Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
FAW JIEFANG GROUP CO., LTD.
Annual Report 2023
March 2024
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Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Section I Important Notes, Contents and Definitions
The Board of Directors and Board of Supervisors, as well as directors, supervisors and
senior executives of the Company guarantee that the contents of the annual report are true,
accurate and complete, there is no false record, misleading statement or major omission, and
shall bear individual and joint legal responsibilities.
Wu Bilei, the person in charge of the Company, Ji Yizhi, the person in charge of
accounting, and Si Yuzhuo, the person in charge of the accounting organization (chief
accountant) declare that they guarantee the authenticity, accuracy and completeness of the
financial report in this annual report.
Except for the following directors, other directors attended the board meeting to review
the annual report in person
Names of Directors Positions of Directors not Reasons for not Name of the
not Present in Person Present in Person Present in Person Trustee
Wu Bilei Chairman of the Board Work Li Sheng
Bi Wenquan Director Work Liu Yanchang
This annual report includes prospective statements, such as future plans, and does not
constitute a substantial commitment of the Company to investors. Investors and relevant
persons should maintain sufficient risk awareness of this and understand the differences
between plans, forecasts, and commitments.
The Company has described in detail the possible risks and countermeasures for its
future development in the section of Management Discussion and Analysis. Investors are
kindly requested to pay attention to relevant contents. China Securities Journal, Securities
Times and CNINFO (http://www.cninfo.com.cn) are the information disclosure media selected
by the Company. All information of the Company is subject to that published in the above
selected media. Investors are kindly requested to pay attention to investment risks.
The profit distribution plan approved by the Board of Directors of the Company is as
follows: Based on the 4,636,485,668 shares of the Company, a cash dividend of CNY 1.5 (tax
inclusive) will be distributed to all shareholders for every 10 shares they hold. Additionally, no
bonus shares (tax inclusive) will be distributed. The Company does not convert reserves into
share capital.
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Table of Contents
Section I Important Notes, Contents and Definitions ....................... 2
Section II Company Profile and Main Financial Indicators .............. 6
Section III Management Discussion and Analysis .............................. 16
Section IV Corporate Governance ....................................................... 60
Section V Environmental and Social Responsibilities .................... 109
Section VI Important Matters ........................................................... 124
Section VII Changes in Shares and Shareholders ............................. 151
Section VIII Preferred Shares .............................................................. 168
Section IX Bonds ................................................................................. 169
Section X Financial Report .............................................................. 170
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List of Documents for Future Reference
1. Financial statements signed and sealed by the person in charge of the Company,
the person in charge of accounting and the person in charge of the accounting
organization (chief accountant).
2. The original Auditor’s Report sealed by Pan-China Certified Public Accountants
LLP and sealed and signed by Pan-China's CPAs
3. Originals of all company documents and announcements publicly disclosed on
the website designated by China Securities Regulatory Commission in the reporting
period.
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Interpretation
Item Refers to Definition
Company, the Company, FAW Jiefang Refers to FAW JIEFANG GROUP CO., LTD
Jiefang Limited Refers to FAW Jiefang Automotive Co., Ltd.
FAW, FAW Group Refers to CHINA FAW GROUP CO., LTD.
FAW Refers to China FAW Co., Ltd.
FAW Car Refers to FAW Car Co., Ltd.
FAW Bestune Refers to FAW Bestune Car Co., Ltd.
Finance company Refers to First Automobile Finance Co., Ltd.
Board of Directors Refers to Board of Directors of FAW JIEFANG GROUP CO.,
LTD.
Shareholders’ meeting Refers to Shareholders’ Meeting of FAW JIEFANG GROUP
CO., LTD.
Board of Supervisors Refers to Board of Supervisors of FAW JIEFANG GROUP CO.,
LTD.
SASAC Refers to State-owned Assets Supervision and Administration
Commission of the State Council
Ministry of Finance Refers to Ministry of Finance of the People's Republic of China
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
China Securities Depository and Refers to Shenzhen Branch, China Securities Depository and
Clearing Corporation Limited (CSDC) Clearing Corporation Limited
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People's Republic of China
Articles of Association Refers to Articles of Association of FAW JIEFANG GROUP
CO., LTD.
Reporting Period Refers to January 1, 2023-December 31, 2023
CNY, CNY 10,000, CNY 100 million Refers to CNY, CNY 10,000, CNY 100 million
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Section II Company Profile and Main Financial Indicators
I. Company Information
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on which shares are
Shenzhen Stock Exchange
listed
Chinese name of the Company FAW JIEFANG GROUP CO., LTD
Chinese abbreviation of the Company FAW Jiefang
English name of the Company FAW JIEFANG GROUP CO., LTD
English abbreviation of the Company FAW Jiefang
Legal representative of the Company Wu Bilei
No. 2259, Dongfeng Street, Changchun Automobile
Registered address
Development Zone, Jilin Province
Zip code of registered address 130011
In 2020, the Company carried out major asset restructuring,
and the registered address was changed from No. 4888
History of changes in registered Weishan Road, High-tech Industrial Development Zone,
address of the Company Changchun City, Jilin Province to No. 2259 Dongfeng
Street, Automobile Development Zone, Changchun City,
Jilin Province.
No. 2259, Dongfeng Street, Changchun Automobile
Office address
Development Zone, Jilin Province
Postal code of office address of the
130011
Company
Company Website www.fawjiefang.com.cn
E-mail faw0800@fawjiefang.com.cn
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II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
No. 2259, Dongfeng Street, Changchun No. 2259, Dongfeng Street, Changchun
Address Automobile Development Zone, Jilin Automobile Development Zone, Jilin
Province Province
Tel. 0431-80918881 0431-80918882 0431-80918881 0431-80918882
Fax 0431-80918883 0431-80918883
E-mail faw0800@fawjiefang.com.cn faw0800@fawjiefang.com.cn
III. Information Disclosure and Keeping Location
Website of the stock exchange disclosing
http://www.szse.cn
annual report of the Company
Name and website of the media disclosing Securities Times, China Securities Journal and
annual report of the Company CNINFO (http://www.cninfo.com.cn)
Keeping location of the Annual Report of the
FAW Capital Operation Department
Company
IV. Changes in Registration
Unified Social Credit Code 91220101244976413E
In 2020, the Company completed major asset restructuring, and
Changes in main business changed its main business from research, development, production,
since the company went public and sales of passenger cars to research, development, production,
and sales of commercial vehicles.
1. In June 2011, FAW, the original controlling shareholder of the
Company, carried out major business restructuring, and founded
Changes in controlling China FAW Co., Ltd. as the main sponsor in order to improve the
shareholders in the past corporate governance structure and establish a modern enterprise
system. FAW transferred all its shares from the Company into
FAW, and the two parties completed the equity registration and
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transfer procedures in April 2012. After the equity transfer, the total
share capital of the Company did not change and remained at
1,627,500,000 shares. FAW Car Co., Ltd. holds 862,983,689 shares
of the Company, accounting for 53.03% of the total shares, and is
the controlling shareholder of the Company. The actual controller
does not change and is still the SASAC.
2. In March 2020, the China Securities Regulatory Commission
approved major asset restructuring project of the Company. The
Company issued 2,982,166,212 shares directly to FAW to pay the
price difference for the major asset restructuring. After the
issuance, the total share capital of the Company increased to
4,609,666,212 shares. FAW Car Co., Ltd. holds 3,845,149,901
shares of the Company, accounting for 83.41% of the total shares,
and is the controlling shareholder of the Company. The Company's
actual controller is still SASAC.
V. Other Relevant Data
Accounting firm hired by the Company
Grant Thornton Certified Public Accountants (Special
Name of Accounting Firm
General Partnership)
Scitech Place, No. 22 Jianguomenwai Avenue, Chaoyang
Office address of the accounting firm
District, Beijing, China
Name of the accountants Wu Songlin, Yang Dongmin
Sponsor institution employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable Not applicable
Financial consultant employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable Not applicable
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VI. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
Yes □No
Reasons for the retroactive adjustment or restatement: Changes in accounting policies
Increase or decrease
2022 compared to that of 2021
2023 last year
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Operating income
63,904,532,477.03 38,331,747,083.88 38,331,747,083.88 66.71% 98,751,242,669.55 98,751,242,669.55
(CNY)
Net profit attributable
to shareholders of the 763,024,957.14 367,745,445.34 367,444,113.56 107.66% 3,899,854,760.39 3,900,127,760.42
listed company (CNY)
Net profit attributable
to shareholders of the
listed company after
-83,315,836.30 -1,714,242,885.11 -1,714,544,216.89 95.14% 3,581,266,777.71 3,581,539,777.74
deducting non-
recurring profits and
losses (CNY)
Net cash flows from
operating activities 4,201,717,721.52 -5,135,243,969.35 -5,135,243,969.35 181.82% 15,203,123,279.16 15,203,123,279.16
(CNY)
Basic earnings per
0.1651 0.0735 0.0734 124.93% 0.8412 0.8413
Share (CNY/share)
Diluted earnings per 0.1651 0.0735 0.0734 124.93% 0.8412 0.8413
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Share (CNY/share)
Weighted average
3.16% 1.50% 1.50% Increased by 1.66% 15.37% 15.37%
return on equity
Increase or decrease
End of 2022 compared with that at End of 2021
End of 2023 the end of last year
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Total assets (CNY) 65,873,387,927.31 56,772,860,616.12 56,792,504,497.01 15.99% 69,765,943,932.81 69,792,186,974.11
Net assets attributable
to shareholders of the 24,486,759,369.40 23,719,427,082.48 23,719,398,750.73 3.24% 26,242,240,723.26 26,242,513,723.29
listed company (CNY)
Causes of changes in accounting policies: In November 2022, the Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for
Business Enterprises (CK [2022] No. 31, hereinafter referred to as "Interpretation No.16"). Interpretation No.16 stipulates that for a single transaction
that is not a business combination and does not affect accounting profits or taxable income (or deductible losses) at the time of the transaction and that
the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences, such
taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities shall be recognized at the
time the transaction occurred as the corresponding deferred income tax liabilities and deferred income tax assets in accordance with relevant provisions
such as the Accounting Standards for Business Enterprises No. 18 -Income Tax. The Company shall apply these provisions to transactions that occurred
from the beginning of the earliest period of the financial statements for which the provisions are first applied until the Implementation Date of the
Interpretation. The cumulative impact of these adjustments shall be used to adjust the opening retained earnings and other related financial statement
items for the earliest period in the presentation of financial statements. The above provisions on the accounting treatment have come into effect since
January 1, 2023.
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The Company shall also adjust the taxable temporary difference and deductible temporary difference for lease liabilities and right-of-use assets
recognized for the lease business in accordance with the provisions of Interpretation No. 16. Please see 34(1) in V "Significant Accounting Policies and
Accounting Estimates" of Section X - Financial Report.
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The lower net profit of the Company before or after the deduction of non-recurring profits and losses
in the last three fiscal years is negative, and the audit report of the most recent year shows that the
going-concern ability of the Company is uncertain
□Yes No
The lower net profit before or after the deduction of non-recurring gains and losses is negative.
Yes □No
Item 2023 2022 Remarks
Sales revenue of complete vehicles,
Operating income parts and components, materials,
63,904,532,477.03 38,331,747,083.88
(CNY) and purchased semi-finished
products, etc.
Rental income for the current
Deducted amount of
period, rental income and entrusted
operating income 11,310,091.46 30,729,859.27
operating income for the previous
(CNY)
period
Amount after the
deduction of Deduct the rental income and
63,893,222,385.57 38,301,017,224.61
operating income entrusted operating income
(CNY)
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneously
according to the international accounting standards and China accounting standards
□Applicable Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to the international accounting standards and China accounting
standards.
2. Differences in net profits and net assets in the financial report disclosed simultaneously
according to foreign accounting standards and China accounting standards
□Applicable Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
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financial report disclosed according to foreign accounting standards and China accounting standards.
VIII. Seasonal Main Financial Indicators
Unit: CNY
Q1 Q2 Q3 Q4
Operating income 14,037,665,296.82 18,976,996,617.31 15,108,308,697.92 15,781,561,864.98
Net profit
attributable to
61,785,210.95 339,551,091.40 11,070,373.79 350,618,281.00
shareholders of the
listed company
Net profit
attributable to
shareholders of the
listed company -82,251,361.79 234,217,693.58 -66,799,444.13 -168,482,723.96
after deducting
non-recurring
profits and losses
Net cash flows
from operating 1,894,841,446.13 4,819,317,931.34 6,915,155,554.42 -9,427,597,210.37
activities
Is there any significant difference between the above financial indicators or the sum and the financial
indicators in the quarterly and semi-annual financial reports disclosed by the Company?
□Yes No
IX. Items and Amounts of Non-recurring Profit and Loss
Applicable □Not applicable
Unit: CNY
Amount in Amount in
Item Amount in 2022 Description
2023 2021
Profits or losses on
disposal of non-current It refers to the
assets (including the net gain on
192,669,498.68 871,031,108.06 458,484.79
write-off part of the disposal of non-
provision for impairment current assets.
of assets made)
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Government subsidies
included in the current
profit or loss (except
those closely related to
the Company’s normal
operations, conforming to
the State policies and 546,340,041.28 1,635,846,930.83 336,044,406.64
regulations and enjoyed in
line with the specified
standards, and having a
continuous impact on the
profit or loss of the
Company)
It mainly refers
to the reversal of
Reversal of impairment impairment
provision for receivables provision for
9,205,923.40 15,110,580.89 11,809,885.69
subject to separate receivables
impairment test subject to
separate
impairment test.
Mainly the
Profits or losses from debt profits or losses
684,628.03
restructuring from debt
restructuring
Trustee fee earned from
864,779.87 471,698.11 The trustee fee
entrusted management
They mainly
Non-operating income refer to the net
and expenses other than 173,374,447.46 127,429,456.42 28,144,798.08 non-operating
the above income and
expenses
Other losses and profits
Other non-
conforming to the
100,996,378.33 117,055,384.99 recurring profits
definition of non-
and losses
recurring profit and loss
Less: amount affected by
176,245,495.71 568,294,525.62 176,081,303.65
income tax
Total 846,340,793.44 2,081,988,330.45 318,587,982.68 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and
loss:
□Applicable Not applicable
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There is no specific conditions of profit and loss items meeting definition of non-recurring profit and
loss for the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items
□Applicable Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items.
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Section III Management Discussion and Analysis
I. Industry of the Company in the Reporting Period
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the “No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
In 2023, the macro-economy entered a phase of recovery, showing an upward trend, with an
annual GDP growth rate of 5.2%. However, the transformation of economic drivers was exerting a
weakened influence on the overall growth of the commercial vehicle industry, primarily due to
reduced investment support and a negative export growth rate. The demand for commercial vehicles
exhibits significant cyclical fluctuations and is closely correlated with the macro-economy. Based on
the characteristics of the past industry demand and the product life cycle, these cyclical fluctuations
are expected to last for about 7-8 years. Consequently, the industry was recovering from the bottom
of the cycle in 2023. Compared with 2022, the freight market has improved in 2023. Road cargo
transportation volume rebounded slightly, up by 7.2% year on year. However, the profitability of
vehicle owners remained low due to the ongoing weakness in road transportation freight rates.
Additionally, the demand for commercial vehicles was significantly suppressed due to obviously
excessive transportation capacity.
According to statistics from the China Association of Automobile Manufacturers (CAAM), the
production output and sales volume of commercial vehicles in 2023 were 4.037 million vehicles and
4.031 million vehicles, representing year-on-year growth rates of 26.8% and 22.1%, respectively.
Among them, the annual demand for medium and heavy trucks reached 1.018 million vehicles, up by
32.5% year on year. FAW Jiefang achieved a sales volume of 205,000 medium and heavy trucks in
2023, representing a year-on-year increase of 46.1%. The company also increased its industry market
share to 20.1%, reflecting a year-on-year increase of 1.8%. FAW Jiefang's sales volume growth
significantly outperformed the industry average.
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Monthly Sales Volume of Commercial Vehicles
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
.
2021 2022 2023
Source of industry production and sales data in the figure: CAAM
In 2023, a pilot program for the overall electrification of vehicles in public transport was
formally launched. This program clarifies that scenarios such as urban public transport, sanitation,
postal and express services, urban logistics distribution, and airports are the key areas of public
transport electrification, thus creating plenty of electrification substitution opportunities for the
industry. Moreover, the scope of industrial environmental classification has expanded from the iron
and steel industry to include the cement and coking industry. Relevant policies explicitly require the
use of ultra-low emission vehicles, including China VI vehicles, clean energy vehicles, and new-
energy vehicles, for material transportation. In certain scenarios, the use of new energy vehicles is
mandatory. As a result of these national policies driving the use of new energy commercial vehicles
in specific scenarios, the sales volume of new energy commercial vehicles increased from 338,000
vehicles in 2022 to 447,000 vehicles in 2023. FAW Jiefang experienced a significant increase in sales
volume, from 2,700 vehicles to 7,200 vehicles.
In 2023, there was explosive growth of natural gas heavy trucks due to reduced gas prices,
improved gas filling convenience, and a stable gas supply. The industry's demand for natural gas
heavy trucks increased from 37,000 vehicles in 2022 to 152,000 vehicles in 2023. Leveraging its
competitive advantage, FAW Jiefang achieved significant growth in the sales volume of natural gas
heavy trucks, from 12,000 vehicles in 2022 to 51,000 vehicles in 2023, making the largest
contribution to market growth.
II. Main Businesses of the Company in the Reporting Period
The Company shall meet the disclosure requirements for the automobile manufacturing industry
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specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
The Company is a commercial vehicle manufacturer that produces heavy, medium and light
trucks, and buses, as well as core components such as engines, transmissions and axles, and has a
complete manufacturing system covering raw materials, core components, key large assemblies and
complete vehicles. The products of the Company are mainly used in market segments such as
traction, cargo carrying, dumping, special purposes, highway passenger transport, bus passenger
transport, etc., and the Company also provides standardized and customized commercial vehicle
products. The Company is committed to becoming a "China's first and world-class" provider of
green and intelligent transportation solutions, focusing on the main production lines, insisting on
innovation-driven and reform-driven, and creating a leading trend. Main business, products, and
business model of the Company were not changed significantly in the reporting period.
Relying on its five vehicle manufacturing bases, the Company has formed a capacity layout of
"coordinated advancement of the main and auxiliary functions, with flexible complementary
roles."The Company's total annual production capacity amounts to 418,000 vehicles. Among them,
the annual production capacity of each manufacturing base is as follows: Changchun, 153,000
vehicles; Qingdao, 200,000 vehicles; Guanghan, 40,000 vehicles; Liuzhou, 20,000 vehicles and
Foshan, 5,000 vehicles. In recent years, the Company has increased investment in technological
transformation continuously, accelerated the adjustment of production capacity structure, and
implemented continuous resource optimization and intelligent upgrading for high-end and new
energy products. It has formed a number of advanced manufacturing bases with industry-leading
levels, and has obvious technical and capacity advantages in the commercial vehicle industry, laying
a solid foundation to continue to lead the market.
Manufacturing, production and operation of complete vehicle in the reporting period
Applicable □Not applicable
Production and sales of complete vehicles
Production Sales Qty
This Same Year-on-year This Same Year-on-year
reporting Period of Increase and Reporting Period of Increase and
period Last Year Decrease Period Last Year Decrease
By vehicle type
Medium/Heavy 214,256 123,011 74.18% 205,162 140,384 46.14%
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truck
Light-duty truck 35,101 27,560 27.36% 35,199 29,414 19.67%
Bus 1,283 241 432.37% 1,301 251 418.33%
Total 250,640 150,812 66.19% 241,662 170,049 42.11%
Reasons for year-on-year change of more than 30%
Applicable □Not applicable
In the current context of recovering demand in the commercial vehicle market industry, the
Company continues to improve its product capabilities, strengthen its position in advantageous
markets, actively expand overseas exports, and increase the sales volume of various types of vehicles.
Construction of parts and components supporting system
In terms of the construction of the parts and components supporting system, the Company
continues to build the core competitiveness of the Jiefang supply chain. It focuses on understanding
the requirements of market customers and their demand for resources of various product lines, while
also improving the construction of the resource platform. Currently, the Company independently
produces the three core assemblies of its main models, i.e. engine, transmission and axle. It also
focuses on resource-oriented core parts and components in fields such as medium and heavy trucks,
new energy vehicles, light vehicles, intelligent vehicle software and hardware, and intelligent
connected services. The Company actively participates in market-based competition by broadening
its resource access. It improves supplier relationship management and enhances collaborative
cooperation with outstanding suppliers at home and abroad through various forms such as strategic
cooperation and joint venture partnerships. Additionally, the Company ensures vehicle quality and
reputation by controlling the purchase by implementing access evaluation of new suppliers,
strengthening performance assessment and capability reviews of existing suppliers, and effectively
supervising and controlling supplier processes, all while adhering to the principle of quality first.
Production and operation of automobile parts and components in the reporting period
□Applicable Not applicable
Automobile finance business performed by the Company
□Applicable Not applicable
Business related to new energy vehicles performed by the Company
Applicable □Not applicable
Production and operation of complete new energy vehicles and parts & components
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Unit: CNY
Product category Production Capacity Production Sales volume Sales revenue
Commercial vehicles 48,000 vehicles/year 7,897 7,203 2,686,244,407.22
III. Analysis of Core Competitiveness
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
The Company adheres to the corporate vision of "being the most proud commercial vehicle
enterprise and the most trustworthy commercial vehicle brand", the mission of "becoming China's
first and world-class provider of green and intelligent transportation solutions and building a more
prosperous society", and the brand concept of "being trustworthy, intelligent and courageous, and
benefiting the world"; takes products and services as the main task, customers and employees as the
foundation, innovation and reform as the driving force; focuses on industry trends and customer
needs, and improves product competitiveness and service level rapidly.
1. Product research and development: Four major fields: heavy, medium, and light trucks and
passenger vehicles, are covered. Heavy trucks include eight products: J7, J6P, J6V, J6E, Yingtu, JH6,
JH5 and Han V2.0. Medium trucks include four products: J6G, J6L, JK6 and Long V. Light trucks
include four products: LINKTOUR, Hu 6G, J6F and Hu V. Passenger vehicles include road vehicles,
new energy buses, recreational vehicles, etc. New energy products cover all mainstream scenarios of
the market segment. The Company has built a strong and complete independent R&D system in
China from foresight technology, engine, transmission and axle to complete vehicle, and formed an
efficient and collaborative R&D team of more than 3,000 people. With its five core capabilities, the
Company has created five technical platforms encompassing low carbonization, informatization,
intelligence, electrification and high quality, become one of the commercial vehicle enterprises
mastering the core technologies of world-class complete vehicles and three power assemblies, and
passed ISO9001, IATF16949 and GB9001B quality system certifications. It is also a national-level
independent automobile product R&D and test certification base. In recent years, by accurately
grasping the demands of the market segment, the Company has successfully built differentiated
product technology advantages such as traditional vehicle's system fuel saving, light weight,
independent post processing and maintenance free, the leading product technology advantages such
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as digital intelligent independent assembly of new energy vehicles, vehicle thermal management and
vehicle energy management, and the pioneering product technology advantages such as smart
driving of intelligent connected vehicles, IoV big data and intelligent cockpit. Therefore, FAW
Jiefang always maintains an industry-leading position in the fierce market competition.
2. Marketing and procurement: Adhering to the customer value orientation, the Company has
taken the lead in establishing a marketing service system with complete functions. The marketing
service network of three sales companies (including Changchun Medium and Heavy-duty Vehicle,
Qingdao Medium and Heavy-duty Vehicle and Light Trucks) composed of nearly 1,000 dealers,
more than 1,800 service providers, more than 80 spare parts centers and more than 190 spare parts
dealers covers more than 230 prefecture-level cities in China, with a coverage rate of 96.9% in cities
with a capacity of more than 1,000 vehicles. With a national average service radius of 48 kilometers,
it is at the leading level in the industry and provides users with 24-hour efficient and high-quality
services. The Company is committed to integrating global high-quality resources to provide a strong
guarantee for the high reliability of Jiefang trucks. In recent years, the Company has become
strategic partners with top enterprises at home and abroad successively, including Huawei, Knorr-
Bremse, ZF, Shell, BOSCH, CATL, VOSS, China Unicom, and CATARC.
3. Production and manufacturing: The Company has the most complete manufacturing
system in China from raw materials to core components, from key assemblies to complete vehicles,
and its processing and manufacturing depth ranks the top in the industry. The Company has five
complete vehicle bases in Changchun, Qingdao, Guanghan, Liuzhou and Foshan, with an existing
planned production capacity of 418,000 vehicles. The Company also has three assembly bases in
Changchun, Wuxi and Dalian. With its three product series, namely All-Win, Power-Win, and King-
Win, the Wuxi Diesel Engine Factory has reached the world-class manufacturing level. Based on the
business such as commercial intelligent vehicles, post-market services, connected services, new
energy business model operations and fuel cell power systems, the Company has built six new
business bases in Suzhou, Nanjing, Tianjin, Shijiazhuang, Foshan and Wuxi.
4. Overseas export: The Company actively responds to the "Belt and Road" initiative,
accelerates its presence in overseas markets, and creates new avenues of growth for its business. The
Company accelerates the development of its commercial vehicle overseas business comprehensively,
broadens the channels gradually and expands its brand's overseas influence continuously. Jiefang's
products are exported to over 80 countries and regions such as Southeast Asia, the Middle East, Latin
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America, Africa and Eastern Europe, and the Company has more than 100 core dealers and nearly
190 distributors in nearly 40 countries and regions around the world. Export products include models
such as J7, J6, JH6, and Hu V. Additionally, the Company leverages its system advantages based on
reality, and through system collaboration, strives to build an overseas marketing platform of "talent+
service+ automotive+ finance".
5. New energy: Its product portfolio covers five major lines: tractors, dump trucks, cargo trucks,
SPVs and passenger cars. These product lines encompass three major technological routes: EVs,
FCVs and hybrid vehicles, achieving full coverage of key segment markets for new energy
commercial vehicles, such as steel mills, coal and slag. The goal of product development is to meet
market demand and alleviate user pain points. It focuses on achieving the "three-low and one-high"
core competitiveness, which refers to low cost, low self-weight, low energy consumption and high
reliability. Additionally, the Company strives to differentiate its products through the attributes of
long endurance, low-temperature resistance, high intelligence, and high comfort. To achieve these
goals, the Company undertakes continual iteration and upgrading of its products and technologies. In
terms of core technology, the Company has achieved integration across three critical areas: vehicle
architecture, vehicle control software, and assembly interface. This integration significantly
improves development efficiency. The Company harnesses technologies such as efficient energy
recovery and scenario-based calibration to significantly reduce energy consumption. Moreover, the
application of assembly technology incorporates a dual-wheel drive system that combines
independent core assemblies with external high-quality social resources, enabling complementary
advantages. By continuously exploring and applying new products, technologies and processes, the
Company aims to maintain a leading position in both new energy technology and new energy
products in the market.
IV. Analysis of Main Business
1. Overview
In 2023, although the demand for commercial vehicles bottomed out and rebounded, this period
represented the low point for this cycle compared to previous highs. Faced with sustained sluggish
demand, hardships in industry transformation and difficulties in market transition, all Jiefang staff
demonstrated their resilience by fearlessly confronting challenges and pushing forward under high
pressure. They implemented various deployment requirements resolutely, focused on annual strategic
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goals closely and advanced various tasks solidly and effectively, achieving satisfactory business
results. As of December 31, 2023, the total assets of the Company reached CNY 65.873 billion, a
year-on-year increase of 15.99%. The net assets attributable to shareholders of the listed company
amounted to CNY 24.487 billion, representing a year-on-year increase of 3.24%. During the period
from January to December 2023, the Company generated a revenue of CNY 63.905 billion,
representing a year-on-year increase of 66.71%; and achieved a net profit attributable to the parent
company of CNY 763 million, reflecting a year-on-year increase of 107.66%. The Company
achieved sales of 241,700 vehicles, a year-on-year growth of 42.11%. Among these, 205,200
medium and heavy trucks were sold, reflecting a year-on-year increase of 46.14%. The Company
sold 7,200 new energy vehicles, indicating a year-on-year increase of 164.5%. Moreover, overseas
exports reached 45,000 vehicles, showing a year-on-year increase of 60.7%.
Unit: CNY 100 million
Total Assets Net Assets Operating Income Net Profits
2022 2023 2022 2023 2022 2023 2022 2023
In 2023, the Company successfully won the titles of "Creating a world-class professional
leading demonstration enterprise" and "Science and Technology Transformation Enterprise" by the
SASAC and was nominated for the China Quality Award for the first time. It also maintained an A
rating for information disclosure on the SZSE for three consecutive years. The Jiefang brand value
has continued to lead the commercial vehicle industry for 12 consecutive years, while tractor sales
maintained their top position in the industry for 18 consecutive years.
In 2023, the Company's priorities are as follows:
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(1) Sales increase: Based in China, the Company has accelerated overseas expansion and
maintained its leading position in the market. The Company strengthened its strengths and
tackled areas of weaknesses, accelerated breakthroughs in major strategic areas such as new
energy and overseas markets, and achieved balanced development in various segmented
markets, resulting in a significant increase in overall sales.
Domestic market: The Company further implemented the concept of high-quality marketing,
and in the face of severe market conditions, closely focused on terminal operations. It strategically
positioned medium and heavy trucks to compete in markets such as NG tractors, high horsepower
tractors, and large single-axle cargo trucks, with precise positioning and reasonable promotion. The
Company strengthened customer development and engagement. It maintained a favorable reputation
on the second-tier network and especially seized the opportunity of "oil to gas" explosive growth.
The Company achieved a 33.6% market share in the NG segment and maintained its position as the
top tractor seller in the industry for 18 consecutive years. The sales terminal share of medium and
heavy trucks was 26.3%, an increase of 0.6% year-on-year. The Company nurtured and improved its
light vehicle segment by implementing innovative marketing models and establishing a reputation
for high-end offerings. This resulted in annual sales of 35,000 vehicles, representing a year-on-year
increase of 19.7%. The Company accelerated its strategic transformation towards new energy and
launched a tough battle around five major scenarios: steel mills, power plants, slag mixing and
sanitation, sand and gravel mines, fuel cells, and hybrid power. By focusing on these areas, the
Company achieved sales of 7,200 vehicles, marking a year-on-year increase of 164.5% and setting a
new historical high.
Overseas market: With deepening transformation as the main line, the Company continued to
win four major battles, enhanced core capabilities, and accelerated the development of excellent
overseas iron army teams. By implementing a combination of strategies, the Company achieved
sustained leapfrog growth in overseas sales and fully demonstrated the "Jiefang speed". Throughout
the year, the Company sold 45,000 vehicles overseas, representing a year-on-year increase of 60.7%.
The Company's products gained favor among overseas users, laying a solid foundation for it to
accelerate towards high-end products, an internationalized brand and global expansion.
(2) Product leadership: The Company has concentrated on the main line of product
leadership and vigorously built robust product strength.
National VI products: Nearly 140 new products have been launched, with new product sales
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accounting for over 60%, and product competitiveness has significantly improved. The J100 project
was fully launched to complete the transformation into a solution provider. The Company continued
to carry out planning work for the J7 2026 product package and the development of the J167 product,
aiming to create quasi-all-around products that could compete with international competitive
products and localized products. Seizing the opportunity presented by the rapid increase in demand
for high-end products in the Russian market, the Company planned to develop and introduce high-
end products tailored to the differentiated requirements of users. By successfully entering the high-
end traction segment market in Russia, the Company enhanced the Jiefang brand image in the
country. The Company continued to enhance the competitiveness of light vehicles around "cost
reduction, quality improvement and performance enhancement". It launched new products such as
LinkTour Lightweight and Hu6G. Additionally, the Company defined product package requirements
for mini trucks and devised a robust product strategy to enter the pickup truck market, thereby
accelerating the expansion of its light vehicle product line.
New energy products: The Company underwent a comprehensive transition to new
architectures, which involved upgrading the driver's cab, motor, electronic control, etc., built
differentiated competitiveness in the "three-low and one-high" aspects of its products, and further
reduced costs, weight and electricity consumption. Regarding charging products, the Company
introduced nearly 60 upgraded products tailored to specific scenarios such as steel plant short barges,
municipal works, and factory logistics. Among them, star products such as J6L ultra-lightweight,
low-cost tractors and mixer trucks, and J6P slag dump trucks received widespread praise in the
market. More than 300 FCVs have been promoted in Tangshan, Shanghai, Chengdu and other places,
serving as continuous demonstrations and leading the way. Furthermore, the Company announced
the small-scale trial launch of hybrid products in user scenarios. More than 10 differentiated new car
models were reserved simultaneously, further expanding the product lineup and enhancing the
competitiveness of the Company's offerings.
Intelligent IoV products: The J6V-L2 intelligent vehicle product underwent testing and
operation, with a cumulative operating mileage of 39,000 kilometers. The port ICV-L4 product
completed line control debugging. In the environmental sanitation operation scenario, full coverage
of expressways and main roads was achieved, with a cumulative operating mileage of 160,000
kilometers. In respect of intelligent diagnosis and repair, core functions of remote regeneration and
remote code clearing were developed and launched, serving users a total of 323,000 times. The new
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energy IoV enabled the launch and operation of the Jiefangxing Lantu version APP. The digital key
completed platform product development and functional adaptation on models such as J167. The
FOTA platform underwent system upgrades and completed pilot upgrades for over 5,000 vehicles.
(3) Technological innovation: Taking innovation as the primary driving force, the
Company has strengthened planning, implementation, technological breakthroughs, and
resource investment, while adhering to the technology-leading strategy.
The 2nd Science and Technology Conference was convened, refreshing the "13586" science and
technology development plan and achieving 100% of the milestone of the "1025" Phase II Program.
Throughout the year, the Company achieved breakthroughs in nearly a hundred industry-leading key
core technologies and maintained its position as the top-ranked company in the China Commercial
Vehicle Innovation Ranking for the seventh consecutive year. The Company has applied for over
1,500 patents, including more than 1,200 invention patents. The Company has led/participated in the
development of over 130 national, industry, and group standards, of which more than 20 standards
were led by the Company and more than 40 standards were successfully released in the same year.
Traditional vehicle field: The Company has conquered the high compression ratio and fast
combustion technology in diesel engines, with a thermal efficiency exceeding 50.7%.The world's
first "ammonia-hydrogen fusion engine" was successfully ignited, reaching an internationally leading
technical level.
New energy vehicle field: The first domestically produced medium-sized electric drive bridge
with dual motors was industrially applied. The Starship China concept truck and the Starlight
forward-looking FCV were released as a blockbuster, featuring breakthroughs in more than 30
technologies such as wide temperature range sealing of fuel cell stacks, large flow injection of
hydrogen, and dual motor multi-mode control.
Intelligent IoV field: The official launch of the IPU brand marked the release of the world's
first IPU product, GD300. The "Star Chess" intelligent cockpit was the first to be launched in China,
leading a new direction of intelligent experience for commercial vehicles. Significant breakthroughs
have been made in more than 20 key core technologies, including high-speed L4 autonomous driving,
low latency remote driving, and predictive intelligent diagnosis and repair.
(4) Digital and intelligent transformation: The Company has focused on improving
operational efficiency through business-centric approaches and accelerating the
transformation process.
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Centering on the "1143" digital transformation framework, the Company has focused on
efficiency, benefits, quality and experience improvement. It has adhered to the principles of end-to-
end process and business integration. The Company has comprehensively promoted the deepening of
business design, optimization of 4A architecture, and construction of digital platforms. It has also
enhanced digital capabilities such as big data, AI, independent development and network security,
and continuously built a system to ensure capabilities in strategic operations, process operations,
project operations, product operations, and other areas.
Business model innovation: The Company has deepened 8 digital products such as intelligent
locking and fleet management, and optimized and upgraded its network freight platform, resulting in
a more than 50% improvement in system efficiency. In terms of digital project construction: The
Company has built a digital system that covers the entire chain of research, production, supply, sales,
and service of the Company. Over 30 systems, including CAD/CAE Phase II and new energy direct
sales platforms, have been constructed, and more than 20 system optimizations have been completed.
The construction of big R&D and big marketing digital platforms have been coordinated and planned,
significantly improving work efficiency in various fields.
Big data capacity building: The Company has accelerated the construction of data
management systems, deepened the application of data analysis, and promoted AI technologies such
as big models to empower business digital transformation. In terms of data governance, the Company
has implemented a data management system and completed the sorting of L4/L5 assets for 100
business objects in areas such as R&D and marketing. In respect of data analysis, nearly 20 projects
including IoV data governance and BOM change analysis were launched to support efficient
business decision-making. In terms of big models, the Company has created a "new energy policy
insight robot" that automatically crawls, processes and pushes policy data from over 40 websites,
greatly enhancing information acquisition efficiency.
(5) Capital operation: The Company has strengthened compliance operation, attached
importance to investment management, and actively planned capital operation.
The Company has conducted information disclosure efficiently and compliantly in strict
accordance with regulatory requirements for listed companies. A total of 175 announcements were
disclosed throughout the year. It has received an A rating for information disclosure from the SZSE
for three consecutive years. The Company has strengthened its investor relations management and
organized multi-level investor exchange activities, totaling 400 exchanges. The Company has
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actively planned to launch a project to issue A-shares to specific targets, with a total planned
fundraising of no more than CNY 3.713 billion, to provide strong support for R&D in the new four-
based (electrification, networking, intelligence and sharing) field. The Company has timely and
compliantly completed the unlocking, listing, repurchase and cancellation of over 300 related stocks
in its equity incentive plan. The Company has enhanced the management of more than 10
participating enterprises and achieved a total investment income of CNY 348 million throughout the
year. It has proactively promoted equity investment projects, offering robust support for the swift
implementation of the Company's strategies in new energy, IoV, autonomous driving and aftermarket.
2. Revenues and costs
(1) Composition of operating income
Unit: CNY
2023 2022 Year-on-
Proportion Proportion year
in in Increase
Amount Amount and
Operating Operating
Income Income Decrease
Total operating
63,904,532,477.03 100% 38,331,747,083.88 100% 66.71%
income
By industries
Automobile
63,904,532,477.03 100.00% 38,331,747,083.88 100.00% 66.71%
industry
By products
Commercial
58,781,305,472.90 91.98% 33,483,232,308.59 87.35% 75.55%
vehicles
Spare parts and
5,123,227,004.13 8.02% 4,848,514,775.29 12.65% 5.67%
others
By regions
Northeast China,
North China,
Northwest China 35,412,537,135.12 55.41% 19,888,808,283.34 51.89% 78.05%
and Southwest
China
East China,
South China and 28,491,995,341.91 44.59% 18,442,938,800.54 48.11% 54.49%
Central China
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(2) Information about industries, products, regions and sales model accounting for more than
10% of the Company's operating income or operating profit
Applicable □Not applicable
Unit: CNY
Increase/Decr
Increase/Dec Increase/Decr
ease of
rease of ease of Gross
Gross Operating
Operating Operating Operating Profit Rate
Profit Income over
Income Costs Cost over the over the Same
Rate the Same
Same Period Period of Last
Period of Last
of Last Year Year
Year
By industries
Automobile 61,967,850, 57,133,83 Increased by
7.80% 70.98% 70.00%
industry 165.95 0,184.15 0.53%
By products
Commercial 58,781,245, 54,332,06 Increased by
7.57% 75.55% 74.06%
vehicles 667.94 0,946.48 0.79%
Spare parts 3,186,604,4 2,801,769, Reduced by
12.08% 15.49% 17.03%
and others 98.01 237.67 1.15%
By regions
Northeast
China, North
China,
34,339,329, 31,705,92 Increased by
Northwest 7.67% 82.61% 78.98%
467.34 1,159.18 1.87%
China and
Southwest
China
East China,
South China 27,628,520, 25,427,90 Reduced by
7.96% 58.44% 59.98%
and Central 698.61 9,024.97 0.89%
China
The main business data of the Company adjusted at the end of the latest reporting period if the
statistical caliber of the Company's main business data is adjusted in the last year
□Applicable Not applicable
(3) Whether physical sales revenue of the Company is greater than the labor service revenue
Yes □No
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Year-on-year
Industry
Item Unit 2023 2022 Increase and
classification
Decrease
Sales Qty Vehicle 241,662 170,049 42.11%
Production
Automobile Vehicle 250,640 150,812 66.19%
output
industry
Storage
Vehicle 22,126 13,235 67.18%
amount
Reasons for the year-on-year change of relevant data by more than 30%
Applicable □Not applicable
In the current context of recovering demand in the commercial vehicle market industry, the
Company continues to improve its product capabilities, strengthen its position in advantageous
markets, actively expand overseas exports, and increase the sales volume of various types of vehicles.
(4) Performance of major sales contracts and major procurement contracts signed by the
Company as of the reporting period
□Applicable Not applicable
(5) Composition of operating cost
Industry and product classification
Unit: CNY
2023 2022 Year-on-
Industry Proportio Proportion year
classificatio Item n in in increase
Amount Amount
n operating operating and
cost cost decrease
Materia
Automobile 53,650,304,272.56 91.51% 31,126,255,860.34 88.30% 72.36%
l cost
industry
Others 4,979,331,438.99 8.49% 4,125,915,026.19 11.70% 20.68%
Unit: CNY
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2023 2022 Year-on-
year
Product
Item Increase
Classification Proportion Proportion
and
in in
Amount Amount Decrease
Operating Operating
Cost Cost
Commercial Commercial
54,332,060,946.48 92.67% 31,214,534,982.58 88.55% 74.06%
vehicles vehicles
Spare parts Spare parts
4,297,574,765.07 7.33% 4,037,635,903.95 11.45% 6.44%
and others and others
Note: None
(6) Whether the consolidation scope is changed in the reporting period
Yes □No
The Company established a new subsidiary, FAW Jiefang UNI-D (Tianjin) Technology Co., Ltd., on
April 14, 2023.
(7) Significant changes or adjustments in business, products or services of the Company in the
reporting period
□Applicable Not applicable
(8) Information about main customers and main suppliers
Information about main customers of the Company
Total sales amount of the top five customers (CNY) 20,306,447,061.24
Proportion of total sales amount of the top five customers in
31.78%
total annual sales amount
Proportion of sales of related parties in total annual sales of
22.39%
the top five customers
Information about the top 5 customers of the Company
Proportion
S/N Customer name Sales (CNY) in Total
Annual
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Sales
1 CHINA FAW GROUP CO., LTD. 11,861,365,832.71 18.56%
2 Customer 1 2,736,305,708.02 4.28%
FAW Jiefang Fujie (Tianjin) Technology
3 2,446,872,744.97 3.83%
Industry Co., Ltd.
4 Customer 2 1,903,418,018.14 2.98%
5 Customer 3 1,358,484,757.40 2.13%
Total -- 20,306,447,061.24 31.78%
Other information about main customers
□Applicable Not applicable
Information about main suppliers of the Company
Total purchase amount of the top five suppliers (CNY) 17,320,145,386.31
Proportion of total purchase amount of the top five suppliers in total 28.73%
annual purchase amount
Proportion of the purchase amount of related parties in the total annual 7.38%
purchase amount of the top five suppliers
Information about the top 5 suppliers of the Company
Proportion in
Purchase Amount Total Annual
S/N Name of Supplier
(CNY) Purchase
Amount
1 Supplier 1 10,924,862,616.15 18.12%
2 CHINA FAW GROUP CO., LTD. 2,791,804,801.30 4.63%
3 Fawer Auto Parts Co., Ltd. 1,659,607,907.68 2.75%
4 Supplier 2 980,210,553.71 1.63%
5 Supplier 3 963,659,507.47 1.60%
Total -- 17,320,145,386.31 28.73%
Other information about main suppliers
□Applicable Not applicable
3. Cost
Unit: CNY
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Year-on-year
Description of
2023 2022 Increase and
Major Changes
Decrease
Sales expenses 1,605,495,233.98 1,255,882,221.64 27.84%
Administrative
1,931,279,477.64 2,040,339,354.62 -5.35%
expenses
Financial
-915,389,862.57 -1,052,600,813.17 -13.04%
expenses
R&D expenses 2,982,257,879.16 2,895,655,097.73 2.99%
4. R&D investment
Applicable □Not applicable
Expected Impact on the
Name of Main Project Project
Proposed Objectives Company's Future
R&D Projects purpose progress
Development
Follow the
"domestic Maintain the high-end
first-class and positioning of products,
world-class" pursue excellent quality,
Support Jiefang's
enterprise and improve product
strategy of developing
development quality continuously in the
J7 series a "domestic first-class
strategy, and efficient long-distance
expanded Develop and world-class"
develop trunk express market,
models ment enterprise, and
domestic high- create greater value for
development phase contribute hard-core
end benchmark users, expand the market
project products to the product
heavy trucks capacity of high-end
layout during the 14th
independently vehicle products year by
Five-Year Plan period.
to achieve a year, realize double sales
new level of volume, and lead the
domestic truck industry development.
quality.
In the current Maintain the mid-to-high-
situation where end positioning of Enhance the
JH6 products products in the six core competitiveness of
have been on markets such as general Jiefang's medium and
JH6 series
the market for freight, express freight, heavy vehicle product
expanded
eight years, it Planning green transport and urban line and major
models
is urgent to stage construction muck, products, and
development
upgrade the strengthen the advantages contribute hard-core
project
JH6 platform of highway vehicles in the products to the product
to ensure the mid-to-high-end market layout in the 14th Five-
leading and renew the brand image Year Plan period.
competitivenes of engineering vehicles by
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s of the Jiefang optimizing the complete
brand. vehicle reliability, comfort
and TCO.
Complete the development
of a new energy exclusive
Continuously platform in urban logistics,
improve the medium and short-distance Lay the foundation for
high-end transportation and other the overall realization
attributes of relevant markets, which of new energy
Jiefang Light Planning covers both pure electric transformation of
Light truck
Truck and stage and hybrid routes, aiming Jiefang and assist in
develop a new to create an ultimate completing the 14th
energy driving and riding Five-Year
exclusive experience while Development Plan.
platform achieving an industry-
leading electricity
consumption level.
Develop fuel Cover typical scenarios of Complete the layout of
cell products, the three demonstration three major technical
cover all the city clusters of fuel cells, routes, reserve the fuel
three major develop a whole series of cell products
technical products such as fuel- development
routes, meet electric traction, fuel- technology, support the
Fuel Cell the electric dump, special fuel- research and
Develop
Product requirements electric and fuel-electric development of
ment
Development of logistics, and apply for independent fuel cell
phase
Project demonstration demonstration operation products, build a
operation projects together with benchmark image for
subsidies, and mainstream fuel-electric the new energy
support the system partners to realize industry, and support
increase of the batch sales and Jiefang to lead the new
new energy operation of fuel-electric energy industry
products. products. continuously.
Develop aided Through the
driving and Develop intelligent vehicle commercial operation
restricted- series products, realize of emerging industries
region high- aided driving in trunk in multiple scenarios,
level logistics scenarios and the Company's
intelligent high-level intelligent independent R&D
Jiefang
driving driving in multiple capability and
intelligent
commercial Develop restricted-region scenarios competitiveness in the
driving
vehicle ment such as ports and intelligent driving field
product
products based phase sanitation, and develop are improving
development
on customer full-stack intelligent continuously. The rapid
project
needs, so as to driving software and accumulation of
help Jiefang hardware core operational experience
realize the technologies by itself to supports the
commercializat create independent core Company's strategic
ion of the competitiveness. transformation to
intelligent become "China's first
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vehicle and
industry in a world-class" provider
short period. of green intelligent
transportation
solutions.
The project is
implemented
to realize
The full-stack self-
networking of
developed IoV platform
the Company's
series products cover three
off-line
major sub-platforms, i.e.
vehicles, so as
vehicle terminal, mobile
to meet the With continuous
terminal and cloud
regulatory product iteration and
terminal, realize the
requirements service optimization of
digitalization of vehicle
for monitoring the IoV project, the
operation information at
and provide achievements will
the vehicle terminal, and
customers with improve the digital,
enable vehicle-cloud
remote networking and
connection based on self-
functions or intelligent experience
developed Tbox products.
services such of Jiefang's
At the mobile terminal, the
as remote commercial vehicle
Company optimizes and
Jiefangxing vehicle users significantly,
iterates the mobile phone
APP IoV control, Iterative solve user complaints,
Jiefangxing APP
platform intelligent operation enhance product
continuously, and builds
development diagnosis and phase competitiveness and
the exclusive in-vehicle
project repair, OTA reduce service costs.
OS for Jiefang commercial
upgrade, etc. They will also help the
vehicles independently to
In addition, Company to lay out the
enhance user experience.
IoV big data field of commercial
At the cloud terminal, it
can be realized vehicle ecology,
optimizes the IoV cloud
in the fields of promote the digital
platform continuously to
research, transformation of
improve stability, security
production, products and services,
and concurrency. The
marketing and and enter the
Company creates the first
service based commercial cycle of
IoV brand in the
on millions of data-driven iteration.
commercial vehicle
connected
industry through the
vehicles, so as
construction at vehicle
to support the
terminal, mobile terminal
layout of the
and cloud terminal.
Company in
ecological
services.
Develop Complete the development Provide competitive
Upgraded
transmission of drive axle and AMT drive axle and AMT
transmission Develop
products products and improve the transmission products
product ment
complying comprehensive for Jiefang's vehicle
development phase
with noise competitiveness of platform, improve the
project
regulations and assembly products. competitiveness of
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fuel vehicle products, and
consumption support Jiefang to lead
regulations to the industry
improve the continuously.
competitivenes
s of complete
vehicles.
Improve the effective
Break through high thermal efficiency of
Research on compression ratio fast diesel engines, achieve
Break through
55% thermal dual-zone combustion the goal of product low
55% thermal
efficiency Research system and other carbonization, and
efficiency
power system phase technologies to challenge reserve technologies
technology of
technology of the 55% thermal efficiency for complying with the
diesel engine.
diesel engine of commercial vehicle fuel consumption
diesel engines. regulations in the next
stage.
Break through Build the technical
Fuel cell the integration competitiveness of the
system and control Company's first-class
Research Reach the system power of
integration technology of fuel cell products and
phase 100 kW.
technology commercial fill the technical gap of
development vehicle fuel the independent fuel
cell system. cell system.
Information about R&D personnel of the Company
2023 2022 Change ratio
Number of R&D
3,151 2,904 8.51%
personnel (person)
Proportion of R&D
15.75% 14.27% 1.48%
personnel
Educational background structure of R&D personnel
Bachelor's degree 2,059 1,907 7.97%
Master's degree 1,027 943 8.91%
Doctor's degree 49 36 36.11%
Junior college degree 16 18 -11.11%
Age structure of R&D personnel
Under 30 years old 1,171 1,065 9.95%
30-40 years old 1,299 1,159 12.08%
41-50 years old 483 465 3.87%
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51-60 years old 198 215 -7.91%
Information about R&D investment of the Company
Change
2023 2022
ratio
Amount of R&D Investment (CNY) 3,104,963,079.11 2,895,655,097.73 7.23%
Proportion of R&D Investment in Operation -2.69%
4.86% 7.55%
Income
Capitalization amount of R&D investment
122,705,199.95 0.00 -
(CNY)
Proportion of capitalized R&D investment in
3.95% 0.00% 3.95%
total R&D investment
Reasons and influence of major changes in the composition of the R&D personnel
□Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating income
compared with the previous year
□Applicable Not applicable
Reasons for and the rationality of great change in the capitalization rate of R&D investment
□Applicable Not applicable
5. Cash flow
Unit: CNY
Year-on-year Increase
Item 2023 2022
and Decrease
Subtotal of cash inflows from
62,308,904,099.97 44,778,021,694.80 39.15%
operating activities
Subtotal of cash outflows from
58,107,186,378.45 49,913,265,664.15 16.42%
operating activities
Net cash flows from operating
4,201,717,721.52 -5,135,243,969.35 181.82%
activities
Subtotal of cash inflows from 404,944,067.84 1,715,798,644.98 -76.40%
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investment activities
Subtotal of cash outflows from
2,798,293,719.39 3,345,556,203.30 -16.36%
investment activities
Net cash flows from investment
-2,393,349,651.55 -1,629,757,558.32 -46.85%
activities
Subtotal of cash outflows from
22,968,693.24 3,080,358,351.01 -99.25%
financing activities
Net cash flows from financing
-22,968,693.24 -3,080,358,351.01 99.25%
activities
Net increase in cash and cash
1,786,174,827.41 -9,845,007,165.71 118.14%
equivalents
Description on main factors influencing major changes in relevant data on a year-on-year basis
Applicable □Not applicable
(1) "Subtotal of cash inflows from operating activities" of this year increased by 39.15% compared
with the previous year, which is mainly due to the recovery of demand in the commercial vehicle
market, competition for overseas exports, increased sales of various vehicle models, and increased
sales receipts.
(2) "Net cash flows from operating activities" increased by 181.82% compared to the previous year,
mainly due to the recovery of demand in the commercial vehicle market, competition for overseas
exports, increased sales of various vehicle models, and increased sales receipts.
(3) "Subtotal of cash inflows from investment activities "of this year decreased by 76.40% compared
with the previous year, mainly due to the adjustment of interest income and the decrease in cash
received from the disposal of long-term assets.
(4) "Net cash flows from investment activities "of this year decreased by 46.85% compared to the
previous year, mainly due to the adjustment of interest income and the decrease in cash received
from the disposal of long-term assets.
(5) "Subtotal of cash outflows from financing activities" of this year decreased by 99.25% compared
with the previous year, mainly due to undistributed cash dividends for the year.
(6) "Net cash flows from financing activities "of this year increased by 99.25% compared with the
previous year, mainly due to undistributed cash dividends for the year.
38
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(7) "Net increase in cash and cash equivalents" of this year increased by 118.14% compared to the
previous year, mainly due to the recovery of demand in the commercial vehicle market, increased
sales of various vehicle models, increased sales receipts, and increased net operating flow.
Description on reasons for the significant difference between the net cash flows generated from the
operating activities in the reporting period and the net profit of this year
Applicable □Not applicable
Refer to Section X - "Financial Report VII", Notes to Items in Consolidated Financial Statements
and Section 58 "Supplementary Information to Cash Flow Statement" for details.
V. Analysis of Non-main Business
□Applicable Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
End of 2023 Early 2023 Descrip
Increase/D tion of
Proportion Proportion ecrease in Major
Amount in Total Amount in Total Proportion Change
Assets Assets s
Monetary
22,920,710,903.12 34.80% 21,041,473,417.71 37.05% -2.25%
capital
Accounts
1,989,386,169.77 3.02% 867,090,338.42 1.53% 1.49%
receivable
Contract
17,582,856.82 0.03% 11,129,624.75 0.02% 0.01%
assets
Inventorie
9,210,971,356.15 13.98% 6,382,739,897.83 11.24% 2.74%
s
Investmen
t 47,049,995.53 0.07% 80,647,597.48 0.14% -0.07%
properties
Long-term
equity
5,469,591,970.26 8.30% 4,692,648,635.84 8.26% 0.04%
investmen
ts
Fixed 11,380,286,165.58 17.28% 9,612,922,810.28 16.93% 0.35%
39
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assets
Project
under
816,484,299.18 1.24% 1,902,143,354.11 3.35% -2.11%
constructi
on
Right-of-
138,989,886.70 0.21% 198,220,342.59 0.35% -0.14%
use assets
Contract
2,204,692,602.77 3.35% 1,629,524,704.35 2.87% 0.48%
liabilities
Lease
30,494,014.13 0.05% 54,814,603.06 0.10% -0.05%
liabilities
High proportion of overseas assets
□Applicable Not applicable
2. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: CNY
Profits Purc
Accum Provis
and hase Sales
ulated ion
losses amo amou
change for Oth
from unt nt in
s in impai er
Beginning changes in the
Item fair rment cha Closing balance
balance in fair the curre
value in the nge
value curre nt
throug curren s
for the nt perio
h t
current perio d
equity period
period d
Financial assets
1. Investment
in other equity 480,780,000.00 480,780,000.00
instruments
Total 480,780,000.00 480,780,000.00
Financial
0.00 0.00
liabilities
Content of other changes: none
Whether the measurement attribution of the Company's main assets within the Reporting Period was
significantly changed or not
40
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
□Yes No
3. Restrictions on asset rights as of the end of the reporting period
For details, please refer to Note 21"Assets with restricted ownership or use right" in Part VII "Notes
to Items in Consolidated Financial Statements" of Section X - Financial Report.
VII. Investment Analysis
1. Overall situation
Applicable □Not applicable
Investment Amount in the
Investment Amount in the
Same Period of Previous Year Variation range
Reporting Period (CNY)
(CNY)
725,139,697.94 516,780,000.00 40.32%
2. Major equity investments acquired in the reporting period
Applicable □Not applicable
41
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Unit: CNY
Inve Progress Profit and Involv
Name of Estim Date
Investme stm Produ as of Loss of ed in
Investee Main Investmen Share Capital ated of Disclosu
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42
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
3. Major non-equity investments in progress in the reporting period
□Applicable Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable Not applicable
The Company has no derivative investment in the reporting period.
5. Use of raised funds
□Applicable Not applicable
The Company does not use raised funds in the reporting period.
VIII. Sale of Major Assets and Equity
1. Sale of major assets
Applicable □Not applicable
43
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
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44
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
square assets,
meters increasing
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45
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
2. Sale of major equity
□Applicable Not applicable
IX. Analysis on main holding and joint-stock companies
Applicable □Not applicable
Major subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY 10,000
Company Company Registered Operating Operating
Main business Total Assets Net Assets Net Profit
Name Type Capital Income Profit
FAW Development,
Jiefang manufacturing and
Subsidiaries 1,080,301.25 6,119,806.08 1,990,539.44 6,390,453.25 -7,979.29 44,143.78
Automotive sales of vehicles and
Co., Ltd. parts
Handling of financial
business within the
First
Group and other
Automobile Joint-stock
financial businesses 1,000,000.00 17,404,165.76 2,109,616.64 665,435.99 263,159.83 178,629.31
Finance Co., companies
approved by the
Ltd.
People's Bank of
China
Acquisition and disposal of subsidiaries in the reporting period
□Applicable Not applicable
Description of main holding and joint-stock companies: none
46
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
X. Structured Entities Controlled by the Company
□Applicable Not applicable
XI. Outlook for Future Development of the Company
1. Competition pattern and development trend of the Company's industry
In the next three years, the commercial vehicle industry, especially medium and heavy trucks,
will enter a period of deep adjustment, which will bring many unprecedented changes. The main
characteristics are maintaining low demand, adjusting product structure, and intensifying stock
competition.
The macro-economy is moving towards a stage of high-quality development, with an expected
GDP growth rate of around 5%. The slowdown in economic growth will lead to low demand for
medium and heavy trucks. Real estate investment is expected to remain sluggish, with limited growth
in traditional infrastructure investment, low demand for transportation capacity in new infrastructure,
and sluggish demand for engineering transport vehicles. However, at the same time, there will be an
increase in consumer-driven demand for road vehicles, effectively driving the increase in demand for
traction and freight vehicles, which is also an advantageous area of FAW Jiefang. Overall, industry
demand will remain low and difficult to recover to the high demand level during the 13th Five-Year
Plan period.
The demand structure of medium and heavy trucks is facing deep adjustment. In the future,
natural gas vehicles will continue to maintain high sales due to stable gas prices and an increase in
the "fuel-to-gas price ratio", resulting in their continued TCO advantage over traditional fuel vehicles.
The significant trends in the industry include the adoption of high horsepower and AMT technology.
Furthermore, there is an increasing demand for new energy vehicles, intelligent connectivity, and
comprehensive solutions. Although the growth momentum of export demand has slowed down, it
will remain at a high level. China will continue to promote a higher level of opening up to the outside
world, optimize its international market layout, and improve its overseas service system. Export
demand will still have a certain potential.
Stock competition is the main tone of future market competition, and the competition between
enterprises will be further intensified. The battle for the status of traditional domestic OEMs is
becoming more intense; international leading enterprises launch domestically produced products to
47
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lower the ceiling of domestic high-end products; new forces leverage capital to explore new models
and expand new markets in the new energy and intelligent vehicle tracks, seeking to overtake
traditional enterprises on bends. In the future, it is expected that the concentration of the top 5 in the
medium and heavy trucks industry will further increase.
Based on the environment described above, FAW Jiefang will rely on its existing industry
position to expand its leading advantages in products, marketing, technology and other aspects, and
continue to make efforts overseas, new energy and other business sectors to ensure its position as a
leading enterprise in the medium and heavy truck market.
2. Development strategy and business plan of the Company
In 2024, the Company will comprehensively and thoroughly study and implement the guiding
principles of the 20th CPC National Congress, continuously implement the guiding principles of the
important speech made by General Secretary Xi Jinping at the time of inspecting FAW, and
unswervingly uphold and strengthen the leadership of the Party. With a focus on high-quality
development, the Company will be committed to thoroughly implementing its strategy and annual
key requirements. It will adhere to the overarching concept of "creating a leading brand, focusing on
the leading mainline, adhering to innovation and reform drive, winning the four tough battles, and
carrying out the seven key tasks". Throughout the year, the Company will diligently undertake
various tasks related to production and operation. By gathering momentum for leading, bravely
crossing the peak, gathering strength to win tough battles, and ambitioning to win a new journey, the
Company shall accelerate its relentless struggle towards becoming "China's first and world-class"
green and intelligent transportation solutions provider, as well as a century-old national automobile
brand.
(1) Taking the brand as the leader, refreshing the brand core, and creating the leading brand
strength. Devoted to a century-old national automobile brand, the Company adheres to "inheritance"
and "refreshment" to achieve the brand development of "modernization, substantiation, enrichment,
internationalization and precision".
(2) Focusing on the leading mainline of products, comprehensively enhancing product
competitiveness, and consolidating the leading position of FAW Jiefang. Adhere to the concept of
"product is the priority", have insight into market trends and customer needs, develop and upgrade
the product platform by focusing on traditional products, new energy, special equipment and
powertrain, and constantly reserve and create new advantages of the products of FAW Jiefang.
48
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(3) Firmly adhering to innovation and reform drive, strengthening the core capabilities of the
enterprise for facing the future, and creating a strong driving force for high-quality development. In
terms of technological innovation, anchor the goal of "ranking first in the industry in scientific and
technological innovation capability", grasp the cutting-edge technology of global commercial
vehicles, strengthen the independent innovation capability, and support the products and solutions in
fields such as traditional vehicles, NEVs and intelligent connected vehicles to enter the world-class
level. In terms of reform drive, further promote business process and integration reform, strive to
realize the value of reform, create a world-class modern management system, and continuously
deepen the "four-capability" reform, thereby meeting the needs of process-based organizational
reform.
(4) Resolutely winning the four tough battles and promoting the operation level to a new level
with innovative thinking, precise policy implementation, strong system building and quick capability
promotion. Resolutely win the tough battle for the first rank of traditional vehicles in China, stick to
the "two-beyond" goal, and promote the absolute leading advantage of medium and heavy trucks in
the country; resolutely win the tough battle for the leapfrog growth of NEVs, and continuously dig
deep into sales increment by focusing on typical scenarios, innovating marketing models and
implementing customized solutions; resolutely win the tough battle for catching up with the peers in
volume in overseas markets, continue to seize market opportunities, accelerate the pace of
internationalization, and expand the overseas sales base; resolutely win the tough battle for cost
reduction, income increment and profit promotion, adhere to the idea of "increasing margin, reducing
cost and increasing income", strengthen the pulling effect of budget, implement rolling forecasts,
optimize economic operation analysis, and improve operation quality.
(5) Carrying out seven key tasks and providing strong support for improving the efficiency and
effect of enterprise operations. In terms of strategic management, strengthen strategic management to
ensure quick and effective implementation of the strategies of the Company, enhance joint venture
cooperation, and make good use of external resources. In terms of quality management,
unwaveringly adhere to the concept of "win with quality", innovate and deepen the four major
projects, and accelerate the construction of world-class competitiveness in quality. In terms of digital
intelligent transformation, constantly create the "four-pillar" digital intelligent architecture, and build
the main digital intelligent platform of FAW Jiefang in accordance with the principles of end-to-end
process, business integration and urgent use first, thereby supporting the improvements in the
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Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
"benefit, efficiency, and quality" of the Company. In terms of supply chain security, persist in
building a ''world-class supply chain system", and steadily enhance the resilience and security of the
supply chain. In terms of manufacturing technology, inherit the 70 years of vehicle building
experience of FAW Jiefang and create the world-class process manufacturing technology capability.
In terms of capital operation, build the first-class capital operation capability in the industry focusing
on the "electrification, networking, intelligence and sharing" and globalization trend of commercial
vehicles. In terms of safety and environmental protection & risk compliance & confidentiality,
deeply implement the safety production responsibility system, keep an eye on the bottom line of
environmental compliance, continue to strengthen the construction of audit, compliance and risk
systems, and prioritize the action of the "Year of Trade Secret Protection", thus realizing system
enhancement and work improvement.
(6) Aiming at the goals of various business sectors, cooperating with each other, improving the
operation efficiency, and supporting the overall transformation and development of FAW Jiefang.
3. Possible risks to the Company's operation
(1) International environment change risk
The stock competition will be maintained in the domestic heavy truck market for a long time,
with product export representing one of the industrial development directions. During the reporting
period, the quantity and proportion of the export products of the Company increased continuously.
However, considering international environmental factors such as regional conflicts, tariff barriers
and currency exchange rate fluctuations, coupled with the sustained high global inflation level and
slower economic growth, the product export of the Company will face more challenges.
(2) Market structure change risk
In the context of propelling the stable promotion of investment scale and efficiency in China,
there is a favorable investment situation in China, and the heavy truck industry shows a slight
increase in volume within the short term as affected by the policies. Also, with the constant change in
factors such as gasoline and diesel prices, liquefied natural gas prices and new energy battery costs,
the market structure will be further adjusted. These factors, coupled with the impact brought by
policies including the "carbon peaking and carbon neutrality" strategy, will cause the Company to
confront the opportunities and challenges brought by market structure change. Moreover, due to
market structure change, the market share of new energy products will continue to increase. However,
50
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
the intensified competition and disorder in the new energy market will also bring great risks to the
operation of the Company.
(3) Commodity price fluctuation risk
The production and operation of the Company involve three types of commodities, namely
basic raw materials, precious metals and energies. Although the supply and demand of raw materials
such as steel are relatively stable in the short term, factors such as macro-economy, supply and
demand relationships, policies and regulations change continuously. Hence, there are still many
uncertainties in the prices of some precious metals and energies, and the price fluctuations will have
a certain impact on the production cost of the Company.
Based on the above risks, the Company has prepared the following solutions:
(1) Strengthening product investment and improving service level. Increase product research
and development, accurately launch new products, and continue to improve service level, thereby
meeting customer needs, enhancing market competitiveness, and promoting brand image.
(2) Optimizing marketing network. Establish diversified sales channels by developing multiple
market segments, shore up areas of weakness, expand advantages, comprehensively improve
marketing network capability, and seize market opportunities.
(3) Perfecting the quick response mechanism to cope with the rapid changes in the market.
Continue to perfect and improve the response mechanism, give quick responses and adjust strategies
and policies in case of changes in the market situation, timely cope with the competition, and strive
for the market.
(4) Strengthening environment investigation and monitoring. Continuously conduct market
investigations and adverse factors assessment of the domestic and overseas political and economic
landscapes, aiming at timely adjustment of market strategies; establish a robust market monitoring
mechanism, optimize the cost of raw materials, and constantly improve resources, thereby timely
coping with the challenges brought by market changes.
XII. Reception, Investigation, Communication, Interview and Other Activities in the Reporting
Period
Applicable □Not applicable
Type of Main Index
Reception Reception Reception
Receptio Reception Object Contents of
Time Location Mode
n Object of Basic
51
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Discussi Informa
on and tion of
Informati Investig
on ation
Provided
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Management Co., Ltd.,
Sinosafe Asset Insurance,
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Management, Hezhong
Yisheng, Bank Of China
Investment Management,
Nuode Fund, China Pacific
Asset, Huatai-pinebridge,
52
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Tianhong Asset Management,
Caitong Securities, Qianhai
Alliance, Shanghai Berkeley
Brothers, Maxwealth Fund
Management, Penghua Fund
Management, Brilliance
Capital, Taiping Assets, Huaxi
Securities, Shanghai Fangwu
Fund, Hotland Innovation
Asset Management, Jingyu
Asset, Generali China Asset,
ZhiJun Asset, Bosera Funds,
Xitai Investment, Willing
Capital, Xuanjia Private
Equity, Invesco Great Wall
Fund, Point72, Dajia Asset,
IvyRock Asset Management,
JM Capital, Ruipu Investment,
Yong Rong Asset, HAITONG
Securities, Genxi Fund,
Shenzhen Juming Investment,
Wuhan Rongjing Technology
Investment, Taikang Asset
Management, Yongxing
Securities, Southwest
Securities, Huatai Securities,
Zhongke Richland Asset
Management, Guolian
Securities, Beijing Yiguang
Investment Management,
Zheshang Securities, Shenzhen
Cedar Asset, CICC,
Changjiang Securities,
Guangzhou Yue Min
Investment Asset, Goldennest
Capital, Capital Securities,
CITIC Prudential Asset
Management, Silver Leaf
Investment, Proprietary Branch
of Soochow Securities, CNIC
Corporation Limited, China
Post & Capital Fund
Management, Shanghai CR
Asset Management, Aegon-
industrial Fund Management,
China Post Life Insurance,
Truvalue Asset Management,
Ping An Fund, Hengyue Fund,
ICBC-AXA Life Insurance,
First State Cinda Fund
53
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Management, Huatai Asset
Management, PRUDENCE
INVESTMENT, Danyi
Investment, Beijing
Rongguang Investment,
Gohedge Asset, Beijing
Gaoshang Capital
Management, FAW Equity,
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and Shangcheng Asset
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Asset Management, Zhongke
Richland Asset Management,
CICC, Zheshang Securities,
Changjiang Securities, Great
Wall Securities, Oriental
Holdings, CIB Research, Cinda
Securities, Southwest
Securities, Shangcheng Asset
Management, Qianhai
Meeting Gohedge, Silver Leaf
Telephone
April 28, room of Organiza Investment, LS Asset, Licheng
communic
2023 the tion Asset, Baixi Private Equity,
ation
company Credit Suisse, Nuode Fund,
Kaiyuan Securities, Jing'an
Investment, Huaxi Securities,
Huatai Securities, Huatai-
pinebridge, Hua'an Securities,
Xinghai Future Private Equity,
HAITONG Securities,
Haichuang Fund, Guolian
Securities, GF Securities,
ICBC-AXA Life Insurance,
Eastmoney Securities,
Northeast Securities, Caitong
Securities, Golden Trust
Investment, Founder Life
Insurance, UBS, Prudence
Investment, Petrel Capital
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Greater CHINA FUND, JM
GREAT, CHINA FUND, JM
Capital, HGNH, International
Asset, Grand Alliance Asset
Management, Fenghe Asia,
CLOUDALPHA MASTER
FUND, China Galaxy Asset
Management, Cathay Life
Insurance, and BRILLIANCE -
BRILLIANT PARTNERS
FUND LP
Caitong Securities, Dapu Asset
Management, Eastmoney
Securities, Proprietary Branch
of Donghai Securities,
Soochow Securities, GF
Securities, Sealand Securities,
Guolian Securities, CNIC
Corporation Limited,
HAITONG Securities, Huatai
Meeting Securities, BNB Wealth
May 19, room of Field Organiza Management, Penghua Fund
2023 the Research tion Management, Southwest
company Securities, Xinyuan Fund
Management, Cinda Securities,
Industrial Securities, CIB
Wealth Management, New
Insight Capital, Great Wall
Securities, China Merchants
Fund Management, CICC,
Zhongtai Asset Management,
CITIC Securities, China Post
& Capital Fund Management
Network Investors participating in the
Meeting
platform Online Collective Performance
May 22, room of
online Others Presentation of Listed
2023 the
communic Companies within the
company
ation Jurisdiction of Jilin
ICBC International,
Proprietary Branch of Essence
Securities, Niuhu Asset
Management, Proprietary
Meeting Branch of CITIC Construction
Telephone
August 31, room of Organiza Investment, Zijin Venture
communic
2023 the tion Capital, China Post Life
ation
company Insurance, CPIC, Southern
Tianchen, PSBC Wealth
Management, Bosc Asset
Management, Nuode Fund,
Great Wall Securities, Wuxi
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Venture Capital, Zhongtian
Fortune Fund Management,
Zeyuan Asset, Wuxi Capital
Group, Lvjingda Technology,
China Post & Capital Fund
Management, Topsperity
Securities, China Resources
Yuanda Fund Management,
Shenjiu Assets, Taikang Asset
Management, Qianhai
Gohedge, Polunin Capital,
CITIC Prudential, MARCO
POLO PURE ASSET,
MANAGEMENT LTD,
Horizon Insights, SZITIC-
Shangya Phase 1, Jarislowsky,
Fraser Limited, Ping An Bank,
Zhongke Richland Asset
Management, Eastmoney
Securities, HAITONG
Securities, Huashan Capital,
Heju Investment, Purekind
Fund, Hongyi Yuanfang
Investment, Ping An Asset
Management, JU Capital,
Tinny Investment, Oaktree
Overseas, Longrising Asset
Management, CITIC
Securities, Licheng Asset,
Zhong Ou Asset Management,
Great Wall Securities,
Soochow Securities, Baixi
Private Equity, Ping An
Securities, Mingyu Asset
Management, HighGear
Investment, Qing Shui Yuan
Investment, Xueshi Assets,
Brighter Investment,
Changsheng Fund, Aegon-
industrial Fund Management,
Eastern Bay Asset
Management, Taiping Assets,
Point72, GF Securities, Lizhen
Capital, Baozhen Investment,
UBS, Caitong Securities,
Kaiyuan Securities, Huatai
Securities, Southwest
Securities, Changjiang
Securities, Pinpoint, Truvalue
Asset Management, Hongchou
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Investment, Oriental Holdings,
Zheshang Securities, Coast
Horn , Sealand Securities, Neo-
Criterion, Yinsheng Asset
Management, Quanguo Fund,
HGNH International Asset,
Management (SG) PTE.LTD,
Cinda Securities, Silver Leaf
Investment, CIGNA & CMB,
JM Capital, and CICC
Meeting
October room of Field Organiza Rongtong Fund Management
13, 2023 the Research tion and Shanxi Securities
company
Springs Capital, Mingshi
Partners Private Equity, BNB
Wealth Management, Harvest
Fund, Dongxing Securities,
CITIC Prudential Fund,
Invesco Great Wall, Shanghai
Mingyu, Everbright Securities,
Nuode Fund, CITIC Securities,
Guohai Automobile, Quanguo
Fund, Development Research
Center, PICC, Truvalue Asset
Management, Zhongke
Richland, Taikang Funds,
Zheshang Securities, JM
Meeting Capital, JT Asset Management,
Telephone
October room of Organiza Huatai-pinebridge, ETOCK
communic
31, 2023 the tion Capital, Proprietary Branch of
ation
company Industrial Securities, Northeast
Securities, Great Wall
Securities, Silver Leaf
Investment, Taikang Pension,
Ping An Asset Management,
Bund Capltial, Topsperity
Securities, UBS Securities,
KNIHT Investment,
Shangcheng Asset
Management, New Insight
Investmen t, Huaxi Securities,
Guolian Securities, Hel Ved
Capital Management Limited,
Infore Capital, HAWTAI
Motor, C&S Paper, and E Fund
Meeting Essence Securities, Chasing
November room of Field Organiza Securities, Topsperity
08, 2023 the Research tion Securities, Eastmoney
company Securities, GF Securities, GH
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Shining Asset, Guotai Junan
Securities, Hubei SME
Financial Service Center Co.,
Ltd., Hua'an Securities, Jiufu
Investment, Qingdao Botai,
Shanxi Securities, CRRC
Zhuzhou Electric Locomotive
Research Institute, CITIC Non-
Banking, and CITIC Securities
XIII. Implementation of the "Improvement of Both Quality and Return" Action Plan
Whether the Company disclosed the "Improvement of Both Quality and Return" action plan.
Yes □No
The "Improvement of Both Quality and Return" action plan is prepared in order to implement
the guiding ideologies of "activating the capital market and boosting investors' confidence" as
proposed at the meeting of the Political Bureau of the Central Committee of the CPC and of
"vigorously improving the quality and investment value of listed companies, taking more powerful
and effective measures, and focusing on market stability and confidence stability" as proposed in the
executive meeting of the State Council, safeguard the interests of all shareholders, enhance the
investors' confidence and promote the long-term sound and sustainable development of the Company.
For details, please refer to the Announcement on the "Improvement of Both Quality and Return"
Action Plan published by the Company in the Securities Times, China Securities Journal and
CNINFO (http://www.cninfo.com.cn) on March 2, 2024.
The company consistently prioritizes high-quality development as its core theme. It is
committed to advancing its main business and aspires to establish itself as a leading brand. The
company places a strong emphasis on product leadership, continuously innovating and driving
reforms. It actively pursues the mastery of key core technologies, constantly striving to conquer new
frontiers. It is accelerating towards its goal of becoming "China's first and world-class" green and
intelligent transportation solution provider, as well as a century-old national automobile brand. The
Company constantly consolidates its corporate governance structure, improves its internal control
system, promotes the standardized and efficient operation of the "shareholders' meeting, Board of
Directors and Board of Supervisors", and gives full play to the role of various governance subjects,
thus ensuring scientific and effective decision-making. The Company strictly abides by laws,
regulations and regulatory agency provisions, continuously improves the information disclosure
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quality, highlights the importance and pertinence of information disclosure, fully demonstrates the
intrinsic value of the Company, and provides investors with an objective decision-making basis.
Through listing announcements, brokerage strategy meetings, investor exchanges, Interaction Easy,
telephone, email and other channels, the Company ensures good communication with investors and
builds an efficient and transparent communication platform.
The Company strictly implements the shareholder dividend return plan and profit distribution
policy and prepares the 2023 annual profit distribution plan based on its actual situation. The 2023
annual profit distribution plan of the Company is as follows: Based on the 4,636,485,668 shares of
the Company, a cash dividend of CNY 1.5 (tax inclusive) will be distributed to all shareholders for
every 10 shares they hold; the cash dividends to be distributed will reach CNY 695,472,850.20 (tax
inclusive), and the remaining undistributed profits will be carried forward to the next accounting year.
The Company does not convert its capital reserves into share capital. This distribution plan is subject
to the review and approval of the 2023 annual shareholders' meeting before implementation.
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Section IV Corporate Governance
I. Basic Information about Corporate Governance
In 2023, in strict accordance with relevant laws and regulations such as the Company Law, the
Securities Law, the Code of Corporate Governance for Listed Companies, the Rules Governing the
Listing of Shares on Shenzhen Stock Exchange, and the Self-regulatory Guidelines of Shenzhen
Stock Exchange for Listed Companies No.1 - Standardized Operation of Main Board Listed
Companies, as well as relevant normative documents of the China Securities Regulatory
Commission and the Shenzhen Stock Exchange (SZSE), and the Articles of Association, the
Company revised and updated the Articles of Association and the Special Management System for
Directors, Supervisors and Senior Executives to Hold, Buy and Sell Company Shares, perfected the
internal control system, constantly improved the corporate governance structure, promoted the
standardized operation of the Company, enhanced the information disclosure quality of the Company,
actively conducted the investor relations management, and continuously propelled the improvement
of corporate governance level. At present, the actual governance situation of the Company meets
requirements of the China Securities Regulatory Commission's normative documents for the
governance of listed companies.
1. Shareholders and shareholders' meeting
The Company normatively convenes and holds the shareholders' meetings in strict accordance
with the regulations and requirements of the Rules for Shareholders' Meeting of Listed Companies,
the Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies No.1 -
Standardized Operation of Main Board Listed Companies and the Articles of Association, etc. The
shareholders' meeting combines on-site and online voting, which effectively safeguards the
participation of minority shareholders in relevant decision-making matters of the Company and
enables them to fully exercise their rights as shareholders. When reviewing related transaction
matters at the shareholders' meeting of the Company, the procedure for voting avoidance of related
shareholders is strictly performed, thus ensuring the fairness, justice and openness of the related
transactions. The Company employs professional lawyers to witness and provide legal opinions on
the convening of the meeting, so as to ensure standardized operation of the meeting.
2. Directors and the board of directors
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The Company elects directors in strict accordance with the selection procedures stipulated in the
Company Law, the Articles of Association and the Rules of Procedure for the Board of Directors.
The composition and qualifications of the Board members comply with relevant laws and regulations.
In the reporting period, the Board of Directors of the Company convened and held the board meeting
according to the duties assigned by laws and regulations. All directors of the Company, with a
responsible attitude towards all shareholders, actively attended the board meetings and the
shareholders' meetings, carried out all tasks diligently and responsibly, and protected the interests of
the Company and shareholders. The Board of Directors of the Company has three special committees,
namely, the Strategy Committee, the Audit and Risk Control Committee and the Remuneration and
Appraisal Committee, which can provide scientific and professional opinions and suggestions for the
decision-making of the Board of Directors, thus ensuring the rationality of the decision-making of
the Board of Directors.
3. Supervisors and the Board of Supervisors
The Company elects supervisors in strict accordance with the selection procedures stipulated in
the Company Law, the Articles of Association and the Rules of Procedure for the Board of
Supervisors. The composition and qualifications of the members of the Board of Supervisors of the
Company comply with relevant laws and regulations. In the reporting period, the Board of
Supervisors of the Company convened and held the board meeting according to the duties assigned
by laws and regulations. All supervisors of the Company can earnestly perform their duties, actively
attend relevant meetings, supervise regular reports, related transactions, major matters, and the
fulfillment of duties directors and senior executives and other matters of the Company, protect
legitimate interests of the Company and shareholders, and promote the improvement of the corporate
governance level.
4. Relationship between controlling shareholders and listed companies
The Company has independent and complete business and independent operation capabilities,
and is independent of controlling shareholders in terms of business, personnel, assets, organizations
and finance. Controlling shareholders of the Company can regularize their own behaviors according
to the Code of Corporate Governance for Listed Companies, the No. 1 Guidelines for Self-discipline
Supervision of Listed Companies - Standardized Operation of Listed Companies on the Main Board
and the Articles of Association, and do not interfere with the operation and decision-making
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activities of the Company directly or indirectly without obtaining the permission of the shareholders'
meeting, or occupy non-operational funds of the Company, or obtain guarantee from the Company.
5. Information disclosure and transparency
The Company discloses relevant information truthfully, accurately, completely, timely and
fairly in strict accordance with the Measures for the Administration of Information Disclosure by
Listed Companies, the Code of Corporate Governance for Listed Companies, the Rules Governing
the Listing of Shares on Shenzhen Stock Exchange, the No.1 Guidelines for Self-discipline
Supervision of Listed Companies - Standardized Operation of Listed Companies on the Main Board
and the Articles of Association, so as to provide equal opportunities for all investors to obtain
information of the Company. The Company conducts the registration management of insiders
according to the provisions of the Insiders Registration Management Policy, thereby safeguarding
the legitimate rights and interests of investors. The Company designates the special person to take
charge of investor relations management, and strengthens communication with investors through
investigations, telephones, emails, Interaction Easy and other channels, thereby ensuring that all
shareholders have fair access to the relevant information of the Company.
6. Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of stakeholders,
attaches importance to its communication and exchange with stakeholders, strives to coordinate and
balance the interests of shareholders, employees, society and other parties, protects the rights and
interests of stakeholders in accordance with the law, and promotes sustainable, stable and sound
development of the Company together with them.
Whether there is significant difference between the actual situation of corporate governance and laws,
administrative regulations and the regulations on the governance of listed companies issued by the
China Securities Regulatory Commission
□Yes No
There is no significant difference between the actual situation of corporate governance and laws,
administrative regulations and the regulations on the governance of listed companies issued by the
China Securities Regulatory Commission.
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II. Independence of the Company from Controlling Shareholders and Actual Controllers in
Terms of Guaranteeing the Company's Assets, Personnel, Finance, Organizations and Business
The Company has independent and complete business and operation capacity and is completely
independent of controlling shareholders in terms of business, personnel, assets, organizations,
finance, etc. Specific steps are as follows:
1. Business: The Company has independent business operation systems for procurement,
production and sales, possesses independent operation capacity, and can organize and undertake
production and operation activities independently.
2. Personnel: The Company has an independent personnel management organization and system,
and establishes an independent and complete salary management system. The senior executives of
the Company are full-time employees and receive salary from the Company.
3. Assets: The ownership of the assets of the Company is clear and complete, and no asset of the
controlling shareholders is relied on for production and operation. The Company has rights to own,
control, dispose of, and obtain earnings from its assets. No asset of the Company is occupied by
controlling shareholders.
4. Organization: The Company has an independent and complete organizational structure and
production and business premises. The Board of Directors, the Board of Supervisors and other
internal organizations operate independently and do not work together with controlling shareholders.
5. Finance: The Company has an independent and complete financial department, possesses a
perfect financial management system and accounting system, opens an independent bank account,
and pays taxes independently according to law.
III. Horizontal Competition
Applicable □Not applicable
Work
Type of
Nature Progress
Problem Relationship Company
of Causes Solutions and
type with Listed Name
company Follow-
Company
up Plan
CHINA In 2020, the FAW Harbin
FAW listed company Light Perform
Horizontal Controlling
GROUP Others completed major Automobile Co., as
competition shareholder
CO., asset Ltd. (hereinafter promised
LTD. restructuring, referred to as
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and its main "Harbin Light
business was Automobile")
changed to the and FAW Hongta
R&D, Yunnan
production and Automobile
sales of Manufacturing
commercial Co., Ltd.
vehicles. FAW (hereinafter
Harbin Light referred to as
Automobile Co., "FAW Hongta")
Ltd. and FAW are in a state of
Hongta Yunnan discontinuation
Automobile or loss currently,
Manufacturing with heavy
Co., Ltd., which burden and
are members of unstable
FAW Light profitability.
Commercial FAW promises
Vehicle Co., that it will
Ltd., a entrust all shares
subsidiary of of Harbin Light
FAW, are Automobile and
engaged in some FAW Hongta
light truck under its actual
businesses. control to Jiefang
There is Limited for
horizontal management,
competition or and inject the
potential equities of
horizontal Harbin Light
competition Automobile and
between them FAW Hongta
and the listed under its actual
company. control to listed
companies in
batches or at one
time in an
appropriate way,
or transfer them
to other
unrelated third
parties at a
reasonable price
and in a
reasonable way,
or prevent the
light truck
company from
engaging in light
truck related
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businesses by
exercising
shareholders'
rights, and
perform relevant
internal approval
procedures as
soon as possible
after the above
procedures are
initiated within
12 months after
meeting the
requirements that
the return on net
assets of Harbin
Light
Automobile and
FAW Hongta is
not lower than
that of listed
companies in the
same period and
increasing the
earnings per
share of listed
companies after
restructuring.
In 2020, the Harbin Light
listed company Automobile and
completed major FAW Hongta are
asset in a state of
restructuring, discontinuation
and its main or loss currently,
business was with heavy
changed to the burden and
R&D, unstable
production and profitability.
China Perform
Horizontal Controlling sales of FAW promises
FAW Others as
competition shareholder commercial that it will urge
Co., Ltd. promised
vehicles. FAW to entrust all
Harbin Light shares of Harbin
Automobile Co., Light
Ltd. and FAW Automobile and
Hongta Yunnan FAW Hongta
Automobile under its actual
Manufacturing control to Jiefang
Co., Ltd., which Limited for
are members of management,
FAW Light and inject the
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Commercial equities of
Vehicle Co., Harbin Light
Ltd., a Automobile and
subsidiary of FAW Hongta
FAW Car Co., under its actual
Ltd., are control to listed
engaged in some companies in
light truck batches or at one
businesses. time in an
There is appropriate way,
horizontal or transfer them
competition or to other
potential unrelated third
horizontal parties at a
competition reasonable price
between them and in a
and the listed reasonable way,
company. or prevent the
light truck
company from
engaging in light
truck related
businesses by
exercising
shareholders'
rights, and
perform relevant
internal approval
procedures as
soon as possible
after the above
procedures are
initiated within
12 months after
meeting the
requirements that
the return on net
assets of Harbin
Light
Automobile and
FAW Hongta is
not lower than
that of listed
companies in the
same period and
increasing the
earnings per
share of listed
companies after
restructuring.
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IV. Information on Annual Shareholders’ Meeting and Extraordinary Shareholders’ Meeting
Held in the Reporting Period
1. Shareholders' meeting in the reporting period
Participati
Meeting on Ratio Date of
Session Date Meeting Resolution
Type of Disclosure
Investors
The Proposal on Repurchase
and Cancellation of Partial
Restricted Shares in the
Phase I Restricted Share
Incentive Plan, the Proposal
on Change of Registered
Capital of the Company, the
Proposal on Amending the
First Articles of Association, the
Extraordin
extraordinary Proposal on Estimated Daily
ary March 02, March 03,
shareholders' 84.91% Related Transaction Amount
shareholde 2023 2023
meeting of in 2023, the Proposal on
rs' meeting
2023 Signing a Financial Service
Framework Agreement with
First Automobile Finance
Co., Ltd., and the Proposal
on Estimated Financial
Business Amount with First
Automobile Finance Co.,
Ltd. in 2023 were
deliberated and approved.
The 2022 Work Report of
the Board of Directors, the
2022 Work Report of the
Board of Supervisors, the
2022 Financial Statements,
the 2022 Annual Report and
Summary Thereof, the 2022
Profit Distribution Plan, the
2022 Annual Annual
April 24, April 25, Proposal on Unsuccessful
shareholders' shareholde 83.95%
2023 2023 Lifting of Conditions of the
meeting rs' meeting
Second Release Period First
Granted by the Phase I
Restricted Share Incentive
Plan for Releasing the
Restricted Sales and of
Conditions of the First
Release Period Reserved by
the Phase I Restricted Share
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Incentive Plan for Releasing
the Restricted Sales and
Repurchase and
Cancellation of Some
Restricted Shares, the
Proposal on Change of
Registered Capital of the
Company, the Proposal on
Amending the Articles of
Association, the Proposal on
Election of Non-employee
Representative Supervisors
of the 10th Board of
Supervisors at the General
Meeting of the Board of
Supervisors, the Proposal on
Election of Non-
independent Directors of the
10th Board of Directors at
the General Meeting of the
Board of Directors, and the
Proposal on Election of
Independent Directors of the
10th Board of Directors at
the General Meeting of the
Board of Directors were
deliberated and approved.
Reviewed and approved the
Proposal on the Company's
Eligibility to Issue A Shares
to Specific Objects, the
Proposal on the Company's
Plan to Issue A Shares to
Specific Objects in 2023,
the Proposal on the Plan to
Issue A Shares to Specific
Second Objects in 2023, the
Extraordin
Extraordinary Proposal on Demonstration
ary July 18, July 19,
Shareholders’ 84.43% and Analysis Report on the
shareholde 2023 2023
Meeting of Plan to Issue A Shares to
rs' meeting
2023 Specific Objects in 2023,
the Proposal on the Report
on Use of Previously Raised
Funds, the Proposal on
Feasibility Analysis Report
on Use of Funds Raised by
Issuing A Shares to Specific
Objects in 2023, the
Proposal on Diluting Return
At Sight of the Company's
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Issuance of A Shares to
Specific Objects, Taking
Filling Measures and
Commitments of Relevant
Subjects in 2023, the
Proposal on Shareholders'
Return Plan of the Company
in the Next Three Years
(2023-2025), and the
Proposal on Requesting
General Meeting of
Shareholders of the
Company to Authorize
Board of Directors to
Handle Specific Matters
Related to Issuance of A
Shares to Specific Objects
Reviewed and approved the
Proposal on Land and
House Expropriation of
Subsidiaries, the Proposal
Third on Repurchase and
Extraordin
Extraordinary Cancellation of Partial
ary September October 09,
Shareholders’ 84.56% Restricted Shares in the
shareholde 28, 2023 2023
Meeting of Phase I Restricted Share
rs' meeting
2023 Incentive Plan, the Proposal
on Change of Registered
Capital of the Company and
the Proposal on Amending
the Articles of Association
Reviewed and approved the
Proposal on Electing Li
Sheng as a Non-independent
Director of the Company,
the Proposal on Electing
Yan Feng as the Supervisor
of the Company, the
Proposal on Renewing
Fourth
Extraordin Engagement of Financial
Extraordinary
ary December December Audit Institution, the
Shareholders’ 84.82%
shareholde 06, 2023 07, 2023 Proposal on Renewing
Meeting of
rs' meeting Engagement of Internal
2023
Control Audit Institution,
the Proposal on Increasing
the Estimate of Daily
Related Transactions in
2023, the Proposal on
Repurchase and
Cancellation of Partial
Restricted Shares in the
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Phase I Restricted Share
Incentive Plan, the Proposal
on Change of Registered
Capital of the Company and
the Proposal on Amending
the Articles of Association
2. Preferred shareholders with resumed voting rights request to convene an extraordinary
shareholders' meeting
□Applicable Not applicable
V. Directors, Supervisors and Senior Executives
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1. Basic information
Number Number
Number of
of of Number of
Shares Other
Shares Shares Shares Reasons for
Start Ending Held at the Increase
Gende Ag Employme Increase Reduce Held at the the Increase
Name Position Date of Date of Beginning /Decrea
r e nt Status d in the d in the End of the or Decrease
Tenure Tenure of the se
Current Current Period of Shares
Period (share)
Period Period (share)
(share)
(share) (share)
Chairman Cancellation
Hu Departure April 23, October 30,
Male 59 of the 334,331 110,329 224,002 through
Hanjie from office 2023 2023
Board repurchase
Chairman Cancellation
October April 23,
Wu Bilei Male 53 of the In-service 228,552 75,422 153,130 through
30, 2023 2026
Board repurchase
Decembe Cancellation
April 23,
Li Sheng Male 47 Director In-service r 06, 192,778 63,617 129,161 through
2026
2023 repurchase
Cancellation
Zhang June 23, March 08,
Male 51 Director In-service 228,493 75,403 153,090 through
Guohua 2020 2024
repurchase
Septembe
Bi April 23,
Male 51 Director In-service r 15,
Wenquan 2026
2021
Li Departure April 29, October 30,
Male 51 Director
Hongjian from office 2022 2023
Septembe
Liu April 23,
Male 60 Director In-service r 16,
Yanchang 2026
2022
Han Male 57 Independe In-service April 22, April 23,
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Fangming nt director 2020 2026
Mao Independe April 22, April 23,
Male 62 In-service
Zhihong nt director 2020 2026
Dong
Independe April 22, April 23,
Zhonglan Male 59 In-service
nt director 2020 2026
g
Chairman
Septembe
Wang of Board of Departure October 30,
Male 60 r 15,
Yanjun Supervisor from office 2023
2021
s
Chairman
Decembe
of Board of January 17,
Yan Feng Male 57 In-service r 29,
Supervisor 2024
2023
s
Xu Employee April 22, April 23,
Male 59 In-service
Haigen Supervisor 2020 2026
Wang Employee April 22, April 23,
Male 55 In-service
Lijun Supervisor 2020 2026
Duan Employee April 22, April 23,
Male 53 In-service
Yinghui Supervisor 2020 2026
Ren Employee April 22, March 08,
Male 40 In-service
Ruijie Supervisor 2020 2024
Septembe
General Departure October 30,
Wu Bilei Male 53 r 17,
Manager from office 2023
2021
General October April 23,
Li Sheng Male 47 In-service
Manager 30, 2023 2026
Deputy
Departure October October 30,
Li Sheng Male 47 General
from office 19, 2022 2023
Manager
Yu Executive Novembe April 23,
Male 51 In-service
Changxin Deputy r 28, 2026
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General 2022
Manager
Deputy Cancellation
October April 23,
Ji Yizhi Male 54 General In-service 192,778 63,617 129,161 through
19, 2022 2026
Manager repurchase
Deputy Cancellation
Tian October March 08,
Male 51 General In-service 192,778 63,617 129,161 through
Haifeng 19, 2022 2024
Manager repurchase
Secretary
Cancellation
Wang of the July 23, April 23,
Male 40 In-service 192,778 63,617 129,161 through
Jianxun Board of 2020 2026
repurchase
Directors
Total -- -- -- -- -- -- 1,562,488 0 0 515,622 1,046,866 --
Whether any director or supervisor during term of office leaves office or any senior executive is dismissed in the reporting period
Yes □No
(1) On October 31, 2023, the Company disclosed the Announcement on Changing the Chairman of the Board, Director, and General Manager of the
Company and the Announcement on Changing the Supervisor of the Company. Mr. Hu Hanjie applied to resign from his posts as the Chairman of the
10th Board of Directors, the Director and a member of the Special Committee of the Board of Directors due to job arrangements. Mr. Li Hongjian
applied to resign from his posts as a director of the 10th Board of Directors and a member of the Special Committee of the Board of Directors due to job
changes. Mr. Wang Yanjun applied to resign from his posts as the Chairman and Supervisor of the 10th Board of Supervisors due to reaching the
statutory retirement age. Mr. Wu Bilei applied to resign from his post as the General Manager of the Company due to job changes, and he will hold the
post of the Chairman of the Board after resigning.
(2) On January 18, 2024, the Company disclosed the Announcement on Changing the Supervisor of the Company. Mr. Yan Feng applied to resign from
his posts as the Chairman and the Supervisor of the 10th Board of Supervisors of the Company due to personal reasons. On March 11, 2024, the
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Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Company separately disclosed the Announcement on Resignation of Directors and Senior Executives and the Announcement on Resignation of
Supervisors. Mr. Zhang Guohua applied to resign from his post as a Director of the Company due to job changes. Mr. Ren Ruijie applied to resign from
his post as the Supervisor of the Company due to job changes. Mr. Tian Haifeng applied to resign from his post as the Deputy General Manager of the
Company due to job changes.
For details, please refer to the announcements by the Company in the Securities Times, China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
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Changes in Directors, Supervisors and Senior Management of the Company
Applicable □Not applicable
Name Position Type Date Reason
Chairman of the Departure
Hu Hanjie October 30, 2023 Job arrangements
Board from office
Chairman of the
Wu Bilei Elected October 30, 2023
Board
December 06,
Li Sheng Director Elected
2023
Departure
Li Hongjian Director October 30, 2023 Job changes
from office
Wang Chairman of Board Departure
October 30, 2023 Statutory retirement
Yanjun of Supervisors from office
Resigned on January 17,
Chairman of Board December 29,
Yan Feng Elected 2024 due to personal
of Supervisors 2023
reasons
Departure
Wu Bilei General Manager October 30, 2023 Job changes
from office
Li Sheng General Manager Appointed October 30, 2023
Deputy General Departure
Li Sheng October 30, 2023 Job changes
Manager from office
2. Employment status
Professional background, main work experience and main responsibilities of current directors,
supervisors and senior executives of the Company
Director:
Mr. Wu Bilei is currently the Chairman of the Board and Secretary of the Party Committee of
FAW Jiefang, the Executive Director and Secretary of the Party Committee of Jiefang Limited. He
has served successively as the Deputy Chief Engineer of the Technical Center of China FAW Group
Corporation and Deputy Director of Product Management Department of Jiefang Limited, Vice
President of Commercial Vehicle R&D Institute of Technical Center of China FAW Group
Corporation and Deputy Director of Product Management Department of Jiefang Limited, Vice
President of Commercial Vehicle Development Institute of Jiefang Business Headquarters, Vice
President of Commercial Vehicle Development Institute of Jiefang Business Headquarters and
Deputy Director of Product Management Department of Jiefang Business Headquarters (Jiefang
Company). President and Secretary of the Party Committee of Commercial Vehicle Development
Institute of Jiefang Business Headquarters, President and Secretary of the Party Committee of
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Commercial Vehicle Development Institute of Jiefang Limited, Deputy General Manager of FAW
Jiefang, the Director, General Manager and Deputy Secretary of the Party Committee of FAW
Jiefang, the General Manager and Deputy Secretary of the Party Committee of Jiefang Limited, and
the General Manager of the Medium and Heavy Vehicle Product Line of the Headquarters.
Mr. Li Sheng is currently the General Manager and Deputy Secretary of the Party Committee
of FAW Jiefang, and the General Manager and Deputy Secretary of the Party Committee of Jiefang
Limited. He has served successively as the General Manager Assistant and Director of R&D
Department of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Senior Manager of Qingdao
Vehicle Division (FAW Jiefang Qingdao Automobile Plant) of Jiefang Business Headquarters, the
Assistant to President of Commercial Vehicle Development Institute of Jiefang Limited and the
Senior Manager and Director of R&D Department of Qingdao Vehicle Division (FAW Jiefang
Qingdao Automobile Plant), the Deputy General Manager of Qingdao Vehicle Division (FAW
Jiefang Qingdao Automobile Plant) of Jiefang Limited and Assistant to President of Commercial
Vehicle Development Institute, the Vice President of Commercial Vehicle Development Institute of
Jiefang Limited and the Deputy General Manager and Director of R&D Department of Qingdao
Vehicle Division (FAW Jiefang Qingdao Automobile Plant), and the Executive Deputy General
Manager of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited,
Deputy General Manager of FAW Jiefang, Deputy General Manager of Jiefang Limited, General
Manager and Secretary of Party Committee of Qingdao Vehicle Division (FAW Jiefang Qingdao
Automobile Plant), General Manager of the Medium and Heavy Vehicle Product Line of the
Qingdao Vehicle Division, and General Manager of the Light Vehicle Product Line, etc.
Mr. Zhang Guohua is currently the Deputy Secretary of the Party Committee and Chairman of
the Labor Union of FAW Jiefang and the Deputy Secretary of the Party Committee and Chairman of
the Labor Union of Jiefang Limited. He has served successively as the Senior Manager of the
Organization and Personnel Department and Director of the Senior Manager Management Office of
China FAW Group Corporation, Senior Manager of the Organization and Personnel Department and
Senior Manager of the Social Business Management Department of China FAW Group Corporation,
Deputy General Manager (Deputy Director) of Human Resources Department (Party Committee
Cadre Department) of China FAW Group Corporation, etc.
Mr. Bi Wenquan is currently the General Manager of Production Logistics Department of FAW.
He has served successively as the Secretary of the Party Committee, Secretary of the Commission for
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Discipline Inspection, Head of the Labor Union of Tianjin FAW Xiali Automobile Co., Ltd.,
Executive Deputy Secretary of the Party Committee, Secretary of the Commission for Discipline
Inspection and Chairman of the Labor Union of FAW Tianjin Business Division, Deputy General
Manager of FAW Car, Deputy General Manager of FAW-Bestune, General Manager of FAW
Engineering and Production Logistics Department, etc.
Mr. Liu Yanchang is currently a full-time external director and convener/team leader of the
subsidiary of FAW Financial Management Department (Office of the Board of Directors). He has
served successively as the Deputy Secretary of the Party Committee, Secretary of the Commission
for Discipline Inspection and Chairman of the Labor Union of Jiefang Limited, Deputy Secretary of
the Party Committee and Chairman of the Labor Union of FAW Jiefang, Deputy Secretary of the
Party Committee, Head of the Labor Union and Chairman of the Labor Union of FAW-Volkswagen
Automobile Co., Ltd.
Mr. Han Fangming is currently the President of the Chahar Institute, a think tank on foreign
affairs and international relations, and a senior consultant to the Board of Directors of TCL
Technology Group. He is also the Vice Chairman of China Overseas-educated Scholars
Development Foundation, the Deputy Editor-in-Chief of Public Diplomacy Quarterly of CICG, the
Vice Chairman of China National Association For International Studies, the Vice Chairman of China
Southeast Asian Research Association, the Director of the National Council of the Chinese People's
Association for Friendship with Foreign Countries, and the Director of Chinese People's Institute of
Foreign Affairs. He has served successively as a member of the 10th, 11th, 12th and 13th CPPCC,
Deputy Director of the CPPCC Foreign Affairs Committee, and Director, Executive Director and
Vice Chairman of TCL Group.
Mr. Mao Zhihong is currently the Director, Professor and Doctoral Supervisor of the
Department of Accounting, School of Business and Management, Jilin University. He is also the
Vice President of Changchun Accounting Society. He has served as the Associate Professor of Jilin
University of Finance and Trade (which was renamed Changchun University of Taxation, i.e. the
current Jilin University of Finance and Economics).
Mr. Dong Zhonglang is currently the managing partner of Zhuhai Yinshan Capital Equity
Investment Management Co., Ltd. He has served successively as the Director of Linde (Xiamen)
Forklift Co., Ltd., the General Manager of Shanghai Oulin Logistics Co., Ltd., the Logistics Director
of Weichai Power Group, and the partner of Eastern Bell Capital (Shanghai).
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Supervisor:
Mr. Yan Feng has served successively as the Director of the Overseas Business Unit of FAW
Group, the Chairman of the Board and Secretary of the Party Committee of FAW Import and Export
Company, the General Manager of the Overseas Business Unit of FAW Group and the Chairman of
the Board and Secretary of the Party Committee of FAW Import and Export Company; the General
Manager and Deputy Secretary of the Party Committee of FAW Import and Export Company, the
Secretary of the Party Committee and Chairman of the Labor Union of FAW Group, the General
Legal Advisor and General Manager of the Audit and Legal Department of FAW Group, etc.
Mr. Xu Haigen is currently a Senior Executive Manager of the Powertrain Division of Jiefang
Limited. He has served successively as the Deputy General Manager of the Wuxi Diesel Engine
Branch of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Wuxi Diesel Engine
Factory of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Engine Division of
Jiefang Business Headquarters, and the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Engine Division of
Jiefang Limited
Mr. Wang Lijun is currently the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Qingdao Vehicle
Division (FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited. He has served successively
as the Deputy Secretary of the Party Committee (who is responsible for presiding over the work), the
Secretary of the Commission for Discipline Inspection and the Chairman of the Labor Union of the
Distribution Center of FAW Car, the Manager of the Distribution Plant of FAW-Volkswagen
Automobile Co., Ltd., the Director of the Powertrain Division of FAW-Volkswagen Automobile Co.,
Ltd. and the Manager of the Changchun Distribution Plant, the Director of the Distribution Center
and Secretary of the Party Committee of FAW Car, and the Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission and Chairman of the Labor Union of the
Transmission Division of Jiefang Limited, and the Deputy Secretary of the Party Committee,
Secretary of the Commission for Discipline Inspection and Head of the Labor Union of Qingdao
Vehicle Division (FAW Jiefang Qingdao Automobile Plant).
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Mr. Duan Yinghui is currently the Deputy General Manager of Qingdao Vehicle Division
(FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited, the Manager of Qingdao Factory and
the Safety Director of FAW Jiefang (Qingdao) Automotive Co., Ltd.. He has served successively as
the Deputy General Manager of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Deputy Director
of FAW Jiefang Product Management Department, the Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission and Head of the Labor Union of Qingdao Vehicle
Division (FAW Jiefang (Qingdao) Automotive Co., Ltd.) of FAW Jiefang Business Headquarters,
and the Deputy Secretary of the Party Committee, Secretary of the Discipline Inspection
Commission and Chairman of the Labor Union of FAW Jiefang Qingdao Vehicle Division (FAW
Jiefang (Qingdao) Automotive Co., Ltd.), and the Manager and Secretary of the Party Committee of
the Truck Factory of Jiefang Limited.
Mr. Ren Ruijie is currently the Director of the Party-Masses Work Department of FAW
Jiefang. He has served successively as the Acting Director and Director of the Party Committee
Organization Office of the Party Committee Work Department of Jiefang Limited, the Office
Director of the Management Department of Jiefang Limited, the Office Director of the Management
Department of FAW Jiefang Business Headquarters (FAW Jiefang), the Director of Party Building
Office of Party-Masses Work Department of Jiefang Limited, and the Deputy Director of Party-
Masses Work Department of Jiefang Limited (who is responsible for presiding over the work), etc.
Senior executives other than directors and supervisors:
Mr. Yu Changxin is currently the Executive Deputy General Manager of FAW Jiefang. and the
Executive Deputy General Manager of Jiefang Limited. He has served successively as the Deputy
General Manager of the Marketing Headquarters (Sales Company) of FAW Jiefang Business
Headquarters (Jiefang Company), the Deputy General Manager of Qingdao Business Division and
Head of Marketing Service Department of Jiefang Company, the Deputy Director of Marketing
Headquarters (Deputy General Manager of FAW Jiefang Automobile Sales Company) of Jiefang
Limited. and the Deputy General Manager of Qingdao Vehicle Division (FAW Jiefang Qingdao
Automobile Plant), the General Manager of the Commercial Vehicle Overseas Marketing
Department of Jiefang Limited. and Deputy General Manager of China FAW Group Import &
Export Co., Ltd., the General Manager and Deputy Secretary of the Party Committee of China FAW
Group Import & Export Co., Ltd., the Executive Deputy General Manager of FAW Jiefang, the
Deputy General Manager of Jiefang Limited and the General Manager of the Overseas Product Line.
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Mr. Ji Yizhi is currently the Deputy General Manager of FAW Jiefang, and the Deputy General
Manager and General Counsel and CCO of Jiefang Limited. He has served successively as the
Executive Deputy General Manager of the Engine Division of Jiefang Limited and the General
Manager and Secretary of the Party Committee of FAW Jiefang Dalian Diesel Engine Co., Ltd., the
General Manager and Secretary of the Party Committee of the Bus Division of Jiefang Limited (the
Manager and Secretary of the Party Committee of the Bus Factory), the General Manager and
Secretary of the Party Committee of the Bus Division of Jiefang Limited (the Manager and Secretary
of the Party Committee of the Bus Factory) and the Deputy Director of the Marketing Headquarters
(the Deputy General Manager of FAW Jiefang Sales Company), and the General Manager of New
Energy Division and the General Manager of Bus Division of Jiefang Limited, the Deputy General
Manager of FAW Jiefang, the Deputy General Manager, General Counsel and CCO of Jiefang
Limited, and the General Manager and Secretary of the Party Committee of New Energy Vehicle
Product Line (New Energy Business Division), etc..
Mr. Tian Haifeng is currently the Deputy General Manager of FAW Jiefang and the Deputy
General Manager of Jiefang Limited. He has served successively as the Director of the Procurement
Department of Jiefang Business Headquarters (Jiefang Limited), the Director of the Procurement
Department of Jiefang Limited, and the Deputy General Manager of Qingdao Vehicle Division
(FAW Jiefang Qingdao Automobile Plant) and the Manager of Qingdao Factory of Jiefang Limited.
Mr. Wang Jianxun is currently the Secretary of the Board of Directors and Director of the
Capital Operation Department of FAW Jiefang. He has served successively as the Deputy Office
Director and Office Director of the Board of Directors of TCL Group Co., Ltd., the Deputy General
Manager of Shenzhen Create Century Machinery Co., Ltd., etc.
Status of post held in the firm of shareholders
Applicable □Not applicable
Whether
Start Ending Remuneration and
Name of Name of Position in the
Date of Date of Allowance are
Employees Shareholder Shareholder
Tenure Tenure Received from the
Shareholder
CHINA FAW General Manager of
Bi February
GROUP CO., Production Logistics Yes
Wenquan 01, 2023
LTD. Department
Liu CHINA FAW Full-time external July 01,
Yes
Yanchang GROUP CO., director, convener/team 2022
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LTD. leader of subsidiary of
Financial Management
Department (Office of
the Board of Directors)
Position in other organizations
Applicable □Not applicable
Whether
Remuneration and
Ending
Name of Name of Other Position in Other Start Date Allowance are
Date of
Employees Organizations Organizations of Tenure Received from
Tenure
Other
Organizations
Chahar Institute,
a think tank on
Han October
foreign affairs President Yes
Fangming 01, 2009
and international
relations
Director, Professor
and Doctoral
Supervisor of the
Mao November
Jilin University Department of Yes
Zhihong 01, 2000
Accounting, School
of Business and
Management
Zhuhai Yinshan
Capital Equity
Dong May 01,
Investment Managing Partner Yes
Zhonglang 2017
Management Co.,
Ltd.
Penalties imposed by securities regulatory authorities in the past three years on directors, supervisors
and senior executives currently in office or leaving office in the reporting period
□Applicable Not applicable
3. Remuneration of Company's Directors, Supervisors and Senior Executives
Decision-making procedure, determination basis and actual payment of remuneration for directors,
supervisors and senior executives
Only the remuneration for directors (excluding independent directors)
Decision-Making Process of
and supervisors currently in office shall be paid, and the remuneration
Compensation of Directors,
for directors and supervisors who have left the office shall be paid by
Supervisors and Senior
their employers. The remuneration paid by the Company to relevant
Management
directors, supervisors and senior executives shall be determined by the
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Board of Directors.
For directors (except independent directors), supervisors and senior
executives who receive remuneration from the Company, the annual
Decision Basis of
salary system is implemented, mainly including annual base salary and
Compensation of Directors,
annual performance salary. The annual performance salary is
Supervisors and Senior
determined according to business performance, performance assessment
Management
and performance and other indicators of the Company in the reporting
period.
In the reporting period, a total of CNY 450,000 (tax inclusive) of
allowances were paid to independent directors, and reasonable expenses
(including travel expenses, office expenses, training expenses, etc.)
Remuneration Paid to required to attend the Company's board of directors, shareholders'
Directors, Supervisors and meeting and exercise their functions and powers in accordance with
Senior Management relevant regulations can be reimbursed by the Company on actual
circumstances. The remuneration paid to other directors, supervisors
and senior executives other than the above personnel is CNY
15,575,900 (tax inclusive).
Compensations of Directors, Supervisors and Senior Executives of the Company in the Reporting
Period
Unit: CNY 10,000
Whether
Total Pre-tax remuneration
Employment Compensation is obtained
Name Gender Age Position
Status Received from from related
the Company parties of the
Company
Chairman of the Departure from
Hu Hanjie Male 59 161.98 No
Board office
Chairman of the
Wu Bilei Male 53 In-service 129.09 No
Board
Director and
Li Sheng Male 47 General In-service 151.24 No
Manager
Zhang
Male 51 Director In-service 128.12 No
Guohua
Bi
Male 51 Director In-service Yes
Wenquan
Li Departure from
Male 51 Director Yes
Hongjian office
Liu
Male 60 Director In-service Yes
Yanchang
Han Independent
Male 57 In-service 15 No
Fangming director
Mao Independent
Male 62 In-service 15 No
Zhihong director
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Dong Independent
Male 59 In-service 15 No
Zhonglang director
Chairman of
Wang Departure from
Male 60 Board of Yes
Yanjun office
Supervisors
Chairman of
Yan Feng Male 57 Board of In-service Yes
Supervisors
Employee
Xu Haigen Male 59 In-service 105.58 No
Supervisor
Wang Employee
Male 55 In-service 118.36 No
Lijun Supervisor
Duan Employee
Male 53 In-service 151.01 No
Yinghui Supervisor
Employee
Ren Ruijie Male 40 In-service 110.24 No
Supervisor
Executive
Yu
Male 51 Deputy General In-service 68.82 No
Changxin
Manager
Deputy General
Ji Yizhi Male 54 In-service 135.32 No
Manager
Tian Deputy General
Male 51 In-service 122.52 No
Haifeng Manager
Secretary of the
Wang
Male 40 Board of In-service 175.31 No
Jianxun
Directors
Total -- -- -- -- 1,602.59 --
Other situations
□Applicable Not applicable
VI. Performance of Duties by Directors in the Reporting Period
1. Information of the Board of Directors during the reporting period
Date of
Session Date Meeting Resolution
Disclosure
Reviewed and approved the Proposal on Estimating
Daily Related Transaction Amount in 2023, the
Proposal on Estimating the Amount of Financial
The 31st
Business with First Automobile Finance Co., Ltd. in
Meeting of February February
2023, the Proposal on Signing the Financial Services
the 9th Board 10, 2023 11, 2023
Framework Agreement with First Automobile Finance
of Directors
Co., Ltd. and the Proposal on Convening the First
Extraordinary General Meeting of Shareholders in
2023.
The 32nd March 31, April 01, Reviewed and approved the 2022 Business Summary
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Meeting of 2023 2023 and 2023 Business Plan, the 2022 Work Report of the
the 9th Board Board of Directors, the 2022 Final Financial Account
of Directors and 2023 Financial Budget, the 2022 Annual Report
and Its Summary, the Proposal on Asset Impairment
Provision in 2022, the Asset Impairment Test Report on
Major Asset Restructuring of the Company, the Report
on the Risk Assessment of First Automobile Finance
Co., Ltd., the 2022 Social Responsibility Report and
ESG Report, the 2022 Profit Distribution Plan, the
2022 Internal Control Evaluation Report, the 2022
Work Report on Rule of Law Construction and
Compliance Management, the 2022 Internal Audit
Report, the 2022 Work Report on Internal Control
Construction, the Proposal on Unfulfilling Conditions
for Releasing Restricted Sales in the Second Period of
Releasing Restricted Shares Firstly Granted and
Conditions for the First Period of Releasing Restricted
Shares Reserved for Granting in Phase I Restricted
Share Incentive Plan and Repurchase and Cancellation
of Some Restricted Shares, the Proposal on Change of
Registered Capital of the Company, the Proposal on
Amending the Articles of Association, the Proposal on
Amending Special Management System for Directors,
Supervisors and Senior Executives to Hold and Buy
Shares of the Company, the Proposal on Election of
Non-independent Directors of the Tenth Board of
Directors by the Board of Directors, the Proposal on
Election of Independent Directors of the Tenth Board
of Directors by the Board of Directors, the Proposal on
Convening 2022 Annual Shareholders' Meeting, the
Conveying Major Decision-making Arrangements and
Guiding Principles of Important Meetings of the CPC
Central Committee, the State Council and the SASAC,
and listened to the Report on the Implementation of
Resolutions of the Board of Directors, the Report on
the Implementation of Authorization of the Board of
Directors, the Report on the Implementation of
Strategic Plans of the Company, the Report on Audit of
Accounting Firm in 2022 and the Report on Work of
Independent Directors in 2022.
Reviewed and approved the Proposal on Electing
Chairman of the Company, the Proposal on Electing
Members of the Strategy Committee of the Board of
The 1st
Directors, the Proposal on Electing Members of the
Meeting of
April 24, April 25, Audit and Risk Control Committee of the Board of
the 10th
2023 2023 Directors, the Proposal on Electing Members of the
Board of
Remuneration and Appraisal Committee of the Board
Directors
of Directors, the Proposal on Appointing General
Manager of the Company, the Proposal on Appointing
Executive Deputy General Manager of the Company,
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the Proposal on Appointing Deputy General Manager
of the Board of Directors, the Proposal on Appointing
Secretary of the Board of Directors and the Proposal on
Appointing Securities Affairs Representative of the
Company.
Reviewed and approved the Report on the First Quarter
of 2023, the Proposal on Releasing Restriction on Sales
The 2nd of Part of Restricted Shares, and the Conveying Major
Meeting of Decision-making Arrangements and Guiding Principles
April 25, April 28,
the 10th of Important Meetings of the CPC Central Committee,
2023 2023
Board of the State Council and the SASAC, and listened to the
Directors Report on Operation in the First Quarter of 2023 and
the Report on the Implementation of Resolutions of the
Board of Directors in the First Quarter of 2023.
Reviewed and approved the 2022 Performance
Evaluation Results of Senior Executives, 2022
Performance Assessment and Remuneration
The 3rd
Encashment Plan for Senior Executives, 2023 Total
Meeting of
May 29, Salary and Labor Cost Plan, 2023 Performance
the 10th
2023 Appraisal Indicator Plan, 2023 Performance
Board of
Assessment Indicator Plan for Senior Executives, 2023
Directors
Base Salary Plan for Senior Executives, and
Management Measures for Authorization of Board of
Directors of FAW Jiefang Group Co., Ltd. (Trial).
Reviewed and approved the Proposal on the
Company's Eligibility to Issue A Shares to Specific
Objects, the Proposal on the Company's Plan to Issue A
Shares to Specific Objects in 2023, the Proposal on the
Plan to Issue A Shares to Specific Objects in 2023, the
Proposal on Demonstration and Analysis Report on the
Plan to Issue A Shares to Specific Objects in 2023, the
Proposal on the Report on Use of Previously Raised
The 4th
Funds, the Proposal on Feasibility Analysis Report on
Meeting of
July 19, June 20, Use of Funds Raised by Issuing A Shares to Specific
the 10th
2023 2023 Objects in 2023, the Proposal on Diluting Sight Return
Board of
of the Company's Issuance of A Shares to Specific
Directors
Objects, Taking Filling Measures and Commitments of
Relevant Subjects in 2023, the Proposal on
Shareholders' Return Plan of the Company in the Next
Three Years (2023-2025), the Proposal on Requesting
Shareholders' Meeting of the Company to Authorize
Board of Directors to Handle Specific Matters Related
to Issuance of A Shares to Specific Objects, and
Proposal for Convening Shareholders' Meeting.
Reviewed and approved the Business Summary of First
The 5th
Half and Business Plan for Second Half of 2023, the
Meeting of
August 29, August 31, Mid-year Adjustment Plan for Equity Investment Plan
the 10th
2023 2023 in 2023, the Mid-year Adjustment Plan for Fixed
Board of
Assets Investment Plan in 2023, the Proposal on Land
Directors
and House Expropriation of Subsidiaries, the Semi-
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Annual Report of 2023 and Its Summary, the Proposal
on Risk Assessment Report of First Automobile
Finance Co., Ltd., the Proposal on Asset Impairment
Provision in First Half of 2023, the Semi-Annual Work
Report of Internal Audit in 2023, the Proposal on the
Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan,
the Proposal on Change of Registered Capital of the
Company, the Proposal on Amending the Articles of
Association, the Proposal on Convening the Third
Extraordinary Shareholders' Meeting in 2023, the
Conveying Major Decision-making Arrangements and
Guiding Principles of Important Meetings of the CPC
Central Committee, the State Council and the SASAC,
and listened to the Report on the Implementation of
Resolutions of the Board of Directors, the Report on
the Implementation of Authorization of the Board of
Directors and the Report on the Implementation of
Strategic Plans of the Company.
Reviewed and approved the Medium and Long-Term
Development Plan of the Company (2024-2030), the
Report of the Third Quarter of 2023, the Proposal on
Electing Chairman of the Company, the Proposal on
The 6th Electing Li Sheng as Non-independent Director of the
Meeting of Company, the Proposal on Appointing General
October October 31,
the 10th Manager of the Company, the Conveying Major
30, 2023 2023
Board of Decision-making Arrangements and Guiding Principles
Directors of Important Meetings of the CPC Central Committee,
the State Council and the SASAC, and listened to the
Report on Operation in the Third Quarter of 2023 and
the Report on Implementing Resolutions of Meeting of
the Board of Directors in the Third Quarter of 2023.
Reviewed and approved the Proposal on Renewing the
Engagement of Financial Audit Institution, Proposal on
Renewing the Engagement of Internal Control Audit
The 7th Institution, the Proposal on Increasing the Estimate of
Meeting of Daily Related Transactions in 2023, the Proposal on
November November
the 10th the Repurchase and Cancellation of Partial Restricted
20, 2023 21, 2023
Board of Shares in the Phase I Restricted Share Incentive Plan,
Directors the Proposal on Change of Registered Capital of the
Company, the Proposal on Amending the Articles of
Association and the Proposal on Convening the Fourth
Extraordinary Shareholders' Meeting in 2023.
The 8th
Meeting of
December December Reviewed and approved the Proposal on Increasing the
the 10th
29, 2023 30, 2023 Estimate of Daily Related Transactions in 2023.
Board of
Directors
86
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2. Attendance of Directors at the Meeting of the Board of Directors and Shareholders’ Meeting
Attendance of Directors at the Meeting of the Board of Directors and the Shareholders’ Meeting
Number Number Number Failure to
of of Number of of Attend the
Meeting Meeting Number of Meetings Absence Meeting of
s of the s of the Meetings of of the s from the Board
Number of
Board of Board the Board of Board of the of
Name of Shareholder
Director of Directors Directors Meeting Directors
Director s’ Meetings
s to be Director Attended via Attended of the in Person
Attended
Attende s Communicati by Board for Two
d in the Attende on Entrustme of Consecuti
Reportin d in nt Director ve Times
g Period Person s or Not
Hu
8 4 4 0 0 No 2
Hanjie
Wu Bilei 10 4 6 0 0 No 5
Li Sheng 1 0 1 0 0 No 0
Zhang
10 3 6 1 0 No 4
Guohua
Bi
10 2 6 2 0 No 1
Wenquan
Li
8 4 4 0 0 No 2
Hongjian
Liu
Yanchan 10 4 6 0 0 No 5
g
Han
Fangmin 10 3 6 1 0 No 4
g
Mao
10 4 6 0 0 No 5
Zhihong
Dong
Zhonglan 10 4 6 0 0 No 4
g
Explanation on two consecutive absences from the Meeting of the Board of Directors in person: none
3. Objections Raised by Directors on Relevant Matters of the Company
Whether the directors raise objections to relevant matters of the Company
□Yes No
In the reporting period, the directors did not raise any objection to the relevant matters of the
Company.
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4. Additional Description of Performance of Duties by Directors
Whether the directors' relevant suggestions to the Company have been adopted
Yes □No
Explanation of Directors on Adoption or Failure to Adopt Relevant Suggestions to the Company
In 2023, all directors of the Company worked in strict accordance with the Company Law,
Securities Law, the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the
Articles of Association and other laws and regulations, and performed their duties faithfully and
diligently in a responsible attitude towards all shareholders. Actively attended the meetings of the
Board of Directors and the Shareholders' Meeting, carefully reviewed proposals, and put forward
professional opinions and suggestions on the development strategy, regular reports, related
transactions and other matters during the reporting period, so as to safeguard the legitimate rights and
interests of the Company and shareholders and ensure the standard operation and sustainable
development of the Company.
VII. Conditions of Special Committees under the Board of Directors in the Reporting Period
Important
Number Comment Other Details
Name of of s and Performan of
Members Date Contents
Committee Meetin Suggestio ce of Objectio
gs Held ns Put Duties ns
Forward
Reviewed
the 2022
Financial
Audit Report
of the
Mao Company,
Audit and Zhihong, the 2022 All
Risk Han March Internal proposals
3 N/A
Control Fangming 20, 2023 Control were
Committee , Liu Evaluation agreed.
Yanchang. Report, the
2022 Work
Report on
Rule of Law
Construction
and
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Compliance
Management
, the 2022
Internal
Audit Report
and the 2022
Work Report
on Internal
Control
Construction
.
Reviewed
the First
Quarter
Report of All
April 27, 2023 and the proposals
N/A
2023 First Quarter were
Report on agreed.
Internal
Audit of
2023.
The 2023
Semi-annual
Report and
Its Summary All
August and 2023 proposals
N/A
25, 2023 Semi-annual were
Work Report agreed.
of Internal
Audit were
deliberated.
Mao
Zhihong,
Liu
Reviewed
Yanchang
the Third
and Han
Quarter
Fangming
Report of
authorized All
2023 and the
Mao October proposals
1 Third N/A
Zhihong 27, 2023 were
Quarter
to exercise agreed.
Report on
voting
Internal
rights on
Audit of
their
2023
behalf for
work
reasons.
Mao Novemb Reviewed All
Zhihong, 1 er 20, the Proposal proposals N/A
Han 2023 on were
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Fangming Renewing agreed.
, Liu the
Yanchang. Engagement
of the
Financial
Audit
Institution
and the
Proposal on
Renewing
the
Engagement
of Internal
Control
Audit
Institutions
Reviewed
the Proposal
on
Unfulfilling
Conditions
for
Releasing
Restricted
Sales in the
Second
Period of
Releasing
Restricted
Shares
Dong Firstly
Remunerati Zhonglan Granted and
Approved
on and g, Mao March Conditions
3 the N/A
Appraisal Zhihong, 31, 2023 for the First
proposal.
Committee Liu Period of
Yanchang. Releasing
Restricted
Shares
Reserved for
Granting in
Phase I
Restricted
Share
Incentive
Plan and
Repurchase
and
Cancellation
of Some
Restricted
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Shares
Reviewed
the Proposal
on Releasing
Approved
April 27, Restrictions
the N/A
2023 on Sales of
proposal.
Part of
Restricted
Shares.
The
performance
evaluation
results of
senior
executives, All
May 29, performance proposals
N/A
2023 assessment were
indicators of agreed.
senior
executives
and other
topics were
deliberated.
Reviewed
the Proposal
on the
Company's
Eligibility to
Issue A
Shares to
Specific
Objects, the
Hu
Proposal on
Hanjie,
the
Wu Bilei,
Company's
Li All
Plan to Issue
Strategy Hongjian, June 19, proposals
1 A Shares to N/A
Committee Han 2023 were
Specific
Fangming agreed.
Objects in
, Dong
2023, the
Zhonglan
Proposal on
g.
the Plan of
FAW Jiefang
Group Co.,
Ltd. to Issue
A Shares to
Specific
Objects in
2023, the
Proposal on
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Demonstrati
on and
Analysis
Report on
the Plan of
FAW Jiefang
Group Co.,
Ltd. to Issue
A Shares to
Specific
Objects in
2023, the
Proposal on
the Report of
FAW Jiefang
Group Co.,
Ltd. on Use
of
Previously
Raised
Funds, the
Proposal on
Feasibility
Analysis
Report of
FAW Jiefang
Group Co.,
Ltd. on Use
of Funds
Raised by
Issuing A
Shares to
Specific
Objects in
2023, the
Proposal on
Diluting
Return At
Sight of the
Company's
Issuance of
A Shares to
Specific
Objects,
Taking
Filling
Measures
and
Commitment
s of Relevant
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Subjects in
2023, the
Proposal on
Shareholders
' Return Plan
of the
Company in
the Next
Three Years
(2023-2025),
and the
Proposal on
Requesting
General
Meeting of
Shareholders
of the
Company to
Authorize
Board of
Directors to
Handle
Specific
Matters
Related to
Issuance of
A Shares to
Specific
Objects.
Wu Bilei,
Li The 2023
Hongjian, Mid-year
Han Adjustment
Fangming Scheme of
and Dong Equity
Zhonglan Investment
All
g. Hu Plan and
Strategy August proposals
Hanjie 1 2023 Mid- N/A
Committee 25, 2023 were
authorized year
agreed.
Wu Bilei Adjustment
to exercise Scheme of
voting Fixed Assets
rights on Investment
his behalf Plan were
for work deliberated.
reasons.
Hu Reviewed
Approved
Strategy Hanjie, October the Medium
1 the N/A
Committee Wu Bilei 27, 2023 and Long-
proposal.
and Dong term
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Zhonglan Developmen
g. Li t Plan of the
Hongjian Company
and Han (2024-2030).
Fangming
authorized
Hu Hanjie
and Dong
Zhonglan
g to
exercise
voting
rights on
their
behalf
respective
ly for
work
reasons.
VIII. Working Condition of the Board of Supervisors
Whether the Board of Supervisors has found any risks in the Company's supervision activities in the
reporting period
□Yes No
The Board of Supervisors has no objection to the supervision matters in the reporting period.
IX. Employees of the Company
1. Number, Specialty Composition and Education Level of Employees
Number of on-the-job employees of the parent company at the
158
end of the reporting period (person)
Number of on-the-job employees of main subsidiaries at the
19,846
end of the reporting period (person)
Total number of on-the-job employees at the end of the
20,004
reporting period (person)
Total number of employees receiving compensation in the
20,983
current period (person)
Number of retired employees whose expenses shall be borne by
15
the parent company and major subsidiaries (person)
Specialty composition
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Category Number (person)
Production personnel 11,739
Sales personnel 1,079
Technicians 5,925
Financial personnel 340
Administrative personnel 921
Total 20,004
Education background
Category Number (person)
Doctor's degree 63
Master's degree 1,619
Bachelor's degree 8,129
Junior college degree 4,357
High school and below 5,836
Total 20,004
2. Compensation Policy
According to the requirements of relevant national labor laws, regulations and policies, the
Company adheres to the principle of "fairness, impartiality and openness" and combines the actual
situation of the Company to continuously improve and perfect the performance salary system of the
Company. In order to fully mobilize the enthusiasm of employees and improve their work
performance, based on the post contribution salary system and oriented by value creation, the
Company controls the total salary by "salary package", links the salary distribution to the Company’s
monthly operating indicators and the employees’ performance, with a focus on the timeliness of
incentives and constraints and the matching between bonuses and contributions, and continuously
implements special rewards and annual rewards, effectively giving play to the leverage role of salary
incentives. In addition, the Company has signed labor contracts with employees in accordance with
laws and regulations, paid various social insurance such as basic endowment insurance, basic
medical insurance, work-related injury insurance and unemployment insurance as well as housing
provident funds, actively implemented supplementary endowment insurance and supplementary
medical insurance systems, established and improved welfare systems, thus protecting the legitimate
rights and interests of employees in all aspects. All the expenses of retired employees are included in
the social security system.
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3. Training Plan
In 2023, the Company's talent training and cultivation were carried out targetedly and
systematically, focusing on solving business pain points and difficulties and meeting the Company's
and employees' development needs, with the orientation towards supporting the Company's strategic
development and the goal of achieving the annual operation targets. The Company completed a total
of 6,813 training sessions throughout the year, with 258 credits per person.
First, we focused on the improvement of the core competence of employees and carried out
training according to different levels and types. In terms of leadership, we focused on the training of
management cadres, the construction of grass-roots teams, and the rapid transformation of new
managers, and continued to carry out standard leadership training plans such as the piloteer
development plan, peak climber cultivation plan, "Sailing" and "Peiyuan", and the training on
leadership improvement of China Business Executives Academy, Dalian, for more than 100 sessions
in total. For training on professional ability, we arranged professional training, technical lectures and
other training targeting at business transformation and development of the Company and the
employees' job competence, for more than 5,000 sessions. For skill training, we provided more than
700 training sessions on the improvement of job operation skills, on-site problem solving and on-site
management ability, such as standardized empowerment of operation heads and team leaders,
practice for basic skill improvement, quality defect identification, skill level identification, etc. For
certification of professional skill levels, we completed the certification of more than 100 new
certification reviewers, 50 junior workers, 160 intermediate workers, 80 senior workers, 60
technicians, and more than 20 senior technicians.
Second, we focused on the strategic transformation and development of the Company and
implemented special empowerment. In terms of digital and intelligent transformation, we arranged
full-time courses for training on transformation, targeting digital-related positions. We also provided
more than 70 training sessions on data governance, data analysis and application of digital tools. In
terms of IPD reform, we arranged workshops on the role cognition and model of PDT managers, and
the training on product planning of PDT team resource pool, main process, project management, etc.
for nearly 50 sessions. In terms of new energy, we provided nearly 40 training sessions on key
technologies of new energy, and the engine, power battery and electric control of new energy, etc. In
terms of overseas development, we provided more than 50 training sessions on international legal
affairs, finance and overseas security, overseas products and marketing strategies. In terms of
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intelligent manufacturing, we provided more than 10 training sessions on intelligent factories,
blockchain and combined optimization algorithms.
4. Labor Outsourcing
□Applicable Not applicable
X. Profit Distribution and Transfer from Capital Reserve to Share Capital of the Company
Profit distribution policies in the reporting period, especially the formulation, implementation or
adjustment of cash dividend policy
Applicable □Not applicable
On June 19, 2023, the 4th Meeting of the 10th Board of Directors of the Company reviewed and
approved the Proposal on Shareholders' Return Plan of the Company in the Next Three Years (2023-
2025), which was reviewed and approved by the Second Extraordinary Shareholders' Meeting in
2023 held on July 18, 2023. For details, please refer to the Shareholders' Return Plan of the
Company in the Next Three Years (2023-2025) published on June 20, 2023 on CNINFO
(http://www.cninfo.com.cn).
Special Description of Cash Dividend Policy
Whether the provisions of the Articles of Association or the requirements of resolutions of
Yes
the Shareholders’ Meeting are met:
Whether the dividend standard and proportion are definite and clear: Yes
Whether the relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors have fulfilled their duties and played their due roles: Yes
In case no cash dividends are distributed, we shall disclose the specific reasons and the
Yes
subsequent actions to be taken to improve the investor's return level:
Whether the minority shareholders have the opportunity to fully express their opinions and
Yes
demands, and whether their legitimate rights and interests are fully protected:
Whether the conditions and procedures are compliant and transparent when the cash dividend
N/A
policy is adjusted or changed:
The Company made profits in the reporting period and the parent company had a positive profit
available for shareholders, but no cash dividend distribution plan was proposed
□Applicable Not applicable
Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting Period
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Applicable □Not applicable
Number of bonus shares given per 10 shares (share) 0
Number of distributed dividends per 10 shares (CNY) (tax
1.50
inclusive)
Share capital base for distribution plan (share) 4,636,485,668
Amount of cash dividends (CNY) (tax inclusive) 695,472,850.20
Amount of cash dividends paid by other means (such as
0.00
share repurchase) (CNY)
Total amount of cash dividends (including by other means)
695,472,850.20
(CNY)
Distributable profits (CNY) 7,083,209,394.76
Proportion of total amount of cash dividends (including by
100%
other means) in the total amount for profit distribution
Cash dividends
Others
Note on details of schedule of profit distribution or transfer of capital reserve to equity
Grant Thornton Certified Public Accountants (Special General Partnership) confirmed after audit
that the Company's parent company realized a net profit of CNY 321,587,144.29 in 2023, plus the
undistributed profit of CNY 6,793,780,964.90 in the previous year, and less the provision for
statutory surplus reserve of CNY 32,158,714.43 this year, the actual profit available for
distribution for shareholders this year is CNY 7,083,209,394.76.
The 2023 annual profit distribution plan of the Company is as follows: Based on the
4,636,485,668 shares of the Company, a cash dividend of CNY 1.5 (tax inclusive) will be
distributed to all shareholders for every 10 shares they hold; the cash dividends to be distributed
will reach CNY 695,472,850.20 (tax inclusive), and the remaining undistributed profits will be
carried forward to the next accounting year. The Company does not convert its capital reserves
into share capital.
For any change to the total share capital of the Company due to the equity incentive plan before
the implementation of the distribution plan, the cash dividend of CNY 1.50 (tax inclusive) will be
distributed to all shareholders per 10 shares based on the total share capital registered on the date
of record when the profit distribution plan is implemented in the future, and the specific amount
will be subject to the actual distribution.
This distribution plan is subject to the review and approval of the 2023 annual shareholders'
meeting before implementation.
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan
or Other Employee Incentive Measures
Applicable □Not applicable
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1. Equity incentive
(1) On November 13, 2020, the Company held the 9th meeting of the 9th Board of Directors
and the 8th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Abstract and
other proposals. The relevant proposals were deliberated and adopted at the First Extraordinary
Shareholders’ Meeting of 2021 held by the Company on January 11, 2021.
(2) On January 15, 2021, the Company held the 12th Session of the 9th Meeting of the Board of
Directors and the 11th Session of the 9th Meeting of the Board of Supervisors respectively, and
reviewed and approved the Proposal on Adjusting the List of the First Batch of Incentive Objects and
the Number of Grants of the First Restricted Share Incentive Plan and the Proposal on Granting
Restricted Shares to the Incentive Objects of the First Restricted Share Incentive Plan for the First
Time. On February 1, 2021, the Company disclosed the Announcement on the Completion of the
First Grant Registration of Phase I Restricted Share Incentive Plan, in which the restricted shares in
the incentive plan were first granted to 319 persons, totaling 40,987,700 shares, with a grant price of
CNY 7.54 per share. The restricted shares granted were listed on February 5, 2021.
(3) On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and
the 19th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the Proposal on
Granting Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan to
Incentive Objects, Proposal on Adjusting the Repurchase Price of Restricted Shares in the Phase I
Restricted Share Incentive Plan, Proposal on Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan and other relevant proposals. On January 6,
2022, the Company disclosed the Announcement on Completion of Registration of Grant of
Reserved Part of Restricted Shares in Phase I Restricted Share Incentive Plan, in which reserved part
of restricted shares in the incentive plan were granted to 33 persons, totaling 3,721,600 shares, with a
grant price of CNY 6.38 per share. The restricted shares granted were listed on January 10, 2022. On
January 17, 2022, the Company disclosed the Announcement on Completion of Repurchase and
Cancellation of Some Restricted Shares, in which all restricted shares granted to 2 incentive objects
but not yet released, totaling 260,857 shares, with a repurchase price of CNY 7.04 per share.
(4) On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and
the 23rd meeting of the 9th Board of Supervisors respectively to deliberate and adopt the Proposal on
Adjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share Incentive Plan
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and Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan. On September 16, 2022, the relevant repurchase and cancellation proposals
were deliberated and adopted at the Second Extraordinary Shareholders’ Meeting of 2022 held by the
Company. On November 14, 2022, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares, in which all or some restricted shares
granted to 6 incentive objects but not yet released were repurchased and canceled, totaling 789,711
shares, with a repurchase price of CNY 6.39/share.
(5) On October 28, 2022, the Company held the 28th Meeting of the 9th Board of Directors and
the 24th Meeting of the 9th Board of Supervisors respectively to deliberate and approve the Proposal
on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive
Plan. The Proposal was subsequently deliberated and approved at the 3rd Extraordinary Shareholders’
Meeting of the Company in 2022. It was agreed to repurchase and cancel a total of 1,359,247
restricted stocks, either in full or in part, that were granted but not yet released from restrictions to
the original 11 incentive recipients; on January 17, 2023, The Company issued the Announcement on
Completion of Repurchase and Cancellation of Some Restricted Shares on CNINFO
(http://www.cninfo.com.cn).
(6) On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directors
and the 26th meeting of the 9th Board of Supervisors respectively to deliberate and approve the
Proposal on the Achievement of Unlocking Conditions in the First Release Period of the Restricted
Shares Firstly Granted in the Phase I Restricted Incentive Plan, agreeing that the Company handled
the unlocking of 13,042,347 shares of 311 incentive objects meeting the unlocking conditions during
the first release period of restricted shares granted for the first time in accordance with the relevant
provisions of the restricted share incentive plan. On February 3, 2023, the Company disclosed the
Indicative Announcement on Listing and Circulation of Unlocked Shares in the First Release Period
of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan on CNINFO
(http://www.cninfo.com.cn), and the unlocked restricted shares will be listed and circulated on
February 6, 2023. At the 30th Meeting of the 9th Board of Directors and the 26th Meeting of the 9th
Board of Supervisors, the Company reviewed and approved the Proposal on the Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed to
repurchase and cancel all or part of 723,435 restricted stock that had been granted to the original six
incentive targets but not lifted the restriction for sales. On April 28, 2023, the Company issued the
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Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares on
CNINFO (http://www.cninfo.com.cn).
(7) On March 31, 2023, the Company held the 32nd meeting of the 9th Board of Directors and
the 28th meeting of the 9th Board of Supervisors respectively, deliberated and approved the Proposal
on Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase I
Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the First
Release Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted
Sales and Repurchase and Cancellation of Some Restricted Shares, agreeing to repurchase and cancel
327 restricted shares of incentive objects that do not meet the release conditions. The total number of
shares repurchased was 13,909,890. The Proposal was deliberated and approved at the Company's
2022 Annual Shareholders’ Meeting held on April 24, 2023. On June 30, 2023, the Company issued
the Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares on
CNINFO (http://www.cninfo.com.cn).
(4) On April 27, 2023, the Company held the 2nd meeting of the 10th Board of Directors and
the 2nd meeting of the 10th Board of Supervisors respectively to deliberate and approve the Proposal
on Lifting the Trading Restrictions of Partial Restricted Shares. A total of 4 incentive objects met the
conditions for lifting the trading restrictions this time, and 64,954 shares were lifted. On May 15,
2023, the Company issued the Prompt Announcement on Lifting Sales Restrictions and Listing
Circulation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn), and the unlocked
restricted shares were listed and circulated on May 16, 2023.
(9) On August 29, 2023, the Company held the 5th Meeting of the 10th Board of Directors and
the 4th Meeting of the 10th Board of Supervisors respectively, and deliberated and adopted the
Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan, which was reviewed and approved at the Third Extraordinary Shareholders'
Meeting in 2023, and agreed to repurchase and cancel all or part of 333,855 restricted stocks that had
been granted to the original 8 incentive targets but had not been lifted the restriction for sales. On
November 29, 2023, the Company published the Announcement on Completion of Repurchase and
Cancellation of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(10) On November 20, 2023, the Company held the 7th Meeting of the 10th Board of Directors
and the 6th Meeting of the 10th Board of Supervisors respectively, and deliberated and adopted the
Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
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Share Incentive Plan, which was reviewed and approved at the Fourth Extraordinary Shareholders'
Meeting in 2023, and agreed to repurchase and cancel all or part of 512,807 restricted stocks that
have been granted to 10 incentive targets but have not been lifted the restriction for sales. On March
28, 2024, the Company published the Announcement on Completion of Repurchase and Cancellation
of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(11) On March 28, 2024, the Company held the 11th Meeting of the 10th Board of Directors
and the 10th Meeting of the 10th Board of Supervisors respectively, and reviewed and approved the
Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period of
Restricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved for
Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of Some
Restricted Shares, and agreed to buy back and cancel the restricted stocks of 299 objects failing to
fulfill the conditions for lifting the restriction for sales, 12,621,954 shares in total.
For details of the above proposals, please refer to the relevant announcements published by the
Company in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
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Equity Incentives Obtained by Directors and Senior Executives of the Company
Applicable □Not applicable
Unit: share
Number Number
Number Numb
Number Exercise of of Number
Number of Number er of Market Numbe
of Price of Restrict Newly of
of Stock Newly of Stock Price at r of Grant
Exercis Exercised ed Granted Restrict
Options Granted Exercisa Optio the End of Unlock Price of
ed Shares in Shares Restrict ed
Held at Stock ble ns the ed Restricted
Name Position Shares the Held at ed Shares
the Options Shares in Held Reporting Shares Shares
in the Reporting the Shares Held at
Beginni in the the at the Period in the (CNY/sha
Reporti Period Beginni in the the End
ng of Reporti Reportin End of (CNY/sha Current re)
ng (CNY/sha ng of Reporti of the
the Year ng g Period the re) Period
Period re) the ng Period
Period Period
Period Period
Chairm
Wu an of
8.50 228,552 75,422 7.54 77,708
Bilei the
Board
General
Li
Manage 8.50 192,778 63,617 7.54 65,544
Sheng
r
Zhang
Directo
Guoh 8.50 228,493 75,403 7.54 77,687
r
ua
Deputy 65,544
Ji General
8.50 192,778 63,617 7.54
Yizhi Manage
r
Tian Deputy 8.50 192,778 63,617 7.54 65,544
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Haife General
ng Manage
r
Secretar 65,544
y of the
Wang
Board
Jianxu 8.50 192,778 63,617 7.54
of
n
Directo
rs
1,228,1 405,29
Total -- 0 0 0 0 -- 0 -- 0 -- 417,571
57 3
Evaluation mechanism and incentives of senior executives
The Company has formulated corresponding plans for the evaluation and incentive mechanism of senior executives, and implemented a fair and
transparent performance management system. The remuneration of senior executives shall be combined with the Company's performance and individual
performance. The System and Reform Management Department of the Company shall be responsible for the daily evaluation, and the Remuneration and
Appraisal Committee of the Board of Directors shall conduct a comprehensive evaluation.
2. Implementation of employee stock ownership plan
□Applicable Not applicable
3. Other employee incentives
□Applicable Not applicable
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XII. Establishment and Implementation of Internal Control System in the Reporting Period
1. Construction and Implementation of Internal Control
During the reporting period, adhering to the structure guidance and based on transformation
projects, we optimized the process structure of R&D and marketing areas, and carried out the
hierarchical construction based on the structural planning documents; interpreted the Basic Standard
for Enterprise Internal Control and 18 supporting guidelines and other related requirements, and
identified its implementation against the documents. We also promoted the company-wide process
operation, organized the review, updating and optimization of business processes and systems, and
monitored the implementation, to ensure the business is carried out according to the process, reduce
the cost of rectification, and improve the operational efficiency, so that we can ensure the
appropriateness, sufficiency and effectiveness of the internal control system construction, and
improve management and optimize the independent cycle of the system.
2. Specific information on major internal control deficiencies found during the reporting
period
□Yes No
XIII. Management and Control of Subsidiaries by the Company in the Reporting Period
Follow-up
Company Integration Integration Problems in Solutions Resolution
Resolution
Name Plan Progress Integration Taken Progress
Plan
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
Disclosure Date of Full Text
of Internal Control Evaluation March 30, 2024
Report
Disclosure Index of Full Text http://www.cninfo.com.cn/new/disclosure/stock?stockCode=00080
105
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of Internal Control Evaluation 0&orgId=gssz0000800&sjstsBond=false#latestAnnouncement
Report
Proportion of the Total Assets
of the Unit Included in the
Evaluation Scope to the Total
100.00%
Assets in the Company's
Consolidated Financial
Statements
Proportion of the Unit
Operating Income Included in
the Evaluation Scope to the
100.00%
Operating Income in the
Company's Consolidated
Financial Statements
Deficiency Identification Standard
Category Financial report Non-financial Report
Major deficiencies: fraudulent
behaviors of directors,
supervisors or corporate leaders
of the Company; serious
violation of national laws,
regulations or normative
documents by the Company;
violation of decision-making
Major deficiencies: The accounting firm issues procedures by the Company,
the audit report with a disclaimer of opinion or resulting in major decision-
an adverse opinion to the Company. making errors.
Significant deficiencies: The accounting firm Significant deficiencies:
issues the auditor report with a qualified fraudulent behaviors of the main
Qualitative opinion to the Company; and the accounting responsible persons of each unit
Criteria firm issues the auditor report with a disclaimer of the Company; serious
of opinion or an adverse opinion to the violation of national laws,
Company. regulations or normative
General deficiencies: The accounting firm documents by the company;
issues the auditor report with a qualified violation of decision-making
opinion to the Company. procedures by the company,
resulting in decision-making
errors.
General deficiencies: fraudulent
behaviors of other personnel of
the Company; other control
deficiencies that do not
constitute major or significant
deficiencies.
Identification criteria for internal control It is determined based on the
deficiencies related to assets and liabilities amount of asset losses caused by
Quantitative
Major deficiencies: misstated (including internal control failure, and the
Criteria
potential) amount ≥ 5‰ of the total assets at standards are as follows:
the end of the consolidated balance sheet of the Major deficiencies: causing asset
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previous year; losses of CNY 10,000,000 and
Significant deficiencies: 3‰ of the total assets more;
at the end of the consolidated balance sheet of Significant deficiencies: causing
the previous year ≤ misstated (including asset losses of less than CNY
potential) amount < 5‰ of the total assets at 10,000,000 and greater than or
the end of the consolidated balance sheet of the equal to CNY 5,000,000;
previous year; Minor deficiencies: causing
General deficiencies: other control deficiencies asset losses of less than CNY
except for major and significant deficiencies. 5,000,000.
Identification criteria for internal control
deficiencies related to profits
Major deficiencies: misstated (including
potential) amount ≥ 5‰ of the absolute value
of the pre-tax profit in the consolidated income
statement of the previous year of the Company;
Significant deficiencies: 3‰ of the absolute
value of the pre-tax profit in the consolidated
income statement of the previous year of the
Company ≤ misstated (including potential)
amount < 5‰ of the absolute value of the pre-
tax profit in the consolidated income statement
of the previous year of the Company;
General deficiencies: other control deficiencies
except for major and significant deficiencies.
Number of Major Deficiencies in Financial
0
Report (Nr.)
Number of Major Deficiencies in Non-
0
financial Report (Nr.)
Number of Significant Deficiencies in
0
Financial Report (Nr.)
Number of Significant Deficiencies in
0
Non-financial Report (Nr.)
2. Internal Control Audit Report
Applicable □Not applicable
Deliberations Paragraph in Internal Control Audit Report
In our opinion, FAW Jiefang maintained effective internal control over financial reporting in all
material aspects as of December 31, 2023 in accordance with the Basic Specification for
Enterprise Internal Control and relevant regulations.
Disclosure of Internal Control
Disclosure
Auditor Report
Disclosure Date of Full Text of
March 30, 2024
Internal Control Audit Report
Disclosure Index of Full Text of http://www.cninfo.com.cn/new/disclosure/stock?stockCo
Internal Control Audit Report de=000800&orgId=gssz0000800&sjstsBond=false#latest
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Announcement
Opinion Type of Internal Control
Standard unqualified opinion
Audit Report
Whether there are major deficiencies
No
in the non-financial report
Whether the accounting firm issues the internal control audit report with a non-standard opinion
□Yes No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
evaluation report of the Board of Directors
Yes □No
XV. Rectification of Problems Found in the Self-inspection of the Special Action for Governance of
Listed Companies: none
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Section V Environmental and Social Responsibilities
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries are key pollutant discharging entities announced by
the environmental protection authority
Yes □No
Environmental protection related policies and industry standards
The company strictly abides by the Environmental Protection Law of the People's Republic of
China, the Law of the People's Republic of China on Environmental Impact Assessment, the
Regulations on Environmental Protection Management of Construction Projects, the Law of the
People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the
People's Republic of China on the Prevention and Control of Water Pollution, the Law of the
People's Republic of China on the Prevention and Control of Noise Pollution, the Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Wastes, the Law of the People's Republic of China on the Prevention and Control of Soil Pollution,
the Law of the People's Republic of China on the Promotion of Clean Production, the Measures for
the Administration of Pollutant Discharge Permits, the Environmental Protection Tax Law of the
People's Republic of China, the Measures for the Administration of the List of Key Units of
Environmental Supervision, the Measures for the Administration of Legal Disclosure of
Environmental Information of Enterprises, the Measures for the Administration of Hazardous Waste
Transfer and other relevant laws and regulations; and the Integrated Emission Standard of Air
Pollutants (GB16297-1996), the Integrated Wastewater Discharge Standard (GB8978-1996), the
Emission Standard of Industrial Enterprises Noise at Boundary (GB12348-2008), the Standard for
Pollution Control on Hazardous Waste Storage (GB18597-2023), the Technical Guidelines for
Deriving Hazardous Waste Management Plans and Records (HJ1259-2022), the Technical
Specifications for Acceptance of Environmental Protection Facilities for Completed Construction
Projects - Automobile Manufacturing Industry (HJ 407-2021), and other national and industry
standards.
Administrative licensing for environmental protection
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The Company strictly implemented the system of "environmental impact assessment" and
"simultaneous design, construction and operation" when implementing the projects. All key pollutant
discharging entities shall apply for pollutant discharge permits according to legal provisions, and
strictly implement the pollutant discharge permit system.
Application Vali
(Renewal) dity
S/ Date of Pollutant Discharge Peri
Name of Unit
N Pollutant Permit No. od
Discharge (Yea
Permit r)
December 9122010174302872
1 Truck Factory of FAW Jiefang Automotive Co., Ltd 5
30, 2022 5R001R
Chengdu Branch of FAW Jiefang Automotive Co., July 16, 9151011474640772
2 5
Ltd. 2022 0B001V
Sichuan Branch of FAW Jiefang Automotive Co., July 21, 91510681MABQ7
3 5
Ltd. 2023 AKG4Y001V
Transmission Branch (Transformation Factory) of December 9122010157113166
4 5
FAW Jiefang Automotive Co., Ltd. 31, 2021 1N001Q
Transmission Branch (Axle Factory) of FAW December 9122010157113166
5 5
Jiefang Automotive Co., Ltd. 31, 2021 1N002V
Changchun Intelligent Bus Branch of FAW Jiefang January 09, 91220108MA170M
6 5
Automotive Co., Ltd. 2023 RB74001V
December 9137020016356734
7 FAW Jiefang (Qingdao) Automotive Co., Ltd. 5
29, 2023 3M001V
Engine Branch of FAW Jiefang Automotive Co., December 9122010175616357
8 5
Ltd. 27, 2022 19001Q
Wuxi Diesel Engine Works of FAW Jiefang October 05, 9132020074815922
9 5
Automotive Co., Ltd. 2021 2H001Q
1 Wuxi Diesel Engine Huishan Factory of FAW June 19, 9132020633096901
5
0 Jiefang Automotive Co., Ltd. 2023 7N001C
1 October 09, 9121021371788030
FAW Jiefang Dalian Diesel Engine Co., Ltd. 5
1 2022 8K001U
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Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
Types of Names
Numb
Main of Main
er of Enforced Excessiv
Pollutant Pollutant Distribution of Discharge Total
Name of Company or Discharg Disch pollutant Total e
s and s and Discharge concentration/ Approved
Subsidiary e Mode arge discharge Discharge Discharg
Specific Specific Outlets intensity Discharge
Outlet standard e
Pollutant Pollutant
s
s s
One for frame,
cab and non-
Continuo
metal coating No
Truck Factory of FAW us or
Wastewa respectively, excessiv
Jiefang Automotive COD intermitte 4 137.6mg/L 800mg/L 24.6043 t 630.104 t
ter and one for e
Co., Ltd nt
general discharge
discharge
domestic
sewage outlet
Continuo
Non- us Frame, cab, roof No
Truck Factory of FAW
Exhaust methane discharge of non-metallic excessiv
Jiefang Automotive 71 2.59mg/m 120mg/m 92.6441 t 335.4 t
gas hydrocar during coating e
Co., Ltd
bon productio workshop discharge
n
No
Chengdu Branch of Intermitt
Wastewa Southeast of the excessiv
FAW Jiefang COD ent 1 41.97mg/L 500mg/L 0.6068 t 21.3 t
ter Company e
Automotive Co., Ltd. discharge
discharge
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Continuo
Non- us No
Chengdu Branch of
Exhaust methane discharge Roof of coating excessiv
FAW Jiefang 1 1.64mg/m 60mg/m 33.3849 t 75.91 t
gas hydrocar during workshop e
Automotive Co., Ltd.
bon productio discharge
n
No
Sichuan Branch of Intermitt Northwest
Wastewa excessiv
FAW Jiefang COD ent 1 corner of the 40.85mg/L 500mg/L 0.1537 t 40.8469 t
ter e
Automotive Co., Ltd. discharge Company
discharge
Continuo
Roof of Painting
Non- us No
Sichuan Branch of Workshop and
Exhaust methane discharge excessiv
FAW Jiefang 15 General 4.68mg/m 60mg/m 2.3869 t 16.5208 t
gas hydrocar during e
Automotive Co., Ltd. Assembly
bon productio discharge
Workshop
n
One in the
northwest
corner of
Transmission Branch
substation one No
(Transformation Intermitt
Wastewa workshop and excessiv
Factory) of FAW COD ent 2 19mg/L 500mg/L 1.1134 t 10 t
ter one in the e
Jiefang Automotive discharge
southwest discharge
Co., Ltd.
corner of
substation two
workshop
Transmission Branch Exhaust Non- Continuo Four for No. 1 No
5 8.73mg/m 120mg/m 2.2615 t --
(Transformation gas methane us workshop and excessiv
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Factory) of FAW hydrocar discharge one for the e
Jiefang Automotive bon during south side discharge
Co., Ltd. productio outside No. 1
n workshop
Transmission Branch Two for No. 1, No
Intermitt
(Axle Factory) of Wastewa No. 2 and No. 3 excessiv
COD ent 6 21mg/L 500mg/L 1.3774 t --
FAW Jiefang ter workshops e
discharge
Automotive Co., Ltd. respectively discharge
Continuo Eight for No. 1
Transmission Branch Non- us workshop, No
(Axle Factory) of Exhaust methane discharge seven for No. 2 excessiv
20 16.01mg/m 120mg/m 11.0669 t --
FAW Jiefang gas hydrocar during workshop, and e
Automotive Co., Ltd. bon productio five for No. 3 discharge
n workshop
Changchun Intelligent South gate of No
Intermitt
Bus Branch of FAW Wastewa sewage excessiv
COD ent 1 50mg/L 500mg/L 1.3724 t 4.575 t
Jiefang Automotive ter treatment e
discharge
Co., Ltd. station discharge
Continuo
Changchun Intelligent Non- us Roof of coating No
Bus Branch of FAW Exhaust methane discharge and welding excessiv
12 3.25mg/m 120mg/m 10.25 t 49.5 t
Jiefang Automotive gas hydrocar during workshop of the e
Co., Ltd. bon productio Company discharge
n
COD, Continuo Outside the COD, COD, COD, COD, No
FAW Jiefang
Wastewa ammoni us or sewage 62.3mg/L 500mg/L 19.11 tons 88.79 tons excessiv
(Qingdao) Automotive 6
ter a intermitte treatment Ammonia Ammonia Ammonia Ammonia e
Co., Ltd.
nitrogen nt station of the nitrogen, nitrogen, nitrogen, nitrogen, discharge
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discharge Company 4.71mg/L 45mg/L 1.288 tons 5.11 tons
Continuo
Non- us No
FAW Jiefang Roof of each
Exhaust methane discharge excessiv
(Qingdao) Automotive 87 workshop of the 4.84mg/m 30mg/m 65.07 t 164.98 t
gas hydrocar during e
Co., Ltd. Company
bon productio discharge
n
Non- No
Engine Branch of Intermitt
Exhaust methane excessiv
FAW Jiefang ent 3 Workshop roof 1.84mg/m 120mg/m 0.0319 t --
gas hydrocar e
Automotive Co., Ltd. discharge
bon discharge
No
Wuxi Diesel Engine Continuo One for west
Wastewa excessiv
Works of FAW Jiefang COD us 3 gate and two for 41mg/L 500mg/L 30.03 t 243 t
ter e
Automotive Co., Ltd. discharge south gate
discharge
Three for
assembly
workshop, five
for the R&D NOx,
Nitrogen Continuo
Department, NOx, 200mg/m
oxide, us NOx, NOx, 27.2 No
Wuxi Diesel Engine two for QA 89mg/m Non-
Exhaust non- discharge 22.12 tons tons excessiv
Works of FAW Jiefang 13 Department, Non-methane methane
gas methane during VOCs VOCs e
Automotive Co., Ltd. two for hydrocarbons, hydrocarb
hydrocar productio 0.74 tons 1.77 tons discharge
processing 1.13mg/m ons,
bon n
workshop and 60mg/m
one for
hazardous waste
warehouse
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Wuxi Diesel Engine No
Continuo
Huishan Factory of Wastewa excessiv
COD us 1 North Gate 1 57mg/m 500mg/m 4.76 t 79.15 t
FAW Jiefang ter e
discharge
Automotive Co., Ltd. discharge
NOx,
Nitrogen Continuo
NOx, 200mg/m NOx,
Wuxi Diesel Engine oxide, us NOx, 5.49 No
79mg/m Non- 26.137
Huishan Factory of Exhaust non- discharge tons excessiv
6 Joint workshop Non-methane methane tons
FAW Jiefang gas methane during VOCs e
hydrocarbons, hydrocarb VOCs
Automotive Co., Ltd. hydrocar productio 0.67 tons discharge
1.89mg/m ons, 4.546 tons
bon n
60mg/m
COD,
Continuo Outside the COD, COD,
COD, COD, 41mg/L 1.796 tons No
FAW Jiefang Dalian us or sewage 300mg/L 88.79 tons
Wastewa ammoni Ammonia Ammonia excessiv
Diesel Engine Co., intermitte 1 treatment Ammonia Ammonia
ter a nitrogen, nitrogen, e
Ltd. nt station of the nitrogen, nitrogen,
nitrogen 4.8mg/L 0.3534 discharge
discharge Company 30mg/L 5.11 tons
tons
Nitrogen Nitrogen
NOx,
Nitrogen Continuo oxides: oxides:
NOx, 240mg/m
oxide, us 1.163 t 11.967 t No
FAW Jiefang Dalian Roof of the 88mg/m Non-
Exhaust non- discharge Non- Non- excessiv
Diesel Engine Co., 5 Company's Non-methane methane
gas methane during methane methane e
Ltd. workshop hydrocarbons, hydrocarb
hydrocar productio hydrocarb hydrocarb discharge
0.33mg/m ons,
bon n ons, 2.246 on
120mg/m
tons 14.2 t
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Disposal of pollutants
(I) Wastewater treatment:
(1) The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatment
stations currently, namely, frame workshop sewage treatment station, coating workshop sewage
treatment station and non-metallic coating sewage treatment station. ① The frame sewage treatment
station has a treatment capacity of 300 tons/day, and mainly treats wastewater before it enters the
frame workshop; ②The cab coating workshop sewage treatment station has a treatment capacity of
400 tons/day, and mainly treats the wastewater and painting wastewater before they enter the
workshop. ③ The non-metallic line sewage treatment station has a treatment capacity of 240
tons/day and mainly treats the painting wastewater before it enters the production line. The
wastewater and domestic sewage pretreated by the above three sewage stations are discharged into
the FAW Integrated Sewage Treatment Plant and then discharged into the Changchun Western
Suburbs Sewage Treatment Plant after reaching the Class III standard in the Integrated Wastewater
Discharge Standard (GB8978-1996).
(2) One sewage treatment station has been built in Chengdu Branch of FAW Jiefang
Automotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, with
a total treatment capacity of 300 tons/day. The main treatment method is SBR process. All sewage
stations can operate continuously and stably, and the sewage discharged up to standard enters the
urban sewage treatment plant through the municipal pipe network for further treatment.
(3) The Sichuan Branch of FAW Jiefang Automotive Co., Ltd. has a wastewater treatment
station that is used to treat the Company's production and domestic wastewater, has a total treatment
capacity of 50 tons/hour, and adopts the physicochemical and biochemical treatment process. The
sewage station can operate continuously and stably. The industrial wastewater discharged after
meeting the standard enters the urban sewage treatment plant through the municipal pipeline network
for further treatment.
(4) The Transmission Branch (Transmission Factory) of FAW Jiefang Automotive Co., Ltd.
uses the sewage treatment station in the Shaft Gear Park to treat the production wastewater of the
Company. The total treatment capacity of the sewage treatment station is 5 tons/hour, and it operates
stably. After being treated by the sewage station and reaching the standard, the industrial wastewater
is discharged into the Changchun Western Suburbs Sewage Treatment Plant for further treatment.
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(5) There is a sewage storage tank in each of the three workshops in the Transmission Branch
(Axle Factory) of FAW Jiefang Automotive Co., Ltd., and the industrial wastewater of the No. 3
Workshop is transferred to the sewage treatment station in Shaft Gear Park for treatment. The other
two workshops signed a disposal contract with FAW to transfer the sewage by FAW tanks to the
comprehensive treatment workshop for complaint disposal every day.
(6) One sewage treatment station is built in Changchun Intelligent Bus Branch of FAW Jiefang
Automotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, with
a treatment capacity of 300 tons/day. The physicochemical + biochemical treatment process is
adopted, which can operate continuously and stably and discharge up to standard in real time. The
sewage discharged up to standard enters the urban sewage treatment plant through the municipal pipe
network for further treatment.
(7) Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co., Ltd.
They combine physicochemical process with biochemical process and are mainly used to treat the
phosphating wastewater, electrophoresis wastewater and degreasing wastewater discharged from
daily production of the coating workshop, as well as the daily domestic sewage of the Company. The
designed maximum daily treatment capacity of the station is 2160 tons/day. The treated wastewater
meets the index requirements of the Wastewater Quality Standards for Discharge to Municipal
Sewers (GB/T31962-2015), and reaches the Reuse of Urban Recycling Water—Water Quality
Standard for Urban Miscellaneous Use (GB/T18920-2020) after being further treated by the MBR
improvement equipment, thus reducing the sewage concentration significantly, increasing the reuse
amount of recycled water, and saving water. The up-to-standard treated wastewater is discharged to
Jimo North Sewage Treatment Plant for advanced treatment through the sewage outlet.
(8) The industrial wastewater produced by the Engine Branch of FAW Jiefang Automotive Co.,
Ltd. is transferred to the sewage treatment station of the Shaft Gear Park for treatment.
(9) One sewage treatment station is built in Wuxi Diesel Engine Works of FAW Jiefang
Automotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, with
a total treatment capacity of 3,000 tons/day and 24-hour operation. The main treatment process is
physicochemical + biochemical treatment. The sewage station can operate continuously and stably,
and realize real-time up-to-standard discharge. The up-to-standard discharged sewage enters the
urban sewage treatment plant through the municipal pipe network for further treatment.
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(10) One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory of FAW
Jiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater of the
Company, with a total treatment capacity of 1,000 tons/day and 24-hour operation. The main
treatment process is physicochemical + biochemical treatment. The sewage station can operate
continuously and stably, and realize real-time up-to-standard discharge. The up-to-standard
discharged sewage enters the urban sewage treatment plant through the municipal pipe network for
further treatment.
(11) One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co., Ltd. for
the treatment of production and domestic wastewater, with a total treatment capacity of 816 tons/day
and 24-hour operation. The main treatment processes are distillation pretreatment of production
wastewater and biochemical treatment of comprehensive wastewater. The sewage station can operate
continuously and stably, and realize real-time up-to-standard discharge. The up-to-standard
discharged sewage enters the urban sewage treatment plant through the municipal pipe network for
further treatment.
(II) Waste gas treatment:
(1) All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co., Ltd.
can operate continuously and stably. The dust generated by the plasma cutting machine in the
stamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. The
CO2 welding machine adopts a single-machine dust removal system, and the waste gas is discharged
locally in the workshop after being treated by a single-machine dust collector. The waste gas
generated by the treatment and drying process before entering the frame workshop is discharged
through a 15m exhaust pipe after being treated by a direct combustion device. The exhaust gas of
VOCs from cab coating and non-metallic coating is discharged after reaching the standard through
hydrocyclone + zeolite runner adsorption concentration + RTO (regenerative incineration).
(2) All waste gas treatment facilities of the Chengdu Branch of FAW Jiefang Automotive Co.,
Ltd. can operate continuously and stably. The painting waste gas of the coated body is discharged
after reaching the standard through hydrocyclone + dry filtration + zeolite runner adsorption and
concentration + RTO (regenerative incineration). All welding fumes are discharged after reaching
the standard and being treated by centralized and mobile dust removal systems.
(3) All waste gas treatment facilities of the Sichuan Branch of FAW Jiefang Automotive Co.,
Ltd. can operate continuously and stably. The painting waste gas of the coated body is discharged
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after reaching the standard through dry paper box + zeolite runner adsorption and concentration +
RTO (regenerative incineration). All welding fumes are discharged after reaching the standard and
being treated by centralized and mobile dust removal systems.
(4) All waste gas treatment facilities of the Transmission Branch (Transformation Factory) of
FAW Jiefang Automotive Co., Ltd. can operate continuously and stably. The painting waste gas
generated from the coating line is discharged after reaching the standard and being treated by
activated carbon adsorption and desorption catalytic combustion devices. All welding fumes are
discharged after reaching the standard and being treated by centralized and mobile dust removal
systems.
(5) All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAW
Jiefang Automotive Co., Ltd. can operate continuously and stably, and all welding fumes are
discharged after reaching the standard and being treated by centralized and mobile dust removal
systems. The waste gas from the painting line is treated by zeolite runner +RCO device and
discharged after meeting the standard.
(6) Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. plans to
implement various centralized dust removal projects for welding fumes in 2023. The fumes were
discharged up to standard after treatment. This project is being carried out. The waste gas from the
painting process is treated by the pretreatment filtration system + zeolite concentration runner + RTO
incineration treatment system and then discharged after reaching the standard.
(7) All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. can
operate continuously and stably. The painting waste gas generated by Painting Workshops 1 and 2,
Non-metallic Painting Workshop and Assembly Workshops 1 and 2 is discharged after reaching the
standard and being purified by paint mist, adsorbed by zeolite concentration runner and treated by an
RTO incineration device in the three workshops. The drying waste gas generated by the general
assembly workshop is burned with low nitrogen, and discharged after reaching the standard and
being treated by the quaternary combustion device. The drying waste gas generated by the coating
workshop is burned with low nitrogen and discharged after reaching the standard and receiving TNV
thermal incineration. All welding fumes are discharged after reaching the standard and being treated
by a filter cartridge dust collector.
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(8) The Engine Branch of FAW Jiefang Automotive Co., Ltd. has three quenching machines
generating waste gas and equipped with adsorption purification devices. After treatment, the waste
gas is discharged up to standard.
(9) All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW Jiefang
Automotive Co., Ltd. can operate continuously and stably. The painting waste gas generated from
coating is discharged after reaching the standard and receiving activated carbon adsorption and
desorption + catalysis, and the waste gas generated from test run is discharged after reaching the
standard and being treated by SCR treatment device.
(10) All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAW Jiefang
Automotive Co., Ltd. can operate continuously and stably. The painting waste gas generated from
coating is discharged after reaching the standard and receiving activated carbon adsorption and
desorption + catalysis, and the waste gas generated from test run is discharged after reaching the
standard and being treated by SCR treatment device.
(11) All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. can
operate continuously and stably. The painting waste gas generated from coating is discharged after
reaching the standard and being treated by water curtain paint mist treatment device + activated
carbon adsorption, and the waste gas generated from test run is discharged after being treated by
SCR post-treatment + alkali liquor washing exhaust gas treatment device and reaching the standard.
(III) Noise control:
All noise reduction and vibration reduction measures of branches and subsidiaries of the
Company can meet the requirements of national laws and regulations, and the noise within the plant
boundary meets the requirements of national emission standards.
(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes to
organizations with hazardous waste transportation and disposal qualification for compliant transfer
and disposal in strict accordance with the requirements of national laws, regulations and standards.
Emergency plan for environmental emergencies
We organized relevant departments to revise and improve the comprehensive plan, special
emergency plan and on-site disposal plan of the Emergency Response Plan for Environmental
Emergencies, conducted a detailed risk assessment on each risk point, clearly defined the work
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responsibilities of each department, refined the emergency disposal procedures for unexpected
environmental events, supplemented and provided all kinds of emergency response materials, and
trained relevant personnel on the contents of the plan as required.
We organized relevant departments to formulate the emergency response drill plan and carried
out the drills on the emergency plan, special emergency plan and on-site disposal plan for key areas
such as sewage treatment stations, hazardous waste stations and waste gas treatment facilities on
schedule. The drills improved the awareness of relevant personnel for the emergency procedures, and
their emergency response ability and coordination ability for emergencies, providing the actual
practice to the environmental emergency team and effectively improving the emergency response
ability.
Environmental self-monitoring plan
All branches and subsidiaries of the Company have prepared their own monitoring plans according
to the requirements of pollutant discharge permits and regulations, and organized qualified
monitoring organizations to monitor wastewater, waste gas, noise and soil in accordance with the
requirements of the plans. The test report for 2023 shows that all monitoring indicators meet the
requirements of all national emission regulations and standards.
Investment in environmental governance and protection and payment of environmental protection
taxes
In 2023, the Company paid a total of more than CNY 38 million including various
environmental governance and protection expenses and environmental protection taxes.
Measures taken to reduce carbon emissions in the reporting period and their effects
Applicable □Not applicable
The Company pays close attention to energy conservation and carbon reduction and actively
docks with the government's preferential energy policies. In 2023, the amount of the green electricity
transaction was 46,393,400 kWh, and the PV clean energy projects implemented by Liuzhou Branch,
FAW Jiefang (Qingdao) Automotive Co., Ltd. and other branches and subsidiaries were connected to
the grid to generate electricity, further reducing carbon emissions. In 2023, we initiated and
implemented 189 energy-saving and cost-reducing projects, with total annual savings of CNY 98.65
million and 36,267t CO2.
Administrative penalties due to environmental problems in the Reporting Period
Name of Cause for Violations Results of Impact on Production Rectification
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Company or Penalties Penalties and Operation of the Measures of the
Subsidiary Listed Company Company
N/A N/A N/A N/A N/A N/A
Other environmental information that shall be disclosed
All branches and subsidiaries of the Company have disclosed environmental information as
required, been certified by the environmental management system (GB/T24001-2016), and carried
out cleaner production audits in strict accordance with the requirements. As a responsible central
enterprise, the Company strictly abides by the national requirements, has been practicing the concept
of scientific development, builds a clean and green enterprise, and is committed to becoming an
ecological civilization benchmarking environment-friendly enterprise of "energy conservation,
consumption reduction, emission reduction and efficiency improvement".
Other information related to environmental protection
In 2023, we revised 7 environmental protection management documents, refined the
identification and evaluation standards of environmental factors, improved the evaluation process,
strictly standardized the "simultaneous design, construction and operation" management of
construction projects, clarified the management standards and spot inspection operation requirements
of environmental protection facilities, and increased the identification of laws and regulations.
In order to improve the environmental responsibility awareness and working ability of managers
and operators at all levels, the Company and its affiliates have formulated the environmental
protection training plan, developed 9 professional environmental protection training courses, and
conducted targeted training on important environmental protection laws and regulations. We also
invited industry experts with a high internal environmental management level and rich experience in
inspection to share VOC compliance management in the Company. In 2023, we provided a total of 9
company-level training, 42 training sessions in branches and subsidiaries and professional factories
and 88 workshop-level training sessions, with a total of about 12,628 participants, laying a good
foundation for the advancement of all tasks.
In 2023, we organized a series of activities of "Environmental Protection Publicity Month", and
carefully prepared the Plan of Environmental Protection Publicity Month Activities for 2023. During
the month, we prepared and posted posters on the theme of "World Environment Day", collected the
works of "Short Video of Environmental Protection Publicity", publicized and promoted the "golden
idea" of environmental protection, arranged employees to participate in the environmental protection
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knowledge contest of the Group, and selected outstanding environmental protection cases. The
employees of all units actively participated in the activities, achieving satisfactory publicity results.
II. Social Responsibility
For details of our performance of corporate social responsibilities, please refer to the 2023
Environment, Society and Governance (ESG) Report published on CNINFO
(http://www.cninfo.com.cn) on the same day.
III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural
Revitalization
The company actively responds to the national rural revitalization strategy and the deployment
of targeted assistance work. It focuses on the needs of Fengshan County in Guangxi and Zhenlai
County in Jilin. With Party building as the guiding principle and the selection of competent officials
as the main approach, the Company has implemented various measures to solidly carry out
assistance work in the dimensions of industrial development, livelihood infrastructure, ecological
improvement, education and employment, and consumer support. It continuously improves the well-
being of local residents, effectively promotes comprehensive rural revitalization, and writes a
liberating chapter on rural revitalization.
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Section VI Important Matters
I. Performance of Commitments
1. Commitments Made by the Company's Actual Controllers, Shareholders, Related Parties,
Purchasers and the Company to Interested Parties that will be Fulfilled in the Reporting
Period, and Commitments not Fulfilled by the End of the Reporting Period
Applicable □Not applicable
Reason
Commi Commitm
s for Commi Performanc
tment Commitments Date ent
Commi tted by e
Type Period
tment
To safeguard the interests of
Commi investors, FAW promises that after
The locked
tments this acquisition is completed, the
shares were
made in Company will continue to fulfill the
Shareh listed and
the commitments made by FAW Group
China older circulated
Acquisi during the equity division reform Long-
FAW Lock- August on April
tion and strictly abide by the relevant term
Co., up 08, 2011 10, 2023,
Report regulations of China Securities validity
Ltd. Commi and this
or Regulatory Commission and
tment commitme
Equity Shenzhen Stock Exchange on share
nt has been
Change transfer, equity changes and
fulfilled.
Report information disclosure of listed
companies.
1. The non-publicly issued shares The new Among
of the listed company acquired by shares in them, the
asset subscription in the this new shares
restructuring will not be transferred restructur in this
in any way within 36 months from ing will restructurin
the date of issuance, including but not be g were
not limited to public transfer transferre listed and
Commi
Commi through the securities market or d in any circulated
tments
China tment transfer by agreement. However, way on April
made
FAW on the transfer permitted under April 08, within 36 10, 2023;
during
Co., restricte applicable laws is exempt from the 2020 months the shares
asset
Ltd. d restrictions (including but not from the before the
restruct
shares limited to share repurchase due to date of restructurin
uring
performance compensation). 2. If issuance; g expired
the closing price of the listed the shares on October
company's shares is lower than the already 9, 2021.
issue price for 20 consecutive held This
trading days within 6 months after before the commitme
the restructuring, or the closing restructur nt has been
price at the end of 6 months after ing shall fulfilled.
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the restructuring is lower than the not be
issue price, the shares of the listed transferre
company acquired by China FAW d within
Co., Ltd. through asset subscription 18
in this restructuring will be months
automatically extended for 6 from the
months on the basis of the above date of
lock-up period. 3. The shares of the completio
listed company already held before n of the
the restructuring shall not be restructur
transferred within 18 months from ing.
the date of completion of the
restructuring, but the transfer
permitted under applicable laws is
exempt from the restrictions. 4.
After the restructuring, if the shares
of the listed company enjoyed
based on the restructuring are
newly increased due to the issuance
of bonus shares, conversion to
share capital, etc., the
aforementioned agreement on the
restricted period shall also be
observed. If the commitment on the
restricted period of the shares
obtained based on the restructuring
is inconsistent with the latest
regulatory opinions of the securities
regulatory authorities, FAW Car
Co., Ltd. will make corresponding
adjustments based on the regulatory
opinions of the relevant securities
regulatory authorities. 5. After the
expiration of the above restricted
period, the shares of the listed
company obtained shall be
transferred according to the
relevant provisions of the China
Securities Regulatory Commission
and Shenzhen Stock Exchange. 6.
FAW guarantees that it is willing to
assume corresponding legal
responsibilities in case of violation
of the above commitments.
Commi 1. We will exercise shareholders'
China tment rights in strict accordance with the The matter
Long-
FAW on Company Law and other laws, April 08, is now in
term
Co., regulati administrative regulations, rules 2020 the normal
validity
Ltd. ng and and normative documents process.
reducin (hereinafter referred to as "laws and
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g regulations") as well as the Articles
related of Association of FAW Car Co.,
transact Ltd. (hereinafter referred to as
ions "Articles of Association"), and
when the board of directors and the
shareholders’ meeting vote on
related transactions involving FAW
Car Co., Ltd. matters, we will fulfill
the obligation of avoiding voting. 2.
We will commit to putting an end to
all illegal occupation of the funds
and assets of the listed company,
and guarantee not to illegally
transfer the funds and assets of the
listed company or harm the
interests of the listed company and
other shareholders of the listed
company by making use of relevant
transactions. 3. We will try best to
avoid or reduce related transactions
with listed companies and
enterprises controlled by them. For
related transactions that cannot be
avoided or exist with reasonable
reasons, we will strictly follow the
principles of fairness, impartiality
and openness in the market, sign
standardized related transaction
agreements with listed companies
according to law, and perform
related transaction decision-making
procedures in accordance with
relevant laws and regulations and
the Articles of Association. The
price of related transactions shall be
determined based on the market-
oriented pricing principle to ensure
its fairness, and to perform the
information disclosure obligation of
related transactions in accordance
with relevant laws and regulations
and the Articles of Association, and
to ensure that the legitimate rights
and interests of the listed company
and other shareholders of the listed
company will not be harmed
through related transactions. 4. The
above commitments on regulating
related transactions will also apply
to enterprises actually controlled by
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FAW, and within the scope of legal
shareholders' rights, FAW will urge
its actually controlled enterprises to
fulfill the obligations of regulating
existing or possible related
transactions with listed companies.
We will make every effort to urge
joint ventures or associated
enterprises other than those actually
controlled by FAW Car Co., Ltd. to
fulfill the obligations to regulate
related transactions that have
occurred or may occur with listed
companies.
1. Upon completion of the
restructuring, the main business of
the listed company will be changed
to the R&D, production and sales
of commercial vehicles. 2. Upon
completion of the restructuring,
FAW and its holding enterprises
other than listed companies
(hereinafter referred to as "holding
enterprises") shall not directly or
indirectly engage in any business or
activity that constitutes or may
constitute substantial competition
with the main business engaged in
Commi
by listed companies and their
tment
holding enterprises in any form. 3.
CHINA on The
Upon completion of the
FAW avoidin Long- commitme
restructuring, if FAW or its holding April 08,
GROU g term nt is being
enterprises find any new business 2020
P CO., horizon validity fulfilled
opportunities that constitute or may
LTD. tal normally.
constitute a direct or indirect
competi
competition with the main business
tion
of the listed company or its holding
enterprises (hereinafter referred to
as "such new business
opportunities"), FAW will
immediately notify the listed
company in writing and try its best
to first provide such business
opportunities to the listed company
or its holding enterprises according
to reasonable and fair terms and
conditions. If the listed company or
its holding enterprises decide to
give up such new business
opportunities, FAW or its holding
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enterprises can engage in it. 4. If
the listed company or its holding
enterprises give up such new
business opportunities and FAW or
its holding enterprises engage in
such new business opportunities,
the listed company or its holding
enterprises have the right to always
acquire any equity, assets and other
rights and interests in such new
business opportunities from FAW
or its holding enterprises one time
or multiple times, or the listed
company or its holding enterprises
choose to entrust, lease or contract
to operate the assets or businesses
of FAW or its holding enterprises in
such new business opportunities in
the manner permitted by laws and
regulations. FAW will ensure that
its holding enterprises comply with
the above commitments. 5. FAW
Harbin Light Automobile Co., Ltd.
(hereinafter referred to as "Harbin
Light Automobile") and FAW
Hongta Yunnan Automobile
Manufacturing Co., Ltd.
(hereinafter referred to as "FAW
Hongta", and collectively referred
to as "Light Truck Company"
together with Harbin Light
Automobile) under FAW Light
Commercial Vehicle Co., Ltd.
(hereinafter referred to as "FAW
Light Automobile"), a subsidiary of
FAW, are engaged in some light
truck businesses. However, they are
currently in a state of
discontinuation or loss, with heavy
burden and unstable profitability.
FAW promises that it will entrust
all shares of Harbin Light
Automobile and FAW Hongta
under its actual control to Jiefang
Limited for management, and inject
the equities of Harbin Light
Automobile and FAW Hongta
under its actual control to listed
companies in batches or at one time
in an appropriate way, or transfer
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them to other unrelated third parties
at a reasonable price and in a
reasonable way, or prevent the light
truck company from engaging in
light truck related businesses by
exercising shareholders' rights, and
perform relevant internal approval
procedures as soon as possible after
the above procedures are initiated
within 12 months after meeting the
requirements that the return on net
assets of Harbin Light Automobile
and FAW Hongta is not lower than
that of listed companies in the same
period and increasing the earnings
per share of listed companies after
restructuring. 6. From the date of
issuance of the commitment letter,
if FAW violates any of the above
commitments, it will take positive
measures in favor of the listed
company to eliminate horizontal
competition, including but not
limited to injecting assets related to
horizontal competition business
into the listed company, terminating
horizontal competition business or
selling assets related to horizontal
competition business to an
unrelated third party. 7. The above
commitments shall come into effect
from the date of completion of the
restructuring and shall remain valid
and irrevocable during the period
when FAW serves as the controlling
shareholder or actual controller of
the listed company.
1. Upon completion of the
restructuring, the main business of
Commi the listed company will be changed
tment to the R&D, production and sales
on of commercial vehicles. 2. Upon The
China
avoidin completion of the restructuring, Long- commitme
FAW April 08,
g FAW and its holding enterprises term nt is being
Co., 2020
horizon other than listed companies validity fulfilled
Ltd.
tal (hereinafter referred to as "holding normally.
competi enterprises") shall not directly or
tion indirectly engage in any business or
activity that constitutes or may
constitute substantial competition
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with the main business engaged in
by listed companies and their
holding enterprises in any form. 3.
Upon completion of the
restructuring, if FAW or its holding
enterprises find any new business
opportunities that constitute or may
constitute a direct or indirect
competition with the main business
of the listed company or its holding
enterprises (hereinafter referred to
as "such new business
opportunities"), FAW or its holding
enterprises will immediately notify
the listed company in writing and
try its best to first provide such
business opportunities to the listed
company or its holding enterprises
according to reasonable and fair
terms and conditions. If the listed
company or its holding enterprises
decide to give up such new
business opportunities, FAW or its
holding enterprises can engage in it.
4. If the listed company or its
holding enterprises give up such
new business opportunities and
FAW or its holding enterprises
engage in such new business
opportunities, the listed company or
its holding enterprises have the
right to always acquire any equity,
assets and other rights and interests
in such new business opportunities
from FAW or its holding enterprises
one time or multiple times, or the
listed company or its holding
enterprises choose to entrust, lease
or contract to operate the assets or
businesses of FAW or its holding
enterprises in such new business
opportunities in the manner
permitted by laws and regulations.
FAW Car Co., Ltd. will ensure that
the holding enterprises of the
Company comply with the above
commitments. FAW Car Co., Ltd.
will ensure that the holding
enterprises of the Company comply
with the above commitments. 5.
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Harbin Light Automobile and FAW
Hongta under FAW Light
Commercial Vehicle Co., Ltd., a
subsidiary of FAW, are engaged in
some light truck businesses.
However, they are currently in a
state of discontinuation or loss,
with heavy burdens and unstable
profitability. FAW promises that it
will urge to entrust all shares of
Harbin Light Automobile and FAW
Hongta under its actual control to
Jiefang Limited for management,
and inject the equities of Harbin
Light Automobile and FAW Hongta
under its actual control to listed
companies in batches or at one time
in an appropriate way, or transfer
them to other unrelated third parties
at a reasonable price and in a
reasonable way, or prevent the light
truck company from engaging in
light truck related businesses by
exercising shareholders' rights, and
perform relevant internal approval
procedures as soon as possible after
the above procedures are initiated
within 12 months after meeting the
requirements that the return on net
assets of Harbin Light Automobile
and FAW Hongta is not lower than
that of listed companies in the same
period and increasing the earnings
per share of listed companies after
restructuring. 6. From the date of
issuance of the commitment letter,
if FAW violates any of the above
commitments, it will take positive
measures in favor of the listed
company to eliminate horizontal
competition, including but not
limited to injecting assets related to
horizontal competition business
into the listed company, terminating
horizontal competition business or
selling assets related to horizontal
competition business to an
unrelated third party. 7. The above
commitments shall take effect from
the date of completion of this
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restructuring and shall remain valid
and irrevocable during the period
when China FAW Co., Ltd. serves
as the controlling shareholder or
actual controller of the listed
company.
(I) Ensure the personnel
independence of the listed
company: 1. Maintain personnel
independence with the listed
company, and ensure that the
General Manager, Deputy General
Manager, Financial Director,
Secretary of the Board of Directors
and other senior executives of the
listed company do not hold
positions other than directors and
supervisors in FAW Car Co., Ltd.
and its wholly-owned, holding or
other enterprises and public
institutions under actual control
(hereinafter referred to as
Commi "subordinate units"), and do not
tment receive salary from FAW Car Co.,
on Ltd. and its subordinate units. 2.
maintai Ensure that the listed company has
The
China ning a complete and independent labor,
Long- commitme
FAW the human resources and salary April 08,
term nt is being
Co., indepen management system, which is 2020
validity fulfilled
Ltd. dence completely independent of FAW
normally.
of and its subordinate units. (II)
listed Ensure the independence and
compan integrity of the assets of the listed
ies company: 1. Ensure that the listed
company has independent and
complete assets, all of which are
under the control of the listed
company, and are independently
owned and operated by the listed
company. 2. Ensure that FAW and
its subordinate units currently do
not and will not illegally occupy the
funds and assets of the listed
company. 3. FAW. will not use the
assets of the listed company to
guarantee its debts. (III) Ensure the
financial independence of the listed
company: 1. Ensure that the listed
company continues to maintain an
independent financial department
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and an independent financial
accounting system. 2. Ensure that
the listed company has a
standardized and independent
financial and accounting system. 3.
Ensure that the listed company
opens a bank account
independently and does not share a
bank account with FAW. 4. Ensure
that the financial personnel of the
listed company do not take part-
time jobs in FAW and its
subordinate units. 5. Ensure that the
listed company can make financial
decisions independently, and FAW
does not interfere with the use of
funds by the listed company. 6.
Ensure that the listed company pays
taxes independently according to
law. (IV) Ensure the institutional
independence of the listed
company: 1. Ensure that the listed
company has an independent and
complete organizational institution
and can operate it independently. 2.
Ensure that the office and
production and business premises
of the listed company are separated
from FAW. 3. Ensure that the Board
of Directors, Board of Supervisors
and all functional departments of
the listed company operate and
exercise their functions and powers
independently, without any
affiliation or confusion with the
functional departments of FAW Car
Co., Ltd. (V) Ensure the business
independence of the listed
company: 1. Maintain business
independence with the listed
company after the restructuring,
and ensure substantial horizontal
competition or obviously unfair
related transactions do not exist or
occur. 2. Ensure that the listed
company has the assets, personnel,
qualifications and capabilities to
independently carry out business
activities, and has the ability to
independently operate in the
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market. 3. Ensure that FAW does
not interfere with the normal
business activities of the listed
company except for participating in
the operation and management of
the listed company by exercising
shareholders' rights.
1. We will make sure that the
consideration shares obtained in the
restructuring are given priority to
fulfill the performance
compensation commitment agreed
in the Profit Forecast Compensation
With the
Agreement signed with the listed
fulfillment
company, and we will not evade the
of
compensation obligation by pledge
performanc
of shares or other means. 2. When
Commi e
such consideration shares are
tment commitme
pledged in the future, we will
China on nts and
inform the pledgee in writing of the
FAW pledgin April 08, April 30, compensati
potential performance commitment
Co., g 2020 2023 on
compensation obligations of such
Ltd. conside arrangemen
shares according to the Profit
ration t
Forecast Compensation Agreement,
shares commitme
and make a clear agreement with
nts, this
the pledgee on the use of relevant
commitme
shares for performance
nt has been
compensation in the Pledge
fulfilled.
Agreement. 3. In case of violation
of the above commitments, we will
compensate the listed company for
any losses incurred thereby and
bear the corresponding legal
liabilities.
1. We will not interfere with the
operation and management
activities of the listed company
Commi beyond our authority and will not
tment encroach on the interests of the
on listed company; 2. In this major The
China
measur asset restructuring, the listed Long- commitme
FAW April 08,
es to company issued shares to FAW. to term nt is being
Co., 2020
fill purchase assets, and signed the validity fulfilled
Ltd.
diluted Profit Forecast Compensation normally.
spot Agreement attached with effective
returns conditions with FAW., providing
legally binding safeguard measures
to avoid diluted spot returns in this
transaction.
CHINA Descrip The production qualification and April 08, Long- The
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FAW tion on product announcement of Jiefang 2020 term commitme
GROU vehicle Limited will be under the group validity nt is being
P CO., product management of FAW, that is, fulfilled
LTD. ion Jiefang Limited will use the normally.
qualific production qualification of FAW
ation vehicles, and its production
qualification and product
announcement declaration will be
under the unified management of
FAW. Upon completion of the
restructuring, FAW will continue to
maintain group management based
on the actual needs of Jiefang
Limited. Jiefang Limited can
continue to use relevant production
qualifications and keep the
announcement of existing models
unchanged. FAW will not hinder
the continuous use of relevant
qualifications by Jiefang Limited,
and will cooperate with Jiefang
Limited to maintain the validity of
relevant qualifications.
From 2020
to 2022, the
share of the
For some patents and proprietary
accumulati
technologies (hereinafter referred to
ve realized
as "performance commitment
income of
assets") in the purchased assets
the
evaluated by the income approach,
Company's
the income commitments of the
performanc
audited performance compensation
Perfor e
assets in the three accounting years
mance commitme
(i.e. 2020, 2021 and 2022) after the
commit nt assets
China transaction are as follows: CNY
ment was CNY
FAW 655,889,000 in 2020, CNY April 08, April 30,
and 1,949,149,6
Co., 688,155,200 in 2021 and CNY 2020 2023
compen 00,
Ltd. 109,386,400 in 2022. During the
sation exceeding
performance commitment period, if
arrange the
as of the end of the current year, the
ment commitme
accumulated realized income of the
nt amount
performance commitment assets is
of CNY
lower than the accumulated
495,719,00
committed income, FAW will
0, and the
compensate the listed company
performanc
year by year by share-based
e
payment.
commitme
nt was
completed.
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Jiefang Limited and its holding
subsidiaries cannot obtain the house
ownership certificate for some
properties due to historical reasons
such as government planning and
adjustment, land expropriation,
incomplete construction application
procedures, and construction
beyond the red line. The above
properties account for 0.6% of the
total area of house ownership of
Jiefang Limited and its holding
subsidiaries, which is relatively
Commi small and will not have a
tment significant adverse impact on the
The
China on normal production and operation of
Novembe Long- commitme
FAW defects Jiefang Limited. As the
r 27, term nt is being
Co., of counterparty of the restructuring,
2019 validity fulfilled
Ltd. underly the Company promises that the
normally.
ing failure to obtain the corresponding
assets ownership certificate of the above
properties will not adversely affect
the normal production and
operation of Jiefang Limited, and
will not constitute a substantial
obstacle to the restructuring. If the
listed company or Jiefang Limited
suffers any punishment or loss due
to the failure to obtain the
corresponding ownership certificate
of the above properties, the
Company promises to make full
compensation to the listed company
or Jiefang Limited in cash timely.
Commi
tment
made
upon
initial
N/A N/A
public
offering
or
refinan
cing
Equity
incentiv
e N/A N/A
commit
ment
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Other
commit
ments
to
minorit
y N/A N/A
shareho
lders of
the
Compa
ny
Other
commit N/A N/A
ments
Whethe
r the
commit
Yes
ment is
fulfilled
on time
If the
commit
ment is
not
fulfilled
within
the
time
limit,
the
specific
N/A
reasons
for the
failure
and the
next
work
plan
shall be
explain
ed in
detail
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2. If there is a profit forecast for the Company's assets or projects, and the reporting period is
still in the profit forecast period, the Company shall explain that the assets or projects reaching
the original profit forecast and the reasons
□Applicable Not applicable
II. Non-operating Occupation of Funds by Controlling Shareholders and Other Related Parties
to the Listed Company
□Applicable Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling
shareholders and other related parties.
III. Illegal External Guarantee
□Applicable Not applicable
The Company has no illegal external guarantee in the reporting period.
IV. Description of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable Not applicable
V. Description of the Board of Directors, the Board of Supervisors and Independent Directors
(if any) on the "Non-standard Audit Report" of the Accounting Firm in the Reporting Period
□Applicable Not applicable
VI. Description of Changes in Accounting Policies and Accounting Estimates or Correction of
Significant Accounting Errors Compared with the Financial Report of the Previous Year
Applicable □Not applicable
Interpretation No. 16 of Accounting Standards for Business Enterprises
In November 2022, the Ministry of Finance issued the Interpretation No. 16 of the Accounting
Standards for Business Enterprises (CK [2022] No. 31) (hereinafter referred to as "Interpretation No.
138
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
16").
Interpretation No.16 stipulates that for a single transaction that is not a business combination and
does not affect accounting profits or taxable income (or deductible losses) at the time of the
transaction and that the initial recognition of assets and liabilities results in equal amounts of taxable
temporary differences and deductible temporary differences, such taxable temporary differences and
deductible temporary differences arising from the initial recognition of assets and liabilities shall be
recognized at the time the transaction occurred as the corresponding deferred income tax liabilities
and deferred income tax assets in accordance with relevant provisions such as the Accounting
Standards for Business Enterprises No. 18 - Income Tax. The Company shall apply these provisions
to transactions that occurred from the beginning of the earliest period of the financial statements for
which the provisions are first applied until the Implementation Date of the Interpretation. The
cumulative impact of these adjustments shall be used to adjust the opening retained earnings and
other related financial statement items for the earliest period in the presentation of financial
statements. The above provisions on the accounting treatment have come into effect since January 1,
2023.
The Company shall also adjust the taxable temporary difference and deductible temporary difference
for lease liabilities and right-of-use assets recognized for the lease business in accordance with the
provisions of Interpretation No. 16.
The enforcement of the above accounting policies has the following impact on the consolidated
balance sheet on December 31, 2023 and the 2023 consolidated income statement:
Unit: CNY
Items of consolidated balance sheet
Amounts affected
(December 31, 2023)
Deferred Income tax assets 12,975,866.73
Deferred income tax liabilities 12,560,241.88
Undistributed profit at the end of the year 415,624.85
Items of consolidated income statement
Amounts affected
(Year 2023)
Income tax expenses -443,956.60
139
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
The enforcement of the above accounting policies has the following impact on the consolidated
balance sheet on December 31, 2022 and the 2022 consolidated income statement:
Unit: CNY
Items of consolidated balance
Before After
sheet Amount adjusted
adjustment adjustment
(December 31, 2022)
Deferred Income Tax Assets 2,131,349,905.21 19,643,880.89 2,150,993,786.10
Deferred income tax liabilities 430,369,867.93 19,672,212.64 450,042,080.57
Undistributed profit at the end
5,460,939,601.36 -28,331.75 5,460,911,269.61
of the year
Items of consolidated
After
income statement Before adjustment Amount adjusted
adjustment
(Year 2022)
Income tax expenses -185,173,776.38 301,331.78 -184,872,444.60
The enforcement of the above accounting policies has the following impact on the consolidated
balance sheet on January 1, 2022.
Unit: CNY
Items of consolidated
After
balance sheet Before adjustment Amount adjusted
adjustment
(January 01, 2022)
Deferred Income Tax
1,650,296,511.26 26,243,041.30 1,676,539,552.56
Assets
Deferred income tax
374,185,114.15 25,970,041.27 400,155,155.42
liabilities
Undistributed profit at the
8,434,403,352.08 273,000.03 8,434,676,352.11
end of the year
Cumulative impact of changes in accounting policies during the current period
140
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Unit: CNY
Affected items Current period Previous period
Net assets at the beginning of the period -28,331.75 273,000.03
Including: Retained earnings -28,331.75 273,000.03
Net Profit 443,956.60 -301,331.78
Capital reserves
Other comprehensive incomes
Special reserves
Net assets at the end of the period 415,624.85 -28,331.75
Including: Retained earnings 415,624.85 -28,331.75
VII. Description of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
Applicable □Not applicable
The Company established a new subsidiary, FAW Jiefang UNI-D (Tianjin) Technology Co., Ltd., on
April 14, 2023.
VIII. Appointment and Dismissal of Accounting Firm
Accounting Firm Currently Hired
Grant Thornton Certified Public
Name of Domestic Accounting Firm Accountants (Special General
Partnership)
Remuneration of Domestic Accounting Firm (CNY
95
10,000)
Consecutive Years of Audit Service Provided by
7 years
Domestic Accounting Firm
Name of Certified Public Accountant of Domestic
Wu Songlin, Yang Dongmin
Accounting Firm
Consecutive Years of Audit Service Provided by
Wu Songlin (1 year), Yang Dongmin (2
Certified Public Accountant of Domestic Accounting
years)
Firm
Whether to change to hire a new accounting firm in the current period
141
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
□Yes No
Employment of accounting firm, financial consultant or sponsor for internal control audit
Applicable □Not applicable
After deliberation and adoption at the 7th meeting of the 10th Board of Directors and the Fourth
Extraordinary Shareholders’ Meeting of 2023, Grant Thornton Accounting Firm (special general
partnership) was appointed as the internal control audit institution of the Company in 2023, with an
internal control audit fee of CNY 500,000.
IX. Delisting after Disclosure of Annual Report
□Applicable Not applicable
X. Matters Related to Bankruptcy Reorganization
□Applicable Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.
XI. Major Litigation and Arbitration Matters
Applicable □Not applicable
Basic Litigation Implemen
Progress
Informati Amount (Arbitrati tation of Date
Estimated of Discl
on about Involved on) Litigation of
liabilities formed Litigation osure
Litigation (CNY Results (Arbitrati Disclo
or not (Arbitrati Index
(Arbitrati 10,000) and on) sure
on)
on) Impact Judgment
Case not
Including closed by
No
estimated Case not the end of
Summary 7,169.52 significan
liabilities of CNY closed the
of other t impact
732,1600 reporting
litigation
period
not
Enforcem
reaching
ent
the major
No complete
disclosure Case
4,035.19 No significan d or a
standard closed
t impact mediation
agreemen
t reached
142
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
XII. Punishment and Rectification
□Applicable Not applicable
The company has no punishment or rectification in the reporting period.
XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operations
Applicable □Not applicable
143
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Pricin Whethe
Pric Proportio Settleme
Type Conte g r it
e of Amount of n to the Approved nt
of nt of Princi Exceed Available
Related Corr Rela Related Amount Transactio Method
Relate Relate ple of s the Market Value Date of Disclosure
Transacti elati ted Transaction of n Amount of
d d Relate Approv of Similar Disclosure Index
on Party on Tran (CNY Similar (CNY Related
Trans Trans d ed Transactions
sacti 10,000) Transacti 10,000) Transacti
action action Trans Amoun
on ons on
action t
Goods Goods
purch purch
Othe
ase ase
Fawer r Cash +
and and Mar
Auto relat Marke bill February
recept recept ket 165,960.79 2.75% 168,436 No 165,960.79
Parts ed t price settleme 11, 2023
ion of ion of price http://www.
Co., Ltd. parti nt
labor labor cninfo.com.
es
servic servic cn/new/disc
es es losure/stock
The ?stockCode
sam =000800&o
China e rgId=gssz00
FAW ulti Cash + 00800&sjsts
Sales Sales Mar
Group mate Marke bill November Bond=false
of of ket 1,156,803.06 18.10% 1,158,179 No 1,156,803.06
Import & cont t price settleme 21, 2023 #latestAnno
goods goods price
Export rolli nt uncement
Co., Ltd. ng
part
y
FAW Asso Sales Sales Marke Mar Cash + November
244,687.27 3.83% 279,005 No 244,687.27
Jiefang ciate of of t price ket bill 21, 2023
144
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Fujie d goods goods price settleme
(Tianjin) enter nt
Technolo prise
gy of
Industry the
Co., Ltd. Com
pany
Total -- -- 1,567,451.12 -- 1,605,620 -- -- -- -- --
Details of large sales returns N/A
Actual performance in the
reporting period, if the total
amount of daily related For details about the actual performance of related transactions in the reporting period, please see Item XIV "Related
transactions to be incurred in the Parties and Related Transactions" in Section X of this report.
current period is estimated by
category
Reasons for large difference
between transaction price and N/A
market reference price
145
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
2. Related transactions arising from the acquisition and sale of assets or equity
□Applicable Not applicable
The Company has no related transaction arising from the acquisition and sale of assets or equity in
the reporting period.
3. Related transactions of joint foreign investment
Applicable □Not applicable
Total Assets Net Assets Net Profit
Main
Name of Registere of the of the of the
Business
Co- Correlatio the d Capital Invested Invested Invested
of the
investor n Invested of the Enterprise Enterprise Enterprise
Invested
Enterprise Investee (CNY (CNY (CNY
Enterprise
10,000) 10,000) 10,000)
Changchu
CHINA
Ultimate n
FAW Automobi CNY
controller Automoti
GROUP le testing 11,714,40 368,415.05 341,211.16 22,084.31
of the ve Test
CO., service 0
Company Center
LTD.
Co., Ltd.
Progress of major
projects under
N/A
construction of the
investee
4. Related credit and debt transactions
Applicable □Not applicable
Whether there are non-operating related credit and debt transactions
□Yes No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with related finance companies
Applicable □Not applicable
Deposit Business
146
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Amount Incurred in
Current Period
Maximu
Depos Total Total
m Daily Opening Ending
it Deposit Withdrawal
Related Correlati Deposit Balance Balance
Interes Amount in Amount in
Parties on Limit (CNY (CNY
t Rate the Current the Current
(CNY 10,000) 10,000)
Range Period Period
10,000)
(CNY (CNY
10,000) 10,000)
Associate
d
enterprise
First
of the
Automobi 3,000,00 0.35% 1,383,293. 30,464,832. 30,443,468. 1,404,657.
Company
le Finance 0 -2.3% 43 50 41 52
, the same
Co., Ltd.
ultimate
controllin
g party
Credit Granting or Other Financial Businesses
Actual Amount
Total Amount
Related Parties Correlation Business Type Incurred (CNY
(CNY 10,000)
10,000)
Associated
enterprise of the
First Automobile Other financial
Company, the same 900,000 311,664.25
Finance Co., Ltd. businesses
ultimate controlling
party
6. Transactions between finance companies controlled by the Company and related parties
□Applicable Not applicable
There is no deposit, loan, credit granting or other financial businesses between the finance companies
controlled by the Company and related parties.
7. Other major related transactions
Applicable □Not applicable
(1) On February 10, 2023, the 31st Meeting of the 9th Board of Directors of the Company
reviewed and approved the Proposal on Estimating the Amount of Financial Business with First
Automobile Finance Co., Ltd. in 2023, the Proposal on Signing the Financial Services Framework
Agreement with First Automobile Finance Co., Ltd. and the Proposal on Estimating Daily Related
147
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Transaction Amount in 2023, which were reviewed and approved by the First Extraordinary
Shareholders' Meeting of 2023 of the Company.
(2) On November 20, 2023, the 7th Meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Increasing the Estimate of Daily Related Transactions in
2023, which was reviewed and approved at the Fourth Extraordinary Shareholders' Meeting of 2023
of the Company.
(3) On December 29, 2023, the 8th Meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Increasing the Estimate of Daily Related Transactions in
2023.
Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary Announcement Temporary Announcement Disclosure
Announcement Website
Announcement on estimated amount of CNINFO
February 11, 2023
daily related transactions in 2023 (http://www.cninfo.com.cn)
Announcement on Signing Financial
Service Framework Agreement and CNINFO
February 11, 2023
Related Party Transactions with First (http://www.cninfo.com.cn)
Automobile Finance Co., Ltd.
Announcement on estimated amount of
CNINFO
financial business with First Automobile February 11, 2023
(http://www.cninfo.com.cn)
Finance Co., Ltd. in 2023
Announcement on Increasing the
CNINFO
Estimate of Daily Related Transactions November 21, 2023
(http://www.cninfo.com.cn)
in 2023
Announcement on Increasing the
CNINFO
Estimate of Daily Related Transactions December 30, 2023
(http://www.cninfo.com.cn)
in 2023
148
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
Applicable □Not applicable
Description of lease
For details of the Company's operating lease, please refer to Note 14 "Investment real estate", Note
15 "Fixed assets", and Note 17 "Right-of-use assets" in Notes to Items in VII "Consolidated
Financial Statements" of Section X "Financial Report", and Note 5 "Information of related
transactions" in XIV "Related parties and related transactions".
Projects that bring about profits and losses exceeding 10% of the total profit of the Company in the
reporting period
□Applicable Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the total
profit of the Company in the reporting period.
2. Major guarantees
□Applicable Not applicable
The Company has no major guarantee in the reporting period.
149
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
3. Cash Assets Management Entrusted to Others
(1) Entrusted financial management
□Applicable Not applicable
The Company has no entrusted financial management in the reporting period.
(2) Entrusted loans
□Applicable Not applicable
The Company has no entrusted loans in the reporting period.
4. Other major contracts
□Applicable Not applicable
The Company has no other major contracts in the reporting period.
XVI. Other Major Matters to be Explained
Applicable □Not applicable
The 4th Meeting of the 10th Board of Directors and the 3rd Meeting of the 10th Board of
Supervisors held by the Company on June 19, 2023 reviewed and approved the Proposal on the
Company's Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company's Plan to
Issue A Shares to Specific Objects in 2023 and other proposals, which were reviewed and approved
by the Company's 2023 Second Extraordinary Shareholders' Meeting of 2023 of the Company held
on July 18, 2023. On July 18, 2023, the Company disclosed the Announcement on Matters Related
to the Issuance of A Shares to Specific Objects in 2023 Approved by China FAW Groups; on August
3, 2023, the Company disclosed the Announcement on the Application for Issuance of A Shares to
Specific Objects in 2023 Accepted by the Shenzhen Stock Exchange. ; Oon October 13, 2023, the
Company disclosed the Announcement on Issuance of A Shares to Specific Objects in 2023
Approved by Listing Audit Center of Shenzhen Stock Exchange.
For details of the above matters, please refer to the Company’s relevant announcements
published in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
XVII. Major Events of Subsidiaries
□Applicable Not applicable
150
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the Change Increase/Decrease Made by the Change (+, -) After the Change
Issue of Share Transferred
Bonus
Qty. Scale New from Accumulation Others Subtotal Qty. Scale
shares
Shares Fund
- -
I. Restricted shares 3,241,570,824 69.66% 14,433,543 0.31%
3,227,137,281 3,227,137,281
1. Shares held by
the state
2. Shares held by
- -
the state-owned 3,197,912,134 68.72%
3,197,912,134 3,197,912,134
legal person
3. Shares held by
other domestic 43,658,690 0.94% -29,225,147 -29,225,147 14,433,543 0.31%
enterprises
Including: shares
held by domestic
legal person
Shares held by 43,658,690 0.94% -29,225,147 -29,225,147 14,433,543 0.31%
151
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
domestic natural
person
4. Shares held by
foreign enterprises
Including: shares
held by overseas
legal person
Shares held by
overseas natural
person
II. Unrestricted
1,411,754,078 30.34% 3,210,810,854 3,210,810,854 4,622,564,932 99.69%
shares
1. CNY ordinary
1,411,754,078 30.34% 3,210,810,854 3,210,810,854 4,622,564,932 99.69%
shares
2. Foreign shares
listed in China
3. Foreign shares
listed overseas
4. Others
III. Total number of
4,653,324,902 100.00% -16,326,427 -16,326,427 4,636,998,475 100.00%
shares
152
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Reasons for changes in shares
Applicable □Not applicable
During the reporting period, the Company failed to achieve the performance assessment
objectives set for the second release period first granted and the first release period reserved by the
Company's Phase I restricted share incentive plan, and a total of 16,326,427 shares were repurchased
and canceled due to organizational transfer, statutory retirement and personal reasons. After the
aforesaid repurchase and cancellation, the total share capital of the Company was changed to
4,636,998,475 shares.
Approval of share changes
Applicable □Not applicable
(1) On October 28, 2022, the Proposal on Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 28th Meeting
of the 9th Board of Directors and the 24th Meeting of the 9th Board of Supervisors respectively, with
a total number of 1,359,247 restricted shares repurchased and cancelled. On November 18, 2022, the
Proposal was deliberated and approved at the Company's third Extraordinary Shareholders' Meeting
in 2022.
(2) On December 15, 2022, the Proposal on Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 30th Meeting
of the 9th Board of Directors and the 26th Meeting of the 9th Board of Supervisors respectively, with
a total number of 723,435 restricted shares repurchased and cancelled. On March 2, 2023, the
Proposal was deliberated and approved at the Company's first Extraordinary Shareholders' Meeting
in 2023.
(3) On March 31, 2023, the 32nd Meeting of the 9th Board of Directors and the 28th Meeting of
the 9th Board of Supervisors of the Company deliberated and approved the Proposal on Unsuccessful
Lifting of Conditions of the Second Release Period First Granted by the Phase I Restricted Share
Incentive Plan for Releasing the Restricted Sales and of Conditions of the First Release Period
Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and
Repurchase and Cancellation of Some Restricted Shares, with a total number of 13,909,890 restricted
shares repurchased and canceled. On April 24, 2023, the proposal was reviewed and approved at the
Company's 2022 Annual Shareholders’ Meeting.
153
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(4) The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of
Directors and the 4th Meeting of the 10th Board of Supervisors on August 29, 2023. A total of
333,855 restricted shares were repurchased and canceled. On September 28, 2023, the Proposal was
deliberated and approved at the Company's third Extraordinary Shareholders' Meeting in 2023.
Transfer of share changes
Applicable □Not applicable
(1) On January 06, 2023, the Company submitted relevant registration materials to CDSC for
1,359,247 shares involved in equity incentive repurchase and cancellation. On January 16, 2023,
CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the total
share capital of the Company was reduced to 4,651,965,655 shares.
(2) On April 20, 2023, the Company submitted relevant registration materials to CDSC for
723,435 shares involved in equity incentive repurchase and cancellation. On April 27, 2023, CSDC
issued the Confirmation of Securities Transfer Registration to the Company, and the total share
capital of the Company was reduced to 4,651,242,220 shares.
(3) On June 20, 2023, the Company submitted relevant registration materials to CDSC for
13,909,890 shares involved in equity incentive repurchase and cancellation. On June 29, 2023,
CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the total
share capital of the Company was reduced to 4,637,332,330 shares.
(4) On November 22, 2023, the Company submitted relevant registration materials to CDSC for
333,855 shares involved in equity incentive repurchase and cancellation. On November 28, 2023,
CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the total
share capital of the Company was reduced to 4,636,998,475 shares.
Impact of changes in shares on financial indicators such as basic earnings per share and diluted
earnings per share in the latest year and the latest period, and net assets per share attributable to
shareholders with ordinary shares of the Company
Applicable □Not applicable
In the reporting period, the share capital of the Company decreased by 16,326,427 shares, which
had little impact on the Company's financial indicators such as basic earnings per share, diluted
earnings per share, and net assets per share attributable to shareholders with ordinary shares of the
Company.
154
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Other information disclosed as deemed necessary by the Company or required by the securities
regulatory authority
□Applicable Not applicable
2. Changes in restricted shares
Applicable □Not applicable
Unit: share
Number
of Number of
Number of Number of
Restricted Restricted
Restricted Restricted
Name of Shares Shares Reason for
Shares at the Shares at Release Date
Shareholder Increased Released in Restriction
Beginning of the End of
in the the Current
the Period the Period
Current Period
Period
China FAW Major asset April 10,
2,413,412,134 2,413,412,134
Co., Ltd. restructuring 2023
FAW
Bestune Major asset April 10,
784,500,000 784,500,000
Car Co., restructuring 2023
Ltd.
Among them,
110,329
shares were
released from
the restriction
on April 30,
Equity
2024; the
incentives
remaining
Hu Hanjie 334,331 110,329 224,002 and post-
shares were
resignation
implemented
lock-up
in accordance
with the
restricted
share
incentive
plan.
Equity Each year,
Wu Bilei 228,552 132,560 95,992
incentive 25% of the
Equity total shares
Li Sheng 192,778 111,812 80,966
incentive held are
Zhang Equity released from
228,493 132,526 95,967
Guohua incentive restriction,
Ji Yizhi 192,778 111,812 80,966 Equity and the
155
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incentive assessment
Tian Equity objectives of
192,778 111,812 80,966
Haifeng incentive the restricted
share
Wang Equity incentive plan
192,778 111,812 80,966
Jianxun incentive are
implemented.
The restricted
Other core share
employees incentive plan
Equity
of senior 42,096,202 28,402,484 13,693,718 and
incentive
director and assessment
above objectives are
implemented.
Total 3,241,570,824 0 3,227,137,281 14,433,543 -- --
II. Issuance and Listing of Securities
1. Issuance of Securities (Excluding Preferred Share) in the Reporting Period
□Applicable Not applicable
2. Changes in the Total Number of Shares and Shareholder Structure, as well as Changes in the
Structure of the Company's Assets and Liabilities
Applicable □Not applicable
According to the Company's restricted share incentive plan, the Company repurchased and
canceled a total of 16,326,427 granted shares of incentive objects that failed to conform to the
restricted share incentive plan. The total number of shares of the Company was changed from
4,653,324,902 shares to 4,636,998,475 shares.
3. Existing Internal Employee Shares
□Applicable Not applicable
III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholdings of the Company
Unit: share
156
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Total
Number
of
Total Total
Ordinar
Number Number of
y
of Sharehold
Sharehol
Sharehol ers with
ders at Total Number of
ders Preferred
the End Preferred Shareholders
with Share with
of the with Resumed Voting
Ordinar 85,973 78,906 Restored 0 0
Last Rights at the End of
y Shares Voting
Month the Last Month before
at the Rights at
before the Disclosure Date
End of the End of
the
the the
Disclosu
Reportin Reporting
re Date
g Period Period
of the
Annual
Report
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding
Shares Lent through Securities Refinancing).
Pledge,
Increase Marking or
Number of Number
Nature and Freezing
Name of Share Shares Held of Number of
of Decrease
Sharehol proporti at the End of Restricte Unrestricted Status
Sharehol in the
der on the Reporting d Shares Shares Held of Qty
ders Reporting
Period Held Share .
Period
s
State-
China
owned
FAW 66.00% 3,060,649,901 0 0 3,060,649,901 N/A 0
legal
Co., Ltd.
person
FAW State-
Bestune owned
16.92% 784,500,000 0 0 784,500,000 N/A 0
Car Co., legal
Ltd. person
Hong
Kong
Securitie Oversea
s s legal 1.35% 62,814,959 7,974,647 0 62,814,959 N/A 0
Clearing person
Compan
y Ltd.
Domesti
Lu Min c natural 0.78% 36,096,590 0 0 36,096,590 N/A 0
person
Domesti
Chao
c natural 0.19% 8,665,558 806,200 0 8,665,558 N/A 0
Guo
person
Li Yan Domesti 0.17% 7,660,000 0 0 7,660,000 N/A 0
157
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c natural
person
Industria
l and
Commer
cial
Bank of
China
Limited-
Huatai-
PineBrid
Others 0.14% 6,440,000 2,814,000 0 6,440,000 N/A 0
ge CSI
300
Trading
Open
Index
Securitie
s
Investm
ent Fund
Zhong
Ou
AMC -
Agricult
ural
Bank of
China -
Zhong
Ou & Others 0.12% 5,549,500 0 0 5,549,500 N/A 0
CITIC
Securitie
s
Financia
l Asset
Manage
ment
Plan
Bosera
Asset
Manage
ment
Co., Ltd.
-
Agricult Others 0.12% 5,549,500 0 0 5,549,500 N/A 0
ural
Bank of
China -
Bosera
&
CITIC
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Securitie
s
Financia
l Asset
Manage
ment
Plan
Jilin
State-
Province
owned
State- 0.12% 5,345,916 -8,367,000 0 5,345,916 N/A 0
legal
owned
person
Capital
Strategic investors
or general legal
persons who
become the top 10 N/A
shareholders due to
the issuance of new
shares
Among the above shareholders, FAW Bestune is a holding subsidiary of FAW,
Description of and is a person acting in concert as specified in the Regulations for the Takeover
correlation or of Listed Companies. The public disclosure data indicates that the Company does
concerted action of not know whether there is a correlation between other shareholders of
the above outstanding shares, nor whether other shareholders of outstanding shares are
shareholders persons acting in concert as specified in the Regulations for the Takeover of
Listed Companies.
Description of
involvement of the
above shareholders
in
N/A
entrusting/entrusted
voting rights and
waiving voting
rights
Special description
of the existence of
repurchase special N/A
accounts among the
top 10 shareholders
Shareholding of Top 10 Shareholders with Unrestricted Ordinary Shares
Number of Unrestricted Shares Type of Shares
Name of Shareholder Held at the End of the Reporting Type of
Period Qty.
Shares
CNY
3,060,649,90
China FAW Co., Ltd. 3,060,649,901 ordinary
1
shares
CNY
FAW Bestune Car Co., Ltd. 784,500,000 784,500,000
ordinary
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shares
CNY
Hong Kong Securities Clearing
62,814,959 ordinary 62,814,959
Company Ltd.
shares
CNY
Lu Min 36,096,590 ordinary 36,096,590
shares
CNY
Chao Guo 8,665,558 ordinary 8,665,558
shares
CNY
Li Yan 7,660,000 ordinary 7,660,000
shares
Industrial and Commercial Bank
CNY
of China Limited-Huatai-
6,440,000 ordinary 6,440,000
PineBridge CSI 300 Trading Open
shares
Index Securities Investment Fund
Zhong Ou AMC - Agricultural
CNY
Bank of China - Zhong Ou &
5,549,500 ordinary 5,549,500
CITIC Securities Financial Asset
shares
Management Plan
Bosera Asset Management Co.,
CNY
Ltd. - Agricultural Bank of China
5,549,500 ordinary 5,549,500
- Bosera & CITIC Securities
shares
Financial Asset Management Plan
CNY
Jilin Province State-owned
5,345,916 ordinary 5,345,916
Capital
shares
Among the above shareholders, FAW Bestune is a holding
Description of correlation or subsidiary of FAW, and is a person acting in concert as specified in
concerted action between the top the Regulations for the Takeover of Listed Companies. The public
10 shareholders of unrestricted disclosure data indicates that the Company does not know whether
shares, and between the top 10 there is a correlation between other shareholders of outstanding
shareholders of unrestricted shares shares, nor whether other shareholders of outstanding shares are
and the top 10 shareholders persons acting in concert as specified in the Regulations for the
Takeover of Listed Companies.
Lu Min, a domestic natural person, holds 36,096,590 shares of the
Company through the guaranteed securities account for customer
credit trading of CITIC Securities; Chao Guo, a domestic natural
Description of participation in
person, holds 8,646,400 shares of the Company through the
financing bonds business of top
guaranteed securities account for customer credit trading of
10 shareholders with ordinary
Minsheng Securities; Li Yan, a domestic natural person, holds
shares
7,660,000 shares of the Company through the guaranteed
securities account for customer credit trading of Dongguan
Securities.
Share Lending of Top 10 Shareholders Participating in Refinancing Business
□Applicable Not applicable
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Change of Top 10 Shareholders Compared with the Previous Period
Applicable □Not applicable
Unit: share
Change of Top 10 Shareholders Compared with the End of the Previous Period
Quantity of Shares Held by
Number of Shares Lent Shareholders in Their
at the End of the Period Ordinary Accounts, Credit
Name of New/Withdrawn of Refinancing and Not Accounts, and Shares Lent
Shareholder (Full during the Yet Returned through Refinancing that
Name) Reporting Period have not yet been returned
Proportion to Proportion to
Total Total
Total Share Total Share
Quantity Quantity
Capital Capital
Industrial and
Commercial Bank
of China Limited-
Huatai-PineBridge
New 0 0.00% 0 0.00%
CSI 300 Trading
Open Index
Securities
Investment Fund
China Construction
Bank Corporation -
GF China
Securities Auto Withdrawn 0 0.00% 0 0.00%
Index-based
Securities
Investment Fund
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted
ordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinary
shares of the Company do not conduct agreed repurchase transactions in the reporting period
2. Information of Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
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Legal
Name of Date of
Representativ Organization
Controlling Establishme Main Business
e/Person in code
Shareholder nt
Charge
Automobile manufacturing and
remanufacturing, new energy
vehicle manufacturing; design,
development, manufacturing
and sales of automobile parts
and components such as engines
and transmissions; metal casting
and forging, mold processing;
engineering technology research
and test; professional technical
services; computer and software
services; thermal power
generation and power supply;
heat production and supply;
water and gas supply; road
China FAW Co., June 28, 91220101571 freight transport; warehousing;
Qiu Xiandong
Ltd. 2011 145270J sales of mechanical equipment,
hardware and electrical
equipment, electronic products
and vehicle materials; lease of
mechanical equipment;
advertising design, production
and release; business services;
labor service; sales of vehicles
and second-hand vehicles
(prohibited by laws, regulations
and decisions of the State
Council. Items subject to
approval according to the law
can be operated only after being
approved by relevant
authorities) **
Equity of Other
Domestic and
Foreign Listed
Companies
Controlled and
N/A
Participated by
Controlling
Shareholders in
the Reporting
Period
Changes in controlling shareholders in the reporting period
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□Applicable Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.
3. Company's Actual Controllers and Persons Acting in Concert
Nature of actual controller: central state-owned assets management organization
Type of actual controller: legal person
Date
Legal
of
Representative Organization c
Name of Actual Controller Establ Main Business
/Person in ode
ishme
Charge
nt
State-owned Assets Supervision and
Administration Commission of the N/A N/A N/A
State Council
Equity of Other Domestic and
Foreign Listed Companies
N/A
Controlled by Actual Controllers in
the Reporting Period
Change of actual controller in the reporting period
□Applicable Not applicable
There is no change in the actual controller of the Company in the reporting period.
Block Diagram of Property Right and Control Relationship between the Company and the Actual
Controllers
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Block Diagram of Property Right and Control Relationship between the Company and the Actual Controllers
State-owned Assets Supervision and Administration Commission of the State Council
China FAW Group Corporation Co., Ltd.
FAW Asset Management Co., Ltd. FAW Equity Investment (Tianjin) Co., Ltd.
China FAW Co., Ltd. FAW Bestune Car Co., Ltd.
FAW JIEFANG GROUP CO., LTD.
The actual controllers control the Company by trust or other asset management methods
□Applicable Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or the
largest shareholder and persons acting in concert accounts for 80% of the Company's shares
held by them.
□Applicable Not applicable
5. Other Corporate Shareholders Holding More Than 10% of the Shares
Applicable □Not applicable
Name of Legal
Date of Registered Main Business or
Corporate Representative/Person
Establishment Capital Management Activities
Shareholder in Charge
Development,
manufacturing and sales of
automobiles and parts
(including new energy
vehicles and their related
FAW
CNY batteries, motors,
Bestune Car Yang Xiao June 28, 2019
8,425,232,426 electronic controls, and
Co., Ltd.
excluding flammable and
explosive hazardous
chemicals), station wagons
and their accessories,
intelligent products and
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equipment; vehicle repair;
processing of non-standard
equipment; sales of
mechanical accessories
and mechanical and
electrical products
(excluding cars); sales of
second-hand vehicles;
lease of vehicles; lease of
premises and plant; road
general cargo
transportation; modern
trade logistics services;
technical services and
technical consultation in
the automobile field; using
the Internet to engage in
automobile operation;
import and export of goods
and technology (excluding
publication import and
export business, as well as
commodities and
technologies that are
restricted or prohibited for
import and export by the
state); second-hand vehicle
brokerage; part-time
insurance agency business;
motor vehicle repair and
maintenance; recycling of
end-of-life motor vehicles;
disassembly of end-of-life
motor vehicles; business
training (excluding
education training,
vocational skills training
and other training
requiring licenses);
stationery retail, stationery
wholesale; sales of
automotive decoration
products; sales of
lubricating oil; IoT
technology R&D and
technical services;
manufacturing of power
transmission and
distribution and control
equipment; advertising
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design, agency;
advertising production;
advertisement release
(non-radio stations, TV
stations, newspapers and
periodicals publishers);
labor service (excluding
labor dispatch); motor
vehicle safety technology
testing service; artificial
intelligence public data
platform; data processing
and storage support
services; Internet data
service; inspection and
testing services; general
cargo warehousing
services (excluding
hazardous chemicals and
other items requiring
licensing and approval);
marketing planning; lease
of computer and
communication
equipment; conference and
exhibition services; lease
of mechanical equipment;
Category I value-added
telecommunications
services; Category II
value-added
telecommunications
services; intellectual
property services (items
subject to approval
according to law can be
operated only after being
approved by relevant
authorities).
6. Restricted Reduction of Shares Held by Controlling Shareholders, Actual Controllers,
Restructuring Parties and Other Commitment Subjects
□Applicable Not applicable
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IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
□Applicable Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized Bidding
□Applicable Not applicable
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Section VIII Preferred Shares
□Applicable Not applicable
The Company has no preferred shares in the reporting period.
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Section IX Bonds
□Applicable Not applicable
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Section X Financial Report
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Signing Date of Auditor Report March 28, 2024
Grant Thornton Certified Public Accountants (Special General
Name of Audit Institution
Partnership)
Audit Report No. ZTSZ (2024) No. 110A005436
Name of Certified Public
Wu Songlin and Yang Dongmin
Accountant
Text of Auditor Report
All shareholders of FAW JIEFANG GROUP CO., LTD.:
I. Auditor’s Opinion
We have audited the financial statements of FAW Jiefang Group Co., Ltd. (hereinafter referred
to as "FAW Jiefang"), including the Consolidated and the Company's Balance Sheets on December
31, 2023, the Consolidated and the Company's Income Statements, the Consolidated and the
Company's Cash Flow Statements, and the Consolidated and the Company's Statements of Changes
in Shareholders' Equity in 2023, and the Notes to Financial Statements for the year then ended.
In our opinion, the attached financial statements were compiled as per the provisions of
Accounting Standards for Business Enterprises (ASBE) in all major aspects and can fairly present
the consolidated and FAW Jiefang's financial status as of December 31, 2023, as well as their
business performance and cash flows for the year then ended.
II. Basis for Opinion
We have conducted our audit in accordance with the Auditing Standards for Certified Public
Accountants of China. The section in the Auditor’s Report titled “CPAs’ Responsibilities for the
Audit of the Financial Statements” further describes our responsibilities under these standards. We
are independent of FAW Jiefang in accordance with the China Code of Ethics for Certified Public
Accountants and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit.
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III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, we consider to be most
significant to the audit of the financial statements for the period. These matters were addressed in the
context of our audit for the entire financial statements and the formation of our opinions thereon. We
do not declare a separate opinion on these matters.
(I) Income Recognition
For details of relevant information disclosure, refer to 26 in Note III and 43 in Note VII to the
financial statements.
1. Description
The sales revenue of FAW Jiefang mainly comes from the vehicle sales business. In 2023,
FAW Jiefang realized an operating income of CNY 63,904,532,500, of which the vehicle sales
revenue was CNY 58,781,305,500, accounting for 91.98%. According to the specific method of
income recognition of FAW Jiefang, the income is recognized when the complete vehicle and its
accessories have been delivered to the delivery location as agreed in the contract, and the customer
has accepted the goods and obtained control of the goods. The vehicle sales income has a significant
impact on the financial statements of FAW Jiefang, so we identified income recognition as a key
audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Understand the effectiveness of internal control design related to income recognition, and
test the effectiveness of key control implementation;
(2) Analyze the income and gross profit rate in combination with the product type, and compare
them with the data of the same industry to judge whether the income and gross profit rate in the
current period are abnormal;
(3) Interview with the management, check the terms of the sales contract, analyze and judge the
time point of the control right transfer of vehicle sales, and evaluate the rationality of the income
recognition policy;
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(4) Conduct the spot check on the supporting documents related to income recognition,
including sales contracts, orders, sales invoices, product transportation documents, customer receipts,
etc.;
(5) Execute transaction and correspondence confirmation for the sales business of major and
new customers;
(6) For the sales revenue recognized before and after the balance sheet date, check the basis for
customer receipt confirmation, and evaluate whether the sales revenue is recorded in the appropriate
period.
(II) Provision for Decline in Value of Inventories
For details of relevant information disclosure, refer to 13 in Note III and 7 in Note V to the
financial statements.
1. Description
As of December 31, 2023, the book balance of inventory of FAW Jiefang was CNY
9,601,592,300, and the balance of inventory depreciation reserves was CNY 390,620,900, of which
CNY 195,269,300 was provided in the current period. The provision amount for decline in value of
inventories is significant and requires significant judgment of the management, so we identified the
provision for decline in value of inventories as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the design and operational effectiveness of key internal controls related to
the provision for inventory depreciation reserves by the management;
(2) Obtain the Calculation Sheet of Inventory Depreciation Reserves of FAW Jiefang, conduct
inventory depreciation tests, analyze the changes in provision for inventory depreciation reserves
made in previous years and analyze whether the provision for inventory depreciation reserves in the
current period is sufficient;
(3) Check the quantity and status of inventories in combination with the inventory supervision
procedures, focus on checking long-aged inventories, and analyze the adequacy of provision for
depreciation reserves of inventories with signs of impairment;
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(4) Check the changes in the provision for inventory depreciation reserves made in previous
years in the current period, and analyze the rationality of the changes in the inventory depreciation
reserves.
(III) Provision for Product Quality Guarantee Deposit
For details of relevant information disclosure, refer to 24 in Note III and 35 and 45 in Note V to
the financial statements.
1. Description
As of December 31, 2023, FAW Jiefang has provided a product quality deposit of CNY
572,738,100 in the current year, and the balance of a product quality deposit in the estimated
liabilities is CNY 711,161,700. Based on the vehicle sales contract and relevant national laws and
regulations, customers can obtain warranty services provided by FAW Jiefang within the warranty
period. The management of FAW Jiefang calculates the product quality deposit based on the relevant
provisions in the product type, warranty period and warranty obligation clauses. The provision
amount of product quality guarantee deposit is relatively large and involves significant estimation
and judgment of the management, so we identified the provision for product quality guarantee
deposit as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the effectiveness of key internal control design and operation of key
internal controls related to the provision for product quality deposit;
(2) Understand and evaluate whether the accounting policies related to the provision for product
quality deposit are appropriate and consistently applied;
(3) Understand and evaluate the rationality of the method and calculation model adopted by
FAW Jiefang for the provision for the product quality deposit according to laws, regulations and
contract terms;
(4) Perform recalculation procedures to verify the accuracy of the management's provision for
product quality deposit.
IV. Other Information
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The management of FAW Jiefang (hereinafter referred to as the management) is responsible for
other information. Other information comprises the information included in the Annual Report of
Year 2023 of FAW Jiefang, but does not include the financial statements and our auditor’s report
thereon.
Our audit opinion on the financial statements does not cover other information, and we do not
express an assurance conclusion of any kind on other information.
Based on our audit of the financial statements, our responsibility is to consider whether other
information has material inconsistency or seems to have material misstatement with the financial
statements or circumstances that we know during the audit while reading other information.
Based on the work we have performed, if we determine that other information is materially
misstated, we should report that fact. In this regard, we have nothing to report.
V. Responsibilities of Management and Governance for the Financial Statements
The management of FAW Jiefang shall be responsible for preparing financial statements that
present fairly the data in accordance with the Accounting Standards for Business Enterprises, and for
designing, implementing and maintaining the internal controls as the management deems necessary
to enable the preparation of financial statements free from material misstatement, whether due to
fraud or error.
In preparation of the financial statement, the management is responsible for assessing FAW
Jiefang’s sustainable operation ability, disclosing the sustainable operation related items (if
applicable) and applying sustainable operation assumptions, unless otherwise the management plans
to liquidate FAW Jiefang, stop operation or it has no other practical choice.
The governance is responsible for supervising the financial reporting process of FAW Jiefang.
VI. CPAs’ Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a
whole are free from material misstatement caused by fraud or error, and to issue an Auditor’s Report
containing our opinions. Reasonable assurance is a high level of assurance, but it does not guarantee
that an audit conducted in accordance with auditing standards can always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
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if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions users would take on the basis of these financial statements.
We exercise professional judgment and maintain professional skepticism in carrying out our
audit in accordance with the Auditing Standards. At the same time, we also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of failing to
detect a material misstatement due to fraud is higher than that due to error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or overriding internal controls.
(2) Understand the internal controls related to the audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going-concern assumption.
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on FAW Jiefang's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on information available as of the date of the
Auditor's Report. However, future events or conditions may cause FAW Jiefang to cease to continue
as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and
whether the financial statements can fairly reflect the transactions and items.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entity
or business activities within FAW Jiefang to express an opinion on the financial statements. We are
responsible for guiding, supervising, and performing the group audit, and assume all responsibilities
for our opinion.
We communicate with the Governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
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We also provide the governance with a statement regarding compliance with ethical
requirements related to independence and communicate with the governance about all relationships
and other matters that could reasonably be considered to affect our independence, as well as related
precautions (if applicable).
From the matters communicated with the governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We have described these matters in the Auditor’s Report, except that they are
prohibited from being publicly disclosed as per the laws and regulations, or in the rare cases, if a
negative result that may be caused by communicating some matter in the auditor’s report as
reasonably expected exceeds the benefit generated by the public interest, we determine not to
communicate such matter in the auditor’s report.
II. Financial Statements
The unit in the notes to the financial statement is CNY
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
December 31, 2023
Unit: CNY
Item December 31, 2023 January 01, 2023
Current assets:
Monetary capital 22,920,710,903.12 21,041,473,417.71
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for
trading
Derivative financial assets
Notes receivable 44,626,048.13 186,748,716.22
Accounts receivable 1,989,386,169.77 867,090,338.42
Accounts receivable financing 4,878,126,972.73 3,461,653,473.66
Prepayments 689,621,097.66 897,834,864.08
Premiums receivable
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Reinsurance accounts
receivable
Reinsurance contract reserves
receivable
Other receivables 1,309,376,221.57 1,068,454,162.91
Including: interests receivable
Dividends receivable 2,608,000.00
Financial assets purchased
under agreements to resell
Inventories 9,210,971,356.15 6,382,739,897.83
Contract assets 17,582,856.82 11,129,624.75
Held-for-sale assets
Current portion of non-current
222,664,624.89 191,262,030.30
assets
Other current assets 1,032,089,815.23 894,927,499.59
Total current assets 42,315,156,066.07 35,003,314,025.47
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 132,031,253.27 121,606,587.43
Long-term equity investments 5,469,591,970.26 4,692,648,635.84
Other equity instruments
480,780,000.00 480,780,000.00
investments
Other non-current financial
assets
Investment properties 47,049,995.53 80,647,597.48
Fixed assets 11,380,286,165.58 9,612,922,810.28
Project under construction 816,484,299.18 1,902,143,354.11
Productive biological assets
Oil and gas assets
Right-of-use assets 138,989,886.70 198,220,342.59
Intangible assets 2,438,433,780.65 2,549,096,918.05
Development expenditures 109,873,830.59
Goodwill
Long-term deferred expenses 130,439.66
Deferred income tax assets 2,544,710,679.48 2,150,993,786.10
Other non-current assets
Total non-current assets 23,558,231,861.24 21,789,190,471.54
Total assets 65,873,387,927.31 56,792,504,497.01
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Current liabilities:
Short-term loans
Borrowing from the central
bank
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 11,769,864,678.11 9,198,593,038.03
Accounts payable 16,495,571,442.45 10,033,608,668.06
Advance receipts 641,221.46 1,861,865.37
Contract liabilities 2,204,692,602.77 1,629,524,704.35
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation
402,039,885.19 436,648,178.76
payable
Taxes payable 129,222,373.32 301,211,845.51
Other payables 5,305,057,045.18 6,095,452,748.17
Including: interests payable
Dividends payable 171,500.02 171,500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
27,171,195.40 32,998,374.87
liabilities
Other current liabilities 214,456,037.00 133,584,259.07
Total current liabilities 36,548,716,480.88 27,863,483,682.19
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities 30,494,014.13 54,814,603.06
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Long-term payables
Long-term employee
672,957,633.25 707,310,890.43
compensation payable
Estimated liabilities 735,710,304.03 875,468,804.10
Deferred income 2,983,678,367.53 3,121,985,685.93
Deferred income tax liabilities 415,071,758.09 450,042,080.57
Other non-current liabilities
Total non-current liabilities 4,837,912,077.03 5,209,622,064.09
Total liabilities 41,386,628,557.91 33,073,105,746.28
Owner's equities:
Share capital 4,636,485,668.00 4,651,965,655.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 10,343,418,951.73 10,451,088,236.74
Less: treasury shares 86,131,497.27 267,837,184.11
Other comprehensive incomes -8,514,110.10 -5,399,120.81
Special reserves 319,314,527.85 370,420,291.86
Surplus reserves 3,090,408,316.87 3,058,249,602.44
General risk provision
Undistributed profits 6,191,777,512.32 5,460,911,269.61
Total equity attributable to 23,719,398,750.73
24,486,759,369.40
owners of the parent company
Minority equity
Total Owners' Equity 24,486,759,369.40 23,719,398,750.73
Total liabilities and owner's 56,792,504,497.01
65,873,387,927.31
equities
Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of the
accounting organization: Si Yuzhuo
2. Balance sheet of parent company
Unit: CNY
Item December 31, 2023 January 01, 2023
Current assets:
Monetary capital 165,157,237.21 5,776,955.29
Financial assets held for
trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 84,000.00
Other receivables 219,864.00 224,132.76
179
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Including: interests receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 261,636.19 141,004.41
Total current assets 165,722,737.40 6,142,092.46
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 25,594,049,970.19 25,580,280,570.19
Other equity instruments
investments
Other non-current financial
assets
Investment properties
Fixed assets
Project under construction
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets 25,594,049,970.19 25,580,280,570.19
Total assets 25,759,772,707.59 25,586,422,662.65
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 250,327.84 964,364.48
180
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Advance receipts
Contract liabilities
Employee compensation
payable
Taxes payable 3,368,528.10 3,264,343.98
Other payables 90,343,250.16 298,294,257.75
Including: interests payable
Dividends payable 171,500.02 171,500.02
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 93,962,106.10 302,522,966.21
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 93,962,106.10 302,522,966.21
Owner's equities:
Share capital 4,636,485,668.00 4,651,965,655.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 12,171,693,342.10 12,278,939,213.88
Less: treasury shares 86,131,497.27 267,837,184.11
Other comprehensive incomes 863,137.93 -480,794.77
Special reserves
Surplus reserves 1,859,690,555.97 1,827,531,841.54
Undistributed profits 7,083,209,394.76 6,793,780,964.90
Total owners' equity 25,665,810,601.49 25,283,899,696.44
Total liabilities and owner's
25,759,772,707.59 25,586,422,662.65
equities
181
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3. Consolidated profit statement
Unit: CNY
Item 2023 2022
I. Total operating income 63,904,532,477.03 38,331,747,083.88
Including: operating income 63,904,532,477.03 38,331,747,083.88
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 64,495,447,535.46 40,599,244,915.95
Including: operating cost 58,629,635,711.55 35,252,170,886.53
Interest expense
Handling charges and commission expense
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance liabilities
Policy dividend expenditure
Reinsurance expenses
Taxes and surcharges 262,169,095.70 207,798,168.60
Sales expenses 1,605,495,233.98 1,255,882,221.64
Administrative expenses 1,931,279,477.64 2,040,339,354.62
R&D expenses 2,982,257,879.16 2,895,655,097.73
Financial expenses -915,389,862.57 -1,052,600,813.17
Including: interest expenses 3,801,492.51 5,602,156.49
Interest income 768,570,466.66 949,854,588.85
Add: Other incomes 612,891,544.77 1,638,060,139.20
Investment income (loss to be listed with “-”) 282,328,848.08 236,918,218.51
Including: income from investment in associates and joint
347,980,074.28 346,588,767.31
ventures
Gains on derecognition of financial assets at amortized
cost
Foreign exchange gains (loss to be listed with "-")
Net exposure hedging income (loss to be listed with "-")
Profit arising from changes in fair value (loss to be listed
with "-")
Credit impairment loss (loss to be listed with “-”) -53,553,998.32 919,157.09
182
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Asset impairment loss (loss to be listed with “-”) -201,626,584.54 -424,288,578.25
Income from assets disposal (loss to be listed with “-”) 192,669,498.68 871,031,108.06
III. Operating profit (loss to be listed with "-") 241,794,250.24 55,142,212.54
Add: non-operating income 197,837,768.23 153,997,194.43
Less: non-operating expenses 24,463,320.77 26,567,738.01
IV. Total profit (loss to be listed with "-") 415,168,697.70 182,571,668.96
Less: income tax expenses -347,856,259.44 -184,872,444.60
V. Net profit (net loss to be listed with "-") 763,024,957.14 367,444,113.56
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to be
763,024,957.14 367,444,113.56
listed with "-")
2. Net profit from discontinuing operations (net loss to be
listed with "-")
(II) Classified by attribution of the ownership
1. Net profit attributable to the parent company's
763,024,957.14 367,444,113.56
shareholders
2. Minority interests
VI. Net after-tax amount of other comprehensive income -3,114,989.29 27,395,781.39
Net after-tax amount of other comprehensive income
-3,114,989.29 27,395,781.39
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be
-4,710,588.55 27,800,000.00
reclassified into profits or losses
1. Changes arising from re-measurement of the defined
-5,170,000.00 27,800,000.00
benefit plan
2. Other comprehensive incomes that cannot be
459,411.45
transferred to profits or losses under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the Company’s credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
1,595,599.26 -404,218.61
into profits or losses
1. Other comprehensive incomes that can be transferred
871,354.25 -784,908.08
to profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4. Other debt investment credit impairment provisions
5. Cash flow hedging reserve
6. Translation difference in foreign currency financial
724,245.01 380,689.47
statements
7. Others
Net after-tax amount of other comprehensive income
attributable to minority shareholders
183
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VII. Total comprehensive income 759,909,967.85 394,839,894.95
Total comprehensive income attributable to the owners of
759,909,967.85 394,839,894.95
parent company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.1651 0.0734
(II) Diluted income per share 0.1651 0.0734
In the case of a business combination under common control in the current period, the net profit
realized by the combined party before combination and that in the previous period are CNY 0.00.
Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of the
accounting organization: Si Yuzhuo
4. Profit statement of parent company
Unit: CNY
Item 2023 2022
I. Operating income 0.00 0.00
Less: operating costs 0.00 0.00
Taxes and surcharges 93,606.12 112,763.40
Sales expenses
Administrative expenses 3,496,572.38 3,603,463.88
R&D expenses
Financial expenses 465,699.73 88,801.55
Including: interest expenses 644,156.98 338,917.37
Interest income 184,637.25 250,875.82
Add: Other incomes 344,768.40 528,150.13
Investment income (loss to be listed with “-”) 325,302,522.88 3,163,832,151.72
Including: income from investment in associates and joint
325,302,522.88 364,182,151.72
ventures
Gains on derecognition of financial assets at amortized
cost (loss to be listed with "-")
Net exposure hedging income (loss to be listed with "-")
Profit arising from changes in fair value (loss to be listed
with "-")
Credit impairment loss (loss to be listed with “-”) -4,268.76 -208,297.04
Asset impairment loss (loss to be listed with “-”)
Income from assets disposal (loss to be listed with “-”)
II. Operating profit (loss to be listed with "-") 321,587,144.29 3,160,346,975.98
184
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Add: non-operating income 0.07
Less: non-operating expenses
III. Total profit (total loss to be listed with "-") 321,587,144.29 3,160,346,976.05
Less: Income Tax Expenses
IV. Net profit (net loss to be listed with "-") 321,587,144.29 3,160,346,976.05
(I) Net profit from continuing operations (net loss to be
321,587,144.29 3,160,346,976.05
listed with "-")
(II) Net profit from discontinuing operations (net loss to
be listed with "-")
V. Net after-tax amount of other comprehensive incomes 1,343,932.70 -784,908.08
(I) Other comprehensive incomes that cannot be
472,578.45
reclassified into profits or losses
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be
472,578.45
transferred to profits or losses under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the Company’s credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
871,354.25 -784,908.08
into profits or losses
1. Other comprehensive incomes that can be transferred
871,354.25 -784,908.08
to profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4. Other debt investment credit impairment provisions
5. Cash flow hedging reserve
6. Translation difference in foreign currency financial
statements
7. Others
VI. Total comprehensive income 322,931,076.99 3,159,562,067.97
VII. Income per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated cash flow statement
Unit: CNY
Item 2023 2022
I. Cash flows from operating activities:
Cash received from sales of goods and provision of
59,619,602,424.77 41,009,913,172.02
services
Net increase in customer bank deposits and due to banks
and other financial institutions
185
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Net increase in borrowings from the central bank
Net increase in placements from other financial
institutions
Cash from premium of original insurance contract
Net cash received from reinsurance business
Net increase in deposits and investments from
policyholders
Cash received from interests, handling charges and
commissions
Net increase in placements from banks and other financial
institutions
Net increase in repurchase business capital
Net cash received from securities brokerage
Tax refunds received 820,160,322.26 1,413,758,222.98
Other cash received relating to operating activities 1,869,141,352.94 2,354,350,299.80
Subtotal of cash inflows from operating activities 62,308,904,099.97 44,778,021,694.80
Cash paid for goods and services 49,371,210,891.85 42,672,008,807.22
Net increase in loans and advances to customers
Net increase in deposits with central bank and other
financial institutions
Cash paid for original insurance contract claims
Net increase in loans to banks and other financial
institutions
Cash paid for interests, handling charges and
commissions
Cash paid for policyholder dividend
Cash paid to and on behalf of employees 5,292,273,257.85 4,767,225,368.39
Taxes paid 1,730,516,426.89 979,329,590.98
Cash paid for other operating activities 1,713,185,801.86 1,494,701,897.56
Subtotal of cash outflows from operating activities 58,107,186,378.45 49,913,265,664.15
Net cash flows from operating activities 4,201,717,721.52 -5,135,243,969.35
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment income 299,242,143.02 461,970,529.25
Net cash received from disposal of fixed assets, intangible
105,701,924.82 455,276,221.08
assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other business entities
Cash received from other investment activities 798,551,894.65
Subtotal of cash inflows from investment activities 404,944,067.84 1,715,798,644.98
Cash paid to acquire fixed assets, intangible assets and
2,251,350,615.06 2,828,776,203.30
other long-term assets
Cash paid to acquire investments 529,266,800.00 516,780,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
units
186
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Other cash paid relating to investment activities 17,676,304.33
Subtotal of cash outflows from investment activities 2,798,293,719.39 3,345,556,203.30
Net cash flows from investment activities -2,393,349,651.55 -1,629,757,558.32
III. Cash flows from financing activities:
Cash received from absorbing investment
Including: cash received by subsidiaries absorbing
minority shareholders' investments
Cash received from borrowings
Cash received relating to other financing activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits or interest
3,025,174,498.45
repayment
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 22,968,693.24 55,183,852.56
Subtotal of cash outflows from financing activities 22,968,693.24 3,080,358,351.01
Net cash flows from financing activities -22,968,693.24 -3,080,358,351.01
IV. Effects from change of exchange rate on cash and
775,450.68 352,712.97
cash equivalents
V. Net increase in cash and cash equivalents 1,786,174,827.41 -9,845,007,165.71
Add: opening balance of cash and cash equivalents 20,697,669,726.18 30,542,676,891.89
VI. Ending Balance of cash and cash equivalents 22,483,844,553.59 20,697,669,726.18
6. Cash flow statement of parent company
Unit: CNY
Item 2023 2022
I. Cash flows from operating activities:
Cash received from sales of goods and provision of services
Tax refunds received 735,000.75
Other cash received relating to operating activities 100,021,565.10 3,050,893,952.65
Subtotal of cash inflows from operating activities 100,021,565.10 3,051,628,953.40
Cash paid for goods and services
Cash paid to and on behalf of employees 378,000.00 396,000.00
Taxes paid 99,071.82 96,728.40
Cash paid for other operating activities 226,723,494.82 3,276,840,147.92
Subtotal of cash outflows from operating activities 227,200,566.64 3,277,332,876.32
-
Net cash flows from operating activities -225,703,922.92
127,179,001.54
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment income 288,101,230.25 3,246,753,477.04
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
business entities
187
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Cash received from other investment activities 250,875.82
Subtotal of cash inflows from investment activities 288,101,230.25 3,247,004,352.86
Cash paid to acquire fixed assets, intangible assets and other
long-term assets
Cash paid to acquire investments
Net cash paid to acquire subsidiaries and other business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment activities
Net cash flows from investment activities 288,101,230.25 3,247,004,352.86
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings
Cash received relating to other financing activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits or interest
3,025,174,498.45
repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 3,025,174,498.45
-
Net cash flows from financing activities
3,025,174,498.45
IV. Effects from change of exchange rate on cash and cash
equivalents
V. Net increase in cash and cash equivalents 160,922,228.71 -3,874,068.51
Add: opening balance of cash and cash equivalents 4,235,008.50 8,109,077.01
VI. Ending Balance of cash and cash equivalents 165,157,237.21 4,235,008.50
7. Consolidated statement of changes in owners' equity
188
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Amount in the current period
Unit: CNY
2023
Equity Attributable To Owners of the Parent Company
Gene Min
Other ority
Less: Special ral Undistrib
Other Equity Capital Compre Surplus Oth Equi
Treasury Reserve Risk uted Subtotal
Item Instruments Reserves hensive Reserves ers ty Total
Shares s Provi Profits
Share Incomes Owners'
sion
Capital Equity
Prefe Perp
rred etual Oth
Shar Bon ers
es d
I. Ending
Balance -
4,651,965 10,451,08 267,837, 370,420, 3,058,249 5,460,939 23,719,42 23,719,42
of the 5,399,12
,655.00 8,236.74 184.11 291.86 ,602.44 ,601.36 7,082.48 7,082.48
previous 0.81
year
Add:
changes
- - -
in
28,331.75 28,331.75 28,331.75
accountin
g policies
Correctio
n of prior
period
errors
Others
189
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II.
Opening
-
Balance 4,651,965 10,451,08 267,837, 370,420, 3,058,249 5,460,911 23,719,39 23,719,39
5,399,12
of the ,655.00 8,236.74 184.11 291.86 ,602.44 ,269.61 8,750.73 8,750.73
0.81
current
year
III.
Increase/
decrease
in amount
of the - - - - -
32,158,71 730,866,2 767,360,6 767,360,6
current 15,479,98 107,669,2 181,705, 3,114,98 51,105,7
4.43 42.71 18.67 18.67
period 7.00 85.01 686.84 9.29 64.01
(decrease
to be
listed
with "-")
(I) Total
-
comprehe 763,024,9 759,909,9 759,909,9
3,114,98
nsive 57.14 67.85 67.85
9.29
income
(II)
Invested
- - -
and 58,556,41 58,556,41
15,479,98 107,669,2 181,705,
decreased 4.83 4.83
7.00 85.01 686.84
capital of
owners
1. - - - -
Ordinary 15,479,98 82,470,04 97,950,03 97,950,03
shares 7.00 6.45 3.45 3.45
invested
190
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by
owners
2. Capital
contribut
ed by
holders of
other
equity
instrumen
ts
3.
Amounts
of share-
based - - -
payments 24,775,82 24,775,82 24,775,82
recorded 5.33 5.33 5.33
in
owner's
equity
- -
181,282,2 181,282,2
4. Others 423,413.2 181,705,
73.61 73.61
3 686.84
(III)
-
Profit 32,158,71
32,158,71
distributi 4.43
4.43
on
1.
Appropri -
32,158,71
ation to 32,158,71
4.43
surplus 4.43
reserves
191
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2.
Appropri
ation to
general
risk
reserves
3.
Distributi
on to
owners
(or
sharehold
ers)
4. Others
(IV)
Internal
carryover
of
owners'
equity
1.
Transfer
from
capital
reserve to
paid-in
capital
(or share
capital)
2.
192
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Transfer
from
surplus
reserves
to paid-in
capital
(or share
capital)
3.
Recovery
of losses
by
surplus
reserves
4.
Retained
earnings
carried
forward
from
changes
in defined
benefit
plans
5.
Retained
earnings
carried
forward
from
other
193
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comprehe
nsive
income
6. Others
(V) - - -
Special 51,105,7 51,105,76 51,105,76
reserves 64.01 4.01 4.01
1.
Appropri
ation in 37,672,2 37,672,28 37,672,28
the 87.45 7.45 7.45
current
period
2. Use in
- - -
the
88,778,0 88,778,05 88,778,05
current
51.46 1.46 1.46
period
(VI)
Others
IV.
Ending
-
Balance 4,636,485 10,343,41 86,131,4 319,314, 3,090,408 6,191,777 24,486,75 24,486,75
8,514,11
of the ,668.00 8,951.73 97.27 527.85 ,316.87 ,512.32 9,369.40 9,369.40
0.10
current
period
Amount of the Previous Period
Unit: CNY
Item 2022
194
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Equity Attributable To Owners of the Parent Company
Other Equity
Gene Min
Instruments Other Total
Less: ral Undistrib ority
Share Prefe Capital Compre Special Surplus Oth Owners'
Perp Treasury Risk uted Subtotal Equi
Capital rred Oth Reserves hensive Reserves Reserves ers Equity
etual Shares Provi Profits ty
Shar ers Incomes
Bond sion
es
I. Ending
Balance -
4,654,114 10,439,36 310,460, 315,398, 2,742,214 8,434,403 26,242,24 26,242,24
of the 32,794,9
,613.00 5,093.18 486.38 148.75 ,904.83 ,352.08 0,723.26 0,723.26
previous 02.20
year
Add:
changes
273,000.0 273,000.0 273,000.0
in
3 3 3
accountin
g policies
Correctio
n of prior
period
errors
Others
II.
Opening
-
Balance 4,654,114 10,439,36 310,460, 315,398, 2,742,214 8,434,676 26,242,51 26,242,51
32,794,9
of the ,613.00 5,093.18 486.38 148.75 ,904.83 ,352.11 3,723.29 3,723.29
02.20
current
year
III. - 11,723,14 - 27,395,7 55,022,1 316,034,6 - - -
Increase/ 2,148,958 3.56 42,623,3 81.39 43.11 97.61 2,973,765 2,523,114, 2,523,114,
195
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decrease .00 02.27 ,082.50 972.56 972.56
in amount
of the
current
period
(decrease
to be
listed
with "-")
(I) Total
comprehe 27,395,7 367,444,1 394,839,8 394,839,8
nsive 81.39 13.56 94.95 94.95
income
(II)
Invested
- -
and 11,723,14 52,197,48 52,197,48
2,148,958 42,623,3
decreased 3.56 7.83 7.83
.00 02.27
capital of
owners
1.
Ordinary
- - - -
shares
2,148,958 11,582,88 13,731,84 13,731,84
invested
.00 3.62 1.62 1.62
by
owners
2. Capital
contribute
d by
holders of
other
equity
196
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instrumen
ts
3.
Amounts
of share-
based
23,184,43 23,184,43 23,184,43
payments
3.06 3.06 3.06
recorded
in
owner's
equity
-
121,594.1 42,744,89 42,744,89
4. Others 42,623,3
2 6.39 6.39
02.27
(III)
- - -
Profit 316,034,6
3,341,209 3,025,174, 3,025,174,
distributi 97.61
,196.06 498.45 498.45
on
1.
Appropri -
316,034,6
ation to 316,034,6
97.61
surplus 97.61
reserves
2.
Appropri
ation to
general
risk
reserves
3. - - -
Distributi 3,025,174 3,025,174, 3,025,174,
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on to ,498.45 498.45 498.45
owners
(or
sharehold
ers)
4. Others
(IV)
Internal
carryover
of
owners'
equity
1.
Transfer
from
capital
reserve to
paid-in
capital (or
share
capital)
2.
Transfer
from
surplus
reserves
to paid-in
capital (or
share
capital)
3.
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Recovery
of losses
by
surplus
reserves
4.
Retained
earnings
carried
forward
from
changes
in defined
benefit
plans
5.
Retained
earnings
carried
forward
from
other
comprehe
nsive
income
6. Others
(V)
55,022,1 55,022,14 55,022,14
Special
43.11 3.11 3.11
reserves
1. 93,946,1 93,946,19 93,946,19
Appropri 99.30 9.30 9.30
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ation in
the
current
period
2. Use in
- - -
the
38,924,0 38,924,05 38,924,05
current
56.19 6.19 6.19
period
(VI)
Others
IV.
Ending
-
Balance 4,651,965 10,451,08 267,837, 370,420, 3,058,249 5,460,911 23,719,39 23,719,39
5,399,12
of the ,655.00 8,236.74 184.11 291.86 ,602.44 ,269.61 8,750.73 8,750.73
0.81
current
period
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the Current Period
Unit: CNY
2023
Other Equity
Instruments Other Speci
Item Less: Total
Share Capital Comprehe al Surplus Undistribute Oth
Prefer Perpet Treasury Owners'
Capital Oth Reserves nsive Reser Reserves d Profits ers
red ual Shares Equity
ers Incomes ves
Shares Bond
200
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I. Ending
Balance of 4,651,965,6 12,278,939,2 267,837,18 - 1,827,531,8 6,793,780,9 25,283,899,6
the previous 55.00 13.88 4.11 480,794.77 41.54 64.90 96.44
year
Add:
changes in
accounting
policies
Correction
of prior
period
errors
Others
II. Opening
Balance of 4,651,965,6 12,278,939,2 267,837,18 - 1,827,531,8 6,793,780,9 25,283,899,6
the current 55.00 13.88 4.11 480,794.77 41.54 64.90 96.44
year
III.
Increase/dec
rease in
amount of - - -
1,343,932. 32,158,714. 289,428,429 381,910,905.
the current 15,479,987. 107,245,871. 181,705,68
70 43 .86 05
period 00 78 6.84
(decrease to
be listed
with "-")
(I) Total
1,343,932. 321,587,144 322,931,076.
comprehensi
70 .29 99
ve income
(II) Invested - - - 58,979,828.0
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and 15,479,987. 107,245,871. 181,705,68 6
decreased 00 78 6.84
capital of
owners
1. Ordinary
- - -
shares
15,479,987. 82,470,046.4 97,950,033.4
invested by
00 5 5
owners
2. Capital
contributed
by holders
of other
equity
instruments
3. Amounts
of share-
based - -
payments 24,775,825.3 24,775,825.3
recorded in 3 3
owner's
equity
-
181,705,686.
4. Others 181,705,68
84
6.84
-
(III) Profit 32,158,714.
32,158,714.
distribution 43
43
1. -
Appropriati 32,158,714.
32,158,714.
on to 43
43
surplus
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reserves
2.
Distribution
to owners
(or
shareholders
)
3. Others
(IV) Internal
carryover of
owners'
equity
1. Transfer
from capital
reserve to
paid-in
capital (or
share
capital)
2. Transfer
from surplus
reserves to
paid-in
capital (or
share
capital)
3. Recovery
of losses by
surplus
reserves
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4. Retained
earnings
carried
forward
from
changes in
defined
benefit
plans
5. Retained
earnings
carried
forward
from other
comprehensi
ve income
6. Others
(V) Special
reserves
1.
Appropriati
on in the
current
period
2. Use in the
current
period
(VI) Others
IV. Ending 4,636,485,6 12,171,693,3 86,131,497 1,859,690,5 7,083,209,3 25,665,810,6
863,137.93
Balance of 68.00 42.10 .27 55.97 94.76 01.49
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the current
period
Amount of the Previous Period
Unit: CNY
2022
Other Equity
Instruments Other Speci
Item Less: Total
Share Capital Comprehe al Surplus Undistribute Oth
Prefer Perpet Treasury Owners'
Capital Oth Reserves nsive Reser Reserves d Profits ers
red ual Shares Equity
ers Incomes ves
Shares Bond
I. Ending
Balance of 4,654,114,6 12,267,337,6 310,460,48 1,511,497,1 6,974,643,1 25,097,436,2
304,113.31
the previous 13.00 64.44 6.38 43.93 84.91 33.21
year
Add:
changes in
accounting
policies
Correction
of prior
period
errors
Others
II. Opening
Balance of 4,654,114,6 12,267,337,6 310,460,48 1,511,497,1 6,974,643,1 25,097,436,2
304,113.31
the current 13.00 64.44 6.38 43.93 84.91 33.21
year
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III.
Increase/dec
rease in
amount of - - -
11,601,549.4 - 316,034,697 186,463,463.
the current 2,148,958.0 42,623,302 180,862,220
4 784,908.08 .61 23
period 0 .27 .01
(decrease to
be listed
with "-")
(I) Total
- 3,160,346,9 3,159,562,06
comprehensi
784,908.08 76.05 7.97
ve income
(II) Invested
and - -
11,601,549.4 52,075,893.7
decreased 2,148,958.0 42,623,302
4 1
capital of 0 .27
owners
1. Ordinary
- - -
shares
2,148,958.0 11,582,883.6 13,731,841.6
invested by
0 2 2
owners
2. Capital
contributed
by holders
of other
equity
instruments
3. Amounts 23,184,433.0 23,184,433.0
of share- 6 6
based
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payments
recorded in
owner's
equity
-
42,623,302.2
4. Others 42,623,302
7
.27
- -
(III) Profit 316,034,697
3,341,209,1 3,025,174,49
distribution .61
96.06 8.45
1.
Appropriati -
316,034,697
on to 316,034,697
.61
surplus .61
reserves
2.
Distribution
- -
to owners
3,025,174,4 3,025,174,49
(or
98.45 8.45
shareholders
)
3. Others
(IV) Internal
carryover of
owners'
equity
1. Transfer
from capital
reserve to
paid-in
capital (or
207
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share
capital)
2. Transfer
from surplus
reserves to
paid-in
capital (or
share
capital)
3. Recovery
of losses by
surplus
reserves
4. Retained
earnings
carried
forward
from
changes in
defined
benefit
plans
5. Retained
earnings
carried
forward
from other
comprehensi
ve income
6. Others
208
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(V) Special
reserves
1.
Appropriati
on in the
current
period
2. Use in the
current
period
(VI) Others
IV. Ending
Balance of 4,651,965,6 12,278,939,2 267,837,18 - 1,827,531,8 6,793,780,9 25,283,899,6
the current 55.00 13.88 4.11 480,794.77 41.54 64.90 96.44
period
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III. Company Profile
1. Overview
FAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liability
company registered in Changchun City, Jilin Province.
FAW Car was approved by the TGS <1997> No.55 document issued by the State Commission for
Restructuring the Economic System in 1997, and was exclusively established by China FAW Group
Corporation. On June 18, 1997, FAW Car was approved by the China Securities Regulatory
Commission to issue shares publicly and listed on the Shenzhen Stock Exchange for circulation.
On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into China FAW Co., Ltd.
as its capital contribution to FAW, and received the Confirmation of Securities Transfer Registration
issued by China Securities Depository & Clearing Co., Ltd. Shenzhen Branch on the same day.
On November 28, 2019, FAW Car held the 10th meeting of the 8th Board of Directors, and reviewed
and approved the adjustment plan for major asset restructuring. After the adjustment, FAW Car
transferred all its assets and liabilities except the equity and some reserved assets of First Automobile
Finance Co., Ltd. and Sanguard Automobile Insurance Co., Ltd. to FAW Bestune, and then replaced
100% equity of FAW Bestune Car Co., Ltd. with the equivalent part of 100% equity of FAW Jiefang
Automotive Co., Ltd. (Jiefang Limited) held by FAW. At the same time, FAW Car purchased the
difference between the purchased assets and the sold assets from FAW by issuing shares and paying
cash.
On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring of
FAW Car Co., Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No.
352) issued by the China Securities Regulatory Commission, and China Securities Regulatory
Commission reviewed and approved the major asset replacement, share issuance and cash payment
for assets purchase and related transactions of FAW Car.
The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm
(special general partnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e.
100% equity of Jiefang Limited, to be replaced by FAW Car to FAW by issuing shares had been
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transferred to FAW Car. The industrial and commercial change registration procedures of Jiefang
Limited had been completed, all proposed assets, i.e. 100% equity of FAW Bestune, had been
transferred to FAW, and the industrial and commercial change registration procedures of FAW
Bestune had been completed. The registered capital of FAW Car is CNY 4,609,666,212.00 after this
change.
In May 2020, the name of FAW Car was changed to "FAW JIEFANG GROUP CO., LTD." and the
stock abbreviation was changed to "FAW Jiefang".
On January 11, 2021, the Company held the First Extraordinary Shareholders' Meeting of 2021, and
reviewed and approved the Proposal on the Restricted Share Incentive Plan of FAW JIEFANG
GROUP CO., LTD. (Draft) and Its Abstract, the Proposal on the Regulations for the Implementation
Assessment of Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD., the Proposal
on the Regulations for Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and the
Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle
Matters Related to the Company's Restricted Share Incentive Plan. On January 15, 2021, the
Company held the 12th meeting of the 9th Board of Directors, and reviewed and approved the
Proposal on Adjusting the List of the First Batch of Incentive Objects and the Number of Grants in
the Phase I Restricted Share Incentive Plan and the Proposal on Granting Restricted Shares to the
Incentive Objects of the Phase I Restricted Share Incentive Plan for the First Time. Nine directors
and senior executives, including Hu Hanjie, Zhu Qixin, Zhang Guohua, Wang Ruijian, Shang
Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun, and 310 other core employees with
the title of senior director and above were granted to subscribe for 40,987,657 new shares of the
Company at an issue price of CNY 7.54 per share, and the registered capital of the Company was
changed to CNY 4,650,653,869.00. This change was verified by the Capital Verification Report
(ZTYZ (2021) No. 110C000033) issued by Grant Thornton Certified Public Accountants (Special
General Partnership). On February 1, 2021, the Company disclosed the Announcement on the
Completion of the First Grant Registration of Phase I Restricted Share Incentive Plan.
On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and the
19th meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on Granting
Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan to Incentive
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Objects and the Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan respectively. Thirty-three core technicians and management
backbones, including Wang Manhong, Zhang Yu and Qu Yi, subscribed for 3,721,601 new shares at
an issue price of CNY 6.38/share, and 260,857 shares were repurchased at a price of CNY 7.04/share
from 2 employees who were no longer eligible for incentive objects. The registered capital of the
Company was changed to CNY 4,654,114,613.00. This change was verified by the Capital
Verification Report (ZTYZ (2021) No. 110C000927) issued by Grant Thornton Accounting Firm
(special general partnership). On January 6, 2022, the Company disclosed the Announcement on the
Completion of Registration of the Grant of Reserved Part of Restricted Shares in the Phase I
Restricted Share Incentive Plan. On January 17, 2022, the Company disclosed the Announcement on
the Completion of Repurchase and Cancellation of Some Restricted Shares.
On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and the 23rd
meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on Repurchase
and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan. It was
agreed to repurchase 789,711 shares at a price of CNY 6.39/share from 6 employees who are no
longer qualified as incentive objects, and the registered capital of the Company was changed to CNY
4,653,324,902.00. This change was verified according to the Capital Verification Report
(XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special general partnership).
On November 14, 2022, the Company disclosed the Announcement on Completion of Repurchase
and Cancellation of Some Restricted Shares.
On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directors and the
26th meeting of the 9th Board of Supervisors to deliberate and adopt the Proposal on Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to
repurchase 1,359,247 shares from 11 employees who are no longer qualified as incentive objects at a
price of CNY 6.39 per share. The registered capital of the Company was changed to CNY
4,651,965,655.00. This change was verified according to the Capital Verification Report
(XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special general partnership).
On January 17, 2023, the Company disclosed the Announcement on Completion of Repurchase and
Cancellation of Some Restricted Shares.
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On December 15, 2022, the Company held the 30th Meeting of the 9th Board of Directors and the
26th Meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on the
Achievement of Unlocking Conditions in the First Release Period of the Restricted Shares Firstly
Granted in the Phase I Restricted Incentive Plan. The unlocking conditions in the first release period
of the restricted shares firstly granted in the phase I restricted incentive plan had been fulfilled. The
unlocking matters of the first restriction releasing period for restricted shares firstly granted were
handled in accordance with the restricted share incentive plan. There were a total of 311 incentive
objects eligible for unlocking, and the number of restricted stocks unlocked this time was 13,042,347,
and these shares were listed on May 16, 2023. On February 3, 2024, the Company disclosed the
Indicative Announcement on the Listing and Circulation of Unlocked Shares in the First Release
Period of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of
Directors and the 26th Meeting of the 9th Board of Supervisors on December 15, 2022. The
participant at the meeting agreed to repurchase and cancel all or some restricted shares granted to 6
incentive objects but not yet released, totaling 723,435 shares, and the registered capital of the
Company was changed to CNY 4,651,242,220. This change was verified according to the Capital
Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing Accounting Firm (special
general partnership). On April 28, 2023, the Company disclosed the Announcement on Completion
of Repurchase and Cancellation of Some Restricted Shares.
On March 31, 2023, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the
Second Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of
Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and
Repurchase and Cancellation of Some Restricted Shares was reviewed and approved at the 32nd
Meeting of the 9th Board of Directors and the 28th Meeting of the 9th Board of Supervisors. The
participants at the meeting agreed to repurchase and cancel all or some restricted shares granted to
327 incentive objects but not yet released, totaling 13,909,890 shares, and the registered capital of
the Company was changed to CNY 4,637,332,330. This change was verified according to the Capital
Verification Report (XYZH/2023CCAA2B017) issued by ShineWing Accounting Firm (special
213
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general partnership). On June 30, 2023, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.
On April 27, 2023, the Company held the 2nd Meeting of the 10th Board of Directors and the 2nd
Meeting of the 10th Board of Supervisors, respectively, and reviewed and approved the Proposal on
Releasing Restriction on Sales of Part of Restricted Shares. The Board of Directors believed that
conditions for releasing restricted sales of restricted shares in the first restriction releasing period for
incentive objects Hu Hanjie, Wu Bilei, Zhang Guohua and Wang Jianxun had been fulfilled, and
agreed to release restricted sales of restricted shares in the first restriction releasing period for them,
totaling 64,954 shares. and these shares were listed on May 16, 2023. On May 15, 2023, the
Company disclosed the Indicative Announcement on Sales Restriction Releasing and Listing and
Circulation of Part of Restricted Shares.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of
Directors and the 4th Meeting of the 10th Board of Supervisors on August 29, 2023. The participants
at the meeting agreed to repurchase and cancel all or some restricted shares granted to 8 incentive
objects but not yet released, totaling 333,855 shares, and the registered capital of the Company was
changed to CNY 4,636,998,475.00. This change was verified according to the Capital Verification
Report (XYZH/2023CCAA2B0188) issued by ShineWing Accounting Firm (special general
partnership). On November 29, 2023, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of
Directors and the 6th Meeting of the 10th Board of Supervisors on November 20, 2023. The
participants at the meeting agreed to repurchase and cancel all or some restricted shares granted to
some incentive objects but not yet released, totaling 512,807 shares, and the registered capital of the
Company was changed to CNY 4,636,485,668. This change was verified according to the Capital
Verification Report (XYZH/2024CCAA2B0020) issued by ShineWing Accounting Firm (special
general partnership). On March 28, 2024, the Company disclosed the Announcement on Completion
of Repurchase and Cancellation of Some Restricted Shares.
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The Company establishes a corporate governance structure consisting of the Shareholders' Meeting,
the Board of Directors and the Board of Supervisors, and has one wholly-owned subsidiary, Jiefang
Limited. Jiefang Limited has six wholly-owned subsidiaries, namely, FAW Jiefang (Qingdao)
Automotive Co., Ltd., Wuxi Dahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd.,
FAW Jiefang Austria R&D Co., Ltd., FAW Jiefang New Energy Automotive Sales Co., Ltd., and
FAW Jiefang Younida (Tianjin) Technology Co., Ltd. It also has 11 associated companies, namely,
First Automobile Finance Co., Ltd., Sanguard Automobile Insurance Co., Ltd., FAW Changchun
Baoyou Jiefang Steel Processing and Distribution Co., Ltd., FAW Changchun Ansteel Steel
Processing and Distribution Co., Ltd., Changchun Wabco Automotive Control System Co., Ltd.,
Suzhou Zhito Technology Co., Ltd., FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd.,
Smartlink Intelligent Technology (Nanjing) Co., Ltd., Foshan Diyiyuansu New Energy Technology
Co., Ltd., Changchun Automotive Test Center Co., Ltd. and Diyi AESC New Energy Power
Technology (Wuxi) Co., Ltd. It has 1 joint company, namely, FAW Jiefang-CATL New Energy
Technology Co., Ltd.
Business scope of the Company: R&D, production and sales of light, medium and heavy trucks,
complete vehicles, buses, bus chassis, medium truck deformation vehicles, automobile assemblies
and parts, machining, diesel engines and accessories (non-vehicle), mechanical equipment and
accessories, instruments, technical services, technical consultation, installation and maintenance of
mechanical equipment, lease of mechanical equipment and facilities, lease of houses and workshops,
labor services (excluding foreign labor cooperation and domestic labor dispatch), sales of steel,
automobile trunks, hardware & electrical equipment and electronic products, testing of internal
combustion engine, engineering technology research and testing, advertising design, production and
release, import and export of goods and technologies (excluding publication import business and
commodities and technologies that are restricted or prohibited for import and export by the state);
value-added telecommunications services; car rentals and second-handed car sales; (the following
items are operated by the branch company) Chinese food production and sales, warehousing and
logistics (excluding flammable, explosive and precursor dangerous chemicals), automobile repair,
tank manufacturing of chemical liquid tanker, automobile trunk manufacturing; operation of medical
devices, Internet freight (excluding road transport of dangerous goods); road freight transport
(excluding dangerous goods) (items subject to approval according to law can be operated only after
being approved by relevant authorities).
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Registered address of the Company: No. 2259, Dongfeng Street, Changchun Automobile
Development Zone, Jilin Province.
The legal representative of the Company is Wu Bilei.
The financial statements and notes to the financial statements were approved for issue by the Board
of Directors of the Company on March 28, 2024.
2. Scope of consolidated financial statements
In 2023, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in the scope of
consolidation. For details, please refer to IX "Changes in Consolidation Scope" and X "Equity in
Other Entities" of Section X - Financial Report.
IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for Business
Enterprises issued by the Ministry of Finance and its application guidelines, interpretations and other
relevant provisions (hereinafter collectively referred to as "ASBE"). In addition, the Company also
discloses relevant financial information according to the Rules No. 15 for Preparing Information
Disclosure by Companies Offering Securities to the Public—General Provisions on Financial
Reporting (2023 Revision) issued by China Securities Regulatory Commission.
2. Continuing operations
The financial statements are presented on continuing operations.
The financial accounting of the Company is based on the accrual basis. The financial statements are
prepared on a historical cost basis except for certain financial instruments. If the assets are impaired,
the corresponding provision for impairment shall be made as specified.
V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates: The Company determines the
depreciation of fixed assets, amortization of intangible assets, capitalization conditions of R&D
216
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expenses and income recognition policies according to its own production and operation
characteristics. For specific accounting policies, please see V "Significant Accounting Policies and
Accounting Estimates" 21, 23 and 30 in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the Company meet the requirements of ASBE and truly and
fully reflect the consolidated and company’s financial position as of December 31, 2023 of the
Company and its information such as consolidated and company’s operating results and consolidated
and company’s cash flow for the year then ended.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31
every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The overseas
subsidiaries of the Company determine EUR as the recording currency according to the currency in
the main economic environment in which they operate. The Company uses CNY to prepare the
financial statements.
5. Methods for determining materiality criteria and selection basis
Applicable □Not applicable
Item Materiality Criteria
Receivables with significant provision for bad 10% of the absolute value of net profit or 10%
debts by individual item of similar business
Write-off of significant receivables in the current 10% of the absolute value of net profit or 10%
period of similar business
Significant changes in the book value of 10% of the absolute value of net profit or 10%
contractual assets of similar business
10% of the absolute value of net profit or 10%
Major projects under construction
of similar business
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10% of the absolute value of net profit or 10%
Significant capitalized R&D projects
of similar business
6. Accounting treatment method for business merger under common control and different
control
(1) Business merger under common control
As to the business merger under common control, the assets and liabilities of the combined party
obtained by the combining party are calculated in the book value in the consolidated financial
statements of the ultimate controller by the combined party on the combination date. The capital
reserve (stock premium) is adjusted based on the difference between the book value of the
combination consideration and the book value of the net assets obtained in the combination. The
retained earnings are adjusted if the capital reserve (stock premium) is insufficient for offset.
Business merger under common control realized step-by-step through multiple transactions
The assets and liabilities of the combined party obtained by the combining party in the combination
are measured based on the book value of the ultimate controlling party in the consolidated financial
statements on the combination date. The capital reserve (share capital premium) is adjusted based on
the difference between the sum of the book value of the pre-combination investment and the book
value of the newly paid consideration on the combination date and the book value of the net assets
obtained in the combination. The retained earnings are adjusted if the capital reserve is insufficient
for offset. The long-term equity investment held before the acquisition of the combined party’s
control by the combining party and the profit or loss, other comprehensive incomes and changes in
other owners’ equities that have been recognized during the period from the date of acquisition of the
original equity, or the date of common control of the combining party and the combined entity
(which is later) to the combination date shall offset against the retained opening earnings or current
profit or loss respectively during the period of comparative statement.
(2) Business merger under different control
In case of business merger under different control, the combination cost is the fair value of assets
paid, liabilities incurred or assumed and equity securities issued on the acquisition date for acquiring
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the control over the acquiree. The assets, liabilities and contingent liabilities of the acquiree obtained
are recognized as per the fair value on the acquisition date.
Where the combination cost is greater than the fair value of identifiable net assets obtained from the
acquiree, the difference shall be recognized as goodwill and subsequently measured by deducting the
accumulated depreciation provision by cost; Where the combination cost is less than the fair value of
identifiable net assets obtained from the acquiree, the difference shall be included in current profits
and losses after review.
Business merger not under common control realized step-by-step through multiple transactions
The combination cost is the sum of the consideration paid on the acquisition date and the fair value
of the acquiree's equity already held before the acquisition date on the acquisition date. The
acquiree's equity held before the acquisition date shall be remeasured at the fair value of the equity
on the acquisition date. The difference between the fair value and its book value shall be included in
the investment income for the current period. If the acquiree's equity held before the acquisition date
involves other comprehensive income, changes in other owner's equities shall be transformed into
the current profit on the acquisition date, except other comprehensive income generated due to
remeasuring the change in net liabilities or net assets of the defined benefit plan (DBP) by the
investee, and other comprehensive income related to a non-trading equity instrument investment
originally measured at fair value with its changes included in other comprehensive income.
(3) Disposal of related handling charges for business merger
The overhead for the business merger of the combining party, including the expenses for audit, legal
services, assessment, and other administrative expenses, shall be recorded in current profits and
losses when they occur. The transaction expenses of the equity securities or liability securities issued
as the consideration for the combination shall be recorded as the initial recognition amount of the
equity securities or liability securities.
7. Criteria for control and preparation method of consolidated financial statements
[Document No.15, Article XVI (VI), Criteria for control and preparation method of consolidated
financial statements]
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(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers to
the power of the Company over the investee, with which the Company enjoys variable returns
through participating in related activities of the investee and is able to influence its amount of return
with the power over the investee. The Company will carry out re-assessment when changes in
relevant facts and circumstances result in changes in elements involved in the definition of control.
When determining whether to include structured entities in the consolidation scope, the Company
assesses whether to control the structured entity by comprehensively taking all facts and
circumstances into consideration, including assessing the purpose and design of the structured entity,
identifying the types of variable returns, and assessing whether it assumes part or all of the
variability of the returns through its participation in related activities of the entity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial
statements of the Company and its subsidiaries and with other relevant data. The major accounting
policies and accounting periods adopted by the subsidiaries are defined as the same as those of the
Company during the preparation of the consolidated financial statements. The significant
transactions and balances between companies are offset.
Where a subsidiary or business has been acquired through a business merger involving enterprises
under common control in the reporting period, the subsidiary or business is deemed to be included in
the consolidated financial statements from the date they are controlled by the ultimate controlling
party. Their operating results and cash flows are respectively included in the consolidated income
statement and consolidated cash flow statement from the date they are controlled by the ultimate
controlling party.
For the subsidiaries and businesses increased in the reporting period due to business merger under
different control, their earnings, expenses and profits from the acquisition date to the end of the
reporting period are included in the consolidated profit statement, and their cash flows are included
in the consolidated cash flow statement.
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The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listed
separately under the item “Shareholders’ Equity” in consolidated balance sheet as minority
shareholders’ equity. The portion of net profit or loss of subsidiaries in current period belonging to
minority shareholders’ equity shall be listed separately under the item “Minority Shareholders’ Profit
or Loss” in the consolidated income statement. If the loss of a subsidiary borne by minority
shareholders exceeds the amount of their shares of owners' equity in the subsidiary at the beginning,
the balance shall offset the minority equity.
(3) Purchase of minority shareholders' equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the
difference between the newly acquired long-term equity investment cost from the purchase of
minority equity and the share of net assets in the subsidiary calculated constantly from the purchase
date or combination date as per the newly increased shareholding proportion, and the difference
between the disposal price obtained from the partial disposal of equity investment in the subsidiary
without losing the right of control and the share of net assets in the subsidiary calculated
continuously from the purchase date or combination date corresponding to the disposed long-term
equity investment. The retained earnings are adjusted if the capital reserve is insufficient for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity
investment or other reasons, the remaining equity shall be recalculated at fair value on the day when
the control power is lost. The balance from the sum of consideration obtained from the disposal of
equity and the fair value of the remaining equity minus the sum of the share of net assets book value
and the goodwill of original subsidiaries calculated continuously starting from the purchase date as
per the original shareholding ratio shall be included in current investment income at the loss of
control.
Other comprehensive income in connection with equity investment of the original subsidiaries shall
be subject to accounting method on the same basis as the original subsidiary's direct disposal of
relevant assets or liabilities upon the loss of control. Other changes in owners' equity related to the
original subsidiary that are accounted by the equity method shall be transferred to the current profits
and losses upon the loss of control.
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8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint
Operations
Joint arrangement refers to an arrangement jointly controlled by two or more participants. Joint
arrangements of the Company include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears
related liabilities.
The Company recognizes the following items related to the interest share in the joint operation and
carries out accounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;
B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;
C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;
D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its
shares;
E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per
its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets
of the arrangement.
The Company conducts accounting for the investment of joint ventures according to provisions of
the equity method accounting for long-term equity investments.
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9. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash
equivalents refer to the short-term and highly liquid investments held by the Company that are
readily convertible into known amounts of cash and with low risk in value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at
the exchange rate determined by systematic and reasonable methods.
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange
rate on the balance sheet date. The exchange difference arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition
or on the previous balance sheet date is included in current profits and losses. Foreign currency non-
monetary items measured at historical cost are still converted at the spot exchange rate on the
transaction date. Foreign currency non-monetary items measured at fair value are converted at the
spot exchange rate on the date when the fair value is determined. The difference between the
converted recording currency amount and the original recording currency amount is included in
current profits and losses or other comprehensive income according to the nature of the non-
monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries are
translated, the assets and liabilities of the balance sheet are translated to CNY using the spot
exchange rate at the balance sheet date. Items of the shareholders’ equity, except for “undistributed
profits”, are translated at the spot exchange rate at the dates on which such items arose.
The income and expense items in the profit statement are translated at the exchange rate determined
by systematic and reasonable methods.
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All items in the cash flow statement are translated at the exchange rate determined by systematic and
reasonable methods. As an adjustment item for influence amount of cash, exchange rate movement is
independently presented as "Influence of exchange rate movement to cash and cash equivalent" in
cash flow statement.
Differences arising from the translation of financial statements are separately presented as “Other
comprehensive income” in the shareholders’ equity of the balance sheet.
During the disposal of overseas operation and upon the loss of the right of control, the conversion
difference of foreign currency statements listed under the shareholders' equity items in the balance
sheet and related to the overseas operation is transferred to the current profits and losses of disposal
in full or as per the disposal proportion of the overseas operation.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party, and form financial
liabilities or equity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the
contract of the financial instrument.
If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions for
derecognition.
If the current obligations of financial liability have been discharged in total or in part, derecognize all
or part of it. The Company (the Debtor) signs an agreement with the Creditor to replace the existing
financial liabilities with new financial liabilities; the existing financial liabilities are derecognized
and the new financial liabilities are recognized when the contractual terms of the new financial
liabilities and those of the existing financial liabilities are different in essence.
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Financial assets transacted in a conventional way are subject to accounting recognition and
derecognition on the transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business
mode of financial assets management and the contractual cash flow characteristics of financial assets
at the time of initial recognition: financial assets measured at amortized cost, financial assets
measured at fair value with their changes included in other comprehensive income, and financial
assets measured at fair value with their changes included in the current profits or losses.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value
through profit or loss, relevant transaction costs are directly included in current profits and losses; for
other types of financial assets, relevant transaction costs are included in the initially recognized
amount. For receivables arising from the sale of products or the provision of services that do not
include or take into account significant financing components, the Company takes the consideration
amount entitled to receive in expectation as the initially recognized amount.
Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions but are not designated
to be measured at fair value and with the changes included in current profits or losses as the financial
assets measured at amortized cost:
The Company manages the financial assets in order to collect contractual cash flows;
The contract terms of the financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and the interest based on the outstanding principal
amount.
After initial recognition, such financial assets are measured at amortized cost using the effective
interest method. Any gains or losses on financial assets at amortized cost that are not part of the
hedging relationship are charged to the current profit or loss at derecognition, amortization using the
effective interest method, or recognition of impairment.
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Financial assets measured at fair value with their changes included in other comprehensive
income
The Company classifies financial assets that meet the following conditions and are not designated to
be financial assets at fair value with their changes included in current profit or loss as financial assets
at fair value with their changes included in other comprehensive incomes:
The Company manages the financial assets in order not only to collect contractual cash flows
but also to sell the financial assets;
The contract terms of the financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and the interest based on the outstanding principal
amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests,
impairment losses or gains and exchange gains and losses calculated with the effective interest
method are included in the current profits and losses, and other gains or losses are included in other
comprehensive income. When the financial assets are derecognized, the accumulated profits or losses
previously included in other comprehensive income are transferred out and included in the current
profits and losses.
Financial assets at fair value through profit or loss
Except for the above-mentioned financial assets measured at amortized cost and fair value through
other comprehensive income, the Company classifies all remaining financial assets as financial
assets measured at fair value through profit or loss. At the time of initial recognition, in order to
eliminate or significantly reduce accounting mismatch, the Company irrevocably designates some
financial assets that should be measured at amortized cost or fair value through other comprehensive
income as financial assets measured at fair value through current profits and losses.
After initial recognition, such financial assets are subsequently measured at fair value, and the gains
or losses (including interest and dividend income) incurred are included in current profits and losses
unless they are part of a hedging relationship.
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The business model of managing financial assets refers to how the Company manages financial
assets to generate cash flows. The business model determines whether the cash flow of financial
assets managed by the Company comes from collecting contractual cash flows, selling financial
assets, or both. The Company determines the business model for managing financial assets on the
basis of objective facts and specific business objectives for managing financial assets decided by key
management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine
whether the contractual cash flow generated by relevant financial assets on a specific date is only the
payment of principal and interest based on the outstanding principal amount. Principal refers to the
fair value of financial assets at initial recognition; interest includes consideration for the time value
of money, credit risk associated with the amount of principal outstanding over a specific period, and
other underlying borrowing risks, costs and profits. In addition, the Company evaluates the contract
terms that may cause changes in the time distribution or amount of contractual cash flows of
financial assets to determine whether they meet the requirements for the above-mentioned
contractual cash flow characteristics.
Only when the Company changes its business model for managing financial assets, can all affected
related financial assets be reclassified on the first day of the first reporting period after the change in
business model; otherwise, financial assets shall not be reclassified after initial recognition.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value
through profit or loss, relevant transaction costs are directly included in current profits and losses; for
other types of financial assets, relevant transaction costs are included in the initially recognized
amount. For accounts receivable arising from sales of products or provision of labor services that do
not include or consider significant financing components, the consideration amount that the
Company is expected to be entitled to receive will be taken as the initially recognized amount.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profit
or loss and financial liabilities measured at amortized cost upon initial recognition. For financial
liabilities not classified as those measured at fair value through profit or loss, relevant transaction
costs are included in their initially recognized amounts.
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Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
those designated upon initial recognition to be measured at fair value through profit or loss. Such
financial liabilities are subsequently measured at fair value, and the gains or losses arising from
changes in fair value as well as dividends and interest expenses related to such financial liabilities are
included in current profits and losses.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method, and gains or losses arising from derecognition or amortization are included in current profits
and losses.
Distinction between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties under
potentially adverse conditions.
③ A non-derivative instrument contract that must or can be settled with the enterprise's own equity
instruments in the future, and according to which the enterprise will deliver a variable number of its
own equity instruments.
④ A derivative contract that must or can be settled with the enterprise's own equity instruments in
the future, except for derivative contracts where a fixed amount of its own equity instruments is
exchanged for a fixed amount of cash or other financial assets.
An equity instrument refers to a contract that can prove the residual equity in the assets of an
enterprise after all liabilities are deducted.
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash
or other financial assets, the contractual obligation meets the definition of financial liabilities.
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If a financial instrument must or can be settled with the Company's own equity instruments, it is
necessary to consider whether the Company's own equity instruments used for settlement of such
instruments are used as substitutes for cash or other financial assets or to enable the instrument
holder to enjoy residual equity in the assets of the issuer after deduction of all liabilities. If meets the
former condition, the financial instrument should be recognized as financial liabilities; If meets the
latter condition, the financial instrument is recognized as an equity instrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 35
"Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial
Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on
the basis of expected credit losses:
Financial assets measured at amortized cost;
Receivables and debt investments at fair value through other comprehensive income;
Contract assets as defined in ASBE NO. 14 - Revenue;
Lease receivables;
Financial guarantee contracts (except for those measured at fair value through profit and loss,
where the transfer of financial assets does not meet derecognition conditions or is
continuously involved in the transferred financial assets).
Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of financial instruments that
are weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows receivable according to the contract and discounted by the Company at the original effective
interest rate and all cash flows expected to be collected, that is, the present value of all cash shortages.
The Company considers reasonable and reliable information about past events, current situation and
forecast of the future economic situation, weighs the risk of default, calculates the probability
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weighted amount of the present value of the difference between the cash flow receivable from the
contract and the cash flow expected to be received, and recognizes the expected credit loss.
The Company measures the expected credit losses of financial instruments at different stages
respectively. For financial instruments for which the credit risk has not significantly increased since
initial recognition, they are classified in Stage 1. The company measures the loss provision based on
expected credit losses over the next 12 months. For financial instruments in which the credit risk has
significantly increased since initial recognition but no credit impairment has occurred, they are
classified in Stage 2. The company measures the loss provision based on the expected credit losses
over the entire remaining lifetime of the instrument. For financial instruments in which a credit
impairment has occurred since initial recognition, they are classified in Stage 3. The company
measures the loss provision based on the expected credit losses over the entire remaining lifetime of
the instrument.
The Company assumes that the credit risk of the financial instruments with a low credit risk on the
balance sheet date has not increased significantly since the initial recognition, and measures the
provision for loss based on the expected credit loss in the next 12 months.
The expected credit loss during the whole duration refers to the expected credit loss caused by all
default events that may occur during the whole expected duration of financial instruments. The
expected credit loss in the next 12 months refers to that caused by the possible default events of the
financial instruments within 12 months after the balance sheet date (or the expected duration if the
expected duration of financial instruments is less than 12 months), which is a part of the expected
credit loss in the whole duration.
During the measurement of expected credit losses, the maximum term to be considered by the
Company is the maximum contract term of the enterprise facing credit risk (including the option to
renew the contract).
For financial instruments in the first and second stages and with low credit risk, the Company
calculates interest income according to the book balance before deducting impairment provision and
the actual interest rate. For financial instruments in the third stage, interest income is calculated
according to their book balance minus the amortized cost after impairment provision and the
effective interest rate.
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Notes receivable, accounts receivable and contract assets
For notes receivable, accounts receivable and contract assets, the Company always measures their
loss provision according to the amount equivalent to the expected credit loss in the whole duration no
matter whether there is any significant financing component.
If the expected credit loss of a single financial or contractual asset cannot be evaluated at a
reasonable cost, the Company divides the notes receivable, accounts receivable and contractual
assets into portfolios according to the credit risk characteristics based on the following, and
calculates the expected credit loss on the basis of the portfolios:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bills
Notes receivable portfolio 2: commercial acceptance bills
B. Accounts receivable
Aging portfolio
C. Contract assets
Aging portfolio
The Company calculates the expected credit loss of the notes receivable and contract assets divided
into portfolios by referring to the historical credit loss experience, combining the current situation
and the forecast of the future economic situation, and based on the default risk exposure and the
expected credit loss rate for the whole duration.
For accounts receivable divided into portfolios, the Company prepares a comparison table of account
receivable aging/overdue days and expected credit loss rate for the whole duration with a reference
to historical credit loss experience and in combination with the current situation and forecast of the
future economic situation, so as to calculate the expected credit loss. The aging of accounts
receivable is calculated from the date of recognition, and the number of days overdue from the credit
expiration date.
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Other receivables
The Company divides other receivables into several portfolios according to the credit risk
characteristics based on the following, and calculates the expected credit loss according to the
portfolios:
Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund
Portfolio 2 of other receivables: aging portfolio
For other receivables divided into portfolios, the Company calculates the expected credit loss
through default risk exposure and expected credit loss rate in the next 12 months or the whole
duration. The aging of other receivables divided into portfolios by aging is calculated from the date
of recognition.
Long-term receivables
The Company's long-term receivables include the receivables from sales of goods by installments.
The Company divides the long-term receivables into several portfolios according to the credit risk
characteristics based on the following, and calculates the expected credit loss on the basis of the
portfolios:
Finance lease receivables
Long-term receivables portfolio 1: receivables from sales of goods by installments
Long-term receivables portfolio 2: other receivables
The Company calculates the expected credit loss of the receivables from sales of goods by
installments based on the default risk exposure and the expected credit loss rate for the whole
duration with a reference to the historical credit loss experience, the current situation and the forecast
of the future economic situation.
The Company calculates the expected credit loss of other receivables and long-term receivables
divided into portfolios other than receivables from sales of goods by installments according to the
default risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
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Debt investment and other debt investments
For debt investments and other debt investments, the Company calculates expected credit losses
according to the nature of the investment, various types of counterparties and risk exposures, default
risk exposures and expected credit loss rates in the next 12 months or throughout the duration.
Assessment of significant increase in credit risk
The Company compares the risk of default of financial instruments on the balance sheet date with the
risk of default on the initial recognition date so as to determine the relative change in the default risk
of financial instruments in the expected duration and evaluate whether the credit risk of financial
instruments has increased significantly since the initial recognition.
In determining whether the credit risk has increased significantly since initial recognition, the
Company considers reasonable and well-founded information (including forward-looking
information) that can be obtained without unnecessary additional costs or efforts. The information to
be considered by the Company is as follows:
Failure of the debtor to pay the principal and interest on the due date of the contract;
Serious deterioration in the external or internal credit rating (if any) of the financial
instrument that has occurred or is expected;
Serious deterioration of the debtor's operating results that has occurred or is expected;
Changes in the technical, market, economic or legal environment that has occurred or is
expected and their potential material adverse effect on the repayment ability of the debtor to
the Company.
According to the nature of financial instruments, the Company evaluates whether the credit risk has
increased significantly on the basis of individual financial instruments or portfolios of financial
instruments. When evaluating on the basis of portfolios of financial instruments, the Company may
classify the financial instruments based on common credit risk characteristics, such as overdue
information and credit risk rating.
If it is overdue for more than 30 days, the Company determines that the credit risk of financial
instruments has increased significantly.
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Credit-impaired financial assets
The Company evaluates on the balance sheet date whether credit impairment has occurred on the
financial assets measured at amortized cost and on the creditor's debt investment measured at fair
value through other comprehensive income. A financial asset becomes credit-impaired when one or
more events that have an adverse impact on its expected future cash flows occur. Evidence of credit
impairment of financial assets includes the following observable information:
The issuer or the debtor is involved in serious financial difficulties;
The debtor breaches the contract, such as default on or overdue repayment of interest or
principal;
The Company, for economic or contractual reasons relating to the debtor’s financial difficulty,
grants the debtor concessions that would not have been made in any other circumstances.
There is a great possibility of bankruptcy or other financial restructuring of the debtor;
The financial difficulties of the issuer or debtor result in the disappearance of the active
market of such financial assets.
Presentation of provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial recognition,
the Company remeasures the expected credit loss on each balance sheet date; the increased or
reversed amount of the loss provision arising therefrom shall be included in the current profits and
losses as impairment losses or gains. The loss provision of the financial assets measured at amortized
cost is used to offset their book value presented in the balance sheet. For the debt investment
measured at fair value with its changes included in other comprehensive income, the Company
recognizes its loss provision in other comprehensive income, which will not offset the book value of
the financial assets.
Write-off
The Company writes down the book balance of the financial assets when it no longer reasonably
expects that the contractual cash flow of the financial asset can be recovered in whole or in part.
Such write-down constitutes the derecognition of related financial assets. This usually occurs when
the Company determines that the debtor has no assets or sources of income that can generate
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sufficient cash flows to repay the amount to be written down. However, the written-down financial
assets may still be affected by the execution activities according to the Company's procedures for
recovering due amounts.
Any financial assets that have been previously written off and subsequently recovered are recognized
as a reversal of impairment loss and recorded in the current period's income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party
(transferee) other than the issuer of such financial assets.
The financial asset is derecognized if the Company has transferred substantially all the risks and
rewards of ownership of a financial asset to the transferee. The financial asset is not derecognized if
the Company has retained substantially all the risks and rewards of ownership of a financial asset.
If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial
asset, it shall deal with them as follows: if the control over the financial asset is waived, the financial
asset shall be derecognized and the assets and liabilities incurred shall be recognized; if the control
over the financial asset is not waived, the relevant financial asset shall be recognized to the extent
that it continues to be involved in the transferred financial asset, and the relevant liabilities shall be
recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after
offsetting each other when the Company has a legal right to offset the recognized financial assets and
financial liabilities and the legal right can be exercised currently, and when the Company intends
either to settle on a net basis, or to realize the financial assets and pay off the financial liabilities
simultaneously. In other cases, financial assets and financial liabilities are presented separately in the
balance sheet and are not offset against each other.
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12 Notes receivable
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
13 Accounts receivable
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
14 Receivables financing
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
15 Other receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
16 Contract assets
The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer's payment. The Company
presents the contract assets and liabilities under the same contract on a net basis after offsetting each
other.
A contractual asset refers to a right to receive consideration for goods or services that have been
transferred to a customer, and the right depends on factors other than the passage of time.
For the determination method and accounting method of the Company for the expected credit loss of
the contract assets, refer to 11 "Financial instruments" in V "Significant Accounting Policies and
Accounting Estimates" of Section X - Financial Report.
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17. Inventories
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished products
and goods in process, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company's inventories are accounted for at the planned cost when acquired. The difference
between the planned cost and the actual cost is accounted for through the cost variance account, and
the cost variance that should be borne by the inventories sent out is carried forward on schedule to
adjust the planned cost to the actual cost.
(3) Basis and method for provision of inventory depreciation reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value.
When the net realizable value of the inventories is lower than their cost, a provision for inventory
depreciation reserves is made.
Net realizable value refers to the difference of the estimated sale price of inventory less the cost to
estimated be incurred until completion, estimated sales expenses and related taxes. The net realizable
value of inventories is determined based on the unambiguous evidence obtained as well as the
consideration of the purpose of holding inventories and the impact of events after the balance sheet
date.
The Company makes provision for inventory depreciation reserves on an individual inventory item
basis. Provision for inventory depreciation reserves is made by inventory category for inventories
with large quantities and low unit prices.
(4) Inventory system
The Company adopts the perpetual inventory system.
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(5) Amortization method of low-value consumables and packaging materials
Low-value consumables and packaging materials of the Company are amortized by one-off write-off
method when acquired.
18. Long-term receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
19. Long-term equity investments
Long-term equity investments include equity investments to subsidiaries, joint ventures and
associated enterprises. The investee which may be subject to significant influence of the Company is
an associated enterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity
investment acquired from the business combination under common control, the investment cost
refers to the share of the book value of the owner's equity of the combined party in the consolidated
financial statements of the ultimate controlling party on the combination date; for the long-term
equity investment acquired from the business combination under different control, the investment
cost refers to the combination cost.
For long-term equity investments acquired by other methods: For those acquired with cash payment,
the actual purchase price shall be recognized as the initial investment cost; for those acquired
through the issuance of equity securities, the fair value of issued equity securities shall be recognized
as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the
conditions for held-for-sale; investments to associated enterprises and joint ventures are accounted
for with the equity method.
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For long-term equity investments calculated by cost method, except for the declared but not yet
released cash dividends or profits included in the actual price or consideration paid when the
investment is acquired, the distributed cash dividends or profits declared by the investee shall be
recognized as investment income and included in current profits and losses.
For the long-term equity investments accounted for with the equity method, the investment cost is
not adjusted if the initial investment cost exceeds the share of the fair value of the investee's
identifiable net assets at the time of the investment; the book value of the long-term equity
investment is adjusted and the difference is included in the current profits and losses if the initial
investment cost is less than the share of fair value of the investee's identifiable net assets at the time
of the investment.
For accounting with the equity method, the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profits and losses and other
comprehensive income realized by the investee that shall be enjoyed or shared. Meanwhile, the book
value of the long-term equity investments shall be adjusted. The part of due share shall be calculated
according to the distributed profit or cash dividend declared by the investee, and the book value of
the long-term equity investment shall be reduced accordingly. For other changes in owners' equity of
the investee except net profit and loss, other comprehensive income and profit distribution, the book
value of long-term equity investment shall be adjusted and included in capital reserve (other capital
reserve). The Company recognizes its share of the investee's net profits or losses based on the fair
values of the investee's individual separately identifiable assets at the time of acquisition, after
making appropriate adjustments thereto in conformity with the accounting policies and accounting
periods of the Company.
The sum of the fair value of the original equity and the new investment cost is taken as the initial
investment cost calculated with the equity method on the date of conversion if it is possible to exert
significant influence on or implement joint control but not constitute control over the investee due to
additional investment or other reasons. The cumulative changes in fair value originally included in
other comprehensive income related to the original equity are transferred to retained earnings when
the equity method is adopted if the original equity is classified as a non-trading equity instrument
measured at fair value through other comprehensive income.
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In case the Company loses joint control of or the significant influence on the investee due to the
disposal of part of the equity investment, the residual equity after the disposal is accounted for in
accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments on the date of losing the joint control or significant influence,
and the difference between the fair value and the book value is included in the current profits and
losses. Other comprehensive income recognized from the original equity investment accounted with
the equity method shall be accounted for on the same basis as the direct disposal of relevant assets or
liabilities of the investee when the equity method is terminated. Other changes in owner’s equity
related to the original equity investment shall be transferred into current profit and loss.
In case the Company loses the right of control over the investee due to the disposal of partial equity
investment or other reasons, the equity method is applied, and it is deemed that the residual equity is
adjusted with the equity method from the time of acquisition if the residual equity after disposal can
exert joint control over or significant influence on the investee; the accounting is carried out
according to the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, and the difference between the fair value and the book value
on the date of losing control is included in the current profits and losses if the residual equity after
disposal cannot exert joint control over or significant influence on the investee.
If the shareholding ratio of the Company decreases due to capital increase by other investors,
resulting in loss of control but joint control over or significant influence on the investee, the
Company's share of net assets increased due to capital increase and share expansion of the investee
shall be recognized according to the new shareholding ratio, and the difference from the original
book value of long-term equity investment corresponding to the decrease in shareholding ratio that
shall be carried forward shall be included in current profits and losses. Then, adjustments are made
based on the new shareholding ratio with the equity method as if it had been used since the
acquisition of the investment.
Unrealized gains and losses from internal transactions between the Company and its associated
enterprises and joint ventures that are attributable to the Company are calculated based on the
shareholding ratio, and investment profits and losses are recognized based on the offsetting of that
portion. However, the unrealized loss from internal transactions incurred between the Company and
its investee is not offset if it belongs to impairment loss from assets transferred.
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(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the control over certain arrangement under related agreements, and related
activities of the arrangement can only be determined with the unanimous consent of the parties
sharing the control. During the judgment of joint control, it is required to determine whether the
arrangement is controlled collectively by all participants or combinations of participants, and then
determine whether decisions on activities related to the arrangement must be made with the
unanimous consent of those participants who collectively control the arrangement. It is deemed that
all participants or a group of participants collectively control the arrangement if related activities of
an arrangement can be decided only with the concerted action of all participants or a group of
participants. If there are two or more combinations of parties that can collectively control an
arrangement, this situation does not constitute joint control. For the determination of whether there is
joint control, protective rights are not taken into account.
Significant influence refers to the power of the investor to participate in making decisions on the
financial and operating policies of the investee, but cannot control or jointly control with other
parties over the preparation of these policies. The possibility of exerting significant influence on the
investee is determined by considering the influence of the voting shares of the investee directly or
indirectly held by the investor and the influence when it is assumed that the potential voting rights
executable for the current period held by the investor and other parties are converted into the equity
of the investee, including the influence of the warrants, stock options and corporate bonds which can
be converted in the current period issued by the investee.
It is generally considered that the Company has significant influence on the investee when the
Company directly holds more than 20% (inclusive) but less than 50% of the voting shares of the
investee or holds indirectly through subsidiaries, unless there is clear evidence indicating that it
cannot participate in the production and operation decisions of the investee under such circumstances,
in which case it has no significant influence. It is generally not considered that the Company has
significant influence on the investee when the Company owns less than 20% (exclusive) of the
voting shares of the investee, unless there is clear evidence indicating that it can participate in the
production and operation decisions of the investee under such circumstances, in which case it has
significant influence.
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(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision for
asset impairment is described in 35 "Others" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
20 Investment properties
Measurement mode of investment properties: cost method
Depreciation or amortization method
Investment properties refer to the properties held for earning rent or capital appreciation, or both.
Investment properties of the Company include the land use rights that have already been rented, the
land use rights held for transfer after appreciation, and the buildings that have been rented.
Investment properties of the Company are initially measured as per the price upon acquisition and
depreciated or amortized on schedule as per relevant provisions on fixed assets or intangible assets.
For the investment real estate which is subsequently measured with the cost mode, the method of
drawing asset impairment is described in 35 "Others" in V "Significant Accounting Policies and
Accounting Estimates" of Section X - Financial Report.
The disposal income from the sale, transfer, retirement or damage of investment properties shall be
included in current profits and losses after deducting its book value and relevant taxes.
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, rendering
of services, the renting or operation and management, with a service life exceeding one accounting
year.
The fixed assets can be recognized only when the economic benefits related to such fixed assets are
likely to flow into the enterprise and the cost of such fixed assets can be measured reliably.
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Fixed assets of the Company are initially measured at the actual cost upon acquisition.
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the
related economic benefits are likely to flow into the Company and the costs can be reliably measured.
The daily repair costs of fixed assets that do not meet the conditions for the subsequent expenditure
of fixed assets capitalization are included in the current profits and losses or the costs of relevant
assets based on the beneficiaries at the time of occurrence. For the replaced part, its book value is
derecognized.
(2) Depreciation method
Depreciation Depreciation Residual Annual Depreciation
Category
Method Period Rate Rate
Straight-line
Houses and Buildings 2020 3-5 4.85-4.75
method
Machinery Straight-line
10 years 0-3 10.00-9.70
Equipment method
Transportation Straight-line
4-10 years 0-5 25.00-9.50
Equipment method
Straight-line
Electronic Equipment 3 years 0-5 33.33-31.67
method
Straight-line
Office Equipment 5 years 3-5 19.40-19.00
method
Straight-line
Others 5 years 0-5 20.00-19.00
method
he Company uses the straight-line method for depreciation. The depreciation of fixed assets starts
when they reach the expected serviceable condition and stops when they are derecognized or
classified as non-current assets held for sale. Without taking into account the provision for
impairment, the Company determines the annual depreciation rate of various fixed assets according
to the category, estimated service life and estimated residual value of fixed assets.
Among them, for fixed assets with provision for impairment, the accumulated amount of provision
for impairment shall also be deducted to calculate and determine the depreciation rate.
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(3) For the impairment test methods and impairment provision methods of fixed assets, please
refer to 35 "Others" in V "Significant Accounting Policies and Accounting Estimates" of
Section X - Financial Report.
(4) The Company reviews the service life, expected net residual value and depreciation method
of fixed assets at the end of each year.
The service life of fixed assets shall be adjusted if the expected service life is different from the
original estimate, and the estimated net residual value shall be adjusted if the estimated net residual
value is different from the original estimate.
(5) Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, the
recognition of such fixed asset is terminated. The disposal income from the sale, transfer, retirement
or damage of fixed assets shall be included in current profits and losses after deducting its book
value and relevant taxes.
22 Construction in progress
The cost of construction in progress of the Company is recognized according to the actual
construction expenditures, including various necessary construction expenditures incurred during the
construction period, borrowing costs that shall be capitalized before the construction reaches the
expected condition for its intended use, and other relevant expenses.
Construction in progress is transferred to fixed assets when it is ready for its intended use.
For the method of provision for asset impairment of construction in progress, refer to 35 "Others" in
V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
23 Intangible Assets
(1) Service life and its determination basis, estimate, amortization method or review procedure
Intangible assets of the Company include land use rights, software, non-patented technologies, etc.
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Intangible assets are initially measured at cost and their service life is analyzed and judged at the
time of acquisition. Where the service life is limited, the intangible asset is amortized over its
expected service life, from the time it is available, with an amortization method that reflects the
expected realization of the economic benefits associated with the asset. The straight-line method is
adopted for amortization if the expected realization mode cannot be determined reliably. Intangible
assets with uncertain service life are not amortized.
The amortization method for intangible assets with limited service life is as follows:
Category Service Life Amortization Method Remarks
Land Use Right 50 years Straight-line method
Software 2-10 years Straight-line method
Non-patented Technology 5-10 years Straight-line method
The Company reviews the service life and amortization method of intangible assets with limited
service life at the end of each year. If it is different from the previous estimate, the original estimate
shall be adjusted and treated as a change in accounting estimates.
The book value of an intangible asset is transferred into the current profits and losses in full if it is
expected that the asset cannot bring economic benefits to the enterprise in the future on the balance
sheet date.
For the method of provision for asset impairment of the intangible assets, refer to 35 "Others" in V
"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accounting
treatment methods
The Company's research and development expenditures are directly related to the Company's
research and development activities, including research and development labor costs, test expenses,
depreciation costs, design fees, and trial production fees.
The Company divides the expenditures of internal research and development projects into
expenditures at the research stage and expenditures at the development stage.
The expenditures at the research stage are included in current profits and losses when incurred.
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Expenditures at the development stage can be capitalized only when the following conditions are met
simultaneously, namely, it is technically feasible to complete the intangible assets so that they can be
used or sold; there is an intention to complete the intangible assets and use or sell them; the ways for
intangible assets to generate economic benefits include proving that there is a market for the products
produced by using the intangible assets or the intangible assets themselves, and proving their
usefulness if they are to be used internally; there are sufficient technical, financial and other
resources to support the development of the intangible assets and the ability to use or sell the
intangible assets; the expenditure at the development stage of the intangible assets can be measured
reliably. The development expenditures failing to meet the above conditions are included in current
profits and losses when they occur.
The R&D projects of the Company enter the development stage after project approval by meeting the
above conditions and passing the technical feasibility and economic feasibility study.
The capitalized expenditures at the development stage are presented as development expenditures on
the balance sheet and are transferred into intangible assets from the date when the project realizes its
intended use.
The capitalization conditions of specific research and development projects are as follows: The
Company's research and development project ends with product planning, and the division point of
the research and development stages lies in the fact that the overall plan of the development project
is prepared and adopted through deliberation and decision-making on the product project review
meeting (that is, project initiation). The expenses incurred in the planning stage before the project
initiation are directly included in the current profits and losses, and those incurred after the project
initiation are included in expenditures in the development stage.
24. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint
ventures, investment real estate subsequently measured by the cost model, fixed assets, projects
under construction, right-of-use assets, intangible assets, etc. (except for inventories, deferred income
tax assets and financial assets) is recognized with the following methods:
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The Company judges whether there is a sign of impairment to assets on the balance sheet date. If
such a sign exists, the Company estimates the recoverable amount and conducts the impairment test.
Impairment tests shall be carried out every year on goodwill resulting from business mergers,
intangible assets with uncertain service life and intangible assets that are not available no matter
whether there is any sign of impairment.
The recoverable amount is the net amount of the fair value of the assets after deducting the disposal
expenses or the present value of the expected future cash flow of the assets, whichever is higher. The
Company estimates the recoverable amount based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group shall be determined
based on the asset group to which the asset belongs. An asset group is determined based on the fact
that the main cash inflows generated by the asset group are independent of the cash inflows of other
assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company
writes down its book value to the recoverable amount, and the write-down amount is included in
current profits and losses, and the corresponding impairment provision of assets is made at the same
time.
For the impairment test of goodwill, the book value of goodwill resulting from business merger is
amortized to relevant asset groups with reasonable methods from the acquisition date, or amortized
to relevant asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset
groups or portfolios of asset groups are those that can benefit from the synergies of business merger
and are not greater than the reporting segment determined by the Company.
If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill
during the impairment test, the impairment test shall be carried out on the asset group or portfolio of
asset groups not including goodwill, and the recoverable amount shall be calculated to determine the
corresponding impairment loss. Then, an impairment test is carried out on the asset group or
portfolio of asset groups including goodwill to compare its book value and recoverable amount, and
determine the impairment loss of goodwill if the recoverable amount is lower than the book value.
Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting
periods.
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25 Long-term deferred expenses
Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely
amortized as per the expected benefit period. The amortized value of the long-term deferred
expenses that cannot benefit the future accounting period is included in the current profits and losses.
26. Contract liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer's payment. The Company
presents the contract assets and liabilities under the same contract on a net basis after offsetting each
other.
Contractual liability refers to an obligation to transfer goods or services to a customer for which
customer consideration has been received or receivable, such as payments received by an enterprise
prior to the transfer of promised goods or services.
27. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by
enterprises to obtain services provided by employees or to terminate labor relations. Employee
compensation includes short-term compensation, post-employment benefits, dismissal benefits and
other long-term employee benefits. The benefits provided by the enterprise to employees' spouses,
children, dependents, survivors of deceased employees and other beneficiaries also belong to
employee compensation.
According to liquidity, employee compensation is listed in the "employee compensation payable"
and "long-term employee compensation payable" items of the balance sheet.
Short-term compensation
In the accounting period when employees provide services, the Company recognizes the employee
wages, bonuses, social security contributions according to regulations such as medical insurance,
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work injury insurance and maternity insurance as well as housing funds as liability, and includes
them in current profits and losses or relevant asset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. The
defined contribution plan refers to the post-employment benefit plan that the enterprise will no
longer bear the payment obligation after paying fixed fees to independent funds. The defined benefit
plan refers to the post-employment benefit plan other than the defined contribution plan.
Defined contribution plan
The defined contribution plan includes basic pension insurance, unemployment insurance and
enterprise annuity plan.
In the accounting period when employees provide services, the Company recognizes the amount
payable to a defined contribution plan as a liability, and includes it in the current profit or loss or
relevant asset cost.
Defined benefit plan
The defined benefit plan shows that an actuarial valuation is performed by an independent actuary on
the annual balance sheet date, and the benefit cost is determined with the expected cumulative
benefit unit method. The Company recognizes the following components of employee benefits cost
arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses.
Among them, the current service cost refers to the increase in the present value of the defined benefit
plan obligations due to the provision of services by employees in the current period; the past service
cost refers to the increase or decrease in the present value of the defined benefit plan obligations
related to the employee services in the previous period due to the modification of the defined benefit
plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan
assets, interest expense of defined benefit plan obligations and interest affected by asset ceiling.
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③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.
The Company includes the above items ① and ② in the current profits and losses, unless other
accounting standards require or allow the cost of employee benefits to be included in the cost of
assets; item ③ is included in other comprehensive income and will not be reversed back to profit or
loss in subsequent accounting periods, and the part originally included in other comprehensive
income within the equity scope is carried forward to undistributed profit when the original defined
benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employee
compensation arising from dismissal welfare are recognized at the earlier of the following two dates
and included in the current profit or loss: the Company cannot unilaterally provide the dismissal
welfare provided due to the labor relation termination plan or the layoff suggestions; the Company
recognizes the costs or expenses related to the restructuring of termination benefits payment.
If the early retirement plan is implemented, the economic compensation before the official retirement
date belongs to dismissal welfare. The wages proposed to be paid to the early retired employee and
the social insurance premiums to be paid are included in the current profits and losses in a lump sum
from the date when the employee stops providing services to the normal retirement date. Economic
compensation after the official retirement date (such as normal pension) belongs to post-employment
benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the
conditions for classifying as a defined contributions plan are accounted for in accordance with the
above requirements relating to defined contribution plan. The benefits that meet the requirements of
the defined benefit plan are treated in accordance with the provisions of the plan. However, the
"changes caused by remeasurement of net liabilities or net assets of the defined benefit plan" in
relevant employee compensation costs are included in current profits and losses or relevant asset
costs.
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28. Provisions
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet
all of the following conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the
Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant
current obligation, in comprehensive consideration of the risks, uncertainty, time value of money,
and other factors pertinent to the Contingencies. The best estimate is determined by discounting the
relevant future cash outflow if the time value of money has a significant impact. At the balance sheet
date, the book value of the estimated liabilities is reviewed and adjusted by the Company to reflect
the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized provisions are expected to
be compensated by a third party or any other party, the amount of compensation shall be recognized
as assets separately only when it is basically sure that the amount can be obtained. The recognized
amount of compensation shall not exceed the book value of recognized liabilities.
29. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment and
cash-settled share-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active
market according to the quotation of the active market. The Company recognizes the fair value of
equity instruments such as granted options without active market by using the option pricing model.
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The following factors are considered in the selected option pricing model: A. exercise price of
options; B. validity period of options; C. current price of underlying shares; D. expected fluctuation
ratio of stock price; E. expected dividends of shares; F. risk-free interest rate within the validity
period of options.
(3) Basis for determining the optimal estimate of vested equity instruments
The Company makes the optimal estimate based on the latest follow-up information such as changes
in the number of vesting employees and corrects the expected number of vested equity instruments
on each balance sheet date within the vesting period. On the vesting date, the final estimated number
of vested equity instruments shall be consistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-
based payment plan
Share-based payments settled by equity are measured at the fair value of the equity instruments
granted to employees. Where the equity instrument can be vested immediately upon being granted,
the share-based payment is included in relevant costs or expenses at the fair value of equity
instrument on the granting date and the capital reserve shall be increased accordingly. Where the
equity instrument can not be vested until the vesting period comes to an end or until the specified
performance conditions are met, at each balance sheet date within the vesting period, the services
obtained in the current period are, based on the optimal estimate of the number of vested equity
instruments, included in relevant costs or expenses and capital reserve at the fair value specified on
the granting date of equity instruments. After the vesting date, it shall make no adjustment to the
relevant costs or expenses as well as the total amount of the owner's equities which have been
confirmed.
Share-based payments settled by cash are measured at the fair value of liabilities recognized based
on shares or other equity instruments assumed by the Company. Where the equity instrument can be
vested immediately upon being granted, the payment shall be included in the relevant costs or
expenses at the fair value of the liabilities assumed by the Company on the granting date, and the
liabilities shall be increased accordingly. Where the share-based payment settled by cash cannot be
vested until the vesting period comes to an end or until the specified performance conditions are met,
on each balance sheet date within the vesting period, the services acquired in current period are,
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based on the optimal estimation of the vesting right, included in costs or expenses and corresponding
liabilities at the fair value of the liabilities assumed by the Company. On each balance sheet date and
the settlement date prior to the settlement of the relevant liabilities, the fair value of the liabilities
shall be re-measured, with its changes included in the current profits and losses.
When the Company modifies the share-based payment plan, the increase in services obtained shall
be recognized based on the increase (if any) in the fair value of equity instruments; if the quantity of
granted equity instruments is increased, the fair value of the increased equity instruments shall be
recognized accordingly as the increase in the services obtained. The increase in the fair value of
equity instruments refers to the difference between the fair values of equity instruments before and
after modification on the modification date. If the total fair value of share-based payment is reduced
in the modification or the terms and conditions of the share-based payment plan are modified in other
ways unfavorable to employees, the accounting treatment on acquired services shall continue as if
the change has never occurred, unless the Company has canceled part or all of the granted equity
instruments.
If, during the vesting period, the granted instruments are canceled (except for those canceled because
of failure to meet the non-market conditions of the vesting conditions), the Company shall accelerate
the vesting of the granted equity instruments, and immediately include the amount to be recognized
in the remaining vesting period in the current profit and loss, and determine the capital reserve in the
meantime. In the event that the employees or other parties can choose to meet the non-vesting
conditions but fail to meet such conditions during the vesting period, the Company shall treat it as
the cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the
incentive objects subscribe for the shares preferentially. If the unlocking conditions stipulated in the
equity incentive plan are not met subsequently, the Company will repurchase the shares at the price
agreed in advance. If the restricted shares issued to employees have completed capital increase
procedures such as registration as specified, the Company shall determine the share capital and
capital reserve (share premium) according to the share subscription money received from employees
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on the granting date, and determine the treasury shares and other payables in terms of the repurchase
obligation.
30. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract,
i.e., the customer has obtained the control rights of the relevant goods or services.
If the contract contains two or more performance obligations, the Company shall, at the beginning
date of the contract, apportion the transaction price to each performance obligation according to the
relative proportion of the individual selling price of the goods or services promised by each
performance obligation, and measure the income according to the transaction price apportioned to
each performance obligation.
In case one of the following conditions is met, the Company will perform the performance
obligations within a period of time. Otherwise, it will perform the performance obligations at a time
point:
① The customer obtains and consumes the economic benefits brought by the performance of the
contract by the Company at the same time.
② The customer can control the goods under construction during the Company's performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Company
has been entitled to receive payment for the performance accumulated so far throughout the term of
the contract.
For the performance obligations performed within a certain period of time, the Company shall
determine the income within that period according to the performance progress. If the performance
progress cannot be reasonably confirmed, and the costs incurred by the Company can be expected to
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be compensated, the incomes shall be recognized according to the amount of costs incurred until the
performance progress can be reasonably confirmed.
For performance obligations performed at a certain time point, the Company shall confirm the
income at the time point when the customer gains control rights of the relevant goods or services. In
determining whether a customer has obtained the control rights of the goods or services, the
Company shall take the following signs into consideration:
① The Company enjoys the right to the current collection, i.e., the customer has the obligation to
pay immediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the customer
owns the legal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., the customer has possessed
the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to
the customer, i.e., the customer has obtained the major risks and remuneration on the ownership of
the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.
The right of the Company to receive the consideration due to the transfer of goods or services to the
customer (and the right depends on factors other than the passage of time) is taken as a contractual
asset, and the provision for impairment of the contractual assets are based on the expected credit
losses (please refer to 11 "Financial Instruments" in V "Significant Accounting Policies and
Accounting Estimates" of Section X - Financial Report). The Company’s unconditional (subject only
to the passage of time) right to collect consideration from customers shall be presented as receivables.
The Company's obligations to transfer goods or services to the customer due to customer
consideration received or receivable shall be defined as contract liabilities.
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Contract assets and contract liabilities under the same contract shall be presented in net amount. If
the net amount is the debit balance, it shall be presented in the item of "contract assets" or "other
non-current assets" according to its liquidity; if the net amount is the credit balance, it shall be
presented in the item of "contract liabilities" or "other non-current liabilities" according to its
liquidity.
(2) Specific methods
When the complete vehicles and their accessories and other goods are transported to the agreed
delivery location under the terms of the contract, the customer has accepted the goods and obtained
the right to control over them, and the Company recognizes the income.
31 Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied and
the government subsidies can be received.
The government subsidies considered as monetary assets are measured at the amount received or
receivable. The government subsidies considered as non-monetary assets are measured based on the
fair value, or the nominal amount of CNY 1 if the fair value cannot be acquired reliably.
Asset-related government subsidies refer to those obtained by the Company and used for acquiring or
forming long-term assets in other ways; otherwise, they are regarded as income-related government
subsidies.
For the government subsidies with the grant objects not expressly stipulated in the government
documents, if they can be used to form long-term assets, the government subsidies corresponding to
the asset value are deemed as the government subsidies related to assets while the rest is deemed as
the one related to income; for the government subsidies that are difficult to differentiate, the
government subsidies as a whole are deemed as income-related government subsidies.
Asset-related government subsidies are recognized as deferred income and included in profits or
losses by stages with a reasonable and systematic method within the service life of related assets. For
the income-related government subsidies, they shall be included in the current profit and loss or write
down related costs if used to compensate for the incurred related costs or losses; if used to
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compensate for the related costs or losses during future periods, they shall be included in the deferred
income, and included in the current profit and loss during the period when the related costs or losses
are recognized. Government subsidies measured at the nominal amount are directly included in the
current profit and loss. The Company adopts the same treatment for those transactions of similar
government subsidies.
The government subsidies related to daily activities shall be included in other incomes based on the
substance of business transactions. Government subsidies irrelevant to daily activities are included in
non-business income.
If it is necessary to refund the government subsidies that have been recognized, the book value of the
assets which has been offset at the time of initial recognition is adjusted; the book balance of the
deferred income concerned (if any) is offset, and the excess is included in the current profits and
losses; others are directly included in the current profits and losses.
32 Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in
the current profit and loss as income tax expenses, except that the deferred income taxes related to
the adjustment of goodwill due to business merger or the transactions or matters directly included in
the owner's equity are included in the owner's equity.
The Company recognizes deferred income tax by the balance sheet liability method according to the
temporary difference between the book value of assets and liabilities on the balance sheet date and
the tax base.
Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the
taxable temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a
transaction that is neither a business combination nor affects the accounting profit or taxable income
at the time of the transaction (except for individual transactions where the assets and liabilities
initially recognized result in equal amounts of taxable temporary differences and deductible
temporary differences);
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(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint
ventures and associated enterprises, the time of reversal of the temporary difference can be
controlled and the temporary difference is unlikely to be reversed in the foreseeable future.
The Company recognizes a deferred tax asset for the carry-forward of deductible temporary
differences, deductible losses and tax credits to subsequent periods, to the extent that it is probable
that future taxable profits will be available against which the deductible temporary differences,
deductible losses and tax credits can be utilized, except for those incurred in the following
transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable
income at the time of the transaction (except for individual transactions where the assets and
liabilities initially recognized result in equal amounts of taxable temporary differences and
deductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary difference
associated with investments in subsidiaries, associated enterprises and joint ventures meets all of the
following conditions: The temporary difference is likely to be reversed in the foreseeable future, and
the taxable income which is used to deduct the deductible temporary difference is likely to be
obtained in the future.
The Company measures the deferred income tax assets and deferred income tax liabilities at the
applicable tax rate during the expected period for recovering the assets or paying off the liabilities on
the balance sheet date and reflects the impact on income tax from assets recovery or liability
settlement on the balance sheet date.
At the balance sheet date, the Company reviews the book value of a deferred income tax asset. If it is
likely that sufficient taxable profits will not be available in future periods to deduct the benefit of the
deferred tax assets, the book value of the deferred tax assets is reduced. Any such write-down shall
be subsequently reversed where it becomes probable that sufficient taxable income will be available.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented
by net amount after set-off when both of the following conditions are satisfied:
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(1) The taxpayer within the Company has the legal rights to settle the income tax assets and income
tax liabilities in the current period by net amount;
(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxes
imposed by the same taxation authority on the same taxpayer within the Company.
33. Lease
(1) Accounting treatment methods of lease with the Company as the lessee
Identification of lease
On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether
the customer in the contract is entitled to obtain almost all economic benefits arising from the use of
the identified assets during the use period, and is entitled to dominate the use of the identified assets
during the use period. If one party to the contract abalienates the right to control the use of one or
more identified assets within a certain period of time in exchange for consideration, the Company
determines that the contract is a lease or includes a lease.
The Company acting as the lessee
At the commencement of the lease term, the Company recognizes right-of-use assets and lease
liabilities for all leases, except for simplified short-term leases and low-value asset leases.
For the accounting policies of the right-of-use assets, see 35 "Others" in V "Significant Accounting
Policies and Accounting Estimates" of Section X - Financial Report.
Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit
in the lease according to the unpaid lease payment on the commencement date of the lease term. If
the interest rate implicit in lease cannot be determined, the incremental borrowing rate shall be used
as the discount rate. The lease payment includes: fixed payment and substantial fixed payment. If
there is a lease incentive, the amount related to the lease incentive shall be deducted; variable lease
payments depending on index or ratio; the exercise price of the purchase option, provided that the
lessee reasonably determines that the option will be exercised; payments for exercising the option to
terminate the lease, provided that the lease term reflects that the lessee will exercise the option to
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terminate the lease; and the amount expected to be paid according to the guaranteed residual value
provided by the lessee. The interest expenses of the lease liabilities within each lease term shall be
calculated subsequently according to the fixed periodic rate, and included in the current profits and
losses. Variable lease payments not included in the measurement of lease liabilities are included in
the current profits and losses when they actually occur.
Short-term lease
Short-term lease refers to a lease with a lease term of not more than 12 months on the
commencement date of the lease term, except for the lease containing the purchase option.
The Company includes the lease payment for short-term lease into relevant asset costs or current
profits and losses by the straight-line method at each period within the lease term.
For short-term lease, the Company selects the above simplified treatment method for the items
meeting the short-term lease conditions in the following asset types according to the category of
leased assets.
Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single new leased asset is less than
CNY 40,000.
The Company includes the payment of low-value asset lease into relevant asset costs or current
profits and losses with the straight-line method in each period within the lease term.
For low-value asset leases, the Company selects the above simplified treatment method according to
the specific conditions of each lease.
Lease change
If the lease changes and meets the following conditions at the same time, the Company takes the
lease change as a separate lease for the accounting treatment: ① The lease change expands the lease
scope by increasing the right to use one or more leased assets; and ② the increased consideration is
equivalent to the amount by adjusting the separate price of the expanded lease scope according to the
contract.
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If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the
effective date of the lease change, reallocate the consideration of the changed contract, redetermine
the lease term, and remeasure the lease liabilities according to the changed lease payment and the
present value calculated by the revised discount rate.
If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will
correspondingly reduce the book value of right-of-use assets, and include relevant profits or losses of
partial or complete termination of leasing in current profits and losses.
If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the
book value of the right-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to
the ownership of the assets is recognized as a finance lease, and other leases than finance leases are
recognized as operating leases.
Finance lease
In financial lease, at the commencement of the lease term, the Company takes the net investment in a
lease as the entry value of the finance lease receivables, and the net investment in a lease is the sum
of the unguaranteed residual value and the present value of the lease receipts not yet received at the
commencement of the lease term discounted at the interest rate implicit in lease. The Company, as
the lessor, calculates and recognizes interest income in each lease term at a fixed periodic rate. The
variable lease payment obtained by the Company as the lessor and not included in the measurement
of net lease investment is included in the current profits and losses when it actually occurs.
Derecognition and impairment of finance lease receivables are accounted for according to the ASBE
No. 22 - Recognition and Measurement of Financial Instruments and the ASBE No. 23 - Transfer of
Financial Assets.
Operating lease
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Lease income from operating leases is included in current profits or losses by the Company as per
the straight-line method over the lease term. The occurred initial direct cost related to the operating
lease shall be capitalized, amortized within the lease term according to the same base with the
recognition of rental income, and included in the current profits and losses by stages. The variable
lease receipts obtained by the Company related to operating leases and not charged to the lease
receipts shall be charged to the current profit and loss when they actually occur.
Lease change
In case of any change in an operating lease, the Company carries out accounting treatment as it is a
new lease since the effective date of the change, and the advance receipts and receivables related to
the lease before the change are deemed as the receipts of the new lease.
If the financial lease changes and meets the following conditions, the Company takes the change as a
separate lease for accounting treatment: ① The change expands the lease scope by increasing the
right to use one or more leased assets; and ② the increased consideration is equivalent to the amount
by adjusting the separate price of the expanded lease scope according to the contract.
If the change of finance lease is not taken as a separate lease for accounting treatment, the Company
shall treat the changed lease under the following circumstances respectively: ① If the change takes
effect on the commencement date of the lease and the lease will be classified as an operating lease,
the Company will take it as a new lease for accounting treatment from the effective date of the lease
change, and take the net investment in the lease before the effective date of the lease change as the
book value of the leased asset. ② If the change takes effect on the commencement date of the lease
and the lease will be classified as a finance lease, the Company shall carry out accounting treatment
in accordance with the provisions of the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments on modifying or renegotiating the contract.
34. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
Applicable □Not applicable
Interpretation No. 16 of Accounting Standards for Business Enterprises
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In November 2022, the Ministry of Finance issued the Interpretation No. 16 of the Accounting
Standards for Business Enterprises (CK [2022] No. 31) (hereinafter referred to as "Interpretation No.
16").
Interpretation No.16 stipulates that for a single transaction that is not a business combination and
does not affect accounting profits or taxable income (or deductible losses) at the time of the
transaction and that the initial recognition of assets and liabilities results in equal amounts of taxable
temporary differences and deductible temporary differences, such taxable temporary differences and
deductible temporary differences arising from the initial recognition of assets and liabilities shall be
recognized at the time the transaction occurred as the corresponding deferred income tax liabilities
and deferred income tax assets in accordance with relevant provisions such as the Accounting
Standards for Business Enterprises No. 18 - Income Tax. The Company shall apply these provisions
to transactions that occurred from the beginning of the earliest period of the financial statements for
which the provisions are first applied until the Implementation Date of the Interpretation. The
cumulative impact of these adjustments shall be used to adjust the opening retained earnings and
other related financial statement items for the earliest period in the presentation of financial
statements. The above provisions on the accounting treatment have come into effect since January 1,
2023.
The Company shall also adjust the taxable temporary difference and deductible temporary difference
for lease liabilities and right-of-use assets recognized for the lease business in accordance with the
provisions of Interpretation No. 16.
The enforcement of the above accounting policies has the following impact on the consolidated：
Unit: CNY
Items of consolidated balance sheet
Amounts affected
(December 31, 2023)
Deferred Income Tax Assets 12,975,866.73
Deferred income tax liabilities 12,560,241.88
Undistributed profit at the end of the year 415,624.85
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Items of consolidated income statement Amounts affected
(Year 2023)
Income tax expenses -443,956.60
The enforcement of the above accounting policies has the following impact on the consolidated
bala balance sheet on December 31, 2023 and the 2023 consolidated income statement:
Unit: CNY
Items of consolidated balance
Before After
sheet Amount adjusted
adjustment adjustment
(December 31, 2022)
Deferred Income Tax Assets 2,131,349,905.21 19,643,880.89 2,150,993,786.10
Deferred income tax liabilities 430,369,867.93 19,672,212.64 450,042,080.57
Undistributed profit at the end
5,460,939,601.36 -28,331.75 5,460,911,269.61
of the year
Items of consolidated
After
income statement Before adjustment Amount adjusted
adjustment
(Year 2022)
Income tax expenses -185,173,776.38 301,331.78 -184,872,444.60
The enforcement of the above accounting policies has the following impact on the consolidated
balance sheet on January 1, 2022.
Unit: CNY
Items of consolidated
After
balance sheet Before adjustment Amount adjusted
adjustment
(January 01, 2022)
Deferred Income Tax
1,650,296,511.26 26,243,041.30 1,676,539,552.56
Assets
Deferred income tax
374,185,114.15 25,970,041.27 400,155,155.42
liabilities
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Items of consolidated
After
balance sheet Before adjustment Amount adjusted
adjustment
(January 01, 2022)
Undistributed profit at the
8,434,403,352.08 273,000.03 8,434,676,352.11
end of the year
Cumulative impact of changes in accounting policies during the current period Unit: CNY
Affected items Current Period Previous Period
Net assets at the beginning of the period -28,331.75 273,000.03
Including: Retained earnings -28,331.75 273,000.03
Net Profit 443,956.60 -301,331.78
Capital Reserves
Other Comprehensive Incomes
Special Reserves
Net assets at the end of the period 415,624.85 -28,331.75
Including: Retained earnings 415,624.85 -28,331.75
(2) Change in significant accounting estimates
□Applicable Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after
the first implementation of the new accounting standards since 2023
□Applicable Not applicable
35. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer of
liability by market participants in the orderly transaction on the measurement date.
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he Company measures related assets or liabilities at fair value, assuming that the sale of an asset or
the transfer of liability is conducted in major markets for relevant assets or liabilities in an orderly
transaction. If the major market is not provided, the transaction shall be assumed to be performed in
the most favorable market for relevant assets or liabilities. Major markets (or most favorable markets)
are the markets where the Company can enter on the measurement date. The Company uses the
assumptions used by market participants to maximize their economic benefits when they price the
asset or liability.
Fair value of financial assets or financial liabilities with the active market is determined based on
quotations in the active market by the Company. Fair value of financial instrument without an active
market is determined through valuation techniques.
When non-financial assets are measured at fair value, it is required to consider the ability of market
participants to use the asset for optimal purposes to produce economic benefits, or to sell the asset to
other market participants that can use such assets for optimal purposes to produce economic benefits.
The Company shall adopt the estimation technique that is applicable in the current conditions and is
supported sufficiently by available data and other information. The relevant observable input values
shall be used in priority during the application of estimation technique. Only when relevant
observable value cannot be obtained or can be obtained but is not feasible, the unobservable input
value can be used.
For assets and liabilities measured or disclosed at fair value in the financial statements, the level to
which the fair value belongs is determined according to the lowest level input value that is of
significance for the whole fair value measurement: The input value for the first level refers to the
unadjusted quotation of the same assets or liabilities in the active market that can be obtained on the
measurement date; the input value for the second level refers to the input value that can be directly or
indirectly observed for relevant assets or liabilities other than that for the first level; and the input
value for the third level refers to the input value that cannot be observed for relevant assets or
liabilities.
The Company reassesses the assets and liabilities successively measured at fair value recognized in
financial statements on each balance sheet date to determine the transition among fair value
measurement levels.
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(2) Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contract
performance cost.
Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that
would not have occurred if the Company had not obtained the contract. If the cost is expected to be
recovered, the Company recognizes it as a contract acquisition cost and an asset. Other expenditures
incurred by the Company for obtaining contracts other than incremental costs that are expected to be
recovered are included in current profits and losses when incurred.
If the cost incurred for contract performance is not within the scope of other accounting standards for
business enterprises such as inventories and meets the following conditions at the same time, the
Company recognizes it as an asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct
materials, manufacturing costs (or similar costs), the costs clearly borne by the customer, and other
costs incurred only by the Contract;
② This cost increases the Company’s resources for performing the performance obligations in the
future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs
(hereinafter referred to as "assets related to contract costs") are amortized on the same basis as
revenue recognition of goods or services related to the assets and are included in current profits and
losses.
When the book value of the assets related to the contract cost is higher than the difference between
the following two items, the Company will make provision for the impairment of the excess and
recognize it as the asset impairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods or
services related to the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.
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The contract performance cost recognized as an asset shall be listed in the "inventory" item if its
amortization period does not exceed one year or a normal operating cycle at initial recognition, and
shall be listed in the "other non-current assets" item if its amortization period exceeds one year or a
normal operating cycle at initial recognition.
The contract acquisition cost recognized as an asset shall be listed in the item "Other current assets"
if the amortization period at the time of initial recognition is not more than one year or one normal
operating cycle, and listed in the item "Other non-current assets" if the amortization period at the
time of initial recognition is more than one year or one normal operating cycle.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the
method of excess regression based on the actual operating income of the previous year according to
the provisions of CZ [2022] No. 136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10
million, 2.35% of work safety cost will be withdrawn; for the part of operating income between CNY
10 million and CNY 100 million, 1.25% shall be withdrawn; for the part of the operating income
between CNY 100 million and CNY 1 billion, 0.25% will be withdrawn; for the part of the operating
income between CNY 1 billion and CNY 5 billion, 0.1% will be withdrawn; for the part of the
operating income over CNY 5 billion, 0.05% will be withdrawn.
For transportation enterprises, the work safety cost is withdrawn month by month in an average
manner according to the following standards based on the actual operating income in the previous
year: 1% for ordinary freight business; 1.5% for passenger transportation, pipeline transportation,
dangerous goods transportation and other special freight businesses. Work safety cost and
maintenance & renovation cost are included in the cost of relevant products or the current profit and
loss when withdrawn, and are also included in the "special reserve" account.
For the withdrawn work safety cost and maintenance & renovation cost used within the specified
scope, those belong to expense expenditures are directly offset by specific reserves; those cost
incurred via collection under the item of “construction in progress” is recognized when the safety
project completes and is ready for intended use. At the same time, the Company will offset the
specific reserves according to the cost that formed fixed assets and determine the accumulated
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depreciation of the same amount. The fixed assets will no longer be depreciated in subsequent
periods.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or
transferred, and all expenditures on repurchased shares are transferred to treasury share costs.
Considerations in the payment for shares repurchase and reduced owner’s equity in transaction
expenses are not recognized as profits or losses during repurchase, assignment and write-off of the
Company's shares.
The transferred treasury shares are included in the capital reserve based on the difference between
the amount actually received and the book value of the treasury shares. The surplus reserve and
undistributed profits shall be offset if the capital reserve is insufficient to offset. The canceled
treasury shares are used to offset the capital reserve based on the difference between the book
balance and the face value of the canceled treasury shares by reducing the share capital according to
the face value of the shares and the number of canceled shares. The surplus reserve and undistributed
profits shall be offset if the capital reserve is insufficient to offset.
(5) Significant accounting judgment and estimate
The Company continuously evaluates the significant accounting estimates and key assumptions
adopted based on historical experience and other factors, including reasonable expectations for future
events. Significant accounting estimates and key assumptions that may lead to significant adjustment
risk to the book value of assets and liabilities in the next accounting year are presented as follows:
Classification of financial assets
Major judgments involved in determining the classification of financial assets include the analysis of
business models and contractual cash flow characteristics.
The Company determines the business model of managing financial assets at the level of financial
asset portfolio, considering the way of evaluating and reporting financial asset performance to key
management personnel, the risks affecting the financial asset performance and their management
methods, and the way for the relevant business management personnel to obtain the remuneration.
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When evaluating whether the contractual cash flow of financial assets is consistent with the basic
loan arrangement, the Company has the following main judgments: May the principal change in the
time distribution or amount in the duration due to prepayment and other reasons? Does the interest
include only the time value of money, credit risk, other basic borrowing risks, and consideration for
costs and profits? For example, does the amount of prepayment only reflect the unpaid principal and
interest based on the outstanding principal, as well as reasonable compensation paid due to early
termination of the contract?
Measurement of expected credit losses on accounts receivable
The Company calculates the expected credit loss of accounts receivable through default risk
exposure and expected credit loss rate of accounts receivable, and determines the expected credit loss
rate based on default probability and loss given default. In determining the expected credit loss rate,
the Company uses the internal historical credit loss experience and other data, and adjusts the
historical data according to the current situation and forward-looking information. When the
forward-looking information is considered, the indicators used by the Company include risks of
economic downturn, changes in external market environment, technological environment and
customer conditions. The Company regularly monitors and reviews the assumptions related to the
calculation of expected credit losses.
Development expenditures
In determining the capitalization amounts, the management must make assumptions on the expected
future cash flow generation of assets, discount rate to be adopted and expected benefit period.
Deferred Income Tax Assets
The deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highly
probable that there will be sufficient taxable profits available for offsetting the losses. This requires
the management to estimate the timing and amount of future taxable profit using large amounts of
judgment and to determine the recognized amount of deferred tax assets by referring to the tax
planning strategy.
Estimated liabilities
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Expected liabilities are initially measured at the optimal estimate required to perform the relevant
current obligation, in comprehensive consideration of the risks, uncertainty, time value of money,
and other factors pertinent to the Contingencies. The best estimate is determined by discounting the
relevant future cash outflow if the time value of money has a significant impact. At the balance sheet
date, the book value of the estimated liabilities is reviewed and adjusted by the Company to reflect
the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized provisions are expected to
be compensated by a third party or any other party, the amount of compensation shall be recognized
as assets separately only when it is basically sure that the amount can be obtained. The recognized
amount of compensation shall not exceed the book value of recognized liabilities.
(6) Right-of-use assets
① Recognition conditions of right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets within
the lease term.
At the commencement date of the lease term, the right-of-use assets are initially measured at cost.
This cost includes the initial measurement amount of lease liabilities, lease payments made on or
before the lease commencement date, from which any lease incentives enjoyed (if any) needed to be
deducted, initial direct costs incurred by the Company as a lessee, and the estimated costs expected
to be incurred by the Company as a lessee for dismantling and removing the leased asset, restoring
the leased asset's site, or restoring the leased asset to the contractual conditions as stipulated in the
lease agreement. The Company, as the lessee, recognizes and measures the cost of demolition and
restoration in accordance with the Accounting Standards for Business Enterprises No. 13 -
Contingencies. Subsequent adjustments are made for any remeasurement of the lease liabilities.
② Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company, as the lessee, can
reasonably confirm that it obtains the ownership of the leasing assets at the expiration of the lease
term, the depreciation shall be drawn within the remaining service life of the leasing assets. In case
of a failure to determine the ownership of the leased assets reasonably at the end of the lease period,
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the depreciation shall be drawn within the lease term or the remaining service life of leasing assets,
whichever is shorter.
③ For the impairment test methods and impairment provision methods of right-of-use assets, please
refer to 35 "Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X -
Financial Report.
(7) Asset impairment
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint
ventures, investment real estate subsequently measured by cost model, fixed assets, projects under
construction, right-of-use assets, intangible assets, etc. (except for inventories, deferred income tax
assets and financial assets) is recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If
such a sign exists, the Company estimates the recoverable amount and conducts the impairment test.
Impairment tests shall be carried out every year on goodwill resulting from business mergers,
intangible assets with uncertain service life and intangible assets that are not available no matter
whether there is any sign of impairment.
The recoverable amount is the net amount of the fair value of the assets after deducting the disposal
expenses or the present value of the expected future cash flow of the assets, whichever is higher. The
Company estimates the recoverable amount based on a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group shall be determined
based on the asset group to which the asset belongs. An asset group is determined based on the fact
that the main cash inflows generated by the asset group are independent of the cash inflows of other
assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company
writes down its book value to the recoverable amount, and the write-down amount is included in
current profits and losses, and the corresponding impairment provision of assets is made at the same
time.
For the impairment test of goodwill, the book value of goodwill resulting from business merger is
amortized to relevant asset groups with reasonable methods from the acquisition date, or amortized
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to relevant asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset
groups or portfolios of asset groups are those that can benefit from the synergies of business merger
and are not greater than the reporting segment determined by the Company.
If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill
during the impairment test, the impairment test shall be carried out on the asset group or portfolio of
asset groups not including goodwill, and the recoverable amount shall be calculated to determine the
corresponding impairment loss. Then, an impairment test is carried out on the asset group or
portfolio of asset groups including goodwill to compare its book value and recoverable amount, and
determine the impairment loss of goodwill if the recoverable amount is lower than the book value.
Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting
periods.
VI. Taxes
1. Main taxes and tax rates
Tax Category Tax Basis Tax Rate
Taxable value-added tax (the tax payable is
calculated by multiplying taxable sales by the
VAT 13%, 9%, 6%, 5%
applicable tax rate and then deducting input tax
allowed to be deducted for the current period)
Urban
maintenance and Turnover tax actually paid 7%, 5%
construction tax
Corporate
Taxable income 25%
income tax
Education
Turnover tax actually paid 3%
surcharges
Local
educational Turnover tax actually paid 2%
surcharges
CNY 9/m2, CNY 14/m2,
Land use tax Land use area
etc.
Property tax Property residual value and rental income 1.2%, 12%
Disclosure of different corporate income tax rates for taxable entities
Name of Taxpayer Income Tax Rate
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The Company 25%
Jiefang Limited 15%
Wuxi Dahao Power Co., Ltd. 25%
FAW Jiefang (Qingdao) Automotive Co., Ltd. 25%
FAW Jiefang Dalian Diesel Engine Co., Ltd. 15%
FAW Jiefang Austria R&D Co., Ltd. 24%
FAW Jiefang New Energy Automotive Sales
25%
Co., Ltd.
FAW Jiefang Uni-D (Tianjin) Technology
25%
Industry Co., Ltd.
2. Tax preference
(1) Income tax
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise, with a validity
period of three years and an income tax rate of 15% within the validity period according to the High-
tech Enterprise Certificate (issued on October 16, 2023, with a certificate number of
GR202322000922) jointly issued by the Science and Technology Department of Jilin Province, the
Department of Finance of Jilin Province and the Jilin Provincial Tax Service of State Taxation
Administration.
FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-
tech enterprise, with a validity period of three years and an income tax rate of 15% within the
validity period according to the list of the third batch of high-tech enterprises (with a certificate
number of GR202121200892) issued by Dalian on December 15, 2021.
(2) VAT
FAW Jiefang Automotive Co., Ltd. and FAW Jiefang Dalian Diesel Engine Co., Ltd. satisfy the
conditions for advanced manufacturing enterprises and are allowed to add 5% of the current
deductible input tax to offset the amount of VAT payable from January 1, 2023 according to the
Document No. 43 issued by the Ministry of Finance and the State Taxation Administration in 2023,
Announcement on VAT Additional Tax Credit Policy for Advanced Manufacturing Enterprises.
VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: CNY
274
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Item Ending Balance Opening Balance
Bank deposit 8,849,319,921.20 7,186,490,922.75
Other monetary capital 24,815,735.14 22,048,239.01
Deposit in finance companies 14,046,575,246.78 13,832,934,255.95
Total 22,920,710,903.12 21,041,473,417.71
Including: total amount
11,941,864.29 13,903,726.95
deposited abroad
Other notes: Details of restricted monetary capital are as follows:
Unit: CNY
Ending Balance of the
Item Ending Balance
previous year
Security deposit for three types of
27,839,503.40 27,077,797.58
personnel
Housing maintenance fund 22,103,193.44 22,048,239.01
Court freezing 725,230.81 1,541,946.79
Total 50,667,927.65 50,667,983.38
2 Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
Item Ending Balance Opening Balance
Commercial acceptance notes 44,626,048.13 186,748,716.22
Total 44,626,048.13 186,748,716.22
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(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending Balance Opening Balance
Provision for Bad Provision for Bad
Book Balance Book Balance
Debts Debts
Category
Provision Book Value Provision Book Value
Amount Scale Amount Proportio Amount Scale Amount Proportio
n n
Including
:
Notes
receivable
with
44,841,286.3 100.00 215,238.1 44,626,048.1 187,550,142.0 100.00 801,425.7 186,748,716.2
provision 0.48% 0.43%
0 % 7 3 0 % 8 2
for bad
debts by
portfolio
Including
:
Commercia
44,841,286.3 100.00 215,238.1 44,626,048.1 187,550,142.0 100.00 801,425.7 186,748,716.2
l acceptance 0.48% 0.43%
0 % 7 3 0 % 8 2
bill
44,841,286.3 100.00 215,238.1 44,626,048.1 187,550,142.0 100.00 801,425.7 186,748,716.2
Total 0.48% 0.43%
0 % 7 3 0 % 8 2
Provision for bad debts by portfolio: commercial acceptance bill
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Unit: CNY
Ending Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 44,841,286.30 215,238.17 0.48%
Total 44,841,286.30 215,238.17
Description of the basis for determining this portfolio:
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If the provision for bad debts of notes receivable is withdrawn based on the general model of
expected credit losses:
Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Expected
Expected credit
Expected credit loss in
loss for the
Provision for Bad Debts Credit Losses the duration Total
entire duration
for the Next 12 (credit
(with credit
Months impairment not
impairment)
occurred)
Balance as at January 01,
801,425.78 801,425.78
2023
Balance on January 1, 2023
in the current period
Provision in the Current
-586,187.61 -586,187.61
Period
Balance as at December 31,
215,238.17 215,238.17
2023
(3) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening Recovery Ending
Category
Balance Provision or Write-off Others Balance
Reversal
Commercial
801,425.78 -586,187.61 215,238.17
acceptance bill
Total 801,425.78 -586,187.61 215,238.17
Important provision for bad debts recovered or reversed in the current period:
□Applicable Not applicable
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3 Accounts receivable
(1) Disclosure by aging
Unit: CNY
Aging Ending Book Balance Beginning Book Balance
Within 1 year (including 1 year) 1,841,405,361.88 786,514,528.13
Including: 0-6 months 1,761,474,596.90 702,938,136.01
7-12 months 79,930,764.98 83,576,392.12
1-2 years 61,551,354.54 61,407,181.73
2-3 years 121,453,806.43 71,238,950.11
Over 3 years 137,477,637.42 93,337,325.53
3-4 years 44,736,900.00 767,457.17
4-5 years 454,999.94 58,697,500.75
Over 5 years 92,285,737.48 33,872,367.61
Total 2,161,888,160.27 1,012,497,985.50
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(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Category Provision Provision
Book Value Book Value
Amount Scale Amount Proportio Amount Scale Amount Proportio
n n
Account
s
receivabl
e with
provisio 89,811,549.2 82,039,650.6
89,811,549.22 4.15% 100.00% 82,039,650.69 8.10% 100.00%
n for bad 2 9
debts on
an
individu
al basis
Includin
g:
Account
s
2,072,076,611. 82,690,441.2 1,989,386,169. 63,367,996.3 867,090,338.
receivabl 95.85% 3.99% 930,458,334.81 91.90% 6.81%
05 8 77 9 42
e with
provisio
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n for bad
debts by
portfolio
Includin
g:
2,161,888,160. 100.00 172,501,990. 1,989,386,169. 1,012,497,985. 100.00 145,407,647. 867,090,338.
Total 7.98% 14.36%
27 % 50 77 50 % 08 42
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Provision for bad debts on an individual basis
Unit: CNY
Opening Balance Ending Balance
Reasons
Name Provision
Book Provision for Book Provision for for
Proportio
Balance Bad Debts Balance Bad Debts Provisio
n
n
It is
highly
Jiangsu
probable
Xinrui New
that the
Energy 37,612,001.7 37,612,001.7 37,612,001.7 37,612,001.7
100.00% amounts
Vehicle 0 0 0 0
will not
Technology
be
Co., Ltd.
recovere
d
It is
highly
Zhejiang probable
Hanglun that the
Ligang 8,581,536.83 8,581,536.83 8,581,536.83 8,581,536.83 100.00% amounts
Trading Co., will not
Ltd. be
recovere
d
It is
highly
Putian New probable
Energy that the
Automotive 8,156,900.00 8,156,900.00 100.00% amounts
(Shandong) will not
Co., Ltd. be
recovere
d
It is
highly
probable
Dalian that the
Qingfeng Bus 8,043,264.87 8,043,264.87 8,043,264.87 8,043,264.87 100.00% amounts
Co., Ltd. will not
be
recovere
d
It is
Beijing Hotan
highly
Automobile
7,436,520.00 7,436,520.00 7,436,520.00 7,436,520.00 100.00% probable
Modification
that the
Co., Ltd.
amounts
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will not
be
recovere
d
It is
highly
Changchun probable
Xiongtu New that the
Energy 6,230,500.00 6,230,500.00 6,230,500.00 6,230,500.00 100.00% amounts
Vehicle Co., will not
Ltd. be
recovere
d
It is
highly
Zhonghe
probable
Shunyang
that the
Supply Chain
5,643,600.00 5,643,600.00 5,643,600.00 5,643,600.00 100.00% amounts
Management
will not
(Jilin) Co.,
be
Ltd.
recovere
d
It is
highly
Shuozhou probable
Jinsheng that the
Automobile 1,822,961.43 1,822,961.43 1,822,961.43 1,822,961.43 100.00% amounts
Trading Co., will not
Ltd. be
recovere
d
It is
highly
probable
FAW Jingye that the
Engine Co., 1,820,957.23 1,820,957.23 1,820,957.23 1,820,957.23 100.00% amounts
Ltd. will not
be
recovere
d
It is
highly
probable
Xinjiang
that the
Jingyang
1,179,590.41 1,179,590.41 1,179,590.41 1,179,590.41 100.00% amounts
Optoelectroni
will not
c Co., Ltd.
be
recovere
d
Yulin Jiayu 971,012.59 971,012.59 971,012.59 971,012.59 100.00% It is
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Jiefang highly
Automobile probable
Sales Co., that the
Ltd. amounts
will not
be
recovere
d
It is
highly
probable
Shenyang
that the
Jinbei Vehicle
889,279.05 889,279.05 889,279.05 889,279.05 100.00% amounts
Manufacturin
will not
g Co., Ltd.
be
recovere
d
It is
highly
Dalian probable
Baofeng that the
Automobile 496,200.00 496,200.00 496,200.00 496,200.00 100.00% amounts
Sales Co., will not
Ltd. be
recovere
d
It is
highly
probable
Jilin Zhuzhan
that the
Automobile
848,566.00 848,566.00 484,400.00 484,400.00 100.00% amounts
Trading Co.,
will not
Ltd.
be
recovere
d
It is
highly
probable
Liangshan
that the
Huatai
349,190.00 349,190.00 349,190.00 349,190.00 100.00% amounts
Trading Co.,
will not
Ltd.
be
recovere
d
It is
Zhejiang
highly
Baoding
probable
Automobile 80,035.12 80,035.12 80,035.12 80,035.12 100.00%
that the
Sales Co.,
amounts
Ltd.
will not
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be
recovere
d
It is
highly
probable
Yancheng that the
Zhongwei 13,599.99 13,599.99 13,599.99 13,599.99 100.00% amounts
Bus Co., Ltd. will not
be
recovere
d
Qingdao
Chengyun
Yangguang
20,835.47 20,835.47
Automobile
Sales Services
Co., Ltd.
82,039,650.6 82,039,650.6 89,811,549.2 89,811,549.2
Total
9 9 2 2
Bad debt provision made as per portfolio:
Unit: CNY
Ending Balance
Name Provision for Bad
Book Balance Provision Proportion
Debts
Within 1 year 1,841,405,361.88 5,230,492.48 0.28%
1-2 years 61,551,354.54 6,481,451.04 10.53%
2-3 years 121,453,806.43 34,286,409.56 28.23%
3-4 years 36,580,000.00 25,606,000.00 70.00%
Over 4 years 11,086,088.20 11,086,088.20 100.00%
Total 2,072,076,611.05 82,690,441.28
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of
expected credit losses:
Applicable □Not applicable
Unit: CNY
285
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Stage I Stage II Stage III
Expected credit Expected credit
Expected
loss in the loss for the
Provision for Bad Debts Credit Losses Total
duration (credit entire duration
for the Next
impairment not (with credit
12 Months
occurred) impairment)
Balance as at January 01, 145,407,647.0
1,677,403.73 61,690,592.66 82,039,650.69
2023 8
Balance on January 1, 2023
in the current period
Provision in the Current
3,576,437.06 15,769,356.14 8,156,900.00 27,502,693.20
Period
Reversal in the Current
385,001.47 385,001.47
Period
Other changes 23,348.31 23,348.31
Balance as at December 31, 172,501,990.5
5,230,492.48 77,459,948.80 89,811,549.22
2023 0
The basis of stage division and the proportion of provision for bad debts are as follows: Provision for
bad debts is made by aging in the first and second stages, with a proportion of 0.28% for less than 1
year, 10.53% for 1 to 2 years, 28.23% for 2 to 3 years, 70.00% for 3 to 4 years, and 100% for more
than 4 years, and the proportion of provision in the third stage is 100%.
Description of significant changes in the book balance of accounts receivable with changes in
provision for loss in the current period: None
(3) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening
Category Recovery Write Ending Balance
Balance Provision Others
or Reversal -off
Accounts 145,407,647.0 27,502,693.2
385,001.47 23,348.31 172,501,990.50
receivabl 8 0
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e
145,407,647.0 27,502,693.2
Total 385,001.47 23,348.31 172,501,990.50
8 0
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Basis of determining the
Amount
Reason for Recovery proportion of provision for
Name of Unit Recovered or
reversal Method original bad debts and its
Reversed
rationality
Jilin Zhuzhan
Recovery of Bank Provision by individual
Automobile Trading 364,166.00
amounts due transfer item
Co., Ltd.
Qingdao Chengyun
Yangguang Recovery of Bank Provision by individual
20,835.47
Automobile Sales amounts due transfer item
Services Co., Ltd.
Total 385,001.47
(4) Other accounts receivable and contractual assets from the top five borrowers classified
based on the ending balance
Unit: CNY
Proportion Ending
in total balance of bad
ending debt provision
Ending Ending balance of
Ending Balance balance of for accounts
Name of balance of accounts
of Accounts accounts receivable and
Unit contractual receivable and
Receivable receivable impairment
assets contractual assets
and provision for
contractual contractual
assets assets
China FAW
Group
565,045,453.53 565,045,453.53 25.92% 1,438,890.29
Import &
Export Co.,
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Ltd.
FAW Harbin
Light
260,081,914.30 260,081,914.30 11.93% 261,998.72
Automobile
Co., Ltd.
Customer 1 240,552,000.00 240,552,000.00 11.03% 2,294,741.70
Jiefang
Times New
Energy 193,088,998.31 193,088,998.31 8.86% 743,368.60
Technology
Co., Ltd.
Customer 2 98,784,238.18 98,784,238.18 4.53% 474,164.34
Total 1,357,552,604.32 1,357,552,604.32 62.27% 5,213,163.65
4 Contract assets
(1) Contractual assets
Unit: CNY
Ending Balance Opening Balance
Provision Provision
Item Book
for Bad Book Value Book Balance for Bad Book Value
Balance
Debts Debts
Cont
ract 18,023,563.0
440,706.26 17,582,856.82 11,341,422.54 211,797.79 11,129,624.75
Asse 8
ts
18,023,563.0
Total 440,706.26 17,582,856.82 11,341,422.54 211,797.79 11,129,624.75
8
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(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending Balance Opening Balance
Provision for Bad Provision for Bad
Book Balance Book Balance
Category Debts Debts
Book Value Book Value
Provision Provision
Amount Scale Amount Amount Scale Amount
Proportion Proportion
Including
:
Provision
for bad
18,023,563.0 17,582,856.8 11,341,422.5 11,129,624.7
debts 100.00% 440,706.26 2.45% 100.00% 211,797.79 1.87%
8 2 4 5
made by
portfolio
18,023,563.0 17,582,856.8 11,341,422.5 11,129,624.7
Total 100.00% 440,706.26 2.45% 100.00% 211,797.79 1.87%
8 2 4 5
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Bad debt provision made as per portfolio:
Unit: CNY
Ending Balance
Name Provision for Bad
Book Balance Provision Proportion
Debts
Within 1 year 15,703,636.08 60,935.81 0.39%
1-2 years 1,939,927.00 250,988.45 12.94%
2-3 years 380,000.00 128,782.00 33.89%
Total 18,023,563.08 440,706.26
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provision for Expected Credit
in the duration (credit for the entire duration Total
Bad Debts Losses for the
impairment not (with credit
Next 12 Months
occurred) impairment)
Balance as at
34,255.92 177,541.87 211,797.79
January 01, 2023
Balance on
January 1, 2023
in the current
period
Provision in the
26,679.89 202,228.58 228,908.47
Current Period
Balance as at
December 31, 60,935.81 379,770.45 440,706.26
2023
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The basis of stage division and the proportion of provision for bad debts are as follows: Provision for
bad debts is made by aging in the first and second stages, with a proportion of 0.39% for less than 1
year, 12.94% for 1 to 2 years, and 33.89% for 2 to 3 years.
Description of significant changes in the book balance of contractual assets with changes in
provision for loss in the current period: None
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
Charge-
Recovery or
Provision in the off/Write-off in
Item reversal in the Reason
Current Period the Current
current period
Period
Impairment
Risks in payment
provision for 228,908.47
collection
contractual assets
Total 228,908.47 ——
5 Receivables financing
(1) Presentation of receivables financing by category
Unit: CNY
Item Ending Balance Opening Balance
Bank acceptance bill 4,878,126,972.73 3,461,653,473.66
Total 4,878,126,972.73 3,461,653,473.66
(2) Financing of receivables endorsed or discounted by the Company at the end of the period
and not yet due on the balance sheet date
Unit: CNY
Item Derecognized Amount at the Amount not Derecognized at
291
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End of the Period the End of the Period
Bank acceptance bill 24,010,032,428.34
Total 24,010,032,428.34
(3) Other notes
The Company classifies bank acceptance bills as financial assets measured at fair value and whose
changes are included in other comprehensive income and presents them as receivables financing
according to the needs of daily fund management.
The Company has no bank acceptance bills with the impairment provision by individual item. As of
December 31, 2023, the Company believes that the bank acceptance bills held have no material
credit risk and do not bring material losses as a result of a bank default.
The bank acceptance bills for discounting have a small risk of credit and deferred payment, and the
risk of the interest rate related to the bills has been transferred to the bank, so it can be judged that
the main risks and rewards of the bill ownership have been transferred, and the recognition is ended.
6 Other receivables
Unit: CNY
Item Ending Balance Opening Balance
Dividends receivable 2,608,000.00
Other receivables 1,309,376,221.57 1,065,846,162.91
Total 1,309,376,221.57 1,068,454,162.91
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
Item (or Investee) Ending Balance Opening Balance
FAW Changchun Ansteel Steel 2,608,000.00
292
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Processing and Distribution Co., Ltd.
Total 2,608,000.00
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending Book Balance Beginning Book Balance
Current account 1,191,301,022.21 915,540,688.63
Claim payment 192,151,504.78 197,953,339.79
Margin, deposit 41,422,562.20 38,966,301.99
Reserve fund 621,409.08 10,164,463.79
Total 1,425,496,498.27 1,162,624,794.20
2) Disclosure by aging
Unit: CNY
Aging Ending Book Balance Beginning Book Balance
Within 1 year (including 1
571,985,195.12 1,063,615,196.21
year)
Including: 0-6 months 556,407,667.28 1,062,285,764.54
7-12 months 15,577,527.84 1,329,431.67
1-2 years 764,590,667.17 1,441,092.04
2-3 years 1,331,719.31 4,041,713.73
Over 3 years 87,588,916.67 93,526,792.22
3-4 years 3,713,565.73 8,377,324.28
4-5 years 149,607.62 39,525,093.62
Over 5 years 83,725,743.32 45,624,374.32
Total 1,425,496,498.27 1,162,624,794.20
293
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3) Disclosure by the method of provision for bad debts
Applicable □Not applicable
Unit: CNY
Ending Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Categor Provisio Provisio
y n Book Value n Book Value
Amount Scale Amount Amount Scale Amount
Proportio Proportio
n n
Provisio
n for bad
debts 59,879,639.4 68,723,091.
59,879,639.41 4.20% 100.00% 68,723,091.34 5.91% 100.00%
made by 1 34
individu
al item
Includin
g:
Provisio
n for bad
1,365,616,858. 56,240,637.2 1,309,376,221. 1,093,901,702. 28,055,539. 1,065,846,162.
debts 95.80% 4.12% 94.09% 2.56%
86 9 57 86 95 91
made by
portfolio
Includin
g:
1,425,496,498. 100.00 116,120,276. 1,309,376,221. 1,162,624,794. 100.00 96,778,631. 1,065,846,162.
Total 8.15% 8.32%
27 % 70 57 20 % 29 91
294
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Provision for bad debts on an individual basis
Unit: CNY
Opening Balance Ending Balance
Reasons
Name Provision Provision Provision
Book Book for
for Bad for Bad Proportio
Balance Balance Provisio
Debts Debts n
n
It is
highly
probable
that the
Changchun 38,378,100. 38,378,100. 37,820,100. 37,820,100.
100.00% amounts
Finance Bureau 00 00 00 00
will not
be
recovere
d
It is
highly
probable
The People's
that the
Government of 20,500,000. 20,500,000. 20,500,000. 20,500,000.
100.00% amounts
Dalian 00 00 00 00
will not
Municipality
be
recovere
d
Qingdao
Automotive
Research 8,227,110.2 8,227,110.2
100.00%
Institute of 8 8
China FAW Co.,
Ltd
It is
highly
Wuxi Large probable
Cargo Port that the
Lifting and 542,293.00 542,293.00 542,293.00 542,293.00 100.00% amounts
Transportation will not
Co., Ltd. be
recovere
d
It is
highly
probable
FAW Jingye
that the
Automobile 199,194.30 199,194.30 199,194.30 199,194.30 100.00%
amounts
Co., Ltd.
will not
be
recovere
295
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
d
It is
highly
Beijing probable
Torchstar that the
Automation 198,000.00 198,000.00 198,000.00 198,000.00 100.00% amounts
Technology Co., will not
Ltd. be
recovere
d
It is
highly
Chongqing probable
Jinhua that the
Automobile 154,539.47 154,539.47 154,539.47 154,539.47 100.00% amounts
Brake will not
Corporation be
recovere
d
It is
highly
Nanjing Xinpu probable
Electromechani that the
cal Equipment 135,000.00 135,000.00 135,000.00 135,000.00 100.00% amounts
Manufacturing will not
Co., Ltd. be
recovere
d
It is
highly
probable
Hunan Changji
that the
Technology
119,600.00 119,600.00 119,600.00 119,600.00 100.00% amounts
Development
will not
Co., Ltd.
be
recovere
d
It is
highly
probable
that the
Others 269,254.29 269,254.29 210,912.64 210,912.64 100.00% amounts
will not
be
recovere
d
Total 68,723,091. 68,723,091. 59,879,639. 59,879,639.
34 34 41 41
Bad debt provision made as per portfolio:
296
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Unit: CNY
Ending Balance
Name Provision for Bad
Book Balance Provision Proportion
Debts
Aging portfolio 1,365,616,858.86 56,240,637.29 4.12%
Total 1,365,616,858.86 56,240,637.29
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Expected Credit Expected credit loss
Expected Credit Total
Bad Debts Losses over the for the entire
Losses for the
Entire Duration (no duration (with credit
Next 12 Months
Credit Impairment) impairment)
Balance as at
January 01, 3,002,964.74 25,052,575.21 68,723,091.34 96,778,631.29
2023
Balance on
January 1,
2023 in the
current period
-- Transfer to
-1,352,495.38 1,352,495.38
stage II
Provision in
the Current 11,290,818.64 16,894,278.70 28,185,097.34
Period
Reversal in
the Current 8,820,921.93 8,820,921.93
Period
Write-off in
the current 22,530.00 22,530.00
period
Balance as at
December 31, 12,941,288.00 43,299,349.29 59,879,639.41 116,120,276.70
2023
297
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Significant book balance changes occurred in the provision for losses in the current period
□Applicable Not applicable
4) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening
Category Recovery or Charge-off Othe Ending Balance
Balance Provision
Reversal or write-off rs
Other
96,778,631.29 28,185,097.34 8,820,921.93 22,530.00 116,120,276.70
receivables
Total 96,778,631.29 28,185,097.34 8,820,921.93 22,530.00 116,120,276.70
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Basis of
determining the
Amount Reason proportion of
Recovery
Name of Unit Recovered or for provision for
Method
Reversed reversal original bad
debts and its
rationality
It is highly
Qingdao Automotive Research
Bank probable that the
Institute of China FAW Co., 8,227,110.28 Recovered
deposit amounts will not
Ltd
be recovered
It is highly
Bank probable that the
Changchun Finance Bureau 558,000.00 Recovered
deposit amounts will not
be recovered
298
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It is highly
Bank probable that the
Triangle Tyre Co,. Ltd. 24,131.00 Recovered
deposit amounts will not
be recovered
Offset It is highly
Yangzhou Lianxin Machinery against the probable that the
11,680.65 Recovered
Manufacturing Co., Ltd. Company's amounts will not
payables be recovered
Total 8,820,921.93
(5) Other receivables written off in the current period
Unit: CNY
Item Amount Written off
Other receivables actually written off 22,530.00
Write-off of other important receivables:
Unit: CNY
Whether the
Nature of Write-off Payment
Amount Reason for
Name of Unit Other Procedures Arises from
Written off Write-off
receivables Performed Related
transactions
The
counterparty
General
Huai'an declared
Payment for manager's
Yongfeng Tire 22,530.00 bankruptcy No
goods meeting for
Co., Ltd. without
decisions
executable
property
Total 22,530.00
299
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Notes on write-off of other receivables:
6) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
Ending Balance
Name of Nature of Total Ending
Ending Balance Aging of Provision for
Unit Payment Balance of Other
Bad Debts
Receivables
Funds for
Customer land
660,862,800.00 1-2 years 46.36% 660,862.80
1 purchase
and reserve
Less than 1
New energy
Customer year or
vehicle sales 160,683,500.00 11.27% 50,850,396.20
2 more than
subsidies
5 years
Funds for
Customer land Within 1
146,634,578.00 10.29% 4,472,354.63
3 purchase year
and reserve
New energy
Customer
vehicle sales 49,557,522.13 1-2 years 3.48% 12,543,008.85
4
subsidies
Customer New energy
48,318,584.07 0-6 months 3.39% 1,473,716.81
5 subsidy
Total 1,066,056,984.20 74.79% 70,000,339.29
7. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
Ending Balance Opening Balance
Aging
Amount Scale Amount Scale
Within 1 year 438,665,956.06 63.60% 683,392,293.37 76.12%
1-2 years 155,704,502.78 22.58% 179,765,899.07 20.02%
300
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2-3 years 75,007,663.59 10.88% 17,802,947.31 1.98%
Over 3 years 20,242,975.23 2.94% 16,873,724.33 1.88%
Total 689,621,097.66 897,834,864.08
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
Proporti
on in
Book balance Total Reason for non-
Name of Debtor
(CNY) Advance settlement
Payment
(%)
China FAW Group Import & Export Co., Undue settlement
140,342,314.89 20.35
Ltd. period
Undue settlement
RiseSun MGL 44,887,053.39 6.51
period
Undue settlement
FAW Mold Manufacturing Co., Ltd. 9,872,745.36 1.43
period
Undue settlement
Zhongqi Jiaojian Group Co., Ltd. 9,100,600.00 1.32
period
Dalian Haosen Intelligent Manufacturing Undue settlement
5,200,000.00 0.75
Co., Ltd. period
Total 209,402,713.64 30.36 ——
(2) Top five ending balances of advance payments classified by advance payment objects
The advance payments with the top five ending balances classified by the prepaid parties in the
current period are CNY 411,005,632.12, accounting for 59.60% of the total ending balance of
advance payments.
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
301
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(1) Classification of inventories
Unit: CNY
Ending balance Opening Balance
Impairment Impairment
Provision of Provision of
Item Inventories or Inventories or
Book Balance Book Value Book Balance Book Value
Contract Contract
Performance Performance
Costs Costs
Raw
346,085,168.1 33,387,013.6 312,698,154.4 351,801,254.3 34,595,186.5 317,206,067.8
materi
5 6 9 8 3 5
al
Goods
in 449,087,779.3 14,783,370.8 434,304,408.5 564,240,295.0 560,498,987.7
3,741,307.32
proces 8 6 2 8 6
s
Goods
6,221,152,433. 178,277,353. 6,042,875,080. 3,281,304,875. 183,152,615. 3,098,152,259.
in
69 30 39 32 52 80
stock
Revol
ving
96,527,196.36 1,940,234.71 94,586,961.65 92,939,661.90 2,463,306.64 90,476,355.26
materi
al
Other 2,488,739,701. 162,232,949. 2,326,506,751. 2,509,560,166. 193,153,939. 2,316,406,227.
s 04 94 10 91 75 16
9,601,592,278. 390,620,922. 9,210,971,356. 6,799,846,253. 417,106,355. 6,382,739,897.
Total
62 47 15 59 76 83
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
302
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Increase in the Decrease in the Current
Opening Current Period Period Ending
Item
Balance Oth Reverse or Other Balance
Provision
ers Charge-off s
Raw
34,595,186.53 371,972.55 1,580,145.42 33,387,013.66
material
Goods in
3,741,307.32 12,506,479.15 1,464,415.61 14,783,370.86
process
Goods in 183,152,615.5 159,362,064.0 178,277,353.3
164,237,326.27
stock 2 5 0
Revolvin
g 2,463,306.64 523,071.93 1,940,234.71
material
193,153,939.7 162,232,949.9
Others 23,028,781.84 53,949,771.65
5 4
417,106,355.7 195,269,297.5 390,620,922.4
Total 221,754,730.88
6 9 7
9. Long-term receivables due within 1 year
Unit: CNY
Item Ending Balance Opening Balance
Long-term receivables due
222,664,624.89 191,262,030.30
within 1 year
Total 222,664,624.89 191,262,030.30
(1) Debt investments due within one year
□Applicable Not applicable
303
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(2) Other debt investments due within one year
□Applicable Not applicable
10. Other current assets
Unit: CNY
Item Ending balance Opening Balance
Input VAT 398,062,687.06 510,325,627.83
Input VAT to be certified 625,978,432.77 384,601,871.76
Prepaid income tax 8,048,695.40
Total 1,032,089,815.23 894,927,499.59
Other description: none
11 Investment in other equity instruments
Unit: CNY
Reason
for being
Cumulati Cumulati
designate
Gains Losses ve gains ve losses Divide
d as
included included included included nd
being
in other in other in other in other incom
Proje measured
compreh compreh compreh compreh e
ct Ending Opening at fair
ensive ensive ensive ensive recogn
Nam Balance Balance value and
incomes incomes incomes incomes ized in
e changes
in the in the at the end at the end the
included
current current of the of the current
in other
period period current current period
compreh
period period
ensive
incomes
REFI 480,780,0 480,780,0
RE 00.00 00.00
480,780,0 480,780,0
Total
00.00 00.00
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plans
to hold for a long time for strategic purposes, so the Company designates it as a financial asset
measured at fair value and whose changes are included in other comprehensive incomes.
304
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12. Long-term receivables
(1) Long-term receivables
Unit: CNY
Ending Balance Opening Balance
Discount
Item Provision for Bad Provision for
Book Balance Book Value Book Balance Book Value Rate Range
Debts Bad Debts
Sales of goods by
365,224,533.59 10,528,655.43 354,695,878.16 315,738,954.37 2,870,336.64 312,868,617.73
installment
Long-term receivables - - - -
-9,839,474.60 -2,315,388.57
due within 1 year 232,504,099.49 222,664,624.89 193,577,418.87 191,262,030.30
Total 132,720,434.10 689,180.83 132,031,253.27 122,161,535.50 554,948.07 121,606,587.43
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Category Provision Provision
Book Value Book Value
Amount Scale Amount Proportio Amount Scale Amount Proportio
n n
Including
:
305
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Provision
for bad
365,224,533.5 100.00 10,528,655.4 354,695,878.1 315,738,954.3 100.00 2,870,336.6 312,868,617.7
debts 2.88% 0.91%
9 % 3 6 7 % 4 3
made by
portfolio
Including
:
365,224,533.5 100.00 10,528,655.4 354,695,878.1 315,738,954.3 100.00 2,870,336.6 312,868,617.7
Total 2.88% 0.91%
9 % 3 6 7 % 4 3
Bad debt provision made as per portfolio:
Unit: CNY
Ending Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Long-term receivables 365,224,533.59 10,528,655.43 2.88%
Total 365,224,533.59 10,528,655.43
Description of the basis for determining this portfolio:
306
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Provision for bad debts based on the general model of expected credit losses
Unit: CNY
Stage I Stage II Stage III
Expected credit loss in Expected credit loss for
Provision for Bad Expected Credit
the duration (credit the entire duration Total
Debts Losses for the Next
impairment not (with credit
12 Months
occurred) impairment)
Balance as at
2,870,336.64
January 01, 2023
Balance on
January 1, 2023
in the current
period
Provision in the
7,658,318.79
Current Period
Balance as at
December 31, 10,528,655.43
2023
Basis for stage division and proportion of bad debt provision
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
Change in the Current Period
Opening Ending
Category Recovery Charge-off
Balance Provision Others Balance
or Reversal or write-off
Long-term
2,870,336.64 7,658,318.79 10,528,655.43
receivables
Total 2,870,336.64 7,658,318.79 10,528,655.43
13. Long-term equity investment
307
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Unit: CNY
Openin Increase/Decrease in the Current Period
Ending
g Investment Balance
Opening balance Gains or Adjustmen Cash Ending
Reduce Change Impairm of
Balance of Losses t to Other Dividends Balance
Investee Additional d s in ent Impairm
(Book impairm Recognize Comprehe and Profits Others (Book
Investment Investm Other Provisio ent
Value) ent d under the nsive Declared to Value)
ent Equity n Provisio
provisio Equity Income Pay n
n Method
I. Joint ventures
Jiefang
Times
New -
45,000,000 41,528,982.
Energy 3,471,017.
.00 67
Technol 33
ogy Co.,
Ltd.
-
45,000,000 41,528,982.
Subtotal 3,471,017.
.00 67
33
II. Associated enterprises
First
Automo
4,270,037,9 350,854,53 283,265,35 4,337,808,7
bile 181,610.33
69.59 0.91 2.38 58.45
Finance
Co., Ltd.
Changch
un 670,872,89 29,796,896 700,656,627
-13,167.00
Automot 7.94 .33 .27
ive Test
308
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Center
Co., Ltd.
Sanguar
d
Automo -
201,021,162 1,162,322. 4,835,877. 171,795,598
bile 25,552,008
.24 37 87 .71
Insuranc .03
e Co.,
Ltd.
FAW
Changch
un
Ansteel
-
Steel 87,066,229. 2,939,935. 1,640,000. 87,942,751.
423,413
Processi 18 88 00 83
.23
ng and
Distribut
ion Co.,
Ltd.
FAW
Changch
un
Baoyou
Jiefang
43,856,468. 6,500,530. 6,892,912. 43,464,086.
Steel
58 62 77 43
Processi
ng and
Distribut
ion Co.,
Ltd.
FAW 37,092,567. - 36,982,856.
339,936.08
Jiefang 41 449,647 24
309
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Fujie .25
(Tianjin)
Technol
ogy
Industry
Co., Ltd.
Foshan
Diyiyua
n New -
36,000,000. 33,214,745.
Energy 2,785,254.
00 08
Technol 92
ogy Co.,
Ltd.
Changch
un
Wabco
-
Automot 17,288,166. 16,197,563.
1,090,602.
ive 13 58
55
Control
System
Co., Ltd.
-
SmartLi 9,266,800.
286,072.71 9,552,872.
nk 00
71
Suzhou
Zhito
Technol
ogy Co.,
Ltd.
351,451,09 - -
4,692,648,6 680,139,69 1,330,765. 296,634,14 5,428,062,9
Subtotal 1.61 423,413 449,647
35.84 7.94 70 3.02 87.59
.23 .25
310
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347,980,07 - -
4,692,648,6 725,139,69 1,330,765. 296,634,14 5,469,591,9
Total 4.28 423,413 449,647
35.84 7.94 70 3.02 70.26
.23 .25
311
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The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the
impairment test or external information in the previous year: None
Reason for apparent discrepancies between the information used in the Company's impairment test of
the previous year and the actual situation in the current year: None
14 Investment properties
(1) Investment properties measured at cost
Applicable □Not applicable
Unit: CNY
Houses and Land use Project under
Item Total
Buildings right Construction
I. Original book value
1. Opening balance 145,745,882.84 7,364,400.94 153,110,283.78
2. Increase in the current
4,203,714.28 134,362.50 4,338,076.78
period
(1) Purchase
(2) Transfer from
inventories/fixed
4,203,714.28 134,362.50 4,338,076.78
assets/construction in
progress
(3) Increase due to business
combination
3. Decrease in the current
77,134,264.17 24,710.62 77,158,974.79
period
(1) Disposal 2,927,421.41 2,927,421.41
(2) Other transfer-out
(3) Reversal of intangible
24,710.62 24,710.62
assets
(4) Transferred to fixed
74,206,842.76 74,206,842.76
assets
4. Ending balance 72,815,332.95 7,474,052.82 80,289,385.77
312
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II. Accumulated depreciation
and accumulated
amortization
1. Opening balance 71,218,610.71 1,244,075.59 72,462,686.30
2. Increase in the current
8,802,717.85 162,017.35 8,964,735.20
period
(1) Provision or amortization 5,934,794.67 151,716.09 6,086,510.76
(2) Transfer-in of intangible
10,301.26 10,301.26
assets
(3) Transfer-in of fixed
2,867,923.18 2,867,923.18
assets
3. Decrease in the current
48,176,354.66 11,676.60 48,188,031.26
period
(1) Disposal 1,430,556.04 1,430,556.04
(2) Other transfer-out
(3) Reversal of intangible
11,676.60 11,676.60
assets
(4) Transferred to fixed
46,745,798.62 46,745,798.62
assets
4. Ending balance 31,844,973.90 1,394,416.34 33,239,390.24
III. Impairment provision
1. Opening balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 40,970,359.05 6,079,636.48 47,049,995.53
2. Beginning book value 74,527,272.13 6,120,325.35 80,647,597.48
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the
impairment test or external information in the previous year: None
313
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Reason for apparent discrepancies between the information used in the Company's impairment test of
the previous year and the actual situation in the current year: None
(2) Investment properties measured at fair value
□Applicable Not applicable
15. Fixed assets15. Fixed assets
Unit: CNY
Item Ending Balance Opening Balance
Fixed assets 11,372,570,486.81 9,604,636,127.53
Disposal of fixed assets 7,715,678.77 8,286,682.75
Total 11,380,286,165.58 9,612,922,810.28
(1) Details of fixed assets
Unit: CNY
314
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Houses and Machinery Transportation Electronic Office
Item Others Total
Buildings Equipment Equipment Equipment Equipment
I. Original book
value
1. Opening balance 5,725,009,716.16 15,656,156,281.82 163,214,691.23 662,116,184.02 60,661,288.33 1,331,905,071.36 23,599,063,232.92
2. Increase in the
878,397,801.60 2,589,928,596.28 13,083,054.49 80,085,124.91 7,011,481.27 89,196,790.93 3,657,702,849.48
current period
(1) Purchase 639,968.24 42,247,110.60 15,147,109.35 73,959.09 20,033,135.60 78,141,282.88
(2) Transfer from
construction in 803,550,990.60 2,547,681,485.68 13,083,054.49 64,609,269.07 6,937,522.18 50,873,773.07 3,486,736,095.09
progress
(3) Increase due to
business
combination
(4) Other increases 74,206,842.76 328,746.49 18,289,882.26 92,825,471.51
3. Decrease in the
295,635,117.11 337,218,586.32 10,091,707.76 19,935,570.80 4,288,751.73 45,344,683.28 712,514,417.00
current period
(1) Disposal or
149,204,619.96 287,004,494.29 9,783,654.76 19,935,570.80 4,121,995.09 44,738,691.15 514,789,026.05
retirement
(2) Other decreases 146,430,497.15 50,214,092.03 308,053.00 166,756.64 605,992.13 197,725,390.95
4. Ending balance 6,307,772,400.65 17,908,866,291.78 166,206,037.96 722,265,738.13 63,384,017.87 1,375,757,179.01 26,544,251,665.40
II. Accumulated
depreciation
1. Opening balance 2,311,008,528.82 9,948,863,333.22 116,715,194.87 483,841,486.87 44,160,940.50 1,059,255,698.93 13,963,845,183.21
2. Increase in the
333,059,711.11 1,110,379,571.35 17,840,014.96 103,959,743.58 4,335,860.61 117,970,335.75 1,687,545,237.36
current period
315
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(1) Provision 290,886,383.05 1,110,379,571.35 17,840,014.96 103,879,846.72 4,335,860.61 113,397,865.19 1,640,719,541.88
(2) Other increases 42,173,328.06 79,896.86 4,572,470.56 46,825,695.48
3. Decrease in the
159,134,951.72 266,215,486.42 9,330,910.01 19,873,121.82 3,905,513.57 46,534,126.01 504,994,109.55
current period
(1) Disposal or
90,186,225.06 238,743,884.62 9,330,910.01 19,873,121.82 3,897,191.27 46,311,563.25 408,342,896.03
retirement
(2) Other decreases 68,948,726.66 27,471,601.80 8,322.30 222,562.76 96,651,213.52
4. Ending balance 2,484,933,288.21 10,793,027,418.15 125,224,299.82 567,928,108.63 44,591,287.54 1,130,691,908.67 15,146,396,311.02
III. Impairment
provision
1. Opening balance 12,344.37 28,361,635.01 2,207,942.80 30,581,922.18
2. Increase in the
5,270,226.00 43,047.04 815,105.44 6,128,378.48
current period
(1) Provision 5,270,226.00 43,047.04 815,105.44 6,128,378.48
3. Decrease in the
11,343,136.93 82,296.16 11,425,433.09
current period
(1) Disposal or
11,343,136.93 82,296.16 11,425,433.09
retirement
4. Ending balance 12,344.37 22,288,724.08 43,047.04 2,940,752.08 25,284,867.57
IV. Book value
1. Ending book
3,822,826,768.07 7,093,550,149.55 40,981,738.14 154,337,629.50 18,749,683.29 242,124,518.26 11,372,570,486.81
value
2. Beginning book
3,413,988,842.97 5,678,931,313.59 46,499,496.36 178,274,697.15 16,500,347.83 270,441,429.63 9,604,636,127.53
value
316
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(2) Temporary idle fixed assets
Unit: CNY
Original book Accumulated Impairment
Item Book Value Remarks
value depreciation Provision
Machinery 156,621,801.1
167,855,198.00 2,534,067.63 8,699,329.25
equipment 2
Transportatio
1,114,399.95 1,073,633.27 40,766.68
n equipment
Electronic
964,301.14 951,911.86 12,239.28 150.00
equipment
Office
48,321.58 46,871.94 394.96 1,054.68
equipment
Others 16,060.00 15,578.20 481.80
158,709,796.3
Total 169,998,280.67 2,546,701.87 8,741,782.41
9
(3) Fixed assets without property ownership certificates
Unit: CNY
Reasons for failure to obtain the
Item Book Value
certificate
The property ownership certificate
will be applied for after the final
Guanghan base project 378,438,870.12
account audit upon completion of
the project
It is a new plant, and the
Project of exiting the city and
273,843,584.05 information is incomplete and
entering the industrial park
currently being processed.
The property ownership certificate
Equipment and plant project 72,844,318.59
has not yet been applied for
Total 725,126,772.76
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Other description: none
(4) Impairment testing of fixed assets
□Applicable Not applicable
(5) Disposal of fixed assets
Unit: CNY
Item Ending Balance Opening Balance
Houses and Buildings 44,864.97 283,806.99
Machinery equipment 5,776,946.67 7,759,672.33
Means of transport 125,020.45 113,084.68
Electronic equipment 12,316.70 77,126.05
Office equipment 132,249.55 45,702.70
Others 1,624,280.43 7,290.00
Total 7,715,678.77 8,286,682.75
Other description: none
16 Construction in progress
Unit: CNY
Item Ending Balance Opening Balance
Project under Construction 816,484,299.18 1,902,143,354.11
Total 816,484,299.18 1,902,143,354.11
318
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(1) Construction in progress
Unit: CNY
Ending Balance Opening Balance
Item Impairment Impairment
Book Balance Book Value Book Balance Book Value
Provision Provision
New and
reconstructed
109,030,761.94 1,945,416.12 107,085,345.82 230,889,214.48 1,945,416.12 228,943,798.36
investment
project
Technical
transformation
709,454,450.55 55,497.19 709,398,953.36 1,673,255,052.94 55,497.19 1,673,199,555.75
investment
project
Total 818,485,212.49 2,000,913.31 816,484,299.18 1,904,144,267.42 2,000,913.31 1,902,143,354.11
(2) Changes in important construction in progress in the current period
Unit: CNY
Project Opening Increase in Amount Other Ending Proportio Projec Cumulat Includin Capitaliza Capit
Budget
Name balance the Current transferred Decrea balance n of t ive g: tion rate al
319
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Period to fixed ses in accumula Progr amount Capitali of interest sourc
assets in the the ted ess of zed in current e
current Current investme capitaliz interest period
period Period nt in ed amount
constructi interest during
ons to the
budget current
period
Technical
transforma
tion
project of 898,000,000. 227,319,303. 232,307,22 47.90 Othe
7,939,826.14 2,951,908.86 26.20%
integrated 00 89 1.17 % rs
heavy duty
AMT
gearbox
R&D
capacity
improvem
ent project 639,844,440. 49,273,323.8 167,445,979. 216,719,30 47.70 Othe
33.87%
of FAW 00 5 50 3.35 % rs
Jiefang
Qingdao
Base
Axle base
constructio
n project
and heavy 989,859,950. 421,427,528. 268,808,556. 575,031,535. 115,204,55 67.22 Othe
67.22%
replaceme 93 84 88 48 0.24 % rs
nt axle
technology
upgrade
320
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(phase I)
FAW
Jiefang
south new 413,800,000. 41,677,157.0 10,264,756.3 48,893,985 48.35 Othe
3,047,927.57 48.35%
energy 00 8 9 .90 % rs
base
project
667,780,000. 102,315,208. 408,744,263. 477,229,461. 33,830,010 86.30 Othe
Project 3 76.53%
00 39 11 42 .08 % rs
Upgrading
project of
a single
first
vacuum
side 54,506,567.0 28,941,540.0 28,941,540 53.10 Othe
53.10%
stream of 0 0 .00 % rs
Axle
Factory of
Transmissi
on
Division
New
energy
product
introductio
79,820,000.0 20,357,026.8 35,199,589.2 45,234,492.1 10,322,123 69.60 Othe
n and 69.60%
0 3 2 6 .89 % rs
smart
logistics
upgrade
project
Engine 1,227,430,00 302,528,245. 237,226,067. 537,223,848. 2,530,463. 98.59 Othe
71.64%
power 0.00 34 57 98 93 % rs
321
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enhancem
ent project
FAW
Jiefang
commercia
999,970,000. 620,489,096. 274,701,414. 893,013,520. 2,176,991. 89.52 Othe
l vehicle 89.52%
00 96 87 68 15 % rs
Guanghan
base
project
Thin plate
stamping
capacity
198,000,000. 85,791,504.9 80,379,715.1 165,493,148. 83.92 Othe
expansion 678,071.28 83.58%
00 6 8 86 % rs
project of
Jimo
factory
6,169,010,95 1,651,798,91 1,739,031,18 2,699,225,84 691,604,26
Total
7.93 8.39 6.61 4.01 0.99
322
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(3) Impairment testing of projects under construction
□Applicable Not applicable
17 Right-of-use assets
(1) Right-of-use assets
Unit: CNY
Houses and Machinery
Item Land Total
Buildings equipment
I. Original book value
1. Opening balance 203,880,616.59 54,778,761.06 23,719,044.14 282,378,421.79
2. Increase in the
1,030,358.64 1,030,358.64
current period
Lease-in 1,030,358.64 1,030,358.64
3. Decrease in the
31,063,939.34 6,458,400.85 37,522,340.19
current period
(1) Lease expiration 31,063,939.34 31,063,939.34
(2) Other decreases 6,458,400.85 6,458,400.85
4. Ending balance 173,847,035.89 54,778,761.06 17,260,643.29 245,886,440.24
II. Accumulated
depreciation
1. Opening balance 71,135,818.41 13,022,260.79 84,158,079.20
2. Increase in the
44,352,856.31 10,955,752.21 4,284,095.64 59,592,704.16
current period
(1) Provision 44,352,856.31 10,955,752.21 4,284,095.64 59,592,704.16
3. Decrease in the
31,063,939.34 5,790,290.48 36,854,229.82
current period
(1) Disposal
(1) Lease expiration 31,063,939.34 31,063,939.34
(2) Other decreases 5,790,290.48 5,790,290.48
4. Ending balance 84,424,735.38 10,955,752.21 11,516,065.95 106,896,553.54
III. Impairment
provision
1. Opening balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
323
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(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 89,422,300.51 43,823,008.85 5,744,577.34 138,989,886.70
2. Beginning book
132,744,798.18 54,778,761.06 10,696,783.35 198,220,342.59
value
18. Intangible assets
(1) Details of intangible assets
Unit: CNY
Non-patented
Item Land use right Patent rights Total
technology
I. Original book
value
1. Opening balance 2,638,198,126.04 607,046,360.09 367,511,725.92 3,612,756,212.05
2. Increase in the 100,197,021.70 140,201,607.38 240,423,339.70
24,710.62
current period
(1) Purchase 74,400,773.05 74,400,773.05
(2) Internal R&D 4,738,321.49 8,093,047.87 12,831,369.36
(3) Increase due to
business combination
(4) Other increases 24,710.62 21,057,927.16 132,108,559.51 153,191,197.29
3. Decrease in the 43,927,477.44 142,049,300.02 185,976,777.46
current period
(1) Disposal 42,710,875.82 7,179,133.67 49,890,009.49
(2) Invalid and
2,761,606.84 2,761,606.84
derecognized portion
(3) Other decreases 1,216,601.62 132,108,559.51 133,325,161.13
4. Ending balance 2,594,295,359.22 565,194,081.77 507,713,333.30 3,667,202,774.29
II. Accumulated
amortization
1. Opening balance 553,533,325.53 206,764,960.99 303,361,007.48 1,063,659,294.00
2. Increase in the 56,323,022.78 107,811,934.93 34,639,828.98 198,774,786.69
current period
(1) Provision 56,311,346.18 107,633,120.95 23,889,537.23 187,834,004.36
(2) Other increases 11,676.60 178,813.98 10,750,291.75 10,940,782.33
3. Decrease in the 13,072,874.59 20,592,212.46 33,665,087.05
current period
(1) Disposal 11,858,124.00 7,080,313.87 18,938,437.87
324
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(2) Invalid and
2,761,606.84 2,761,606.84
derecognized portion
(3) Other decreases 1,214,750.59 10,750,291.75 11,965,042.34
4. Ending balance 596,783,473.72 293,984,683.46 338,000,836.46 1,228,768,993.64
III. Impairment
provision
1. Opening balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 1,997,511,885.50 271,209,398.31 169,712,496.84 2,438,433,780.65
2. Beginning book
2,084,664,800.51 400,281,399.10 64,150,718.44 2,549,096,918.05
value
The intangible assets not resulting from internal research and development of the Company accounts
for 0.35% of the balance of intangible assets at the end of the current period.
(2) Impairment testing of intangible assets
□Applicable Not applicable
19 Long-term deferred expenses
Unit: CNY
Increase in Amortization
Opening Other Ending
Item the Current amount in the
balance decreases balance
Period current period
Maintenance,
fire protection
transformatio
130,439.66 130,439.66
n and
supporting
expenses
325
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Total 130,439.66 130,439.66
Other description: none
20 Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
Ending balance Opening balance
Deductible Deductible
Item Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Impairment
677,552,365.56 118,050,995.83 633,651,664.00 111,898,550.65
provision of assets
Unrealized profits
of internal 173,759,629.21 43,439,907.30 11,827,733.38 2,956,933.35
transactions
Deductible losses 8,023,847,062.56 1,401,699,212.71 5,145,166,718.01 927,446,279.03
Estimated
643,639,504.01 105,676,319.80 794,067,908.68 132,797,620.71
liabilities
Employee
compensation 89,862,914.88 15,035,569.66 118,991,183.21 20,016,363.56
payable
Accrued expenses 2,823,814,796.43 668,864,711.49 3,175,125,774.27 742,710,859.21
Deferred income 498,058,268.35 105,908,875.92 538,046,593.82 108,889,119.49
Contract liabilities 477,559,638.17 73,059,220.04 539,407,507.24 84,634,179.21
Lease liabilities 59,027,119.45 12,975,866.73 92,700,901.72 19,643,880.89
Total 13,467,121,298.62 2,544,710,679.48 11,048,985,984.33 2,150,993,786.10
326
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(2) Deferred income tax liabilities not offset
Unit: CNY
Ending balance Opening balance
Taxable Taxable
Item Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Depreciation of
fixed assets with
amortization
1,905,769,976.37 344,383,021.84 2,206,140,811.13 386,257,051.99
period longer
than tax
preference period
Accrued interest
386,198,421.88 58,128,494.37 293,135,708.15 44,112,815.94
income
Right-of-use
57,431,098.06 12,560,241.88 93,026,784.76 19,672,212.64
assets
Total 2,349,399,496.31 415,071,758.09 2,592,303,304.04 450,042,080.57
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Ending Mutual Ending balance Opening mutual Opening balance
Offset Amount of of deferred tax offset amount of of deferred tax
Item Deferred Tax assets or deferred tax assets or
Assets and liabilities after assets and liabilities after
Liabilities offset liabilities offset
Deferred income
2,544,710,679.48 2,150,993,786.10
tax assets
Deferred income
415,071,758.09 450,042,080.57
tax liabilities
327
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(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Ending balance Opening balance
Deductible temporary
577,137,993.79 619,818,965.27
difference
Deductible losses 433,079,936.50 429,045,708.22
Total 1,010,217,930.29 1,048,864,673.49
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Ending amount Beginning balance Remarks
2026 1,441,940.00 1,441,940.00
2027 3,524,136.57 3,524,136.57
2028 201,247,514.48 197,213,286.20
2029 28,041,132.70 28,041,132.70
2032 198,825,212.75 198,825,212.75
Total 433,079,936.50 429,045,708.22
Other description: none
21 Assets with restricted ownership or use right
Unit: CNY
Ending Beginning
Restr Rest
Rest
Item ictio ricti Restricti
Book balance Book Value ricti Book balance Book Value
n on on
on
type type
Monetar 50,667,927.6 50,667,983.3 Housing
50,667,927.65 50,667,983.38
y capital 5 8 maintena
328
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nce fund,
security
deposit
for three
types of
personne
l and
frozen
funds
50,667,927.6 50,667,983.3
Total 50,667,927.65 50,667,983.38
5 8
Other description: none
22 Notes payable
Unit: CNY
Category Ending balance Opening balance
Bank acceptance bill 11,769,864,678.11 9,198,593,038.03
Total 11,769,864,678.11 9,198,593,038.03
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
23. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
Item Ending balance Opening balance
Payment for goods 15,746,874,454.72 9,297,168,020.86
Project and equipment
71,355,989.71 11,953,792.66
payment
Expenses and others 677,340,998.02 724,486,854.54
329
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Total 16,495,571,442.45 10,033,608,668.06
(2) Significant accounts payable with aging over one year or overdue
Unit: CNY
Reasons for not being repaid
Item Ending balance
or carried over
Beijing SinoHytec Co., Ltd. 73,244,235.95 Undue settlement period
Tangshan Qianchen New
28,659,999.04 Undue settlement period
Energy Development Co., Ltd.
Jiangsu Tianmu Construction
3,041,335.60 No acceptance
Group Co., Ltd.
Jiangsu Liance
Electromechanical Technology 2,699,000.00 No acceptance
Co., Ltd.
At the legal adjudication stage,
Jilin Shihao Logistics Co., Ltd. 2,169,554.34 accounts are frozen and
payments are stopped
Total 109,814,124.93
Other description: none
24. Other payables
Unit: CNY
Item Ending balance Opening balance
Dividends payable 171,500.02 171,500.02
Other payables 5,304,885,545.16 6,095,281,248.15
Total 5,305,057,045.18 6,095,452,748.17
330
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(1) Dividends payable
Unit: CNY
Item Ending balance Opening balance
Ordinary stock dividends 171,500.02 171,500.02
Total 171,500.02 171,500.02
Other notes, including the disclosure of the reasons for not paying the significant dividends payable
for more than 1 year: None
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
Item Ending balance Opening balance
Expenses payable 3,421,359,290.16 3,371,722,694.19
Margin, deposit 310,785,014.96 311,219,645.69
Project funds payable 1,296,325,132.82 1,524,956,021.50
Repurchase obligations of
86,131,497.27 267,837,184.11
restricted shares
Current accounts payable and
190,284,609.95 619,545,702.66
others
Total 5,304,885,545.16 6,095,281,248.15
2) Other significant payables with aging over 1 year or overdue
Unit: CNY
Reasons for not being
Item Ending balance
repaid or carried over
Eisenmann (Shanghai) Co., Ltd. 15,722,294.45 Project not completed
Chongqing Sino-German Smart 6,934,929.70 Project not completed
331
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Factory Solutions Co., Ltd.
Anhui HangDa Intelligent
6,686,939.00 Project not completed
Technology Co., Ltd.
Hefei Metalforming Intelligent
5,584,000.00 Project not completed
Manufacturing Co., Ltd.
SCIVIC Engineering Corporation 5,263,200.00 Project not completed
Total 40,191,363.15
3) Other payables of top five counterparties classified based on the ending balance
The other payables with the top five ending balances classified by the other payable parties in the
current period are CNY 418,658,290.40, accounting for 7.89% of the total ending balance of other
payables.
25. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
Item Ending balance Opening balance
Rental fee 641,221.46 1,861,865.37
Total 641,221.46 1,861,865.37
26. Contract liabilities
Unit: CNY
Item Ending balance Opening balance
Payment for goods 1,863,445,370.73 1,155,321,169.46
Others 555,703,269.04 607,787,793.96
Contract liabilities included in
-214,456,037.00 -133,584,259.07
other current liabilities
Total 2,204,692,602.77 1,629,524,704.35
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27. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
I. Short-term
273,674,313.00 4,636,492,681.51 4,613,442,548.51 296,724,446.00
compensation
II. Post-
employment
62,829,341.18 593,969,874.87 640,514,666.65 16,284,549.40
benefits - defined
contribution plan
III. Dismissal
46,184,524.58 53,920,936.95 61,684,571.73 38,420,889.80
welfare
IV. Other benefits
due within one 53,960,000.00 57,482,173.91 60,832,173.92 50,609,999.99
year
Total 436,648,178.76 5,341,865,667.24 5,376,473,960.81 402,039,885.19
(2) Presentation of short-term compensation
Unit: CNY
Opening Increase in the Decrease in the
Item Ending balance
balance Current Period Current Period
1. Wages, bonuses,
allowances and 3,316,146,420.15 3,316,146,420.15
subsidies
2. Employee welfare
216,947,971.17 216,947,971.17
expenses
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3. Social insurance
5,214,934.60 334,953,880.49 336,241,502.56 3,927,312.53
premiums
Including: medical
3,961,154.86 313,535,630.04 313,569,472.37 3,927,312.53
insurance premiums
Work-related injury
1,253,779.74 16,558,475.67 17,812,255.41
insurance premiums
Maternity insurance
4,859,774.78 4,859,774.78
premium
4. Housing provident
884.00 464,408,428.48 464,409,312.48
fund
5. Labor union funds
268,458,494.4
and employee 117,526,901.11 93,188,262.04 292,797,133.47
0
education funds
6. Other short-term
186,509,080.11 186,509,080.11
compensated absence
273,674,313.0
Total 4,636,492,681.51 4,613,442,548.51 296,724,446.00
0
(3) Presentation of defined contribution plan
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
1. Basic
endowment 49,474,178.04 416,800,791.86 452,365,357.71 13,909,612.19
insurance
2.
Unemployment
3,838,010.94 17,184,129.89 18,647,203.62 2,374,937.21
insurance
premiums
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3. Payment of
enterprise 9,517,152.20 159,984,953.12 169,502,105.32
annuity
Total 62,829,341.18 593,969,874.87 640,514,666.65 16,284,549.40
Other description: none
28. Taxes payable
Unit: CNY
Item Ending balance Opening balance
VAT 33,868,153.98 142,544,438.56
Corporate income tax 12,652,169.68 73,697,911.27
Individual income tax 44,332,949.39 45,190,640.96
Urban maintenance and
1,563,765.87 8,789,299.91
construction tax
Property tax 12,070,417.66 7,910,979.72
Land use tax 4,302,440.45 4,512,474.49
Education surcharges 3,588,461.26 8,830,240.70
Other taxes 16,844,015.03 9,735,859.90
Total 129,222,373.32 301,211,845.51
Other description: none
29. Non-current liabilities due within one year
Unit: CNY
Item Ending balance Opening balance
Lease liabilities due within
27,171,195.40 32,998,374.87
one year
Total 27,171,195.40 32,998,374.87
Other description: none
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30. Other current liabilities
Unit: CNY
Item Ending balance Opening balance
Taxes to be written off 214,456,037.00 133,584,259.07
Total 214,456,037.00 133,584,259.07
31. Lease liabilities
Unit: CNY
Item Ending balance Opening balance
Lease payment 61,122,271.61 94,353,447.57
Unrecognized financing
-3,457,062.08 -6,540,469.64
charges
Lease liabilities due within
-27,171,195.40 -32,998,374.87
one year
Total 30,494,014.13 54,814,603.06
Other notes: The interest of lease liabilities accrued in 2023 is CNY 3,063,600.
32. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
Item Ending balance Opening balance
I. Post-employment welfare -
net liabilities of defined 667,280,000.00 694,320,000.00
benefit plan
II. Dismissal welfare 94,708,523.04 112,469,743.86
Long-term employee
compensation payable due -89,030,889.79 -99,478,853.43
within one year
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Total 672,957,633.25 707,310,890.43
33. Estimated liabilities
Unit: CNY
Item Ending balance Opening balance Reason
Product quality
Pending litigation 7,321,618.04 32,195,157.32
disputes
Expenses for return,
Product quality
711,161,690.70 826,046,651.49 replacement and
assurance
repair
Others 17,226,995.29 17,226,995.29 Labor social security
Total 735,710,304.03 875,468,804.10
Other description, including important assumptions and estimation descriptions related to important
estimated liabilities:
34. Deferred income
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance Reason
Current Period Current Period
Governm
173,629,410.2 311,936,728.6
ent 3,121,985,685.93 2,983,678,367.53
2 2
subsidies
173,629,410.2 311,936,728.6
Total 3,121,985,685.93 2,983,678,367.53 --
2 2
Other description: none
35. Share capital
Unit: CNY
Opening balance Increase/Decrease (+/-) Ending balance
337
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Share
Transf
Issu
Bo erred
e of
nus from
New Others Subtotal
sha Accu
Shar
res mulati
es
on
Fund
Total
shar 4,651,965,655.00 -15,479,987.00 -15,479,987.00 4,636,485,668.00
es
Other notes: The share capital is decreased by CNY 15,479,987.00 in the current period, which is
caused by the repurchase and cancellation of restricted shares of the Company. For details, refer to
III "Company Profile" of Section X - Financial Report.
36. Capital reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Capital premium
9,373,398,263.61 50,594,181.86 82,470,046.45 9,341,522,399.02
(stock premium)
Other capital reserves 1,077,689,973.13 75,793,420.42 1,001,896,552.71
10,343,418,951.7
Total 10,451,088,236.74 50,594,181.86 158,263,466.87
3
Other description, including increase/decrease in the current period and reasons for change:
(1) The capital reserve (share premium) is increased by CNY 50,594,181.86 in the current period,
which is caused by the unlocking of restricted shares in the Company's equity incentive plan.
(2) The capital reserve (share premium) is decreased by CNY 82,470,046.45 in the current period,
which is caused by the repurchase and cancellation of the Company's equity incentive plan.
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(3) The capital reserve (other capital reserves) is decreased by CNY 75,793,420.42. The decrease of
CNY 50,594,181.86 is caused by the unlocking of restricted shares in the Company's equity
incentive plan, the decrease of CNY 24,775,825.33 by the repurchase of restricted shares due to the
non-achievement of performance appraisal objectives set for the second restriction releasing period
firstly granted and the first restriction releasing period reserved in the phase I restricted share
incentive plan, and the decrease of CNY 423,413.23 by the recognition of changes in other owner's
equity of the investee in proportion to its equity, other than net profit or loss, other comprehensive
income and profit distribution.
37 Treasury shares
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Treasury shares 267,837,184.11 181,705,686.84 86,131,497.27
Total 267,837,184.11 181,705,686.84 86,131,497.27
Other description, including increase/decrease in the current period and reasons for change:
(1) The treasury share is decreased by CNY 97,950,033.45 in the current period, which is caused by
the repurchase and cancellation recognized by the Company in the equity incentive plan.
(2) The treasury share is decreased by CNY 83,755,653.39 in the current period, which is caused by
the repurchase of restricted shares due to the non-achievement of performance appraisal objectives
set for the second restriction releasing period firstly granted and the first restriction releasing period
reserved in the phase I restricted share incentive plan.
38 Other comprehensive incomes
Unit: CNY
Amount Incurred in Current Period
Amo Less: Less: After-tax After-tax
Less:
Opening unt Current Current amount amount Ending
Item incom
balance incurr Profits or Retained attributab attributa balance
e tax
ed Losses Earnings le to ble to
expen
befor Transferre Transferre parent minority
ses
e d from d from company sharehol
339
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inco Other Other ders
me Comprehe Comprehe
tax in nsive nsive
the Income Income
curre Recorded Recorded
nt in the in the
perio Previous Previous
d Period Period
I. Other
comprehen
sive
incomes
- - -
that cannot
4,024,77 4,710,58 8,735,36
be
7.80 8.55 6.35
reclassifie
d into
profits or
losses
Including:
changes
arising
from re- - - -
measurem 4,040,00 5,170,00 9,210,00
ent of the 0.00 0.00 0.00
defined
benefit
plan
Other
comprehen
sive
incomes
that cannot
be 15,222.2 459,411. 474,633.
reclassifie 0 45 65
d into
profit or
loss under
the equity
method
II. Other
comprehen
sive
incomes
-
that will 1,595,59 221,256.
1,374,34
be 9.26 25
3.01
reclassifie
d into
profits or
losses
340
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Including:
other
comprehen
sive
incomes
that can be -
871,354. 375,337.
reclassifie 496,016.
25 28
d into 97
profits or
losses
under the
equity
method
Trans
lation
difference - -
724,245.
in foreign 878,326. 154,081.
01
currency 04 03
financial
statements
Total other
- - -
comprehen
5,399,12 3,114,98 8,514,11
sive
0.81 9.29 0.10
incomes
Other description, including the adjustment of the effective part of cash flow hedging profit or loss
transferred to the initially recognized amount of the hedged item:
39 Special reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Work safety cost 370,420,291.86 37,672,287.45 88,778,051.46 319,314,527.85
Total 370,420,291.86 37,672,287.45 88,778,051.46 319,314,527.85
Other description, including increase/decrease in the current period and reasons for change:
40 Surplus reserves
Unit: CNY
Item Opening balance Increase in the Decrease in the Ending balance
341
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Current Period Current Period
Statutory surplus
2,760,723,110.73 32,158,714.43 2,792,881,825.16
reserve
Discretionary
297,526,491.71 297,526,491.71
surplus reserves
Total 3,058,249,602.44 32,158,714.43 3,090,408,316.87
Explanation of surplus reserve, including changes in increase and decrease in the current period, and
reasons for changes: According to the provisions of the Company Law and the Articles of
Association, the Company withdraws the statutory surplus reserve at 10% of the net profit. If the
accumulated amount of statutory surplus reserve is more than 50% of the registered capital of the
Company, it may not be withdrawn any more.
41 Undistributed profits
Unit: CNY
Item Current period Previous period
Undistributed profits at the end of the
5,460,939,601.36 8,434,403,352.08
previous period before adjustment
Total amount of opening undistributed profit
-28,331.75 273,000.03
adjusted ("+" for increase, "-" for decrease)
Undistributed profits at the beginning of the
5,460,911,269.61 8,434,676,352.11
current period after adjustment
Add: net profit attributable to owners of
763,024,957.14 367,444,113.56
parent company in the current period
Less: withdrawal of statutory surplus reserve 32,158,714.43 316,034,697.61
Common stock dividends payable 3,025,174,498.45
Undistributed profits at the end of the period 6,191,777,512.32 5,460,911,269.61
Details of adjustment to undistributed profits at the beginning of period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant
342
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new regulations impacts the opening undistributed profit by CNY 0.00.
2) The changes in accounting policies impact the opening undistributed profit by CNY -28,331.75.
3) The correction of major accounting errors impacts the opening undistributed profit by CNY 0.00.
4) The change in combination scope caused by the same control impacts the opening undistributed
profit by CNY 0.00.
5) Other adjustments affect the opening undistributed profit by CNY 0.00 in total.
42 Operating income and operating cost
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main 61,967,850,165.9
57,133,830,184.15 36,242,318,100.83 33,608,683,181.19
business 5
Other
1,936,682,311.08 1,495,805,527.40 2,089,428,983.05 1,643,487,705.34
business
63,904,532,477.0
Total 58,629,635,711.55 38,331,747,083.88 35,252,170,886.53
3
Whether the audited lower net profit before and after the deduction of non-recurring profit or loss is
negative
Yes □No
Unit: CNY
Specific Specific
Item Current Year Previous Year
Deductions Deductions
Sales revenue Sales revenue
of complete of complete
vehicles, parts vehicles, parts
and and
Amount of operating
63,904,532,477.03 components, 38,331,747,083.88 components,
income
materials, and materials, and
purchased purchased
semi-finished semi-finished
products, etc. products, etc.
Total amount of 11,310,091.46 Rental income 30,729,859.27 Rental income
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operating income for the current and entrusted
deduction items period, rental operating
income and income
entrusted
operating
income for the
previous period
Proportion of total
amount of operating
income deduction 0.02% 0.08%
items in operating
income
I. Business income
irrelevant to main
business
1. Other business
income other than
normal operation.
Income from leasing
of fixed assets,
intangible assets,
packaging materials,
sales of materials,
exchange of non-
Rental income
monetary assets with
and entrusted
materials, operation 11,310,091.46 Rental income 30,729,859.27
operating
of trusteeship
income
management
business, etc., and
income that is
included in the main
business income but
belongs to income
other than the normal
operation of listed
companies.
Rental income
Subtotal of business
and entrusted
income irrelevant to 11,310,091.46 Rental income 30,729,859.27
operating
main business
income
II. Income without
commercial substance
Subtotal of income
without commercial 0.00 N/A 0.00 N/A
substance
III. Other incomes
irrelevant to main 0.00 N/A 0.00 N/A
business or without
344
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commercial substance
Deduct the
Amount of operating rental income
Deducting the
income after 63,893,222,385.57 38,301,017,224.61 and entrusted
rental income
deduction operating
income
Information related to the transaction price apportioned to the remaining performance obligation: At
the end of the reporting period, the income corresponding to the performance obligations that have
been signed but have not been performed or fulfilled is CNY 555,703,269.04, of which CNY
555,703,269.04 is expected to be recognized in 2024.
43 Taxes and surcharges
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Urban maintenance and
55,161,168.21 47,145,522.88
construction tax
Education surcharges 36,481,730.95 33,829,961.36
Property tax 70,287,308.66 46,965,136.96
Land use tax 35,743,310.23 36,781,212.64
Vehicle and vessel use tax 153,731.13 142,115.38
Stamp duty 62,802,256.11 40,861,476.54
Environmental protection tax 284,890.41 624,447.37
Others 1,254,700.00 1,448,295.47
Total 262,169,095.70 207,798,168.60
Other description: none
44 Administrative expenses
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
345
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Employee compensation 1,157,311,260.41 1,301,448,789.79
Repair cost of fixed assets 224,243,903.80 211,593,916.90
Depreciation cost 134,769,137.70 121,826,644.98
Amortization of intangible
89,058,627.23 89,587,242.31
assets
Information system service fee 44,974,632.15 57,041,277.43
Labor outsourcing fee 43,425,300.04 59,607,050.45
Kinetic energy and workshop
30,230,843.03 27,302,410.38
heating cost
Rental fee 29,006,964.88 18,459,511.78
Travel expense 24,573,092.55 9,765,368.99
Sewage charge 24,116,561.43 19,168,854.12
Test and inspection fee 16,225,280.86 15,517,955.33
Publicity fee 14,480,896.95 17,836,870.27
Environmental improvement
13,230,455.08 11,838,305.85
fee
Amortization of low value
9,810,114.81 25,465,015.78
consumables
Security deposit for the
7,933,560.44 8,575,779.84
disabled
Office expenses 7,141,007.61 7,352,183.57
Property insurance 6,167,238.74 6,560,789.79
Authentication fee 4,222,384.21 6,494,147.27
Others 50,358,215.72 24,897,239.79
Total 1,931,279,477.64 2,040,339,354.62
Other description: none
45 Sales expenses
Unit: CNY
Item Amount Incurred in Current Amount Incurred in the
346
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Period Previous Period
Employee compensation 538,874,991.03 484,204,274.83
Product quality assurance fee 572,738,063.59 317,822,200.89
Storage fee 121,382,744.57 115,093,555.63
Packing cost 98,493,329.64 72,593,424.84
Travel expense 91,651,756.85 74,320,500.71
Rental fee 41,481,137.84 50,722,637.92
Business publicity fee 33,684,506.07 44,003,511.80
Sales service fee 24,268,028.17 35,005,162.00
Advertising expenses 19,189,345.23 19,878,977.32
Promotion fee 9,754,960.71 19,429,048.84
Consultation expenses 6,454,232.79 5,241,472.53
Exhibition fees 5,510,100.63 542,242.96
Depreciation cost 5,187,005.62 5,710,292.12
Customer training fee 2,255,558.39 1,938,138.40
Insurance premium 2,067,679.11 4,668,488.93
Office expenses 1,920,969.19 1,886,628.35
Business entertainment
1,196,812.68 1,442,401.26
expenses
Others 29,384,011.87 1,379,262.31
Total 1,605,495,233.98 1,255,882,221.64
Other description: none
46 R&D expenses
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Labor cost 1,636,551,834.14 1,583,140,010.50
Material cost 466,540,598.59 398,861,686.79
Test fee 316,626,655.94 306,593,980.19
347
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Depreciation amortization
254,417,232.35 229,336,754.97
expense
Water, electricity and gas
84,675,033.97 54,383,428.21
charges
Technical development cost 58,499,726.43 144,758,268.44
Others 164,946,797.74 178,580,968.63
Total 2,982,257,879.16 2,895,655,097.73
Other description: none
47 Financial expenses
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Interest expense 3,801,492.51 5,602,156.49
Interest income -768,570,466.66 -949,854,588.85
Exchange gain or loss 7,140.40 -245,058.21
Cash discount -173,364,601.86 -131,070,726.61
Net actuarial interest 22,534,650.42 22,530,846.13
Fees and other charges 201,922.62 436,557.88
Total -915,389,862.57 -1,052,600,813.17
Other description: none
48 Other income
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Sources of other income
Period Previous Period
Government subsidies 546,340,041.28 1,635,846,930.83
Service charges of individual 2,021,584.31 2,213,208.37
income tax withholding
348
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Additional tax credit of VAT 64,529,919.18
Total 612,891,544.77 1,638,060,139.20
49. Investment income
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Income from long-term equity
investments accounted for 347,980,074.28 346,588,767.31
using the equity method
Others -65,651,226.20 -109,670,548.80
Total 282,328,848.08 236,918,218.51
Other description: none
50 Credit impairment loss
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Bad debt losses of notes
586,187.61 -729,878.89
receivable
Bad debt losses of accounts
-27,117,691.73 4,879,276.36
receivable
Bad debt losses of other
-19,364,175.41 -1,635,328.06
receivables
Bad debt losses of long-term
-7,658,318.79 -1,594,912.32
receivables
Total -53,553,998.32 919,157.09
Other description: none
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51 Asset impairment loss
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
I. Inventory falling price loss
and contract performance cost -195,269,297.59 -418,448,406.89
impairment loss
II. Loss from fixed assets
-6,128,378.48 -10,230,753.57
impairment
III. Loss from contractual asset
-228,908.47 4,390,582.21
impairment
Total -201,626,584.54 -424,288,578.25
Other description: none
52 Income from assets disposal
Unit: CNY
Sources of income from assets Amount Incurred in Current Amount Incurred in the
disposal Period Previous Period
Gains from disposal of fixed
8,227,813.84 118,681,219.23
assets
Gains from disposal of
184,441,684.84 752,349,888.83
intangible assets
Total 192,669,498.68 871,031,108.06
53. Non-operating income
Unit: CNY
Amount included in
Amount Incurred in Amount Incurred in
Item current non-
Current Period the Previous Period
recurring profits and
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losses
Unpayable amount 110,679,101.87 135,470,008.26
110,679,101.87
recognized
Income from 25,287,277.01 14,867,839.76
compensation,
25,287,277.01
liquidated damages and
penalties
Gains from damage and 891,307.00 1,172,055.53
retirement of non- 891,307.00
current assets
Others 60,980,082.35 2,487,290.88 60,980,082.35
Total 197,837,768.23 153,997,194.43 197,837,768.23
Other description: none
54. Non-operating expenses
Unit: CNY
Amount included in
Amount Incurred in Amount Incurred in current non-
Item
Current Period the Previous Period recurring profits and
losses
Donation 12,050,000.00 19,050,000.00 12,050,000.00
Losses from damage
and retirement of non- 4,685,419.26 3,340,608.37 4,685,419.26
current assets
Expenditure of
liquidated damages and 7,432,783.52 4,057,445.84 7,432,783.52
penalties
Others 295,117.99 119,683.80 295,117.99
Total 24,463,320.77 26,567,738.01 24,463,320.77
Other description: none
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55 Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Current income tax expenses 80,830,956.42 239,694,863.79
Deferred income tax expense -428,687,215.86 -424,567,308.39
Total -347,856,259.44 -184,872,444.60
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred in Current Period
Total profits 415,168,697.70
Income tax expense calculated at
103,792,174.43
statutory/applicable tax rate
Effect of different tax rates applied to subsidiaries -9,358,155.34
Effect of adjustment to income tax of previous
-9,037,550.37
periods
Effect of non-taxable income -613,904.59
Effect of non-deductible costs, expenses and
25,193,214.47
losses
Profit or loss of joint ventures and associated
-83,798,418.78
enterprises calculated by equity method
Tax effect of R&D expenses plus deduction (to be
-379,834,777.17
listed with "-")
Tax effect of unrecognized deductible losses and
7,413,887.82
deductible temporary difference
Others -1,612,729.91
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Income tax expenses -347,856,259.44
Other description: none
56 Other comprehensive incomes
See 38 in Note VII.
57 Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Bank interest 661,686,448.23
Collection and payment 591,395,448.15 399,036,119.74
Government subsidies
494,635,558.37 1,869,848,621.04
received
Deposits received 25,639,855.20 1,912,903.41
Rental fee received 20,310,385.96 36,296,614.49
Fines and indemnities received 6,771,123.26 7,810,168.36
Recovery of reserve funds 3,864,873.02 2,240,229.10
Refund of handling fees 788,831.31 1,523,773.84
Other current accounts 64,048,829.44 35,681,869.82
Total 1,869,141,352.94 2,354,350,299.80
Description of other cash received related to operating activities: None
Other cash paid related to operating activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
353
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Out-of-pocket expenses 1,286,692,773.25 992,021,968.62
Current account 414,443,028.61 483,929,928.94
Donations 12,050,000.00 18,750,000.00
Total 1,713,185,801.86 1,494,701,897.56
Description of other cash paid related to operating activities: None
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Interest received 798,551,894.65
Total 798,551,894.65
Description of other cash received related to investing activities: None
Other cash paid related to investing activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Cash attached to the invested
17,676,304.33
business
Total 17,676,304.33
Description of other cash paid related to investing activities: None
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
354
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Amount paid to repay lease
22,968,693.24 55,183,852.56
liabilities
Total 22,968,693.24 55,183,852.56
Description of other cash paid related to financing activities: None
Changes in liabilities arising from financing activities
□Applicable Not applicable
58 Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
Amount in the Current Amount of the
Supplementary information
Period Previous Period
1. Reconciliation of net profit to cash flows from
operating activities
Net Profit 763,024,957.14 367,444,113.56
Add: impairment provision of assets 255,180,582.86 423,369,421.16
Depreciation of fixed assets, depletion of
1,646,806,052.64 1,529,451,202.97
oil and gas assets and productive biological assets
Depreciation of right-of-use asset 59,592,704.16 52,841,739.81
Amortization of intangible assets 187,834,004.36 172,902,609.68
Amortization of long-term deferred
130,439.66 204,158.64
expenses
Losses from disposal of fixed assets,
intangible assets and other long-term assets -192,669,498.68 -871,031,108.06
(incomes to be listed with "-")
Loss from retirement of fixed assets
4,685,419.26 2,168,552.84
(incomes to be listed with “-”)
Loss from changes in fair value (incomes
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to be listed with “-”)
Financial expenses (incomes to be listed
-383,675,996.41 -944,252,432.36
with “-”)
Investment losses (incomes to be listed
-448,976,452.61 -346,588,767.31
with “-”)
Decrease of deferred income tax assets
-393,716,893.38 -474,454,233.54
(increase to be listed with "-")
Increases of deferred income tax liabilities
-34,970,322.48 49,886,925.15
(decrease to be listed with “-”)
Decrease in inventories (increase to be
-3,023,500,755.91 2,466,932,226.53
listed with "-")
Decrease in operating receivables (increase
-1,777,558,924.80 2,956,699,661.76
to be listed with "-")
Increase in operating items payable
7,728,945,488.12 -11,224,753,054.89
(decrease to be listed with “-”)
Others -189,413,082.41 703,935,014.71
Net cash flows from operating activities 4,201,717,721.52 -5,135,243,969.35
2. Major investment and financing activities not
related to cash deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets acquired under financial lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 22,483,844,553.59 20,697,669,726.18
Less: opening balance of cash 20,697,669,726.18 30,542,676,891.89
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
356
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Net increase in cash and cash equivalents 1,786,174,827.41 -9,845,007,165.71
(2) Composition of cash and cash equivalents
Unit: CNY
Item Ending balance Opening balance
I. Cash 22,483,844,553.59 20,697,669,726.18
Bank deposits readily
22,483,844,553.59 20,697,669,726.18
available for payment
II. Ending balance of cash and
22,483,844,553.59 20,697,669,726.18
cash equivalents
59 Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Ending Balance
Item Balance at the End of Exchange rate
Converted into CNY
the Period
Monetary capital
Including: USD
EUR 1,519,475.81 7.8592 11,941,864.29
HKD
Accounts receivable
Including: USD
EUR
HKD
Long-term loans
Including: USD
357
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EUR
HKD
Other description: none
(2) Description of overseas operating entities, including the disclosure of main overseas
business place, recording currency and selection basis, or changes in the recording currency (if
any) for important overseas operating entities.
Applicable □Not applicable
The main business place of FAW Jiefang Austria R&D Co., Ltd., a subsidiary of the Company, is
Steyr, Austria, with a registered capital of EUR 2 million and a recording currency of EUR.
60. Lease
(1) The Company acting as the lessee
Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable Not applicable
Lease expenses for simplified short-term leases or low-value asset leases
Applicable □Not applicable
The Company simplifies the short-term lease and low-value asset lease, and does not recognize the
right-of-use assets and lease liabilities. The short-term lease, low-value assets and variable lease
payments not included in the lease liabilities measurement are included in the expenses in the current
period as follows:
Amount Incurred in Current
Item
Period
Short-term lease expense 25,207,735.42
Low-value asset lease expense
358
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Amount Incurred in Current
Item
Period
Variable lease payments not included in the measurement of lease
liabilities
Total 25,207,735.42
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable Not applicable
Financing lease with the Company acting as the lessor
□Applicable Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable Not applicable
VIII. R&D Expenditures
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Including: Expensed R&D
2,982,257,879.16 2,895,655,097.73
expenditure
Capitalized R&D
122,705,199.95
expenditure
1. R&D projects eligible for capitalization
Unit: CNY
Increase in the Decrease in the Current
Opening Ending
Item Current Period Period
balance balance
Internal Oth Recognized as Transf
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development ers intangible erred
expenditures assets to
curren
t
profits
and
losses
A2205 5,393,345.15 5,393,345.15
A2206 12,831,369.36 12,831,369.36 -
A2207 9,870,532.29 9,870,532.29
A2208 12,756,268.51 12,756,268.51
A2209 26,396,041.18 26,396,041.18
A2305 12,547,492.73 12,547,492.73
A2306 16,094,984.19 16,094,984.19
A2307 2,723,108.10 2,723,108.10
A2308 12,945,847.92 12,945,847.92
T2208 8,944,559.08 8,944,559.08
T2209 2,201,651.44 2,201,651.44
122,705,199.9 109,873,830.5
Total 12,831,369.36
5 9
Significant capitalized R&D projects
Expected
Expected generation Time point of Specific basis
Item R&D progress completion method of capitalization for capitalization
time economic starting starting
benefits
June 30, January 31, Being adopted
A round of reliability 2026 2023 by consideration
validation/production Production and decision-
A2207
approval for and sales making at the
launching/TR4A stage project review
meeting
A round of reliability June 30, January 31, Being adopted
validation/production 2026 Production 2023 by consideration
A2208
approval for and sales and decision-
launching/TR4A stage making at the
360
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project review
meeting
June 30, January 31, Being adopted
A round of reliability 2026 2023 by consideration
validation/production Production and decision-
A2205
approval for and sales making at the
launching/TR4A stage project review
meeting
June 30, January 31, Being adopted
2026 2023 by consideration
Production and decision-
A2206 Completed
and sales making at the
project review
meeting
May 31, January 31, Being adopted
Completion of bench
2024 2023 by consideration
validation, and the
Production and decision-
A2209 launch of complete
and sales making at the
vehicle validation and
project review
trial production
meeting
March 31, March 31, Being adopted
2026 2023 by consideration
A-prototype Production and decision-
A2308
development stage and sales making at the
project review
meeting
December March 31, Being adopted
31, 2024 2023 by consideration
A-prototype Production and decision-
A2306
development stage and sales making at the
project review
meeting
February March 31, Being adopted
28, 2026 2023 by consideration
A-prototype Production and decision-
A2307
development stage and sales making at the
project review
meeting
February March 31, Being adopted
28, 2026 2023 by consideration
A-prototype Production and decision-
A2305
development stage and sales making at the
project review
meeting
March 31, January 31, Being adopted
Closing of design 2026 2023 by consideration
scheme completed, trial Production and decision-
T2208
production of A- and sales making at the
prototype under the way project review
meeting
361
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December January 31, Being adopted
B-axle review 31, 2024 2023 by consideration
completed, B-axle Production and decision-
T2209
development under the and sales making at the
way project review
meeting
IX. Changes in Consolidation Scope
1. Changes in consolidation scope for other reasons
A change in consolidation scope for other reasons (establishment of new subsidiaries, liquidation of
subsidiaries, etc.) and its related information are detailed below: A new subsidiary, FAW Jiefang
Younida (Tianjin) Technology Co., Ltd., was added within the consolidation scope in the current
period, which was incorporated and wholly owned by the Company on April 14, 2023, with the
registered capital of CNY 90 million, registered address: Room 202, Office Section of Inspection
Warehouse, No. 6262 Aozhou Road, Tianjin Free Trade Pilot Zone (Dongjiang Comprehensive
Bonded Port Area) (Tianjin Dongjiang Business Secretary Service Co., Ltd. Free Trade Zone Branch,
Trusteeship No. 8279), and unified social credit code: 91120118MACFM74D3H.
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: CNY
Share
Name of Principal proportion
Registered Registere Nature of Way of
subsidiar business
Capital d address business Indire acquisition
y place Direct
ct
Business
Vehicle merger
Jiefang 10,803,012,510 Changch Changch 100.00
manufacturi under
Limited .01 un un %
ng common
control
FAW Business
Jiefang Vehicle merger
100.00
(Qingdao 802,000,000.00 Qingdao Qingdao manufacturi under
%
) ng and sales common
Automoti control
362
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ve Co.,
Ltd.
FAW
Business
Jiefang Automotive
merger
Dalian 1,400,000,000. engine 100.00
Dalian Dalian under
Diesel 00 manufacturi %
common
Engine ng
control
Co., Ltd.
Manufacturi
Business
Wuxi ng of
merger
Dahao automotive 100.00
38,094,059.61 Wuxi Wuxi under
Power components %
common
Co., Ltd. and
control
accessories
FAW Business
Technology
Jiefang merger
research and 100.00
Austria 15,765,000.00 Austria Austria under
developmen %
R&D common
t
Co., Ltd. control
FAW
Jiefang
New Establishm
Changch Changch Vehicle 100.00
Energy 200,000,000 ent by
un un sales %
Automoti investment
ve Sales
Co., Ltd.
FAW
Jiefang
Uni-D Technical
Establishm
(Tianjin) services and 100.00
90,000,000.00 Tianjin Tianjin ent by
Technolo other %
investment
gy services
Industry
Co., Ltd.
Description of the fact that the shareholding proportion in subsidiaries is different from the
proportion of voting rights: none
Basis for holding half or less of the voting rights but still controlling the investee, and for holding
more than half of the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: none
Basis for determining whether the Company is an agent or a principal: none
Other description: none
363
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2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
Share proportion Accounting
Treatment
Name of
Method for
Joint Principal
Registered Nature of Investment in
Ventures or business
address business Direct Indirect Joint
Associated place
Ventures or
Enterprises
Associated
Enterprises
First
Automobile Financial Equity
Changchun Changchun 21.84%
Finance Co., services method
Ltd.
Sanguard
Automobile Financial Equity
Changchun Changchun 17.50%
Insurance insurance method
Co., Ltd.
FAW
Changchun
Ansteel Steel
Industrial Equity
Processing Changchun Changchun 40.00%
manufacturing method
and
Distribution
Co., Ltd.
FAW
Changchun
Baoyou
Jiefang Steel Industrial Equity
Changchun Changchun 21.81%
Processing manufacturing method
and
Distribution
Co., Ltd.
Changchun
Wabco Manufacturing
Automotive of automotive Equity
Changchun Changchun 40.00%
Control components and method
System Co., accessories
Ltd.
Suzhou Zhito Research and
Equity
Technology Suzhou Suzhou experimental 25.68%
method
Co., Ltd. development
FAW Jiefang
Software and
Fujie
information Equity
(Tianjin) Tianjin Tianjin 10.00%
technology method
Technology
services
Industry Co.,
364
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Ltd.
Software and
information Equity
SmartLink Nanjing Nanjing 35.00%
technology method
services
Foshan
Diyiyuan Manufacturing
Equity
New Energy Foshan Foshan and technical 45.00%
method
Technology services
Co., Ltd.
Changchun
Automotive Technical Equity
Changchun Changchun 14.63%
Test Center services method
Co., Ltd.
Jiefang Times
Technical
New Energy Equity
Shijiazhuang Shijiazhuang services and 50.00%
Technology method
other services
Co., Ltd.
Diyi AESC
Engineering and
New Energy
technology
Power Equity
Wuxi Wuxi research and 49.00%
Technology method
experiment
(Wuxi) Co.,
development
Ltd.
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is
different from the proportion of voting rights: there is no difference between the shareholding
proportion and the proportion of voting rights.
Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or
more of voting rights but without significant influence: The Company holds 17.50% of the shares of
Sanguard Automobile Insurance Co., Ltd., but it sends one director to the latter according to the
Articles of Association of the latter, so the Company can exert significant influence on Sanguard
Automobile Insurance Co., Ltd. The Company holds 10.00% of the shares of Jiefang Fujie (Tianjin)
Technology Industry Co., Ltd., but it sends three directors to the latter according to the Articles of
Association of the latter, so the Company can exert significant influence on Jiefang Fujie (Tianjin)
Technology Industry Co., Ltd. The Company holds 14.63% of the shares of Changchun Automotive
Test Center Co., Ltd., but it sends one director to the latter according to the Articles of Association of
the latter, so the Company can exert significant influence on Changchun Automotive Test Center Co.,
Ltd.
365
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(2) Main financial information of important joint ventures
Unit: CNY
Ending Balance/Amount Opening Balance/Amount
Incurred in Current Period Incurred in Previous Period
Jiefang Times New Energy
Technology Co., Ltd.
Current assets 106,516,730.29
Including: Cash and cash
equivalents
Non-current assets 180,155,847.21
Total assets 286,672,577.50
Current liabilities 225,396.83
Non-current liabilities 203,389,215.33
Total liabilities 203,614,612.16
Minority equity
Equity attributable to
shareholders of the parent 83,057,965.34
company
Shares of net assets calculated
as per the shareholding 41,528,982.67
proportion
Adjustments
--Goodwill
--Unrealized profits from
internal transactions
--Others
Book value of equity
41,528,982.67
investment to joint ventures
The fair value of equity
investment in joint ventures
with a public offer
Operating Income 23,610,012.53
Financial expenses -786,426.54
Income tax expenses 283.87
Net Profit -6,942,034.66
Net profit from discontinued
operations
Other comprehensive incomes
Total comprehensive income -6,942,034.66
Dividends received from joint
366
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ventures in the current year
Other notes: None of the ratios of ending balance/amount incurred in the current period in the above
table have been audited.
367
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(3) Main financial information on important associated enterprises
Unit: CNY
Ending Balance/Amount Incurred in Current Period
FAW
FAW
Changchun FAW
Changchu Changchun
Baoyou Jiefang Foshan
First Sanguard n Ansteel Wabco Suzhou Changchun
Jiefang Fujie Diyiyuan
Automobile Automobile Steel Automotive Zhito Automotive
Steel (Tianjin) SmartLink New Energy
Finance Co., Insurance Processing Control Technology Test Center
Processing Technology Technology
Ltd. Co., Ltd. and System Co., Co., Ltd. Co., Ltd.
and Industry Co., Ltd.
Distributio Ltd.
Distribution Co., Ltd.
n Co., Ltd.
Co., Ltd.
Current 60,775,261,6 1,702,254,2 269,973,5 34,757,850. 357,052,308 435,005,995 2,019,060,2 175,926,690 74,360,794. 1,905,889,1
assets 87.53 32.36 15.28 89 .05 .30 50.13 .46 55 44.98
Non-
113,266,395, 876,220,650 61,635,14 24,179,782. 49,442,981. 86,241,055. 845,687,497 183,160,633 1,980,391.8 1,778,261,3
current
863.62 .46 0.40 51 99 85 .81 .97 5 65.48
assets
174,041,657, 2,578,474,8 331,608,6 58,937,633. 406,495,290 521,247,051 2,864,747,7 359,087,324 76,341,186. 3,684,150,5
Total
551.15 82.82 55.68 40 .04 .15 47.94 .43 40 10.46
368
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assets
Current 152,572,057, 409,136,482 111,751,7 18,443,724. 205,065,072 127,443,900 2,188,704,6 286,751,551 2,530,641.7 148,517,574
liabilities 589.80 .45 76.05 53 .99 .05 66.79 .15 8 .12
Non-
373,433,560. 1,187,649,2 2,108,533.0 905,831,430 301,718,046 90,779,279. 123,521,374
current
68 64.86 6 .48 .26 56 .14
liabilities
Total 152,945,491, 1,596,785,7 111,751,7 18,443,724. 207,173,606 1,033,275,3 2,490,422,7 377,530,830 2,530,641.7 272,038,948
liabilities 150.48 47.31 76.05 53 .05 30.53 13.05 .71 8 .26
21,096,166,4 981,689,135 219,856,8 40,493,908. 199,321,683 - 374,325,034 - 73,810,544. 3,412,111,5
Net
00.67 .51 79.63 87 .99 512,028,279 .89 18,443,506. 62 62.20
Assets
.38 28
-
Minority 1,212,589,18 448,669,357
1,056,387.1
Equity 9.69 .62
8
Equity
attributa - -
19,883,577,2 981,689,135 219,856,8 40,493,908. 199,321,683 374,325,034 73,810,544. 2,963,442,2
ble to 512,028,279 17,387,119.
10.98 .51 79.63 87 .99 .89 62 04.58
sharehol .38 10
ders of
369
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the
parent
company
Shares of
net assets
calculate
d as per - -
4,342,434,07 171,795,598 87,942,75 16,197,563. 43,464,086. 37,432,503. 33,214,745. 433,551,594
the 131,488,862 6,085,491.6
7.83 .71 1.83 58 43 49 08 .53
sharehol .14 8
ding
proportio
n
Adjustm 131,488,862 6,085,491.6 267,105,032
-4,625,319.38 -449,647.25
ents .14 8 .74
--
Goodwill
--
Unrealiz -449,647.25
ed profits
370
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from
internal
transacti
ons
131,488,862 6,085,491.6 267,105,032
--Others -4,625,319.38
.14 8 .74
Book
value of
equity
investme
4,337,808,75 171,795,598 87,942,75 16,197,563. 43,464,086. 36,982,856. 33,214,745. 700,656,627
nt in
8.45 .71 1.83 58 43 24 08 .27
associate
d
enterpris
es
Fair
value of
equity
investme
nt in
371
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associate
d
enterpris
es with
public
offer
Operatin 6,654,359,85 847,730,093 628,235,8 58,341,332. 1,648,271,0 146,454,823 3,084,484,5 419,681,174 669,737,782
g Income 8.29 .47 51.66 83 59.88 .25 99.82 .18 .82
- - - -
Net 1,786,293,11 7,349,839. 29,810,742. 23,691,687. 1,271,971.8 220,843,105
145,922,318 2,726,506.3 237,673,409 6,189,455.3
Profit 9.83 74 99 78 1 .36
.21 7 .93 8
Net
profit
from
discontin
ued
operation
s
Other 830,716.24 6,641,842.0 -90,000.00
372
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compreh 9
ensive
incomes
Total
- - - -
compreh 1,787,123,83 7,349,839. 29,810,742. 23,691,687. 1,271,971.8 220,753,105
139,280,476 2,726,506.3 237,673,409 6,189,455.3
ensive 6.07 74 99 78 1 .36
.12 7 .93 8
income
Dividend
s
received
from
associate 283,265,352. 4,835,877.8 1,640,000. 6,892,912.7
d 38 7 00 7
enterpris
es in the
current
year
Other notes: None of the ratios of ending balance/amount incurred in the current period in the above table have been audited.
Opening Balance/Amount Incurred in Previous Period
SmartLink FAW Jiefang Suzhou Zhito FAW Changchun FAW Sanguard First Automobile
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Fujie (Tianjin) Technology Changchun Wabco Changchun Automobile Finance Co., Ltd.
Technology Co., Ltd. Baoyou Jiefang Automotive Ansteel Steel Insurance Co.,
Industry Co., Steel Control Processing Ltd.
Ltd. Processing and System Co., and
Distribution Ltd. Distribution
Co., Ltd. Co., Ltd.
157,591,221.8 638,977,641.3 19,053,367.4 231,520,871.5 2,172,822,754.8
Current assets 931,332,176.60 427,768,781.91 34,615,907,095.53
6 4 5 0 7
Non-current 27,097,843.5 107,957,446,335.8
7,744,508.63 293,708,044.88 64,737,895.14 62,831,909.92 66,900,185.87 732,633,048.50
assets 5 3
165,335,730.4 1,225,040,221.4 703,715,536.4 46,151,211.0 298,421,057.3 2,905,455,803.3 142,573,353,431.3
Total assets 490,600,691.83
9 8 8 0 7 7 6
Current 164,518,379.9 346,619,144.0 120,256,125,824.0
672,380,337.39 286,304,062.71 2,930,795.76 80,755,484.41 510,326,378.57
liabilities 0 5 2
Non-current 633,398,618.3 1,246,437,069.1
181,734,209.97 3,175,522.27 1,561,324,948.51
liabilities 5 2
Total 164,518,379.9 980,017,762.4 1,756,763,447.6 121,817,450,772.5
854,114,547.36 289,479,584.98 2,930,795.76 80,755,484.41
liabilities 0 0 9 3
817,350.59 370,925,674.12 - 201,121,106.85 43,220,415.2 217,665,572.9 1,148,692,355.6 20,755,902,658.83
Net Assets 276,302,225.9 4 6 8
2
Minority
1,182,641,203.70
equity
Equity
attributable to -
43,220,415.2 217,665,572.9 1,148,692,355.6
shareholders 817,350.59 370,925,674.12 276,302,225.9 201,121,106.85 19,573,261,455.13
4 6 8
of the parent 2
company
Shares of net - 17,288,166.1
286,072.71 37,092,567.41 43,856,468.58 87,066,229.18 201,021,162.24 4,274,663,288.97
assets 74,380,559.22 3
374
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calculated as
per the
shareholding
proportion
Adjustments 74,380,559.22 -4,625,319.38
--Goodwill
--Unrealized
profits from
internal
transactions
--Others 74,380,559.22 -4,625,319.38
Book value of
equity
17,288,166.1
investment in 286,072.71 37,092,567.41 43,856,468.58 87,066,229.18 201,021,162.24 4,270,037,969.59
3
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with public
offer
Operating 183,253,178.3 1,272,122,747.1 110,953,140.7 1,393,101,224.1 386,986,775.7
2,799,151.03 705,195,878.73 6,570,745,844.89
Income 5 5 3 3 8
-
- -
Net Profit 11,260,966.79 233,424,185.0 32,174,554.00 9,105,377.20 34,541,984.81 1,806,213,013.58
80,823,617.88 7,532,897.41
8
Net profit
from
375
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discontinued
operations
Other
comprehensiv -3,924,304.00 -448,924.02
e incomes
Total -
- -
comprehensiv 11,260,966.79 233,424,185.0 32,174,554.00 9,105,377.20 30,617,680.81 1,805,764,089.56
80,823,617.88 7,532,897.41
e income 8
Dividends
received from
associated
6,300,012.21 8,567,040.00 17,920,972.75 429,182,504.29
enterprises in
the current
year
376
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(4) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Accumulated
Unrecognized Unrecognized Losses
Unrecognized
Name of Joint Ventures or Losses in the Current Period
Losses at the End
Associated Enterprises Accumulated in (or Net Profit Shared
of the Current
Prior Periods in the Current Period)
Period
Suzhou Zhito Technology
89,276,907.14 42,211,955.00 131,488,862.14
Co., Ltd.
SmartLink 6,085,491.68 6,085,491.68
Other description: none
XI. Government subsidies
1. Government subsidies recognized at the receivable amount at the end of the reporting period
□Applicable Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time
point
□Applicable Not applicable
2. Liability items with government subsidies
□Applicable Not applicable
3. Government subsidies included in the current profit or loss
Applicable □Not applicable
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Account item
Period Previous Period
377
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Government subsidies 610,869,960.46 1,704,587,805.78
Other description: none
XII. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The main financial instruments of the Company include monetary capital, notes receivable, accounts
receivable, receivables financing, other receivables, non-current assets due within one year, other
current assets, long-term receivables, notes payable, accounts payable, other payables, non-current
liabilities due within one year, and lease liabilities. Details of each financial instrument have been
disclosed in relevant notes. The risks related to these financial instruments and the risk management
policies adopted by the Company to reduce these risks are described below. The management of the
Company manages and monitors these risk exposures to ensure that the above risks are controlled
within a limited range.
(1) Risk management objectives and policies
The Company carries out risk management to achieve an appropriate balance between risks and
benefits, minimize the negative impact of risks on the Company's business performance, and
maximize the interests of shareholders and other equity investors. The Company, based on the risk
management objectives, adopts the basic risk management strategy of determining and analyzing
various risks faced by the Company, establishing an appropriate baseline for risk tolerance and
carrying out risk management, and supervising various risks in a timely and reliable manner to
control the risks within a limited range.
Main risks caused by financial instruments of the Company include credit risk, liquidity risk and
market risk (including exchange rate risk and interest rate risk).
Credit risk
Credit risk refers to the risk of financial loss to the Company caused by the counterparty's failure to
perform its contractual obligations.
378
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The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank
deposits, notes receivable, accounts receivable, other receivables, long-term receivables, etc.
The Company's deposits are mainly deposited in state-owned banks and other large and medium-
sized listed banks and First Automobile Finance Co., Ltd., and the Company does not expect
significant credit risks in its bank deposits.
The Company makes relevant policies to control the credit risk exposure for notes receivable,
accounts receivable, other receivables and long-term receivables. The Company evaluates the credit
qualification of customers and sets the credit period based on their financial conditions, credit
records and other factors such as current market situations. The Company monitors the credit records
of customers regularly, and take measures such as written reminders, shortening of credit period or
cancellation of credit period for customers with poor credit records, so as to ensure that the overall
credit risk is within a controllable range.
The debtors of the Company's accounts receivable are customers distributed in different industries
and regions. The Company carries out continuous credit assessment on the financial condition of
accounts receivable and purchases credit guarantee insurance when appropriate.
The maximum credit risk exposure borne by the Company is the book value of each financial asset in
the balance sheet. The Company does not provide any other guarantee that may expose the Company
to credit risk.
For the accounts receivable of the Company, the accounts receivable of the top five clients account
for 62.80% of the Company's total accounts receivable (63.06% in 2022); for other accounts
receivable of the Company, the amounts owed by the five biggest debtors account for 74.79% of the
total other accounts receivable (72.86% in 2022).
Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs its obligations of
settlement by delivering cash or other financial assets.
The Company maintains and monitors cash and cash equivalents deemed adequate by the
management during liquidity risk management to meet the Company's operating needs and reduce
379
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the impact of fluctuations in cash flows. The management of the Company monitors the use of bank
loans and ensures compliance with the loan agreements. Meanwhile, the Company obtains
commitments from major financial institutions to provide sufficient reserve funds to meet short-term
and long-term funding needs.
The sources of the Company's working capital include funds generated from operating activities,
bank loans and other loans. As of December 31, 2023, the unused bank credit line of the Company
was CNY 17.203 billion (CNY 20.75 billion at the end of the previous year).
Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow
of financial instruments due to the changes in market price, including interest rate risk, exchange rate
risk and other price risks.
Interest rate risk
The risk of changes in cash flow of financial instruments caused by changes in interest rates of the
Company is mainly related to bank loans with floating interest rates. It is the policy of the Company
to maintain floating interest rates on these loans.
Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market
interest rates affect interest income or expenses on variable rate financial instruments.
The Company had no interest-bearing debts such as bank loans as of December 31, 2023.
Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial
instruments due to change in foreign exchange rate. Exchange rate risk may come from financial
instruments denominated in a foreign currency other than the recording currency.
The foreign exchange risk borne by the Company is mainly related to euros. Main business activities
of the Company are settled in CNY, except that the subsidiary established in Austria holds assets
settled in EUR. The balance of Company's assets and liabilities were all in CNY as of December 31,
380
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2023, except a small amount of monetary capitals including the balance in EUR. Therefore, the
Company does not believe that the exchange rate risk faced is significant.
(2) Capital management
The Company prepares capital management policy to ensure continuous operation of the Company,
thus providing returns to shareholders, benefiting other stakeholders, and maintaining the best capital
structure to reduce capital costs.
In order to maintain or adjust the capital structure, the Company may adjust the financing method,
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares
and other equity instruments, or sell assets to reduce debt.
The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities
divided by total assets). As at December 31, 2023, the asset-liability ratio of the Company is 62.83%
(58.23% at the end of the previous year).
2. Financial assets
(1) Classification of transfer methods
□Applicable Not applicable
(2) Financial assets derecognized due to transfer
□Applicable Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable Not applicable
381
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XIII. Disclosure of Fair Value
1. Basis for determination of market prices for continuous and non-continuous level I
measurement items at fair value
According to the lowest level input that is significant to the fair value measurement as a whole, the
fair value level can be divided into:
Level I: Quotations for the same assets or liabilities in active markets (unadjusted).
2. Valuation techniques and qualitative and quantitative information about key parameters of
items subject to continuous and non-continuous level II fair value measurement
Level II: Observable input values other than market quotations for assets or liabilities in the first
level are used directly (i.e. price) or indirectly (i.e. derived from price).
3. Valuation techniques and qualitative and quantitative information about key parameters of
items subject to continuous and non-continuous level III fair value measurement
Level III: Any input value (non-observable input value) not based on observable market data is used
for assets or liabilities.
The Company's financial assets and financial liabilities measured at amortized cost mainly include
monetary capital, notes receivable, accounts receivable, other receivables, notes payable, accounts
payable, other payables, etc.
XIV. Related Parties and Related Party Transactions
1. Parent company of the Company
Shareholding Proportion of
Name of Registered Proportion of Voting Rights
Registered Nature of
Parent Capital the Parent of the Parent
address business
Company (CNY 10,000) Company in Company in
the Company the Company
382
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Production
and sales of
FAW Changchun 7,800,000.00 66.00% 66.00%
automobiles
and parts
Description of the parent company of the Company: The ultimate controlling party of the Company
is FAW Group.
Other description: The registered capital of the parent company has not changed during the reporting
period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company, please refer to Article 1 in X "Equity in Other Entities" of
Section X - Financial Report.
3. Information on joint ventures and associated enterprises of the Company
For details of joint ventures or associated enterprises of the Company, please refer to Article 2 in X
"Equity in Other Entities" of Section X - Financial Report.
Other joint ventures or associated enterprises that have related party transactions with the Company
in the current period or in the previous period, resulting in balance, are as follows:
Name of Joint Ventures or Associated
Relationship with the Company
Enterprises
Associated enterprise of the Company, the
First Automobile Finance Co., Ltd.
same ultimate controlling party
Associated enterprise of the Company, the
Sanguard Automobile Insurance Co., Ltd.
same ultimate controlling party
Associated enterprise of the Company, the
Changchun Automotive Test Center Co., Ltd.
same ultimate controlling party
FAW Changchun Ansteel Steel Processing and
Associated enterprise of the Company
Distribution Co., Ltd.
Changchun Wabco Automotive Control System Associated enterprise of the Company
383
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Co., Ltd.
Suzhou Zhito Technology Co., Ltd. Associated enterprise of the Company
FAW Changchun Baoyou Jiefang Steel
Associated enterprise of the Company
Processing and Distribution Co., Ltd.
FAW Jiefang Fujie (Tianjin) Technology
Associated enterprise of the Company
Industry Co., Ltd.
SmartLink Associated enterprise of the Company
Foshan Diyiyuan New Energy Technology Co.,
Associated enterprise of the Company
Ltd.
Jiefang Times New Energy Technology Co.,
Associated enterprise of the Company
Ltd.
Other description:
4. Information on other related parties
Relationship between Other Related Parties and
Names Of Other Related Parties
the Company
FAW Bestune Car Co., Ltd. The same ultimate controlling party
FAW Harbin Light Automobile Co., Ltd. The same ultimate controlling party
Sanguard Automobile Insurance Co., Ltd. The same ultimate controlling party
FAW Logistics Co., Ltd. The same ultimate controlling party
FAW Logistics (Changchun Lushun) Storage
The same ultimate controlling party
and Transportation Co., Ltd.
FAW Logistics (Foshan) Co., Ltd. The same ultimate controlling party
FAW Logistics (Qingdao) Co., Ltd. The same ultimate controlling party
FAW (Dalian) International Logistics Co., Ltd. The same ultimate controlling party
FAW Foundry Co., Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co., Ltd. The same ultimate controlling party
FAW Mold Manufacturing Co., Ltd. The same ultimate controlling party
China FAW Group Import & Export Co., Ltd. The same ultimate controlling party
Qiming Information Technology Co., Ltd. The same ultimate controlling party
384
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Dalian Qiming Haitong Information
The same ultimate controlling party
Technology Co., Ltd.
Jilin Qiming Anxin Information Security
The same ultimate controlling party
Technology Co., Ltd.
FAW Asset Management Co., Ltd. The same ultimate controlling party
Changchun FAW International Tendering Co.,
The same ultimate controlling party
Ltd.
FAW Zhixing Technology (Nanjing) Co., Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co., Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service
The same ultimate controlling party
Co., Ltd.
Wuxi Sawane Spring Co., Ltd. The same ultimate controlling party
FAW New Energy Vehicle Sales (Shenzhen)
The same ultimate controlling party
Co., Ltd.
Changchun Automotive Test Center Co., Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co., Ltd. The same ultimate controlling party
FAW-Volkswagen Automotive Co., Ltd. The same ultimate controlling party
Changchun FAW Automobile Culture
The same ultimate controlling party
Communication Co., Ltd.
FAW New Energy Vehicle Sales (Shenzhen)
The same ultimate controlling party
Co., Ltd.
Chengdu Qiming Chunrong Information
The same ultimate controlling party
Technology Co., Ltd.
Changchun Chengxin Second-hand Vehicles
The same ultimate controlling party
Distribution Co., Ltd.
Cinda FAW Commercial Factoring Co., Ltd. Other related parties
The Ninth Institute of Project Planning &
Other related parties
Research of China Machinery Industry (FIPPR)
FAW Hongta Yunnan Automobile
Other related parties
Manufacturing Co., Ltd.
FAW Changchun Ansteel Steel Processing and Other related parties
385
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Distribution Co., Ltd.
FAW Changchun Baoyou Jiefang Steel
Other related parties
Processing and Distribution Co., Ltd.
Changchun Wabco Automotive Control System
Other related parties
Co., Ltd.
Suzhou Zhito Technology Co., Ltd. Other related parties
FAW Jiefang Fujie (Tianjin) Technology
Other related parties
Industry Co., Ltd.
SmartLink Other related parties
Foshan Diyiyuan New Energy Technology Co.,
Other related parties
Ltd.
Jiefang Times New Energy Technology Co.,
Other related parties
Ltd.
Changchun FAW United Casting Company Other related parties
Changchun Yidong Clutch Co., Ltd. Other related parties
Fawer Auto Parts Co., Ltd. Other related parties
China Unicom Intelligent Network Technology
Other related parties
Co., Ltd.
Changchun FAWSN Group Co., Ltd. Other related parties
FAW Changchun Communication Technology
Other related parties
Co., Ltd.
United Fuel Cell System R&D (Beijing) Co.,
Other related parties
Ltd.
Changchun FAWAY Automobile Components
Other related parties
Co., Ltd.
FAW Jilin Automobile Co., Ltd. Other related parties
Changchun Automotive Economic and
Technological Development Zone
Other related parties
Environmental Sanitation and Cleaning Co.,
Ltd.
FAW Jingye Engine Co., Ltd. Other related parties
386
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Wuxi CRRC New Energy Automobile Co., Ltd. Other related parties
FAW Changchun Comprehensive Utilization
Other related parties
Co., Ltd.
FAW Changchun Industrial Shuixing Rubber
Other related parties
and Plastic Products Co., Ltd.
FAW Changchun Yanfeng Visteon Electronics
Other related parties
Co., Ltd.
FAW Changchun Industrial Sodis Management
Other related parties
Service Co., Ltd.
Shandong Pengxiang Automobile Co., Ltd. Other related parties
FAW Changchun Tianqi Process Equipment
Other related parties
Engineering Co., Ltd.
Hongqi Intelligent Mobility Technology
Other related parties
(Beijing) Co., Ltd.
Grammer Vehicle Parts (Harbin) Co., Ltd. Other related parties
Grammer Vehicle Parts (Qingdao) Co., Ltd. Other related parties
FAW Jiefang Fujie (Tianjin) Technology
Other related parties
Industry Co., Ltd.
Changchun FAW Pratt Technology Co., Ltd. Other related parties
Harbin FAW Transmission Co., Ltd. Other related parties
Jilin CNPC Hongrun Energy Development Co.,
Other related parties
Ltd.
Jilin Checheng Garden Hotel Co., Ltd. Other related parties
Other description:
5. Related transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor
services
Statement of goods purchase/reception of labor services
Unit: CNY
387
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Content of Is the
Amount Approved Amount
Related Transactio
Related Parties Incurred in Transaction Incurred in the
Transactio n Amount
Current Period Amount Previous Period
n Exceeded
Goods
purchase
Fawer Auto and 1,659,607,907.6 1,684,360,000.0 1,040,303,880.1
No
Parts Co., Ltd. reception 8 0 4
of labor
services
Goods
purchase
FAW Foundry and
719,806,260.27 847,650,000.00 No 520,403,729.13
Co., Ltd. reception
of labor
services
Goods
Shandong purchase
Pengxiang and
639,215,809.17 664,900,000.00 No 333,494,286.96
Automobile reception
Co., Ltd. of labor
services
Goods
purchase
Changchun
and
FAWSN Group 477,587,989.87 678,380,000.00 No 285,115,158.83
reception
Co., Ltd.
of labor
services
Goods
Changchun
purchase
FAWAY
and
Automobile 468,240,684.46 850,690,000.00 No 320,827,961.46
reception
Components
of labor
Co., Ltd.
services
Goods
purchase
FAW Forging and
457,919,812.83 509,050,000.00 No 296,850,949.41
(Jilin) Co., Ltd. reception
of labor
services
Goods
purchase
FAW Logistics and
382,993,131.18 400,000,000.00 No 242,651,156.76
Co., Ltd. reception
of labor
services
FAW Goods
Changchun purchase
377,742,520.02 317,090,000.00 Yes 191,014,909.94
Ansteel Steel and
Processing and reception
388
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Distribution of labor
Co., Ltd. services
FAW Goods
Changchun purchase
Baoyou Jiefang and
Steel reception 369,253,850.87 356,370,000.00 Yes 118,225,857.01
Processing and of labor
Distribution services
Co., Ltd.
Goods
purchase
and
FAW 334,754,422.65 427,900,000.00 No 248,344,825.51
reception
of labor
services
Goods
purchase
FAW Logistics
and
(Qingdao) Co., 312,669,087.26 426,000,000.00 No 247,090,559.60
reception
Ltd.
of labor
services
Goods
Grammer purchase
Vehicle Parts and
229,686,526.22 150,000,000.00 Yes 12,230,604.49
(Harbin) Co., reception
Ltd. of labor
services
The Ninth
Institute of
Goods
Project
purchase
Planning &
and
Research of 204,289,200.11 348,760,000.00 No 280,744,044.56
reception
China
of labor
Machinery
services
Industry
(FIPPR)
Goods
purchase
and
SmartLink 201,735,640.71 141,240,000.00 Yes 113,917,493.08
reception
of labor
services
Goods
purchase
Changchun
and
Yidong Clutch 200,320,876.60 193,030,000.00 Yes 165,424,937.00
reception
Co., Ltd.
of labor
services
Qiming Goods
157,507,467.25 143,800,000.00 Yes 150,551,880.46
Information purchase
389
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Technology and
Co., Ltd. reception
of labor
services
Goods
Changchun purchase
Automotive and
120,524,077.09 134,240,000.00 No 68,056,015.91
Test Center reception
Co., Ltd. of labor
services
Goods
FAW Harbin purchase
Light and
109,010,564.50 120,000,000.00 No 30,836,252.96
Automobile reception
Co., Ltd. of labor
services
FAW Logistics Goods
(Changchun purchase
Lushun) and
75,055,638.23 80,000,000.00 No 57,890,606.84
Storage and reception
Transportation of labor
Co., Ltd. services
Goods
Changchun
purchase
Wabco
and
Automotive 50,209,527.83 70,000,000.00 No 2,474,003.64
reception
Control System
of labor
Co., Ltd.
services
Goods
FAW
purchase
Changchun
and
Communicatio 36,244,311.07 40,000,000.00 No 10,715,872.47
reception
n Technology
of labor
Co., Ltd.
services
Goods
Sanguard purchase
Automobile and
23,753,449.15 30,000,000.00 No 16,947,602.02
Insurance Co., reception
Ltd. of labor
services
Goods
FAW (Dalian) purchase
International and
22,123,885.88 30,000,000.00 No 20,212,557.25
Logistics Co., reception
Ltd. of labor
services
China FAW Goods
Group Import purchase
25,285,761.48 156,060,000.00 No 175,338,956.45
& Export Co., and
Ltd. reception
390
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of labor
services
Goods
purchase
FAW Jilin
and
Automobile 17,773,899.93 195,530,000.00 No 12,574,740.22
reception
Co., Ltd.
of labor
services
Goods
purchase
FAW Mold
and
Manufacturing 14,470,053.09 17,000,000.00 No 56,026,450.00
reception
Co., Ltd.
of labor
services
Goods
purchase
and
FAW Group 13,627,907.80 20,000,000.00 No 1,014,319.61
reception
of labor
services
Goods
FAW
purchase
Changchun
and
Comprehensive 6,269,917.66 8,000,000.00 No 8,500,177.30
reception
Utilization Co.,
of labor
Ltd.
services
Goods
purchase
Wuxi Sawane
and
Spring Co., 5,795,996.05 7,000,000.00 No 3,885,303.33
reception
Ltd.
of labor
services
FAW Goods
Changchun purchase
Automobile and
9,359,470.16 11,000,000.00 No 4,426,582.97
Trading reception
Service Co., of labor
Ltd. services
Goods
Hainan purchase
Tropical and
4,471,020.41 7,000,000.00 No 9,359,403.67
Automobile reception
Test Co., Ltd. of labor
services
Goods
FAW Hongta
purchase
Yunnan
and
Automobile 3,333,481.77 5,000,000.00 No 6,792,968.69
reception
Manufacturing
of labor
Co., Ltd.
services
391
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FAW Goods
Changchun purchase
Industrial Sodis and
2,981,286.13 5,000,000.00 No 6,643,236.02
Management reception
Service Co., of labor
Ltd. services
Goods
Wuxi CRRC purchase
New Energy and
2,951,329.20 5,000,000.00 No 3,652,485.85
Automobile reception
Co., Ltd. of labor
services
Changchun Goods
Automotive purchase
Economic and and
Technological reception
Development of labor
2,480,191.44 5,000,000.00 No 4,221,956.56
Zone services
Environmental
Sanitation and
Cleaning Co.,
Ltd.
Hongqi Goods
Intelligent purchase
Mobility and
1,901,350.79 3,000,000.00 No 504,696.88
Technology reception
(Beijing) Co., of labor
Ltd. services
Goods
purchase
Suzhou Zhito
and
Technology 1,769,496.50 2,000,000.00 No 1,488,321.73
reception
Co., Ltd.
of labor
services
Goods
purchase
Changchun
and
Faw Service 1,646,126.01 2,000,000.00 No 5,847,490.52
reception
Trade Co., Ltd.
of labor
services
FAW Goods
Changchun purchase
Tianqi Process and
1,575,945.99 2,000,000.00 No 3,997,546.96
Equipment reception
Engineering of labor
Co., Ltd. services
Changchun Goods
FAW United purchase
1,561,241.13 2,000,000.00 No 2,061,592.32
Casting and
Company reception
392
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
of labor
services
Goods
purchase
FAW Asset
and
Management 1,350,856.25 2,000,000.00 No 919,804.06
reception
Co., Ltd.
of labor
services
Goods
Dalian Qiming
purchase
Haitong
and
Information 679,245.27 1,000,000.00 No 986,233.96
reception
Technology
of labor
Co., Ltd.
services
FAW Goods
Changchun purchase
Yanfeng and
530,977.43 1,000,000.00 No 1,407,288.17
Visteon reception
Electronics of labor
Co., Ltd. services
Goods
Changchun
purchase
FAW
and
International 352,288.66 500,000.00 No 28,766.98
reception
Tendering Co.,
of labor
Ltd.
services
Jilin Qiming Goods
Anxin purchase
Information and
208,000.00 500,000.00 No
Security reception
Technology of labor
Co., Ltd. services
Goods
FAW Zhixing purchase
Technology and
157,699.08 500,000.00 No
(Nanjing) Co., reception
Ltd. of labor
services
Goods
China Unicom
purchase
Intelligent
and
Network 65,672.64 200,000.00 No 95,449.06
reception
Technology
of labor
Co., Ltd.
services
Goods
purchase
FAW Logistics
and
(Foshan) Co., 4,050.00 200,000.00 No
reception
Ltd.
of labor
services
393
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Goods
Grammer purchase
Vehicle Parts and
No 53,513,930.54
(Qingdao) Co., reception
Ltd. of labor
services
FAW Goods
Changchun purchase
Industrial and
Shuixing reception
No 552,191.07
Rubber and of labor
Plastic services
Products Co.,
Ltd.
Chengdu Goods
Qiming purchase
Chunrong and
No 264,150.96
Information reception
Technology of labor
Co., Ltd. services
Changchun Goods
FAW purchase
Automobile and
82,355.84 200,000.00 No 145,434.85
Culture reception
Communicatio of labor
n Co., Ltd. services
Goods
Jilin CNPC
purchase
Hongrun
and
Energy No 58,203.77
reception
Development
of labor
Co., Ltd.
services
Goods
purchase
Jilin Checheng
and
Garden Hotel No 15,300.00
reception
Co., Ltd.
of labor
services
Statement of goods sales/rendering of services
Unit: CNY
Content of
Amount Incurred in Amount Incurred in
Related Parties Related
Current Period the Previous Period
Transaction
China FAW Group Import &
Sales of goods 11,568,030,597.11 5,921,179,357.98
Export Co., Ltd.
FAW Jiefang Fujie (Tianjin)
Sales of goods 2,446,872,744.97 842,004,381.84
Technology Industry Co., Ltd.
394
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Jiefang Times New Energy
Sales of goods 298,543,205.58
Technology Co., Ltd.
FAW Harbin Light Automobile
Sales of goods 230,480,872.70 8,285,242.45
Co., Ltd.
FAW Changchun
Comprehensive Utilization Co., Sales of goods 205,149,077.38 139,052,616.83
Ltd.
SmartLink Sales of goods 107,773,406.53
FAW Sales of goods 17,191,730.77 223,777,186.60
FAW Changchun Automobile
Sales of goods 15,048,966.05 12,035,398.26
Trading Service Co., Ltd.
FAW Asset Management Co.,
Sales of goods 8,792,475.43 11,266,794.44
Ltd.
Suzhou Zhito Technology Co.,
Sales of goods 8,676,773.64 47,059,399.63
Ltd.
Changchun Faw Service Trade
Sales of goods 17,192,553.61 190,597,521.42
Co., Ltd.
Changchun Yidong Clutch Co.,
Sales of goods 2,620,014.69 315,024.68
Ltd.
Qiming Information
Sales of goods 1,730,374.32
Technology Co., Ltd.
Shandong Pengxiang
Sales of goods 1,310,470.28 1,179,878.53
Automobile Co., Ltd.
Changchun Automotive Test
Sales of goods 2,443,809.58 5,364,922.47
Center Co., Ltd.
FAW Changchun Baoyou
Jiefang Steel Processing and Sales of goods 1,056,155.96
Distribution Co., Ltd.
United Fuel Cell System R&D
Sales of goods 883,287.65 817,250.62
(Beijing) Co., Ltd.
Fawer Auto Parts Co., Ltd. Sales of goods 719,960.37 925,014.61
FAW Logistics Co., Ltd. Sales of goods 218,688.15 492,920.35
Cinda FAW Commercial
Sales of goods 189,390.03 155,115.86
Factoring Co., Ltd.
FAW Logistics (Qingdao) Co.,
Sales of goods 141,854.72 10,787,369.81
Ltd.
Grammer Vehicle Parts
Sales of goods 106,470.00
(Harbin) Co., Ltd.
FAW Changchun
Communication Technology Sales of goods 93,577.97 15,596.36
Co., Ltd.
Foshan Diyiyuan New Energy
Sales of goods 80,254.07
Technology Co., Ltd.
FAW Logistics (Changchun
Lushun) Storage and Sales of goods 63,448.12 868,938.00
Transportation Co., Ltd.
FAW Forging (Jilin) Co., Ltd. Sales of goods 57,933.33
Wuxi Sawane Spring Co., Ltd. Sales of goods 14,150.94 10,377.36
FAW Foundry Co., Ltd. Sales of goods 11,614.68 4,843,899.93
FAW Bestune Car Co., Ltd. Sales of goods 10,211.32 176,415.09
395
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Changchun FAWAY
Automobile Components Co., Sales of goods 7,673.40
Ltd.
FAW Changchun Yanfeng
Sales of goods 7,562.98 39,774.12
Visteon Electronics Co., Ltd.
Changchun FAWSN Group
Sales of goods 6,086.49
Co., Ltd.
FAW Jilin Automobile Co.,
Sales of goods 1,938.32 132,278.36
Ltd.
FAW-Volkswagen Automotive
Sales of goods 104,603.78
Co., Ltd.
Changchun Chengxin Second-
hand Vehicles Distribution Co., Sales of goods 52,256.64
Ltd.
FAW Hongta Yunnan
Automobile Manufacturing Sales of goods 19,099,950.39
Co., Ltd.
Description of related transactions of purchasing or selling goods and providing or receiving labor
services:
Among related parties from which the Company purchased goods and received services in 2023, the
amounts actually incurred from the Changchun Baoyou Jiefang Steel Processing and Distribution
Co., Ltd., Changchun Yidong Clutch Co., Ltd., FAW Changchun Ansteel Steel Processing and
Distribution Co., Ltd., Grammer Vehicle Parts (Harbin) Co., Ltd., and SmartLink exceed the
expected amounts, but the excess portions do not meet the disclosure standards; the amount incurred
by purchasing goods and receiving services from Qiming Information Technology Co., Ltd. exceeds
the expected amount, but the actual amount incurred is not beyond the approved total trading limit as
this internal institution of FAW is managed as a related party on a unified basis.
(2) Related lease
The Company, as the lessor:
Unit: CNY
Lease Income Lease Income
Type of
Name of Lessee Recognized in the Recognized in the
Leased Assets
Current Period Previous Period
Houses,
Changchun Automotive Test
buildings and 1,288,392.96 5,356,513.01
Center Co., Ltd.
land
FAW Changchun Baoyou Jiefang Houses and
1,056,155.96 1,056,155.96
Steel Processing and Distribution Buildings
396
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Co., Ltd.
Houses and
FAW 1,017,306.92 3,437,949.10
Buildings
Shandong Pengxiang Houses and
767,705.50 754,700.92
Automobile Co., Ltd. Buildings
Houses and
Fawer Auto Parts Co., Ltd. 395,405.52 395,405.52
Buildings
FAW Changchun Houses,
Communication Technology Co., buildings and 93,577.97 99,999.97
Ltd. land
Foshan Diyiyuan New Energy Houses and
75,391.68
Technology Co., Ltd. Buildings
Houses and
FAW Group 173,884.11
Buildings
397
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
The Company, as the lessee:
Unit: CNY
Rental expenses Variable lease
for simplified payments not
Interest Expense on Increased right-of-
short-term leases included in the Rent Paid
Lease Liabilities Incurred use assets
or low-value asset measurement of
Type of leases lease liabilities
Name of
Leased
lessor Amount Amount Amount Amount Amount
Assets Amount Amount Amount Amount Amount
Incurre Incurred Incurre Incurred Incurred
Incurred in Incurred in Incurred Incurred in Incurred
d in in the d in in the in the
Current the Previous in Current the Previous in Current
Current Previou Current Previou Previou
Period Period Period Period Period
Period s Period Period s Period s Period
Houses
and 11,954,237.5 11,426,735.7 623,377.4 1,319,118.6 629,506.6
FAW
Building 2 9 4 7 7
s
Changchun Houses
Automotive and
2,335,846.88 93,731.36
Test Center Building
Co., Ltd. s
FAW
Changchun
Automobile
Vehicle 4,509,955.99
Trading
Service Co.,
Ltd.
Hongqi
Intelligent Vehicle 1,122.88
Mobility
398
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Technology
(Beijing)
Co., Ltd.
302,739.3
FAW Group Land 3,913,647.70 3,913,647.70 482,040.75
0
Houses
FAW Asset
and
Managemen 157,096.00
Building
t Co., Ltd.
s
Description of related leases
399
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
(3) Remuneration of key management personnel
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Remuneration of key
16,025,900.00 23,496,500.00
management personnel
(4) Other related transactions
Interest income and interest expense
Amount incurred in Amount incurred in
Content of Related
Related Parties the current period the previous period
Transaction
(CNY) (CNY)
First Automobile Finance
Interest income 96,844,475.31 305,093,442.72
Co., Ltd.
Deposits and interests in finance companies
Ending balance of
Transaction Ending balance
Project name Related Parties the previous year
content (CNY)
(CNY)
Deposits and
interests of
Monetary First Automobile finance
14,046,575,246.78 13,832,934,255.95
capital Finance Co., Ltd. company
included in bank
deposits
Discount business
Amount incurred in Amount incurred in
Related Parties Correlation the current period the previous period
(CNY) (CNY)
First Automobile Finance Co., Discount expense 494,444.40
400
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Ltd.
Equity investment
Amount incurred in the Amount Incurred in the
Item
current period (CNY) Previous Period
Changchun Automotive Test Center
670,872,897.94
Co., Ltd.
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
Ending balance Opening balance
Project
Related Parties Provision for Provision for
Name Book balance Book balance
Bad Debts Bad Debts
China FAW
Accounts
Group Import & 565,045,453.53 1,438,890.29 320,294,820.43 410,938.55
receivable
Export Co., Ltd.
FAW Harbin
Accounts Light
260,081,914.30 261,998.72 3,787.60 15.91
receivable Automobile Co.,
Ltd.
Jiefang Times
Accounts New Energy
193,088,998.31 743,368.60
receivable Technology Co.,
Ltd.
FAW Hongta
Yunnan
Accounts
Automobile 54,814,238.73 11,781,810.57 61,683,343.69 7,544,307.53
receivable
Manufacturing
Co., Ltd.
Accounts
SmartLink 5,106,986.20 5,106.99
receivable
Accounts
FAW 2,150,000.00 10,320.00 880,188.52 3,696.78
receivable
FAW Asset
Accounts
Management 454,999.94 454,999.94 469,957.39 455,062.76
receivable
Co., Ltd.
United Fuel Cell
Accounts System R&D
210,717.10 1,011.44 200,233.26 840.98
receivable (Beijing) Co.,
Ltd.
Accounts Qiming
131,897.06 633.11
receivable Information
401
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Technology Co.,
Ltd.
Grammer
Accounts Vehicle Parts
116,052.30 557.05
receivable (Harbin) Co.,
Ltd.
Accounts FAW Jingye
1,820,957.23 1,820,957.23 1,820,957.23 1,820,957.23
receivable Engine Co., Ltd.
FAW Changchun
Accounts Comprehensive
24,427.35 117.25
receivable Utilization Co.,
Ltd.
Changchun
Accounts
Yidong Clutch 15,885.93 76.25
receivable
Co., Ltd.
Shandong
Accounts Pengxiang
13,086.18 62.81
receivable Automobile Co.,
Ltd.
Changchun
FAWAY
Accounts
Automobile 8,670.94 41.62
receivable
Components
Co., Ltd.
FAW Logistics
Accounts
(Qingdao) Co., 3,233,572.00 13,581.00
receivable
Ltd.
Changchun
Accounts
Automotive Test 2,919,274.52 12,260.95
receivable
Center Co., Ltd.
FAW-
Accounts Volkswagen
110,880.00 465.70
receivable Automotive Co.,
Ltd.
FAW Changchun
Accounts Yanfeng Visteon
105,367.99 11,453.28
receivable Electronics Co.,
Ltd.
China FAW
Prepayments Group Import & 291,602,226.68 287,527,616.69
Export Co., Ltd.
Changchun
Prepayments Automotive Test 26,426,263.51
Center Co., Ltd.
FAW Mold
Prepayments Manufacturing 12,268,345.36 13,751,495.26
Co., Ltd.
FAW Jilin
Prepayments Automobile Co., 12,256,098.84 646,730.48
Ltd.
402
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Prepayments SmartLink 5,473,400.00 2,283,555.30
Qiming
Information
Prepayments 2,083,957.10 6,853,106.60
Technology Co.,
Ltd.
The Ninth
Institute of
Project Planning
& Research of
Prepayments 600,000.00 12,786,400.00
China
Machinery
Industry
(FIPPR)
FAW Foundry
Prepayments 20,532.03
Co., Ltd.
FAW Hongta
Yunnan
Prepayments Automobile 20,604,798.36
Manufacturing
Co., Ltd.
Prepayments FAW 9,862,836.98
FAW Changchun
Communication
Prepayments 639,459.98
Technology Co.,
Ltd.
FAW Changchun
Tianqi Process
Prepayments Equipment 537,315.00
Engineering Co.,
Ltd.
Other
SmartLink 7,597,737.61 231,731.00
receivables
FAW Asset
Other
Management 3,124,921.61 93,785.11 135,550.51 787.06
receivables
Co., Ltd.
Other FAW Logistics
55,370.79 1,688.81 146,367.32 1,346.58
receivables Co., Ltd.
Other FAW Forging
23,548.67 718.23 55,563.56 511.19
receivables (Jilin) Co., Ltd.
FAW Mold
Other
Manufacturing 19,983.53 609.50 49,165.85 452.33
receivables
Co., Ltd.
FAW Logistics
(Changchun
Other Lushun) Storage
1,219.65 37.20 5,086.11 46.79
receivables and
Transportation
Co., Ltd.
Other
FAW 8,453,593.02 8,229,193.92
receivables
403
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
Other
FAW Group 189,533.68 1,743.71
receivables
China FAW
Other
Group Import & 50,623.62 172.12
receivables
Export Co., Ltd.
Changchun
FAWAY
Other
Automobile 16,388.62 68.83
receivables
Components
Co., Ltd.
Changchun
Other
Automotive Test 231.00 0.23
receivables
Center Co., Ltd.
(2) Payables
Unit: CNY
Ending book Beginning Book
Project name Related Parties
balance Balance
Accounts
Fawer Auto Parts Co., Ltd. 321,637,528.00 144,154,473.17
payable
Accounts Changchun FAWAY Automobile
142,502,192.54 79,486,373.63
payable Components Co., Ltd.
Accounts
FAW Logistics (Qingdao) Co., Ltd. 104,662,732.36 91,101,620.88
payable
Accounts
Shandong Pengxiang Automobile Co., Ltd. 95,007,782.33 34,193,762.56
payable
Accounts
FAW Logistics Co., Ltd. 80,290,107.51 32,265,403.36
payable
Accounts
FAW Forging (Jilin) Co., Ltd. 76,891,932.23 18,898,210.68
payable
Accounts
FAW Harbin Light Automobile Co., Ltd. 65,513,752.89 16,170,855.51
payable
Accounts
Changchun Yidong Clutch Co., Ltd. 52,247,878.28 21,092,492.24
payable
Accounts
FAW Foundry Co., Ltd. 44,286,964.68 51,984,437.61
payable
Accounts
Changchun FAWSN Group Co., Ltd. 33,612,267.32 14,386,006.95
payable
Accounts
Qiming Information Technology Co., Ltd. 32,857,375.09 20,174,791.43
payable
Accounts
SmartLink 18,624,052.12 14,489,906.15
payable
Accounts
FAW 29,476,172.06 34,214,102.32
payable
Accounts
Grammer Vehicle Parts (Harbin) Co., Ltd. 10,120,909.07 701,342.31
payable
Accounts FAW Logistics (Changchun Lushun) 8,629,745.71 11,426,277.60
404
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
payable Storage and Transportation Co., Ltd.
Accounts FAW (Dalian) International Logistics Co.,
6,942,812.41 3,851,730.60
payable Ltd.
Accounts Changchun Automotive Test Center Co.,
6,851,687.59 316,400.00
payable Ltd.
Accounts Changchun Wabco Automotive Control
5,414,883.93 272,712.00
payable System Co., Ltd.
Accounts
Sanguard Automobile Insurance Co., Ltd. 2,822,789.08 1,074,463.94
payable
Accounts China FAW Group Import & Export Co.,
2,678,724.16
payable Ltd.
Accounts FAW Changchun Automobile Trading
2,609,565.02 1,479,550.69
payable Service Co., Ltd.
Accounts FAW Changchun Comprehensive
2,361,868.60 2,905,411.90
payable Utilization Co., Ltd.
Accounts
FAW Group 2,212,607.00 14,133.00
payable
Accounts
Hainan Tropical Automobile Test Co., Ltd. 1,625,476.03 31,977.00
payable
Accounts
FAW Mold Manufacturing Co., Ltd. 1,133,423.20 1,121,206.34
payable
Changchun Automotive Economic and
Accounts Technological Development Zone
451,864.50 630,751.44
payable Environmental Sanitation and Cleaning
Co., Ltd.
Accounts
Wuxi Sawane Spring Co., Ltd. 377,207.77 233,647.89
payable
Accounts Hongqi Intelligent Mobility Technology
326,523.80 121,039.88
payable (Beijing) Co., Ltd.
Accounts Dalian Qiming Haitong Information
240,000.00 248,852.00
payable Technology Co., Ltd.
Accounts
FAW Asset Management Co., Ltd. 226,180.17
payable
Accounts FAW Changchun Tianqi Process
178,081.90 8,891.97
payable Equipment Engineering Co., Ltd.
Accounts FAW Changchun Baoyou Jiefang Steel
117,304.27 4,937,649.97
payable Processing and Distribution Co., Ltd.
Accounts FAW Changchun Communication
61,517.85 233,570.95
payable Technology Co., Ltd.
Accounts FAW Changchun Yanfeng Visteon
51,837.99 715,521.31
payable Electronics Co., Ltd.
Accounts
Changchun FAW United Casting Company 39,972.52 521,726.80
payable
Accounts China Unicom Intelligent Network
30,249.00 54,880.00
payable Technology Co., Ltd.
Accounts Changchun FAW International Tendering
26,778.00
payable Co., Ltd.
Accounts FAW Zhixing Technology (Nanjing) Co.,
16,200.00
payable Ltd.
Accounts FAW Changchun Industrial Shuixing 15,197.33 184,682.20
405
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
payable Rubber and Plastic Products Co., Ltd.
Accounts
Suzhou Zhito Technology Co., Ltd. 10,237.07 1,011,118.95
payable
Accounts
FAW Logistics (Foshan) Co., Ltd. 4,293.00
payable
Accounts FAW Changchun Ansteel Steel Processing
15,646,652.24
payable and Distribution Co., Ltd.
Accounts FAW Hongta Yunnan Automobile
4,551,929.99
payable Manufacturing Co., Ltd.
Accounts
Grammer Vehicle Parts (Qingdao) Co., Ltd. 3,402,836.35
payable
Accounts FAW Changchun Industrial Sodis
2,149,473.72
payable Management Service Co., Ltd.
The Ninth Institute of Project Planning &
Accounts
Research of China Machinery Industry 1,751,774.48
payable
(FIPPR)
Accounts
Changchun Faw Service Trade Co., Ltd. 849,829.54
payable
Accounts Wuxi CRRC New Energy Automobile Co.,
757,023.75
payable Ltd.
Accounts FAW Jiefang Fujie (Tianjin) Technology
111,795.54
payable Industry Co., Ltd.
Accounts Changchun FAW Automobile Culture
82,778.99
payable Communication Co., Ltd.
Accounts Changchun FAW Pratt Technology Co.,
17,236.96
payable Ltd.
Accounts
FAW Bestune Car Co., Ltd. 5,100.00
payable
Accounts
FAW Jilin Automobile Co., Ltd. 13.33
payable
Accounts
FAW Changchun Comprehensive
received in 38,791.52
Utilization Co., Ltd.
advance
Accounts
received in Shandong Pengxiang Automobile Co., Ltd. 210,381.00
advance
Accounts
received in Fawer Auto Parts Co., Ltd. 107,748.00 107,748.00
advance
Accounts
Changchun Automotive Test Center Co.,
received in 1,530,824.16
Ltd.
advance
Accounts
FAW Changchun Communication
received in 17,431.19
Technology Co., Ltd.
advance
Contract FAW Jiefang Fujie (Tianjin) Technology
309,314,130.28 68,040,782.38
liabilities Industry Co., Ltd.
Contract
Changchun Faw Service Trade Co., Ltd. 28,117,018.95 15,663,935.13
liabilities
Contract FAW Changchun Comprehensive 2,463,687.98 547,549.31
406
Full Text of 2023 Report of FAW JIEFANG GROUP CO., LTD.
liabilities Utilization Co., Ltd.
Contract China FAW Group Import & Export Co.,
4,057,439.29 2,676,797.47
liabilities Ltd.
Contract
Shandong Pengxiang Automobile Co., Ltd. 492,721.62 436,111.40
liabilities
Contract
Suzhou Zhito Technology Co., Ltd. 334,400.00 1,181,411.98
liabilities
Contract FAW Changchun Automobile Trading
26,830.00
liabilities Service Co., Ltd.
Contract FAW New Energy Vehicle Sales
8,060.00 7,132.74
liabilities (Shenzhen) Co., Ltd.
Contract FAW Hongta Yunnan Automobile
36,704.04
liabilities Manufacturing Co., Ltd.
Contract
FAW Asset Management Co., Ltd. 20,698.19
liabilities
Contract
Harbin FAW Transmission Co., Ltd. 119.16
liabilities
Contract
FAW Logistics Co., Ltd. 9.88
liabilities
Other FAW Hongta Yunnan Automobile
134,832,393.40 831,560.00
payables Manufacturing Co., Ltd.
The Ninth Institute of Project Planning &
Other
Research of China Machinery Industry 94,265,971.56 170,438,828.71
payables
(FIPPR)
Other
FAW 95,802,940.17 2,792,527.37
payables
Other Changchun Automotive Test Center Co.,
26,847,716.00 42,616.35
payables Ltd.
Other
Qiming Information Technology Co., Ltd. 21,046,660.22 31,377,721.05
payables
Other
FAW Mold Manufacturing Co., Ltd. 17,227,387.87 32,192,507.66
payables
Other
Fawer Auto Parts Co., Ltd. 10,095,378.21 429,040.30
payables
Other
FAW Harbin Light Automobile Co., Ltd. 8,241,822.24
payables
Other China FAW Group Import & Export Co.,
3,485,617.92 2,264,521.88
payables Ltd.
Other FAW Changchun Communication
3,062,361.99 3,483,543.17
payables Technology Co., Ltd.
Other
SmartLink 1,876,477.00 182,000.00
payables
Other
Shandong Pengxiang Automobile Co., Ltd. 1,040,000.00 1,040,000.00
payables
Other
Changchun Faw Service Trade Co., Ltd. 320,000.00 629,405.00
payables
Other
Sanguard Automobile Insurance Co., Ltd. 77,800.00
payables
Other
Suzhou Zhito Technology Co., Ltd. 10,000.00 10,000.00
payables
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Other
FAW Group 371,435.96
payables
Other FAW Jiefang Fujie (Tianjin) Technology
20,050,000.00
payables Industry Co., Ltd.
Other FAW Changchun Tianqi Process
4,361,315.10
payables Equipment Engineering Co., Ltd.
Other
Hainan Tropical Automobile Test Co., Ltd. 97,185.18
payables
Other
FAW Asset Management Co., Ltd. 3,925.62 3,925.62
payables
XV. Share-based Payment
1. General conditions of share-based payments
Applicable □Not applicable
Unit: CNY
Shares Shares
granted in exercised in Shares unlocked in the current Shares invalidated
Grantee
the current the current period in the current period
categor
period period
y
Qty Amou Qty Amou
Qty. Amount Qty. Amount
. nt . nt
Manag 13,107,301. 50,594,181. 15,479,987.0 97,950,033.
er 00 86 0 45
13,107,301. 50,594,181. 15,479,987.0 97,950,033.
Total
00 86 0 45
Stock options or other equity instruments outstanding at the end of the current period
□Applicable Not applicable
Other description:
2. Equity-settled share-based payment
Applicable □Not applicable
Unit: CNY
Measures for Restricted shares are determined according to the closing price on the
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determining the fair grant date, and stock options are determined according to the B-S
value of equity option pricing model.
instruments on the grant
date
Important parameters of
fair value of equity
Quoted prices in active markets
instruments on the grant
date
The Company determines the number according to the Proposal on the
Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD.
(Draft) and Its Summary, the Proposal on the Regulations for the
Basis for determining the Implementation Assessment of Restricted Share Incentive Plan of FAW
number of exercisable JIEFANG GROUP CO., LTD., the Proposal on the Regulations for
equity instruments Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and
the Proposal on Requesting the Shareholders' Meeting to Authorize the
Board of Directors to Handle Matters Related to the Company's
Restricted Share Incentive Plan.
Reasons for significant
differences between
N/A
current estimates and
previous estimates
Aggregate amount of
equity-settled share-
53,116,758.44
based payment charged
to the capital reserve
Total expenses
recognized by equity-
settled share-based -24,775,825.33
payment in the current
period
Other description:
3. Cash-settled share-based payment
□Applicable Not applicable
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4. Share-based payment expenses in the current period
Applicable □Not applicable
Unit: CNY
Equity-settled share-based Cash-settled share-based
Grantee category
payment expenses payment expenses
Manager -24,775,825.33
Total -24,775,825.33
Other description:
5. Modification and termination of share-based payment: None
XVI. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
The Company has no other commitments that should be disclosed as of December 31, 2023.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Dalateqi
FAW Jiefang New First
Product People's Court
Bai Haitao Energy Automotive 19,899,350.00 instance
liability cases of Inner
Sales Co., Ltd. of retrial
Mongolia
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Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Chengdu
Jilin Branch of Baojinyang Vehicle
Sanguard Parts Co., Ltd., Other Chengdu
Second
Automobile third party: FAW contract Intermediate 18,543,550.66
instance
Insurance Co., Jiefang New dispute cases People's Court
Ltd. Energy Automotive
Sales Co., Ltd.
Jiefang Limited,
Jilin Huaang Changchun
Zheng Siyou, Construction Second
Construction Intermediate 1,494,402.70
Wang Yanqin case instance
Engineering Co., People's Court
Ltd., and Li Jie
Kunshan Haohai Xianning
Automobile Sales Product District People's
Zhang Fei and First
Service Co., Ltd. quality Court in 724,948.00
Bi Shu instance
and China FAW disputes Xianning,
Group Corporation Hubei Province
Handan Handan Huacheng
Yicheng Automobile Trade Fuxing District
Product First
Automobile Co., Ltd. and China People's Court 390,192.70
liability cases instance
Trade Co., FAW Group of Handan
Ltd. Corporation
Lianyungang Suxin
Haizhou
Automobile Sales
Wang Product District People's First
Service Co., Ltd. 150,000.00
Gensheng liability cases Court of instance
and Jiefang
Lianyungang
Limited
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Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
FAW Jiefang
(Qingdao) Jimo District First
Cao Haipeng Labor dispute 110,684.20
Automotive Co., People's Court instance
Ltd.
As of December 31, 2023, the Company has no contingencies other than those mentioned above that
should be disclosed.
(2) Explanation is also required when the Company has no important contingencies to be
disclosed
The Company has no important contingencies to be disclosed.
(3) Other information required by the industry information disclosure guidelines
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the “No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
The sales amount of mortgage sales, financial leases and other modes accounts for more than 10% of
the operating income.
□Applicable Not applicable
The Company's guarantee to dealer
□Applicable Not applicable
XVII. Events after the Balance Sheet Date
1. Profit distribution
Dividends to be
distributed per 10 1.50
shares (CNY)
Dividends per 10 1.50
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shares declared upon
deliberation and
approval (CNY)
The cash dividends of CNY 1.50 (tax inclusive) will be paid for every 10
shares to all shareholders based on the 4,636,485,668 shares, the cash
dividends to be distributed will reach CNY 695,472,850.20 (tax
inclusive), and the remaining undistributed profits will be carried forward
to the next accounting year. The Company does not convert its capital
reserves into share capital.
Profit distribution For any change to the total share capital of the Company due to the equity
scheme incentive plan before the implementation of the distribution plan, the cash
dividend of CNY 1.50 (tax inclusive) will be distributed to all
shareholders per 10 shares based on the total share capital registered on
the date of record when the profit distribution plan is implemented in the
future, and the specific amount will be subject to the actual distribution.
This distribution plan is subject to the review and approval of the 2023
annual shareholders' meeting before implementation.
2. Notes on other events after the balance sheet date
The Company had no events after the balance sheet date to be disclosed as of March 28, 2024.
XVIII. Other Significant Matters
1. Annuity plan
The Company decided to participate in the enterprise annuity plan implemented by FAW Group
from January 1, 2010, and 5 other companies implemented self-defined enterprise annuity plans
according to the Labor Law of the People's Republic of China, the Trust Law of the People's
Republic of China, the Trial Measures for Enterprise Annuity (Order No. 20 of the Ministry of Labor
and Social Security) and other laws and regulations, and in combination with actual situation of the
Company.
Main contents of annuity plan are as follows:
(1) "Enterprise annuity" mentioned in this plan refers to the enterprise supplementary endowment
insurance system voluntarily established by the enterprise and its employees according to national
policies and regulations on the basis of purchasing the basic endowment insurance and fulfilling the
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payment obligation according to law, and is an integral part of the enterprise employee compensation
and welfare system.
(2) Organization, management and supervision: Enterprise representatives and employee
representatives establish the FAW Enterprise Annuity Council (hereinafter referred to as the Annuity
Council) through collective negotiation. The Annuity Council is composed of enterprise and
employee representatives, of which not less than one third are employee representatives. The
Annuity Council, as the trustee of this plan, is responsible for the operation and management of
FAW Group's enterprise annuity fund.
(3) Fund raising and payment methods: The expenses required for enterprise annuity are jointly paid
by the enterprise and employees.
(4) Account management: The enterprise annuity fund implements a full accumulation system and is
managed by personal accounts. At the same time, enterprise accounts are established to collect
unvested rights and interests.
(5) Fund management: The enterprise annuity fund consists of the following items: ① Enterprise's
payment; ② Employees' payment; ③ Investment and operation income. The enterprise annuity fund
is entrusted to the Annuity Council for management. The enterprise and employee representatives
entrust the Company to sign the enterprise annuity fund entrusted management contract with the
Annuity Council through collective negotiation, and entrust the Annuity Council for management
and market-oriented operation of the enterprise annuity fund collected by this plan.
(6) Benefit planning and distribution: The employee's payment and its investment income belong to
the employee; the part of enterprise's payment distributed to the individual account and its
investment income belong to the employee as specified, and the part not belonging to the individual
is transferred to the enterprise account.
(7) Payment method of enterprise annuity: ① For the retired employee and the employee completing
the retirement procedures, the balance of the annuity personal account can be received at one time
(or monthly, in several times or at one time based the balance of the individual account, the
individual income tax burden, etc.); ② For the dead, the balance of the individual account of the
enterprise annuity can be collected by the legal successor at one time; ③ For the overseas residents,
the balance of the personal account of the enterprise annuity may be paid to them at one time
according to their requirements.
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XIX. Notes to Major Items of Parent Company’s Financial Statements
1 Other receivables
Unit: CNY
Item Ending balance Opening balance
Other receivables 219,864.00 224,132.76
Total 219,864.00 224,132.76
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 459,006.26 459,006.26
Total 459,006.26 459,006.26
2) Disclosure by aging
Unit: CNY
Aging Ending book balance Beginning Book Balance
1-2 years 459,006.26
2-3 years 459,006.26
Total 459,006.26 459,006.26
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3) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Book Book
Provision Value Provision Value
Amount Scale Amount Amount Scale Amount
Proportion Proportion
Including:
Provision for
bad debts made 459,006.26 100.00% 239,142.26 52.10% 219,864.00 459,006.26 100.00% 234,873.50 51.17% 224,132.76
by portfolio
Including:
Aging portfolio 459,006.26 100.00% 239,142.26 52.10% 219,864.00 459,006.26 100.00% 234,873.50 51.17% 224,132.76
Total 459,006.26 100.00% 239,142.26 52.10% 219,864.00 459,006.26 100.00% 234,873.50 51.17% 224,132.76
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Bad debt provision made as per portfolio:
Unit: CNY
Ending balance
Name Provision for Bad
Book balance Provision proportion
Debts
Provision for bad
debts made by 459,006.26 239,142.26 52.10%
portfolio
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Expected credit Expected credit
Expected
loss in the loss for the
Provision for Bad Debts Credit Losses Total
duration (credit entire duration
for the Next
impairment not (with credit
12 Months
occurred) impairment)
Balance as at January 01,
234,873.50 234,873.50
2023
Balance on January 1, 2023
in the current period
Provision in the current
4,268.76 4,268.76
period
Balance as at December 31,
239,142.26 239,142.26
2023
Basis for stage division and proportion of bad debt provision
Significant book balance changes occurred in the provision for losses in the current period
□Applicable Not applicable
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4) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening Ending
Category Recovery Charge-off
balance Provision Others balance
or reversal or write-off
Current
234,873.50 4,268.76 239,142.26
account
Total 234,873.50 4,268.76 239,142.26
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
Ending
total ending
Nature of Ending Balance of
Name of Unit Aging balance of
Payment balance Provision for
other
Bad Debts
receivables
Current
Customer 1 459,006.26 2-3 years 100.00% 239,142.26
account
Total 459,006.26 100.00% 239,142.26
2. Long-term equity investment
Unit: CNY
Ending balance Opening balance
Impai Impai
Item rment rment
Book balance Book Value Book balance Book Value
Provi Provi
sion sion
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Investm
ent in 21,109,221,438.3 21,109,221,438.3
21,084,445,613.03 21,084,445,613.03
subsidi 6 6
aries
Investm
ent in
associat
ed
enterpri 4,509,604,357.16 4,509,604,357.16 4,471,059,131.83 4,471,059,131.83
ses and
joint
venture
s
25,580,280,570.1 25,580,280,570.1
Total 25,594,049,970.19 25,594,049,970.19
9 9
(1) Investment in subsidiaries
Unit: CNY
Openin Increase/Decrease in the current
Ending
g period
balance
balance
Opening Ending of
of Additio Impair
Investee balance Reduced balance impair
impair nal ment Othe
(book value) Investmen (book Value) ment
ment Investm Provisio rs
t provisio
provisio ent n
n
n
FAW
Jiefang
21,109,221,4 24,775,82 21,084,445,6
Automo
38.36 5.33 13.03
tive Co.,
Ltd.
21,109,221,4 24,775,82 21,084,445,6
Total
38.36 5.33 13.03
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(2) Investment in associated enterprises and joint ventures
Unit: CNY
Increase/Decrease in the current period
Opening Ending
balance Investment balance
Opening of gains or Adjustment Cash Ending of
Additio Reduce Chang Impairm
Investee balance impairm losses to other dividends balance impairm
nal d es in ent Othe
(book value) ent recognized comprehen and profits (book Value) ent
Investm Investm other Provisio rs
provisio under the sive declared to provisio
ent ent equity n
n equity income pay n
method
I. Joint ventures
II. Associated enterprises
First
Automo
4,270,037,96 350,854,53 283,265,35 4,337,808,75
bile 181,610.33
9.59 0.91 2.38 8.45
Finance
Co., Ltd.
Sanguar
d
Automo -
201,021,162. 1,162,322. 4,835,877.8 171,795,598.
bile 25,552,008.
24 37 7 71
Insuranc 03
e Co.,
Ltd.
4,471,059,13 325,302,52 1,343,932. 288,101,23 4,509,604,35
Subtotal
1.83 2.88 70 0.25 7.16
4,471,059,13 325,302,52 1,343,932. 288,101,23 4,509,604,35
Total
1.83 2.88 70 0.25 7.16
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The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable Not applicable
421
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3. Investment income
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Long-term equity investment
income calculated with cost 2,799,650,000.00
method
Income from long-term equity
investments accounted for 325,302,522.88 364,182,151.72
using the equity method
Total 325,302,522.88 3,163,832,151.72
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
Applicable □Not applicable
Unit: CNY
Item Amount Description
It refers to the net
Profits or losses on disposal of non- gain on disposal
192,669,498.68
current assets of non-current
assets.
Government subsidies included in the
current profit or loss (except those
closely related to the Company’s normal
operations, conforming to the State
546,340,041.28
policies and regulations and enjoyed in
line with the specified standards, and
having a continuous impact on the profit
or loss of the Company)
Reversal of impairment provision for 9,205,923.40 It mainly refers to
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receivables subject to separate the reversal of
impairment test impairment
provision for
receivables
subject to
separate
impairment test.
They mainly refer
Non-operating income and expenses to the net non-
173,374,447.46
other than the above operating income
and expenses
Other losses and profits conforming to Other non-
the definition of non-recurring profit and 100,996,378.33 recurring profits
loss and losses
Less: amount affected by income tax 176,245,495.71
Total 846,340,793.44 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and
loss:
□Applicable Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit and
loss for the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items
□Applicable Not applicable
2. Return on net assets and earnings per share
Earnings per Share
Weighted
Profit for the Reporting Period average return Diluted earnings
Basic earnings per
on equity per share
share (CNY/share)
(CNY/share)
Net profit attributable to ordinary 3.16% 0.1651 0.1651
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shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
-0.35% -0.0180 -0.0180
deduction of non-recurring profit and
loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously
according to the international accounting standards and China accounting standards
□Applicable Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneously
according to foreign accounting standards and China accounting standards
□Applicable Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign
accounting standards shall be given, and where data audited by an overseas audit authority
has been adjusted based on the differences, the name of the overseas institution shall be
indicated.
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