Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
FAW JIEFANG GROUP CO., LTD
Semi-annual Report 2024
August 2024
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Full Text of 2024 Semi-annual Report 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 semi-annual report are authentic, 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 semi-annual report.
Except for the following directors, others attended the board meeting to
review the semi-annual report in person
Names of Positions of
Reasons for not Name of the
Directors not Directors not
Present in Person Trustee
Present in Person Present in Person
Wang Hao Director Work Li Sheng
This semi-annual report involves prospective statements such as future plans,
and does not constitute a substantial commitment of the Company to investors.
Investors and relevant individuals should maintain sufficient risk awareness 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.
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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 Company does not plan to pay cash dividends or bonus shares, or 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 ...............................................8
Section III Management Discussion and Analysis ............................................................ 12
Section IV Corporate Governance ....................................................................................... 35
Section V Environmental and Social Responsibilities ..................................................... 39
Section VI Important Matters ............................................................................................... 54
Section VII Changes in Shares and Shareholders ............................................................. 63
Section VIII Preferred Shares ............................................................................................... 77
Section IX Bonds .................................................................................................................... 78
Section X Financial Report ................................................................................................... 79
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List of Documents for Future Reference
(I) Financial statements were 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).
(II) 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
Refers to FAW JIEFANG GROUP CO., LTD
Jiefang
Jiefang Limited Refers to FAW Jiefang Automotive Co., Ltd.
FAW, FAW Group Refers to CHINA FAW GROUP CO., LTD.
FAW Refers to China FAW Group Corporation Limited
FAW Car Refers to FAW Car Co., Ltd.
FAW Bestune Refers to FAW Besturn Automotive Co., Ltd.
Finance company Refers to First Automobile Finance Co., Ltd.
Board of Directors of FAW JIEFANG GROUP
Board of Directors Refers to
CO., LTD.
Shareholders’ Meeting of FAW JIEFANG
Shareholders’ meeting Refers to
GROUP CO., LTD.
Board of Supervisors of FAW JIEFANG
Board of Supervisors Refers to
GROUP CO., LTD.
Ministry of Finance of the People’s Republic of
Ministry of Finance Refers to
China
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
China Securities Depository
Shenzhen Branch, China Securities Depository
and Clearing Corporation Refers to
and Clearing Corporation Limited
Limited (CSDC)
Company Law of the People’s Republic of
Company Law Refers to
China
Articles of Association Refers to Articles of Association of FAW JIEFANG
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GROUP CO., LTD.
Reporting Period Refers to January 1, 2024 - June 30, 2024
CNY, CNY 10 thousand, CNY
Refers to CNY, CNY 10 thousand, CNY 100 million
100 million
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Section II Company Profile and Main Financial Indicators
I. Company Profile
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on
Shenzhen Stock Exchange
which shares are listed
Chinese name of the
FAW JIEFANG GROUP CO., LTD
Company
Chinese abbreviation
FAW Jiefang
of the Company
English name of the
FAW JIEFANG GROUP CO., LTD
Company
English abbreviation
FAW Jiefang
of the Company
Legal representative
Wu Bilei
of the Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
No. 2259, Dongfeng Street, No. 2259, Dongfeng Street,
Address Changchun Automobile Changchun Automobile Development
Development Zone, Jilin Province Zone, Jilin 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. Other Information
1. Company Contact Information
Whether the registered address, office address and postal code, website and e-mail address of the
Company have changed in the reporting period
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□Applicable Not applicable
The registered address, office address and postal code, website and e-mail address of the Company
have not changed in the reporting period, please refer to the Annual Report 2023 for details.
2. Information Disclosure and Preparation Location
Whether the information disclosure and preparation location have changed in the reporting period
□Applicable Not applicable
There is no change in the name and website of the stock exchange and media where the Company
discloses its semi-annual report, as well as the preparation location of the Company’s semi-annual
report during the reporting period. For details, please refer to the 2023 Annual Report.
3. Other Relevant Data
Whether other relevant data has changed in the reporting period
□Applicable Not applicable
IV. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes No
Increase/Decrease in
This Reporting
Same Period of Last
This reporting period Period over the
Year
Same Period of Last
Year
Operating income (CNY) 35,602,292,639.46 33,014,661,914.13 7.84%
Net profit attributable to
shareholders of the listed 478,251,870.50 401,336,302.35 19.16%
company (CNY)
Net profit attributable to
shareholders of the listed
company after deducting 283,875,823.95 151,966,331.79 86.80%
non-recurring profits and
losses (CNY)
Net cash flows from
4,240,930,055.62 6,714,159,377.47 -36.84%
operating activities (CNY)
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Basic earnings per Share
0.1034 0.0872 18.58%
(CNY/share)
Diluted earnings per Share
0.1034 0.0872 18.58%
(CNY/share)
Weighted average return
1.93% 1.68% Increased by 0.25%
on equity
Increase/Decrease at
the End of This
At the End of This At the End of Last
Reporting Period
Reporting Period Year
over the End of Last
Year
Total assets (CNY) 80,031,759,450.56 65,873,387,927.31 21.49%
Net assets attributable to
shareholders of the listed 24,268,153,399.20 24,486,759,369.40 -0.89%
company (CNY)
V. 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
financial report disclosed according to foreign accounting standards and China accounting
standards.
VI. Items and Amounts of Non-recurring Profit and Loss
Applicable □Not applicable
Unit: CNY
Item Amount Description
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Profits or losses on disposal of non-current
It refers to the net gain on
assets (including the write-off part of the 746,088.82
disposal of non-current assets.
provision for impairment of assets made)
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 regulations and 209,501,338.40
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
Reversal of impairment provision for of impairment provision for
4,480,000.00
receivables subject to separate impairment test receivables subject to separate
impairment test.
They mainly refer to the net
Non-operating income and expenses other than
24,323,682.07 non-operating income and
the above
expenses
Less: amount affected by income tax 44,675,062.74
Total 194,376,046.55
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
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. Main Businesses of the Company in the Reporting Period
(I) Main businesses
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.
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 thousand vehicles. Among them,
the annual production capacity of each manufacturing base is as follows: Changchun, 153 thousand
vehicles; Qingdao, 200 thousand vehicles; Guanghan, 40 thousand vehicles; Liuzhou, 20 thousand
vehicles and Foshan, 5 thousand 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.
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.
(II) Information on the industry to which the Company belongs
In the first half of 2024, the macro-economic growth resumed, with a GDP growth rate of 5%,
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reaching the expected level, and achieving stable consumption growth, a significant decline in real
estate sales and investment, a rebound in export growth rate from the bottom, and a weakening of the
driving force of economic transformation on the commercial vehicle industry. From the view of
historical industry demand and scrapping cycle characteristics, the fluctuation cycle was basically
around 7-8 years, and the industry was in the stage of cycle recovery in 2024. In the first half of 2024,
the overall freight environment remained stable, with a slight increase in road freight turnover, and a
year-on-year increase of 4%. However, the sluggish road freight rates have not yet improved, and the
profitability of car owners and drivers have remained low. Although the phenomenon of vehicles
quantity exceeding cargo transportation needs and excess transportation capacity has been eased to
some extent, the improvement of the substantive situation was limited and remained an important
factor in suppressing the demand for medium and heavy trucks at present.
In the first half of 2024, the demand for medium and heavy trucks was 571 thousand vehicles,
with a year-on-year increase of 4.4%. FAW Jiefang sold 123 thousand medium and heavy trucks,
with a year-on-year increase of 9.4%, accounting for 21.5%, with a year-on-year increase of 1%,
indicating that the sales growth rate of FAW Jiefang was significantly faster than that of the
industry.
In the first half of 2024, due to the impact of low gas prices, accessible refueling, and stable
gas supply, the natural gas type medium and heavy trucks continued the high growth trend in 2023,
with an industry demand of 109 thousand vehicles, and a year-on-year increase of 104.2%. With its
leading advantage in the natural gas market, FAW Jiefang sold 35 thousand natural gas type
medium and heavy trucks in the first half of the year, still maintaining a leading position in the
natural gas market.
Since the policy of comprehensive electrification of vehicles in the public sector has been
vigorously implemented, the proportion of electrification of vehicles used in urban public transport,
environmental sanitation, express mail service, urban logistics and distribution, airports and other
scenarios has been rapidly increased, bringing a variety of opportunities for electrification
substitution for the industry. In the first half of 2024, the demand for new energy type medium and
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heavy truck in the industry was 29 thousand vehicles, with a year-on-year increase of 136.7%. The
quantity of new energy type medium and heavy truck sold by FAW Jiefang was 2 thousand
vehicles, with a year-on-year increase of 260%.
(III) Operation
In the first half of 2024, By adhering to the guidance of the Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era, deeply implementing the spirit of the 20th National
Congress of the Communist Party of China and the 2nd Plenary Session of the 20th Central Committee
of the Communist Party of China, and promoting the study and education of Party discipline in a
high-quality manner, the Company actively implemented its strategic deployment and annual
requirements, closely focused on key tasks, and promoted various work in a solid and effective
manner with anchored leading goals. As of June 30, 2024, the total assets of the Company amounted
to CNY 80.032 billion, with a year-on-year increase of 21.49%, and the net assets attributable to
shareholders of the listed company amounted to CNY 24.268 billion, with a year-on-year decrease of
0.89%. During the reporting period, the operating revenue of the Company reached CNY 35.602
billion, with a year-on-year increase of 7.84%, and the net profit attributable to the parent company
amounted to CNY 478 million, with a year-on-year increase of 19.16%. The total sale of complete
vehicles was 149.1 thousand, with a year-on-year increase of 13.4%, of which 122.9 thousand
vehicles were medium and heavy trucks, with a year-on-year increase of 9.4%; the sale of light trucks
was 26.2 thousand vehicles, with a year-on-year increase of 43.0%; the sale of new energy type was
8.5 thousand vehicles, with a year-on-year increase of 139.8%, showing a trend of leapfrog growth.
Overseas exports reached 35.5 thousand vehicles, with a year-on-year increase of 37.2%, hitting
another record high with high growth.
Unit: CNY 100 million
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Total assets Net assets Operation revenue Net profit attributable to parent company
2023 June 2024 2023 June 2024 Semi-annual data of Semi-annual data of Semi-annual data of Semi-annual data of
2023 2024 2023 2024
In the first half of 2024, the Company has been awarded the “Annual Enterprise of Employee
Benefits in China” and has been successfully selected as one of the “China’s Top 100 ESG (Corporate
Social Responsibility) Pioneer Listed Companies in China” for two consecutive years, with a brand
value exceeding CNY 131.8 billion, ranking first in the industry for 13 consecutive years.
In the first half of 2024, the Company’s key work is as follows:
1. Effective development of leading role of the brand. By solidly promoting the “five
modernizations” of its brand, the Company has vigorously improved the brand structure of its
complete vehicle products, and accelerated the revitalization of its service brand. In addition, through
collaborative efforts in domestic and overseas communication, as well as activities such as the 30 th
anniversary celebration in South Africa, the brand story of FAW Jiefang has attracted widespread
attention from the industry and society, and has won great popular support.
2. Effective implementation of market-leading strategy as a guiding principle. With firm
upholding of the leading advantage of platform products, J7 Pioneer Edition was successfully
unveiled and set a new benchmark for “world-class” high-end heavy trucks. With the release of the
Jiefang “LANTU” hydrogen binary star product, the pace of green transformation has been steadily
accelerated. More than 40 expanded products were launched in an orderly manner to more strongly
support market growth.
3. Fruitful achievement of dual-wheel drive system. The Company has broken through nearly
40 key core technologies, and achieved significant breakthroughs in the “1025” special project. In
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addition, the Company has set up a joint research center with Shell to start the driving test of Starship
truck. The Youth Research Project has been completed and put into service, and innovative
achievements continue to emerge. Deep promotion of management and personnel system reforms:
With the establishment of the Supply and Procurement Department, the deepening of the
manufacturing transformation is started. The Company has laid out its strategic businesses, set up
overseas international companies and post-market companies, and continuously expanded its value
chain and growth chain, achieving initial results in a layered and graded quality operation system.
More than 700 talents of various types have been introduced to effectively meet the demand for talents
in various fields. The key measures such as the “Year of Capability Enhancement” have been solidly
promoted and the total payroll management and salary distribution mechanism have been optimized,
enabling employees more motivated and energetic in their efforts.
4. Impressive results of four major strategies. Focusing on solid foundation, the Company has
made great efforts to vigorously consolidate the advantages of domestic traditional vehicles. In the
dual base of medium and heavy trucks, a coordinated operation mechanism has been established for
pricing and promotion, seizing market opportunities such as NG and large single bridge, and
maintaining sales volume as the top in China. The product strategy of “strengthening advantages,
making up for shortcomings, and seizing opportunities” has been applied for light vehicles, and the
marketing strategies of “taking the initiative” and “rapid expansion” have been implemented to
achieve a dual increase in sales share. The Company has made great efforts in new energy vehicles,
comprehensively pushed forward the layout of complete vehicles and independent assemblies, and
deeply cultivated innovation in typical scenarios and modes, showing a trend of leapfrog growth
continuously. The Company has seized opportunities in terms of overseas exports, focused on the
four major strategies, and applied a combination of deepening reforms, strengthening system
foundation and enhancing capabilities, resulting in record high sales in the same period. By adhering
to the profitability target orientation and strictly controlling expenses, the Company has improved
revenue-generating ability and provided strong support for operations.
5. Solid implementation of seven key works. The Company has implemented strategic
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management methodology, completed the first round of strategic intent and innovation focus
discussions, and focused more on strategic direction, continuously strengthening the role of strategic
leadership. The Company has promoted problem solving in overseas market problems through quality
management, and effectively and stably maintained its quality reputation. The Company has orderly
promoted the construction of more than 30 major IT systems, eliminated nearly 20 isolated islands,
and promoted the application of employee intelligent assistants and styling-assisted design and other
advanced AI technologies, realizing a more effective digital and intelligent transformation.
Procurement resources at each base are controlled in an integrated manner to provide security for
procurement and supply, resulting in 100% assurance rate for procurement resources, and a more
resilient and secure supply chain. The lean and efficient practices have been implemented to provide
strong support for market demand. The improvement of manufacturing technology capability has
been accelerated. The new energy qualifications have been obtained for Liuzhou and Guanghan, the
production line for electric drive axles has reached the standard of production, and the production line
for fuel cell has met the production conditions. The Company has strengthened the capital operation,
maintained the top market value in A-share commercial vehicles, and made significant progress in
the refinancing project approved by the CSRC. The action in terms of safety and environmental
protection remediation and difficulties overcoming has been carried out in a comprehensive manner,
resulting in more sound risk compliance and internal control system, accelerated improvement in
confidentiality management, and gradually enhanced support capacity.
In the second half of the year, with unswervingly upholding and strengthening of the leadership
of the Party, continuous implementation of annual work ideas and effective methods of overcoming
difficulties of the Company, maintenance of strategic focus, enhancement of crisis awareness,
development of the spirit of struggle, and realization of various goals and tasks of party building and
operation throughout the year, the Company will lay a more solid foundation for high-quality
achievements throughout the year and sprinting towards the 14th Five-Year Plan with stronger fighting
spirit, more motivation, and better results.
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II. Analysis of Core Competitiveness
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 promoting 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. In the field of heavy trucks, eight major product platforms, i.e. J7,
J6P, J6V, J6E, Yingtu, JH6, JH5, and Han V2.0, are included. In the field of medium trucks, four
major product platforms, i.e. J6G, J6L, JK6, and Dragon V, are included. In the field of light trucks,
four major product platforms, i.e. Lingtu, Tiger 6G, J6F, Tiger V, are included. In the field of
passenger vehicles, road vehicles, new energy buses, recreational vehicles, etc., are included, and new
energy products achieve full coverage of mainstream scenarios in the market segments. 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 the differentiated product technology advantages in traditional
vehicle systems, such as energy-saving, light weight, high-quality, and low-cost, the leading product
technology advantages such as digital intelligent independent assembly of new energy vehicles,
complete vehicle thermal management and complete vehicle energy management, and the pioneering
product technology advantages such as smart driving of intelligent connected vehicles, Internet of
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Vehicles (IoV) big data and intelligent cockpit. Therefore, the Company 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 200 spare parts dealers
covers more than 230 prefecture-level cities in China, with a coverage rate of 97.5% 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, FAW JIEFANG has successively signed
contracts with Huawei, Knorr-Bremse, ZF, Shell, Volkswagen, China Unicom, JD, PlusAI and other
top enterprises at home and abroad to become strategic partners and establish joint ventures.
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 thousand 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,
increasing investment layout, broadening the channels gradually and expanding overseas influence
of Jiefang brand continuously. With the export of Jiefang brand products to over 80 countries and
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regions such as Southeast Asia, Middle East, Latin America, Africa and Eastern Europe, there are
more than 100 core dealers and nearly 190 service providers in more than 40 countries and regions
around the world. Export products include models such as J7, J6, JH6, and Tiger 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 products: It covers five major product lines of traction, self-dumping, cargo loading,
special purpose and passenger vehicles, including three major technology routes of pure electric, fuel
cell and hybrid. Differentiated combinations have been carried out to form a synergy to achieve full
coverage of mainstream scenarios in the market segments, and to rapidly increase the terminal market
share. 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: complete vehicle architecture, vehicle control
software, and assembly interface, which greatly improves the 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. The independent electric drive
system achieves full coverage of heavy, medium and light trucks, and passenger vehicles. 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.
III. Analysis of Main Business
General
See relevant contents of “I. Main Businesses of the Company in the Reporting Period”.
Year-on-year Changes of Main Financial Data
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Unit: CNY
Same period of
Year-on-year
previous year/at the
This reporting period increase and Reason for Change
beginning of the
decrease
period
Operating
35,602,292,639.46 33,014,661,914.13 7.84%
income
Operating Costs 33,252,419,902.01 30,590,523,778.02 8.70%
Sales expenses 835,467,097.82 774,822,818.33 7.83%
Administrative
739,765,844.96 871,161,062.92 -15.08%
expenses
Financial
-394,776,211.91 -415,663,432.06 5.03%
expenses
Income tax
-154,311,861.89 -203,065,319.73 24.01%
expenses
R&D investment 1,249,527,872.33 1,248,047,703.54 0.12%
Mainly due to the
increase in cash
Net cash flows payments for the
from operating 4,240,930,055.62 6,714,159,377.47 -36.84% purchase of goods
activities and acceptance of
services in the
current period
Net cash flows
from investment -779,303,259.33 -961,691,276.91 18.97%
activities
Mainly due to the
Net cash flows
distribution of cash
from financing -705,678,066.97 -19,709,605.31 -3,480.38%
dividends in the
activities
current period.
Mainly due to the
increase in cash
Net increase in
payments for the
cash and cash 2,755,942,692.24 5,732,768,748.83 -51.93%
purchase of goods
equivalents
and acceptance of
services in the
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current period
Mainly due to the
increase in
commercial
Notes receivable 110,591,432.00 44,626,048.13 147.82%
acceptance bills
held at the end of
the current period.
Mainly due to the
Accounts increase in accounts
11,708,633,140.72 1,989,386,169.77 488.56%
receivable receivable in the
current period.
Mainly due to the
Accounts increase in bank
receivable 8,448,273,887.92 4,878,126,972.73 73.19% acceptance bills
financing held at the end of
the period.
Mainly due to the
decrease in
Prepayments 410,909,476.74 689,621,097.66 -40.42%
prepayments in the
current period.
Mainly due to the
increase in the
Development capitalization
222,837,913.82 109,873,830.59 102.81%
expenditures amount of research
and development in
the current period.
Mainly due to the
increase in notes
Notes payable 25,947,712,941.61 11,769,864,678.11 120.46%
payable in the
current period.
Mainly due to the
Contract decrease in contract
1,055,648,915.82 2,204,692,602.77 -52.12%
liabilities liabilities in the
current period.
Mainly due to the
Employee
increase in
compensation 560,440,000.75 402,039,885.19 39.40%
employee
payable
compensation
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payable in the
current period.
Mainly due to the
Current portion
decrease in lease
of non-current 14,750,421.22 27,171,195.40 -45.71%
liabilities due
liabilities
within one year
Mainly due to the
decrease in contract
Other current
60,702,098.17 214,456,037.00 -71.69% liabilities included
liabilities
in other current
liabilities
Mainly due to the
decrease in treasury
Treasury shares 6,246,851.73 86,131,497.27 -92.75%
shares in the current
period.
Mainly due to the
Other increase in other
comprehensive -3,197,978.68 -8,514,110.10 62.44% comprehensive
incomes income in the
current period.
Mainly due to the
increase in VAT
Other income 353,779,659.32 195,656,370.11 80.82%
plus tax credits in
the current period.
Mainly due to the
decrease in
Credit provision for
-8,593,082.48 -35,480,726.08 75.78%
impairment loss impairment of
receivables in the
current period.
Mainly due to the
increase in
Asset impairment provision for
-76,666,599.19 -35,324,171.95 -117.04%
loss impairment of
inventories in the
current period.
Income from Mainly due to the
746,088.82 98,132,494.11 -99.24%
assets disposal decrease in income
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from disposal of
assets in the current
period.
Mainly due to the
Non-operating increase in non-
28,106,223.95 9,542,486.79 194.54%
income operating income in
the current period.
Mainly due to the
Net after-tax
increase in other
amount of other
5,316,131.42 250,455.89 2,022.58% comprehensive
comprehensive
income in the
income
current period.
Significant changes in the Company’s profit composition or source during the reporting period
□Applicable Not applicable
No significant changes in the Company’s profit composition or source during the reporting period.
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Composition of operating income
Unit: CNY
This reporting period Same Period of Last Year
Year-on-year
Proportion in Proportion in
increase and
Amount Operating Amount Operating
decrease
Income Income
Total operating income 35,602,292,639.46 100.00% 33,014,661,914.13 100.00% 7.84%
By industries
Automobile industry 35,602,292,639.46 100.00% 33,014,661,914.13 100.00% 7.84%
By products
Commercial vehicles 33,555,960,698.74 94.25% 30,708,282,078.93 93.01% 9.27%
Spare parts and others 2,046,331,940.72 5.75% 2,306,379,835.20 6.99% -11.28%
By regions
Northeast China, North China,
Northwest China and Southwest 21,150,886,396.57 59.41% 17,861,002,372.03 54.10% 18.42%
China
East China, South China and
14,451,406,242.89 40.59% 15,153,659,542.10 45.90% -4.63%
Central China
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Information on industries, products or regions accounting for more than 10% of the Company’s
operating income or operating profit
Applicable □Not applicable
Unit: CNY
Increase/ Increase/
Increase/D
Decrease Decrease
ecrease of
of of
Gross
Gross Operating Operatin
Profit Rate
Operating income Operating Costs Profit Income g Cost
over the
Rate over the over the
Same
Same Same
Period of
Period of Period of
Last Year
Last Year Last Year
By industries
Automobil Reduced
34,781,334,502.47 32,601,996,683.55 6.27% 8.22% 8.93%
e industry by 0.60%
By products
Reduced
Vehicle 33,555,960,698.74 31,615,239,737.89 5.78% 9.27% 10.55%
by 1.09%
Spare
Increased
parts and 1,225,373,803.73 986,756,945.66 19.47% -14.36% -25.84%
by 12.47%
others
By regions
Northeast
China,
North
China, Increased
20,663,165,213.34 18,891,170,038.09 8.58% 18.84% 16.65%
Northwest by 1.72%
China and
Southwest
China
East
China,
South Reduced
14,118,169,289.13 13,710,826,645.46 2.89% -4.30% -0.18%
China and by 4.00%
Central
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 reporting period
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□Applicable Not applicable
IV. Analysis of Non-main Business
□Applicable Not applicable
V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
At the End of This Reporting Descri
End of Last Year Increase
Period ption
/Decreas
of
Proportio Proportio e in
Major
Amount n in Total Amount n in Total Proporti Chang
Assets Assets on
es
Monetary
25,609,204,954.65 32.00% 22,920,710,903.12 34.80% -2.80%
capital
Accounts
11,708,633,140.72 14.63% 1,989,386,169.77 3.02% 11.61%
receivable
Contract assets 16,476,441.87 0.02% 17,582,856.82 0.03% -0.01%
Inventories 7,580,283,903.54 9.47% 9,210,971,356.15 13.98% -4.51%
Investment
46,253,781.34 0.06% 47,049,995.53 0.07% -0.01%
properties
Long-term
equity 5,687,858,933.19 7.11% 5,469,591,970.26 8.30% -1.19%
investments
Fixed assets 11,470,284,660.10 14.33% 11,380,286,165.58 17.28% -2.95%
Project under
750,571,700.84 0.94% 816,484,299.18 1.24% -0.30%
construction
Right-of-use
117,251,281.65 0.15% 138,989,886.70 0.21% -0.06%
assets
Contract
1,055,648,915.82 1.32% 2,204,692,602.77 3.35% -2.03%
liabilities
Lease
35,523,520.47 0.04% 30,494,014.13 0.05% -0.01%
liabilities
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2. Main overseas assets
□Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: CNY
Profit
Prov
s and Purc Sale
ision
losses hase s
Accum for
from amo amo
ulated impa Ot
chang unt unt
changes irme her
Beginning es in in in
Item in fair nt in cha Closing balance
balance fair the the
value the nge
value curr curre
through curre s
for the ent nt
equity nt
curren peri peri
peri
t od od
od
period
Financial
assets
1. Investment
in other
480,780,000.00 480,780,000.00
equity
instruments
Total 480,780,000.00 480,780,000.00
Financial
0.00 0.00
liabilities
Content of other changes
Whether the measurement attribution of the Company’s main assets within the Reporting Period
was significantly changed or not
□Yes No
4. Restrictions on asset rights as of the end of the reporting period
For details, please refer to Note 22 “Assets with restricted ownership or use right” in part VII
“Notes to Items in Consolidated Financial Statements” of Section X - Financial Report.
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VI. 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)
4,900,000.00 725,139,697.94 -99.32%
2. Major equity investments acquired in the reporting period
□Applicable Not applicable
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.
VII. Sales of Major Assets and Equity
1. Sale of major assets
□Applicable Not applicable
The Company does not sell major assets in the reporting period.
2. Sale of major equity
□Applicable Not applicable
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VIII. Analysis on Principal 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 thousand
Company Company Registered Operating Operating
Main business Total Assets Net Assets Net Profit
Name Type Capital income Profit
Development,
FAW
manufacturing
Jiefang Subsidiari
and sales of 1,080,301.25 7,557,665.39 1,982,506.38 3,560,229.26 10,339.52 28,203.07
Automotive es
vehicles and
Co., Ltd.
parts
Handling of
financial
business within
First
the Group and
Automobile Joint-stock
other financial 1,000,000.00 16,873,937.20 2,208,124.61 328,189.22 131,240.44 98,619.13
Finance companies
businesses
Co., Ltd.
approved by the
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
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IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks Faced by the Company and Countermeasures
1. Competition risk in the domestic market
The status quo of domestic stock competition has remained unchanged, and the game among
the leading enterprises in the industry around product prices, marketing strategies, financial policies
and other end-sale factors will become more intense. Although environmental control, trade-in,
emission standards and other policy guidances can stimulate the updates, the low road freight rates,
the industry’s low level of operation and other commercial vehicle industry conditions cannot be
improved in the short term, and the competition in the industry may be intensified.
2. Risk of exchange rate fluctuations
Due to the ongoing competition in the domestic heavy truck market, the export of products is
an inevitable trend. In the course of development of international business, due to economic data,
monetary policies, investor confidence and various political factors, the exchange rate between
CNY and currencies commonly used for international settlements may fluctuate, which may have a
certain impact on the Company.
(3) Market structure change risk
With the continuous growth of industrial investment and the active recovery of private
investment, the prices of gasoline and diesel and liquefied natural gas, and the cost of new energy
batteries are changing steadily. Under the influence of policies such as slowing down the real estate
market and fostering new economic growth, the market structure will be further adjusted, and the
Company will face opportunities and challenges brought by changes in market structure. Moreover,
due to changes in market structure, the market share of new energy products will continue to
increase. However, the intensified competition in the new energy market will also bring great risks
to the operation of the Company.
Based on the above risks, the Company has prepared the following solutions:
1. Enhancement of environmental research and market study. The Company will conduct
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Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
market research and risk factor analysis on domestic and international political and economic
environments, pay close attention to national policies and industry dynamics, and adjust business
strategies in a timely manner. It will also establish a sound mechanism for obtaining environmental
and market information, strengthen publicity and promotion, and optimize cost structure, enhancing
product technology level, and responding to market changes in a timely manner.
2. Improvement of product and service capabilities. By closely focusing on new energy and
intelligence and other rapid development fields, the Company will launch new products that meet
market demand, deeply explore user service needs, and improve the service capabilities to enhance
user experience and satisfaction. Through innovation in technologies, concepts, and services, the
Company will continue to enhance its brand image and competitive strength, solidify its market
position in a drastically changing environment, and avoid falling into a vicious cycle of low-level
price war and disorderly competition.
3. Comprehensive development of overseas business system. It is required to promote a high
level of opening up to the outside world, carry out overall arrangement in advance, and make
adequate preparations for diversified exports. Through the increased overseas recognition of
Chinese products and leading advantages in new energy technology, based on the segmentation
characteristics of the target market and user needs, the Company carries out customized product
development to enhance the regional adaptability of products, provide cooperation with the
expansion of overseas marketing networks, and enhance overseas service level to strive for more
overseas space.
4. Improvement for management of foreign exchange positions. By utilizing the foreign
exchange market and exchange rate prediction information, and leveraging the marking-to-market
services of professional institutions for foreign exchange risk, the Company can provides timely
insight into foreign exchange risks, capture advantageous foreign exchange prices, and seize
window periods, resulting in reduction of settlement costs, control of foreign exchange risks, and
improvement of capital returns.
XI. Implementation of the “Improvement of Both Quality and Return” Action Plan
Announcement on Whether the Company Disclosed the “Improvement of Both Quality and Return”
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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 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.
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Through strict implementation of shareholders’ dividend return planning and profit distribution
policy, in combination with the actual situation of the enterprise, the Company has developed a profit
distribution plan 2023, and distributed a cash dividend of CNY 1.50 (including tax) per 10 shares to
all shareholders on the basis of 4,623,863,714 shares, resulting in a total distribution of cash dividends
of CNY 693,579,557.10 (including tax). The remaining undistributed profits were carried forward to
the next accounting year. The Company does not convert its capital reserves into share capital. The
ex-warrants and ex-dividend date for this distribution plan is June 24, 2024.
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Section IV Corporate Governance
I. 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 the Estimated
Amount of Daily Related
Transactions for the Year 2024,
the Proposal on the Estimated
Amount of Financial Business
First
Extraordi with First Automobile Finance
extraordinar
nary Co., Ltd. for the Year 2024, the
y February February
sharehol 85.00% Proposal on the Election of
shareholder 21, 2024 22, 2024
ders’ Deng Weigong as a Non-
s’ meeting
meeting Independent Director of the
of 2024
Company and the Proposal on
the Election of Li Ying as a
Supervisor of the Company
have been deliberated and
adopted
The 2023 Annual Work Report
of the Board of Directors, the
2023 Annual Work Report of
the Board of Supervisors, the
2023 Financial Final Accounts,
the 2023 Annual Reportand Its
Annual Annual Summary, the 2023 Profit
shareholder sharehol April 25, April 26, Distribution Plan, the Proposal
84.45%
s’ meeting ders’ 2024 2024 on Unfulfilling Conditions for
of 2023 meeting 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
35
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Incentive Plan and Repurchase
and Cancellation of Partial
Restricted Shares, the Proposal
on Changing the Registered
Capital of the Company, the
Proposal on Modifying the
Articles of Association, and the
Proposal on the Election of
Wang Hao as a Non-
Independent Director of the
Company have been
deliberated and adopted
The Proposal on Extending the
Validity Period of the
Resolution on the Company’s
2023 Plan for Issuing A-share
to Specific Targets, the
Proposal on Extending the
Authorization Period of the
Second
Extraordi Resolution on Requesting the
Extraordina
nary Shareholders’ Meeting of the
ry June 19, June 20,
sharehol 84.11% Company to Authorize the
Shareholder 2024 2024
ders’ Board of Directors to Handle
s’ Meeting
meeting Specific Matters Related to the
of 2024
Issuance of A-shares to
Specific Objects, and the
Proposal on the Election of
Chen Hua as a Non-
Independent Directors of the
Company have been
deliberated and adopted
2. Preferred shareholders with resumed voting rights request to convene an extraordinary
shareholders’ meeting
□Applicable Not applicable
II. Changes in Directors, Supervisors and Senior Executives of the Company
Applicable □Not applicable
Name Position Type Date Reason
Deng Weigong Director Elected February 21, 2024
36
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Departure
Zhang Guohua Director March 8, 2024 Job changes
from office
Wang Hao Director Elected April 25, 2024
Chen Hua Director Elected June 19, 2024
Chairman of
Departure
Yan Feng Board of January 17, 2024 Personal reasons
from office
Supervisors
Chairman of
Li Ying Board of Elected March 28, 2024
Supervisors
Departure
Ren Ruijie Supervisor March 8, 2024 Job changes
from office
Deputy General
Tian Haifeng Decruitment March 8, 2024 Job changes
Manager
Deputy General
Wang Jianyu Appointed March 28, 2024
Manager
III. Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting
Period
□Applicable Not applicable
The Company does not plan to pay cash dividends or bonus shares, or convert reserves into share
capital in the first half of the year.
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
Applicable □Not applicable
1. Equity incentive
(1) 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 Repurchase and Cancellation of Partial Restricted Shares in Phase I Restricted Share
37
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Incentive Plan, which was deliberated and adopted at the Fourth Extraordinary Shareholders’ Meeting
in 2023. The Company agreed to repurchase and cancel all or part of 512,807 restricted shares that
have been granted to 10 incentive targets but have not been released from the restriction for sales. On
March 28, 2024, the Company published the Announcement on Completion of Repurchase and
Cancellation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(2) 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 deliberated and adopted 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 Partial
Restricted Shares. The Company agreed to repurchase and cancel the restricted shares of 299 objects
failing to fulfill the conditions for releasing the restriction for sales, with a total repurchase quantity
of 12,621,954 shares. On June 15, 2024, the Company published the Announcement on Completion
of Repurchase and Cancellation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn).
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).
2. Implementation of employee stock ownership plan
□Applicable Not applicable
3. Other employee incentives
□Applicable Not applicable
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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 (HJ407-2021),
and other national and industry standards.
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Administrative licensing for environmental protection
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 Validit
(Renewal) Date of y
S/N Name of Unit Pollutant Discharge Permit No.
Pollutant Discharge Period
Permit (Year)
Truck Factory of FAW
1 Jiefang Automotive Co., December 30, 2022 91220101743028725R001R 5
Ltd
Chengdu Branch of
2 FAW Jiefang July 16, 2022 91510114746407720B001V 5
Automotive Co., Ltd.
Sichuan Branch of FAW
3 Jiefang Automotive Co., July 21, 2023 91510681MABQ7AKG4Y001V 5
Ltd.
Transmission Branch
(Transformation
4 Factory) of FAW December 31, 2021 91220101571131661N001Q 5
Jiefang Automotive Co.,
Ltd.
Transmission Branch
(New Axle Factory) of
5 May 21, 2024 91220101571131661N003V 5
FAW Jiefang
Automotive Co., Ltd.
Changchun Intelligent
Bus Branch of FAW
6 January 9, 2023 91220108MA170MRB74001V 5
Jiefang Automotive Co.,
Ltd.
FAW Jiefang (Qingdao)
7 December 29, 2023 91370200163567343M001V 5
Automotive Co., Ltd.
Engine Branch of FAW
8 Jiefang Automotive Co., December 27, 2022 912201017561635719001Q 5
Ltd.
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Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Wuxi Diesel Engine
9 Works of FAW Jiefang October 5, 2021 91320200748159222H001Q 5
Automotive Co., Ltd.
Wuxi Diesel Engine
Huishan Factory of
10 June 19, 2023 91320206330969017N001C 5
FAW Jiefang
Automotive Co., Ltd.
FAW Jiefang Dalian
11 March 14, 2024 91210213717880308K001U 5
Diesel Engine Co., Ltd.
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Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
Types
of Main Names of Numb
Polluta Main er of Enforced
Name of Discharge Total
nts and Pollutants Discharge Disch Distribution of pollutant Total Excessive
Company or concentration Approved
Specifi and Mode arge Discharge Outlets discharge Discharge Discharge
Subsidiary /intensity Discharge
c Specific Outlet standard
Polluta Pollutants s
nts
One for frame,
cab and non-metal
Continuou
coating No
Truck Wastew s or
COD 4 respectively, and 191.31mg/L 800mg/L 58.8171 t 630.104 t excessive
Factory of ater intermitten
one for general discharge
FAW t discharge
domestic sewage
Jiefang
outlet
Automotive
Non- Continuou
Co., Ltd Frame, cab, roof No
Exhaust methane s discharge
71 of non-metallic 4.0066mg/m 120mg/m 5.4718 t 346.1955 t excessive
gas hydrocarb during
coating workshop discharge
on production
No
Chengdu Wastew Intermitten Southeast of the
COD 1 27.5mg/L 500mg/L 0.135 t 21.3 t excessive
Branch of ater t discharge Company
discharge
FAW
Non- Continuou
Jiefang No
Exhaust methane s discharge Roof of coating
Automotive 1 1.48mg/m 60mg/m 5.9316 t 75.91 t excessive
gas hydrocarb during workshop
Co., Ltd. discharge
on production
No
Sichuan Wastew Intermitten Northwest corner
COD 1 45mg/L 500mg/L 0.285 t 40.8469 t excessive
Branch of ater t discharge of the Company
discharge
FAW
Non- Continuou Roof of Painting
Jiefang No
Exhaust methane s discharge Workshop and
Automotive 15 9.071mg/m 60mg/m 6.5784 t 16.5208 t excessive
gas hydrocarb during General Assembly
Co., Ltd. discharge
on production Workshop
Transmissio Wastew COD Intermitten 2 One in the 19mg/L 500mg/L 0.5778 t 10 t No
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n Branch ater t discharge northwest corner excessive
(Transforma of substation one discharge
tion workshop and one
Factory) of in the southwest
FAW corner of
Jiefang substation two
Automotive workshop
Co., Ltd. Four for No. 1
Non- Continuou
workshop and one No
Exhaust methane s discharge
5 for the south side 1.6mg/m 120mg/m 0.2647 t -- excessive
gas hydrocarb during
outside No. 1 discharge
on production
workshop
Two for No. 1,
Transmissio No
Wastew Intermitten No. 2 and No. 3
n Branch COD 6 21mg/L 500mg/L 0.6582 t -- excessive
ater t discharge workshops
(Axle discharge
respectively
Factory) of
8 in No. 1
FAW Non- Continuou
workshop, 7 in No
Jiefang Exhaust methane s discharge
16 No. 2 workshop, 1.61mg/m 120mg/m 6.2124 t -- excessive
Automotive gas hydrocarb during
and 1 in No. 3 discharge
Co., Ltd. on production
workshop
Changchun South gate of No
Wastew Intermitten
Intelligent COD 1 sewage treatment 50mg/L 500mg/L 0.5847 t 4.575 t excessive
ater t discharge
Bus Branch station discharge
of FAW Non- Continuou Roof of coating
No
Jiefang Exhaust methane s discharge and welding
12 3.25mg/m 120mg/m 4.7693 t 49.5 t excessive
Automotive gas hydrocarb during workshop of the
discharge
Co., Ltd. on production Company
COD: COD: COD: COD: 88.79
Continuou Outside the
COD, 53.9mg/L 500mg/L; 6.79 t t; No
FAW Wastew s or sewage treatment
ammonia 6 Ammonia ammonia Ammonia Ammonia excessive
Jiefang ater intermitten station of the
nitrogen nitrogen: nitrogen: nitrogen: nitrogen: 5.11 discharge
(Qingdao) t discharge Company
1.71mg/L 45mg/L 0.207 t t
Automotive
Non- Continuou Roof of each No
Co., Ltd. Exhaust
methane s discharge 87 workshop of the 1.50mg/m 30mg/m 28.15 t 164.98 t excessive
gas
hydrocarb during Company discharge
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on production
Engine
Branch of Non-
No
FAW Exhaust methane Intermitten
3 Workshop roof 0.67mg/m 120mg/m 0.019 t -- excessive
Jiefang gas hydrocarb t discharge
discharge
Automotive on
Co., Ltd.
One for west gate No
Wastew Continuou
COD 3 and two for south 23mg/L 500mg/L 8.13 t 243 t excessive
ater s discharge
gate discharge
Three for
Wuxi Diesel
assembly
Engine
workshop, five for NOx,
Works of Nitrogen
the R&D NOx, 200mg/m
FAW oxide, Continuou NOx, 14.5 NOx, 27.2
Department, two 76mg/m Non- No
Jiefang Exhaust non- s discharge tons tons
13 for QA Non-methane methane excessive
Automotive gas methane during VOCs VOCs
Department, two hydrocarbons hydrocarbo discharge
Co., Ltd. hydrocarb production 0.08 t 1.77 t
for processing , 2.46mg/m ns,
on
workshop and one 60mg/m
for hazardous
waste warehouse
No
Wastew Continuou 1 for the North
Wuxi Diesel COD 1 46mg/m 500mg/m 2.99 t 79.15 t excessive
ater s discharge Gate
Engine discharge
Huishan NOx,
Nitrogen
Factory of NOx, 200mg/m
oxide, Continuou NOx, 14.52 NOx, 26.137
FAW 39mg/m Non- No
Exhaust non- s discharge tons tons
Jiefang 6 Joint workshop Non-methane methane excessive
gas methane during VOCs VOCs
Automotive hydrocarbons hydrocarbo discharge
hydrocarb production 0.12 t 4.546 t
Co., Ltd. , 1.07mg/m ns,
on
60mg/m
FAW COD: COD: COD: COD:
Continuou Outside the
Jiefang COD, 65mg/L 300mg/L 2.67 t 11.398 t No
Wastew s or sewage treatment
Dalian ammonia 1 Ammonia Ammonia Ammonia Ammonia excessive
ater intermitten station of the
Diesel nitrogen nitrogen: nitrogen: nitrogen: nitrogen: discharge
t discharge Company
Engine Co., 11.65mg/L 30mg/L 0.504 t 2.984 t
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Ltd. Nitrogen Nitrogen
Nitrogen NOx, NOx,
oxides: oxides:
oxide, Continuou 170mg/m 240mg/m
Roof of the 1.376 t 15.143 t No
Exhaust non- s discharge Volatile Volatile
5 Company’s Volatile Volatile excessive
gas methane during organic organic
workshop organic organic discharge
hydrocarb production compounds compounds
compounds compounds
on 0.35mg/m 60mg/m
1.516 t 7.547 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 processing capacity of 300 tons/day, and it mainly processes the pre-treatment wastewater of
the frame workshop. ② The 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 wire sewage treatment station has a processing capacity of 240
tons/day and it mainly processes the pre-treatment and painting wastewater of the production line.
The wastewater pre treated by the three sewage stations mentioned above, together with domestic
sewage and other wastewater, is discharged into the FAW Integrated Sewage Treatment Plant. After
meeting the treatment standards, it enters the West Suburb Sewage Treatment Plant in Changchun
City.
(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) 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 50 tons/hour, and it operates stably.
Industrial wastewater is treated by the sewage station and discharged into the West Suburb Sewage
Treatment Plant in Changchun City 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 2,160 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.
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(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
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) All kinds of exhaust gas treatment facilities of the Transmission Branch (Axle Factory) of
FAW Jiefang Automotive Co., Ltd. can operate continuously and stably, and various types of welding
fumes are treated by centralized and mobile dust removal systems before meeting emission standards.
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
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incineration. All welding fumes are discharged after reaching the standard and being treated by a
filter cartridge dust collector.
(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
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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
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.
Investment in environmental governance and protection and payment of environmental
protection taxes
In the first half of 2024, the Company invested over CNY 14 million in various environmental
governance and protection expenses, as well as paid environmental protection taxes.
Environmental self-monitoring plan
All branches and subsidiaries of the Company have prepared self-monitoring plans based on the
requirements of pollutant discharge permits and regulations, and organized qualified monitoring
organizations to conduct environmental monitoring of wastewater, exhaust gas, noise, etc.
according to the plan requirements. The test report for the first half of 2024 shows that all
monitoring indicators meet the requirements of all national emission regulations and standards.
Administrative penalties due to environmental problems in the Reporting Period
Impact on
Name of Production and Rectification
Cause for Results of
Company or Violations Operation of the Measures of
Penalties Penalties
Subsidiary Listed the Company
Company
51
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None None None None None None
Other environmental information that shall be disclosed
All subsidiary companies of the Company have disclosed environmental information in
accordance with the requirements, and have strictly conducted clean production audits in
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”.
Measures taken to reduce carbon emissions in the reporting period and their effects
Applicable □Not applicable
The Company is deeply committed to the battle of energy conservation and carbon reduction,
actively connecting with the government’s preferential energy policies. In the first half of 2024, the
green electricity trading share exceeded 23 million 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 the first half of 2024, more than 200 energy-saving and cost-reducing projects were approved
and implemented, with total annual savings of more than CNY 56 million and 46 thousand t CO2.
Other information related to environmental protection
In the first half of 2024, the Company revised 8 environmental protection management
documents, and refined the identification and evaluation standards for environmental factors, in order
to improve the evaluation process. In addition, the Company also strictly standardized the
“simultaneous design, construction and operation” management of construction projects, in order to
clarify the management standards and spot inspection operation requirements for environmental
protection facilities, and increase the identification of laws and regulations.
In order to enhance the environmental responsibility awareness and work ability of managers
and operators at all levels, the Company and its subsidiaries have developed an environmental
protection training plan and refreshed 9 professional environmental protection training courses, which
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Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
can provide targeted training on important environmental regulations and lay a good foundation for
the development of various work.
In the first half of 2024, the Company organized a series of activities of “Environmental
Protection Publicity Month”, and carefully prepared the Plan of Environmental Protection Publicity
Month Activities for 2024. During the activity month, the Company carried out the activities, such
as the production of promotional posters in the electronic “Environment Day” themed, participation
in the group company’s environmental protection forum to share excellent practice cases, and
initiation of the selection of environmental protection excellent cases. Becaused of the extensive
participation of employees from various organizations, the Company has achieved good publicity
results.
II. Social Responsibility
In the first half of 2024, FAW Jiefang deepened its social responsibility practice to help
comprehensively promote rural revitalization. It is necessary to continue to implement the pairing
and co-construction work of Party building, in order to provide paired assistance to Fengshan
County in Guangxi and Zhenlai County in Jilin, and highlight the construction of beautiful
countryside and industrial assistance. In addition, it is also necessary to continue to assist in the
revitalization and development of the assisted regions. By deepening and expanding consumption
assistance, continuing to carry out activities such as social responsibility week and central
enterprise consumption assistance, it is necessary to broaden the sales channels for agricultural and
sideline products in poverty-stricken areas, and mobilize employees and all sectors of society to
participate in consumption assistance actions, in order to jointly contribute to rural revitalization.
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Section VI Important Matters
I. 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
During the reporting period, there were no commitments made by the actual controllers,
shareholders, related parties, and purchasers of the Company that were fully fulfilled during the
reporting period or were not fully fulfilled by the end of the reporting period.
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. Appointment and Dismissal of Accounting Firm
Has the semi-annual financial report been audited?
□Yes No
The semi-annual report of the Company is not audited.
V. Description of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” of the Accounting Firm in the Reporting Period
□Applicable Not applicable
VI. Description of the Board of Directors on the “Non-standard Audit Report” of the Last
Year
□Applicable Not applicable
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Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
VII. Matters Related to Bankruptcy Reorganization
□Applicable Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.
VIII. Litigation Matters
Major litigation and arbitration matters
□Applicable Not applicable
The Company has no major litigation or arbitration matter in the reporting period.
Other litigation matters
Applicable □Not applicable
Basic Litigation
Progress Implementat
Informati Amount Estimated (Arbitrati
of ion of Date of
on about Involved liabilities on) Disclosur
Litigation Litigation Disclosur
Litigation (CNY 10 formed or Results e Index
(Arbitrati (Arbitration) e
(Arbitrati thousand) not and
on) Judgment
on) Impact
Including
Summary Case not
estimated
of other No closed by the
liabilities Case not
litigation 9,320.29 significan end of the
of CNY closed
not t impact reporting
8.59
reaching period
million
the major
No Judgmented
disclosure Case
2,654.18 No significan or fully
standard closed
t impact executed
IX. Punishment and Rectification
□Applicable Not applicable
The company has no punishment or rectification in the reporting period.
X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable Not applicable
55
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XI. Major Related Transactions
1. Related transactions related to daily operations
Applicable □Not applicable
56
Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Whe
ther
Pricin Settle
Proportio it
Type g Price ment
Content Amount of n to the Approved Exce
Related of Princi of Metho Available
of Related Amount Transaction eds
Transac Correla Relate ple of Relate d of Market Value Date of Disclosure
Related Transaction of Amount the
tion tion d Relate d Relate of Similar Disclosure Index
Transac (CNY 10 Similar (CNY 10 App
Party Trans d Trans d Transactions
tion thousand) Transacti thousand) rove
action Trans action Trans
ons d
action action
Amo
unt
http://ww
w.cninfo.c
om.cn/new
China
The /disclosure
FAW
same /stock?sto
Group Cash
ultimat Sales CNY ckCode=0
Import Sales of Marke Marke + bill January 31,
e of 849,352.12 23.86% 1,475,014 No 8.4935212 00800&or
& goods t price t price settle 2024
controll goods billion gId=gssz0
Export ment
ing 000800&s
Co.,
party jstsBond=f
Ltd.
alse#latest
Announce
ment
Total -- -- 849,352.12 -- 1,475,014 -- -- -- -- --
Details of large sales returns None
Actual performance in the reporting
period, if the total amount of daily
For details about the actual performance of related transactions in the reporting period, please see Item XIV “Related
related transactions to be incurred in
Parties and Related Transactions” in Section X of this report.
the current period is estimated by
category
Reasons for large difference between N/A
57
Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
transaction price and market
reference price
58
Full Text of 2024 Semi-annual Report 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
The Company has no related transaction of joint foreign investment in the reporting period.
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
Amount Incurred in Current Period
Maximum
Total
Daily Deposit Total Deposit Ending
Opening Withdrawal
Related Deposit Interest Amount in the Balance
Correlation Balance (CNY Amount in the
Parties Limit Rate Current Period (CNY 10
10 thousand) Current Period
(CNY 10 Range (CNY 10 thousand)
thousand) (CNY 10
thousand)
thousand)
Associated
enterprise
First of the
Automobil Company, 0.455%-
3,000,000 1,404,657.52 18,260,986.65 18,797,837.24 867,806.93
e Finance the same -1.8%
Co., Ltd. ultimate
controlling
party
Credit Granting or Other Financial Businesses
Total Amount Actual Amount
Related Parties Correlation Business Type (CNY 10 Incurred (CNY
thousand) 10 thousand)
59
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Associated
enterprise of the
First Automobile Other financial
Company, the 920,000 91,495.66
Finance Co., Ltd. businesses
same 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
On January 30, 2024, the 10st Meeting of the 10th Board of Directors of the Company reviewed
and approved the Proposal on Estimated Amount of Daily Related Transactions in 2024 and the
Proposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in
2024, which were reviewed and approved by the First Extraordinary Shareholders’ Meeting of the
Company in 2024.
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
CNINFO
amount of daily related transactions January 31, 2024
(http://www.cninfo.com.cn)
in 2024
Announcement on estimated
amount of financial business with CNINFO
January 31, 2024
First Automobile Finance Co., Ltd. (http://www.cninfo.com.cn)
in 2024
60
Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
XII. 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 19 “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.
3. Entrusted financial management
□Applicable Not applicable
The Company has no entrusted financial management in the reporting period.
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4. Other major contracts
□Applicable Not applicable
The Company has no other major contracts in the reporting period.
XIII. 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 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 Group; 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. On 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. On June 25, 2024, the Company disclosed the
Announcement on Obtaining Registration Approval from the China Securities Regulatory
Commission for Applying to Issue Stocks to Specific Objects and the A-share Issuance Prospectus to
Specific Objects in 2023 (Registration Draft)
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).
XIV. Major Events of Subsidiaries
□Applicable Not applicable
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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
Share
Issue Transfe
Bon
of rred
us
Quantity Percentage New from Others Subtotal Quantity Percentage
shar
Share Accum
es
s ulation
Fund
I. Restricted shares 14,433,543 0.31% -12,959,128 -12,959,128 1,474,415 0.03%
1. Shares held by the state
2. Shares held by the
state-owned legal person
3. Shares held by other
14,433,543 0.31% -12,959,128 -12,959,128 1,474,415 0.03%
domestic enterprises
Including: shares held
by domestic legal person
Shares held by
14,433,543 0.31% -12,959,128 -12,959,128 1,474,415 0.03%
domestic natural person
4. Shares held by foreign
enterprises
Including: shares held
63
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by overseas legal person
Shares held by
overseas natural person
II. Unrestricted shares 4,622,564,932 99.69% -175,633 -175,633 4,622,389,299 99.97%
1. CNY ordinary shares 4,622,564,932 99.69% -175,633 -175,633 4,622,389,299 99.97%
2. Foreign shares listed in
China
3. Foreign shares listed
overseas
4. Others
III. Total number of shares 4,636,998,475 100.00% -13,134,761 -13,134,761 4,623,863,714 100.00%
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Reasons for changes in shares
Applicable □Not applicable
During the reporting period, due to the failure to achieve the performance evaluation targets set
for the third release of restricted stock incentive plan granted for the first time and the second release
of restricted stock incentive plan reserved for grant, as well as the repurchase and cancellation of
incentive recipients due to organizational arrangements, statutory retirement, and personal reasons,
the final total was 13,134,761 shares. After the aforesaid repurchase and cancellation, the total share
capital of the Company was changed to 4,623,863,714 shares.
Approval of share changes
Applicable □Not applicable
(1) On November 20, 2023, the 7th Meeting of the 10th Board of Directors and the 6th Meeting of the
10th Board of Supervisors of the Company approved the Proposal on Repurchasing and Canceling
Some Restricted Stocks in the First Phase of the Restricted Stock Incentive Plan, with a total of
512,807 restricted stocks repurchased and cancelled. On December 6, 2023, the Proposal was
deliberated and approved at the Company’s first Extraordinary Shareholders’ Meeting in 2023.
(2) On March 28, 2024, the 11th Meeting of the 10th Board of Directors and the 10th Meeting of the
10th 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 12,621,954 restricted
shares repurchased and canceled. On April 25, 2024, the proposal was reviewed and approved at the
Company’s 2023 Annual Shareholders’ Meeting.
Transfer of share changes
Applicable □Not applicable
(1) On March 15, 2024, the Company submitted relevant registration materials to CDSC for 512,807
shares involved in equity incentive repurchase and cancellation. On March 27, 2024, CSDC issued
the Confirmation of Securities Transfer Registration to the Company, and the total share capital of
the Company was reduced to 4,636,485,668 shares.
(2) On June 11, 2024, the Company submitted relevant registration materials to CDSC for 12,621,954
shares involved in equity incentive repurchase and cancellation. On June 13, 2024, CSDC issued the
Confirmation of Securities Transfer Registration to the Company, and the total share capital of the
Company was reduced to 4,623,863,714 shares.
Implementation progress of share repurchase
65
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□Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable Not applicable
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 13,134,761 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.
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 Restricted Number of
Name Restricted
Restricted Shares Restricted
of Shares Reason for
Shares at the Increased Shares at Release Date
Shareh Released in Restriction
Beginning of in the the End of
older the Current
the Period Current the Period
Period
Period
The lockup
restrictions can
be lifted
Wu Executive
95,992 58,853 37,139 annually based
Bilei lockup
on 25% of the
total number of
shares held
The lockup
restrictions can
Li Executive
80,966 49,639 31,327 be lifted
Sheng lockup
annually based
on 25% of the
66
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total number of
shares held
After the
expiration of
the resignation
lockup period,
Zhang Resignation
95,967 20,564 75,403 the sales
Guohua lockup
restriction can
be lifted in
accordance with
regulations
The lockup
restrictions can
be lifted
Executive
Ji Yizhi 80,966 49,639 31,327 annually based
lockup
on 25% of the
total number of
shares held
The lockup
restrictions can
be lifted
Wang Executive
65,544 34,217 31,327 annually based
Jianyu lockup
on 25% of the
total number of
shares held
After the
expiration of
the resignation
lockup period,
Tian Resignation
80,966 17,349 63,617 the sales
Haifeng lockup
restriction can
be lifted in
accordance with
regulations
The lockup
restrictions can
be lifted
Wang Executive
80,966 49,639 31,327 annually based
Jianxun lockup
on 25% of the
total number of
shares held
Other Equity The restrictions
13,852,176 12,679,228 1,172,948
core incentive, on sales are
67
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employ etc. lifted in phases
ees of based on the
senior assessment
director objectives and
and the restricted
above share incentive
plan.
Total 14,433,543 12,959,128 0 1,474,415 -- --
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Total Number of Total Number of Shareholders
Shareholders with
Ordinary Shares at 75,824 with Preferred Share withat the 0
Restored Voting Rights
the End of the End of the Reporting Period
Reporting Period
Shareholdings situation of ordinary shareholders holding more than 5% or top 10 ordinary shareholders
(excluding shares lent through securities refinancing).
Numbe Pledge,
Number of Increase r of Marking or
Natur
Ordinary and Restrict Number of Freezing
e of Share
Name of Shares Held at Decrease in ed Unrestricted
Shareholder Share proporti the End of the the Ordinar Ordinary Status Qu
holder on
Reporting Reporting y Shares Held of ant
s Period Period Shares Shares ity
Held
State-
China FAW owne
Group d
66.19% 3,060,649,901 0 0 3,060,649,901 N/A 0
Corporation legal
Limited perso
n
State-
FAW owne
Besturn d
16.97% 784,500,000 0 0 784,500,000 N/A 0
Automotive legal
Co., Ltd. perso
n
Hong Kong Overs
Securities eas
Clearing legal 1.31% 60,631,925 -2,183,034 0 60,631,925 N/A 0
Company perso
Ltd. n
68
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Dome
stic
natura
Lu Min 0.78% 36,096,590 0 0 36,096,590 N/A 0
l
perso
n
Industrial
and
Commercial
Bank of
China
Limited-
Huatai- Other
0.24% 11,117,800 4,677,800 0 11,117,800 N/A 0
PineBridge s
CSI 300
Trading
Open Index
Securities
Investment
Fund
Dome
stic
Duanmu natura
0.23% 10,538,600 6,055,700 0 10,538,600 N/A 0
Xiaoyi l
perso
n
Dome
stic
natura
Chao Guo 0.18% 8,293,558 -372,000 0 8,293,558 N/A 0
l
perso
n
Dome
stic
natura
Li Yan 0.17% 7,660,000 0 0 7,660,000 N/A 0
l
perso
n
China
Constructio
n Bank
Corporation
- E Fund
Other
CSI 300 0.16% 7,240,000 4,944,700 0 7,240,000 N/A 0
s
Trading
Open Index
Securities
Investment
Fund
69
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Zhong Ou
AMC -
Agricultural
Bank of
China -
Zhong Ou Other
0.12% 5,549,500 0 0 5,549,500 N/A 0
& CITIC s
Securities
Financial
Asset
Managemen
t Plan
Bosera
Asset
Managemen
t Co., Ltd. -
Agricultural
Bank of
China - Other
0.12% 5,549,500 0 0 5,549,500 N/A 0
Bosera & s
CITIC
Securities
Financial
Asset
Managemen
t Plan
Strategic investors or
general legal persons
who become the top
10 shareholders with None
ordinary shares due
to the issuance of
new shares
Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a
Description of person acting in concert as specified in the Regulations for the Takeover of Listed
correlation or
Companies. The public disclosure data indicates that the Company does not know
concerted action of
whether there is a correlation between other shareholders of outstanding shares, nor
the above
shareholders whether other shareholders of outstanding shares are persons acting in concert as
specified in the Regulations for the Takeover of Listed Companies.
Description of
involvement of the
above shareholders None
in
entrusting/entrusted
voting rights and
70
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waiving voting rights
Special description
of the existence of
repurchase special None
accounts among the
top 10 shareholders
Shareholding situation of the top 10 ordinary shareholders with unlimited sales conditions (excluding shares
lent through refinancing and executive lockup shares)
Number of Type of Shares
Unrestricted
Ordinary Shares
Name of Shareholder
Held at the End of Type of Shares Quantity
the Reporting
Period
CNY ordinary
China FAW Group Corporation Limited 3,060,649,901 3,060,649,901
shares
CNY ordinary
FAW Besturn Automotive Co., Ltd. 784,500,000 784,500,000
shares
CNY ordinary
Hong Kong Securities Clearing Company Ltd. 60,631,925 60,631,925
shares
CNY ordinary
Lu Min 36,096,590 36,096,590
shares
Industrial and Commercial Bank of China
CNY ordinary
Limited-Huatai-PineBridge CSI 300 Trading 11,117,800 11,117,800
Open Index Securities Investment Fund shares
CNY ordinary
Duanmu Xiaoyi 10,538,600 10,538,600
shares
CNY ordinary
Chao Guo 8,293,558 8,293,558
shares
CNY ordinary
Li Yan 7,660,000 7,660,000
shares
China Construction Bank Corporation - E Fund
CNY ordinary
CSI 300 Trading Open Index Securities 7,240,000 7,240,000
shares
Investment Fund
Zhong Ou AMC - Agricultural Bank of China -
CNY ordinary
Zhong Ou & CITIC Securities Financial Asset 5,549,500 5,549,500
shares
Management Plan
Bosera Asset Management Co., Ltd. - CNY ordinary
5,549,500 5,549,500
Agricultural Bank of China - Bosera & CITIC shares
71
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Securities Financial Asset Management Plan
Description of
correlation or
concerted action
between the top 10 Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a
shareholders with person acting in concert as specified in the Regulations for the Takeover of Listed
unrestricted ordinary
Companies. The public disclosure data indicates that the Company does not know
shares, and between
the top 10 whether there is a correlation between other shareholders of outstanding shares, nor
shareholders with whether other shareholders of outstanding shares are persons acting in concert as
unrestricted ordinary specified in the Regulations for the Takeover of Listed Companies.
shares and the top 10
shareholders with
ordinary shares
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.
Description of Duanmu Xiaoyi, a domestic natural person, holds 10,538,600 shares of the Company
participation in through the guaranteed securities account for customer credit trading of CITIC
financing bonds
Securities. Chao Guo, a domestic natural person, holds 8,274,400 shares of the
business of top 10
shareholders with Company through the guaranteed securities account for customer credit trading of
ordinary shares Minsheng Securities. Li Yan, a domestic natural person, holds 7,660,000 shares of the
Company through the guaranteed securities account for customer credit trading of
Dongguan Securities.
Participation of shareholders holding more than 5% of the shares, top 10 shareholders, and top 10
shareholders with unlimited tradable shares in lending shares through the transfer and financing
business
Applicable □Not applicable
Unit: share
Participation of shareholders holding more than 5% of the shares, top 10 shareholders, and top 10
shareholders with unlimited tradable shares in lending shares through the transfer and financing business
Number of shares Number of shares
Opening ordinary lent at the begining Ending ordinary lent at the ending
account and credit of the period of account and credit of the period of
Name of account shareholding refinancing and not account shareholding refinancing and not
Shareholder yet returned yet returned
(Full Name)
Proport Proporti Proporti Total Proporti
Total Total Total
ion to on to on to Quantit on to
Quantity Quantity Quantity
Total Total Total y Total
72
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Share Share Share Share
Capital Capital Capital Capital
Industrial
and
Commercial
Bank of
China
Limited-
Huatai-
6,440,000 0.14% 568,300 0.01% 11,117,800 0.24% 0 0.00%
PineBridge
CSI 300
Trading
Open Index
Securities
Investment
Fund
China
Constructio
n Bank
Corporation
- E Fund
CSI 300 2,295,300 0.05% 315,400 0.01% 7,240,000 0.16% 87,600 0.00%
Trading
Open Index
Securities
Investment
Fund
Changes in the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares due
to refinancing, lending, and repayment reasons compared to the previous period
□Applicable Not applicable
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
IV. Changes in Shareholding of Directors, Supervisors and Senior Management
Applicable □Not applicable
Empl Number Numbe Number Number Number Number Number
Name Position
oyme of Shares r of of Shares of Shares of Of of
73
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nt Held at Shares Reduced Held at Restricted Restricted Restricte
Statu the Increas in the the End Shares Shares d Shares
s Beginning ed in Current of the Granted Granted Granted
of the the Period Period at the In The at the
Period Current (share) (share) Beginning Current End of
(share) Period of the Period the
(share) Period (shares) Period
(shares) (shares)
Chairm
In-
Wu an of
servi 153,130 77,708 75,422 153,130 -77,708 75,422
Bilei the
ce
Board
Director
and In-
Li
General servi 129,161 65,544 63,617 129,161 -65,544 63,617
Sheng
Manage ce
r
In-
Wang
Director servi
Hao
ce
Depa
Zhang rture
Guohu Director from 153,090 77,687 75,403 153,090 -77,687 75,403
a offic
e
Depa
Bi rture
Wenqu Director from
an offic
e
Liu In-
Yancha Director servi
ng ce
Deng In-
Weigon Director servi
g ce
In-
Chen
Director servi
Hua
ce
74
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Han Indepen In-
Fangmi dent servi
ng director ce
Mao Indepen In-
Zhihon dent servi
g director ce
Dong Indepen In-
Zhongl dent servi
ang director ce
Chairm
an of
In-
Board
Li Ying servi
of
ce
Supervi
sors
Chairm
Depa
an of
rture
Yan Board
from
Feng of
offic
Supervi
e
sors
Employ
In-
Xu ee
servi
Haigen Supervi
ce
sor
Employ
In-
Wang ee
servi
Lijun Supervi
ce
sor
Employ
Duan In-
ee
Yinghu servi
Supervi
i ce
sor
Depa
Employ
rture
Ren ee
from
Ruijie Supervi
offic
sor
e
75
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Executi
ve
Yu In-
Deputy
Changx servi
General
in ce
Manage
r
Deputy
In-
General
Ji Yizhi servi 129,161 65,544 63,617 129,161 -65,544 63,617
Manage
ce
r
Deputy
In-
Wang General
servi 129,161 65,544 63,617 129,161 -65,544 63,617
Jianyu Manage
ce
r
Depa
Deputy
Tian rture
General
Haifen from 129,161 65,544 63,617 129,161 -65,544 63,617
Manage
g offic
r
e
Secretar
y of the
In-
Wang Board
servi 129,161 65,544 63,617 129,161 -65,544 63,617
Jianxun of
ce
Director
s
Total -- -- 952,025 0 483,115 468,910 952,025 -483,115 468,910
Changes in controlling shareholders or actual controllers
Changes in controlling shareholders in the reporting period
□Applicable Not applicable
There is no change in the controlling shareholders of the Company 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.
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Section VIII Preferred Shares
□Applicable Not applicable
The Company has no preferred shares in the reporting period.
77
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Section IX Bonds
□Applicable Not applicable
78
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Section X Financial Report
I. Audit Report
Is the semi-annual report audited
□Yes No
The semi-annual financial report of the Company is not audited.
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.
June 30, 2024
Unit: CNY
Item Ending balance Opening balance
Current assets:
Monetary capital 25,609,204,954.65 22,920,710,903.12
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 110,591,432.00 44,626,048.13
Accounts receivable 11,708,633,140.72 1,989,386,169.77
Accounts receivable financing 8,448,273,887.92 4,878,126,972.73
Prepayments 410,909,476.74 689,621,097.66
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1,176,699,147.26 1,309,376,221.57
Including: interests receivable
Dividends receivable
Financial assets purchased under
agreements to resell
Inventories 7,580,283,903.54 9,210,971,356.15
Including: data resources
Contract assets 16,476,441.87 17,582,856.82
Held-for-sale assets
79
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Current portion of non-current
229,571,360.00 222,664,624.89
assets
Other current assets 733,547,168.89 1,032,089,815.23
Total current assets 56,024,190,913.59 42,315,156,066.07
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 142,564,776.60 132,031,253.27
Long-term equity investments 5,687,858,933.19 5,469,591,970.26
Other equity instruments
480,780,000.00 480,780,000.00
investments
Other non-current financial
assets
Investment properties 46,253,781.34 47,049,995.53
Fixed assets 11,470,284,660.10 11,380,286,165.58
Project under construction 750,571,700.84 816,484,299.18
Productive biological assets
Oil and gas assets
Right-of-use assets 117,251,281.65 138,989,886.70
Intangible assets 2,386,449,982.49 2,438,433,780.65
Including: data resources
Development expenditures 222,837,913.82 109,873,830.59
Including: data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets 2,702,715,506.94 2,544,710,679.48
Other non-current assets
Total non-current assets 24,007,568,536.97 23,558,231,861.24
Total assets 80,031,759,450.56 65,873,387,927.31
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 25,947,712,941.61 11,769,864,678.11
Accounts payable 18,062,160,228.69 16,495,571,442.45
Advance receipts 715,111.97 641,221.46
Contract liabilities 1,055,648,915.82 2,204,692,602.77
Financial assets sold under
agreement to repurchase
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Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 560,440,000.75 402,039,885.19
Taxes payable 106,373,325.65 129,222,373.32
Other payables 5,193,920,530.52 5,305,057,045.18
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
14,750,421.22 27,171,195.40
liabilities
Other current liabilities 60,702,098.17 214,456,037.00
Total current liabilities 51,002,423,574.40 36,548,716,480.88
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities 35,523,520.47 30,494,014.13
Long-term payables
Long-term employee
679,333,932.03 672,957,633.25
compensation payable
Estimated liabilities 709,985,205.49 735,710,304.03
Deferred income 2,960,308,188.38 2,983,678,367.53
Deferred income tax liabilities 376,031,630.59 415,071,758.09
Other non-current liabilities
Total non-current liabilities 4,761,182,476.96 4,837,912,077.03
Total liabilities 55,763,606,051.36 41,386,628,557.91
Owner’s equities:
Share capital 4,623,863,714.00 4,636,485,668.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 10,276,761,678.62 10,343,418,951.73
Less: treasury shares 6,246,851.73 86,131,497.27
Other comprehensive incomes -3,197,978.68 -8,514,110.10
Special reserves 310,114,694.40 319,314,527.85
Surplus reserves 3,090,408,316.87 3,090,408,316.87
General risk provision
Undistributed profits 5,976,449,825.72 6,191,777,512.32
Total equity attributable to owners
24,268,153,399.20 24,486,759,369.40
of the parent company
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Minority equity
Total owners’ equity 24,268,153,399.20 24,486,759,369.40
Total liabilities and owner’s
80,031,759,450.56 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 Ending balance Opening balance
Current assets:
Monetary capital 5,431,357.03 165,157,237.21
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 84,000.00 84,000.00
Other receivables 219,864.00 219,864.00
Including: interests receivable
Dividends receivable
Inventories
Including: data resources
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 412,611.48 261,636.19
Total current assets 6,147,832.51 165,722,737.40
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 25,794,526,170.67 25,594,049,970.19
Other equity instruments
investments
Other non-current financial
assets
Investment properties
Fixed assets
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Project under construction
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Including: data resources
Development expenditures
Including: data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets
Other non-current assets
Total non-current assets 25,794,526,170.67 25,594,049,970.19
Total assets 25,800,674,003.18 25,759,772,707.59
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 264,628.26 250,327.84
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 4,389,523.56 3,368,528.10
Other payables 268,484,598.22 90,343,250.16
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 273,138,750.04 93,962,106.10
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
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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 273,138,750.04 93,962,106.10
Owner’s equities:
Share capital 4,623,863,714.00 4,636,485,668.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 12,104,430,650.56 12,171,693,342.10
Less: treasury shares 6,246,851.73 86,131,497.27
Other comprehensive incomes 6,446,198.58 863,137.93
Special reserves
Surplus reserves 1,859,690,555.97 1,859,690,555.97
Undistributed profits 6,939,350,985.76 7,083,209,394.76
Total owners’ equity 25,527,535,253.14 25,665,810,601.49
Total liabilities and owner’s
25,800,674,003.18 25,759,772,707.59
equities
3. Consolidated profit statement
Unit: CNY
Item Semi-annual 2024 Semi-annual 2023
I. Total operating income 35,602,292,639.46 33,014,661,914.13
Including: operating income 35,602,292,639.46 33,014,661,914.13
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 35,673,829,224.05 33,178,733,500.55
Including: operating cost 33,252,419,902.01 30,590,523,778.02
Interest expense
Handling charges and commission expense
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance liabilities
Policy dividend expenditure
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Reinsurance expenses
Taxes and surcharges 105,369,314.20 109,841,569.80
Sales expenses 835,467,097.82 774,822,818.33
Administrative expenses 739,765,844.96 871,161,062.92
R&D expenses 1,135,583,276.97 1,248,047,703.54
Financial expenses -394,776,211.91 -415,663,432.06
Including: interest expenses 1,431,811.40 2,201,462.83
Interest income 330,521,706.02 332,873,373.32
Add: Other incomes 353,779,659.32 195,656,370.11
Investment income (loss to be listed with “-”) 101,886,844.66 133,617,879.87
Including: income from investment in associates and
213,988,413.65 234,054,148.54
joint 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 “-”) -8,593,082.48 -35,480,726.08
Asset impairment loss (loss to be listed with “-”) -76,666,599.19 -35,324,171.95
Income from assets disposal (loss to be listed with “-”) 746,088.82 98,132,494.11
III. Operating profit (loss to be listed with “-”) 299,616,326.54 192,530,259.64
Add: non-operating income 28,106,223.95 9,542,486.79
Less: non-operating expenses 3,782,541.88 3,801,763.81
IV. Total profit (loss to be listed with “-”) 323,940,008.61 198,270,982.62
Less: income tax expenses -154,311,861.89 -203,065,319.73
V. Net profit (net loss to be listed with “-”) 478,251,870.50 401,336,302.35
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to be listed
478,251,870.50 401,336,302.35
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 shareholders of the parent
478,251,870.50 401,336,302.35
company (net loss to be listed with “-”)
2. Minority profit and loss (net loss to be listed with “-”)
VI. Net after-tax amount of other comprehensive income 5,316,131.42 250,455.89
Net after-tax amount of other comprehensive income
5,316,131.42 250,455.89
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be reclassified
5,679,897.29
into profits or losses
1. Changes arising from re-measurement of the defined
85
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benefit plan
2. Other comprehensive incomes that cannot be transferred
5,679,897.29
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
-363,765.87 250,455.89
into profits or losses
1. Other comprehensive incomes that can be transferred to
-96,836.64 254,420.76
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
-266,929.23 -3,964.87
statements
7. Others
Net after-tax amount of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income 483,568,001.92 401,586,758.24
Total comprehensive income attributable to the owners of
483,568,001.92 401,586,758.24
parent company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.1034 0.0872
(II) Diluted income per share 0.1034 0.0872
In case of business merger under common control in the current period, the net profit realized by the combined
party before the merger 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 Semi-annual 2024 Semi-annual 2023
I. Operating income 0.00 0.00
Less: operating costs -1,270,265.34 1,004,509.14
Taxes and surcharges 41,580.57 92,539.45
Sales expenses
Administrative expenses 826,289.90 609,861.32
R&D expenses
Financial expenses -2,138,135.81 302,108.37
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Including: interest expenses 319,616.24 369,423.14
Interest income 2,458,998.74 67,334.77
Add: Other incomes 57,741.82 344,768.40
Investment income (loss to be listed with “-”) 548,393,139.83 232,563,045.29
Including: income from investment in associates and
194,893,139.83 232,563,045.29
joint 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 “-”)
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 “-”) 549,721,146.99 231,903,304.55
Add: non-operating income 1.11
Less: non-operating expenses
III. Total profit (total loss to be listed with “-”) 549,721,148.10 231,903,304.55
Less: income tax expenses
IV. Net profit (net loss to be listed with “-”) 549,721,148.10 231,903,304.55
(I) Net profit from continuing operations (net loss to be listed
549,721,148.10 231,903,304.55
with “-”)
(II) Net profit from discontinuing operations (net loss to be
listed with “-”)
V. Net after-tax amount of other comprehensive incomes 5,583,060.65 254,420.76
(I) Other comprehensive incomes that cannot be reclassified
5,679,897.29
into profits or losses
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be transferred
5,679,897.29
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
-96,836.64 254,420.76
into profits or losses
1. Other comprehensive incomes that can be transferred to
-96,836.64 254,420.76
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
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6. Translation difference in foreign currency financial
statements
7. Others
VI. Total comprehensive income 555,304,208.75 232,157,725.31
VII. Earnings per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated cash flow statement
Unit: CNY
Item Semi-annual 2024 Semi-annual 2023
I. Cash flows from operating activities:
Cash received from sales of goods and provision
26,571,299,613.10 26,509,677,303.11
of services
Net increase in customer bank deposits and due to
banks and other financial institutions
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 80,428,478.21 324,144,774.70
Other cash received relating to operating activities 766,061,762.08 641,647,622.93
Subtotal of cash inflows from operating activities 27,417,789,853.39 27,475,469,700.74
Cash paid for goods and services 19,330,228,104.51 16,681,742,834.34
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 2,392,662,792.06 2,351,935,403.71
Taxes paid 507,389,936.19 775,864,015.70
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Cash paid for other operating activities 946,578,965.01 951,768,069.52
Subtotal of cash outflows from operating activities 23,176,859,797.77 20,761,310,323.27
Net cash flows from operating activities 4,240,930,055.62 6,714,159,377.47
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment
6,500,530.62 11,728,790.64
income
Net cash received from disposal of fixed assets,
77,910,098.29 3,224,430.67
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Cash received from other investment activities 368,529,711.02
Subtotal of cash inflows from investment activities 84,410,628.91 383,482,932.33
Cash paid to acquire fixed assets, intangible assets
858,813,888.24 798,231,104.91
and other long-term assets
Cash paid to acquire investments 4,900,000.00 546,943,104.33
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment activities 863,713,888.24 1,345,174,209.24
Net cash flows from investment activities -779,303,259.33 -961,691,276.91
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
693,696,364.17
interest repayment
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 11,981,702.80 19,709,605.31
Subtotal of cash outflows from financing activities 705,678,066.97 19,709,605.31
Net cash flows from financing activities -705,678,066.97 -19,709,605.31
IV. Effects from change of exchange rate on cash
-6,037.08 10,253.58
and cash equivalents
V. Net increase in cash and cash equivalents 2,755,942,692.24 5,732,768,748.83
Add: opening balance of cash and cash
22,483,844,553.59 20,697,669,726.18
equivalents
VI. Ending Balance of cash and cash equivalents 25,239,787,245.83 26,430,438,475.01
6. Cash flow statement of parent company
Unit: CNY
Item Semi-annual 2024 Semi-annual 2023
89
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I. Cash flows from operating activities:
Cash received from sales of goods and provision
of services
Tax refunds received
Other cash received relating to operating activities 265,696,548.98 98,280,887.47
Subtotal of cash inflows from operating activities 265,696,548.98 98,280,887.47
Cash paid for goods and services
Cash paid to and on behalf of employees 189,000.00 189,000.00
Taxes paid 0.00 96,728.40
Cash paid for other operating activities 85,037,064.99 97,575,865.50
Subtotal of cash outflows from operating activities 85,226,064.99 97,861,593.90
Net cash flows from operating activities 180,470,483.99 419,293.57
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment
353,500,000.00 4,835,877.87
income
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
Cash received from other investment activities 67,334.77
Subtotal of cash inflows from investment activities 353,500,000.00 4,903,212.64
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 353,500,000.00 4,903,212.64
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
693,696,364.17
interest repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 693,696,364.17
Net cash flows from financing activities -693,696,364.17
IV. Effects from change of exchange rate on cash
0.00
and cash equivalents
V. Net increase in cash and cash equivalents -159,725,880.18 5,322,506.21
Add: opening balance of cash and cash
165,157,237.21 4,235,008.50
equivalents
VI. Ending Balance of cash and cash equivalents 5,431,357.03 9,557,514.71
7. Consolidated statement of changes in owners’ equity
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Amount in the current period
Unit: CNY
Semi-annual 2024
Equity Attributable To Owners of the Parent Company
Other
equity
instrument
s
P
e Mi
P
r Gene nor
Item re ity
p Other ral
Less: treasury Undistributed Other eq Total owners’ equity
fe O
Share capital e Capital reserves comprehensive Special reserves Surplus reserves risk Subtotal uit
rr t shares profits s
t incomes provi y
e h
u sion
d e
a
S r
l
h s
B
ar
o
es
n
d
I.
Ending
Balance
4,636,485,668.00 10,343,418,951.73 86,131,497.27 -8,514,110.10 319,314,527.85 3,090,408,316.87 6,191,777,512.32 24,486,759,369.40 24,486,759,369.40
of the
previou
s year
Add:
changes
in
account
ing
policies
C
orrectio
n of
91
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prior
period
errors
O
thers
II.
Openin
g
Balance 4,636,485,668.00 10,343,418,951.73 86,131,497.27 -8,514,110.10 319,314,527.85 3,090,408,316.87 6,191,777,512.32 24,486,759,369.40 24,486,759,369.40
of the
current
year
III.
Increas
e/decre
ase in
amount
of the
current -12,621,954.00 -66,657,273.11 -79,884,645.54 5,316,131.42 -9,199,833.45 -215,327,686.60 -218,605,970.20 -218,605,970.20
period
(decrea
se to be
listed
with
“-”)
(I) Total
compre
5,316,131.42 478,251,870.50 483,568,001.92 483,568,001.92
hensive
income
(II)
Investe
d and
decreas
-12,621,954.00 -66,657,273.11 -79,884,645.54 605,418.43 605,418.43
ed
capital
of
owners
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1.
Ordinar
y shares
-12,621,954.00 -67,262,691.54 -79,884,645.54 -79,884,645.54
investe
d by
owners
2.
Capital
contrib
uted by
holders
of other
equity
instrum
ents
3.
Amoun
ts of
share-
based
paymen
ts
recorde
d in
owner’s
equity
4.
605,418.43 -79,884,645.54 80,490,063.97 80,490,063.97
Others
(III)
Profit
-693,579,557.10 -693,579,557.10 -693,579,557.10
distribu
tion
1.
Approp
riation
to
surplus
93
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reserve
s
2.
Approp
riation
to
general
risk
reserve
s
3.
Distrib
ution to
owners -693,579,557.10 -693,579,557.10 -693,579,557.10
(or
shareho
lders)
4.
Others
(IV)
Internal
carryov
er of
owners’
equity
1.
Transfe
r from
capital
reserve
to paid-
in
capital
(or
share
capital)
2.
94
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Transfe
r from
surplus
reserve
s to
paid-in
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Retaine
d
earning
s
carried
forward
from
changes
in
defined
benefit
plans
5.
Retaine
d
earning
s
carried
forward
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from
other
compre
hensive
income
6.
Others
(V)
Special
-9,199,833.45 -9,199,833.45 -9,199,833.45
reserve
s
1.
Approp
riation
6,016,604.46 6,016,604.46 6,016,604.46
in the
current
period
2. Use
in the
-15,216,437.91 -15,216,437.91 -15,216,437.91
current
period
(VI)
Others
IV.
Ending
Balance
4,623,863,714.00 10,276,761,678.62 6,246,851.73 -3,197,978.68 310,114,694.40 3,090,408,316.87 5,976,449,825.72 24,268,153,399.20 24,268,153,399.20
of the
current
period
Amount of the previous year
Unit: CNY
Semi-annual 2023
Equity Attributable To Owners of the Parent Company Mino
Item
Other Other Gene rity Total owners’ equity
Share capital Capital reserves Less: treasury Special reserves Surplus reserves Undistributed Other Subtotal
equity comprehensive ral equit
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instrumen shares incomes risk profits s y
ts provi
sion
P
r P
e e
f r
e p
O
r e
t
r t
h
e u
e
d a
r
S l
s
h B
a o
r n
e d
s
I.
Ending
Balance
4,651,965,655.00 10,451,088,236.74 267,837,184.11 -5,399,120.81 370,420,291.86 3,058,249,602.44 5,460,939,601.36 23,719,427,082.48 23,719,427,082.48
of the
previou
s year
Add:
changes
in
account
ing
policies
C
orrectio
n of
prior
period
errors
O
thers
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II.
Openin
g
Balance 4,651,965,655.00 10,451,088,236.74 267,837,184.11 -5,399,120.81 370,420,291.86 3,058,249,602.44 5,460,939,601.36 23,719,427,082.48 23,719,427,082.48
of the
current
year
III.
Increas
e/decre
ase in
amount
of the
current -14,633,325.00 -70,430,027.93 -92,539,863.27 250,455.89 -1,450,331.71 401,336,302.35 407,612,936.87 407,612,936.87
period
(decrea
se to be
listed
with
“-”)
(I) Total
compre
250,455.89 401,336,302.35 401,586,758.24 401,586,758.24
hensive
income
(II)
Investe
d and
decreas
-14,633,325.00 -70,430,027.93 -92,539,863.27 7,476,510.34 7,476,510.34
ed
capital
of
owners
1.
Ordinar
y shares -14,633,325.00 -77,906,538.27 -92,539,863.27 -92,539,863.27
investe
d by
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owners
2.
Capital
contrib
uted by
holders
of other
equity
instrum
ents
3.
Amoun
ts of
share-
based
paymen 7,500,283.02 7,500,283.02 7,500,283.02
ts
recorde
d in
owner’s
equity
4.
-23,772.68 -92,539,863.27 92,516,090.59 92,516,090.59
Others
(III)
Profit
distribu
tion
1.
Approp
riation
to
surplus
reserve
s
2.
Approp
riation
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to
general
risk
reserve
s
3.
Distrib
ution to
owners
(or
shareho
lders)
4.
Others
(IV)
Internal
carryov
er of
owners’
equity
1.
Transfe
r from
capital
reserve
to paid-
in
capital
(or
share
capital)
2.
Transfe
r from
surplus
reserve
s to
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paid-in
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Retaine
d
earning
s
carried
forward
from
changes
in
defined
benefit
plans
5.
Retaine
d
earning
s
carried
forward
from
other
compre
hensive
income
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6.
Others
(V)
Special
-1,450,331.71 -1,450,331.71 -1,450,331.71
reserve
s
1.
Approp
riation
15,046,812.40 15,046,812.40 15,046,812.40
in the
current
period
2. Use
in the
-16,497,144.11 -16,497,144.11 -16,497,144.11
current
period
(VI)
Others
IV.
Ending
Balance
4,637,332,330.00 10,380,658,208.81 175,297,320.84 -5,148,664.92 368,969,960.15 3,058,249,602.44 5,862,275,903.71 24,127,040,019.35 24,127,040,019.35
of the
current
period
8. Statement of Changes in Owners’ Equity of Parent Company
Amount in the current period
Unit: CNY
Semi-annual 2024
Other equity
Specia
instruments Other Ot
Item Less: treasury l Undistributed
Share capital Pr Pe Capital reserves comprehensiv Surplus reserves he Total owners’ equity
Ot shares reserv profits
ef rp e incomes rs
he es
err et
102
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ed ua rs
Sh l
ar B
es on
d
I. Ending Balance
4,636,485,668.00 12,171,693,342.10 86,131,497.27 863,137.93 1,859,690,555.97 7,083,209,394.76 25,665,810,601.49
of the previous year
Add: changes in
accounting policies
Correction of prior
period errors
Others
II. Opening Balance
4,636,485,668.00 12,171,693,342.10 86,131,497.27 863,137.93 1,859,690,555.97 7,083,209,394.76 25,665,810,601.49
of the current year
III.
Increase/decrease in
amount of the
-12,621,954.00 -67,262,691.54 -79,884,645.54 5,583,060.65 -143,858,409.00 -138,275,348.35
current period
(decrease to be
listed with “-”)
(I) Total
comprehensive 5,583,060.65 549,721,148.10 555,304,208.75
income
(II) Invested and
decreased capital of -12,621,954.00 -67,262,691.54 -79,884,645.54
owners
1. Ordinary shares
-12,621,954.00 -67,262,691.54 -79,884,645.54
invested by owners
2. Capital
contributed by
holders of other
equity instruments
3. Amounts of
share-based
payments recorded
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in owner’s equity
4. Others -79,884,645.54 79,884,645.54
(III) Profit
-693,579,557.10 -693,579,557.10
distribution
1. Appropriation to
surplus reserves
2. Distribution to
owners (or -693,579,557.10 -693,579,557.10
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
4. Retained earnings
carried forward
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
income
6. Others
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(V) Special reserves
1. Appropriation in
the current period
2. Use in the current
period
(VI) Others
IV. Ending Balance
4,623,863,714.00 12,104,430,650.56 6,246,851.73 6,446,198.58 1,859,690,555.97 6,939,350,985.76 25,527,535,253.14
of the current period
Amount of the previous year
Unit: CNY
Semi-annual 2023
Other equity
instruments
Pe
Pr Specia
rp Other Ot
Item ef Less: treasury l Undistributed
Share capital et Capital reserves comprehensiv Surplus reserves he Total owners’ equity
err Ot shares reserv profits
ua e incomes rs
ed he es
l
Sh rs
B
ar
on
es
d
I. Ending Balance
4,651,965,655.00 12,278,939,213.88 267,837,184.11 -480,794.77 1,827,531,841.54 6,793,780,964.90 25,283,899,696.44
of the previous year
Add: changes
in accounting
policies
Correctio
n of prior period
errors
Others
II. Opening Balance
4,651,965,655.00 12,278,939,213.88 267,837,184.11 -480,794.77 1,827,531,841.54 6,793,780,964.90 25,283,899,696.44
of the current year
III. -14,633,325.00 -77,906,538.27 -92,539,863.27 254,420.76 231,903,304.55 232,157,725.31
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Increase/decrease in
amount of the
current period
(decrease to be
listed with “-”)
(I) Total
comprehensive 254,420.76 231,903,304.55 232,157,725.31
income
(II) Invested and
decreased capital of -14,633,325.00 -77,906,538.27 -92,539,863.27 0.00
owners
1. Ordinary shares
-14,633,325.00 -77,906,538.27 -92,539,863.27
invested by owners
2. Capital
contributed by
holders of other
equity instruments
3. Amounts of
share-based
payments recorded
in owner’s equity
4. Others -92,539,863.27 92,539,863.27
(III) Profit
distribution
1. Appropriation to
surplus reserves
2. Distribution to
owners (or
shareholders)
3. Others
(IV) Internal
carryover of
owners’ equity
1. Transfer from
capital reserve to
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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
4. Retained earnings
carried forward
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
income
6. Others
(V) Special reserves
1. Appropriation in
the current period
2. Use in the current
period
(VI) Others
IV. Ending Balance
4,637,332,330.00 12,201,032,675.61 175,297,320.84 -226,374.01 1,827,531,841.54 7,025,684,269.45 25,516,057,421.75
of the current 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 TGS [1997] No. 55 Document of the State Commission for Restructuring the Economic
Systems in 1997 and established exclusively by CHINA FAW GROUP CO., LTD. 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 FAW as its capital contribution, 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 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
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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 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 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, and reviewed and approved 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 at a
price of CNY 6.39/share from 11 employees who are no longer qualified as incentive objects. 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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Full Text of 2024 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
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 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
110
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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.
On March 28, 2024, 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 11th Meeting of the 10th Board of Directors and the 10th Meeting
of the 10th Board of Supervisors. The participants at the meeting agreed to repurchase and cancel all or some
restricted shares granted to 299 incentive objects but not yet released, totaling 12,621,954 shares, and the registered
capital of the Company was changed to CNY 4,623,863,714. This change was verified according to the Capital
Verification Report (XYZH/2024CCAA2B0173) issued by ShineWing Accounting Firm (special general
partnership). On June 15, 2024, the Company disclosed the Announcement on Completion of Repurchase and
Cancellation of Some Restricted Shares.
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
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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).
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 August 29, 2023.
2. Scope of consolidated financial statements
During the reporting period, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in the
scope of consolidation. For details, please refer to Section X Financial Report 10, Equity in Other Entities.
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:
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The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalization
conditions of R&D expenses and income recognition policies according to its own production and operation
characteristics. For specific accounting policies, please see 21, 23 and 30 in V “Significant Accounting Policies
and Accounting Estimates” in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprises
This financial statement complies with the requirements of the Enterprise Accounting Standards and truthfully and
completely reflects the consolidated and financial position of the Company as of June 30, 2024, as well as the
consolidated and operating results and cash flows of the Company for the first half of 2024.
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 debts 10% of the absolute value of net profit or 10% of
by individual item similar business
Write-off of significant receivables in the current 10% of the absolute value of net profit or 10% of
period similar business
Significant changes in the book value of contractual 10% of the absolute value of net profit or 10% of
assets similar business
10% of the absolute value of net profit or 10% of
Major projects under construction
similar business
10% of the absolute value of net profit or 10% of
Significant capitalized R&D projects
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.
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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 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.
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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]
(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.
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.
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(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.
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;
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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.
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.
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.
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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.
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
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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.
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.
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.
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(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 36 “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 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.
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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.
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
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the number of days overdue from the credit expiration date.
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.
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
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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.
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
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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 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
For determination methods and accounting methods of expected credit losses of 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.
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.
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(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.
(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.
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(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.
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.
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
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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.
(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
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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.
(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 36 “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 36 “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.
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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.
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 Annual
Category Depreciation Period Residual Rate
Method Depreciation Rate
Houses and Straight-line
20 years 3-5 4.85-4.75
Buildings 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
Electronic Straight-line
3 years 0-5 33.33-31.67
equipment 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
The 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.
(3) For the impairment test method and provision for impairment of fixed assets, please refer to 36 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.
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(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 36 “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.
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
5-10 years Straight-line method
technology
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.
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For the method of provision for asset impairment of the intangible assets, refer to 36 “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.
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-
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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 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.
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.
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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, 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
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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.
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
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assets of the defined benefit plan” in relevant employee compensation costs are included in current profits and losses
or relevant asset costs.
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. 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.
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(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, 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
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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 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 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
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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.
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.
Similar businesses adopt different operating models involving different revenue recognition methods and
measurement methods: None
31. 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.
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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.
32. 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.
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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 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.
33. 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);
(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
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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:
(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.
34. 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.
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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 36 “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 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 thousand.
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
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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.
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
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.
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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.
35. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
□Applicable Not applicable
(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 2024
□Applicable Not applicable
36. 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.
The 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
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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.
(2) 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% will 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
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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 depreciation of the same amount. The fixed assets will no longer be depreciated in
subsequent periods.
(3) 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.
(4) 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.
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
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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
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.
(5) Right-of-use assets
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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, 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 36
“Others” in V “Significant Accounting Policies and Accounting Estimates” of Section X - Financial Report.
(6) 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.
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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.
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 applicable tax rate
VAT 13%, 9%, 6%, 5%
and then deducting input tax allowed to be deducted for
the current period)
Urban maintenance
Turnover tax actually paid 7%, 5%
and construction tax
Corporate income
Taxable income 25%
tax
Education
Turnover tax actually paid 3%
surcharges
Local educational
Turnover tax actually paid 2%
surcharges
Land use tax Land use area CNY 9/m2, CNY 14/m2, 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
The Company 25%
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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 Automotive Sales Co., Ltd. 25%
FAW Jiefang Uni-D (Tianjin) Technology Industry
25%
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
Item Ending balance Opening balance
Bank deposit 16,908,983,571.44 8,849,319,921.20
Other monetary capital 22,152,057.29 24,815,735.14
Deposit in finance companies 8,678,069,325.92 14,046,575,246.78
Total 25,609,204,954.65 22,920,710,903.12
Including: total amount deposited
7,721,619.78 11,941,864.29
abroad
Other description
Details of restricted monetary capital are as follows: Unit: CNY
Item Ending balance Opening balance
153
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Security deposit for three types of
28,321,219.94 27,839,503.40
personnel
Housing maintenance fund 22,152,057.29 22,103,193.44
Court freezing 725,230.81
Total 50,473,277.23 50,667,927.65
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
Item Ending balance Opening balance
Commercial acceptance notes 110,591,432.00 44,626,048.13
Total 110,591,432.00 44,626,048.13
154
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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 Provisi Provisi
Book Value Book Value
Percentag on Percentag on
Amount Amount Amount Amount
e proport e proport
ion ion
Includin
g:
Notes
receivable
with
provision 110,785,000.00 100.00% 193,568.00 0.17% 110,591,432.00 44,841,286.30 100.00% 215,238.17 0.48% 44,626,048.13
for bad
debts by
portfolio
Includin
g:
Commerci
al
110,785,000.00 100.00% 193,568.00 0.17% 110,591,432.00 44,841,286.30 100.00% 215,238.17 0.48% 44,626,048.13
acceptanc
e bill
Total 110,785,000.00 100.00% 193,568.00 0.17% 110,591,432.00 44,841,286.30 100.00% 215,238.17 0.48% 44,626,048.13
Category name of provision for bad debt reserve by combination:
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
155
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Within 1 year 110,785,000.00 193,568.00 0.17%
Total 110,785,000.00 193,568.00
Description of the basis for determining this portfolio:
156
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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 credit loss Expected credit loss
Provision for Bad Debts Expected Credit Total
in the duration for the entire
Losses for the
(credit impairment duration (with
Next 12 Months
not occurred) credit impairment)
Balance as at January 1,
215,238.17 215,238.17
2024
Balance on January 1,
2024 in the current
period
Provision in the current
-21,670.17 -21,670.17
period
Balance as at June 30,
193,568.00 193,568.00
2024
Basis for stage division and proportion of bad debt provision
Explanation of significant changes in the book balance of accounts receivable with changes in loss provisions in
the current period:
(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 or Write- Ending balance
balance Provision Others
reversal off
Commercial
215,238.17 -21,670.17 193,568.00
acceptance bill
Total 215,238.17 -21,670.17 193,568.00
Important provision for bad debts recovered or reversed in the current period:
□Applicable Not applicable
3. Accounts receivable
(1) Disclosure by aging
Unit: CNY
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 11,601,111,284.82 1,841,405,361.88
Including: 0-6 months 11,412,392,138.61 1,761,474,596.90
7-12 months 188,719,146.21 79,930,764.98
1-2 years 46,137,240.71 61,551,354.54
2-3 years 127,524,339.01 121,453,806.43
157
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Over 3 years 133,000,637.42 137,477,637.42
3-4 years 36,423,000.00 44,736,900.00
4-5 years 4,291,899.94 454,999.94
Over 5 years 92,285,737.48 92,285,737.48
Total 11,907,773,501.96 2,161,888,160.27
158
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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
Percentag Provision Book Value Percentag Provision Book Value
Amount Amount Amount Amount
e proportion e proportion
Accounts
receivable
with
provision
85,331,549.22 0.72% 85,331,549.22 100.00% 0.00 89,811,549.22 4.15% 89,811,549.22 100.00% 0.00
for bad
debts on an
individual
basis
Including
:
Accounts
receivable
with
provision 11,822,441,952.74 99.28% 113,808,812.02 0.96% 11,708,633,140.72 2,072,076,611.05 95.85% 82,690,441.28 3.99% 1,989,386,169.77
for bad
debts by
portfolio
Including
:
Total 11,907,773,501.96 100.00% 199,140,361.24 1.67% 11,708,633,140.72 2,161,888,160.27 100.00% 172,501,990.50 7.98% 1,989,386,169.77
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Category name for provision for bad debts by individual item:
Unit: CNY
Opening balance Ending balance
Name Reasons
Provision for Provision for Provision
Book balance Book balance for
Bad Debts Bad Debts proportion
Provision
It is
highly
Jiangsu Xinrui New probable
Energy Vehicle that the
37,612,001.70 37,612,001.70 37,612,001.70 37,612,001.70 100.00%
Technology Co., amounts
Ltd. will not
be
recovered
It is
highly
probable
Zhejiang Hanglun
that the
Ligang Trading Co., 8,581,536.83 8,581,536.83 8,581,536.83 8,581,536.83 100.00%
amounts
Ltd.
will not
be
recovered
It is
highly
Putian New Energy probable
Automotive that the
8,156,900.00 8,156,900.00 3,676,900.00 3,676,900.00 100.00%
(Shandong) Co., amounts
Ltd. will not
be
recovered
It is
highly
probable
Dalian Qingfeng that the
8,043,264.87 8,043,264.87 8,043,264.87 8,043,264.87 100.00%
Bus Co., Ltd. amounts
will not
be
recovered
It is
highly
Beijing Hotan probable
Automobile that the
7,436,520.00 7,436,520.00 7,436,520.00 7,436,520.00 100.00%
Modification Co., amounts
Ltd. will not
be
recovered
Changchun Xiongtu It is
6,230,500.00 6,230,500.00 6,230,500.00 6,230,500.00 100.00%
New Energy Vehicle highly
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Co., Ltd. probable
that the
amounts
will not
be
recovered
It is
highly
Zhonghe Shunyang probable
Supply Chain that the
5,643,600.00 5,643,600.00 5,643,600.00 5,643,600.00 100.00%
Management (Jilin) amounts
Co., Ltd. will not
be
recovered
It is
highly
probable
Shuozhou Jinsheng
that the
Automobile Trading 1,822,961.43 1,822,961.43 1,822,961.43 1,822,961.43 100.00%
amounts
Co., Ltd.
will not
be
recovered
It is
highly
probable
FAW Jingye Engine that the
1,820,957.23 1,820,957.23 1,820,957.23 1,820,957.23 100.00%
Co., Ltd. amounts
will not
be
recovered
It is
highly
probable
Xinjiang Jingyang
that the
Optoelectronic Co., 1,179,590.41 1,179,590.41 1,179,590.41 1,179,590.41 100.00%
amounts
Ltd.
will not
be
recovered
It is
highly
probable
Yulin Jiayu Jiefang
that the
Automobile Sales 971,012.59 971,012.59 971,012.59 971,012.59 100.00%
amounts
Co., Ltd.
will not
be
recovered
Shenyang Jinbei It is
Vehicle 889,279.05 889,279.05 889,279.05 889,279.05 100.00% highly
Manufacturing Co., probable
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Ltd. that the
amounts
will not
be
recovered
It is
highly
probable
Dalian Baofeng
that the
Automobile Sales 496,200.00 496,200.00 496,200.00 496,200.00 100.00%
amounts
Co., Ltd.
will not
be
recovered
It is
highly
probable
Jilin Zhuzhan
that the
Automobile Trading 484,400.00 484,400.00 484,400.00 484,400.00 100.00%
amounts
Co., Ltd.
will not
be
recovered
It is
highly
probable
Liangshan Huatai that the
349,190.00 349,190.00 349,190.00 349,190.00 100.00%
Trading Co., Ltd. amounts
will not
be
recovered
It is
highly
probable
Zhejiang Baoding
that the
Automobile Sales 80,035.12 80,035.12 80,035.12 80,035.12 100.00%
amounts
Co., Ltd.
will not
be
recovered
It is
highly
probable
Yancheng Zhongwei that the
13,599.99 13,599.99 13,599.99 13,599.99 100.00%
Bus Co., Ltd. amounts
will not
be
recovered
Total 89,811,549.22 89,811,549.22 85,331,549.22 85,331,549.22
Category name of provision for bad debt reserve by combination:
Unit: CNY
162
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Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 11,601,251,660.16 36,483,173.47 0.31%
1-2 years 46,286,880.31 4,873,137.07 10.53%
2-3 years 127,527,339.01 36,002,428.22 28.23%
3-4 years 36,420,000.00 25,494,000.00 70.00%
Over 4 years 10,956,073.26 10,956,073.26 100.00%
Total 11,822,441,952.74 113,808,812.02
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
Stage I Stage II Stage III
Provision for Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with
12 Months
not occurred) credit impairment)
Balance as at
5,230,492.48 77,459,948.80 89,811,549.22 172,501,990.50
January 1, 2024
Balance on January
1, 2024 in the
current period
Provision in the
31,252,680.99 -134,310.25 31,118,370.74
current period
Reversal in the
4,480,000.00 4,480,000.00
Current Period
Balance as at June
36,483,173.47 77,325,638.55 85,331,549.22 199,140,361.24
30, 2024
The basis for dividing each stage and the provision ratio for bad debts: In the first and second stages, bad debts are
provisioned based on the aging, with provision ratios of 0.31% for less than 1 year, 10.53% for 1-2 years, 28.23%
for 2-3 years, 70.00% for 3-4 years, 100% for more than 4 years, and 100% for the third stage.
Explanation of significant changes in the book balance of accounts receivable with changes in loss provisions in
the current period:
(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
Category Opening balance Recovery or Write Other Ending balance
Provision
reversal -off s
Accounts
172,501,990.50 31,118,370.74 4,480,000.00 199,140,361.24
receivable
163
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Total 172,501,990.50 31,118,370.74 4,480,000.00 199,140,361.24
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Basis of
determining the
proportion of
Amount Recovered Reason for
Name of Unit Recovery Method provision for
or Reversed reversal
original bad
debts and its
rationality
Putian New Energy
Automotive Recovery of Bank transfers and bank Provision by
4,480,000.00
(Shandong) Co., amounts due acceptance bills individual item
Ltd.
Total 4,480,000.00
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: CNY
Ending balance
Proportion in
of bad debt
total ending
provision for
Ending Ending balance of balance of
Ending Balance of accounts
balance of accounts receivable accounts
Name of Unit Accounts receivable and
contractual and contractual receivable
Receivable impairment
assets assets and
provision for
contractual
contractual
assets
assets
China FAW Group
Import & Export 7,446,827,018.24 7,446,827,018.24 62.45% 21,870,950.49
Co., Ltd.
Jiefang Times New
Energy Technology 801,428,696.29 801,428,696.29 6.72% 2,133,786.12
Co., Ltd.
Customer 1 135,543,758.77 135,543,758.77 1.14% 650,610.04
Customer 2 133,348,265.55 133,348,265.55 1.12% 640,071.67
Customer 3 120,546,009.26 120,546,009.26 1.01% 578,620.85
Total 8,637,693,748.11 8,637,693,748.11 72.44% 25,874,039.17
4. Contract assets
(1) Contractual assets
Unit: CNY
Ending balance Opening balance
Item Provision for Provision for
Book balance Book Value Book balance Book Value
Bad Debts Bad Debts
164
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Contract
17,304,189.41 827,747.54 16,476,441.87 18,023,563.08 440,706.26 17,582,856.82
assets
Total 17,304,189.41 827,747.54 16,476,441.87 18,023,563.08 440,706.26 17,582,856.82
165
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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 Provisi Provisi
Book Value Book Value
Percentag on Percentag on
Amount Amount Amount Amount
e proport e proport
ion ion
Including:
Provision
for bad
17,304,189.41 100.00% 827,747.54 4.78% 16,476,441.87 18,023,563.08 100.00% 440,706.26 2.45% 17,582,856.82
debts made
by portfolio
Including:
Total 17,304,189.41 100.00% 827,747.54 4.78% 16,476,441.87 18,023,563.08 100.00% 440,706.26 2.45% 17,582,856.82
166
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Category name for provision for bad debts by portfolio: Provision for bad debts by portfolio
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 12,925,381.71 50,672.69 0.39%
1-2 years 2,216,880.70 44,397.79 2.00%
2-3 years 2,161,927.00 732,677.06 33.89%
Total 17,304,189.41 827,747.54
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
Expected credit loss
Provision for Bad Debts Expected Credit loss for the entire Total
in the duration
Losses for the Next duration (with
(credit impairment
12 Months credit
not occurred)
impairment)
Balance as at January 1,
60,935.81 379,770.45 440,706.26
2024
Balance on January 1,
2024 in the current
period
Provision in the current
-10,263.12 397,304.40 387,041.28
period
Balance as at June 30,
50,672.69 777,074.85 827,747.54
2024
The basis for dividing each stage and the provision ratios for bad debts: In the first and second stages, bad debts
are provisioned based on the aging, with provision ratios of 0.39% for less than 1 year, 2% for 1-2 years, and
33.89% for 2-3 years.
Description of significant changes in the book balance of contractual assets with changes in provision for loss in
the current period: None
5. Receivables financing
(1) Presentation of receivables financing by category
Unit: CNY
Item Ending balance Opening balance
Bank acceptance bill 8,448,273,887.92 4,878,126,972.73
Total 8,448,273,887.92 4,878,126,972.73
167
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(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
Derecognized Amount at the End Amount not Derecognized at the
Item
of the Period End of the Period
Bank acceptance bill 12,453,690,012.18
Total 12,453,690,012.18
(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 June 30,
2024, 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
Other receivables 1,176,699,147.26 1,309,376,221.57
Total 1,176,699,147.26 1,309,376,221.57
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 1,026,906,667.11 1,191,301,022.21
Claim payment 201,066,386.23 192,151,504.78
Margin, deposit 29,150,613.20 41,422,562.20
Reserve fund 14,610,173.13 621,409.08
Total 1,271,733,839.67 1,425,496,498.27
2) Disclosure by aging
Unit: CNY
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 480,764,061.68 571,985,195.12
Including: 0-6 months 424,374,904.73 556,407,667.28
168
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7-12 months 56,389,156.95 15,577,527.84
1-2 years 677,734,290.71 764,590,667.17
2-3 years 27,453,816.42 1,331,719.31
Over 3 years 85,781,670.86 87,588,916.67
3-4 years 4,534,974.84 3,713,565.73
4-5 years 18,990.89 149,607.62
Over 5 years 81,227,705.13 83,725,743.32
Total 1,271,733,839.67 1,425,496,498.27
169
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3) Disclosure by the method of provision for bad debts
Applicable □Not applicable
Unit: CNY
Ending balance Opening balance
Categor Book balance Provision for Bad Debts Book balance Provision for Bad Debts
y Provision Book Value Percentag Provision Book Value
Amount Percentage Amount Amount Amount
proportion e proportion
Provisio
n for bad
debts
59,879,639.41 4.71% 59,879,639.41 100.00% 59,879,639.41 4.20% 59,879,639.41 100.00%
made by
individu
al item
Including:
Provisio
n for bad
debts 1,211,854,200.26 95.29% 35,155,053.00 2.90% 1,176,699,147.26 1,365,616,858.86 95.80% 56,240,637.29 4.12% 1,309,376,221.57
made by
portfolio
Including:
Total 1,271,733,839.67 100.00% 95,034,692.41 7.47% 1,176,699,147.26 1,425,496,498.27 100.00% 116,120,276.70 8.15% 1,309,376,221.57
170
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Category name for provision for bad debts by individual item:
Unit: CNY
Opening balance Ending balance
Name Reasons
Provision for Provision for Provision
Book balance Book balance for
Bad Debts Bad Debts proportion
Provision
It is highly
probable
Changchun that the
37,820,100.00 37,820,100.00 37,820,100.00 37,820,100.00 100.00%
Finance Bureau amounts
will not be
recovered
It is highly
The People’s probable
Government of that the
20,500,000.00 20,500,000.00 20,500,000.00 20,500,000.00 100.00%
Dalian amounts
Municipality will not be
recovered
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 be
Co., Ltd.
recovered
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
recovered
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
will not be
Co., Ltd.
recovered
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 be
Corporation
recovered
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 be
Co., Ltd.
recovered
Hunan Changji 119,600.00 119,600.00 119,600.00 119,600.00 100.00% It is highly
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Technology probable
Development that the
Co., Ltd. amounts
will not be
recovered
It is highly
probable
that the
Others 210,912.64 210,912.64 210,912.64 210,912.64 100.00%
amounts
will not be
recovered
Total 59,879,639.41 59,879,639.41 59,879,639.41 59,879,639.41
Category name of provision for bad debt reserve by combination:
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Aging portfolio 1,211,854,200.26 35,155,053.00 2.90%
Total 1,211,854,200.26 35,155,053.00
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 Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with
12 Months
not occurred) credit impairment)
Balance as at
12,941,288.00 43,299,349.29 59,879,639.41 116,120,276.70
January 1, 2024
Balance on January
1, 2024 in the
current period
Provision in the
-2,549,132.62 -18,536,451.67 -21,085,584.29
current period
Balance as at June
10,392,155.38 24,762,897.62 59,879,639.41 95,034,692.41
30, 2024
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
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
Category Opening balance Recover Charge Ending balance
Provision Others
y or -off or
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reversal write-
off
Other receivables 116,120,276.70 -21,085,584.29 95,034,692.41
Total 116,120,276.70 -21,085,584.29 95,034,692.41
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
total ending Ending Balance
Name of
Nature of Payment Ending balance Aging balance of of Provision for
Unit
other Bad Debts
receivables
Customer Funds for land
660,862,800.00 1-2 years 51.97% 660,862.80
1 purchase and reserve
Less than 1 year
Customer New energy vehicle
163,210,700.00 or more than 5 12.83% 50,927,475.80
2 sales subsidies
years
Customer Funds for land
73,634,578.00 Within 1 year 5.79% 2,245,854.63
3 purchase and reserve
Customer New energy vehicle
49,557,522.13 1-2 years 3.90% 12,543,008.85
4 sales subsidies
Customer Security deposit for
26,061,584.00 2-3 years 2.05%
5 migrant workers, etc.
Total 973,327,184.13 76.54% 66,377,202.08
7. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
Ending balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 267,306,591.11 65.05% 438,665,956.06 63.60%
1-2 years 71,083,258.55 17.30% 155,704,502.78 22.58%
2-3 years 55,479,496.33 13.50% 75,007,663.59 10.88%
Over 3 years 17,040,130.75 4.15% 20,242,975.23 2.94%
Total 410,909,476.74 689,621,097.66
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
Reason for
Book balance Proportion in Total Advance
Name of Debtor non-
(CNY) Payment (%)
settlement
Undue
China FAW Group Import & Export Co.,
55,798,125.30 settlement
Ltd.
13.58% period
Undue
RiseSun MGL 36,757,493.13 settlement
8.95% period
FAW Mold Manufacturing Co., Ltd. 11,760,095.26 2.86% Undue
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settlement
period
Undue
Zhongqi Jiaojian Group Co., Ltd. 9,100,600.00 settlement
2.21% period
Total 113,416,313.69 27.60%
(2) Top five ending balances of advance payments classified by advance payment objects
The advance payments with top five closing balance classified by the prepaid parties in the current period is CNY
205,484,568.55, accounting for 50.01% of the total closing balance of advance payments.
Other description:
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(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
353,998,484.32 32,812,348.28 321,186,136.04 346,085,168.15 33,387,013.66 312,698,154.49
material
Goods in
597,577,155.21 16,536,596.69 581,040,558.52 449,087,779.38 14,783,370.86 434,304,408.52
process
Goods in
4,325,914,842.85 92,622,110.99 4,233,292,731.86 6,221,152,433.69 178,277,353.30 6,042,875,080.39
stock
Revolving
89,949,816.14 5,607,440.20 84,342,375.94 96,527,196.36 1,940,234.71 94,586,961.65
material
Others 2,516,172,327.36 155,750,226.18 2,360,422,101.18 2,488,739,701.04 162,232,949.94 2,326,506,751.10
Total 7,883,612,625.88 303,328,722.34 7,580,283,903.54 9,601,592,278.62 390,620,922.47 9,210,971,356.15
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
Increase in the Current Decrease in the Current
Period Period
Item Opening balance Ending balance
Reverse or
Provision Others Others
Charge-off
Raw
33,387,013.66 324,565.07 899,230.45 32,812,348.28
material
Goods in 14,783,370.86 2,286,338.53 533,112.70 16,536,596.69
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process
Goods in
178,277,353.30 58,840,807.68 144,496,049.99 92,622,110.99
stock
Revolving
1,940,234.71 3,667,809.29 603.80 5,607,440.20
material
Others 162,232,949.94 11,160,037.34 17,642,761.10 155,750,226.18
Total 390,620,922.47 76,279,557.91 163,571,758.04 303,328,722.34
9. Long-term receivables due within 1 year
Unit: CNY
Item Ending balance Opening balance
Long-term receivables due within
229,571,360.00 222,664,624.89
1 year
Total 229,571,360.00 222,664,624.89
(1) Debt investments due within one year
□Applicable Not applicable
(2) Other debt investments due within one year
□Applicable Not applicable
10. Other current assets
Unit: CNY
Item Ending balance Opening balance
Input VAT 226,934,626.73 398,062,687.06
Input VAT to be certified 506,612,542.16 625,978,432.77
Prepaid income tax 8,048,695.40
Total 733,547,168.89 1,032,089,815.23
Other description:
11. Investment in other equity instruments
Unit: CNY
Cumul
Gains Losses ative Cumulati Reason for
gains Divid
include include ve losses being
include end
d in d in included designated
d in incom
other other in other as being
other e
compre compre comprehe measured at
Project compre recog
Opening balance hensiv hensiv nsive Ending balance fair value
Name hensiv nized
e e incomes and changes
e in the
income income at the end included in
income curren
s in the s in the of the other
s at the t
current current current comprehens
end of period
period period period ive incomes
the
current
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period
REFIRE 480,780,000.00 480,780,000.00
Total 480,780,000.00 480,780,000.00
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.
12. Long-term receivables
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(1) Long-term receivables
Unit: CNY
Ending balance Opening balance Discoun
Item Provision for Provision for t Rate
Book balance Book Value Book balance Book Value Range
Bad Debts Bad Debts
Sales of goods by
385,726,758.23 13,590,621.63 372,136,136.60 365,224,533.59 10,528,655.43 354,695,878.16
installment
Long-term receivables due
-242,420,744.80 -12,849,384.80 -229,571,360.00 -232,504,099.49 -9,839,474.60 -222,664,624.89
within 1 year
Total 143,306,013.43 741,236.83 142,564,776.60 132,720,434.10 689,180.83 132,031,253.27
(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
Catego Provisi Provisi
ry Percentag on Book Value Percentag on Book Value
Amount Amount Amount Amount
e proport e proport
ion ion
Including:
Provisi
on for
bad
debts
385,726,758.23 100.00% 13,590,621.63 3.52% 372,136,136.60 365,224,533.59 100.00% 10,528,655.43 2.88% 354,695,878.16
made
by
portfoli
o
Including:
Total 385,726,758.23 100.00% 13,590,621.63 3.52% 372,136,136.60 365,224,533.59 100.00% 10,528,655.43 2.88% 354,695,878.16
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Category name of provision for bad debt reserve by combination:
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Long-term
385,726,758.23 13,590,621.63 3.52%
receivables
Total 385,726,758.23 13,590,621.63
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 Bad Expected Credit Expected credit loss
Expected Credit Total
Debts Losses over the for the entire
Losses for the Next
Entire Duration (no duration (with
12 Months
Credit Impairment) credit impairment)
Balance as at
10,528,655.43 10,528,655.43
January 1, 2024
Balance on January
1, 2024 in the
current period
Provision in the
3,061,966.20 3,061,966.20
current period
Balance as at June
13,590,621.63 13,590,621.63
30, 2024
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 Ending balance
Opening
Category Recovery or Charge-off or Other
balance Provision
reversal write-off s
Long-term
10,528,655.43 3,061,966.20 13,590,621.63
receivables
Total 10,528,655.43 3,061,966.20 13,590,621.63
Other description:
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13. Long-term equity investment
Unit: CNY
Openi Increase/Decrease in the current period
Ending
ng
balance
balanc
Reduc Investment gains Adjustment to Chang Impair of
Opening balance e of Cash dividends Ending balance
Investee Additional ed or losses other es in ment impairm
(book value) impair and profits Others (book Value)
Investment Invest recognized under comprehensiv other Provisi ent
ment declared to pay
ment the equity method e income equity on provisio
provisi
n
on
I. Joint ventures
Jiefang Times New
Energy Technology 41,528,982.67 -4,168,278.12 37,360,704.55
Co., Ltd.
Subtotal 41,528,982.67 -4,168,278.12 37,360,704.55
II. Associated enterprises
First Automobile
4,337,808,758.45 192,765,866.35 -96,836.64 4,530,477,788.16
Finance Co., Ltd.
Changchun
Automotive Test 700,656,627.27 16,536,148.61 717,192,775.88
Center Co., Ltd.
Sanguard
Automobile 171,795,598.71 2,127,273.48 5,679,897.29 179,602,769.48
Insurance Co., Ltd.
FAW Changchun
Ansteel Steel
Processing and 87,942,751.83 1,048,764.72 88,991,516.55
Distribution Co.,
Ltd.
FAW Changchun
Baoyou Jiefang
Steel Processing 43,464,086.43 3,705,053.58 6,500,530.62 40,668,609.39
and Distribution
Co., Ltd.
FAW Jiefang Fujie
36,982,856.24 2,767,497.43 296,019.25 40,046,372.92
(Tianjin)
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Technology
Industry Co., Ltd.
Foshan Diyiyuan
New Energy
33,214,745.08 -1,206,715.23 32,008,029.85
Technology Co.,
Ltd.
Changchun Wabco
Automotive Control 16,197,563.58 509,482.42 16,707,046.00
System Co., Ltd.
SmartLink
Suzhou Zhito
Technology Co.,
Ltd.
Diyi AESC New
Energy Power
4,900,000.00 -96,679.59 4,803,320.41
Technology (Wuxi)
Co., Ltd.
Subtotal 5,428,062,987.59 4,900,000.00 218,156,691.77 5,583,060.65 6,500,530.62 296,019.25 5,650,498,228.64
Total 5,469,591,970.26 4,900,000.00 213,988,413.65 5,583,060.65 6,500,530.62 296,019.25 5,687,858,933.19
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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
Other description
14. Investment properties
(1) Investment properties measured at cost
Applicable □Not applicable
Unit: CNY
Project
Houses and under
Item Land use right Total
Buildings constructio
n
I. Original book value
1. Opening balance 72,815,332.95 7,474,052.82 80,289,385.77
2. Increase in the current
1,070,465.65 1,070,465.65
period
(1) Purchase
(2) Transfer from
inventories/fixed 1,070,465.65 1,070,465.65
assets/construction in progress
(3) Increase due to
business combination
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
(3) Reversal of
intangible assets
(4) Transferred to
fixed assets
4. Ending balance 73,885,798.60 7,474,052.82 81,359,851.42
II. Accumulated depreciation
and accumulated amortization
1. Opening balance 31,844,973.90 1,394,416.34 33,239,390.24
2. Increase in the current
1,790,858.86 75,820.98 1,866,679.84
period
(1) Provision or
1,651,949.76 75,820.98 1,727,770.74
amortization
(2) Transfer-in of
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intangible assets
(3) Transfer-in of
138,909.10 138,909.10
fixed assets
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
(3) Reversal of
intangible assets
(4) Transferred to fixed
assets
4. Ending balance 33,635,832.76 1,470,237.32 35,106,070.08
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 40,249,965.84 6,003,815.50 46,253,781.34
2. Beginning book value 40,970,359.05 6,079,636.48 47,049,995.53
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
Other description:
15. Fixed assets
Unit: CNY
Item Ending balance Opening balance
Fixed assets 11,462,225,947.74 11,372,570,486.81
Disposal of fixed assets 8,058,712.36 7,715,678.77
Total 11,470,284,660.10 11,380,286,165.58
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(1)Situation of fixed assets Unit: CNY
Item Houses and Machinery Transportation Electronic Office Total
Buildings equipment equipment equipment equipment Others
I. Original book value
1. Opening 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
2. Increase in the current
period 112,366,495.27 904,785,475.77 6,977,807.08 21,555,883.67 1,574,045.55 12,010,554.66 1,059,270,262.00
(1) Purchase 1,912,599.52 -600.00 4,422,111.94 88,495.57 94,949.99 6,517,557.02
(2) Transfer from
construction in progress 112,366,495.27 902,825,686.08 6,978,407.08 15,463,475.80 1,485,549.98 11,915,604.67 1,051,035,218.88
(3) Increase due to
business combination
(4) Other increases 47,190.17 1,670,295.93 1,717,486.10
3. Decrease in the current
period 205,990,581.41 80,673,898.98 1,348,369.48 13,367,435.47 969,489.60 590,704.64 302,940,479.58
(1) Disposal or 204,897,842.70 68,118,026.91 1,348,369.48 12,881,107.10 486,509.22 590,704.64 288,322,560.05
retirement
(2) Other decreases 1,092,738.71 12,555,872.07 486,328.37 482,980.38 14,617,919.53
4. Ending balance 6,214,148,314.51 18,732,977,868.57 171,835,475.56 730,454,186.33 63,988,573.82 1,387,177,029.03 27,300,581,447.82
II. Accumulated depreciation
1. Opening 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
2. Increase in the current 151,013,045.56 632,877,246.88 7,558,204.18 52,483,347.31 2,880,318.11 30,356,658.39 877,168,820.43
period
(1) Provision 151,013,045.56 632,872,183.02 7,558,204.18 50,011,368.54 2,763,797.81 30,356,658.39 874,575,257.50
(2) Other increases 5,063.86 2,471,978.77 116,520.30 2,593,562.93
3. Decrease in the current
period 121,015,799.77 73,342,805.62 1,306,097.59 13,314,795.23 944,910.65 569,393.44 210,493,802.30
(1) Disposal or 120,872,229.63 65,141,974.38 1,306,097.59 12,828,466.86 467,403.23 569,393.44 201,185,565.13
retirement
(2) Other decreases 143,570.14 8,200,831.24 486,328.37 477,507.42 9,308,237.17
4. Ending balance 2,514,930,534.00 11,352,561,859.41 131,476,406.41 607,096,660.71 46,526,695.00 1,160,479,173.62 15,813,071,329.15
III. Impairment provision
1. Opening balance 12,344.37 22,288,724.08 43,047.04 2,940,752.08 25,284,867.57
2. Increase in the current
period
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(1) Provision
3. Decrease in the current
period 696.64 696.64
(1) Disposal or 696.64 696.64
retirement
4. Ending balance 12,344.37 22,288,724.08 42,350.40 2,940,752.08 25,284,170.93
IV. Book value
1. Ending book value 3,699,205,436.14 7,358,127,285.08 40,359,069.15 123,357,525.62 17,419,528.42 223,757,103.33 11,462,225,947.74
2. Beginning book value 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
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(2) Temporary idle fixed assets
Unit: CNY
Original book Accumulated Impairment
Item Book Value Remarks
value depreciation Provision
Machinery
257,610,681.21 232,976,866.13 6,661,184.75 17,972,630.33
equipment
Transportation
865,190.88 850,040.38 15,150.50
equipment
Electronic
7,450.00 7,450.00
equipment
Office
77,872.15 75,536.00 267.95 2,068.20
equipment
Others 7,463,031.82 6,575,247.44 802,534.08 85,250.30
Total 266,024,226.06 240,485,139.95 7,463,986.78 18,075,099.33
(3) Fixed assets without property ownership certificates
Unit: CNY
Reasons for failure to obtain the
Item Book Value
certificate
The property ownership certificate will
Guanghan base project 277,262,782.14 be applied for after the final account
audit upon completion of the project
It is a new plant, and the information is
Project of exiting the city and
264,710,957.08 incomplete and currently being
entering the industrial park
processed.
Other description
(4) Impairment testing of fixed assets
□Applicable Not applicable
(5) Disposal of fixed assets
Unit: CNY
Item Ending balance Opening balance
Houses and Buildings 19,398.36 44,864.97
Machinery equipment 6,205,551.58 5,776,946.67
Means of transport 126,838.43 125,020.45
Electronic equipment 6,317.27 12,316.70
Office equipment 47,113.83 132,249.55
Others 1,653,492.89 1,624,280.43
Total 8,058,712.36 7,715,678.77
Other description:
16. Construction in progress
Unit: CNY
Item Ending balance Opening balance
Project under construction 750,571,700.84 816,484,299.18
Total 750,571,700.84 816,484,299.18
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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
reconstruc
ted 139,946,680.69 1,945,416.12 138,001,264.57 109,030,761.94 1,945,416.12 107,085,345.82
investmen
t project
Technical
transforma
tion 612,625,933.46 55,497.19 612,570,436.27 709,454,450.55 55,497.19 709,398,953.36
investmen
t project
Total 752,572,614.15 2,000,913.31 750,571,700.84 818,485,212.49 2,000,913.31 816,484,299.18
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(2) Changes in important construction in progress in the current period
Unit: CNY
Inclu
ding:
Capit
Capit
Proporti alizat
Other Cumu alized
on of ion
Decr lative intere
Amount accumul rate
eases amou st Capit
transferred to ated of
Project Increase in the in the Project nt of amou al
Budget Opening balance fixed assets in Ending balance investme inter
Name Current Period Curre Progress capita nt sourc
the current nt in est in
nt lized durin e
period construct curre
Perio intere g the
ions to nt
d st curre
budget perio
nt
d
perio
d
R&D
capacity
improve
ment
Other
project 651,579,440.00 216,719,303.35 146,054,477.28 362,773,780.63 55.68% 82.76%
s
of FAW
Jiefang
Qingdao
Base
Business
Integrati
ng and
Technol
ogy
Upgradi
Other
ng for 227,508,500.00 13,655,092.51 67,921,039.94 81,576,132.45 43.82% 42.69%
s
Light
Vehicle
Chassis
in the
Complet
e Vehicle
187
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Division
of FAW
Jiefang
Qingdao
Project
Faw
Jiefang
Wuxi
R&D Other
423,550,000.00 12,690,733.03 50,379,907.99 63,070,641.02 14.89% 29.97%
Base s
Construc
tion
Project
Technica
l
transfor
mation
project
Other
of 898,000,000.00 232,307,221.17 354,815,082.61 545,665,813.79 41,456,489.99 65.71% 77.83%
s
integrate
d heavy
duty
AMT
gearbox
Project
of
exiting
the city
Other
and 936,068,800.00 19,204,724.39 19,204,724.39 71.53% 93.70%
s
entering
the
industria
l park
E-Axle
Assembl
Other
y Pilot 39,000,000.00 19,024,778.76 19,024,778.76 48.78% 48.78%
s
Line
Project
Drivetrai 36,800,000.00 15,994,328.04 1,363,497.74 17,357,825.78 47.17% 47.17% Other
188
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n s
Assembl
y NVH
Bench
Laborato
ry AC
Motor
Dynamo
meter
Project
FAW
Jiefang
south
Other
new 413,800,000.00 48,893,985.90 33,435,894.87 70,215,478.66 12,114,402.11 54.83% 54.83%
s
energy
base
project
New
energy
product
introduct
Other
ion and 79,820,000.00 10,322,123.89 1,330,045.51 11,652,169.40 71.27% 94.64%
s
smart
logistics
upgrade
project
Heavy-
Duty
Vehicle
Transmis Other
20,250,000.00 9,875,983.28 1,432,729.20 11,308,712.48 55.85% 55.85%
sion Life s
Testing
Rig
Project
Automat
ic
Other
Transmis 19,100,000.00 9,369,998.38 939,138.05 10,309,136.43 53.97% 53.97%
s
sion Test
Rig
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Project
Total 3,745,476,740.00 608,058,272.70 657,671,813.19 615,881,292.45 649,848,793.44
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(3) Impairment testing of projects under construction
□Applicable Not applicable
17. Productive biological assets
(1) Productive biological assets measured at cost
□Applicable Not applicable
(2) Impairing testing situation of productive biological assets measured at cost model
□Applicable Not applicable
(3) Productive biological assets measured at fair value
□Applicable Not applicable
18. Oil and gas assets
□Applicable Not applicable
19. 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 173,847,035.89 54,778,761.06 17,260,643.29 245,886,440.24
2. Increase in the 2,853,545.96 3,318,523.78
current period 464,977.82
(1) Leasing 2,853,545.96 464,977.82 3,318,523.78
3. Decrease in
8,108,767.60 8,108,767.60
the current period
(1) Lease 2,416,818.20 2,416,818.20
expiration
(2) Other 5,691,949.40 5,691,949.40
decreases
4. Ending
168,591,814.25 55,243,738.88 17,260,643.29 241,096,196.42
balance
II. Accumulated
depreciation
1. Opening
balance 84,424,735.38 10,955,752.21 11,516,065.95 106,896,553.54
2. Increase in the
16,663,555.45 5,516,624.25 1,497,009.26 23,677,188.96
current period
(1) Provision 16,663,555.45 5,516,624.25 1,497,009.26 23,677,188.96
3. Decrease in 6,728,827.73 6,728,827.73
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the current period
(1) Disposal
(2) Lease
2,108,786.72 2,108,786.72
expiration
(3) Other
4,620,041.01 4,620,041.01
decreases
4. Ending
94,359,463.10 16,472,376.46 13,013,075.21 123,844,914.77
balance
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
74,232,351.15 38,771,362.42 4,247,568.08 117,251,281.65
value
2. Beginning
89,422,300.51 43,823,008.85 5,744,577.34 138,989,886.70
book value
(2) Impairment testing situation of right-of-use assets
□Applicable Not applicable
Other description:
20. Intangible Assets
(1) Details of intangible assets
Unit: CNY
Patent Non-patented
Item Land use right Software Total
rights technology
I. Original book value
1. Opening
2,594,295,359.22 507,713,333.30 565,194,081.77 3,667,202,774.29
balance
2. Increase in the
14,370,333.50 39,422,142.50 53,792,476.00
current period
(1) Purchase 8,651,499.88 36,342,701.47 44,994,201.35
(2) Internal R&D 980,512.13 980,512.13
(3) Increase due to
business combination
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(4) Other increases 4,738,321.49 3,079,441.03 7,817,762.52
3. Decrease in
11,590,528.41 11,590,528.41
the current period
(1) Disposal 6,852,206.92 6,852,206.92
(2) Invalid and
derecognized portion
(3) Other decreases 4,738,321.49 4,738,321.49
4. Ending
2,594,295,359.22 522,083,666.80 593,025,695.86 3,709,404,721.88
balance
II. Accumulated
amortization
1. Opening
596,783,473.72 338,000,836.46 293,984,683.46 1,228,768,993.64
balance
2. Increase in the
27,006,811.89 16,338,264.50 58,057,907.75 101,402,984.14
current period
(1) Provision 27,006,811.89 15,973,233.03 58,057,907.75 101,037,952.67
(2) Other increases 365,031.47 365,031.47
3. Decrease in
7,217,238.39 7,217,238.39
the current period
(1) Disposal 6,852,206.92 6,852,206.92
(2) Invalid and
derecognized portion
(3) Other decreases 365,031.47 365,031.47
4. Ending
623,790,285.61 354,339,100.96 344,825,352.82 1,322,954,739.39
balance
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
1,970,505,073.61 167,744,565.84 248,200,343.04 2,386,449,982.49
value
2. Beginning
1,997,511,885.50 169,712,496.84 271,209,398.31 2,438,433,780.65
book value
The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the end of
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current period is 0.04%.
21. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
Ending balance Opening balance
Item Deductible Deferred Income Deductible Deferred Income
temporary difference tax assets temporary difference tax assets
Impairment provision 625,888,003.09 96,276,501.14 677,552,365.56 118,050,995.83
of assets
Unrealized profits of 173,759,629.21 43,439,907.30 173,759,629.21 43,439,907.30
internal transactions
Deductible losses 9,044,450,556.98 1,532,022,389.07 8,023,847,062.56 1,401,699,212.71
Estimated liabilities 710,046,828.43 103,354,745.17 643,639,504.01 105,676,319.80
Employee 92,843,035.71 14,335,508.54 89,862,914.88 15,035,569.66
compensation payable
Accrued expenses 3,203,758,027.14 719,468,267.38 2,823,814,796.43 668,864,711.49
Deferred income 496,791,958.65 105,237,450.29 498,058,268.35 105,908,875.92
Contract liabilities 588,499,925.26 77,214,139.08 477,559,638.17 73,059,220.04
Lease liabilities 51,125,920.36 11,366,598.97 59,027,119.45 12,975,866.73
Total 14,987,163,884.83 2,702,715,506.94 13,467,121,298.62 2,544,710,679.48
(2) Deferred income tax liabilities not offset
Unit: CNY
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Depreciation of
fixed assets with
amortization period 1,754,981,427.63 319,801,950.36 1,905,769,976.37 344,383,021.84
longer than tax
preference period
Accrued interest
285,536,653.82 44,812,164.74 386,198,421.88 58,128,494.37
income
Right-of-use assets 49,982,944.28 11,417,515.49 57,431,098.06 12,560,241.88
Total 2,090,501,025.73 376,031,630.59 2,349,399,496.31 415,071,758.09
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Ending Mutual Ending balance of Opening mutual Opening balance of
Offset Amount of deferred tax assets offset amount of deferred tax assets
Item
Deferred Tax Assets or liabilities after deferred tax assets or liabilities after
and Liabilities offset and liabilities offset
Deferred Income
2,702,715,506.94 2,544,710,679.48
tax assets
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Deferred income
376,031,630.59 415,071,758.09
tax liabilities
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Ending balance Opening balance
Deductible temporary difference 524,871,458.61 577,137,993.79
Deductible losses 240,846,637.93 433,079,936.50
Total 765,718,096.54 1,010,217,930.29
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Ending amount Beginning balance Remarks
2026 324,798.62 1,441,940.00
2027 3,524,136.57 3,524,136.57
2028 6,764,901.92 201,247,514.48
2029 31,407,588.07 28,041,132.70
2032 198,825,212.75 198,825,212.75
Total 240,846,637.93 433,079,936.50
Other description
22. Assets with restricted ownership or use right
Unit: CNY
Ending Beginning
Item Restr Restr
Restric Restrictio
Book balance Book Value iction Book balance Book Value iction
tion n
type type
Housin
g
mainte
nance
fund,
securit
y Housing
deposit maintenan
for ce fund,
three security
Monetary types deposit for
50,473,277.23 50,473,277.23 50,667,927.65 50,667,927.65
capital of three types
person of
nel personnel
(Main and frozen
respon funds
sible
manag
er,
project
manag
er, and
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full-
time
safety
produc
tion
manag
ement
person
nel of
the
Constr
uction
Organi
zation)
Total 50,473,277.23 50,473,277.23 50,667,927.65 50,667,927.65
Other description:
23. Notes payable
Unit: CNY
Category Ending balance Opening balance
Commercial acceptance bill 25,947,712,941.61 11,769,864,678.11
Total 25,947,712,941.61 11,769,864,678.11
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
24. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
Item Ending balance Opening balance
Payment for goods 17,147,249,872.33 15,746,874,454.72
Project and equipment payment 331,095.28 71,355,989.71
Expenses and others 914,579,261.08 677,340,998.02
Total 18,062,160,228.69 16,495,571,442.45
25. Other payables
Unit: CNY
Item Ending balance Opening balance
Dividends payable 171,500.02 171,500.02
Other payables 5,193,749,030.50 5,304,885,545.16
Total 5,193,920,530.52 5,305,057,045.18
(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
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Other description, including the disclosure of the reasons for not paying the important dividends payable for more
than 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
Item Ending balance Opening balance
Expenses payable 3,533,091,016.38 3,611,643,900.11
Margin, deposit 237,654,900.20 310,785,014.96
Project funds payable 1,416,756,262.19 1,296,325,132.82
Repurchase obligations of
6,246,851.73 86,131,497.27
restricted shares
Total 5,193,749,030.50 5,304,885,545.16
2) Other significant payables with aging over 1 year or overdue
Unit: CNY
Reasons for not being repaid or
Item Ending balance
carried over
Eisenmann (Shanghai) Co., Ltd. 15,722,294.45 Project not completed
Hangzhou HIK Robot Co., Ltd. 14,314,364.40 Project not completed
FAW Mold Manufacturing Co., Ltd. 11,480,090.27 Project not completed
Jilin Hongze Construction
11,429,681.82 Project not completed
Engineering Co., Ltd.
Wuhan Li’ao Automation Co., Ltd. 8,670,040.00 Project not completed
Total 61,616,470.94
The other payables of the top five closing balances classified by the other payable parties in the current period are
CNY 174,691,000.20, accounting for 3.36% of the total closing balance of other payables.
26. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
Item Ending balance Opening balance
Rental fee 715,111.97 641,221.46
Total 715,111.97 641,221.46
27. Contract liabilities
Unit: CNY
Item Ending balance Opening balance
Payment for goods 537,992,732.13 1,863,445,370.73
Others 578,358,281.86 555,703,269.04
Contract liabilities included in
-60,702,098.17 -214,456,037.00
other current liabilities
Total 1,055,648,915.82 2,204,692,602.77
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28. 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
296,724,446.00 2,037,364,590.82 1,837,942,253.12 496,146,783.70
compensation
II. Post-
employment
16,284,549.40 319,124,786.63 328,212,281.77 7,197,054.26
benefits-defined
contribution plan
III. Dismissal
38,420,889.80 11,011,318.43 21,286,177.44 28,146,030.79
welfare
IV. Other benefits
50,609,999.99 21,659,867.99 28,950,132.00
due within one year
Total 402,039,885.19 2,367,500,695.88 2,209,100,580.32 560,440,000.75
(2) Presentation of short-term compensation
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
1. Wages, bonuses, allowances
1,470,590,674.49 1,286,614,267.92 183,976,406.57
and subsidies
2. Employee welfare expenses 97,868,160.35 97,868,160.35
3. Social insurance premiums 3,927,312.53 178,184,058.90 180,911,647.03 1,199,724.40
Including: medical
3,927,312.53 167,121,573.85 169,849,161.98 1,199,724.40
insurance premiums
Work-related injury
9,437,602.77 9,437,602.77
insurance premiums
Maternity insurance
1,624,882.28 1,624,882.28
premium
4. Housing provident fund 234,197,241.76 234,197,241.76
5. Labor union funds and
292,797,133.47 56,524,455.32 38,350,936.06 310,970,652.73
employee education funds
Total 296,724,446.00 2,037,364,590.82 1,837,942,253.12 496,146,783.70
(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
13,909,612.19 214,562,327.32 228,471,939.51
insurance
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2. Unemployment
2,374,937.21 6,976,071.75 9,351,008.96
insurance premiums
3. Payment of
97,586,387.56 90,389,333.30 7,197,054.26
enterprise annuity
Total 16,284,549.40 319,124,786.63 328,212,281.77 7,197,054.26
Other description
29. Taxes payable
Unit: CNY
Item Ending balance Opening balance
VAT 42,773,492.98 33,868,153.98
Corporate income tax 24,512,846.83 12,652,169.68
Individual income tax 6,698,386.44 44,332,949.39
Urban maintenance and
1,451,357.79 1,563,765.87
construction tax
Property tax 8,153,574.92 12,070,417.66
Land use tax 4,260,011.07 4,302,440.45
Education surcharges 3,508,165.78 3,588,461.26
Other taxes 15,015,489.84 16,844,015.03
Total 106,373,325.65 129,222,373.32
Other description
30. Non-current liabilities due within one year
Unit: CNY
Item Ending balance Opening balance
Lease liabilities due within one
14,750,421.22 27,171,195.40
year
Total 14,750,421.22 27,171,195.40
Other description:
31. Other current liabilities
Unit: CNY
Item Ending balance Opening balance
Taxes to be written off 60,702,098.17 214,456,037.00
Total 60,702,098.17 214,456,037.00
Other description:
32. Lease liabilities
Unit: CNY
Item Ending balance Opening balance
Lease payment 52,833,724.20 61,122,271.61
Unrecognized financing charges -2,559,782.51 -3,457,062.08
Lease liabilities due within one -14,750,421.22 -27,171,195.40
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year
Total 35,523,520.47 30,494,014.13
Other notes: The interest of lease liabilities accrued is CNY 1.0792 million from January to June in 2024.
33. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
Item Ending balance Opening balance
I. Post-employment welfare - net
645,190,132.01 667,280,000.00
liabilities of defined benefit plan
II. Dismissal welfare 91,239,962.81 94,708,523.04
Long-term employee compensation
-57,096,162.79 -89,030,889.79
payable due within one year
Total 679,333,932.03 672,957,633.25
34. Estimated liabilities
Unit: CNY
Item Ending balance Opening balance Reason
Pending litigation 8,594,661.90 7,321,618.04 Product quality disputes
Expenses for return,
Product quality assurance 684,163,548.30 711,161,690.70
replacement and repair
Others 17,226,995.29 17,226,995.29 Labor social security
Total 709,985,205.49 735,710,304.03
Other description, including important assumptions and estimation descriptions related to important estimated
liabilities:
35. Deferred income
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance Reason
Current Period Current Period
Government
2,983,678,367.53 111,030,641.83 134,400,820.98 2,960,308,188.38
subsidies
Total 2,983,678,367.53 111,030,641.83 134,400,820.98 2,960,308,188.38
Other description:
36. Share capital
Unit: CNY
Increase/Decrease (+/-)
Issue Share
Bonu Transfe
Opening balance of Ending balance
s rred
New Others Subtotal
share from
Share
s Accum
s
ulation
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Fund
Total
share 4,636,485,668.00 -12,621,954.00 -12,621,954.00 4,623,863,714.00
s
Other description:
37. Capital reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Capital premium (stock
9,341,522,399.02 67,262,691.54 9,274,259,707.48
premium)
Other capital reserves 1,001,896,552.71 605,418.43 1,002,501,971.14
Total 10,343,418,951.73 605,418.43 67,262,691.54 10,276,761,678.62
Other description, including increase/decrease in the current period and reasons for change:
(1) The capital reserve (share premium) decreased by CNY 67,262,691.54 in the current period due to the repurchase
and cancellation of equity incentive shares of the Company.
(2) The capital reserve (other capital reserves) increased by CNY 605,418.43 in the current period due to the
recognition of share-based payment expenses during the vesting period of the Company’s equity incentive plan.
38. Treasury shares
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Treasury shares 86,131,497.27 79,884,645.54 6,246,851.73
Total 86,131,497.27 79,884,645.54 6,246,851.73
Other description, including increase/decrease in the current period and reasons for change:
39. Other comprehensive incomes
Unit: CNY
Amount Incurred in Current Period
Less: Less:
Current Current
Amoun Profits or Retained
After-
t Losses Earnings
tax
incurre Transferr Transferr
Less: After-tax amount
Opening d ed from ed from
Item income amount attributa Ending balance
balance before Other Other
tax attributable to ble to
income Compreh Compreh
expense parent minorit
tax in ensive ensive
s company y
the Income Income
shareho
current Recorded Recorded
lders
period in the in the
Previous Previous
Period Period
I. Other -8,735,366.35 5,679,897.29 -3,055,469.06
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comprehe
nsive
incomes
that
cannot be
reclassifie
d into
profits or
losses
Including
: changes
arising
from re-
measure
-9,210,000.00 -9,210,000.00
ment of
the
defined
benefit
plan
Othe
r
comprehe
nsive
incomes
that
cannot be
474,633.65 5,679,897.29 6,154,530.94
reclassifie
d into
profit or
loss
under the
equity
method
II. Other
comprehe
nsive
incomes
that will
221,256.25 -363,765.87 -142,509.62
be
reclassifie
d into
profits or
losses
Including
: other
comprehe
nsive
incomes
that can
be 375,337.28 -96,836.64 278,500.64
reclassifie
d into
profits or
losses
under the
equity
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method
Tran
slation
difference
in foreign
-154,081.03 -266,929.23 -421,010.26
currency
financial
statement
s
Total
other
comprehe -8,514,110.10 5,316,131.42 -3,197,978.68
nsive
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:
40. Special reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Work safety cost 319,314,527.85 6,016,604.46 15,216,437.91 310,114,694.40
Total 319,314,527.85 6,016,604.46 15,216,437.91 310,114,694.40
Other description, including increase/decrease in the current period and reasons for change:
41. Surplus reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Statutory surplus
2,792,881,825.16 2,792,881,825.16
reserve
Discretionary
297,526,491.71 297,526,491.71
surplus reserves
Total 3,090,408,316.87 3,090,408,316.87
Description of surplus reserve, including increase/decrease and reasons for change in the current period:
42. Undistributed profits
Unit: CNY
Item Current period Previous period
Undistributed profits at the end of
the previous period before 6,191,777,512.32 5,460,939,601.36
adjustment
Undistributed profits at the
beginning of the current period 6,191,777,512.32 5,460,939,601.36
after adjustment
Add: net profit attributable to
owners of parent company in the 478,251,870.50 401,336,302.35
current period
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Less: ordinary stock dividends
693,579,557.10
payable
Undistributed profits at the end of
5,976,449,825.72 5,862,275,903.71
the period
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 new
regulations impacts the opening undistributed profit by CNY 0.00.
2) The undistributed profit at the beginning of the period affected by changes in accounting policies is CNY 0.00.
3) The undistributed profit at the beginning of the period affected by correction of significant accounting errors is
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.
43. Operating income and operating cost
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main
34,781,334,502.47 32,601,996,683.55 32,139,093,286.21 29,929,907,291.11
business
Other
820,958,136.99 650,423,218.46 875,568,627.92 660,616,486.91
business
Total 35,602,292,639.46 33,252,419,902.01 33,014,661,914.13 30,590,523,778.02
Other description
Information related to the transaction price allocated to the remaining performance obligations: The income
corresponding to the performance obligations that have been signed but not yet fulfilled or completed at the end of
the reporting period is CNY 578,358,281.86, of which CNY 289,179,140.93 is expected to be recognized in 2024
and CNY 289,179,140.93 is expected to be recognized in 2025.
Information related to variable consideration in the Contract:
Other description
44. Taxes and surcharges
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Urban maintenance and
8,735,866.96 19,546,313.81
construction tax
Education surcharges 6,239,901.02 14,049,726.20
Property tax 36,577,269.48 27,465,239.54
Land use tax 21,263,435.84 17,742,508.40
Vehicle and vessel use tax 55,080.14 51,933.49
Stamp duty 32,322,074.63 30,606,438.19
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Environmental protection tax 320,082.33 427,254.80
Others -144,396.20 -47,844.63
Total 105,369,314.20 109,841,569.80
Other description:
45. Administrative expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 435,912,218.49 554,575,877.44
Repair cost of fixed assets 74,393,472.71 86,296,341.73
Depreciation cost 70,160,216.19 62,859,036.45
Amortization of intangible assets 42,960,831.97 45,228,775.75
Labor outsourcing fee 19,200,519.52 20,600,631.57
Information system service fee 15,385,298.95 18,919,334.81
Sewage charge 7,020,968.97 9,479,418.73
Kinetic energy and workshop
16,359,943.57 15,614,154.67
heating cost
Publicity fee 733,152.88 2,792,288.47
Test and inspection fee 8,512,181.61 5,943,937.13
Others 49,127,040.10 48,851,266.17
Total 739,765,844.96 871,161,062.92
Other description
46. Sales expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Product quality assurance fee 354,345,170.32 372,020,904.40
Employee compensation 261,388,918.42 230,992,397.31
Storage fee 54,530,428.75 49,482,396.12
Promotion fee 2,072,688.58 5,652,694.61
Packing cost 63,410,413.70 36,501,913.05
Business publicity fee 7,335,461.53 5,491,042.24
Travel expense 42,282,800.13 32,468,745.00
Sales service fee 7,063,389.32 7,172,990.92
Rental fee 25,362,533.68 23,305,950.67
Insurance premium 376,867.84 2,116,210.71
Others 17,298,425.55 9,617,573.30
Total 835,467,097.82 774,822,818.33
Other description:
47. R&D expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
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Material procurement and
58,713,565.00 83,066,490.71
consumption
Fuel and power 30,352,085.23 37,703,182.12
Employee compensation 762,070,442.14 781,461,814.17
Depreciation and amortization 127,558,615.73 123,318,628.06
Technological development 21,371,901.93 55,353,771.51
Test and inspection fee 54,071,350.93 80,965,496.03
Road testing expense 48,592,572.48 44,968,204.89
Others 32,852,743.53 41,210,116.05
Total 1,135,583,276.97 1,248,047,703.54
Other description
48. Financial expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Interest income -330,521,706.02 -332,873,373.32
Net actuarial interest 395,666.67 463,219.03
Handling charge of financial
213,654.95 62,645.64
institutions
Interest expense 1,431,811.40 2,201,462.83
Exchange gain or loss 178,734.27 -134,786.41
Others -66,474,373.18 -85,382,599.83
Total -394,776,211.91 -415,663,432.06
Other description
49. Other income
Unit: CNY
Amount Incurred in the Previous
Sources of other income Amount Incurred in Current Period
Period
Government subsidies 209,501,338.40 193,604,585.44
Service charges of individual
2,035,928.98 2,051,784.67
income tax withholding
Additional tax credit of VAT 142,242,391.94
Total 353,779,659.32 195,656,370.11
50. Investment income
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Income from long-term equity
investments accounted for using 213,988,413.65 234,054,148.54
the equity method
Others -112,101,568.99 -100,436,268.67
Total 101,886,844.66 133,617,879.87
Other description
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51. Credit impairment loss
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bad debt losses of notes receivable 21,670.17 -69,181.55
Bad debt losses of accounts
-26,638,370.74 -32,194,937.26
receivable
Bad debt losses of other
21,085,584.29 -288,813.51
receivables
Bad debt losses of long-term
-3,061,966.20 -2,927,793.76
receivables
Total -8,593,082.48 -35,480,726.08
Other description
52. Asset impairment loss
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
I. Inventory falling price loss and
contract performance cost -76,279,557.91 -35,182,158.70
impairment loss
II. Impairment loss of contract
-387,041.28 -142,013.25
assets
Total -76,666,599.19 -35,324,171.95
Other description:
53. Income from assets disposal
Unit: CNY
Sources of income from assets Amount Incurred in the Previous
Amount Incurred in Current Period
disposal Period
Gains from disposal of fixed assets 746,088.82 98,132,494.11
54. Non-operating income
Unit: CNY
Amount included
Amount Incurred in Amount Incurred in the in current non-
Item
Current Period Previous Period recurring profits
and losses
Unpayable amount recognized 11,378,406.14 581,828.00 11,378,406.14
Income from compensation,
6,971,354.67 7,871,739.74 6,971,354.67
liquidated damages and penalties
Gains from damage and
46,052.83 695,112.91 46,052.83
retirement of non-current assets
Others 9,710,410.31 393,806.14 9,710,410.31
Total 28,106,223.95 9,542,486.79 28,106,223.95
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Other description:
55. Non-operating expenses
Unit: CNY
Amount included
Amount Incurred in Amount Incurred in the in current non-
Item
Current Period Previous Period recurring profits
and losses
Donation 2,978,920.00 2,000,000.00 2,978,920.00
Losses from damage and
989,080.93 1,297,109.63 989,080.93
retirement of non-current assets
Expenditure of liquidated
-210,191.05 435,083.63 -210,191.05
damages and penalties
Others 24,732.00 69,570.55 24,732.00
Total 3,782,541.88 3,801,763.81 3,782,541.88
Other description:
56. Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Current income tax expenses 42,733,093.07 42,401,718.66
Deferred income tax expense -197,044,954.96 -245,467,038.39
Total -154,311,861.89 -203,065,319.73
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred in Current Period
Total profits 323,940,008.61
Income tax expense calculated at statutory/applicable tax
80,985,002.15
rate
Effect of different tax rates applied to subsidiaries -12,357,345.92
Effect of adjustment to income tax of previous periods -25,280,791.16
Effect of non-deductible costs, expenses and losses 550,302.01
Effects of deductible temporary differences or deductible
losses of deferred income tax assets unrecognized in the 841,613.84
current period
Profit or loss of joint ventures and associated enterprises
-51,587,576.03
calculated by equity method
Tax effect of R&D expenses plus deduction (to be listed
-134,396,432.98
with “-”)
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Tax effect of unrecognized deductible losses and deductible
-13,066,633.80
temporary difference
Others
Income tax expenses -154,311,861.89
Other description
57. Other comprehensive incomes
For details, please refer to 39 “Other comprehensive income” in VII “Notes to Items in Consolidated Financial
Statements” of Section X - Financial Report.
58. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bank interest 397,148,937.72
Collection and payment 8,170,165.98 9,286,574.17
Government subsidies received 184,296,132.42 89,195,336.75
Deposits received 9,510,303.41
Rental fee received 963,013.62 2,874,590.58
Fines and indemnities received 3,043,576.01 4,419,145.87
Recovery of reserve funds 468,225.38 538,760.42
Refund of handling fees 884,632.38 803,868.95
Other current accounts 161,576,775.16 534,529,346.19
Total 766,061,762.08 641,647,622.93
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Out-of-pocket expenses 491,987,715.82 494,020,512.30
Current account 451,612,329.19 455,747,557.22
Donations 2,978,920.00 2,000,000.00
Total 946,578,965.01 951,768,069.52
Description of other cash payments related to operating activities:
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Interest received 368,529,711.02
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Total 368,529,711.02
Description of other cash received related to investing activities:
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Amount paid to repay lease
11,981,702.80 19,709,605.31
liabilities
Total 11,981,702.80 19,709,605.31
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable Not applicable
59 Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
Amount in the current Amount of the Previous
Supplementary information
period Period
1. Reconciliation of net profit to cash flows from
operating activities:
Net Profit 478,251,870.50 401,336,302.35
Add: impairment provision of assets 85,259,681.67 70,804,898.03
Depreciation of fixed assets, depletion of oil and
888,228,121.73 806,546,681.57
gas assets and productive biological assets
Depreciation of right-of-use asset 796,214.19 5,115,821.82
Amortization of intangible assets 50,898,373.61 52,772,614.33
Amortization of long-term deferred expenses
Losses from disposal of fixed assets, intangible
assets and other long-term assets (incomes to be listed -746,088.82 -98,132,494.11
with “-”)
Loss from retirement of fixed assets (incomes to
989,080.93 1,297,109.63
be listed with “-”)
Loss from changes in fair value (incomes to be
listed with “-”)
Financial expenses (incomes to be listed with “-”) -317,865,186.72 -330,682,164.07
Investment losses (incomes to be listed with “-”) -101,886,844.66 -133,617,879.87
Decrease of deferred income tax assets (increase
-158,004,827.46 -248,346,478.93
to be listed with “-”)
Increases of deferred income tax liabilities
-39,040,127.50 1,005,800.22
(decrease to be listed with “-”)
Decrease in inventories (increase to be listed with
1,630,687,452.61 -1,448,702,170.39
“-”)
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Decrease in operating receivables (increase to be
-14,800,044,542.39 -9,607,002,028.80
listed with “-”)
Increase in operating items payable (decrease to
16,555,976,890.53 17,346,803,689.10
be listed with “-”)
Others -32,570,012.60 -105,040,323.41
Net cash flows from operating activities 4,240,930,055.62 6,714,159,377.47
2. Significant investment and financing activities not
involving 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 25,239,787,245.83 26,430,438,475.01
Less: opening balance of cash 22,483,844,553.59 20,697,669,726.18
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 2,755,942,692.24 5,732,768,748.83
(2) Composition of cash and cash equivalents
Unit: CNY
Item Ending balance Opening balance
I. Cash 25,239,787,245.83 22,483,844,553.59
II. Cash equivalents
VI. Balance of ending cash and
25,239,787,245.83 22,483,844,553.59
cash equivalents
60 Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Ending Balance
Item Balance at the End of the Exchange rate
Converted into CNY
Period
Monetary capital
Including: USD
EUR 1,007,820.69 7.6617 7,721,619.78
HKD
Accounts receivable
Including: USD
EUR
HKD
Long-term loans
Including: USD
EUR
211
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HKD
Other description:
(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
61. 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
Amount incurred in the current
Item
period (CNY)
Short-term lease expense 20,698,594.18
Low-value asset lease expense
Variable lease payments not included in the measurement of lease liabilities
Total 20,698,594.18
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
Reconciliation Statement for Undiscounted Lease Receipts and Net Lease Investments
(3) Profits and losses of financing lease sales recognized as a manufacturer or distributor
□Applicable Not applicable
VIII. R&D Expenditures
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
212
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Including: Expensed R&D
1,135,583,276.97 1,248,047,703.54
expenditure
Capitalized R&D
113,944,595.36
expenditure
1. R&D projects eligible for capitalization
Unit: CNY
Increase in the Current Decrease in the Current
Period Period
Transfer
Item Opening balance red to Ending balance
Internal Recognized
current
development Others as intangible
profits
expenditures assets
and
losses
9130102303 404,305.77 404,305.77
9130012317 980,512.13 980,512.13
A2205 5,393,345.15 9,826,144.18 15,219,489.33
A2207 9,870,532.31 11,292,856.19 21,163,388.50
A2208 12,756,268.49 8,556,661.39 21,312,929.88
A2209 26,396,041.18 1,849,888.88 28,245,930.06
A2305 12,547,492.73 16,144,515.66 28,692,008.39
A2306 16,094,984.19 10,183,762.22 26,278,746.41
A2307 2,723,108.10 13,618,283.59 16,341,391.69
A2308 12,945,847.92 16,023,783.19 28,969,631.11
T2208 8,944,559.08 10,512,100.27 19,456,659.35
T2209 2,201,651.44 3,180,522.13 5,382,173.57
T2303 752,935.81 752,935.81
XC2411020 1,553,097.79 1,553,097.79
XC2411030 1,339,911.45 1,339,911.45
XC2411089 760,229.42 760,229.42
XC2411098 5,889,217.40 5,889,217.40
XC2411107 1,075,867.89 1,075,867.89
Total 109,873,830.59 113,944,595.36 980,512.13 222,837,913.82
Significant capitalized R&D projects
Expected
Specific basis
generation Time point of
Expected for
Item R&D progress method of capitalization
completion time capitalization
economic starting
starting
benefits
The review of sample Being adopted
boxes has completed by
and the current stage Production consideration
9130102303 April 30, 2025 June 24, 2024
is the stage of product and sales and decision-
freezing for making at the
production project review
213
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preparation start meeting
Being adopted
The trial production of
by
sample machines has
consideration
completed and the Production January 24,
9130012317 June 30, 2024 and decision-
current stage is the and sales 2024
making at the
stage of design and
project review
verification
meeting
Being adopted
by
consideration
Production Production January 31,
A2205 June 30, 2026 and decision-
preparation start and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
Production Production January 31,
A2207 June 30, 2026 and decision-
preparation start and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
Production Production January 31,
A2208 June 30, 2026 and decision-
preparation start and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
Production January 31,
A2209 Trial production stage May 31, 2024 and decision-
and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
Engineering design February 28, Production
A2305 March 31, 2023 and decision-
and verification stage 2026 and sales
making at the
project review
meeting
214
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Being adopted
by
consideration
Engineering design December 31, Production
A2306 March 31, 2023 and decision-
and verification stage 2024 and sales
making at the
project review
meeting
Being adopted
by
consideration
Engineering design February 28, Production
A2307 March 31, 2023 and decision-
and verification stage 2026 and sales
making at the
project review
meeting
Being adopted
by
consideration
Engineering design Production January 31,
A2308 March 31, 2026 and decision-
and verification stage and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
Engineering design Production January 31,
T2208 March 31, 2026 and decision-
and verification stage and sales 2023
making at the
project review
meeting
Being adopted
by
consideration
December 31, Production January 31,
T2209 Trial production stage and decision-
2024 and sales 2023
making at the
project review
meeting
The production Being adopted
preparation start has by
completed, and the consideration
December 31, Production
T2303 current stage is the June 24, 2024 and decision-
2024 and sales
stage of product making at the
freezing and trial project review
production meeting
XC2411020 The design scheme December 31, Production February 1, Being adopted
215
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freezing has 2024 and sales 2024 by
completed, and the consideration
current stage is the and decision-
stage of design and making at the
verification project review
meeting
Being adopted
The design scheme
by
freezing has
consideration
completed, and the December 31, Production February 1,
XC2411030 and decision-
current stage is the 2024 and sales 2024
making at the
stage of design and
project review
verification
meeting
Being adopted
The design scheme
by
freezing has
consideration
completed, and the September 30, Production
XC2411089 March 1, 2024 and decision-
current stage is the 2024 and sales
making at the
stage of design and
project review
verification
meeting
Being adopted
The project approval by
has completed, and consideration
November 30, Production January 24,
XC2411098 the current stage is the and decision-
2024 and sales 2024
stage for trial making at the
production project review
meeting
The trial production of
Being adopted
sample machines has
by
completed, and the
consideration
current stage is the December 31, Production
XC2411107 March 1, 2024 and decision-
stage of development 2024 and sales
making at the
for machinery
project review
combined with sample
meeting
machines A and B
IX. Changes in Consolidation Scope
(1) Business merger under different control
(1) Profits or losses arising from remeasurement of equity held before the purchase date at fair value
Whether there are transactions that achieve the business merger through multiple transactions and obtain control
during the reporting period
216
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□Yes No
2. Others: None
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: CNY
Princip Share proportion
Registe
al Nature of Way of
Name of subsidiary Registered Capital red Indir
busines business Direct acquisition
address ect
s place
Business
Vehicle
Chang Chang merger under
Jiefang Limited 10,803,012,510.01 manufacturin 100.00%
chun chun common
g
control
Business
Vehicle
FAW Jiefang (Qingdao) Qingda Qingda merger under
802,000,000.00 manufacturin 100.00%
Automotive Co., Ltd. o o common
g and sales
control
Automotive Business
FAW Jiefang Dalian engine merger under
1,400,000,000.00 Dalian Dalian 100.00%
Diesel Engine Co., Ltd. manufacturin common
g control
Manufacturi
ng of Business
Wuxi Dahao Power Co., automotive merger under
38,094,059.61 Wuxi Wuxi 100.00%
Ltd. components common
and control
accessories
Business
Technology
FAW Jiefang Austria merger under
15,765,000.00 Austria Austria research and 100.00%
R&D Co., Ltd. common
development
control
Establishme
FAW Jiefang Automotive Chang Chang
200,000,000.00 Vehicle sales 100.00% nt by
Sales Co., Ltd. chun chun
investment
Technical
FAW Jiefang Uni-D Establishme
services and
(Tianjin) Technology 90,000,000.00 Tianjin Tianjin 100.00% nt by
other
Industry Co., Ltd. investment
services
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
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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:
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
Share proportion Accounting
Treatment
Princip Method for
Registe
Name of Joint Ventures or Associated al Nature of Investment
red Indir
Enterprises busines business Direct in Joint
address ect
s place Ventures or
Associated
Enterprises
Changc Chang Financial Equity
First Automobile Finance Co., Ltd. 21.84%
hun chun services method
Sanguard Automobile Insurance Co., Changc Chang Financial Equity
17.50%
Ltd. hun chun insurance method
Industrial
FAW Changchun Ansteel Steel Changc Chang Equity
manufacturin 40.00%
Processing and Distribution Co., Ltd. hun chun method
g
Industrial
FAW Changchun Baoyou Jiefang Steel Changc Chang Equity
manufacturin 21.81%
Processing and Distribution Co., Ltd. hun chun method
g
Manufacturin
g of
Changchun Wabco Automotive Control Changc Chang automotive Equity
40.00%
System Co., Ltd. hun chun components method
and
accessories
Research and
Equity
Suzhou Zhito Technology Co., Ltd. Suzhou Suzhou experimental 25.68%
method
development
Software and
FAW Jiefang Fujie (Tianjin) Technology information Equity
Tianjin Tianjin 10.00%
Industry Co., Ltd. technology method
services
Software and
Nanjin Nanjin information Equity
SmartLink 35.00%
g g technology method
services
218
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Manufacturin
Foshan Diyiyuan New Energy g and Equity
Foshan Foshan 45.00%
Technology Co., Ltd. technical method
services
Changchun Automotive Test Center Co., Changc Chang Technical Equity
14.63%
Ltd. hun chun services method
Technical
Jiefang Times New Energy Technology Shijiaz Shijiaz Equity
services and 50.00%
Co., Ltd. huang huang method
other services
Engineering
and
Diyi AESC New Energy Power technology Equity
Wuxi Wuxi 49.00%
Technology (Wuxi) Co., Ltd. research and method
experiment
development
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.
(2) Main financial information of important joint ventures
Unit: CNY
Ending Balance/Amount Incurred Opening Balance/Amount
in Current Period Incurred in Previous Period
Jiefang Times New Energy Jiefang Times New Energy
Technology Co., Ltd. Technology Co., Ltd.
Current assets 226,424,018.04 107,060,648.01
Including: Cash and cash equivalents 61,208,846.42 23,493,644.57
Non-current assets 202,724,472.32 180,155,847.21
Total assets 429,148,490.36 287,216,495.22
Current liabilities 139,732,848.41 40,887,314.87
Non-current liabilities 214,694,232.87 163,271,215.01
Total liabilities 354,427,081.28 204,158,529.88
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Minority equity
Equity attributable to shareholders of
74,721,409.08 83,057,965.34
the parent company
Shares of net assets calculated as per
37,360,704.55 41,528,982.67
the shareholding proportion
Adjustments
--Goodwill
--Unrealized profits from internal
transactions
--Others
Book value of equity investment to
37,360,704.55 41,528,982.67
joint ventures
The fair value of equity investment in
joint ventures with a public offer
Operating income 217,004,793.22 23,610,012.53
Financial expenses 4,666,304.22 -786,426.54
Income tax expenses 283.87
Net Profit -8,336,556.25 -6,942,034.66
Net profit from discontinued
operations
Other comprehensive incomes
Total comprehensive income -8,336,556.25 -6,942,034.66
Dividends received from joint
ventures in the current year
Other description
(3) Main financial information on important associated enterprises
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Unit: CNY
Ending Balance/Amount Incurred in Current Period
Diyi AESC
FAW Changchun Changchun FAW Changchun Foshan
FAW Jiefang Fujie New Energy
Sanguard Ansteel Steel Wabco Baoyou Jiefang Suzhou Zhito Diyiyuan New Changchun
First Automobile (Tianjin) Power
Automobile Processing and Automotive Steel Processing Technology Co., SmartLink Energy Automotive Test
Finance Co., Ltd. Technology Technology
Insurance Co., Ltd. Distribution Co., Control System and Distribution Ltd. Technology Center Co., Ltd.
Industry Co., Ltd. (Wuxi) Co.,
Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Ltd.
Current assets 82,826,458,285.51 1,735,189,182.46 236,934,530.42 41,976,542.95 314,811,659.63 388,730,442.01 840,177,519.67 129,573,143.85 77,950,576.34 1,971,968,649.47 11,914,216.94
Non-current
85,912,913,739.17 680,384,942.50 59,013,028.84 22,535,665.99 50,342,316.54 79,350,893.35 789,129,965.77 198,944,967.72 602,067.31 1,785,145,939.47 53,529,536.46
assets
Total assets 168,739,372,024.68 2,415,574,124.96 295,947,559.26 64,512,208.94 365,153,976.17 468,081,335.36 1,629,307,485.44 328,518,111.57 78,552,643.65 3,757,114,588.94 65,443,753.40
Current
146,422,969,364.73 405,603,134.71 73,746,945.12 22,747,940.94 174,660,490.17 105,149,543.23 959,088,478.01 326,180,678.01 9,408,260.47 107,789,515.82 635,077.58
liabilities
Non-current
235,156,602.55 975,510,294.37 3,991,562.83 956,704,669.63 267,471,267.83 61,168,800.88 0.00 124,016,501.99 55,053,185.81
liabilities
Total liabilities 146,658,125,967.28 1,381,113,429.08 73,746,945.12 22,747,940.94 178,652,053.00 1,061,854,212.86 1,226,559,745.84 387,349,478.89 9,408,260.47 231,806,017.81 55,688,263.39
Net Assets 22,081,246,057.40 1,034,460,695.88 222,200,614.14 41,764,268.00 186,501,923.17 -593,772,877.50 402,747,739.60 -58,831,367.32 69,144,383.18 3,525,308,571.13 9,755,490.01
Minority
1,316,124,588.85 223,155.56 -3,150,336.43 448,173,439.46
equity
Equity
attributable to
shareholders 20,765,121,468.55 1,034,460,695.88 222,200,614.14 41,764,268.00 186,501,923.17 -593,772,877.50 402,524,584.04 -55,681,030.89 69,144,383.18 3,077,135,131.67 9,755,490.01
of the parent
company
Shares of net
assets
calculated as
4,534,957,172.88 181,030,621.78 88,880,245.66 16,705,707.20 40,668,609.39 -152,480,874.94 40,252,458.40 -19,488,360.81 31,114,972.43 450,184,869.76 4,780,190.10
per the
shareholding
proportion
Adjustments -4,479,384.72 -1,427,852.30 111,270.89 1,338.80 152,480,874.94 -206,085.48 19,488,360.81 893,057.42 267,007,906.12 23,130.31
--Goodwill
--Unrealized
-153,628.00
profits from
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internal
transactions
--Others -4,479,384.72 -1,427,852.30 111,270.89 1,338.80 152,480,874.94 -52,457.48 19,488,360.81 893,057.42 267,007,906.12 23,130.31
Book value of
equity
investment in 4,530,477,788.16 179,602,769.48 88,991,516.55 16,707,046.00 40,668,609.39 40,046,372.92 32,008,029.85 717,192,775.88 4,803,320.41
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with public
offer
Operating
3,281,892,190.25 386,083,038.36 296,638,967.53 40,259,066.14 789,746,319.57 85,033,872.89 965,490,898.85 193,932,427.03 318,704,117.24
income
Net Profit 986,191,282.57 17,220,710.15 2,621,911.81 1,270,359.13 16,990,982.18 -81,676,062.89 23,985,548.31 -27,586,993.78 -2,681,589.41 113,197,008.93 -244,509.99
Net profit
from
discontinued
operations
Other
comprehensive -443,405.41 35,550,850.22
incomes
Total
comprehensive 985,747,877.16 52,771,560.37 2,621,911.81 1,270,359.13 16,990,982.18 -81,676,062.89 23,985,548.31 -27,586,993.78 -2,681,589.41 113,197,008.93 -244,509.99
income
Dividends
received from
associated
6,500,530.62
enterprises in
the current
year
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Opening Balance/Amount Incurred in Previous Period
FAW Changchun
Changchun Wabco FAW Changchun Foshan Diyiyuan
Sanguard Ansteel Steel Suzhou Zhito FAW Jiefang Fujie Changchun
First Automobile Automotive Baoyou Jiefang Steel New Energy
Automobile Processing and Technology Co., (Tianjin) Technology SmartLink Automotive Test
Finance Co., Ltd. Control System Processing and Technology Co.,
Insurance Co., Ltd. Distribution Co., Ltd. Industry Co., Ltd. Center Co., Ltd.
Co., Ltd. Distribution Co., Ltd. Ltd.
Ltd.
Current assets 60,775,261,687.53 1,702,254,232.36 269,973,515.28 34,757,850.89 357,052,308.05 435,005,995.30 2,019,060,250.13 175,926,690.46 74,360,794.55 1,905,889,144.98
Non-current assets 113,266,395,863.62 876,220,650.46 61,635,140.40 24,179,782.51 49,442,981.99 86,241,055.85 845,687,497.81 183,160,633.97 1,980,391.85 1,778,261,365.48
Total assets 174,041,657,551.15 2,578,474,882.82 331,608,655.68 58,937,633.40 406,495,290.04 521,247,051.15 2,864,747,747.94 359,087,324.43 76,341,186.40 3,684,150,510.46
Current liabilities 152,572,057,589.80 409,136,482.45 111,751,776.05 18,443,724.53 205,065,072.99 127,443,900.05 2,188,704,666.79 286,751,551.15 2,530,641.78 148,517,574.12
Non-current
373,433,560.68 1,187,649,264.86 2,108,533.06 905,831,430.48 301,718,046.26 90,779,279.56 123,521,374.14
liabilities
Total liabilities 152,945,491,150.48 1,596,785,747.31 111,751,776.05 18,443,724.53 207,173,606.05 1,033,275,330.53 2,490,422,713.05 377,530,830.71 2,530,641.78 272,038,948.26
Net Assets 21,096,166,400.67 981,689,135.51 219,856,879.63 40,493,908.87 199,321,683.99 -512,028,279.38 374,325,034.89 -18,443,506.28 73,810,544.62 3,412,111,562.20
Minority equity 1,212,589,189.69 -1,056,387.18 448,669,357.62
Equity attributable
to shareholders of 19,883,577,210.98 981,689,135.51 219,856,879.63 40,493,908.87 199,321,683.99 -512,028,279.38 374,325,034.89 -17,387,119.10 73,810,544.62 2,963,442,204.58
the parent company
Shares of net assets
calculated as per
4,342,434,077.83 171,795,598.71 87,942,751.83 16,197,563.58 43,464,086.43 -131,488,862.14 37,432,503.49 -6,085,491.68 33,214,745.08 433,551,594.53
the shareholding
proportion
Adjustments -4,625,319.38 131,488,862.14 -449,647.25 6,085,491.68 267,105,032.74
--Goodwill
--Unrealized profits
from internal -449,647.25
transactions
--Others -4,625,319.38 131,488,862.14 6,085,491.68 267,105,032.74
Book value of
equity investment
4,337,808,758.45 171,795,598.71 87,942,751.83 16,197,563.58 43,464,086.43 36,982,856.24 33,214,745.08 700,656,627.27
in associated
enterprises
Fair value of equity
investment in
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associated
enterprises with
public offer
Operating income 3,209,535,678.73 436,757,499.61 290,397,008.90 29,994,307.74 688,788,120.17 35,847,499.57 1,389,765,322.96 159,572,163.42 240,465,225.12
Net Profit 1,165,863,071.10 22,325,313.14 4,167,069.20 -916,143.61 14,884,160.46 -94,145,183.33 18,284,853.78 -36,269,129.74 -233,646.64 70,700,030.55
Net profit from
discontinued
operations
Other
comprehensive 1,185,724.65 15,630,049.55
incomes
Total
comprehensive 1,167,048,795.75 37,955,362.69 4,167,069.20 -916,143.61 14,884,160.46 -94,145,183.33 18,284,853.78 -36,269,129.74 -233,646.64 70,700,030.55
income
Dividends received
from associated
4,835,877.87 6,892,912.77
enterprises in the
current year
Other description
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(4) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Unrecognized Losses in Accumulated
Unrecognized Losses
Name of Joint Ventures the Current Period (or Unrecognized Losses at
Accumulated in Prior
or Associated Enterprises Net Profit Shared in the the End of the Current
Periods
Current Period) Period
Suzhou Zhito Technology
131,488,862.14 52,509,372.59 183,998,234.73
Co., Ltd.
SmartLink 6,085,491.68 10,344,079.45 16,429,571.13
Other description
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 the Previous
Account item Amount Incurred in Current Period
Period
Government subsidies 209,501,338.40 193,604,585.44
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.
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(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.
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.
The accounts receivable of the top five customers account for 72.44% of the total accounts receivable of the
Company. Other receivables of the top five companies with debts account for 76.54% of the total other receivables
of the Company.
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.
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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 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 June 30, 2024, the unused bank loan amount of the Company is CNY 10.291 billion.
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 June 30, 2024.
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 June 30, 2024, 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.
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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 of June 30, 2024, the Company’s asset-liability ratio is 69.68%.
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
Other description
XIII. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: CNY
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Ongoing fair
-- -- -- --
value measurement
(Ⅰ) Other equity
instrument 480,780,000.00 480,780,000.00
investments
Total assets
continuously
480,780,000.00 480,780,000.00
measured at fair
value
Ⅱ. Non-continuous
fair value -- -- -- --
measurement
2. Basis for determination of market prices for continuous and non-continuous level I measurement items at
fair value
Level I: Quotations for the same assets or liabilities in active markets (unadjusted).
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3. 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).
4. 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.
5. Others
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
Proportion of Voting Rights of
Name of Parent Registered Nature of Registered
the Parent the Parent
Company address business Capital
Company in the Company in the
Company Company
Production and
sales of
FAW Changchun 7,800,000.00 66.19% 66.19%
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, see Section 10 of the Notes to the Financial Report, Ⅴ Interests in
other entities, 1.
3. Information on joint ventures and associated enterprises of the Company
For details of the significant joint ventures or associated enterprises of the Company, see Section 10 of the Notes
to the Financial Report, X Interests in other entities, 2.
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 Enterprises Relationship with the Company
Associated enterprise of the Company, the same
First Automobile Finance Co., Ltd.
ultimate controlling party
Sanguard Automobile Insurance Co., Ltd. Associated enterprise of the Company, the same
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ultimate controlling party
Associated enterprise of the Company, the same
Changchun Automotive Test Center Co., Ltd.
ultimate controlling party
FAW Changchun Ansteel Steel Processing and
Associated enterprise of the Company
Distribution Co., Ltd.
Changchun Wabco Automotive Control System Co.,
Associated enterprise of the Company
Ltd.
Suzhou Zhito Technology Co., Ltd. Associated enterprise of the Company
FAW Changchun Baoyou Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co., Ltd.
FAW Jiefang Fujie (Tianjin) Technology Industry Co.,
Associated enterprise of the Company
Ltd.
SmartLink Associated enterprise of the Company
Foshan Diyiyuan New Energy Technology Co., Ltd. Associated enterprise of the Company
Jiefang Times New Energy Technology Co., Ltd. Joint enterprise of the Company
Diyi AESC New Energy Power Technology (Wuxi)
Associated enterprise of the Company
Co., Ltd.
Other description: none
4. Information on other related parties
Relationship between Other Related Parties and the
Names Of Other Related Parties
Company
China FAW Group Import & Export Co., Ltd. The same ultimate controlling party
Changchun FAW Automobile Culture Communication
The same ultimate controlling party
Co., Ltd.
FAW Changchun Automobile Trading Service Co.,
The same ultimate controlling party
Ltd.
FAW Asset Management Co., Ltd. The same ultimate controlling party
FAW Foundry Co., Ltd. The same ultimate controlling party
FAW Zhixing Technology (Nanjing) Co., Ltd. The same ultimate controlling party
FAW Logistics Co., Ltd. The same ultimate controlling party
FAW Logistics (Changchun Lushun) Storage and
The same ultimate controlling party
Transportation Co., Ltd.
FAW Logistics (Qingdao) Co., Ltd. The same ultimate controlling party
FAW Logistics (Chengdu) Co., Ltd. The same ultimate controlling party
FAW Mold Manufacturing Co., Ltd. The same ultimate controlling party
FAW Harbin Light Automobile Co., Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co., Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co., Ltd. The same ultimate controlling party
FAW (Dalian) International Logistics Co., Ltd. The same ultimate controlling party
Sanguard Automobile Insurance Co., Ltd. The same ultimate controlling party
Wuxi Sawane Spring Co., Ltd. The same ultimate controlling party
Qiming Information Technology Co., Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co., Ltd. The same ultimate controlling party
FAW Changchun Comprehensive Utilization Co., Ltd. Other related parties
FAW Changchun Yanfeng Visteon Electronics Co.,
Other related parties
Ltd.
FAW Changchun Communication Technology Co., Other related parties
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Ltd.
Changchun FAW United Casting Company Other related parties
Changchun FAWAY Automobile Components Co.,
Other related parties
Ltd.
Changchun FAWSN Group Co., Ltd. Other related parties
Changchun Yidong Clutch Co., Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co., Ltd.
FAW Jingye Engine Co., Ltd. Other related parties
FAW Jilin Automobile Co., Ltd. Other related parties
FAW Hongta Yunnan Automobile Manufacturing Co.,
Other related parties
Ltd.
Cinda FAW Commercial Factoring Co., Ltd. Other related parties
Wuxi CRRC New Energy Automobile Co., Ltd. Other related parties
Shandong Pengxiang Automobile Co., Ltd. Other related parties
United Fuel Cell System R&D (Beijing) Co., Ltd. Other related parties
Jilin Checheng Garden Hotel Co., Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
Hongqi Intelligent Mobility Technology (Beijing) Co.,
Other related parties
Ltd.
Grammer Vehicle Parts (Harbin) Co., Ltd. Other related parties
Fawer Auto Parts 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
Is the
Content of Amount Incurred
Amount Incurred Approved Transactio
Related Parties Related in the Previous
in Current Period Transaction Amount n Amount
Transaction Period
Exceeded
Goods purchase
China FAW Group
and reception of 168,278,364.51 360,000,000.00 No 155,846,981.56
Corporation Limited
labor services
FAW Harbin Light Goods purchase
Automobile Co., and reception of 34,043,954.78 138,020,000.00 No 32,547,680.87
Ltd. labor services
Goods purchase
FAW Logistics Co.,
and reception of 132,075,955.87 495,900,000.00 No 195,120,017.33
Ltd.
labor services
Goods purchase
FAW Logistics
and reception of 190,769,196.12 426,220,000.00 No 119,111,915.14
(Qingdao) Co., Ltd.
labor services
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Goods purchase
FAW Foundry Co.,
and reception of 384,030,084.81 931,140,000.00 No 413,071,742.20
Ltd.
labor services
Goods purchase
FAW Forging (Jilin)
and reception of 132,632,358.53 557,310,000.00 No 191,850,549.63
Co., Ltd.
labor services
China FAW Group Goods purchase
Import & Export and reception of 114,352,745.51 375,350,000.00 No 62,900,925.02
Co., Ltd. labor services
Qiming Information Goods purchase
Technology Co., and reception of 37,009,622.81 194,010,000.00 No 72,665,910.12
Ltd. labor services
Changchun Goods purchase
Automotive Test and reception of 6,343,840.40 119,170,000.00 No 22,796,281.44
Center Co., Ltd. labor services
The Ninth Institute
of Project Planning Goods purchase
& Research of China and reception of 159,432,158.11 235,580,000.00 No 35,812,164.45
Machinery Industry labor services
(FIPPR)
FAW Changchun
Ansteel Steel Goods purchase
Processing and and reception of 198,996,257.45 516,630,000.00 No 156,577,508.70
Distribution Co., labor services
Ltd.
FAW Changchun
Baoyou Jiefang Goods purchase
Steel Processing and and reception of 227,909,641.46 502,720,000.00 No 101,309,325.27
Distribution Co., labor services
Ltd.
Goods purchase
SmartLink and reception of 115,585,042.51 302,560,000.00 No 89,982,268.22
labor services
Goods purchase
Changchun Yidong
and reception of 107,551,528.62 250,180,000.00 No 103,546,734.02
Clutch Co., Ltd.
labor services
Goods purchase
Fawer Auto Parts
and reception of 768,424,274.21 1,972,380,000.00 No 751,551,871.30
Co., Ltd.
labor services
Goods purchase
Changchun FAWSN
and reception of 286,249,843.64 604,920,000.00 No 280,903,728.09
Group Co., Ltd.
labor services
Changchun FAWAY
Goods purchase
Automobile
and reception of 212,166,163.52 585,000,000.00 No 181,104,399.46
Components Co.,
labor services
Ltd.
FAW Jilin Goods purchase
Automobile Co., and reception of 24,828,172.39 251,930,000.00 No 2,367,964.59
Ltd. labor services
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Shandong
Goods purchase
Pengxiang
and reception of 167,405,214.29 723,730,000.00 No 321,749,405.78
Automobile Co.,
labor services
Ltd.
Grammer Vehicle Goods purchase
Parts (Harbin) Co., and reception of 128,212,162.85 284,590,000.00 No 45,950,885.93
Ltd. labor services
China FAW Group Goods purchase
Co., Ltd. and other and reception of 139,488,038.44 489,900,000.00 No 194,637,679.90
related parties labor services
Statement of goods sales/rendering of services
Unit: CNY
Content of Related Amount Incurred in Amount Incurred in
Related Parties
Transaction Current Period the Previous Period
China FAW Group Import & Export Co., Selling goods and
8,493,521,248.00 6,728,264,167.89
Ltd. providing services
FAW Jiefang Fujie (Tianjin) Technology Selling goods and
568,251,081.37 1,213,457,947.93
Industry Co., Ltd. providing services
Selling goods and
SmartLink 4,181,200.56 66,851,895.14
providing services
Jiefang Times New Energy Technology Selling goods and
647,603,840.05
Co., Ltd. providing services
FAW Changchun Comprehensive Selling goods and
75,447,154.97 100,636,434.81
Utilization Co., Ltd. providing services
China FAW Group Co., Ltd. and other Selling goods and
76,963,064.64 67,374,869.64
related parties providing services
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company, as the lessor:
Unit: CNY
Lease Income Lease Income
Name of Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
Changchun Automotive Test Center Co.,
Houses and Buildings 1,288,392.99
Ltd.
FAW Houses and Buildings 774,875.72 1,017,306.92
Fawer Auto Parts Co., Ltd. Houses and Buildings 197,702.76 197,702.76
FAW Changchun Communication
Land 22,018.35
Technology Co., Ltd.
Shandong Pengxiang Automobile Co., Houses, buildings and
386,020.18 377,350.46
Ltd. land
FAW Changchun Baoyou Steel Processing Plant 1,059,049.54
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and Distribution Co., Ltd.
Foshan Diyiyuan New Energy Technology
Building 48,441.12
Co., Ltd.
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The Company, as the lessee:
Unit: CNY
Rental
expenses for Variable lease
simplified payments not
Interest Expense on Lease Increased right-
short-term included in the Rent Paid
Liabilities Incurred of-use assets
leases or low- measurement of
value asset lease liabilities
leases
Type of Leased Amo
Name of lessor Amou Amou Amou
Assets unt Amou Amou
nt nt nt
Incur nt nt
Incurr Incurr Amount Incurr
red Incurr Amount Amount Amount Incurr
ed in ed in Incurred in ed in
in ed in Incurred in Incurred in the Incurred in the ed in
the the Current the
Curr Curren Current Period Previous Period Previous Period Curren
Previo Previo Period Previo
ent t t
us us us
Perio Period Period
Period Period Period
d
FAW Group House and land 2,132,938.00
Houses and
FAW 3,839,917.11 112,555.99 22,096.94
Buildings
Changchun
Houses and
Automotive Test 2,335,846.88 55,363.78
Buildings
Center Co., Ltd.
Description of related leases
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(3) Remuneration of key management personnel
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Remuneration of key management
5,382,500.00 4,467,250.06
personnel
Note 1: Due to the adjustment of statistical caliber, the change occurred in the same period last year.
(4) Other related transactions
Interest income and interest expense
Amount incurred in
Content of Related Amount incurred in the
Related Parties the current period
Transaction previous period (CNY)
(CNY)
First Automobile Finance Co.,
Interest income 61,055,123.68 59,863,417.16
Ltd.
Deposits and interests in finance companies
Ending balance Ending balance of the
Project name Related Parties Transaction content
(CNY) previous year (CNY)
Deposits and interests of
First Automobile finance company
Monetary capital 8,678,069,325.92 14,046,575,246.78
Finance Co., Ltd. included in bank
deposits
Equity investment
Amount incurred in the current Amount incurred in the previous
Item
period (CNY) period (CNY)
Changchun Automotive Test Center Co.,
670,872,897.94
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
Accounts
FAW 443,661.84 2,129.58 2,150,000.00 10,320.00
receivable
FAW Harbin Light
Accounts
Automobile Co., 3,310,192.84 4,601.41 260,081,914.30 261,998.72
receivable
Ltd.
China FAW Group
Accounts
Import & Export 7,446,827,018.24 21,870,950.49 565,045,453.53 1,438,890.29
receivable
Co., Ltd.
FAW Asset
Accounts
Management Co., 874,946.68 456,782.67 454,999.94 454,999.94
receivable
Ltd.
Accounts FAW Hongta 43,106,461.34 11,709,465.17 54,814,238.73 11,781,810.57
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receivable Yunnan Automobile
Manufacturing Co.,
Ltd.
Suzhou Zhito
Accounts
Technology Co., 25,032.67 120.16
receivable
Ltd.
Accounts
SmartLink 1,243,517.38 2,755.27 5,106,986.20 5,106.99
receivable
Jiefang Times New
Accounts
Energy Technology 801,428,696.29 2,133,786.12 193,088,998.31 743,368.60
receivable
Co., Ltd.
Accounts Changchun Yidong
1,168,165.53 5,607.19 15,885.93 76.25
receivable Clutch Co., Ltd.
Accounts Fawer Auto Parts
66,687.97 320.10
receivable Co., Ltd.
Accounts Changchun FAWSN
19,816.32 95.12
receivable Group Co., Ltd.
United Fuel Cell
Accounts
System R&D 177,876.10 853.81 210,717.10 1,011.44
receivable
(Beijing) Co., Ltd.
Changchun FAWAY
Accounts Automobile
8,670.94 41.62 8,670.94 41.62
receivable Components Co.,
Ltd.
Accounts FAW Jingye Engine
1,820,957.23 1,820,957.23 1,820,957.23 1,820,957.23
receivable Co., Ltd.
FAW Changchun
Accounts
Yanfeng Visteon 2,722.49
receivable
Electronics Co., Ltd.
Shandong
Accounts Pengxiang
92,917.44 13,086.18 62.81
receivable Automobile Co.,
Ltd.
Grammer Vehicle
Accounts
Parts (Harbin) Co., 124,587.00 116,052.30 557.05
receivable
Ltd.
FAW Changchun
Accounts
Comprehensive 24,427.35 117.25
receivable
Utilization Co., Ltd.
Qiming Information
Accounts
Technology Co., 131,897.06 633.11
receivable
Ltd.
Other
FAW 59,722.27
receivables
Other FAW Logistics Co.,
323,318.34 323.32 55,370.79 1,688.81
receivables Ltd.
Other FAW Foundry Co.,
2,439.14
receivables Ltd.
Other China FAW Group 363,892.85 2,547.25
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receivables Import & Export
Co., Ltd.
FAW Asset
Other
Management Co., 386,818.51 3,124,921.61 93,785.11
receivables
Ltd.
Other
SmartLink 9,567,968.06 291,823.02 7,597,737.61 231,731.00
receivables
Other FAW Forging (Jilin)
23,548.67 718.23
receivables Co., Ltd.
FAW Mold
Other
Manufacturing Co., 19,983.53 609.50
receivables
Ltd.
FAW Logistics
(Changchun
Other
Lushun) Storage and 1,219.65 37.20
receivables
Transportation Co.,
Ltd.
FAW Mold
Prepayment
Manufacturing Co., 24,958,345.36 12,268,345.36
s
Ltd.
China FAW Group
Prepayment
Import & Export 97,893,842.46 291,602,226.68
s
Co., Ltd.
Qiming Information
Prepayment
Technology Co., 1,300,611.20 2,083,957.10
s
Ltd.
Changchun
Prepayment
Automotive Test 29,773,068.93 26,426,263.51
s
Center Co., Ltd.
The Ninth Institute
of Project Planning
Prepayment
& Research of China 867,810.00 600,000.00
s
Machinery Industry
(FIPPR)
Prepayment
SmartLink 1,682,000.00 5,473,400.00
s
FAW Jilin
Prepayment
Automobile Co., 3,757,511.16 12,256,098.84
s
Ltd.
Prepayment FAW Foundry Co.,
20,532.03
s Ltd.
(2) Payables
Unit: CNY
Beginning Book
Project Name Related Parties Ending book balance
Balance
Accounts
FAW 6,188,299.81 29,476,172.06
payable
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Accounts
FAW Harbin Light Automobile Co., Ltd. 19,833,783.87 65,513,752.89
payable
Accounts
Sanguard Automobile Insurance Co., Ltd. 837,164.00 2,822,789.08
payable
Accounts
FAW Logistics Co., Ltd. 62,541,066.13 80,290,107.51
payable
Accounts FAW Logistics (Changchun Lushun) Storage
12,733,958.63 8,629,745.71
payable and Transportation Co., Ltd.
Accounts
FAW Logistics (Chengdu) Co., Ltd. 971,125.36
payable
Accounts
FAW Logistics (Qingdao) Co., Ltd. 122,291,453.83 104,662,732.36
payable
Accounts
FAW (Dalian) International Logistics Co., Ltd. 1,146,147.03 6,942,812.41
payable
Accounts
FAW Foundry Co., Ltd. 62,978,613.78 44,286,964.68
payable
Accounts
FAW Forging (Jilin) Co., Ltd. 14,995,105.72 76,891,932.23
payable
Accounts
FAW Mold Manufacturing Co., Ltd. 198,377.90 1,133,423.20
payable
Accounts
China FAW Group Import & Export Co., Ltd. 386,921.09 2,678,724.16
payable
Accounts
Qiming Information Technology Co., Ltd. 25,145,671.35 32,857,375.09
payable
Accounts
FAW Asset Management Co., Ltd. 452,360.34 226,180.17
payable
Accounts
FAW Zhixing Technology (Nanjing) Co., Ltd. 56,300.00 16,200.00
payable
Accounts FAW Changchun Automobile Trading Service
252,245.05 2,609,565.02
payable Co., Ltd.
Accounts
Wuxi Sawane Spring Co., Ltd. 2,321,062.19 377,207.77
payable
Accounts
Changchun Automotive Test Center Co., Ltd. 238,700.00 6,851,687.59
payable
Accounts FAW Hongta Yunnan Automobile
1,800.00
payable Manufacturing Co., Ltd.
Accounts FAW Changchun Baoyou Jiefang Steel
117,302.64 117,304.27
payable Processing and Distribution Co., Ltd.
Accounts Changchun Wabco Automotive Control System
9,955,310.52 5,414,883.93
payable Co., Ltd.
Accounts
Suzhou Zhito Technology Co., Ltd. 1,517,123.38 10,237.07
payable
Accounts
SmartLink 9,481,061.27 18,624,052.12
payable
Accounts
Changchun FAW United Casting Company 2,826,258.25 39,972.52
payable
Accounts
Changchun Yidong Clutch Co., Ltd. 80,559,751.91 52,247,878.28
payable
Accounts Fawer Auto Parts Co., Ltd. 410,219,192.48 321,637,528.00
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payable
Accounts
Changchun FAWSN Group Co., Ltd. 87,142,731.86 33,612,267.32
payable
Accounts FAW Changchun Communication Technology
894,647.22 61,517.85
payable Co., Ltd.
Accounts Changchun FAWAY Automobile Components
149,954,475.86 142,502,192.54
payable Co., Ltd.
Changchun Automotive Economic and
Accounts Technological Development Zone
212,699.82 451,864.50
payable Environmental Sanitation and Cleaning Co.,
Ltd.
Accounts
Wuxi CRRC New Energy Automobile Co., Ltd. 757,023.75
payable
Accounts FAW Changchun Comprehensive Utilization
177,817.38 2,361,868.60
payable Co., Ltd.
Accounts FAW Changchun Yanfeng Visteon Electronics
52,137.94 51,837.99
payable Co., Ltd.
Accounts
Shandong Pengxiang Automobile Co., Ltd. 86,134,801.21 95,007,782.33
payable
Accounts Hongqi Intelligent Mobility Technology
279,949.22 326,523.80
payable (Beijing) Co., Ltd.
Accounts
Grammer Vehicle Parts (Harbin) Co., Ltd. 53,590,737.22 10,120,909.07
payable
Accounts
Hainan Tropical Automobile Test Co., Ltd. 1,625,476.03
payable
Accounts Changchun FAW International Tendering Co.,
26,778.00
payable Ltd.
Accounts
FAW Logistics (Foshan) Co., Ltd. 4,293.00
payable
Accounts
FAW Group 2,212,607.00
payable
Accounts Dalian Qiming Haitong Information
240,000.00
payable Technology Co., Ltd.
Accounts FAW Changchun Tianqi Process Equipment
178,081.90
payable Engineering Co., Ltd.
Accounts China Unicom Intelligent Network Technology
30,249.00
payable Co., Ltd.
Accounts FAW Changchun Industrial Shuixing Rubber
15,197.33
payable and Plastic Products Co., Ltd.
Other
FAW Group 1,557,231.25
payables
Other
FAW 4,185,509.65 95,802,940.17
payables
Other
Sanguard Automobile Insurance Co., Ltd. 78,000.00 77,800.00
payables
Other
FAW Mold Manufacturing Co., Ltd. 38,494,533.47 17,227,387.87
payables
Other
China FAW Group Import & Export Co., Ltd. 14,308,220.88 3,485,617.92
payables
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Other
Qiming Information Technology Co., Ltd. 14,242,385.77 21,046,660.22
payables
Other
Changchun Automotive Test Center Co., Ltd. 778,615.62 26,847,716.00
payables
Other The Ninth Institute of Project Planning &
15,330,311.40 94,265,971.56
payables Research of China Machinery Industry (FIPPR)
Other FAW Changchun Baoyou Jiefang Steel
2,413,738.39
payables Processing and Distribution Co., Ltd.
Other
SmartLink 79,133.00 1,876,477.00
payables
Other
Changchun Yidong Clutch Co., Ltd. 455,297.19
payables
Other
Fawer Auto Parts Co., Ltd. 18,670,798.96 10,095,378.21
payables
Other FAW Changchun Communication Technology
2,221,042.13 3,062,361.99
payables Co., Ltd.
Other
Shandong Pengxiang Automobile Co., Ltd. 800,000.00 1,040,000.00
payables
Other FAW Hongta Yunnan Automobile
134,832,393.40
payables Manufacturing Co., Ltd.
Other
FAW Harbin Light Automobile Co., Ltd. 8,241,822.24
payables
Other
Changchun Faw Service Trade Co., Ltd. 320,000.00
payables
Other
Suzhou Zhito Technology Co., Ltd. 10,000.00
payables
Other
FAW Asset Management Co., Ltd. 3,925.62
payables
Contract
China FAW Group Import & Export Co., Ltd. 9,195,426.75 4,057,439.29
liabilities
Contract
FAW Asset Management Co., Ltd. 20,698.19
liabilities
Contract
Changchun Faw Service Trade Co., Ltd. 5,193,035.42 28,117,018.95
liabilities
Contract
Suzhou Zhito Technology Co., Ltd. 176,990.83 334,400.00
liabilities
Contract FAW Jiefang Fujie (Tianjin) Technology
4,094,899.58
liabilities Industry Co., Ltd.
Contract Jiefang Times New Energy Technology Co.,
19,003.50
liabilities Ltd.
Contract FAW Changchun Comprehensive Utilization
1,124,205.71 2,463,687.98
liabilities Co., Ltd.
Contract FAW Jiefang Fujie (Tianjin) Technology
309,314,130.28
liabilities Industry Co., Ltd.
Contract
Shandong Pengxiang Automobile Co., Ltd. 492,721.62
liabilities
Contract FAW Changchun Automobile Trading Service
26,830.00
liabilities Co., Ltd.
Contract FAW New Energy Vehicle Sales (Shenzhen) 8,060.00
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liabilities Co., Ltd.
Accounts
received in FAW 387,437.84
advance
Accounts
FAW Changchun Automobile Trading Service
received in 26,830.00
Co., Ltd.
advance
Accounts
received in Fawer Auto Parts Co., Ltd. 107,748.00 107,748.00
advance
Accounts
FAW Changchun Communication Technology
received in 6,422.03
Co., Ltd.
advance
Accounts
received in Shandong Pengxiang Automobile Co., Ltd. 210,381.00
advance
XV. Share-based Payment
1. General conditions of share-based payments
Applicable □Not applicable
Unit: CNY
Shares
Shares granted
exercised in Shares unlocked in the current Shares invalidated in the current
in the current
Grantee the current period period
period
category period
Quant Amo Quan Amo
Quantity Amount Quantity Amount
ity unt tity unt
Manager 13,107,301.00 50,594,181.86 15,479,987.00 97,950,033.45
Total 13,107,301.00 50,594,181.86 15,479,987.00 97,950,033.45
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
Restricted shares are determined according to the
Measures for determining the fair value of equity
instruments on the grant date closing price on the grant date, and stock options are
determined according to the B-S option pricing model.
Important parameters of fair value of equity
instruments on the grant date Quoted prices in active markets
Basis for determining the number of exercisable The Company determines the number according to the
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equity instruments Proposal on the Restricted Share Incentive Plan of
FAW JIEFANG GROUP CO., LTD. (Draft) and Its
Summary, 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.
Reasons for significant differences between current
None
estimates and previous estimates
Aggregate amount of equity-settled share-based
53,722,176.82
payment charged to the capital reserve
Total expenses recognized by equity-settled share-
-24,775,825.33
based payment in the current period
Other description
3. Cash-settled share-based payment
□Applicable Not applicable
4. Share-based payment expenses in the current period
Applicable □Not applicable
Unit: CNY
Equity-settled share-based payment Cash-settled share-based payment
Grantee category
expenses expenses
Manager 605,418.43
Total 605,418.43
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 June 30, 2024.
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2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Court of Subject amount Case
Plaintiff Defendant Cause of Action
Acceptance (yuan) Progress
China
Changchun Yongchun Automobile
Pacific Lvyuan
Shipping Co., Ltd., Zhang Tianbao, FAW
Insurance District
Jiefang Automobile Co., Ltd., FAW Traffic accident First
Co., Ltd. People’s Court 2,566,400.00
Jiefang Automobile Co., Ltd. Smart liability case instance
Changchun of Changchun
Logistics Branch, Sanguard Automobile
Center City
Insurance Co., Ltd. Jilin Branch
Branch
Yicheng
District
Sun Zaozhuang Jujin Vehicle Co., Ltd., FAW Product liability First
People’s Court 1,580,000.00
Zhongwu Group cases instance
of Zaozhuang
City
Xingning
Wei Chengtie, Nanning Hongfa Logistics District
He Zihua, Traffic accident First
Co., Ltd., FAW Group, Guangxi Jiefang People’s Court 901,417.50
Deng Liwen liability case instance
Automobile Trading Co., Ltd. of Nanning
City
Jiangxi
Shangrao
Lefeng Shenzhen SF Zhida Network Technology Product liability Second
Intermediate 643,091.56
Logistics Co., Ltd., FAW Group cases instance
People’s Court
Co., Ltd.
Huaiyuan
Yuhui District
County
Bengbu Huaxin Automobile Sales and Product liability People’s Court First
Smooth 551,325.93
Service Co., Ltd., FAW Group cases of Bengbu instance
Transport
City
Co., Ltd.
Luoyang
Xin’an County
Nengxin
Luoyang Kayou Automobile Sales and Product liability People’s First
Automobile 452,960.30
Service Co., Ltd., FAW Group cases Court, Henan instance
Transport
Province
Co., Ltd.
Beijing
Founder FAW Jiefang (Qingdao) Automotive Co., Infringement Beijing First
400,000.00
Electronics Ltd. disputes Internet Court instance
Co.,Ltd.
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Zhang Tianbao, Changchun Yongchun
Automobile Shipping Co., Ltd., FAW Kangping
Dong Yan,
Logistics Co., Ltd., Sanguard County
Shang Jia, Traffic accident First
Automobile Insurance Co., Ltd. Jilin People’s Court 391,171.05
Shang Hui, liability case instance
Branch, FAW Jiefang Automobile Co., of Shenyang
Liu Guoying
Ltd. Smart Logistics Branch, FAW City
Jiefang Automobile Co., Ltd.
Sanming
Huatong
Jiefang Changchun
Product liability Second
Automobile FAW Group Intermediate 308,244.66
cases instance
Sales and People’s Court
Service Co.,
Ltd.
Zhang Tianbao, Changchun Yongchun
Automobile Shipping Co., Ltd., FAW Kangping
Logistics Co., Ltd., Sanguard County
Traffic accident First
Liu Zhenyu Automobile Insurance Co., Ltd. Jilin People’s Court 268,262.96
liability case instance
Branch, FAW Jiefang Automobile Co., of Shenyang
Ltd. Smart Logistics Branch, FAW City
Jiefang Automobile Co., Ltd.
As of June 30, 2024, 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.
XVII. Events after the Balance Sheet Date
1. Notes on other events after the balance sheet date
The Company had no events after the balance sheet date to be disclosed as of August 29, 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.
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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 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.
XIX. Notes to Major Items of Parent Company’s Financial Statements
1 Other receivables
Unit: CNY
Item Ending balance Opening balance
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Other receivables 219,864.00 219,864.00
Total 219,864.00 219,864.00
(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
2-3 years 459,006.26 459,006.26
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 Percentage Amount Amount Percentage Amount
proportion proportion
Including:
Provision for bad
debts made by 459,006.26 100.00% 239,142.26 52.10% 219,864.00 459,006.26 100.00% 239,142.26 52.10% 219,864.00
portfolio
Including:
Total 459,006.26 100.00% 239,142.26 52.10% 219,864.00 459,006.26 100.00% 239,142.26 52.10% 219,864.00
Category name of provision for bad debt reserve by combination:
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Provision for bad debts made by portfolio 459,006.26 239,142.26 52.10%
Total 459,006.26 239,142.26
Description of the basis for determining this portfolio:
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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 Expected credit loss
Provision for Bad Debts Expected Credit Total
in the duration for the entire
Losses for the
(credit impairment duration (with
Next 12 Months
not occurred) credit impairment)
Balance as at January 1,
239,142.26 239,142.26
2024
Balance on January 1,
2024 in the current period
Balance as at June 30,
239,142.26 239,142.26
2024
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
4) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
Ending Balance
Nature of total ending
Name of Unit Ending balance Aging of Provision for
Payment balance of other
Bad Debts
receivables
Customer 1 Current account 459,006.26 2-3 years 100.00% 239,142.26
Total 459,006.26 100.00% 239,142.26
2. Long-term equity investment
Unit: CNY
Ending balance Opening balance
Impa
Impai
Item irme
rment
Book balance Book Value Book balance nt Book Value
Provi
Prov
sion
ision
Investmen
t in
21,084,445,613.03 21,084,445,613.03 21,084,445,613.03 21,084,445,613.03
subsidiarie
s
Investmen
t in
associated
4,710,080,557.64 4,710,080,557.64 4,509,604,357.16 4,509,604,357.16
enterprises
and joint
ventures
Total 25,794,526,170.67 25,794,526,170.67 25,594,049,970.19 25,594,049,970.19
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(1) Investment in subsidiaries
Unit: CNY
Opening Increase/Decrease in the Ending
balance current period balance
Opening balance of Additi Redu Impair Ending balance of
Investee
(book value) impairme onal ced ment Oth (book Value) impairme
nt Invest Inves Provisi ers nt
provision ment tment on provision
FAW
Jiefang
Automoti 21,084,445,613.03 21,084,445,613.03
ve Co.,
Ltd.
Total 21,084,445,613.03 21,084,445,613.03
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(2) Investment in associated enterprises and joint ventures
Unit: CNY
Increase/Decrease in the current period
Openin Cash Ending
g divide balanc
balance nds
Addition Investment gains or Adjustment to Chan Impai e of
Opening balance of Reduced and Ending balance
Investor al losses recognized other ges in rment Oth impair
(book value) impair Investme profit (book Value)
Investme under the equity comprehensive other Provi ers ment
ment nt s
nt method income equity sion provisi
provisi declar on
on ed to
pay
I. Joint ventures
II. Associated enterprises
First
Automobil
4,337,808,758.45 192,765,866.35 -96,836.64 4,530,477,788.16
e Finance
Co., Ltd.
Sanguard
Automobil
e 171,795,598.71 2,127,273.48 5,679,897.29 179,602,769.48
Insurance
Co., Ltd.
Subtotal 4,509,604,357.16 194,893,139.83 5,583,060.65 4,710,080,557.64
Total 4,509,604,357.16 194,893,139.83 5,583,060.65 4,710,080,557.64
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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
Reasons for apparent discrepancies between the foregoing information and the information used in the impairment
tests or external information in the previous year
Reasons for apparent discrepancies between the information used in the Company’s impairment tests in the
previous year and the actual situation in the current year
3. Investment income
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Long-term equity investment
income calculated with cost 353,500,000.00
method
Income from long-term equity
investments accounted for using 194,893,139.83 232,563,045.29
the equity method
Total 548,393,139.83 232,563,045.29
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
Applicable □Not applicable
Unit: CNY
Item Amount Description
Profits or losses on disposal of non-current It refers to the net gain on disposal
746,088.82
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 policies and regulations and enjoyed 209,501,338.40
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 provision for impairment provision for
4,480,000.00
receivables subject to separate impairment test receivables subject to separate
impairment test.
Non-operating income and expenses other than 24,323,682.07 They mainly refer to the net non-
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the above operating income and expenses
Less: amount affected by income tax 44,675,062.74
Total 194,376,046.55 --
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
Profit for the Reporting Weighted average return
on equity Basic earnings per share Diluted earnings per
Period
(CNY/share) share (CNY/share)
Net profit attributable to
ordinary shareholders of 1.93% 0.1034 0.1034
the Company
Net profit attributable to
ordinary shareholders of
the Company after 1.19% 0.0614 0.0614
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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