Chongqing Changan Automobile Company Limited
2021 Semi-annual Report Financial Statements
August 2021
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
2
TOTAL ASSETS 130,457,601,160.37 118,265,186,394.85
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
3
Accounts receivable 5,198,476,575.07 5,464,541,185.63
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
4
Other comprehensive income 159,954,052.00 159,954,052.00
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
5
Net profit from discontinued operations
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
6
Gains from changes in fair value -17,151,300.00 -21,300,000.00
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
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2.Cashflows from investing activities:
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
8
Account Current Period Prior Period
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
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4.Effect of changes in exchange rate on cash
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
10
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
11
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
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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
13
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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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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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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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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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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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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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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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
21
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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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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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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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
25
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
26
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)
33
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
34
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;
35
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
36
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
37
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.
38
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
39
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
40
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:
41
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
42
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
43
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
44
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
45
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%.
46
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
47
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
48
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 (%)
49
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%).
50
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
51
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 -
52
- 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
53
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
54
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
55
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.
56
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.
57
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
58
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
59
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 - - - -
60
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
61
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.
62
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
63
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
64
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
65
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
66
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
67
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
68
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
69
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
70
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)
71
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
72
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
73
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
74
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
75
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
76
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.
77
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
78
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
79
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
80
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.
81
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.
82
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.
83
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
84
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)
85
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.
86
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
87
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
88
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
89
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
90
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
91
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
92
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
93
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 -
94
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
95
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
96
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
97
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
98
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
99
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 - - -
100
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
101
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
102
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
103
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 -
104
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
105
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
106
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.
107
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,
108
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
109
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:
110
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
111
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 - - - -
112
--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).
113
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.
114
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
115
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
116
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.
117
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
118
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
119
(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
120
