the fourth place of
automobile group. The sales of Chinese brand passenger cars of Chang'an brand amounted to 660 thousand, a year-on-year increase
of 68.3%, and returned to the first place of Chinese brand passenger car enterprises.
     The performance of key products is commendable. In the first half of 2021, the cumulative sales volume of CS75 series was 174
thousand, with a year-on-year increase of 58.9%. Among them, the sales number of CS75 Plus reached 128 thousand, ranking second
in China's brand compact SUV; the sales number of Eado plus amounted to 91 thousand and maintained a monthly sales of more than
12 thousand vehicles in the first half of 2021; The sales volume of Oushang X5 reached 64 thousand with rapid sales increase since
its listing and its sales volume ranked among the top five compact SUVs of Chinese brands; the sales number of Lincoln adventurers
amounted to 25 thousand vehicles, maintaining the fifth position in the market segment.


II. Core Competence Analysis

      In 2021, new progress was made in the "Beidou Tianshu" plan, the "Shangri La" plan was accelerated, the R&D capacity of
Chang'an Automobile continued to be strengthened, and the technical achievements continued to be realized.
     Boost new product development. A task force was established to aim at the main direction of scientific and technological
development of the automobile industry, prepare the "14th-five-year plan" of science and technology, and create a "science and
technology hard core" for the Company. The project milestones were pushed forward orderly, and UNI-K, new CS35Plus, 2021
CS75Plus, 2021 escape plus, 2021 CS95, 2021 CS85 COUPE, Benben e-star national version and other models were officially
launched.
     The technological breakthrough continued to deepen and the innovation ability was gradually improved. The Company
continuously improved the conversion efficiency of technical achievements and launched APA6.0 remote intelligent parking
technology; the phased progress has been made in projects such as intelligent cockpit platform and intelligent Internet connected
vehicle verification. L3 automatic driving prototype (UNI-K) won the gold award of 2021 world intelligent driving challenge with
full score. The power system was iterated orderly and the blue whale IDD hybrid system was released. The comprehensive fuel
consumption of the first model NEDC under working conditions was 0.8l/100km, reaching the industry-leading level; the first
NE15TG-AE engine of Changan Automobile was ignited successfully. Chang'an Yidong plus was awarded the "best benchmark
model for comprehensive air quality in the vehicle"; The DF727 transmission jointly developed by Chang'an Automobile and
Chongqing Qingshan won the "world top ten transmission in Longpan Cup". As of June 2021, the Company has accumulated 6003
domestic and foreign patents, including 1535 invention patents. In the first half of 2021, the number of patents applied increased by
46% year-on-year. CS75plus design patent won the gold medal of China Patent Award.
     The "four in one" of brand management, label building, communication mode and public opinion control accelerates the
transformation and helps improve the brand image. The Company strengthened the overall planning of the group's brand and
improved the brand operation management system. The Company further improved the brand value system of Chang'an Automobile
and the basic norms of visual identification of Chang'an Automobile, renewed group's brand management principles, clarified the
principle of brand separation between Chang'an Automobile and Oushang automobile, and started the construction of the group's

                                                                   9
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


brand operation management system (CA-BMS) to help improve the brand premium. The Company deepened the brand label of blue
whale power, constantly injected new technical vitality, expanded the gap with other independent brands with technology, and
continued to consolidate the "technical responsibility of Chinese brands"; The Company released a new generation of golden
powertrain, a new generation of high-efficiency powertrain and blue whale IDD hybrid system, consolidated the leading label of
technology, and promoted blue whale power to become a benchmark in the field of automobile power technology in China. The
Company created a "partner" label, and "it's nice to have you" spring festival marketing online topic traffic exceeded 7 billion,
helping to deepen and improve the brand's "partner" image. In response to the continuing epidemic situation, the Company will
deeply promote the live broadcasting of brand activities, build an online "cloud auto show" platform for offline auto shows, and make
full use of network and technical means to expand brand communication. The Company created a "big brand with cargo
management" live IP, and the chairman launched APA6.0 in the industry; the Company held the offline ceremony of the 20th million
Chinese brand vehicles to continuously promote the brand potential. The Company established a six terminal three-dimensional
communication matrix, optimize and improve the content output quality of the whole chain from product promotion to public
relations communication and public relations activities, and created self-made content IP. The Company established the overall
management mechanism of the group's public relations media, built the group's public relations coordination matrix. Actively
pressurize and improve health standards as the goal to ensure more stable public opinion in the year; the Company sorted out the
system process of public opinion in recent three years, formed a structured operation instruction to guide the orderly, controllable and
efficient promotion of public opinion business, continuously optimized the evaluation model of ROI sub module to realize the fine
management of communication efficiency.


III. Analysis of Main Business

Overview

Whether it is the same as the company’s main business disclosure during the reporting period
√ Yes   □ No
Please refer to the relevant content of "I. The main business of the Company in the reporting period".


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
                                                                                       mainly due to the substantial increase in sales in
Operating revenue    56,784,631,899.07      32,781,657,479.10                73.22%
                                                                                       this period
                                                                                       mainly due to the substantial increase in sales in
Operating cost       48,086,677,229.21      29,578,074,559.16                62.58%
                                                                                       this period
                                                                                       mainly due to the substantial increase in sales in
Operating expenses     2,146,115,312.19      1,270,716,006.91                68.89%
                                                                                       this period
General and
                                                                                       Mainly due to the impact of accruing new
administrative         2,217,147,044.50      1,145,860,984.31                93.49%
                                                                                       energy points
expenses

R&D expenses           1,495,583,362.16      1,423,575,470.37                  5.06%

Financial expenses      -233,776,490.65         -98,218,545.38             -138.02% Mainly due to the increase of deposit interest




                                                                  10
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                        Mainly due to changes in the fair value of
                                                                                        transactional financial assets in the same period
Income tax expense           59,373,446.09      189,931,296.64                -68.74%
                                                                                        last year, which led to an increase in deferred
                                                                                        income tax liabilities
Subtotal of cash                                                                        Mainly due to the significant increase in "cash
inflow from              17,698,826,870.37    6,912,586,693.60               156.04% received from selling goods and providing labor
operating activities                                                                    services" over the same period
                                                                                        Mainly due to the decrease of "cash paid for the
Subtotal of cash                                                                        purchase and construction of fixed assets,
inflow from                -665,883,342.87    -1,252,707,158.77               46.84% intangible assets and other long-term assets" and
investment activities                                                                   the increase of "other cash received related to
                                                                                        investment activities" over the same period
                                                                                        Mainly due to the increase of "cash paid for
Subtotal of cash
                                                                                        dividend distribution, profit or interest payment"
inflow from              -1,415,888,692.05    1,809,378,548.18              -178.25%
                                                                                        and the decrease of "cash received from loans"
financing activity
                                                                                        over the same period
Net increase in cash
                                                                                        Mainly due to the net cash inflow from
and cash                 15,613,435,542.38    7,460,644,506.35               109.28%
                                                                                        operating activities \during the current period
equivalents

Major changes on profit composition or profit resources in reporting period
√ Applicable      □ Not applicable
During the reporting period, the company's net profit attributable to shareholders of listed companies declined year-on-year, mainly
due to a significant decrease of approximately 4.2 billion yuan in non-recurring gains and losses compared with the same period last
year.


Composition of the operating revenue


                                                                                                                            In RMB Yuan

                                       Current period                          Same period of last year                Increase/decrease
                                               Share of operating                              Share of operating        on a y-o-y basis
                                 Sum                                          Sum
                                                 income(%)                                       income (%)                  (%)

Operating revenue         56,784,631,899.07              100.00%         32,781,657,479.10                100.00%                    73.22%

Industry
Automobile                56,784,631,899.07              100.00%         32,781,657,479.10                100.00%                    73.22%
Products
Vehicles                  55,558,968,208.57               97.84%         32,049,653,469.63                 97.77%                    73.35%
Provision     of
labor services             1,225,663,690.50                2.16%           732,004,009.47                   2.23%                    67.44%
and others
Area
China
                                                          92.86%         31,119,150,931.79                 94.93%                    69.44%
                          52,728,042,749.91


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                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Overseas                 4,056,589,149.16                         7.14%         1,662,506,547.31                     5.07%                 144.00%


Accounted for more than 10% of the company's operating income or operating profit of the industry, products or area


√ Applicable   □ Not applicable


                                                                                                                                     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 Production              56,784,631,899.07           48,086,677,229.21 15.32%              73.22%          62.58%               Up 5.55%
According to products
Vehicles                           55,558,968,208.57           47,512,610,945.95 14.48%              73.35%          64.92%               Up 4.37%
According to region
China                              52,728,042,749.91           44,118,948,828.49 16.33%              69.44%          57.72%               Up 6.22%

When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's main business data
in the latest period adjusted according to the caliber at the end of the reporting period
□ applicable √Not applicable
Reasons for the year-on-year change of more than 30% in relevant data
√ Applicable □ not applicable
The sales volume in this period increased significantly compared with the same period last year, and the operating revenue and
operating cost increased significantly.


IV. Analysis of non principal business

□ Applicable   √ Not applicable


V. 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 increase of net
Monetary capital         47,721,342,242.91            36.58% 32,001,775,600.07           27.06%        9.52% cash       inflow    from    operating
                                                                                                                 activities in the current period
Accounts                   1,628,018,973.81            1.25% 2,141,197,139.45                1.81%    -0.56%
                                                                          12
                                                             Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


receivable
Contract assets              1,479,108,607.55                1.13% 1,450,031,414.61                 1.23%    -0.10%
                                                                                                                         Mainly due to the inventory
                                                                                                                         reserve in advance in response to
Inventory                    4,089,490,661.31                3.13% 5,967,516,230.57                 5.05%    -1.92%
                                                                                                                         the peak sales season before the
                                                                                                                         Spring Festival last year
Investment
                                     6,762,782.38            0.01%        6,876,138.16              0.01%     0.00%
property
Long-term equity
                            11,571,676,934.12                8.87% 12,109,089,795.67               10.24% -1.37%
investment
Fixed assets                23,289,621,403.41            17.85% 24,298,402,558.49                  20.55% -2.70%
Construction in
                                 754,885,456.77              0.58% 1,048,036,148.70                 0.89%    -0.31%
progress
                                                                                                                         Due to the implementation of
                                                                                                                         accounting          standards          for
Right of assets
                                    68,982,797.00            0.05%                      0.00        0.00%     0.05% Business Enterprises No. 21 -
usage
                                                                                                                         leasing, recognize the relevant
                                                                                                                         right to use assets
Short-term loan                  552,000,000.00              0.42%     578,000,000.00               0.49%    -0.07%
Contract
                             4,667,333,563.93                3.58% 4,471,158,190.75                 3.78%    -0.20%
liabilities
                                                                                                                         Mainly         due           to        the
                                                                                                                         reclassification           of         some
Long-term loan                   654,300,000.00              0.50%     955,300,000.00               0.81%    -0.31%
                                                                                                                         borrowings          to      non-current
                                                                                                                         liabilities due within one year
                                                                                                                         Due to the implementation of
                                                                                                                         accounting          standards          for
Lease liabilities                   26,430,150.16            0.02%                      0.00        0.00%     0.02% Business Enterprises No. 21 -
                                                                                                                         leasing, recognize the relevant
                                                                                                                         lease liabilities


2. Major overseas assets

□ applicable √ not applicable


3. Assets and liabilities measured by fair value

√ Applicable      □ Not applicable
                                                                                                                                                   In RMB Yuan

                                     Profit and loss from Accumulated fair            Impairment          Amount          Amount sold in
                   Amount at year                                                                                                                 Amount at year
     Item                            changes in fair value     value changes        provisions in the purchased in the       the current
                     beginning                                                                                                                           end
                                     in the current period included in equity reporting period         current period          period

Financial assets

                                                                               13
                                                            Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Transactional
                      204,254,400.00        15,734,698.73                                                       24,639,500.00   195,349,598.73
financial assets

Equity
instrument            691,990,000.00                                                                                            691,990,000.00
investment

Subtotal of
                      896,244,400.00        15,734,698.73                                                       24,639,500.00   887,339,598.73
financial assets

Others

Total                 896,244,400.00        15,734,698.73                                                       24,639,500.00   887,339,598.73

Financial
                                   -                    -                 -               -                 -                                 -
liabilities

Whether the measurement attributes of main assets in the reporting period have significantly changed
□ Yes        √ No


4. 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                                                   1,451,938,642.90   Mainly acceptance bond

Notes receivable                                                8,833,408,396.62   Pledge for issuing bills payable

Intangible assets                                                  17,452,138.80   Collateral to obtain working capital

Fixed assets                                                       22,699,444.68   Collateral to obtain working capital

                      Total                                    10,325,498,623.00


VI. Analysis of Investment

1. General information

√ Applicable         □ Not applicable

                                                                 External investment

Investment Amount in the report period(Yuan) Investment Amount in the same period of last year(Yuan)                      Variance rate

                                          658,572,500                                                2,290,000,000                  -71.24%

Note: The above are investment projects approved by the board of directors during the reporting period.


2. Major equity investment in the reporting period

□ Applicable         √ Not applicable



                                                                         14
                                                                        Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


          3. Major non-equity investment in the reporting period

          Please refer to Notes 7 Item 14 “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      33,630,000           0.51%      33,630,000           0.51% 163,778,100            -17,151,300
                         Securities                                                                                                                         financial assets   investment

Total                                  50,000,000      33,630,000           --         33,630,000           --        163,778,100        -17,151,300                --            --

          (2) Derivative Investments
          □ Applicable      √ Not applicable


          VII. 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


          VIII. 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
                                                                                        Registered          Total          Net         Operating          Operating       Net
                         Name                       Type        Main businesses
                                                                                          capital           assets       assets         income             Profit        profit
          Chongqing Changan
          Automobile Customer Service           Subsidiary      Sales of auto parts             3,000       120,243       54,390          134,944             26,646 22,427
          Co., Ltd.




                                                                                           15
                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Nanjing Changan Automobile                      Produce and sell
                                 Subsidiary                               60,181     85,694 -81,183      38,047       59,081 51,208
Co., Ltd.                                        auto and parts

Changan Ford Automobile          Joint   Stock Produce and sell
                                                                   24,100USD       4,156,326 442,153   2,611,447      78,532 72,649
Co., Ltd                         Company         auto and parts

Changan Mazda Automobile         Joint   Stock Produce and sell
                                                                   11,097USD       1,090,169 312,293    752,507       76,382 57,377
Co. Ltd                          Company         auto and parts

Chongqing Chang'an New
                                 Joint   Stock Produce and sell
Energy Vehicle Technology Co.,                                     20,223RMB        537,481 116,895     182,514      -96,434 -96,434
                                 Company         auto and parts
Ltd

Subsidiaries acquired and sold in the reporting period

□ Applicable   √ Not applicable
Description of major holding and participating companies
During the reporting period, the company has no information of important holding and participating companies that should be
disclosed.


XI. Structural main business under the company control

□ Applicable   √ Not applicable


X. Possible risks and coresponding measures

      Firstly, COVID-19 disturbed the consumption of automobile market. The epidemic situation in some overseas countries is still
severe, especially in some neighboring countries in Southeast Asia. China still faces great pressure on "foreign input". At the same
time, the risk of sporadic epidemic in China has not been eliminated, which may have an impact on local automobile market sales. In
addition, the epidemic factors have disturbed the sales rhythm of the automobile market. After the restorative growth in the first half
of the year, there may be a regional decline in the second half of the year.
      Countermeasures: firstly, speed up the process of new marketing layout, strengthen online promotion and service, strengthen
user contacts, and strive to minimize the market impact; Secondly, strengthen the whole process service experience of car purchase
and use by strengthening auto finance and other post market services.
      Secondly, supply chain risk. On the one hand, the automobile industry has a long industrial chain and close global division and
cooperation. Due to the impact of overseas epidemic, the supply of some raw materials and parts is insufficient. Under the condition
of restorative growth of domestic market demand, the problem of lack of chips and power batteries is more prominent, and this
phenomenon may continue in stages. On the other hand, due to the decline of global manufacturing investment during the epidemic,
although the current production is gradually restored, there may still be a short-term capacity gap in some parts, and the automobile
industry still faces some pressure in production and supply guarantee.
      Countermeasures: firstly, optimize the production organization mode to ensure normal production operation; secondly,
strengthen the cooperation, sharing and symbiotic relationship between enterprises in the industrial chain and increase the reserves of
risk components in time; thirdly, continue to promote the standby alternatives of some key core components.


XI. Interviews and visits in the reporting period

√ Applicable   □ Not applicable


                                                                     16
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


   Date           Manner             Object                             Content discussed and material offered

                                                For details, see the March 5, 2021 Shenzhen stock exchange interactive
            On-Site     Survey,
2021.3.3                          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: March 3, 2021 investor
            conference call
                                                relations activities record sheet

                                                For details, see the April 22, 2021 Shenzhen stock exchange interactive
            "PanoramaRoadsh
2021.4.20                         All investors (http://irm.cninfo.com.cn) on the Changan Automobile: April 20, 2021 investor
            ow World" Webcast
                                                relations activities record sheet

                                                For details, see the May 20, 2021 Shenzhen stock exchange interactive
2021.5.18 On-Site Survey          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: May 18, 2021 investor
                                                relations activities record sheet

                                                For details, see the May 21, 2021 Shenzhen stock exchange interactive
2021.5.21 On-Site Survey          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: May 21, 2021 investor
                                                relations activities record sheet

                                                For details, see the May 31, 2021 Shenzhen stock exchange interactive
2021.5.28 On-Site Survey          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: May 28, 2021 investor
                                                relations activities record sheet

                                                For details, see the June 3, 2021 Shenzhen stock exchange interactive
2021.6.1    On-Site Survey        Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: June 1, 2021 investor
                                                relations activities record sheet

                                                For details, see the June 24, 2021 Shenzhen stock exchange interactive
2021.6.22 On-Site Survey          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: June 22, 2021 investor
                                                relations activities record sheet

                                                For details, see the June 24, 2021 Shenzhen stock exchange interactive
2021.6.24 On-Site Survey          Institution   (http://irm.cninfo.com.cn) on the Changan Automobile: June 24, 2021 investor
                                                relations activities record sheet




                                                                   17
                                                          Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                      Chapter 4                    Corporate Governance

I. Annual shareholders meeting and interim shareholders meeting during the reporting
period

1. Shareholders meeting during the reporting period


                                      Investors'
  Meeting Session         Type      participation     Holding Date          Disclosure Date                      Meeting Decision
                                        ratio

2021 The First                                                                                 http//www.cninfo.com.cn

Interim Shareholders Interim          46.375%       February 18, 2021      February 19, 2021   2021 The First Interim Shareholders Meeting Resolution
Meeting                                                                                        Announcement(Announcement Number: 2021-13)

2020 Annual                                                                                    http//www.cninfo.com.cn

Shareholders           Annual         53.336%       May 14, 2021        May 15, 2021           2020 Annual Shareholders Meeting Resolution
Meeting                                                                                        Announcement(Announcement Number: 2021-51)



2. Preferred shareholders’ request to hold the interim shareholders meeting with restoration of voting
rights


□ Applicable     √ Non-applicable


II. Departure and Hiring information of the directors, supervisors and senior manager

√ Available     □ Not-available

          Name                              Duties                                Type                 Date                      Reason

Zhang Bo                 Director                                          Election            February 18, 2021      Appointment due to work

Liu Gang                 Director                                          Election            February 18, 2021      Appointment due to work

                         Deputy      Secretary       of   the      Party
Yuan Mingxue             Committee (Identified as a senior recruitment                         March 30, 2021         Appointment due to work
                         manager)

Ye Pei                   Deputy Vice Director                              recruitment         March 30, 2021         Appointment due to work

Zhao Fei                 Deputy Vice Director                              recruitment         March 30, 2021         Appointment due to work

Yang Dayong              vice president                                    recruitment         July 15, 2021          Appointment due to work

Yu Chenglong             vice president                                    recruitment         July 15, 2021          Appointment due to work

Peng Tao                 vice president                                    recruitment         July 15, 2021          Appointment due to work

Chen Wei                 Deputy Vice Director                              recruitment         July 23, 2021          Appointment due to work

Yuan Mingxue             Executive Vice President                          Departure           March 30, 2021         Job change

                                                                             18
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Ye Pei                vice president                            Departure           March 30, 2021        Job change

Zhao Fei              vice president                            Departure           March 30, 2021        Job change

Pang Yong             Independent director                      Departure           May 7, 2021           Work reasons

Zhao Jun              Supervisor                                Departure           May 12, 2021          Job change

Chen Wei              vice president                            Departure           July 23, 2021         Job change

Liu Bo                Deputy Vice Director                      Departure           July 23, 2021         Job change

Zhou Zhiping          director                                  Departure           July 29, 2021         Job change

                      Supervisor, Chairman of the Board of
Yan Ming                                                        Departure           July 29, 2021         Job change
                      Supervisors

Note: The above conditions are as of August 31, 2021.


III. 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.


IV. Company equity incentive plan, the implementation of the employee stock ownership plan
or other staff incentives.

√ Applicable   □ Not-applicable
     On July 13, 2020, the company held the second meeting of the eighth session of the board of directors, and reviewed and
approved 3 proposals related to the restricted stock incentive plan. For details, please refer to the "Announcement on Resolutions of
the Second Meeting of the Eighth Board of Directors" ( Announcement number: 2020-63).
     On February 1, 2021, the company held the eleventh meeting of the eighth session of the board of directors, and reviewed and
approved two proposals related to the revision of the restricted stock incentive plan. For details, please refer to the "Resolutions of
the Eleventh Meeting of the Eighth Board of Directors" Announcement (Announcement Number: 2021-05).
     On February 18, 2021, the company held the first extraordinary general meeting of shareholders in 2021, and reviewed and
approved 3 proposals related to the restricted stock incentive plan. For details, please refer to the "Announcement on Resolutions of
the First Extraordinary General Meeting of 2021" (Announcement) Number: 2021-13).
     On February 22, 2021, the company held the twelfth meeting of the eighth session of the board of directors, at which it reviewed
and approved the "Proposal on Adjusting the List of Restricted A Shares Incentive Plan and the Number of Incentives Granted" and
"Regarding the Restriction of A Shares" The Proposal for the First Grant of Restricted Stocks to Incentives of the Stock Incentive
Plan. For details, please refer to the "Announcement on Resolutions of the Twelfth Meeting of the Eighth Board of Directors"
(Announcement Number: 2021-14).
     On March 5, 2021, the shares granted by equity incentives is listed for circulation. For details, please refer to the
"Announcement on Completion of Registration for the First Grant of A Share Restricted Stock Incentive Plan" (Announcement No.:
2021-20).

                                                                  19
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                   Chapter 5               Environment and social responsibility

I. 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 Waste water mainly comes from the treatment of surface
treatment wastewater, spray painting wastewater and oil containing wastewater before the coating workshop, which is discharged
after physicochemical and biochemical treatment. The exhaust gas is mainly painted waste gas and flue gas. The exhaust gas of the
spray paint is absorbed, concentrated and burned, and the exhaust gas of the oven is discharged after burning. Two sulfur oxide and
nitrogen oxide are mainly from the waste gas from the clean energy of natural gas. All of the exhaust gases from energy and natural
gas combustion are organized emissions. The company's headquarters and subsidiaries have a sound environmental management
system, which has passed the environmental management system certification.
Pollution discharge information
     During the reporting period, there are 605 air pollutant discharge outlets, including 73 main discharge outlets and 532 general
discharge outlets; there are 27 water pollutant discharge outlets, including 23 main discharge outlets and 4 general discharge 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 approved chemical oxygen demand is 852.197 tons, and
the actual emission is 100.0916 tons; The approved amount of ammonia nitrogen is 72.625 tons, and the actual emission is 10.4767
tons; The approved amount of sulfur dioxide is 199.084 tons, and the actual emission is 25.2715 tons; The approved amount of
nitrogen oxides is 243.26 tons, and the actual emission is 86.2423 tons; The nuclear quantity of volatile organic compounds is
4113.209 tons, and the actual emission is 1348.7622 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, 11,039 tons of
hazardous waste and 84,097 tons of general industrial solid waste were disposed.
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
implementation records, and equipment spot inspection records, operating records and so on. The facilities are running normally. The
key pollutant discharge units are all equipped with automatic wastewater monitoring facilities and entrusted the tripartite company to
                                                                   20
                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


operate and maintain the facilities.
Administrative licensing of environmental impact assessment and other environmental protection for construction projects
     In accordance with the regulations of the State Council on environmental protection and management of construction projects,
the People's Republic of China Environmental Impact Assessment Law, the regulations on environmental protection in Chongqing,
and the Interim Measures for the construction project completion of environmental protection and acceptance by the Ministry of
environmental protection of the state, the environmental impact assessment and completion ring of the new, modified and expanded
projects are required and strictly enforce the environmental impact assessment system and the "Three Simultaneity" system.
     During the reporting period, environmental protection acceptance of the construction project for the emission laboratory project
and CD569 production line project were completed,.
Emergency preparedness and exercise of emergency environmental events
     Continue to carry out environmental protection emergency drills and improve the ability to deal with environmental
emergencies. During the reporting period, all bases have environmental risk assessment reports and emergency plans for
environmental emergencies; each base shall formulate an emergency drill plan according to the requirements of laws and regulations,
carry out emergency drills according to the plan, and continuously improve the practicability of the emergency plan and the
emergency disposal ability of employees. No environmental emergencies occurred during the reporting period.
Programming and implementation of self-monitoring of the environment
     During the reporting period, Key sewage units of Changan Automobile: Liangjiang Factory, Jiangbei Engine Factory, Yubei
Factory, Beijing Changan, Hefei Changan, Nanjing Changan, Kaicheng Automobile,Chongqing LingYao Automobile. All the key
sewage units 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.
Administrative penalties for environmental problems during the reporting period
     None.
Others
     During the reporting period, Liangjiang factory, Jiangbei engine factory, Yubei factory, Lingyao automobile and other
production bases carried out environmental credit evaluation in 2020 according to the requirements of the local competent
department of ecological environment.
     Through multiple measures such as energy structure adjustment, manufacturing efficiency improvement and process technology
optimization, the carbon emission per unit product of vehicle and engine at the (Manufacturing) end of Chang'an Automobile
Enterprise in the first half of 2021 was significantly lower than that in 2020, including 8.6% reduction in carbon emission from single
vehicle manufacturing and 6.1% reduction in carbon emission from single machine manufacturing. Changan Automobile will
continue to promote low-carbon manufacturing and strive to achieve low-carbon, clean and harmonious development of society,
environment and enterprises.


II. Social Responsibility

     2021 is the first year of the 14th five year plan. It is the first year to further consolidate and expand the achievements of poverty
alleviation and continue to promote the development of poverty alleviation areas and the all-round revitalization of rural areas.
Chang'an Automobile makes every effort to consolidate and expand the achievements of poverty alleviation and effectively connect
with rural revitalization, and earnestly fulfill its political and social responsibilities.
     (1) Strengthen leadership and improve political standing
     The Party committee of the company made a special study on the work plan for the effective connection between the
consolidation and expansion of poverty alleviation achievements and Rural Revitalization in 2021, deeply understood the

                                                                       21
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


significance of the effective connection between the consolidation and expansion of poverty alleviation achievements and rural
revitalization, clarified work ideas and responsibility implementation. The Secretary of the Party committee and the chairman of the
board presided over and held three designated assistance meetings for rural revitalization, determined key assistance projects, studied
assistance schemes and formulated assistance measures.
     (2) Orderly promote assistance projects
     According to the unified arrangement of the group company, the Company went to Luxi and Yanshan counties in Yunnan
Province to investigate the designated assistance projects, participate in the project review and select the projects in 2021. By June 30,
10.5 million yuan of assistance funds were allocated to two counties in Yunnan, including 4.5 million yuan in Luxi County and 6
million yuan in Yanshan County, and 1 million yuan of assistance funds were allocated by Chang'an Mazda for the construction of
beautiful villages, the development and growth of rural characteristic industries, infrastructure improvement and other projects, so as
to realize the prosperity of rural industries, livable ecology and affluent life, and comprehensively promote rural revitalization. The
Company gave full play to the advantages of the main automobile industry and focused on skill training, and set up two "Chang'an
Automobile classes" in Yanshan County and Luxi County. In the two counties of Yunnan Province and Youyang of Chongqing
Municipality, the organization implemented the recruitment of experts into the campus. A total of 387 students were recruited,
realizing the employment of one person and lifting the whole family out of poverty. In depth consumer assistance, the Company
encouraged and called on all units and employees to directly purchase 197,800 yuan of agricultural products in the region.
     (3) Innovate and develop characteristic industries
     Implement the overall plan of Chongqing municipal Party committee and Chongqing municipal government on the
implementation of rural revitalization, comprehensively launch the Youyang tea fixed-point assistance project, deeply help the Rural
Revitalization with the new model of "enterprises working together to drive the industry", strive to create new cross-border public
welfare, and strive to practice the social responsibility and responsibility of state-owned enterprises. A designated project
management team for Rural Revitalization was established, a project kick-off meeting was held, a field trip to Youyang was
conducted, the assistance mode was discussed with the local government and enterprises, the Youyang tea brand communication and
assistance scheme was formulated, and the "love has new benefits and you are better" - Changan automobile responded to the special
activity of Rural Revitalization to help Youyang tea brand, and cooperated with Youyang County Government Youzhou ecological
agriculture company to sign the agreement on fixed-point assistance for Rural Revitalization to help Youyang sell more than 50
million yuan of tea. In the first half of 2021, 6.5 million yuan of Youyang tea was sold through the company's channels, and all units
and employees of the company have taken the initiative to buy 209,900 yuan of Youyang tea.
     (4) Do a good job in summary, publicity and commendation
     Do a good job in summarizing and publicizing the targeted poverty alleviation work, especially in summarizing and
commending the efforts and efforts made since the launch of the battle against poverty, so as to create a good atmosphere for jointly
promoting the effective connection between consolidating and expanding the achievements of poverty alleviation and Rural
Revitalization. The poverty alleviation Leading Group Office of the company was awarded the title of "advanced collective for
poverty alleviation" by the group company, and Comrade Yang Juan was awarded the title of "advanced individual for poverty
alleviation".




                                                                   22
                                                         Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                          Chapter 6                   Important Matters

I. 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    □ Not-applicable

  Commitments             Commitment entity               Commitment content               Commitment time    period for commitment      Performance

                   China Southern Fund
                                                                                           October 2020      6 months                  Fulfilled
                   Management Co., Ltd.           The company agrees not to transfer

                   China Galaxy Securities        the shares subscribed for this time
                                                                                           October 2020      6 months                  Fulfilled
                   Co., Ltd.                      within six months from the date of
                                                  the end of this issuance of Changan
                   JPMorgan Chase Bank,
                                                  Automobile (referring to the date        October 2020      6 months                  Fulfilled
                   National Association
                                                  when the shares of this issuance are
                   Guotai Junan Securities Co.,
                                                  listed). The company entrusts the        October 2020      6 months                  Fulfilled
                   Ltd.
                                                  board of directors of Changan
                   Caitong Fund Management Automobile to apply to the Shenzhen
                                                                                           October 2020      6 months                  Fulfilled
                   Co., Ltd.                      Branch of China Securities
                                                  Depository and Clearing Co., Ltd. to
                   Wells Fargo Fund
                                                  lock up the above-mentioned              October 2020      6 months                  Fulfilled
                   Management Co., Ltd.
                                                  subscription shares of the company
                   Guosen Securities Co., Ltd.                                             October 2020      6 months                  Fulfilled
                                                  to ensure that the above-mentioned
Commitments        Chuangjin Hexin Fund           shares held by the company will not
                                                                                           October 2020      6 months                  Fulfilled
made during IPO Management Co., Ltd.
                                                  be transferred within six months
or refinancing
                   Invesco Great Wall Fund        from the end of the issuance.
                                                                                           October 2020      6 months                  Fulfilled
                   Management Co., Ltd.

                                                  1. The company promises to strictly                        Six months before the
                   Southern Industrial Asset      abide by the "Securities Law" on the                       issuance to six months
                                                                                           August 2020                                 Fulfilled
                   Management Co., Ltd.           purchase and sale of listed company                        after the completion of
                                                  stocks, from six months before the                         the issuance
                                                  issuance to six months after the
                                                                                                             Six months before the
                                                  completion of the issuance, not
                   China South Industries                                                                    issuance to six months
                                                  through centralized bidding              August 2020                                 Fulfilled
                   Group Co., Ltd.                                                                           after the completion of
                                                  transactions, block transactions, etc.
                                                                                                             the issuance
                                                  Directly or indirectly buy and sell
                                                  Changan Automobile stocks.                                 Six months before the
                   China Changan Automobile                                                                  issuance to six months
                                                  2. If the company violates the           August 2020                                 Fulfilled
                   Group Co., Ltd.                                                                           after the completion of
                                                  aforesaid commitment to buy and
                                                                                                             the issuance
                                                  sell the shares of Changan


                                                                            23
                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                               Automobile Company, it shall
                                               belong to Changan Automobile for
                                               the proceeds from the illegal trading
                                               of shares of Changan Automobile
                                               Company, and shall be willing to
                                               bear corresponding legal liabilities.

Whether the
promise is fulfilled                                                              Yes
on time



II. The non-operating occupation for the capital by the controlling shareholder of the listed
company and its related parties

□ Applicable     √ Not-applicable


III. Violation of external guarantees

□ Applicable     √ Not-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
                                                                         24
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


□ Applicable   √ Not-applicable


IX. Punishment and rectification

□ Applicable   √ Not-applicable
During the reporting period, there’s no punishment and rectification.


X. The integrity of company and its controlling shareholder, actual controller

□ Applicable   √ Not-applicable


XI. 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


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. Deals with related financial companies and financial companies controlled by the company

√ Applicable   □ Not-applicable
Deposit business

                                                 Maximum daily                                                          Balance at the
                                                                     Deposit                             Amount (ten
                                                  deposit limit                    Beginning balance                   end of the period
  Related party              relation                              interest rate                          thousand
                                                  (ten thousand                    (ten thousand yuan)                  (ten thousand
                                                                         range                              yuan)
                                                      yuan)                                                                 yuan)



                                                                   25
                                                        Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


China           South Holding subsidiary of the
Industries Group actual           controller      of          1050000 0.35%-2.1%                      1006129          39084            1045213
Finance Co., Ltd. Changan Automobile

Changan         Auto Holding subsidiary of the
Finance Co., Ltd. actual          controller      of           750000 2.19%-3.5%                       750000               -             750000
                      Changan Automobile

Loan service

                                                                                                                                 Balance at the
                                                       Loan line (ten                       Beginning
                                                                        Range of loan                         Amount (ten       end of the period
  Related party                  relation                thousand                          balance (ten
                                                                         interest rates                      thousand yuan)      (ten thousand
                                                           yuan)                          thousand yuan)
                                                                                                                                     yuan)

China South           Holding subsidiary of the
Industries Group actual controller of                          70000           1%-5.2%               63330             -2600                 60730
Finance Co., Ltd. Changan Automobile

Credit extension or other financial services

                                                                                             Total Amount (ten           Actual amount (ten
        Related party                  relation                    business type
                                                                                                thousand yuan)              thousand yuan)

                              Holding subsidiary of the
China South Industries
                              actual controller of                      Credit                               1030000                      382700
Group Finance Co., Ltd.
                              Changan Automobile


6. Other significant related transactions


√ applicable     □ not applicable

Related queries in disclosure website of temporary announcement of related transactions


                                                                                    Temporary
                   Name of temporary announcements                                                        Temporary announcement site name
                                                                                 announcement date

Announcement of expected daily related transactions in 2021                        April 1, 2021              http://www.cninfo.com.cn

Announcement on the renewal of the "Daily Related Party
Transaction Framework Agreement" and "Integrated Service                           April 1, 2021              http://www.cninfo.com.cn
Agreement" related party transactions


XII. Major contract and its performance

1. Trusteeship, contracting, leasing matters

(1) Trusteeship
□ Applicable     √ Not-applicable
There is no Trusteeship during the reporting period.


                                                                          26
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


(2) Contracting
□ Applicable   √ Not-applicable
There is no contracting during the reporting period.
(3) Leasing
√ Applicable   □ Not-applicable
Information about leasing
Related party rental situation can be found in Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□ Applicable   √ Not-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits


2. Major guarantee

□ Applicable   √ Not-applicable
There’s no major guarantee during the report period.


3. Entrusted financial management

□ Applicable   √ Not-applicable


4. Major contracts for daily operations

□ Applicable   √ Not-applicable


5. Other major contract

□ Applicable   √ Not-applicable
There’s no other major contract during the reporting period.


XIII. Other important matters

□ Applicable   √ Not-applicable


XIV. Important matters of company subsidiaries

□ Applicable   √ Not-applicable




                                                                  27
                                                        Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




          Chapter 7                 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

                                               Ratio    Additional     Stock      Provident                                                  Ratio
                                Quantity                                                            Other       Subtotal      Quantity
                                               (%)        issued      dividend   fund transfer                                               (%)

Non-circulated shares          560,766,563     10.46%    76,195,400                              -277,609,345 -201,413,945   359,352,618     6.61%

1、State-owned legal person
                               283,138,318     5.28%                                                                         283,138,318     5.21%
shares

2、Other domestic holdings     244,917,965     4.57%     76,195,400                              -244,899,065 -168,703,665    76,214,300     1.40%

Among them: shareholding
                               244,899,065     4.57%                                             -244,899,065 -244,899,065               0   0.00%
by domestic legal persons

shareholding by domestic
                                     18,900    0.00%     76,195,400                                             76,195,400    76,214,300     1.40%
natural persons

3、Foreign shareholding           32,710,280   0.61%                                              -32,710,280 -32,710,280                0   0.00%

Circulated shares             4,802,629,611    89.54%                                            277,609,345 277,609,345 5,080,238,956       93.39%

1、Domestic listed RMB
                              3,900,643,469    72.72%                                            277,609,345 277,609,345 4,178,252,814       76.81%
shares

2、Domestic listed foreign
                               901,986,142     16.82%                                                                        901,986,142     16.58%
shares

Total shares                  5,363,396,174 100.00%      76,195,400                                         0   76,195,400 5,439,591,574 100.00%

Reasons for share change
√ applicable □ not applicable
     1. Initial grant of A-share restricted shares
     The first granted shares of the A-share restricted stock incentive plan were listed on Shenzhen Stock Exchange on March 5,
2021 (see the announcement on the completion of the registration of the first grant of the A-share restricted stock incentive plan for
details). The number of restricted shares granted this time was 76,195,400 shares. After the grant, the total share capital of the
company was changed from 5,363,396,174 shares to 5,439,591,574 shares.
     2. The restrictions on the sale of 2020 non-public issuance of A-share partially lifted
     The company's non-public offering of A shares in 2020 was listed on Shenzhen Stock Exchange on October 26, 2020 (see the
report on the issuance of a shares of non-public development banks and listing announcement  for details), except China
South Industry Group Co., Ltd., China Chang'an Automobile Group Co., Ltd China South Industry Asset Management Co., Ltd., the
                                                                        28
                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


number of shares allocated to other investors is 277,609,345 shares, and these investors promised not to transfer them within 6
months from the date of listing. The commitment expired on April 26, 2021. Therefore, at the end of the reporting period, the
company's shares with limited sales conditions decreased by 277,609,345 shares compared with the beginning of the period, and the
shares with unlimited sales conditions increased by 277,609,345 shares compared with the beginning of the period.
Approval of share change
√ applicable □ not applicable
     On July 13, 2020, the company held the second meeting of the eighth board of directors and the second meeting of the eighth
board of supervisors, deliberated and adopted three proposals related to the restricted stock incentive plan, such as the proposal on
deliberating the company's A-share restricted stock incentive plan (Draft) and its summary.
     On February 1, 2021, the company held the eleventh meeting of the eighth session of the board of directors, and reviewed and
approved two proposals related to the revision of the restricted stock incentive plan.
     On February 18, 2021, the company held the first extraordinary general meeting of shareholders in 2021, and reviewed and
approved 3 proposals related to the restricted stock incentive plan.
     On February 22, 2021, the company held the twelfth meeting of the eighth session of the board of directors, at which it reviewed
and approved the "Proposal on Adjusting the List of Restricted A Shares Incentive Plan and the Number of Incentives Granted" and
"Regarding the Restriction of A Shares" The Proposal for the First Grant of Restricted Stocks to Incentives of the Stock Incentive
Plan.
Transfer of shares
√ applicable □ not applicable
     76,195,400 A-share restricted shares of the company were listed on Shenzhen Stock Exchange on March 5, 2021.
Implementation progress of share repurchase
□ applicable √ not applicable
Implementation progress of reducing and repurchasing shares by means of centralized bidding
□ applicable √ not applicable
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the latest year and
the latest period, and net assets per share attributable to common shareholders of the company
√ applicable □ not applicable
     The granting of A-share restricted shares increased the total share capital by 76,195,400 shares (accounting for 1.40% of the
total share capital after issuance). At the same time, the grant price was lower than the net assets per share, so the basic earnings per
share in the latest year and the latest period decreased, and the net assets per share attributable to the common shareholders of the
company decreased, which had little impact on the financial indicators of the company on the whole.
Other contents deemed necessary by the company or required to be disclosed by the securities regulatory authority
□ applicable √ not applicable


2. Changes in restricted shares

√ Available   □ Not-available
                                                                                                                                 Unit: one share

                                       Number of         Decrease      Increase       Number of
                                                                                                        Reasons for restricted
        Name of shareholders         restricted shares   during the    during the   restricted shares                              Release date
                                                                                                                 sale
                                     at the beginning    reporting     reporting    at the end of the


                                                                      29
                                                       Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                       of the period        period            period       period

China South Industries Group Co.,                                                                        Non-public     issuance
                                           2,764,486                 -                 -     2,764,486                             2023-10-26
Ltd.                                                                                                     of A shares in 2020

                                                                                                         Non-public     issuance
China Changan Automobile Co., Ltd.        93,457,944                 -                 -    93,457,944                             2023-10-26
                                                                                                         of A shares in 2020

Southern Industrial Asset Management                                                                     Non-public     issuance
                                         186,915,888                 -                 -   186,915,888                             2023-10-26
Co., Ltd.                                                                                                of A shares in 2020

China Southern Fund Management                                                                           Non-public     issuance
                                         147,289,719       147,289,719                 -             -                             2021-04-26
Co., Ltd.                                                                                                of A shares in 2020

                                                                                                         Non-public     issuance
China Galaxy Securities Co., Ltd.         38,317,757        38,317,757                 -             -                             2021-04-26
                                                                                                         of A shares in 2020

JPMorgan Chase Bank, National                                                                            Non-public     issuance
                                          32,710,280        32,710,280                 -             -                             2021-04-26
Association                                                                                              of A shares in 2020

                                                                                                         Non-public     issuance
Guotai Junan Securities Co., Ltd.         14,018,691        14,018,691                 -             -                             2021-04-26
                                                                                                         of A shares in 2020

                                                                                                         Non-public     issuance
Caitong Fund Management Co., Ltd.         10,990,654        10,990,654                 -             -                             2021-04-26
                                                                                                         of A shares in 2020

Wells Fargo Fund Management Co.,                                                                         Non-public     issuance
                                          10,319,626        10,319,626                 -             -                             2021-04-26
Ltd.                                                                                                     of A shares in 2020

                                                                                                         Non-public     issuance
Guosen Securities Co., Ltd.               10,280,373        10,280,373                 -             -                             2021-04-26
                                                                                                         of A shares in 2020

Chuangjin Hexin Fund Management                                                                          Non-public     issuance
                                           9,345,794         9,345,794                 -             -                             2021-04-26
Co., Ltd.                                                                                                of A shares in 2020

Invesco Great Wall Fund Management                                                                       Non-public     issuance
                                           4,336,451         4,336,451                 -             -                             2021-04-26
Co., Ltd.                                                                                                of A shares in 2020

                                                                                                                                   6 months after
Zhu Huarong                                    18,900                -                 -        18,900 Executive lock stocks
                                                                                                                                   the retirement

A-share restricted stock                               -             -        25,144,482    25,144,482 Equity incentive            March 5, 2023

A-share restricted stock                               -             -        25,144,482    25,144,482 Equity incentive            March 5, 2024

A-share restricted stock                               -             -        25,906,436    25,906,436 Equity incentive            March 5, 2025

                 Total                   560,766,563       277,609,345        76,195,400   359,352,618             --                      --



II. Issuing and listing of securities

□ Applicable    √ Not-applicable


III. Shareholding and shareholders of the company

                                                                                                                                   Unit: one share

                                                                         30
                                                            Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                          Number of preferred shareholders with resumed
At the end of the report period, the total number of shareholders 326,409                                                                               0
                                                                                          voting     rights       at the period-end

                                      Holding more than 5% of the shareholders, or top 10 shareholders situation

                                                                                           Changes in the Amount of                  Amount of       Pledge, mark or
                                                                       Amount of shares
              Name                         Nature             Ratio                           reporting           restricted        unrestricted     freeze situation
                                                                             held
                                                                                               period             shares held        shares held      Status     Amount

China Changan Automobile Co., State-owned           legal
                                                              18.78%      1,021,502,890                       -    93,457,944         928,044,946
Ltd.                              person shares

China South Industries Group      State-owned       legal
                                                              14.78%       803,844,571 -200,000,000                 2,764,486         801,080,085
Co., Ltd.                         person shares
Southern Industrial Asset         State-owned       legal
                                                               6.12%       332,905,636        145,989,748 186,915,888                 145,989,748
Management Co., Ltd.              person shares

China Securities Finance          domestic general
                                                               4.31%       234,265,333                        -                 -     234,265,333
Corporation Limited               legal person shares

Hong Kong Securities Clearing     foreign legal person
                                                               3.37%       183,516,907          -1,358,272                      -     183,516,907
Company Limited                   shares

United Prosperity (Hongkong)      foreign legal person                                                                                              No pledge,
                                                               2.83%       154,120,237                        -                 -     154,120,237
Investment Co., Limited           shares                                                                                                             mark or

China Merchants Securities Hong domestic general                                                                                                      freeze
                                                               0.82%         44,821,460        24,858,587                       -      44,821,460
Kong Co., Ltd.                    legal person shares
CHINA INT'L CAPITAL CORP foreign legal person
HONG KONG SECURITIES              shares                       0.67%         36,556,389            8,236,915                    -      36,556,389
LTD

GUOTAI JUNAN                      foreign legal person
SECURITIES(HONGKONG)              shares                       0.54%         29,348,253            2,620,817                    -      29,348,253
LIMITED
CAPE ANN GLOBAL                   foreign legal person
DEVELOPING MARKETS                shares                       0.42%         22,637,312         -4,992,448                      -      22,637,312
FUND
                                                            Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd.
                                                            and its wholly-owned subsidiary Southern Industrial Asset Management Co., Ltd., the
Explanation on the relationship and the action alike of
                                                            controlling shareholder China Changan Automobile Co., Ltd. and its wholly-owned subsidiary
above shareholders
                                                            United Prosperity (Hongkong) Investment Co., Limited belong to the concerted actor regulated
                                                            by “Disclosure Administration of Shares Change Information of The Listed Company”.

Explanation of the above-mentioned shareholders'
entrusted/entrusted voting rights and waiver of voting None
rights

                                         Shareholdings of the top 10 ordinary shareholders of unrestricted shares

                                                                           Shares at the year                                       Shares type
                        Name of shareholders
                                                                                    end                                Type                             Amount

China Changan Automobile Co., Ltd.                                                  928,044,946               RMB ordinary shares                           928,044,946
China South Industries Group Co., Ltd.                                              801,080,085               RMB ordinary shares                           801,080,085

China Securities Finance Corporation Limited                                        234,265,333               RMB ordinary shares                           234,265,333


                                                                              31
                                                           Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Hong Kong Securities Clearing Company Limited                                      183,516,907          RMB ordinary shares                       183,516,907

United Prosperity (Hongkong) Investment Co., Limited                               154,120,237      Domestic listed foreign shares                154,120,237

Southern Industrial Asset Management Co., Ltd.                                     145,989,748          RMB ordinary shares                       145,989,748

China Merchants Securities Hong Kong Co., Ltd.                                      44,821,460      Domestic listed foreign shares                 44,821,460

CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD                                   36,556,389      Domestic listed foreign shares                 36,556,389

GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED                                           29,348,253      Domestic listed foreign shares                 29,348,253
CAPE ANN GLOBAL DEVELOPING MARKETS FUND                                             22,637,312      Domestic listed foreign shares                 22,637,312

                                                                          Among the top 10 shareholders, the actual controller China South Industries
Explanation of the relationship or concerted action between the top       Group Co., Ltd. and its wholly-owned subsidiary Southern Industrial Asset
10 ordinary shareholders of unrestricted shares, and between the top Management Co., Ltd., the controlling shareholder China Changan Automobile
10 ordinary shareholders of unrestricted shares and the top 10            Co., Ltd. and its wholly-owned subsidiary United Prosperity (Hongkong)
ordinary shareholders                                                     Investment Co., Limited belong to the concerted actor regulated by “Disclosure
                                                                          Administration of Shares Change Information of The Listed Company”.
                                                                          During the reporting period, China South Industries Group Co., Ltd. participated
Explanation of the participation of the top 10 ordinary shareholders
                                                                          in the refinancing securities lending business, and as of the end of the reporting
in the margin trading and securities lending business
                                                                          period, it had not lent any shares.

Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase
transactions during the report period
□ Available    √ Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchase
transactions during the reporting period.


IV. Changes in the shareholding of directors, supervisors and senior management

√ Available    □ Not-available
                                                                                                                      Number
                                                                                                                                     Number
                                                                 Number                                   Number          of                        Number
                                                                                                                                        of
                                                                 of shares                                      of    restricted                       of
                                                                                                                                     restricted
                                                                  held at                                  shares      stocks                      restricted
                                                                                                                                      stocks
                                               Employment           the          Increase    Reduce       held at     granted at                     stocks
      Name                   Duties                                                                                                  granted in
                                                  status         beginning       (shares)    (shares)     the end        the                       granted at
                                                                                                                                        the
                                                                  of the                                   of the     beginning                    the end of
                                                                                                                                      current
                                                                  period                                  period        of the                     the period
                                                                                                                                      period
                                                                 (shares)                                 (shares)     period                       (shares)
                                                                                                                                      (shares)
                                                                                                                       (shares)

                     Chairman, Secretary
Zhu Huarong          of      the      Party   Incumbent            25,200                                  25,200                      250,000       250,000
                     Committee

Tan Xiaogang         director                 Incumbent

Zhou Zhiping         director                 Incumbent

Zhang Bo             director                 Incumbent


                                                                              32
                                                           Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Liu Gang          director                       Incumbent

                  Director,        President,
Wang Jun          Deputy Secretary of            Incumbent                                                     200,000     200,000
                  the Party Committee

                  Director,              Chief
Zhang Deyong                                     Incumbent                                                     194,000     194,000
                  Accountant

Liu Jipeng        Independent director           Incumbent

Li Qingwen        Independent director           Incumbent

Chen Quanshi      Independent director           Incumbent

Ren Xiaochang     Independent director           Incumbent

Pang Yong         Independent director           Leave office

Tan Xiaosheng     Independent director           Incumbent

Wei Xinjiang      Independent director           Incumbent

Cao Xingquan      Independent director           Incumbent

                  Chairman          of     the
Yan Ming                                         Incumbent
                  Supervisory Board

Sun Dahong        Supervisor                     Incumbent

Zhao Jun          Supervisor                     Leave office

Wang Yanhui       Employee supervisor            Incumbent

Luo Yan           Employee supervisor            Incumbent

                  Deputy Secretary of
Yuan Mingxue                                     Incumbent                                                     200,000     200,000
                  the Party Committee

Liu Bo            Deputy Vice Director           Incumbent                                                     194,000     194,000

He Chaobing       Deputy Vice Director           Incumbent                                                     194,000     194,000

Li Wei            Deputy Vice Director           Incumbent                                                     194,000     194,000

                  Commission               for
Hua Zhanbiao                                     Incumbent                                                     194,000     194,000
                  Discipline Inspection

Tan Benhong       Deputy Vice Director           Incumbent                                                     194,000     194,000

Ye Pei            Deputy Vice Director           Incumbent                                                     194,000     194,000

Zhao Fei          Deputy Vice Director           Incumbent                                                     194,000     194,000

Chen Wei          vice president                 Incumbent                                                     194,000     194,000

Li Mingcai        vice president                 Incumbent                                                     194,000     194,000

                  Secretary         of     the
Li Jun                                           Incumbent                                                     136,600     136,600
                  Board

Total                         --                      --          25,200        0      0    25,200        0   2,726,600   2,726,600

Note: The above conditions are as of June 30, 2021.

                                                                           33
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


V. 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.




                                                                    34
                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                       Chapter 8              Preferred shares

□ Available   √ Not- available
During the reporting period, there were no preferred shares in the company.




                                                Chapter 9               Bonds

□ Available   √ Not- available




                                                                 35
                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                Chapter 10             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                                      2021.6.30                2020.12.31
Current assets:
     Cash                                                                     47,721,342,242.91        32,001,775,600.07
     Trading financial assets                                                    195,349,598.73           204,254,400.00
     Notes receivable                                                         28,778,252,297.19        28,371,541,054.75
     Accounts receivable                                                       1,628,018,973.81         2,141,197,139.45
     Prepayments                                                                 386,980,948.32           460,703,603.80
     Other receivables                                                         1,590,660,654.32           723,919,037.36
     Inventories                                                               4,089,490,661.31         5,967,516,230.57
     Contract assets                                                           1,479,108,607.55         1,450,031,414.61
     Other current assets                                                      1,059,255,213.36         1,568,711,870.61
Total current assets                                                          86,928,459,197.50        72,889,650,351.22
Non-current assets:
     Long-term equity investments                                             11,571,676,934.12        12,109,089,795.67
     Investment in other equity instruments                                      691,990,000.00           691,990,000.00
     Investment properties                                                         6,762,782.38             6,876,138.16
     Fixed assets                                                             23,289,621,403.41        24,298,402,558.49
     Construction in progress                                                    754,885,456.77         1,048,036,148.70
     Right-of-use asset                                                           68,982,797.00
     Intangible assets                                                         4,141,087,463.87         4,433,771,236.26
     Development expenditure                                                     685,346,700.20           596,577,787.95
     Goodwill                                                                     48,883,188.37            48,883,188.37
     Long-term deferred expenses                                                  12,303,868.61            10,642,512.51
     Deferred tax assets                                                       2,257,601,368.14         2,131,266,677.52
Total non-current assets                                                      43,529,141,962.87        45,375,536,043.63
TOTAL ASSETS                                                                 130,457,601,160.37       118,265,186,394.85


                                                                36
                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Current liabilities:
     Short-term loans                                                               552,000,000.00              578,000,000.00
     Notes payable                                                               27,186,257,508.96           17,574,014,553.46
     Accounts payable                                                            24,517,099,039.98            23,118,793,794.42
     Contract liability                                                           4,667,333,563.93             4,471,158,190.75
     Payroll payable                                                              2,132,013,116.53             2,015,868,366.57
     Taxes payable                                                                  607,975,454.79             1,292,001,263.86
     Other payables                                                               3,643,263,561.28             4,475,215,625.98
     Non-current liabilities within one year                                        328,905,578.01              100,000,000.00
     Other current liabilities                                                    6,688,307,507.13             5,842,758,104.08
Total current liabilities                                                        70,323,155,330.61           59,467,809,899.12
Non-current liabilities:
     Long-term loans                                                                654,300,000.00              955,300,000.00
     Lease liability                                                                 26,430,150.16
     Long-term payables                                                             207,811,375.66              261,260,928.70
     Long-term payroll payable                                                       38,679,134.87                41,634,000.00
     Estimated liabilities                                                        3,542,337,828.97             3,125,170,942.46
     Deferred Revenue                                                             1,260,920,806.57              818,398,430.21
     Deferred tax liabilities                                                       112,438,837.91              115,304,728.61
Total non-current liabilities                                                     5,842,918,134.14             5,317,069,029.98
Total liabilities                                                                76,166,073,464.75           64,784,878,929.10
Owners’ equity (or Shareholders’ equity):
     Share capital                                                                5,439,591,574.00             5,363,396,174.00
     Capital reserves                                                            11,469,222,886.42           10,930,781,918.64
     Other comprehensive income                                                     100,241,005.41                78,420,720.78
     Special reserves                                                                76,873,092.46                40,847,443.41
     Surplus reserves                                                             2,681,698,087.00             2,681,698,087.00
     Retained earnings                                                           34,378,050,740.32           34,315,048,892.26
Equity attributable to owners                                                    54,145,677,385.61           53,410,193,236.09
Minority interests                                                                  145,850,310.01                70,114,229.66
Total Owners’ equity (or Shareholders’ equity)                                 54,291,527,695.62           53,480,307,465.75
Liabilities and owners' equity (or shareholders' equity) in total               130,457,601,160.37          118,265,186,394.85

Legal person: Zhu Huarong             Chief financial officer: Zhang Deyong   The head of accounting department: Chen Jianfeng


2. Balance sheet

                                                                                                                  In RMB Yuan

                                  Account                                        2021.6.30                   2020.12.31
Current assets:
     Cash                                                                        39,359,211,333.65           25,238,014,025.38
     Trading financial assets                                                       163,778,100.00              180,929,400.00
     Notes receivable                                                            27,048,733,022.00            27,248,111,565.13
     Accounts receivable                                                          5,198,476,575.07             5,464,541,185.63
                                                                    37
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     Prepayments                                                                   46,538,503.37           294,088,044.01
     Other receivables                                                          2,547,332,338.02         1,990,616,778.83
     Inventories                                                                2,258,720,911.74         4,332,579,774.46
     Contract assets                                                              933,593,869.30           941,046,613.60
     Other current assets                                                            658,687.55            322,467,261.74
Total current assets                                                           77,557,043,340.70        66,012,394,648.78
Non-current assets:
     Long-term equity investments                                              15,568,378,568.08        15,911,304,527.87
     Investment in other equity instruments                                       681,630,000.00           681,630,000.00
     Fixed assets                                                              17,518,367,432.00        18,282,163,718.91
     Construction in progress                                                     546,437,512.04           586,144,839.34
     Right-of-use asset                                                            65,971,266.98
     Intangible assets                                                          2,946,491,055.75         3,166,081,547.59
     Development expenditure                                                      654,152,078.23           555,569,523.02
     Long-term deferred expenses                                                    9,131,889.88             7,470,626.86
     Deferred tax assets                                                        1,904,135,032.43         1,803,491,965.40
Total non-current assets                                                       39,894,694,835.39        40,993,856,748.99
TOTAL ASSETS                                                                  117,451,738,176.09       107,006,251,397.77
Current liabilities:
     Short-term loans                                                             510,000,000.00           510,000,000.00
     Notes payable                                                             24,003,015,056.60        14,600,240,612.86
     accounts payable                                                          18,528,961,362.63        18,770,044,628.44
     Contract liability                                                         4,023,516,395.94         3,885,522,883.33
     Payroll payable                                                            1,804,689,675.09         1,604,474,120.45
     Taxes payable                                                                395,274,764.10         1,045,768,022.62
     Other payables                                                             3,478,459,800.03         3,166,636,684.63
     Non-current liabilities due within one year                                  301,000,000.00           100,000,000.00
     Other current liabilities                                                  5,804,606,576.64         5,235,294,795.79
Total current liabilities                                                      58,849,523,631.03        48,917,981,748.12
Non-current liabilities:
     Long-term loans                                                              654,300,000.00           955,300,000.00
     Lease liability                                                               62,699,737.43
     Long-term payables                                                           147,525,746.26           187,142,303.66
     Long-term payroll payable                                                     18,953,292.97            21,657,000.00
     Estimated liabilities                                                      2,650,626,670.22         2,196,924,682.57
     Deferred Revenue                                                             150,000,000.00           150,000,000.00
     Deferred tax liabilities                                                      72,585,956.38            75,158,651.38
Total non-current liabilities                                                   3,756,691,403.26         3,586,182,637.61
Total liabilities                                                              62,606,215,034.29        52,504,164,385.73
Owners’ equity (or Shareholders’ equity):
     Share capital                                                              5,439,591,574.00         5,363,396,174.00
     Capital reserves                                                          10,979,337,870.30        10,440,896,902.52
     Other comprehensive income                                                   159,954,052.00           159,954,052.00
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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     Special reserves                                                                16,479,840.77             7,505,438.57
     Surplus reserves                                                             2,681,698,087.00        2,681,698,087.00
     Retained earnings                                                           35,568,461,717.73       35,848,636,357.95
Total Owners’ equity (or Shareholders’ equity)                                 54,845,523,141.80       54,502,087,012.04
Liabilities and owners' equity (or shareholders' equity) in total               117,451,738,176.09      107,006,251,397.77


3. Consolidated Income Statement

                                                                                                              In RMB Yuan

                              Account                                      Current Period               Prior Period

1.Total operating revenue                                                       56,784,631,899.07        32,781,657,479.10

Less:Operating cost                                                             48,086,677,229.21        29,578,074,559.16

     Tax and surcharges                                                          2,087,694,667.07         1,206,286,383.45

     Operating expenses                                                          2,146,115,312.19         1,270,716,006.91

     General and administrative expenses                                         2,217,147,044.50         1,145,860,984.31

     Research and development expenses                                           1,495,583,362.16         1,423,575,470.37

     Financial expenses                                                           -233,776,490.65            -98,218,545.38

          Interest expense                                                          26,372,186.29             20,373,153.36

          Interest income                                                          281,294,223.92           131,048,028.86

Add: Other income                                                                  106,783,041.12

     Investment income                                                             327,872,465.08         3,000,803,663.99

     Including: Investment income from associates and joint
                                                                                   250,708,951.37           -528,282,156.89
venture

     Gains from changes in fair value                                               15,734,698.73         1,753,674,697.00

     Credit impairment loss                                                         -3,486,242.35            -18,713,783.01

     Asset impairment loss                                                        -195,687,107.11           -212,828,953.71

     Gain on disposal of assets                                                    601,066,861.33             33,428,646.97

3.Operating profit                                                               1,837,474,491.39          2,811,726,891.52

Add: Non-operating income                                                           40,983,845.94             31,178,860.44

Less: Non-operating expenses                                                        14,103,602.29             51,351,646.13

4.Total profit                                                                   1,864,354,735.04         2,791,554,105.83

Less: Income tax expense                                                            59,373,446.09           189,931,296.64

5.Net profit                                                                     1,804,981,288.95         2,601,622,809.19

Classification by going concern

     Net profit from continuing operations                                       1,804,981,288.95         2,601,622,809.19

     Net profit from discontinued operations


                                                                    39
                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Classification by ownership attribution

     Net profit attributable to owners                                          1,729,245,208.60          2,602,166,402.68

     Minority interests                                                            75,736,080.35               -543,593.49

6.Other comprehensive income, net of tax                                           21,820,284.63              6,766,939.37

     Net     after-tax   net   of   other   comprehensive   income
                                                                                   21,820,284.63              6,766,939.37
attributable to the parent company owner

           Other comprehensive income that will be reclassified
                                                                                   21,820,284.63              6,766,939.37
into profit or loss

                 Foreign currency financial statement translation
                                                                                   21,820,284.63              6,766,939.37
difference

7.Total comprehensive income                                                    1,826,801,573.58          2,608,389,748.56

     Total comprehensive income attributable to owners                          1,751,065,493.23          2,608,933,342.05

     Total comprehensive income attributable to minority
                                                                                   75,736,080.35               -543,593.49
interest

8.Earnings per share

     Basic earnings per share                                                               0.32                      0.54

     Diluted earnings per share                                                    Not applicable            Not applicable


4. Income Statement

                                                                                                              In RMB Yuan

                                Account                                    Current Period              Prior Period

1.Operating revenue                                                           52,828,405,180.72          29,758,919,897.37

Less: Operating cost                                                          45,513,544,394.59          27,864,973,824.68

     Tax and surcharges                                                        1,525,114,802.32             762,021,502.79

     Operating expenses                                                        1,736,500,574.77             961,038,581.56

     General and administrative expenses                                       1,878,247,754.81             715,649,867.54

     Research and development expenses                                         1,298,099,887.53           1,380,814,145.22

     Financial expenses                                                         -204,613,231.91             -98,135,764.79

           Interest expense                                                       21,764,130.34               4,888,747.72

           Interest income                                                       236,842,142.30             110,304,548.86

Add: Other income

     Investment income                                                           428,119,303.94           2,317,139,772.66

     Including: Investment income from associates and joint
                                                                                 349,815,853.13            -430,245,711.08
venture

     Gains from changes in fair value                                            -17,151,300.00             -21,300,000.00

                                                                     40
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     Credit impairment loss                                                      -2,086,388.91              -16,528,225.28

     Asset impairment loss                                                     -213,509,747.87            -167,332,499.89

     Gain on disposal of assets                                                   4,920,912.69              -10,976,304.75

2.Operating profit                                                            1,281,803,778.46             273,560,483.11

Add: Non-operating income                                                        11,549,617.96               22,925,521.70

Less: Non-operating expenses                                                     10,500,438.13               43,916,807.17

3.Total profit                                                                1,282,852,958.29             252,569,197.64

Less: Income tax expense                                                       -103,215,762.03              -85,786,079.95

4.Net profit                                                                  1,386,068,720.32             338,355,277.59

     Net profit from continuing operations                                    1,386,068,720.32             338,355,277.59

     Net profit from discontinued operations

5.Other comprehensive income, net of tax

6.Total comprehensive income                                                  1,386,068,720.32             338,355,277.59

7.Earnings per share

     Basic earnings per share                                                               0.25                      0.07

     Diluted earnings per share                                                 Not applicable              Not applicable


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                63,916,698,589.71         39,547,166,284.75

     Refunds of taxes                                                           479,978,596.74             212,875,606.35

     Cash received relating to other operating activities                      1,798,083,078.94          1,460,594,720.28

Subtotal of cash inflows                                                      66,194,760,265.39         41,220,636,611.38

     Cash paid for goods and services                                         37,506,989,506.50         26,823,061,336.77

     Cash paid to and on behalf of employees                                   3,273,064,979.18          2,602,751,432.93

     Cash paid for all types of taxes                                          4,360,350,113.07          1,774,453,965.05

     Cash paid relating to other operating activities                          3,355,528,796.27          3,107,783,183.03

Subtotal of cash outflows                                                     48,495,933,395.02         34,308,049,917.78

Net cash flows from operating activities                                      17,698,826,870.37          6,912,586,693.60

2.Cashflows from investing activities:


                                                                 41
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     Cash received from investment income                                         10,806,875.00              52,200,268.08

     Net cash received from disposal of fixed assets, intangible assets
                                                                                  47,111,653.89              50,925,772.51
and other long-term assets

     Cash received relating to other investing activities                       300,000,000.00                2,401,804.55

Subtotal of cash inflows                                                        357,918,528.89             105,527,845.14

     Cash paid for acquisition of fixed assets, intangible assets and
                                                                               1,022,801,871.76          1,240,508,778.71
other long-term assets

     Cash paid for acquisition of investments                                      1,000,000.00              13,494,996.00


     Cash paid relating to other investing activities                                                      104,231,229.20


Subtotal of cash outflows                                                      1,023,801,871.76          1,358,235,003.91

Net cash flows from investing activities                                        -665,883,342.87          -1,252,707,158.77


3.Cash flows from financing activities:


     Absorb cash received from investment                                       507,461,364.00                            -

     Cash received from borrowing                                                 20,000,000.00          1,661,945,472.30

     Cash received relating to other financing activities                       312,220,372.75             330,073,299.87

Subtotal of cash inflows                                                        839,681,736.75           1,992,018,772.17

     Cash repayments of borrowings                                              146,000,000.00               26,000,000.00

     Cash paid for distribution of dividends or profits and interest
                                                                               1,690,977,626.11              14,711,837.52
expenses

     Cash paid relating to other financing activities                           418,592,802.69             141,928,386.47

Subtotal of cash outflows                                                      2,255,570,428.80            182,640,223.99

Net cash flows from financing activities                                      -1,415,888,692.05          1,809,378,548.18

4.Effect of changes in exchange rate on cash                                      -3,619,293.07              -8,613,576.66

5.Net increase in cash and cash equivalents                                   15,613,435,542.38          7,460,644,506.35

Add: Opening balance of cash and cash equivalents                             30,655,968,057.63          9,360,474,674.89

6.Closing balance of cash and cash equivalents                                46,269,403,600.01         16,821,119,181.24


6. Cash flow statement

                                                                                                             In RMB Yuan

                               Account                                     Current Period              Prior Period



                                                                  42
                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


1.Cash flows from operating activities:

     Cash received from sale of goods or rendering of services                55,145,607,987.10         35,373,943,984.62

     Cash received relating to other operating activities                      1,092,865,948.69            307,884,774.24

Subtotal of cash inflows                                                      56,238,473,935.79         35,681,828,758.86

     Cash paid for goods and services                                         31,953,727,307.50         24,853,008,533.51

     Cash paid to and on behalf of employees                                   2,404,181,310.34          1,869,061,222.17

     Cash paid for all types of taxes                                          3,332,896,561.58            745,408,673.77

     Cash paid relating to other operating activities                          2,779,051,429.05          1,991,778,401.18

Subtotal of cash outflows                                                     40,469,856,608.47         29,459,256,830.63

Net cash flows from operating activities                                      15,768,617,327.32          6,222,571,928.23

2.Cashflows from investing activities:

     Cash received from return on investments                                     12,015,208.33             56,622,717.45

     Net cash received from disposal of fixed assets, intangible assets
                                                                                   7,594,323.89                 93,034.76
and other long-term assets

     Other cash received relating to investing activities                       500,000,000.00

Subtotal of cash inflows                                                        519,609,532.22              56,715,752.21

     Cash paid for acquisition of fixed assets, intangible assets and
                                                                                883,493,763.31             992,736,013.34
other long-term assets

     Cash paid for acquisition of investments                                      1,000,000.00            186,108,581.00

Subtotal of cash outflows                                                       884,493,763.31           1,178,844,594.34

Net cash flows from investing activities                                        -364,884,231.09         -1,122,128,842.13

3.Cash flows from financing activities:

     Absorb cash received from investment                                       507,461,364.00                            -

     Cash received from borrowings                                                                       1,500,000,000.00

Subtotal of cash inflows                                                        507,461,364.00           1,500,000,000.00

     Cash paid for debt repayment                                               100,000,000.00

     Cash paid for distribution of dividends or profits and interest
                                                                               1,689,755,862.22              3,676,533.11
expenses

     Cash paid relating to other financing activities                             31,241,289.74

Subtotal of cash outflows                                                      1,820,997,151.96              3,676,533.11

Net cash flows from financing activities                                      -1,313,535,787.96          1,496,323,466.89

4.Effect of changes in exchange rate on cash

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                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


5.Net increase in cash and cash equivalents                                 14,090,197,308.27          6,596,766,552.99

Add: Opening balance of cash and cash equivalents                           25,190,870,784.06          6,563,020,335.56

6.Closing balance of cash and cash equivalents                              39,281,068,092.33         13,159,786,888.55




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                                                                                                               Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


7. Consolidated statement of changes in shareholders’ equity

                                                                                                                                                                                             In RMB Yuan

                                                                                                             Current period

                                                                                    Equity attributable to owners
                Items                                                                                                                                                      Minority
                                                                           Less:                                                                            Other
                                                                                      Special                            General       Retained                                              Total equity
                                      Share capital     Capital reserves Treasury                    Surplus reserves                                   comprehensive       interest
                                                                                     reserves                            reserves      earnings
                                                                           shares                                                                          income

  I. At end of last year              5,363,396,174.00 10,930,781,918.64            40,847,443.41     2,681,698,087.00              34,315,048,892.26      78,420,720.78   70,114,229.66 53,480,307,465.75


  II. At beginning of year            5,363,396,174.00 10,930,781,918.64            40,847,443.41     2,681,698,087.00              34,315,048,892.26      78,420,720.78   70,114,229.66 53,480,307,465.75


  III. Changes during the year          76,195,400.00     538,440,967.78            36,025,649.05                                      63,001,848.06       21,820,284.63   75,736,080.35     811,220,229.87


   1.Total comprehensive income                                                                                                      1,729,245,208.60      21,820,284.63   75,736,080.35 1,826,801,573.58

   2. Capital contributed by owners
                                        76,195,400.00     538,440,967.78                                                                                                                     614,636,367.78
and capital decreases

   The amount of share-based
                                        76,195,400.00     538,440,967.78                                                                                                                     614,636,367.78
payment included in owner's equity

   3. Distribution of profit                                                                                                        -1,666,243,360.54                                      -1,666,243,360.54

   Distribution to owners                                                                                                           -1,666,243,360.54                                      -1,666,243,360.54

   4. Special reserves                                                              36,025,649.05                                                                                             36,025,649.05

   (1) Pick-up in current period                                                    61,973,559.99                                                                                             61,973,559.99

   (2) Used in current period                                                       -25,947,910.94                                                                                           -25,947,910.94

  IV. At end of current period        5,439,591,574.00 11,469,222,886.42            76,873,092.46     2,681,698,087.00              34,378,050,740.32     100,241,005.41 145,850,310.0154,291,527,695.62


                                                                                                45
                                                                                                                  Chongqing Changan Automobile Company Limited 2021 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 5,366,097,594.66            47,076,242.71 2,401,324,255.50                   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            47,076,242.71 2,401,324,255.50                   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

   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




                                                                                                  46
                                                                                                         Chongqing Changan Automobile Company Limited 2021 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              5,363,396,174.00 10,440,896,902.52                 7,505,438.57 2,681,698,087.00 35,848,636,357.95        159,954,052.00   54,502,087,012.04

  II.    At beginning of year             5,363,396,174.00 10,440,896,902.52                 7,505,438.57 2,681,698,087.00 35,848,636,357.95        159,954,052.00   54,502,087,012.04

  III.   Changes during the year             76,195,400.00    538,440,967.78                 8,974,402.20                        -280,174,640.22                       343,436,129.76

   1.Total comprehensive income                                                                                                 1,386,068,720.32                      1,386,068,720.32

   2. Capital contributed by owners and
                                             76,195,400.00    538,440,967.78                                                                                           614,636,367.78
capital decreases

   The amount of share-based payment
                                             76,195,400.00    538,440,967.78                                                                                           614,636,367.78
included in owner's equity

   3. Distribution of profit                                                                                                   -1,666,243,360.54                     -1,666,243,360.54

   Distribution to owners                                                                                                      -1,666,243,360.54                     -1,666,243,360.54

   4. Special reserves                                                                       8,974,402.20                                                                 8,974,402.20

   (1) Pick-up in current period                                                         26,035,435.80                                                                  26,035,435.80

   (2) Used in current period                                                            -17,061,033.60                                                                 -17,061,033.60

  IV. At end of current period            5,439,591,574.00 10,979,337,870.30             16,479,840.77 2,681,698,087.00 35,568,461,717.73           159,954,052.00   54,845,523,141.80




                                                                                        47
                                                                                                             Chongqing Changan Automobile Company Limited 2021 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    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

   3. Distribution of profit

   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 2021 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,
2021, 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 company1,175,623,127 shares with an equity ratio of 21.61%. 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 1,139,295,521 ordinary shares of the company, with a 20.90%
shareholding ratio. China Changan and China South Group holds ordinary shares 2,314,918,648 in total with a shareholding ratio of
42.56%.


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.


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, inventory valuation, depreciation of fixed assets,
intangible assets amortization, condition of capitalization of research and development expense and revenue recognition and
measurement.




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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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 31 December 2020 and the financial
results and the cash flows for the 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
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 recognized 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

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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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 recognize 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.


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 ventures. Joint ventures refer to those joint
venture arrangements, only the right to net assets of which is enjoyed by the joint ventures.


Any joint venture shall recognize the following items related to its share of benefits in the joint operation and conduct accounting

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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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
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

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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




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.


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

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                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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


Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, other financial
liabilities. 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
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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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.


Please refer to Note VIII.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 realize 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

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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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.


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 according to the relationship between performance
obligations and customer payments. The group presents the contract assets and contract liabilities under the same contract in net
amount after offsetting each other.


Contract assets


Contract assets refer to the right to receive consideration for goods or services transferred to customers, and the right depends on
other factors other than the passage of time.




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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


The group's determination method and accounting treatment method of expected credit loss of contract assets are detailed in note V
and 9.


Contractual liabilities


Contractual liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable
from customers, such as the amount received by the enterprise before transferring the promised goods or services.


12. Long-term equity investments


Long-term equity investments include investments in subsidiaries, joint ventures and associates.



Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquired

through a business combination under common control, the initial investment cost of the long-term equity investment shall be the

absorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financial

statements of the ultimate controlling party at combination date. The difference between the initial investment cost and the carrying

amount of cash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital

reserve is not sufficient, any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognized

shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets or

liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss, other comprehensive

income and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. For those partially

disposed equity investments, gains or losses upon disposal are proportionately recognized in profit or loss when they still constitute

long-term equity investments after the disposal and are fully charged to profit or loss when they are reclassified to financial

instruments after the disposal. For business combination involving entities not under common control, the initial investment cost

should be the cost of acquisition (for step acquisitions not under common control, the initial investment cost is the sum of the

carrying amount of the equity investment in the acquiree held before the acquisition date and the additional investment cost paid on

the acquisition date), which is the sum of the fair value of assets transferred, liabilities incurred or assumed and equity instruments

issued. If the equity investments in the acquiree involve other comprehensive income prior to the acquisition date, when disposing of

the investments, the relevant other comprehensive income will be accounted for on the same basis as would have been required if

the investee had directly disposed of the related assets or liabilities. The portion recognized based on changes in the investee’s equity

(other than net profit or loss, other comprehensive income and profit appropriation) is charged to profit or loss upon disposal of such

long-term equity investment. The initial investment cost of a long-term equity investment acquired otherwise than through a

business combination shall be determined as follows: for a long-term equity investment acquired by paying cash, the initial

investment cost shall be the actual purchase price has been paid plus those costs, taxes and other necessary expenditures directly

attributable to the acquisition of the long-term equity investment; for those acquired by the issue of equity securities, the initial

investment cost shall be the fair value of the equity securities issued.



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.
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                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




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 ventures). Significant influence is the power to participate in the financial and operating policy decisions of an economic
activity but is not control or joint control over those policies.


Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in
the fair values of the investee’s identifiable net assets at the acquisition date, the difference is accounted for as an initial cost. As to
the initial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the
acquisition date, the difference shall be charged to the income statement for the current period, and the cost of the long-term equity
investment shall be adjusted accordingly.


Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as a
gain or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in the
net profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entity
when the investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the portion of the
profits or losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according to
the share ratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be recognized in
full), recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced
to the extent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, the
share of net loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that the
Group has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity
investment for other changes in owners’ equity of the investee enterprise (other than net profits or losses), and include the
corresponding adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respective
long-term investment.


On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall
be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement
of the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would be
required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the
equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the income statement for the current period.
If the remaining equities still be measured under the equity method, accumulative change previously recorded in other
comprehensive income shall be transferred to current profit or loss, in measurement on the same basis as the invested entity had
directly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferred
to the current income statement on settlement of the equity investment on the disposal proportion.




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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


13. Investment property


Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land use
right which is held and prepared for transfer after appreciation, and rented building.


The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an
investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate are
likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be
included in the current profits and losses upon occurrence.


The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under
straight-line method.


14. Fixed 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.


15. Construction in progress


The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessary

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construction expenditure incurred during the construction period, borrowing costs that should be capitalized before the construction
reaches the condition for intended use and other relevant expenses.


Construction in progress is transferred to fixed assets when the asset is ready for its intended use.


16. Borrowing costs


Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costs
include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the
arrangement of borrowings, and exchange differences arising from foreign currency borrowings.


The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized,
otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of
property, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use
of sale.


The capitalization of borrowing costs 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.


17. Right of use assets


Recognition conditions of right to use assets


On the beginning date of the lease term, the Group recognizes the right to use assets for leases other than short-term leases and low

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value asset leases.


The right of use assets are initially measured at cost. This cost includes:


1) Initial measurement amount of lease liabilities;
2) For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of lease
incentive enjoyed shall be deducted;
3) Initial direct costs incurred;
4) The estimated costs incurred for dismantling and removing the leased assets, restoring the site where the leased assets are located
or restoring the leased assets to the state agreed in the lease terms.
Depreciation method of right of use assets


The group adopts the straight-line method for depreciation. If the group, as the lessee, can reasonably determine the ownership of the
leased asset at the expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased asset. If it
is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term,
depreciation shall be accrued within the shorter of the lease term and the remaining service life of the leased asset.


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
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.

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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, contract assets and assets related to contract
costs, deferred income taxes, and financial assets, using the following methods:


The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists
that an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwill
arising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the end
of every year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not ready
for its intended use is tested for impairment at least at the end of every year.


The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow
expected to be derived from the asset.     The Group estimates the recoverable amount on an individual basis. If it is not possible to

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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
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 actual employees salaries and are charged to the statement of profit
or loss as they become payable in balance sheet.

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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 recognized 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
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
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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. Revenue from contracts with customers


The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtains
control of the relevant goods or services. Obtaining control over 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.


Contracts for the sale of goods


A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods,
transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods, the
Group usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators,
which include: a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transfer
of legal title to goods, the transfer of physical possession of goods, the customer’s acceptance of goods.


Provide service contract


The performance obligations of the service provision contract between the Group and the customer are due to the fact that the
customer obtains and consumes the economic benefits brought by the performance of the group at the same time the group performs
the contract, and the group has the right to accumulate the economic benefits during the entire contract period. The Group regards it
as a performance obligation performed within a period, and recognizes the revenue according to the performance progress, unless the
performance progress cannot be reasonably determined. In accordance with the output method, the Group determines the progress of
the performance of the service provided based on the completed or delivered products. When the performance progress cannot be
reasonably determined, if the cost incurred by the Group is expected to be compensated, the revenue will be recognized according to
the amount of the cost incurred until the performance progress can be reasonably determined.


Variable consideration


Some contracts between the Group and customers have sales rebate arrangements, 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.

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Warranty obligations


In accordance with contractual agreements and legal provisions, the Group provides quality assurance for the goods sold. For
guarantee quality assurance to ensure that the products sold meet the established standards, the Group conducts accounting treatment
in accordance with Note III, 21. For the service quality assurance that provides a separate service in addition to the established
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 quality assurance 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.


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 fees expected to be
charged. This amount should be based on 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 proportions, etc.


25. Share based payment


Share based payment is divided into equity settled share based payment and cash settled share based payment. Equity settled share
based payment refers to the transaction settled by the group with shares or other equity instruments as consideration for obtaining
services.


Where equity settled share based payment is exchanged for services provided by employees, it shall be measured at the fair value of
equity instruments granted to employees. If the right is exercisable immediately after the grant, it shall be included in the relevant
costs or expenses according to the fair value on the date of grant, and the capital reserve shall be increased accordingly; If the right
can only be exercised after completing the services in the waiting period or meeting the specified performance conditions, on each
balance sheet date in the waiting period, based on the best estimate of the number of exercisable equity instruments, the services
obtained in the current period shall be included in the relevant costs or expenses according to the fair value on the grant date, and the
capital reserve shall be increased accordingly.


For the share based payment that fails to exercise due to non market conditions and / or service term conditions, no costs or expenses
are recognized. If the market conditions or non exercisable conditions are specified in the share based payment agreement, no matter
whether the market conditions or non exercisable conditions are met or not, as long as all other performance conditions and / or
service term conditions are met, it is deemed to be exercisable.




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If the terms of equity settled share based payment are modified, the services obtained shall be recognized at least according to the
unmodified terms. In addition, the increase in the fair value of the granted equity instruments or the change beneficial to the
employees on the modification date shall be recognized as the increase in the services obtained.


If the equity settled share based payment is cancelled, it shall be treated as accelerated exercise on the cancellation date, and the
unrecognized amount shall be recognized immediately. If an employee or other party can choose to meet the non exercisable
conditions but fails to meet them within the waiting period, it shall be treated as canceling the equity settled share based payment.
However, if a new equity instrument is granted and it is determined that the granted new equity instrument is used to replace the
cancelled equity instrument on the grant date of the new equity instrument, the granted alternative equity instrument shall be treated
in the same way as the modification of the terms and conditions of the original equity instrument.


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
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)

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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
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
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income tax liabilities with net amount or obtain assets and pay off debts at the same time.


28. Lease liabilities


At the beginning of the lease term, the Group recognizes the present value of the unpaid lease payments as lease liabilities, except for
short-term leases and low value asset leases. When calculating the present value of lease payments, the group adopts the interest rate
embedded in the lease as the discount rate; If the interest rate embedded in the lease cannot be determined, the lessee's incremental
loan interest rate shall be used as the discount rate. The group calculates the interest expense of the lease liability in each period of
the lease term according to the fixed periodic interest rate and records it into the current profit and loss, unless otherwise specified, it
is included into the cost of relevant assets. The amount of variable lease payments not included in the measurement of lease liabilities
shall be included in the current profits and losses when they actually occur, unless otherwise specified to be included in the cost of
relevant assets.


After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of the
guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results or
actual exercise of the purchase option, renewal option or termination option change, The group remeasures the lease liabilities
according to the present value of the changed lease payments.


29. Lease


Identification of leases


On the contract commencement date, the group evaluates whether the contract is a lease or includes a lease. If one party in the
contract transfers the right to control the use of one or more identified assets within a certain period in exchange for consideration,
the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the use of the
identified assets within a certain period, the group evaluates whether the customers in the contract have the right to obtain almost all
the economic benefits arising from the use of the identified assets during the use period, and have the right to dominate the use of the
identified assets during the use period.


Identification of individual leases


If the contract contains multiple separate leases at the same time, the group will split the contract and conduct accounting treatment
for each separate lease. If the following conditions are met at the same time, the right to use the identified assets constitutes a
separate lease in the contract:


(1) The lessee can profit from the use of the asset alone or in combination with other easily available resources;


(2) The asset is not highly dependent or highly related to other assets in the contract.


Spin off of leased and non leased parts


If the contract includes both lease and non lease parts, the group, as the lessor and lessee, will split the lease and non lease parts for
accounting treatment;


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Evaluation of lease term


The lease term is the irrevocable period during which the group has the right to use the leased assets. The group has the option to
renew the lease, that is, it has the option to renew the asset. If it is reasonably determined that the option will be exercised, the lease
term also includes the period covered by the option to renew the lease. The group has the option to terminate the lease, that is, it has
the option to terminate the lease of the asset, but it is reasonably determined that it will not exercise the option, and the lease term
includes the period covered by the option to terminate the lease. If a major event or change occurs within the control of the group and
affects whether the group reasonably determines that it will exercise the corresponding option, the group reassesses whether it
reasonably determines that it will exercise the renewal option, the purchase option or not to exercise the termination option.


As lessee


For the general accounting treatment of the group as lessee, see notes V and 17 and notes V and 28.


Lease change


Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,
including increasing or terminating the use right of one or more leased assets, extending or shortening the lease term specified in the
contract, etc.


If the lease changes and the following conditions are met at the same time, the group will treat the lease change as a separate lease for
accounting treatment:


(1) The lease change expands the lease scope by increasing the use right of one or more leased assets;


(2) The increased consideration is equivalent to the amount of the separate price for most of the expansion of the lease scope adjusted
according to the conditions of the contract.


If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the group redefines the lease
term and discounts the changed lease payment at the revised discount rate to re measure the lease liability. When calculating the
present value of the lease payment after the change, the group adopts the lease embedded interest rate during the remaining lease
period as the discount rate; If the implicit interest rate of the lease for the remaining lease period cannot be determined, the group's
incremental loan interest rate on the effective date of the lease change shall be used as the discount rate.


With regard to the impact of the above lease liability adjustment, the group makes accounting treatment according to the following
circumstances:


(1) If the lease scope is reduced or the lease term is shortened due to the lease change, the group reduces the book value of the right
of use assets to reflect the partial or complete termination of the lease, and the relevant gains or losses of the partial or complete
termination of the lease are included in the current profit and loss;


(2) For other lease changes, the group adjusts the book value of the right to use assets accordingly.


Short term leases and low value asset leases

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The Group recognizes the lease with a lease term of no more than 12 months and excluding the purchase option as a short-term lease
on the beginning date of the lease term; Leases with insignificant value when a single leased asset is a new asset are recognized as
low value asset leases. Where the group sublets or expects to sublet leased assets, the original lease is not recognized as a low value
asset lease. The group does not recognize the right to use assets and lease liabilities for short-term leases and low value asset leases.
In each period of the lease term, it shall be included in the relevant asset cost or current profit and loss according to the straight-line
method.


As lessor


Leases that have substantially transferred almost all the risks and rewards related to the ownership of the leased assets on the lease
commencement date are finance leases, except for operating leases.


As an operating lessor


The rental income from operating leases is recognized as the current profit and loss by the straight-line method in each period of the
lease term, and the variable lease payments not included in the lease receipts are included in the current profit and loss when they
actually occur.


30. Profit distribution


The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.


31. 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.


32. 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.


The Group measures 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 in the
principal market for the asset or liability or in the most advantageous market for the asset or liability when a principal market is
                                                                     71
                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


absent. The principal or the most advantageous market must be accessible to 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 and other supporting
information are available to measure fair value, giving priority to the use of relevant observable inputs, and using unobservable
inputs only when observable inputs are unavailable or not feasible to obtain.


All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities


Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable


Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable


For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers
have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.


33. 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:


Business model
The classification of financial assets at initial recognition depends on the business model of the Group’s management of financial
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.


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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.
It 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
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



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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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.


34. Changes in accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ applicable □ not applicable
The new lease criteria will be implemented for the first time since 2021
On December 7, 2018, the Ministry of Finance revised and issued accounting standards for Business Enterprises No. 21 - leasing
(CK [2018] No. 35). According to the requirements of the Ministry of finance, enterprises listed at home and abroad and enterprises
listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business
enterprises shall be implemented as of January 1, 2019; Other enterprises that implement the accounting standards for business
enterprises shall be implemented as of January 1, 2021. Due to the revision of the above accounting standards for business enterprises,
the company needs to adjust the relevant accounting policies originally adopted.


According to the time specified by the Ministry of finance, the company will implement the new leasing standards from January 1,
2021.


The impact of the implementation of the new lease standards on the financial statements of 2021 is as follows:


Consolidated balance sheet
                                                                                                                  In RMB Yuan

                  Account                      December 31, 2020                 January 01, 2021                 Adjustment

Current assets:

     Cash                                            32,001,775,600.07                  32,001,775,600.07

     Transactional financial assets                     204,254,400.00                     204,254,400.00

     Notes receivable                                28,371,541,054.75                  28,371,541,054.75

     Accounts receivable                               2,141,197,139.45                  2,141,197,139.45

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                                         Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


       Prepayments                           460,703,603.80              460,703,603.80

       Other receivables                     723,919,037.36              723,919,037.36

       Inventories                          5,967,516,230.57           5,967,516,230.57

       Contract assets                      1,450,031,414.61           1,450,031,414.61

       Other current assets                 1,568,711,870.61           1,568,711,870.61

Total current assets                       72,889,650,351.22          72,889,650,351.22

Non-current assets:

       Long-term equity investment         12,109,089,795.67          12,109,089,795.67

       Other equity investment               691,990,000.00              691,990,000.00

       Investment properties                    6,876,138.16               6,876,138.16

       Fixed assets                        24,298,402,558.49          24,298,402,558.49

       Construction in progress             1,048,036,148.70           1,048,036,148.70

       Right of use assets                                  -             55,231,380.07           55,231,380.07

       Intangible assets                    4,433,771,236.26           4,433,771,236.26

       Devlopment expenditure                596,577,787.95              596,577,787.95

       Goodwill                                48,883,188.37              48,883,188.37

       Long-term deferred expenses             10,642,512.51              10,642,512.51

       Deferred tax assets                  2,131,266,677.52           2,131,266,677.52

Total non-current assets                   45,375,536,043.63          45,430,767,423.70           55,231,380.07

Total assets                              118,265,186,394.85         118,320,417,774.92           55,231,380.07

Current liabilities:

       Short-term loans                      578,000,000.00              578,000,000.00

       Notes payable                       17,574,014,553.46          17,574,014,553.46

       Accounts payable                    23,118,793,794.42          23,118,793,794.42

       Advances from customers

       Contract liabilities                 4,471,158,190.75           4,471,158,190.75

       Payroll payable                      2,015,868,366.57           2,015,868,366.57

       Taxes payable                        1,292,001,263.86           1,292,001,263.86

       Other payables                       4,475,215,625.98           4,475,215,625.98

Non current liabilities due within one
                                             100,000,000.00              100,000,000.00
year

       Other current liabilities            5,842,758,104.08           5,842,758,104.08

Total current liabilities                  59,467,809,899.12          59,467,809,899.12

Non-current liabilities:


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                                             Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


     Long-term loans                              955,300,000.00                955,300,000.00

     Lease liabilities                                            -              55,231,380.07        55,231,380.07

     Long-term payable                            261,260,928.70                261,260,928.70

     Long term payroll payable                     41,634,000.00                 41,634,000.00

     Estimated liabilities                      3,125,170,942.46              3,125,170,942.46

     Deferred earnings                            818,398,430.21                818,398,430.21

     Deferred tax liabilities                     115,304,728.61                115,304,728.61

Total non-current liabilities                   5,317,069,029.98              5,372,300,410.05        55,231,380.07

Total liabilities                              64,784,878,929.10             64,840,110,309.17        55,231,380.07

Owners’ equity:

     Share capital                              5,363,396,174.00              5,363,396,174.00

     Capital reserves                          10,930,781,918.64             10,930,781,918.64

     Other Comprehensive Income                    78,420,720.78                 78,420,720.78

     Special reserves                              40,847,443.41                 40,847,443.41

     Surplus reserves                           2,681,698,087.00              2,681,698,087.00

     Retained earnings                         34,315,048,892.26             34,315,048,892.26

Equity attributable to owners                  53,410,193,236.09             53,410,193,236.09

     Minority interests                            70,114,229.66                 70,114,229.66

Total equity                                   53,480,307,465.75             53,480,307,465.75

Total liabilities and owener’s equity        118,265,186,394.85            118,320,417,774.92        55,231,380.07



Balance sheet
                                                                                                 In RMB Yuan

                    Account              December 31, 2020            January 01, 2021           Adjustment

Current assets:

     Cash                                     25,238,014,025.38            25,238,014,025.38

     Transactional financial assets              180,929,400.00               180,929,400.00

     Notes receivable                         27,248,111,565.13            27,248,111,565.13

     Accounts receivable                       5,464,541,185.63             5,464,541,185.63

     Prepayments                                 294,088,044.01               294,088,044.01

     Other receivables                         1,990,616,778.83             1,990,616,778.83

     Inventories                               4,332,579,774.46             4,332,579,774.46

     Contract assets                             941,046,613.60               941,046,613.60

     Other current assets                        322,467,261.74               322,467,261.74


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                                         Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Total current assets                      66,012,394,648.78          66,012,394,648.78

Non-current assets:

       Long-term equity investments       15,911,304,527.87          15,911,304,527.87

       Other equity investment              681,630,000.00             681,630,000.00

       Fixed assets                       18,282,163,718.91          18,282,163,718.91

        Construction in progress            586,144,839.34             586,144,839.34

       Right of use assets                                  -            52,544,645.37            52,544,645.37

       Intangible assets                   3,166,081,547.59           3,166,081,547.59

       Development expenditure              555,569,523.02             555,569,523.02

       Long-term deferred expenses             7,470,626.86               7,470,626.86

       Deferred tax assets                 1,803,491,965.40           1,803,491,965.40

Total non-current assets                  40,993,856,748.99          41,046,401,394.36            52,544,645.37

Total assets                             107,006,251,397.77         107,058,796,043.14            52,544,645.37

Current liabilities:

       Short-term loans                     510,000,000.00             510,000,000.00

       Notes payable                      14,600,240,612.86          14,600,240,612.86

       Accounts payable                   18,770,044,628.44          18,770,044,628.44

       Advances from customers

       Contract liabilities                3,885,522,883.33           3,885,522,883.33

       Payroll payable                     1,604,474,120.45           1,604,474,120.45

       Taxes payable                       1,045,768,022.62           1,045,768,022.62

       Other payables                      3,166,636,684.63           3,166,636,684.63

Non current liabilities due within one
                                            100,000,000.00
year                                                                   100,000,000.00

       Other current liabilities           5,235,294,795.79           5,235,294,795.79

Total current liabilities                 48,917,981,748.12          48,917,981,748.12

Non-current liabilities:

       Long-term loans                      955,300,000.00             955,300,000.00

       Lease liabilities                                    -            52,544,645.37            52,544,645.37

       Long-term payable                    187,142,303.66             187,142,303.66

       Long term payroll payable              21,657,000.00              21,657,000.00

       Estimated liabilities               2,196,924,682.57           2,196,924,682.57

       Deferred earnings                    150,000,000.00             150,000,000.00

       Deferred tax liabilities               75,158,651.38              75,158,651.38


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                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Total non-current liabilities                       3,586,182,637.61                   3,638,727,282.98                  52,544,645.37

Total liabilities                                  52,504,164,385.73                  52,556,709,031.10                  52,544,645.37

Owners' equity:

     Share capital                                  5,363,396,174.00                   5,363,396,174.00

     Capital reserves                              10,440,896,902.52                  10,440,896,902.52

     Other comprehensive income                       159,954,052.00                     159,954,052.00

     Special reserves                                   7,505,438.57                        7,505,438.57

     Surplus reserves                               2,681,698,087.00                   2,681,698,087.00

     Retained earnings                             35,848,636,357.95                  35,848,636,357.95

Total owners' equity                               54,502,087,012.04                  54,502,087,012.04

Total liabilities and owners’ equity            107,006,251,397.77                 107,058,796,043.14                   52,544,645.37


The company's government subsidy accounting policy is changed from the total amount method to the net amount method
√ applicable □ not applicable


                                                                                      Procedures for
            Contents and reasons for changes in accounting policies                  examination and                 Remarks
                                                                                         approval

In May 2017, the Ministry of Finance issued the notice on Issuing and
revising the accounting standards for Business Enterprises No. 16 -
government subsidies (CK [2017] No. 15), which revised the accounting
                                                                                                           The reclassification
standards for Business Enterprises No. 16 - government subsidies. According
                                                                                                           adjustment of the
to the provisions of the revised accounting standards for Business Enterprises
                                                                                 Adopted at the 16th       accounting policy change to
No. 16 - government subsidies, Government subsidies can be accounted by
                                                                                 meeting of the 8th board different accounts will not
total amount method and net amount method. Before the change of
                                                                                 of directors of the       have an impact on the
accounting policy, the company adopts the total amount method for
                                                                                 company                   company's net assets, net
accounting of government subsidies.
                                                                                                           profit and cash flow
In order to make the company's accounting more accurately, objectively and
fairly reflect the company's financial status and operating results, the
company's government subsidy accounting policy is changed from the total
amount method to the net amount method from January 1, 2021.
Other instructions:
For this accounting policy change, the company needs to adopt the retroactive adjustment method for the government subsidies
obtained before January 1, 2021, adjust the opening balance of relevant items in the financial statements and present the comparable
data disclosed in the previous period according to the impact of the accounting policy change; The reclassification adjustment of the
accounting policy change to different subjects will not have an impact on the company's net assets, net profit and cash flow, and will
not damage the interests of the company and shareholders.


The main impact of the change in the accounting treatment method of government subsidies on the financial statements is as follows:


Consolidated balance sheet
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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




                                                                                                                        Unit:Yuan

                       Before accounting policy change        Reclassification of changes in       After accounting policy change
                                                                      accounting policies

                                December 31, 2020                                                       December 31, 2020

Assets:

Fixed assets                            26,436,757,696.96                     -2,138,355,138.47                   24,298,402,558.49

Intangible assets                        4,946,035,052.46                       -512,263,816.20                    4,433,771,236.26

Liabilities:

Defferred revenue                        3,469,017,384.88                     -2,650,618,954.67                      818,398,430.21


Balance sheet


                                                                                                                        Unit:Yuan

                       Before accounting policy change        Reclassification of changes in       After accounting policy change
                                                                      accounting policies

                                December 31, 2020                                                       December 31, 2020

Assets:

Fixed assets                            19,757,553,675.99                     -1,475,389,957.08                   18,282,163,718.91

Intangible assets                        3,653,199,216.48                       -487,117,668.89                    3,166,081,547.59

Liabilities:

Defferred revenue                        2,112,507,625.97                     -1,962,507,625.97                      150,000,000.00


Consolidated income statement


                       Before accounting policy change        Reclassification of changes in       After accounting policy change
                                                                      accounting policies

                                 1st Half of 2020                                                         1st Half of 2020

Operating cost                          29,734,615,697.63                       -156,541,138.47                   29,578,074,559.16

Selling expense                          1,270,717,082.07                              -1,075.16                   1,270,716,006.91

G&A expense                              1,164,152,772.91                        -18,291,788.60                    1,145,860,984.31

R&D expense                              1,464,554,423.42                        -40,978,953.05                    1,423,575,470.37

Financial expense                           -98,053,545.38                          -165,000.00                      -98,218,545.38

Other income                               215,977,955.28                       -215,977,955.28                                     -


Income statement




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                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                          Before accounting policy change      Reclassification of changes in           After accounting policy change
                                                                        accounting policies

                                  1st Half of 2020                                                             1st Half of 2020

Operating cost                           27,911,858,903.03                         -46,885,078.35                      27,864,973,824.68

Selling expense                             961,039,656.72                               -1,075.16                         961,038,581.56

G&A expense                                 726,483,524.17                         -10,833,656.63                          715,649,867.54

Financial expense                            -97,970,764.79                           -165,000.00                          -98,135,764.79

Other income                                  57,884,810.14                        -57,884,810.14



 (2) Changes in significant accounting estimates
The provision proportion of staff education funds shall be changed from 1.5% to 5%
√ applicable □ not applicable



                                                                          Procedures for             Time point of
    Contents and reasons for changes in accounting policies                                                                Remarks
                                                                   examination and approval           application

According to the notice of the Ministry of Finance and the State
Administration of Taxation on the pre Tax Deduction Policy of
enterprise employee education funds (CS [2018] No. 51), from
January 1, 2018, the part of the enterprise's employee education
expenditure that does not exceed 8% of the total wages and
salaries is allowed to be deducted when calculating the taxable
income of enterprise income tax; The excess part is allowed to
                                                                                                                     The proportion of
be carried forward and deducted in subsequent tax years. The
                                                                                                                     employee education
company's staff education fund has been subject to the
                                                                                                                     funds was changed
withdrawal standard of 1.5%. In order to actively respond to the Adopted at the 16th
                                                                                                                     from 1.5% to 5%,
call of the CPC Central Committee to "implement the strategy meeting of the 8th board          Implemented from
                                                                                                                     and     the     annual
of strengthening the country with talents", the human resources of directors of the            January 1, 2021
                                                                                                                     increase            of
department of the company has created a learning organization, company
                                                                                                                     employee education
strengthened the training of human resources of the company,
                                                                                                                     funds was about 96
and encouraged employees to continuously improve their ability
                                                                                                                     million yuan.
to perform their duties, the professional training allowance has
been added to the employee salary structure. According to the
calculation of the amount of annual professional training
allowance, it is necessary to withdraw employee education
funds according to 5% of the total annual salary, and the
withdrawal proportion of employee education funds needs to be
changed from 1.5% to 5%.




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 VI. TAXES

 1. Main taxes and tax rates

Value added tax (“VAT”)             -    The income from the sale of goods and the income from the provision of services are
                                           calculated at the tax rates of 13% and 6%, respectively, and the VAT is calculated on the basis
                                           of the difference after deducting the input tax that is allowed to be deducted in the current
                                           period.


Consumption tax                       -    Consumption tax is calculated at 1%, 3% or 5% of taxable income.


City maintenance and construction          5% or 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%, 20% 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 (2020-2023), Baoding Changan Bus Manufacturing
Company Limited (2020-2023), Chongqing Changan Connected Car Technology Co., Ltd. (2019-2021).


In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions 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 Changan International Corporation, Chongqing Changan Special Vehicle Co.,
Ltd., Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing Changan Lingyao Automobile Co., Ltd., Chongqing
Chehemei Technology Co., Ltd. and Chongqing Changan Automobile Software Technology 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                                                                              1,527.85                                   52,569.13


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                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Cash at bank                                                            46,269,402,072.16                           30,655,915,488.50

Other cash                                                               1,451,938,642.90                             1,345,807,542.44

Total                                                                   47,721,342,242.91                           32,001,775,600.07

As at 30 June 2021, the book value of restricted cash and cash equivalents is RMB 1,451,938,642.9, which was mainly restricted for
the issuance of acceptance bill.
As at 30 June 2021, the cash at bank oversea is equivalent to RMB 235,680,963.02.


2. Transactional financial assets


                              Item                                           Ending                               Beginning

Equity instrument investment                                                      163,778,100.00                       180,929,400.00

Derivative financial assets                                                        31,571,498.73                         23,325,000.00

Total                                                                             195,349,598.73                       204,254,400.00

As of June 30, 2021, the trading financial assets measured at fair value are 33.63 million ordinary shares of Southwest Securities Co.,
Ltd. held by the group (December 31, 2020: 33.63 million shares), which are derivative The financial assets are USD forward
contracts signed by the Group.


3. Notes receivable

(1) Classification of notes receivable
                                                                                                                         In RMB Yuan

                         Type                                           Ending                               Beginning

Commercial acceptance bill                                                 10,306,950,933.39                         11,456,829,106.12

Bank acceptance bill                                                       18,471,301,363.80                         16,914,711,948.63

Total                                                                      28,778,252,297.19                        28,371,541,054.75

(2) The notes receivable pledged as follows:

                      Type                                          Ending                                    Beginning

Commercial acceptance bill                                                   1,483,417,460.00                         1,707,332,200.00

Bank acceptance bill                                                         7,349,990,936.62                         5,613,218,260.00

Total                                                                        8,833,408,396.62                         7,320,550,460.00

The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2021 and 31 December 2020.

(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                                                                      270,434,540.00

Bank acceptance bill                         949,918,527.77                                    4,823,033,140.36


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Total                                         949,918,527.77                            -             5,093,467,680.36                            -


4. Accounts receivable

 (1)Aging analysis of the accounts receivable is as follows:
                                                                                                                                     In RMB Yuan

                     Aging                                             Ending                                        Beginning

Within 1 year                                                              1,394,235,410.26                                    1,801,562,183.50

1 to 2 years                                                                   134,148,970.29                                    371,018,064.79

2 to 3 years                                                                   145,670,057.07                                        60,086,826.22

Over 3 years                                                                   146,505,259.25                                        98,021,103.16

Total                                                                      1,820,559,696.87                                    2,330,688,177.67



Less: Provision                                                            -192,540,723.06                                      -189,491,038.22

Total                                                                      1,628,018,973.81                                    2,141,197,139.45



(2)The movements in provision for impairment of accounts receivable are as follows:



                                                   Addition                                       Deduction
           Beginning balance                                                                                                   Ending balance
                                       Provision               Other                Reversal                 Write-off

   2021         189,491,038.22          3,800,652.77                       -         328,968.23                421,999.70        192,540,723.06

   2020          84,152,474.01        105,402,877.08                                  28,657.87                 35,655.00        189,491,038.22



 (3)Analysis of accounts receivable by category is as follows:



                                                                                                    Ending
                         Item
                                                                           Balance                                       Provision

                                                                Amount                      (%)                 Amount                   (%)

Individually analyzed for provision                            979,976,822.07                     53.83         129,173,108.92              13.18

Accounts receivable analyzed as groups for provision           840,582,874.80                     46.17          63,367,614.14                 7.54

Total                                                         1,820,559,696.87                 100.00           192,540,723.06              10.58



                                                                                                  Beginning
                         Item
                                                                           Balance                                       Provision

                                                                Amount                      (%)                 Amount                   (%)


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Individually analyzed for provision                            1,739,103,610.26             74.62         129,549,853.46              7.45

Accounts receivable analyzed as groups for provision              591,584,567.41            25.38          59,941,184.76             10.13

Total                                                          2,330,688,177.67           100.00          189,491,038.22              8.13


(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model



                                                 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             591,845,162.46                0.11               679,611.16    380,624,542.70              0.43     1,629,902.59

1 to 2 years              118,272,067.87                7.93            9,383,375.27     114,659,032.16           12.32     14,121,441.41

2 to 3 years                78,770,757.00              28.64          22,561,115.16       52,003,007.12           40.07     20,836,462.37

Over 3 years                51,694,887.47              59.47          30,743,512.55       44,297,985.43           52.72     23,353,378.39

Total                     840,582,874.80                7.54          63,367,614.14      591,584,567.41           10.13     59,941,184.76



(5)As at June 30, 2021, accounts receivable from Top 5 clients amounted to RMB 1,021,176,665.33, accounted for 56.09% of the
total accounts receivable (December 31, 2020: RMB 1,427,737,884.48, accounted for 61.26% of the total amount).


(6) As of June 30, 2021, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31,
2020: Nil).


5. Prepayments

(1) An aged analysis of the prepayments is as follows:
                                                                                                                            In RMB Yuan

                                                       Ending                                           Beginning
               Aging
                                              Amount                       %                   Amount                         %

Within 1 year                                   366,494,907.99                  94.71               399,060,385.64                  86.61

1 to 2 years                                     16,331,905.80                   4.22                25,223,574.66                   5.48

2 to 3 years                                       4,154,134.53                  1.07                36,342,451.32                   7.89

Over 3 years                                                                        -                    77,192.18                   0.02

Total                                           386,980,948.32                 100.00               460,703,603.80                 100.00


(2)As at 30 June 2021, the total amount of the top five prepayments was RMB 241,900,175.75, accounting for 62.51% of the total
amount of prepayments (2020: RMB 346,863,258.58, accounting for 75.29%).




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6. Other receivables

                                                                                                                               In RMB Yuan

                                                                          Ending                                    Beginning

                  Dividend receivable                                           854,896,010.57

                    Other receivables                                           735,764,643.75                               723,919,037.36

 Total                                                                        1,590,660,654.32                               723,919,037.36



Dividend receivable
                                                                                                                               In RMB Yuan

                                                                                                                               Whether the
                                        Increase in this    Decrease in                              Reasons for
                        Beginning                                                  Ending                                      relevant funds
                                            period          this period                             non-recovery
                                                                                                                               are impaired

Dividends                                                                                        Dividend
receivable within                       858,326,010.57      3,430,000.00      854,896,010.57     distribution has not        No
one year of age                                                                                  yet arrived

Dividends
receivable aged
over one year

Total                                   858,326,010.57      3,430,000.00      854,896,010.57                --                       --



Other receivables
(1)Aging analysis of other receivables is as follows:



                                                             Ending                                              Beginning

Within 1 year                                                         519,087,230.11                                           331,458,596.48

1 to 2 years                                                            27,392,882.62                                          129,964,617.73

2 to 3 years                                                          180,111,464.00                                           194,978,317.34

Over 3 years                                                            21,003,965.64                                           79,338,758.60

Total                                                                 747,595,542.37                                           735,740,290.15



Provision                                                               -11,830,898.62                                         -11,821,252.79

Total                                                                 735,764,643.75                                           723,919,037.36



(2)Other receivables are classified by nature as follows:



                    Nature                                       Ending                                            Beginning


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New energy subsidy                                                                251,906,995.80                             517,224,182.80

Reserve                                                                              107,800.00                               18,868,220.28

New energy points                                                                 333,838,264.00

Other                                                                             149,911,583.95                             187,826,634.28

Total                                                                             735,764,643.75                             723,919,037.36



(3)In 2021, 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                                       269,269.46                     42,082.56          11,509,900.77         11,821,252.79

Changes due to the opening balance

- Transfer to Stage 2

- Transfer to Stage 3

- Turn back Stage 2

- Turn back Stage 1

Provision                                              17,904.92                       3,500.00                          -           21,404.92

Reversal                                               -6,847.11                              -                          -           -6,847.11
Write-off                                                        -                                           -4,911.98               -4,911.98
Ending balance                                        280,327.27                     45,582.56          11,504,988.79         11,830,898.62



(4)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)
Opening balance                               291,182.01                  111,686,526.12             13,616,375.98           125,594,084.11
Impact of applying the new
                                                            -            -111,066,213.00              -1,572,800.00          -112,639,013.00
revenue standard
Balance at the beginning of
the year adjusted in
                                              291,182.01                     620,313.12              12,043,575.98            12,955,071.11
accordance with the new
income standards
Changes due to the opening
balance
- Transfer to Stage 2                                       -                             -                        -                             -
- Transfer to Stage 3                                       -                -534,931.90                534,931.90                               -


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- Turn back Stage 2                                         -                               -                               -                               -
- Turn back Stage 1                                         -                               -                               -                               -
Provision                                                   -                               -                4,323,884.00                   4,323,884.00
Reversal                                      -21,912.55                       -43,298.66                   -1,889,832.11                  -1,955,043.32
Write-off                                               -                               -                   -3,502,659.00                 -3,502,659.00
Closing balance                              269,269.46                        42,082.56                    11,509,900.77                  11,821,252.79


 (5)As at June 30, 2021, top five debtors of other receivables are as follows:



                                                                                                                            Proportion of total other
Debtors                                      Amount                                              Aging
                                                                                                                                   receivables (%)

First                                                 195,200,000.00                  Within 6 months                                                26.11

Second                                                124,312,677.99                   Over 3 years                                                  16.63

Third                                                   74,416,240.80                       2-3 years                                                 9.95

Fourth                                                  64,274,400.00                 Within 6 months                                                 8.60

Fifth                                                   48,350,040.00                 Within 6 months                                                 6.47

Total                                                 506,553,358.79                                                                                 67.76



As at 31 December 2020, top five debtors of other receivables are as follows:



                                                                                                                                Proportion of total other
Debtors                                    Amount                                                 Aging
                                                                                                                                    receivables (%)

First                                                   404,133,442.00                  Within 1year                                                 54.93

Second                                                  113,090,740.80                  Within 1year                                                 15.37

Third                                                   124,312,677.99                          2-3 years                                            16.90

Fourth                                                          6,750,000.00            Within 1 year                                                 0.92

Fifth                                                           4,205,240.91                    0-2 years                                             0.57

Total                                                   652,492,101.70                                                                               88.69


(6) As of June 30, 2021, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2020: Nil).


7. Inventory

(1) Classification of inventory
                                                                                                                                          In RMB Yuan

                                               Ending                                                               Beginning
          Item
                            Balance           Provision                Net value                 Balance            Provision                Net value
Raw materials             634,930,742.70 325,895,639.25              309,035,103.45         774,157,630.94 361,595,043.64                  412,562,587.30

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Work in transit           210,173,876.01                      -    210,173,876.01          221,894,049.90                   -    221,894,049.90

Work in progress          874,015,158.82 112,982,816.41            761,032,342.41          870,386,230.20     74,926,608.94      795,459,621.26

Commodity stock         2,868,488,344.57 85,280,664.70 2,783,207,679.87 4,703,486,357.31 214,237,621.88 4,489,248,735.43

Revolving materials                       -                   -                     -       18,085,079.75                   -     18,085,079.75

Spare parts                26,041,659.57                      -      26,041,659.57          30,266,156.93                   -     30,266,156.93

Total                   4,613,649,781.67 524,159,120.36 4,089,490,661.31 6,618,275,505.03 650,759,274.46 5,967,516,230.57

(2) Provision for inventory
                                                                                                                                In RMB Yuan

                                                                                            Deduction
           Type               Beginning                 Provision                                                               Ending
                                                                                Reversal                Write-off

Raw materials                 361,595,043.64                  603,445.32                29,090.72       36,273,758.99           325,895,639.25

Work in progress                 74,926,608.94           70,374,567.96              657,556.57          31,660,803.92           112,982,816.41

Commodity stock               214,237,621.88              5,639,246.20              419,862.72      134,176,340.66               85,280,664.70

Total                         650,759,274.46             76,617,259.48           1,106,510.01          202,110,903.57           524,159,120.36


8. Contract assets

(1) Classification of Contract assets
                                                                                                                                In RMB Yuan

                                              Ending                                                        Beginning
        Item                            Provision for                                                       Provision for
                       Balance                                    Net value               Balance                                Net value
                                          impairment                                                        impairment

Contract assets     1,591,314,764.43 112,206,156.88 1,479,108,607.55 1,584,180,347.49                       134,148,932.88 1,450,031,414.61

Total               1,591,314,764.43 112,206,156.88 1,479,108,607.55 1,584,180,347.49                       134,148,932.88 1,450,031,414.61



(2) Current contract assets provision for impairment
                                                                                                                                In RMB Yuan

                                                Provision for this                         Deduction
                    Beginning balance                                                                                       Ending balance
                                                       year                   Reversal                 Write-off

    2021                 134,148,932.88                                       20,192,776.00             1,750,000.00            112,206,156.88


9. Other current assets

                                                                                                                                In RMB Yuan

                          Item                                             Ending                                   Beginning

Accrual input tax                                                             639,879,161.18                                    847,632,683.61


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Entrusted Loan                                                                                       -                          300,000,000.00

Others                                                                               419,376,052.18                             421,079,187.00

Total                                                                               1,059,255,213.36                          1,568,711,870.61


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                           8,090,000.00            208,090,000.00
                                                                                                                              instruments

                                                                                                                            Unlisted equity
China South Industry Group Finance Co., Ltd.                  160,099,200.00            317,120,000.00    70,204,197.65
                                                                                                                              instruments

Guoqi       (Beijing)      Intelligent      Network
                                                                                                                            Unlisted equity
Association Automotive Research Institute                       3,900,000.00              53,900,000.00
                                                                                                                              instruments
Co., Ltd.

Guoqi Automobile Power Cell Research Co.,                                                                                   Unlisted equity
                                                               13,680,000.00              53,680,000.00
Ltd.                                                                                                                          instruments

China North Industries Group Financial                                                                                      Unlisted equity
                                                                4,648,000.00              35,200,000.00
Leasing Co., Ltd.                                                                                                             instruments

                                                                                                                            Unlisted equity
Zhong Fa Lian Investment Co., Ltd.                                                        21,000,000.00
                                                                                                                              instruments

CAERI(Beijing)          automobile       Lightweight                                                                        Unlisted equity
                                                                                -          3,000,000.00               -
Technology Research Institution Co., Ltd.                                                                                     instruments

Total                                                         190,417,200.00            691,990,000.00    70,204,197.65




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11. Long-term equity investment

                                                                                                                                                                                         In RMB Yuan

                                                              Increase or   Investment income under        Other equity    Cash dividends    Other                                       Provision ending
                Investee                  Beginning balance                                                                                             Provision   Ending balance
                                                               decrease          equity method              variation         declared      Deduction                                         balance

Joint Venture

Changan Ford Automobile Co., Ltd.         1,791,533,495.17                          362,952,450.03                                                                  2,154,485,945.20

Changan Mazda Automobile Co., Ltd.        1,995,998,622.28                          280,357,717.64                         719,500,000.00                           1,556,856,339.92

Changan Mazda Engine Co., Ltd.             832,869,256.44                            15,721,810.83                                                                   848,591,067.27

Nanchang Jiangling Holding Co., Ltd.      1,545,807,633.84                           78,245,997.25                                                                  1,624,053,631.09

Associates

Chongqing Changan Kuayue
                                           237,736,134.21                              4,994,618.02                          3,430,000.00                            239,300,752.23
  Automobile Co., Ltd.

Chongqing Changan Kuayue
                                                                                                      -                                                                              -
  Automobile Sales Co., Ltd. (note1)

Beijing Fang’an cresent taxi Co., Ltd.
                                                                                                      -                                                                              -
  (note1)

Changan Automobile Financing Co.,Ltd      2,337,849,374.75                          129,697,153.59                          65,191,812.92                           2,402,354,715.42

Hainan Anxinxing Information
                                              2,316,052.92                            -1,009,343.24                                                                    1,306,709.68
  Technology Co., Ltd.

Nanjing Chelai Travel Technology Co.,
                                              1,192,605.27                              -134,310.36                                                                    1,058,294.91
  Ltd.

Hunan Guoxin Semiconductor
                                             25,373,809.47                              -514,689.73                                                                   24,859,119.74
  Technology Co., Ltd.


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Nanjing Leading Equity Investment
                                         999,636,607.63                               -33,139.50                                                                 999,603,468.13
  Partnership

Nanjing Leading Equity Investment
                                            1,262,180.39                              -64,190.89                                                                    1,197,989.50
  Management Co., Ltd.

Jiangling Holdings Co., Ltd.             201,736,644.25                           -48,302,837.53                                                                 153,433,806.72

Chongqing Changan New Energy
                                        1,991,016,135.19                         -571,646,859.78                                                                1,419,369,275.41
  Automobile Technology Co., Ltd.

Anhe (Chongqing) Equity Investment
                                            1,518,177.47                             -420,086.71                                                                    1,098,090.76
  Fund Management Co., Ltd.

Hangzhou Chelizi Intelligent
                                            9,692,964.92                              -26,284.37                                                                    9,666,680.55
  Technology Co., Ltd.

Beijing Wutong Chelian Technology
                                                                                                -                                                                               -
  Co., Ltd. (note1)

Pakistan Master Automobile Co., Ltd.       33,550,101.47                            1,644,573.96                                                                   35,194,675.43

Zhongqi Chuangzhi Technology Co.,
                                         100,000,000.00                              -753,627.84                                                                   99,246,372.16
  Ltd.

Total                                  12,109,089,795.67                          250,708,951.37                      788,121,812.92                          11,571,676,934.12                --




Note1: As at June 30, 2021, the Group is not responsible for extra loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd. and Beijing Wutong
           Chelian Technology Co., Ltd. Therefore, when excess losses of these three associates occurred, the Group just reduced its correspondent long-term equity investment to zero, and did not
           recognize contingent liabilities accordingly.




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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
                                            3,173,961.84             113,355.78                                   3,287,317.62
amortization

Buildings                                   3,173,961.84             113,355.78                                   3,287,317.62

III. Net Value

Buildings

IV. Impairment Provision                    6,876,138.16            -113,355.78                                   6,762,782.38

Buildings                                   6,876,138.16            -113,355.78                                   6,762,782.38


13. Fixed assets

                                                           Beginning                               Ending (Restated)

 Fixed assets                                                      23,289,607,252.47                        24,298,402,558.49

 Fixed assets cleanup                                                      14,150.94

 total                                                             23,289,621,403.41                        24,298,402,558.49



Fixed assets
                                                                                                                 In RMB Yuan

            Item              Beginning (Restated)           Addition                    Deduction                Ending

I. Original cost                  46,580,586,336.46                901,183,927.26          483,839,940.04 46,997,930,323.68

Buildings                         11,091,180,455.31                  4,481,251.79          260,089,092.93 10,835,572,614.17

Machinery                         25,112,728,137.98                601,737,167.12           41,683,465.58 25,672,781,839.52

Vehicles                           1,375,868,861.24                289,715,972.94          142,850,963.04     1,522,733,871.14

Other Equipments                   9,000,808,881.93                  5,249,535.41           39,216,418.49     8,966,841,998.85



II. Accumulated
                                  20,593,765,688.59               1,515,838,567.70         189,745,792.17 21,919,858,464.12
depreciation

Buildings                          2,504,726,565.55                167,241,162.91          111,108,816.44     2,560,858,912.02

Machinery                         12,955,993,422.16                829,455,742.37            1,590,874.24 13,783,858,290.29

Vehicles                             651,778,015.76                 63,110,890.19           76,347,995.59       638,540,910.36

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Other Equipments                    4,481,267,685.12                   456,030,772.23                 698,105.90    4,936,600,351.45



III. Net Value                     25,986,820,647.87                   -614,654,640.44             294,094,147.87 25,078,071,859.56

Buildings                           8,586,453,889.76                   -162,759,911.12             148,980,276.49   8,274,713,702.15

Machinery                          12,156,734,715.82                   -227,718,575.25              40,092,591.34 11,888,923,549.23

Vehicles                              724,090,845.48                   226,605,082.75               66,502,967.45      884,192,960.78

Other Equipments                    4,519,541,196.81                   -450,781,236.82              38,518,312.59   4,030,241,647.40



IV.Impairment Provision             1,688,418,089.38                   133,683,760.35               33,637,242.64   1,788,464,607.09

Buildings                             100,051,106.88                                                 5,388,281.83       94,662,825.05

Machinery                           1,233,285,296.24                    86,259,889.66                1,326,953.89   1,318,218,232.01

Vehicles                              124,040,034.61                                                26,922,006.92       97,118,027.69

Other Equipments                      231,041,651.65                    47,423,870.69                                  278,465,522.34



V. Book Value                      24,298,402,558.49                   -748,338,400.79             260,456,905.23 23,289,607,252.47

Buildings                           8,486,402,782.88                   -162,759,911.12             143,591,994.66   8,180,050,877.10

Machinery                          10,923,449,419.58                   -313,978,464.91              38,765,637.45 10,570,705,317.22

Vehicles                              600,050,810.87                   226,605,082.75               39,580,960.53      787,074,933.09

Other Equipments                    4,288,499,545.16                   -498,205,107.51              38,518,312.59   3,751,776,125.06



Fixed assets cleanup
             Item                    Beginning book value                Ending book value            Reasons for transfer to cleanup

mechanical equipment                                                                14,150.94             Scrapped and not disposed of

total                                                                               14,150.94                  —— ——


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    36,382,238.86                      36,382,238.86    17,743,577.36                        17,743,577.36

Car production equipment        91,492,887.79                      91,492,887.79    88,814,216.88                        88,814,216.88

Engine project                 126,742,173.61                     126,742,173.61   146,394,397.19                       146,394,397.19

Vehicle research institution    45,893,419.11                      45,893,419.11    38,021,494.37                        38,021,494.37


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Vehicle moulds                 212,278,534.70 21,532,971.11 190,745,563.59           241,611,437.44 21,532,971.11      220,078,466.33

Hefei Vehicle Project             3,507,161.30                      3,507,161.30          336,334.75                       336,334.75

Others                         309,942,000.52 49,819,988.01 260,122,012.51           586,467,649.83 49,819,988.01      536,647,661.82

Total                          826,238,415.89 71,352,959.12 754,885,456.77 1,119,389,107.82 71,352,959.12 1,048,036,148.70

(2) Movement of major construction in progress projects
                                                                                                                       In RMB Yuan

                                                                            Transferred to fixed
               Item                Beginning             Addition                                      Deduction        Ending
                                                                                    assets

Vehicle production equipment        17,743,577.36          83,690,096.66            65,051,435.16                       36,382,238.86

Car production equipment            88,814,216.88           3,937,246.56             1,258,575.65                       91,492,887.79

Engine project                     146,394,397.19        146,594,617.30            166,246,840.88                      126,742,173.61

Vehicle research institution        38,021,494.37          54,977,877.12            47,105,952.38                       45,893,419.11

Vehicle moulds                     220,078,466.33          30,012,254.41            59,345,157.15                      190,745,563.59

Hefei Vehicle Project                  336,334.75           3,170,826.55                                                 3,507,161.30

Others                             536,647,661.82        281,873,689.58            558,399,338.89                      260,122,012.51

Total                            1,048,036,148.70        604,256,608.18            897,407,300.11                      754,885,456.77

(3) Provision for impairment of construction in progress
On June 30, 2021, the balance of impairment provision for construction in progress was RMB 71,352,959.12. There was no accrued
or resold amount in the current year. (As of December 31, 2020, the amount of impairment provision for construction in progress was
RMB 71,352,959.12).


15. Right-of-use asset

                                                                                                                       In RMB Yuan

            Item                    Beginning                    Addition                      Deduction               Ending

I. Original cost                       55,231,380.07                    25,976,026.62                              -   81,207,406.69

Buildings                              55,231,380.07                    25,976,026.62                              -   81,207,406.69

Machinery                                           -                                 -                            -               -

Vehicles                                            -                                 -                            -               -

Other Equipments                                    -                                 -                            -               -



II. Accumulated
                                                    -                   12,224,609.69                              -   12,224,609.69
depreciation

Buildings                                           -                   12,224,609.69                              -   12,224,609.69

Machinery                                           -                                 -                            -               -

Vehicles                                            -                                 -                            -               -


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Other Equipments                                     -                           -                     -                   -



III.Impairment Provision                             -                           -                     -                   -

Buildings                                            -                           -                     -                   -

Machinery                                            -                           -                     -                   -

Vehicles                                             -                           -                     -                   -

Other Equipments                                     -                           -                     -                   -



IV. Book Value                         55,231,380.07                 13,751,416.93                     -      68,982,797.00

Buildings                              55,231,380.07                 13,751,416.93                     -      68,982,797.00

Machinery                                            -                           -                     -                   -

Vehicles                                             -                           -                     -                   -

Other Equipments                                     -                           -                     -                   -


16. Intangible assets

Details of intangible assets
                                                                                                               In RMB Yuan

             Item              Beginning(Restated)           Addition                Deduction               Ending

I. Original cost                    10,917,473,478.80        339,529,907.86           128,420,006.92       11,128,583,379.74

Land use rights                      2,296,172,277.67                9,222.24         128,415,191.11        2,167,766,308.80

Software use rights                    587,986,774.18         11,233,173.00                  480.66          599,219,466.52

Trademark use rights                   211,770,000.00                        -                               211,770,000.00

Non-patent technology                7,821,544,426.95        328,287,512.62                 4,335.15        8,149,827,604.42



II. Accumulated amortization         6,076,168,982.33        545,011,292.13            47,902,992.09        6,573,277,282.37

Land use rights                        399,281,544.39         22,762,390.62            47,902,992.09         374,140,942.92

Software use rights                    564,106,714.47         10,745,497.13                        -         574,852,211.60

Trademark use rights                   205,936,666.62             5,833,333.38                     -         211,770,000.00

Non-patent technology                4,906,844,056.85        505,670,071.00                                 5,412,514,127.85



III. Net value                       4,841,304,496.47       -205,481,384.27            80,517,014.83        4,555,306,097.37

Land use rights                      1,896,890,733.28        -22,753,168.38            80,512,199.02        1,793,625,365.88

Software use rights                     23,880,059.71              487,675.87                480.66           24,367,254.92

Trademark use rights                     5,833,333.38         -5,833,333.38

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Non-patent technology                2,914,700,370.10           -177,382,558.38                    4,335.15          2,737,313,476.57



IV. Impairment provision              407,533,260.21                 6,685,373.29                          -           414,218,633.50

Land use rights                                      -                           -                         -

Software use rights                     23,617,923.17                            -                         -            23,617,923.17

Trademark use rights                                                             -                         -

Non-patent technology                 383,915,337.04                 6,685,373.29                          -           390,600,710.33



V. Book value                        4,433,771,236.26           -212,166,757.56               80,517,014.83          4,141,087,463.87

Land use rights                      1,896,890,733.28            -22,753,168.38               80,512,199.02          1,793,625,365.88

Software use rights                        262,136.54                 487,675.87                     480.66               749,331.75

Trademark use rights                     5,833,333.38             -5,833,333.38

Non-patent technology                2,530,785,033.06           -184,067,931.67                    4,335.15          2,346,712,766.24

As at 30 June 2021, the intangible assets from internal research and development account for 56.67% of total intangible assets (On
December 31, 2020: 49.25%).


17. Development expenditure

                                                                                                                        In RMB Yuan

                                                                                       Deduction
          Item                 Beginning           Addition           Included in current          Recognized as           Ending

                                                                         profit and loss         intangible assets

Automobile Development        596,577,787.95     464,549,611.05               57,123,680.65          318,657,018.15     685,346,700.20

Total                         596,577,787.95     464,549,611.05               57,123,680.65          318,657,018.15     685,346,700.20


18. Goodwill

                                                                                                                        In RMB Yuan

                                                                                                                        Impairment
                  Investee                     Beginning              Addition         Deduction        Ending
                                                                                                                         provision

Hebei Changan Automobile Co., Ltd                9,804,394.00                                           9,804,394.00

Nanjing Changan Automobile Co., Ltd                                                                                     73,465,335.00

Avita Technology (Chongqing) Co., Ltd.
                                                39,078,794.37                                         39,078,794.37
(Note)

Total                                           48,883,188.37                                         48,883,188.37 73,465,335.00

Note: In May 2021, Changan Weilai New Energy Automobile Technology Co., Ltd. was renamed Avita Technology (Chongqing) Co.,
Ltd.


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19. Long-term deferred expenses

                                                                                                                           In RMB Yuan

                    Item                          Beginning              Addition               Amortization               Ending

Long-term deferred expenses                         10,642,512.51            4,332,235.91          2,670,879.81             12,303,868.61

Total                                               10,642,512.51            4,332,235.91          2,670,879.81             12,303,868.61


20. 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                                        347,918,271.33                               340,410,466.42

Accrued expenses and contingent liabilities                                  1,253,365,334.20                         1,116,879,367.85

Unpaid tech development expense and
                                                                              145,832,004.03                               127,040,348.39
advertisement expense

Deferred income                                                               445,156,840.73                               426,639,099.35

Unpaid salary and bonus and others                                             65,328,917.85                               120,297,395.51

Subtotal                                                                     2,257,601,368.14                         2,131,266,677.52

Deferred tax liabilities:

Changes in fair value of financial assets                                      56,138,136.57                                57,473,856.77

Fair value adjustment of business combination not
                                                                               35,049,656.72                                36,579,827.23
under the same control

Others                                                                         21,251,044.62                                21,251,044.61

Subtotal                                                                      112,438,837.91                               115,304,728.61


21. Short-term loans

                                                                                                                           In RMB Yuan

                        Item                                        Ending                                     Beginning

Pledge loans                                                                  42,000,000.00                                 48,000,000.00

Credit loans                                                                 510,000,000.00                                530,000,000.00

Total                                                                        552,000,000.00                                578,000,000.00


22. Notes payable

                                                                                                                           In RMB Yuan

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                          Item                                   Ending                                   Beginning

Commercial acceptance bill                                              1,519,474,680.26                         4,562,217,151.91

Bank acceptance bill                                                   25,666,782,828.70                        13,011,797,401.55

Total                                                                  27,186,257,508.96                        17,574,014,553.46


23. Accounts payable

                                                                                                                      In RMB Yuan

                          Item                                   Ending                                   Beginning

Accounts payable                                                       24,517,099,039.98                        23,118,793,794.42

total                                                                  24,517,099,039.98                        23,118,793,794.42


24. Contract liabilities

                                                                                                                      In RMB Yuan

                           Item                                      Ending                               Beginning

Advance payment                                                           4,010,308,455.47                       3,779,593,859.42

Pre-collected service fee                                                  657,025,108.46                             691,564,331.33

total                                                                     4,667,333,563.93                       4,471,158,190.75


25. Payroll payable

                                                                                                                      In RMB Yuan

                   Item                     Beginning                Addition                Deduction                 Ending

 Short term salary benefits               1,920,693,265.47       3,001,383,119.45            2,923,032,138.81   1,999,044,246.11

 Defined contribution plans                 91,080,101.10            271,504,207.89           233,686,767.21     128,897,541.78

 Early retirement benefits and others        4,095,000.00              4,074,520.29             4,098,191.65          4,071,328.64

 Total                                    2,015,868,366.57       3,276,961,847.63            3,160,817,097.67   2,132,013,116.53


 Short term salary benefits as follows:

                                                                                                                In RMB Yuan

                Item                         Beginning                 Addition               Deduction                Ending
Salary, bonus, allowance
                                             1,575,687,212.16        2,398,327,611.58        2,269,105,356.23    1,704,909,467.51
  and subsidy
Employee benefit                                50,451,868.33          98,391,685.48          142,873,400.27            5,970,153.54
Social insurance                                30,045,657.36         204,372,539.67          180,290,176.01           54,128,021.02
Housing accumulation fund                       74,632,036.37         179,622,026.91          207,608,244.34           46,645,818.94
Labor fund and employee
                                              189,876,491.25          120,669,255.81          123,154,961.96          187,390,785.10
  education fund

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Total                                         1,920,693,265.47         3,001,383,119.45        2,923,032,138.81    1,999,044,246.11


Defined contribution plans as follows:
                                                                                                                     In RMB Yuan

            Item                       Beginning             Addition                     Deduction                 Ending
Basic retirement security                82,228,882.36      263,829,857.58                 227,513,471.99           118,545,267.95
Unemployment insurance                    8,851,218.74           7,674,350.31                 6,173,295.22           10,352,273.83
Total                                    91,080,101.10      271,504,207.89                 233,686,767.21           128,897,541.78


26. Taxes payable

                                                                                                                         In RMB Yuan

                            Item                                          Ending                              Beginning

Value-added tax                                                                  167,086,045.25                      441,502,809.12

Consumption tax                                                                  294,962,007.83                      730,908,794.38

Corporate income tax                                                               83,016,728.51                      60,154,873.22

City maintenance and construction tax, education
                                                                                   47,516,876.35                      35,664,425.85
additional expenses
Others                                                                             15,393,796.85                      23,770,361.29

Total                                                                            607,975,454.79                    1,292,001,263.86


27. Other payables


                        Item                                           Ending                                Beginning

 Dividend payable                                                               1,020,630.53                                      -

 Other payables                                                             3,642,242,930.75                       4,475,215,625.98

                       合计                                                 3,643,263,561.28                       4,475,215,625.98

Dividend payable
                                                                                                                         In RMB Yuan

                       Item                                            Ending                                 Beginning

Interest on long-term borrowings with interest
                                                                                     765,630.50
payments due

Interest payable on short-term loans                                                 255,000.03

Total                                                                              1,020,630.53                                      -

Other payables
                                                                                                                         In RMB Yuan

                       Item                                            Ending                                Beginning

Deposits of dealer and supplier                                                 228,521,330.55                       190,379,159.39


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Maintenance fees                                                                169,945,555.78                            213,623,566.01

Advertising fees                                                                369,622,352.21                            642,353,999.96

Warehousing and transport fees                                                  465,422,386.27                            120,627,263.12

Receipt of land and plant disposal fees in advance                                              -                    1,000,000,000.00

Purchase   and      construction   of    fixed   assets,
                                                                              1,545,914,933.06                       1,627,340,431.42
intangible assets and project deposits

Others                                                                          862,816,372.88                            680,891,206.08

Total                                                                         3,642,242,930.75                       4,475,215,625.98


28. Estimated liabilities

                                                                                                                           In RMB Yuan

           Item                         Beginning               Addition                Deduction                    Ending

product quality assurance               2,555,699,406.23         847,110,447.51           358,249,314.82             3,044,560,538.92

Supplier compensation                    569,471,536.23                                       71,694,246.18               497,777,290.05

Total                                   3,125,170,942.46         847,110,447.51           429,943,561.00             3,542,337,828.97

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                                                             11,813,851.75                                25,513,787.11

Accrued transportation fee                                                   603,870,538.29                               646,608,569.79

Accrued maintenance fee                                                       42,280,512.39                                56,717,786.02

Accrued technology transfer and development
                                                                             344,806,939.80                                78,382,904.18
fee

Accrued commercial discount payable                                        3,302,801,566.29                          3,661,553,908.15

Accrued market development expense                                           845,726,993.02                               475,834,141.44

Accrued rental fee                                                            79,887,270.52                                82,867,604.56

Accrued fuel consumption negative points fee                               1,311,033,458.49                               674,762,264.15

Others                                                                       146,086,376.58                               140,517,138.68

Total                                                                      6,688,307,507.13                          5,842,758,104.08


30. Long term loan

                                                                                                                           In RMB Yuan


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                        Item                                         Ending                                     Beginning

Credit loan                                                                   955,300,000.00                          1,055,300,000.00

Including: long-term loans due within one year                                301,000,000.00                            100,000,000.00

Net Long term loan                                                            654,300,000.00                            955,300,000.00


31. Lease liability

                                                                                                                             In RMB Yuan

                        Item                                         Ending                                     Beginning

Lease liability                                                                54,335,728.17                                55,231,380.07

Including: lease liabilities due within one year                               27,905,578.01

Net Lease liability                                                            26,430,150.16                                55,231,380.07


32. Long-term payables


                        Item                                        Ending                                      Beginning

 Special payables                                                            207,811,375.66                             261,260,928.70

 Total                                                                       207,811,375.66                             261,260,928.70



Special payables
                                                                                                                             In RMB Yuan

                      Item                           Beginning                Addition            Deduction                  Ending

Nanjing Chang'an Demolition
                                                       55,350,709.40                                                         55,350,709.40
Compensation Fund

Intelligent manufacturing project                     131,865,237.97         9,701,500.00          26,795,751.25            114,770,986.72

Lightweight design of automobile structure                 6,914,468.49      1,310,000.00           7,815,489.10                408,979.39

Others                                                 67,130,512.84         1,885,857.00          31,735,669.69             37,280,700.15

Total                                                 261,260,928.70      12,897,357.00            66,346,910.04            207,811,375.66


33. Deferred income

30 June, 2021
                                                                                                                             In RMB Yuan

              Item                  Beginning (Restated)            Addition                  Deduction                     Ending

Government grants related to
                                           154,000,000.00          147,672,725.87              143,531,402.87               158,141,323.00
    assets




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Government grants related to
                                           664,398,430.21             599,765,955.14           161,384,901.78         1,102,779,483.57
      income

Total                                      818,398,430.21             747,438,681.01           304,916,304.65         1,260,920,806.57


As at 30 June 2021, details of liabilities related to government grants are as follows:
                                                                                                                          In RMB Yuan


               Item              Beginning (Restated)                Addition                  Deduction                Ending

Related to assets                      154,000,000.00                147,672,725.87            143,531,402.87           158,141,323.00

Production and
                                                        -            135,448,745.57            127,307,422.57             8,141,323.00
construction subsidies

R&D technology subsidies                 4,000,000.00                   5,052,195.96             9,052,195.96                         -

Other government
                                       150,000,000.00                   7,171,784.34             7,171,784.34           150,000,000.00
subsidies

Related to income                      664,398,430.21                599,765,955.14            161,384,901.78         1,102,779,483.57

R&D technology subsidies               408,299,844.41                599,000,000.00             98,207,401.80           909,092,442.61

Other government
                                       256,098,585.80                      765,955.14           63,177,499.98           193,687,040.96
subsidies

            Total                      818,398,430.21                747,438,681.01            304,916,304.65         1,260,920,806.57


34. Share capital

                                                                                                                        In RMB Yuan

                                                                                  Current movement

                                                                                   Transfer
                                                                                  of reserve
                                    Beginning        Issuance of        Stock                                                      Ending
                                                                                        to          others         Subtotal
                                                            shares    dividend
                                                                                   common
                                                                                    shares

I.        Restricted shares

          State-owned legal
      1                             283,138,318                                                                                   283,138,318
          person holdings
          Other domestic
      2                             244,917,965       76,195,400                                  -244,899,065   -168,703,665      76,214,300
          holdings

      3   Foreign shareholding       32,710,280                                                    -32,710,280    -32,710,280               -

Total restricted shares             560,766,563       76,195,400                                  -277,609,345   -201,413,945     359,352,618


II.       Unrestricted shares



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       1   RMB ordinary shares       3,900,643,469                                               277,609,345       277,609,345      4,178,252,814

           Domestically     listed
       2                              901,986,142                                                                                    901,986,142
           foreign shares

Total unrestricted shares            4,802,629,611                                               277,609,345       277,609,345      5,080,238,956

III.       Total shares              5,363,396,174     76,195,400                                           -       76,195,400      5,439,591,574


35. Capital reserves

                                                                                                                         In RMB Yuan

                 Item                      Beginning                  Addition                  Deduction                Ending

Share premium                             10,364,453,940.59                430,822,567.78                            10,795,276,508.37

Share-based payment                                                        107,618,400.00                               107,618,400.00

Capital reserve transferred
                                              44,496,899.00                                                              44,496,899.00
arising from the old standards

Equity investment preparation                 17,015,985.20                                                              17,015,985.20

Others                                       504,815,093.85                                                             504,815,093.85

Total                                     10,930,781,918.64                538,440,967.78                            11,469,222,886.42


36. Other comprehensive income

                                                                                                                         In RMB Yuan

                                                                          2020.12.31        Increase or decrease        2021.6.30
 Remeasure the net liabilities or changes in net assets of
                                                                            1,222,000.00                                 1,222,000.00
 defined benefit plans
 Under the equity method, the invested unit's share of other
 comprehensive income that cannot be reclassified into                     -2,088,068.00                                -2,088,068.00
 profit and loss
 Changes in the fair value of other equity instrument
                                                                          161,854,620.00                               161,854,620.00
 investments
 Translation differences of foreign currency financial
                                                                          -82,567,831.22          21,820,284.63        -60,747,546.59
 statements
 Total                                                                     78,420,720.78          21,820,284.63        100,241,005.41


37. Surplus reserves

                                                                                                                         In RMB Yuan

                 Item                      Beginning                  Addition                  Deduction                Ending

Statutory surplus                           2,681,698,087.00                                                          2,681,698,087.00

Total                                       2,681,698,087.00                                                          2,681,698,087.00

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38. Retained earnings

                                                                                                                          In RMB Yuan

                               Item                                                               Amount

Retained earnings at beginning of year                                                                                34,315,048,892.26

Add: Net profit belong to parent company                                                                               1,729,245,208.60

Less: Dividends payable on ordinary shares                                                                             1,666,243,360.54

Retained earnings at the end                                                                                          34,378,050,740.32


39. Operating revenue and cost

                                                                                                                          In RMB Yuan

                                                 Report period                                Same period of last year (Restated)

                                       Revenue                      Cost                      Revenue                     Cost
 Main business                        55,859,466,497.39          47,581,200,934.60       32,014,959,151.44           29,196,996,395.37
 Other business                         925,165,401.68             505,476,294.61             766,698,327.66            381,078,163.79
 Total                                56,784,631,899.07          48,086,677,229.21       32,781,657,479.10           29,578,074,559.16


40. Tax and surcharges

                                                                                                                          In RMB Yuan

                  Item                                    Report period                                 Same period of last year

Consumption tax                                                            1,599,192,250.70                               954,339,591.94

City maintenance and construction tax                                        196,961,006.14                                79,821,375.83

Education additional expenses                                                134,489,938.43                                50,469,342.13

Others                                                                       157,051,471.80                               121,656,073.55

Total                                                                      2,087,694,667.07                             1,206,286,383.45


41. Operating expenses

                                                                                                                          In RMB Yuan

                      Item                                  Report period                        Same period of last year (Restated)

Payroll and welfare                                                         240,101,135.80                                204,419,163.59

Promotional advertising fees and sales
                                                                           1,662,488,840.31                               863,454,318.26
service fees

Transportation expenses                                                     168,961,271.58                                110,198,692.55

Travelling expenses                                                          30,394,898.13                                 21,867,777.56

Package expenses                                                             14,493,447.37                                  4,637,273.00


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Administrative expenses                                          1,834,879.56                             1,929,938.37

Consulting fee                                                   5,542,562.49                               993,897.25

Training fee                                                     1,834,814.74                             1,557,051.04

Others                                                          20,463,462.21                            61,657,895.29

Total                                                       2,146,115,312.19                          1,270,716,006.91


42. General and administrative expenses

                                                                                                        In RMB Yuan

                      Item                      Report period                   Same period of last year (Restated)

Payroll and welfare                                         1,216,671,339.99                            710,197,732.15

Administrative expenses                                          4,131,070.43                             1,813,546.15

Depreciation and amortization                                117,765,985.28                             133,684,029.10

Miscellaneous service charges                                    5,262,718.15                            11,389,441.25

Traffic and travelling expenses                                 27,865,566.05                            19,024,299.22

Entertainment expenses                                            851,087.95                                450,275.19

New energy credit fee                                        636,271,194.34

Others                                                       208,328,082.31                             269,301,661.25

Total                                                       2,217,147,044.50                          1,145,860,984.31


43. Research and development expenses


                      Item                      Report period                   Same period of last year (Restated)

 Wages and benefits                                        592,150,357.04                              519,844,836.98

 Material fee                                               70,981,081.39                                58,974,839.13

 Subcontract fee                                           147,374,115.88                              171,587,497.89

 Travel research fee                                        12,194,021.56                                10,103,859.15

 Test fee                                                   35,455,478.77                                43,007,880.00

 Depreciation and amortization                             607,589,508.63                              580,661,427.53

 other fee                                                  29,838,798.89                                39,395,129.69

 Total                                                    1,495,583,362.16                            1,423,575,470.37


44. Financial expenses

                                                                                                        In RMB Yuan

                      Item                      Report period                   Same period of last year (Restated)


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Interest expense                                                          26,372,186.29                                20,373,153.36

Less: interest income                                                    281,294,223.92                               131,048,028.86

Exchange gain or loss                                                      8,533,687.86                                  4,908,537.21

Others                                                                    12,611,859.12                                  7,547,792.91

Total                                                                   -233,776,490.65                                -98,218,545.38


45. Assets disposal income

                                                                                                                       In RMB Yuan

                                                                                                      Included in 2021 non-recurring
                   Item                       Report period            Same period of last year
                                                                                                             gains and losses

Fixed assets disposal income                       119,487,419.99                     33,428,646.97                   119,487,419.99

Intangible assets disposal income                  481,579,441.34                                                     481,579,441.34

Total                                              601,066,861.33                     33,428,646.97                   601,066,861.33


46. Impairment loss on assets

                                                                                                                       In RMB Yuan

                            Item                                     Report period                    Same period of last year

Loss of inventory fall                                                        75,510,749.47                          207,237,744.91

Fixed asset impairment loss                                                  133,683,760.35                            1,004,872.80

Intangible asset impairment loss                                                6,685,373.29                                       -

Contract asset impairment loss                                                -20,192,776.00                           4,586,336.00

Total                                                                        195,687,107.11                          212,828,953.71


47. Credit impairment loss


                            Item                                     Report period                    Same period of last year

Bad debt losses on accounts receivable                                          3,471,684.54                           18,590,707.11

Bad debt losses on other receivables                                                 14,557.81                            123,075.90

Total                                                                           3,486,242.35                           18,713,783.01


48. 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                                                 15,734,698.73                        1,753,674,697.00

Total                                                                          15,734,698.73                        1,753,674,697.00


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49. Investment income

                                                                                                                      In RMB Yuan

                             Item                                Report period                     Same period of last year

1.Long-term equity investment income under equity
                                                                           250,708,951.37                          -528,282,156.89
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                                                                     77,163,513.71                            6,884,080.21

Total                                                                      327,872,465.08                         3,000,803,663.99


50. Other income

                                                                                                                      In RMB Yuan

                      Item                       Report period           Same period of last year (Restated)          Explain

Industry Support Subsidies                          106,783,041.12                                                 Related to income

Total                                               106,783,041.12                                                                --


51. Non-operating income

                                                                                                                      In RMB Yuan

                               Item                                    Report period                  Same period of last year

Fines and others                                                                 40,983,845.94                        31,178,860.44

Total                                                                            40,983,845.94                        31,178,860.44


52. Non-operating expenses

                                                                                                                      In RMB Yuan

                               Item                                    Report period                   Same period of last year

Donation                                                                         10,500,000.00                        16,759,250.00

Fines and late fees                                                                      559.05                          130,851.84

Others                                                                             3,603,043.24                       34,461,544.29

Total                                                                            14,103,602.29                        51,351,646.13


53. Income tax expenses

                                                                                                                      In RMB Yuan

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                           Item                                        Report period              Same period of last year

Current income tax expense                                                      188,574,027.41                    26,707,074.55

Deferred income tax adjustment                                                 -129,200,581.32                  163,224,222.09

Total                                                                            59,373,446.09                  189,931,296.64


54. Notes to cash flow statement

(1) The major cash received relating to other operating activities
                                                                                                                 In RMB Yuan

                                    Item                                                         Amount

Interest income                                                                                                 287,599,749.93

Government grants related to operating activities                                                               973,828,265.22

Others                                                                                                          536,655,063.79

Total                                                                                                          1,798,083,078.94

(2) The major cash paid relating to other operating activities
                                                                                                                 In RMB Yuan

                                    Item                                                         Amount

Selling expenses                                                                                             1,705,305,653.87

Administrative expenses                                                                                        833,833,985.36

R&D expensess                                                                                                  579,603,711.64

Others                                                                                                         236,785,445.40

Total                                                                                                        3,355,528,796.27

(3) The major cash received relating to other investing activities
                                                                                                                 In RMB Yuan

                                    Item                                                         Amount

Recover the loan of Jiangling Holdings                                                                          300,000,000.00

Total                                                                                                           300,000,000.00

 (4) The major cash received relating to other financing activities
                                                                                                                 In RMB Yuan

                                   Item                                                          Amount

Redemption of the deposit for acceptance                                                                        312,220,372.75

Total                                                                                                           312,220,372.75

(5) The major cash paid relating to other financing activities

                                   Item                                                          Amount

Payment of acceptance billsother                                                                                418,351,512.95

Others                                                                                                               241,289.74

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Total                                                                                                          418,592,802.69


55. Supplementary information of cash flow statement

(1) Supplementary information of cash flow statement
                                                                                                                 In RMB Yuan

                    Supplementary information                            Current Amount             Prior-period Amount

1. Cash flow relating to operating activities calculated by
adjusting the net profit

Net profit                                                                     1,804,981,288.95               2,601,622,809.19

Add: credit impairment loss                                                        3,486,242.35                  18,713,783.01

Add: provision for assets impairment                                             195,687,107.11                212,828,953.71

Depreciation of fixed assets, oil and gas assets, productive
                                                                               1,515,838,567.70               1,341,780,516.22
biological assets

Amortization of right-of-use assets                                               12,224,609.69

Amortization of intangible assets                                                545,011,292.13                514,642,717.04

Amortization of long-term deferred expense                                         2,670,879.81                   2,725,128.43

Disposal loss/(income) on fixed assets, intangible assets and
                                                                                -601,066,861.33                 -33,428,646.97
others long-term assets(with “-” for gains)

Loss of fair value change (revenue is marked with "-")                           -15,734,698.73              -1,753,674,697.00

Financial expense(with “-” for gains)                                           26,372,186.29                  20,373,153.36

Investment loss(with “-” for gains)                                           -327,872,465.08              -3,000,803,663.99

Decrease in deferred tax assets(with “-” for gains)                           -126,334,690.62                 -97,937,262.08

Increase in deferred tax debts(with “-” for gains)                              -2,865,890.70                261,161,484.17

Decrease in inventory(with “-” for gains)                                    1,878,025,569.26                -664,950,981.62

Decrease in operating receivables(with “-” for gains)                         - 206,172,573.97              4,982,533,829.23

Increase in operating payables(with “-” for gains)                          12,987,653,627.02               2,756,790,261.85

Others                                                                             6,922,680.49                -249,790,690.95

Net cash flows from operating activities                                      17,698,826,870.37               6,912,586,693.60

2. Investment and financing activities involving no cash
incomings / outgoings

3. Movement of cash and cash equivalents

Ending balance of cash equivalents                                            46,269,403,600.01              16,821,119,181.24

Less: beginning balance of cash equivalents                                   30,655,968,057.63               9,360,474,674.89

Net increase in cash and cash equivalents                                     15,613,435,542.38               7,460,644,506.35

(2) Cash and cash equivalents

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                                                                                                                           In RMB Yuan

                            Item                                         Ending balance                     Beginning balance

I. Cash

Including: Cash on hand                                                                   1,527.85                            52,569.13

Bank deposits that can be readily used                                         46,269,402,072.16                       30,655,915,488.50

II. Ending balance of cash and cash equivalents                                46,269,403,600.01                       30,655,968,057.63


VIII. The change of consolidation scope

1. Business combination not under the Same Control

□ Applicable   √ Not Applicable


2. Combination under the same control

□ Applicable   √ Not Applicable


3. Counter purchase

□ Applicable   √ Not Applicable


4. Disposing subsidiary


Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation

□ Applicable   √ Not Applicable


Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary company

through multiple transactions

□ Applicable   √ Not Applicable


5. Change of consolidation scope due to other reasons

(1) Newly established subsidiary companies during the reporting period
□ Applicable   √ Not Applicable
 (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
□ Applicable   √ Not Applicable


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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                -     95.62
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           -
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          GBP2,639       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          JPY1,000       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
Changan Automobile Investment (Shenzhen)
                                                Shenzhen        Shenzhen          Sales          23,525       100.00           -
     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.

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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 Kaicheng Automobile
                                                 Chongqing       Chongqing              Sales        100,000         83.64          -
Technology Co., Ltd.

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 Lingyao Automobile Co., Ltd.           Chongqing       Chongqing       Manufacturing       133,764        100.00          -

Zhenjiang Demao Hairun Equity Investment                                           Financial
                                                  Zhenjiang      Zhenjiang                           150,001        100.00          -
Fund Partnership (Limited Partnership)                                              industry

Avita Technology (Chongqing) Co., Ltd.
                                                   Nanjing        Nanjing        Manufacturing        28,800         95.38          -
(Note 3)

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       227,500        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.
Note 3: Changan Weilai New Energy Automobile Technology Co., Ltd. was renamed Avita Technology (Chongqing) Co., Ltd. in
May 2021.


As at June 30, 2021, 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




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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
Changan Ford                                      Manufacture and sale
                         Chongqing   Chongqing                                          USD24,100        50.00             -   Equity
Automobile Co., Ltd.                              ofautomobiles, and components

Changan Mazda                                     Manufacture and sale
                          Nanjing     Nanjing                                           USD11,097        50.00             -   Equity
Automobile Co., Ltd.                              ofautomobiles, and components

Changan Mazda Engine                              Manufacture and sale
                          Nanjing     Nanjing                                           USD20,996        50.00             -   Equity
Co., Ltd. (Note 1)                                ofautomobiles, and components

Jiangling Investment                              Manufacture and sale
                         Nanchang    Nanchang                                               100,000      50.00             -   Equity
Co., Ltd.                                         ofautomobiles, and components

                                                                II. Associates
Chongqing Changan                                 Develop, product and sale of

Kuayue Automobile Co.,   Chongqing   Chongqing    automobile and components;                   6,533     34.30             -   Equity
Ltd.                                              import and export goods.

                                                  Sale of Changan Kuayue’ s
Chongqing Changan
                                                  automobile and agricultural cars
Kuayue Automobile        Chongqing   Chongqing                                                   300     34.30             -   Equity
                                                  and components. Technical
Sales Co., Ltd.
                                                  advisory services for automobile

Beijing Fang’an Taxi
                          Beijing     Beijing     For the car loan business                    2,698     22.24             -   Equity
Co., Ltd.

                                                  Provide car loan; provide

                                                  vehicle loans and operating

                                                  equipment loans to car dealers,
Chongqing Auto Finance
                         Chongqing   Chongqing    including the construction loans          476,843       28.66            -   Equity
Co., ltd.
                                                  of exhibition hall,spare parts

                                                  loans and maintenance

                                                  equipment loans, etc.

                                                  Software and hardware
Hainan Anxinxing
                         Chengmai     Chengmai    technology development,
Information Technology                                                                        3,000      30.00             -   Equity
                          County       County     technical consulting, auto parts
Co., Ltd.
                                                  sales

                                                  Car sales, leasing, software
Nanjing Chelai Travel
                          Nanjing     Nanjing     technology development,                    10,000      10.00             -   Equity
Technology Co., Ltd.
                                                  technical services

                                                  Technology development
Hunan Guoxin
                                                  consulting, technical services,
Semiconductor            Zhuzhou      Zhuzhou                                                50,000      25.00             -   Equity
                                                  technology transfer in the field of
Technology Co., Ltd.
                                                  power semiconductors

Beijing Wutong Chelian    Beijing      Beijing    Technology development,                    39,799             -     49.00    Equity


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Technology Co., Ltd.                                 technical consulting, technical

                                                     services, technology transfer

Anhe (Chongqing)

Equity Investment Fund    Chongqing     Chongqing    Equity investment management                1,000            -       25.00    Equity
Management Co., Ltd.

Hangzhou Chelizi

Intelligent Technology       Hangzhou   Hangzhou     Car travel service                            630            -       20.00    Equity
Co., Ltd.

Pakistan Master Motors        Lahore,   Lahore,      Manufacture and sale
                                                                                           PKR75,000                      30.00    Equity
Co., Ltd.                    Pakistan    Pakistan    ofautomobiles, and components

Jiangling Holding Co.,                               Manufacture and sale
                             Nanchang   Nanchang                                              200,000       25.00              -   Equity
Ltd.                                                 ofautomobiles, and components

Nanjing Leading Equity                               Equity investment and related
                             Nanjing    Nanjing                                               976,000       16.39              -   Equity
Investment Partnership                               services

Nanjing Leading Equity
                                                     Private equity investment fund
Investment Management        Nanjing    Nanjing                                                  1,000      15.00              -   Equity
                                                     management and related services
Co., Ltd.

Chongqing Changan

New Energy Automobile     Chongqing     Chongqing    Sales                                      20,223      48.95              -   Equity
Technology Co., Ltd.

Zhongqi Chuangzhi
                             Nanjing    Nanjing      R&D                                     1,600,000      3.125              -   Equity
Technology Co., 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
              2021.6.30                                                              Measured at amortized cost        its changes are included in
                                        Included in Current Profits and
                                                                                                                      other comprehensive income
                                                    Losses

Cash                                                                                          47,721,342,242.91

Transactional financial assets                           195,349,598.73

Notes receivable                                                                              28,778,252,297.19

Accounts receivable                                                                            1,628,018,973.81

Other receivables                                                                              1,590,660,654.32

Other current assets                                                                                  86,887.50

Investment in other equity                                                                                                         691,990,000.00

                                                                          114
                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


instruments

Total                                                     195,349,598.73                     79,718,361,055.73                   691,990,000.00


                                                                                                                                     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
         2020.12.31                                                                                                     included in other
                                 included in the current profit and                   amortized cost
                                                                                                                     comprehensive income
                                    loss (standard requirements)
                                                                                                                          (designated)

Cash                                                                  -                    32,001,775,600.07                                      -

Transactional financial                              204,254,400.00                                            -                                  -
assets

Notes receivable                                                      -                    28,371,541,054.75                                      -

Accounts receivable                                                   -                     2,141,197,139.45                                      -

Other receivables                                                     -                       723,919,037.36                                      -

Other current assets                                                  -                       317,063,888.99                                      -

Investment in other equity                                            -                                        -                 691,990,000.00
instruments

Total                                                204,254,400.00                        63,555,496,720.62                     691,990,000.00




Financial liabilities
                                                                                                                                     In RMB Yuan
                                                                          2021.6.30                                     2020.12.31

Short-term loans                                                                      552,000,000.00                             578,000,000.00

Notes payable                                                                      27,186,257,508.96                          17,574,014,553.46

Accounts payable                                                                   24,517,099,039.98                          23,118,793,794.42

Other payables                                                                      3,643,263,561.28                           4,475,215,625.98

Long-term loan                                                                        654,300,000.00                             955,300,000.00

Non current liabilities due within one year                                           328,905,578.01                             100,000,000.00

Total                                                                              56,881,825,688.23                          46,801,323,973.86




2.       Transfer of financial assets

The transferred financial assets that entirely derecognized but continuing involved


As at June 30, 2021, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable
is RMB 949,918,527.77 (December 31, 2020: RMB 5,093,467,680.36). On June 30, 2021, its maturity date is 1 to 6 months.

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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 2021, 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 faces risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and market
risk (including exchange rate risk, interest rate risk and price risk). The main financial instruments of the Group include monetary
funds, equity investments, loans, bills receivable, accounts receivable, bills payable, accounts payable, etc. The risks associated with
these financial instruments and the risk management strategies adopted by the Group to reduce these risks are described below.


The Group has formulated risk management policies to identify and analyze the risks faced by the Group, set appropriate risk
acceptance levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will
periodically re-examine these risk management policies and related internal control systems to adapt to changes in market conditions
or the Group ’s operating activities. The internal audit department also regularly and irregularly checks whether the implementation
of the internal control system complies with the risk management policy.

Credit risk


The Group only deals with recognized and reputable customers. In accordance with the Group's policy, a credit review is required for
all customers who require credit transactions. In addition, the Group continuously monitors the balance of accounts receivable to
ensure that the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit's
bookkeeping standard currency, the Group does not provide credit transaction conditions unless specifically approved by the Group's
credit control department.


Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings, these
financial instruments have lower credit risk.


With respect to credit risk arising from the other financial assets of the Group, which comprise accounts receivable, 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.


Since the Group only trades with approved and reputable customers, there is no need for collateral. Credit risk is centralized and
managed according to customers. As at the balance sheet date, the Group has a specific concentration of credit risks. 56.09% of the
Group's accounts receivable (December 31, 2020:61.26%) originated from the top five customers with the balance of accounts
receivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.

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Judgment criteria for significant increase in credit risk


The group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increased
significantly since the initial recognition. In determining whether credit risk has increased significantly since the initial recognition,
the group considers that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort,
including qualitative and quantitative analysis based on the group's historical data, external credit risk ratings and forward-looking
information. Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the
group compares the default risk of financial instruments on the balance sheet date with the default risk on the initial confirmation
date to determine the change of default risk of financial instruments during their expected duration.


When one or more of the following quantitative or qualitative criteria are triggered, the group believes that the credit risk of financial
instruments has significantly increased:
 the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certain
percentage compared with the initial confirmation;
 qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor, early warning
customer list, etc.;


Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs, the group adopts a definition standard consistent with the internal credit risk
management objectives for relevant financial instruments, and considers both quantitative and qualitative indicators. The group
mainly takes the following factors into consideration when evaluating whether the debtor has credit impairment:
 significant financial difficulties of the issuer or debtor;
 debtor breaches the contract, such as default or overdue payment of interest or principal;
 the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic or
contractual reasons 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 result in the disappearance of an active market for the financial asset;
 purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.


The credit impairment of financial assets may be caused by the joint action of multiple events, but not by events that can be identified
separately.


A parameter for measuring expected credit losses


According to whether the credit risk has significantly increased and whether the credit impairment has occurred, the group measures
the impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The key
parameters of expected credit loss measurement include default probability, default loss rate and default risk exposure. The group
takes into account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,
guarantee method and types of collateral, repayment method, etc.) to establish default probability, default loss rate and default risk
exposure models.

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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




The relevant definition is as follows:
 probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months or
throughout the remaining period. The default probability of the group is adjusted based on the results of the historical credit loss
model and forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic
environment.
 the default loss rate refers to the group's expectation of the extent of losses from default risk exposure. Default loss rates also vary
depending on the type of counterparty, the type and priority of recourse, and the collateral. The default loss rate is the percentage of
the risk exposure loss at the time of default, calculated on the basis of the next 12 months or the whole duration;
 default exposure is the amount that should be paid to the group at the time of default over the next 12 months or throughout the
remaining duration.


The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking
information. Through the analysis of historical data, the group identifies the key economic indicators that affect the credit risks and
expected credit losses of each business type.


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 2021, the Group’s
loans are bearing fixed interest rate and the Group is not hedging the risk currently.


Foreign currency risk


The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are
settled in currencies other than the units' functional currency and net investment to offshore subsidiary.


In 30 June, 2021, 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
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                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report




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 2021. 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 investments   Change in fair value     Increase/(decrease) in equity

2021.6.30

Shanghai- Transactional financial assets                        163,778,100.00                      5%                        6,960,569.25

Shanghai- Transactional financial assets                        163,778,100.00                     -5%                      (6,960,569.25)

2020.12.31

Shanghai- Available for sale                                    180,929,400.00                      5%                        7,689,499.50

Shanghai- Available for sale                                    180,929,400.00                     -5%                      (7,689,499.50)


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 2020 and 30, June 2021.


The Group’s leverage ratio on the balance sheet date is as follows:
                                                                                     30 June 2021                   31 December 2020


Leverage ratio                                                                              58.38%                          54.78%


XI. Disclosure of fair value

1. Assets and liabilities measured at fair value

 June 30, 2021
                                                                                                                            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)

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                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Trading financial assets -
                                           163,778,100.00                                                              163,778,100.00
  equity instrument investment
Trading financial assets -
                                                                  31,571,498.73                                         31,571,498.73
derivative financial assets

Other equity instruments                                                                            691,990,000.00     691,990,000.00

Total                                      163,778,100.00         31,571,498.73                     691,990,000.00     887,339,598.73



December 31, 2020
                                                                                                                        In RMB Yuan

                                                                   Input measured at fair value
                                 Quoted price in          Important and observable          Important but
                                   active market                   input                 unobservable input             Total
                                 (The first level)           (The second level)           (The third level)
Trading financial assets -
  equity instrument                  180,929,400.00                                                                  180,929,400.00
  investment
Trading financial assets -
                                                                        23,325,000.00                                 23,325,000.00
derivative financial assets

Other equity instruments                                                                          691,990,000.00     691,990,000.00

Total                                180,929,400.00                     23,325,000.00             691,990,000.00     896,244,400.00




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
remaining maturity as the discount rate. On June 30, 2021 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.



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                                                       Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


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,          18.78%           18.78%
      Co ,Ltd.                                                                  and components


The Final controlling party is China South Industries Group corporation


2. Subsidiaries

See subsidiaries in IX(1). 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

                                Related parties                                                        Relationship
Anhui Wanyou Automobile Sales Service Co., Ltd                                        Controlled by the same ultimate holding company
Bazhong Wanyou Automobile Sales Service Co., Ltd                                      Controlled by the same ultimate holding company
Chengdu Huachuan electric Decoration Co., Ltd                                         Controlled by the same ultimate holding company
Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd                                          Controlled by the same ultimate holding company

Chengdu Wanyou Trading Co., Ltd                                                       Controlled by the same ultimate holding company

Chengdu Wanyou Automobile Sales Service Co., Ltd                                      Controlled by the same ultimate holding company

Chengdu Wanyou Automobile Trade Service Co., Ltd                                      Controlled by the same ultimate holding company

Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd                              Controlled by the same ultimate holding company

Guizhou Wanyou Automobile Sales Service Co., Ltd                                      Controlled by the same ultimate holding company

Harbin Dong'an Automobile Power Co., Ltd                                              Controlled by the same ultimate holding company

Harbin Dong'an Automobile Engine Manufacturing Co., Ltd                               Controlled by the same ultimate holding company

Hafei Automobile Co., Ltd                                                             Controlled by the same ultimate holding company

Hunan Tianyan Machinery Co., Ltd                                                      Controlled by the same ultimate holding company

Jiangsu Wanyou Automobile Sales Service Co., Ltd                                      Controlled by the same ultimate holding company

Luzhou Wanyou Automobile Service Co., Ltd                                             Controlled by the same ultimate holding company

Southern Faurecia Auto Parts Co., Ltd                                                 Controlled by the same ultimate holding company


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                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                              Related parties                                              Relationship

Southern Trina Chassis System Co., Ltd                                    Controlled by the same ultimate holding company

Nanfang Yingte Air Conditioning Co., Ltd                                  Controlled by the same ultimate holding company

Panzhihua Wanyou Automobile Sales Service Co., Ltd                        Controlled by the same ultimate holding company

Sichuan Jian'an Industry Co., Ltd                                         Controlled by the same ultimate holding company

Sichuan Ningjiang Shanchuan Machinery Co., Ltd                            Controlled by the same ultimate holding company

Wanyou Automobile Investment Co., Ltd                                     Controlled by the same ultimate holding company

Ya'an Wanyou Automobile Sales Service Co., Ltd                            Controlled by the same ultimate holding company

Yunnan Wanyou Automobile Sales Service Co., Ltd                           Controlled by the same ultimate holding company

Yunnan Xiangyu Automobile Sales Service Co., Ltd                          Controlled by the same ultimate holding company

China Ordnance Equipment Group Finance Leasing Co., Ltd                   Controlled by the same ultimate holding company

China Changan Automobile Group Hefei Investment Co., Ltd                  Controlled by the same ultimate holding company

China Changan Automobile Group Tianjin Sales Co., Ltd                     Controlled by the same ultimate holding company

Chongqing Anfu Automobile Marketing Co., Ltd                              Controlled by the same ultimate holding company

Chongqing Qingshan Industry Co., Ltd                                      Controlled by the same ultimate holding company

Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd                Controlled by the same ultimate holding company

Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd               Controlled by the same ultimate holding company

Chongqing Wanyou Economic Development Co., Ltd                            Controlled by the same ultimate holding company

Chongqing Wanyou zunda Automobile Sales Service Co., Ltd                  Controlled by the same ultimate holding company

Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd                  Controlled by the same ultimate holding company

Chongqing Chang'an Minsheng Logistics Co., Ltd                            Controlled by the same ultimate holding company

Beijing Beiji Electromechanical Industry Co., Ltd                         Controlled by the same ultimate holding company

Ordnance Equipment Group Finance Co., Ltd                                 Controlled by the same ultimate holding company

Chengdu Guangming Tianzhong Environmental Protection Technology           Controlled by the same ultimate holding company
Co., Ltd

Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd                Controlled by the same ultimate holding company

Chengdu Lingchuan vehicle fuel tank Co., Ltd                              Controlled by the same ultimate holding company

Chengdu Lingchuan special industry Co., Ltd                               Controlled by the same ultimate holding company

Chengdu Wanyou filter Co., Ltd                                            Controlled by the same ultimate holding company

Hubei Huazhong Marelli Automobile Lighting Co., Ltd                       Controlled by the same ultimate holding company

Hubei Xiaogan Huazhong lamp Co., Ltd                                      Controlled by the same ultimate holding company

Yunnan Xiyi Industry Co., Ltd                                             Controlled by the same ultimate holding company

China Ordnance Equipment Group commercial factoring Co., Ltd              Controlled by the same ultimate holding company

Chongqing Dajiang Jiexin Forging Co., Ltd                                 Controlled by the same ultimate holding company



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                             Related parties                                               Relationship

Chongqing Dajiang Yuqiang plastic products Co., Ltd                       Controlled by the same ultimate holding company

Chongqing Jialing Yimin special equipment Co., Ltd                        Controlled by the same ultimate holding company

Chongqing Jianshe vehicle air conditioner Co., Ltd                        Controlled by the same ultimate holding company

Chongqing construction industry (Group) Co., Ltd                          Controlled by the same ultimate holding company

Chongqing Jianshe electromechanical Co., Ltd                              Controlled by the same ultimate holding company

Chongqing Jianshe Tongda Industrial Co., Ltd                              Controlled by the same ultimate holding company

Chongqing naishite Steering System Co., Ltd                               Controlled by the same ultimate holding company

Chongqing Shangshang Auto Parts Co., Ltd                                  Controlled by the same ultimate holding company

Chongqing Qingshan transmission Sales Co., Ltd                            Controlled by the same ultimate holding company

Chongqing Xiyi automobile connecting rod Co., Ltd                         Controlled by the same ultimate holding company

Chongqing Yihong engineering plastic products Co., Ltd                    Controlled by the same ultimate holding company

Chongqing Changrong Machinery Co., Ltd                                    Controlled by the same ultimate holding company

Chongqing Chang'an industry (Group) Co., Ltd                              Controlled by the same ultimate holding company

Chongqing Chang'an Property Management Co., Ltd                           Controlled by the same ultimate holding company

Chongqing Chang'an Construction Engineering Co., Ltd                      Controlled by the same ultimate holding company

Chongqing changfengjiquan Machinery Co., Ltd                              Controlled by the same ultimate holding company

Chongqing Dajiang Xinda Vehicle Co., Ltd                                  Controlled by the same ultimate holding company

Chongqing Automobile Air Conditioner Co., Ltd                             Controlled by the same ultimate holding company

China Ordnance Equipment Group Information Center Co., Ltd                Controlled by the same ultimate holding company

Harbin Botong Auto Parts Manufacturing Co., Ltd                           Controlled by the same ultimate holding company

Chongqing Wanyou Automobile Sales Service Co., Ltd                        Controlled by the same ultimate holding company

Chongqing Chang'an Real Estate Development Co., Ltd                       Controlled by the same ultimate holding company

Hunan Tianyan Machinery Co., Ltd                                          Controlled by the same ultimate holding company

Chongqing Qingshan transmission branch of China Chang'an Automobile       Controlled by the same ultimate holding company
Group Co., Ltd

Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd     Controlled by the same ultimate holding company

Beijing zhongbing insurance brokerage Co., Ltd                             Participated by the Ultimate holding company

Lear Chang'an (Chongqing) Automotive System Co., Ltd                       Participated by the Ultimate holding company

United Automotive Electronics (Chongqing) Co., Ltd                         Participated by the Ultimate holding company

Nattiefu transmission system (Chongqing) Co., Ltd                          Participated by the Ultimate holding company

Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd                      Participated by the Ultimate holding company

Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd             Participated by the Ultimate holding company

Chongqing Dajiang Dongyang plastic products Co., Ltd                       Participated by the Ultimate holding company


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                                    Related parties                                                    Relationship

      Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd             Participated by the Ultimate holding company

      Chongqing Dajiang Yapu Auto Parts Co., Ltd                                        Participated by the Ultimate holding company

      Chongqing Jianshe han'ang automobile thermal management system Co.,
                                                                                        Participated by the Ultimate holding company
      Ltd

      Chongqing Lingchuan auto parts manufacturing technology Co., Ltd                  Participated by the Ultimate holding company

      Hangzhou Lingxing Yuexiang Auto Service Co.,Ltd.                                  Companies in which the company participates
      Chongqing Lingxing Yuexiang Auto Service Co.,Ltd.                                 Companies in which the company participates
      Nanjing Lingxing Yuexiang Auto Service Co.,Ltd.                                   Companies in which the company participates
      Nanjing Lingxing Technology Co., Ltd.                                             Companies in which the company participates


      5. Related-party transaction

      (1) Goods purchased and services received
                                                                                                                             In RMB Yuan

                                                                                                              Whether it
                                                                                                               exceeds
                                            Nature of the                                   Approved                           Prior-period
            Related parties                                        Current amount                                the
                                             transaction                                transaction amount                       amount
                                                                                                              transaction
                                                                                                               amount

Changan Ford Automobile Co., Ltd.       Procurement of parts             186,186.55             927,979.42             no         4,825,291.25

Jiangling Holdings Co., Ltd.            Accept labor                     737,706.14                       -            Yes                     -

Changan Auto Finance Co., Ltd.          Accept labor                   8,153,781.57                       -            Yes                     -

Chongqing Changan New Energy            Purchasing parts and
Automobile Technology Co., Ltd.         accepting          labor      82,033,905.11       2,399,850,764.74             no       292,316,059.70
                                        services

Beijing     Wutong     Auto    Union    Procurement of parts
                                                                      38,062,628.50         147,613,717.79             no                      -
Technology Co., Ltd.

China Changan Automobile Group          Accept labor
                                                                            60,000.00           144,000.00             no                      -
Co., Ltd.

Anhui Wanyou Automobile Sales           Accept labor
                                                                         626,024.86                       -            Yes                     -
Service Co., Ltd.

Bazhong Wanyou Automobile Sales         Accept labor
                                                                            73,330.36           478,580.09             no              41,138.48
Service Co., Ltd.

Chengdu Huachuan Denso Co., Ltd.        Procurement of parts         227,227,857.41         502,466,557.95             no       196,376,880.72

Chengdu Ningjiang Showa Auto            Procurement of parts
                                                                      39,951,396.48         108,331,759.70             no        43,467,720.96
Parts Co., Ltd.

Chengdu Wanyou Trading Co., Ltd.        Accept labor                        12,164.16            27,077.76             no              10,555.36

Chengdu      Wanyou       Automobile    Accept labor                   3,584,234.21           1,341,241.20             Yes         411,726.27

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                                                                                                             Whether it
                                                                                                              exceeds
                                              Nature of the                                 Approved                        Prior-period
            Related parties                                          Current amount                             the
                                               transaction                              transaction amount                    amount
                                                                                                             transaction
                                                                                                              amount

Trading Service Co., Ltd.

Chengdu        Wanyou          Xiangyu    Accept labor
                                                                         5,262,969.51         6,703,371.11            no        426,011.37
Automobile Sales Service Co., Ltd.

Guizhou Wanyou Automobile Sales           Receiving          labor
                                                                         6,240,583.45         6,858,415.10            no        655,606.26
Service Co., Ltd                          services

Harbin Dong'an Automobile Power           Purchase parts and
                                                                       417,231,892.67     1,241,851,454.36            no    451,467,256.21
Co., Ltd                                  accept labor services

Harbin Dong'an Automobile Engine          Purchase parts and
                                                                       855,901,689.16     1,785,311,733.08            no    417,266,451.54
Manufacturing Co., Ltd                    accept labor services

Hunan Tianyan Machinery Co., Ltd          Purchase parts                52,452,744.77      147,364,410.44             no                   -

Jiangsu Wanyou Automobile Sales           Receiving          labor
                                                                           651,038.61                    -            yes                  -
Service Co., Ltd                          services

Luzhou Wanyou Automobile Service          Receiving          labor
                                                                           380,083.72          399,270.46             no          84,600.36
Co., Ltd                                  services

Southern Faurecia Auto Parts Co.,         Purchase parts
                                                                       280,222,308.44      644,078,017.73             no    200,998,771.72
Ltd

Southern Trina Chassis System Co.,        Purchase parts
                                                                       486,779,984.60     1,094,768,445.52            no    307,409,807.58
Ltd

Nanfang Yingte Air Conditioning           Purchase parts
                                                                       200,511,859.90      574,223,645.64             no    173,331,986.97
Co., Ltd

Panzhihua     Wanyou      Automobile      Receiving          labor
                                                                           263,159.87          385,838.81             no          90,562.92
Sales Service Co., Ltd                    services

Sichuan Jian'an Industry Co., Ltd         Purchase parts and
                                                                       483,719,852.19      988,075,762.67             no    300,829,143.28
                                          accept labor services

Sichuan      Ningjiang        Shanchuan   Purchase parts
                                                                       171,000,224.81      293,408,089.81             no     97,803,118.73
Machinery Co., Ltd

Ya'an Wanyou Automobile Sales             Receiving          labor
                                                                           908,456.37         1,499,709.94            no        112,581.31
Service Co., Ltd                          services

Yunnan Wanyou Automobile Sales            Receiving          labor
                                                                        10,743,446.13         6,262,106.30            yes       780,899.66
Service Co., Ltd                          services

Yunnan Xiangyu Automobile Sales           Receiving          labor
                                                                           132,323.01          279,630.10             no          79,915.55
Service Co., Ltd                          services

China Changan Automobile Group            Receiving          labor
                                                                           951,991.17         3,053,118.54            no                   -
Hefei Investment Co., Ltd                 services

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                                                                                                                 Whether it
                                                                                                                  exceeds
                                                 Nature of the                                  Approved                         Prior-period
            Related parties                                             Current amount                              the
                                                  transaction                               transaction amount                     amount
                                                                                                                 transaction
                                                                                                                  amount

China Changan Automobile Group               Receiving          labor
                                                                              111,409.95           108,982.12             yes           6,413.27
Tianjin Sales Co., Ltd                       services

Chongqing Qingshan Industry Co.,             Purchase parts
                                                                        2,700,637,434.06      7,681,122,851.57            no    1,091,053,146.70
Ltd

Chongqing          Wanyou       Ducheng      Receiving          labor
                                                                            1,721,447.53          2,669,006.00            no         274,639.05
Automobile Sales Service Co., Ltd            services

Chongqing          Wanyou       Xingjian     Receiving          labor
                                                                            1,092,633.98          2,179,485.87            no         160,585.36
Automobile Sales Service Co., Ltd            services

Chongqing        Wanyou        Economic      Purchase parts and
                                                                          369,796,951.53      1,453,044,496.47            no     571,494,801.82
Development Co., Ltd                         accept labor services

Chongqing       Chang'an        Minsheng     Receiving          labor
                                                                        1,388,787,441.14      3,331,269,090.79            no     865,998,486.41
Logistics Co., Ltd                           services

Beijing    Beiji      Electromechanical      Purchase parts
                                                                                 2,086.86            59,716.13            no         262,158.45
Industry Co., Ltd

Chengdu     Jialing     Huaxi     Optical    Purchase parts
                                                                            6,216,741.79         16,967,785.97            no        6,983,371.89
Precision Machinery Co., Ltd

Chengdu Lingchuan vehicle fuel               Purchase parts
                                                                           17,816,531.05         23,366,990.69            no        4,856,159.30
tank Co., Ltd

Chengdu Wanyou filter Co., Ltd               Purchase parts                84,479,587.54       175,733,820.97             no      47,326,318.61

Hubei        Huazhong             Marelli    Purchase parts
                                                                          465,100,075.04      1,126,272,042.36            no     379,667,416.38
Automobile Lighting Co., Ltd

Hubei Xiaogan Huazhong lamp Co.,             Purchase parts
                                                                           61,893,517.73       125,580,259.51             no      38,549,124.98
Ltd

Yunnan Xiyi Industry Co., Ltd                Purchase parts                59,269,771.21       128,715,201.65             no      31,247,072.00

Chongqing Dajiang Jiexin Forging             Purchase parts
                                                                            3,022,294.47          6,787,819.45            no        1,330,537.16
Co., Ltd

Chongqing Dajiang Yuqiang plastic            Purchase parts
                                                                           88,514,947.10       225,185,238.08             no      60,582,775.09
products Co., Ltd

Chongqing       Jianshe      vehicle   air   Purchase parts
                                                                          105,174,591.95       213,479,120.66             no      50,801,423.79
conditioner Co., Ltd

Chongqing       construction     industry    Purchase parts
                                                                              780,297.42                     -            yes                   -
(Group) Co., Ltd

Chongqing          Jianshe        Tongda     Purchase parts                19,335,699.51         51,931,758.76            no      15,227,209.83


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                                                                                                               Whether it
                                                                                                                exceeds
                                               Nature of the                                  Approved                        Prior-period
            Related parties                                           Current amount                              the
                                                transaction                               transaction amount                    amount
                                                                                                               transaction
                                                                                                                amount

Industrial Co., Ltd

Chongqing naishite Steering System         Purchase parts
                                                                        378,981,317.38      1,066,811,652.49            no    303,123,612.34
Co., Ltd

Chongqing Shangshang Auto Parts            Purchase parts
                                                                         51,123,910.13         72,340,990.16            no     18,227,944.17
Co., Ltd

Chongqing Qingshan transmission            Purchase parts
                                                                         10,226,693.15         14,676,995.45            no       3,951,626.52
Sales Co., Ltd

Chongqing        Yihong     engineering    Purchase parts
                                                                          8,668,811.99          8,199,641.64            yes      1,785,587.35
plastic products Co., Ltd

Chongqing Changrong Machinery              Purchase parts
                                                                        108,378,855.15       245,547,746.51             no     68,484,512.99
Co., Ltd

Chongqing        Chang'an      industry    Receiving          labor
                                                                          4,811,062.11         12,102,747.55            no       2,646,670.74
(Group) Co., Ltd                           services

Chongqing        Chang'an      Property    Receiving          labor
                                                                          1,911,249.38          4,832,804.57            no       2,933,009.46
Management Co., Ltd                        services

Beijing      zhongbing        insurance    Receiving          labor
                                                                               5,554.42                    -            yes                  -
brokerage Co., Ltd                         services

Lear       Chang'an         (Chongqing)    Purchase parts
                                                                        297,535,098.14       493,898,477.76             no                   -
Automotive System Co., Ltd

United     Automotive        Electronics   Purchase parts and
                                                                        237,298,829.56       392,609,121.15             no                   -
(Chongqing) Co., Ltd                       accept labor services

Nattiefu     transmission        system    Purchase parts
                                                                        192,065,903.94       545,323,644.38             no                   -
(Chongqing) Co., Ltd

Tiannak    Lingchuan        (Chongqing)    Purchase parts
                                                                         29,000,980.23         82,294,567.39            no                   -
exhaust system Co., Ltd

Changan Laisi (Chongqing) robot            Purchase parts
                                                                            601,568.93                     -            yes                  -
intelligent equipment Co., Ltd

Chongqing        Dajiang      Dongyang     Purchase parts
                                                                          4,831,358.42         12,651,598.49            no                   -
plastic products Co., Ltd

Chongqing         Dajiang      National    Purchase parts
Precision Machinery Manufacturing                                       135,836,367.95       351,149,247.22             no                   -
Co., Ltd

Chongqing Dajiang Yapu Auto Parts          Purchase parts
                                                                        176,074,670.02       390,144,450.41             no                   -
Co., Ltd

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                                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                                                             Whether it
                                                                                                                              exceeds
                                                  Nature of the                                           Approved                               Prior-period
            Related parties                                                  Current amount                                     the
                                                     transaction                                     transaction amount                            amount
                                                                                                                            transaction
                                                                                                                              amount

Chongqing         Jianshe        han'ang      Purchase parts
automobile    thermal       management                                          117,174,891.64           245,765,891.44               no                            -
system Co., Ltd

Chongqing Lingchuan auto parts                Purchase parts
                                                                                 61,042,625.94           106,376,934.96               no                            -
manufacturing technology Co., Ltd

Chongqing       Anfu        Automobile        Purchase parts
                                                                                                 -                     -              no               43,818.58
Marketing Co., Ltd

Chongqing         Xiyi       automobile       Purchase parts                                                                                                        -
                                                                                                 -                     -              no
connecting rod Co., Ltd                                                                                                                                 1,571.72

Chongqing             changfengjiquan         Purchase parts
                                                                                                 -            17,055.52               no               39,562.52
Machinery Co., Ltd

Hangzhou        chelizi       Intelligent     Purchase parts
                                                                                                 -            59,723.88               no               32,858.40
Technology Co., Ltd

Chengdu Lingchuan special industry            Purchase parts
                                                                                                 -           120,274.55               no                            -
Co., Ltd

Chongqing      Chang'an       Intelligent     Receiving            labor
Industrial Technology Service Co.,            services                                           -           764,520.00               no                            -
Ltd

                              Total:                                        10,563,387,032.07         28,565,866,450.83                  -    6,055,875,357.64

      The price of the Group’s purchase from related parties is based on contracts agreed by both parties.


      (2) Goods sold and services offered
                                                                                                                                              In RMB Yuan

                                                                                                                                               Prior-period
                         Related parties                                   Nature of the transaction             Current amount
                                                                                                                                                Amount

  Changan Ford Motor Co., Ltd                                       Sales of materials and parts                       1,855,571.93                743,941.88

  Chang'an Mazda Automobile Co., Ltd                                Selling parts                                                     -          4,036,655.18

  Chang'an Auto Finance Co., Ltd                                    Financial service fee                            235,922,452.68                             -

  Hainan anxinxing Information Technology Co., Ltd                  Sales channel usage fee                                180,405.38                           -

  Chongqing Chang'an Kuayue Vehicle Co., Ltd                        Engine sales and test fees                        25,113,180.83                137,603.78

  Chongqing       Chang'an       New        Energy     Vehicle      Sales of complete vehicles and parts
                                                                                                                   1,507,513,718.25            972,051,413.45
  Technology Co., Ltd

  Anhui Wanyou Automobile Sales Service Co., Ltd                    Sales of complete vehicles and parts              94,893,670.51                             -


                                                                                 128
                                                      Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                                                   Prior-period
                   Related parties                           Nature of the transaction         Current amount
                                                                                                                    Amount

Chengdu Huachuan electric Decoration Co., Ltd           Training fee                                   51,886.79                  -

Chengdu Wanyou Automobile Sales Service Co., Ltd        Sales of materials and parts                   34,563.77      -196,660.99

Chengdu Wanyou Automobile Trade Service Co.,            Sales of complete vehicles and parts
                                                                                                  316,249,425.28   190,745,183.84
Ltd

Chengdu    Wanyou     Xiangyu    Automobile   Sales     Sales of complete vehicles and parts
                                                                                                  794,544,935.13   514,114,179.34
Service Co., Ltd

Guizhou Wanyou Automobile Sales Service Co., Ltd        Sales of complete vehicles and parts      588,046,422.66   370,715,806.38

Harbin Dong'an Automobile Power Co., Ltd                Sales of materials and parts                   15,930.30        31,887.37

Harbin Dong'an Automobile Engine Manufacturing          Sales of materials and parts
                                                                                                   31,522,892.41    23,028,367.10
Co., Ltd

Jiangsu Wanyou Automobile Sales Service Co., Ltd        Sales of complete vehicles and parts      104,011,720.99                  -

Luzhou Wanyou Automobile Service Co., Ltd               Sales of materials and parts                  519,692.06       284,227.69

Panzhihua Wanyou Automobile Sales Service Co.,          Sales of materials and parts
                                                                                                      263,050.52       144,054.09
Ltd

Sichuan Ningjiang Shanchuan Machinery Co., Ltd          Training fee                                   51,886.79       305,799.06

Wanyou Automobile Investment Co., Ltd                   Sales of complete vehicles                349,917,081.21   264,690,859.01

Ya'an Wanyou Automobile Sales Service Co., Ltd          Sales of materials and parts                  655,115.77       252,146.29

Yunnan Wanyou Automobile Sales Service Co., Ltd         Sales of complete vehicles and parts      671,843,881.62   437,318,866.83

Yunnan Xiangyu Automobile Sales Service Co., Ltd        Sales of complete vehicles and parts       46,605,045.84    43,517,953.51

China Ordnance Equipment Group Finance Leasing          service charge
                                                                                                       47,547.17        77,547.17
Co., Ltd

China Changan Automobile Group Hefei Investment         Sales of complete vehicles and parts
                                                                                                   41,156,064.45    66,969,966.54
Co., Ltd

China Changan Automobile Group Tianjin Sales Co.,       Sales of complete vehicles and parts
                                                                                                  137,135,092.41    62,075,372.58
Ltd

Chongqing Anfu Automobile Marketing Co., Ltd            Sales of complete vehicles and parts        6,189,380.58     7,627,054.89

Chongqing Qingshan Industry Co., Ltd                    Sales of materials and parts               35,512,076.07     1,579,125.47

Chongqing Wanyou Ducheng Automobile Sales               Sales of materials and parts
                                                                                                    1,161,570.19       347,013.72
Service Co., Ltd

Chongqing Wanyou Xingjian Automobile Sales              Sales of materials and parts
                                                                                                      697,236.79       496,623.26
Service Co., Ltd

Chongqing Wanyou Economic Development Co.,              Sales of complete vehicles and parts
                                                                                                1,049,808,179.31   695,050,958.14
Ltd

Chongqing Wanyou zunda Automobile Sales Service         Sales of materials and parts
                                                                                                  206,745,318.62   131,579,690.10
Co., Ltd

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                                                        Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                                                                 Prior-period
                      Related parties                            Nature of the transaction             Current amount
                                                                                                                                   Amount

Chongqing Chang'an Minsheng Boyu Transportation            Sales of complete vehicles
                                                                                                              85,818,614.19                         -
Co., Ltd

Chongqing Chang'an Minsheng Logistics Co., Ltd             Sales of materials and parts                         928,663.27             507,924.04

Chengdu Lingchuan vehicle fuel tank Co., Ltd               Sales of materials and parts                         938,476.80          1,668,185.97

Yunnan Xiyi Industry Co., Ltd                              Sales of materials and parts                        2,746,914.24         2,559,166.80

China Ordnance Equipment Group commercial                  service charge
                                                                                                                 84,853.12                          -
factoring Co., Ltd

Chongqing Dajiang Yuqiang plastic products Co.,            Sales of materials and parts
                                                                                                                -716,798.50            558,413.01
Ltd

Chongqing construction industry (Group) Co., Ltd           Sales of materials and parts                         171,959.13                          -

Tiannak Lingchuan (Chongqing) exhaust system               Sales of materials and parts
                                                                                                               6,228,241.00                         -
Co., Ltd

Chongqing Dajiang Dongyang plastic products Co.,           Sales of materials and parts
                                                                                                               1,181,692.00                         -
Ltd

Chongqing Dajiang National Precision Machinery             Outsourcing processing
                                                                                                                 10,746.64                          -
Manufacturing Co., Ltd

Chongqing Lingchuan auto parts manufacturing               Sales of materials and parts
                                                                                                               9,518,232.82                         -
technology Co., Ltd

Bazhong Wanyou Automobile Sales Service Co.,               Selling parts
                                                                                                                                       183,115.86
Ltd. (note)

                                              Total                                                      6,355,176,591.02      3,793,202,441.36

      The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
      Note: Bazhong Wanyou Automobile Sales Service Co., Ltd. was cancelled in December 2020.


      (3) Related-party leasing
      Rent assets to related parties
                                                                                                                               In RMB Yuan

                                                                  Type of leased                                     Same period of last period
                              Lessee                                                      Report period Amount
                                                                       assets                                                 Amount

  Nanjing LingHang Technology Co., Ltd                          vehicle                            45,919,893.28                                -

  Chongqing Wanyou Economic Development Co., Ltd                House and land                        321,100.92                                -

  Chongqing Chang'an industry (Group) Co., Ltd                  House                               3,283,373.71                  3,283,373.71

  Chongqing Chang'an New Energy Vehicle Technology              Housing and land
                                                                                                    7,154,813.00                  2,098,588.40
  Co., Ltd

  Chongqing Chang'an New Energy Vehicle Technology              Battery Workshop
                                                                                                    2,674,583.15                  1,175,045.73
  Co., Ltd

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                                                       Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Chongqing Chang'an Minsheng Logistics Co., Ltd                House                             356,642.49                     601,461.41


 Rent assets from related parties
                                                                                                                           In RMB Yuan

                                                Type of
                Lessor                                         Report period Amount            Same period of last period Amount
                                            leased assets

 Chongqing Chang'an Minsheng
                                            Land                             251,047.99                                                    -
 Logistics Co., Ltd


 (4) Other related transactions

 Integrated service charges

                                                                                                                           In RMB Yuan

                                                                                                              Same period of last period
             Related parties                    Nature of the transaction       Report period Amount
                                                                                                                      Amount

                                                Payment of land rental
                                                                                           8,592,223.08                    13,960,191.76
                                                fees

                                                Payment of building
 Changan Industries (Group) Co. Ltd                                                        1,197,968.00                     2,129,622.09
                                                rental fees

                                                Payment of utilities                      34,902,256.18                    62,495,905.46

                                                Others                                     1,234,867.44                     4,286,872.15

                                    Total                                                 45,927,314.70                    82,872,591.46


 Purchase of project materials
                                                                                                                           In RMB Yuan

                                                                                                                  Same period of last
                              Related parties                                   Report period Amount
                                                                                                                    period Amount

 Chongqing Chang'an Construction Engineering Co., Ltd                                         1,266,884.27                 66,354,530.30

 Chongqing Chang'an Minsheng Logistics Co., Ltd                                                           -                 1,646,984.15

 Chongqing Chang'an industry (Group) Co., Ltd                                                             -                    17,522.13

 Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd                               5,616,000.00                                 -

                                    Total                                                     6,882,884.27                 68,019,036.58


 Staff expenses for technical supporting
                                                                                                                           In RMB Yuan

                                                                                                                  Same period of last
                              Related parties                                   Report period Amount
                                                                                                                    period Amount

 Chang'an Mazda Automobile Co., Ltd                                                           5,349,433.96                  7,021,656.61


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                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Changan Ford Motor Co., Ltd                                                                    8,106,439.00                  9,057,020.82

Chongqing Chang'an New Energy Vehicle Technology Co., Ltd                                      1,223,495.73                             -

Chongqing Shangshang Auto Parts Co., Ltd                                                          53,900.00                             -

                                Total                                                         14,733,268.69              16,078,677.43


Techonology development service charges
                                                                                                                             In RMB Yuan
                                                                                                                 Same period of last
                           Related parties                                    Report period Amount
                                                                                                                   period Amount
Chongqing Changan Kuayue Automobile Co., Ltd.                                                  2,558,531.66                             -
                                Total                                                          2,558,531.66                             -


Collection of trademark use rights fees
                                                                                                                             In RMB Yuan
                                                                                                                 Same period of last
                           Related parties                                    Report period Amount
                                                                                                                   period Amount
Chongqing Changan Kuayue Automobile Co., Ltd.                                            -                                   9,596,603.77


Related party monetary funds
                                                                                                                             In RMB Yuan

                         Related parties                                    Ending Amount                     Beginning Amount

 China South Industries Group Finance Co., Ltd                                   10,922,189,438.89                 10,772,951,856.71

 Changan Automobile Finance Co., Ltd                                              7,500,000,000.00                  7,500,000,000.00

In 2021, the annual interest rate of deposits deposited with related parties is 0.35% - 3.5%, and the term is 0-12 months.


Borrowing

Short-term borrowing

                                                                                                                        In RMB Yuan

                           Related parties                                       Ending Amount                   Beginning Amount

China South Industries Group Finance Co., Ltd                                                542,000,000.00             578,000,000.00


Interest income of deferred payment
                                                                                                                    In RMB Yuan
                                                                                                                 Same period of last
                           Related parties                                    Report period Amount
                                                                                                                   period Amount

Wanyou Automobile Investment Co., Ltd                                                             15,340.71                     18,756.64

Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd                                          50,616.82                    624,381.42


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                                                         Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


    Chengdu Wanyou Automobile Trade Service Co., Ltd                                             58,781.86                  165,392.98

    Yunnan Wanyou Automobile Sales Service Co., Ltd                                              31,071.82                      54,715.93

    Guizhou Wanyou Automobile Sales Service Co., Ltd                                             70,417.82                  200,337.69

    Anhui Wanyou Automobile Sales Service Co., Ltd                                                  1,862.83                            -

    Jiangsu Wanyou Automobile Sales Service Co., Ltd                                                 199.12                             -

    Chongqing Wanyou Economic Development Co., Ltd                                               21,953.77                      81,141.59

    China Changan Automobile Group Hefei Investment Co., Ltd                                                -                   20,224.78

                                    Total                                                       250,244.75                 1,164,951.03



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 receivable      Wanyou Automobile Investment Co., Ltd                2,403,100,000.00                -   1,504,200,000.00                -

                       Harbin      Dong'an        Automobile      Engine
 Notes receivable                                                             13,906,726.16                 -     13,328,173.30                 -
                       Manufacturing Co., Ltd

 Notes receivable      Chongqing Qingshan Industry Co., Ltd                   18,172,017.52                 -        734,400.00                 -

                       Chongqing Chang'an New Energy Vehicle
 Notes receivable                                                            201,044,380.78                 -                    -              -
                       Technology Co., Ltd

                       Chongqing      Chang'an         Minsheng    Boyu
 Notes receivable                                                             82,905,296.62                 -                    -              -
                       Transportation Co., Ltd

 Notes receivable      Chongqing naishite Steering System Co., Ltd             5,276,297.45                 -                    -              -

                                Subtotal                                    2,724,404,718.53                -   1,518,262,573.30            -

                       Chongqing Chang'an New Energy Vehicle
Account receivable                                                           736,280,330.10                 -   1,228,074,856.50                -
                       Technology Co., Ltd

Account receivable     Jiangling Holdings Limited                             38,503,076.15                 -     39,964,487.77                 -

                       Chongqing Chang'an Minsheng Logistics Co.,
Account receivable                                                            32,063,098.53                 -     31,376,144.03                 -
                       Ltd

                       Yunnan Wanyou Automobile Sales Service Co.,
Account receivable                                                                          -               -      1,707,391.53                 -
                       Ltd

Account receivable     Changan Ford Motor Co., Ltd                             1,171,333.10                 -      9,727,086.90                 -

                       Harbin      Dong'an        Automobile      Engine
Account receivable                                                             4,909,080.39                 -        845,087.33                 -
                       Manufacturing Co., Ltd

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Account receivable   Chongqing Chang'an industry (Group) Co., Ltd        4,149,202.09          -        701,659.69        -

Account receivable   Chang'an Auto Finance Co., Ltd                     40,235,849.06          -     54,885,984.97        -

Account receivable   Chang'an Mazda Engine Co., Ltd                                 -          -        156,000.00        -

Account receivable   Chang'an Mazda Automobile Co., Ltd                             -          -      5,435,063.14        -

Account receivable   Harbin Dong'an Automobile Power Co., Ltd                       -          -            180.00        -

Account receivable   Chongqing Chang'an Kuayue Vehicle Co., Ltd         28,375,009.64          -      7,978,148.98        -

Account receivable   Chongqing Qingshan Industry Co., Ltd                7,671,044.75          -      8,611,202.87        -

                     Hainan anxinxing Information Technology Co.,
Account receivable                                                                  -          -        602,542.27        -
                     Ltd

                     Guangxi Wanyou Automobile Sales Service
Account receivable                                                                  -          -            997.60        -
                     Co., Ltd

                     Chongqing Wanyou Economic Development
Account receivable                                                           8,407.96          -                  -       -
                     Co., Ltd

Account receivable   Pakistan master Automobile Co., Ltd                            -          -     82,290,540.22        -

Account receivable   Nanjing LingHang Technology Co., Ltd               15,320,988.07          -        340,260.00        -

                     Chengdu Huachuan electric Decoration Co.,
Account receivable                                                          55,000.00          -                  -       -
                     Ltd

                     Sichuan Ningjiang Shanchuan Machinery Co.,
Account receivable                                                          55,000.00          -                  -       -
                     Ltd

                     Chongqing Wanyou Ducheng Automobile Sales
Account receivable                                                           3,486.65          -                  -       -
                     Service Co., Ltd

                     Tiannak     Lingchuan   (Chongqing)    exhaust
Account receivable                                                               0.03          -                  -       -
                     system Co., Ltd

                               Subtotal                                908,800,906.52          -   1,472,697,633.80       -

 Other receivable    Changan Ford Motor Co., Ltd                       124,312,677.99          -    124,312,677.99        -

 Other receivable    Hafei Automobile Co., Ltd                           1,500,000.00          -      1,500,000.00        -

 Other receivable    Chongqing Chang'an industry (Group) Co., Ltd        1,157,446.69          -      1,157,446.69        -

                     Chongqing Chang'an Minsheng Logistics Co.,
 Other receivable                                                                   -          -             53.44        -
                     Ltd

 Other receivable    Ordnance Equipment Group Finance Co., Ltd            189,834.99           -                  -       -

 Other receivable    Nanjing LingHang Technology Co., Ltd                 325,742.37           -                  -       -

                               Subtotal                                127,485,702.04          -    126,970,178.12        -

                     Chongqing Chang'an New Energy Vehicle
Advanced payment                                                                    -          -     24,243,930.61        -
                     Technology Co., Ltd

Advanced payment     Beijing Wutong car Link Technology Co., Ltd.
                                                                        29,975,990.00          -                  -       -

Advanced payment     Chongqing Shangshang Auto Parts Co., Ltd             450,971.62           -                  -       -

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                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                     Beijing zhongbing insurance brokerage Co.,
Advanced payment                                                                  149,528.99           -                   -          -
                     Ltd

                              Subtotal                                          30,576,490.61          -      24,243,930.61           -


   Accounts payable to related parties of listed companies
                                                                                                                     In RMB Yuan

                                                                                                                       Beginning
          Items                                     Related parties                             Ending balance
                                                                                                                       balance

     Notes payable         Harbin Dong'an Automobile Power Co., Ltd                              259,520,000.00      544,530,000.00

     Notes payable         Chongqing Qingshan Industry Co., Ltd                                 1,399,280,000.00     916,880,000.00

     Notes payable         Harbin Dong'an Automobile Engine Manufacturing Co., Ltd               404,480,000.00      352,810,000.00

     Notes payable         Chongqing naishite Steering System Co., Ltd                           520,190,000.00      312,130,000.00

     Notes payable         Chongqing Chang'an Minsheng Logistics Co., Ltd                        250,023,552.96      324,235,180.29

     Notes payable         Chongqing Chang'an New Energy Vehicle Technology Co., Ltd                             -   123,346,500.00

     Notes payable         Chongqing Dajiang Yapu Auto Parts Co., Ltd                            211,860,000.00      114,770,000.00

     Notes payable         Nanfang Yingte Air Conditioning Co., Ltd                              142,170,000.00       94,190,000.00

     Notes payable         Chongqing Dajiang Yuqiang plastic products Co., Ltd                   120,730,000.00       65,391,200.00

                           Chongqing Jianshe han'ang automobile thermal management
     Notes payable                                                                               150,420,000.00       56,980,000.00
                           system Co., Ltd

     Notes payable         Chongqing Jianshe vehicle air conditioner Co., Ltd                    111,870,000.00       53,170,000.00

     Notes payable         Hunan Tianyan Machinery Co., Ltd                                                      -    51,370,000.00

     Notes payable         Chongqing Chang'an Construction Engineering Co., Ltd                      767,305.52       38,994,143.00

     Notes payable         Sichuan Ningjiang Shanchuan Machinery Co., Ltd                         67,486,248.47       42,045,906.61

     Notes payable         Hubei Huazhong Marelli Automobile Lighting Co., Ltd                    91,520,000.00       31,870,000.00

     Notes payable         Southern Faurecia Auto Parts Co., Ltd                                  61,130,000.00       30,780,000.00

     Notes payable         Chengdu Wanyou filter Co., Ltd                                         47,180,000.00       28,600,000.00

     Notes payable         Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd                           40,500,000.00       28,230,000.00

     Notes payable         Nattiefu transmission system (Chongqing) Co., Ltd                      39,550,000.00       23,860,000.00

     Notes payable         Chongqing Shangshang Auto Parts Co., Ltd                               43,466,629.00       18,890,000.00

     Notes payable         Sichuan Jian'an Industry Co., Ltd                                       3,800,000.00       12,140,000.00

     Notes payable         Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd                  20,390,000.00       11,930,000.00

     Notes payable         Chongqing Jianshe Tongda Industrial Co., Ltd                           18,705,736.67       10,900,000.00

     Notes payable         Hubei Xiaogan Huazhong lamp Co., Ltd                                   25,170,000.00       26,147,000.00

                           Chongqing Dajiang National Precision Machinery Manufacturing
     Notes payable                                                                                               -     8,353,982.41
                           Co., Ltd

     Notes payable         China Ordnance Equipment Group commercial factoring Co., Ltd                          -    27,249,816.78

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                                               Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


 Notes payable    Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd            7,460,000.00      5,000,000.00

 Notes payable    Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd        7,676,918.80      3,786,991.22

 Notes payable    Chongqing Yihong engineering plastic products Co., Ltd                6,270,000.00      1,680,000.00

 Notes payable    Chengdu Huachuan electric Decoration Co., Ltd                          540,000.00       1,640,000.00

 Notes payable    Chongqing Dajiang Jiexin Forging Co., Ltd                             4,160,000.00      1,600,000.00

 Notes payable    Southern Trina Chassis System Co., Ltd                               17,334,679.90      1,499,287.93

 Notes payable    Chongqing Chang'an industry (Group) Co., Ltd                                     -        300,927.73

 Notes payable    Chengdu Lingchuan vehicle fuel tank Co., Ltd                           460,000.00         300,000.00

 Notes payable    Hunan Tianyan Machinery Co., Ltd                                     72,130,000.00                  -

                  Chongqing Lingchuan auto parts manufacturing technology Co.,
 Notes payable                                                                         57,320,000.00                  -
                  Ltd

                                    Subtotal                                        4,203,561,071.32   3,365,600,935.97

Account payable   Chongqing Chang'an New Energy Vehicle Technology Co., Ltd            52,031,428.78    987,249,301.69

Account payable   Chongqing naishite Steering System Co., Ltd                         245,934,525.61    364,038,471.33

Account payable   Hubei Huazhong Marelli Automobile Lighting Co., Ltd                 112,829,767.44    271,361,040.92

Account payable   Harbin Dong'an Automobile Power Co., Ltd                            189,282,871.82    234,873,913.36

Account payable   Southern Trina Chassis System Co., Ltd                              159,960,405.59    202,699,198.08

Account payable   Harbin Dong'an Automobile Engine Manufacturing Co., Ltd             281,347,099.78    191,107,786.37

Account payable   Southern Faurecia Auto Parts Co., Ltd                                72,649,895.67    152,146,995.28

Account payable   Chongqing Dajiang Yapu Auto Parts Co., Ltd                          123,599,875.88    136,564,042.17

Account payable   Chongqing Wanyou Economic Development Co., Ltd                      201,948,357.38    127,374,868.86

Account payable   Nanfang Yingte Air Conditioning Co., Ltd                             58,361,434.58    114,805,252.76

Account payable   Chongqing Qingshan Industry Co., Ltd                                337,977,278.42    368,373,870.72

                  Chongqing Jianshe han'ang automobile thermal management
Account payable                                                                        35,791,386.99     53,945,823.59
                  system Co., Ltd

Account payable   Nattiefu transmission system (Chongqing) Co., Ltd                    69,302,599.61     53,653,386.24

Account payable   Chongqing Dajiang Yuqiang plastic products Co., Ltd                  28,567,138.34     51,429,508.22

Account payable   Hunan Tianyan Machinery Co., Ltd                                                 -     50,453,258.24

Account payable   Sichuan Jian'an Industry Co., Ltd                                    71,708,489.46     50,389,382.79

Account payable   Chongqing Changrong Machinery Co., Ltd                               30,573,614.53     48,567,677.78

Account payable   Beijing Wutong car Link Technology Co., Ltd.                          6,971,232.46     47,721,286.97

Account payable   Chongqing Jianshe vehicle air conditioner Co., Ltd                   33,589,015.28     43,541,607.75

Account payable   Chengdu Wanyou filter Co., Ltd                                       26,074,471.58     30,381,478.06

Account payable   Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd                         23,000,826.16     29,379,141.06

Account payable   Hubei Xiaogan Huazhong lamp Co., Ltd                                 14,821,763.03     23,952,436.29

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Account payable   Chongqing Jianshe Tongda Industrial Co., Ltd                         12,318,489.57   18,670,315.51

Account payable   Chongqing Shangshang Auto Parts Co., Ltd                             18,201,057.32   17,656,884.93

                  Chongqing Lingchuan auto parts manufacturing technology Co.,
Account payable                                                                        16,432,330.63   16,059,572.01
                  Ltd

Account payable   Sichuan Ningjiang Shanchuan Machinery Co., Ltd                       39,515,304.59   13,521,751.49

                  Chongqing Dajiang National Precision Machinery Manufacturing
Account payable                                                                        81,538,927.51   10,018,647.24
                  Co., Ltd

Account payable   Chengdu Huachuan electric Decoration Co., Ltd                        34,890,405.22    8,868,392.58

Account payable   Chengdu Lingchuan vehicle fuel tank Co., Ltd                          9,987,763.62    7,442,927.94

Account payable   Chongqing Chang'an Minsheng Logistics Co., Ltd                       12,027,722.29    7,310,129.55

Account payable   Chongqing Qingshan transmission Sales Co., Ltd                        1,209,940.57    6,290,936.01

Account payable   Chongqing Chang'an Kuayue Vehicle Co., Ltd                                       -    5,293,918.44

Account payable   Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd                 4,951,692.02    4,232,993.94

Account payable   Changan Ford Motor Co., Ltd                                               5,408.00    4,032,752.22

Account payable   Chongqing Dajiang Dongyang plastic products Co., Ltd                  1,508,839.61    3,947,873.64

Account payable   Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd            1,338,643.63    1,891,153.38

Account payable   Chongqing Yihong engineering plastic products Co., Ltd                3,360,302.42    1,864,973.67

Account payable   United Automotive Electronics (Chongqing) Co., Ltd                   28,486,425.51    1,505,015.86

Account payable   Yunnan Xiyi Industry Co., Ltd                                        18,459,331.52    1,423,406.29

Account payable   Chongqing Dajiang Jiexin Forging Co., Ltd                              569,159.21     1,313,966.45

Account payable   Chongqing Chang'an industry (Group) Co., Ltd                           406,949.37     1,014,734.86

Account payable   Hafei Automobile Co., Ltd                                                        -     949,114.25

Account payable   Chongqing construction industry (Group) Co., Ltd                       652,729.33      671,241.27

Account payable   Hangzhou chelizi Intelligent Technology Co., Ltd                                 -     655,287.41

Account payable   Chengdu Lingchuan special industry Co., Ltd                            129,362.01      620,006.72

Account payable   Chongqing Automobile Air Conditioner Co., Ltd                                    -     205,041.51

Account payable   Chongqing Jialing Yimin special equipment Co., Ltd                     104,496.50      104,496.50

Account payable   Jiangling Holdings Limited                                             102,373.73    37,532,873.73

                  Chengdu    Guangming     Tianzhong   Environmental     Protection
Account payable                                                                            83,175.03      83,175.03
                  Technology Co., Ltd

Account payable   Chongqing Dajiang Xinda Vehicle Co., Ltd                                         -      56,251.08

Account payable   Chongqing Jianshe electromechanical Co., Ltd                             47,265.91               -

Account payable   Lear Chang'an (Chongqing) Automotive System Co., Ltd                145,108,428.53   21,514,578.32

Account payable   Chongqing Xiyi automobile connecting rod Co., Ltd                        38,422.14      38,422.14

Account payable   Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd                      -      37,211.40

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 Account payable       Chongqing changfengjiquan Machinery Co., Ltd                                        -         34,113.46

                       Chongqing Qingshan transmission branch of China Chang'an
 Account payable                                                                                    804.09                    -
                       Automobile Group Co., Ltd

 Account payable       Hunan Tianyan Machinery Co., Ltd                                      37,594,859.84                    -

 Account payable       China Ordnance Equipment Group commercial factoring Co., Ltd           4,369,459.54                    -

 Account payable       Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd            72,172.88                    -

                                         Subtotal                                       2,649,835,720.53       3,828,871,887.36

Contract liabilities   Chongqing Wanyou Economic Development Co., Ltd                       148,426,701.76      136,922,319.01

Contract liabilities   Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd              81,105,670.79       72,155,192.54

Contract liabilities   Guizhou Wanyou Automobile Sales Service Co., Ltd                      54,810,358.25       58,030,319.57

Contract liabilities   Chengdu Wanyou Automobile Trade Service Co., Ltd                      50,110,735.42       35,971,849.65

Contract liabilities   Wanyou Automobile Investment Co., Ltd                                 18,062,746.34       31,469,102.13

Contract liabilities   China Changan Automobile Group Tianjin Sales Co., Ltd                 17,269,095.70       27,823,192.54

Contract liabilities   China Changan Automobile Group Hefei Investment Co., Ltd                  10,273.00       26,160,180.06

Contract liabilities   Yunnan Wanyou Automobile Sales Service Co., Ltd                       42,007,728.91        4,100,481.79

Contract liabilities   Chang'an Mazda Engine Co., Ltd                                         3,256,185.92        3,232,425.34

Contract liabilities   Chongqing Qingshan Industry Co., Ltd                                                -               1.57

Contract liabilities   Yunnan Xiangyu Automobile Sales Service Co., Ltd                       4,327,712.43        1,402,879.67

Contract liabilities   Hafei Automobile Co., Ltd                                                670,500.00          670,500.00

Contract liabilities   Chongqing Anfu Automobile Marketing Co., Ltd                              73,268.00          492,268.00

Contract liabilities   Bazhong Wanyou Automobile Sales Service Co., Ltd                          50,426.48           50,426.48

Contract liabilities   Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd               50,160.44           48,381.98

Contract liabilities   Hainan anxinxing Information Technology Co., Ltd                          40,775.60           40,775.60

                       Chongqing Jianshe han'ang automobile thermal management
Contract liabilities                                                                             15,752.76           15,752.76
                       system Co., Ltd

Contract liabilities   Panzhihua Wanyou Automobile Sales Service Co., Ltd                           554.47           14,218.43

Contract liabilities   Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd                43,449.69           13,806.65

Contract liabilities   Chongqing Shangshang Auto Parts Co., Ltd                                  12,979.98            3,980.00

Contract liabilities   China Ordnance Equipment Group commercial factoring Co., Ltd               1,841.34            3,639.52

Contract liabilities   Luzhou Wanyou Automobile Service Co., Ltd                                  6,206.06                 2.67

Contract liabilities   Jiangling Holdings Limited                                                          -      6,854,200.00

Contract liabilities   Chengdu Wanyou Automobile Sales Service Co., Ltd                          81,942.94                    -

Contract liabilities   Chongqing Wanyou zunda Automobile Sales Service Co., Ltd               9,629,851.77        8,387,067.42

Contract liabilities   Pakistan master Automobile Co., Ltd                                                 -      6,141,961.92

Contract liabilities   Changan Ford Motor Co., Ltd                                               46,157.30                    -

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                                                   Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Contract liabilities   Chang'an Mazda Automobile Co., Ltd                                   1,423,660.83                  -

Contract liabilities   Anhui Wanyou Automobile Sales Service Co., Ltd                      25,168,466.63                  -

Contract liabilities   Jiangsu Wanyou Automobile Sales Service Co., Ltd                    12,819,023.45                  -

Contract liabilities   Ya'an Wanyou Automobile Sales Service Co., Ltd                          17,613.00                  -

Contract liabilities   Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd              446,426.62                   -

                                        Subtotal                                          469,986,265.88   420,004,925.30

  Other payables       Chongqing Chang'an Minsheng Logistics Co., Ltd                     482,105,970.60   121,088,638.71

  Other payables       Chongqing Chang'an New Energy Vehicle Technology Co., Ltd          166,436,033.46    36,316,848.55

  Other payables       Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd      16,298,837.60    12,128,160.74

  Other payables       Chongqing Chang'an Construction Engineering Co., Ltd                 3,215,622.10     6,988,672.23

  Other payables       Changan Ford Motor Co., Ltd                                                     -     5,303,266.52

  Other payables       United Automotive Electronics (Chongqing) Co., Ltd                      54,059.20     1,870,640.08

  Other payables       Chongqing Chang'an Property Management Co., Ltd                      1,535,707.67     1,466,516.00

  Other payables       Chengdu Lingchuan special industry Co., Ltd                                     -      791,056.30

                       Chongqing Dajiang National Precision Machinery Manufacturing
  Other payables                                                                                       -      624,370.54
                       Co., Ltd

  Other payables       Nattiefu transmission system (Chongqing) Co., Ltd                       37,516.00      468,761.43

  Other payables       Chengdu Wanyou filter Co., Ltd                                        245,164.97       452,863.89

  Other payables       Harbin Dong'an Automobile Engine Manufacturing Co., Ltd               680,363.17       381,252.08

  Other payables       Chongqing Wanyou Economic Development Co., Ltd                          48,715.47      269,950.17

  Other payables       Southern Faurecia Auto Parts Co., Ltd                                           -      260,755.41

  Other payables       Chengdu Huachuan electric Decoration Co., Ltd                           10,810.91      253,402.50

  Other payables       Chengdu Wanyou Automobile Trade Service Co., Ltd                                -      208,688.90

  Other payables       Southern Trina Chassis System Co., Ltd                                          -      206,361.95

  Other payables       Nanfang Yingte Air Conditioning Co., Ltd                                        -      192,165.58

  Other payables       Chongqing Shangshang Auto Parts Co., Ltd                                 3,164.00      109,671.82

  Other payables       Chongqing Anfu Automobile Marketing Co., Ltd                                    -      100,000.00

  Other payables       Chongqing Changrong Machinery Co., Ltd                                          -        84,901.15

  Other payables       Chongqing naishite Steering System Co., Ltd                                     -        79,552.00

  Other payables       Chongqing Qingshan Industry Co., Ltd                                            -     8,634,212.55

  Other payables       Yunnan Wanyou Automobile Sales Service Co., Ltd                         60,475.62        56,370.87

  Other payables       Chongqing Dajiang Xinda Vehicle Co., Ltd                                        -        50,000.00

  Other payables       Sichuan Jian'an Industry Co., Ltd                                       73,512.79        49,913.90

  Other payables       Sichuan Ningjiang Shanchuan Machinery Co., Ltd                                  -        40,594.89


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                                                 Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                       Chongqing Jianshe han'ang automobile thermal management
  Other payables                                                                                           -        27,387.18
                       system Co., Ltd

  Other payables       Panzhihua Wanyou Automobile Sales Service Co., Ltd                          18,789.74        20,360.82

  Other payables       Hubei Xiaogan Huazhong lamp Co., Ltd                                                -        13,560.00

  Other payables       Chongqing Jianshe vehicle air conditioner Co., Ltd                                  -        10,975.69

  Other payables       Chongqing Dajiang Yapu Auto Parts Co., Ltd                                          -          8,588.36

  Other payables       Yunnan Xiyi Industry Co., Ltd                                                6,985.09          5,306.34

  Other payables       Ya'an Wanyou Automobile Sales Service Co., Ltd                              12,510.77          4,927.58

  Other payables       Chengdu Lingchuan vehicle fuel tank Co., Ltd                                        -          4,079.47

  Other payables       Luzhou Wanyou Automobile Service Co., Ltd                                    4,401.13          4,050.22

  Other payables       Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd                  22,916.81          2,539.14

  Other payables       Guizhou Wanyou Automobile Sales Service Co., Ltd                          130,413.04           9,011.83

  Other payables       China Changan Automobile Group Tianjin Sales Co., Ltd                       16,553.40          1,178.52

  Other payables       Chengdu Wanyou Trading Co., Ltd                                              2,432.90            46.00

  Other payables       Chongqing Chang'an Kuayue Vehicle Co., Ltd                                          -   160,487,855.00

  Other payables       Chongqing Chang'an industry (Group) Co., Ltd                             2,002,319.91      1,812,834.47

  Other payables       Harbin Dong'an Automobile Power Co., Ltd                                  160,098.40                  -

  Other payables       Chongqing Wanyou zunda Automobile Sales Service Co., Ltd                  800,000.00        150,000.00

  Other payables       China Chang'an Automobile Group Co., Ltd                                    60,000.00        90,000.00

  Other payables       Anhui Wanyou Automobile Sales Service Co., Ltd                              96,895.96                 -

  Other payables       Hunan Tianyan Machinery Co., Ltd                                            73,178.80                 -

  Other payables       Jiangsu Wanyou Automobile Sales Service Co., Ltd                          500,000.00                  -

  Other payables       Jiangling Holdings Limited                                                833,607.94                  -

                                         Total                                                675,547,057.45   361,130,289.38


XIII. Share-based payments

1. General information

√ Applicable □ Non-applicable
                                                                                                     Unit: share currency: RMB

Total amount of equity instruments granted by the company in the current period                                    76,195,400

Total amount of equity instruments exercised by the company in the current period

Total amount of various equity instruments expired in the current period of the company

The scope of exercise price of stock options issued by the company at the end of the period
                                                                                                                           No
and the remaining term of the contract


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                                                  Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


The scope of exercise price of other equity instruments issued at the end of the period and
                                                                                                                                      No
the remaining term of the contract


Other instructions


During the signing of the agreement and the payment of funds after the grant date, 33 incentive objects gave up their subscription of
1,900,800 shares of their corresponding restricted shares for personal reasons. Therefore, the actual grant objects of the company's
A-share restricted shares for the first time were 1247, and the actual grant amount for the first time was 76,195,400 shares.


2. Equity settled share based payment
√ Applicable □ Non-applicable
                                                                                                              Unit: Yuan currency: RMB

Determination     method     of fair   value   of equity
                                                                             Market price method model calculation
instruments on the grant date

Basis for determining the number of exercisable equity Based on the best estimate of the number of exercisable equity
instruments                                                instruments, the relevant expenses and costs are calculated according to
                                                           the fair value of the equity instruments on the grant date

Reasons for significant differences between the current
                                                                                                                                      No
estimate and the previous estimate

Cumulative amount of equity settled share based
                                                                                                                        107,618,400.00
payment included in capital reserve

Total recognized expenses of equity settled share based
                                                                                                                        107,618,400.00
payment in the current period

Other instructions
None

3. Cash settled share based payment
□ applicable √ not applicable

4. Modification and termination of share based payment
□ applicable √ not applicable

5. Other
□ applicable √ not applicable


XIV. Commitments and Contingencies

1. Significant commitments

    Investment commitment
    By June 30, 2021, the group has no investment commitment that has been signed but not yet fully fulfilled.




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2. Contingencies

   By June 30, 2021, 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,

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                                                  Chongqing Changan Automobile Company Limited 2021 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                                                        4,108,837,120.27                                  3,773,918,017.07

 1 to 2 years                                                            55,434,711.32                                   554,825,636.86

 2 to 3 years                                                           321,652,418.74                                   532,765,988.27

 Over 3 years                                                           808,112,167.80                                   696,515,785.09

 Total                                                                5,294,036,418.13                                  5,558,025,427.29



 Bad debt provision                                                     -95,559,843.06                                    -93,484,241.66
                                                                      5,198,476,575.07                                  5,464,541,185.63


(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

           2021.06.30                    93,484,241.66                    2,370,624.80               295,023.40            95,559,843.06

           2020.12.31                    22,709,502.59                   70,774,739.07                                     93,484,241.66



(3) Disclosure of accounts receivable
                                                                                                                        In RMB Yuan

                                                                                            Ending

                        Items                                    Book balance                            Provision for bad-debts

                                                             Amount               (%)                  Amount                 (%)

Individual assessment of credit expected loss          4,969,823,921.58                  93.88          77,639,076.15               1.56

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                                                       Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


and provision for bad debts

Assess bad debt provision for expected credit
expected loss according to credit risk                      324,212,496.55                  6.12         17,920,766.91                 5.53
characteristics combination

Total                                                      5,294,036,418.13            100.00            95,559,843.06                 1.81



                                                                                        Ending

                  Items                                        Book balance                               Provision for bad-debts

                                                          Amount                    (%)                 Amount                  (%)

Individual assessment of credit
expected loss and provision for bad                        5,428,359,709.78                97.67         77,639,076.15                 1.43
debts

Assess bad debt provision for expected
credit expected loss according to credit                    129,665,717.51                  2.33         15,845,165.51                12.22
risk characteristics combination

Total                                                      5,558,025,427.29            100.00            93,484,241.66                 1.68



(4) The parent company's portfolio of expected credit losses based on credit risk assessment is as follows:
                                                                                                                         In RMB Yuan

                                            Ending                                                    Beginning

                   Estimated book        Expected            Lifetime         Estimated book
                                                                                                   Expected credit    Lifetime expected
                      balance in         credit loss      expected credit       balance in
                                                                                                    loss rate (%)          credit loss
                          default          rate (%)            loss              default

 Within 1 year     287,847,271.78                0.05         154,598.66       90,538,481.62                   0.40            361,940.43

 1 to 2 years             657,143.38             9.97          65,500.04         3,695,660.30                  4.14            152,979.49

 2 to 3 years                                                                           26.00                  7.15                      1.86

 Over 3 years        35,708,081.39             49.57       17,700,668.21       35,431,549.59                  43.27         15,330,243.73

 Total             324,212,496.55                5.53      17,920,766.91      129,665,717.51                  12.22         15,845,165.51


(5)As of June 30, 2021, the top five accounts receivable totaled RMB 3,275,776,960.75, accounting for 61.88% of the total
accounts receivable (As of December 31, 2020, the top five accounts receivable totaled RMB4,296,350,189.29 , Accounting for
77.30% of the total accounts receivable).
(6)As of June 30, 2021, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December
31, 2020: None)


2. Other receivables

(1)The aging analysis is as follow:



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                                                     Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


                                                                                                                            In RMB Yuan

                  Account receivable age                                Ending                                    Beginning

Dividends receivable                                                             854,896,010.57

Other receivables                                                            1,692,436,327.45                          1,990,616,778.83

Total                                                                        2,547,332,338.02                          1,990,616,778.83



Dividends receivable
                                                                                                                            In RMB Yuan

                                                                                                                               Whether
        Items           Beginning      Increase           Decrease                Ending                Reasons                Bad-debt
                                                                                                                               provison

Dividends
                                                                                                  Dividend distribution
receivable                          858,326,010.57         3,430,000.00       854,896,010.57                                     No
                                                                                                  has not been received
within one year

Dividends
receivable aged
more than one
year

Total                               858,326,010.57         3,430,000.00       854,896,010.57               --                     --



(1)The aging analysis is as follow:

                receivable age                                Ending                                            Beginning

Within 1 year                                                             1,553,896,813.79                             1,853,275,788.49

1 to 2 years                                                                     667,993.80                                   4,330,562.67

2 to 3 years                                                               125,217,030.43                                   125,479,863.46

Over 3 years                                                                19,819,561.73                                    14,684,849.00

Total                                                                     1,699,601,399.75                             1,997,771,063.62



Bad debt provision                                                           -7,165,072.30                                   -7,154,284.79

                                                                          1,692,436,327.45                             1,990,616,778.83


(2)Other receivables are classified by nature as follows:

                      Items                                    Ending                                           Beginning

Subsidy                                                                    177,490,755.00                                   404,133,442.00

Internal transactions                                                      860,000,000.00                              1,200,000,000.00

Petty cash                                                                                                                   15,906,758.91



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                                                    Chongqing Changan Automobile Company Limited 2021 Semi-annual Report


Asset disposal funds                                                                                                          3,984,842.15

New energy points                                                              333,838,264.00

Other                                                                          321,107,308.45                               366,591,735.77

Total                                                                        1,692,436,327.45                              1,990,616,778.83



(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 2021):


                                    The first stage        The second stage             The third stage
                                   Expected credit     Expected credit loss for the Expected credit loss for               Total
                                 losses in the next 12         entire life               the entire life
                                        months            (Single evaluation)         (Group evaluation)

Balance at the end of the
                                          269,269.46                         42,082.56            6,842,932.77                7,154,284.79
previous year

Balance on January 1, 2021

--Transfer to the second
stage
--Transfer to the third stage

--Turn back to the second
stage
--Turn back to the first stage

Current provision                           17,634.62                                                                              17,634.62

Current return                              -6,847.11                                                                              -6,847.11



Ending balance                            280,056.97                         42,082.56            6,842,932.77                7,165,072.30



(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 2020):

                                               The first stage         The second stage           The third stage
                                              Expected credit         Expected credit loss      Expected credit loss
                                                                                                                               Total
                                             losses in the next        for the entire life       for the entire life
                                                12 months             (Single evaluation)       (Group evaluation)

 Balance on January 1, 2020                          291,182.01             111,643,227.46               2,850,000.87       114,784,410.34

 Changes in accounting policies                                   -         -111,066,213.00                            -   -111,066,213.00

 Balance on January 1, 2020 after                    291,182.01                 577,014.46               2,850,000.87         3,718,197.34
 adjustment

 Balance on January 1, 2020

 --Transfer to the second stage                                   -                       -                            -                  -

 --Transfer to the third stage                                    -            -534,931.90                 534,931.90                     -

 --Turn back to the second stage                                  -                       -                            -                  -


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 --Turn back to the first stage                            -                      -                           -                       -

 Current provision                                         -                      -                3,458,000.00         3,458,000.00

 Current return                                  -21,912.55                       -                           -           -21,912.55

 Termination confirmation                                  -                      -                           -                       -

 Write off this year                                       -                      -                           -                       -

 Others                                                    -                      -                           -                       -



 Ending balance                                  269,269.46               42,082.56                6,842,932.77         7,154,284.79


(5) As of June 30, 2021, the top five other receivables are as follows:
                                                                                                                       In RMB Yuan

                                                                                                             Proportion to the total
          company name                            Amount                              Aging                       balance of other
                                                                                                                  receivables (%)

First place                                             860,000,000.00                  Within 1 year                           50.60

Second place                                            195,200,000.00                      Within 1 year                       11.49

Third place                                             124,312,677.99                      Within 3 years                          7.31

Fourth place                                            113,875,000.00                      Within 1 year                           6.70

Fifth place                                              64,274,400.00                      Within 1 year                           3.78

Total                                                 1,357,662,077.99                  -                                       79.88



(6) As of June 30, 2021, the Group had no other receivables derecognized as financial asset transfers (December 31, 2020:
None).




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3. Long-term equity investment

                                                                                                                                                                                   In RMB Yuan

                                                                                                                                                impairment
                                                                                Investment gains        Other
                                                                                                                   cash bonus in     Other      provision
               Invested in              beginning amount    increase/decrease   and losses under       equity                                                 Ending balance       Impairment
                                                                                                                   current period   reduction   in current
                                                                                the equity method      changes
                                                                                                                                                  period

1、Joint ventures

Changan Ford Automobile Co., Ltd         1,791,533,495.17                       362,952,450.03                                                               2,154,485,945.20

Changan Mazda Automobile Co.,Ltd.        1,995,998,622.28                       280,357,717.64                    719,500,000.00                             1,556,856,339.92

Changan Ford Mazda Engine Co., Ltd.       832,869,256.44                         15,721,810.83                                                                848,591,067.27
Jiangling Investment Co., Ltd.           1,545,807,633.84                        78,245,997.25                                                               1,624,053,631.09
2、Associated Enterprises

Chongqing Changan Kuayue Automobile
                                          237,736,134.21                           4,994,618.02                     3,430,000.00                              239,300,752.23
Co., Ltd

Chongqing Changan Kuayue Automobile
                                                                                                   -                                                                           -
Marketing Co., Ltd.

Beijing Fang’an Xinyue taxi Co., Ltd                                                              -                                                                           -

Chongqing Auto Finance Co., Ltd.         2,337,849,374.75                       129,697,153.59                     65,191,812.92                             2,402,354,715.42

Hainan Anxinxing Information
                                             2,316,052.92                         -1,009,343.24                                                                  1,306,709.68
Technology Co., Ltd.

Nanjing Chelai Travel Technology Co.,
                                             1,192,605.27                           -134,310.36                                                                  1,058,294.91
Ltd.

Hunan Guoxin Semiconductor
                                            25,373,809.47                           -514,689.73                                                                 24,859,119.74
Technology Co., Ltd.

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Nanjing Leading Equity Investment
                                             999,636,607.63         -33,139.50                                          999,603,468.13
Partnership

Nanjing Lingxing Equity Investment
                                                1,262,180.39        -64,190.89                                            1,197,989.50
Management Co., Ltd.

Jiangling Holding Co., Ltd.                  201,736,644.25     -48,302,837.53                                          153,433,806.72
Chongqing Changan New Energy
                                            1,042,156,607.05   -471,341,755.14                                          570,814,851.91
Automobile Technology Co., Ltd.

Zhongqi Chuangzhi Technology Co., Ltd        100,000,000.00       -753,627.84                                            99,246,372.16
3、Subsidiaries

Nanjing Chang'an Automobile Co.,
                                             422,533,259.00                                                             422,533,259.00
Ltd

Chongqing      Chang'an       Automobile
                                              13,068,581.00                                                              13,068,581.00
International Sales Service Co., Ltd

Chongqing      Chang'an       Automobile
                                              29,700,000.00                                                              29,700,000.00
Customer Service Co., Ltd

Chongqing          Chang'an       chelian
                                              88,500,000.00                                                              88,500,000.00
Technology Co., Ltd

Chongqing         Chang'an        Special
                                                2,500,000.00                                                              2,500,000.00
Purpose Vehicle Co., Ltd

Chongqing         Chang'an     European
                                             155,469,913.50                                                             155,469,913.50
Design Center Co., Ltd

Chongqing Chang'an New Energy
                                                           -                                                                         -   -49,194,195.00
Vehicle Co., Ltd

Changan Automobile UK R & D
                                             250,093,850.95                                                             250,093,850.95
Center Co., Ltd

Beijing       Chang'an        Automobile        1,000,000.00                                                              1,000,000.00

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Engineering Technology Research
Co., Ltd

Chang'an Japan Design Center Co.,
                                              1,396,370.15                                                   1,396,370.15
Ltd

Chang'an American R & D Center
                                             10,243,460.00                                                  10,243,460.00
Co., Ltd

Hefei Changan Automobile Co., Ltd          1,535,367,765.23                                               1,535,367,765.23

Changan Automobile Russia Co., Ltd          251,242,589.15                                                 251,242,589.15

Changan Brazil Holding Co., Ltd               2,584,556.97                                                   2,584,556.97

Chang'an    Automobile      Investment
                                            235,248,871.00                                                 235,248,871.00
(Shenzhen) Co., Ltd

Nanjing     Chang'an     new      energy
                                             50,000,000.00                                                  50,000,000.00
vehicle sales Service Co., Ltd

Fuzhou     Fuqing      Chang'an    New
                                              2,000,000.00                                                   2,000,000.00
Energy Vehicle Sales Co., Ltd

Xiamen     Chang'an      new      energy
                                              2,000,000.00                                                   2,000,000.00
vehicle sales Service Co., Ltd

Guangzhou Chang'an new energy
                                              4,000,000.00                                                   4,000,000.00
vehicle sales Service Co., Ltd

Chongqing lingyao Automobile Co.,
                                            594,949,059.30                                                 594,949,059.30
Ltd

Chongqing     chehemei     Technology
                                             10,000,000.00                                                  10,000,000.00
Co., Ltd

Chongqing      Chang'an        Kaicheng
                                            976,475,558.18                                                 976,475,558.18
Automobile Technology Co., Ltd


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Chongqing       Chang'an   Automobile
                                           99,000,000.00                                                                                         99,000,000.00
Software Technology Co., Ltd

Avatar Technology (Chongqing) Co.,
                                           58,461,669.77    95,380,000.00                                                                       153,841,669.77
Ltd. (Note 1)

                  Total                 15,911,304,527.87   95,380,000.00    349,815,853.13             788,121,812.92                        15,568,378,568.08   -49,194,195.00

Note 1: the former Chang'an Weilai New Energy Vehicle Technology Co., Ltd. was renamed avatar Technology (Chongqing) Co., Ltd. in May 2021.




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4. Operating revenue and cost

                                                                                                                       In RMB Yuan
                                              Report period                                        Same period of last year
                                    Revenue                      Cost                      Revenue                       Cost
Main business                      49,511,486,065.29          43,920,794,847.39          28,058,352,585.87          26,554,901,003.12
Other business                      3,316,919,115.43           1,592,749,547.20           1,700,567,311.50            1,310,072,821.56
Total                              52,828,405,180.72          45,513,544,394.59          29,758,919,897.37          27,864,973,824.68


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
                                                                                   349,815,853.13                      -430,245,711.08
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                                                                              78,303,450.81                        11,056,250.03
Total                                                                              428,119,303.94                     2,317,139,772.66


(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., Ltd.                                                                603,900,000.00
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 Motor Co., Ltd                                                   362,952,450.03                        -570,006,507.40
 Chang'an Mazda Engine Co., Ltd                                                   15,721,810.83                        11,597,486.28
 Hainan anxinxing Information Technology Co., Ltd                                  -1,009,343.24                         -795,039.88
 Nanjing chelai Travel Technology Co., Ltd                                          -134,310.36                          -143,024.65
 Jiangling Holdings Limited                                                       -48,302,837.53                      -94,049,105.60
 Chang'an Mazda Automobile Co., Ltd                                            280,357,717.64                         323,202,621.60
 Chongqing Chang'an Kuayue Vehicle Co., Ltd                                        4,994,618.02                        27,957,230.96
 Changan Peugeot Citroen Automobile Co., Ltd                                                                         -114,234,986.00
 Chang'an Auto Finance Co., Ltd                                                129,697,153.59                         123,493,951.66
 Avita Technology (Chongqing) Co., Ltd                                                                                -18,666,611.81
 Hunan Guoxin Semiconductor Technology Co., Ltd                                     -514,689.73                          -126,648.85
 Nanchang Jiangling Investment Co., Ltd                                           78,245,997.25                        34,848,792.52

 Chongqing Chang'an New Energy Vehicle Technology Co.,                        -471,341,755.14                        -153,230,307.40

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 Ltd
 Nanjing linghang equity investment partnership (limited                              -33,139.50                               32.16
 partnership)
 Nanjing LingHang Equity Investment Management Co.,                                   -64,190.89                           -93,594.67
 Ltd
 Zhongqi Chuangzhi Technology Co., Ltd                                               -753,627.84
                             Total                                                349,815,853.13                      -430,245,711.08


XVIII. Additional information

1. Non-recurring profit and loss statement of current period

                                                                                                                        In RMB Yuan
                                            Items                                                              Amount
Profit and loss of non-current assets disposition                                                                       601,066,861.33
Government subsidies counted in current profit and loss (except the government subsidies
which are closely related with business events, and given certain amount according to                                   517,107,352.50
national standards)
Gains and losses from entrusted loans                                                                                     6,959,316.06
Profit and loss from changes in fair value (excluding hedge accounting)                                                  15,734,698.73
Other non-business incomings and outgoings except above-mentioned items                                                  26,880,243.65
Interest on deferred payment of funds received from non - financial enterprises                                          17,542,698.15
Less: amount influenced by income tax                                                                                   -88,222,076.78

Amount influenced by minority shareholders’ interest (after tax)                                                      -107,580,857.12

Total                                                                                                                   989,488,236.52


 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.


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
                                                                                      3.22%                    0.32     Not applicable
stockholders
Net profit belonging to the Company’s common
                                                                                      1.38%                    0.14     Not applicable
stockholders after deducting non-recurring profit and loss


The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for information
disclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings per
share (revised in 2010) of the CSRC.


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 2021 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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