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一汽解放:2022年半年度报告(英文版)2022-10-29  

                               Full Text of 2022 Semi-annual Report of FAW JIEFANG GROUP CO., LTD.




FAW JIEFANG GROUP CO., LTD.

    Semi-annual Report 2022




             August 31, 2022




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                          Full Text of 2022 Semi-annual Report of FAW JIEFANG GROUP CO., LTD.



          Section I Important Notes, Contents and Definitions

     The Board of Directors and Board of Supervisors, as well as directors,

supervisors and senior executives of the Company guarantee that the contents of

the semi-annual report are true, accurate and complete, there is no false record,

misleading statement or major omission, and shall bear individual and joint legal

responsibilities.

     Hu Hanjie, the person in charge of the Company, Ou Aimin, 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

     Yang Xiao            Director                  Work                 Li Hongjian

    Bi Wenquan            Director                  Work                 Li Hongjian

    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 persons shall maintain sufficient risk awareness of this,

and shall understand the differences between plans, forecasts and commitments.


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    The Company has described the risks that the Company may face in the

future development and the countermeasures in detail in the section of

management discussion and analysis, which shall be noted by investors. 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 ......................................................................... 7

Section III         Management Discussion and Analysis ......................................................................................... 11

Section IV          Corporate Governance.................................................................................................................. 24

Section V           Environmental and Social Responsibilities ................................................................................. 27

Section VI          Important Matters ......................................................................................................................... 38

Section VII         Changes in Shares and Shareholders ........................................................................................... 47

Section VIII Preferred Shares ............................................................................................................................ 57

Section IX          Bonds .............................................................................................................................................. 58

Section X           Financial Report ............................................................................................................................ 59




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                     List of Documents for Future Reference

(I) Financial statements signed and sealed by the person in charge of the Company, the person in
charge of accounting and the person in charge of the accounting organization (chief accountant).


(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
The Company, FAW Jiefang       Refers to   FAW JIEFANG GROUP CO., LTD.
Jiefang Limited                Refers to   FAW JIEFANG AUTOMOTIVE CO., LTD.
FAW Car                        Refers to   FAW Car Co., Ltd.
Car Limited                    Refers to   FAW Bestune Car Co., Ltd.
FAW                            Refers to   China FAW Co., Ltd.
Finance company                Refers to   First Automobile Finance Co., Ltd.
Sanguard Insurance             Refers to   Sanguard Automobile Insurance Co., Ltd.
                                           Board of Directors of FAW JIEFANG GROUP CO.,
Board of Directors             Refers to
                                           LTD.
                                           Shareholders’ Meeting of FAW JIEFANG GROUP
Shareholders’ meeting         Refers to
                                           CO., LTD.
                                           Board of Supervisors of FAW JIEFANG GROUP
Board of Supervisors           Refers to
                                           CO., LTD.
                                           State-owned Assets Supervision and Administration
SASAC                          Refers to
                                           Commission of the State Council
CSRC                           Refers to   China Securities Regulatory Commission
China Securities Depository
                                           Shenzhen Branch, China Securities Depository and
and Clearing Corporation       Refers to
                                           Clearing Corporation Limited
Limited (CSDC)
                                           After FAW Car transfers all assets and liabilities
                                           except the equity and some reserved assets of
                                           Finance Company and Sanguard Insurance to Car
                                           Limited, 100% equity of Car Limited is used as the
Major asset restructuring      Refers to
                                           sold assets and replaced with the equivalent part of
                                           100% equity of Jiefang Limited held by FAW. The
                                           difference is purchased by FAW Car from FAW by
                                           issuing shares and paying cash.
Reporting period               Refers to   January 1, 2022-June 30, 2022
CNY, CNY 10,000, CNY 100
                               Refers to   CNY, CNY 10,000, CNY 100 million
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 which shares are listed       Shenzhen Stock Exchange
 Chinese name of the Company                      FAW JIEFANG GROUP CO., LTD.
 Chinese abbreviation of the Company              FAW Jiefang
 English name of the Company                      FAW JIEFANG GROUP CO., LTD.
 English abbreviation of the Company              FAW Jiefang
 Legal representative of the Company              Hu Hanjie

II. Contact Person and Contact Information

                  Secretary of the Board of Directors         Securities Affairs Representative
 Name           Wang Jianxun                             Yang Yuxin
                No. 2259, Dongfeng Street, Changchun     No. 2259, Dongfeng Street, Changchun
 Address        Automobile Development Zone, Jilin       Automobile Development Zone, Jilin
                Province                                 Province
 Tel.           0431-80918881 0431-80918882              0431-80918881 0431-80918882
 Fax            0431-80918883                            0431-80918883
 E-mail         faw0800@fawjiefang.com.cn                faw0800@fawjiefang.com.cn

III. Other Information

1.   Contact information of the Company

Whether the registered address, office address and postal code, website and e-mail address of the
Company have changed in the reporting period

□ 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 2021 for details.

2.   Information disclosure and preparation location

Whether the information disclosure and preparation location have changed in the reporting period

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□ Applicable   Not applicable

The name of the information disclosure newspaper selected by the Company, the website designated
by the China Securities Regulatory Commission for publishing the semi-annual report, and the
reparation location of the Company's semi-annual report have not changed in the reporting period,
please see the Annual Report 2021 for details.

3.   Other relevant information

Whether other relevant information 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
                                                          Same Period of Last     This Reporting Period
                              This Reporting Period
                                                                Year              over the Same Period
                                                                                       of Last Year
 Operating income (CNY)           22,871,535,261.56         78,600,163,121.16                  -70.90%
 Net profit attributable to
 shareholders of the listed          170,153,887.32          3,268,978,566.54                  -94.79%
 company (CNY)
 Net profit attributable to
 shareholders of the listed
 company after deducting            -106,246,804.18          3,156,099,004.55                 -103.37%
 non-recurring profits and
 losses (CNY)
 Net cash flows from
                                   1,443,137,726.63         15,525,714,363.17                  -90.70%
 operating activities (CNY)
 Basic earnings per share
                                                 0.0366                  0.7047                -94.81%
 (CNY/share)
 Diluted earnings per share
                                                 0.0366                  0.7047                -94.81%
 (CNY/share)
 Weighted average return
                                                 0.65%                 12.46%     Decreased by 11.81%
 on equity
                                At the End of this        At the End of Last      Increase/Decrease at


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                                 Reporting Period               Year                the End of this
                                                                                Reporting Period over
                                                                                 the End of Last Year
 Total assets (CNY)                 69,181,380,718.15      69,765,943,932.81                   -0.84%
 Net assets attributable to
 shareholders of the listed         23,488,321,388.03      26,242,240,723.26                  -10.49%
 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




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                                                                                            Unit: CNY

                    Item                             Amount                       Description
 Profits or losses on disposal of non-
 current assets (including the write-off                               It refers to the net gain on
                                                          42,431.19
 part of the provision for impairment of                               disposal of non-current assets.
 assets withdrawn)
 Government subsidies included in
 current profits and losses (except for
 those closely related to normal business
 operations of the Company, conforming              227,954,740.41
 to national policies and regulations, and
 continuously enjoyed according to
 certain standard quota or quantity)
                                                                       It mainly refers to the reversal
 Reversal of impairment provision for
                                                                       of impairment provision for
 receivables subject to separate                      12,000,000.00
                                                                       receivables subject to separate
 impairment test
                                                                       impairment test.
                                                                    They mainly refer to the net
 Non-operating income and expenses
                                                      91,843,871.67 non-operating income and
 other than the above
                                                                       expenses
 Less: amount affected by income tax                  55,440,351.77
 Total                                              276,400,691.50
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and
loss:
□ Applicable   Not applicable
There is no specific condition of other 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 business
        The Company is a commercial vehicle manufacturer which produces heavy, medium and light
trucks, buses, as well as core components such as engines, transmissions and axles, and has a
complete manufacturing system covering raw materials, core components, key large assemblies and
complete vehicles. The products of the Company are mainly used in market segments such as traction,
cargo carrying, dumping, special purposes, highway passenger transport, bus passenger transport, etc.,
and the Company also provides standardized and customized commercial vehicle products.
        The Company is committed to becoming a "China's first and world-class" provider of intelligent
transportation solutions, focusing on the main production lines, insisting on innovation-driven and
reform-driven, and creating leading advantages.
(II) Industry situation
        In the first half of 2022, the frequent epidemic situation across the country as well as the
influence of international conflicts and geopolitics brought about great uncertainties to the global
economic recovery and the stability of commodity prices, supply chains and grain output. The
demand is inhibited because the domestic logistics industry is in a serious "surplus" state and due to
the impact of high oil and gas prices and the epidemic situation. The sales volume of commercial
vehicle industry in the first half of 2022 was 1.702 million, which was reduced by 41.2% year-on-
year, and the sales volume of medium and heavy truck industry was 437,000, which was reduced by
62.1% year-on-year. The commercial vehicle industry is highly mature and the competition is fierce.
The current sluggish market has intensified the competition among leading enterprises in the industry
and further reduced the living space of other enterprises. The concentration of market share in the
industry continues to increase, resulting in the situation that the strong will remain strong.
(III)      Operation situation
        In the first half of 2022, when facing changes and challenges in the internal and external
environment, and in addition to taking strict and careful normalized epidemic prevention and control
measures, the Company made early deployment, overall planning, targeted policies, and rapid and

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active adjustments, and also made unprecedented efforts to face the most severe situation and perform
various key tasks steadily and vigorously, therefore, 85,000 medium and heavy trucks were sold, with
a terminal market share of 25.6%, and an increase of 1.7 percentage points over 2021, maintaining
the leading position in the industry; nearly 10,000 vehicles were sold in overseas markets, with a
year-on-year increase of 42%. The main work in the first half of 2022 was as follows:
     1. Focusing on the mainstream product line and creating leading advantages. In terms of
platform products, the Company continued to create product advantages, and the three major platform
product projects were promoted in order. In terms of series products, more than 100 series of new
products such as J6V flat-floor tractors, J6L exclusive flat-floor trucks, 2022 new J6P dump trucks
and new J6L series mixer trucks were launched; a sales volume of nearly 50,000 and a market share
of more than 12% were achieved, with a leading position in the market segment. In terms of new
energy products, more than 40 new energy heavy trucks were developed; 7 new medium trucks were
developed and water-cooled battery switching was completed; more than 30 new light trucks were
developed.
     2. Adhering to innovation-driven development and building core advantages. In terms of
technological innovation, the first heavy-duty commercial vehicle in-cylinder direct injection
hydrogen engine in China was ignited successfully; the high-speed oil-cooled motor project
completed the trial production of the first batch of functional prototypes in China and passed the
performance test; the E/E architecture of the second-generation commercial vehicle was adapted to
all models. In terms of business innovation, the planning of fleet management solutions for three
scenarios: urban construction muck, intelligent refrigeration and intelligent mixing, was completed;
the investigation of business types such as "second-hand vehicles" and "online freight platform" was
completed, and the implementation of business type innovation was accelerated.
     3. Adhering to change-driven development and improving the transformation ability. In terms
of management reform, the company established the headquarters medium and heavy vehicles
production line and released the IPD2.0 process successfully; the IPD reform of Qingdao medium
and heavy vehicle product line and light vehicle product line was launched officially; integrated
reform was promoted vigorously to realize the concentration of resources and unified planning in the
IT field; attentions were paid to key areas such as marketing and Internet of Vehicles, the digital co-
creation team plan was designed to provide great support to scenario planning. In terms of personnel
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system reform, the construction of three teams was strengthened and more than 800 talents were
introduced. Attentions were paid to value creation and incentives and constraints such as sales betting
were implemented to effectively stimulate the motivation of all employees.
     4. Focusing on winning the following "three battles" to improve the system, capability and
implementation: (1) Market leadership: The Company sold 85,000 medium and heavy vehicles by
seizing the opportunities of terminal market and focusing on a good sales performance in the first
quarter, competition for the Winter Olympics and key markets; sold 15,000 light vehicles by focusing
on two products, i.e. refrigeration and LINKTOUR; sold nearly 10,000 vehicles overseas by focusing
on key markets, border trade, major customers and light trucks. (2) Profitability improvement: The
Company strengthened cost reduction, especially material cost, and canceled and optimized more
than 700 projects following the principle of "output reduction and efficiency increase"; carried out
value creation in multiple dimensions, with nearly 3,000 proposals submitted by all employees. (3)
Digital and intelligent transformation: The Company held the conference on the deployment of digital
and intelligent transformation and upgrading to clarify the "1143" work framework, and
comprehensively accelerated the transformation in 8 major fields; quickly responded to the digital
construction of epidemic prevention and continuously reduced costs and increased efficiency;
promoted digital and intelligent transformation and clarified the vision and path of digital and
intelligent transformation by focusing the four fields of marketing, R&D, supply chain and operation
and improving the digital capability in data, technology platform and network security.
     In the second half of the year, the Company will continue to implement the spirit of General
Secretary Xi Jinping's important speech during his visit to FAW, perform the "11236" annual key
tasks in a stable way, continue to seize opportunities, occupy the terminal market and reduce inventory
with an unprecedented will, reduce costs and expenses to the unprecedented extent, reduce risks and
strengthen confidence with an unprecedented initiative, do a good job in regular epidemic prevention
and control, complete annual operation and party building tasks, and lay a solid foundation for next
year and winning the 14th Five-Year Plan.


II. Analysis of Core Competitiveness


     The Company adheres to the corporate vision of "being the most proud commercial vehicle


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enterprise and the most trustworthy commercial vehicle brand", the mission of "becoming the China's
first and world-class provider of intelligent transportation solutions and building a more prosperous
society", and the brand concept of "being trustworthy, intelligent and courageous, and benefiting the
world"; takes products and services as the main task, customers and employees as the foundation,
innovation and reform as the driving force; focuses on industry trends and customer needs, and
improves product competitiveness and service level rapidly.
     1. Product research and development: Four major fields: heavy, medium, light and passenger
vehicles are covered. Heavy trucks include six products: FAW Jiefang J7, J6P, J6V, Yingtu, JH6 and
Han V. Medium trucks include three products: FAW Jiefang J6L, JK6 and Long V. Light trucks
include three products: LINKTOUR, J6F and Hu V. Passenger vehicles include road vehicles, new
energy buses, etc. The Company, which is guided by the idea of "leading technology, pioneering
experience, integrated innovation, strengthened application and collaborative efficiency", builds a
strong and complete independent research and development system ranging from foresight
technology, engine, transmission, axle to complete vehicle; forms an efficient collaborative research
and development team of nearly 2,500 people, with five core capabilities: technological innovation,
performance development, lean design, trial production and test certification; creates five technical
platforms of low carbonization, electrification, intelligence, informatization and high quality. It is one
of the commercial vehicle enterprises that master the core technologies of world-class complete
vehicles and three powertrains.
     2. Marketing and procurement: The Company, which is customer value-oriented, has taken the
lead in establishing a fully functional marketing service system. The marketing service network
consisting of over 900 dealers, over 1,000 service stations, over 50 spare parts centers and nearly 100
spare parts dealers covers more than 200 prefecture-level cities in China, with a coverage rate of 96%
prefecture-level cities with more than 1,000 vehicles, and an average service radius in China of 47.5
km. It provides users with 24-hour efficient and high-quality services, and takes lead in the industry.
The Company is committed to integrating global high-quality resources to provide a strong guarantee
for the high reliability of Jiefang trucks. In recent years, the Company has signed contracts with top
enterprises at home and abroad successively, including Huawei, Knorr-Bremse, ZF, Shell, VOSS,
China Unicom, JD and PlusAI, to become strategic partners or establish joint ventures with them.
     3. In terms of production and manufacturing, the Company has the most complete
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manufacturing system in China covering raw materials and core components, key large assemblies
and complete vehicles, and its processing and manufacturing level ranks first in the industry. The
Company has five vehicle bases in Changchun, Qingdao, Chengdu/Guanghan, Liuzhou and Foshan,
three assembly bases in Changchun, Wuxi and Dalian, and three new business bases in Suzhou,
Nanjing and Tianjin.
     4. Product export: The Company’s products are exported to 80 countries and regions such as
Southeast Asia, the Middle East, Latin America, Africa and Eastern Europe. It has more than 70
primary distributors and nearly 300 distributors in almost 40 countries and regions around the world.
The export products include models such as J6, JH6 and Hu V.

III. Analysis of Main Business

General
Please refer to "I. Main Businesses of the Company in the Reporting Period".
Year-on-year Changes of Main Financial Data
                                                                                         Unit: CNY
                                                                  Year-on-
                                                                    year
                       This Reporting     Same Period of Last
                                                                  Increase         Reason for Change
                           Period               Year
                                                                    and
                                                                  Decrease
                                                                            The income is reduced
 Operating                                                                  mainly due to the decrease
                    22,871,535,261.56       78,600,163,121.16       -70.90%
 income                                                                     in sales volume in the
                                                                            current period.
                                                                            The cost is reduced mainly
                                                                            due to the decrease in sales
 Operating cost     21,115,050,469.61       71,861,081,519.02       -70.62%
                                                                            volume in the current
                                                                            period.
                                                                            The expense is reduced
 Selling                                                                    mainly due to the decrease
                        566,490,728.82       1,315,060,101.99       -56.92%
 expense                                                                    in sales volume in the
                                                                            current period.
 Management
                        887,020,116.52       1,103,407,146.33       -19.61%
 cost
 Financial
                        -571,153,971.08       -519,020,299.28       -10.04%
 expense

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                                                                       It is reduced mainly due to
Income tax
                       -171,674.50        452,443,037.35      -100.04% the decrease in profit in the
expense
                                                                       current period.
R&D
                  1,016,316,222.64       1,239,379,205.08       -18.00%
investment
                                                                        This is mainly due to the
Net cash flows                                                          decrease in cash received
from operating    1,443,137,726.63     15,525,714,363.17        -90.70% from sales of goods and
activities                                                              rendering of services in the
                                                                        current period.
Net cash flows
from investing     -674,634,455.38        -697,102,414.01         3.22%
activities
Net cash flows                                                         It mainly refers to the cash
from financing    -3,041,097,420.19       309,046,933.78    -1,084.02% dividends paid in the
activities                                                             current period.
Net increase in                                                        It mainly refers to the cash
cash and cash     -2,272,594,148.94    15,137,658,882.94      -115.01% dividends paid in the
equivalents                                                            current period.
                                                                          The tax is reduced mainly
Taxes and                                                                 due to the decrease in sales
                    106,500,261.51        293,944,056.24        -63.77%
surcharges                                                                volume in the current
                                                                          period.
                                                                          The income is increased
                                                                          mainly due to the increase
Other incomes       230,047,050.32        123,839,818.59        85.76%    in amortization of
                                                                          government subsidies in
                                                                          the current period.
                                                                          This is mainly due to the
Investment                                                                decrease in investment
                    203,908,916.41        387,219,719.37        -47.34%
income                                                                    income recognized in the
                                                                          current period.
                                                                          This is mainly due to the
Credit                                                                    increase in the provision
impairment          -21,826,743.35           6,757,848.51     -422.98%    for impairment of
loss                                                                      receivables in the current
                                                                          period.
                                                                          This is mainly due to the
Income from                                                               increase in income from
                         42,431.19            -183,677.14      123.10%
assets disposal                                                           disposal of fixed assets in
                                                                          the current period.
Non-operating       104,058,106.26          30,755,399.12      238.34%    This is mainly due to the

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 income                                                                                 increase in non-operating
                                                                                        income in the current
                                                                                        period.
Major changes in the Company's profit composition or profit sources in the reporting period: There
is no major change in the Company's profit composition or profit sources in the reporting period.
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
                        22,871,535,261.56             100%      78,600,163,121.16           100%           -70.90%
 income
 By Industries
 Automobile
 manufacturing          22,871,535,261.56        100.00%        78,600,163,121.16       100.00%            -70.90%
 industry
 By Products
 Commercial
                        20,573,298,027.59         89.95%        74,407,776,667.41        94.67%            -72.35%
 vehicle
 Spare parts and
                         2,298,237,233.97         10.05%         4,192,386,453.75         5.33%            -45.18%
 others
 By Areas
 Northeast China,
 North China,
 Southwest China        11,576,136,202.31         50.61%        39,417,498,884.11        50.15%            -70.63%
 and Northwest
 China
 East China, South
 China and South        11,295,399,059.25         49.39%        39,182,664,237.05        49.85%            -71.17%
 Central China


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
                                                                      Gross    Increase/D     Increase/D   Increase/Dec
                      Operating income         Operating cost         Profit   ecrease of     ecrease of     rease of
                                                                      Rate      Operating      Operating    Gross Profit


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                                                                          Income     Cost over    Rate over the
                                                                         over the    the Same     Same Period
                                                                           Same      Period of    of Last Year
                                                                         Period of   Last Year
                                                                         Last Year
 By Industries
 Automobile
                                                                                                  Reduced by
 manufacturing        21,805,259,709.38     20,220,312,403.72   7.27%      -71.68%     -71.37%
                                                                                                  0.98%
 industry
 By products
 Commercial                                                                                       Reduced by
                      20,573,298,027.59     19,087,210,663.60   7.22%      -72.35%     -72.17%
 vehicle                                                                                          0.60%
 Spare parts and                                                                                  Reduced by
                       1,231,961,681.79      1,133,101,740.12   8.02%      -52.24%     -44.55%
 others                                                                                           12.76%
 By areas
 Northeast
 China, North
 China,
                                                                                                  Reduced by
 Southwest            11,036,454,415.32     10,286,125,703.14   6.80%      -71.41%     -71.11%
                                                                                                  0.98%
 China and
 Northwest
 China
 East China,
 South China                                                                                      Reduced by
                      10,768,805,294.06      9,934,186,700.58   7.75%      -71.94%     -71.64%
 and South                                                                                        0.97%
 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

□ 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

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                     At the End of this Reporting Period         End of Last Year
                                                                                                                 Description
                                              Proportion                       Proportion    Increase/Decrease
                                                                                                                  of Major
                          Amount               in Total        Amount           in Total       in Proportion
                                                                                                                  Changes
                                                Assets                           Assets
 Monetary
                       28,545,747,104.70          41.26%   30,761,262,721.40        44.09%             -2.83%
 capital
 Accounts
                         2,033,585,686.23          2.94%    1,279,693,951.70        1.83%               1.11%
 receivable
 Contractual
                            61,968,023.59          0.09%      53,047,687.72         0.08%              0.01%
 assets
 Inventory               9,035,457,594.09         13.06%    9,268,120,531.25        13.28%             -0.22%
 Investment real
                           159,534,670.00          0.23%      80,202,825.09          0.11%             0.12%
 estate
 Long-term
 equity                  5,023,596,387.36          7.26%    4,766,734,671.74        6.83%              0.43%
 investment
 Fixed assets            9,005,998,503.41         13.02%    9,236,789,322.03        13.24%             -0.22%
 Project under
                           966,294,107.55          1.40%     965,997,208.23         1.38%              0.02%
 construction
 Right-of-use
                           121,039,384.71          0.17%     143,766,265.44         0.21%              -0.04%
 assets
 Contract
                         1,898,901,256.47          2.74%    2,700,642,475.91        3.87%              -1.13%
 liabilities
 Lease liabilities          95,066,903.44          0.14%      88,307,218.05         0.13%              0.01%

2.    Main overseas assets
□ Applicable        Not applicable
3.    Assets and liabilities measured at fair value
□ Applicable        Not applicable
4.    Restrictions on asset rights as of the end of the reporting period
     For details, please refer to Note 60 "Assets with restricted ownership or use right" in part VII
"Notes to Items in Consolidated Financial Statements" of Section X - Financial Report.
VI. Investment Analysis
1.    Overall
□ Applicable        Not applicable
2.    Major equity investments acquired in the reporting period
□ Applicable        Not applicable




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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) Investment in derivatives
□ 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. Sale 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 main holding and joint-stock companies
    Applicable         □ Not Applicable
    Major Subsidiaries and Joint-stock Companies affecting over 10% Net Profit of the Company
                                                                                                                                                   Unit: CNY
 Company      Company
                            Main Business     Registered Capital      Total Assets        Net Assets        Operating income    Operating Profit        Net Profit
  Name          Type
                            Development,
FAW
                            manufacturing
JIEFANG
                            and sales of
AUTOMOT      Subsidiaries                     CNY 1,080,301.25      67,583,672,280.41   22,181,594,194.18   22,871,535,261.56    -213,519,399.21       -121,503,853.04
                            complete
IVE CO.,
                            vehicles and
LTD.
                            parts
                            Handling of
                            financial
                            business within
First
                            the Group and
Automobile   Joint-stock
                            other financial   CNY 260,000          161,798,938,446.29   22,538,947,163.89    3,422,338,661.73   1,859,399,149.62      1,405,479,645.81
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: none
    IX. Structured Entities Controlled by the Company
    □ Applicable     Not applicable


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X. Risks Faced by the Company and Countermeasures

(I) Market competition risk
     Risk description: The state of stock competition in the domestic commercial vehicle market will
not change under the effect of factors such as international political situation, economic situation, and
domestic market demand. The Company will face greater market competition pressure in the second
half of the year with foreign automobile enterprises accelerating their deployment in the domestic
market and the increase of wait-and-see mood in commercial vehicle consumption.
     Countermeasures: The Company shall seize market opportunities, launch key campaigns in hot
areas and compete for growth; optimize inventory structure, strengthen inventory management, and
promote rapid digestion of difficult inventory; enrich financial products, strengthen preventive
measures, and prevent and control financial risks accurately; focus on key areas and accelerate the
construction of private networks; improve product development and cover market segment; improve
the channel capability comprehensively. All the above measures are taken to improve the Company's
competitiveness in the market.
(II) Risk of international environmental change
     Risk description: In the second half of the year, the Company will face more uncertainty in
developing international businesses due to the severe international situation, the global epidemic
situation and geopolitical conflicts which are intertwined, the acceleration of Federal Reserve in
interest rate increase, higher downward risk of the world economy, and the increase of ocean freight.
     Countermeasures: The Company shall win key battles and make breakthroughs in key markets
to make sure to reach the set goals; focus on star projects, promote channel layout, deepen
professional cooperation, and achieve breakthroughs in border trade; focus on advantageous fields,
keep up with key projects, and promote breakthroughs in big customers; increase policy support,
improve product development, and move the business team to critical areas.
(III) Policy risk
     Risk description: The impact on the industry will be more obvious due to the issuance of the
regulations on fuel consumption limits of heavy commercial vehicles in the fourth stage and the
implementation of the new regulations on blue-license light trucks in the second half of the year. In
addition, various policies will bring about more variations to the commercial vehicle market due to
environmental factors such as the promotion of multimodal transportation.

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     Countermeasures: The Company shall deeply study and judge the industry changes caused by
policy implementation in the second half of the year according to the research results of existing
policies and regulations; pay attention to the new trend of the industry and use other new policies to
hedge risks; launch products that meet the requirements of the new policy in time to seize the market
opportunity.
(IV) Risk of raw material price fluctuation
     Risk description: The prices of some important raw materials continue to fluctuate due to factors
such as the epidemic situation and the national dual control policy on energy consumption. In the
second half of the year, the prices of important raw materials may rise, which will affect the efficient
and stable state of the existing supply chain and increase the cost.
     Countermeasures: The Company shall establish reasonable reserves to resist the adverse effects
of price fluctuations according to the price change trend of key raw materials; promote the awareness
of internal competition and cooperation, and optimize the procurement cost of bulk raw materials by
improving the management mechanism; optimize the upstream cooperation mechanism, formulate
and implement optimization strategies, and ensure quality and efficiency while optimizing cost.




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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

                                           Participation Ratio of
         Session           Meeting Type                                 Date         Date of Disclosure           Meeting Resolution
                                                  Investors
                                                                                                           Reviewed and approved the
                                                                                                           Proposal on Estimated Amount
                                                                                                           of Daily Related Transactions in
                                                                                                           2022, the Proposal on Estimated
 First extraordinary      Extraordinary                                                                    Amount of Financial Business
                                                                    February 16,
 shareholders’ meeting   shareholders’                 84.94%                     February 17, 2022      with First Automobile Finance
                                                                    2022
 of 2022                  meeting                                                                          Co., Ltd. in 2022, the Proposal
                                                                                                           on Change of Registered Capital
                                                                                                           of the Company and the Proposal
                                                                                                           on Amending the Articles of
                                                                                                           Association.
                                                                                                           Reviewed and approved the 2021
                                                                                                           Annual Work Report of the Board
                                                                                                           of Directors, the 2021 Annual
                                                                                                           Work Report of the Board of
                                                                                                           Supervisors, the 2021 Annual
                          Annual
 2021 annual                                                                                               Financial Statements, the 2021
                          shareholders’                 83.82% April 29, 2022      April 30, 2022
 shareholders’ meeting                                                                                    Profit Distribution Plan, the
                          meeting
                                                                                                           2021 Annual Report and its
                                                                                                           Summary, and the Proposal on
                                                                                                           Electing Li Hongjian as the Non-
                                                                                                           independent Director of the
                                                                                                           Company.
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2. Preferred shareholders with resumed voting rights request to convene an extraordinary
shareholders' meeting

□ Applicable       Not applicable

II. Changes in Directors, Supervisors and Senior Management of the Company

Applicable          □ Not Applicable

         Name                   Position             Type                  Date                Cause
      Li Hongjian               Director           Elected        April 29, 2022
     Liu Changqing              Director             Quit         March 29, 2022           Job changes

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. 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 December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and
the 19th meeting of the 9th Board of Supervisors respectively, reviewed and approved the Proposal
on Granting Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan to
Incentive Objects, and granted 3,721,601 restricted shares to 33 incentive objects. On January 6, 2022,
The Company issued the Announcement on Completion of Registration of Grant of Reserved Part of
Restricted      Shares     in     Phase    I   Restricted    Share   Incentive     Plan   on    CNINFO
(http://www.cninfo.com.cn).
       (2) On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and
the 19th meeting of the 9th Board of Supervisors respectively, reviewed and approved the Proposal
on Adjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share Incentive


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Plan and the Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I
Restricted Share Incentive Plan, and agreed to repurchase and cancel 260,857 shares of all restricted
shares granted to the original 2 incentive objects but not yet released from sale. On January 17, 2022,
the Company issued the Announcement on Completion of Repurchase and Cancellation of Some
Restricted Shares on CNINFO (http://www.cninfo.com.cn).


2.   Implementation of employee stock ownership plan

□ Applicable   Not applicable

3.   Other employee incentive measures

□ Applicable   Not applicable




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                                    Section V          Environmental and Social Responsibilities

I.    Major Environmental Protection Problems

Whether the listed company and its subsidiaries are key pollutant discharging entities announced by the environmental protection authority
Yes       □ No
                    Names of
                                                  Number                                              Pollutant
       Name of        Main                                                                                                       Total
                                  Discharge         of         Distribution of       Discharge       Discharge      Total                     Excessive
     Company or     Pollutants                                                                                                 Approved
                                   Mode          Discharge    Discharge Outlets     Concentration    Standards    Discharge                   Discharge
      Subsidiary   and Specific                                                                                                Discharge
                                                  Outlets                                           Implemented
                    Pollutants
                                  Continuous                 1 for frame, cab and
                                  or                         non-metal coating
                                                                                                                                             No
                   Sewage:        intermittent               respectively, and 1
                                                        4                                54mg/L        800mg/L      11.6632t     630.104t    excessive
                   COD            discharge                  for general
 Truck Factory                                                                                                                               discharge
                                  of                         domestic sewage
 of FAW Jiefang
                                  wastewater                 outlet
 Automotive
                                  Continuous
 Co., Ltd
                   Waste gas:     discharge                  Frame, cab, roof of                                                             No
                   non-methane    during               71    non-metallic               2.8mg/m       120mg/m          7.53t        335.4t   excessive
                   hydrocarbon    waste gas                  coating workshop                                                                discharge
                                  production
                                                                                                                                             No
                   Sewage:        Intermittent               Southeast of the                                         0.3565
                                                        1                                41mg/L        500mg/L                       21.3t   excessive
 Chengdu           COD            discharge                  Company                                                     Ton
                                                                                                                                             discharge
 Branch of FAW
                                  Continuous
 JIEFANG
                   Waste gas:     discharge                                                                                                  No
 AUTOMOTIVE                                                  Roof of coating
                   non-methane    during                2                             2.34mg/m         60mg/m        14.043t        75.91t   excessive
 CO., LTD.                                                   workshop
                   hydrocarbon    waste gas                                                                                                  discharge
                                  production
 Transmission                     Intermittent               1 in the northwest                                                              No
                   Sewage:
 Branch                           discharge             2    corner of substation        57mg/L        500mg/L       1.9318t          10t    excessive
                   COD
 (Transformation                  of                         1 workshop and 1                                                                discharge
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                   Names of
                                                 Number                                              Pollutant
   Name of           Main                                                                                                        Total
                                 Discharge         of         Distribution of       Discharge       Discharge      Total                        Excessive
 Company or        Pollutants                                                                                                  Approved
                                  Mode          Discharge    Discharge Outlets     Concentration    Standards    Discharge                      Discharge
  Subsidiary      and Specific                                                                                                 Discharge
                                                 Outlets                                           Implemented
                   Pollutants
Factory) of                      wastewater                 in the southwest
FAW JIEFANG                                                 corner of substation
AUTOMOTIVE                                                  2 workshop
CO., LTD.
                                 Continuous
                                                            4 for No. 1
                  Waste gas:     discharge                                                                                                     No
                                                            workshop and 1 for
                  non-methane    during                5                             2.99mg/m        120mg/m          0.252t               -   excessive
                                                            the south outside
                  hydrocarbon    waste gas                                                                                                     discharge
                                                            No. 1 workshop
                                 production
                                                            2 for No. 1, No. 2
                                                                                                                                               No
                  Sewage:        Intermittent               and No. 3
Transmission                                           6                               312mg/L        500mg/L          1.51t               -   excessive
                  COD            discharge                  workshops
Branch (Axle                                                                                                                                   discharge
                                                            respectively
Factory) of
                                 Continuous
FAW JIEFANG                                                 8 for No. 1
                  Waste gas:     discharge                                                                                                     No
AUTOMOTIVE                                                  workshop, 7 for No.
                  non-methane    during               20                             2.81mg/ m        120mg/L          1.03t               -   excessive
CO., LTD.                                                   2 workshop, and 5
                  hydrocarbon    waste gas                                                                                                     discharge
                                                            for No. 3 workshop
                                 production
                                 Continuous
                                 or
                                                            South gate of                                                                      No
                  Sewage:        intermittent
Changchun                                              1    sewage treatment           39.5mg/L       500mg/L       0.8631t         4.575t     excessive
                  COD            discharge
Intelligent Bus                                             station                                                                            discharge
                                 of
Branch of FAW
                                 wastewater
JIEFANG
                                 Continuous
AUTOMOTIVE                                                  Roof of painting
                  Waste gas:     discharge                                                                                                     No
CO., LTD.                                                   and welding
                  non-methane    during               12                             1.26mg/m        120mg/m          3.161t         49.5t     excessive
                                                            workshop of the
                  hydrocarbon    waste gas                                                                                                     discharge
                                                            Company
                                 production
Engine Branch
                                 Intermittent
of FAW            Waste gas:                                                                                                                   No
                                 discharge
JIEFANG           non-methane                          3    Workshop roof            1.62mg/m        120 mg/m       0.0264t                -   excessive
                                 of waste
AUTOMOTIVE        hydrocarbon                                                                                                                  discharge
                                 gas
CO., LTD.
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                  Names of
                                                Number                                               Pollutant
   Name of          Main                                                                                                             Total
                                Discharge         of         Distribution of       Discharge        Discharge        Total                          Excessive
 Company or       Pollutants                                                                                                       Approved
                                 Mode          Discharge    Discharge Outlets     Concentration     Standards      Discharge                        Discharge
  Subsidiary     and Specific                                                                                                      Discharge
                                                Outlets                                            Implemented
                  Pollutants
                                                                                                                                                   No
                 Sewage:        Continuous                 1 for west gate and
                                                      3                              117mg/m         500mg/m            11.35t              25t    excessive
                 COD            discharge                  2 for south gate
                                                                                                                                                   discharge
Wuxi Diesel                                                3 for assembly
Engine Works                                               workshop, 5 for the
of FAW           Waste gas:                                                       84 mg/m for        240 mg/m
                                                           R&D Department,
JIEFANG          nitrogen       Continuous                                            nitrogen      for nitrogen     10.74t for            27.2t
                                                           2 for QA                                                                                No
AUTOMOTIVE       oxides,        discharge                                           oxide, 2.62      oxide, 120        nitrogen    for nitrogen
                                                     12    Department, 2 for                                                                       excessive
CO., LTD.        smoke and      during                                               mg/m for         mg/m for     oxide, 0.62t    oxide, 1.77t
                                                           processing                                                                              discharge
                 non-methane    production                                        non-methane      non-methane        for VOC         for VOC
                                                           workshop and 1 for
                 hydrocarbons                                                     hydrocarbon      hydrocarbon
                                                           hazardous waste
                                                           warehouse
                                                                                                                                                   No
                 Sewage:        Continuous
                                                      1    1 for north gate           44mg/m         500mg/m                 1t           5.35t    excessive
                 COD            discharge
                                                                                                                                                   discharge
Wuxi Diesel
Engine Huishan
Factory of FAW                                                                       125 mg/m        240 mg/m
                 Waste gas:
JIEFANG                         Continuous                                          for nitrogen    for nitrogen      1.06t for       8.48t for
                 nitrogen                                                                                                                          No
AUTOMOTIVE                      discharge                                            oxide, 16.6     oxide, 120        nitrogen        nitrogen
                 oxide, non-                          6    Complex workshop                                                                        excessive
CO., LTD.                       during                                                mg/m for        mg/m for     oxide, 0.07t    oxide, 1.62t
                 methane                                                                                                                           discharge
                                production                                         non-methane     non-methane        for VOC         for VOC
                 hydrocarbon
                                                                                   hydrocarbon     hydrocarbon

                                Continuous
                                                                                      COD: 59.1       COD: 500
FAW Jiefang      Sewage:        or                                                                                 COD: 5.89t;    COD: 88.79t;
                                                           Outside the sewage             mg/L            mg/L;                                    No
(Qingdao)        COD,           intermittent                                                                        Ammonia         Ammonia
                                                      1    treatment station of        Ammonia         ammonia                                     excessive
Automotive       ammonia        discharge                                                                            nitrogen:       nitrogen:
                                                           the Company            nitrogen: 2.91    nitrogen: 45                                   discharge
Co., Ltd.        nitrogen       of                                                                                      0.358t           5.11t
                                                                                          mg/L             mg/L
                                wastewater




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                    Names of
                                                  Number                                              Pollutant
    Name of           Main                                                                                                             Total
                                  Discharge         of         Distribution of       Discharge       Discharge         Total                         Excessive
  Company or        Pollutants                                                                                                       Approved
                                   Mode          Discharge    Discharge Outlets     Concentration    Standards       Discharge                       Discharge
   Subsidiary      and Specific                                                                                                      Discharge
                                                  Outlets                                           Implemented
                    Pollutants
                                  Continuous
                   Waste gas:     discharge                  Roof of each                                                                           No
                   non-methane    during               15    workshop of the          4.68 mg/m         30mg/m            17.23t         164.98t    excessive
                   hydrocarbon    waste gas                  Company                                                                                discharge
                                  production
                                  Continuous
                                                                                                       COD: 500
                   Sewage:        or                                                COD:58mg/L                      COD: 1.41t;     COD: 88.79t;
                                                             Outside the sewage                            mg/L;                                    No
                   COD,           intermittent                                         Ammonia                       Ammonia          Ammonia
                                                        1    treatment station of                       ammonia                                     excessive
                   ammonia        discharge                                          nitrogen: 27                     nitrogen:        nitrogen:
                                                             the Company                             nitrogen: 45                                   discharge
                   nitrogen       of                                                        mg/L                       0.4746t             5.11t
                                                                                                            mg/L
                                  wastewater
FAW Jiefang
Dalian Diesel
Engine Co., Ltd.                                                                    Non-methane     Non-methane             Non-    Non-methane
                   Waste gas:     Continuous
                                                                                    hydrocarbon:    hydrocarbon:        methane     hydrocarbon:
                   non-methane    discharge                  Roof of the                                                                            No
                                                                                     4.57 mg/m;      120 mg/m;      hydrocarbon:           14.2t;
                   hydrocarbon    during                5    Company's                                                                              excessive
                                                                                         nitrogen       nitrogen        1.3022t,        nitrogen
                   and nitrogen   waste gas                  workshop                                                                               discharge
                                                                                        oxide: 57     oxide: 240        nitrogen          oxide:
                   oxide          production
                                                                                           mg/m           mg/m      oxide: 0.859t        11.967t




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Construction and operation of pollution prevention facilities

     1. Wastewater treatment:
     (1) The Truck Factory of FAW JIEFANG AUTOMOTIVE CO., LTD. has three sewage
treatment stations currently, namely, frame workshop sewage treatment station, coating workshop
sewage treatment station and non-metallic coating sewage treatment station. ① The frame sewage
treatment station has a treatment capacity of 300 tons/day, and mainly treats the electrophoresis
process wastewater before it enters 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 line sewage treatment
station has a treatment capacity of 240 tons/day, and mainly treats the painting wastewater before it
enters the production line. The wastewater and domestic sewage pretreated by the above three sewage
stations are discharged into the FAW Integrated Sewage Treatment Plant, and then discharged into
the Changchun Western Suburbs Sewage Treatment Plant after reaching the Class III standard in the
Integrated Wastewater Discharge Standard (GB8978-1996).
     (2) The Chengdu Branch of FAW JIEFANG AUTOMOTIVE CO., LTD. has an internal sewage
treatment station which is mainly used to treat the company's production and domestic wastewater,
has a total treatment capacity of 300 tons/day, and adopts the SBR method for treatment. The sewage
treatment station can operate continuously and stably. The sewage is discharged to the urban sewage
treatment plant through the municipal pipe network for further treatment after reaching the standard.
     (3) The Transmission Branch (Shaft Gear Park) of FAW JIEFANG AUTOMOTIVE CO., LTD.
has an internal sewage treatment station which is used to treat the company's production wastewater,
and has a total treatment capacity of 120 tons/day. The station is currently being repaired due to the
failure of some facilities. There is an industrial sewage storage tank in each of the two workshops of
the transmission branch gearbox workshop. A contract is signed with FAW for the disposal of
industrial sewage, and the sewage is transferred by the FAW tanks every day to the comprehensive
sewage treatment workshop for compliant disposal.
     (4) There is an industrial sewage storage tank in each of the three workshops in the Transmission
Branch (Axle Factory) of FAW JIEFANG AUTOMOTIVE CO., LTD., which signs a disposal
contract with FAW to transfer the sewage by FAW tanks to the comprehensive treatment workshop
for complaint disposal every day.



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     (5) The Changchun Intelligent Bus Branch of FAW JIEFANG AUTOMOTIVE CO., LTD. has
an internal sewage treatment station which is used to treat the company's production and domestic
wastewater, has a treatment capacity of 120 tons/day, and adopts the physicochemical + biochemical
treatment process. The station can operate continuously and stably and realize real-time up-to-
standard discharge. The sewage is discharged to the urban sewage treatment plant through the
municipal pipe network for further treatment after reaching the standard.
     (6) The industrial wastewater generated by the Engine Branch of FAW JIEFANG
AUTOMOTIVE CO., LTD. is entrusted to FAW with disposal qualification for disposal.
     (7) The Wuxi Diesel Engine Works of FAW JIEFANG AUTOMOTIVE CO., LTD. has an
internal sewage treatment station which is used to treat the company's production and domestic
wastewater, has a total treatment capacity of 3,000 tons/day, and runs 24 hours a day. The station
adopts the physicochemical + biochemical treatment process, and can operate continuously and stably
and realize real-time up-to-standard discharge. The sewage enters the urban sewage treatment plant
through the municipal pipe network for further treatment after reaching the standard.
     (8) The Wuxi Diesel Engine Huishan Factory of FAW JIEFANG AUTOMOTIVE CO., LTD.
has an internal sewage treatment station which is used to treat the company's production and domestic
wastewater, has a total treatment capacity of 1,000 tons/day, and runs 24 hours a day. The station
adopts the physicochemical + biochemical treatment process, and can operate continuously and stably
and realize real-time up-to-standard discharge. The sewage enters the urban sewage treatment plant
through the municipal pipe network for further treatment after reaching the standard.
     (9) FAW Jiefang Qingdao Automotive Co., Ltd. has an internal sewage treatment station which
combines physicochemical method and biochemical method, and is 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/T 31962-2015), and reaches the Water Quality Standard for Domestic Miscellaneous
Water (GB/T18290-2002) 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 wastewater is discharged to Jimo sewage treatment station for detailed treatment
through the sewage outlet after reaching the standard.


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     (10)    The FAW Jiefang Dalian Diesel Engine Co., Ltd. has an internal sewage treatment
station which is used to treat the company's production and domestic wastewater, has a total treatment
capacity of 816 tons/day, and runs 24 hours a day. The station adopts the distillation pretreatment
process for production wastewater and biochemical treatment process for comprehensive wastewater,
and can operate continuously and stably and realize real-time up-to-standard discharge. The sewage
enters the urban sewage treatment plant through the municipal pipe network for further treatment
after reaching the standard.
     2. 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. VOC waste gas from
cab coating and non-metal coating is discharged after reaching the standard through hydrocyclone +
dry filtration + zeolite runner adsorption and concentration + RTO (regenerative incineration).
     (2) All waste gas treatment facilities of Chengdu Branch of FAW JIEFANG AUTOMOTIVE
CO., LTD. can operate continuously and stably. The painting waste gas of the coated body is
discharged after reaching the standard through hydrocyclone + dry filtration + zeolite runner
adsorption and concentration + RTO (regenerative incineration). All welding fumes are discharged
after reaching the standard and being treated by centralized and mobile dust removal systems.
     (3) All waste gas treatment facilities of the 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.
     (4) 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


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systems. The VOC treatment facilities for the No. 3 workshop coating line have been installed and
are currently in the stage of networking and commissioning.
     (5) All welding fumes of Changchun Intelligent Bus Branch of FAW JIEFANG
AUTOMOTIVE CO., LTD. are discharged after being treated by the centralized dust removal system
and reaching the standard. The VOC treatment project has entered the equipment installation stage
and is expected to be completed and put into use in October 2022.
     (6) The Engine Branch of FAW JIEFANG AUTOMOTIVE CO., LTD. has three quenching
machines generating waste gas and equipped with adsorption purification devices. The waste gas is
discharged after reaching the standard and being treated.
     (7) 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.
     (8) 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.
     (9) All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. can
operate continuously and stably. The painting waste gas generated by the plastic parts coating
workshop, the cab coating workshop and the general assembly workshop is discharged after reaching
the standard and being purified by paint mist, adsorbed by zeolite concentration runner and treated
by RTO incineration device in the three workshops. The drying waste gas generated by the general
assembly workshop is burned with low nitrogen, and discharged after reaching the standard and being
treated by the quaternary combustion device. The drying waste gas generated by the coating workshop
is burned with low nitrogen and discharged after reaching the standard and receiving TNV thermal
incineration. All welding fumes are discharged after reaching the standard and being treated by filter
cartridge dust collector.
     (10)    All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. can
operate continuously and stably. The painting waste gas generated by coating is discharged after


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reaching the standard and being treated by the water curtain paint mist treatment device, and the waste
gas generated by test run is discharged after reaching the standard and being treated by the alkali
liquor washing waste gas treatment device.
     3. Noise control:
     All noise reduction and shock absorption 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 regulations.
     4. 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.


Environmental impact assessment of construction projects and other administrative permits for
environmental protection

     Environmental impact assessment is carried out, reply to the assessment is obtained, and all
environmental protection requirements are implemented for the construction projects of J7 intelligent
assembly line, Foshan new energy base and Guanghan base of the truck factory affiliated to the
Company, and environmental protection acceptance is carried out after these projects are completed.
The Company pays environmental protection tax in full on a quarterly basis according to the
requirements of the tax law based on wastewater, waste gas and discharge.


Emergency plan for environmental emergencies

     All branches and subsidiaries of the Company prepare their own emergency plans for
environmental emergencies as required, which are approved and filed by the local ecological
environment bureau. All organizations organize drills every year according to the emergency plans
and further revise them, and have good emergency response capabilities for environmental
emergencies.




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Environmental self-monitoring plan

     All branches and subsidiaries of the Company have prepared their own monitoring plans
according to the requirements of pollutant discharge permits and regulations, and organized qualified
monitoring organizations to monitor wastewater, waste gas, noise and soil in accordance with the
requirements of the plans. The test report for the first half of 2022 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

   Name of                                                        Impact on Production     Rectification
                   Cause for                       Results of
 Company or                        Violations                      and Operation of the   Measures of the
                   Penalties                        Penalties
  Subsidiary                                                         Listed Company         Company

     None            None             None            None                None                None

Other environmental information that shall be disclosed

     All branches and subsidiaries of the Company have been certified by the environmental
management system (GB/T24001-2020), and carried out cleaner production audits in strict
accordance with the requirements. As a responsible central enterprise, the Company strictly abides
by the national requirements, has been practicing the concept of scientific development, builds a clean
and green enterprise, and is committed to becoming a socialist 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

     FAW JIEFANG AUTOMOTIVE CO., LTD. pays close attention to energy conservation and
carbon reduction, actively docks with the government's preferential energy policies, and completes
the market-oriented transaction of green electricity for the first time. The Company organizes its
branches and subsidiaries such as Changchun Special Vehicle Branch, Axle Branch, Wuxi Diesel
Engine Works and FAW Jiefang (Qingdao) Automotive Co., Ltd. to start the clean energy application
planning, and plans to implement 5 PV projects. It is estimated that 43.5MW clean energy can be
connected to the grid for power generation to further reduce the carbon emission.

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Other information about environmental protection: none

II. Social Responsibility

     The Company actively implements the important strategic deployment of the CPC Central
Committee and the State Council on rural revitalization, implements the work requirements of FAW
for targeted assistance, and provides targeted assistance to Zhenlai County in Jilin Province and
Fengshan County in Guangxi Zhuang Autonomous Region to help them consolidate rural
infrastructure, activate industrial development, improve education and consumption level, and
continuously consolidate the achievements of poverty alleviation, thus making contributions to
realizing 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
For the Company, there is no commitment 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, or other commitments not 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
For the Company, there is no non-operating occupation of funds by controlling shareholders and other
related parties to the listed company.

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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  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
                                                                       Litigation     Implementation
Basic Information   Amount           Are There        Progress of                                    Date of Disclo
                                                                     (Arbitration)     of Litigation
 about Litigation   Involved         Estimated         Litigation                                    Disclos sure
                                                                      Results and      (Arbitration)
  (Arbitration)   (CNY 10,000)       Liabilities     (Arbitration)                                     ure Index
                                                                        Impact          Judgment
                                      Including
Summary of other
                                      estimated                                       Case not closed
   litigation not                                      Case not      No significant
                       24,739.01    liabilities of                                    by the end of the
reaching the major                                      closed          impact
                                        CNY                                           reporting period
disclosure standard
                                     32,770,300
Summary of other
   litigation not                                                    No significant
                        56.10             No         Case closed                        Completed
reaching the major                                                      impact
disclosure standard

  IX. Punishment and Rectification

  □ Applicable        Not applicable

  X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers

  □ Applicable        Not applicable

  XI. Major Related Transactions




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                                1.   Related transactions related to daily operations

                                Applicable             □ Not Applicable




                                                                                                                                           Price of Related Transaction




                                                                                                                                                                                                     Proportion to the Amount of
                                                        Type of Related Transaction




                                                                                                           Pricing Principle of Related




                                                                                                                                                                          Transaction (CNY 10,000)




                                                                                                                                                                                                                                                                                                             Available Market Value of
    Related Transaction Party




                                                                                                                                                                                                                                                          Is the Approved Amount
                                                                                                                                                                                                                                   Amount (CNY 10,000)
                                                                                                                                                                                                                                   Approved Transaction




                                                                                                                                                                                                                                                                                     Settlement Method of
                                                                                                                                                                                                        Similar Transactions




                                                                                                                                                                                                                                                                                                               Similar Transactions
                                                                                                                                                                                                                                                                                      Related Transaction
                                                                                                                                                                             Amount of Related
                                                                                      Content of Related




                                                                                                                                                                                                                                                                                                                                             Date of Disclosure




                                                                                                                                                                                                                                                                                                                                                                        Disclosure Index
                                                                                         Transaction



                                                                                                                   Transaction
                                         Correlation




                                                                                                                                                                                                                                                                  Exceeded
                                                                                                                                                                                                                                                                                                                                                                  http://www.cni
                                                                                                                                                                                                                                                                                                                                                                  nfo.com.cn/new
China FAW
                                     The same                                                                                             Mark                                                                                                                                                                                                                    /disclosure/stoc
Group                                                  Sales                          Sales
                                     ultimate                                                              Marke                          et                                                                                                                                       Cash + bill              229,264.7                    January 28,              k?stockCode=0
Import &                                               of                             of                                                                                  229,264.76                     10.02%                    343,417                  No
                                     controllin                                                            t price                        prici                                                                                                                                    settlement               6                            2022                     00800&orgId=
Export Co.,                                            goods                          goods
                                     g party                                                                                              ng                                                                                                                                                                                                                      gssz0000800#la
Ltd.
                                                                                                                                                                                                                                                                                                                                                                  testAnnouncem
                                                                                                                                                                                                                                                                                                                                                                  ent
Total                                                                                                               --                            --                      229,264.76                           --                  343,417                     --                            --                       --                          --                        --
Details on the return of large goods                                                                       None
Actual performance in the reporting period, if
the total amount of daily related transactions                                                             For details about the actual performance of related transactions in the reporting period, please see Item XI "Related parties and
to be incurred in the current period is                                                                    related transactions" in Section X of this report.
estimated by category
Reasons for large difference between
                                                                                                           Not applicable
transaction price and market reference price




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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 external 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.




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5.    Transaction with related finance companies

Applicable             □ Not Applicable

Deposit Business
                                                                                                         Amount Incurred in Current Period
                                             Maximum
                                                                                                         Total Deposit       Total Withdrawal
                                            Daily Deposit    Deposit Interest Rate   Opening Balance                                                Ending Balance
     Related Parties        Correlation                                                                  Amount in the        Amount in the
                                            Limit (CNY             Range              (CNY 10,000)                                                   (CNY 10,000)
                                              10,000)                                                    Current Period       Current Period
                                                                                                         (CNY 10,000)         (CNY 10,000)

                         Associated
                         enterprise of
                         the Company,
 First Automobile
                         the same               3,000,000             0.35%-2.85%        2,265,311.07      19,646,176.20          19,822,347.55         2,089,139.72
 Finance Co., Ltd.
                         ultimate
                         controlling
                         party

Credit Granting or Other Financial Businesses

                                                                                                                                     Actual Amount Incurred (CNY
          Related Parties                          Correlation                  Business Type       Total Price (in CNY 10,000)
                                                                                                                                                  10,000)

                                       Associated enterprise of the
 First Automobile Finance Co.,                                              Other financial
                                       Company, the same ultimate                                                          900,000                          82,647.25
 Ltd.                                                                       businesses
                                       controlling party



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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.




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7.     Other major related transactions

Applicable         □ Not Applicable

       On January 27, 2022, the 21st meeting of the 9th Board of Directors of the Company reviewed
and approved the Proposal on Estimated Amount of Daily Related Transactions in 2022 and the
Proposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in
2022, which were reviewed and approved by the first extraordinary shareholders' meeting of the
Company in 2022.

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 Website
                                            Announcement
 Announcement on estimated
                                                                            CNINFO
 amount of daily related               January 28, 2022
                                                                   (http://www.cninfo.com.cn)
 transactions in 2022
 Announcement on estimated
 amount of financial business                                               CNINFO
                                       January 28, 2022
 with First Automobile Finance                                     (http://www.cninfo.com.cn)
 Co., Ltd. in 2022

XII.       Major Contracts and Their Performance

1.     Trusteeship, contracting and lease

(1) Trusteeship

Applicable         □ Not Applicable

Description of trusteeship

       The Entrustment Management Agreement signed by Jiefang Limited with FAW and FAW Light
Commercial Vehicle Co., Ltd. (hereinafter referred to as "FAW Light Vehicle Company"), shows
that FAW will entrust Jiefang Limited to manage the FAW Harbin Light Automobile Co., Ltd. and
FAW Hongta Yunnan Automobile Manufacturing Co., Ltd., which are affiliated to FAW Light


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Vehicle Company. For main contents of relevant entrustment management agreement, please see the
Report on Major Assets Replacement, Shares Issuance and Cash Payment for Assets Purchase and
Related Transactions of FAW Car Co., Ltd.

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 trusteeship project that brings about profits and losses exceeding 10% of the
total profit of 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 13 "Investment real estate", Note
14 "Fixed assets", and Note 18 "Right-of-use assets" in Notes to Items in Consolidated Financial
Statements (VII) of Section X, and Note 5 "Related parties and related transactions" in Item XI
"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.




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3.   Entrusted financial management

□ Applicable   Not applicable
The Company has no entrusted financial management in the reporting period.

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
There are no other major matters to be explained by the Company in the reporting period.

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 Transferred
                                                                      Issue of New                    from
                                             Quantity        Scale                    Bonus                          Others       Subtotal        Quantity             Scale
                                                                         Shares                   Accumulation
                                                                                                      Fund
I. Restricted shares                        3,238,899,791   69.64%        3,721,601                                  -260,857     3,460,744      3,242,360,535        69.67%
   1. Shares held by the state
   2. Shares held by the state-owned
                                            3,197,912,134   68.76%                                                                               3,197,912,134        68.71%
legal person
   3. Shares held by other domestic
                                              40,987,657     0.88%       3,721,601                                    -260,857    3,460,744         44,448,401         0.96%
enterprises
   Including: shares held by domestic
legal person
   Shares held by domestic natural person     40,987,657     0.88%       3,721,601                                    -260,857    3,460,744         44,448,401         0.96%
   4. Shares held by foreign enterprises
   Including: shares held by overseas
legal person
           Shares held by overseas
natural person
II. Unrestricted shares                     1,411,754,078   30.36%                                                                               1,411,754,078        30.33%
   1. CNY ordinary shares                   1,411,754,078   30.36%                                                                               1,411,754,078        30.33%
   2. Foreign shares listed in China
   3. Foreign shares listed overseas
   4. Others
III. Total number of shares                 4,650,653,869   100.00%      3,721,601                                    -260,857    3,460,744      4,654,114,613        100.00%

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Reasons for changes in shares

Applicable        □ Not Applicable

     In the reporting period, the Company granted 3,721,601 shares in total included in the reserved
part of the phase I restricted share incentive plan. The new shares are listed on January 10, 2022. Two
original incentive objects of the Company do not conform to the provisions on incentive objects in
the restricted share incentive plan due to job transfer, and a total number of 260,857 restricted shares
held by them is repurchased and canceled by the Company. The total share capital of the Company
is 4,654,114,613 shares after the grant, repurchase and cancellation of the above reserved part.


Approval of share changes

Applicable        □ Not Applicable

     On December 9, 2021, the 20th meeting of the 9th Board of Directors and the 19th meeting of
the 9th Board of Supervisors of the Company 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.


Transfer of share changes

Applicable        □ Not Applicable

(1) On January 4, 2022, the Company submitted registration materials to CSDC for the additional
shares involved in the grant of the reserved part of this equity incentive plan. On January 10, 2022,
new shares were listed, and the total share capital of the Company increased to 4,654,375,470 shares.


(2) On January 12, 2022, the Company submitted registration materials to CSDC for the shares
repurchased and canceled in this equity incentive plan. On January 13, 2022, CSDC issued the
Confirmation of Securities Transfer Registration to the Company, and the total share capital of the
Company was reduced to 4,654,114,613 shares.


Implementation progress of share repurchase


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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
common shareholders of the Company

Applicable       □ Not Applicable

In the reporting period, the net increase in share capital of the Company was 3,460,744 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 common shareholders 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




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                                                                                                                                Unit: share

                                         Number of
                                          Restricted      Number of
                 Number of Restricted                                       Number of Restricted
   Name of                                 Shares      Restricted Shares                              Reason for
                 Shares at the Beginning                                   Shares at the End of the                     Release Date
  Shareholder                            Released in   Increased in the                               Restriction
                      of the Period                                                Period
                                         the Current    Current Period
                                           Period
China FAW Co.,                                                                                        Major asset
                         2,413,412,134                                              2,413,412,134                   April 9, 2023
Ltd.                                                                                                  restructuring
FAW Bestune                                                                                           Major asset
                           784,500,000                                                784,500,000                   April 9, 2023
Car Co., Ltd.                                                                                         restructuring
                                                                                                      Equity        The restricted period
Hu Hanjie                      334,331                                                    334,331
                                                                                                      incentive     of all restricted
                                                                                                      Equity        shares granted to
Wu Bilei                       228,552                                                    228,552
                                                                                                      incentive     incentive objects is 2
                                                                                                      Equity        years, and three
Zhang Guohua                   228,493                                                    228,493
                                                                                                      incentive     release dates are set,
                                                                                                      Equity        which are the next
Kong Dejun                     228,498                                                    228,498
                                                                                                      incentive     day after the
                                                                                                      Equity        expiration of the
Wang Ruijian                   253,496                                                    253,496
                                                                                                      incentive     restricted period and
                                                                                                      Equity        the first and second
Shang Xingwu                   228,631                                                    228,631
                                                                                                      incentive     anniversary days of
                                                                                                      Equity        that day (postponed
Ou Aimin                       229,010                                                    229,010
                                                                                                      incentive     to the first trading

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                                                                                                                Equity         day after that in case
 Wang Jianxun                           192,778                                                      192,778
                                                                                                                incentive      of holidays). The
                                                                                                                               upper limit of the
                                                                                                                               number of restricted
 Other core                                                                                                                    shares released is
 employees of                                                                                                   Equity         33%, 33% and 34%
                                  39,063,868                             3,460,744                 42,524,612
 senior director                                                                                                incentive      of the total number of
 and above                                                                                                                     shares granted to
                                                                                                                               incentive objects
                                                                                                                               respectively.
 Total                         3,238,899,791                             3,460,744            3,242,360,535          --                  --

II. Issuance and Listing of Securities

Applicable         □ Not Applicable
   Name of                 Issue Price                               Quantity        Transaction
 Shares and        Issue                    Quantity     Date of                                                                            Date of
                           (or Interest                             Approved         Termination            Disclosure Index
  Derivative       Date                      Issued      Listing                                                                           Disclosure
                              Rate)                                 for Listing         Date
  Securities
 Stocks
                                                                                                    http://www.cninfo.com.cn/new/dis
                Decem      CNY              3,721,601 January                                       closure/stock?stockCode=000800 January 6,
 A share        ber 9,                                               3,721,601
                           6.38/share                 10, 2022                                      &orgId=gssz0000800#latestAnno 2022
                2021                                                                                uncement
Description of securities issuance in the reporting period: In the reporting period, the Company issued 3,721,601 common A shares in total to the
reserved grant objects of the phase I restricted share incentive plan.



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III. Number of Shareholders and Shareholdings of the Company

                                                                                                                                               Unit: share
 Total Number of Common
                                                                         Total Number of Preferred Shareholders with Restored Voting
 Shareholders at the End of the                                 92,864                                                                                   0
                                                                         Rights at the End of the Reporting Period
 Reporting Period
                          Shareholding of Common Shareholders Holding More Than 5% of the Shares or Top 10 Common Shareholders
                                                                                                                                          Pledge, Marking
                                                  Number of Ordinary      Increase and                                  Number of           or Freezing
    Name of          Nature of     Shareholding    Shares Held at the    Decrease in the   Number of Restricted        Unrestricted
   Shareholder      Shareholders    Proportion    End of the Reporting     Reporting       Ordinary Shares Held       Ordinary Shares     Status
                                                         Period              Period                                        Held             of     Quantity
                                                                                                                                          Shares
 China FAW Co.,     State-owned
                                        65.76%           3,060,649,901                             2,413,412,134            647,237,767
 Ltd.               legal person
 FAW Bestune        State-owned
                                        16.86%            784,500,000                                784,500,000
 Car Co., Ltd.      legal person
 Hong Kong
 Securities         Overseas
                                         1.53%             71,029,475.        9,859,979
 Clearing           legal person
 Company Ltd.
                    Domestic
 Qu Haipeng         natural              0.78%              36,096,600
                    person
 Jilin Province
                    State-owned
 State-owned                             0.29%              13,712,916
                    legal person
 Capital
                    Domestic
 Chao Guo           natural              0.22%              10,139,358        6,087,429
                    person
 Li Yan             Domestic             0.16%               7,660,000

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                    natural
                    person
Zhong Ou AMC
- Agricultural
Bank of China -
Zhong Ou &
                    Others              0.12%   5,549,500
CITIC Securities
Financial Asset
Management
Plan
Bosera Asset
Management
Co., Ltd. -
Agricultural
Bank of China -
                    Others              0.12%   5,549,500
Bosera & CITIC
Securities
Financial Asset
Management
Plan
Dacheng Fund -
Agricultural
Bank of China -
Dacheng &
                    Others              0.08%   3,713,100
CITIC Securities
Financial Asset
Management
Plan
Strategic investors or general   None

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legal persons who become the
top 10 common shareholders
due to the issuance of new
shares

                                     Among the above shareholders, FAW Bestune is a wholly-owned subsidiary of FAW, and is a person acting in concert as
Description of correlation or
                                     specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does
concerted action of the above
shareholders                         not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of
                                     outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies.
Involvement of the above
shareholders in
                                     None
entrusting/entrusted voting
rights and waiving voting rights
Special description on the
existence of repurchase special
                                     None
accounts among the top 10
shareholders
                                          Shareholding of Top 10 Common Shareholders with Unrestricted Ordinary Shares
                                                               Number of Unrestricted Ordinary                               Type of Shares
                  Name of Shareholder                           Shares Held at the End of the
                                                                     Reporting Period                   Type of Shares                        Quantity

China FAW Co., Ltd.                                                                  647,237,767    CNY ordinary shares                                  647,237,767
Hong Kong Securities Clearing Company Ltd.                                            71,029,475    CNY ordinary shares                                   71,029,475
Qu Haipeng                                                                            36,096,600    CNY ordinary shares                                   36,096,600
Jilin Province State-owned Capital                                                    13,712,916    CNY ordinary shares                                   13,712,916
Chao Guo                                                                              10,139,358    CNY ordinary shares                                   10,139,358
Li Yan                                                                                 7,660,000    CNY ordinary shares                                       7,660,000
Zhong Ou AMC - Agricultural Bank of China - Zhong Ou                                   5,549,500    CNY ordinary shares                                       5,549,500

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 & CITIC Securities Financial Asset Management Plan
 Bosera Asset Management Co., Ltd. - Agricultural Bank
 of China - Bosera & CITIC Securities Financial Asset                                  5,549,500   CNY ordinary shares                                    5,549,500
 Management Plan
 Dacheng Fund - Agricultural Bank of China - Dacheng &
                                                                                       3,713,100   CNY ordinary shares                                    3,713,100
 CITIC Securities Financial Asset Management Plan
 Yang Canxiong                                                                         3,555,926   CNY ordinary shares                                    3,555,926
                                                              Among the above shareholders, FAW Bestune is a wholly-owned subsidiary of FAW, and is a person
 Description of correlation or concerted action between the
                                                              acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public
 top 10 shareholders of unrestricted ordinary shares, and
                                                              disclosure data indicates that the Company does not know whether there is a correlation between
 between the top 10 shareholders of unrestricted ordinary
                                                              other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are
 shares and the top 10 common shareholders
                                                              persons acting in concert as specified in the Regulations for the Takeover of Listed Companies.
                                                              Qu Haipeng, a domestic natural person, holds 36,096,600 shares of the Company through the
                                                              guaranteed securities account for customer credit trading of CITIC Securities; Chao Guo, a domestic
 Description of top 10 common shareholders' participation     natural person, holds 7,825,200 shares of the Company through the guaranteed securities account for
 in financing bonds business                                  customer credit trading of 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.

Whether the top 10 common shareholders and the top 10 common shareholders with unrestricted ordinary shares of the Company have agreed
repurchase transactions in the reporting period

□ Yes   No

The top 10 common shareholders and the top 10 common shareholders with unrestricted ordinary shares of the Company do not agree
repurchase transactions in the reporting period

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IV. Changes in Shareholding of Directors, Supervisors and Senior Management

□ Applicable   Not applicable
There is no change in the shareholding of the Company's directors, supervisors and senior
management in the reporting period. Please refer to the 2021 Annual Report for details.

V. 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.




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                                 Section IX Bonds

□ Applicable   Not applicable




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                                   Section X           Financial Report

I.    Audit Report

Whether the semi-annual report is audited
□ Yes     No
The semi-annual financial report of the Company is not audited.

II. Financial Statements

The unit of statement in the financial notes is CNY

1.    Consolidated balance sheet

Prepared by: FAW JIEFANG GROUP CO., LTD.
                                                   June 30, 2022
                                                                                                 Unit: CNY

                   Item                               June 30, 2022                   January 1, 2022

 Current assets:

     Monetary capital                                      28,545,747,104.70                30,761,262,721.40

     Settlement reserve fund

     Loans to banks and other financial
 institutions

     Financial assets held for trading

     Derivative financial assets

     Notes receivable                                           6,795,406.57                    12,936,978.11

     Accounts receivable                                    2,033,585,686.23                 1,279,693,951.70

     Receivables financing                                  7,091,605,627.68                 5,305,018,299.79

     Prepayment                                             1,378,154,656.21                   868,811,412.99

     Premiums receivable

     Reinsurance accounts receivable

     Reinsurance contract reserves
 receivable


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                 Item                             June 30, 2022                    January 1, 2022

  Other receivables                                       308,357,637.68                    249,088,090.95

     Including: interest receivable

              Dividends receivable                         26,488,012.75                      8,567,040.00

  Financial assets purchased under
agreements to resell

  Inventory                                              9,035,457,594.09                 9,268,120,531.25

  Contractual assets                                       61,968,023.59                     53,047,687.72

  Held-for-sale assets

  Current portion of non-current
                                                          114,825,391.38                    114,825,391.38
assets

  Other current assets                                    473,068,938.63                  2,014,149,591.51

Total current assets                                    49,049,566,066.76                49,926,954,656.80

Non-current assets:

  Loans and advances

  Debt investment

  Other debt investments

  Long-term receivables                                   217,930,218.79                    222,590,757.79

  Long-term equity investment                            5,023,596,387.36                 4,766,734,671.74

  Other equity instrument
investments

  Other non-current financial assets

  Investment real estate                                  159,534,670.00                     80,202,825.09

  Fixed assets                                           9,005,998,503.41                 9,236,789,322.03

  Project under construction                              966,294,107.55                    965,997,208.23

  Bearer biological assets

  Oil and gas assets

  Right-of-use assets                                     121,039,384.71                    143,766,265.44

  Intangible assets                                      2,728,231,478.67                 2,772,277,116.13

  Development expenditures

  Goodwill



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                  Item                           June 30, 2022                    January 1, 2022

  Long-term deferred expenses                                232,518.98                        334,598.30

  Deferred tax assets                                   1,908,957,381.92                 1,650,296,511.26

  Other non-current assets

Total non-current assets                               20,131,814,651.39                19,838,989,276.01

Total assets                                           69,181,380,718.15                69,765,943,932.81

Current liabilities:

  Short-term borrowings

  Borrowing from the central bank

  Placements from banks and other
financial institutions

  Financial liabilities held for
trading

  Derivative financial liabilities

  Notes payable                                        17,538,100,899.05                13,062,704,192.54

  Accounts payable                                     12,943,539,758.82                14,564,899,994.47

  Advance receipts                                           254,326.19                      1,712,917.27

  Contract liabilities                                  1,898,901,256.47                 2,700,642,475.91

  Financial assets sold for
repurchase

  Deposits taking and interbank
deposits

  Acting trading securities

  Acting underwriting securities

  Employee compensation payable                          421,204,060.05                    364,450,425.37

  Taxes payable                                          358,991,484.63                    173,948,529.53

  Other payables                                        7,299,870,926.01                 7,383,223,172.30

     Including: interest payable

               Dividends payable                             171,500.02                        171,500.02

  Handling charges and
commissions payable

  Reinsurance accounts payable


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                    Item                        June 30, 2022                    January 1, 2022

  Held-for-sale liabilities

  Current portion of non-current
                                                         33,214,415.10                     47,060,544.71
liabilities

  Other current liabilities                             157,933,439.12                    267,479,444.78

Total current liabilities                             40,652,010,565.44                38,566,121,696.88

Non-current liabilities:

  Insurance contract reserve

  Long-term borrowings

  Bonds payable

     Including: preferred shares

              Perpetual bonds

  Lease liabilities                                      95,066,903.44                     88,307,218.05

  Long-term payables

  Long-term employee
                                                        763,977,826.41                    764,529,046.36
compensation payable

  Estimated liabilities                                1,210,644,082.24                 1,257,487,319.78

  Deferred incomes                                     2,662,322,917.73                 2,473,072,814.33

  Deferred income tax liabilities                       309,037,034.86                    374,185,114.15

  Other non-current liabilities

Total non-current liabilities                          5,041,048,764.68                 4,957,581,512.67

Total liabilities                                     45,693,059,330.12                43,523,703,209.55
Owner's equities:
  Share capital                                        4,654,114,613.00                 4,654,114,613.00
  Other equity instruments
     Including: preferred shares
              Perpetual bonds
  Capital reserve                                     10,469,689,124.38                10,439,365,093.18
  Less: treasury shares                                 281,569,025.73                    310,460,486.38
  Other comprehensive income                             -32,839,796.01                   -32,794,902.20
  Special reserve                                       357,328,826.61                    315,398,148.75
  Surplus reserve                                      2,742,214,904.83                 2,742,214,904.83
  General risk provision


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                    Item                              June 30, 2022                       January 1, 2022
     Undistributed profits                                   5,579,382,740.95                     8,434,403,352.08
 Total owners’ equity attributable to
                                                            23,488,321,388.03                    26,242,240,723.26
 the parent company
     Minority equity
 Total owners' equity                                       23,488,321,388.03                    26,242,240,723.26
 Total liabilities and owner's equities                     69,181,380,718.15                    69,765,943,932.81

Legal representative: Hu Hanjie       Person in charge of accounting: Ou Aimin   Person in charge of the accounting
organization: Si Yuzhuo

2.    Balance sheet of parent company


                                                                                                        Unit: CNY

                    Item                              June 30, 2022                       January 1, 2022

 Current assets:

     Monetary capital                                           16,217,499.97                         9,646,455.17

     Financial assets held for trading

     Derivative financial assets

     Notes receivable

     Accounts receivable

     Receivables financing

     Prepayment

     Other receivables                                          18,353,402.55                           432,429.80

       Including: interest receivable

                 Dividends receivable                           17,920,972.75

     Inventory

     Contractual assets

     Held-for-sale assets

     Current portion of non-current
 assets

     Other current assets                                          112,457.43                           720,491.14

 Total current assets                                           34,683,359.95                        10,799,376.11

 Non-current assets:

     Debt investment

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                  Item                           June 30, 2022                    January 1, 2022

  Other debt investments

  Long-term receivables

  Long-term equity investment                          25,915,068,767.16                25,640,802,370.53

  Other equity instrument
investments

  Other non-current financial assets

  Investment real estate

  Fixed assets

  Project under construction

  Bearer biological assets

  Oil and gas assets

  Right-of-use assets

  Intangible assets

  Development expenditures

  Goodwill

  Long-term deferred expenses

  Deferred tax assets

  Other non-current assets

Total non-current assets                               25,915,068,767.16                25,640,802,370.53

Total assets                                           25,949,752,127.11                25,651,601,746.64

Current liabilities:

  Short-term borrowings

  Financial liabilities held for
trading

  Derivative financial liabilities

  Notes payable

  Accounts payable                                          1,968,902.00                       200,000.00

  Advance receipts

  Contract liabilities

  Employee compensation payable


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                    Item                        June 30, 2022                    January 1, 2022

  Taxes payable                                            6,793,734.46                     1,462,703.57

  Other payables                                       3,548,225,291.50                   552,502,809.86

     Including: interest 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                              3,556,987,927.96                   554,165,513.43

Non-current liabilities:

  Long-term borrowings

  Bonds payable

     Including: preferred shares

              Perpetual bonds

  Lease liabilities

  Long-term payables

  Long-term employee
compensation payable

  Estimated liabilities

  Deferred incomes

  Deferred income tax liabilities

  Other non-current liabilities

Total non-current liabilities

Total liabilities                                      3,556,987,927.96                   554,165,513.43
Owner's equities:
  Share capital                                        4,654,114,613.00                 4,654,114,613.00
  Other equity instruments
     Including: preferred shares
              Perpetual bonds
  Capital reserve                                     12,267,337,664.44                12,267,337,664.44
  Less: treasury shares                                 281,569,025.73                    310,460,486.38
  Other comprehensive income                                257,376.69                        304,113.31

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                   Item                               June 30, 2022                         January 1, 2022

     Special reserve
     Surplus reserve                                          1,511,497,143.93                     1,511,497,143.93
     Undistributed profits                                    4,241,126,426.82                     6,974,643,184.91
 Total owners' equity                                        22,392,764,199.15                    25,097,436,233.21
 Total liabilities and owner's equities                      25,949,752,127.11                    25,651,601,746.64

3.    Consolidated profit statement

                                                                                                         Unit: CNY

                                 Item                                       Half of 2022             Half of 2021

 I. Total operating income                                                 22,871,535,261.56       78,600,163,121.16

     Including: operating income                                           22,871,535,261.56       78,600,163,121.16

            Interest income

            Premium earned

            Handling charges and commission income

 II. Total operating cost                                                  23,120,223,828.02       75,291,776,865.42

     Including: operating cost                                             21,115,050,469.61       71,861,081,519.02

            Interest expense

            Handling charges and commission expense

            Surrender value

            Net payments for insurance claims

            Net allotment of reserves for insurance liabilities

            Policy dividend expenditure

            Expenses for reinsurance accepted

            Taxes and surcharges                                                 106,500,261.51       293,944,056.24

            Selling expense                                                      566,490,728.82     1,315,060,101.99

            Management cost                                                      887,020,116.52     1,103,407,146.33

            R&D expenses                                                    1,016,316,222.64        1,237,304,341.12

            Financial expense                                                -571,153,971.08         -519,020,299.28

               Including: interest expenses                                        2,361,612.41

                       Interest income                                           502,087,676.33       363,409,455.88

     Add: other incomes                                                          230,047,050.32       123,839,818.59


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                                 Item                                   Half of 2022         Half of 2021

        Investment income (losses expressed with "-")                     203,908,916.41      387,219,719.37

               Including: investment income in associated
                                                                          281,180,159.71      386,449,232.03
enterprises and joint ventures

                      Gains on derecognition of financial assets at
amortized cost

        Foreign exchange gains (losses expressed with "-")

        Net exposure hedging income (losses expressed with "-")

        Profit arising from changes in fair value (losses expressed
with "-")

        Credit impairment loss (losses expressed with "-")                -21,826,743.35         6,757,848.51

        Asset impairment loss (losses expressed with "-")                 -85,344,746.96      -121,005,056.96

        Income from assets disposal (losses expressed with "-")                42,431.19          -183,677.14

III. Operating profit (losses expressed with "-")                          78,138,341.15     3,705,014,908.11

  Add: Non-operating income                                               104,058,106.26        30,755,399.12

  Less: Non-operating expenses                                             12,214,234.59        14,348,703.34

IV. Total profit (losses expressed with "-")                              169,982,212.82     3,721,421,603.89

  Less: income tax expenses                                                  -171,674.50      452,443,037.35
V. Net profit (net losses expressed with "-")                             170,153,887.32     3,268,978,566.54
  (I) Classified according to business continuity
     1. Net profit from continuing operations (net losses
                                                                          170,153,887.32     3,268,978,566.54
expressed with "-")
     2. Net profit from discontinuing operations (net losses
expressed with "-")
  (II) Classified according to attribution of the ownership
     1. Net profit attributable to the owners of the parent
                                                                          170,153,887.32     3,268,978,566.54
company
     2. Minority interests
VI. Net after-tax amount of other comprehensive income                        -44,893.81            -8,800.15
  Net after-tax amount of other comprehensive income
                                                                              -44,893.81            -8,800.15
attributable to the owners of the parent company
     (I) Other comprehensive income that cannot be reclassified
into profit or loss
        1. Changes arising from re-measurement of the defined
benefit plan

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                                    Item                                     Half of 2022              Half of 2021
          2. Other comprehensive incomes that cannot be
 transferred to profit and loss 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 income to be reclassified into
                                                                                      -44,893.81              -8,800.15
 profit or loss
          1. Other comprehensive incomes that can be reclassified
                                                                                      -46,736.62              -7,226.33
 into profit and loss 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. Impairment provision of credit in other debt
 investments
          5. Cash flow hedging reserve
          6. Exchange differences arising from foreign currency
                                                                                        1,842.81              -1,573.82
 financial statements
          7. Others
     Net after-tax amount of other comprehensive income
 attributable to minority shareholders
 VII. Total comprehensive income                                                  170,108,993.51      3,268,969,766.39
     Total comprehensive income attributable to the owners of
                                                                                  170,108,993.51      3,268,969,766.39
 parent company
     Total comprehensive income attributable to minority
 shareholders
 VIII. Earnings per share:
     (I) Basic earnings per share                                                        0.0366                  0.7047
     (II) Diluted earnings per share                                                     0.0366                  0.7047

In case of business combination under common control in the current period, the net profit realized by the combined
party before combination and that in the previous period are CNY 0.00.

Legal representative: Hu Hanjie        Person in charge of accounting: Ou Aimin     Person in charge of the accounting
organization: Si Yuzhuo

4.    Profit statement of parent company

                                                                                                           Unit: CNY

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                                 Item                                   Half of 2022         Half of 2021

I. Operating income

  Less: operating cost                                                        871,274.65          420,747.40

        Taxes and surcharges                                                   96,668.40              260.30

        Selling expense

        Management cost                                                       793,096.66          707,539.36

        R&D expenses

        Financial expense                                                     -18,490.41          -242,724.28

            Including: interest expenses

                   Interest income                                             19,230.41          246,160.17

  Add: Other incomes                                                          294,909.01           96,438.23

        Investment income (losses expressed with "-")                     292,234,106.00     3,103,351,507.45

            Including: investment income in associated enterprises
                                                                          292,234,106.00      383,431,507.45
and joint ventures

                   Gains on derecognition of financial assets at
amortized cost (losses expressed with "-")

        Net exposure hedging income (losses expressed with "-")

        Profit arising from changes in fair value (losses expressed
with "-")

        Credit impairment loss (losses expressed with "-")

        Asset impairment loss (losses expressed with "-")

        Income from assets disposal (losses expressed with "-")

II. Operating profit (losses expressed with "-")                          291,657,740.36     3,102,982,870.30

  Add: Non-operating income                                                                            30.00

  Less: Non-operating expenses

III. Total profit (total (losses expressed with "-")                      291,657,740.36     3,102,982,900.30

  Less: income tax expenses
IV. Net profit (net losses expressed with "-")                            291,657,740.36     3,102,982,900.30
  (I) Net profit from continuing operations (net losses expressed
                                                                          291,657,740.36     3,102,982,900.30
with "-")
  (II) Net profit from discontinuing operations (net losses
expressed with "-")
V. Net after-tax amount of other comprehensive income                         -46,736.62            -7,226.33
     (I) Other comprehensive income that cannot be reclassified


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                                    Item                                   Half of 2022         Half of 2021
 into profit or loss
          1. Changes arising from re-measurement of the defined
 benefit plan
          2. Other comprehensive incomes that cannot be
 transferred to profit and loss 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 income to be reclassified into
                                                                                 -46,736.62            -7,226.33
 profit or loss
          1. Other comprehensive incomes that can be reclassified
                                                                                 -46,736.62            -7,226.33
 into profit and loss 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. Impairment provision of credit in other debt
 investments
          5. Cash flow hedging reserve
          6. Exchange differences arising from foreign currency
 financial statements
          7. Others
 VI. Total comprehensive income                                              291,611,003.74     3,102,975,673.97
 VII. Earnings per share:
     (I) Basic earnings per share
     (II) Diluted earnings per share

5.    Consolidated cash flow statement

                                                                                                    Unit: CNY
                                    Item                                   Half of 2022         Half of 2021
 I. Cash flows from operating activities:
     Cash received from sales of goods or rendering of services           22,972,631,458.07    39,287,647,573.86
     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
     Premiums received from original insurance contracts


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                               Item                                   Half of 2022         Half of 2021
  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                                                1,010,974,954.15
  Other cash receipts related to operating activities                   845,166,247.90      547,477,041.89
Subtotal of cash inflows from operating activities                   24,828,772,660.12    39,835,124,615.75
  Cash paid for goods and services                                   20,189,789,863.19    18,701,696,474.78

  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 for employees                                      2,288,542,182.41     2,600,871,987.98
  Taxes paid                                                             70,848,814.67     1,994,456,924.80
  Other cash paid relating to operating activities                      836,454,073.22     1,012,384,865.02
Subtotal of cash outflows from operating activities                  23,385,634,933.49    24,309,410,252.58
Net cash flows from operating activities                              1,443,137,726.63    15,525,714,363.17
II. Cash flows from investing activities:
  Cash received from disposal of investments
  Cash received from investment income                                    6,300,012.21         4,907,799.92
  Net cash received from disposal of fixed assets, intangible
                                                                          3,519,331.24         2,145,684.73
assets and other long-term assets
  Net cash received from disposal of subsidiaries and other
business units
  Cash received relating to other investing activities                  441,265,670.20      283,825,095.39
Subtotal of cash inflows from investing activities                      451,085,013.65      290,878,580.04
  Cash paid to acquire fixed assets, intangible assets and other
                                                                      1,125,719,469.03      987,980,994.05
long-term assets

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                                  Item                                   Half of 2022         Half of 2021
     Cash paid for investment
     Net increase in impawn loans
     Net cash paid to acquire subsidiaries and other business units
     Cash paid relating to other investing activities
 Subtotal of cash outflows from investing activities                     1,125,719,469.03       987,980,994.05
 Net cash flows from investing activities                                 -674,634,455.38      -697,102,414.01
 III. Cash flows from financing activities:
     Cash received from capital contributions                                                   309,046,933.78
     Including: cash received by subsidiaries from capital
 contributions of minority shareholders
     Cash received from borrowings
     Other cash received relating to financing activities
 Subtotal of cash inflows from financing activities                                             309,046,933.78
     Cash paid for repayment of debts

     Cash paid for distribution of dividends, profits or repayment of
                                                                         3,025,174,498.45
 interest
     Including: dividends and profits paid to minority shareholders
 by subsidiaries
     Other cash paid relating to financing activities                       15,922,921.74
 Subtotal of cash outflows from financing activities                     3,041,097,420.19
 Net cash flows from financing activities                                -3,041,097,420.19      309,046,933.78
 IV. Effect of foreign exchange rate changes on cash and cash
 equivalents
 V. Net increase in cash and cash equivalents                            -2,272,594,148.94   15,137,658,882.94
     Add: beginning balance of cash and cash equivalents                30,542,676,891.89    14,786,680,218.82
 VI. Ending balance of cash and cash equivalents                        28,270,082,742.95    29,924,339,101.76

6.    Cash flow statement of the parent company

                                                                                                  Unit: CNY
                                  Item                                   Half of 2022         Half of 2021
 I. Cash flows from operating activities:
     Cash received from sales of goods or rendering of services
     Tax refunds received                                                      735,000.75
     Other cash receipts related to operating activities                 3,032,128,468.42            96,521.52
 Subtotal of cash inflows from operating activities                      3,032,863,469.17            96,521.52
     Cash paid for goods and services


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                               Item                                   Half of 2022         Half of 2021
  Cash paid to and for employees                                            207,000.00          219,000.00
  Taxes paid                                                                 96,728.40         6,334,983.10
  Other cash paid relating to operating activities                          834,581.41     1,485,537,604.60
Subtotal of cash outflows from operating activities                       1,138,309.81     1,492,091,587.70
Net cash flows from operating activities                              3,031,725,159.36    -1,491,995,066.18
II. Cash flows from investing activities:
  Cash received from disposal of investments
  Cash received from investment income                                                     2,719,920,000.00
  Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
  Net cash received from disposal of subsidiaries and other
business units
  Other cash received relating to financing activities                       19,230.41          246,160.17
Subtotal of cash inflows from investing activities                           19,230.41     2,720,166,160.17
  Cash paid to acquire fixed assets, intangible assets and other
long-term assets
  Cash paid for investment
  Net cash paid to acquire subsidiaries and other business units
  Cash paid relating to other investing activities
Subtotal of cash outflows from investing activities
Net cash flows from investing activities                                     19,230.41     2,720,166,160.17
III. Cash flows from financing activities:
  Cash received from capital contributions                                                   309,046,933.78
  Cash received from borrowings
  Other cash received relating to financing activities
Subtotal of cash inflows from financing activities                                           309,046,933.78
  Cash paid for repayment of debts
  Cash paid for distribution of dividends, profits or repayment of
                                                                      3,025,174,498.45
interest
  Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities                   3,025,174,498.45
Net cash flows from financing activities                              -3,025,174,498.45      309,046,933.78
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents                              6,569,891.32     1,537,218,027.77
  Add: beginning balance of cash and cash equivalents                     8,109,077.01         1,584,858.35
VI. Ending balance of cash and cash equivalents                          14,678,968.33     1,538,802,886.12

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           7.    Consolidated statement of changes in owners' equity

                                                                                                                                                                                             Amount in the current period
                                                                                                                                                                                                              Unit: CNY
                                                                                                                    Half of 2022

                                                                                   Owners' equity attributable to the parent company

                                      Other equity instruments                                                                                      Genera                                                Minori
       Item                                                                                                                                                                                                        Total owners'
                                                                                      Less:           Other                                                                                                 ty
                                     Preferr   Perpetu                                                               Special           Surplus      l risk    Undistributed      Othe
                     Share capital                               Capital reserve    treasury        comprehens                                                                            Subtotal        equity      equity
                                                          Othe
                                       ed         al                                                                 reserve           reserve      provisi      profits          rs
                                                           rs                        shares         ive income
                                     Shares     bonds                                                                                                 on

I. Ending                                                                                                      -
                     4,654,114,61                                10,439,365,09     310,460,486                     315,398,148      2,742,214,90               8,434,403,35             26,242,240,72              26,242,240,72
balance of the                                                                                      32,794,902.
                              3.00                                         3.18               .38                          .75               4.83                      2.08                      3.26                          3.26
previous year                                                                                                 20

       Add:
changes in
accounting
policies

            Correc
tion of errors in
the previous
period

            Busin
ess combination
under common
control

            Others

II. Opening                                                                                                    -
                     4,654,114,61                                10,439,365,09     310,460,486                     315,398,148      2,742,214,90               8,434,403,35             26,242,240,72              26,242,240,72
balance of the                                                                                      32,794,902.
                              3.00                                         3.18               .38                          .75               4.83                      2.08                      3.26                          3.26
current year                                                                                                  20

III.
                                                                                                -                                                                            -                        -                            -
Increase/decreas                                                                                                   41,930,677.
                                                                 30,324,031.20     28,891,460.       -44,893.81                                               2,855,020,611             2,753,919,335.             2,753,919,335.
e in amount of                                                                                                                 86
                                                                                              65                                                                           .13                       23                         23
the current

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                                                                                  Owners' equity attributable to the parent company

                                     Other equity instruments                                                                                   Genera                                               Minori
       Item                                                                                                                                                                                                   Total owners'
                                                                                    Less:           Other                                                                                              ty
                                    Preferr   Perpetu                                                              Special            Surplus   l risk    Undistributed     Othe
                    Share capital                               Capital reserve    treasury       comprehens                                                                         Subtotal        equity      equity
                                                         Othe
                                      ed         al                                                                reserve            reserve   provisi      profits         rs
                                                          rs                        shares        ive income
                                    Shares     bonds                                                                                              on

period (decrease
expressed with
"-")

(I) Total
                                                                                                                                                          170,153,887.             170,108,993.5              170,108,993.5
comprehensive                                                                                      -44,893.81
                                                                                                                                                                       32                        1                         1
income

(II) Invested and
                                                                                              -
decreased
                                                                30,324,031.20     28,891,460.                                                                                      59,215,491.85              59,215,491.85
capital of
                                                                                             65
owners

1. Ordinary
shares 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                                                       30,324,031.20     28,891,460.                                                                                      59,215,491.85              59,215,491.85
                                                                                             65
                                                                                                                                                                        -                        -                            -
(III) Profit
                                                                                                                                                          3,025,174,49             3,025,174,498.             3,025,174,498.
distribution
                                                                                                                                                                   8.45                         45                        45
1. Surplus
                                                                                                                                                                                                                           75
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                                                                                  Owners' equity attributable to the parent company

                                     Other equity instruments                                                                                   Genera                                              Minori
      Item                                                                                                                                                                                                   Total owners'
                                                                                    Less:           Other                                                                                             ty
                                    Preferr   Perpetu                                                              Special            Surplus   l risk    Undistributed    Othe
                    Share capital                               Capital reserve    treasury      comprehens                                                                         Subtotal        equity      equity
                                                         Othe
                                      ed         al                                                                reserve            reserve   provisi      profits        rs
                                                          rs                        shares       ive income
                                    Shares     bonds                                                                                              on

reserves
withdrawn

2. General risk
provision
withdrawn

3. Distribution                                                                                                                                                        -                        -                            -
to owners (or                                                                                                                                             3,025,174,49            3,025,174,498.             3,025,174,498.
shareholders)                                                                                                                                                      8.45                        45                        45

4. Others

(IV) Internal
carryover of
owners' equity

1. Transfer from
capital reserve
to paid-in
capital (or share
capital)

2. Transfer from
surplus reserves
to paid-in
capital (or share
capital)

3. Recovery of
losses by
surplus reserves

4. Retained
earnings carried
forward from
changes in

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                                                                                  Owners' equity attributable to the parent company

                                     Other equity instruments                                                                                      Genera                                           Minori
        Item                                                                                                                                                                                                 Total owners'
                                                                                     Less:           Other                                                                                            ty
                                    Preferr   Perpetu                                                               Special           Surplus      l risk    Undistributed   Othe
                   Share capital                                Capital reserve    treasury        comprehens                                                                         Subtotal      equity      equity
                                                         Othe
                                      ed         al                                                                 reserve           reserve      provisi      profits       rs
                                                          rs                        shares         ive income
                                    Shares     bonds                                                                                                 on

defined benefit
plans

5. Retained
earnings carried
forward from
other
comprehensive
incomes

6. Others

(V) Special                                                                                                       41,930,677.
                                                                                                                                                                                    41,930,677.86            41,930,677.86
reserve                                                                                                                       86

1. Withdrawal in
                                                                                                                  53,753,366.
the current                                                                                                                                                                         53,753,366.46            53,753,366.46
                                                                                                                              46
period

2. Use in the                                                                                                     11,822,688.
                                                                                                                                                                                    11,822,688.60            11,822,688.60
current period                                                                                                                60

(VI) Others

IV. Ending                                                                                                    -
                    4,654,114,61                                10,469,689,12     281,569,025                     357,328,826      2,742,214,90              5,579,382,74           23,488,321,38            23,488,321,38
balance of the                                                                                     32,839,796.
                            3.00                                          4.38               .73                          .61               4.83                      0.95                   8.03                        8.03
current period                                                                                               01

          Amount of previous year

                                                                                                                                                                                                               Unit: CNY




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                                                                                                                  Half of 2021
                                                                                  Owners' equity attributable to the parent company
      Item                           Other equity instruments                                                                                   Genera                                            Minori
                                                                                     Less:          Other                                                                                                  Total owners'
                                    Preferr   Perpetu                                                           Special               Surplus    l risk   Undistributed   Othe                      ty
                    Share capital                        Othe   Capital reserve    treasury      comprehens                                                                        Subtotal                   equity
                                      ed         al                                                             reserve               reserve   provisi     profits        rs                     equity
                                                           rs                       shares       ive income
                                    Shares     bonds                                                                                               on
I. Ending                                                                                                  -
                    4,609,666,21                                10,098,280,76                                    253,571,466     2,394,517,07             7,207,573,35           24,560,505,43             24,560,505,43
balance of the                                                                                   3,103,446.4
                            2.00                                         7.34                                             .48            9.97                     1.05                    0.40                      0.40
previous year                                                                                              4
      Add:
changes in
                                                                                                                                                          -1,233,011.80           -1,233,011.80             -1,233,011.80
accounting
policies
           Correc
tion of errors in
the previous
period
           Busin
ess combination
under common
control
           Others
II. Opening                                                                                                -
                    4,609,666,21                                10,098,280,76                                    253,571,466     2,394,517,07             7,206,340,33           24,559,272,41             24,559,272,41
balance of the                                                                                   3,103,446.4
                            2.00                                         7.34                                             .48            9.97                     9.25                    8.60                      8.60
current year                                                                                               4
III.
Increase/decreas
e in amount of
                    40,987,657.0                                294,164,315.5     288,553,105                    43,124,293.                              943,651,632.           1,033,365,992.            1,033,365,992.
the current                                                                                        -8,800.15
                               0                                            2              .28                           39                                        04                       52                        52
period (decrease
expressed with
"-")
(I) Total
                                                                                                                                                          3,268,978,56           3,268,969,766.            3,268,969,766.
comprehensive                                                                                      -8,800.15
                                                                                                                                                                  6.54                      39                        39
income
(II) Invested and
decreased           40,987,657.0                                294,164,315.5     288,553,105
                                                                                                                                                                                 46,598,867.24             46,598,867.24
capital of                     0                                            2              .28
owners
1. Ordinary
shares invested
by owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amounts of
share-based
                    40,987,657.0                                294,164,315.5     288,553,105
payments                                                                                                                                                                         46,598,867.24             46,598,867.24
                               0                                            2              .28
recorded in
owner's equity

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                                                                                  Owners' equity attributable to the parent company
      Item                           Other equity instruments                                                                                   Genera                                            Minori
                                                                                     Less:          Other                                                                                                  Total owners'
                                    Preferr   Perpetu                                                           Special               Surplus    l risk   Undistributed   Othe                      ty
                    Share capital                        Othe   Capital reserve    treasury      comprehens                                                                        Subtotal                   equity
                                      ed         al                                                             reserve               reserve   provisi     profits        rs                     equity
                                                           rs                       shares       ive income
                                    Shares     bonds                                                                                               on
4. Others
                                                                                                                                                                     -                        -                         -
(III) Profit
                                                                                                                                                          2,325,326,93           2,325,326,934.            2,325,326,934.
distribution
                                                                                                                                                                  4.50                      50                        50
1. Surplus
reserves
withdrawn
2. General risk
provision
withdrawn
3. Distribution                                                                                                                                                      -                        -                         -
to owners (or                                                                                                                                             2,325,326,93           2,325,326,934.            2,325,326,934.
shareholders)                                                                                                                                                     4.50                      50                        50
4. Others
(IV) Internal
carryover of
owners' equity
1. Transfer from
capital reserve
to paid-in
capital (or share
capital)
2. Transfer from
surplus reserves
to paid-in
capital (or share
capital)
3. 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
incomes
6. Others
(V) Special                                                                                                      43,124,293.
                                                                                                                                                                                 43,124,293.39             43,124,293.39
reserve                                                                                                                  39
1. Withdrawal in                                                                                                 57,124,832.                                                     57,124,832.18             57,124,832.18
                                                                                                                                                                                                                       79
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                                                                                                                      Half of 2021
                                                                                      Owners' equity attributable to the parent company
      Item                              Other equity instruments                                                                                      Genera                                              Minori
                                                                                           Less:        Other                                                                                                       Total owners'
                                       Preferr   Perpetu                                                            Special               Surplus      l risk     Undistributed   Othe                      ty
                       Share capital                        Othe    Capital reserve      treasury    comprehens                                                                               Subtotal                 equity
                                         ed         al                                                              reserve               reserve     provisi       profits        rs                     equity
                                                              rs                          shares     ive income
                                       Shares     bonds                                                                                                  on
the current                                                                                                                   18
period
                                                                                                                               -
2. Use in the
                                                                                                                     14,000,538.                                                         -14,000,538.79             -14,000,538.79
current period
                                                                                                                             79
(VI) Others
IV. Ending                                                                                                     -
                       4,650,653,86                                  10,392,445,08    288,553,105                    296,695,759      2,394,517,07                8,149,991,97           25,592,638,41              25,592,638,41
balance of the                                                                                       3,112,246.5
                               9.00                                           2.86             .28                            .87             9.97                        1.29                    1.12                       1.12
current period                                                                                                 9


        8.       Statement of changes in owners' equity of the parent company

        Amount in the current period
                                                                                                                                                                                                                     Unit: CNY
                                                                                                                                     Half of 2022
                                                       Other equity instruments                                                                Other
         Item                                                                                                       Less: treasury                              Special                            Undistributed                      Total owners'
                                Share capital      Preferred       Perpetual                  Capital reserve                              comprehensive                    Surplus reserve                           Others
                                                                                Others                                 shares                                   reserve                              profits                             equity
                                                    Shares          bonds                                                                     income

I. Ending balance of
                              4,654,114,613.00                                             12,267,337,664.44       310,460,486.38              304,113.31                  1,511,497,143.93      6,974,643,184.91               25,097,436,233.21
the previous year
     Add: changes
in accounting
policies
           Correction
of errors in the
previous period
              Others
II. Opening balance
                              4,654,114,613.00                                             12,267,337,664.44       310,460,486.38              304,113.31                  1,511,497,143.93      6,974,643,184.91               25,097,436,233.21
of the current year
III.                                                                                                                                                                                                            -
                                                                                                                    -28,891,460.65              -46,736.62                                                                          -2,704,672,034.06
Increase/decrease in                                                                                                                                                                             2,733,516,758.09

                                                                                                                                                                                                                                80
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                                          Other equity instruments                                             Other
        Item                                                                              Less: treasury                   Special                      Undistributed                Total owners'
                       Share capital   Preferred   Perpetual            Capital reserve                    comprehensive             Surplus reserve                      Others
                                                               Others                        shares                        reserve                        profits                       equity
                                        Shares      bonds                                                     income
amount of the
current period
(decrease expressed
with "-")
(I) Total
comprehensive                                                                                                 -46,736.62                                291,657,740.36                  291,611,003.74
income
(II) Invested and
decreased capital of                                                                      -28,891,460.65                                                                                 28,891,460.65
owners
1. Ordinary shares
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                                                                                 -28,891,460.65                                                                                 28,891,460.65
(III) Profit                                                                                                                                                          -
                                                                                                                                                                                   -3,025,174,498.45
distribution                                                                                                                                           3,025,174,498.45
1. Surplus reserves
withdrawn
2. Distribution to
                                                                                                                                                                      -
owners (or                                                                                                                                                                         -3,025,174,498.45
                                                                                                                                                       3,025,174,498.45
shareholders)
3. Others
(IV) Internal

                                                                                                                                                                                   81
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                                           Other equity instruments                                             Other
        Item                                                                               Less: treasury                   Special                     Undistributed             Total owners'
                        Share capital   Preferred   Perpetual            Capital reserve                    comprehensive             Surplus reserve                   Others
                                                                Others                        shares                        reserve                       profits                    equity
                                         Shares      bonds                                                     income
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
incomes
6. Others
(V) Special reserve
1. Withdrawal in the
current period
2. Use in the current
period
(VI) Others

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                                              Other equity instruments                                               Other
        Item                                                                                    Less: treasury                   Special                       Undistributed                Total owners'
                          Share capital    Preferred   Perpetual             Capital reserve                     comprehensive             Surplus reserve                       Others
                                                                   Others                          shares                        reserve                         profits                       equity
                                            Shares      bonds                                                       income

IV. Ending balance
                        4,654,114,613.00                                    12,267,337,664.44   281,569,025.73      257,376.69             1,511,497,143.93   4,241,126,426.82            22,392,764,199.15
of the current period




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      Amount of previous year
                                                                                                                                                                                  Unit: CNY
                                                                                                             Half of 2021
        Item                                  Other equity instruments                                                 Other
                                                                                                Less: treasury                    Special                       Undistributed                   Total owners'
                          Share capital    Preferred Perpetual               Capital reserve                      comprehensive             Surplus reserve                       Others
                                                                   Others                          shares                         reserve                         profits                          equity
                                            Shares      bonds                                                         income
I. Ending balance of
                        4,609,666,212.00                                    11,926,123,599.85                       338,977.41              1,163,799,319.07   6,170,689,695.69            23,870,617,804.02
the previous year
      Add: changes
in accounting
policies
           Correction
of errors in the
previous period
           Others
II. Opening balance
                        4,609,666,212.00                                    11,926,123,599.85                       338,977.41              1,163,799,319.07   6,170,689,695.69            23,870,617,804.02
of the current year
III.
Increase/decrease in
amount of the
                          40,987,657.00                                       268,059,276.78    288,553,105.28        -7,226.33                                 777,655,965.80                  798,142,567.97
current period
(decrease expressed
with "-")
(I) Total
comprehensive                                                                                                         -7,226.33                                3,102,982,900.30             3,102,975,673.97
income
(II) Invested and
decreased capital of      40,987,657.00                                       268,059,276.78    288,553,105.28                                                                                   20,493,828.50
owners
1. Ordinary shares
invested by owners
2. Capital
contributed by
holders of other
equity instruments
3. Amounts of
share-based
                          40,987,657.00                                       268,059,276.78    288,553,105.28                                                                                   20,493,828.50
payments recorded
in owner's equity
4. Others

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                                                                                                        Half of 2021
        Item                               Other equity instruments                                               Other
                                                                                           Less: treasury                    Special                      Undistributed                   Total owners'
                        Share capital   Preferred Perpetual              Capital reserve                     comprehensive             Surplus reserve                      Others
                                                                Others                        shares                         reserve                        profits                          equity
                                         Shares      bonds                                                       income
(III) Profit                                                                                                                                                            -
                                                                                                                                                                                     -2,325,326,934.50
distribution                                                                                                                                             2,325,326,934.50
1. Surplus reserves
withdrawn
2. Distribution to
owners (or
shareholders)
                                                                                                                                                                        -
3. Others                                                                                                                                                                            -2,325,326,934.50
                                                                                                                                                         2,325,326,934.50
(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
incomes
6. Others
(V) Special reserve
1. Withdrawal in the
current period
2. Use in the current
period
(VI) Others

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                                                                                                             Half of 2021
        Item                                  Other equity instruments                                                 Other
                                                                                                Less: treasury                    Special                       Undistributed                   Total owners'
                          Share capital    Preferred Perpetual               Capital reserve                      comprehensive             Surplus reserve                       Others
                                                                   Others                          shares                         reserve                         profits                          equity
                                            Shares      bonds                                                         income
IV. Ending balance
                        4,650,653,869.00                                    12,194,182,876.63   288,553,105.28      331,751.08              1,163,799,319.07   6,948,345,661.49            24,668,760,371.99
of the current period




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III. Company Profile

FAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liability company
registered in Changchun City, Jilin Province.

FAW Car was approved by the TGS (1997) No.55 document issued by State Commission for Restructuring the
Economic System in 1997, and was established exclusively by China FAW Group Co., Ltd. (hereinafter referred to
as FAW Group). 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 reorganization. After the adjustment, FAW Car transferred all its assets and
liabilities, excludingthe equity of First Automobile Finance Co., Ltd. and Sanguard Automobile Insurance Co., Ltd.
and some reserved assets, to FAW Bestune, and then replaced 100% equity of FAW Bestune Car Co., Ltd. with the
equivalent part of 100% equity of 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".



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On January 11, 2021, the Company held the first 2021 extraordinary shareholders' meeting, and reviewed and
approved the Proposal on the Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and
Its Abstract, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan
of FAW JIEFANG GROUP CO., LTD., the Proposal on the Regulations for Restricted Share Incentive of FAW
JIEFANG GROUP CO., LTD., and the Proposal on Requesting the Shareholders Meeting to Authorize the Board
of Directors to Handle Matters Related to the Company's Restricted Share Incentive Plan. On January 15, 2021,
the Company held the 12th meeting of the 9th Board of Directors, and reviewed and approved the Proposal on
Adjusting the List of the First Batch of Incentive Objects and the Number of Grants in the Phase I Restricted Share
Incentive Plan and the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I Restricted
Share Incentive Plan for the First Time. Nine directors and senior executives, including Hu Hanjie, Zhu Qixin,
Zhang Guohua, Wang Ruijian, Shang Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun, and 310 other
core employees with the tile 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 Accounting Firm (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. 33 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 from 2 employees who were
no longer eligible for incentive objects at a price of CNY 7.04/share. 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.

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, including FAW Jiefang Automotive Sales Co., Ltd., FAW Jiefang (Qingdao)
Automotive Co., Ltd., Wuxi Dahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd., FAW Jiefang


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Austria R&D Co., Ltd., and FAW Jiefang New Energy Automotive Sales Co., Ltd. It also has 8 associated
companies, including First Automobile Finance Co., Ltd., Sanguard Automobile Insurance Co., Ltd., FAW
Changchun Baoyou 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., and SmartLink.

Business scope of the Company: R&D, production and sales of medium and heavy trucks, complete vehicles, buses,
bus chassis, medium truck deformation vehicles, automobile assemblies and parts, machining, diesel engines and
accessories (non-vehicle), mechanical equipment and accessories, instruments, technical services, technical
consultation, installation and maintenance of mechanical equipment, lease of mechanical equipment and facilities,
lease of houses and workshops, labor services (excluding foreign labor cooperation and domestic labor dispatch),
sales of steel, automobile trunks, hardware & electrical equipment and electronic products, testing of internal
combustion engine, engineering technology research and testing, advertising design, production and release, import
and export of goods and technologies (excluding publication import business and commodities and technologies
that are restricted or prohibited for import and export by the state); (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 (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 Hu Hanjie.

The financial statements and notes to the financial statements have been approved for issue by the Board of Directors
of the Company on August 29, 2022.

In 2022, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in the consolidation scope.
For details, please refer to VIII "Equity in Other Entities" in Section X - Financial Report.


IV. Basis for Preparation of 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


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according to the Disclosure of Company Information Disclosure Rules No. 15. - General Provisions on Financial
Reporting (revised in 2014) issued by China Securities Regulatory Commission.
The financial statements are presented on a going concern basis.
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.

2.   Going concern


The Company has no event or condition that causes significant doubt about its ability to continue as a going concern
for 12 months from the end of the reporting period.


V. Significant Accounting Policies and Accounting Estimates


Tips for specific accounting policies and accounting estimates:

The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalization
conditions of R&D expenses and income recognition policies according to its own production and operation
characteristics. For specific accounting policies, please see V "Significant Accounting Policies and Accounting
Estimates" 21, 25 and 33 in Section X - Financial Report.

1.   Statement of compliance with ASBE


The financial statements meet the requirements of ASBE, and truly and fully reflect the consolidated and company
financial conditions as of June 30, 2022 and the consolidated and company operating results, consolidated and
company cash flows and other information in the first half of 2022.

2.   Accounting period


The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.

3.   Business cycle


The business cycle of the Company is 12 months.




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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.   Accounting method for business combination under common control and different control


(1) Business combination under common control
In case of business combination under common control, 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 combined party in the
consolidated financial statements of the ultimate controlling party on the combination date, except for the adjustment
made due to different accounting policies. The capital reserve (stock premium) is adjusted based on the difference
between the book value of the combination consideration and the book value of the net assets obtained in the
combination. The retained earnings are adjusted if the capital reserve (stock premium) is insufficient for offset.
Business combination under common control realized step-by-step through multiple transactions
In individual financial statements, the share of book value of the combined party's net assets in the consolidated
financial statements of the ultimate controlling party on the combination date calculated based on the shareholding
proportion on the combination date is taken as the initial cost of the investment. The capital reserve (stock premium)
is adjusted based on the difference between the initial investment cost and 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
retained earnings are adjusted if the capital reserve is insufficient for offset.
In the consolidated financial statements, 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, except for the adjustment due to different accounting policies. The
capital reserve (stock 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 by the combining party before the acquisition of control
of the combined party as well as the profit or loss, other comprehensive income and changes in other owners' equity
that have been recognized during the period from the date of acquisition of the original equity and the date of final
control of the combining party and the combined party (whichever is later) to the combination date shall offset
against the beginning retained earnings or current profit or loss respectively during the period of comparative
statement.
(2) Business combination under different control



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In case of business combination 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 acquired from the acquiree on the acquisition date are
recognized at fair value.
If the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree in the
combination, the difference is recognized as goodwill and subsequently measured by deducting the accumulated
impairment provision from the cost. If the combination cost is less than the fair value of identifiable net assets
obtained from the acquiree in the combination, the difference is included in current profits and losses after review.
Business combination under different control realized step-by-step through multiple transactions
In individual financial statements, the sum of the book value of the equity investment of the acquiree held before
the acquisition date and the new investment cost on the acquisition date is taken as the initial cost of the investment.
Other comprehensive income of the equity investment held before the acquisition date and verified and recognized
with equity method is not disposed of on the acquisition date, and the investment is accounted for by disposing of
related assets or liabilities directly together with the investee. The owner's equity recognized due to changes in other
owner's equity in addition to net profit or loss, other comprehensive income and profit distribution of the investee
is transferred to the current profit or loss during the disposal period when the investment is being disposed of. If the
equity investment held before the acquisition date is measured at fair value, the accumulated changes in fair value
originally included in other comprehensive income are transferred to retained earnings when cost method is adopted
for calculation.
In the consolidated financial statements, 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 is re-measured at its fair value on the acquisition date, and the
difference between the fair value and its book value is included in current profit or loss. Other comprehensive
income and other changes in owner's equity involved in the acquiree's equity held before the acquisition date are
transferred to current income on the acquisition date, except for other comprehensive income generated from the
changes due to the investee's re-measurement of net liabilities or net assets of the defined benefit plan.
(3) Disposal of transaction expenses in business combination
Intermediation costs such as audit, legal services, assessment and consultation and other related management costs
incurred for business combination are included in the current profits and losses when incurred. The transaction
expenses of equity securities or debt securities issued as consolidated consideration are included in the initially
recognized amount of equity securities or debt securities.

6.   Preparation method of consolidated financial statements


(1) Scope of consolidation


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The consolidation scope of consolidated financial statements is determined on the basis of control. Control means
the power of the Company over the investee, and the Company can enjoy variable returns by taking part into related
activities of the investee and is able to influence its amount of return with the power over the investee. Subsidiaries
refer to entities controlled by the Company (including enterprises, separable parts of investees, structured entities,
etc.).
(2) Preparation method 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 in accordance with other relevant information. During the preparation of
consolidated financial statements, the accounting policies and accounting periods of the Company and its
subsidiaries shall be consistent, and the balances of major transactions and transactions between the companies are
offset.
Subsidiaries and businesses increased in the reporting period due to the business combination under common control
are deemed to be incorporated in the consolidation scope of the Company from the date of control by the ultimate
controlling party, and their operating results and cash flows from the date of control by the ultimate controlling
party are included in the consolidated profit statement and consolidated cash flow statement respectively.
For the subsidiaries and businesses increased in the reporting period due to business combination 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 shareholder's equity in a subsidiary that is not owned by the Company is presented separately as
minority shareholders' interest under the item of shareholder's equity in the consolidated balance sheet; the portion
of current net profit or loss of a subsidiary that is attributable to minority interest is presented as "minority
shareholder's interests" under the item of net profit in the consolidated profit 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 against the minority equity.
(3) Purchase of minority shareholders' equity of 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 with loss of control over subsidiaries




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When the Company loses the right of control over its subsidiary due to the disposal of partial equity investment or
other reasons, the residual equity is re-measured at the fair value on the day when the right of control is lost. The
difference between the sum of the value received from disposal of equity and fair value of the residual equity, and
the share in book value of net assets and goodwill of the original subsidiary calculated constantly based on the
original shareholding proportion from the acquisition date is included in the investment income of the current period
when the right of control is lost.
Other comprehensive income in connection with equity investment of the original subsidiaries is transferred to
current profits and losses when the right of control is lost, except for other comprehensive income generated from
the changes due to the investee's re-measurement of net liabilities or net assets of the defined benefit plan.

7.    Classification of joint venture arrangements and accounting method 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 solely and the assets held jointly identified as per its shares;
B.    Recognizing the liabilities borne solely and the liabilities borne jointly identified as per its shares;
C.    Recognizing the income generated from the sale of shares enjoyed in the joint operation;
D.    Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;
E.    Recognizing the expenses incurred separately and the expenses arising from joint operation as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of the
arrangement.
The Company conducts accounting for the investment of joint ventures according to provisions of the equity method
accounting for long-term equity investments.

8.    Standards for defining 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.



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9.      Foreign currency transactions and conversion of foreign currency statements


(1) Foreign currency transactions
Foreign currency transactions of the Company are converted into the recording currency amount according to the
spot exchange rate on the transaction date.
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
are 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) Conversion of foreign currency statements
When the foreign currency financial statements of overseas subsidiaries are converted on the balance sheet date, the
assets and liabilities items in the balance sheet are converted at the spot exchange rate on the balance sheet date; the
shareholders' equity items, except for "undistributed profits", are converted at the spot exchange rate on the date of
occurrence.
The income and expense items in the profit statement are converted at the spot exchange rate on the transaction
date.
All items in the cash flow statement are converted at the spot exchange rate on the cash flow date. The effect of
exchange rate changes on cash is taken as a regulation item, and reflected in the item "Effect of exchange rate
changes on cash and cash equivalents" listed separately in the cash flow statement.
The difference arising from the conversion of financial statements is reflected in the item "Other comprehensive
income" under the item "Shareholders' equity" in the balance sheet.
During the disposal of overseas operation and when the right of control is lost, 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.

10. Financial instruments


Financial instruments refer to contracts that form the financial assets of one party and form the financial liabilities
or equity instruments of other parties.
(1) Recognition and derecognition of financial instruments



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The Company recognizes a financial asset or financial liability when it becomes a party to the contract of the
financial instrument.
Financial assets are derecognized if they meet one of the following conditions:
① The contractual right to receive the cash flow of the financial asset is terminated;
② The financial assets have been transferred and meet the following derecognition conditions for the transfer of
financial assets.
The financial liabilities are derecognized in full or in part if the current obligation of financial liabilities has been
wholly or partially released. 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 are purchased and sold in a conventional manner, and accounting recognition and derecognition are
performed 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 and whose changes
are included in other comprehensive income, and financial assets measured at fair value and whose changes are
included in the current profits or losses.
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's business model for managing the financial assets is to collect contractual cash flows;
The contractual terms of the financial asset specify that the cash flow generated on a specific date is only the
payment of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost with the effective interest method.
Gains or losses arising from financial assets measured at amortized cost and not part of any hedging relationship
are included in the current profits or losses at the time of derecognition, amortization with effective interest method
or recognition for impairment.
Financial assets measured at fair value and whose changes are included in other comprehensive income
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 the current profits or losses as the financial assets measured at fair
value and whose changes are included in other comprehensive income:


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The Company's business model for managing the financial assets aims at both collecting contractual cash flows
and selling the financial assets;
The contractual terms of the financial asset specify that the cash flow generated on a specific date is only the
payment of principal and 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. At the time of
derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred
out and included in the current profits and losses.
Financial assets measured at fair value and whose changes are included in current profits and losses
Except for the above financial assets measured at amortized cost and that measured at fair value and whose changes
are included in other comprehensive income, the Company classifies all other financial assets into that measured at
fair value and whose changes are included in current profits or losses. At the time of initial recognition, the Company
irrevocably designates some financial assets that should have been measured at amortized cost or that should be
measured at fair value and whose changes are included in other comprehensive income as the financial assets
measured at fair value and whose changes are included in current profits or losses in order to eliminate or
significantly reduce accounting mismatch.
After initial recognition, such financial assets are subsequently measured at fair value, and the resulting gains or
losses (including interest and dividend income) are included in the current profits or losses, unless the financial
assets are part of the hedging relationship.
The business model for managing financial assets refers to the way adopted by the Company to manage financial
assets to generate cash flows. The business model determines the cash flow sources of the financial assets managed
by the Company, which may come from the collection of contractual cash flow or the sale of financial assets or
both. The Company determines the business model for managing financial assets based on objective facts and the
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 the financial assets on a specific date is only the payment of principal and interest
based on the amount of outstanding principal. Principal refers to the fair value of financial assets at the time of
initial recognition; interest includes consideration for the time value of money, credit risk related to the amount of
outstanding principal in a specific period, and other basic 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
flow of financial assets to determine whether they meet the requirements of the above contractual cash flow
characteristics.




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All affected financial assets are reclassified on the first day of the first reporting period after the business mode is
changed only if the Company changes the business mode for managing financial assets, otherwise financial assets
shall not be reclassified after initial recognition.
Financial assets are measured at fair value at the time of initial recognition. The transaction expenses of the financial
assets measured at fair value and whose changes are included into current profits or losses are directly included in
the current profits or losses; the transaction expenses of other financial assets are included in the initially recognized
amount. For accounts receivable arising from the sale of products or the rendering of services, which do not include
or do not take into account significant financing components, the Company takes the amount of consideration
expected to be entitled to receive as the initially recognized amount.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified into the following types at the time of initial recognition:
financial liabilities measured at fair value and whose changes are included in profits or losses, and financial
liabilities measured at amortized cost. For the financial liabilities not classified as those measured at fair value and
whose changes are included in the current profits or losses, the transaction expenses are included in their initially
recognized amounts.
Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Financial liabilities measured at fair value and whose changes are included in the current profits and losses include
trading financial liabilities and the financial liabilities designated to be measured at fair value and whose changes
are included in the current profits and losses at the time of initial recognition. Such financial liabilities are
subsequently measured at fair value, and the gains or losses arising from changes in fair value as well as the
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 with the effective interest method, and gains
or losses arising from derecognition or amortization are included in current profits and losses.
Difference between financial liabilities and equity instruments
Financial liabilities refer to the liabilities that meet one of the following conditions:
① Contractual obligations of delivering cash or other financial assets to other parties.
② Contractual obligations of exchanging financial assets or financial liabilities with other parties under
potentially adverse conditions.
③ Non-derivative instrument contracts which must or may be settled with the enterprise's own equity instruments
in the future, and the equity instrument of the enterprise with which a variable number is delivered under the contract.
④ Derivative instrument contracts which must or may be settled with the enterprise's own equity instruments in
the future, except for those with a fixed amount of equity instruments to exchange for a fixed amount of cash or
other financial assets.


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Equity instrument refers to the contract which can prove the residual equity in the assets of an enterprise after all
liabilities are deducted.
The contractual obligation satisfies the definition of financial liability if the Company fails to perform one
contractual obligation by avoiding delivering cash or other financial assets unconditionally.
If a financial instrument must or can be settled by the Company's own equity instrument, it needs to consider whether
the equity instrument is used to replace cash or other financial assets, or help its holder to enjoy the residual equity
in the issuer's assets after all liabilities are deducted. If it is used for the former purpose, the instrument is the
financial liability of the Company; if it is used for the latter purpose, the instrument is the equity instrument of the
Company.
(4) Fair value of financial instruments
The determination methods for fair values of financial assets and financial liabilities are described in 37 "Other
significant accounting policies and accounting estimates" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
(5) Impairment of financial assets
The Company carries out impairment accounting and recognizes the loss provision for the following items based
on the expected credit loss:
Financial assets measured at amortized cost;
Receivables and debt investments measured at fair value and whose changes are included in other comprehensive
income;
Contractual assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue.
Lease receivables.
Financial guarantee contracts (except those formed by measuring at fair value with its changes included in current
profits and losses, and when the transfer of financial assets does not meet the conditions for derecognition or the
transferred financial assets are involved continuously).
Measurement of expected credit loss
The 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 according to the original effective interest rate and all cash flows receivable of the
Company, that is, the present value of all cash shortages.
The Company considers reasonable and reliable information about past events, current situation and forecast of
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.




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The Company measures the expected credit losses of financial instruments at different stages respectively. The
financial instruments with the credit risk not increased significantly since the initial recognition is in phase I, and
the Company measures the provision for loss based on the expected credit loss in the next 12 months. The financial
instrument with credit loss increased significantly since its initial recognition but without credit impairment is in
phase II, and the Company measures the provision for loss based on the expected credit loss of the instrument in
the whole duration. The financial instrument with credit impairment since its initial recognition is in phase III, and
the Company measures the provision for loss based on the expected credit loss of the instrument in the whole
duration.
The Company assumes that the credit risk of the financial instruments with low credit risk on the balance sheet date
has not increased significantly since the initial recognition, and measures the provision for loss based on the
expected credit loss in the next 12 months.
The expected credit loss in the whole duration refers to the loss caused by all possible default events in the whole
expected duration of the 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).
The Company calculates interest income of the financial instruments in the phase I and phase II and with low credit
risk according to the book balance without deduction of impairment provision and the effective interest rate. For
financial instruments in phase III, the Company calculates the interest income based on their book balance minus
the amortized cost after the impairment provision has been made and the effective interest rate.
Notes receivable, accounts receivable and contractual assets

For notes receivable, accounts receivable and contractual 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 asset cannot be evaluated at a reasonable cost, the Company divides
the notes receivable and accounts receivable 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.   Aging portfolio of accounts receivable
C.   Aging portfolio of contractual assets



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The Company calculates the expected credit loss of the notes receivable and contractual 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.
The Company calculates the expected credit loss of the accounts receivable divided into portfolios by referring to
the historical credit loss experience, combining the current situation and the forecast of the future economic situation,
and preparing a comparison table of accounts receivable aging/overdue days and the expected credit loss rate for
the whole duration.
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
The Company calculates the expected credit loss of other receivables divided into portfolios according to the default
risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
Long-term receivables
The Company's long-term receivables include the receivables from sales of goods by installments.
The Company divides the receivables from sales of goods by installments 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:
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 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.
Debt investment and other debt investments
The Company calculates the expected credit loss of debt investment and other debt investments according to the
nature of the investment, the type of counterparties and risk exposures, and the default risk exposure and the
expected credit loss rate in the next 12 months or the whole duration.
Assessment of significant increase in credit risk
The Company evaluates whether the credit risk of financial instruments has increased significantly since the initial
recognition by comparing the default risk of financial instruments on the balance sheet date with the default risk on
the initial recognition date to determine the relative change in the default risk of financial instruments in the expected
duration.




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The Company considers the reasonable and reliable information (including forward-looking information) which can
be obtained without unnecessary additional cost or effort when determining whether the credit risk has increased
significantly since the initial recognition. The information considered by the Company includes the following:
Failure of the debtor to pay the principal and interest on the due date of the contract;
Existing or expected great degradation of external or internal credit ratings (if any) of financial instruments;
Existing or expected serious deterioration of the debtor's operating results;
Existing or expected changes in the technical, market, economic or legal environment, which will have a significant
adverse effect on the debtor's repayment ability to the Company.
The Company assesses whether the credit risk has increased significantly on the basis of a single financial
instrument or portfolios of financial instruments according to the nature of financial instruments. The Company
may classify financial instruments based on common credit risk characteristics, such as overdue information and
credit risk ratings, when evaluating on the basis of financial instruments portfolios.
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 the financial assets measured at amortized cost and creditor's debt investment measured at
fair value and with changes included in other comprehensive income for credit impairment on the balance sheet
date. The financial assets become the credit-impaired financial assets in case of one or more events adversely
affecting their expected future cash flow. Evidence of credit impairment of financial assets includes the following
observable information:
Major financial difficulty of the issuer or debtor;
Default of the debtor, such as default in the payment of interest or principal, or overdue payment;
Concessions made by the Company to the debtor that would not be made under any other circumstances for
economic or contractual reasons related to the debtor's financial difficulty;
Great possibility of bankruptcy or other financial restructuring of the debtor;
Disappearance of the active market of the financial assets due to financial difficulty of the issuer or debtor;
Presentation of provisions for expected credit losses
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, and the increased or reversed amount of the loss
provision arising therefrom shall be included in the current profits and losses as impairment losses or gains. The
loss provision of the financial assets measured at amortized cost is used to offset their book value presented in the
balance sheet. For the debt investment measured at fair value with its changes included in other comprehensive
income, the Company recognizes its loss provision in other comprehensive income, which will not offset the book
value of the financial assets.


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Cancel after verification
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.
If the written-down financial assets are recovered later, the reverse of the impairment loss are included in the current
profits or losses.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the other 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 on
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 on ownership of a financial asset.
The following measures are taken when the Company neither transfers nor retains substantially all the risks and
rewards on ownership of a financial asset: The financial assets are derecognized and the assets and liabilities
incurred are recognized if the Company waives control over the financial assets. Relevant financial assets are
recognized based on the extent of their continued involvement in the transferred financial assets, and relevant
liabilities are recognized accordingly if the Company does not waive control over the financial assets.
(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.

11. Notes receivable


Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section X
- Financial Report.

12. Accounts receivable


Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section X
- Financial Report.


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13. Receivables financing


Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section X
- Financial Report.

14. Other receivables


For the determination method and accounting method of expected credit losses of other receivables, please refer to
10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section X -
Financial Report.

15. Inventories


(1) Classification of inventories

The inventories of the Company are divided into raw materials, self-made semi-finished products and finished
products, goods in stock, revolving materials, etc.

(2) Valuation method for dispatched inventories

It is accounted for according to the planned cost when the Company's inventory is obtained. The difference between
the planned cost and the actual cost is accounted for based on the cost difference account, and the planned cost is
adjusted to the actual cost according to the cost difference which shall be borne for the inventory carried forward
and dispatched on schedule.

(3) Basis for determining the net realizable value of inventories and drawing methods for provision for decline in
the value of inventories

The net realizable value of inventories refers to the amount of the estimated selling price of the inventories minus
the estimated costs upon completion, estimated selling expenses and relevant taxes. The net realizable value of
inventories is determined based on the unambiguous evidence obtained and by considering the purpose of holding
inventories and the effect of events after the balance sheet date.
The provision for decline in the value of inventories is made if the inventory cost is higher than its net realizable
value on the balance sheet date. The Company generally makes provision for decline in the value of inventories
according to a single inventory item. The provision for decline in the value of inventories previously made is
reversed if the influence of the write-down inventory value before the balance sheet date disappears.

(4) Inventory system

The Company adopts the perpetual inventory system.


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(5) Amortization method for low value consumables and packing materials

Low-value consumables and packaging materials of the Company are amortized by one-off write-off method when
being acquired.

16. Contractual assets


The Company presents the contractual 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 net amount of
contractual assets and contract liabilities under the same contract after offsetting them.
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 contractual
assets, please refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates"
of Section X - Financial Report.

17. Contract cost


Contract costs include incremental costs incurred to obtain contracts and contract performance costs.

The incremental cost incurred for obtaining the contract refers to the cost that will not incur if the Company fails to
obtain the contract (such as sales commission, etc.). The Company recognizes the cost as an asset of the contract
acquisition cost if it is expected to be recovered. Other expenses incurred by the Company for obtaining the contract,
except the incremental cost that is expected to be recovered, are included in the current profits and losses when
incurred.

The Company recognizes the cost incurred for the performance of the contract as the asset of contract performance
cost if it does not fall within the scope of other accounting standards for business enterprises such as inventory and
meets the following conditions at the same time:

① This cost is directly related to a current or expected contract, including direct labor, direct materials and
manufacturing expenses (or similar expenses), costs explicitly borne by the customer and other costs incurred only
by the Contract;

② This cost increases the future resources of the Company to fulfill the performance obligations;

③ This cost is expected to be recovered.




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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.

The Company makes provision for impairment of the excess and recognizes it as the asset impairment loss when
the book value of the assets related to the contract cost is higher than the difference between the following two items:

① Residual consideration expected to be obtained by the Company by transferring goods or services related to
the asset;

② The estimated cost to be incurred for the transfer of such goods or services.

The contract performance cost recognized as an asset is presented in the item "Inventory" if the amortization period
at the time of initial recognition does not exceed one year or one normal business cycle, and is presented in the item
"Other non-current assets" if the amortization period at the time of initial recognition exceeds one year or one normal
business cycle.

The contract acquisition cost recognized as an asset is presented in the item "Other current assets" if the amortization
period at the time of initial recognition does not exceed one year or one normal business cycle, and is presented in
the item "Other non-current assets" if the amortization period at the time of initial recognition exceeds one year or
one normal business cycle.

18. Held-for-sale assets


(1) Classification and measurement of held-for-sale non-current assets or disposal groups
The non-current asset or disposal group is classified as the held-for-sale asset if the Company recovers its book
value mainly by selling (including the exchange of non-monetary assets of commercial nature) rather than
continuously using the non-current asset or disposal group.
The above-mentioned non-current assets do not include investment real estates subsequently measured at fair value,
biological assets measured at the net amount obtained by deducting the selling expenses from the fair value, assets
obtained from employee compensation, financial assets, deferred tax assets and rights arising from insurance
contracts.
Disposal group refers to a group of assets which is sold or disposed of together as a whole in a transaction and the
liabilities directly related to these assets and transferred in the transaction. The disposal group includes goodwill
obtained from business combination under certain circumstances.
Non-current assets or disposal groups that meet all the following conditions are classified as the held-for-sale assets:
The non-current assets or disposal groups can be sold immediately under current conditions according to the practice



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of selling such assets or disposal groups in similar transactions; they are extremely likely to be sold, i.e. a resolution
has been made on a sales plan and a certain purchase commitment has been obtained, and the sales are expected to
be completed within one year. The overall investment to subsidiaries is classified as held-for-sale assets in individual
financial statements, and all assets and liabilities of subsidiaries are classified as the held-for-sale assets in
consolidated financial statements when the investment to subsidiaries meets the conditions for the held-for-sale
assets if the Company loses control over its subsidiaries due to reasons such as the sales of investment to subsidiaries,
whether the Company reserves some of its equity investments after the sales or not.
The difference between the book value and the net amount obtained by deducting the selling expenses from the fair
value is recognized as the asset impairment loss when the held-for-sale non-current assets or disposal groups are
measured initially or re-measured on the balance sheet date. The asset impairment loss recognized by the held-for-
sale disposal group deducts the book value of the goodwill in the disposal group, and then deducts the book value
of each non-current asset in the disposal group based on its proportion.
The previous write-down amount is recovered and reversed from the asset impairment losses recognized after being
classified as the held-for-sale assets, and the reversed amount is included in the current profits and losses if the net
amount obtained by deducting the selling expenses from the fair value of held-for-sale non-current assets or disposal
groups on the subsequent balance sheet date increases. The book value of goodwill deducted shall not be reversed.
Held-for-sale non-current assets and assets in the held-for-sale disposal group are not depreciated or amortized. The
interest on liabilities and other expenses in the held-for-sale disposal group are recognized continuously. For all or
part of the investments of held-for-sale associated enterprises or joint ventures, the held-for-sale part will not be
accounted for with equity method, and the retained part (not classified as the held-for-sale asset) will be accounted
for continuously with the equity method. The equity method will not be used any more when the Company has no
significant influence on associated enterprises and joint ventures due to sales.
For a non-current asset or disposal group which is classified as the held-for-sale asset but later no longer meets the
conditions for the held-for-sale asset, the Company will cease to classify it as the held-for-sale asset and measure it
based on the lower of the following two amounts:
① The amount of the book value of the asset or disposal group before it is classified as the held-for-sale asset
after adjustment for depreciation, amortization or impairment that should have been recognized under the
assumption that it is not classified as the held-for-sale asset;
② Recoverable amount.
(2) Presentation
The Company presents the held-for-sale non-current assets or the assets in the held-for-sale disposal group in the
balance sheet as the "held-for-sale assets", and presents the liabilities in the held-for-sale disposal group as the "held-
for-sale liabilities".




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The Company presents the profits and losses from continuing operations and discontinued operations separately in
the profit statement. For the held-for-sale non-current assets or disposal groups failing to meet the definition of
discontinued operation, their impairment losses and reversed amounts as well as profits or losses of disposal are
presented as profits or losses from continuing operations. Operating profits and losses such as impairment losses
and reversed amounts of discontinued operations and profits and losses of disposal are presented as profits and
losses from discontinued operations.
Disposal groups that are intended to be discontinued rather than sold and meet the conditions of relevant components
in the definition of discontinued operation are presented as discontinued operations from the date of discontinuance.
For discontinued operations presented in the current period, the information originally presented as profits or losses
from continuing operations in the current financial statements is presented again as profits or losses from
discontinued operations in comparable accounting period. If the discontinued operation no longer meets the
conditions for the classification of held-for-sale assets, the information originally presented as profits or losses from
discontinued operations in the current financial statements is presented again as profits or losses from continuing
operations in comparable accounting period.

19. Long-term equity investment


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 investment acquired from business combination: For the long-term equity investment acquired
from the business combination under common control, the investment cost refers to the share of 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.
Long-term equity investment acquired by other means: For the long-term equity investment acquired by cash
payment, the initial investment cost refers to the actually paid purchase price; for the long-term equity investment
acquired by issuing equity securities, the initial investment cost refers to the fair value of the issued equity securities.
(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 the long-term equity investment accounted for with the cost method, the distributed cash dividends or profits
declared by the investee are recognized as investment income and included in the current profits and losses, except




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for the declared but not released cash dividends or profits included in the price or consideration actually paid for
acquiring the investment.
For the long-term equity investment 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.
When the equity method is adopted, the investment income and other comprehensive income are recognized
respectively according to its share of net profit or loss and other comprehensive income realized by the investee,
and the book value of long-term equity investments is adjusted at the same time. The part of due share is calculated
according to the distributed profit or cash dividend declared by the investee, and the book value of the long-term
equity investment is reduced accordingly. In case of other changes in owners' equity except net profit or loss, other
comprehensive income and profit distribution of the investee, the book value of long-term equity investment is
adjusted and included in capital reserve (other capital reserves). The due share of net profit and loss of an investee
is determined based on the fair value of various identifiable assets in the investee when the investment is obtained
after net profit of the investee is adjusted according to accounting policies and accounting period 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 investment measured at fair value with its changes included in other comprehensive
income.
In case that 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 from original equity investment
recognized with the equity method is accounted for on the same basis as the direct disposal of related assets or
liabilities by the investee when the equity method is terminated. Other changes in owners' equity related to the
original equity investment are transferred to current profits and losses.
In case that the Company loses the right of control over the investee due to disposal of partial equity investment or
other reasons, the equity method is applied, and it is deemed that the residual equity is adjusted with equity method
from the time of acquisition if the residual equity after disposal can exert joint control over or significant influence


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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 Company loses the right of control over the investee but may exert joint control over or significant influence
on the investee due to the reduction in its shareholding proportion caused by capital increase of other investors, the
share of the Company in net assets of the investee increased due to capital increase and share expansion is recognized
based on the new shareholding proportion, and the difference with the original book value of the long-term equity
investment corresponding to the decrease of the shareholding proportion is included in the current profits and losses.
Then, it is deemed that the equity method is adopted for adjustment according to the new shareholding proportion
since the investment is acquired.
For the internal trading profits and losses incurred but not realized between the Company and its associated
enterprises and joint ventures, the part attributable to the Company is calculated as per the shareholding proportion,
and the investment profits and losses are recognized on the basis of offset. However, the internal transaction loss
not realized between the Company and its investees shall not be offset if it is not an impairment loss of the assets
transferred.
(3) Basis for determining joint control over 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 a group of participants, and then determine whether the activities related to the arrangement must be
decided after being unanimously agreed by the 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 concerted action of all participants or a group of participants. It does not
constitute joint control if an arrangement can be controlled collectively by two or more groups of participants. The
determination of joint control does not consider the protective rights enjoyed.
Significant influence refers to the power of the investor to participate in making decisions on the financial and
operating policies of the investee, but cannot control or jointly control with other parties over the preparation of
these policies. The possibility of exerting significant influence on the investee is determined by considering the
influence of the voting shares of the investee directly or indirectly held by the investor and 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.




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It is generally considered that the Company has significant influence on the investee when the Company directly
holds more than 20% (including 20%) 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 drawing methods for impairment provision
For investments to subsidiaries, associated enterprises and joint ventures, the method of drawing asset impairment
is described in 26 "Long-term asset impairment" in V "Significant Accounting Policies and Accounting Estimates"
of Section X - Financial Report.

20. Investment real estate

Measurement mode of investment real estate: cost method

Depreciation or amortization method
Investment real estates refer to the real estates held to earn rent or increase capital, or both. Investment real estates
of the Company include the land use rights which have already been rented, the land use rights held and to be
transferred after appreciation, and the buildings which have been rented.
The investment real estates of the Company are initially measured according to the cost upon acquisition, and
depreciated or amortized on schedule according to the relevant provisions of 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 26 "Long-term asset impairment" in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
The disposal income from the sale, transfer, discard or destroy of the investment real estates is included in the
current profits and losses after the book value and relevant taxes are deducted.

21. Fixed assets

(1) Recognition conditions

Fixed assets of the Company refer to the tangible assets held for the sake of producing commodities, rendering
labor services, renting or operating management, with a service life in excess of one accounting year.

The fixed assets can be recognized only if 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 based on the actual cost at the time of acquisition.

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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 measured reliably. The daily repair costs of fixed
assets that do not meet the conditions for subsequent expenditure of fixed assets capitalization are included in the
current profits and losses or the costs of relevant assets according to the beneficiaries when the costs incurred. The
book value is derecognized for the replaced part.

(2) Depreciation method




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                                                                                                       Annual
                             Depreciation
       Category                                   Depreciation Period        Residuals Rate      Depreciation Rate
                                Method
                                                                                                         (%)
 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                                      3-5 years                   3-5              32.33-19.00
                                method
                             Straight-line
 Others                                                4-10 years                  0-5               24.25-9.50
                                method
① The Company adopts straight-line depreciation method. Fixed assets are depreciated when they are ready for
their intended use, and ceased for depreciation when they are derecognized or classified as held-for-sale non-current
assets. Without considering the provision for impairment, the annual depreciation rates of various fixed assets are
determined according to their category, estimated service life and estimated residual value. The depreciation rate of
fixed assets with impairment provision drawn is calculated and determined after their accumulated amount of
impairment provision drawn is deducted.
② The impairment test method and drawing method for impairment provision of fixed assets are described in 26
"Long-term asset impairment" in V "Significant Accounting Policies and Accounting Estimates" of Section X -
Financial Report.
③ 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 is adjusted if the expected service life is different from the original estimate. The
expected net residual value is adjusted if it is different from the original estimate.
④ Disposal of fixed assets
A fixed asset is derecognized if it is disposed of or it is expected that no economic benefit will be obtained by using
or disposing it. The disposal income from the sale, transfer, discard or destroy of the fixed assets is included in the
current profits and losses after the book value and relevant taxes are deducted.




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(3) Recognition basis, valuation and depreciation methods for fixed assets under finance lease

The fixed assets leased by the Company are recognized as the fixed assets under finance lease when they meet one
or more of the following criteria:

① The ownership of the leased assets will be transferred to the Company at the expiration of the lease term.

② The Company has the option to purchase the leased assets, and the purchase price agreed is expected to be far
lower than the fair value of the leased assets when the option is exercised. Therefore, it can be reasonably determined
that the Company will exercise this option on the commencement date of lease.

③ The lease term accounts for the majority of the service life of the leased assets, even if the ownership of such
assets is not transferred.

④ The present value of the minimum lease payment of the Company on the commencement date of lease almost
equals to the fair value of the leased assets on the same day.

⑤ The leased assets are of a special nature, and they can only be used by the Company if no major transformation
is made.

For the fixed assets under finance lease, the entry value refers to the lower the fair value of the leased assets from
the commencement date of lease and the present value of minimum lease payment. The minimum lease payment is
taken as the entry value of long-term payables and its balance as the unrecognized financing charge. Initial direct
expenses such as handling fees, attorney fees, travel expenses and stamp duties attributable to the lease project
incurred during lease negotiation and signing of the lease contract are included in the value of the leased assets.
Unrecognized financing charges are amortized with the effective interest method in each period of the lease term.

For the fixed assets under finance lease, the depreciation is drawn in the same way as that of the self-owned fixed
assets. The depreciation is drawn within the service life of leased assets if it can be reasonably confirmed that the
ownership of the assets can be obtained at the expiration of the lease term; otherwise, the depreciation is drawn
within the lease term or the service life of leased assets, whichever is shorter.

22. Project under construction

The cost of the Company's project under construction is recognized according to the actual construction expenses,
including various necessary construction expenses incurred during construction, borrowing costs which need to be
capitalized before the projects reach the expected usable state and other relevant expenses.
The project under construction is transferred to fixed assets when they are ready for their intended use.
For the drawing method of asset impairment of the project under construction, please see 26 "Long-term asset
impairment" in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.

23. Borrowing costs


(1) Recognition principles for capitalization of borrowing costs



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The borrowing costs incurred by the Company are capitalized and included in the cost of relevant assets if they can
be directly attributed to the acquisition and construction or production of assets eligible for capitalization. Other
borrowing costs are recognized as expenses according to the amount incurred and included in the current profit and
loss. The borrowing costs are capitalized if they meet all of the following conditions:
① Expenditures on assets have been incurred, and they include the expenditures in the form of payments in cash,
transfer of non-cash assets, or assumption of debts with interest for the acquisition, construction, or production of
the assets eligible for capitalization;
② Borrowing costs have already been incurred;
③ Acquisition, construction, or production activities necessary to make the asset ready for its intended use or sale
are in progress.
(2) Capitalization period of borrowing costs
The capitalization of borrowing costs will cease when the assets eligible for capitalization acquired, constructed, or
produced by the Company are ready for their intended use or sale. Borrowing costs incurred after the assets eligible
for capitalization are ready for their intended use or sale are recognized as expenses according to the amount incurred
and included in current profits and losses.
The capitalization of the borrowing costs is suspended when the acquisition and construction or production of the
assets eligible for capitalization are interrupted abnormally for more than 3 months. The capitalization of the
borrowing costs continues when the acquisition and construction or production are interrupted normally.
(3) Capitalization rate of borrowing costs and calculation method of capitalized amount
The balance of the interest from special borrowings actually occurred in current period deducting the interest income
acquired from unused borrowings which are deposited in banks, or deducting investment income from temporary
investment of the borrowings is capitalized. The capitalization amount of general borrowings is determined by
multiplying the weighted average of the part of accumulated asset expenditures exceeding special borrowings by
the capitalization rate of general borrowings occupied. The capitalization rate is determined based on the weighted
average interest rate of the general borrowings.
The balance of exchange for special borrowings in foreign currency is capitalized in full in the capitalization period.
The balance of exchange for general borrowings in foreign currency is included in the current profits and losses.

24. Right-of-use assets


(1) Recognition conditions of right-of-use assets
The right-of-use asset refers to the right of the Company as the lessee to use the leased asset during the lease term.
The right-to-use asset is initially measured at cost from the commencement of the lease term. This cost includes the
amount of lease liabilities measured initially; the rent paid on or before the commencement of the lease term, which
needs to deduct the amount of lease incentive enjoyed (if any); initial direct expenses incurred by the Company as


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the lessee; cost expected to be incurred by the Company as the lessee for dismantling and removing the leased assets,
restoring the site where the leased assets are located or restoring the leased assets to the state agreed in the lease
terms. 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 adopts the straight-line method for depreciation. The depreciation is drawn within the remaining
service life of the leased assets if the Company, as the lessee, can reasonably confirm that can obtain the ownership
of the leased assets at the expiration of the lease term. The depreciation is drawn within the lease term or the
remaining life of such assets, whichever is shorter, if it cannot be reasonably determined that the ownership of the
leased assets can be obtained at the expiration of the lease term.
(3) The impairment test method and drawing method for impairment provision of right-of-use assets are described
in 26 "Long-term asset impairment" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.

25. Intangible assets

(1) Valuation method, service life and impairment test


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 technology          5-10 years             Straight-line method

The Company reviews the service life and amortization method of intangible assets with limited service life at the
end of each year; adjusts the original estimate if it is different from the actual value, and handles based on changes
in accounting estimate.
The book value of an intangible asset is transferred into the current profits and losses in full if it is expected that the
asset cannot bring economic benefits to the enterprise in the future on the balance sheet date.
For the drawing method of asset impairment of the intangible assets, please see 26 "Long-term asset impairment"
in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.

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(2) Accounting policies for expenditures on internal research and development


The Company divides the expenditures of internal research and development projects into expenditures in research
stage and expenditures in development stage.
The expenditures in research stage are included in current profits and losses when incurred.
The expenditures in the development stage can be capitalized only if they meet all of the following conditions: It is
technically feasible to complete the intangible asset so that it will be available for use or sale; there is an intention
to complete the intangible asset and use or sell it; the model of economic benefits generated by operating the
intangible assets, including the proof that there is a market for the products manufactured based on the intangible
assets or the assets themselves, and the serviceability of the assets which are to be used internally; there are sufficient
technical, financial and other resources to complete the development of intangible asset, and it is capable to use or
sell the asset; the expenditure attributable to the intangible asset in the development stage can be measured reliably.
The development expenditures failing to meet above conditions are included in current profits and losses when
occurred.
The research and development project of the Company will enter the development stage after meeting the above
conditions and being approved through technical feasibility and economic feasibility study.

The capitalized expenditures in 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 the intended use.

26. Long-term asset impairment


The asset impairment of long-term equity investment to subsidiaries and associated enterprises, investment real
estates subsequently measured by cost model, fixed assets, project 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 will determine whether there is any sign of possible impairment of assets on the balance sheet date.
If any, the Company will estimate the recoverable amount and conduct an impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business combination, 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 on a single asset basis. The Company determines the recoverable amount of the asset group to
which a single asset belongs if it is difficult to estimate the recoverable amount of the asset. An asset group is
recognized based on the fact that whether 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 the current profits and losses, and
the corresponding provision for impairment of assets is made at the same time.
For the impairment test of goodwill, the book value of goodwill resulting from business combination 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. The relevant asset group or portfolio of asset groups
can benefit from the synergy effect of the business combination and is 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 to the asset group or portfolio of asset groups not including
goodwill, and the recoverable amount shall be calculated to recognize the corresponding impairment loss. Then, an
impairment test is carried out to the asset group or portfolio of asset groups including goodwill to compare its book
value and recoverable amount, and recognize the impairment loss of goodwill if the recoverable amount is lower
than the book value.
Once confirmed, the impairment loss of assets will not be reversed in subsequent accounting periods.

27. Long-term deferred expenses


Long-term deferred expenses incurred by the Company are valued at actual cost and amortized evenly over 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.

28. Contract liabilities


The Company presents the contractual 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 net amount of
contractual assets and contract liabilities under the same contract after offsetting them.
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.

29. Employee compensation

(1) Accounting method of short-term compensation


The Company recognizes the actual employee salaries and bonuses, the medical insurance premiums, work-related
injury insurance premiums, maternity insurance premiums and other social insurance premiums as well as housing


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provident fund paid for the employees according to the specified benchmark and proportion in the accounting period
when the employees provide services as liabilities, and includes them in the current profits and losses or relevant
asset costs. Such liabilities will be measured at the discounted amount if it is expected that they cannot be fully paid
within 12 months at the end of the annual reporting period during which the employees provide relevant services,
and the financial impact is significant.

(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 an employee provides services, the Company recognizes the amount payable to a
defined contribution plan as a liability, and includes it in the current profit or loss or relevant asset cost.
Defined benefit plan
The defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annual
balance sheet date, and the benefit cost is determined with the expected cumulative benefit unit method. The
employee compensation cost arising from the defined benefit plan of the Company includes the following:
① Service costs, including 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 of net liabilities or net assets of the defined benefit plan, including interest income of plan assets,
interest expenses of defined benefit plan obligations and interest impacted by upper asset limit.
③ Changes caused by re-measurement of net liabilities or net assets of the defined benefit plan.
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.




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(3) Accounting method of dismissal welfare


When the Company provides dismissal welfare to employees, it recognizes the liabilities of employee compensation
arising from dismissal welfare at the earlier of the following two dates and includes them in current profits and
losses: The Company cannot unilaterally withdraw the dismissal welfare provided due to the termination of
employment or adoption of staff reduction suggestion; the Company recognizes the costs or expenses related to the
restructuring involving the payment of dismissal welfare.
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 employees are treated according to provisions of
above defined contribution plan if they meet the conditions of the 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
re-measurement of net liabilities or net assets of the defined benefit plan" in relevant employee compensation cost
are included in current profits and losses or relevant asset cost.

30. Lease liabilities


(1) Identification of lease
When the contract takes effect, 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. The Company determines that the
contract is a lease or includes a lease 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.
(2) The Company acting as the lessee
The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement of the lease
term, except for simplified short-term leases and low-value asset leases.
For the accounting policies of right-of-use assets, see 24 in V "Significant Accounting Policies and Accounting
Estimates" of Section X - Financial Report.
Lease liabilities are initially measured at the present value of the lease payment that has not been made on the
commencement date of the lease term calculated by the interest rate implicit in lease. The incremental borrowing
rate is used as the discount rate if the interest rate implicit in lease cannot be determined. Lease payments include

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fixed payment and substantial fixed payment, which need to deduct the lease incentive (if any); 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; amount to be paid for exercise of the option to terminate the lease,
provided that it is reflected that the lessee will exercise the option to terminate the lease in the lease term; the amount
expected to be payable based on the guaranteed residual value provided by the lessee. Subsequently, the interest
expenses of the lease liabilities in each period of the lease term are calculated at a 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 leases are leases last for not more than 12 months from the commencement of the lease term, except the
lease including a purchase option.
The Company includes the payment of short-term lease into relevant asset costs or current profits and losses with
the straight-line method in each period within the lease term.
For short-term lease, the Company selects the above simplified treatment method for the items meeting the short-
term lease conditions in the following asset types according to the category of leased assets.
Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40,000.
The Company includes the payment of low-value asset lease into relevant asset costs or current profits and losses
with the straight-line method in each period within the lease term.
For low-value asset leases, the Company selects the above simplified treatment method according to the specific
conditions of each lease.
Lease change
If the lease changes and meets all of the following conditions, the Company will account for the lease change by
taking it as a separate lease: ① The lease change expands the lease scope by adding the right to use one or more
leased assets; ② The increased consideration equals to the separate price of the expanded part of the lease scope
the after adjustment according to the contract.
If the lease change reduces the lease scope or the lease term, the Company reduces the book value of the right-to-
use asset accordingly and includes the gains or losses from the partial or complete termination of the lease into the
current profits and losses.
The Company adjusts the book value of the right-to-use asset accordingly if other lease changes lead to the
remeasurement of lease liabilities.
(3) The Company acting as the lessor
When acting as the lessor, the Company recognizes the lease that substantially transfers all risks and rewards related
to the ownership of the assets as a finance lease, and other leases other than finance leases as operating leases.


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Finance lease
The Company takes the net investment in a finance lease as the entry value of the lease receivables from the
commencement of the lease term, 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 the interest income in each
period within the 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 Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and the Accounting
Standards for Business Enterprises No. 23 - Transfer of Financial Assets.
Operating lease
The Company recognizes the rents from operating lease as the current profits and losses with the straight-line
method in each period within the lease term. The initial direct expenses related to the operating lease incurred shall
be capitalized, amortized over the lease term on the same basis as the recognition of rental income, and included in
the current profits and losses by stages. The variable lease payments obtained that are related to the operating lease
but not included in the lease receipts are included in the current profits and losses when they actually occur.
Lease change
The Company treats the changed lease under the following circumstances respectively if the change of finance lease
is not taken as a separate lease for accounting: ① The Company will take the lease as a new one for accounting
from the effective date of 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 if the change takes effect on the commencement date of the lease and
the lease is classified as an operating lease; ② The Company will carry out accounting according to the provisions
on the modification or renegotiation of contract in the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments if the change takes effect on the commencement date of
the lease and the lease is classified as a finance lease.

31. Estimated liabilities


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 the obligation will probably cause outflow of economic benefits from the Company;
(3) The amount of the obligation can be measured reliably.




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Estimated liabilities are initially measured at the best estimate required to be paid for the performance of relevant
current obligations, and comprehensively consider factors as risks, uncertainties and time value of money related to
contingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value of
money has a significant impact. The Company reviews the book value of estimated liabilities and adjusts the book
value on the balance sheet date to reflect the current best estimate.
The amount of compensation is recognized as assets separately only if it is basically certain that the amount can be
obtained in case that all or part of expenditures necessary for clearing off the recognized estimated liabilities are
expected to be compensated by a third party or other parties. The recognized compensation amount shall not exceed
the book value of the recognized liabilities.

32. 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 in an active market according
to the quotation of the active market. For equity instruments such as granted options not in active market, the fair
value is determined by the option pricing model. The selected option pricing model considers the following factors:
A. Exercise price of options; B. Validity period of options; C. Current price of underlying shares; D. Expected
fluctuation ratio of stock price; E. Expected dividends of shares; F. Risk-free interest rate within the validity period
of options.
(3) Basis for determining the best estimate of exercisable equity instruments
The Company makes the best estimate based on the latest follow-up information such as changes in the number of
vesting employees and corrects the expected number of exercisable equity instruments on each balance sheet date
within the waiting period. On the vesting date, the final estimated number of exercisable equity instruments shall
be consistent with the number of actual exercisable equity instruments.
(4) Accounting related to implementation, modification and termination of share-based payment plan
The equity-settled share-based payment is measured at the fair values of the equity instruments granted to employees.
The share-based payment is included in relevant costs or expenses at the fair value of equity instrument on the
granting date if the equity instrument can be vested immediately upon being granted, and the capital reserve is
increased accordingly. If the equity instrument cannot be exercised until services within the vesting period are
completed or until the specified performance conditions are met, the services obtained in the current period can be
included in relevant costs or expenses and capital reserve at the fair value on the granting date of the equity
instrument based on the best estimate on the number of exercisable equity instruments on each balance sheet date


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within the vesting period. No adjustment shall be made to relevant costs or expenses and the total amount of owner's
equity that have been recognized after the vesting date.
The cash-settled share-based payment is measured according to the fair value of liabilities calculated and recognized
based on the shares or other equity instruments assumed by the Company. The payment is included in relevant costs
or expenses at the fair value of the liabilities assumed by the Company on the granting date if the equity instrument
can be vested immediately upon being granted, and the liabilities are increased accordingly. Where the cash-settled
share-based payment cannot be exercised until the services within the vesting period are completed or until the
specified performance conditions are met, the services obtained in the current period are included in relevant costs
or expenses and liabilities at the fair value of liabilities assumed by the Company based on the best estimate on
exercisable right on each balance sheet date within the vesting period. Fair value of the liabilities is re-measured
and the changes in fair value are included in current profits and losses on each balance sheet date and each settlement
date prior to the settlement of the relevant liabilities.
If the fair value of granted equity instruments is increased due to the modification made by the Company to the
share-based payment plan, the increase in services obtained is recognized based on the increase in the fair value of
equity instruments. If the number of granted equity instruments is increased due to the modification, the fair value
of the increased equity instruments is recognized accordingly as the increase in obtained services. The increase in
the fair value of equity instruments refers to the difference between the fair value of equity instruments before and
after the modification on the modification date. The obtained services are accounted for continuously as if the
change has never occurred if the modification reduces total fair value of share-based payment or other ways
unfavorable to employees are adopted to modify the terms and conditions of the share-based payment plan, unless
the Company has canceled part or all of the granted equity instruments.
If the granted equity instruments are canceled in the vesting period (except those canceled due to the failure to meet
exercisable non-market conditions), the Company will accelerate the exercise of the granted equity instruments,
include the amount to be recognized in the remaining vesting period in the current profits and losses immediately,
and recognize the capital reserve at the same time. If the employees or other parties can choose to meet the non-
exercisable conditions but fail to do so in the vesting period, the Company will consider that the granted equity
instruments are canceled.

33. Income


Accounting policies adopted for income recognition and measurement
(1) General principles
The Company recognizes the income after performing its obligations under the contract, i.e. the customers obtain
the right to control relevant goods or services.
If there are two or more obligations under the Contract, the Company will amortize the transaction price to each


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single obligation according to the relative proportion of the individual selling price of the goods or services promised
by each single obligation on the contract commencement date, and measure the income based on the transaction
price amortized to each single obligation.
When one of the following conditions is met, it is deemed that the Company performs the obligations within a
certain period of time; otherwise, it is deemed that the Company performs obligations at a certain time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract by the
Company at the time of contract performance.
② The customer can control the goods under construction during the performance of the Company.
③ The goods generated during the performance of the Company are irreplaceable, and the Company reserves
right to receive payment for the performance accumulated so far throughout the contract period.
For the obligations performed within a certain period of time, the income is recognized by the Company based on
the performance progress within that period of time. When the performance progress cannot be determined in a
reasonable way and it is expected that the costs incurred by the Company can be compensated, the income will be
recognized based on the cost incurred until the performance progress can be determined reasonably.
For obligations performed at a certain time point, the income is recognized by the Company at the time point when
the customer obtains right to control relevant goods or services. The Company will consider the following
indications in determining whether the customer has obtained the right to control the goods or services:
① The Company enjoys the current collection right in respect of the goods or services, that is, the customer has
the current payment obligation in respect of the goods.
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the
legal ownership of the goods.
③ The Company has transferred the physical goods to the customer, that is, the customer has occupied the
physical goods.
④ The Company has transferred the main risks and rewards on the ownership of the goods to the customer, that
is, the customer has obtained the main risks and rewards on the ownership of the goods.
⑤ The customer has accepted the goods or services.
⑥ Other signs indicating that the customer has obtained the right of control over 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 other factors other than the passage of time) is taken as a contractual asset, and the
contractual assets are impaired based on the expected credit losses (please refer to 16 in V "Significant Accounting
Policies and Accounting Estimates" of Section X - Financial Report.). The right owned by the Company to collect
consideration from customer unconditionally (which only depends on the passage of time) is presented as
receivables. The obligations of the Company to transfer goods or services to customers for which consideration
has been received or receivable are regarded as contractual liabilities.


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Contractual assets and contract liabilities under the same contract are presented in net amount, which is presented
in the item "Contractual assets" or "Other non-current assets" according to its liquidity if it is the debit balance;
presented in the item "Contract liabilities" or "Other non-current liabilities" according to its liquidity if it is the
credit balance.
(2) Specific method
The specific method for recognizing the sales income of the Company's complete vehicles and their accessories is
as follows: When the complete vehicles and their accessories and other goods are transported to the customer and
the customer has accepted the goods, the customer obtains the right to control over them, and the Company
recognizes the income.
Differences in accounting policies for income recognition due to different business models for similar businesses:
none

34. Government subsidies


Government subsidies are recognized when the attached conditions are met and the government subsidies can be
received.
The government subsidies for monetary assets are measured at the amount received or receivable. The government
subsidies for non-monetary assets are measured at fair value; or at nominal amount of CNY 1 if the fair value cannot
be determined reliably.
The asset-related government subsidies refer to those obtained by the Company and used for the acquisition or
construction of long-term assets or forming long-term assets in other ways. Other government subsidies are income-
related government subsidies.
If the government documents do not clearly specify the subsidy object and long-term assets can be resulted in, the
government subsidies corresponding to the asset value are regarded as asset-related government subsidies and others
as income-related government subsidies; if it is difficult to distinguish, the government subsidies are regarded as
income-related government subsidies.
Asset-related government subsidies are offset against the book value of related assets, or recognized as deferred
incomes, and are included in profits and losses within the service life of related assets with a reasonable and
systematic method. The income-related government subsidies used to compensate for the related costs or losses
incurred are included in the current profits and losses or offset against relevant costs; those used to compensate for
future related costs or losses are included in deferred income, and included in the current profits and losses or offset
against relevant costs in the recognition period of related costs or losses. Government subsidies measured at the
nominal amount are directly included in current profits and losses. The Company adopts the same method for the
same or similar government subsidies.




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The government subsidies related to daily activities are included in other incomes or offset against relevant costs
based on the nature of business transactions. The government subsidies irrelevant to daily activities are included in
non-operating revenue and expenditure.
If it is necessary to refund the government subsidies which 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.

35. Deferred income tax assets/deferred tax liabilities


Income tax includes current income tax and deferred income tax. Except that the deferred income taxes related to
the adjustment of goodwill resulting from business combination or the transactions or matters directly included in
the owner's equity are included in the owner's equity, other deferred income taxes are regarded as income tax
expenses and included in the current profits and losses.
The Company recognizes deferred income tax with the balance sheet liability method based on the temporary
difference between the book value of assets and liabilities on the balance sheet date and the tax base.
Relevant deferred income tax liabilities are recognized for each taxable temporary difference, unless the difference
is incurred in the following transactions:
(1) Initial recognition of goodwill or initial recognition of assets or liabilities incurred in a transaction which is
neither a business combination nor affects accounting profit or taxable income;
(2) For the taxable temporary difference associated with investments in subsidiaries, associated enterprises and
joint ventures, its reversal time can be controlled and it may not be reversed in the foreseeable future.
For the deductible temporary difference, and deductible losses and tax deduction that can be carried forward to the
next year, the Company recognizes the deferred tax assets arising from it by taking the future taxable income which
can be used to deduct the deductible temporary differences, deductible losses and tax deduction as the limit, unless
the deductible temporary difference is incurred in the following transactions:
(1) The transaction is neither a business combination nor affects accounting profit or taxable income;
(2) Corresponding deferred 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 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.




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The Company reviews the book value of deferred tax assets on the balance sheet date. The book value of the deferred
tax assets is written down if it is likely that sufficient taxable income will not be available in the future to deduct
the benefits of deferred tax assets. The write-down amount is reversed when it is likely that sufficient taxable income
will be available.

36. Lease

(1) Accounting method of operating leases


The Company recognizes the rents from operating lease as the current profits and losses with the straight-line
method in each period within the lease term. The initial direct expenses related to the operating lease incurred shall
be capitalized, amortized over the lease term on the same basis as the recognition of rental income, and included in
the current profits and losses by stages. The variable lease payments obtained that are related to the operating lease
but not included in the lease receipts are included in the current profits and losses when they actually occur.

(2) Accounting method of finance leases


The Company takes the net investment in a finance lease as the entry value of the lease receivables from the
commencement of the lease term, 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 the interest income in each
period within the 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 Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and the Accounting
Standards for Business Enterprises No. 23 - Transfer of Financial Assets.

37. Other significant accounting policies and accounting estimates


(1) Fair value measurement
Fair value refers to the price to be received for the sale of an asset or to be paid for the transfer of a liability by
market participants in the orderly transaction on the measurement date.
The Company measures relevant assets or liabilities at fair value by assuming that the orderly transaction of selling
assets or transferring liabilities is carried out in the main market of relevant assets or liabilities; if there is no main
market, the Company assumes that the transaction is carried out in the most favorable market for relevant assets or
liabilities. The main market (or the most favorable market) refers to the trading market which the Company can


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enter on the measurement date. The Company adopts the assumptions used by market participants to maximize their
economic benefits when pricing the asset or liability.
The Company recognizes the fair value of financial assets or financial liabilities with active market based on the
quotation in the market. The Company recognizes the fair value of the financial instrument without an active market
with the valuation technique.
When non-financial assets are measured at fair value, the ability of market participants to use the asset for the
optimum purpose to generate economic benefits, or to sell the asset to other market participants who can use it for
the optimum purpose to generate economic benefits shall be considered.
The Company adopts the valuation technique which is currently applicable and contains sufficient available data
and other information, and gives priority to the use of relevant observable input values, or uses non-observable input
values only if it is impossible or infeasible to obtain the observable input values.
For assets and liabilities measured or disclosed at fair value in the financial statements, the level of fair value to
which they belong is determined according to the lowest level input value which is significant for the overall fair
value measurement: The first level input value refers to the unadjusted quotation of the same assets or liabilities in
the active market that can be obtained on the measurement date; the second level input value refers to the direct or
indirect observable input value of related assets or liabilities other than the first level input value; the third level
input value refers to the non-observable input value of related assets or liabilities.
The Company reassesses the assets and liabilities measured continuously at fair value recognized in the financial
statements on each balance sheet date to determine whether the fair value measurement levels are converted with
each other.
(2) Construction materials
Construction materials of the Company refer to various materials prepared for the project under construction,
including project materials, uninstalled equipment, tools and instruments prepared for production, etc.
The purchased construction materials are measured at cost, the received construction materials are transferred to the
project under construction, and the remaining construction materials after the completion of the project are
transferred to inventory.
For the drawing method of asset impairment of the project materials, please see 26 "Long-term asset impairment"
in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
The ending balance of construction materials is presented in the item "Project under construction" of the balance
sheet.
(3) Work safety 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 CQ [2012] No.
16 document. The specific standards are as follows:


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For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million, 2% of
work safety cost will be withdrawn; for the part of operating income between CNY 10 million and CNY 100 million,
1% shall be withdrawn; for the part of the operating income between CNY 100 million and CNY 1 billion, 0.2%
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 business, and special freight business such as pipeline transportation
and dangerous goods transportation.
Work safety costs are included in the cost of relevant products or current profits and losses at the time of withdrawal,
and are also included in the item "special reserve".
When the withdrawn work safety costs are used within the specified scope, those belonging to expenditures are
directly offset against the special reserves; those resulting in fixed assets are recognized as fixed assets when the
safety project is completed and ready for its intended use after expenditures incurred are collected under the item
"Project under construction". At the same time, the Company will offset the special reserve according to the cost of
fixed assets and recognize the accumulated depreciation of the same amount. The fixed assets will no longer be
depreciated in subsequent periods.
(4) Significant accounting judgments and estimates
The Company evaluates the significant accounting estimates and key assumptions adopted continuously based on
historical experience and other factors, including reasonable expectations for future events. Significant accounting
estimates and key assumptions which 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 by the Company include analysis of
business models and contractual cash flow characteristics.
The Company determines the business model for financial assets management at the level of financial asset portfolio
while considering factors such as the way to evaluate and report the performance of financial assets to key
management personnel, the risks affecting the performance of financial assets and their management mode, and the
way in which relevant business management personnel receive remuneration.
When evaluating the consistence between the contractual cash flow of financial assets and the basic lending
arrangements, the Company needs to determine whether the principal may change the time distribution or amount
in the duration due to prepayment and other reasons; whether the interest only includes the time value of money,
credit risk, other underlying borrowing risks, and consideration for costs and profits. For example, whether the




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amount of prepayment only reflects 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 based on default risk exposure of accounts
receivable and the expected credit loss rate, and determines the expected credit loss rate based on the probability
and the loss rate of default. The Company determines the expected credit loss rate based on the data such as internal
historical credit loss experience, and adjusts the historical data in combination with the current situation and
forward-looking information. The Company uses indicators such as the risk of economic downturn, changes in
external market environment, technical environment and customer situation, etc. when considering forward-looking
information. The Company monitors and reviews the assumptions related to the calculation of expected credit losses
regularly.
Impairment of goodwill
The Company assesses the impairment of goodwill at least once every year. This requires estimating the use value
of the asset group allocated with goodwill. When estimating the use value, the Company needs to estimate the future
cash flow from the asset group and select an appropriate discount rate to calculate the present value of the future
cash flow.
Development expenditures
The management must assume the expected future cash generation of the asset, the discount rate to be applied, and
the expected benefit period when determining the amount of capitalization.
Deferred tax assets
Deferred tax assets are recognized for all unutilized tax losses to the extent that it is probable that there will be
sufficient taxable profits available against which the losses can be utilized. Therefore, the management needs to use
a lot of judgment to estimate the time and amount of future taxable profits, and to determine the amount of deferred
tax assets to be recognized in combination with tax planning strategies.
Estimated liabilities
Estimated liabilities are initially measured at the best estimate required to be paid for the performance of relevant
current obligations, and comprehensively consider factors as risks, uncertainties and time value of money related to
contingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value of
money has a significant impact. The Company reviews the book value of estimated liabilities and adjusts the book
value on the balance sheet date to reflect the current best estimate.
The amount of compensation is recognized as assets separately only if it is basically certain that the amount can be
obtained in case that all or part of expenditures necessary for clearing off the recognized estimated liabilities are
expected to be compensated by a third party or other parties. The recognized compensation amount shall not exceed
the book value of the recognized liabilities.


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38. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies

□ Applicable         Not applicable

(2) Changes in significant accounting estimates

□ Applicable         Not applicable

VI. Taxes

1.   Main taxes and tax rates


            Tax Category                              Tax Basis                              Tax Rate
 Value-added tax                                   Taxable income                      13%、9%、6%、5%
 Urban maintenance and
                                                Turnover tax payable                         7%、5%
 construction tax
 Corporate income tax                              Taxable income                               25%
 Educational surcharges                         Turnover tax payable                            3%
 Local educational surcharges                   Turnover tax payable                            2%
 Land use tax                                       Land use area                     CNY 9/㎡, CNY 14/㎡
                                           Residual value of property and
 Property tax                                                                               1.2%, 12%
                                                    rental income

Disclosure shall be made if there are different enterprise income tax rates for different taxpayers

                    Name of Taxpayer                                           Income Tax Rate
 FAW JIEFANG GROUP CO., LTD.                                                          25%
 FAW JIEFANG AUTOMOTIVE CO., LTD.                                                     15%
 Wuxi Dahao Power Co., Ltd.                                                           25%
 FAW Jiefang Automotive Sales 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.                                                    25%
 FAW Jiefang New Energy Automotive Sales Co., Ltd.                                    25%

2.   Tax preference


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 September 10, 2020, with a certificate number of GR202022000336) jointly issued by the Science and




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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 third batch of high-tech enterprises (with a certificate number of GR202121200892) recognized in 2021 and
issued by Dalian on December 15, 2021.

VII.       Notes to Items in Consolidated Financial Statements

1.     Monetary capital

                                                                                                        Unit: CNY
                    Item                           Ending Balance                       Opening Balance
 Bank deposits                                           28,493,437,173.79                     30,709,255,009.05
 Other monetary capitals                                     52,309,930.91                          52,007,712.35
 Total                                                   28,545,747,104.70                     30,761,262,721.40
     Including: total amount deposited
                                                             13,555,345.21                          13,585,238.95
 abroad
             Total amount with limited
 use due to mortgage, pledge or                              52,309,930.91                          56,005,226.87
 freezing
Other notes: none




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    2.   Notes receivable

    (1) Classification of notes receivable

                                                                                                                                                                  Unit: CNY
                              Item                                                   Ending Balance                                       Opening Balance
Commercial acceptance notes                                                                             6,795,406.57                                          12,936,978.11
Total                                                                                                   6,795,406.57                                          12,936,978.11
                                                                                                                                                                  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
                                                            on                                                                                  on
                    Amount        Scale      Amount                                               Amount            Scale       Amount
                                                          Proport                                                                             Proport
                                                            ion                                                                                 ion
Including:
Notes
receivable
with
provision for      6,832,988.00      100.00%        37,581.43     0.55%       6,795,406.57      13,008,525.00      100.00%        71,546.89     0.55%         12,936,978.11
bad debts
made by
portfolio
Including:
Commercial
acceptance         6,832,988.00      100.00%        37,581.43     0.55%       6,795,406.57      13,008,525.00      100.00%        71,546.89     0.55%         12,936,978.11
bill
Total              6,832,988.00      100.00%        37,581.43     0.55%       6,795,406.57      13,008,525.00      100.00%        71,546.89     0.55%         12,936,978.11
    Information about the provision for bad debts shall be disclosed in the same way as that of other receivables if the provision for bad debts of notes receivable is
    withdrawn based on the general model of expected credit losses:
    Applicable            □ Not Applicable




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Portfolio provision item: commercial acceptance bill                                                                                 Unit: CNY

                                               2022.6.30                                                    2021.12.31
       Aging                              Provision for Bad Expected Credit Loss                         Provision for Bad Expected Credit Loss Rate
                        Notes receivable                                            Notes receivable
                                                Debts            Rate (%)                                      Debts                 (%)
Within 1 year                6,832,988.00        37,581.43                   0.55          13,008,525.00          71,546.89                      0.55




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(2) Provision for bad debts provided, recovered or reversed in the current period

Provision for bad debts in the current period:
                                                                                                    Unit: CNY

                                             Amount Changed in the Current Period
                      Opening
    Category                                        Recovery or     Cancel after              Ending Balance
                      Balance        Provision                                      Others
                                                     Reversal       verification

 Commercial
                      71,546.89        -33,965.46                                                   37,581.43
 acceptance bill

 Total                71,546.89        -33,965.46                                                   37,581.43

Important provision for bad debts recovered or reversed in the current period:

□ Applicable       Not applicable




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     3.      Accounts receivable

     (1) Disclosure of accounts receivable by category

                                                                                                                                                           Unit: CNY
                                              Ending Balance                                                                Opening Balance
                       Book Balance             Provision for Bad Debts                              Book Balance             Provision for Bad Debts
 Category
                                                               Provision      Book Value                                                      Provision      Book Value
                    Amount            Scale      Amount                                            Amount           Scale      Amount
                                                               Proportion                                                                     Proportion
Accounts
receivable
with
provision          85,146,390.69      3.87%    85,146,390.69    100.00%                          97,146,390.69      6.79%    97,146,390.69     100.00%
for bad debt
made
individually
Including:
Accounts
receivable
with
provision       2,116,937,778.02   96.13%      83,352,091.79       3.94%    2,033,585,686.23   1,332,966,224.45    93.21%    53,272,272.75       4.00% 1,279,693,951.70
for bad
debts made
by portfolio
Including:
Aging
                2,116,937,778.02   96.13%      83,352,091.79       3.94%    2,033,585,686.23   1,332,966,224.45    93.21%    53,272,272.75       4.00% 1,279,693,951.70
portfolio
Total           2,202,084,168.71 100.00%      168,498,482.48       7.65%    2,033,585,686.23   1,430,112,615.14   100.00% 150,418,663.44        10.52% 1,279,693,951.70




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Provision for bad debts made individually:
                                                                                               Unit: CNY
                                                         Ending Balance
        Name                                  Provision for Bad      Provision           Reasons for
                          Book Balance
                                                    Debts            Proportion           Provision
 Liangshan Huatai                                                                    Highly unlikely to
                                349,190.00           349,190.00            100.00%
 Trading Co., Ltd.                                                                   be recovered
 Yancheng
                                                                                     Highly unlikely to
 Zhongwei Bus Co.,                13,599.99           13,599.99            100.00%
                                                                                     be recovered
 Ltd.
 FAW Jingye Engine                                                                   Highly unlikely to
                               1,820,957.23        1,820,957.23            100.00%
 Co., Ltd.                                                                           be recovered
 Shenyang Jinbei                                                                     It has been
 Vehicle                                                                             prosecuted, but
                                889,279.05           889,279.05            100.00%
 Manufacturing Co.,                                                                  highly unlikely to
 Ltd.                                                                                be recovered
                                                                                     It has been
 Dalian Baofeng
                                                                                     prosecuted, but
 Automobile Sales               496,200.00           496,200.00            100.00%
                                                                                     highly unlikely to
 Co., Ltd.
                                                                                     be recovered
 Jilin Zhuzhan
                                                                                     Highly unlikely to
 Automobile Trading             883,566.00           883,566.00            100.00%
                                                                                     be recovered
 Co., Ltd.
 Dalian Qingfeng                                                                     Highly unlikely to
                               8,043,264.87        8,043,264.87            100.00%
 Bus Co., Ltd.                                                                       be recovered
 Jiangsu Xinrui New                                                                  It has been
 Energy Vehicle                                                                      prosecuted, but
                             37,612,001.70        37,612,001.70            100.00%
 Technology Co.,                                                                     highly unlikely to
 Ltd.                                                                                be recovered
                                                                                     It has been
 Changchun Xiongtu
                                                                                     prosecuted, but
 New Energy                    6,230,500.00        6,230,500.00            100.00%
                                                                                     highly unlikely to
 Vehicle Co., Ltd.
                                                                                     be recovered
 Beijing Hotan
 Automobile                                                                          Highly unlikely to
                               7,436,520.00        7,436,520.00            100.00%
 Modification Co.,                                                                   be recovered
 Ltd.
 Zhonghe Shunyang
 Supply Chain                                                                        Highly unlikely to
                               5,643,600.00        5,643,600.00            100.00%
 Management Co.,                                                                     be recovered
 Ltd.
 Transportation
 Group (Qingdao)
 Sunshine                                                                            Highly unlikely to
                               3,020,835.47        3,020,835.47            100.00%
 Automobile Sales                                                                    be recovered
 and Service Co.,
 Ltd.
 Zhejiang Hanglun              8,581,536.83        8,581,536.83            100.00%   It has been


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                                                               Ending Balance
         Name                                    Provision for Bad           Provision             Reasons for
                            Book Balance
                                                       Debts                 Proportion             Provision
 Ligang Trading Co.,                                                                          prosecuted, but
 Ltd.                                                                                         highly unlikely to
                                                                                              be recovered
 Beijing Institute of                                                                         Highly unlikely to
                                    71,740.00               71,740.00              100.00%
 Radio Measurement                                                                            be recovered
                                                                                              It has been
 Zhejiang Baoding
                                                                                              prosecuted, but
 Automobile Sales                   80,035.12               80,035.12              100.00%
                                                                                              highly unlikely to
 Co., Ltd.
                                                                                              be recovered
                                                                                              It has been
 Shuozhou Jinsheng
                                                                                              prosecuted, but
 Automobile Trading             1,822,961.43              1,822,961.43             100.00%
                                                                                              highly unlikely to
 Co., Ltd.
                                                                                              be recovered
                                                                                              It has been
 Xinjiang Jingyang
                                                                                              prosecuted, but
 Optoelectronic Co.,            1,179,590.41              1,179,590.41             100.00%
                                                                                              highly unlikely to
 Ltd.
                                                                                              be recovered
                                                                                              It has been
 Yulin Jiayu Jiefang
                                                                                              prosecuted, but
 Automobile Sales                 971,012.59               971,012.59              100.00%
                                                                                              highly unlikely to
 Co., Ltd.
                                                                                              be recovered
 Total                         85,146,390.69          85,146,390.69
Provision for bad debts made by portfolio:
                                                                                                         Unit: CNY
                                                                  Ending Balance
           Name
                                     Book Balance             Provision for Bad Debts      Provision Proportion
 Within 1 year                         1,788,152,599.19                   9,525,849.15                     0.53%
 1-2 years                               304,070,093.93                  50,776,892.70                    16.70%
 2-3 years                                 9,706,386.64                   8,040,651.68                    82.84%
 3-4 years                                   885,600.00                     885,600.00                   100.00%
 Over 4 years                             14,123,098.26                  14,123,098.26                   100.00%
 Total                                 2,116,937,778.02                  83,352,091.79
Description of the basis for determining the portfolio:
Information about the provision for bad debts shall be disclosed in the same way as that of other receivables if the
provision for bad debts of accounts receivable is withdrawn based on the general model of expected credit losses:
□ Applicable      Not applicable
Disclosure by aging
                                                                                                         Unit: CNY

                          Aging                                                 Ending Balance
 Within 1 year (including 1 year)                                                                1,768,423,418.31
 Including: 0-6 months                                                                           1,527,609,092.40
        7-12 months                                                                                240,814,325.91

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 1-2 years                                                                                          320,670,077.79
 2-3 years                                                                                           12,924,488.18
 Over 3 years                                                                                       100,066,184.43
   3-4 years                                                                                         58,907,076.82
   4 to 5 years                                                                                       8,581,536.83
   Over 5 years                                                                                      32,577,570.78
 Total                                                                                            2,202,084,168.71

(2) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
                                                                                                         Unit: CNY
                                             Amount Changed in the Current Period
                                                                             Cance
  Category        Opening Balance                          Recovery or       l after              Ending Balance
                                         Provision                                       Others
                                                            Reversal         verific
                                                                              ation
 Accounts
                    150,418,663.44      30,079,819.04      12,000,000.00                           168,498,482.48
 receivable
 Total              150,418,663.44      30,079,819.04      12,000,000.00                           168,498,482.48
Important provision for bad debts recovered or reversed in the current period:
                                                                                                         Unit: CNY
          Company Name                    Amount Recovered or Reversed                   Recovery Method
 Transportation Group (Qingdao)
 Sunshine Automobile Sales and                                8,000,000.00       Recovery of bank acceptance bills
 Service Co., Ltd.
 Dalian Qingfeng Bus Co., Ltd.                                4,000,000.00       Recovery of bank deposits
 Total                                                       12,000,000.00

(3) Accounts receivable from top five borrowers classified based on the ending balance
                                                                                                         Unit: CNY
                                                              Proportion in Total
                                  Ending Balance of                                        Ending Balance of Bad
      Company Name                                            Ending Balance of
                                 Accounts Receivable                                          Debts Provision
                                                             Accounts Receivable
 China FAW Group
 Import & Export Co.,                    771,150,288.04                       35.02%                    827,499.69
 Ltd.
 Customer 1                              516,085,710.00                       23.44%                 30,358,552.41
 Customer 2                              139,320,940.32                        6.33%                    139,320.94
 FAW Hongta Yunnan
 Automobile                               52,763,670.55                          2.40%                2,902,224.84
 Manufacturing Co., Ltd.
 Customer 3                               50,172,900.00                        2.28%                  1,197,052.34
 Total                                 1,529,493,508.91                       69.47%




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4.   Receivables financing

                                                                                                        Unit: CNY
                Item                              Ending Balance                        Opening Balance
 Notes receivable                                        7,091,605,627.68                       5,305,018,299.79
 Total                                                   7,091,605,627.68                       5,305,018,299.79

Increase/decrease in receivables financing in the current period and changes in fair value
□ Applicable        Not applicable
Information about the provision for impairment shall be disclosed in the same way as that of other receivables if
the provision for impairment of receivables financing is withdrawn based on the general model of expected credit
losses:
□ Applicable        Not applicable

5.   Prepayments

(1) Presentation of prepayment by aging

                                                                                                        Unit: CNY
                                      Ending Balance                                Opening Balance
          Aging
                              Amount                   Scale                 Amount                   Scale
 Within 1 year             1,219,924,277.32                 88.52%         797,055,366.07                 91.74%
 1-2 years                   128,133,658.18                    9.30%         44,227,099.84                    5.09%
 2-3 years                    21,867,458.90                    1.59%         15,714,068.26                    1.81%
 Over 3 years                    8,229,261.81                  0.60%         11,814,878.82                    1.36%
 Total                     1,378,154,656.21                                 868,811,412.99
Reasons for untimely settlement of prepayments with significant amount and age of over 1 year:
                                                                                                        Unit: CNY
                                                                         Proportion in Total Reasons for
                Name of Debtor                      Book Balance
                                                                          Prepayments (%) Non-settlement
China FAW Group Import & Export Co.,                                                         Undue settlement
                                                           79,903,463.69                5.80
Ltd.                                                                                             period
                                                                                             Undue settlement
Supplier 1                                                  8,097,000.00                0.59
                                                                                                 period
                                                                                             Undue settlement
                                                                                        0.40
Supplier 2                                               5,478,800.00                            period
                                                                                             Undue settlement
Supplier 3                                                                              0.34
                                                         4,649,400.00                            period
Supplier 4                                                                                   Undue settlement
                                                            4,463,058.00                0.32
                                                                                                 period
Total                                                    102,591,721.69                      7.45




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(2) Prepayments of the top five objects classified based on the ending balance


The total prepayments of top five objects classified based on the ending balance in the current period is CNY
870,278,190.51, accounting for 63.15% of the total ending balance of prepayment.
Other notes: none

6.   Other receivables

                                                                                                   Unit: CNY
                Item                            Ending Balance                       Opening Balance
 Dividends receivable                                      26,488,012.75                         8,567,040.00
 Other receivables                                        281,869,624.93                      240,521,050.95
 Total                                                    308,357,637.68                      249,088,090.95

(1) Dividends receivable

1)   Classification of dividends receivable

                                                                                                   Unit: CNY
            Item (or Investee)                       Ending Balance                   Opening Balance
 FAW Changchun Ansteel Steel
                                                              8,567,040.00                      8,567,040.00
 Processing and Distribution Co., Ltd.
 Sanguard Automobile Insurance Co.,
                                                             17,920,972.75
 Ltd.
 Total                                                       26,488,012.75                      8,567,040.00

2)   Provision for bad debts

□ Applicable        Not applicable
Other notes: none

(2) Other receivables

1)   Classification of other receivables by nature

                                                                                                   Unit: CNY
           Payable Nature                     Ending Book Balance                  Opening Book Balance
 Current account                                          119,381,326.85                       99,570,166.66
 Claim payment                                            200,987,802.97                      196,444,173.02
 Margin, deposit                                           31,170,932.13                       34,872,256.53
 Reserve fund                                              24,594,326.93                        4,777,757.97
 Total                                                    376,134,388.88                      335,664,354.18




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2)     Provision for bad debts

                                                                                                         Unit: CNY
                                 Phase I                 Phase II                Phase III
     Provision for Bad                              Expected credit loss    Expected credit loss
                          Expected credit loss                                                        Total
           Debts                                       for the entire          for the entire
                            for the next 12
                                                     duration (without        duration (with
                                months
                                                    credit impairment)      credit impairment)
 Balance on January
                                 5,034,178.04            29,609,303.24           60,499,821.95       95,143,303.23
 1, 2022
 Balance on January
 1, 2022 in the
 current period
 - Transfer to phase
                                           -21.38                   21.38
 II
 Provision in the
                                   -801,731.00               -76,808.28                                -878,539.28
 current period
 Balance on June 30,
                                 4,232,425.66            29,532,516.34           60,499,821.95       94,264,763.95
 2022
Changes in the book balance of the loss provision with significant changes in the current period
□ Applicable          Not applicable
Disclosure by aging
                                                                                                         Unit: CNY

                           Aging                                                   Ending Balance
 Within 1 year (including 1 year)                                                                   277,028,327.59
 Including: 0-6 months                                                                              275,654,981.14
        7-12 months                                                                                   1,373,346.45
 1-2 years                                                                                            5,336,283.49
 2-3 years                                                                                            8,475,764.97
 Over 3 years                                                                                        85,294,012.83
      3-4 years                                                                                      39,638,797.62
      4 to 5 years                                                                                   10,014,602.00
      Over 5 years                                                                                   35,640,613.21
 Total                                                                                              376,134,388.88

3)     Provision for bad debts provided, recovered or reversed in the current period




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Provision for bad debts in the current period:
                                                                                                           Unit: CNY
                                                Amount Changed in the Current Period
                                                                               Cancel
     Category       Opening Balance                           Recovery or       after               Ending Balance
                                              Provision                                  Others
                                                               Reversal        verific
                                                                                ation
 Other
                        95,143,303.23          -878,539.28                                            94,264,763.95
 receivables
 Total                  95,143,303.23          -878,539.28                                            94,264,763.95

4)    Other receivables from top five borrowers classified based on the ending balance

                                                                                                           Unit: CNY
                                                                                    Proportion in
                                                                                    Total Ending     Ending Balance
                            Payment
     Company Name                           Ending Balance         Aging             Balance of       of Bad Debts
                             Nature
                                                                                       Other            Provision
                                                                                    Receivables
                          New energy
                                                               3-4 years, 4-5
 Customer 1               vehicle sales       48,155,960.00                                12.80%      48,155,960.00
                                                                   years
                            subsidies
                           Relocation
 Customer 2                                   20,500,000.00     Over 5 years                5.45%      20,500,000.00
                         compensation
 The Ninth
 Institute of Project
 Planning &                 Current
                                              10,728,984.01     0-6 months                  2.85%          10,728.98
 Research of China          account
 Machinery
 Industry (FIPPR)
 Qingdao
 Automotive
                           Advance
 Research Institute                            8,227,110.28      2-3 years                  2.19%       5,675,883.38
                           payment
 of China FAW
 Co., Ltd.
                            Current
 Customer 3                                    3,545,640.00      1-2 years                  0.94%       2,155,394.56
                            account
 Total                                        91,157,694.29                                24.23%      76,497,966.92


7.    Inventories

Whether the Company is required to comply with the disclosure requirements of the real estate industry: No




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(1) Classification of inventories

                                                                                                                                                Unit: CNY
                                            Ending Balance                                                       Opening Balance
                                              Provision for                                                       Provision for
     Item                                    impairment of                                                       impairment of
                     Book Balance                                   Book Value            Book Balance                                   Book Value
                                         inventory or contract                                                inventory or contract
                                           performance cost                                                     performance cost
 Raw
                       408,026,420.68          34,750,531.21          373,275,889.47        379,195,753.25          35,363,287.47          343,832,465.78
 materials
 Goods in
                       665,363,377.35           3,524,161.33          661,839,216.02        676,093,365.06           4,732,672.33          671,360,692.73
 process
 Goods in
                     5,434,465,998.98         145,457,247.62        5,289,008,751.36       5,864,661,527.18        143,363,374.55        5,721,298,152.63
 stock
 Revolving
                       101,874,640.46           2,186,616.31           99,688,024.15         103,311,491.37          1,244,042.64          102,067,448.73
 materials
 Others              2,783,683,375.66         172,037,662.57        2,611,645,713.09       2,618,917,617.54        189,355,846.16        2,429,561,771.38
 Total               9,393,413,813.13         357,956,219.04        9,035,457,594.09       9,642,179,754.40        374,059,223.15        9,268,120,531.25

(2) Provision for impairment of inventory and contract performance cost

                                                                                                                                                Unit: CNY
                                                Increase in the Current Period               Decrease in the Current Period
     Item          Opening Balance                                                                                                     Ending Balance
                                              Provision                 Others         Reversal or Write-off         Others
 Raw
                        35,363,287.47               94,945.50                                    707,701.76                                 34,750,531.21
 materials
 Goods in
                          4,732,672.33                                                         1,208,511.00                                  3,524,161.33
 process
 Goods in
                       143,363,374.55          84,220,627.88                                  82,126,754.81                                145,457,247.62
 stock
 Revolving
                          1,244,042.64            942,573.67                                                                                 2,186,616.31
 materials
 Others                189,355,846.16             228,206.00                                 17,546,389.59                                 172,037,662.57
 Total                 374,059,223.15          85,486,353.05                                101,589,357.16                                 357,956,219.04




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8.     Contractual assets

                                                                                                                  Unit: CNY
                                   Ending Balance                                            Opening Balance
     Item                            Impairment                                                Impairment
                Book Balance                             Book Value        Book Balance                              Book Value
                                      Provision                                                 Provision
 Contra
 ctual             66,427,687.56      4,459,663.97      61,968,023.59       57,650,067.72          4,602,380.00      53,047,687.72
 assets
 Total             66,427,687.56      4,459,663.97      61,968,023.59       57,650,067.72          4,602,380.00      53,047,687.72
Information about the provision for impairment shall be disclosed in the same way as that of other receivables if the
provision for impairment of contractual assets is withdrawn based on the general model of expected credit losses:
Applicable            □ Not Applicable
Provision for impairment by aging portfolio Unit: CNY
                                      2022.06.30                                         2021.12.31
     Category                                           Expected
                     Contractual     Provision for                       Contractual     Provision for Expected Credit
                                                       Credit Loss
                       assets         Bad Debts                            assets         Bad Debts     Loss Rate (%)
                                                        Rate (%)
Within 1 year        40,485,347.56        124,698.96           0.31      31,421,323.96       86,311.95                0.27
1-2 years            25,942,340.00    4,334,965.01            16.71      26,228,743.76    4,516,068.05               17.22
Total                66,427,687.56    4,459,663.97             6.71      57,650,067.72    4,602,380.00                7.98

Provision for impairment of contractual assets in the current period:
                                                                                                                  Unit: CNY
                                                                                   Write-
                             Provision in the          Reversal in the
            Item                                                             off/Verification in            Cause
                              current period           Current Period
                                                                             the Current Period
 Provision for
                                                                                                     Provision and
 impairment of                       -142,716.03
                                                                                                     reversal by aging
 contractual assets
 Total                               -142,716.03                                                            ——
Other notes: none

9.     Current portion of non-current assets

                                                                                                                  Unit: CNY
                     Item                              Ending Balance                        Opening Balance
 Current portion of long-term
                                                                114,825,391.38                            114,825,391.38
 receivables
 Total                                                          114,825,391.38                            114,825,391.38




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10. Other current assets

                                                                                   Unit: CNY
                 Item           Ending Balance                      Opening Balance
 Input tax                                471,389,881.76                    1,368,192,743.48
 Input tax to be verified                   1,679,056.87                       19,065,353.23
 Prepaid income tax                                                           626,891,494.80
 Total                                    473,068,938.63                    2,014,149,591.51
Other notes: none




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11. Long-term receivables

(1) Long-term receivables

                                                                                                                                                             Unit: CNY
                                             Ending Balance                                                     Opening Balance
                                                                                                                                                           Discount Rate
      Item                                  Provision for Bad                                                     Provision for
                       Book Balance                                   Book Value           Book Balance                                 Book Value            Range
                                                  Debts                                                            Bad Debts
 Sales of goods
                         338,691,573.49          5,935,963.32          332,755,610.17       338,691,573.49          1,275,424.32       337,416,149.17       2.5%-5.6%
 by installments
 Current portion
 of long-term           -115,267,222.47           -441,831.09         -114,825,391.38       -115,267,222.47          -441,831.09       -114,825,391.38
 receivables
 Total                   223,424,351.02          5,494,132.23          217,930,218.79       223,424,351.02           833,593.23        222,590,757.79
Impairment of provision for bad debts
                                                                                                                                                             Unit: CNY
                                                        Phase I                       Phase II                        Phase III
                                                                              Expected credit loss for
         Provision for Bad Debts                                                                             Expected credit loss for the                Total
                                              Expected credit loss for the      the entire duration
                                                                                                             entire duration (with credit
                                                   next 12 months                 (without credit
                                                                                                                     impairment)
                                                                                   impairment)
 Balance on January 1, 2022                                   1,275,424.32                                                                                   1,275,424.32
 Balance on January 1, 2022 in the
 current period
 Provision in the current period                              4,660,539.00                                                                                   4,660,539.00
 Balance on June 30, 2022                                     5,935,963.32                                                                                   5,935,963.32
Changes in the book balance of the loss provision with significant changes in the current period
□ Applicable      Not applicable




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       12. Long-term equity investments

                                                                                                                                                          Unit: CNY
                                                                    Increase/Decrease in the Current Period
                                                             Investment                                       Cash                                                    Ending
               Opening Balance                                               Adjustment to                                                      Ending Balance       Balance of
 Investee                                                     Gains or                         Other      Dividends or     Provision
                (Book Value)      Investment   Investment                       Other                                                            (Book Value)       Impairment
                                                               Losses                          Equity        Profits          for      Others
                                   Increase     Reduction                    Comprehensive                                                                           Provision
                                                            Recognized by                     Changes     Announced to    Impairment
                                                                               Incomes
                                                            Equity Method                                   be Paid
I. Joint ventures
II. Associated enterprises
First
Automobile
               4,341,181,324.38                             280,639,831.32        -8,619.76                                                     4,621,812,535.94
Finance
Co., Ltd.
Sanguard
Automobile
                 213,584,040.85                              11,594,274.68       -38,116.86               17,920,972.75                          207,219,225.92
Insurance
Co., Ltd.
FAW
Changchun
Ansteel
Steel                                                                                                 -
                  85,910,484.18                               1,805,468.66                                                                        87,665,230.33
Processing                                                                                    50,722.51
and
Distribution
Co., Ltd.
Changchun
Wabco
Automotive
                  20,301,325.09                              -1,565,452.94                                                                        18,735,872.15
Control
System
Co., Ltd.
Suzhou
Zhito
Technology
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                                                                    Increase/Decrease in the Current Period
                                                             Investment                                       Cash                                                       Ending
               Opening Balance                                               Adjustment to                                                         Ending Balance       Balance of
 Investee                                                     Gains or                         Other      Dividends or        Provision
                (Book Value)      Investment   Investment                       Other                                                               (Book Value)       Impairment
                                                               Losses                          Equity        Profits             for      Others
                                   Increase     Reduction                    Comprehensive                                                                              Provision
                                                            Recognized by                     Changes     Announced to       Impairment
                                                                               Incomes
                                                            Equity Method                                   be Paid
Co., Ltd.
FAW
Changchun
Baoyou
Steel
                 43,140,497.54                                3,328,945.02                                    6,300,012.21                           40,169,430.35
Processing
and
Distribution
Co., Ltd.
FAW
Jiefang
Fujie
(Tianjin)        35,181,984.88                                 542,476.17                                                                            35,724,461.05
Technology
Industry
Co., Ltd.
SmartLink        27,435,014.82                              -15,165,383.20                                                                           12,269,631.62
                                                                                                      -
Subtotal       4,766,734,671.74                             281,180,159.71       -46,736.62               24,220,984.96                            5,023,596,387.36
                                                                                              50,722.51
                                                                                                      -
Total          4,766,734,671.74                             281,180,159.71       -46,736.62               24,220,984.96                            5,023,596,387.36
                                                                                              50,722.51
        Other notes: none




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13. Investment real estate

(1) Investment real estates measured at cost

Applicable        □ Not Applicable
                                                                                               Unit: CNY
                                      Houses and                             Project under
                Item                                      Land use right                           Total
                                       Buildings                             construction
 I. Original book value
      1. Opening balance               148,337,701.92         2,042,122.60                     150,379,824.52
      2. Increase in the current
                                        14,358,650.65        99,615,759.08                     113,974,409.73
 period
           (1) Outsourcing
           (2) Transferred from
 inventory/fixed assets/project         14,358,650.65        99,615,759.08                     113,974,409.73
 under construction
           (3) Increase due to
 business combination
      3. Decrease in the current
                                           474,248.30                                              474,248.30
 period
           (1) Disposal
           (2) Other transfer-out          474,248.30                                              474,248.30
      4. Ending balance                162,222,104.27       101,657,881.68                     263,879,985.95
 II. Accumulated depreciation and
 accumulated amortization
      1. Opening balance                70,076,640.08           100,359.35                      70,176,999.43
      2. Increase in the current
                                        13,435,715.82        21,061,709.95                      34,497,425.77
 period
           (1) Provision or
                                        13,435,715.82           493,139.62                      13,928,855.44
 amortization
           (2) Other increases                               20,568,570.33                      20,568,570.33
      3. Decrease in the current
                                           329,109.25                                              329,109.25
 period
           (1) Disposal
           (2) Other transfer-out          329,109.25                                              329,109.25
      4. Ending balance                 83,183,246.65        21,162,069.30                     104,345,315.95
 III. Provision for impairment
      1. Opening balance
      2. Increase in the current
 period
           (1) Provision
      3. Decrease in the current
 period
           (1) Disposal
           (2) Other transfer-out

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                                       Houses and                                Project under
                Item                                        Land use right                               Total
                                        Buildings                                construction
      4. Ending balance
 IV. Book value
      1. Ending book value              79,038,857.62         80,495,812.38                          159,534,670.00
      2. Opening book value             78,261,061.84           1,941,763.25                          80,202,825.09

(2) Investment real estates measured at fair value

□ Applicable       Not applicable

(3) Investment real estates without property ownership certificates

                                                                                                     Unit: CNY
                                                                             Reasons for failure to obtain the
                  Item                         Book Value
                                                                                       certificate
                                                                         This plot has been included in the
                                                                         government renovation project,
 Property, No. 949, Chongqing
                                                         1,264,704.51    and the property ownership
 Middle Road, Licang District
                                                                         certificate cannot be applied for at
                                                                         present
 Final assembly and loading                                              It is a new plant, and the certificate
                                                        16,736,495.23
 workshop of Liuzhou Plant                                               is being applied for
Other notes: none

14. Fixed assets

                                                                                                     Unit: CNY
                  Item                       Ending Balance                         Opening Balance
 Fixed assets                                        8,995,163,623.45                        9,224,786,362.59
 Disposal of fixed assets                               10,834,879.96                            12,002,959.44
 Total                                               9,005,998,503.41                        9,236,789,322.03




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       (1) Details of fixed assets

                                                                                                                                                   Unit: CNY
                                      Houses and                              Transportation     Electronic
              Item                                      Machinery equipment                                      Office equipment       Others                 Total
                                       buildings                                equipment        equipment
I. Original book value
     1. Opening balance              5,364,682,902.67     14,858,383,470.22   153,534,389.98    572,672,042.00     52,042,350.35    1,273,333,998.80    22,274,649,154.02
     2. Increase in the current
                                       25,816,702.44         503,584,756.93     2,199,980.09     13,780,666.83       3,425,761.54       3,497,006.54       552,304,874.37
period
          (1) Purchase                                         4,143,392.83       502,000.00      2,970,473.76         36,482.94          553,614.97           8,205,964.50
          (2) Transferred from
                                       25,816,702.44         499,441,364.10     1,697,980.09     10,810,193.07       3,389,278.60       2,943,391.57       544,098,909.87
the project under construction
          (3) Increase due to
business combination
     3. Decrease in the current
                                       91,431,691.88         163,485,517.78     1,400,099.94     14,681,572.77       1,407,271.22         243,000.00       272,649,153.59
period
     (1) Disposal or scrapping          73,287,071.73        162,849,113.85     1,400,099.94     14,681,572.77        877,356.68          243,000.00       253,338,214.97
     (2) Other decreases                18,144,620.15            636,403.93                                           529,914.54                            19,310,938.62
     4. Ending balance               5,299,067,913.23     15,198,482,709.37   154,334,270.13    571,771,136.06     54,060,840.67    1,276,588,005.34    22,554,304,874.80
II. Accumulated depreciation                                                                                                                                         0.00
     1. Opening balance              2,147,910,381.29      9,294,680,049.68   102,945,097.26    416,199,124.76     39,631,878.93      970,703,762.25    12,972,070,294.17
     2. Increase in the current
                                      131,182,280.49         517,249,669.24     9,322,653.54     39,490,590.83       1,993,548.17      48,642,434.56       747,881,176.83
period
          (1) Provision               130,861,371.12         517,249,669.24     9,322,653.54     39,490,590.83       1,993,548.17      48,642,434.56       747,560,267.46
          (2) Other increases             320,909.37                                                                                                           320,909.37
      3. Decrease in the current
                                       67,855,283.85         116,762,240.10     1,377,833.51     14,618,422.79       1,144,016.07         235,710.00       201,993,506.32
period
           (1) Disposal or
                                       54,320,715.01         116,359,808.77     1,377,833.51     14,618,422.79        827,038.87          235,710.00       187,739,528.95
scrapping
           (2) Other decreases          13,534,568.84            402,431.33                                            316,977.20                           14,253,977.37
      4. Ending balance              2,211,237,377.93      9,695,167,478.82   110,889,917.29    441,071,292.80      40,481,411.03    1,019,110,486.81   13,517,957,964.68
III. Provision for impairment                                                                                                                                        0.00
      1. Opening balance                   12,344.37          75,572,210.09                                                             2,207,942.80        77,792,497.26
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                                   Houses and                              Transportation        Electronic
              Item                                   Machinery equipment                                        Office equipment        Others             Total
                                    buildings                                equipment           equipment
     2. Increase in the current
                                                                                                                                                                      0.00
period
          (1) Provision                                                                                                                                               0.00
     3. Decrease in the current
                                                           36,609,210.59                                                                                     36,609,210.59
period
          (1) Disposal or
                                                           36,609,210.59                                                                                     36,609,210.59
scrapping
     4. Ending balance                  12,344.37          38,962,999.50                                                              2,207,942.80           41,183,286.67
IV. Book value
     1. Ending book value         3,087,818,190.93      5,464,352,231.05    43,444,352.84    130,699,843.26     13,579,429.64       255,269,575.73     8,995,163,623.45
     2. Opening book value        3,216,760,177.01      5,488,131,210.45    50,589,292.72    156,472,917.24     12,410,471.42       300,422,293.75     9,224,786,362.59




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(2) Fixed assets not used currently

                                                                                                           Unit: CNY
                       Original Book       Accumulated         Impairment
      Item                                                                         Book Value           Remarks
                           Value           Depreciation         Provision
 Machinery
                        63,276,688.04      35,797,917.84      21,960,257.70         5,518,512.50
 equipment

(3) Fixed assets leased out under operating leases

                                                                                                           Unit: CNY
                           Item                                                Ending Book Value
 Houses and buildings                                                                                   2,758,704.42
 Machinery equipment                                                                                    2,515,447.28
 Mode of transportation                                                                                     9,059.84
 Total                                                                                                  5,283,211.54

(4) Fixed assets without property ownership certificates

                                                                                                           Unit: CNY
                                                                                 Reasons for failure to obtain the
                Item                              Book Value
                                                                                              certificate
 Jimo phase II light truck new                                              It is just put into use, and the
                                                          310,241,566.22
 energy base project                                                        procedures are not completed
 Project of exiting the city and                                            It is a new plant, and the certificate is
                                                          323,920,016.01
 entering the industrial park                                               being applied for
 Hazardous waste station in plant                                           It is just put into use, and the
                                                            3,048,983.35
 area I                                                                     procedures are not completed
                                                                            Land applications are not submitted, so
 Equipment workshop works                                   1,142,169.66    the property ownership certificate
                                                                            cannot be obtained
Other notes: none

(5) Disposal of fixed assets

                                                                                                           Unit: CNY
                Item                              Ending Balance                          Opening Balance
 Houses and Buildings                                               8,280.77                               8,280.77
 Machinery equipment                                           10,094,480.61                          10,642,669.15
 Mode of transportation                                           131,175.05                             219,822.98
 Electronic equipment                                              60,494.58                               8,298.69
 Office equipment                                                  35,072.37                              18,904.69
 Others                                                           505,376.58                           1,104,983.16
 Total                                                         10,834,879.96                          12,002,959.44
Other notes: none




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15. Project under construction

                                                                                          Unit: CNY
                Item                       Ending Balance                   Opening Balance
 Project under construction                         966,294,107.55                   965,997,208.23
 Total                                              966,294,107.55                   965,997,208.23




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(1) Project under construction

                                                                                                                                                                          Unit: CNY
                                                           Ending Balance                                                              Opening Balance
            Item                                             Impairment                                                                     Impairment
                                    Book Balance                                       Book Value                Book Balance                                        Book Value
                                                              Provision                                                                      Provision
 New and reconstructed
                                     250,836,955.61             1,945,416.12             248,891,539.49             235,582,222.31             1,945,416.12          233,636,806.19
 investment project
 Technical transformation
                                     717,458,065.25                55,497.19             717,402,568.06             732,415,899.23                55,497.19          732,360,402.04
 investment project
 Total                               968,295,020.86             2,000,913.31             966,294,107.55             967,998,121.54             2,000,913.31          965,997,208.23

(2) Changes of important project under construction in the current period

                                                                                                                                                                          Unit: CNY
                                                                         Amount
                                                                                      Other                                                                Including:    Capitalization
                                                                       Transferred                                  Ratio of                Cumulative
                                                                                     Decrease                                                             Capitalized       Rate of
                                       Opening       Increase in the     to Fixed                  Ending        Accumulative     Project   Amount of                                      Capital
 Project Name        Budget                                                           in the                                                               Interest in   Interest in the
                                       Balance       Current Period     Assets in                  Balance       Investment to   Progress   Capitalized                                    Source
                                                                                     Current                                                              the Current       Current
                                                                       the Current                                  Budget                   Interest
                                                                                      Period                                                                 Period          Period
                                                                          Period
 FAW Jiefang
 commercial
 vehicle           999,970,000.00   138,759,113.95   171,122,572.03                             309,881,685.98        30.99%     37.28%                                                    Others
 Guanghan
 base project
 16L engine
 construction
 and natural
 gas test       1,160,670,000.00    112,386,329.25    29,129,835.91                             141,516,165.16        12.19%     68.06%                                                    Others
 capacity
 improvement
 project
 FAW Jiefang       388,500,000.00    82,263,770.61    12,433,407.02                              94,697,177.63        47.23%     70.75%                                                    Others

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                                                                       Amount
                                                                                    Other                                                               Including:    Capitalization
                                                                     Transferred                                 Ratio of                Cumulative
                                                                                   Decrease                                                            Capitalized       Rate of
                                     Opening       Increase in the     to Fixed                 Ending        Accumulative     Project   Amount of                                      Capital
Project Name        Budget                                                          in the                                                              Interest in   Interest in the
                                     Balance       Current Period     Assets in                 Balance       Investment to   Progress   Capitalized                                    Source
                                                                                   Current                                                             the Current       Current
                                                                     the Current                                 Budget                   Interest
                                                                                    Period                                                                Period          Period
                                                                        Period
south new
energy base
project
Axle base
construction
project and
heavy
replacement       989,859,950.93   79,972,863.66   11,890,268.28                              91,863,131.94        20.88%     27.13%                                                    Others
axle
technology
upgrade
(phase I)
Intelligent
parts logistics   107,806,500.00   16,080,266.01   10,957,173.36                              27,037,439.37        38.85%     56.44%                                                    Others
center project
Project of
exiting the
city and
                  936,068,800.00   19,204,724.39        13,349.94                             19,218,074.33        84.44%     93.75%                                                    Others
entering the
industrial
park
Engine
environmental
                   22,600,000.00   16,850,804.63                                              16,850,804.63        74.56%     90.17%                                                    Others
chamber test
bench
Front axle
four-line
technology         20,782,201.00   14,420,256.74                                              14,420,256.74        69.39%     90.35%                                                    Others
improvement
project of axle

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                                                                        Amount
                                                                                     Other                                                                Including:    Capitalization
                                                                      Transferred                                  Ratio of                Cumulative
                                                                                    Decrease                                                             Capitalized       Rate of
                                      Opening       Increase in the     to Fixed                  Ending        Accumulative     Project   Amount of                                      Capital
Project Name        Budget                                                           in the                                                               Interest in   Interest in the
                                      Balance       Current Period     Assets in                  Balance       Investment to   Progress   Capitalized                                    Source
                                                                                    Current                                                              the Current       Current
                                                                      the Current                                  Budget                   Interest
                                                                                     Period                                                                 Period          Period
                                                                         Period
factory
Renovation of
Jiefang
Limited
buildings on      38,444,591.00                      13,088,417.18                              13,088,417.18        34.04%     53.03%                                                    Others
the west side
of Hongqi
Auditorium
capacity
expansion
project of
light truck
                 169,960,000.00                      11,506,831.14                              11,506,831.14          6.77%    17.47%                                                    Others
welding line
in welding
workshop of
Jimo factory
Diesel engine
virtual
                  25,602,600.00     10,383,044.13                                               10,383,044.13        40.55%     60.28%                                                    Others
calibration
test bench
Total           4,860,264,642.93   490,321,173.37   260,141,854.86          0.00        0.00   750,463,028.23




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16. Bearer biological assets

(1) Bearer biological assets measured at cost

□ Applicable         Not applicable

(2) Bearer biological assets measured at fair value

□ Applicable         Not applicable

17. Oil and gas assets

□ Applicable         Not applicable

18. Right-of-use assets

                                                                                                Unit: CNY
                                 Houses and           Machinery
           Item                                                             Land               Total
                                  buildings           equipment
 I. Original book value
      1. Opening
                                 152,994,385.75         17,495,179.84     23,719,044.14      194,208,609.73
 balance
      2. Increase in the
                                   3,288,926.12                                                3,288,926.12
 current period
         Including: rent           3,288,926.12                                                3,288,926.12
      3. Decrease in the
 current period
      4. Ending balance          156,283,311.87         17,495,179.84     23,719,044.14      197,497,535.85
 II. Accumulated
 depreciation
      1. Opening
                                  35,642,623.35          8,288,590.54      6,511,130.40       50,442,344.29
 balance
      2. Increase in the
                                  19,828,590.51          4,267,872.00      1,919,344.34       26,015,806.85
 current period
           (1) Provision          19,828,590.51          4,267,872.00      1,919,344.34       26,015,806.85
      3. Decrease in the
 current period
           (1) Disposal
      4. Ending balance           55,471,213.86         12,556,462.54      8,430,474.74       76,458,151.14
 III. Provision for
 impairment
      1. Opening
 balance
      2. Increase in the
 current period
           (1) Provision
      3. Decrease in the
 current period


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                               Houses and              Machinery
           Item                                                                   Land                Total
                                buildings              equipment
           (1) Disposal
      4. Ending balance
 IV. Book value
      1. Ending book
                               100,812,098.01               4,938,717.30        15,288,569.40       121,039,384.71
 value
      2. Opening book
                               117,351,762.40               9,206,589.30        17,207,913.74       143,766,265.44
 value

Other notes: For the lease expenses related to short-term leases and low-value asset leases recognized by the
Company as of June 30, 2022, please see 2 in XIV "Other Major Events" of Section X - Financial Report.

19. 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
                             2,872,112,661.06                  677,388,766.94      511,564,769.26      4,061,066,197.26
 balance
      2. Increase in the
                               122,353,689.17                                       43,227,654.73        165,581,343.90
 current period
   (1) Purchase                122,353,689.17                                       43,227,654.73        165,581,343.90
   (2) Internal R&D
   (3) Increase due to
 business combination
      3. Decrease in the
                               158,931,798.98                  309,877,041.02        7,082,431.98        475,891,271.98
 current period
      (1) Disposal              59,316,039.90                  309,877,041.02        7,082,431.98        376,275,512.90
      (2) Others                99,615,759.08                                                             99,615,759.08
      4. Ending balance      2,835,534,551.25                  367,511,725.92      547,709,992.01      3,750,756,269.18
 II. Accumulated
 amortization
      1. Opening
                               573,374,388.26                  562,286,837.32      153,127,855.55      1,288,789,081.13
 balance
      2. Increase in the
                                   31,343,837.45                25,475,605.59       27,717,055.55         84,536,498.59
 current period
      (1) Provision                31,343,837.45                25,475,605.59       27,717,055.55         84,536,498.59
      3. Decrease in the
                                   33,841,316.21               309,877,041.02        7,082,431.98        350,800,789.21
 current period
      (1) Disposal              13,272,745.88                  309,877,041.02        7,082,431.98        330,232,218.88
      (2) Others                20,568,570.33                                                             20,568,570.33
      4. Ending balance        570,876,909.50                  277,885,401.89      173,762,479.12      1,022,524,790.51
 III. Provision for
 impairment


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                                                      Patent      Non-patented
            Item                Land use right                                           Software                 Total
                                                      Rights       technology
      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
                                2,264,657,641.75                   89,626,324.03       373,947,512.89         2,728,231,478.67
 value
      2. Opening book
                                2,298,738,272.80                  115,101,929.62       358,436,913.71         2,772,277,116.13
 value
The intangible assets not resulting from internal research and development of the Company accounts for 3.29% of
the balance of intangible assets at the end of the current period.


20. Development expenditures

                                                                                                              Unit: CNY
                                     Increase in the Current Period        Decrease in the Current Period
                    Opening                                               Recogniz                             Ending
     Item                               Internal                                         Transferred to
                    Balance                                                   ed                               Balance
                                      Development             Others                   Current Profits and
                                                                          Intangible
                                      Expenditure                                           Losses
                                                                            Assets
 Cost-based
                                      1,016,316,222.64                                   1,016,316,222.64
 expenditure
 Total                                1,016,316,222.64                                   1,016,316,222.64
Other notes: none

21. Long-term deferred expenses

                                                                                                              Unit: CNY
                                                                Amortization
                           Opening          Increase in the
       Item                                                     Amount in the       Other Decreases   Ending Balance
                           Balance          Current Period
                                                                Current Period
 Maintenance,
 fire protection
 transformation             334,598.30                                 102,079.32                            232,518.98
 and supporting
 expenses
 Total                      334,598.30                                 102,079.32                            232,518.98
Other notes: none

22. Deferred tax assets/deferred tax liabilities




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(1) Deferred tax assets not offset

                                                                                                          Unit: CNY
                                         Ending Balance                                 Opening Balance
          Item                  Deductible                                       Deductible
                                Temporary           Deferred tax assets          Temporary          Deferred tax assets
                                Difference                                       Difference
 Provision for
                                623,666,771.23          127,369,484.45           644,896,017.71         108,060,894.94
 impairment of assets
 Unrealized profits of
                                433,668,860.00          108,417,215.00           433,668,860.00         108,417,215.00
 internal transactions
 Deductible losses             2,144,885,421.77         447,040,755.45         1,337,622,355.67         275,224,988.92
 Estimated liabilities         1,092,253,732.81         182,064,549.11         1,133,139,410.76         189,238,389.56
 Employee
                                102,535,040.33           18,030,113.39            95,057,719.68          16,232,178.23
 compensation payable
 Accrued expenses              3,625,319,854.24         814,792,015.17         3,203,797,740.11         738,848,418.90
 Deferred incomes                545,618,507.50         107,493,554.55           586,360,167.55         114,073,451.58
 Contract liabilities            612,216,679.96         103,749,694.80           575,584,804.51         100,200,974.13
 Total                         9,180,164,867.84       1,908,957,381.92         8,010,127,075.99       1,650,296,511.26

(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       1,710,138,244.89         275,243,675.76          2,056,171,246.16        349,311,074.60
 longer than tax
 preference period
 Interest income
                             224,118,991.93           33,793,359.10          162,580,602.64           24,874,039.55
 accrued
 Total                     1,934,257,236.82         309,037,034.86          2,218,751,848.80        374,185,114.15

(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 tax assets                               1,908,957,381.92                                1,650,296,511.26
 Deferred income
                                                    309,037,034.86                                  374,185,114.15
 tax liabilities




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(4) Details of unrecognized deferred tax assets

                                                                                                       Unit: CNY
                     Item                        Ending Balance                       Opening Balance
 Deductible Temporary Difference                           476,163,328.97                         664,263,202.95
 Deductible losses                                         264,563,629.38                         276,845,879.98
 Total                                                     740,726,958.35                         941,109,082.93

(5) Deductible losses of unrecognized deferred tax assets will be due in the following years

                                                                                                       Unit: CNY
              Year                 Ending Amount              Opening Amount                     Remarks
 2026                                                                1,441,940.00
 2027
 2028                                   221,013,270.26              231,853,580.86
 2029                                    43,550,359.12               43,550,359.12
 Total                                  264,563,629.38              276,845,879.98
Other notes: none

23. Notes payable

                                                                                                       Unit: CNY
                 Type                            Ending Balance                       Opening Balance
 Bank acceptance bill                                    17,538,100,899.05                   13,062,704,192.54
 Total                                                   17,538,100,899.05                   13,062,704,192.54
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                                     10,726,822,830.00                    12,959,963,131.32
 Project and equipment payment                             34,920,116.04                         21,713,517.52
 Fees and others                                        2,181,796,812.78                      1,583,223,345.63
 Total                                                 12,943,539,758.82                    14,564,899,994.47

(2) Significant accounts payable with the aging over 1 year

                                                                                                       Unit: CNY
                                                                             Reasons for Non-reimbursement or
                     Item                        Ending Balance
                                                                                       Carry-forward
 Supplier 1                                                 14,038,833.43        Undue settlement period
 Supplier 2                                                  1,907,749.88        Undue settlement period
 Total                                                      15,946,583.31
Other notes: none

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25. Advance receipts

(1) Presentation of advances receipts

                                                                                                    Unit: CNY
                   Item                         Ending Balance                      Opening Balance
 Rental fee                                                  254,326.19                         1,712,917.27
 Total                                                       254,326.19                         1,712,917.27

26. Contract liabilities

                                                                                                    Unit: CNY
                  Item                          Ending Balance                      Opening Balance
 Payment for goods                                     1,344,246,736.72                     2,324,758,318.77
 Others                                                  688,028,547.33                       643,363,601.92
 Contract liabilities included in
                                                         -133,374,027.58                      -267,479,444.78
 other current liabilities
 Total                                                  1,898,901,256.47                     2,700,642,475.91

27. Employee compensation payable

(1) Presentation of employee compensation payable

                                                                                                    Unit: CNY
                                               Increase in Current   Decrease in Current
         Item              Opening Balance                                                  Ending Balance
                                                     Period                Period
 I. Short-term
                              248,475,175.17     1,978,516,941.27      1,919,563,183.65        307,428,932.79
 compensation
 II. Post-
 employment
                               20,760,130.28       336,982,472.94        329,760,473.05         27,982,130.17
 benefits-defined
 contribution plan
 III. Dismissal
                               40,525,119.92        43,000,978.26          32,293,262.16        51,232,836.02
 welfare
 IV. Current portion
                               54,690,000.00                               20,129,838.93        34,560,161.07
 of other welfare
 Total                        364,450,425.37     2,358,500,392.47      2,301,746,757.79        421,204,060.05

(2) Presentation of short-term compensation

                                                                                                    Unit: CNY
                                                        Increase in Current   Decrease in Current
                  Item              Opening Balance                                                 Ending Balance
                                                              Period                Period
 1. Wages, bonuses, allowances
                                                          1,298,776,232.35      1,254,288,252.54       44,487,979.81
 and subsidies
 2. Employee welfare                                         83,155,621.11         83,155,621.11
 3. Social insurance premium            4,091,540.25        164,363,320.65        165,823,287.16        2,631,573.74
      Including: medical                4,091,540.25        156,751,385.90        158,211,352.41        2,631,573.74


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 insurance premium
             Work-related injury
                                                                  7,611,934.75           7,611,934.75
 insurance premium
 4. Housing fund                                                243,791,075.23         243,791,075.23
 5. Labor union funds and
                                         244,383,634.92          53,565,186.48          37,639,442.16        260,309,379.24
 employee education funds
 6. Others                                                      134,865,505.45         134,865,505.45
 Total                                   248,475,175.17       1,978,516,941.27       1,919,563,183.65        307,428,932.79

(3) Presentation of defined contribution plan

                                                                                                          Unit: CNY
                                                 Increase in Current     Decrease in Current
         Item             Opening Balance                                                       Ending Balance
                                                       Period                  Period
 1. Basic endowment
                              16,032,537.24          229,112,937.29          229,112,937.29         16,032,537.24
 insurance
 2. Unemployment
                                2,374,937.21              9,364,095.25           9,364,095.25           2,374,937.21
 insurance premium
 3. Enterprise
                                2,352,655.83          98,505,440.40             91,283,440.51           9,574,655.72
 annuity
 Total                        20,760,130.28          336,982,472.94          329,760,473.05         27,982,130.17

Other notes: The Company participates in the endowment insurance and unemployment insurance plans established
by government authorities as specified, and pays monthly contributions to these plans based on a proportion of the
basic salary of employees in the previous year. The Company will not assume any further payment obligation,
except the above monthly payment. Corresponding expenditures are included in the current profits and losses or the
cost of related assets when incurred.

28. Taxes payable

                                                                                                          Unit: CNY
                 Item                             Ending Balance                         Opening Balance
 Value-added tax                                              291,416,334.25                        11,331,447.35
 Corporate income tax                                             661,693.44                              21,659.10
 Individual income tax                                           7,104,901.20                       40,089,512.39
 Urban maintenance and
                                                               19,635,881.61                            1,789,459.45
 construction tax
 Resource tax                                                                                            7,143.40
 Property tax                                                   7,430,694.15                         7,611,594.27
 Land use tax                                                   4,865,951.82                         4,508,520.75
 Educational surcharges                                        16,507,619.12                         3,751,315.40
 Other taxes                                                   11,368,409.04                       104,837,877.42
 Total                                                        358,991,484.63                       173,948,529.53
Other notes: none




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29. Other payables

                                                                                                       Unit: CNY
                  Item                           Ending Balance                        Opening Balance
 Dividends payable                                              171,500.02                            171,500.02
 Other payables                                          7,299,699,425.99                       7,383,051,672.28
 Total                                                   7,299,870,926.01                       7,383,223,172.30

(1) Dividends payable

                                                                                                       Unit: CNY
                  Item                           Ending Balance                        Opening Balance
 Common stock dividends                                         171,500.02                            171,500.02
 Total                                                          171,500.02                            171,500.02
Other notes, including the disclosure of the reasons for not paying the significant dividends payable for more than
1 year: none

(2) Other payables

1)   Presentation of other payables by nature

                                                                                                       Unit: CNY
                 Item                            Ending Balance                        Opening Balance
 Expenses payable                                       4,351,426,251.24                       4,656,353,118.05
 Margin, deposit                                          323,686,408.09                         377,161,619.49
 Project funds payable                                  1,294,666,896.18                       1,381,458,524.66
 Current accounts payable and
                                                         1,048,350,844.75                         657,617,923.70
 others
 Repurchase obligations of
                                                           281,569,025.73                         310,460,486.38
 restricted shares
 Total                                                   7,299,699,425.99                       7,383,051,672.28

2)   Other significant payables with the aging over 1 year

                                                                                                       Unit: CNY
                                                                              Reasons for Non-reimbursement or
                  Item                           Ending Balance
                                                                                         Carry-forward
                                                                              The government advances the
                                                                              project construction funds, and the
 Supplier 1                                                260,000,000.00
                                                                              payment of old factory is not
                                                                              disposed of or settled
                                                                              Compensation payable, R&D
 FAW Group                                                 233,303,791.17
                                                                              expenses
 Supplier 2                                                  20,000,000.00    Project not completed
 Supplier 3                                                  14,637,490.18    Project not completed
 The Ninth Institute of Project
 Planning & Research of China                                12,441,065.20    Project not completed
 Machinery Industry (FIPPR)
 Supplier 4                                                  10,496,000.00    Project not completed
 Supplier 5                                                   7,160,946.17    Project not completed

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 Qiming Information Technology
                                                             6,687,345.77    Project not completed
 Co., Ltd.
 Total                                                     564,726,638.49
Other notes: none

30. Current portion of non-current liabilities

                                                                                                     Unit: CNY
                 Item                             Ending Balance                     Opening Balance
 Current portion of lease liabilities                       33,214,415.10                        47,060,544.71
 Total                                                      33,214,415.10                        47,060,544.71
Other notes: none

31. Other current liabilities

                                                                                                     Unit: CNY
                Item                              Ending Balance                     Opening Balance
 Taxes to be written off                                   157,933,439.12                     267,479,444.78
 Total                                                     157,933,439.12                     267,479,444.78

32. Lease liabilities

                                                                                                     Unit: CNY
                 Item                             Ending Balance                     Opening Balance
 Lease payment                                             141,899,609.84                     146,978,150.99
 Unrecognized financing charges                            -13,618,291.30                     -11,610,388.23
 Current portion of lease liabilities                      -33,214,415.10                     -47,060,544.71
 Total                                                      95,066,903.44                      88,307,218.05
Other notes: The interest of lease liabilities accrued in 2022 is CNY 2,801,600, which is included in financial
expenses - interest expenses.

33. Long-term employee compensation payable

(1) Statement of long-term employee compensation payable

                                                                                                     Unit: CNY
                        Item                          Ending Balance                 Opening Balance
 I. Post-employment welfare - net liabilities
                                                            737,930,161.07                     756,440,000.00
 of defined benefit plan
 II. Dismissal welfare                                      111,840,662.43                     103,304,166.28
 Current portion of long-term employee
                                                            -85,792,997.09                      -95,215,119.92
 compensation payable
 Total                                                      763,977,826.41                     764,529,046.36




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34. Estimated liabilities

                                                                                                           Unit: CNY
             Item                    Ending Balance             Opening Balance                      Cause
                                                                                          Product quality disputes,
 Pending litigation                        32,770,266.70                 27,454,443.34    traffic accident liability
                                                                                          disputes and others
                                                                                          Expenses for return,
 Product quality assurance               1,160,646,820.25              1,212,805,881.15
                                                                                          replacement and repair
 Others                                    17,226,995.29                 17,226,995.29    Labor social security
 Total                                   1,210,644,082.24              1,257,487,319.78
Other notes, including important assumptions and estimation descriptions related to important estimated liabilities:
none

35. Deferred income

                                                                                                           Unit: CNY
                                          Increase in         Decrease in
    Item           Opening Balance                                                  Ending Balance          Cause
                                         Current Period      Current Period
 Governm
 ent                2,473,072,814.33      450,563,427.73     261,313,324.33          2,662,322,917.73
 subsidies
 Total              2,473,072,814.33      450,563,427.73     261,313,324.33          2,662,322,917.73

36. Share capital

                                                                                                           Unit: CNY
                                                      Increase/Decrease (+/-)
                                                               Share
                                                              Transferr
                     Opening Balance       Issue of                                              Ending Balance
                                                      Bonu    ed from       Other    Subtot
                                             New
                                                       s      Accumul         s        al
                                            Shares
                                                                ation
                                                                Fund
 Total number
                      4,654,114,613.00                                                             4,654,114,613.00
 of shares
Other notes: none

37. Capital reserve

                                                                                                           Unit: CNY
                                                 Increase in Current     Decrease in Current
           Item            Opening Balance                                                        Ending Balance
                                                       Period                  Period
 Capital premium
                             9,384,981,147.23                                                      9,384,981,147.23
 (stock premium)
 Other capital
                              683,596,941.75          30,374,753.71                 50,722.51        713,920,972.95
 reserves
 Transfer from
                              370,787,004.20                                                         370,787,004.20
 capital reserve


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 under the previous
 accounting system
 Total                    10,439,365,093.18           30,374,753.71                  50,722.51   10,469,689,124.38
Other notes, including descriptions of changes and reasons for changes in the current period:
(1) The capital reserve (other capital reserves) is increased by CNY 30,374,753.71 in the current period, which is
caused by the recognition of share payment expenses in the waiting period of the Company's equity incentive plan;
(2) The capital reserve (other capital reserves) is decreased by CNY 50,722.51 in the current period, which is
caused by the Company's recognition of changes in other owner's equity of the investee in proportion to its equity,
other than net profit or loss, other comprehensive income and profit distribution.

38. Treasury shares

                                                                                                         Unit: CNY
                                                Increase in Current    Decrease in Current
         Item             Opening Balance                                                        Ending Balance
                                                      Period                 Period
 Treasury shares              310,460,486.38                                28,891,460.65          281,569,025.73
 Total                        310,460,486.38                                28,891,460.65          281,569,025.73

Other notes, including the description of changes and reasons for the changes in the current period: Treasury
shares are decreased by CNY 28,891,460.65 in the current period, which is caused by the cash dividends
distributed by the Company.




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  39. Other comprehensive income

                                                                                                                                                  Unit: CNY
                                                                        Amount Incurred in Current Period
                                                            Less: Profits   Less: Retained
                                                             and Losses        Earnings
                                                            Included in      Included in
                                             Amount            Other             Other                       After-tax        After-tax
                                                                                               Less:
                                        Incurred Before   Comprehensive Comprehensive                        Amount            Amount
       Item         Opening Balance                                                           income                                       Ending Balance
                                         Income Tax in     Income in the    Income in the                 Attributable to   Attributable
                                                                                                tax
                                           the Current        Previous         Previous                     the Parent       to Minority
                                                                                             expenses
                                             Period          Period and       Period and                    Company         Shareholders
                                                          Transferred in    Transferred in
                                                            the Current      the Current
                                                               Period           Period
I. Other
comprehensive
income which
                       -31,824,777.80                                                                                                        -31,824,777.80
cannot be
reclassified into
profits or losses
Including:
changes arising
from re-
                       -31,840,000.00                                                                                                        -31,840,000.00
measurement of
the defined
benefit plan
     Other
comprehensive
incomes that
cannot be
                            15,222.20                                                                                                             15,222.20
transferred into
profits or losses
under the equity
method
II. Other
comprehensive             -970,124.40       -44,893.81                                                        -44,893.81                      -1,015,018.21
income to be
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                                                                              Amount Incurred in Current Period
                                                                  Less: Profits   Less: Retained
                                                                   and Losses        Earnings
                                                                  Included in      Included in
                                                  Amount             Other             Other                       After-tax       After-tax
                                                                                                      Less:
                                             Incurred Before    Comprehensive Comprehensive                        Amount          Amount
      Item            Opening Balance                                                                income                                    Ending Balance
                                              Income Tax in      Income in the    Income in the                 Attributable to  Attributable
                                                                                                       tax
                                                the Current         Previous         Previous                     the Parent     to Minority
                                                                                                    expenses
                                                  Period           Period and       Period and                    Company       Shareholders
                                                                Transferred in    Transferred in
                                                                  the Current      the Current
                                                                     Period           Period
reclassified into
profits or losses
Including: other
comprehensive
incomes that can
be reclassified                288,891.11         -46,736.62                                                          -46,736.62                              242,154.49
into profits or
losses under the
equity method
      Exchange
differences
arising from
                            -1,259,015.51           1,842.81                                                            1,842.81                           -1,257,172.70
foreign currency
financial
statements
Total other
comprehensive              -32,794,902.20         -44,893.81                                                          -44,893.81                          -32,839,796.01
incomes
  Other notes, including the adjustment of the effective part of cash flow hedging profit or loss transferred to the initially recognized amount of the hedged item: none




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40. Special reserves

                                                                                                          Unit: CNY
                                                   Increase in Current    Decrease in Current
         Item             Opening Balance                                                         Ending Balance
                                                         Period                 Period
 Work safety cost            315,398,148.75             53,753,366.46          11,822,688.60        357,328,826.61
 Total                       315,398,148.75             53,753,366.46          11,822,688.60        357,328,826.61
Other notes, including descriptions of changes and reasons for changes in the current period: none

41. Surplus reserves

                                                                                                          Unit: CNY
                                                   Increase in Current    Decrease in Current
         Item             Opening Balance                                                         Ending Balance
                                                         Period                 Period
 Statutory surplus
                           2,444,688,413.12                                                       2,444,688,413.12
 reserve
 Discretionary
                             297,526,491.71                                                         297,526,491.71
 surplus reserves
 Total                     2,742,214,904.83                                                       2,742,214,904.83
Description of surplus reserves, including descriptions of changes and reasons for changes in the current period:
none

42. Undistributed profits

                                                                                                          Unit: CNY
                          Item                                     Current Period               Previous Period
 Undistributed profit at the end of the previous
                                                                      8,434,403,352.08              7,207,573,351.05
 period before adjustment
 Total undistributed profits at the beginning of the
                                                                                                       -1,233,011.80
 adjustment period (increase +, decrease -)
 Opening undistributed profits after adjustment                       8,434,403,352.08              7,206,340,339.25
 Add: net profits attributable to owners of parent
                                                                         170,153,887.32             3,268,978,566.54
 company in the current period
 Less: common stock dividends payable                                 3,025,174,498.45              2,325,326,934.50
 Ending undistributed profits                                         5,579,382,740.95              8,149,991,971.29

Details of undistributed profits at the beginning of adjustment:
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 changes in accounting policies impact the opening undistributed profit by CNY 0.00.
3)   The correction of major accounting errors impact the opening undistributed profit by CNY 0.00.
4)   The change in combination scope caused by the same control impacts the opening undistributed profit by
CNY 0.00.
5)   Other adjustments affect the opening undistributed profit by CNY 0.00 in total.



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43. Operating income and cost

                                                                                                       Unit: CNY
                    Amount Incurred in Current Period               Amount Incurred in the Previous Period
    Item
                       Income                   Cost                    Income                    Cost
 Main
                  21,805,259,709.38        20,220,312,403.72        76,987,149,061.47        70,634,457,478.13
 business
 Other
                   1,066,275,552.18           894,738,065.89         1,613,014,059.69          1,226,624,040.89
 business
 Total            22,871,535,261.56        21,115,050,469.61        78,600,163,121.16        71,861,081,519.02

Information related to performance obligations: none
Information related to the transaction price allocated to the remaining performance obligation: The income
corresponding to the performance obligations that have been signed at the end of the reporting period but have not
been performed or fully performed is CNY 688,028,547.33, of which CNY 344,014,273.67 is expected to be
recognized in 2022, and CNY 344,014,273.66 is expected to be recognized in 2023.

44. Taxes and surcharges

                                                                                                       Unit: CNY
                                                                              Amount Incurred in the Previous
                Item                   Amount Incurred in Current Period
                                                                                         Period
 Urban maintenance and
                                                            21,670,465.02                        108,431,696.85
 construction tax
 Educational surcharges                                     15,501,287.61                         77,452,122.60
 Resource tax                                                         0.00                            66,976.88
 Property tax                                               25,351,529.04                         28,853,205.15
 Land use tax                                               19,556,934.07                         22,426,465.38
 Vehicle and vessel use tax                                     54,706.28                             42,152.50
 Stamp duty                                                 23,538,154.45                         54,352,905.94
 Others                                                        635,765.71                          1,871,713.44
 Environmental protection tax                                  191,419.33                            446,817.50
 Total                                                     106,500,261.51                        293,944,056.24
Other notes: For the calculation and payment standards of various taxes and surcharges, please see VI "Taxes" of
Section X - Financial Report.

45. Selling expense

                                                                                                       Unit: CNY
                                                                              Amount Incurred in the Previous
                Item                   Amount Incurred in Current Period
                                                                                         Period
 Product quality assurance fee                             176,597,991.74                      718,752,013.09
 Employee compensation                                     196,348,174.29                      268,773,091.51
 Storage fee                                                56,206,844.19                       78,145,877.06
 Promotion fee                                              26,616,044.88                       70,732,519.68
 Packing cost                                               32,009,966.23                       42,824,355.80
 Business promotion expense                                 13,770,613.76                       37,134,114.89
 Travel expense                                             15,775,038.28                       23,822,881.91

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 Sales service fee                                        11,115,081.89                      22,628,930.52
 Rental fee                                               26,468,705.36                      18,534,347.14
 Insurance premium                                         3,179,938.52                      12,897,425.26
 Others                                                    8,402,329.68                      20,814,545.13
 Total                                                   566,490,728.82                   1,315,060,101.99
Other notes: none

46. Management cost

                                                                                                 Unit: CNY
                                                                           Amount Incurred in the Previous
                Item                   Amount Incurred in Current Period
                                                                                      Period
 Employee compensation                                   598,558,389.99                     702,107,637.10
 Fixed assets repair cost                                 69,924,624.89                     148,351,507.00
 Depreciation cost                                        59,078,687.98                      48,265,801.13
 Amortization of intangible assets                        44,522,259.21                      47,402,151.37
 Labor outsourcing fee                                    24,977,327.54                      29,651,038.22
 Information system service fee                           20,402,954.88                      20,710,778.41
 Sewage charge                                             8,702,172.92                      17,359,864.93
 Kinetic energy and workshop
                                                          12,918,192.98                      15,310,773.76
 heating cost
 Publicity expense                                         1,367,051.26                      12,894,654.74
 Test and inspection fees                                  3,884,917.30                      10,295,435.55
 Others                                                   42,683,537.57                      51,057,504.12
 Total                                                   887,020,116.52                   1,103,407,146.33
Other notes: none

47. R&D expenses

                                                                                                 Unit: CNY
                                                                           Amount Incurred in the Previous
                Item                   Amount Incurred in Current Period
                                                                                      Period
 Employee compensation                                   682,745,813.55                     683,076,330.02
 Test fee                                                106,067,297.14                     245,266,331.41
 Trial production cost                                    61,977,054.15                      93,023,045.50
 Depreciation cost                                       125,686,161.11                      84,179,968.23
 Joint R&D expenses                                        3,323,914.67                      35,916,023.29
 Design fee                                               26,118,317.60                      12,116,292.13
 Others                                                   10,397,664.42                      83,726,350.54
 Total                                                 1,016,316,222.64                   1,237,304,341.12
Other notes: none

48. Financial expense

                                                                                                 Unit: CNY
                                                                           Amount Incurred in the Previous
                Item                   Amount Incurred in Current Period
                                                                                      Period
 Interest income                                        -502,087,676.33                    -363,409,455.88
 Bill discount interest                                                                      29,871,041.52
 Net actuarial interest                                      166,532.74                          505,692.60
 Handling charge of financial                                 81,595.17                           78,881.73

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 institutions
 Interest expense                                           2,361,612.41
 Exchange gains and losses                                   -186,398.61                         -11,126.24
 Cash discount                                            -72,301,858.23                    -187,836,095.36
 Others                                                       812,221.77                       1,780,762.35
 Total                                                   -571,153,971.08                    -519,020,299.28
Other notes: none

49. Other incomes

                                                                                                   Unit: CNY
                                                                            Amount Incurred in the Previous
     Sources of Other Incomes           Amount Incurred in Current Period
                                                                                       Period
 Subsidy                                                  227,954,740.41                     122,295,408.72
 Others                                                     2,092,309.91                        1,544,409.87
 Total                                                    230,047,050.32                     123,839,818.59

50. Investment income

                                                                                                   Unit: CNY
                                                                            Amount Incurred in the Previous
                Item                    Amount Incurred in Current Period
                                                                                       Period
 Long-term equity investment
 income calculated with equity                            281,180,159.71                     386,449,232.03
 method
 Others                                                   -77,271,243.30                         770,487.34
 Total                                                    203,908,916.41                     387,219,719.37
Other notes: none

51. Credit impairment loss

                                                                                                   Unit: CNY
                                                                            Amount Incurred in the Previous
                Item                    Amount Incurred in Current Period
                                                                                       Period
 Bad debt loss of other receivables                         2,682,455.55                       1,530,546.41
 Bad debt loss of long-term
                                                            -4,660,539.00
 receivables
 Bad debts loss of notes receivable                            33,965.46                         125,200.28
 Bad debts loss of accounts
                                                          -19,882,625.36                       5,102,101.82
 receivable
 Total                                                    -21,826,743.35                       6,757,848.51
Other notes: none




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52. Asset impairment loss

                                                                                                       Unit: CNY
                                                                                Amount Incurred in the Previous
                Item                     Amount Incurred in Current Period
                                                                                           Period
 I. Inventory depreciation provision
 and contract performance cost                               -85,486,353.05                     -119,154,665.50
 impairment provision
 II. Loss from fixed assets
                                                                                                   -1,806,400.04
 impairment
 III. Loss from contractual asset
                                                                141,606.09                            -43,991.42
 impairment
 Total                                                       -85,344,746.96                     -121,005,056.96
Other notes: none

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                             42,431.19                          -183,677.14
 Total                                                           42,431.19                          -183,677.14

54. Non-operating income

                                                                                                       Unit: CNY
                                                                                              Amount included
                                        Amount Incurred in        Amount Incurred in the      in Current Non-
               Item
                                         Current Period             Previous Period            recurring Profit
                                                                                                  and Loss
 Income from compensation,
 liquidated damages and                          5,797,555.07                 10,827,226.78        5,797,555.07
 penalties
 Others                                         98,260,551.19                 19,928,172.34       98,260,551.19
 Total                                         104,058,106.26                 30,755,399.12      104,058,106.26

55. Non-operating expenses

                                                                                                       Unit: CNY
                                                                                              Amount included
                                        Amount Incurred in        Amount Incurred in the      in Current Non-
               Item
                                         Current Period             Previous Period            recurring Profit
                                                                                                  and Loss
 Donations                                      10,000,000.00                                     10,000,000.00
 Expenditure of compensation,
 liquidated damages and                          1,303,569.25                  1,532,890.06        1,303,569.25
 penalties
 Losses from damage and                            897,265.34                 12,300,936.35          897,265.34

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 scrapping of non-current assets
 Others                                                13,400.00                    514,876.93           13,400.00
 Total                                             12,214,234.59                 14,348,703.34       12,214,234.59
Other notes: none

56. Income tax expense

(1) Statement of income tax expenses

                                                                                                          Unit: CNY
                                                                                   Amount Incurred in the Previous
                 Item                    Amount Incurred in Current Period
                                                                                              Period
 Current income tax expenses                                 323,637,275.45                         860,525,525.79
 Deferred income tax expenses                               -323,808,949.95                        -408,082,488.44
 Total                                                             -171,674.50                      452,443,037.35

(2) Adjustment process of accounting profits and income tax expenses

                                                                                                          Unit: CNY
                           Item                                        Amount Incurred in Current Period
 Total profits                                                                                      169,982,212.82
 Income tax expense calculated at statutory/applicable
                                                                                                     42,495,553.21
 tax rate
 Effect of applying different tax rates by subsidiaries                                              27,476,124.88
 Effect of non-deductible costs, expenses and losses                                                  1,849,819.48
 Effect of using deductible losses of unrecognized
                                                                                                       -592,737.51
 deferred tax assets
 Profit or loss of joint ventures and associated
                                                                                                     -71,400,434.56
 enterprises calculated with the equity method
 Income tax expense                                                                                    -171,674.50
Other notes: none

57. Other comprehensive income

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) Other cash received related to operating activities

                                                                                                          Unit: CNY
                                                                                   Amount Incurred in the Previous
                 Item                    Amount Incurred in Current Period
                                                                                              Period
 Deposit                                                       3,131,394.83                          29,509,410.01
 Government subsidies received                               541,049,227.17                         145,206,067.67


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 Rental income                                                                                   36,073,991.02
 Other current accounts                                      300,985,625.90                     336,687,573.19
 Total                                                       845,166,247.90                     547,477,041.89
Description of other cash received related to operating activities: none

(2) Other cash paid related to operating activities

                                                                                                      Unit: CNY
                                                                               Amount Incurred in the Previous
                 Item                   Amount Incurred in Current Period
                                                                                          Period
 Cost-based expenditure                                      209,177,588.74                     531,664,760.16
 Payment of deposit                                            2,845,157.04                      10,596,902.21
 Other current accounts                                      624,431,327.44                     470,123,202.65
 Total                                                       836,454,073.22                   1,012,384,865.02
Description of other cash paid related to operating activities: none

(3) Other cash received related to investing activities

                                                                                                      Unit: CNY
                                                                               Amount Incurred in the Previous
                 Item                   Amount Incurred in Current Period
                                                                                          Period
 Interest received                                           441,265,670.20                     283,825,095.39
 Total                                                       441,265,670.20                     283,825,095.39
Description of other cash received related to investing activities: none

(4) Other cash paid related to financing activities

                                                                                                      Unit: CNY
                                                                               Amount Incurred in the Previous
                 Item                   Amount Incurred in Current Period
                                                                                          Period
 Donations                                                    10,000,000.00
 Principal and interest on lease
                                                                1,206,360.06
 liabilities
 Cash paid to acquire fixed assets
                                                                4,716,561.68
 under finance leases
 Total                                                        15,922,921.74
Description of other cash paid related to financing activities: none

59. Supplementary information of cash flow statement




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(1) Supplementary information of cash flow statement

                                                                                                  Unit: CNY
                                                                       Amount in the current    Amount in the
                      Supplementary Information
                                                                             period            Previous Period
 1. Reconciliation of net profit to cash flows from operating
 activities:
    Net Profit                                                               170,153,887.32     3,268,978,566.54
    Add: provision for impairment of assets                                  107,171,490.31       114,247,208.45
        Depreciation/consumption of fixed assets, oil and gas assets
                                                                             802,424,319.33       681,608,149.93
 and bearer biological assets
          Depreciation of right-of-use asset                                  36,125,831.02         3,801,400.02
          Amortization of intangible assets                                   52,038,602.60        54,155,785.69
          Amortization of long-term deferred expenses
         Losses from disposal of fixed assets, intangible assets and
                                                                                  -42,431.19          183,677.14
 other long-term assets (gains expressed with "-")
          Loss from retirement of fixed assets (gains expressed with
                                                                                 897,265.34        12,300,936.35
 "-")
          Loss from changes in fair value (gains expressed with "-")
          Financial expenses (gains expressed with "-")                     -499,726,063.92      -363,409,455.88
          Investment loss (gains expressed with "-")                        -203,908,916.41      -387,219,719.37
          Decrease of deferred tax assets (increases expressed with
                                                                            -258,660,870.66      -420,024,149.10
 “-”)
        Increase of deferred income tax liabilities (decrease
                                                                             -65,148,079.29        11,941,660.66
 expressed with “-”)
          Decrease of inventory (increase expressed with “-”)              232,662,937.16    14,063,389,203.50
          Decrease of operating receivables (increase expressed with
                                                                          -1,476,787,647.94    -36,575,555,720.83
 “-”)
          Increase in operating payables (decrease expressed with
                                                                           2,314,756,621.70    34,960,585,255.88
 “-”)
          Others                                                             231,180,781.26       100,731,564.19
          Net cash flows from operating activities                         1,443,137,726.63    15,525,714,363.17
 2. Major investment and financing activities not related to cash
 deposit and withdrawal:
    Conversion of debt into capital
    Current portion of convertible corporate bonds
    Fixed assets under financial lease
 3. Net changes in cash and cash equivalents:
    Ending balance of cash                                                28,270,082,742.95    29,924,339,101.76
    Less: opening balance of cash                                         30,542,676,891.89    14,786,680,218.82
    Add: ending balance of cash equivalents
    Less: opening balance of cash equivalents
    Net increase in cash and cash equivalents                             -2,272,594,148.94    15,137,658,882.94




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(2) Composition of cash and cash equivalents

                                                                                                         Unit: CNY
                    Item                           Ending Balance                         Opening Balance
 I. Cash                                                   28,270,082,742.95                      30,542,676,891.89
       Bank deposits available for
                                                           28,270,082,742.95                      30,542,676,891.89
 payment at any time
 II. Ending balance of cash and cash
                                                           28,270,082,742.95                      30,542,676,891.89
 equivalents
Other notes: none

60. Assets with restricted ownership or use right

                                                                                                         Unit: CNY
                    Item                        Ending Book Value                     Cause for Restrictions
                                                                               Housing maintenance fund,
 Monetary capital                                            52,309,930.91     security deposit for three types of
                                                                               personnel
 Total                                                       52,309,930.91
Other notes: none

61. Monetary items for foreign currency

(1) Monetary items for foreign currency

                                                                                                         Unit: CNY
                                 Ending Balance of                                          Ending Balance of
             Item                                              Conversion Rate
                                 Foreign Currency                                            Converted CNY
 Monetary capital
 Including: USD
           Euro
           HK dollar
 Accounts receivable
 Including: USD
           Euro                             1,877,549.65                       7.2197                13,555,345.21
           HK dollar
 Long-term borrowings
 Including: USD
           Euro
           HK dollar

Other notes: The main business place of FAW Jiefang Austria R&D Co., Ltd., a subsidiary of the Company, is Steyr,
Austria, with a registered capital of EUR 2 million and a recording currency of EUR.




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(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

62. Government subsidies

(1) Basic information of government subsidies

                                                                                                      Unit: CNY
                                                                                    Amount Included in the
          Type                    Amount                    Presented Items
                                                                                    Current Profit and Loss
                                                     Other incomes and
 Government subsidies             2,662,322,917.73   incomes from asset                        227,954,740.41
                                                     disposal

(2) Refund of government subsidies

□ Applicable     Not applicable

VIII.     Interests in Other Entities

1.   Interests in subsidiaries

(1) Composition of enterprise group


                                   Main                                         Shareholding
                                              Place of         Nature of         Proportion         Way of
     Name of Subsidiary           Business
                                             Registration      Business                            Acquisition
                                   Place                                       Direct   Indirect
                                                                                                   Business
                                                                                                   combination
 FAW JIEFANG                                                  Vehicle
                                 Changchun   Changchun                        100.00%              under
 AUTOMOTIVE CO., LTD.                                       manufacturing
                                                                                                   common
                                                                                                   control
                                                                                                   Under
 FAW Jiefang Automotive
                                 Changchun   Changchun       Vehicle sales    100.00%              common
 Sales Co., Ltd.
                                                                                                   control
                                                                Vehicle                            Under
 FAW Jiefang (Qingdao)
                                  Qingdao     Qingdao       manufacturing     100.00%              common
 Automotive Co., Ltd.
                                                               and sales                           control
                                                             Automotive                            Under
 FAW Jiefang Dalian Diesel
                                   Dalian      Dalian           engine        100.00%              common
 Engine Co., Ltd.
                                                            manufacturing                          control
                                                            Manufacturing                          Under
 Wuxi Dahao Power Co.,
                                   Wuxi         Wuxi        of automotive     100.00%              common
 Ltd.
                                                             components                            control

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                                                                    and
                                                                 accessories
                                                                 Technology                             Under
 FAW Jiefang Austria R&D
                                   Austria        Austria       research and     100.00%                common
 Co., Ltd.
                                                                development                             control
                                                                                                        Established
 FAW Jiefang New Energy
                                 Changchun      Changchun       Vehicle sales    100.00%                by
 Automotive Sales Co., Ltd.
                                                                                                        investment

2.    Interests in joint ventures or associated enterprises

(1) Important joint ventures or associated enterprises

                                                                                     Shareholding       Accounting
                                                                                      Proportion        Method for
                                     Main                                                               Investment
     Name of Joint Ventures or                    Place of         Nature of
                                    Business                                                              in Joint
      Associated Enterprises                     Registration      Business
                                     Place                                         Direct    Indirect   Ventures or
                                                                                                        Associated
                                                                                                        Enterprises
 First Automobile Finance Co.,                                     Financial                              Equity
                                   Changchun      Changchun                        21.84%
 Ltd.                                                               services                              method
 Sanguard Automobile                                               Financial                              Equity
                                   Changchun      Changchun                        17.50%
 Insurance Co., Ltd.                                               insurance                              method
 FAW Changchun Ansteel
                                                                   Industrial                             Equity
 Steel Processing and              Changchun      Changchun                        40.00%
                                                                 manufacturing                            method
 Distribution Co., Ltd.
 FAW Changchun Baoyou
                                                                   Industrial                             Equity
 Steel Processing and              Changchun      Changchun                        21.81%
                                                                 manufacturing                            method
 Distribution Co., Ltd.
                                                                 Manufacturing
 Changchun Wabco                                                 of automotive
                                                                                                          Equity
 Automotive Control System         Changchun      Changchun       components       40.00%
                                                                                                          method
 Co., Ltd.                                                             and
                                                                  accessories
                                                                  Application
 Suzhou Zhito Technology                                                                                  Equity
                                     Suzhou         Suzhou          software       30.59%
 Co., Ltd.                                                                                                method
                                                                 development
                                                                 Software and
 FAW Jiefang Fujie (Tianjin)                                      information                             Equity
                                     Tianjin        Tianjin                        10.00%
 Technology Industry Co., Ltd.                                     technology                             method
                                                                     services
                                                                 Software and
                                                                  information                             Equity
 SmartLink                           Nanjing        Nanjing                        35.00%
                                                                   technology                             method
                                                                     services

Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different from

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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 later according to the Articles of Association of the later, so the
Company can exert significant influence on Sanguard Automobile Insurance Co., Ltd. The Company holds 10.00%
of the shares of FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., but it sends three directors to the later
according to the Articles of Association of the later, so the Company can exert significant influence on FAW Jiefang
Fujie (Tianjin) Technology Industry Co., Ltd.




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        (2) Main financial information of important associated enterprises
                                                                                                                                                               Unit: CNY
                                                                           Ending Balance / Amount Incurred in Current Period
                    FAW Changchun       FAW Changchun        Changchun                                                  FAW Jiefang
                      Baoyou Steel        Ansteel Steel        Wabco                               Suzhou Zhito        Fujie (Tianjin)        Sanguard
                                                                                                                                                                   First Automobile
                     Processing and      Processing and      Automotive          SmartLink       Technology Co.,         Technology         Automobile
                                                                                                                                                                   Finance Co., Ltd.
                    Distribution Co.,   Distribution Co.,   Control System                             Ltd.             Industry Co.,    Insurance Co., Ltd.
                           Ltd.                Ltd.           Co., Ltd.                                                     Ltd.
Current assets        357,592,996.93      278,522,819.48     22,604,543.47      166,287,175.89      92,976,522.96      604,784,687.80      2,055,726,219.44         65,349,661,667.46
Non-current
                       68,567,565.49      69,553,448.80       28,703,770.83       8,218,097.08       58,196,011.61     125,280,925.23        956,918,773.23         96,449,276,778.83
assets
Total assets          426,160,562.42     348,076,268.28       51,308,314.30     174,505,272.97      151,172,534.57     730,065,613.03      3,012,644,992.67        161,798,938,446.29
Current
                      238,357,407.15     107,495,592.44        4,468,634.00     142,954,791.67      173,766,023.67     306,520,266.84        565,916,950.18        132,294,375,348.75
liabilities
Non-current
                        3,590,414.13                0.00                                            127,514,542.67      65,171,886.28      1,262,618,180.12          6,965,615,933.65
liabilities
Total liabilities     241,947,821.28     107,495,592.44        4,468,634.00     142,954,791.67      301,280,566.34     371,692,153.12      1,828,535,130.30        139,259,991,282.40
Minority
                                                                                                                                                                     1,354,930,888.76
equity
Equity
attributable to
shareholders of       184,212,741.14     240,580,675.84       46,839,680.30      31,550,481.30     -150,108,031.77     358,373,459.91      1,184,109,862.37         21,184,016,275.13
the parent
company
Shares of net
assets
calculated by          40,169,430.35      96,232,270.33       18,735,872.15      12,269,631.62      -45,918,046.92      35,837,345.99        207,219,225.92          4,626,440,866.37
shareholding
proportion
Adjustments                                -8,567,040.00                                             45,918,046.92        -112,884.94                                      -4,628,330.43
-Goodwill
-Unrealized
profits of
internal
transactions
-Others
Book value of
                       40,169,430.35      87,665,230.33       18,735,872.15      12,269,631.62                0.00      35,724,461.05        207,219,225.92          4,621,812,535.94
equity
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                                                                         Ending Balance / Amount Incurred in Current Period
                  FAW Changchun       FAW Changchun        Changchun                                                  FAW Jiefang
                    Baoyou Steel        Ansteel Steel        Wabco                                Suzhou Zhito       Fujie (Tianjin)       Sanguard
                                                                                                                                                          First Automobile
                   Processing and      Processing and      Automotive          SmartLink        Technology Co.,        Technology         Automobile
                                                                                                                                                          Finance Co., Ltd.
                  Distribution Co.,   Distribution Co.,   Control System                               Ltd.           Industry Co.,   Insurance Co., Ltd.
                         Ltd.                Ltd.           Co., Ltd.                                                     Ltd.
investment in
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with public
offer
Operating
                    713,063,817.33     193,852,315.00        1,615,734.44     77,641,765.61       9,159,426.31    518,166,168.85        296,473,754.70       3,422,338,661.73
income
Net Profit           15,266,188.29        4,513,671.66      -3,913,632.35    -40,090,487.17    -101,848,190.93       5,424,761.72        66,252,998.15       1,405,479,645.81
Net profit from
discontinued
operations
Other
comprehensive                                                                                                                              -217,810.65             -39,469.03
income
Total
comprehensive        15,266,188.29        4,513,671.66      -3,913,632.35    -40,090,487.17    -101,848,190.93       5,424,761.72        66,035,187.50       1,405,440,176.78
income
Dividends
received from
associated
                      6,300,012.21
enterprises in
the current
year




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                                                                         Opening Balance / Amount Incurred in Previous Period
                  FAW Changchun       FAW Changchun        Changchun
                                                                                                                   FAW Jiefang Fujie
                    Baoyou Steel        Ansteel Steel        Wabco                             Suzhou Zhito                                  Sanguard
                                                                                                                        (Tianjin)                             First Automobile
                   Processing and      Processing and      Automotive         SmartLink       Technology Co.,                              Automobile
                                                                                                                 Technology Industry                          Finance Co., Ltd.
                  Distribution Co.,   Distribution Co.,   Control System                            Ltd.                                Insurance Co., Ltd.
                                                                                                                        Co., Ltd.
                         Ltd.                Ltd.           Co., Ltd.
Current assets      372,141,757.88      244,723,023.42     23,309,549.83     169,220,705.74    148,696,572.21          462,222,981.21     1,969,614,739.80     40,131,178,525.09
Non-current
                    75,445,516.96       72,149,193.36       30,290,681.55       7,677,314.57       50,229,659.04       48,836,246.18        963,760,754.36    102,242,717,942.06
assets
Total assets       447,587,274.84      316,872,216.78       53,600,231.38    176,898,020.31       198,926,231.25      511,059,227.39      2,933,375,494.16    142,373,896,467.15
Current
                   245,495,948.34       80,678,406.33        2,846,918.73    106,172,619.73       122,890,098.03      159,239,378.61        351,776,062.47    115,901,925,957.98
liabilities
Non-current
                      4,253,586.77                                                                124,728,570.49                          1,361,119,198.26      5,338,477,309.41
liabilities
Total
                   249,749,535.11       80,678,406.33        2,846,918.73    106,172,619.73       247,618,668.52      159,239,378.61      1,712,895,260.73    121,240,403,267.39
liabilities
Minority
                                                                                 178,219.62                                                                     1,234,473,342.18
equity
Equity
attributable to
shareholders       197,837,739.73      236,193,810.45       50,753,312.73     70,547,180.96       -48,692,437.27      351,819,848.78      1,220,480,233.43     19,899,019,857.58
of the parent
company
Shares of net
assets
calculated by       43,140,497.54       94,477,524.18       20,301,325.09     24,691,513.34       -14,896,347.92       35,181,984.88        213,584,040.85      4,345,806,643.76
shareholding
proportion
Adjustments                              -8,567,040.00                          2,743,501.48       14,896,347.92                                                      -4,625,319.38
-Goodwill
-Unrealized
profits of
internal
transactions
-Others
Book value of
                    43,140,497.54       85,910,484.18       20,301,325.09     27,435,014.82                 0.00       35,181,984.88        213,584,040.85      4,341,181,324.38
equity

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                                                                          Opening Balance / Amount Incurred in Previous Period
                 FAW Changchun       FAW Changchun        Changchun
                                                                                                                  FAW Jiefang Fujie
                   Baoyou Steel        Ansteel Steel        Wabco                               Suzhou Zhito                                Sanguard
                                                                                                                      (Tianjin)                              First Automobile
                  Processing and      Processing and      Automotive           SmartLink       Technology Co.,                            Automobile
                                                                                                                 Technology Industry                         Finance Co., Ltd.
                 Distribution Co.,   Distribution Co.,   Control System                             Ltd.                               Insurance Co., Ltd.
                                                                                                                      Co., Ltd.
                        Ltd.                Ltd.           Co., Ltd.
investment in
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with public
offer
Operating
                  914,790,890.78      530,991,735.99                           22,514,120.71     41,156,020.53      1,152,304,641.48       361,691,496.28      4,618,818,450.60
income
Net Profit          15,386,409.45       11,440,957.11      -2,799,575.28         -763,126.65    -45,270,604.68          8,359,047.01        65,791,109.70      1,821,159,023.60
Net profit
from
discontinued
operations
Other
comprehensiv                                                                                                                                                          -33,088.66
e income
Total
comprehensiv        15,386,409.45       11,440,957.11      -2,799,575.28         -763,126.65    -45,270,604.68          8,359,047.01        65,791,109.70      1,821,125,934.94
e income
Dividends
received from
associated
                     4,907,799.92
enterprises in
the current
year




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(3) Excess losses incurred by joint ventures or associated enterprises

                                                                                                           Unit: CNY
                                                             Unrecognized Losses in
                                 Unrecognized Losses                                             Accumulated
  Name of Joint Ventures                                      the Current Period (or
                                 Accumulated in Prior                                       Unrecognized Losses at
 or Associated Enterprises                                   Net Profit Shared in the
                                       Periods                                               the End of the Period
                                                                 Current Period)
 Suzhou Zhito Technology
                                          -14,896,347.92                -31,025,803.29               -45,922,151.21
 Co., Ltd.
Other notes: none

IX. Risks Related to Financial Instruments

     The main financial instruments of the Company include monetary capital, notes receivable, accounts receivable,
     receivables financing, other receivables, current portion of non-current assets, other current assets, long-term
     receivables, notes payable, accounts payable, other payables, current portion of non-current liabilities, lease
     liabilities and long-term payables. 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 ensures to control above risks within
     a limited range by managing and monitoring these risk exposures.

   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).

    (1)   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.


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The Company's deposits are mainly deposited in state-owned banks and other large and medium-sized listed
banks, and the Company does not expect significant credit risks in its bank deposits.

The Company makes relevant policies to control the credit risk exposure of 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 will monitor the credit records of customers regularly, and take
measures such as written reminders, reduction 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 carrying amount 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 69.47% of the total accounts receivable of the
Company. Other receivables of the top five companies with debts account for 24.23% of the total other
receivables of the Company.

(2)   Liquidity risk

Liquidity risk refers to the risk of capital shortage when the Company performs its obligation requiring
settlement by cash or other financial assets.

The Company maintains and monitors cash and cash equivalents deemed adequate by the management during
liquidity risk management to meet the Company's operating needs and reduce 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 Company raises working capital by collecting funds generated from operating businesses as well as bank
loans and other loans. The unused bank loan limit of the Company was CNY 14.206 billion as of June 30, 2022.

(3)   Market risk




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 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, 2022.

 Exchange rate risk

 Exchange rate risk refers to the risk of fluctuations in fair value or future cash flows of financial instruments
 due to changes in foreign exchange rates. The exchange rate risk may arise from financial instruments valued
 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 euros. The
 balance of Company's assets and liabilities were all in CNY as of June 30, 2022, except a small amount of
 monetary capitals including the balance in euros. Therefore, the Company does not believe that the exchange
 rate risk faced is significant.

2. Capital management

The Company prepares capital management policy to ensure continuous operation of the Company, thus
providing returns to shareholders, benefiting other stakeholders, and maintaining the best capital structure to
reduce capital costs.

In order to maintain or adjust the capital structure, the Company may adjust the financing method, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equity
instruments, or sell assets to reduce debt.




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     The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by total
     assets). The asset-liability ratio of the Company was 66.05% as of June 30, 2022.

X. Disclosure of Fair Value

1.    Others

The fair value level can be divided as follows according to the lowest level of input value that is significant for the
whole fair value measurement:

Level 1: Quotation of the same assets or liabilities in active markets (unadjusted).

Level 2: Observable inputs other than market quotations for assets or liabilities in Level 1 are used directly (i.e.
prices) or indirectly (i.e. derived from prices).

Level 3: Any input value (non-observable input value) not based on observable market data is used for assets or
liabilities.

The Company's financial assets and financial liabilities measured at amortized cost mainly include monetary capital,
notes receivable, accounts receivable, other receivables, notes payable, accounts payable, other payables, etc.


XI. Related Parties and Related Transactions

1.    Information about parent company of the Company

                                                                                       Shareholding         Voting Right
                       Place of                                                        Proportion of        Proportion of
 Name of Parent                         Nature of
                       Registrati                           Registered Capital          the Parent           the Parent
   Company                              Business
                          on                                                          Company in the       Company in the
                                                                                         Company              Company
                                     Production and
                       Changch          sales of
 FAW                                                    CNY 78,000,000,000.00                  65.76%               65.76%
                         un         automobiles and
                                         parts
Description of the parent company of the Company: The ultimate controlling party of the Company is China FAW
Group Co., Ltd.
Other notes: The registered capital of the parent company has not changed in the reporting period.

2.    Subsidiaries of the Company

For details of subsidiaries of the Company, please refer to 1 in VIII "Interests in Other Entities" of Section X -
Financial Report.

3.    Information about joint ventures and associated enterprises of the Company

For details of important joint ventures or associated enterprises of the Company, please refer to 2 in VIII "Interests
in Other Entities" of Section X - Financial Report.

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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
                                                          Associated enterprise of the Company, the same
 Sanguard Automobile Insurance 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 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
Other notes: none

4.   Information about other related parties

                                                            Relationship between Other Related Parties and the
              Name of Other Related Parties
                                                                               Company
 China FAW Group Import & Export Co., Ltd.                The same ultimate controlling party
 FAW Changchun Automobile Trading Service Co.,
                                                          The same ultimate controlling party
 Ltd.
 Changchun Automotive Test Center Co., Ltd.               The same ultimate controlling party
 FAW Foundry Co., Ltd.                                    The same ultimate controlling party
 FAW New Energy Vehicle Sales (Shenzhen) 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 Mold Manufacturing Co., Ltd.                         The same ultimate controlling party
 FAW Harbin Light Automobile Co., Ltd.                    The same ultimate controlling party
 FAW Fuhua Ecological Co., Ltd.                           The same ultimate controlling party
 FAW Forging (Jilin) Co., Ltd.                            The same ultimate controlling party
 FAW-Volkswagen Automotive Co., Ltd.                      The same ultimate controlling party
 FAW (Dalian) International Logistics 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
 Chengdu Qiming Chunrong Information Technology
                                                          The same ultimate controlling party
 Co., Ltd.
 First Automobile Finance Co., Ltd.                       The same ultimate controlling party
 Sanguard Automobile Insurance Co., Ltd.                  The same ultimate controlling party

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                                                         Relationship between Other Related Parties and the
           Name of Other Related Parties
                                                                            Company
FAW Asset Management Co., Ltd.                          Other related parties
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
Ltd.
FAW Changchun Tianqi Process Equipment
                                                        Other related parties
Engineering Co., Ltd.
FAW Changchun Industrial Sodis Management
                                                        Other related parties
Service Co., Ltd.
FAW Changchun Industrial Shuixing Rubber and
                                                        Other related parties
Plastic Products Co., 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.
Shandong Pengxiang Automobile Co., Ltd.                 Other related parties
China Unicom Intelligent Network Technology Co.,
                                                        Other related parties
Ltd.
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.
Hainan Tropical Automobile Test Co., Ltd.               Other related parties
Harbin FAW Transmission Co., Ltd.                       Other related parties
Fawer Auto Parts Co., Ltd.                              Other related parties
Volkswagen FAW Engine (Dalian) Co., Ltd.                Other related parties
FAW Changchun Ansteel Steel Processing and
                                                        Other related parties
Distribution Co., Ltd.
Changchun Wabco Automotive Control System Co.,
                                                        Other related parties
Ltd.
Suzhou Zhito Technology Co., Ltd.                       Other related parties
FAW Changchun Baoyou Steel Processing and
                                                        Other related parties
Distribution Co., Ltd.
FAW Jiefang Fujie (Tianjin) Technology Industry Co.,
                                                        Other related parties
Ltd.

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                                                          Relationship between Other Related Parties and the
              Name of Other Related Parties
                                                                             Company
 SmartLink                                              Other related parties
Other notes: Changchun First Automobile Service Trade Co., Ltd. is renamed as FAW Fuhua Ecological Co., Ltd.

5.   Information of 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                             Approved                          Amount Incurred
                                    Amount Incurred                             Transaction
 Related Parties       Related                             Transaction                         in the Previous
                                    in Current Period                            Amount
                     Transaction                             Amount                                 Period
                                                                                 Exceeded
                        Goods
 China FAW             purchase
 Group Co., Ltd.          and
                                       69,322,916.67       614,160,000.00           No          224,854,895.70
 and other           reception of
 related parties         labor
                       services
                        Goods
                       purchase
                          and
 FAW                                  137,571,360.06       534,290,000.00           No          283,346,731.59
                     reception of
                         labor
                       services
                        Goods
 China FAW             purchase
 Group Import             and
                                       45,346,979.72       959,820,000.00           No           65,324,202.38
 & Export Co.,       reception of
 Ltd.                    labor
                       services
                        Goods
                       purchase
 FAW Foundry              and
                                      264,317,382.66      1,452,440,000.00          No        1,054,834,595.19
 Co., Ltd.           reception of
                         labor
                       services
                        Goods
                       purchase
 FAW Forging              and
                                      195,192,720.59       917,570,000.00           No          590,578,809.96
 (Jilin) Co., Ltd.   reception of
                         labor
                       services
 FAW Logistics          Goods         155,444,625.15       560,080,000.00           No          298,038,347.80


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                                                                          Is the
                  Content of                           Approved                      Amount Incurred
                                 Amount Incurred                       Transaction
Related Parties     Related                           Transaction                     in the Previous
                                 in Current Period                      Amount
                  Transaction                           Amount                             Period
                                                                        Exceeded
Co., Ltd.           purchase
                       and
                  reception of
                      labor
                    services
FAW Logistics        Goods
(Changchun          purchase
Lushun)                and
                                    29,848,441.66     145,350,000.00       No           35,742,303.72
Storage and       reception of
Transportation        labor
Co., Ltd.           services
                     Goods
                    purchase
FAW Logistics
                       and
(Qingdao) Co.,                     132,447,632.30     422,000,000.00       No          291,389,088.99
                  reception of
Ltd.
                      labor
                    services
                     Goods
                    purchase
FAW Mold
                       and
Manufacturing                        7,752,418.52     137,050,000.00       No
                  reception of
Co., Ltd.
                      labor
                    services
                     Goods
Qiming              purchase
Information            and
                                    31,889,903.88     294,580,000.00       No          135,166,223.28
Technology        reception of
Co., Ltd.             labor
                    services
                     Goods
                    purchase
Changchun
                       and
FAWSN Group                        166,091,546.54     933,850,000.00       No          756,711,000.42
                  reception of
Co., Ltd.
                      labor
                    services
                     Goods
Changchun
                    purchase
FAWAY
                       and
Automobile                         125,298,339.31     526,170,000.00       No          456,390,204.85
                  reception of
Components
                      labor
Co., Ltd.
                    services
The Ninth            Goods          99,069,799.94     823,850,000.00       No          210,394,510.27


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                                                                           Is the
                  Content of                           Approved                       Amount Incurred
                                 Amount Incurred                        Transaction
Related Parties     Related                           Transaction                      in the Previous
                                 in Current Period                       Amount
                  Transaction                           Amount                              Period
                                                                         Exceeded
Institute of        purchase
Project                and
Planning &        reception of
Research of           labor
China               services
Machinery
Industry
(FIPPR)
FAW                  Goods
Changchun           purchase
Ansteel Steel          and
                                   115,077,342.40     418,270,000.00        No          317,657,774.90
Processing and    reception of
Distribution          labor
Co., Ltd.           services
FAW                  Goods
Changchun           purchase
Baoyou Steel           and
                                   124,182,905.17     266,470,000.00        No          194,439,610.80
Processing and    reception of
Distribution          labor
Co., Ltd.           services
                     Goods
                    purchase
                       and
SmartLink                           56,377,549.17     271,710,000.00        No            5,216,266.62
                  reception of
                      labor
                    services
                     Goods
                    purchase
Changchun
                       and
Yidong Clutch                      111,271,220.54     570,710,000.00        No          348,405,230.38
                  reception of
Co., Ltd.
                      labor
                    services
                     Goods
                    purchase
Fawer Auto             and
                                   581,666,983.45    2,737,930,000.00       No        1,845,693,609.89
Parts Co., Ltd.   reception of
                      labor
                    services
Shandong             Goods
Pengxiang           purchase
                                   136,864,850.80     922,870,000.00        No          561,421,389.97
Automobile             and
Co., Ltd.         reception of


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                                                                                     Is the
                     Content of                                 Approved                         Amount Incurred
                                     Amount Incurred                              Transaction
 Related Parties       Related                                 Transaction                        in the Previous
                                     in Current Period                             Amount
                     Transaction                                 Amount                                Period
                                                                                   Exceeded
                        labor
                       services
Statement of Goods Sales/Rendering of Services
                                                                                                          Unit: CNY
                                                         Content of
                                                                          Amount Incurred in     Amount Incurred in
                   Related Parties                         Related
                                                                           Current Period        the Previous Period
                                                         Transaction
 FAW Harbin Light Automobile Co., Ltd.              Sales of goods               5,885,228.80            9,630,298.34
 China FAW Group Import & Export Co., Ltd.          Sales of goods           2,292,647,625.45          963,019,948.04
 FAW Logistics (Qingdao) Co., Ltd.                  Sales of goods               7,736,830.19
 FAW Fuhua Ecological Co., Ltd.                     Sales of goods             115,783,309.46         2,201,089,212.15
 Changchun Automotive Test Center Co., Ltd.         Sales of goods               5,531,086.80
 Volkswagen FAW Engine (Dalian) Co., Ltd.           Sales of goods               8,250,254.03
 FAW Hongta Yunnan Automobile
                                                    Sales of goods             16,606,503.41            32,546,371.08
 Manufacturing Co., Ltd.
 Suzhou Zhito Technology Co., Ltd.                  Sales of goods             22,641,300.00
 FAW Jiefang Fujie (Tianjin) Technology
                                                    Sales of goods            342,974,356.23          1,238,897,249.87
 Industry Co., Ltd.
 FAW Changchun Comprehensive Utilization
                                                    Sales of goods             83,819,550.59           201,527,116.73
 Co., Ltd.
 China FAW Group Co., Ltd. and other related
                                                    Sales of goods             19,886,116.10            57,602,081.22
 parties
 FAW Foundry Co., Ltd.                              Sales of goods                                      43,302,922.22
Description of related transactions of purchasing or selling goods and providing or receiving labor services: none

(2) Related entrusted management/contracting and entrusted management/outsourcing

Statement of Entrusted Management/Contracting of the Company:
                                                                                                          Unit: CNY
                                                                                                       Entrustment
                                                                                      Pricing Basis   Income/Cont
                                      Type of                          Termination          of           racting
 Name of the        Name of the                    Start Date of
                                     Entrusted/                          date of       Entrustment       Income
 Client/Emplo      Trustee/Contrac                 Entrustment/
                                     Contracted                        Entrustment/   Income/Cont      Recognized
      yer                tor                       Contracting
                                      Assets                           Contracting       racting          in the
                                                                                         Income          Current
                                                                                                          Period
                   FAW JIEFANG
                   AUTOMOTIV
                                       Equity                                         Entrustment
 China FAW         E CO., LTD.                     November 1,         October 31,
                                     entrustmen                                       Management          0.00
 Co., Ltd.         and its                            2019                2022
                                          t                                           Agreement
                   designated
                   entities



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(3) Related lease
The Company as the lessor:
                                                                                             Unit: CNY
                                                           Lease Income             Lease Income
    Name of the Lessee        Type of Leased Assets       Recognized in the       Recognized in the
                                                           Current Period          Previous Period
 Changchun Automotive
                             Houses and buildings                 2,678,255.50            1,386,905.14
 Test Center Co., Ltd.
 FAW                         Houses and buildings                 3,022,825.56              844,614.54
 Fawer Auto Parts Co.,
                             Houses and buildings                   197,702.76
 Ltd.
 FAW Changchun
 Communication               Land                                   109,541.28
 Technology Co., Ltd.
 Shandong Pengxiang
                             Houses and buildings                   377,350.46
 Automobile Co., Ltd.




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The Company as the lessee:
                                                                                                                                                     Unit: CNY
                              Rental Expenses for      Variable Lease
                               Simplified Short-       Payments not
                                                                                                         Interest Expense on Lease     Increased Right-of-use
                               term Leases and       Included in Lease             Rent Paid
                                                                                                            Liabilities Assumed                Assets
                               Low-value Asset           Liabilities
                  Type of           Leases             Measurement
 Name of the
                  Leased
   Lessor                     Amount     Amount      Amount     Amount                                                                Amount
                  Assets                                                    Amount          Amount        Amount         Amount                     Amount
                              Incurred   Incurred    Incurred   Incurred                                                              Incurred
                                                                           Incurred in     Incurred in   Incurred in    Incurred in               Incurred in
                                 in        in the       in       in the                                                                  in
                                                                             Current      the Previous     Current     the Previous              the Previous
                               Current   Previous     Current   Previous                                                               Current
                                                                             Period          Period        Period         Period                    Period
                               Period     Period      Period     Period                                                                Period
                House and
 FAW Group                                                                 2,132,938.00   2,603,816.82 262,865.98       346,980.30               15,080,040.03
                land
                Houses and
 FAW                                                                       4,427,832.76   8,371,019.30 773,218.73      1,045,370.42               8,605,787.96
                buildings
 FAW Asset
                Houses and
 Management                                                                 157,096.00                     5,750.02                                426,014.07
                buildings
 Co., Ltd.
 FAW
 Changchun
 Automobile     Sightseeing
                                         39,568.14
 Trading        vehicle
 Service Co.,
 Ltd.




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Description of related lease

The Company as the lessor:
1.   The Company leases the house located at No. 1063, Chuangye Street to Changchun Automotive Test Center
Co., Ltd., with an area of 14,924.5 square meters, an annual rent of CNY 5,165,800 (including tax), and a lease term
from April 1, 2020 to March 31, 2023, according to the house lease contract (JF-ZNB20200010) signed between
them.
2.   The Company leases the land used by the test center located in the commercial courtyard of Jiefang Company
to Changchun Automotive Test Center Co., Ltd., with an area of 5,500 square meters, an annual rent of CNY
451,600 (including tax), and a lease term from April 1, 2020 to March 31, 2023, according to the house lease contract
(JF-ZNB20200021) signed between them.
3.   The Company leases the factory site located at No.2 Loushan Road, Licang District, Qingdao City to
Changchun Automotive Test Center Co., Ltd., with a total construction area of 532 ㎡ and a land area of 7.7 mu,
and a lease term from January 1, 2022 to December 31, 2024, according to the house lease contract signed between
them. The rent of the leased area in the first year is CNY 213,100 (including tax), which will increase by 3% from
the next year.
4.   The Company leases the No.2 workshop of Gearbox Factory, Transmission Division, FAW Shaft Gear Park
in the Green Park, Changchun City, Jilin Province, with a lease area of 2,097.9 square meters, an annual rent of
CNY 844,600 (including tax) and a lease term from January 1, 2022 to December 31, 2022, to China FAW Co.,
Ltd. (Party B) for heat treatment and processing of gears according to the house lease contract signed between them.
5.   The Company leases the houses located in the east commercial courtyard and the Nong'an test site to China
FAW Co., Ltd., with an area of 5,331.41 square meters, an annual rent of CNY 1,055,600 (including tax), and a
lease term from April 1, 2020 to March 31, 2023, according to the house lease contract signed between them.
6.   The Company leases the assembly workshop plot located in Liuzhou Jiefang Factory, Xiushuiheng 6th Road,
Yufeng District, Liuzhou City to Drive Shaft Branch of Fawer Auto Parts Co., Ltd., with an area of 1,752 ㎡, an
annual rent of CNY 431,000 (including tax), and a lease term from July 1, 2021 to June 30, 2024, according to the
workshop lease contract signed between them.
7.   The Company leases two lands located in the Transmission Division of FAW Shaft Gear Park in Changchun
Green Park, Jilin Province, with a leased area of 22 square meters for each, to FAW Changchun Communication
Technology Co., Ltd. (Party B) according to the land lease contract signed between them to build communication
base stations for China Telecom, China Mobile and China Unicom. The lease term of base station 1 is from
December 10, 2020 to December 9, 2023, with an annual rent of CNY 12,000 (including tax); the lease term of base
station 2 is from July 20, 2020 to July 19, 2023, with an annual rent of CNY 12,000 (including tax).
8.   The Company leases the land located 30 meters east of the intersection of Benchi Road and Jiefang Viaduct,
with an area of 22 square meters, an annual rent of CNY 12,000 (including tax) and a lease term from July 20, 2020
to January 19, 2022; the green belt (300 meters due east of Gate 7) located at the intersection of Road 1 and Road

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13, with an area of 22 square meters, an annual rent of CNY 12,000 (including tax), and a lease term from July 20,
2020 to July 19, 2023, to FAW Changchun Communication Technology Co., Ltd. according to the land lease
contract signed between them.
9.   The Company leases the assembly workshop plot located in Liuzhou Jiefang Factory, Xiushuiheng 6th Road,
Yufeng District, Liuzhou City to Shandong Pengxiang Automobile Co., Ltd., with an area of 3344 ㎡, an annual
rent of CNY 822,600 (including tax), and a lease term from July 1, 2021 to June 30, 2024, according to the workshop
lease contract signed between them.


The Company as the lessee:
1.   China FAW Group Co., Ltd. leases the land located at Tangnan First Branch, Liangxi District, Wuxi City, with
a lease term from April 1, 2020 to March 31, 2025, and an annual rent of CNY 4,265,900 (including tax), to the
Company according to the lease agreement signed between them.
2.   China FAW Co., Ltd. leases the tool workshop for storage located at No. 83, Dongfeng Street, with an area of
10000 ㎡ and an annual rent of CNY 2,848,991 (including tax) to the Transmission Branch of FAW JIEFANG
AUTOMOTIVE CO., LTD., and that with an area of 3868 ㎡ and annual rent of CNY 1,001,809 (including tax) to
the Truck Factory, and both with a lease term from January 1, 2021 to December 31, 2023, according to the lease
agreement signed between the Company and China FAW Co., Ltd.
3.   China FAW Co., Ltd. leases the No.1 workshop of Axle Company located at No.83 Dongfeng Street, with an
area of 30,203.05 ㎡, an annual rent of CNY 8,371,019.3 (including tax) and a lease term from April 1, 2020 to
May 31, 2025, to the Transmission Branch of FAW JIEFANG AUTOMOTIVE CO., LTD. according to the lease
agreement signed between the Company and China FAW Co., Ltd.
4.   China FAW Co., Ltd. leases 18 buildings in total located at Dongfeng Avenue and Heping Avenue, with an
area of 3,496.19 ㎡, an annual rent of CNY 734,227.22 (including tax) and a lease term from April 1, 2020 to March
31, 2025, to FAW JIEFANG AUTOMOTIVE CO., LTD. according to the lease agreement signed between the
Company and China FAW Co., Ltd.
5.   China FAW Co., Ltd. leases the house located at No. 45, Heping Street to the Company, with an area of
5,278.75 square meters, an annual rent of CNY 1,557,231.25 (including tax), and a lease term from April 1, 2020
to March 31, 2025, according to the lease contract signed between them.
6.   FAW Asset Management Co., Ltd. leases the residential house located at No. 18 Xijiang Road, Liuzhou City,
with an area of 2,379.5 ㎡, an annual rent of CNY 1,570,960,000 (including tax) and a lease term from January 1,
2020 to December 31, 2022, to Liuzhou Branch for use according to the lease agreement signed between the
Company and FAW Asset Management Co., Ltd.




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7.   FAW Changchun Automobile Trading Service Co., Ltd. leases three Hongqi H5 cars to the Company as
sightseeing vehicles, with a rent of CNY 4,968 (including tax)/month/car, and a lease term from January 4, 2019 to
January 4, 2022, according to the car lease contract signed between them.

(4) Remuneration of key management personnel

                                                                                                            Unit: CNY
                                                                                 Amount Incurred in the Previous
                  Item                    Amount Incurred in Current Period
                                                                                            Period
 Remuneration of key management
                                                              15,228,996.18                             17,555,413.98
 personnel

(5) Other related transactions

① Interest income and interest expense
             Related Parties             Content of Related    Amount Incurred in          Amount Incurred in the
                                            Transaction        Current Period (CNY          Previous Period (CNY
                                                                     10,000)                      10,000)
 First Automobile Finance Co., Ltd.       Interest income                      17,744.08                   18,486.16



6.   Receivables and payables of related parties

(1) Receivables

                                                                                                            Unit: CNY
                                                    Ending Balance                          Opening Balance
 Project Name         Related Parties                          Provision for                              Provision for
                                             Book Balance                           Book Balance
                                                                Bad Debts                                  Bad Debts
 Accounts
                   FAW                         3,224,356.65        10,982.25               148,038.86            503.33
 receivable
                   China FAW Group
 Accounts
                   Import & Export           771,150,288.04       827,499.69        133,665,249.08           133,665.25
 receivable
                   Co., Ltd.
                   FAW Hongta
 Accounts          Yunnan Automobile
                                              52,763,670.55     2,902,224.84          43,738,644.78          168,532.52
 receivable        Manufacturing Co.,
                   Ltd.
                   Changchun
 Accounts
                   Automotive Test             5,617,679.60        19,100.11           3,953,858.47           13,443.11
 receivable
                   Center Co., Ltd.
 Accounts          FAW Jingye Engine
                                                                                       1,820,957.23        1,820,957.23
 receivable        Co., Ltd.
 Accounts          FAW Asset                                                           1,051,901.58            2,484.47

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                                               Ending Balance                    Opening Balance
Project Name     Related Parties                         Provision for                      Provision for
                                        Book Balance                       Book Balance
                                                          Bad Debts                          Bad Debts
receivable     Management Co.,
               Ltd.
               FAW-Volkswagen
Accounts
               Automotive Co.,                                                 343,200.00          1,166.88
receivable
               Ltd.
               FAW Harbin Light
Accounts
               Automobile Co.,                                                 157,790.76           536.49
receivable
               Ltd.
               FAW Changchun
Accounts
               Yanfeng Visteon                                                  63,207.42           214.91
receivable
               Electronics Co., Ltd.
Accounts       Fawer Auto Parts
                                              8,972.71            30.51         58,079.00           197.47
receivable     Co., Ltd.
               FAW Changchun
Accounts       Communication
                                             66,000.00           224.40
receivable     Technology Co.,
               Ltd.
               FAW Changchun
Accounts
               Comprehensive              1,721,263.44          5,852.29
receivable
               Utilization Co., Ltd.
               China FAW Group
Prepayments    Import & Export          622,728,933.44                     299,415,808.16
               Co., Ltd.
               The Ninth Institute
               of Project Planning
Prepayments    & Research of China       69,084,800.00                      31,280,800.00
               Machinery Industry
               (FIPPR)
               FAW Hongta
               Yunnan Automobile
Prepayments                                                                 23,451,243.21
               Manufacturing Co.,
               Ltd.
               FAW Mold
Prepayments    Manufacturing Co.,        13,751,495.26                      11,355,895.26
               Ltd.
               Qiming Information
Prepayments    Technology Co.,            7,441,683.80                       7,041,353.80
               Ltd.
Prepayments    SmartLink                  4,494,055.79                       2,364,055.79
               FAW Changchun
               Tianqi Process
Prepayments                                                                    537,315.00
               Equipment
               Engineering Co.,

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                                                  Ending Balance                       Opening Balance
 Project Name     Related Parties                            Provision for                          Provision for
                                         Book Balance                          Book Balance
                                                              Bad Debts                              Bad Debts
                Ltd.
                FAW Changchun
                Communication
 Prepayments                                     30,749.36
                Technology Co.,
                Ltd.
 Other                                        8,227,110.28    5,675,883.38
                FAW                                                               8,227,110.28       5,675,883.38
 receivables
                FAW Asset
 Other
                Management Co.,                 482,529.21       10,431.31         241,717.46           10,431.31
 receivables
                Ltd.
                FAW Mold
 Other
                Manufacturing Co.,                                                   79,212.46           4,586.40
 receivables
                Ltd.
 Other          FAW Logistics Co.,
                                                                                     59,402.96           3,439.43
 receivables    Ltd.
 Other          FAW Forging (Jilin)
                                                                                     37,596.07           2,176.81
 receivables    Co., Ltd.
                FAW Logistics
                (Changchun
 Other
                Lushun) Storage and                                                      5,801.51          335.91
 receivables
                Transportation Co.,
                Ltd.
                The Ninth Institute
                of Project Planning
 Other
                & Research of China          10,728,984.01       10,728.98
 receivables
                Machinery Industry
                (FIPPR)

(2) Payables

                                                                                                      Unit: CNY
 Project Name                  Related Parties                   Ending Book Balance       Opening Book Balance
 Accounts
                FAW Forging (Jilin) Co., Ltd.                            39,966,359.95              220,555,696.82
 payable
 Accounts
                FAW Foundry Co., Ltd.                                    28,369,138.75              183,830,708.06
 payable
 Accounts
                Fawer Auto Parts Co., Ltd.                             180,929,957.34               169,640,260.34
 payable
 Accounts       Changchun FAWAY Automobile Components
                                                                              3,781.55              152,148,699.11
 payable        Co., Ltd.
 Accounts
                Changchun FAWSN Group Co., Ltd.                          20,634,355.59              129,367,496.49
 payable
 Accounts       SmartLink                                                28,120,257.40               99,415,297.12

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Project Name                 Related Parties                Ending Book Balance    Opening Book Balance
payable
Accounts
               Shandong Pengxiang Automobile Co., Ltd.           162,051,000.42            73,531,515.19
payable
Accounts
               FAW Logistics (Qingdao) Co., Ltd.                 105,082,009.75            68,025,114.39
payable
Accounts
               Changchun Yidong Clutch Co., Ltd.                  42,931,709.74            67,047,152.21
payable
Accounts
               FAW Logistics Co., Ltd.                            82,617,632.36            57,571,100.02
payable
Accounts
               Qiming Information Technology Co., Ltd.            24,029,396.23            41,883,498.37
payable
Accounts
               FAW                                                17,472,584.58            38,452,564.39
payable
Accounts
               Changchun Automotive Test Center Co., Ltd.             59,360.00            35,547,810.00
payable
Accounts       FAW Logistics (Changchun Lushun) Storage
                                                                  15,247,389.29            17,089,430.56
payable        and Transportation Co., Ltd.
Accounts       FAW Changchun Ansteel Steel Processing
                                                                                           14,533,080.61
payable        and Distribution Co., Ltd.
Accounts       FAW Changchun Baoyou Steel Processing
                                                                                            9,272,615.36
payable        and Distribution Co., Ltd.
Accounts       FAW (Dalian) International Logistics Co.,
                                                                   2,080,121.61             6,106,590.35
payable        Ltd.
Accounts       FAW Changchun Automobile Trading Service
                                                                           0.82             5,721,646.90
payable        Co., Ltd.
Accounts
               Suzhou Zhito Technology Co., Ltd.                                            4,487,478.33
payable
Accounts
               FAW Harbin Light Automobile Co., Ltd.                                        4,172,366.61
payable
Accounts       FAW Changchun Comprehensive Utilization
                                                                    3,467,411.69            3,294,031.20
payable        Co., Ltd.
Accounts       FAW Changchun Industrial Sodis
                                                                     179,898.40             2,790,797.22
payable        Management Service Co., Ltd.
Accounts
               FAW Mold Manufacturing Co., Ltd.                       64,800.00             2,434,279.91
payable
Accounts
               FAW Fuhua Ecological Co., Ltd.                                               2,375,954.69
payable
Accounts
               Wuxi Sawane Spring Co., Ltd.                          472,994.41             1,555,556.34
payable
Accounts
               Sanguard Automobile Insurance Co., Ltd.             2,054,319.50             1,283,140.98
payable
               Changchun Automotive Economic and
Accounts       Technological Development Zone
                                                                                             961,433.87
payable        Environmental Sanitation and Cleaning Co.,
               Ltd.

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Project Name                 Related Parties                Ending Book Balance   Opening Book Balance
Accounts       FAW Changchun Communication Technology
                                                                       3,982.00             843,342.80
payable        Co., Ltd.
               The Ninth Institute of Project Planning &
Accounts
               Research of China Machinery Industry               79,280,606.16             735,721.78
payable
               (FIPPR)
Accounts       FAW Changchun Industrial Shuixing Rubber
                                                                     508,293.86             676,420.56
payable        and Plastic Products Co., Ltd.
Accounts
               Changchun FAW United Casting Company                                         667,354.32
payable
Accounts
               China FAW Group Import & Export Co., Ltd.           3,208,260.56             642,326.53
payable
Accounts       FAW Changchun Yanfeng Visteon Electronics
                                                                      40,247.56             478,759.95
payable        Co., Ltd.
Accounts
               Hainan Tropical Automobile Test Co., Ltd.              31,977.00             437,094.00
payable
Accounts
               FAW Group                                                 831.00             367,385.00
payable
Accounts       FAW Hongta Yunnan Automobile
                                                                                            175,200.00
payable        Manufacturing Co., Ltd.
Accounts       Chengdu Qiming Chunrong Information
                                                                                            159,215.21
payable        Technology Co., Ltd.
Accounts       FAW Jiefang Fujie (Tianjin) Technology
                                                                     114,974.64             156,685.65
payable        Industry Co., Ltd.
Accounts
               FAW Jilin Automobile Co., Ltd.                                               126,000.00
payable
Accounts
               Harbin FAW Transmission Co., Ltd.                      93,627.49              93,627.49
payable
Accounts       Hongqi Intelligent Mobility Technology
                                                                       2,541.38              16,448.28
payable        (Beijing) Co., Ltd.
Accounts       China Unicom Intelligent Network
                                                                                             12,984.00
payable        Technology Co., Ltd.
Accounts
received in    Changchun Automotive Test Center Co., Ltd.          2,471,935.24            1,288,392.99
advance
Accounts
received in    Shandong Pengxiang Automobile Co., Ltd.                                      205,656.00
advance
Accounts
received in    FAW Logistics Co., Ltd.                                    11.16
advance
Accounts
               FAW Jiefang Fujie (Tianjin) Technology
received in                                                       33,404,094.97
               Industry Co., Ltd.
advance
Contract       FAW Jiefang Fujie (Tianjin) Technology
                                                                     796,299.12           79,085,729.95
liabilities    Industry Co., Ltd.

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Project Name                  Related Parties              Ending Book Balance    Opening Book Balance
Contract
               FAW Fuhua Ecological Co., Ltd.                                             36,893,039.11
liabilities
Contract
               Suzhou Zhito Technology Co., Ltd.                                          12,317,158.00
liabilities
Contract       FAW Changchun Comprehensive Utilization
                                                                                           4,364,564.62
liabilities    Co., Ltd.
Contract
               China FAW Group Import & Export Co., Ltd.               1,341.83             632,188.13
liabilities
Contract
               Shandong Pengxiang Automobile Co., Ltd.               436,036.83             492,805.88
liabilities
Contract
               FAW Asset Management Co., Ltd.                                                 23,388.96
liabilities
Contract       FAW New Energy Vehicle Sales (Shenzhen)
                                                                                               8,060.00
liabilities    Co., Ltd.
Contract
               Harbin FAW Transmission Co., Ltd.                         134.65                 134.65
liabilities
Contract
               FAW Logistics Co., Ltd.                                                            11.16
liabilities
Contract       FAW Changchun Comprehensive Utilization
                                                                   2,457,089.66
liabilities    Co., Ltd.
Other
               FAW Group                                         233,303,791.17          233,303,791.17
payables
Other
               FAW                                                 6,603,120.79          216,522,779.89
payables
               The Ninth Institute of Project Planning &
Other
               Research of China Machinery Industry              158,016,708.38          178,013,170.48
payables
               (FIPPR)
Other
               FAW Mold Manufacturing Co., Ltd.                   42,730,081.53           42,797,927.25
payables
Other
               Qiming Information Technology Co., Ltd.            15,990,903.00           37,234,276.05
payables
Other          FAW Jiefang Fujie (Tianjin) Technology
                                                                  20,220,000.00           20,700,000.00
payables       Industry Co., Ltd.
Other
               China FAW Group Import & Export Co., Ltd.           2,679,534.40            2,782,645.30
payables
Other
               FAW Fuhua Ecological Co., Ltd.                                              1,397,786.21
payables
Other
               Shandong Pengxiang Automobile Co., Ltd.             2,036,533.19            1,050,000.00
payables
Other
               Sanguard Automobile Insurance Co., Ltd.                                      274,539.31
payables
Other          FAW Changchun Communication Technology
                                                                     757,573.73             207,971.15
payables       Co., Ltd.
Other
               FAW Asset Management Co., Ltd.                                                  3,925.62
payables

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 Project Name                         Related Parties                   Ending Book Balance      Opening Book Balance
 Other
                    Fawer Auto Parts Co., Ltd.                                30,988,968.39
 payables
 Other
                    Changchun Yidong Clutch Co., Ltd.                          5,880,397.48
 payables
 Other
                    FAW Foundry Co., Ltd.                                      5,963,517.62
 payables
 Other
                    Changchun FAWSN Group Co., Ltd.                           21,030,969.93
 payables
 Other              Changchun FAWAY Automobile Components
                                                                              54,339,637.71
 payables           Co., Ltd.
 Other
                    FAW Forging (Jilin) Co., Ltd.                              5,836,044.82
 payables
 Other
                    SmartLink                                                  4,012,812.05
 payables
 Other              FAW Changchun Yanfeng Visteon Electronics
                                                                                  17,543.38
 payables           Co., Ltd.

7.     Commitments of related parties


The Profit Forecast Compensation Agreement between FAW Car Co., Ltd. and China FAW Co., Ltd. signed by
FAW Car Co., Ltd. and China FAW Co., Ltd. on August 29, 2019 indicates that, for the purchased assets, the audited
revenue shares of mainstream product-related patents and proprietary technologies assessed with income method
and realized in 2020, 2021 and 2022 were not less than CNY 655.889 million, CNY 688.1552 million and CNY
109.3864 million respectively.

8.     Others

(1) Deposits and interests of finance companies

                                                                                                          Unit: CNY

     Project        Related Parties                     Content               2022.06.30             2021.06.30
     Name
                                            Deposits and interests of
Monetary        First      Automobile
                                          finance company included in        20,891,397,211.96     26,321,804,811.08
capital         Finance Co., Ltd.
                                                  bank deposits


XII.        Commitments and Contingencies

1.     Important commitments

Important commitments existing on the balance sheet date: The Company had no other commitments that should
be disclosed as of June 30, 2022.


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2.   Contingencies

(1) Important contingencies existing on the balance sheet date




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Contingent liabilities arising from pending litigation and arbitration and their financial impact

                                                                      Court of         Amount of Subject  Case
       Plaintiff            Defendant          Cause of Action
                                                                     Acceptance            (CNY)         Progress
                    The Company, FAW
Farasis Energy      Bestune Car Co.,                               Shanghai Second
                                                Other contract                                               First
Technology          Ltd., Shanghai                                   Intermediate        116,394,488.78
                                                    cases                                                  instance
(Ganzhou) Co., Ltd. Ruimei New Energy                               People's Court
                    Technology Co., Ltd.
                    The Company, FAW
Farasis Energy      Bestune Car Co.,                                  Changchun
                                                Other contract                                               First
Technology          Ltd., Shanghai                                   Intermediate        45,702,880.00
                                                    cases                                                  instance
(Ganzhou) Co., Ltd. Ruimei New Energy                               People's Court
                    Technology Co., Ltd.
                                                                   Shanghai Pudong
JinRon Factors                                  Other contract                                               First
                     Jiefang Limited                                  New Area           32,091,768.51
(Shanghai) Co., Ltd.                                cases                                                  instance
                                                                    People's Court
                       Zhou Qinglong,
                       Qijiang Changfeng
                       Gear (Group) Co.,
                       Ltd., Lin Xiying,
Chongqing Branch,                                                    Beijing High                           Second
                       Qijiang Changfeng          Other cases                            30,426,121.54
Bank of Harbin                                                      People’s Court                        instance
                       Forging Co., Ltd.,
                       Zhou Xiaojun,
                       Jiefang Limited
                       (third party)
                       FAW Jiefang                                Dalateqi People's                           First
                                               Product liability
Bai Haitao             Automotive Sales                            Court of Inner        19,899,350.00    instance of
                                                    cases
                       Co., Ltd.                                     Mongolia                                retrial
                                                                  Dalian Ganjingzi
                                                                                                             First
Lin Maolin             Jiefang Limited        Lease contract case District People's       9,040,010.76
                                                                                                           instance
                                                                       Court
                    Natural persons such
                    as Wang Jihui and
                    Wei Mengmeng,
Zheng Ruiguo, Lian                                                     Suizhou
                    insurance companies,        Traffic accident                                            Second
Meiying, Zhang                                                       Intermediate         1,353,495.62
                    Dongfeng                     liability case                                            instance
Yujun, Zhang Ziling                                                 People's Court
                    Automobile Co., Ltd.
                    (31 defendants),
                    FAW Group

                    Bengbu Huaxin
Huaiyuan Changtong                                                  Bengbu Yuhui
                    Automobile Sales &          Product quality                                              First
Transportation Co.,                                                District People's      1,248,346.47
                    Service Co., Ltd.,               case                                                  instance
Ltd.                                                                    Court
                    FAW Group

                  Qingdao Changjiu
                  Logistics Co., Ltd.,
                  Wuxi Huipeng
                  Automobile Sales
                                                                    Qingdao Jimo
Zhang Zhengming、 Co., Ltd., Qingdao            Traffic accident                                             First
                                                                   District People's      1,056,666.00
Ma Xiumei         Jianhang Runtong               liability case                                            instance
                                                                        Court
                  Logistics Co., Ltd.,
                  FAW Jiefang
                  (Qingdao)
                  Automotive Co., Ltd.


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                                                                     Court of       Amount of Subject  Case
        Plaintiff           Defendant           Cause of Action
                                                                    Acceptance          (CNY)         Progress
                     Natural persons such
                     as Wang Jihui and
Cao Zhuanyin、Cao Wei Mengmeng,                                       Suizhou
                     insurance companies,       Traffic accident                                            Second
Quanzheng、Cao                                                      Intermediate        1,004,405.62
                     Dongfeng                    liability case                                            instance
Yinling、Cao Jinling Automobile Co., Ltd.                          People's Court
                     (31 defendants),
                     FAW Group
Other 28 items                                                                          8,237,155.41

The Company had no other contingencies to be disclosed as of June 30, 2022.

(2) Explanation is also required when the Company has no important contingencies to be disclosed

The Company has no important contingencies to be disclosed.

XIII.      Events after the Balance Sheet Date

The Company had no events after the balance sheet date to be disclosed as of June 30, 2022.


XIV.       Other Important Matters

1.   Annuity plan

The Company decides to participate in the enterprise annuity plan implemented by FAW Group from January 1,
2010, and 5 other companies will implement self-defined enterprise annuity plans according to the Labor Law of
the People's Republic of China, the Trust Law of the People's Republic of China, the Trial Measures for Enterprise
Annuity (Order No. 20 of the Ministry of Labor and Social Security) and other laws and regulations, and in
combination with actual situation of the Company.
Main contents of annuity plan are as follows:
(1) "Enterprise annuity" mentioned in this plan refers to the enterprise supplementary endowment insurance
system voluntarily established by the enterprise and its employees according to national policies and regulations on
the basis of purchasing the basic endowment insurance and fulfilling the 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. As the trustee of the Plan, the Annuity Council is responsible for operating and managing
the enterprise annuity fund of FAW Group.
(3) Fund raising and payment methods: The expenses required for enterprise annuity are jointly paid by the
enterprise and employees.

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(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 him/her
at one time according to his/her requirements.


2.      Others

Lease: as lessee

The Company simplifies the short-term lease and low-value asset lease, and does not recognize the right-of-use
assets and lease liabilities. The short-term lease, low-value assets and variable lease payments not included in the
lease liabilities measurement are included in the expenses in the current period as follows:
Unit: CNY

Item                                                                                           January-June 2022
Short-term lease                                                                                    27,702,166.26
Low-value lease
Variable Lease Payments not Included in Lease Liabilities
Measurement
Total                                                                                                27,702,166.26




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XV.       Notes to Main Items of Parent Company's Financial Statements

1.     Other receivables

                                                                                                         Unit: CNY
                  Item                              Ending Balance                         Opening Balance
 Dividends receivable                                          17,920,972.75
 Other receivables                                                432,429.80                            432,429.80
 Total                                                         18,353,402.55                            432,429.80

(1) Other receivables

1)     Classification of other receivables by nature

                                                                                                         Unit: CNY
             Payable Nature                       Ending Book Balance                  Opening Book Balance
 Current account                                                  459,006.26                            459,006.26
 Total                                                            459,006.26                            459,006.26

2)     Provision for bad debts

                                                                                                         Unit: CNY
                                 Phase I               Phase II                Phase III
     Provision for Bad                            Expected credit loss   Expected credit loss
                           Expected credit loss                                                       Total
           Debts                                     for the entire         for the entire
                             for the next 12
                                                   duration (without       duration (with
                                 months
                                                  credit impairment)     credit impairment)
 Balance on January
                                     26,576.46                                                           26,576.46
 1, 2022
 Balance on January
 1, 2022 in the
 current period
 Balance on June 30,
                                     26,576.46                                                           26,576.46
 2022
Changes in the book balance of the loss provision with significant changes in the current period
□ Applicable   Not applicable
Disclosure by aging
                                                                                                         Unit: CNY
                            Aging                                                Ending Balance
 Within 1 year (including 1 year)                                                                       459,006.26
 7-12 months                                                                                            459,006.26
 Total                                                                                                  459,006.26

3)     Provision for bad debts provided, recovered or reversed in the current period




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  Provision for bad debts in the current period:
                                                                                                               Unit: CNY


                                                      Amount Changed in the Current Period
                         Opening                                                                               Ending
        Category                                          Recovery or      Cancel after
                         Balance          Provision                                             Others         Balance
                                                           Reversal        verification
   Current
                          26,576.46                                                                            26,576.46
   account
   Total                  26,576.46                                                                            26,576.46

  4)     Other receivables from top five borrowers classified based on the ending balance

                                                                                                               Unit: CNY
                                                                                       Proportion in
                                                                                       Total Ending      Ending Balance
   Company Name          Payment Nature      Ending Balance             Aging           Balance of        of Bad Debts
                                                                                          Other             Provision
                                                                                       Receivables
   Changchun
   Committee of
   Municipal and         Current account          459,006.26       7-12 months                 100.00%         26,576.46
   Rural
   Construction
   Total                                          459,006.26                                   100.00%         26,576.46

  2.     Long-term equity investment

                                                                                                               Unit: CNY
                                      Ending Balance                                            Opening Balance
   Item                                Impairment                                                 Impairment
                   Book Balance                           Book Value            Book Balance                        Book Value
                                        Provision                                                  Provision
Investment
to             21,086,037,005.30                       21,086,037,005.30    21,086,037,005.30                   21,086,037,005.30
subsidiaries
Investment
to
associated
                   4,829,031,761.86                     4,829,031,761.86     4,554,765,365.23                     4,554,765,365.23
enterprises
and joint
ventures
Total          25,915,068,767.16                       25,915,068,767.16    25,640,802,370.53                   25,640,802,370.53




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(1) Investment to subsidiaries

                                                                                               Unit: CNY
                                         Increase/Decrease in the Current Period                              Ending
                   Opening Balance                               Provision             Ending Balance        Balance of
    Investee                          Investment   Investment
                    (Book Value)                                    for      Others     (Book Value)        Impairment
                                       Increase     Reduction                                                Provision
                                                                Impairment
 FAW JIEFANG
 AUTOMOTIVE       21,086,037,005.30                                                   21,086,037,005.30
 CO., LTD.
 Total            21,086,037,005.30                                                   21,086,037,005.30




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    (2) Investment to associated enterprises and joint ventures

                                                                                                                                                             Unit: CNY
                                                                    Increase/Decrease in the Current Period
                                                             Investment                                       Cash                                                  Ending
               Opening Balance                                               Adjustment to                                                     Ending Balance      Balance of
 Investor                                                     Gains or                          Other     Dividends or    Provision
                (Book Value)      Investment   Investment                       Other                                                           (Book Value)      Impairment
                                                               Losses                           Equity       Profits         for      Others
                                   Increase    Reduction                     Comprehensive                                                                         Provision
                                                            Recognized by                      Changes    Announced to   Impairment
                                                                               Incomes
                                                            Equity Method                                   be Paid
I. Joint ventures
II. Associated enterprises
First
Automobile
               4,341,181,324.38                             280,639,831.32        -8,619.76                                                    4,621,812,535.94
Finance
Co., Ltd.
Sanguard
Automobile
                 213,584,040.85                              11,594,274.68       -38,116.86              17,920,972.75                          207,219,225.92
Insurance
Co., Ltd.
Subtotal       4,554,765,365.23                             292,234,106.00       -46,736.62              17,920,972.75                         4,829,031,761.86
Total          4,554,765,365.23                             292,234,106.00       -46,736.62              17,920,972.75                         4,829,031,761.86




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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                                                                      2,719,920,000.00
 method
 Long-term equity investment
 income calculated with equity                               292,234,106.00                            383,431,507.45
 method
 Total                                                       292,234,106.00                       3,103,351,507.45


XVI.      Supplementary Information

1.   Breakdown of non-recurring profit or loss of current period

Applicable         □ Not Applicable
                                                                                                            Unit: CNY

                         Item                                Amount                          Description
                                                                             It refers to the net gain on disposal of non-
 Profits or losses on disposal of non-current assets            42,431.19
                                                                             current assets.
 Government subsidies included in current profits
 and losses (except for those closely related to
 normal business operations of the Company,
                                                          227,954,740.41
 conforming to national policies and regulations,
 and continuously enjoyed according to certain
 standard quota or quantity)
                                                                             It mainly refers to the reversal of
 Reversal of impairment provision for receivables
                                                           12,000,000.00     impairment provision for receivables
 subject to separate impairment test
                                                                             subject to separate impairment test.
 Non-operating income and expenses other than the                            They mainly refer to the net non-operating
                                                           91,843,871.67
 above                                                                       income and expenses
 Less: amount affected by income tax                       55,440,351.77
 Total                                                    276,400,691.50                          --

Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:

□ Applicable      Not applicable

There are 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

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□ Applicable         Not applicable

2.     Return on net assets and earnings per share

                                                                          Earnings per Share
     Profit for the Reporting   Weighted average return
              Period                  on equity           Basic earnings per share     Diluted earnings per
                                                               (CNY/share)             share (CNY/share)
 Net profit attributable to
 common shareholders of                          0.65%                      0.0366                     0.0366
 the Company
 Net profit attributable to
 common shareholders of
 the Company after non-                          -0.41%                    -0.0228                    -0.0228
 recurring profits and
 losses are deducted

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




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