Full Text of 2022 Report of FAW JIEFANG GROUP CO., LTD.
FAW JIEFANG GROUP CO., LTD.
Annual Report 2022
April 2023
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Full Text of 2022 Report of FAW JIEFANG GROUP CO., LTD.
Section I Important Notes, Contents and Definitions
The Board of Directors and Board of Supervisors, as well as directors,
supervisors and senior executives of the Company guarantee that the contents
of the annual report are true, accurate and complete, there is no false record,
misleading statement or major omission, and shall bear individual and joint
legal responsibilities.
Hu Hanjie, the person in charge of the Company, Ji Yizhi, the person in
charge of accounting, and Si Yuzhuo, the person in charge of the accounting
organization (chief accountant) declare that they guarantee the authenticity,
accuracy and completeness of the financial report in this annual report.
Except for the following directors, other directors attended the board meeting
to review the annual report in person
Names of Positions of
Reasons for not Name of the
Directors not Directors not
Present in Person Trustee
Present in Person Present in Person
Bi Wenquan Director Work Liu Yanchang
This annual report includes prospective statements, such as future plans,
and does not constitute a substantial commitment of the Company to investors.
Investors and relevant persons should maintain sufficient risk awareness of
this and understand the differences between plans, forecasts, and commitments.
In the section of business review and analysis, the Company has provided
a detailed description of the potential risks and corresponding measures that
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may be faced in the future development of the Company. Investors are kindly
requested to pay attention to the relevant content. 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 ......................................................................................... 15
Section IV Corporate Governance.................................................................................................................. 47
Section V Environmental and Social Responsibilities ................................................................................. 93
Section VI Important Matters ....................................................................................................................... 106
Section VII Changes in Shares and Shareholders ......................................................................................... 134
Section VIII Preferred Shares .......................................................................................................................... 149
Section IX Bonds ............................................................................................................................................ 150
Section X Financial Report .......................................................................................................................... 151
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List of Documents for Future Reference
1. Financial statements signed and sealed by the person in charge of the
Company, the person in charge of accounting and the person in charge of the
accounting organization (chief accountant).
2. The original Auditor’s Report sealed by Pan-China Certified Public
Accountants LLP and sealed and signed by Pan-China's CPAs
3. Originals of all company documents and announcements publicly disclosed
on the website designated by China Securities Regulatory Commission in the
reporting period.
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Interpretation
Item Refers to Definition
Company, the Company, FAW
Refers to FAW JIEFANG GROUP CO.,LTD.
Jiefang
Jiefang Limited Refers to FAW Jiefang Automotive Co., Ltd.
FAW, FAW Group Refers to China FAW Group Co., Ltd.
FAW Car Co., Ltd. Refers to China FAW Co., Ltd.
FAW Car Refers to FAW Car Co., Ltd.
FAW-Bestune Refers to FAW Bestune Car Co., Ltd.
Finance company Refers to First Automobile Finance Co., Ltd.
Board of Directors of FAW JIEFANG GROUP
Board of Directors Refers to
CO.,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
SASAC Refers to
Administration Commission of the State Council
CSRC Refers to China Securities Regulatory Commission
China Securities Depository and
Shenzhen Branch, China Securities Depository
Clearing Corporation Limited Refers to
and Clearing Corporation Limited
(CSDC)
Company Law Refers to Company Law of the Peoples Republic of China
Securities Law Refers to Securities Law of the People's Republic of China
Articles of Association of FAW JIEFANG
Articles of Association Refers to
GROUP CO.,LTD.
Reporting Period Refers to January 1, 2022-December 31, 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 Information
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on which
Shenzhen Stock Exchange
shares are listed
Chinese name of the Company FAW JIEFANG GROUP CO.,LTD.
Chinese abbreviation of the
FAW Jiefang
Company
English name of the Company FAW JIEFANG GROUP CO.,LTD
English abbreviation of the
FAW Jiefang
Company
Legal representative of the
Hu Hanjie
Company
No. 2259, Dongfeng Street, Changchun Automobile
Registered address
Development Zone, Jilin Province
Zip code of registered address 130011
In 2020, the Company carried out major asset restructuring, and
History of changes in the registered address was changed from No. 4888 Weishan
registered address of the Road, High-tech Industrial Development Zone, Changchun
Company City, Jilin Province to No. 2259 Dongfeng Street, Automobile
Development Zone, Changchun City, Jilin Province.
No. 2259, Dongfeng Street, Changchun Automobile
Office address
Development Zone, Jilin Province
Postal code of office address of
130011
the Company
Company Website www.fawjiefang.com.cn
E-mail faw0800@fawjiefang.com.cn
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II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
No. 2259, Dongfeng Street, No. 2259, Dongfeng Street, Changchun
Address Changchun Automobile Development Automobile Development Zone, Jilin
Zone, Jilin Province Province
Telephone 0431-80918881 0431-80918882 0431-80918881 0431-80918882
Fax 0431-80918883 0431-80918883
E-mail faw0800@fawjiefang.com.cn faw0800@fawjiefang.com.cn
III. Information Disclosure and Keeping Location
Website of the stock exchange disclosing
http://www.szse.cn
annual report of the Company
Name and website of the media disclosing Securities Times, China Securities Journal and
annual report of the Company CNINFO (http://www.cninfo.com.cn)
Keeping location of the Annual Report of the
FAW Capital Operation Department
Company
IV. Changes in Registration
Unified Social Credit Code 91220101244976413E
In 2020, the Company completed major asset restructuring, and
Changes in main business
changed its main business from research, development,
since the company went
production, and sales of passenger cars to research, development,
public
production, and sales of commercial vehicles.
1. In June 2011, FAW, the original controlling shareholder of the
Company, carried out major business restructuring, and founded
FAW Car Co., Ltd. as the main sponsor in order to improve the
corporate governance structure and establish a modern enterprise
Changes in controlling
system. FAW transferred all its shares from the Company into
shareholders in the past
FAW Car Co., Ltd., and the two parties completed the equity
registration and transfer procedures in April 2012. After the
equity transfer, the total share capital of the Company did not
change and remained at 1,627,500,000 shares. FAW Car Co., Ltd.
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holds 862,983,689 shares of the Company, accounting for
53.03% of the total shares, and is the controlling shareholder of
the Company. The actual controller does not change and is still
the SASAC.
2. In March 2020, the China Securities Regulatory Commission
approved major asset restructuring project of the Company. The
Company issued 2,982,166,212 shares directly to FAW Car Co.,
Ltd. to pay the price difference for the major asset restructuring.
After the issuance, the total share capital of the Company
increased to 4,609,666,212 shares. FAW Car Co., Ltd. holds
3,845,149,901 shares of the Company, accounting for 83.41% of
the total shares, and is the controlling shareholder of the
Company. The Company's actual controller is still SASAC.
V. Other relevant data
Accounting firm hired by the Company
Grant Thornton Certified Public Accountants (Special General
Name of Accounting Firm
Partnership)
Office address of the Saite Plaza, No. 22 Jian'guomen Wai Avenue, Chaoyang
accounting firm District, Beijing
Name of the accountants Xi Dawei and Yang Dongmin
Sponsor institution employed by the Company to perform continuous supervision duties in the
reporting period
□ Applicable Not applicable
Financial consultant employed by the Company to perform continuous supervision duties in the
reporting period
□ Applicable Not applicable
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VI. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous
years
□ Yes No
Increase or decrease
2022 2021 compared to that of 2020
last year
Operating income 38,331,747,083.8 113,681,085,04
98,751,242,669.55 -61.18%
(CNY) 8 7.92
Net profit
attributable to
2,671,714,284.2
shareholders of the 367,745,445.34 3,899,854,760.39 -90.57%
7
listed company
(CNY)
Net profit
attributable to
shareholders of the
- 1,616,754,125.4
listed company after 3,581,266,777.71 -147.87%
1,714,242,885.11 8
deducting non-
recurring profits and
losses (CNY)
Net cash flows from
- -
operating activities 15,203,123,279.16 -133.78%
5,135,243,969.35 780,466,106.07
(CNY)
Basic earnings per
0.0735 0.8412 -91.26% 0.5796
share (CNY/share)
Diluted earnings per
0.0735 0.8412 -91.26% 0.5796
share (CNY/share)
Weighted average
1.50% 15.37% Reduced by 13.87% 10.75%
return on equity
Increase or decrease
compared with that
End of 2022 End of 2021 End of 2020
at the end of last
year
56,772,860,616.1 64,237,522,674.
Total assets (CNY) 69,765,943,932.81 -18.62%
2 22
Net assets
attributable to
23,719,427,082.4 24,560,505,430.
shareholders of the 26,242,240,723.26 -9.61%
8 40
listed company
(CNY)
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The lower net profit of the Company before or after the deduction of non-recurring profits and
losses in the last three fiscal years is negative, and the audit report of the most recent year shows
that the going-concern ability of the Company is uncertain
□ Yes No
The lower net profit before or after the deduction of non-recurring gains and losses is negative.
Yes □ No
Item 2022 2021 Remarks
Sales revenue of
complete vehicles,
parts and components,
Operating income (CNY) 38,331,747,083.88 98,751,242,669.55
materials, and
purchased semi-
finished products, etc.
Rental income and
Deducted amount of
30,729,859.27 29,091,844.99 entrusted operating
operating income (CNY)
income
Deduct the rental
Amount after the deduction
38,301,017,224.61 98,722,150,824.56 income and entrusted
of operating income (CNY)
operating income
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneously
according to the international accounting standards and China accounting standards
□ Applicable Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to the international accounting standards and China
accounting standards.
2. Differences in net profits and net assets in the financial report disclosed simultaneously
according to foreign accounting standards and China accounting standards
□ Applicable Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to foreign accounting standards and China accounting
standards.
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VIII. Seasonal Main Financial Indicators
Unit: CNY
Q1 Q2 Q3 Q4
Operating
15,156,239,359.47 7,715,295,902.09 7,583,447,502.59 7,876,764,319.73
income
Net profit
attributable to
shareholders 452,160,338.37 -282,006,451.05 -822,585,061.27 1,020,176,619.29
of the listed
company
Net profit
attributable to
shareholders
of the listed
company
387,674,220.34 -493,921,024.52 -963,409,131.93 -644,586,949.00
after
deducting
non-recurring
profits and
losses
Net cash
flows from
-2,359,016,036.31 3,802,153,762.94 -1,943,215,192.33 -4,635,166,503.65
operating
activities
Is there any significant difference between the above financial indicators or the sum and the
financial indicators in the quarterly and semi-annual financial reports disclosed by the Company?
□ Yes No
IX. Items and Amounts of Non-recurring Profit and Loss
Applicable □ Not Applicable
Unit: CNY
Item Amount in 2022 Amount in 2021 Amount in 2020 Description
Profits or losses on
disposal of non-
current assets It refers to the net
(including the write- gain on disposal
871,031,108.06 458,484.79 4,460,089.95
off part of the of non-current
provision for assets.
impairment of assets
withdrawn)
Government subsidies 1,635,846,930.83 336,044,406.64 297,470,522.64
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included in the current
profit and loss (except
those closely related
to the Company
normal operations,
conforming to the
State policies and
regulations and
enjoyed persistently in
line with certain
standard rating or
ration)
Profits or losses from
684,628.03 100,401.80
debt restructuring
Net current profit and
loss of the subsidiary
acquired in business
combination involving
entities under 797,130,572.68
common control from
the beginning of the
period to the
combination date
It mainly refers
to the reversal of
Reversal of
impairment
impairment provision
provision for
for receivables subject 15,110,580.89 11,809,885.69 42,540,789.87
receivables
to separate
subject to
impairment test
separate
impairment test.
Trustee fee earned
from entrusted 864,779.87 471,698.11 The trustee fee
management
They mainly
Non-operating income refer to the net
and expenses other 127,429,456.42 28,144,798.08 1,112,504.19 non-operating
than the above income and
expenses
Other losses and
profits conforming to Other non-
the definition of non- 117,055,384.99 219,970,000.00 recurring profits
recurring profit and and losses
loss
Less: amount affected by 568,294,525.62 176,081,303.65 306,737,153.67
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income tax
Amount affected by
minority shareholder’s 1,087,568.67
equity (after-tax)
Total 2,081,988,330.45 318,587,982.68 1,054,960,158.79 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit
and loss:
□ Applicable Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit
and loss for the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items
□ Applicable Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items.
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Section III Management Discussion and Analysis
I. Industry of the Company in the Reporting Period
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
In 2022, the commercial vehicle industry experienced a tough period due to the effect of
three factors, i.e. macro economy, cyclical regulation, and overdraft. The domestic macro
economy was seriously affected by economic downturn, and the annual GDP growth rate was
about 3%, which did not reach the expected value. Investment support was reduced, domestic
consumption remained low, export growth rate was sharply declined, highway freight turnover
showed negative growth, and the macro economy slowed down unexpectedly, leading to a
significant decrease in demand in the commercial vehicle market. The commercial vehicle market
was affected by factors such as the early elimination of National III vehicles and the early
procurement of National V vehicles in 2020 and the first half of 2021, there was a serious
phenomenon of more vehicles and less freight in the freight industry in 2022, the freight rate
continued to be low, and the number of practitioners of the freight industry was reduced sharply.
In addition to the reduction in demand for the industry, other industry environments also brought
adverse effects to enterprise development. The cost of raw materials and parts as well as the price
of new energy batteries were increased continuously due to the effect of global systemic inflation,
therefore, the profits of automobile enterprises were squeezed continuously. The structural
shortage of chips still put huge pressure on the supply side of the automobile industry.
In 2022, National VI emission standard was implemented. National VI products are greatly
expensive than National V products, the product structure of the industry is generally more
complex, and customers are unwilling to purchase National VI products, therefore, the overall
market demand in 2022 is not as expected. The export sales of medium and heavy trucks were
increased significantly in 2022 because the overseas layout of domestic heavy truck enterprises
was improved gradually, the product competitiveness was increased continuously, and the
recognization of overseas customers for medium and heavy trucks exported from China was
increased as well.
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FAW Jiefang is a commercial vehicle manufacturer, and its business performance mainly
depends on the growth of industry demand, its product competitiveness and its own cost control
ability. In 2022, when facing the challenge of a huge decline in the commercial vehicle market,
and other risks and challenges intertwined, the Company tried its best to change and survive in the
upheaval, adjusted its business strategy in time, increased its terminal share, reduced inventory
and resolved channel risks, thus achieving stable development, progress and quality improvement
at the same time. The Company sold 140,000 medium and heavy trucks throughout the year,
accounting for 25.7% of the domestic market terminal share as indicated by Hebei Beidou Data
Technology Co. LTD., and always leading the high-quality development of commercial vehicle
industry.
II. Main Businesses of the Company in the Reporting Period
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
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 a leading trend. Main business, products, and business
model of the Company were not changed significantly in the reporting period.
The current production capacity of the Company's main factories is 393,000 complete
vehicles. In recent years, the Company has increased investment in technological transformation
continuously, accelerated the adjustment of production capacity structure, and implemented
continuous resource optimization and intelligent upgrading for high-end and new energy products.
It has formed a number of advanced manufacturing bases with industry-leading levels, and has
obvious technical and capacity advantages in the commercial vehicle industry, laying a solid
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foundation to continue to lead the market. Jiefang J7 Intelligent Factory was awarded the pilot and
demonstration of big data industry development by the Ministry of Industry and Information
Technology, and Jimo Factory and Huishan Factory were awarded the benchmark intelligent
factories in the automobile industry. By adhering to the green factory strategy, and protecting the
"blue sky", "clear water" and "pure land" according to high standards, the Company has won the
title of national green factory and Jimo Factory has been included in the second batch of
intelligent photovoltaic pilot demonstration list of the Ministry of Industry and Information
Technology.
Manufacturing, production and operation of complete vehicle in the reporting period
Applicable □ Not Applicable
Production and sales of complete vehicles
Production Sales Qty
This Year-on-year This Same Year-on-year
Same Period
Reporting Increase and Reporting Period of Increase and
of Last Year
Period Decrease Period Last Year Decrease
By vehicle type
Medium/Heavy 123,011 320,485 -61.62% 140,384 373,420 -62.41%
truck
Light-duty truck 27,560 54,051 -49.01% 29,414 65,335 -54.98%
Bus 241 904 -73.34% 251 905 -72.27%
Total 150,812 375,440 -59.83% 170,049 439,660 -61.32%
Reasons for year-on-year change of more than 30%
Applicable □ Not Applicable
The effect of economic downturn is great, which leads to poor logistics, shrinking market
demand in the industry, and decline in the production and sales volume of various models.
Construction of parts and components supporting system
In terms of the construction of parts and components resource platform, the Company
complies with the "steady first-class resource network strategy", aims at the development of the
new four-modernization, strengthens the construction and control of supplier platform, and builds
a supporting system with high quality and low price continuously. In addition, the Company
further cooperates with excellent suppliers at home and abroad by means of strategic cooperation
and joint venture cooperation in order to meet the market demand. At present, the three core
assemblies of the Company's main models, i.e. engine, transmission and axle, are produced
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independently, and the core parts and components are resource-oriented in fields such as new
energy, intelligent vehicle software and hardware, after-market and intelligent connected services.
The Company guarantees the vehicle quality and reputation by controlling the purchase by
implementing access evaluation, strengthening performance assessment and capability review,
and supervising and controlling the supplier's process effectively while adhering to the principle
of quality first.
Production and operation of automobile parts and components in the reporting period
□ Applicable Not applicable
Automobile finance business performed by the Company
□ Applicable Not applicable
Business related to new energy vehicles performed by the Company
Applicable □ Not Applicable
Production and operation of complete new energy vehicles and parts & components
Unit: CNY
Production
Product category Production Sales volume Sales revenue
Capacity
40,000
Truck 2,490 2,611 879,931,321.70
vehicles/year
3,000
Bus 127 vehicles 112 vehicles 103,524,352.84
vehicles/year
III.Analysis of Core Competitiveness
The Company shall meet the disclosure requirements for the automobile manufacturing industry
specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of
Listed Companies - Industry Information Disclosure."
The Company adheres to the corporate vision of "being the most proud commercial vehicle
enterprise and the most trustworthy commercial vehicle brand", the mission of "becoming 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
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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. New energy products cover all mainstream scenarios of the
market segment. Guided by "leading technology, pioneering experience, integrated innovation,
enhanced application, collaboration and efficiency", FAW Jiefang has built a strong and complete
independent R&D system in China from foresight technology, engine, transmission and axle to
complete vehicle, and formed an efficient and collaborative R & D team of more than 2,000
people. With the five core capabilities, including scientific and technological innovation, lean
design, performance development, trial production verification and experimental verification, the
Company has created five technical platforms with low carbonization, informatization,
intelligence, electrification and high quality, become one of the commercial vehicle enterprises
mastering the core technologies of world-class complete vehicles and three power assemblies, and
passed ISO9001, IATF16949 and GB9001B quality system certifications. It is also a national-
level independent automobile product R&D and test certification base. In recent years, by
accurately grasping the demands of market segment, FAW Jiefang has successfully built ten core
product technology advantages, including system fuel saving, long oil drain interval, light weight,
independent assembly, independent electronic control, independent post processing, new energy,
intelligent drive, long-term maintenance and maintenance free. Therefore, FAW Jiefang always
maintains an industry-leading position in the fierce market competition.
2. Marketing and procurement: Adhering to the customer value orientation, the Company
has taken the lead in establishing a marketing service system with complete functions. The
marketing service network composed of more than 900 dealers, more than 1,000 service providers,
more than 50 spare parts centers and more than 100 spare parts dealers covers more than 200
prefecture-level cities in China, with a coverage rate of 96% in cities with a capacity of more than
1,000 vehicles. With a national average service radius of 47 kilometers, it is at the leading level in
the industry and provides users with 24-hour efficient and high-quality services. The Company is
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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 and establish joint ventures with
them.
3. In terms of production and manufacturing, the Company has a complete manufacturing
system from raw materials to core components, from key assemblies to complete vehicles, and its
processing and manufacturing depth ranks among the industry leaders. The Company has five
complete vehicle bases in Changchun, Qingdao, Chengdu/Guanghan, Liuzhou and Foshan, three
assembly bases in Changchun, Wuxi and Dalian, and five new business companies, including
FOR.J, SmartLink, Zhito, Jiefang Shidai, and Diyi Yuansu. In 2022, FAW Jiefang J7 Intelligent
Factory was selected by the Ministry of Industry and Information Technology as a pilot and
demonstration project for the development of big data industry.
4. Overseas: The Company's products are exported to 80 countries and regions such as
Southeast Asia, the Middle East, Latin America, Africa and Eastern Europe, and the Company has
more than 80 core dealers and nearly 300 distributors in nearly 40 countries and regions around
the world. The Company has set up three overseas subsidiaries in South Africa, Russia and
Tanzania, and export models such as J6, JH6, and Hu V.
IV. Analysis of Main Business
1. Overview
In 2022, the Company improved its ability and seized opportunities in the new era, and
forged ahead with vigor and enthusiasm while maintaining innovation and reform! When facing
changes and challenges in the internal and external environment, the Company identified and
dealt with such changes, adjusted its business strategy in time, survived by reducing risks,
improved its capability, and made unprecedented efforts to face the unprecedentedly severe
situation. It focused on grabbing terminals, reducing inventory, costs, expenses and risks, and
enhancing confidence. The staff of FAW Jiefang made great efforts and achieved extraordinary
business results: the sales volume of complete vehicles reached 170,000, and the terminal share of
medium and heavy trucks in the domestic market indicated by Hebei Beidou Data Technology Co.
LTD. was 25.7%; a great breakthrough was made in the export, with a sales volume of 28,000
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vehicles and a year-on-year increase of 98%. The total inventory decreased significantly
compared with the beginning of the year, and the channel risk was cleared, which laid a good
foundation for striking in 2023. In 2022, the Company was awarded the "State-owned Enterprises
Governance Demonstration Enterprise" and the "China Machinery Industry Quality Award". The
J7 Intelligent Factory was selected by the Ministry of Industry and Information Technology as the
"Demonstration Factory of Intelligent Manufacturing", and its brand value led the commercial
vehicle industry for 11 consecutive years.
(1) National VI products: Link with the research, production, supply, marketing and service
system efficiently, establish a closed-loop management mechanism for problems, implement end-
to-end problem tackling, close the loop for all key problems, launch nearly 120 new products,
with a market share of more than 12%, and improve the reputation of National VI products
greatly; promote the planning of product packages for J100 and J7 2026 to achieve commercial
success; pay close attention to the assembly upgrading project, strengthen the collaborative
development of assembly products, and promote the development of related series products in
sequence; upgrade and update light vehicles continuously, and launch 6.5t new platform products
and 22 LINKTOUR vehicles, so as to improve the competitiveness continuously.
(2) New energy products: Create a differentiated product portfolio, make the products cover
all mainstream scenarios in the market segment, and achieve a sales volume of 2,723 vehicles.
Develop nearly 70 new energy products and accelerate product upgrading continuously on the
three technical routes of battery/battery swap, hybrid power and fuel cell. Strengthen the
cooperation with ecological partners and create a "circle of friends" in the power, finance,
terminal cooperation and battery swap industries. Strengthen the cooperation with energy
supplement enterprises, new energy ecological partners and refitting plants in typical new energy
fields such as steel, electricity, coal and mining, so as to increase market sales, i.e. more than 500
hydrogen fuel cell vehicles have been ordered, indicating that the products are widely recognized
by the market. Promote the complete vehicle leasing scheme on a pilot basis, and win the bidding
of pilot leasing of 100 pure electric light trucks in Chengdu and the leasing of over 20 postal
vehicles in Changchun.
(3) Intelligent vehicle products: Cooperate with leading logistics enterprises to conduct trial
operation of super trucks, start independent verification of J6V_L2+/L3 product, and accelerate
the reserve of redundant drive-by-wire chassis. Achieve IoV T-box 2.0 full-line switching; real-
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name authentication of stock IoV cards; development of super APP map desktop theme function,
which is adapted to J101 and J167 models for the first time. Digital key is equipped with J167
model to build the basic service platform and verify the full vehicle control function. Lento EV
Jiefangxing APP is launched. The first full-scenario intelligent diagnosis and repair service for
commercial vehicles is realized.
(4) Technological innovation: Improve the three capabilities of innovation, achievement
transformation and innovation collaboration continuously, and make breakthroughs in nearly 70
leading core technologies in the industry, with a year-on-year increase of 20%; prepare nearly 300
standards, obtain more than 1,500 patents, and make major breakthroughs in key technological
projects of SASAC. In the field of traditional vehicles, the heavy-duty in-cylinder direct-injection
hydrogen engine was launched and ignited for the first time in China, reaching the international
leading technical level. The 13L extreme lightweight heavy-duty tractor has reached the industry
leading level, and major breakthroughs have been made in core technologies such as ultra-low
wind resistance cab. In the field of new energy vehicles, light-duty pure electric and heavy-duty
fuel-powered forward-looking vehicles are produced for the first time, and major breakthroughs
have been made in core technologies such as 8-wire high-speed and high-power flat-wire oil-
cooled motors. In the field of intelligent connected vehicles, major breakthroughs have been made
in core technologies such as autonomous forward-looking vehicles, dual-system intelligent cabs,
domain integration E/E architecture platforms, and digital keys.
(5) Business innovation: Accelerate the implementation of Columbus smart logistics opening
plan, build a collaborative innovation mechanism inside and outside emerging industries, and
improve the ecosystem construction. Innovate the joint operation mode of intelligent vehicles,
expand the actual commercial scale, and sell more than 300 intelligent vehicles. The connected
ecology creates the first IoV brand in the industry, with more than 2.1 million registered users of
Jiefangxing APP. The Company focuses on the after-market, expands the scope of "four value-
added services" (i.e. ETC, refueling, fleet management and security officer), and serves more than
130,000 vehicles in total; pays attention to accelerating the realization of new ecological products
such as second-hand vehicles and online freight platforms, with the transaction volume of second-
hand vehicle business exceeding CNY 100 million; promotes the implementation of fleet
management solutions in four fields, including refrigeration, mixing, muck and sanitation.
Accelerate resource distribution and establish the "Jiefang Shidai" joint venture.
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(6) Digital and intelligent transformation: Formulate and implement the "1143" digital and
intelligent transformation framework of FAW Jiefang, complete the top-level 4A architecture
design and transformation blueprint planning with the TOGAF method, accelerate the application
of information and digital technologies such as big data, cloud computing and Internet of Things,
deeply integrate with the business in the four major fields, build digital capabilities such as data
management system, and improve overall operational efficiency of the Company.
(7) Capital operation: There are 12 shareholding enterprises in total affiliated to the
Company, with a total investment income of CNY 347 million in 2022. The Company has
formulated management documents and built a long-term management mechanism. The Company
has deployed in the fields of intelligent driving (Zhito), IoV (SmartLink) and after-market
operation (FOR.J) since 2019. In 2022, the Company made a strategic investment in Refire
Technology and establishing Diyi Yuansu to improve the strategic layout of the fuel cell industry;
promoted the implementation of Jiefang Shidai projects, and laid out the operation business of the
new energy after-market.
2. Revenues and costs
(1) Composition of Operating Income
Unit: CNY
2022 2021
Year-on-
Proportion Proportion year
in in Increase
Amount Amount and
Operating Operating
Decrease
Income Income
Total operating
38,331,747,083.88 100% 98,751,242,669.55 100% -61.18%
income
By Industries
Automobile
38,331,747,083.88 100.00% 98,751,242,669.55 100.00% -61.18%
industry
By products
Commercial
33,483,232,308.59 87.35% 91,119,202,713.23 92.27% -63.25%
vehicles
Spare parts and
4,848,514,775.29 12.65% 7,632,039,956.32 7.73% -36.47%
others
By areas
Northeast China, 19,888,808,283.34 51.89% 45,436,940,546.97 46.01% -56.23%
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North China,
Northwest China
and Southwest
China
East China, South
China and Central 18,442,938,800.54 48.11% 53,314,302,122.58 53.99% -65.41%
China
(2) Information about industries, products, regions and sales model accounting for more
than 10% of the Company's operating income or operating profit
Applicable □ Not Applicable
Unit: CNY
Increase/De Increase/D
Increase/Decr
crease of ecrease of
ease of Gross
Operating Operating
Gross Profit Rate
Operating income Operating costs Income over Cost over
Profit Rate over the
the Same the Same
Same Period
Period of Period of
of Last Year
Last Year Last Year
By Industries
Automobile Reduced by
36,242,318,100.83 33,608,683,181.19 7.27% -62.05% -60.96%
industry 2.60%
By products
Commercial Reduced by
33,483,232,308.59 31,214,534,982.58 6.78% -63.25% -62.14%
vehicles 2.73%
Spare parts Reduced by
2,759,085,792.24 2,394,148,198.61 13.23% -37.15% -33.99%
and others 4.14%
By areas
Northeast
China,
North
China, Reduced by
18,804,687,270.68 17,714,709,552.71 5.80% -57.21% -55.32%
Northwest 3.97%
China and
Southwest
China
East China,
South China Reduced by
17,437,630,830.15 15,893,973,628.48 8.85% -66.18% -65.77%
and Central 1.11%
China
The main business data of the Company adjusted at the end of the latest reporting period if the
statistical caliber of the Company's main business data is adjusted in the last year
□ Applicable Not applicable
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(3) Whether physical sales revenue of the Company is greater than the labor service
revenue
Yes □ No
Year-on-year
Industry
Item Unit 2022 2021 Increase and
Classification
Decrease
Sales Qty Vehicle 170,049 439,660 -61.32%
Production 375,440
Automobile Vehicle 150,812 -59.83%
output
industry
Storage 31,397
Vehicle 13,235 -57.85%
amount
Reasons for the year-on-year change of relevant data by more than 30%
Applicable □ Not Applicable
1) The production and sales volume is decreased compared with the same period of the previous
year, which is mainly due to the serious impact of economic downturn, resulting in poor logistics
and shrinking market demand in the industry.
2) Inventory is decreased compared with the same period of the previous year, which is mainly
because that the inventory is consumed and less capital is occupied.
(4) Performance of major sales contracts and major procurement contracts signed by the
Company as of the reporting period
□ Applicable Not applicable
(5) Composition of operating cost
Industry and Product Classification
Unit: CNY
2022 2021 Year-on-
Proportion year
Industry Proportion
Item in Increase
Classification Amount Amount in Operating
Operating and
Cost
Cost Decrease
31,126,255
Material cost 88.30% 78,454,527,843.72 88.34% -60.33%
Automobile ,860.34
industry 4,125,915,
Others 11.70% 10,354,810,924.88 11.66% -60.15%
026.19
Unit: CNY
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2022 2021 Year-on-
Proportion Proportio year
Product
Item in n in Increase
Classification Amount Amount
Operating Operating and
Cost Cost Decrease
31,214,5
Commercial Commercial
34,982.5 88.55% 82,453,077,973.29 92.84% -62.14%
vehicles vehicles
8
Spare parts Spare parts 4,037,63
11.45% 6,356,260,795.31 7.16% -36.48%
and others and others 5,903.95
Note: None
(6) Whether the consolidation scope is changed in the reporting period
Yes □ No
FAW Jiefang New Energy Automotive Sales Co., Ltd, a subsidiary of the Company, merged
FAW Jiefang Automotive Sales Co., Ltd., the former subsidiary of the Company, on the base date
of September 30, 2022.
(7) Significant changes or adjustments in business, products or services of the Company in
the reporting period
□ Applicable Not applicable
(8) Information about main customers and main suppliers
Information about main customers of the Company
Total sales amount of the top five customers (CNY) 8,697,732,382.08
Proportion of total sales amount of the top five customers in
22.69%
total annual sales amount
Proportion of sales of related parties in total annual sales of
17.65%
the top five customers
Information about top 5 customers of the Company
Proportion in Total
S/N Customer name Sales (CNY)
Annual Sales
China FAW Group Import & Export
1 5,921,179,357.98 15.45%
Co., Ltd.
FAW Jiefang Fujie (Tianjin) Technology
2 842,004,381.84 2.20%
Industry Co., Ltd.
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3 Customer 1 841,177,182.46 2.19%
4 Customer 2 646,895,474.90 1.69%
5 Customer 3 446,475,984.90 1.16%
Total -- 8,697,732,382.08 22.69%
Other information about main customers
□ Applicable Not applicable
Information about main suppliers of the Company
Total purchase amount of the top five suppliers (CNY) 5,315,280,198.91
Proportion of total purchase amount of the top five suppliers
14.07%
in total annual purchase amount
Proportion of the purchase amount of related parties in the
2.75%
total annual purchase amount of the top five suppliers
Information about the top 5 suppliers of the Company
Proportion in Total
Purchase Amount
S/N Name of Supplier Annual Purchase
(CNY)
Amount
1 Supplier 1 1,888,113,028.36 5.00%
2 Fawer Auto Parts Co., Ltd. 1,040,303,880.14 2.75%
3 Supplier 2 973,607,675.50 2.58%
4 Supplier 3 751,844,490.95 1.99%
5 Supplier 4 661,411,123.96 1.75%
Total -- 5,315,280,198.91 14.07%
Other information about main suppliers
□ Applicable Not applicable
3. Cost
Unit: CNY
Year-on-
year
Description of
2022 2021 Increase
Major Changes
and
Decrease
Sales expenses 1,255,882,221.64 1,754,344,114.38 -28.41%
Administrative
2,040,339,354.62 2,453,597,224.68 -16.84%
expenses
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Financial
-1,052,600,813.17 -1,220,634,963.43 -13.77%
expenses
R&D expenses 2,895,655,097.73 3,328,946,673.10 -13.02%
4. R&D investment
Applicable □ Not Applicable
Expected Impact on the
Name of Main Project
Project purpose Proposed Objectives Company's Future
R&D Projects progress
Development
Follow the
Maintain the high-end
"domestic first-
positioning of products,
class and world-
pursue excellent quality,
class" enterprise Support the Company's
and improve product
development strategy of developing a
quality continuously in
J7 series strategy, and "domestic first-class and
the efficient long-distance
expanded models develop domestic Developmen world-class" enterprise,
trunk express market,
development high-end t phase and contribute hard-core
expand the market
project benchmark heavy products to the product
capacity of high-end
trucks layout during the 14th
vehicle products year by
independently to Five-Year Plan period.
year, realize double sales
achieve a new level
volume, and lead the
of domestic truck
industry development.
quality.
Maintain the mid-to-high-
end positioning of
products in the six core
Enhance the
markets such as general
competitiveness of the
Upgrade the freight, express freight,
Company's medium and
JH6 series products of JH6 green transport and urban
heavy vehicle product
expanded models platform to ensure Planning construction muck,
line and major products,
development leading stage strengthen the advantages
and contribute hard-core
project competitiveness of of highway vehicles in
products to the product
Jiefang brand. the mid-to-high-end
layout in the 14th Five-
market and renew the
Year Plan period.
brand image of
engineering vehicles by
optimizing the complete
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vehicle reliability,
comfort and TCO.
Focus on customers'
Build intelligent high-end
pain points, market
medium-sized vehicles
and technology,
with the largest space,
face the high-end
lowest fuel consumption
market of medium-
Meet the requirements of and strong
sized vehicles in
J6L upgraded different series and competitiveness in China,
China, rank first in
product different market segments improve sales volume
comprehensive Closed
development for flat/raised floor and and profit margin of
competitiveness of
project 6/7/9/11L engine existing products, solve
medium-sized truck
combinations. users' pain points, and
products in China,
support the Company's to
and achieve
achieve the share in
commercial success
medium-sized vehicle
and customer
market.
satisfaction.
Cover typical scenarios
of the three
Complete the layout of
demonstration city
three major technical
Develop fuel cell clusters of fuel cells,
routes, reserve the fuel
products, cover all develop a whole series of
cell products
the three major products such as fuel-
development technology,
technical routes, electric traction, fuel-
support the research and
Fuel Cell Product meet the electric dump, special
Developmen development of
Development requirements of fuel-electric and fuel-
t phase independent fuel cell
Project demonstration electric logistics, and
products, build a
operation subsidies, apply for demonstration
benchmark image for the
and support the operation projects
new energy industry, and
increase of new together with mainstream
support the Company to
energy products. fuel-electric system
lead the new energy
partners to realize the
industry continuously.
batch sales and operation
of fuel-electric products.
Jiefang Develop aided Develop intelligent With the commercial
intelligent driving and Developmen vehicle series products, operation of emerging
driving product restricted-region t phase realize aided driving in industries in multiple
development high-level trunk logistics scenarios scenarios, the Company's
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project intelligent driving and high-level intelligent R&D capability and
commercial vehicle driving in multiple competitiveness in the
products based on restricted-region intelligent networking
customer needs, so scenarios such as ports field are improving
as to help the and sanitation, and continuously, so that it
Company to realize develop full-stack can realize the strategic
the intelligent driving transformation to
commercialization software and hardware intelligent transportation
of intelligent core technologies by solution provider in a
vehicle industry in a itself to create short period.
short period. independent core
competitiveness.
The project is The full-stack self-
implemented to developed IoV platform
realize networking series products cover
of the Company's three major sub-
off-line vehicles, so platforms, i.e. vehicle
With continuous product
as to meet the terminal, mobile terminal
iteration and service
regulatory and cloud terminal,
optimization of the
requirements for realize the digitalization
project, the achievements
monitoring and of vehicle operation
will improve digital,
provide customers information at the vehicle
networking and
with remote terminal, and realize
intelligent experience of
Jiefangxing APP functions or vehicle-cloud connection
Iterative commercial vehicle users
IoV platform services such as based on self-developed
operation significantly, help the
development remote vehicle Tbox products. At the
phase Company to lay out in the
project control, intelligent mobile terminal, the
field of commercial
diagnosis and Company optimizes and
vehicle ecology, promote
repair, OTA iterates the mobile phone
the digital transformation
upgrade, etc. In Jiefangxing APP
of products and services,
addition, IoV big continuously, and builds
and enter the commercial
data can be realized the exclusive in-vehicle
cycle of data-driven
in the fields of OS for Jiefang
iteration.
research, commercial vehicles
production, independently. At the
marketing and cloud terminal, it
service based on optimizes the IoV cloud
millions of platform continuously to
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connected vehicles, improve stability, security
so as to support the and concurrency. The
layout of the Company creates the first
Company in IoV brand in the
ecological services. commercial vehicle
industry through the
construction at vehicle
terminal, mobile terminal
and cloud terminal.
Complete the
Develop development of drive Provide competitive drive
transmission axle and AMT products. axle and AMT
products complying Improve the transmission products for
Upgraded
with noise comprehensive the Company's vehicle
transmission
regulations and fuel Developmen competitiveness of platform, improve the
product
consumption t phase assembly products to competitiveness of
development
regulations to make sure that the vehicle products, and
project
improve the comprehensive index is support the Company to
competitiveness of higher than that of main lead the industry
complete vehicles. competitive products at continuously.
home and abroad.
Improve the effective
Break through high
thermal efficiency of
Research on 55% compression ratio fast
diesel engines, achieve
thermal Break through 55% dual-zone combustion
the goal of product low
efficiency power thermal efficiency Research system and other
carbonization, and
system technology of diesel phase technologies to challenge
reserve technologies for
technology of engine. the 55% thermal
complying with the fuel
diesel engine efficiency of commercial
consumption regulations
vehicle diesel engines.
in the next stage.
Build the technical
Break through the
competitiveness of the
Fuel cell system integration and
Company's first-class fuel
integration control technology Research Reach the system power
cell products and fill the
technology of commercial phase of 100 kW.
technical gap of the
development vehicle fuel cell
Company's independent
system.
fuel cell system.
Information about R&D personnel of the Company
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2022 2021 Change ratio
Number of R&D
2,904 2,419 20.05%
personnel (person)
Proportion of R&D
14.27% 11.70% Increased by 2.57%
personnel
Educational background structure of R&D personnel
Bachelor's degree 1,907 1,582 20.54%
Master's degree 943 791 19.22%
Doctor's degree 36 29 24.14%
Junior college degree 18 17 5.88%
Age structure of R&D personnel
Under 30 years old 1,065 802 32.79%
30-40 years old 1,159 1,094 5.94%
41-50 years old 465 348 33.62%
51~60 years old 215 175 22.86%
Information about R&D investment of the Company
Change
2022 2021
ratio
Amount of R&D Investment
2,895,655,097.73 3,328,946,673.10 -13.02%
(CNY)
Proportion of R&D Investment Increased
7.55% 3.37%
in Operation Income by 4.18%
Capitalization amount of R&D
0.00 0.00 0.00%
investment (CNY)
Proportion of capitalized R&D
investment in total R&D 0.00% 0.00% 0.00%
investment
Reasons and influence of major changes in the composition of the R&D personnel
□ Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating income
compared with the previous year
□ Applicable Not applicable
Reasons for and the rationality of great change in the capitalization rate of R&D investment
□ Applicable Not applicable
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5. Cash flow
Unit: CNY
Year-on-year
Item 2022 2021 Increase and
Decrease
Sub-total of cash inflows from
44,778,021,694.80 87,046,159,008.10 -48.56%
operating activities
Sub-total of cash outflows from
49,913,265,664.15 71,843,035,728.94 -30.52%
operating activities
Net cash flows from operating
-5,135,243,969.35 15,203,123,279.16 -133.78%
activities
Sub-total of cash inflows from
1,715,798,644.98 5,138,340,537.10 -66.61%
investing activities
Sub-total of cash outflows from
3,345,556,203.30 2,535,852,081.71 31.93%
investment activities
Net cash flows from investment
-1,629,757,558.32 2,602,488,455.39 -162.62%
activities
Sub-total of cash inflows from
332,790,748.16 -100.00%
financing activities
Sub-total of cash outflows from
3,080,358,351.01 2,380,869,368.70 29.38%
financing activities
Net cash flows from financing
-3,080,358,351.01 -2,048,078,620.54 -50.40%
activities
Net increase in cash and cash
-9,845,007,165.71 15,755,996,673.07 -162.48%
equivalents
Description on main factors influencing major changes in relevant data on a year-on-year basis
Applicable □ Not Applicable
(1) "Subtotal of cash inflows from operating activities" of this year is decreased by 48.56%
compared with the previous year, which is mainly due to the impact of multiple factors such as
shrinking industry demand, and decreasing sales volume and sales outstanding.
(2) "Subtotal of cash outflows from operating activities" of this year is decreased by 30.52%
compared with the previous year, which is mainly due to the impact of multiple factors such as
shrinking industry demand, and decreasing output and purchase expenditure.
(3) "Net cash flows from operating activities" of this year is decreased by 133.78% compared
with the previous year, which is mainly due to the impact of multiple factors such as shrinking
industry demand, and decreasing output, sales volume and payables.
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(4) "Subtotal of cash inflows from investment activities" of this year is decreased by 66.61%
compared with the previous year, which is mainly due to the non-recovery of fixed-term deposits
this year.
(5) "Subtotal of cash outflows from investment activities" of this year is increased by 31.93%
compared with the previous year, which is mainly due to the increase in foreign investment this
year.
(6) "Net cash flows from investment activities" of this year is decreased by 162.62% compared
with the previous year, which is mainly due to the non-recovery of fixed-term deposits and the
increase in foreign investment this year.
(7) "Subtotal of cash inflows from financing activities" of this year is decreased by 100%
compared with the previous year, which is mainly because that there is no business this year.
(8) "Subtotal of cash outflows from financing activities" of this year is increased by 29.38%
compared with the previous year, which is mainly due to the increase in cash paid for dividend
distribution.
(9) "Net cash flows from financing activities" of this year is decreased by 50.40% compared with
the previous year, which is mainly due to the increase in cash paid for dividend distribution.
(10) "Net increase in cash and cash equivalents" of this year is decreased by 162.48% compared
with the previous year, which is mainly due to the impact of multiple factors such as shrinking
industry demand, and decreasing output, sales volume and payables.
Description on reasons for the significant difference between the net cash flows generated from
the operating activities in the reporting period and the net profit of this year
Applicable □ Not Applicable
Refer to Section X - "Financial Report VII", Notes to Items in Consolidated Financial Statements
and Section 60 "Supplementary Information to Cash Flow Statement" for details.
V. Analysis of Non-main Business
□ Applicable Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
End of 2022 Early 2022
Description
Proportion Proportion Increase/Decrease
of Major
Amount in Total Amount in Total in Proportion
Changes
Assets Assets
Monetary 21,041,473,41 30,761,262,72
37.06% 44.09% -7.03%
capital 7.71 1.40
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Accounts 867,090,338.4 1,279,693,951.
1.53% 1.83% -0.30%
receivable 2 70
Contract
11,129,624.75 0.02% 53,047,687.72 0.08% -0.06%
assets
6,382,739,897. 9,268,120,531.
Inventories 11.24% 13.28% -2.04%
83 25
Investment
80,647,597.48 0.14% 80,202,825.09 0.11% 0.03%
property
Long-term
4,692,648,635. 4,766,734,671.
equity 8.27% 6.83% 1.44%
84 74
investments
9,612,922,810. 9,236,789,322.
Fixed assets 16.93% 13.24% 3.69%
28 03
Project under 1,902,143,354. 965,997,208.2
3.35% 1.38% 1.97%
construction 11 3
Right-of-use 198,220,342.5 143,766,265.4
0.35% 0.21% 0.14%
assets 9 4
Contract 1,629,524,704. 2,700,642,475.
2.87% 3.87% -1.00%
liabilities 35 91
Lease
54,814,603.06 0.10% 88,307,218.05 0.13% -0.03%
liabilities
High proportion of overseas assets
□ Applicable Not applicable
2. Assets and liabilities measured at fair value
□ Applicable Not applicable
3. Restrictions on asset rights as of the end of the reporting period
For details, please refer to Note 61 "Assets with restricted ownership or use right" in part VII
"Notes to Items in Consolidated Financial Statements" of Section X - Financial Report.
VII. Investment Analysis
1. Overall
Applicable □ Not Applicable
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Investment Amount in the
Investment Amount in the
Same Period of Previous Year Variation range
Reporting Period (CNY)
(CNY)
516,780,000.00 44,000,000.00 1,074.50%
2. Major equity investments acquired in the reporting period
□ Applicable Not applicable
3. Major non-equity investments in progress in the reporting period
□ Applicable Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable Not applicable
The Company has no securities investment in the reporting period.
(2) 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.
VIII. Sale of Major Assets and Equity
1. Sale of major assets
Applicable □ Not Applicable
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Full Text of 2022 Report of FAW JIEFANG GROUP CO., LTD.
Wheth
Net Profit Whether
Relation er All Wheth
Contributed Implement
Proportion Rela ship Propert er All
by the Asset Prici ed as
of Net Profit ted with the y Credits
to the Listed ng Scheduled.
Contributed Part Counter Rights and
Company Prin If Not,
Transaction Effect of Sale by Asset y party of the Debts Date of
Counter Assets Date of from the ciple Provide the Disclosu
Price (CNY on the Sales to the Tran (Applica Assets Involv Disclos
party Sold Sale Beginning of of Reasons re Index
10,000) Company Listed sacti ble to Involv ed ure
the Current Asse and the
Company in on Related ed Have
Period to the t Measures
the Total Net or Party Have been
Date of Sale Sale Taken by
Profit Not Transact been Transfe
(CNY the
ion) Transfe rred
10,000) Company
rred
This reserve
and
FAW consolidation
http://w
Jiefang will not affect
ww.cninf
Qingdao normal
o.com.cn
Automob operation of
/new/dis
Qingdao ile Plant the Company
Asse closure/s
Land is located and FAW
t tock?sto
Reserve in Plot 4, Decemb Jiefang Implement Decemb
appr ckCode=
and Licang er 16, 110,143.80 87,229.98 Qingdao 237.20% No N/A Yes No ed as er 16,
aisal 000800
Consolid District, 2022 Automobile planned 2022
prici &orgId=
ation Qingdao Plant, and will
ng gssz000
Center City, with be conducive
0800#lat
a total to optimizing
estAnno
area of the asset
uncemen
410,217.3 structure,
t
㎡. revitalizing the
stock assets,
increasing the
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Full Text of 2022 Report of FAW JIEFANG GROUP CO., LTD.
working
capital,
focusing on its
own core
business,
improving the
operation and
management
efficiency,
meeting the
needs of
overall
development
strategy, and
having a
positive impact
on the
financial
condition of
the Company.
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2. Sale of major equity
□ Applicable Not applicable
IX. Analysis on main holding and joint-stock companies
Applicable □ Not Applicable
Major Subsidiaries and Joint-stock Companies Affecting over 10% Net Profit of the Company
Unit: CNY
Com
Company Registered
pany Main Business Total Assets Net Assets Operating income Operating Profit Net Profit
Name Capital
Type
Development,
FAW manufacturing
Subsi CNY
Jiefang and sales of
diarie 10,803,012,5 52,345,947,283.22 19,544,748,824.40 38,331,747,083.88 -305,554,763.44 7,048,469.29
Automotive complete
s 00
Co., Ltd. vehicles and
parts
Handling of
financial
business within
First Joint-
the Group and CNY
Automobile stock 142,573,353,431.3
other financial 10,000,000,0 20,755,902,658.83 6,570,745,844.89 2,611,391,202.35 1,806,213,013.58
Finance comp 6
businesses 00
Co., Ltd. anies
approved by the
People's Bank of
China
Acquisition and disposal of subsidiaries in the reporting period
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Applicable □ Not Applicable
Methods of acquisition and disposal
Company Name Impact on overall production, operation and performance
of subsidiaries in the reporting period
FAW Jiefang Automotive Sales Co.,
Merger by absorption No significant impact on current production and operation
Ltd.
Description of main holding and joint-stock companies: none
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X. Structured Entities Controlled by the Company
□ Applicable Not applicable
XI. Outlook for Future Development of the Company
1. Competition pattern and development trend of the Company's industry
In the next three years, the demand of residents will recover gradually with the economic
recovery, and the market demand of the commercial vehicle industry will increase gradually
compared with that in the tough period of 2022. The report of the 20th National Congress of the
Communist Party of China clearly states that "the great rejuvenation of Chinese nation shall be
promoted by realizing Chinese-type modernization", puts forward 17 goals in becoming a strong
country, and proposes eight requirements for the commercial vehicle industry, including high-
quality development, supply chain guarantee, digital upgrading, overseas breakthroughs and
innovative development. It is estimated that China's GDP growth rate will be about 5% from 2023
to 2025, which is relatively stable. The pressure on logistics industry practitioners will be reduced,
the profitability will be improved, and the domestic commercial vehicle market will recover
steadily. There will be more opportunities in the export market because the competitiveness of
domestic products is improved and the acceptance of Chinese products by foreign countries is
increased. The credit policy for new energy commercial vehicles is planned to be implemented in
2025, so that the penetration rate of new energy commercial vehicles will increase rapidly in the
next three years. The Company will have great opportunities in overseas market, new energy and
solutions in the future.
The medium and heavy truck industry market is more and more mature, and the market
competition is more and more homogeneous, therefore, the industry will have higher requirements
for product innovation and technological innovation, the report of the 20th National Congress of
the Communist Party of China points out that innovation is the first driving force, and enterprises
with strong innovation ability in the industry will have more advantages in the future competition.
FAW Jiefang, as a "world-class professional, refined, distinctive and innovative demonstration
enterprise" certified by SASAC, has five core capabilities: scientific and technological innovation,
lean design, performance development, trial production verification and experimental verification,
and will have more development advantages in future competition.
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2. Development strategy and business plan of the Company
In 2023, the Company will perform all production and operation tasks throughout the year
based on the general idea of "aiming at one goal, focusing on the leading mainline, adhering to
innovation and reform drive and strengthening the overcoming of key problems in five major
fields", always rank first in the industry, improve the awareness of crisis, carry forward the spirit
of struggle, and achieve all objectives and complete all tasks of 2023 with extraordinary action
and innovation. We are committed to making unremitting efforts to become a "world-class
automobile enterprise and a century-old national automobile brand", and contribute to the
construction of a manufacturing power and a transportation power.
(1) Aiming at strategic objectives, adhering to strategic guidance, accelerating the
implementation of strategies and strengthening strategic management. Refresh the strategic
planning continuously, strengthen key special research on topics such as new models, and explore
new development paths constantly based on the development trend of traditional and emerging
industries. Accelerate the implementation process of solutions, build systematic solution system
capability and market competitiveness, and create new growth points for the Company's profit.
(2) Focusing on the leading mainline of market and product, building first-class marketing
power and product power vigorously, and consolidating the first place of commercial vehicles.
Keep the absolute first place of medium and heavy-duty trucks and expand their leading
advantages in China. Make sure that the growth rate of light trucks is the first, and the export of
new energy vehicles overseas will increase.
(3) Adhering to innovation and reform drive, building core advantages, and promoting
transformation and development. Keep up with cutting-edge technology and increase R&D
investment to ensure technological innovation. Promote the exploration of new models,
incubation of new businesses and mining of new value points, expand the scope of ecosystem,
and improve the revenue capacity of new business forms continuously to ensure business form
innovation. Promote IPD change and integrated change firmly, and improve the ability of
autonomous change continuously to achieve management change.
(4) Strengthening the overcoming of key problems in five major fields, accelerating the
improvement of capabilities, and promoting the business development to a new level. Strengthen
the improvement of profitability, and focus on the minimum profitability based on the general
idea of "increasing margin, reducing cost and increasing income"; strengthen the improvement of
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digital and intelligent transformation capability, improve the 4A architecture on the basis of
"1143" framework, enhance the digital system capacity building, and accelerate the deep
integration of business; strengthen the improvement of comprehensive quality capability and
accelerate the creation of world-class quality competitiveness; strengthen the improvement of
supply chain security guarantee capability, focus on building world-class procurement
competitiveness, improve the capability of procurement integration system, pay close attention to
the replacement of domestic resources, and improve the resilience and security level of the supply
chain steadily; strengthen the improvement of manufacturing technology capacity, adjust the
resource layout, and pay more attention to new energies.
(5) Aiming at the goals of various business sectors, cooperating with each other, improving
the overall operation capability and level, and supporting the overall development of the
Company.
3. Possible risks to the Company's operation
(1) International market competition risk
Risk description:
The international situation in 2023 is still complex and severe, and there continues to be
intense competition in the domestic commercial vehicle market, with many factors interacting
with each other. Amid the interweaving of both positive and negative factors in the market, it is
expected that the overseas demand will slow down moderately. As a result, the competition in the
overseas market will become more intense, accompanied by unfavorable situations such as
foreign car companies accelerating their layout in Chinese market and the increasing cautious
attitude of commercial vehicle consumers. The company is facing significant competitive
pressures.
Solutions:
In order to enhance the international competitiveness of the Company and stabilize its global
market position, the Company plans overseas exclusive products with international
competitiveness, strives to meet the needs of the international market, and comprehensively
promotes more high-quality products to key markets. Explore the potential for competition from
multiple dimensions, rely on overseas marketing network with a certain scale, leverage strengths,
improve image, and expand international market influence. Increase brand publicity in key
markets, coordinate with marketing strategies, and promote the achievement of international
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market business goals.
(2) Risk of market environment change of new energy vehicles
Risk description:
The new energy vehicle market continues to grow rapidly, with both production and sales
reaching new highs. Affected by the overall environment, the production and sales of new energy
commercial vehicles continue to rise, and the penetration rate is steadily increasing. In the next
three years, the production, sales and penetration rate of new energy commercial vehicles in
China will usher in rapid growth. In this environment, the new energy policy will be further
adjusted, and the intense competition between the Company and its competitors will continue for
a long time. At the same time, under the bargaining pressure of upstream and downstream
enterprises, the market position of new energy commercial vehicles will be challenged in a
complex environment.
Solutions:
Based on the Company's strategy, carry out a value analysis of the entire industry chain,
identify unfavorable factors in the new energy field, enhance the control ability of core
technologies, and improve the new energy ecosystem. Lay out product platforms, targeting typical
areas of new energy, conducting in-depth research on promotional scenarios, and promoting the
entry of competitive products into the market through partnerships with powerful enterprises and
other ways.
(3) Domestic market risk
Risk description:
Due to the decline in economic growth, the domestic commercial vehicle market is over-
saturated, and the competition for existing stocks will continue. Despite slight improvement in the
logistics industry, unfavorable factors such as energy price fluctuations caused by international
turbulence continue to greatly suppress the demand for commercial vehicles in the domestic
market. It is expected that the Company will face certain market competition pressure
domestically.
Solutions:
Adapt to market changes by formulating appropriate policies and promotion strategies, while
consolidating current competitiveness, actively exploring underserved and untapped niche
markets, and seeking growth. Continue to carry out activities in key regions and important
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channels, look for opportunities, explore demand, enhance product competitiveness and support
market competition situation. Strengthen the collection of leads, with all employees approaching
for the end customers to seize their demands.
XII. Reception, Investigation, Communication, Interview and Other Activities in the
Reporting Period
Applicable □ Not Applicable
Main Index of
Contents of Basic
Recept Type of
Reception Discussion Informat
Reception Time ion Receptio Reception Object
Location and ion of
Mode n Object
Information Investiga
Provided tion
Yunjun AMC, Springs Capital, Tebon
Fund, Fujian Danjin Hengxin Asset
Management Co., Ltd., Fullgoal Fund,
ICBC Ansheng Asset Management Co.,
Ltd., GF Securities, Guolian Securities,
Guosen Securities, Huatai Securities,
Huaxi Securities, China Everwin Asset,
Horizon Asset, Shanghai Huili Asset
Management Co., Ltd., Bocommlife Asset
Management Co., Ltd., Minsheng
Securities, Nanfang Tianchen (Beijing)
Operation
Investment Management Co., Ltd.,
and
Nanshan Life Insurance Co., Ltd., Ping An
Teleph developmen
Asset Management Co., Ltd., Credit
Meeting one t planning http://w
Organiza Suisse, UBS, Three Gorges Capital
March 31, 2022 room of the commu of the ww.cninf
tion Holding Co., Ltd., Shanghai Trust,
company nicatio Company, o.com.cn
Whitestream Fund, Shanghai Electric
n no relevant /new/dis
Group Finance Co., Ltd., Tianni
information closure/s
Investment, Shangcheng Investment,
is provided tock?sto
Shengang Securities, Shenguotou
ckCode=
Investment, Capital Securities, TF
000800
Securities, Tianhong Asset Management,
&orgId=
Himalaya Capital, Yadoo Investment,
gssz000
Changjing Securities, China Merchants
0800#res
Fund, China Life, CICC, Sinowise
earch
Investment, China Securities, CITIC
Securities, China Post Fund, Brighter
Investment, CLOUDALPHA MASTER
FUND, destination capital, Greencourt
Capital, GREENWOODS, Polunin Capital
Operation
and
developmen
Meeting t planning
Investors participating in FAW Jiefang
April 14, 2022 room of the Others Others of the
2021 Annual Performance Presentation
company Company,
no relevant
information
is provided
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Operation
and
developmen
Meeting Field Jilin Securities Regulatory Bureau, t planning
Organiza
July 22, 2022 room of the Resear Northeast Securities, small and medium- of the
tion
company ch sized investors Company,
no relevant
information
is provided
BRILLIANCE - BRILLIANT
PARTNERS FUND LP, CICC, Essence
Securities Asset Management, Fullgoal
Fund Management Co Ltd, Headwater,
Oasis, POLUNIN CAPITAL PARTNERS
LTD, Stoneylake, Beijing Yunjun AMC,
Truevalue Asset Management, Eastmoney
Securities, Orient Fund, GF Securities, Operation
Guolian Securities, Haitong Asset and
Teleph Management, Hangzhou Xinghai Weilai developmen
Meeting one Private Fund, Haojun Investment, Huaxi t planning
October 31, Organiza
room of the commu Securities, Credit Suisse, UBS, Shaanxi of the
2022 tion
company nicatio Xinghe Canyun Asset Management Co., Company,
n Ltd., KS Fund, SAIC Finance, Tianni no relevant
Investment, Shanghai Zhongyu information
Investment Co., Ltd., Shenzhen Hengyuan is provided
Asset Management Co., Ltd., Shenzhen
Longgang District Yindao Fund
Investment Co., Ltd., Capital Securities,
Taikang Pension, Himalaya Capital, Yadoo
Investment, Yingda Asset Management
Co., Ltd., Changjing Securities, PICC,
CITIC Securities
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Section IV Corporate Governance
I. Basic Information about Corporate Governance
In 2022, the Company continued to improve its governance structure, established and
improved its internal management and control system, and improved the standard operation level
in strict accordance with relevant laws and regulations such as the Company Law, the Securities
Law, the Code of Corporate Governance for Listed Companies, and the Rules Governing the
Listing of Stocks on the Shenzhen Stock Exchange, as well as relevant normative documents of the
China Securities Regulatory Commission and the Shenzhen Stock Exchange, and the Articles of
Association. At present, the actual governance situation of the Company meets requirements of
the China Securities Regulatory Commission's normative documents for the governance of listed
companies.
The Company revised the Articles of Association and implemented the approval procedures
of the Board of Directors and the shareholders’ meeting strictly in the reporting period in
combination with the actual situation according to relevant requirements of China Securities
Regulatory Commission and SASAC in order to further improve its governance structure since it
has repurchased and canceled the restricted shares that have been granted to some incentive
objects but have not yet been released from sale according to the Restricted Share Incentive Plan
(Draft), resulting in changes in registered capital and share capital. In addition, the Company
formulated the Working System of the Secretary of the Board of Directors, revised the Investor
Relations Management System, and implemented the approval procedures of the Board of
Directors strictly in order to further improve its standardized operation ability and protect the
legitimate rights and interests of investors.
1. Shareholders and shareholders’ meeting
The Company standardizes the convening, holding and voting procedures of the shareholders’
meeting in strict accordance with the Company Law, the Code of Corporate Governance of Listed
Companies, the Rules for Shareholders’ Meeting of Listed Companies, the Articles of Association,
etc. The shareholders’ meeting combines on-site and online voting to facilitate shareholders to
fully exercise their rights. There is a shareholder exchange link at the shareholders’ meeting, in
which shareholders can fully express their opinions and suggestions to ensure the right of speech
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of minority shareholders. The Company employs professional lawyers to witness and provide
legal opinions on the convening of the meeting, the qualifications of attendees and the convener,
voting procedures and voting results, etc., so as to ensure standardized operation of the meeting.
2. Directors and the Board of Directors
The Board of Directors of the Company consists of 9 directors, including 3 independent
directors. The composition and qualifications of the members of Board of Directors comply with
relevant laws and regulations. In the reporting period, all directors of the Company were able to
do their work according to relevant laws and regulations, attend the board meeting and the
shareholders’ meeting, perform their duties faithfully and diligently, and protect the interests of
the Company and shareholders. The Board of Directors of the Company has three special
committees, namely, the Strategy Committee, the Audit and Risk Control Committee and the
Remuneration and Appraisal Committee, each of which operates in strict accordance with the
Articles of Association, the Rules of Procedure of the Board of Directors and their working rules,
studies various professional matters, and provides scientific and professional opinions and
suggestions for the decision-making of the Board of Directors.
3. Supervisors and the Board of Supervisors
The Board of Supervisors of the Company consists of 5 supervisors, including 4 employee
representative supervisors. The composition and qualifications of the members of Board of
Supervisors comply with relevant laws and regulations. In the reporting period, all supervisors of
the Company can perform their duties conscientiously according to the Articles of Association and
the Rules of Procedure of the Board of Supervisors, supervise the regular reports, related
transactions, major matters, performance of directors and senior executives, etc., and protect
legitimate interests of the Company and shareholders.
4. Relationship between controlling shareholders and listed companies
Controlling shareholders of the Company can regularize their own behaviors according to the
Code of Corporate Governance for Listed Companies, the No. 1 Guidelines for Self-discipline
Supervision of Listed Companies - Standardized Operation of Listed Companies on the Main
Board and the Articles of Association, and do not interfere with the operation and decision-
making activities of the Company directly or indirectly without obtaining permission of the
shareholders’ meeting, or occupy non-operational funds of the Company, or obtain guarantee
from the Company. The Company has independent and complete business and independent
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operation capabilities, and is independent of controlling shareholders in terms of business,
personnel, assets, organizations and finance.
5. Information disclosure and transparency
The Company discloses relevant information truthfully, accurately, completely, timely and
fairly in strict accordance with relevant laws and regulations as well as the Major Information
Internal Reporting System and the Information Disclosure Management System, and designates
newspapers and websites such as Securities Times, China Securities Journal and CNINFO as the
media for information disclosure, so as to provide equal opportunities for all investors to obtain
information of the Company. The Company attaches great importance to investor relations
management, strengthens communication with investors through investigation, telephone, email,
interactive platform, etc., and responds to investors' consultations carefully. It shall strengthen the
management of internal information, register insiders earnestly, and safeguard the legitimate
rights and interests of investors.
6. Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of stakeholders,
attaches importance to its social responsibility, communicates and exchanges actively with
stakeholders, strives to coordinate and balance the interests of shareholders, employees, society
and other parties, coexists harmoniously with stakeholders, and promotes sustainable, stable and
healthy development of the Company together with them.
Whether there is significant difference between the actual situation of corporate governance and
laws, administrative regulations and the regulations on the governance of listed companies issued
by the China Securities Regulatory Commission
□ Yes No
There is no significant difference between the actual situation of corporate governance and laws,
administrative regulations and the regulations on the governance of listed companies issued by the
China Securities Regulatory Commission.
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II. Independence of the Company from Controlling Shareholders and Actual Controllers in
Terms of Guaranteeing the Company's Assets, Personnel, Finance, Organizations and
Business
The Company operates in strict accordance with relevant laws and regulations, has
independent and complete operation capabilities, and is completely independent from controlling
shareholders in terms of business, personnel, assets, organizations, finance, etc. Specific steps are
as follows:
1. Business: The Company has independent business operation systems for production,
procurement and sales, has complete legal person property rights, can organize and take
production and operation activities independently, and is independent of controlling shareholders.
2. Personnel: The Company has independent personnel management organization and
system, and establishes an independent and complete salary management system. The senior
executives of the Company are full-time employees and receive salary from the Company.
3. Assets: The Company has independent procurement, production and sales systems and
supporting facilities, and has rights to own, control, dispose of and obtain earnings from its assets.
No asset of the Company is occupied by controlling shareholders.
4. Organization: The Company has independent production, operation and office
organizations, and has set up a perfect organizational structure. The Board of Directors, the Board
of Supervisors and other internal organizations operate independently, and do not work together
with controlling shareholders.
5. Finance: The Company has an independent and complete financial department which is
equipped with full-time financial personnel, establishes an independent and standardized
accounting system and financial management system, opens an independent bank account, and
pays taxes independently according to law.
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III. Horizontal Competition
Applicable □ Not Applicable
Type of Relationship Work Progress
Problem Company Nature of
with Listed Causes Solutions and Follow-up
type Name company
Company Plan
FAW Harbin Light Automobile Co.,
Ltd. (hereinafter referred to as
In 2020, the listed company
"Harbin Light Automobile") and FAW
completed major asset
Hongta Yunnan Automobile
restructuring, and its main business
Manufacturing Co., Ltd. (hereinafter
was changed to the R&D,
referred to as "FAW Hongta") are in a
production and sales of commercial
state of discontinuation or loss
vehicles. FAW Harbin Light
currently, with heavy burden and
Automobile Co., Ltd. and FAW
unstable profitability. FAW promises
China FAW Hongta Yunnan Automobile
Horizontal Controlling that it will entrust all shares of Harbin Perform as
Group Co., Others Manufacturing Co., Ltd., which are
competition shareholder Light Automobile and FAW Hongta promised
Ltd. members of FAW Light
under its actual control to Jiefang
Commercial Vehicle Co., Ltd., a
Limited for management, and inject
subsidiary of FAW, are engaged in
the equities of Harbin Light
some light truck businesses. There
Automobile and FAW Hongta under
is horizontal competition or
its actual control to listed companies
potential horizontal competition
in batches or at one time in an
between them and the listed
appropriate way, or transfer them to
company.
other unrelated third parties at a
reasonable price and in a reasonable
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way, or prevent the light truck
company from engaging in light truck
related businesses by exercising
shareholders' rights, and perform
relevant internal approval procedures
as soon as possible after the above
procedures are initiated within 12
months after meeting the requirements
that the return on net assets of Harbin
Light Automobile and FAW Hongta is
not lower than that of listed
companies in the same period and
increasing the earnings per share of
listed companies after restructuring.
In 2020, the listed company Harbin Light Automobile and FAW
completed major asset Hongta are in a state of
restructuring, and its main business discontinuation or loss currently, with
was changed to the R&D, heavy burden and unstable
production and sales of commercial profitability. FAW Car Co., Ltd.
Horizontal Controlling China FAW vehicles. FAW Harbin Light promises that it will urge to entrust all Perform as
Others
competition shareholder Co., Ltd. Automobile Co., Ltd. and FAW shares of Harbin Light Automobile promised
Hongta Yunnan Automobile and FAW Hongta under its actual
Manufacturing Co., Ltd., which are control to Jiefang Limited for
members of FAW Light management, and inject the equities of
Commercial Vehicle Co., Ltd., a Harbin Light Automobile and FAW
subsidiary of FAW Car Co., Ltd., Hongta under its actual control to
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are engaged in some light truck listed companies in batches or at one
businesses. There is horizontal time in an appropriate way, or transfer
competition or potential horizontal them to other unrelated third parties at
competition between them and the a reasonable price and in a reasonable
listed company. way, or prevent the light truck
company from engaging in light truck
related businesses by exercising
shareholders' rights, and perform
relevant internal approval procedures
as soon as possible after the above
procedures are initiated within 12
months after meeting the requirements
that the return on net assets of Harbin
Light Automobile and FAW Hongta is
not lower than that of listed
companies in the same period and
increasing the earnings per share of
listed companies after restructuring.
IV. Information on Annual Shareholders’ Meeting and Extraordinary Shareholders’ Meeting Held in the Reporting Period
1. Shareholders’ meeting in the reporting period
Participation Ratio
Session Meeting Type Date Date of Disclosure Meeting Resolution
of Investors
First extraordinary Extraordinary Reviewed and approved the Proposal on
84.94% February 16, 2022 February 17, 2022
shareholders’ shareholders’ Estimated Amount of Daily Related Transactions
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meeting of 2022 meeting in 2022, the Proposal on Estimated Amount of
Financial Business with First Automobile Finance
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’ shareholders’ 83.82% April 29, 2022 April 30, 2022
Profit Distribution Plan, the 2021 Annual Report
Meeting meeting
and its Summary, and the Proposal on Electing Li
Hongjian as the Non-independent Director of the
Company.
Reviewed and approved the Proposal on Electing
Liu Yanchang as a Non-independent Director of
Second the Company, the Proposal on Repurchase and
Extraordinary
Extraordinary Cancellation of Partial Restricted Shares in the
shareholders’ 84.14% September 16, 2022 September 17, 2022
Shareholders’ Phase I Restricted Share Incentive Plan, the
meeting
Meeting of 2022 Proposal on Change of Registered Capital of the
Company and the Proposal on Amending the
Articles of Association
Reviewed and approved the Proposal on Renewal
Third Extraordinary Extraordinary of Employment of Financial Audit Institutions, the
Shareholders’ shareholders’ 83.91% November 18, 2022 November 19, 2022 Proposal on Renewal of Employment of Internal
Meeting of 2022 meeting Control Audit Institutions, the Proposal on
Repurchase and Cancellation of Partial
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Restricted Shares in the Phase I Restricted Share
Incentive Plan, the Proposal on Change of
Registered Capital of the Company and the
Proposal on Amending the Articles of Association
Fourth Extraordinary Extraordinary Reviewed and approved the Proposal on
Shareholders’ shareholders’ 2.11% December 14, 2022 December 15, 2022 Increasing the Estimate of Daily Related Party
Meeting of 2022 meeting Transactions in 2022
2. Preferred shareholders with resumed voting rights request to convene an extraordinary shareholders' meeting
□ Applicable Not applicable
V. Directors, Supervisors and Senior Executives
1. Basic Information
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Reaso
Number Number
ns for
Number of of of
Number of the
Shares Held Increased Reduced Other
Shares Held Increa
Employme at the Shares in Shares in Increase/
Name Position Gender Age Start Date of Tenure Ending Date of Tenure at the End of se or
nt Status Beginning of the the Decrease
the Period Decre
the Period Current Current (share)
(share) ase of
(share) Period Period
Share
(share) (share)
s
Chairman of
Hu Hanjie In-service Male 58 April 23, 2020 April 21, 2023 334,331 334,331
the Board
Wu Bilei Director In-service Male 52 October 14, 2021 April 21, 2023 228,552 228,552
Zhang
Director In-service Male 50 June 23, 2020 April 21, 2023 228,493 228,493
Guohua
Bi
Director In-service Male 50 September 15, 2021 April 21, 2023
Wenquan
Li
Director In-service Male 50 April 29, 2022 April 21, 2023
Hongjian
Liu
Director In-service Male 59 September 16, 2022 April 21, 2023
Yanchang
Han Independent
In-service Male 56 April 22, 2020 April 21, 2023
Fangming director
Mao Independent
In-service Male 61 April 22, 2020 April 21, 2023
Zhihong director
Dong Independent
In-service Male 58 April 22, 2020 April 21, 2023
Zhonglang director
Departure
Yang Xiao Director Male 49 April 22, 2020 August 29, 2022
from office
Liu Director Departure Male 51 June 23, 2020 March 29, 2022
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Changqin from office
g
Chairman of
Wang
Board of In-service Male 59 September 15, 2021 April 21, 2023
Yanjun
Supervisors
Employee
Xu Haigen In-service Male 58 April 22, 2020 April 21, 2023
Supervisor
Wang Employee
In-service Male 54 April 22, 2020 April 21, 2023
Lijun Supervisor
Duan Employee
In-service Male 52 April 22, 2020 April 21, 2023
Yinghui Supervisor
Employee
Ren Ruijie In-service Male 39 April 22, 2020 April 21, 2023
Supervisor
General
Wu Bilei In-service Male 52 September 17, 2021 April 21, 2023
Manager
Executive
Yu Deputy
In-service Male 50 November 28, 2022 April 21, 2023
Changxin General
Manager
Deputy
Ji Yizhi General In-service Male 53 October 19, 2022 April 21, 2023 192,778 192,778
Manager
Deputy
Tian
General In-service Male 50 October 19, 2022 April 21, 2023 192,778 192,778
Haifeng
Manager
Deputy
Li Sheng General In-service Male 46 October 19, 2022 April 21, 2023 192,778 192,778
Manager
Kong Deputy Departure Male 50 March 26, 2020 October 19, 2022 228,498 228,498
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Dejun General from office
Manager
Deputy
Wang Departure
General Male 59 March 26, 2020 October 19, 2022 253,496 253,496
Ruijian from office
Manager
Deputy
Shang Departure
General Male 56 March 26, 2020 October 19, 2022 228,631 228,631
Xingwu from office
Manager
Deputy
Departure
Ou Aimin General Male 56 March 26, 2020 October 19, 2022 229,010 229,010
from office
Manager
Secretary of
Wang
the Board of In-service Male 39 July 23, 2020 April 21, 2023 192,778 192,778
Jianxun
Directors
Total -- -- -- -- -- -- 2,502,123 0 0 0 2,502,123 --
Whether any director or supervisor during term of office leaves office or any senior executive is dismissed in the reporting period
Yes □ No
(1) In the reporting period, Yang Xiao and Liu Changqing, directors of the Company, resigned from their posts as directors of the 9th Board of
Directors and members of the Special Committee of the Board of Directors due to job transfer, and will hold no post in the Company any more
after the resignation. Kong Dejun, Wang Ruijian, Shang Xingwu and Ou Aimin, the Deputy General Managers, resigned due to job-related
reasons, in which Wang Ruijian continued to hold other posts in the Company, and Kong Dejun, Shang Xingwu and Ou Aimin did not hold
other posts in the Company.
(2) The restricted shares held by Kong Dejun, Shang Xingwu and Ou Aimin were partially repurchased and canceled, and the cancellation
completion announcement was issued on January 17, 2023 according to the Restricted Share Incentive Plan (Draft) of the Company. After
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resigning from the post of Deputy General Manager of the Company, Kong Dejun, Wang Ruijian, Shang Xingwu and Ou Aimin will strictly
abide by the Several Provisions on Reduction of Shares Held by Shareholders, Directors, Supervisors and Senior Executives of Listed
Companies, the No. 1 Guidelines for Self-discipline Supervision of Listed Companies - Standardized Operation of Listed Companies on the Main
Board, and Detailed Rules for the Implementation of Reducing Shares Held by Shareholders, Directors, Supervisors and Senior Executives of
Listed Companies on the Shenzhen Stock Exchange, etc.
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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 Yanchang Director Elected September 16, 2022
Liu Departure
Director March 29, 2022 Job changes
Changqing from office
Departure
Yang Xiao Director August 29, 2022 Job changes
from office
Executive Deputy
Yu Changxin Appointed November 28, 2022
General Manager
Deputy General
Ji Yizhi Appointed October 19, 2022
Manager
Deputy General
Tian Haifeng Appointed October 19, 2022
Manager
Deputy General
Li Sheng Appointed October 19, 2022
Manager
Deputy General Departure
Kong Dejun October 19, 2022 Work
Manager from office
Deputy General Departure
Wang Ruijian October 19, 2022 Work
Manager from office
Shang Deputy General Departure
October 19, 2022 Work
Xingwu Manager from office
Deputy General Departure
Ou Aimin October 19, 2022 Work
Manager from office
2. Employment status
Professional background, main work experience and main responsibilities of current directors,
supervisors and senior executives of the Company
Director:
Mr. Hu Hanjie is currently the General Manager Assistant of FAW, the Chairman and
Secretary of the Party Committee of FAW JIEFANG GROUP CO., LTD., the Executive Director
and Secretary of the Party Committee of FAW Jiefang Automotive Co., Ltd., and a deputy to the
15th Changchun Municipal People's Congress. He has served successively as the Deputy General
Manager of FAW - Volkswagen Automobile Co., Ltd. and General Manager of Sales Company,
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Secretary of the Party Committee and Executive Deputy General Manager of FAW Jiefang
Automotive Co., Ltd., General Manager and Secretary of the Party Committee of FAW Jiefang
Automotive Co., Ltd., Executive Deputy Director and Deputy Secretary of the Party Committee
of FAW Jiefang Business Headquarters (General Manager and Deputy Secretary of the Party
Committee of FAW Jiefang Automotive Co., Ltd), General Manager Assistant of FAW Car Co.,
Ltd., Deputy Director of Jiefang Business Headquarters, Deputy Secretary of the Party Committee
(General Manager and Deputy Secretary of the Party Committee of FAW Jiefang Automotive Co.,
Ltd.), General Manager Assistant of FAW Car Co., Ltd., Director of Jiefang Business
Headquarters, Secretary of the Party Committee (Chairman and Secretary of the Party Committee
of FAW Jiefang Automotive Co., Ltd.), etc.
Mr. Wu Bilei is currently the General Manager and Deputy Secretary of the Party Committee
of FAW JIEFANG GROUP CO., LTD., the General Manager and Deputy Secretary of the Party
Committee of FAW Jiefang Automotive Co., Ltd., and the General Manager of the medium and
heavy vehicle product line of the headquarters. He has served successively as the Deputy Chief
Engineer of Technical Center of China FAW Group Corporation and Deputy Director of Product
Management Department of FAW Jiefang Automotive Co., Ltd., Vice President of Commercial
Vehicle R&D Institute of Technical Center of China FAW Group Corporation and Deputy
Director of Product Management Department of FAW Jiefang Automotive Co., Ltd., Vice
President of Commercial Vehicle Development Institute of Jiefang Business Headquarters, Vice
President of Commercial Vehicle Development Institute of Jiefang Business Headquarters and
Deputy Director of Product Management Department of Jiefang Business Headquarters (Jiefang
Company). President and Secretary of the Party Committee of Commercial Vehicle Development
Institute of Jiefang Business Headquarters, President and Secretary of the Party Committee of
Commercial Vehicle Development Institute of FAW Jiefang Automotive Co., Ltd., Deputy
General Manager of FAW JIEFANG GROUP CO., LTD., etc.
Mr. Zhang Guohua is currently the Deputy Secretary of the Party Committee and Chairman
of the Labor Union of FAW JIEFANG GROUP CO., LTD. and the Deputy Secretary of the Party
Committee and Chairman of the Labor Union of FAW Jiefang Automotive Co., Ltd He has
served successively as the Senior Manager of Organization and Personnel Department and
Director of Senior Manager Management Office of China FAW Group Corporation, Senior
Manager of Organization and Personnel Department and Senior Manager of Social Business
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Management Department of China FAW Group Corporation, Deputy General Manager (Deputy
Director) of Human Resources Department (Party Committee Cadre Department) of China FAW
Group Corporation, etc.
Mr. Bi Wenquan is currently the General Manager of Production Logistics Department of
FAW. He has served successively as the Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection, Head of the Labor Union of Tianjin FAW Xiali
Automobile Co., Ltd., Executive Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of FAW Tianjin
Business Division, Deputy General Manager of FAW Car Co., Ltd., Deputy General Manager of
FAW Bestune Car Co., Ltd., General Manager of FAW Engineering and Production Logistics
Department, etc.
Mr. Li Hongjian is currently the leader of the preparatory team of the National Automotive
Intelligent Technology Innovation Center. He has served successively as the Director of
Intelligent and Connected Vehicle R&D Department of FAW Technology Center, Vice President
of FAW R&D Institute and President of Innovation Technology Research Institute, and General
Manager of FAW Strategy and Innovation Planning Department.
Mr. Liu Yanchang is currently a full-time external director, convener/team leader of the
subsidiary of FAW Financial Management Department (Office of the Board of Directors). He has
served successively as the Deputy Secretary of the Party Committee, Secretary of the Commission
for Discipline Inspection and Chairman of the Labor Union of FAW Jiefang Automotive Co., Ltd.,
Deputy Secretary of the Party Committee and Chairman of the Labor Union of FAW JIEFANG
GROUP CO., LTD., Deputy Secretary of the Party Committee, Head of the Labor Union and
Chairman of the Labor Union of FAW-Volkswagen Automobile Co., Ltd.
Mr. Han Fangming is currently the President of the Chahar Institute, a think tank on foreign
affairs and international relations, and a senior consultant to the Board of Directors of TCL
Technology Group. He is also the Vice Chairman of China Overseas-educated Scholars
Development Foundation, the Deputy Editor-in-Chief of Public Diplomacy Quarterly of CICG,
the Vice Chairman of China National Association For International Studies, the Vice Chairman of
China Southeast Asian Research Association, the Director of the National Council of the Chinese
People's Association for Friendship with Foreign Countries, and the Director of Chinese People's
Institute of Foreign Affairs. He has served successively as a member of the 10th, 11th, 12th and
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13th CPPCC, Deputy Director of the CPPCC Foreign Affairs Committee, and Director, Executive
Director and Vice Chairman of TCL Group.
Mr. Mao Zhihong is currently the Director, Professor and Doctoral Supervisor of the
Department of Accounting, School of Business and Management, Jilin University. He is also the
Vice President of Changchun Accounting Society. He has served as the Associate Professor of
Jilin University of Finance and Trade (which was renamed Changchun University of Taxation, i.e.
the current Jilin University of Finance and Economics).
Mr. Dong Zhonglang is currently the managing partner of Zhuhai Yinshan Capital Equity
Investment Management Co., Ltd. He has served successively as the Director of Linde (Xiamen)
Forklift Co., Ltd., the General Manager of Shanghai Oulin Logistics Co., Ltd., the Logistics
Director of Weichai Power Group, and the partner of Eastern Bell Capital (Shanghai).
Supervisor:
Mr. Wang Yanjun is currently the General Counsel and Deputy General Manager of FAW
Audit and Legal Department (who is responsible for presiding over the work). He has served
successively as the General Manager and Secretary of the Party Committee of FAW-GM Hongta
Yunnan Automobile Manufacturing Co., Ltd., the Deputy General Manager of FAW Asset
Management Co., Ltd. (who is responsible for presiding over the work), and General Manager of
FAW Asset Management Co., Ltd., etc.
Mr. Xu Haigen is currently a Senior Executive Manager of the Powertrain Division of FAW
Jiefang Automotive Co., Ltd. He has served successively as the Deputy General Manager of Wuxi
Diesel Engine Branch of FAW Jiefang Automotive Co., Ltd., the Deputy Secretary of the Party
Committee, Secretary of the Commission for Discipline Inspection and Chairman of the Labor
Union of Wuxi Diesel Engine Factory of FAW Jiefang Automotive Co., Ltd., the Deputy
Secretary of the Party Committee, Secretary of the Commission for Discipline Inspection and
Chairman of the Labor Union of Engine Division of Jiefang Business Headquarters, and the
Deputy Secretary of the Party Committee, Secretary of the Commission for Discipline Inspection
and Chairman of the Labor Union of Engine Division of FAW Jiefang Automotive Co., Ltd.
Mr. Wang Lijun is currently the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Head of the Labor Union of Qingdao Vehicle Business
Division (FAW Jiefang Qingdao Automobile Plant) of FAW Jiefang Automotive Co., Ltd. He has
served successively as the Deputy Secretary of the Party Committee (who is responsible for
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presiding over the work), the Secretary of the Commission for Discipline Inspection and the
Chairman of the Labor Union of the Distribution Center of FAW Car Co., Ltd., the Manager of
the Distribution Plant of FAW-Volkswagen Automobile Co., Ltd., the Director of the Powertrain
Division of FAW-Volkswagen Automobile Co., Ltd. and the Manager of the Changchun
Distribution Plant, the Director of the Distribution Center and Secretary of the Party Committee
of FAW Car Co., Ltd., and the Deputy Secretary of the Party Committee, Secretary of the
Discipline Inspection Commission and Chairman of the Labor Union of the Transmission
Division of FAW Jiefang Automotive Co., Ltd.
Mr. Duan Yinghui is currently the Director and Secretary of the Party Committee of the
Truck Factory of FAW Jiefang Automotive Co., Ltd. He has served successively as the Deputy
General Manager of FAW Jiefang (Qingdao) Automotive Co., Ltd. and the Deputy Director of
FAW Jiefang Product Management Department, the Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission and Head of the Labor Union of Qingdao
Vehicle Division (FAW Jiefang (Qingdao) Automotive Co., Ltd.) of FAW Jiefang Business
Headquarters, and the Deputy Secretary of the Party Committee, Secretary of the Discipline
Inspection Commission and Chairman of the Labor Union of FAW Jiefang Qingdao Vehicle
Division (FAW Jiefang (Qingdao) Automotive Co., Ltd.).
Mr. Ren Ruijie is currently the Director of the Party-Masses Work Department of FAW
JIEFANG GROUP CO., LTD. He has served successively as the Acting Director and Director of
the Party Committee Organization Office of the Party Committee Work Department of FAW
Jiefang Automotive Co., Ltd., the Office Director of the Management Department of FAW
Jiefang Automotive Co., Ltd., the Office Director of the Management Department of FAW
Jiefang Business Headquarters (FAW Jiefang), the Director of Party Building Office of Party-
Masses Work Department of FAW Jiefang Automotive Co., Ltd., and the Deputy Director of
Party-Masses Work Department of FAW Jiefang Automotive Co., Ltd. (who is responsible for
presiding over the work), etc.
Senior executives other than directors and supervisors:
Mr. Yu Changxin is currently the Executive Deputy General Manager of FAW JIEFANG
GROUP CO., LTD. and the Executive Deputy General Manager of FAW Jiefang Automotive Co.,
Ltd. He has served successively as the Deputy General Manager of Marketing Headquarters
(Sales Company) of FAW Jiefang Business Headquarters (Jiefang Company) and the Deputy
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General Manager of Qingdao Business Division and Head of Marketing Service Department of
Jiefang Company, the Deputy Director of Marketing Headquarters (Deputy General Manager of
FAW Jiefang Automobile Sales Company) of FAW Jiefang Automotive Co., Ltd. and the Deputy
General Manager of Qingdao Vehicle Division (Qingdao Company), the General Manager of
Commercial Vehicle Overseas Marketing Department of FAW Jiefang Automotive Co., Ltd. and
Deputy General Manager of China FAW Group Import & Export Co., Ltd., the Deputy General
Manager of China FAW Group Import & Export Co., Ltd., and the General Manager and Deputy
Secretary of the Party Committee of China FAW Group Import & Export Co., Ltd., etc.
Mr. Ji Yizhi is currently the Deputy General Manager of FAW JIEFANG GROUP CO., LTD.
and the Deputy General Manager and General Counsel of FAW Jiefang Automotive Co., Ltd. and
the General Manager of New Energy Business Division. He has served successively as the
Executive Deputy General Manager of the Engine Division of FAW Jiefang Automotive Co., Ltd.
and the General Manager and Secretary of the Party Committee of FAW Jiefang Dalian Diesel
Engine Co., Ltd., the General Manager and Secretary of the Party Committee of the Bus Division
of FAW Jiefang Automotive Co., Ltd. (the Manager and Secretary of the Party Committee of the
Bus Factory), the General Manager and Secretary of the Party Committee of the Bus Division of
FAW Jiefang Automotive Co., Ltd. (the Manager and Secretary of the Party Committee of the
Bus Factory) and the Deputy Director of the Marketing Headquarters (the Deputy General
Manager of JFAW Jiefang Sales Company), and the General Manager of New Energy Division
and the General Manager of Bus Division of FAW Jiefang Automotive Co., Ltd.
Mr. Tian Haifeng is currently the Deputy General Manager of FAW Jiefang Group Co., Ltd.
and the Deputy General Manager of FAW JIEFANG AUTOMOTIVE CO., LTD. He has served
successively as the Director of Procurement Department of Jiefang Business Headquarters (FAW
Jiefang Automotive Co., Ltd.), the Director of Procurement Department of FAW Jiefang
Automotive Co., Ltd., and the Deputy General Manager of Qingdao Vehicle Division (FAW
Jiefang Qingdao Automobile Plant) and the Manager of Qingdao Factory of FAW Jiefang
Automotive Co., Ltd.
Mr. Li Sheng is currently the Deputy General Manager of FAW JIEFANG GROUP CO.,
LTD., and the Deputy General Manager of FAW Jiefang Automotive Co., Ltd., and the General
Manager and Secretary of the Party Committee of Qingdao Vehicle Division (FAW Jiefang
Qingdao Automobile Plant), and the General Manager of Qingdao Medium and Heavy-duty
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Vehicle Product Line and the General Manager of Light Vehicle Product Line of Qingdao Vehicle
Division. He has served successively as the General Manager Assistant and Director of R&D
Department of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Senior Manager of Qingdao
Vehicle Division (Qingdao Company) of Jiefang Business Headquarters, the Assistant to
President of Commercial Vehicle Development Institute of FAW Jiefang Automotive Co., Ltd.
and the Senior Manager and Director of R&D Department of Qingdao Vehicle Division (Qingdao
Company), the Deputy General Manager of Qingdao Vehicle Division (Qingdao Company) of
FAW Jiefang Automotive Co., Ltd. and Assistant to President of Commercial Vehicle
Development Institute, the Vice President of Commercial Vehicle Development Institute of FAW
Jiefang Automotive Co., Ltd. and the Deputy General Manager and Director of R&D Department
of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant), and the Executive
Deputy General Manager of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant)
of FAW Jiefang Automotive Co., Ltd., etc.
Mr. Wang Jianxun is currently the Secretary of the Board of Directors and Director of the
Capital Operation Department of FAW JIEFANG GROUP CO., LTD. He has served successively
as the Deputy Office Director and Office Director of the Board of Directors of TCL Group Co.,
Ltd., the Deputy General Manager of Shenzhen Create Century Machinery Co., Ltd., etc.
Status of post held in the firm of shareholders
Applicable □ Not Applicable
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Whether
Remuneration and
Name of Ending Date of
Name of Shareholder Position in the Shareholder Start Date of Tenure Allowance are
Employees Tenure
Received from the
Shareholder
China FAW Group Co.,
Hu Hanjie General Manager Assistant August 1, 2020 No
Ltd.
General Manager of
China FAW Group Co.,
Bi Wenquan Production Logistics February 1, 2023 Yes
Ltd.
Department
National Automotive
Li Hongjian Intelligent Technology Leader of preparatory team December 1, 2022 Yes
Innovation Center
Full-time external director,
convener/team leader of
China FAW Group Co., subsidiary of Financial
Liu Yanchang July 1, 2022 Yes
Ltd. Management Department
(Office of the Board of
Directors)
General Counsel and
Deputy General Manager of
China FAW Group Co.,
Wang Yanjun the Audit and Legal January 1, 2021 Yes
Ltd.
Department (who is
responsible for presiding
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over the work)
Position in other organizations
Applicable □ Not Applicable
Whether
Remuneration and
Name of Name of Other Ending Date
Position in Other Organizations Start Date of Tenure Allowance are
Employees Organizations of Tenure
Received from Other
Organizations
Chahar Institute, a think
Han Fangming tank on foreign affairs and President October 1, 2009 Yes
international relations
Director, Professor and
Doctoral Supervisor of the
Mao Zhihong Jilin University Department of Accounting, November 1, 2000 Yes
School of Business and
Management
Zhuhai Yinshan Capital
Dong Zhonglang Equity Investment Managing Partner May 1, 2017 Yes
Management Co., Ltd.
Penalties imposed by securities regulatory authorities in the past three years on directors, supervisors and senior executives currently in office
or leaving office in the reporting period
□ Applicable Not applicable
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3. Remuneration of Company's Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payment of remuneration for directors, supervisors and senior executives
Decision-Making Process Only the remuneration for directors (excluding independent directors) and supervisors currently in office shall be
of Compensation of paid, and the remuneration for directors and supervisors who have left the office shall be paid by their employers.
Directors, Supervisors and The remuneration paid by the Company to relevant directors, supervisors and senior executives shall be determined
Senior Management by the Board of Directors.
Decision Basis of For directors (except independent directors), supervisors and senior executives who receive remuneration from the
Compensation of Company, the annual salary system is implemented, mainly including annual base salary and annual performance
Directors, Supervisors and salary. The annual performance salary is determined according to business performance, performance assessment
Senior Management and performance and other indicators of the Company in the reporting period.
In the reporting period, a total of CNY 450,000 (tax inclusive) of allowances were paid to independent directors,
Remuneration Paid to and reasonable expenses (including travel expenses, office expenses, training expenses, etc.) required to attend the
Directors, Supervisors and Company's board of directors, shareholders’ meeting and exercise their functions and powers in accordance with
Senior Management relevant regulations can be reimbursed by the Company on actual circumstances. The remuneration paid to other
directors, supervisors and senior executives other than the above personnel is CNY 23,046,500 (tax inclusive).
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Compensations of Directors, Supervisors and Senior Executives of the Company in the Reporting Period
Unit: CNY 10,000
Whether
Total Pre-tax
remuneration is
Compensation
Name Position Gender Age Employment Status obtained from
Received from the
related parties of the
Company
Company
Hu Hanjie Chairman of the Board Male 58 In-service 248.20 No
Director and General
Wu Bilei Male 52 In-service 194.47 No
Manager
Zhang Guohua Director Male 50 In-service 166.02 No
Bi Wenquan Director Male 50 In-service Yes
Li Hongjian Director Male 50 In-service Yes
Liu Yanchang Director Male 59 In-service Yes
Departure from
Yang Xiao Director Male 49 Yes
office
Departure from
Liu Changqing Director Male 51 Yes
office
Han Fangming Independent director Male 56 In-service 15.00 No
Mao Zhihong Independent director Male 61 In-service 15.00 No
Dong Zhonglang Independent director Male 58 In-service 15.00 No
Chairman of Board of
Wang Yanjun Male 59 In-service Yes
Supervisors
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Xu Haigen Employee Supervisor Male 58 In-service 97.54 No
Wang Lijun Employee Supervisor Male 54 In-service 106.85 No
Duan Yinghui Employee Supervisor Male 52 In-service 153.37 No
Ren Ruijie Employee Supervisor Male 39 In-service 105.22 No
Executive Deputy General
Yu Changxin Male 50 In-service 5.02 No
Manager
Ji Yizhi Deputy General Manager Male 53 In-service 131.20 No
Tian Haifeng Deputy General Manager Male 50 In-service 119.23 No
Li Sheng Deputy General Manager Male 46 In-service 148.74 No
Departure from
Kong Dejun Deputy General Manager Male 50 179.02 No
office
Departure from
Wang Ruijian Deputy General Manager Male 59 170.22 No
office
Departure from
Shang Xingwu Deputy General Manager Male 56 176.82 No
office
Departure from
Ou Aimin Deputy General Manager Male 56 159.88 No
office
Secretary of the Board of
Wang Jianxun Male 39 In-service 142.85 No
Directors
Total -- -- -- -- 2,349.65 --
Note: The annual performance salary included in the total remuneration in 2022 is settled based on the performance evaluation results in 2021.
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VI. Performance of Duties by Directors in the Reporting Period
1. Information of the Board of Directors during the reporting period
Session Date Date of Disclosure Meeting Resolution
The Proposal on Estimated Amount of Daily Related Transactions
in 2022, Proposal on Estimated Amount of Financial Business
with First Automobile Finance Co., Ltd. in 2022, Proposal on Risk
The 21st Meeting of the 9th Assessment Report of First Automobile Finance Co., Ltd.,
January 27, 2022 January 28, 2022
Board of Directors Proposal on Change of Registered Capital of the Company,
Proposal on Amending the Articles of Association, and Proposal
on Convening the First Extraordinary Shareholders’ Meeting of
2022 were deliberated and adopted.
The 22nd Meeting of the 9th The 2022 Fixed Assets Investment Plan and 2022 Equity
January 28, 2022 ——
Board of Directors Investment Plan were deliberated and adopted.
The 2021 Annual Business Summary and 2022 Annual Business
Plan, 2021 Annual Work Report of the Board of Directors, 2021
Annual Financial Statements and 2022 Annual Financial Budget,
2021 Annual Report and its Summary, 2021 Profit Distribution
Plan, 2021 Social Responsibility Report, Proposal on Electing Li
The 23rd Meeting of the 9th
March 29, 2022 March 31, 2022 Hongjian as the Non-independent Director of the Company, 2021
Board of Directors
Internal Control Evaluation Report, 2021 Annual Report on Rule
of Law Construction and Compliance Management, 2021 Annual
Internal Audit Report, 2021 Annual Internal Control System Work
Report and Proposal on Convening 2021 Annual Shareholders'
Meeting were deliberated and adopted.
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The 24th Meeting of the 9th
April 29, 2022 —— The First Quarterly Report of 2022 was deliberated and adopted.
Board of Directors
The 2021 Performance Evaluation Results of Senior Executives,
2021 Performance Assessment and Remuneration Encashment
Plan for Senior Executives, 2022 Total Salary and Labor Cost
Plan, 2022 Performance Appraisal Indicator Plan, 2022
The 25th Meeting of the 9th
May 31, 2022 —— Performance Assessment Indicator Plan for Senior Executives,
Board of Directors
2022 Base Salary Plan for Senior Executives, and Proposal on
Implementing the Construction of the Supporting System for the
Functions and Powers of the Board of Directors were deliberated
and adopted.
The Business Summary for the First Half of 2022 and Business
Plan for the Second Half of 2022, 2022 Semi-annual Report and
its Summary, the Proposal on Risk Assessment Report of First
Automobile Finance Co., Ltd., 2022 Semi-annual Work Report of
Internal Audit, 2022 Mid-year Adjustment Scheme of Equity
Investment Plan, 2022 Mid-year Adjustment Scheme of Fixed
Assets Investment Plan, Proposal on Formulating the Working
The 26th Meeting of the 9th
August 29, 2022 August 31, 2022 System of the Secretary of the Board of Directors, Proposal on
Board of Directors
Amending the Investor Relations Management System, Proposal
on By-election of Members of the Strategy Committee of the Board
of Directors, Proposal on Adjusting the Repurchase Price of
Restricted Shares in the Phase I Restricted Share Incentive Plan,
Proposal on Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan, Proposal on
Change of Registered Capital of the Company, Proposal on
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Amending the Articles of Association, Proposal on Electing Liu
Yanchang as the Non-independent Director of the Company, and
Proposal on Convening the Second Extraordinary Shareholders’
Meeting of 2022 were deliberated and adopted.
The Proposal on Appointment of Deputy General Manager of the
Company, Proposal on By-election of Members of the Audit and
The 27th Meeting of the 9th Risk Control Committee of the Board of Directors and Proposal on
October 19, 2022 October 20, 2022
Board of Directors By-election of Members of the Remuneration and Appraisal
Committee of the Board of Directors were deliberated and
adopted.
The Third Quarterly Report of 2022, Proposal on Renewal of
Employment of Financial Audit Institutions, Proposal on Renewal
of Employment of Internal Control Audit Institutions, Third
Quarterly Work Report of Internal Audit in 2022, Proposal on
The 28th Meeting of the 9th Repurchase and Cancellation of Partial Restricted Shares in the
October 28, 2022 October 29, 2022
Board of Directors Phase I Restricted Share Incentive Plan, Proposal on Change of
Registered Capital of the Company, Proposal on Amending the
Articles of Association, and Proposal on Convening the Third
Extraordinary Shareholders’ Meeting of 2022 were deliberated
and adopted.
The Proposal on Increasing the Estimate of Daily Related
Transactions in 2022, Proposal on Appointment of the Executive
The 29th Meeting of the 9th
November 28, 2022 November 29, 2022 Deputy General Manager of the Company and Proposal on
Board of Directors
Convening the Fourth Extraordinary Shareholders’ Meeting of
2022 were deliberated and adopted.
The 30th Meeting of the 9th December 15, 2022 December 16, 2022 The Medium- and Long-term Development Plan of the Company,
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Board of Directors 2023 Annual Equity Investment Plan, 2023 Annual Fixed Assets
Investment Plan, Proposal on Land Purchase and Reserve of
Subsidiaries, Proposal on Investment of Subsidiaries in
Changchun Automobile Test Center Co., Ltd., Proposal on the
Achievement of Unlocking Conditions in the First Release Period
of the Restricted Shares Firstly Granted in the Phase I Restricted
Incentive Plan, Proposal on Repurchase and Cancellation of
Partial Restricted Shares in the Phase I Restricted Share Incentive
Plan, Proposal on Change of Registered Capital of the Company,
Proposal on Amending the Articles of Association, and Work Plan
of the Board of Directors in 2023 were deliberated and adopted.
2. Attendance of Directors at the Meeting of the Board of Directors and Shareholders’ Meeting
Attendance of Directors at the Meeting of the Board of Directors and the Shareholders’ Meeting
Failure to Attend
Number of Number of Number of Number of
Number of the Meeting of the
Meetings of the Meetings of the Meetings of the Meetings of the Number of
Absences from Board of
Board of Board of Board of Board of Shareholders’
Name of Director the Meeting of the Directors in
Directors to be Directors Directors Directors Meetings
Board of Person for Two
Attended in the Attended in Attended via Attended by Attended
Directors Consecutive
Reporting Period Person Communication Entrustment
Times or Not
Hu Hanjie 10 4 6 No 3
Wu Bilei 10 3 5 2 No 4
Zhang Guohua 10 4 6 No 5
Bi Wenquan 10 1 5 4 No 0
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Li Hongjian 6 2 3 1 No 0
Liu Yanchang 4 2 2 No 2
Yang Xiao 6 1 4 1 No 0
Liu Changqing 3 0 3 No 0
Han Fangming 10 3 6 1 No 3
Mao Zhihong 10 4 6 No 5
Dong Zhonglang 10 4 6 No 5
Explanation on two consecutive absences from the Meeting of the Board of Directors in person: none
3. Objections Raised by Directors on Relevant Matters of the Company
Whether the directors raise objections to relevant matters of the Company
□ Yes No
In the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Additional Description of Performance of Duties by Directors
Whether the directors' relevant suggestions to the Company have been adopted
Yes □ No
Explanation of Directors on Adoption or Failure to Adopt Relevant Suggestions to the Company
In the reporting period, all directors of the Company carried out their work in strict accordance with the Company Law, Securities Law,
Rules Governing Listing of Stocks on Shenzhen Stock Exchange, Articles of Association and other relevant laws and regulations. They faithfully
and diligently performed their duties, paid attention to the standardized operation of the Company, actively attended the meeting of the board of
directors and the shareholders' meeting, carefully deliberated various proposals, and based on the actual situation of the Company, put forward
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relevant opinions and suggestions from the aspects of the Company's development strategy, standardized operation, etc., thus ensuring scientific,
timely and efficient decision-making and safeguarding the legitimate rights and interests of the Company and shareholders.
VII. Conditions of Special Committees under the Board of Directors in the Reporting Period
Important
Number of Other
Name of Comments and Details of
Members Meetings Date Contents Performance
Committee Suggestions Put Objections
Held of Duties
Forward
The 2021 Financial Audit Report of the
Company, 2021 Internal Audit Report of All proposals were
March 15, 2022 None
the Company and 2021 Internal Control agreed.
Evaluation Report are deliberated.
Audit and Mao Zhihong,
The First Quarterly Report of 2022 was The proposal was
Risk Control Han Fangming, 3 April 29, 2022 None
deliberated approved.
Committee Yang Xiao.
The 2022 Semi-annual Report and Its
August 26, Summary and 2022 Semi-annual Work All proposals were
None
2022 Report of Internal Audit were agreed.
deliberated.
The Third Quarterly Report of 2022,
Proposal on Renewal of Employment of
Audit and Mao Zhihong, Financial Audit Institutions, Proposal on
October 26, All proposals were
Risk Control Han Fangming, 1 Renewal of Employment of Internal None
2022 agreed.
Committee Liu Yanchang. Control Audit Institutions, and Third
Quarterly Work Report of Internal Audit
in 2022 were deliberated.
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The performance evaluation results of
Remuneration Dong Zhonglang, senior executives, performance
All proposals were
and Appraisal Yang Xiao, Mao 1 May 31, 2022 assessment indicators of senior None
agreed.
Committee Zhihong. executives and other topics were
deliberated.
The Proposal on the Achievement of
Remuneration Dong Zhonglang, Unlocking Conditions in the First
December 15, The proposal was
and Appraisal Mao Zhihong, 1 Release Period of the Restricted Shares None
2022 approved.
Committee Liu Yanchang. Firstly Granted in the Phase I Restricted
Incentive Plan was deliberated.
Hu Hanjie, Wu The 2022 Mid-year Adjustment Scheme
Strategy Bilei, Han August 26, of Equity Investment Plan and 2022 Mid- All proposals were
1 None
Committee Fangming, Dong 2022 year Adjustment Scheme of Fixed Assets agreed.
Zhonglang. Investment Plan were deliberated.
The Medium- and Long-term
Hu Hanjie, Wu Development Plan of the Company, 2023
Bilei, Li Annual Equity Investment Plan, 2023
Strategy December 15, All proposals were
Hongjian, Han 1 Annual Fixed Assets Investment Plan, None
Committee 2022 agreed.
Fangming, Dong and Proposal on Investment of
Zhonglang. Subsidiaries in Changchun Automobile
Test Center Co., Ltd. were deliberated.
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VIII. Working Condition of the Board of Supervisors
Whether the Board of Supervisors has found any risks in the Company's supervision activities in
the reporting period
□ Yes No
The Board of Supervisors has no objection to the supervision matters in the reporting period.
IX. Employees of the Company
1. Number, Specialty Composition and Education Level of Employees
Number of on-the-job employees of the parent company at the
155
end of the reporting period (person)
Number of on-the-job employees of main subsidiaries at the end
20,189
of the reporting period (person)
Total number of on-the-job employees at the end of the reporting
20,344
period (person)
Total number of employees receiving compensation in the
21,529
current period (person)
Number of retired employees whose expenses shall be borne by
25
the parent company and major subsidiaries (person)
Specialty composition
Category Number (person)
Production personnel 12,220
Sales personnel 1,064
Technicians 5,886
Financial personnel 346
Administrative personnel 828
Total 20,344
Education background
Category Number (person)
Doctor's degree 50
Master's degree 1,536
Bachelor's degree 7,983
Junior college degree 4,426
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High school and below 6,349
Total 20,344
2. Compensation Policy
According to the requirements of relevant national labor laws, regulations and policies, the
Company adheres to the principle of "fairness, impartiality and openness" and combines the
actual situation of the Company to continuously improve and perfect the performance salary
system of the Company. In order to fully mobilize the enthusiasm of employees and improve their
work performance, based on the post contribution salary system and oriented by value creation,
the Company controls the total salary by "salary package", links the salary distribution to the
performance and contribution of employees, and continuously implements special rewards and
annual rewards, effectively giving play to the leverage role of salary incentives. In addition, the
Company has signed labor contracts with employees in accordance with laws and regulations,
paid various social insurances such as basic endowment insurance, basic medical insurance, work-
related injury insurance and unemployment insurance as well as housing provident funds, actively
implemented supplementary endowment insurance and supplementary medical insurance systems,
established and improved welfare systems, thus protecting the legitimate rights and interests of
employees in all aspects. The company does not need to bear the expenses of retired personnel
which have been included in the social security system, but needs to bear the expenses of retired
veterans.
3. Training plan
In 2022, the Company's talent training and cultivation were carried out targetedly and
systematically, focusing on solving business pain points and difficulties and meeting the
Company's and employees' development needs, with the orientation towards supporting the
Company's strategic development and the goal of achieving organizational performance.
Leadership: Focus on the training of management cadres, the construction of grass-roots teams,
the rapid transformation of new managers, the implementation of classified policies, and the
continuous implementation of leadership standardization training and cultivation programs. For
senior managers and reserve senior managers, implement the piloteer development plan,
innovation leader development plan and peak climber cultivation plan; for secondary managers,
carry out special plans such as "Sailing", "Peiyuan" and "Qingfeng"; and for reserve secondary
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managers, carry out "Foundation Building" and "Longmen" plans, so as to solidly improve the
leadership skills of managers at all levels and create excellent leadership. Professionalism: Focus
on the Company's annual key work and employee post competency requirements, and carry out
professional training in the fields of quality management, cost reduction and efficiency
improvement, new energy, digital-intelligent transformation, intelligent networking, intelligent
manufacturing, IPD reform, etc. Carry out examinations on total quality management and digital-
intelligent transformation, and effectively consolidate professional basic knowledge to steadily
improve the professional ability of personnel at all levels. Skills: Carry out relevant skills training
in the aspects of post operation skills improvement, on-site problem solving, new production line
empowerment, techniques and skills inheritance, etc.
4. Labor Outsourcing
□ Applicable Not applicable
X. Profit Distribution and Transfer from Capital Reserve to Share Capital of the Company
Profit distribution policies in the reporting period, especially the formulation, implementation or
adjustment of cash dividend policy
Applicable □ Not Applicable
The Company held the 23rd Meeting of the 9th Board of Directors, the 21st Meeting of the 9th
Board of Supervisors, and the 2021 Annual Shareholders’ Meeting on March 29, 2022 and April
29, 2022, respectively, to deliberate and adopt the 2021 annual profit distribution plan: Based on
4,654,114,613 shares of the Company, a cash dividend of CNY 6.50 (tax inclusive) shall be
distributed to all shareholders for every 10 shares, and a cash dividend of CNY 3,025,174,498.45
(tax inclusive) shall be distributed, and the remaining undistributed profits shall be carried
forward to the next accounting year. The Company does not convert reserves into share capital.
The profit distribution plan has been implemented on June 20, 2022.
Special Description of Cash Dividend Policy
Whether the provisions of the Articles of Association or the
Yes
requirements of resolutions of the Shareholders’ Meeting are met:
Whether the dividend standard and proportion are definite and clear: Yes
Whether the relevant decision-making procedures and mechanisms are Yes
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complete:
Whether the independent directors have fulfilled their duties and
Yes
played their due roles:
Whether the minority shareholders have the opportunity to fully
express their opinions and demands, and whether their legitimate rights Yes
and interests are fully protected:
Whether the conditions and procedures are compliant and transparent
N/A
when the cash dividend policy is adjusted or changed:
The Company made profits in the reporting period and the parent company had a positive profit
available for shareholders, but no cash dividend distribution plan was proposed
Applicable □ Not Applicable
Reasons for profitability in the reporting
period and positive profit available for Purpose and Use Plan of Undistributed Profits of
shareholders of the parent company but no the Company
cash dividend distribution plan proposed
Retained and undistributed profits are mainly used
to meet the needs of the Company's daily
operation, which can relieve the Company's
Based on the Company's operating
financial strain, thus benefiting the Company's
conditions, cash flow level and investment,
production, operation and development, enhancing
it is not proposed to distribute profits in
the ability to resist risks, realizing the sustainable,
2022.
stable and healthy development of the Company,
and better safeguarding the long-term interests of
shareholders.
Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting Period
□ Applicable Not applicable
The Company plans not to distribute cash dividends, issue bonus shares or convert reserves into
share capital in the year.
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
Applicable □ Not Applicable
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1. Equity incentive
(1) On November 13, 2020, the Company held the 9th meeting of the 9th Board of Directors
and the 8th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Abstract
and other proposals. The relevant proposals were deliberated and adopted at the First
Extraordinary Shareholders’ Meeting of 2021 held by the Company on January 11, 2021.
(2) On January 15, 2021, the Company held the 12th Session of the 9th Meeting of the Board
of Directors and the 11th Session of the 9th Meeting of the Board of Supervisors respectively, and
reviewed and approved the Proposal on Adjusting the List of the First Batch of Incentive Objects
and the Number of Grants of the First Restricted Share Incentive Plan and the Proposal on
Granting Restricted Shares to the Incentive Objects of the First Restricted Share Incentive Plan
for the First Time. On February 1, 2021, the Company disclosed the Announcement on the
Completion of the First Grant Registration of Phase I Restricted Share Incentive Plan, in which
the restricted shares in the incentive plan were first granted to 319 persons, totaling 40,987,700
shares, with a grant price of CNY 7.54 per share. The restricted shares granted were listed on
February 5, 2021.
(3) On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors
and the 19th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Proposal on Granting Reserved Part of Restricted Shares in the Phase I Restricted Share
Incentive Plan to Incentive Objects, Proposal on Adjusting the Repurchase Price of Restricted
Shares in the Phase I Restricted Share Incentive Plan, Proposal on Repurchase and Cancellation
of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and other relevant
proposals. On January 6, 2022, the Company disclosed the Announcement on Completion of
Registration of Grant of Reserved Part of Restricted Shares in Phase I Restricted Share Incentive
Plan, in which reserved part of restricted shares in the incentive plan were granted to 33 persons,
totaling 3,721,600 shares, with a grant price of CNY 6.38 per share. The restricted shares granted
were listed on January 10, 2022. On January 17, 2022, the Company disclosed the Announcement
on Completion of Repurchase and Cancellation of Some Restricted Shares, in which all restricted
shares granted to 2 incentive objects but not yet released, totaling 260,857 shares, with a
repurchase price of CNY 7.04 per share.
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(4) On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors
and the 23rd meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Proposal on Adjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share
Incentive Plan and Proposal on Repurchase and Cancellation of Partial Restricted Shares in the
Phase I Restricted Share Incentive Plan. On September 16, 2022, the relevant repurchase and
cancellation proposals were deliberated and adopted at the Second Extraordinary Shareholders’
Meeting of 2022 held by the Company. On November 14, 2022, the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares, in
which all or some restricted shares granted to 6 incentive objects but not yet released were
repurchased and canceled, totaling 789,711 shares, with a repurchase price of CNY 6.39/share.
(5) On October 28, 2022, the Company held the 28th meeting of the 9th Board of Directors
and the 24th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan. On November 18, 2022, the Proposal was deliberated and adopted at the
Third Extraordinary Shareholders’ Meeting of 2022 held by the Company. On January 17, 2023,
the Company disclosed the Announcement on Completion of Repurchase and Cancellation of
Some Restricted Shares, in which all or some restricted shares granted to 11 incentive objects but
not yet released were repurchased and canceled, totaling 1,359,247 shares, with a repurchase price
of CNY 6.39/share.
(6) On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directors
and the 26th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the
Proposal on the Achievement of Unlocking Conditions in the First Release Period of the
Restricted Shares Firstly Granted in the Phase I Restricted Incentive Plan and Proposal on
Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan were deliberated and adopted. On February 3, 2023, the Company disclosed the
Indicative Announcement on Listing and Circulation of Unlocked Shares in the First Release
Period of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan, in
which there are 311 incentive objects that meet the unlocking conditions this time and 13,042,347
restricted shares unlocked, and these shares are listed on February 6, 2023.
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For details of the above proposals, please refer to the relevant announcements published by
the Company in Securities Times, China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
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Equity Incentives Obtained by Directors and Senior Executives of the Company
Applicable □ Not Applicable
Unit: share
Number
Number Number Number Number Number
Number Exercise of Number
of Stock of Newly Number of of Market of Newly of
of Price of Restricted of
Options Granted Exercisable Stock Price at the Granted Grant Price Restricted
Exercised Exercised Shares Unlocked
Held at Stock Shares in Options End of the Restricted of Restricted Shares
Name Position Shares in Shares in the Held at Shares in
the Options the Held at Reporting Shares in Shares Held at
the Reporting the the
Beginning in the Reporting the End Period the (CNY/share) the End
Reporting Period Beginning Current
of the Reporting Period of the (CNY/share) Reporting of the
Period (CNY/share) of the Period
Year Period Period Period Period
Period
Chairman
Hu
of the 7.73 334,331 7.54 334,331
Hanjie
Board
Wu
Director 7.73 228,552 7.54 228,552
Bilei
Zhang
Director 7.73 228,493 7.54 228,493
Guohua
Deputy
Ji Yizhi General 7.73 192,778 7.54 192,778
Manager
Deputy
Tian
General 7.73 192,778 7.54 192,778
Haifeng
Manager
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Deputy
Li
General 7.73 192,778 7.54 192,778
Sheng
Manager
Secretary
Wang of the
7.73 192,778 7.54 192,778
Jianxun Board of
Directors
Total -- 0 0 0 0 -- 0 -- 1,562,488 0 0 -- 1,562,488
The restricted shares granted to the above-mentioned persons were granted on January 15, 2021 and listed on February 5, 2021, with a restricted period of 2
Remarks
years (24 months). In the first release period, the granted restricted shares were unlocked and listed for circulation on February 6, 2023.
Evaluation mechanism and incentives of senior executives
The Company has formulated corresponding plans for the evaluation and incentive mechanism of senior executives, and implemented a fair
and transparent performance management system. The remuneration of senior executives shall be combined with the Company's performance
and individual performance. The System and Reform Management Department of the Company shall be responsible for the daily evaluation, and
the Remuneration and Appraisal Committee of the Board of Directors shall conduct a comprehensive evaluation.
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2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
XII. Establishment and Implementation of Internal Control System in the Reporting
Period
1. Construction and Implementation of Internal Control
In the reporting period, the Company adhered to the structure guidance, and
comprehensively and systematically sorted out the capability panorama and business structure in
various fields of the Company against the excellent practices in the industry. At the same time,
according to the Basic Specification for Enterprise Internal Control, supporting guidelines and
other relevant regulations, the Company continuously improved the construction of hierarchical
and graded document system. Through process operation, the Company timely organized the
review, refresh and optimization of business processes and systems, and monitored the
implementation of processes and systems to ensure the suitability, adequacy and effectiveness of
internal control system construction, and to promote the efficient operation and continuous cyclic
improvement of the management system.
2. Specific Conditions of Major Internal Control Deficiencies Found in the Reporting
Period
□ Yes No
XIII. Management and Control of Subsidiaries by the Company in the Reporting Period
Follow-up
Company Integration Integration Problems in Solutions Resolution
Resolution
Name Plan Progress Integration Taken Progress
Plan
N/A N/A N/A N/A N/A N/A N/A
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XIV. Internal Control Self-evaluation Report or Internal Control Audit Report
1. Internal Control Self-evaluation Report
Disclosure Date of Full
Text of Internal Control April 1, 2023
Evaluation Report
Disclosure Index of Full
http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&or
Text of Internal Control
gId=gssz0000800#latestAnnouncement
Evaluation Report
Proportion of the Total
Assets of the Unit
Included in the
Evaluation Scope to the 100.00%
Total Assets in the
Company's Consolidated
Financial Statements
Proportion of the Unit
Operating Income
Included in the
Evaluation Scope to the 100.00%
Operating Income in the
Company's Consolidated
Financial Statements
Deficiency Identification Standard
Category Financial report Non-financial Report
Major deficiencies: The accounting Major deficiencies: fraudulent
firm issues the audit report with a behaviors of directors, supervisors
disclaimer of opinion or an adverse or corporate leaders of the
opinion to the Company. Company; serious violation of
Significant deficiencies: The national laws, regulations or
accounting firm issues the auditor normative documents by the
Qualitative Criteria
report with a qualified opinion to Company; violation of decision-
the Company; and the accounting making procedures by the
firm issues the auditor report with Company, resulting in major
a disclaimer of opinion or an decision-making errors.
adverse opinion to the Company. Significant deficiencies:
General deficiencies: The fraudulent behaviors of the main
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accounting firm issues the auditor responsible persons of each unit
report with a qualified opinion to of the Company; serious violation
the Company. of national laws, regulations or
normative documents by the
company; violation of decision-
making procedures by the
company, resulting in decision-
making errors.
General deficiencies: fraudulent
behaviors of other personnel of
the Company; other control
deficiencies that do not constitute
major or significant deficiencies.
Identification criteria for internal
control deficiencies related to assets
and liabilities
Major deficiencies: misstated
(including potential) amount ≥ 5‰
of the total assets at the end of the
It is determined based on the
consolidated balance sheet of the
amount of asset losses caused by
previous year;
internal control failure, and the
Significant deficiencies: 3‰ of the
standards are as follows:
total assets at the end of the
Major deficiencies: causing asset
consolidated balance sheet of the
losses of CNY 10,000,000 and
previous year ≤ misstated
more;
Quantitative Criteria (including potential) amount < 5‰
Significant deficiencies: causing
of the total assets at the end of the
asset losses of less than CNY
consolidated balance sheet of the
10,000,000 and greater than or
previous year;
equal to CNY 5,000,000;
General deficiencies: other control
Minor deficiencies: causing asset
deficiencies except for major and
losses of less than CNY
significant deficiencies.
5,000,000.
Identification criteria for internal
control deficiencies related to
profits
Major deficiencies: misstated
(including potential) amount ≥ 5‰
of the absolute value of the pre-tax
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profit in the consolidated income
statement of the previous year of
the Company;
Significant deficiencies: 3‰ of the
absolute value of the pre-tax profit
in the consolidated income
statement of the previous year of
the Company ≤ misstated
(including potential) amount < 5‰
of the absolute value of the pre-tax
profit in the consolidated income
statement of the previous year of
the Company;
General deficiencies: other control
deficiencies except for major and
significant deficiencies.
Number of Major
Deficiencies in Financial 0
Report (Nr.)
Number of Major
Deficiencies in Non- 0
financial Report (Nr.)
Number of Significant
Deficiencies in Financial 0
Report (Nr.)
Number of Significant
Deficiencies in Non- 0
financial Report (Nr.)
2. Internal Control Audit Report
Applicable □ Not Applicable
Deliberations Paragraph in Internal Control Audit Report
In our opinion, FAW Jiefang maintained effective internal control over financial reporting in all
material aspects as of December 31, 2022 in accordance with the Basic Specification for
Enterprise Internal Control and relevant regulations.
Disclosure of Internal Control Auditor Report Disclosure
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Disclosure Date of Full Text of Internal Control
April 1, 2023
Audit Report
http://www.cninfo.com.cn/new/disclosure/stock
Disclosure Index of Full Text of Internal
?stockCode=000800&orgId=gssz0000800#late
Control Audit Report
stAnnouncement
Opinion Type of Internal Control Audit Report Standard unqualified opinion
Whether there are major deficiencies in the
No
non-financial report
Whether the accounting firm issues the internal control audit report with a non-standard opinion
□ Yes No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
evaluation report of the Board of Directors
Yes □ No
XV. Rectification of Problems Found in the Self-inspection of the Special Action for
Governance of Listed Companies: none
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Section V Environmental and Social Responsibilities
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries are key pollutant discharging entities announced
by the environmental protection authority
Yes □ No
Environmental protection related policies and industry standards
The Company strictly abides by the Environmental Protection Law of the People's Republic
of China, the Law of the People's Republic of China on the Prevention and Control of
Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control
of Noise Pollution, the Law of the People's Republic of China on the Prevention and Control of
Soil Pollution, the Law of the People's Republic of China on the Prevention and Control of Water
Pollution, the Environmental Protection Tax Law of the People's Republic of China, the Measures
for the Administration of the List of Key Units of Environmental Supervision, the Measures for the
Administration of Legal Disclosure of Environmental Information of Enterprises, the Measures
for the Administration of Hazardous Waste Transfer and other relevant laws and regulations, as
well as national and industrial standards such as the Integrated Wastewater Discharge Standard
(GB8978-1996), the Integrated Emission Standard of Air Pollutants (GB16297-1996), the
Standard for Pollution Control on Hazardous Waste Storage (GB 18597-2001), Technical
Guidelines for Environmental Impact Assessment - Acoustic Environment, the Technical Guideline
for Deriving Hazardous Waste Management Plans and Records (HJ 1259-2022), the Technical
Specification for Pollution Control of Waste Plastics and the Technical Specifications for
Acceptance of Environmental Protection Facilities for Completed Construction Projects -
Automotive Industry (HJ 407-2021).
Administrative licensing for environmental protection
The Company strictly implemented the "Environmental Impact Assessment" and "Three
Simultaneities" systems for all projects. All key pollutant discharging entities shall apply for
pollutant discharge permits according to legal provisions, and strictly implement the pollutant
discharge permit system.
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Application
Validity
(renewal) Date of Pollutant Discharge Permit
S/N Name of Organization Period
Pollutant Discharge No.
(Year)
Permit
1 Truck Factory of FAW
December 30, 2022 91220101743028725R 5
Jiefang Automotive Co., Ltd
2 Chengdu Branch of FAW
July 14, 2022 91510114746407720B001V 5
Jiefang Automotive Co., Ltd.
Transmission Branch
3 (Transformation Factory) of
December 31, 2021 91220101571131661N001Q 5
FAW Jiefang Automotive
Co., Ltd.
Transmission Branch (Axle
4 Factory) of FAW Jiefang December 31, 2021 91220101571131661N002V 5
Automotive Co., Ltd.
Changchun Intelligent Bus
5 Branch of FAW Jiefang January 8, 2023 91220108MA170MRB74001V 5
Automotive Co., Ltd.
6 FAW Jiefang (Qingdao)
January 18, 2022 91370200163567343M 5
Automotive Co., Ltd.
7 Engine Branch of FAW
December 8, 2022 912201017561635719001Q 5
Jiefang Automotive Co., Ltd.
Wuxi Diesel Engine Works
8 of FAW Jiefang Automotive December 10, 2021 91320206330969017N001C 5
Co., Ltd.
Wuxi Diesel Engine Huishan
9 Factory of FAW Jiefang October 5, 2021 91320200748159222H001Q 5
Automotive Co., Ltd.
10 FAW Jiefang Dalian Diesel
October 9, 2022 91210213717880308K001U 5
Engine Co., Ltd.
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Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
Types of
Names of
Main Number Pollutant
Name of Main Discharge Total Excessive
Pollutants Discharge of Distribution of Discharge Total
Company or Pollutants concentration/ Approved Discharg
and Mode Discharge Discharge Outlets Standards Discharge
Subsidiary and Specific intensity Discharge e
Specific Outlets Implemented
Pollutants
Pollutants
1 for frame, cab
Continuous
and non-metal
or
coating No
intermittent
Sewage COD 4 respectively, and 21mg/L 800mg/L 40.0669 t 630.104 t excessive
discharge
Truck Factory 1 for general discharge
of
of FAW Jiefang domestic sewage
wastewater
Automotive outlet
Co., Ltd Continuous
discharge Frame, cab, roof No
Exhaust Non-methane
during 71 of non-metallic 2.69mg/m 120mg/m 11.2945 t 335.4 t excessive
gas hydrocarbon
waste gas coating workshop discharge
production
No
Intermitten Southeast of the
Sewage COD 1 64mg/L 500mg/L 0.3856 t 21.3 t excessive
Chengdu t discharge Company
discharge
Branch of FAW
Continuous
Jiefang
discharge No
Automotive Exhaust Non-methane Roof of coating
during 1 3.89mg/m 60mg/m 16.34 t 75.91 t excessive
Co., Ltd. gas hydrocarbon workshop
waste gas discharge
production
Transmission Intermitten 1 in the northwest No
Branch Sewage COD t discharge 2 corner of 19mg/L 500mg/L 2.34 t 10 t excessive
(Transformation of substation 1 discharge
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Factory) of wastewater workshop and 1
FAW Jiefang in the southwest
Automotive corner of
Co., Ltd. substation 2
workshop
Continuous 4 for No. 1
discharge workshop and 1 No
Exhaust Non-methane
during 5 for the south 2.43mg/m 120mg/m 1.0 t - excessive
gas hydrocarbon
waste gas outside No. 1 discharge
production workshop
2 for No. 1, No. 2
No
Intermitten and No. 3
Transmission Sewage COD 6 21mg/L 500mg/L 2.26 t - excessive
t discharge workshops
Branch (Axle discharge
respectively
Factory) of
Continuous 8 for No. 1
FAW Jiefang
discharge workshop, 7 for No
Automotive Exhaust Non-methane
during 20 No. 2 workshop, 2.51mg/ m 120mg/m 13.45 t - excessive
Co., Ltd. gas hydrocarbon
waste gas and 5 for No. 3 discharge
production workshop
Intermitten
South gate of No
t discharge
Changchun Sewage COD 1 sewage treatment 21.5mg/L 500mg/L 1.4807 t 4.575 t excessive
of
Intelligent Bus station discharge
wastewater
Branch of FAW
Continuous
Jiefang Roof of painting
discharge No
Automotive Exhaust Non-methane and welding
during 12 1.33mg/m 120mg/m 6.2127 t 49.5 t excessive
Co., Ltd. gas hydrocarbon workshop of the
waste gas discharge
Company
production
Engine Branch Intermitten No
Exhaust Non-methane
of FAW Jiefang t discharge 3 Workshop roof 1.44mg/m 120 mg/m 0.0486 t - excessive
gas hydrocarbon
Automotive of waste discharge
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Co., Ltd. gas
1 for west gate No
Continuous
Sewage COD 3 and 2 for south 117mg/m 500mg/m 30.78 t ≤ 243 t excessive
discharge
gate discharge
3 for assembly
Wuxi Diesel
workshop, 5 for
Engine Works 240 mg/m
Nitrogen the R&D Nitrogen oxides nitrogen
of FAW Jiefang Continuous for nitrogen
oxides, Department, 2 for 90 mg/m3, non- oxide:19.82 Nitrogen No
Automotive Exhaust discharge oxide, 120
smoke and 12 QA Department, methane t, VOCs: oxide: 27.2 t, excessive
Co., Ltd. gas during mg/m for
non-methane 2 for processing hydrocarbon: 4.3 0.88 t VOC: 1.77 t discharge
production non-methane
hydrocarbons workshop and 1 mg/m3 Ton (t)
hydrocarbon
for hazardous
waste warehouse
No
Continuous
Sewage COD 1 1 for north gate 44mg/m 500mg/m 3.1 t 53.58 t excessive
Wuxi Diesel discharge
discharge
Engine Huishan
240 mg/m Nitrogen
Factory of FAW Nitrogen oxides
Nitrogen Continuous for nitrogen Nitrogen oxides
Jiefang 18mg/m3, non- No
Exhaust oxide, non- discharge oxide, 120 oxide: 0.99 t, 8.48 t for
Automotive 6 Joint workshop methane excessive
gas methane during mg/m for VOCs: nitrogen
Co., Ltd. hydrocarbon: discharge
hydrocarbon production non-methane 0.46
Ton (t) oxide, 1.62 t
3.77mg/m3
hydrocarbon for VOC
Continuous
COD: 500 COD: 88.79
or Outside the COD: 49.1mg/L COD: 8.33 t;
COD, mg/L; t; No
intermittent sewage treatment Ammonia Ammonia
FAW Jiefang Sewage ammonia 6 ammonia Ammonia excessive
discharge station of the nitrogen: nitrogen:
(Qingdao) nitrogen nitrogen: 45 nitrogen: discharge
of Company 1.96mg/L 0.394 t
Automotive mg/L 5.11 t
wastewater
Co., Ltd.
Continuous Roof of each No
Exhaust Non-methane
discharge 81 workshop of the 1.63mg/m 30mg/m 30.4 t 164.98 t excessive
gas hydrocarbon
during Company discharge
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waste gas
production
Continuous
COD: 300 COD: 88.79
or Outside the COD:41 mg/L COD: 1.968
COD, mg/L; t; No
intermittent sewage treatment Ammonia t; ammonia
Sewage ammonia 1 ammonia Ammonia excessive
discharge station of the nitrogen: 4.8 nitrogen:
nitrogen nitrogen: 30 nitrogen: discharge
of Company mg/L 0.5674 t
FAW Jiefang mg/L 5.11 t
wastewater
Dalian Diesel
Non- Non- Non-
Engine Co.,
Continuous Non-methane methane methane methane
Ltd. Non-methane
discharge Roof of the hydrocarbon: hydrocarbon: hydrocarbon: hydrocarbon: No
Exhaust hydrocarbon
during 5 Company's 0.33 mg/m; 120 mg/m; 5.2542 t, 14.2 t; excessive
gas and nitrogen
waste gas workshop nitrogen oxide: nitrogen nitrogen nitrogen discharge
oxide
production 88 mg/m oxide: 240 oxide: 1.756 oxide:
mg/m t 11.967 t
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Disposal of pollutants
(I) Wastewater treatment:
(1) The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatment
stations currently, namely, frame workshop sewage treatment station, coating workshop sewage
treatment station and non-metallic coating sewage treatment station. ① The frame sewage
treatment station has a treatment capacity of 300 tons/day, and mainly treats 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 (Transformation Factory) of FAW Jiefang Automotive Co.,
Ltd. uses the sewage treatment station in the Shaft Gear Park to treat the production wastewater of
the Company. The total treatment capacity of the sewage treatment station is 80 tons/day. In the
first half of the year, due to the failure of some facilities in the sewage treatment station, 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. On August 30, 2022, the facilities of the sewage treatment station were repaired, and the
sewage station operated stably. After being treated by the sewage station and reaching the
standard, the industrial wastewater is discharged into the Changchun Western Suburbs Sewage
Treatment Plant for further treatment.
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(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.
(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 3000 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 two internal sewage treatment stations
which combine 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 2160 tons/day. The treated
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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 plant
for detailed treatment through the sewage outlet after reaching the standard.
(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.
(II) Waste gas treatment:
(1) All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co.,
Ltd. can operate continuously and stably. The dust generated by the plasma cutting machine in the
stamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. The
CO2 welding machine adopts a single-machine dust removal system, and the waste gas is
discharged locally in the workshop after being treated by a single-machine dust collector. The
waste gas generated by the treatment and drying process before entering the frame workshop is
discharged through a 15m exhaust pipe after being treated by a direct combustion device. 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
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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
systems. On December 3, 2022, the VOC treatment facilities for the coating line have been
installed, realizing the networking operation with the Bureau of Ecology and Environment of
Changchu.
(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. This project is being carried out. The equipment of the VOC treatment project has
been installed, and the online testing and comparison of the equipment was completed in
December 2022. It is currently in operation and commissioning.
(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
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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 from coating is discharged
after reaching the standard and being treated by water curtain paint mist treatment device +
activated carbon adsorption, and the waste gas generated from test run is discharged after
reaching the standard and being treated by SCR post-treatment + alkali liquor washing exhaust
gas treatment device.
(III) 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.
(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes to
organizations with hazardous waste transportation and disposal qualification for compliant
transfer and disposal in strict accordance with the requirements of national laws, regulations and
standards.
Emergency plan for environmental emergencies
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.
Environmental self-monitoring plan
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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 2022 shows that all monitoring indicators
meet the requirements of all national emission regulations and standards.
Relevant conditions of investment in environmental governance and protection, and payment of
environmental protection taxes
In 2022, the Company paid a total of more than CNY 46,000,000 including various
environmental governance expenses and environmental protection facilities.
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 implements 5 PV projects, achieving 9.4 MW of clean energy grid-
connected power generation, further reducing carbon emissions.
Administrative Penalties due to Environmental Problems in the Reporting Period
Impact on
Name of Rectification
Cause for Results of Production and
Company or Violations Measures of
Penalties Penalties Operation of the
Subsidiary the Company
Listed 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
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civilization benchmarking environment-friendly enterprise of "energy conservation, consumption
reduction, emission reduction and efficiency improvement".
Other information about environmental protection: none
II. Social Responsibility
For details of social responsibility fulfillment, please refer to the 2022 Social Responsibility
and ESG Report published on CNINFO (http://www.cninfo.com.cn) on the same day.
III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural
Revitalization
The Company actively responds to the call of the national rural revitalization strategy, insists
on focusing on the key points, making up for weaknesses and strengthening the foundation,
continues to promote the development of poverty-stricken areas and the overall revitalization of
rural areas, works hard and innovatively, explores to carry out industry, infrastructure,
consumption, education and other assistance actions in Zhenlai County of Jilin Province,
Fengshan County of Guangxi Province, etc., so as to promote rural development with heart and
soul. In order to contribute deeply to rural revitalization, the Company gives full play to its
industrial advantages, advances into the northwest region to build Jiefang Village, continues to
establish a party building alliance, stimulates the endogenous power of mass development, draws
a unique assistance path with liberation characteristics, and writes a new chapter of rural
revitalization with the momentum of leadership.
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Section VI Important Matters
I. Performance of Commitments
1. Commitments Made by the Company's Actual Controllers, Shareholders, Related
Parties, Purchasers and the Company to Interested Parties that will be Fulfilled in the
Reporting Period, and Commitments not Fulfilled by the End of the Reporting Period
Applicable □ Not Applicable
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Reasons for Commitment Commitment
Committed by Commitments Date: Performance
Commitment Type Period
Commitments
made in the The commitment
China FAW Commitment
acquisition report April 8, 2020 August 8, 2011 Long-term validity is being fulfilled
Co., Ltd. on lock-up
or equity change normally.
report
1. The non-publicly issued shares of the listed
company acquired by asset subscription in the
restructuring will not be transferred in any way
The new shares in
within 36 months from the date of issuance,
this restructuring
including but not limited to public transfer
will not be
through the securities market or transfer by
transferred in any The 3rd
agreement. However, the transfer permitted
way within 36 commitment has
under applicable laws is exempt from the
months from the expired on
restrictions (including but not limited to share
Commitments Commitment date of issuance; October 9, 2021,
China FAW repurchase due to performance compensation).
made during asset on restricted April 8, 2020 the shares already and the
Co., Ltd. 2. If the closing price of the listed company's
restructuring shares held before the remaining
shares is lower than the issue price for 20
restructuring shall commitments are
consecutive trading days within 6 months after
not be transferred being fulfilled
the restructuring, or the closing price at the end
within 18 months normally.
of 6 months after the restructuring is lower than
from the date of
the issue price, the shares of the listed company
completion of the
acquired by FAW Car Co., Ltd. through asset
restructuring.
subscription in this restructuring will be
automatically extended for 6 months on the
basis of the above lock-up period. 3. The shares
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of the listed company already held before the
restructuring shall not be transferred within 18
months from the date of completion of the
restructuring, but the transfer permitted under
applicable laws is exempt from the restrictions.
4. After the restructuring, if the shares of the
listed company enjoyed based on the
restructuring are newly increased due to
issuance of bonus shares, conversion to share
capital, etc., the aforementioned agreement on
the restricted period shall also be observed. If
the commitment on the restricted period of the
shares obtained based on the restructuring is
inconsistent with the latest regulatory opinions
of the securities regulatory authorities, FAW
Car Co., Ltd. will make corresponding
adjustments based on the regulatory opinions of
the relevant securities regulatory authorities. 5.
After the expiration of the above restricted
period, the shares of the listed company
obtained shall be transferred according to the
relevant provisions of the China Securities
Regulatory Commission and Shenzhen Stock
Exchange. 6. FAW Car Co., Ltd. guarantees
that it is willing to assume corresponding legal
responsibilities in case of violation of the above
commitments.
Commitments China FAW Commitment 1. We will exercise shareholders' rights in strict In order to
April 8, 2020 Long-term validity
made during asset Co., Ltd. on regulating accordance with the Company Law and other conform to the
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restructuring and reducing laws, administrative regulations, rules and actual situation
related normative documents (hereinafter referred to as of the Company
transactions "laws and regulations") as well as the Articles after the major
of Association of FAW Car Co., Ltd. asset
(hereinafter referred to as "Articles of restructuring and
Association"), and when the board of directors fully protect the
and the shareholders’ meeting vote on related interests of the
transactions involving FAW Car Co., Ltd. listed company
matters, we will fulfill the obligation of and all
avoiding voting. 2. We will commit to putting shareholders,
an end to all illegal occupation of the funds and FAW Car Co.,
assets of the listed company, and guarantee not Ltd. has reissued
to illegally transfer the funds and assets of the relevant
listed company or harm the interests of the commitments on
listed company and other shareholders of the regulating related
listed company by making use of relevant transactions. The
transactions. 3. We will try best to avoid or commitment is
reduce related transactions with listed being fulfilled
companies and enterprises controlled by them. normally.
For related transactions that cannot be avoided
or exist with reasonable reasons, we will
strictly follow the principles of fairness,
impartiality and openness in the market, sign
standardized related transaction agreements
with listed companies according to law, and
perform related transaction decision-making
procedures in accordance with relevant laws
and regulations and the Articles of Association.
The price of related transactions shall be
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determined based on the market-oriented
pricing principle to ensure its fairness, and to
perform the information disclosure obligation
of related transactions in accordance with
relevant laws and regulations and the Articles
of Association, and to ensure that the legitimate
rights and interests of the listed company and
other shareholders of the listed company will
not be harmed through related transactions. 4.
The above commitments on regulating related
transactions will also apply to enterprises
actually controlled by FAW Car Co., Ltd., and
within the scope of legal shareholders' rights,
FAW Car Co., Ltd. will urge its actually
controlled enterprises to fulfill the obligations
of regulating existing or possible related
transactions with listed companies. We will
make every effort to urge joint ventures or
associated enterprises other than those actually
controlled by FAW Car Co., Ltd. to fulfill the
obligations to regulate related transactions that
have occurred or may occur with listed
companies.
1. Upon completion of the restructuring, the
Commitment main business of the listed company will be
Commitments China FAW The commitment
on avoiding changed to the R&D, production and sales of
made during asset Group Co., April 8, 2020 Long-term validity is being fulfilled
horizontal commercial vehicle. 2. Upon completion of the
restructuring Ltd. normally.
competition restructuring, FAW and its holding enterprises
other than listed companies (hereinafter
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referred to as "holding enterprises") shall not
directly or indirectly engage in any business or
activity that constitutes or may constitute
substantial competition with the main business
engaged in by listed companies and their
holding enterprises in any form. 3. Upon
completion of the restructuring, if FAW or its
holding enterprises find any new business
opportunities that constitute or may constitute a
direct or indirect competition with the main
business of the listed company or its holding
enterprises (hereinafter referred to as "such new
business opportunities"), FAW will
immediately notify the listed company in
writing and try its best to first provide such
business opportunities to the listed company or
its holding enterprises according to reasonable
and fair terms and conditions. If the listed
company or its holding enterprises decide to
give up such new business opportunities, FAW
or its holding enterprises can engage in it. 4. If
the listed company or its holding enterprises
give up such new business opportunities and
FAW or its holding enterprises engage in such
new business opportunities, the listed company
or its holding enterprises have the right to
always acquire any equity, assets and other
rights and interests in such new business
opportunities from FAW or its holding
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enterprises one time or multiple times, or the
listed company or its holding enterprises
choose to entrust, lease or contract to operate
the assets or businesses of FAW or its holding
enterprises in such new business opportunities
in the manner permitted by laws and
regulations. FAW will ensure that its holding
enterprises comply with the above
commitments. 5. FAW Harbin Light
Automobile Co., Ltd. (hereinafter referred to as
"Harbin Light Automobile") and FAW Hongta
Yunnan Automobile Manufacturing Co., Ltd.
(hereinafter referred to as "FAW Hongta", and
collectively referred to as "Light Truck
Company" together with Harbin Light
Automobile) under FAW Light Commercial
Vehicle Co., Ltd. (hereinafter referred to as
"FAW Light Automobile"), a subsidiary of
FAW, are engaged in some light truck
businesses. However, they are currently in a
state of discontinuation or loss, with heavy
burden and unstable profitability. FAW
promises that it will entrust all shares of Harbin
Light Automobile and FAW Hongta under its
actual control to Jiefang Limited for
management, and inject the equities of Harbin
Light Automobile and FAW Hongta under its
actual control to listed companies in batches or
at one time in an appropriate way, or transfer
112
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them to other unrelated third parties at a
reasonable price and in a reasonable way, or
prevent the light truck company from engaging
in light truck related businesses by exercising
shareholders' rights, and perform relevant
internal approval procedures as soon as
possible after the above procedures are initiated
within 12 months after meeting the
requirements that the return on net assets of
Harbin Light Automobile and FAW Hongta is
not lower than that of listed companies in the
same period and increasing the earnings per
share of listed companies after restructuring. 6.
From the date of issuance of the commitment
letter, if FAW violates any of the above
commitments, it will take positive measures in
favor of the listed company to eliminate
horizontal competition, including but not
limited to injecting assets related to horizontal
competition business into the listed company,
terminating horizontal competition business or
selling assets related to horizontal competition
business to an unrelated third party. 7. The
above commitments shall come into effect from
the date of completion of the restructuring and
shall remain valid and irrevocable during the
period when FAW serves as the controlling
shareholder or actual controller of the listed
company.
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1. Upon completion of the restructuring, the
main business of the listed company will be
changed to the R&D, production and sales of
commercial vehicle. 2. Upon completion of the
restructuring, FAW Car Co., Ltd. and its
holding enterprises other than listed companies
(hereinafter referred to as "holding
enterprises") shall not directly or indirectly
engage in any business or activity that
constitutes or may constitute substantial
competition with the main business engaged in
by listed companies and their holding
enterprises in any form. 3. Upon completion of
Commitment
Commitments the restructuring, if FAW Car Co., Ltd. or its The commitment
China FAW on avoiding
made during asset holding enterprises find any new business April 8, 2020 Long-term validity is being fulfilled
Co., Ltd. horizontal
restructuring opportunities that constitute or may constitute a normally.
competition
direct or indirect competition with the main
business of the listed company or its holding
enterprises (hereinafter referred to as "such new
business opportunities"), FAW or its holding
enterprises will immediately notify the listed
company in writing and try its best to first
provide such business opportunities to the
listed company or its holding enterprises
according to reasonable and fair terms and
conditions. If the listed company or its holding
enterprises decide to give up such new business
opportunities, FAW Car Co., Ltd. or its holding
enterprises can engage in it. 4. If the listed
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company or its holding enterprises give up such
new business opportunities and FAW Car Co.,
Ltd. or its holding enterprises engage in such
new business opportunities, the listed company
or its holding enterprises have the right to
always acquire any equity, assets and other
rights and interests in such new business
opportunities from FAW Car Co., Ltd. or its
holding enterprises one time or multiple times,
or the listed company or its holding enterprises
choose to entrust, lease or contract to operate
the assets or businesses of FAW Car Co., Ltd.
or its holding enterprises in such new business
opportunities in the manner permitted by laws
and regulations. FAW Car Co., Ltd. will ensure
that the holding enterprises of the Company
comply with the above commitments. 5. Harbin
Light Automobile and FAW Hongta under FAW
Light Commercial Vehicle Co., Ltd., a
subsidiary of FAW Car Co., Ltd., are engaged
in some light truck businesses. However, they
are currently in a state of discontinuation or
loss, with heavy burden and unstable
profitability. FAW Car Co., Ltd. promises that it
will urge to entrust all shares of Harbin Light
Automobile and FAW Hongta under its actual
control to Jiefang Limited for management, and
inject the equities of Harbin Light Automobile
and FAW Hongta under its actual control to
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listed companies in batches or at one time in an
appropriate way, or transfer them to other
unrelated third parties at a reasonable price and
in a reasonable way, or prevent the light truck
company from engaging in light truck related
businesses by exercising shareholders' rights,
and perform relevant internal approval
procedures as soon as possible after the above
procedures are initiated within 12 months after
meeting the requirements that the return on net
assets of Harbin Light Automobile and FAW
Hongta is not lower than that of listed
companies in the same period and increasing
the earnings per share of listed companies after
restructuring. 6. From the date of issuance of
the commitment letter, if FAW Car Co., Ltd.
violates any of the above commitments, it will
take positive measures in favor of the listed
company to eliminate horizontal competition,
including but not limited to injecting assets
related to horizontal competition business into
the listed company, terminating horizontal
competition business or selling assets related to
horizontal competition business to an unrelated
third party. 7. The above commitments shall
take effect from the date of completion of this
restructuring and shall remain valid and
irrevocable during the period when FAW Car
Co., Ltd. serves as the controlling shareholder
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or actual controller of the listed company.
(I) Ensure the personnel independence of the
listed company: 1. Maintain personnel
independence with the listed company, and
ensure that the General Manager, Deputy
General Manager, Financial Director, Secretary
of the Board of Directors and other senior
executives of the listed company do not hold
positions other than directors and supervisors in
FAW Car Co., Ltd. and its wholly-owned,
holding or other enterprises and public
institutions under actual control (hereinafter
Commitment
referred to as "subordinate units"), and do not
on
receive salary from FAW Car Co., Ltd. and its
Commitments maintaining The commitment
China FAW subordinate units. 2. Ensure that the listed
made during asset the April 8, 2020 Long-term validity is being fulfilled
Co., Ltd. company has a complete and independent labor,
restructuring independence normally.
human resources and salary management
of listed
system, which is completely independent of
companies
FAW Car Co., Ltd. and its subordinate units.
(II) Ensure the independence and integrity of
the assets of the listed company: 1. Ensure that
the listed company has independent and
complete assets, all of which are under the
control of the listed company, and are
independently owned and operated by the listed
company. 2. Ensure that FAW Car Co., Ltd. and
its subordinate units currently do not and will
not illegally occupy the funds and assets of the
listed company. 3. FAW Car Co., Ltd. will not
117
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use the assets of the listed company to
guarantee its debts. (III) Ensure the financial
independence of the listed company: 1. Ensure
that the listed company continues to maintain
an independent financial department and an
independent financial accounting system. 2.
Ensure that the listed company has a
standardized and independent financial and
accounting system. 3. Ensure that the listed
company opens a bank account independently
and does not share a bank account with FAW
Car Co., Ltd. 4. Ensure that the financial
personnel of the listed company do not take
part-time jobs in FAW Car Co., Ltd. and its
subordinate units. 5. Ensure that the listed
company can make financial decisions
independently, and FAW Car Co., Ltd. does not
interfere with the use of funds by the listed
company. 6. Ensure that the listed company
pays taxes independently according to law. (IV)
Ensure the institutional independence of the
listed company: 1. Ensure that the listed
company has an independent and complete
organizational institution and can operate it
independently. 2. Ensure that the office and
production and business premises of the listed
company are separated from FAW Car Co., Ltd.
3. Ensure that the Board of Directors, Board of
Supervisors and all functional departments of
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the listed company operate and exercise their
functions and powers independently, without
any affiliation or confusion with the functional
departments of FAW Car Co., Ltd. (V) Ensure
the business independence of the listed
company: 1. Maintain business independence
with the listed company after the restructuring,
and ensure substantial horizontal competition
or obviously unfair related transactions does
not exist or occur. 2. Ensure that the listed
company has the assets, personnel,
qualifications and capabilities to independently
carry out business activities, and has the ability
to independently operate in the market. 3.
Ensure that FAW Car Co., Ltd. does not
interfere with the normal business activities of
the listed company except for participating in
the operation and management of the listed
company by exercising shareholders' rights.
1. We will make sure that the consideration
shares obtained in the restructuring are given
priority to fulfill the performance compensation
Commitment commitment agreed in the Profit Forecast
Commitments The commitment
China FAW on pledging Compensation Agreement signed with the listed
made during asset April 8, 2020 Long-term validity is being fulfilled
Co., Ltd. consideration company, and we will not evade the
restructuring normally.
shares compensation obligation by pledge of shares or
other means. 2. When such consideration shares
are pledged in the future, we will inform the
pledgee in writing of the potential performance
119
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commitment compensation obligations of such
shares according to the Profit Forecast
Compensation Agreement, and make a clear
agreement with the pledgee on the use of
relevant shares for performance compensation
in the Pledge Agreement. 3. In case of violation
of the above commitments, we will compensate
the listed company for any losses incurred
thereby and bear the corresponding legal
liabilities.
1. We will not interfere with the operation and
management activities of the listed company
beyond our authority and will not encroach on
the interests of the listed company; 2. In this
Commitment
Commitments major asset restructuring, the listed company The commitment
China FAW on measures
made during asset issued shares to FAW Car Co., Ltd. to purchase April 8, 2020 Long-term validity is being fulfilled
Co., Ltd. to fill diluted
restructuring assets, and signed the Profit Forecast normally.
spot returns
Compensation Agreement attached with
effective conditions with FAW Car Co., Ltd.,
providing legally binding safeguard measures
to avoid diluted spot returns in this transaction.
The production qualification and product
announcement of Jiefang Limited will be under
Description the group management of FAW, that is, Jiefang
Commitments China FAW The commitment
on vehicle Limited will use the production qualification of
made during asset Group Co., April 8, 2020 Long-term validity is being fulfilled
production FAW vehicles, and its production qualification
restructuring Ltd. normally.
qualification and product announcement declaration will be
under the unified management of FAW. Upon
completion of the restructuring, FAW will
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continue to maintain group management based
on the actual needs of Jiefang Limited. Jiefang
Limited can continue to use relevant production
qualifications and keep the announcement of
existing models unchanged. FAW will not
hinder the continuous use of relevant
qualifications by Jiefang Limited, and will
cooperate with Jiefang Limited to maintain the
validity of relevant qualifications.
For some patents and proprietary technologies
(hereinafter referred to as "performance
commitment assets") in the purchased assets
evaluated by the income approach, the income
commitments of the audited performance
compensation assets in the three accounting
Performance
years (i.e. 2020, 2021 and 2022) after the
Commitments commitment The commitment
China FAW transaction are as follows: CNY 655,889,000 in
made during asset and April 8, 2020 April 30, 2023 is being fulfilled
Co., Ltd. 2020, CNY 688,155,200 in 2021 and CNY
restructuring compensation normally.
109,386,400 in 2022. During the performance
arrangement
commitment period, if as of the end of the
current year, the accumulated realized income
of the performance commitment assets is lower
than the accumulated committed income, FAW
Car Co., Ltd. will compensate the listed
company year by year by share-based payment.
Commitment Jiefang Limited and its holding subsidiaries
Commitments The commitment
China FAW on defects of cannot obtain the house ownership certificate November 27,
made during asset Long-term validity is being fulfilled
Co., Ltd. underlying for some properties due to historical reasons 2019
restructuring normally.
assets such as government planning and adjustment,
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land expropriation, incomplete construction
application procedures, and construction
beyond the red line. The above properties
account for 0.6% of the total area of house
ownership of Jiefang Limited and its holding
subsidiaries, which is relatively small and will
not have a significant adverse impact on the
normal production and operation of Jiefang
Limited. As the counterparty of the
restructuring, the Company promises that the
failure to obtain the corresponding ownership
certificate of the above properties will not
adversely affect the normal production and
operation of Jiefang Limited, and will not
constitute a substantial obstacle to the
restructuring. If the listed company or Jiefang
Limited suffers any punishment or loss due to
the failure to obtain the corresponding
ownership certificate of the above properties,
the Company promises to make full
compensation to the listed company or Jiefang
Limited in cash timely.
Commitment made
upon initial public
N/A N/A
offering or
refinancing
Equity incentive
N/A N/A
commitment
Other commitments N/A N/A
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to minority
shareholders of the
Company
Other commitments N/A N/A
Whether the
commitment is Yes
fulfilled on time
If the commitment
is not fulfilled
within the time
limit, the specific
None
reasons for the
failure and the next
work plan shall be
explained in detail
2. If there is a profit forecast for the Company's assets or projects, and the reporting period is still in the profit forecast period, the
Company shall explain that the assets or projects reaching the original profit forecast and the reasons
Applicable □ Not Applicable
123
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Name of Forecast Actual Reasons for Disclosure
Disclosure Index
Profit Forecast Forecast End Performance in Performance in Failure to Date of
of Original
Forecast Asset Start Time Time Current Period Current Period Reach the Original
Forecast
or Project (CNY 10,000) (CNY 10,000) Forecast Forecast
Some patents
and
proprietary
technologies
http://www.cninf
in the
o.com.cn/new/dis
purchased
closure/stock?sto
Jiefang January 1, December March 13,
145,343.06 194,914.96 N/A ckCode=000800
Limited assets 2020 31, 2022 2020
&orgId=gssz0000
evaluated by
800#latestAnnou
income
ncement
approach in
the major
asset
restructuring
Commitments made by shareholders and counterparties of the Company in reporting annual
business performance
Applicable □ Not Applicable
FAW Car Co., Ltd., the controlling shareholder of the Company, promises that, for some
patents and proprietary technologies (hereinafter referred to as "performance commitment assets")
in the purchased assets (Jiefang Limited) evaluated by the income approach in the major asset
restructuring, the income commitments of the audited performance compensation assets in the 3
accounting years (i.e. 2020, 2021 and 2022) after the transaction are as follows: CNY
655,889,000 in 2020, CNY 688,155,200 in 2021 and CNY 109,386,400 in 2022. During the
performance commitment period, if as of the end of the current year, the accumulated realized
income of the performance commitment assets is lower than the accumulated committed income,
FAW Car Co., Ltd. will compensate the listed company year by year by share-based payment.
Completion of performance commitments and their impact on goodwill impairment test
From 2020 to 2022, the share of the accumulative realized income of the Company's
performance commitment assets was CNY 1,949,149,600, exceeding the commitment amount of
CNY 495,719,000, and the performance commitment was completed.
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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. Description of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable Not applicable
V. Description of the Board of Directors, the Board of Supervisors and Independent
Directors (if any) on the "Non-standard Audit Report" of the Accounting Firm in the
Reporting Period
□ Applicable Not applicable
VI. Description of Changes in Accounting Policies and Accounting Estimates or Correction
of Significant Accounting Errors Compared with the Financial Report of the Previous Year
□ Applicable Not applicable
There is no change in accounting policies, accounting estimates or correction of significant
accounting errors in the reporting period of the Company.
VII. Description of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
Applicable □ Not Applicable
FAW Jiefang New Energy Automotive Sales Co., Ltd, a subsidiary of the Company, merged
FAW Jiefang Automotive Sales Co., Ltd., the former subsidiary of the Company, on the base date
of September 30, 2022.
VIII. Appointment and Dismissal of Accounting Firm
Accounting Firm Currently Hired
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Grant Thornton Certified Public
Name of Domestic Accounting Firm Accountants (Special General
Partnership)
Remuneration of Domestic Accounting Firm (CNY
95
10,000)
Consecutive Years of Audit Service Provided by
6 years
Domestic Accounting Firm
Name of Certified Public Accountant of Domestic
Xi Dawei and Yang Dongmin
Accounting Firm
Consecutive Years of Audit Service Provided by
Xi Dawei (5 years), Yang Dongmin (1
Certified Public Accountant of Domestic Accounting
year)
Firm
Whether to change to hire a new accounting firm in the current period
□ Yes No
Employment of accounting firm, financial consultant or sponsor for internal control audit
Applicable □ Not Applicable
After deliberation and adoption at the 28th meeting of the 9th Board of Directors and the
Third Extraordinary Shareholders’ Meeting of 2022, Grant Thornton Accounting Firm (special
general partnership) was appointed as the internal control audit institution of the Company in
2022, with an internal control audit fee of CNY 500,000.
IX. Delisting after Disclosure of Annual Report
□ Applicable Not applicable
X. Matters Related to Bankruptcy Reorganization
□ Applicable Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.
XI. Major Litigation and Arbitration Matters
Applicable □ Not Applicable
Basic Information Amount Whether Progress of Litigation Implementation Date of Disclo
about Litigation Involved Estimated Litigation (Arbitration) of Litigation Disclos sure
(Arbitration) (CNY 10,000) Liabilities are (Arbitration) Results and (Arbitration) ure Index
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Formed Impact Judgment
Including
Summary of other
estimated Case not closed
litigation not Case not No significant
10,317.01 liabilities of by the end of the
reaching the major closed impact
CNY reporting period
disclosure standard
32,195,200
Summary of other
litigation not No significant
350.72 No Case closed In progress
reaching the major impact
disclosure standard
XII. Punishment and Rectification
□ Applicable Not applicable
The company has no punishment or rectification in the reporting period.
XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□ Applicable Not applicable
XIV. Major Related Transactions
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1. Related transactions related to daily operations
Applicable □ Not Applicable
Whet
Settleme
Pricing her it
Amount of Proportion Approved nt
Principl Excee Available
Related Type of Content of Price of Related to the Transaction Method
e of ds the Market Value of Date of Disclosure
Transaction Correlation Related Related Related Transaction Amount of Amount of
Related Appro Similar Disclosure Index
Party Transaction Transaction Transaction (CNY Similar (CNY Related
Transact ved Transactions
10,000) Transactions 10,000) Transacti
ion Amou
on
nt
http://www.cni
nfo.com.cn/new
China FAW
The same Cash + /disclosure/stoc
Group
ultimate Sales of Sales of Market Market bill November k?stockCode=0
Import & 592,117.94 15.45% 702,416 No 592,117.94
controlling goods goods price price settlemen 29, 2022 00800&orgId=
Export Co.,
party t gssz0000800#la
Ltd.
testAnnouncem
ent
Total -- -- 592,117.94 -- 702,416 -- -- -- -- --
Details on the return of large goods None
Actual performance in the reporting period, if the total
For details about the actual performance of related transactions in the reporting period, please see Item XII "Related Parties and Related
amount of daily related transactions to be incurred in the
Transactions" in Section X of this report.
current period is estimated by category
Reasons for large difference between transaction price and
N/A
market reference price
128
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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 foreign investment
□ Applicable Not applicable
The Company has no related transaction of joint foreign investment in the reporting period.
4. Related credit and debt transactions
Applicable □ Not Applicable
Whether there are non-operating related credit and debt transactions
□ Yes No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with related finance companies
Applicable □ Not Applicable
Deposit Business
Amount incurred in the current
Maximum period
Deposit
Daily Opening Total Ending
Related Interest Total Deposit
Correlation Deposit Balance (CNY Withdrawal Balance (CNY
Parties Rate Amount in the
Limit (CNY 10,000) Amount in the 10,000)
Range Current Period
10,000) Current Period
(CNY 10,000)
(CNY 10,000)
Associated
enterprise
First
of the
Automo
Company, 0.35%-
bile 3,000,000 2,265,311.07 38,467,770.79 39,349,788.43 1,383,293.43
the same 2.85%
Finance
ultimate
Co., Ltd.
controlling
party
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Credit Granting or Other Financial Businesses
Actual Amount
Total Price (CNY
Related Parties Correlation Business Type Incurred (CNY
10,000)
10,000)
Associated
enterprise of the
First Automobile Other financial
Company, the same 900,000 138,527
Finance Co., Ltd. businesses
ultimate controlling
party
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable Not applicable
There is no deposit, loan, credit granting or other financial businesses between the finance
companies controlled by the Company and related parties.
7. Other major related transactions
Applicable □ Not Applicable
(1) On 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.
(2) On November 28, 2022, the Proposal on Increasing the Estimate of Daily Related
Transactions in 2022 was deliberated and adopted at the 29th Meeting of the 9th Board of
Directors of the Company, which was also deliberated and adopted at the Fourth Extraordinary
Shareholders’ Meeting of 2022 of the Company.
(3) On December 15, 2022, the Proposal on Investment of Subsidiaries in Changchun
Automobile Test Center Co., Ltd. was adopted at the 30th Meeting of the 9th Board of Directors of
the Company.
Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
130
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Disclosure Date of Name of Temporary
Name of Temporary Announcement Temporary Announcement Disclosure
Announcement Website
Announcement on estimated
CNINFO
amount of daily related transactions January 28, 2022
(http://www.cninfo.com.cn)
in 2022
Announcement on estimated
amount of financial business with CNINFO
January 28, 2022
First Automobile Finance Co., Ltd. (http://www.cninfo.com.cn)
in 2022
Announcement on Increasing the
CNINFO
Estimate of Daily Related November 29, 2022
(http://www.cninfo.com.cn)
Transactions in 2022
Announcement on Foreign
CNINFO
Investment and Related December 16, 2022
(http://www.cninfo.com.cn)
Transactions
XV.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 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
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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 14 "Investment real estate",
Note 15 "Fixed assets", and Note 19 "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.
3. Cash Assets Management Entrusted to Others
(1) Entrusted Financial Management
□ Applicable Not applicable
The Company has no entrusted financial management in the reporting period.
(2) Entrusted Loans
□ Applicable Not applicable
The Company has no entrusted loans in the reporting period.
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4. Other major contracts
□ Applicable Not applicable
The Company has no other major contracts in the reporting period.
XVI. Other Major Matters to be Explained
□ Applicable Not applicable
There are no other major matters to be explained by the Company in the reporting period.
XVII. 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
Transfer
Issue of New Bonus red from
Quantity Scale Others Subtotal Quantity Scale
Shares shares Accumu
lation
Fund
I. Restricted shares 3,238,899,791 69.64% 3,721,601 -1,050,568 2,671,033 3,241,570,824 69.66%
1. Shares held by the state
2. Shares held by the state-
3,197,912,134 68.76% 3,197,912,134 68.72%
owned legal person
3. Shares held by other
40,987,657 0.88% 3,721,601 -1,050,568 2,671,033 43,658,690 0.94%
domestic enterprises
Including: shares held by
domestic legal person
Shares held by domestic
40,987,657 0.88% 3,721,601 -1,050,568 2,671,033 43,658,690 0.94%
natural person
4. Shares held by foreign
enterprises
Including: shares held by
overseas legal person
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Shares held by overseas
natural person
II. Unrestricted shares 1,411,754,078 30.36% 1,411,754,078 30.34%
1. CNY ordinary shares 1,411,754,078 30.36% 1,411,754,078 30.34%
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 -1,050,568 2,671,033 4,653,324,902 100.00%
135
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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. Some original incentive objects firstly granted by the Company do not conform to the
provisions on incentive objects in the restricted share incentive plan due to job transfer,
mandatory retirement, leaving the job for personal reasons or other reasons, and a total number of
1,050,568 restricted shares held by them is repurchased and canceled by the Company. After the
completion of granting, repurchase and cancellation of the above reserved part, the total share
capital of the Company is changed to 4,653,324,902 shares.
Approval of share changes
Applicable □ Not Applicable
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 were deliberated and adopted at
the 20th meeting of the 9th Board of Directors and the 19th meeting of the 9th Board of
Supervisors of the Company respectively on December 9, 2021. The Proposal on Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan was
deliberated and adopted at the 26th meeting of the 9th Board of Directors and the 23rd meeting of
the 9th Board of Supervisors on August 29, 2022 and the Second Extraordinary Shareholders’
Meeting of 2022 on September 16, 2022.
Transfer of share changes
Applicable □ Not Applicable
(1) On January 5, 2022, the Company completed the registration procedures with CSDC for the
additional shares involved in the grant of the reserved part of this equity incentive plan. New
shares were listed on January 10, 2022, and the total share capital of the Company was increased
to 4,654,375,470 shares.
(2) On January 13, 2022, the Company completed the repurchase and cancellation procedures for
the shares involved in the repurchase and cancellation of relevant equity incentives in China
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Securities Depository and Clearing Corporation Limited (CSDC), 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.
(3) On November 10, 2022, the Company completed the repurchase and cancellation procedures
for the shares involved in the repurchase and cancellation of relevant equity incentives in CSDC,
CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the total
share capital of the Company was reduced to 4,653,324,902 shares.
Impact of changes in shares on financial indicators such as basic earnings per share and diluted
earnings per share in the latest year and the latest period, and net assets per share attributable to
common shareholders of the Company
Applicable □ Not Applicable
In the reporting period, the net increase in share capital of the Company was 2,671,033 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 Number of Number of Number of
Name of Restricted Shares Restricted Shares Restricted Shares Restricted Shares Reason for
Release Date
Shareholder at the Beginning Increased in the Released in the at the End of the Restriction
of the Period Current Period 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
Hu Hanjie 334,331 334,331 Equity incentive The restricted period of all restricted
Wu Bilei 228,552 228,552 Equity incentive shares granted to incentive objects is
Zhang Guohua 228,493 228,493 Equity incentive 2 years, and three release dates are
Ji Yizhi 192,778 192,778 Equity incentive set, which are the next day after the
Tian Haifeng 192,778 192,778 Equity incentive expiration of the restricted period and
Li Sheng 192,778 192,778 Equity incentive the first and second anniversary days
Wang Jianxun 192,778 192,778 Equity incentive of that day (postponed to the first
trading day after that in case of
holidays). The upper limit of the
number of restricted shares released is
Other core 33%, 33% and 34% of the total
employees of number of shares granted to incentive
39,425,169 2,671,033 42,096,202 Equity incentive
senior director objects respectively. In the first
and above release period, the firstly granted
restricted shares were unlocked and
listed for circulation on February 6,
2023.
Total 3,238,899,791 2,671,033 0 3,241,570,824 -- --
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II. Issuance and Listing of Securities
1. Issuance of Securities (Excluding Preferred Share) in the Reporting Period
Applicable □ Not Applicable
Name of
Shares Issue Transacti
Quantity
and Issue Price (or Quantity Date of on Disclosur Date of
Approved
Derivativ Date Interest Issued Listing Terminati e Index Disclosure
for Listing
e Rate) on Date
Securities
Stocks
http://ww
w.cninfo.
com.cn/n
ew/disclo
sure/stock
CNY
Decembe January ?stockCo January 6,
A share 6.38/shar 3,721,601 3,721,601
r 9, 2021 10, 2022 de=00080 2022
e
0&orgId=
gssz0000
800#lates
tAnnounc
ement
Description of securities issuance (excluding preferred shares) 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.
2. Changes in the Total Number of Shares and Shareholder Structure, as well as Changes
in the Structure of the Company's Assets and Liabilities
Applicable □ Not Applicable
According to the Company's restricted share incentive plan, the Company issued 3,721,601
A ordinary shares in total to the reserved grant objects of the phase I restricted share incentive
plan, and repurchased and canceled 1,050,568 granted shares of incentive objects that fail to
conform to the restricted share incentive plan. To sum up, the total number of shares of the
Company was changed from 4,650,653,869 shares to 4,653,324,902 shares.
3. Existing Internal Employee Shares
□ Applicable Not applicable
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III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholdings of the Company
Unit: share
Total
Number of
Ordinary
Total Number of
Shareholders
Total Number of Preferred Total Number of Preferred
at the End of
Common Shareholders Shareholders with Resumed
the Last
Shareholders at 88,229 80,893 with Restored 0 Voting Rights at the End of the 0
Month
the End of the Voting Rights at Last Month before the
before the
Reporting Period the End of the Disclosure Date
Disclosure
Reporting Period
Date of the
Annual
Report
Shareholdings of Shareholders Holding More Than 5% of the Shares or Top 10 Shareholders
Pledge, Marking or
Number of Shares Increase and Number of Freezing
Name of Nature of Shareholding Number of Restricted
Held at the End of the Decrease in the Unrestricted Shares Status
Shareholder Shareholders Proportion Shares Held
Reporting Period Reporting Period Held of Quantity
Shares
China FAW Co., State-owned
65.77% 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
1.18% 54,840,312 -6,329,184 54,840,312
Clearing legal person
Company Ltd.
Domestic
Lu Min 0.78% 36,096,590 36,096,590 36,096,590
natural person
Jilin Province State-owned 0.29% 13,712,916 13,712,916
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State-owned legal person
Capital
Domestic
Chao Guo 0.17% 7,859,358 3,807,429 7,859,358
natural person
Domestic
Li Yan 0.16% 7,660,000 7,660,000
natural person
Zhong Ou AMC
- Agricultural
Bank of China -
Zhong Ou &
Others 0.12% 5,549,500 5,549,500
CITIC Securities
Financial Asset
Management
Plan
Bosera Asset
Management
Co., Ltd. -
Agricultural
Bank of China -
Others 0.12% 5,549,500 5,549,500
Bosera & CITIC
Securities
Financial Asset
Management
Plan
China
Construction
Bank
Corporation - GF
Others 0.12% 5,460,795 5,460,795 5,460,795
China Securities
Auto Index-
based Securities
Investment Fund
Strategic investors or general legal
persons who become the top 10
None
shareholders due to the issuance of
new shares
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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 Shareholders with Unrestricted Ordinary Shares
Number of Unrestricted Shares Held at the End Type of Shares
Name of Shareholder
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
54,840,312 CNY ordinary shares 54,840,312
Company Ltd.
Lu Min 36,096,590 CNY ordinary shares 36,096,590
Jilin Province State-owned Capital 13,712,916 CNY ordinary shares 13,712,916
Chao Guo 7,859,358 CNY ordinary shares 7,859,358
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
CITIC Securities Financial Asset
Management Plan
Bosera Asset Management Co.,
Ltd. - Agricultural Bank of China -
5,549,500 CNY ordinary shares 5,549,500
Bosera & CITIC Securities
Financial Asset Management Plan
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China Construction Bank
Corporation - GF China Securities
5,460,795 CNY ordinary shares 5,460,795
Auto Index-based Securities
Investment Fund
Li Songsen 4,300,000 CNY ordinary shares 4,300,000
Description of correlation or
concerted action between the top Among the above shareholders, FAW Bestune is a wholly-owned subsidiary of FAW, and is a person acting in concert as
10 shareholders of unrestricted specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does
shares, and between the top 10 not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of
shareholders of unrestricted shares outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies.
and the top 10 shareholders
Lu Min, a domestic natural person, holds 36,096,590 shares of the Company through the guaranteed securities account for
Description of top 10 ordinary customer credit trading of CITIC Securities; Chao Guo, a domestic natural person, holds 7,825,200 shares of the Company
shareholders' participation in through the guaranteed securities account for customer credit trading of Minsheng Securities; Li Yan, a domestic natural person,
financing bonds business holds 7,660,000 shares of the Company through the guaranteed securities account for customer credit trading of Dongguan
Securities.
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unrestricted ordinary shares of the Company have agreed
repurchase transactions in the reporting period
□ Yes No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unrestricted ordinary shares of the Company do not agree
repurchase transactions in the reporting period
2. Information of Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
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Legal
Name of Controlling Date of
Shareholder Representative/Person Establishment Organization code Main Business
in Charge
Automobile manufacturing and
remanufacturing, new energy vehicle
manufacturing; design, development,
manufacturing and sales of automobile parts
and components such as engines and
transmissions; metal casting and forging, mold
processing; engineering technology research
and test; professional technical services;
computer and software services; thermal power
generation and power supply; heat production
China FAW Co., Ltd. Xu Liuping June 28, 2011 91220101571145270J and supply; water and gas supply; road freight
transport; warehousing; sales of mechanical
equipment, hardware and electrical equipment,
electronic products and vehicle materials; lease
of mechanical equipment; advertising design,
production and release; business services; labor
service; sales of vehicles and second-hand
vehicles (prohibited by laws, regulations and
decisions of the State Council. Items subject to
approval according to law can be operated only
after being approved by relevant authorities).
Equity of Other
Domestic and Foreign None
Listed Companies
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Controlled and
Participated by
Controlling
Shareholders in the
Reporting Period
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.
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3. Company's Actual Controllers and Persons Acting in Concert
Nature of actual controller: central state-owned assets management organization
Type of actual controller: legal person
Legal
Date of
Representativ Organization c
Name of Actual Controller Establish Main Business
e/Person in ode
ment
Charge
State-owned
Assets Supervision and
N/A N/A N/A
Administration Commission of the
State Council
Equity of Other Domestic and
Foreign Listed Companies
N/A
Controlled by Actual Controllers in
the Reporting Period
Change of actual controller in the reporting period
□ Applicable Not applicable
There is no change in the actual controller of the Company in the reporting period.
Block Diagram of Property Right and Control Relationship between the Company and the Actual
Controllers
The actual controllers control the Company by trust or other asset management methods
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□ Applicable Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or
the largest shareholder and persons acting in concert accounts for 80% of the Company's
shares held by them.
□ Applicable Not applicable
5. Other Corporate Shareholders Holding More Than 10% of the Shares
Applicable □ Not Applicable
Legal
Name of
Representative/ Date of Registered
Corporate Main Business or Management Activities
Person in Establishment Capital
Shareholder
Charge
Development, manufacturing and sales of automobiles
and parts (including new energy vehicles and their
related batteries, motors, electronic controls, and
excluding flammable and explosive hazardous
chemicals), station wagons and their accessories,
intelligent products and equipment; vehicle repair;
processing of non-standard equipment; sales of
mechanical accessories and mechanical and electrical
products (excluding cars); sales of second-hand
vehicles; lease of vehicles; lease of premises and
plant; road general cargo transportation; modern trade
logistics services; technical services and technical
consultation in the automobile field; using the Internet
CNY to engage in automobile operation; import and export
FAW Bestune
Yang Xiao June 28, 2019 1,627,500,0 of goods and technology (excluding publication
Car Co., Ltd.
00
import and export business, as well as commodities
and technologies that are restricted or prohibited for
import and export by the state); second-hand vehicle
brokerage; part-time insurance agency business; motor
vehicle repair and maintenance; recycling of end-of-
life motor vehicles; disassembly of end-of-life motor
vehicles; business training (excluding education
training, vocational skills training and other training
requiring licenses); stationery retail, stationery
wholesale; sales of automotive decoration products;
sales of lubricating oil; IoT technology R&D and
technical services; manufacturing of power
transmission and distribution and control equipment;
advertising design, agency; advertising production;
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advertisement release (non-radio stations, TV stations,
newspapers and periodicals publishers); labor service
(excluding labor dispatch); motor vehicle safety
technology testing service; artificial intelligence
public data platform; data processing and storage
support services; Internet data service; inspection and
testing services; general cargo warehousing services
(excluding hazardous chemicals and other items
requiring licensing and approval); marketing planning;
lease of computer and communication equipment;
conference and exhibition services; lease of
mechanical equipment; Category I value-added
telecommunications services; Category II value-added
telecommunications services; intellectual property
services (items subject to approval according to law
can be operated only after being approved by relevant
authorities).
6. Restricted Reduction of Shares Held by Controlling Shareholders, Actual Controllers,
Restructuring Parties and Other Commitment Subjects
□ Applicable Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
□ Applicable Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized
Bidding
□ Applicable Not applicable
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Section VIII Preferred Shares
□ Applicable Not applicable
The Company has no preferred shares in the reporting period.
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Section IX Bonds
□ Applicable Not applicable
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Section X Financial Report
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Signing Date of Auditor Report March 31, 2023
Grant Thornton Certified Public Accountants (Special
Name of Audit Institution
General Partnership)
Audit Report No. ZTSZ (2023) No. 110A006250
Name of Certified Public Accountant Xi Dawei and Yang Dongmin
Text of Auditor Report
All shareholders of FAW JIEFANG GROUP CO., LTD.:
I. Auditor’s Opinion
We have audited the financial statements of FAW JIEFANG GROUP CO., LTD.(hereinafter referred to as
"FAW Jiefang"), including the Consolidated and the Company's Balance Sheets on December 31, 2022, the
Consolidated and the Company's Income Statements, the Consolidated and the Company's Cash Flow
Statements, the Consolidated and the Company's Statements of Changes in Shareholders' Equity, and the Notes
to Financial Statements for the year then ended.
In our opinion, the attached financial statements were compiled as per the provisions of Accounting
Standards for Business Enterprises (ASBE) in all major aspects and can fairly present the consolidated and
FAW Jiefang's financial status as of December 31, 2022, as well as their business performance and cash flows
for the year then ended.
II. Basis for Opinion
We have conducted our audit in accordance with the Auditing Standards for Certified Public
Accountants of China. The section in the Auditor’s Report titled “CPAs’ Responsibilities for the Audit of the
Financial Statements” further describes our responsibilities under these standards. We are independent of FAW
Jiefang in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, we consider to be most
significant to the audit of the financial statements for the period. These matters were addressed in the context
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of our audit for the entire financial statements and the formation of our opinions thereon. We do not declare a
separate opinion on these matters.
(I) Income Recognition
For details of relevant information disclosure, refer to 33 in V and 44 in VII of Section X - Financial
Report.
1. Description
The sales revenue of FAW Jiefang mainly comes from the vehicle sales business. In 2022, FAW
Jiefang realized an operating income of CNY 38,331,747,100, of which the vehicle sales revenue was
CNY 33,483,232,300, accounting for 87.35%. According to the specific method of income recognition of
FAW Jiefang, the income is recognized when the complete vehicle is shipped and the customer has
accepted the goods. The vehicle sales revenue has a significant impact on the financial statements of FAW
Jiefang, so we identified the income recognition as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Understand the effectiveness of internal control design related to income recognition, and test the
effectiveness of key control implementation;
(2) Analyze the income and gross profit rate in combination with the product type, and compare
them with the data of the same industry to judge whether the income and gross profit rate in the current
period are abnormal;
(3) Interview with the management, check the terms of the sales contract, analyze and judge the time
point of control right transfer of vehicle sales, and evaluate the rationality of the income recognition policy;
(4) Conduct the spot check on the supporting documents related to income recogniti on, including
sales contracts, orders, sales invoices, product transportation documents, customer receipts, etc.;
(5) Execute transaction and correspondence confirmation for the sales business of major and new
customers;
(6) For the sales revenue recognized before and after the balance sheet date, check the basis for
customer receipt confirmation, and evaluate whether the sales revenue is recorded in the appropriate period.
(II) Provision for Decline in Value of Inventories
For details of relevant information disclosure, refer to 15 in V and 7 in VII of Section X - Financial
Report.
1. Description
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As of December 31, 2022, the book balance of inventory of FAW Jiefang was CNY 6,799,846,300,
and the balance of decline in value of inventories was CNY 417,106,400, of which CNY 418,448,400 was
provided in the current period. The provision amount for decline in value of inventories is significant and
requires significant judgment of the management, so we identified the provision for decline in value of
inventories as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the design and operational effectiveness of key internal controls related to the
provision for decline in value of inventories by the management;
(2) Obtain the Calculation Sheet of Provision for Decline in Value of Inventories of FAW Jiefang,
review the net realizable value of inventories and the amount of provision for decline in value of inventories,
and check the key parameters such as estimated selling price and selling expenses when the management
determines the net realizable value with the historical amount to evaluate the rationality of the management's
estimation;
(3) Check the quantity and status of inventories in combination with the inventory supervision
procedures, focus on checking long-aged inventories, and analyze the adequacy of provision for decline in
value of inventories with signs of impairment;
(4) Check the changes in the provision for decline in value of inventories made in previous years in
the current period, and analyze the rationality of the changes in the provision for decline in value of
inventories.
(III) Provision for Product Quality Guarantee Deposit
For details of relevant information disclosure, refer to 31 in V and 35 and 46 in VII of Section X -
Financial Report.
1. Description
As of December 31, 2022, FAW Jiefang has provided product quality assurance deposit of CNY
317,822,200 in the current year, and the balance of product quality guarantee deposit in the estimated
liabilities is CNY 826,046,700. Based on the vehicle sales contract and relevant national laws and
regulations, customers can obtain free warranty services provided by FAW Jiefang within the warranty
period. The management of FAW Jiefang calculates the product quality guarantee deposit based on the relevant
provisions in the product type, warranty period and warranty obligation clauses. The provision amount of
product quality guarantee deposit is relatively large and involves significant estimation and judgment of the
management, so we identified the provision for product quality guarantee deposit as a key audit matter.
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2. Audit response
Our audit procedures mainly include:
Test and evaluate the effectiveness of key internal control design and operation relat ed to the
provision for product quality guarantee deposit;
Understand and evaluate whether the accounting policies related to the provision for product
quality deposit are appropriate and consistently applied;
Understand and evaluate the rationality of the method and calculation model adopted by FAW
Jiefang for the provision for product quality deposit according to laws, regulations and contract
terms;
Perform recalculation procedures to verify the accuracy of the management's provision for product
quality guarantee deposit.
IV. Other Information
The management of FAW Jiefang (hereinafter referred to as the management) is responsible for other
information. Other information comprises the information included in the Annual Report of Year 2022 of FAW
Jiefang, but does not include the financial statements and our auditor’s report thereon.
Our audit opinion on the financial statements does not cover other information, and we do not
express an assurance conclusion of any kind on other information
Based on our audit of the financial statements, our responsibility is to consider whether other
information has material inconsistency or seems to have material misstatement with the financial
statements or circumstances that we know during the audit while reading other information.
Based on the work we have performed, if we determine that other information is materially misstated,
we should report that fact. In this regard, we have nothing to report.
V. Responsibilities of Management and Governance for the Financial Statements
The management of FAW Jiefang shall be responsible for preparing financial statements that present
fairly the data in accordance with the Accounting Standards for Business Enterprises, and for designing,
implementing and maintaining the internal controls as the management deems necessary to enable the
preparation of financial statements free from material misstatement, whether due to fraud or error.
In preparation of the financial statement, the management is responsible for assessing FAW Jiefang ’s
sustainable operation ability, disclosing the sustainable operation related items (if applicable) and applying
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sustainable operation assumptions, unless otherwise the management plans to liquidate FAW Jiefang, stop
operation or it has no other practical choice.
The governance is responsible for supervising the financial reporting process of FAW Jiefang.
VI. CPAs’ Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statemen ts as a whole are
free from material misstatement caused by fraud or error, and to issue an Auditor’s Report containing our
opinions. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit conducted in
accordance with auditing standards can always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions users would take on the basis of these financial statements.
We exercise professional judgment and maintain professional skepticism in carrying out our audit in
accordance with the Auditing Standards. At the same time, we also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of failing to detect a material
misstatement due to fraud is higher than that due to error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or overriding internal controls.
(2) Know the internal control relating to the audit in order to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going-concern assumption,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on FAW Jiefang's ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on information available as of the date of the Auditor's Report. However, future events or conditions may
cause FAW Jiefang to cease to continue as a going concern.
(5) Evaluating the overall presentation, structure and contents of the financial statements and
whether the financial statements can fairly reflect the transactions and items.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within FAW Jiefang to express an opinion on the financial state ments. We are
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responsible for guiding, supervising, and performing the group audit, and assume all responsibilities for
our opinion.
We communicate with the Governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the governance with a statement regarding compliance with ethical requirements
related to independence and communicate with the governance about all relationships and other matters
that could reasonably be considered to affect our independence, as well as related precautions (if
applicable).
From the matters communicated with the governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We have described these matters in the Auditor’s Report, except that they are prohibited from being
publicly disclosed as per the laws and regulations, or in the rare cases, if a negative result that may be caused by
communicating some matter in the auditor’s report as reasonably expected exceeds the benefit generated by the
public interest, we determine not to communicate such matter in the auditor’s report.
II. Financial Statements
The unit of statement in the financial notes is CNY
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
December 31, 2022
Unit: CNY
Item December 31, 2022 January 1, 2022
Current assets:
Monetary capital 21,041,473,417.71 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 186,748,716.22 12,936,978.11
Accounts receivable 867,090,338.42 1,279,693,951.70
Accounts receivable financing 3,461,653,473.66 5,305,018,299.79
Prepayments 897,834,864.08 868,811,412.99
Premiums receivable
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Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other accounts receivable 1,068,454,162.91 249,088,090.95
Including: interests receivable
Dividends receivable 2,608,000.00 8,567,040.00
Financial assets purchased under
agreements to resell
Inventories 6,382,739,897.83 9,268,120,531.25
Contract assets 11,129,624.75 53,047,687.72
Held-for-sale assets
Current portion of non-current
191,262,030.30 114,825,391.38
assets
Other current assets 894,927,499.59 2,014,149,591.51
Total current assets 35,003,314,025.47 49,926,954,656.80
Non-current assets:
Loans and advances
Debt investment
Other creditors' investment
Long-term receivables 121,606,587.43 222,590,757.79
Long-term equity investments 4,692,648,635.84 4,766,734,671.74
Investment in other equity
480,780,000.00
instruments
Other non-current financial
assets
Investment property 80,647,597.48 80,202,825.09
Fixed assets 9,612,922,810.28 9,236,789,322.03
Project under construction 1,902,143,354.11 965,997,208.23
Productive biological assets
Oil and gas assets
Right-of-use assets 198,220,342.59 143,766,265.44
Intangible assets 2,549,096,918.05 2,772,277,116.13
Development expenditures
Goodwill
Long-term deferred expenses 130,439.66 334,598.30
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Deferred income tax assets 2,131,349,905.21 1,650,296,511.26
Other non-current assets
Total non-current assets 21,769,546,590.65 19,838,989,276.01
Total assets 56,772,860,616.12 69,765,943,932.81
Current liabilities:
Short-term loans
Borrowing from the central bank
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 9,198,593,038.03 13,062,704,192.54
Accounts payable 10,033,608,668.06 14,564,899,994.47
Advance receipts 1,861,865.37 1,712,917.27
Contract liabilities 1,629,524,704.35 2,700,642,475.91
Financial assets sold for
repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 436,648,178.76 364,450,425.37
Taxes payable 301,211,845.51 173,948,529.53
Other payables 6,095,452,748.17 7,383,223,172.30
Including: interests payable
Dividends payable 171,500.02 171,500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due
32,998,374.87 47,060,544.71
within one year
Other current liabilities 133,584,259.07 267,479,444.78
Total current liabilities 27,863,483,682.19 38,566,121,696.88
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Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 54,814,603.06 88,307,218.05
Long-term payables
Long-term employee pay
707,310,890.43 764,529,046.36
payable
Estimated liabilities 875,468,804.10 1,257,487,319.78
Deferred incomes 3,121,985,685.93 2,473,072,814.33
Deferred income tax liabilities 430,369,867.93 374,185,114.15
Other non-current liabilities
Total non-current liabilities 5,189,949,851.45 4,957,581,512.67
Total liabilities 33,053,433,533.64 43,523,703,209.55
Owner's equities:
Share capital 4,651,965,655.00 4,654,114,613.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 10,451,088,236.74 10,439,365,093.18
Less: treasury shares 267,837,184.11 310,460,486.38
Other comprehensive incomes -5,399,120.81 -32,794,902.20
Special reserves 370,420,291.86 315,398,148.75
Surplus reserves 3,058,249,602.44 2,742,214,904.83
General risk provision
Undistributed profits 5,460,939,601.36 8,434,403,352.08
Total equity attributable to owners
23,719,427,082.48 26,242,240,723.26
of the parent company
Minority equity
Total owners' equity 23,719,427,082.48 26,242,240,723.26
Total liabilities and owner's
56,772,860,616.12 69,765,943,932.81
equities
Legal representative: Hu Hanjie Person in charge of accounting: Ou Aimin Person in charge of the
accounting organization: Si Yuzhuo
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2. Balance sheet of parent company
Unit: CNY
Item December 31, 2022 January 1, 2022
Current assets:
Monetary capital 5,776,955.29 9,646,455.17
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments
Other accounts receivable 224,132.76 432,429.80
Including: interests receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 141,004.41 720,491.14
Total current assets 6,142,092.46 10,799,376.11
Non-current assets:
Debt investment
Other creditors' investment
Long-term receivables
Long-term equity investments 25,580,280,570.19 25,640,802,370.53
Investment in other equity
instruments
Other non-current financial
assets
Investment property
Fixed assets
Project under construction
Productive biological assets
Oil and gas assets
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Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets 25,580,280,570.19 25,640,802,370.53
Total assets 25,586,422,662.65 25,651,601,746.64
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 964,364.48 200,000.00
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 3,264,343.98 1,462,703.57
Other payables 298,294,257.75 552,502,809.86
Including: interests payable
Dividends payable 171,500.02 171,500.02
Held-for-sale liabilities
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 302,522,966.21 554,165,513.43
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities
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Long-term payables
Long-term employee pay
payable
Estimated liabilities
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 302,522,966.21 554,165,513.43
Owner's equities:
Share capital 4,651,965,655.00 4,654,114,613.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 12,278,939,213.88 12,267,337,664.44
Less: treasury shares 267,837,184.11 310,460,486.38
Other comprehensive incomes -480,794.77 304,113.31
Special reserves
Surplus reserves 1,827,531,841.54 1,511,497,143.93
Undistributed profits 6,793,780,964.90 6,974,643,184.91
Total owners' equity 25,283,899,696.44 25,097,436,233.21
Total liabilities and owner's
25,586,422,662.65 25,651,601,746.64
equities
3. Consolidated profit statement
Unit: CNY
Item 2022 Year 2021
I. Total operating revenue 38,331,747,083.88 98,751,242,669.55
Including: operating income 38,331,747,083.88 98,751,242,669.55
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 40,599,244,915.95 95,492,383,491.31
Including: operating cost 35,252,170,886.53 88,809,338,768.60
Interest expense
Handling charges and commission expense
Surrender value
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Net payments for insurance claims
Net allotment of reserves for insurance liabilities
Policy dividend expenditure
Expenses for reinsurance accepted
Taxes and surcharges 207,798,168.60 366,791,673.98
Sales expenses 1,255,882,221.64 1,754,344,114.38
Administrative expenses 2,040,339,354.62 2,453,597,224.68
R&D expenses 2,895,655,097.73 3,328,946,673.10
Financial expenses -1,052,600,813.17 -1,220,634,963.43
Including: interest expenses 5,560,792.92 7,533,847.89
Interest income 944,342,610.79 931,991,300.64
Add: Other incomes 1,638,060,139.20 339,850,769.01
Investment income (loss to be listed with “-”) 236,918,218.51 735,914,141.27
Including: income from investment in associates and
346,588,767.31 706,078,890.17
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 "-") 919,157.09 -24,268,589.20
Asset impairment loss (loss to be listed with “-”) -424,288,578.25 -229,780,995.94
Income from assets disposal (loss to be listed with “-”) 871,031,108.06 458,484.79
III. Operating profit (losses expressed with "-") 55,142,212.54 4,081,032,988.17
Add: non-operating income 153,997,194.43 55,278,042.86
Less: non-operating expenses 26,567,738.01 27,133,244.78
IV. Total profit (losses expressed with "-") 182,571,668.96 4,109,177,786.25
Less: Income tax expenses -185,173,776.38 209,323,025.86
V. Net profit (net losses expressed with "-") 367,745,445.34 3,899,854,760.39
(I) Classified according to business continuity
1. Net profit from continuing operations (net losses
367,745,445.34 3,899,854,760.39
expressed with "-")
2. Net profit from discontinuing operations (net losses
expressed with "-")
(II) Classified according to attribution of the ownership
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1. Net profit attributable to the parent company's
367,745,445.34 3,899,854,760.39
shareholders
2. Minority interests
VI. Net after-tax amount of other comprehensive income 27,395,781.39 -29,691,455.76
Net after-tax amount of other comprehensive income
27,395,781.39 -29,691,455.76
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be reclassified
27,800,000.00 -28,120,000.00
into profits or losses
1. Changes arising from re-measurement of the defined
27,800,000.00 -28,120,000.00
benefit plan
2. Other comprehensive incomes that cannot be transferred
to profits or losses under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the Company’s credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
-404,218.61 -1,571,455.76
into profits or losses
1. Other comprehensive incomes that can be transferred to
-784,908.08 -34,864.10
profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4. Other creditors’ investment credit impairment
provisions
5. Cash flow hedging reserve
6. Differences arising from foreign currency conversion
380,689.47 -1,536,591.66
under financial statements
7. Others
Net after-tax amount of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income 395,141,226.73 3,870,163,304.63
Total comprehensive income attributable to the owners of
395,141,226.73 3,870,163,304.63
parent company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.0735 0.8412
(II) Diluted income per share 0.0735 0.8412
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
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4. Profit statement of parent company
Unit: CNY
Item 2022 Year 2021
I. Operating revenue
Less: operating costs
Taxes and surcharges 112,763.40 449.30
Sales expenses
Administrative expenses 3,603,463.88 3,666,639.35
R&D expenses
Financial expenses 88,801.55 -1,526,376.09
Including: interest expenses 338,917.37 23,169.25
Interest income 250,875.82 1,553,654.55
Add: Other incomes 528,150.13 1,023,541.18
Investment income (loss to be listed with “-”) 3,163,832,151.72 3,478,121,966.42
Including: income from investment in associates and
364,182,151.72 758,201,966.42
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 "-") -208,297.04 -26,576.46
Asset impairment loss (loss to be listed with “-”)
Income from assets disposal (loss to be listed with “-”)
II. Operating profit (losses expressed with "-") 3,160,346,975.98 3,476,978,218.58
Add: non-operating income 0.07 30.00
Less: non-operating expenses
III. Total profit (total (losses expressed with "-") 3,160,346,976.05 3,476,978,248.58
Less: Income tax expenses
IV. Net profit (net losses expressed with "-") 3,160,346,976.05 3,476,978,248.58
(I) Net profit from continuing operations (net losses expressed
3,160,346,976.05 3,476,978,248.58
with "-")
(II) Net profit from discontinuing operations (net losses
expressed with "-")
V. Net after-tax amount of other comprehensive income -784,908.08 -34,864.10
(I) Other comprehensive incomes that cannot be reclassified
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into profits or losses
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be transferred
to profits or losses under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the Company’s credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
-784,908.08 -34,864.10
into profits or losses
1. Other comprehensive incomes that can be transferred to
-784,908.08 -34,864.10
profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4. Other creditors’ investment credit impairment
provisions
5. Cash flow hedging reserve
6. Differences arising from foreign currency conversion
under financial statements
7. Others
VI. Total comprehensive income 3,159,562,067.97 3,476,943,384.48
VII. Income per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated cash flow statement
Unit: CNY
Item 2022 Year 2021
I. Cash flows from operating activities:
Cash received from sales of goods and provision of services 41,009,913,172.02 85,857,904,781.05
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
Net cash received from reinsurance business
Net increase in deposits and investments from policyholders
Cash received from interests, handling charges and
commissions
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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 1,413,758,222.98
Other cash received relating to operating activities 2,354,350,299.80 1,188,254,227.05
Sub-total of cash inflows from operating activities 44,778,021,694.80 87,046,159,008.10
Cash paid for goods and services 42,672,008,807.22 61,612,707,113.11
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 4,767,225,368.39 5,352,531,478.55
Taxes paid 979,329,590.98 2,729,240,802.70
Other cash paid relating to operating activities 1,494,701,897.56 2,148,556,334.58
Sub-total of cash outflows from operating activities 49,913,265,664.15 71,843,035,728.94
Net cash flows from operating activities -5,135,243,969.35 15,203,123,279.16
II. Cash Flows from Investing Activities:
Cash received from the return of investment
Cash received from acquirement of investment income 461,970,529.25 538,724,591.29
Net cash received from disposal of fixed assets, intangible
455,276,221.08 5,792,273.42
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
business entities
Cash received from other investing activities 798,551,894.65 4,593,823,672.39
Sub-total of cash inflows from investing activities 1,715,798,644.98 5,138,340,537.10
Cash paid to acquire fixed assets, intangible assets and other
2,828,776,203.30 2,491,852,081.71
long-term assets
Cash paid to acquire investments 516,780,000.00 44,000,000.00
Net increase in impawn loans
Net cash paid to acquire subsidiaries and other business units
Other cash paid relating to investment activities
Sub-total of cash outflows from investment activities 3,345,556,203.30 2,535,852,081.71
Net cash flows from investment activities -1,629,757,558.32 2,602,488,455.39
III. Cash flows from financing activities:
Cash received from absorbing investment 332,790,748.16
Including: Cash received by subsidiaries absorbing minority
shareholders' investments
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Cash received from borrowings
Cash received relating to other financing activities
Sub-total of cash inflows from financing activities 332,790,748.16
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits or interest
3,025,174,498.45 2,325,326,934.50
repayment
Including: dividends and profits paid to minority shareholders
by subsidiaries
Other cash paid relating to financing activities 55,183,852.56 55,542,434.20
Sub-total of cash outflows from financing activities 3,080,358,351.01 2,380,869,368.70
Net cash flows from financing activities -3,080,358,351.01 -2,048,078,620.54
IV. Effects from the change of exchange rate on cash and cash
352,712.97 -1,536,440.94
equivalents
V. Net increase in cash and cash equivalents -9,845,007,165.71 15,755,996,673.07
Add: opening balance of cash and cash equivalents 30,542,676,891.89 14,786,680,218.82
VI. Ending balance of cash and cash equivalents 20,697,669,726.18 30,542,676,891.89
6. Cash flow statement of the parent company
Unit: CNY
Item 2022 Year 2021
I. Cash flows from operating activities:
Cash received from sales of goods and provision of services
Tax refunds received 735,000.75
Other cash received relating to operating activities 3,050,893,952.65 13,223,474.72
Sub-total of cash inflows from operating activities 3,051,628,953.40 13,223,474.72
Cash paid for goods and services
Cash paid to and for employees 396,000.00 519,000.00
Taxes paid 96,728.40 8,939,110.30
Other cash paid relating to operating activities 3,276,840,147.92 1,259,995,405.34
Sub-total of cash outflows from operating activities 3,277,332,876.32 1,269,453,515.64
Net cash flows from operating activities -225,703,922.92 -1,256,230,040.92
II. Cash Flows from Investing Activities:
Cash received from the return of investment
Cash received from acquirement of investment income 3,246,753,477.04 3,253,736,791.37
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
business entities
Cash received from other investing activities 250,875.82 1,553,654.55
Sub-total of cash inflows from investing activities 3,247,004,352.86 3,255,290,445.92
Cash paid to acquire fixed assets, intangible assets and other
long-term assets
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Cash paid to acquire investments
Net cash paid to acquire subsidiaries and other business units
Other cash paid relating to investment activities
Sub-total of cash outflows from investment activities
Net cash flows from investment activities 3,247,004,352.86 3,255,290,445.92
III. Cash flows from financing activities:
Cash received from absorbing investment 332,790,748.16
Cash received from borrowings
Cash received relating to other financing activities
Sub-total of cash inflows from financing activities 332,790,748.16
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits or interest
3,025,174,498.45 2,325,326,934.50
repayment
Other cash paid relating to financing activities
Sub-total of cash outflows from financing activities 3,025,174,498.45 2,325,326,934.50
Net cash flows from financing activities -3,025,174,498.45 -1,992,536,186.34
IV. Effects from the change of exchange rate on cash and cash
equivalents
V. Net increase in cash and cash equivalents -3,874,068.51 6,524,218.66
Add: opening balance of cash and cash equivalents 8,109,077.01 1,584,858.35
VI. Ending balance of cash and cash equivalents 4,235,008.50 8,109,077.01
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7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: CNY
2022
Owners' equity attributable to the parent company
Item Other equity instruments Minority Total owners'
Other
Capital Less: treasury Special Surplus General risk Undistributed equity equity
Share capital Preferred Perpetual comprehensiv Others Subtotal
Others reserves shares reserves reserves provision profits
Shares bonds e incomes
I. Ending
4,654,114,61 10,439,365,09 310,460,486.3 - 315,398,148.7 2,742,214 8,434,403,352 26,242,240,723 26,242,240,723.2
balance of the
3 3.18 8 32,794,902.20 5 ,904.83 .08 .26 6
previous year
Add: changes in
accounting
policies
Correction of
errors in the
previous period
Business
combination
under common
control
Others
II. Opening
4,654,114,61 10,439,365,09 310,460,486.3 - 315,398,148.7 2,742,214 8,434,403,352 26,242,240,723 26,242,240,723.2
balance of the
3 3.18 8 32,794,902.20 5 ,904.83 .08 .26 6
current year
III.
Increase/decreas
e in amount of - -
316,034,6
the current -2,148,958.00 11,723,143.56 -42,623,302.27 27,395,781.39 55,022,143.11 2,973,463,750 2,522,813,640. -2,522,813,640.78
97.61
period (decrease .72 78
expressed with "-
")
(I) Total 27,395,781.39 367,745,445.3 395,141,226.73 395,141,226.73
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comprehensive 4
income
(II) Invested and
decreased capital -2,148,958.00 11,723,143.56 -42,623,302.27 52,197,487.83 52,197,487.83
of owners
1. Ordinary
shares invested -2,148,958.00 -11,582,883.62 -13,731,841.62 -13,731,841.62
by owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amounts of
share-based
payments 23,184,433.06 23,184,433.06 23,184,433.06
recorded in
owner's equity
4. Others 121,594.12 -42,623,302.27 42,744,896.39 42,744,896.39
- -
(III) Profit 316,034,6
3,341,209,196 3,025,174,498. -3,025,174,498.45
distribution 97.61
.06 45
1. Appropriation -
316,034,6
to surplus 316,034,697.6
97.61
reserves 1
2. General risk - -
provision 3,025,174,498 3,025,174,498. -3,025,174,498.45
withdrawn .45 45
3. Distribution to
owners (or
shareholders)
4. Others
(IV) Internal
carryover of
owners' equity
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1. Transfer from
capital reserve to
paid-in capital
(or share capital)
2. Transfer from
surplus reserves
to paid-in capital
(or share capital)
3. Recovery of
losses by surplus
reserves
4. Retained
earnings carried
forward from
changes in
defined benefit
plans
5. Retained
earnings carried
forward from
other
comprehensive
income
6. Others
(V) Special
55,022,143.11 55,022,143.11 55,022,143.11
reserves
1. Appropriation
in the current 93,946,199.30 93,946,199.30 93,946,199.30
period
2. Use in the
-38,924,056.19 -38,924,056.19 -38,924,056.19
current period
(VI) Others
IV. Ending
4,651,965,65 10,451,088,23 267,837,184.1 370,420,291.8 3,058,249 5,460,939,601 23,719,427,082 23,719,427,082.4
balance of the -5,399,120.81
5 6.74 1 6 ,602.44 .36 .48 8
current period
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Amount of the Previous Period
Unit: CNY
Year 2021
Owners' equity attributable to the parent company
Item Other equity instruments Minority Total owners'
Other
Share Less: treasury Special General risk Undistributed equity equity
Preferred Perpetual Capital reserves comprehensive Surplus reserves Others Subtotal
capital Others shares reserves provision profits
Shares bonds incomes
I. Ending
4,609,666, 10,098,280,767.3 253,571,466.4 2,394,517,079.9 7,207,573,351 24,560,505, 24,560,505,430.
balance of the -3,103,446.44
212 4 8 7 .05 430.40 40
previous year
Add: changes in
accounting
policies
Correction of
errors in the
previous period
Business
combination
under common
control
Others
II. Opening
4,609,666, 10,098,280,767.3 253,571,466.4 2,394,517,079.9 7,207,573,351 24,560,505, 24,560,505,430.
balance of the -3,103,446.44
212 4 8 7 .05 430.40 40
current year
III.
Increase/decreas
e in amount of
44,448,401 310,460,486.3 1,226,830,001 1,681,735,2 1,681,735,292.8
the current 341,084,325.84 -29,691,455.76 61,826,682.27 347,697,824.86
.00 8 .03 92.86 6
period (decrease
expressed with "-
")
(I) Total
3,899,854,760 3,870,163,3 3,870,163,304.6
comprehensive -29,691,455.76
.39 04.63 3
income
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(II) Invested and
44,448,401 310,460,486.3 75,072,240.
decreased capital 341,084,325.84 75,072,240.46
.00 8 46
of owners
1. Ordinary
shares invested
by owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amounts of
share-based
44,448,401 330,954,314
payments 286,505,913.88 330,954,314.88
.00 .88
recorded in
owner's equity
-
310,460,486.3
4. Others 54,578,411.96 255,882,074 -255,882,074.42
8
.42
- - -
(III) Profit
347,697,824.86 2,673,024,759 2,325,326,9 2,325,326,934.5
distribution
.36 34.50 0
1. Appropriation -
to surplus 347,697,824.86 347,697,824.8
reserves 6
2. General risk
provision
withdrawn
3. Distribution to - - -
owners (or 2,325,326,934 2,325,326,9 2,325,326,934.5
shareholders) .50 34.50 0
4. Others
(IV) Internal
carryover of
owners' equity
1. Transfer from
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capital reserve to
paid-in capital
(or share capital)
2. Transfer from
surplus reserves
to paid-in capital
(or share capital)
3. Recovery of
losses by surplus
reserves
4. Retained
earnings carried
forward from
changes in
defined benefit
plans
5. Retained
earnings carried
forward from
other
comprehensive
income
6. Others
(V) Special 61,826,682.
61,826,682.27 61,826,682.27
reserves 27
1. Appropriation
119,861,553.9 119,861,553
in the current 119,861,553.93
3 .93
period
-
2. Use in the
-58,034,871.66 58,034,871. -58,034,871.66
current period
66
(VI) Others
IV. Ending
4,654,114, 10,439,365,093.1 310,460,486.3 315,398,148.7 2,742,214,904.8 8,434,403,352 26,242,240, 26,242,240,723.
balance of the -32,794,902.20
613 8 8 5 3 .08 723.26 26
current period
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8. Statement of changes in owners' equity of the parent company
Amount in the current period
Unit: CNY
2022
Other equity instruments Other
Item Capital Less: treasury
Share capital Preferred Perpetual comprehensive Special reserves Surplus reserves Undistributed profits Others Total owners' equity
Others reserves shares
Shares bonds incomes
I. Ending
12,267,337,66
balance of the 4,654,114,613 310,460,486.38 304,113.31 1,511,497,143.93 6,974,643,184.91 25,097,436,233.21
4.44
previous year
Add: changes in
accounting
policies
Correction of
errors in the
previous period
Others
II. Opening
12,267,337,66
balance of the 4,654,114,613 310,460,486.38 304,113.31 1,511,497,143.93 6,974,643,184.91 25,097,436,233.21
4.44
current year
III.
Increase/decreas
e in amount of
the current -2,148,958.00 11,601,549.44 -42,623,302.27 -784,908.08 316,034,697.61 -180,862,220.01 186,463,463.23
period (decrease
expressed with
"-")
(I) Total
comprehensive -784,908.08 3,160,346,976.05 3,159,562,067.97
income
(II) Invested and
decreased -2,148,958.00 11,601,549.44 -42,623,302.27 52,075,893.71
capital of
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owners
1. Ordinary
-
shares invested -2,148,958.00 -13,731,841.62
11,582,883.62
by owners
2. Capital
contributed by
holders of other 23,184,433.06 -28,891,460.65 52,075,893.71
equity
instruments
3. Amounts of
share-based
payments
recorded in
owner's equity
4. Others
(III) Profit
316,034,697.61 -3,341,209,196.06 -3,025,174,498.45
distribution
1. Appropriation
to surplus 316,034,697.61 -316,034,697.61
reserves
2. Distribution
to owners (or -3,025,174,498.45 -3,025,174,498.45
shareholders)
3. Others
(IV) Internal
carryover of
owners' equity
1. Transfer from
capital reserve
to paid-in capital
(or share capital)
2. Transfer from
surplus reserves
to paid-in capital
(or share capital)
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3. Recovery of
losses by surplus
reserves
4. Retained
earnings carried
forward from
changes in
defined benefit
plans
5. Retained
earnings carried
forward from
other
comprehensive
income
6. Others
(V) Special
reserves
1. Appropriation
in the current
period
2. Use in the
current period
(VI) Others
IV. Ending
12,278,939,21
balance of the 4,651,965,655 267,837,184.11 -480,794.77 1,827,531,841.54 6,793,780,964.90 25,283,899,696.44
3.88
current period
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Amount of the Previous Period
Unit: CNY
Year 2021
Other equity instruments Less: Other
Item Share Special
Preferred Perpetual Capital reserves treasury comprehensive Surplus reserves Undistributed profits Others Total owners' equity
capital Others reserves
Shares bonds shares incomes
I. Ending balance of the 4,609,666,2
11,926,123,599.85 338,977.41 1,163,799,319.07 6,170,689,695.69 23,870,617,804.02
previous year 12
Add: changes in
accounting policies
Correction of errors in
the previous period
Others
II. Opening balance of 4,609,666,2
11,926,123,599.85 338,977.41 1,163,799,319.07 6,170,689,695.69 23,870,617,804.02
the current year 12
III. Increase/decrease in
amount of the current 44,448,401. 310,460,486.
341,214,064.59 -34,864.10 347,697,824.86 803,953,489.22 1,226,818,429.19
period (decrease 00 38
expressed with "-")
(I) Total comprehensive
-34,864.10 3,476,978,248.58 3,476,943,384.48
income
(II) Invested and
44,448,401. 310,460,486.
decreased capital of 341,214,064.59 75,201,979.21
00 38
owners
1. Ordinary shares
invested by owners
2. Capital contributed by
holders of other equity
instruments
3. Amounts of share-
44,448,401.
based payments recorded 286,505,913.88 330,954,314.88
00
in owner's equity
4. Others 54,708,150.71 310,460,486. -255,752,335.67
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38
(III) Profit distribution 347,697,824.86 -2,673,024,759.36 -2,325,326,934.50
1. Appropriation to
347,697,824.86 -347,697,824.86
surplus reserves
2. Distribution to owners
-2,325,326,934.50 -2,325,326,934.50
(or shareholders)
3. Others
(IV) Internal carryover
of owners' equity
1. Transfer from capital
reserve to paid-in capital
(or share capital)
2. Transfer from surplus
reserves to paid-in
capital (or share capital)
3. Recovery of losses by
surplus reserves
4. Retained earnings
carried forward from
changes in defined
benefit plans
5. Retained earnings
carried forward from
other comprehensive
income
6. Others
(V) Special reserves
1. Appropriation in the
current period
2. Use in the current
period
(VI) Others
IV. Ending balance of the 4,654,114,6 310,460,486.
12,267,337,664.44 304,113.31 1,511,497,143.93 6,974,643,184.91 25,097,436,233.21
current period 13 38
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III. Company Profile
1. 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 exclusively established by China FAW Group Corporation. On June 18,
1997, FAW Car was approved by the China Securities Regulatory Commission to issue shares publicly and
listed on the Shenzhen Stock Exchange for circulation.
On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into 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 except the equity and some reserved assets of First Automobile Finance Co., Ltd. and
Sanguard Automobile Insurance Co., Ltd. to FAW Bestune, and then replaced 100% equity of FAW Bestune
Car Co., Ltd. with the equivalent part of 100% equity of FAW Jiefang Automotive Co., Ltd. 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.
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In May 2020, the name of FAW Car was changed to "FAW JIEFANG GROUP CO.,LTD." and the stock
abbreviation was changed to "FAW Jiefang".
On January 11, 2021, the Company held the first 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 title of senior director and above were granted
to subscribe for 40,987,657 new shares of the Company at an issue price of CNY 7.54 per share, and the
registered capital of the Company was changed to CNY 4,650,653,869.00. This change was verified by the
Capital Verification Report (ZTYZ (2021) No. 110C000033) issued by Grant Thornton 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.
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On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and the 23rd meeting of
the 9th Board of Supervisors, and at the meetings, the Proposal on Repurchase and Cancellation of Partial
Restricted Shares in the Phase I Restricted Share Incentive Plan were deliberated and adopted. It was agreed to
repurchase 789,711 shares from 6 employees who are no longer qualified as incentive objects at a price of CNY
6.39/share, and the registered capital of the Company was changed to CNY 4,653,324,902.00. This change was
verified according to the Capital Verification Report (XYZH/2022CCAA2B0016) issued by ShineWing
Accounting Firm (special general partnership). On November 14, 2022, the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directors and the 26th meeting
of the 9th Board of Supervisors to deliberate and adopt the Proposal on Repurchase and Cancellation of Partial
Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 1,359,247 shares
from 11 employees who are no longer qualified as incentive objects at a price of CNY 6.39 per share. The
registered capital of the Company was changed to CNY 4,651,965,655.00. This change was verified according
to the Capital Verification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special
general partnership). On January 17, 2023, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.
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 five wholly-owned subsidiaries, including FAW Jiefang (Qingdao) Automotive Co., Ltd., Wuxi
Dahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd., FAW Jiefang Austria R&D Co., Ltd., and
FAW Jiefang New Energy Automotive Sales Co., Ltd. It also has 9 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., SmartLink and Foshan Diyiyuansu New Energy Technology Co.,
LTD.
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,
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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 March 31, 2023.
2. Scope of consolidated financial statements
In 2022, the Company has 1 secondary subsidiary and 5 tertiary subsidiaries included in the scope of
consolidation. For details, please refer to VIII "Changes in Consolidation Scope" and IX "Equity in Other
Entities" of 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
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.
2. Going concern
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.
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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" 22, 25 and 33 in Section X - Financial Report.
1.Declaration on Compliance with the Accounting Standard for Business Enterprises
The financial statements prepared by the Company met the requirements of ASBE and truly and fully reflected
the consolidated and company’s financial position as of December 31, 2022 of the Company and its information
such as consolidated and company’s financial performance and consolidated and company’s cash flow for the
year then ended.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.
3. Business cycle
The business cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The overseas subsidiaries of
the Company determine EUR as the recording currency according to the currency in the main economic
environment in which they operate. The Company uses CNY to prepare the financial statements.
5.Accounting Treatment Method for Business Combination under Common Control and Different
Control
(1) Business combinations involving enterprises under common control
As to the business combination under common control, the assets and liabilities of the combined party obtained
by the combining party are calculated in the book value in the consolidated financial statements of the ultimate
controller by the combined party on the combination date. The capital reserve (stock premium) is adjusted
based on the difference between the book value of the combination consideration and the book value of the net
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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. 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 before the acquisition of the combined party’s control by the combining party and the
profit or loss, other comprehensive incomes and changes in other owners’ equities that have been recognized
during the period from the date of acquisition of the original equity, or the date of common control of the
combining party and the combined entity (which is later) to the combination date shall offset against the
retained opening earnings or current profit or loss respectively during the period of comparative statement.
(2) Business combinations not involving enterprises under common control
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 of the acquiree obtained are recognized as per the
fair value on the acquisition date.
Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree,
the difference shall be recognized as goodwill and subsequently measured by deducting the accumulated
depreciation provision by cost; Where the combination cost is less than the fair value of identifiable net assets
obtained from the acquiree, the difference shall be included in current profits and losses after review.
Business combination not under common control realized step-by-step through multiple transactions
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In the separate financial statement, 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 shall be recognized as the initial
investment cost for this investment. For other comprehensive incomes from original equity investment
recognized by the equity method before the purchase date, they are not disposed. This investment is disposed on
the same basis as the investee directly disposing related assets and liabilities. The owners’ equity recognized
due to changes in other owners’ equities of the investee other than net profit or loss, other comprehensive
incomes and profit distribution, are transferred into the current profit or loss when this investment is disposed. 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 shall be remeasured at fair value of the
equity on the acquisition date. The difference between the fair value and its book value shall be included in
investment income for the current period. If the acquiree's equity held before the acquisition date involves other
comprehensive income, changes in other owner's equities shall be transformed into the current profit on the
acquisition date, except other comprehensive income generated due to remeasuring the change in net liabilities
or new assets of defined benefit plan (DBP) by the investee.
(3) Disposal of transaction expenses in business combination
The overhead for the business combination of the combining party, including the expenses for audit, legal
services, assessment, and other administrative expenses, shall be recorded in profit or loss for the current period
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
The scope of consolidated financial statements is determined on the basis of control. Control refers to the power
of the Company over the investee, with which the Company enjoys variable returns through participating in
related activities of the investee and is able to influence its amount of return with the power over the investee.
Subsidiaries refer to entities controlled by the Company (including enterprises, separable parts of investees,
structured entities, etc.)
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(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 with other relevant data. The major accounting policies and accounting
periods adopted by the subsidiaries are defined as the same as that of the Company during preparing the
consolidated financial statements. The significant transactions and balances between inter-companies should be
eliminated.
Where a subsidiary or business has been acquired through a business combination involving enterprises under
common control in the reporting period, the subsidiary or business is deemed to be included in the consolidated
financial statements from the date they are controlled by the ultimate controlling party. Their operating results
and cash flows are respectively included in the consolidated income statement and consolidated cash flow
statement from the date they are controlled by the ultimate controlling party.
For the subsidiaries and businesses increased in the reporting period due to business 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 shareholders’ equity of subsidiaries not belonging to the Company shall be listed separately
under the item “Shareholders’ Equity” in consolidated balance sheet as minority shareholders’ equity. The
portion of net profit or loss of subsidiaries in current period belonging to minority shareholders’ equity shall be
listed separately under the item “Minority Shareholders’ Profit or Loss” in the consolidated income statement. If
the loss of a subsidiary borne by minority shareholders exceeds the amount of their shares of owners' equity in
the subsidiary at the beginning, the balance shall offset 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.
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(4) Disposal with loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity investment or other
reason, the remaining equity shall be recalculated at fair value on the day when the control power is lost. The
balance from the sum of consideration obtained from the disposal of equity and the fair value of the remaining
equity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculated
continuously starting from the purchase date as per the original shareholding ratio shall be included in current
investment income at the loss of control.
Other comprehensive income in connection with equity investment of the original subsidiaries 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.
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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.
9. Foreign currency transactions and conversion of foreign currency statements
(1) Foreign currency transactions
Foreign currency transactions of the Company are converted into the amount in recording currency at the
exchange rate determined by systematic and reasonable methods.
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheet
date is included in current profits and losses. Foreign currency non-monetary items measured at historical cost
are still converted at the spot exchange rate on the transaction date. Foreign currency non-monetary items
measured at fair value are converted at the spot exchange rate on the date when the fair value is determined. The
difference between the converted recording currency amount and the original recording currency amount is
included in current profits and losses or other comprehensive income according to the nature of the non-
monetary items.
(2) Conversion of foreign currency statements
At the balance sheet date, when translating the foreign currency financial statements of overseas subsidiaries,
the assets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance
sheet date. Items of the shareholders’ equity, except for “undistributed profits”, are translated at the spot
exchange rate at the dates on which such items arose.
The income and expense items in the profit statement are converted at the exchange rate determined by
systematic and reasonable methods.
All items in the cash flow statement are converted at the exchange rate determined by systematic and reasonable
methods. As adjustment item for influence amount of cash, exchange rate movement should be independently
presented as "Influence of exchange rate movement to cash and cash equivalent" in cash flow statement.
Differences arising from the translation of financial statements are separately presented as “other
comprehensive income” in the shareholders’ equity of the balance sheet.
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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 a party, and form financial liabilities or
equity instruments of other parties.
(1) Recognition and derecognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of the
financial instrument.
If one of the following conditions is met, the financial assets are terminated:
① The right of the contract to receive the cash flows of financial assets terminates;
② The financial asset has been transferred, and is in accordance with the following conditions for
derecognition.
If the obligations of financial liability have been discharged in total or in part, derecognize all or part of it. The
Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilities with new
financial liabilities; the existing financial liabilities are derecognized and the new financial liabilities are
recognized when the contractual terms of the new financial liabilities and those of the existing financial
liabilities are different in essence.
Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on the
transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode of
financial assets management and the contractual cash flow characteristics of financial assets at the time of initial
recognition: financial assets measured at amortized cost, financial assets measured at fair value 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
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The Company classifies the financial assets that meet the following conditions but are not designated to be
measured at fair value and with the changes included in current profits or losses as the financial assets measured
at amortized cost:
The Company manages the financial assets in order to collect contractual cash flows;
The contract terms of the financial assets stipulate that, the cash flow generated on a specific date is only
the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost using the effective interest method.
Any gains or losses on financial assets at amortized cost which are not part of the hedging relationship are
charged to the current profit or loss at derecognition, amortization using the effective interest method, or
recognition of impairment.
Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
financial assets at fair value through profit or loss as financial assets at fair value through other comprehensive
incomes (debt instruments):
The Company manages the financial assets in order not only to collect contractual cash flows and but also
to sell the financial assets;
The contract terms of the financial assets stipulate that, the cash flow generated on a specific date is only
the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment
losses or gains and exchange gains and losses calculated with the effective interest method are included in the
current profits and losses, and other gains or losses are included in other comprehensive income. At
derecognition, cumulative gains or losses previously charged to other comprehensive income are transferred
from other comprehensive income and charged to the current profit or loss.
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
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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 source of the financial
assets managed by the Company, which may be the collection of contract cash flow, 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.
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 provision of
services that do not include or take into account significant financing components, the Company takes the
consideration amount entitled to receive in expectation as the initially recognized amount.
(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
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liabilities measured at amortized cost. For financial liabilities not classified as at fair value through profit or loss
financial liabilities, the transaction costs are recognized in the initially recognized amount.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those
directly designated at the time of initial recognition as financial liabilities at fair value through profit or loss.
Such financial liabilities are subsequently measured at fair value, all realized and unrealized gains and losses are
recognized in profit or loss for the current period.
Financial liabilities measured at amortized cost
Other financial liabilities shall be measured subsequently by the effective interest method at the amortized cost,
and gains or losses arising from the derecognition or amortization shall be included in the current profit or loss.
Distinction between financial liabilities and equity instruments
A financial liability is recognized if one of the following conditions is satisfied:
① a contractual obligation to deliver cash or another financial asset to another entity;
② a contractual obligation to exchange financial assets or financial liabilities with another entity under
conditions that are potentially unfavorable to the Company;
③ Non-derivative instrument contract that will or may be settled with the company's own equity instruments.
The Company is obliged to deliver its own equity instruments in variable quantities according to 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.
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 enterprise's own equity instrument, the enterprise's own
equity instrument used as a settled instrument need to be considered whether as the substitute of cash or other
financial assets or for the holder of the instrument enjoys the residual interest of assets after the issuer deducted
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all liabilities. If meets the former condition, the financial instrument should be recognized as financial liabilities;
If meets the later condition, the financial instrument is recognized as equity instruments.
(4) Fair value of financial instruments
For the determination methods for fair value of financial assets and liabilities, refer to 39 "Others" in V
"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(5) Impairment of financial assets
The Company carries out impairment accounting treatment and recognizes the loss provision for the following
items based on the expected credit loss:
Financial Assets Measured at Amortized Costs
Receivables and debt investment measured at fair value with changes included in other comprehensive
income;
Contract assets as defined in ASBE 14 - Revenue;
Lease receivables;
Financial guarantee contracts (except those formed by measuring at fair value, with its changes
included in current profits and losses, with the transfer of financial assets failing to meet the conditions
for derecognition or those continue to be involved in the transferred financial assets).
Measurement of Expected Credit Loss
The expected credit loss refers to the weighted average of credit loss 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).
For financial instruments in the first and second stages and with low credit risk, the Company calculates interest
income according to the book balance before deducting provision for impairment and the actual interest rate.
For financial instruments in the third stage, the interest income is calculated according to their book balance
minus the amortized cost after accrual of impairment provision 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
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Notes receivable portfolio 1: bank acceptance bills
Notes receivable portfolio 2: commercial acceptance bills
B. Accounts Receivable
Aging portfolio
C. Contract assets
Aging portfolio
The Company calculates the expected credit loss of the notes receivable and 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 accounts receivable
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
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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 compares the risk of default of financial instruments on the balance sheet date with the risk of
default on the initial recognition date so as to determine the relative change in the default risk of financial
instruments in the expected duration, and evaluate whether the credit risk of financial instruments has increased
significantly since the initial recognition.
When determining whether the credit risk has significantly increased since the initial recognition, the Company
considers the reasonable and well-founded information obtained by it without unnecessary additional cost or
effort, including the forward-looking information. The information to be considered by the Company is as
follows:
The situation that the debtor fails to pay the principal and interest on the due date specified in the
contract;
Serious deterioration of the external or internal credit ratings (if any) of financial instruments that has
occurred or is expected;
Serious deterioration of the debtor's operating results that has occurred or is expected;
Changes occur in the existing or expected technical, market, economic or legal environment and will
have a material adverse effect on the repayment ability of the debtor to the Company.
According to the nature of financial instruments, the Company evaluates whether the credit risk has increased
significantly on the basis of individual financial instruments or portfolios of financial instruments. The
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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. In case of one or more events adversely affecting the expected future cash flow of financial assets,
the financial assets become the credit-impaired financial assets. Evidence of credit impairment of financial
assets includes the following observable information:
The issuer or debtor is caught in a serious financial difficulty;
The debtor breaches the agreement of contract, such as default or overdue payment of interest or
principal;
The Company, for economic or contractual reasons relating to the debtor’s financial difficulty, grants
the debtor concessions that would not have been made in any other circumstances.
There is a great possibility of bankruptcy or other financial restructuring of the debtor;
The financial difficulties of the issuer or debtor result in the disappearance of the active market of such
financial assets.
Presentation of provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the
Company remeasures the expected credit loss on each balance sheet date, 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.
Cancel after verification
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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 Company neither transfers nor retains substantially all the risks and rewards of ownership of financial
assets, then accounting for the following circumstances: if control over the financial assets is surrendered,
derecognize the financial assets and recognize any assets and liabilities arose; if the Company retains the control
of the financial assets, recognize the financial assets to the extent of the continuing involvement in the
transferred financial assets by the Company and recognize any relating liability.
(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.
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12. Accounts receivable
Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of
Section X - Financial Report.
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 determination methods and accounting methods of expected credit losses of other receivables,
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
Net realizable value is the estimated selling price less estimated costs to be incurred upon completion, estimated
selling expenses and related 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.
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If the cost of closing inventory of the Company exceeds its net realizable value at balance sheet date, recognize
provision for decline in value of inventories. 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.
(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.
Incremental cost to obtain the contract refers to the cost (such as sales commissions) that would not have
occurred if the Company had not obtained the contract. If the cost is expected to be recovered, the Company
will recognize it as a contract acquisition cost and an asset. 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
profit or loss when incurred.
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If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for business enterprises such as inventory and does not meet the following conditions at the same time,
the Company will recognize it as an asset of the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only by
the Contract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafter
referred to as "assets related to contract costs") are amortized on the same basis as revenue recognition of goods
or services related to the assets and are included in current profits and losses.
When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for the impairment of the excess and recognize it as the
asset impairment loss:
① Residual consideration expected to be obtained by companies in connection with the transfer of goods or
services related to the asset;
② The cost expected to be incurred for the transfer of the relevant 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
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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 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.
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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".
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
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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 receivables
Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of
Section X - Financial Report.
20. Long-term equity investments
Long-term equity investments include equity investments to subsidiaries, joint ventures and associated
enterprises. The investee which may be subject to significant influence of the Company is an associated
enterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity 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.
For long-term equity investments acquired by other means: For long-term equity investment acquired through
cash payment, the actual purchase price shall be regarded as the initial investment cost. For long-term equity
investment acquired through issuing equity securities, the fair value of the issued equity securities shall be
deemed as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the conditions
for held-for-sale; investments to associated enterprises and joint ventures are accounted for with the equity
method.
For the long-term equity investment calculated with cost method, and except the declared but not released cash
dividend or profit which is included in actual amount or consideration paid for acquiring investment, the
distributed cash dividend or profit declared by the investee shall be recognized as investment income and
included in current profits and losses.
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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.
For accounting with the equity method, the investment income and other comprehensive income shall be
recognized respectively according to the share of the net profits and losses and other comprehensive income
realized by the investee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equity
investment shall be adjusted. The part of due share shall be calculated according to the distributed profit or cash
dividend declared by the investee, and the book value of the long-term equity investment shall be reduced
accordingly. For other changes of owners' equity of the investee except net profit and loss, other comprehensive
income and profit distribution, the book value of long-term equity investment shall be adjusted and included in
capital reserve (other capital reserve). The Company recognizes its share of the investee's net profits or losses
based on the fair values of the investee's individual separately identifiable assets at the time of acquisition, after
making appropriate adjustments thereto in conformity with the accounting policies and accounting periods of
the Company.
The sum of the fair value of the original equity and the new investment cost is taken as the initial investment
cost calculated with the equity method on the date of conversion if it is possible to exert significant influence on
or implement joint control but not constitute control over the investee due to additional investment or other
reasons. The cumulative changes in fair value originally included in other comprehensive income related to the
original equity are transferred to retained earnings when the equity method is adopted if the original equity is
classified as a non-trading equity instrument 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 accounted and recognized with the equity method is subject to the accounting treatment on the same
basis for direct disposal of relevant assets or liabilities of the investee when the equity method is terminated for
use. Other owner’s equity variation related to the original equity investment shall be transferred in current profit
and loss.
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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 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 control right is lost due to the decrease of the Company’s shareholding ratio for additional investment of
other investor hut can exert joint control over or significant influence on the investee, share of the increased net
assets for additional investment and increasing share of the investee enjoyed by the Company shall be
recognized as per new shareholding ratio. The balance between the increased share and the original book value
of long-term equity investment corresponding to the decreased part of the carry-over shareholding ratio shall be
included in current profit or loss. Then the new shareholding ratio shall be adjusted as it is accounted with
equity method upon the acquisition of investment.
The unrealized profit or loss from internal transactions entered into between the Company and its associate or
joint venture is offset according to the shareholding percentage held by the Company and the remaining portion
is recognized as investment income or loss. 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
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that the potential voting rights executable for the current period held by the investor and other parties are
converted into the equity of the investee, including the influence of the warrants, stock options and corporate
bonds which can be converted in the current period issued by the investee.
It is generally considered that the Company has significant influence on the investee when the Company
directly holds more than 20% (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 provision for asset
impairment is described in 39 "Others" in V "Significant Accounting Policies and Accounting Estimates" of
Section X - Financial Report.
21. Investment real estates
Measurement mode of investment property
Measure by cost method
Depreciation or amortization method
Investment real estates refer to the real estates held to earn rent or increase capital, or both. Investment
properties of the Company include the land use rights which have already been rented, the land use rights held
for transfer after appreciation and the buildings which have been rented.
Investment properties of the Company shall be initially measured as per the price upon acquisition and
depreciated or amortized on schedule as per relevant provisions on fixed assets or intangible assets.
For the investment real estate which is subsequently measured with the cost mode, the method of drawing asset
impairment is described in 39 "Others" in V "Significant Accounting Policies and Accounting Estimates" of
Section X - Financial Report.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment real
estate after deducting its book value and relevant taxes shall be included in the current profits and losses.
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22. Fixed assets
(1) Recognition conditions
Fixed assets of the Company mean the tangible assets held for producing commodities, providing 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.
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
Annual
Depreciation
Category Depreciation Period Residuals Rate Depreciation Rate
Method
(%)
Houses and Straight-line
2020 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
The Company uses the straight line method for depreciation. The depreciation of fixed assets starts when they
reach the expected serviceable condition, and stops when they are derecognized or classified as non-current
assets held for sale. Without taking into account of the provision for impairment, the Company determines the
annual depreciation rate of various fixed assets according to the category, estimated service life and estimated
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residual value of fixed assets. Among them, for fixed assets with provision for impairment, the accumulated
amount of provision for impairment shall also be deducted to calculate and determine the depreciation rate.
① For the impairment test methods and impairment provision methods of fixed assets, please refer to 39
"Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
② The Company reviews the service life, expected net residual value and depreciation method of fixed assets
at the end of each year.
If the expected service life is different from the original estimate, the service life of fixed assets shall be
adjusted; If the estimated net salvage value is different from the original estimate, the estimated net salvage
value shall be adjusted.
③ Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, the
recognition of such fixed asset is terminated. The disposal income from selling, transferring, discarding or
damaging of fixed assets shall be deducted by the book value thereof and relevant taxes and then included in
current profits and losses.
23. Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expenditures incurred
for construction projects, capitalized borrowing costs for the construction in progress before it has reached the
working condition for its intended use and other related expenses during the construction period.
The project under construction is transferred to fixed assets when they are ready for their intended use.
For the method of provision for asset impairment of construction in progress, refer to 39 "Others" in V
"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
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,
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which needs to deduct the amount of lease incentive enjoyed (if any); initial direct expenses incurred by the
Company as 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. If the Company, as the lessee, can reasonably
confirm that it obtains the ownership of the leasing assets at the expiration of the lease term, the depreciation
shall be drawn within the remaining service life of the leasing assets. In case of a failure to determine the
ownership of the leased assets reasonably at the end of the lease period, the depreciation shall be drawn within
the lease term or the remaining service life of leasing assets, whichever is shorter.
(3) The impairment test method and drawing method for impairment provision of right-of-use assets
are described in 39 "Others" 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
5-10 years Straight-line method
technology
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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 method of provision for asset impairment of the intangible assets, refer to 39 "Others" in V "Significant
Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(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.
Expenditures at the development stage can be capitalized only when the following conditions are met
simultaneously, namely, it is technically feasible to complete the intangible assets so that they can be used or
sold; Have the intention to complete the intangible assets and use or sell them; The ways for intangible assets to
generate economic benefits include being able to prove that there is a market for the products produced by using
the intangible assets or the intangible assets themselves. If the intangible assets will be used internally, their
usefulness can be proved; There are sufficient technical, financial and other resources to support the
development of the intangible assets and the ability to use or sell the intangible assets; The expenditure
attributable to the development stage of the intangible assets can be measured reliably. The development
expenditures failing to meet above conditions are included in current profits and losses when occurred.
After the R&D projects of the Company meet the above conditions, pass the technical feasibility and economic
feasibility study, and form the project establishment, they shall enter the development stage.
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, associated enterprises and joint ventures,
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:
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The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business 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 recoverable amount is
estimated of the individual asset. If it is not possible to estimate the recoverable amount of the individual asset,
the Company determines the recoverable amount of the asset group to which the asset belongs. 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.
When the asset or asset group’s recoverable amount is lower than its carrying amount, the Company reduces its
carrying amount to its recoverable amount, the reduced amount is recorded in profit or loss for the current
period and the provision for impairment of assets is recognized.
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. Asset group or portfolio of asset
group is asset group or portfolio of asset group which can be benefit from synergies of a business combination
and is not greater than the reportable segment of 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.
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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
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtain
services provided by employees or to terminate labor relations. Employee compensation includes short-term
compensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the enterprise to employees' spouses, children, dependents, survivors of deceased
employees and other beneficiaries also belong to employee compensation.
According to liquidity, employee compensation is listed in the "employee compensation payable" and "long-
term employee compensation payable" items of the balance sheet.
Short-term compensation
In the accounting period in which employees have rendered services, the Company recognized the employee
wages, bonus, social security contributions according to regulations such as medical insurance, work injury
insurance and maternity insurance as well as housing funds as liability, and charged to profit or loss for the
current period or cost of relevant assets.
(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.
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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
Company recognizes the following components of employee benefits cost arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses. Among them,
the current service cost refers to the increase in the present value of the defined benefit plan obligations due to
the provision of services by employees in the current period; the past service cost refers to the increase or
decrease in the present value of the defined benefit plan obligations related to the employee services in the
previous period due to the modification of the defined benefit plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan assets,
interest expense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.
The Company includes the above items ① and ② in the current profits and losses, unless other accounting
standards require or allow the cost of employee benefits to be included in the cost of assets; item ③ is included
in other comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods,
and the part originally included in other comprehensive income within the equity scope is carried forward to
undistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, 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
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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
Refer to 24 "Right-of-use Assets" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.
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.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date, the carrying amount of the
estimated liabilities is reviewed and adjusted by the Company 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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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 treatment related to implementation, modification and termination of share-based
payment plan
Share-based payments settled by equity are measured at the fair value of the equity instruments granted to
employees. Where the equity instrument can be vested immediately upon being granted, the share-based
payment is included in relevant costs or expenses at the fair value of equity instrument on the granting date and
the capital surplus shall be increased accordingly. Where the equity instrument cannot be exercised until the
vesting period comes to an end or until the specified performance conditions are met, at each balance sheet date
within the vesting period, the services obtained in the current period are, based on the best estimate of the
number of exercisable equity instruments, included in relevant costs or expenses and capital reserve at the fair
value specified on the granting date of equity instruments. 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.
Cash-settled share-based payment shall be measured in accordance with the fair value of liabilities calculated,
confirmed and undertaken by the Company based on the shares or other equity instruments. Where the equity
instrument can be vested immediately upon being granted, the payment shall be included in the relevant costs or
expenses at the fair value of the liabilities assumed by the Company on the grant date, and the liabilities shall be
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increased accordingly. Where the share-based payment settled by cash cannot be vested until the vesting period
comes to an end or until the specified performance conditions are met, on each balance sheet date within the
vesting period, the services acquired in current period shall, based on the optimal estimation of the vesting right,
be included into costs or expenses and corresponding liabilities at the fair value of the liabilities assumed by the
Company. On each balance sheet date and the settlement date prior to the settlement of the relevant liabilities,
the fair value of the liabilities shall be re-measured, with its changes included into the current period profit or
loss.
When the Company modifies the share-based payment plan, the increase in services obtained shall be
recognized based on the increase (if any) in the fair value of equity instruments; if the quantity of granted equity
instruments is increased, the fair value of the increased equity instruments shall be recognized accordingly as
the increase in the services obtained. The increase in fair values of equity instruments refers to the difference
between equity instrument’s fair values before and after amendment. If the total fair value of share-based
payment is reduced in the amendment or the terms and conditions of the share-based payment plan are modified
in other ways unfavorable to employees, the accounting treatment on acquired services shall continue as if the
change has never occurred, unless the Company has canceled part or all of the granted equity instruments.
If, during the vesting period, the granted instruments are canceled (except for those canceled because of failure
to meet the non-market conditions of the vesting conditions), the Company shall accelerate the exercise of the
granted equity instruments, and immediately include the amount to be recognized in the remaining vesting
period in the current profit and loss, and recognize the capital reserve in the meantime. In the event that the
employees or other parties can choose to meet the non-vesting conditions but fail to meet such conditions
during the vesting period, the Company shall treat it as the cancellation of granted equity instruments.
33. Income
Accounting policies adopted for income recognition and measurement
(1) General principles
The Company has fulfilled its performance obligations of the contract, means it confirms the revenue when the
customer has obtained the control rights of the relevant commodities or services.
If the contract contains two or more performance obligations, the Company shall, at the beginning date of the
contract, apportion the transaction price to each performance obligation according to the relative proportion of
the individual selling price of the commodities or services promised by each performance obligation, and
measure the revenue according to the transaction price apportioned to each performance obligation.
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In case one of the following conditions is met, the Company will perform the performance obligations within a
period of time. Otherwise, it will perform the performance obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract by
the Company at the same time.
② The customer can control the goods under construction during the Company's performance;
③ The goods generated during the performance of the Company are irreplaceable, and the Company is
entitled to receive payment for the performance accumulated so far throughout the term of the contract.
For the performance obligations performed within a certain period of time, the Company shall recognize the
revenue within that period according to the performance progress. If the performance progress cannot be
reasonably confirmed, and the costs incurred by the Company can be expected to be compensated, the incomes
shall be recognized according to the amount of costs incurred until the performance progress can be reasonably
confirmed.
For performance obligations performed at a certain time point, the Company shall confirm the revenue at the
time point when the customer gains control rights of the relevant commodities or services. In determining
whether a customer has obtained the control rights of the goods or services, the Company shall take the
following indications into consideration:
① The Company enjoys the right to the current collection, i.e., the customer has the obligation to pay
immediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., The customer owns
the legal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., The customer has possessed the
goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to the
customer, i.e., The customer has obtained the major risks and remuneration on the ownership of the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.
The right of the Company to receive the consideration due to the transfer of goods or services to the customer
(and the right depends on other factors other than the passage of time) is taken as a contractual asset, and the
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contractual assets are impaired based on the expected credit losses (please refer to 10 "Financial Instruments" in
V "Significant Accounting Policies and Accounting Estimates" of Section X "Financial Report"). The
Company’s unconditional (subject only to the passage of time) right to collect consideration from customers
shall be presented as receivables. The Company's obligations to transfer goods or services to the customer due
to customer consideration received or receivable shall be defined as contract liabilities.
Contract assets and contract liabilities under the same contract shall be presented in net amount. If the net
amount is the debit balance, it shall be presented in the item of "contract assets" or "other non-current assets"
according to its liquidity; if the net amount is the credit balance, it shall be presented in the item of "contract
liabilities" or "other non-current liabilities" according to its liquidity.
(2) Specific 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
The government subsidies shall be recognized when all the attached conditions can be satisfied and the
government subsidies can be received.
The government subsidies considered monetary assets shall be measured at the amount received or receivable.
The government subsidies considered non-monetary assets are measured based on the fair value, or the nominal
amount of CNY 1 if the fair value cannot be acquired reliably.
A government grant related to an asset is a grant obtained by the Company for purchase, construction or
formation of long-term assets. The grant not related to an asset is classified as government grant related to
income.
For the government subsidies with the grant objects not expressly stipulated in the government documents, if
they can be used to form long-term assets, the government subsidies corresponding to the assets value are
deemed as the government subsidies related to assets while the rest is deemed as the ones related to revenue;
For the government subsidies that are difficult to differentiate, the government subsidies as a whole are deemed
as revenue-related government subsidies.
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Asset-related government subsidies shall be recognized as deferred incomes, and it shall be distributed with a
reasonable and systematic method within the service life of related assets and included in profits and losses. For
the income-related government subsidies, they shall be included in the current profit and loss if used to
compensate for the incurred related costs or losses; if used to compensate for the related costs or losses during
future periods, they shall be included in the deferred income, and included in the current profit and loss during
the period when the related costs or losses are recognized. Government subsidies measured at the nominal
amount shall be directly included in the current profit and loss. The Company adopts same treatment for those
transactions of similar government grants.
The government subsidies related to daily activities shall be included in other incomes based on the substance
of business transactions. Government subsidies irrelevant to daily activities are included in non-business income.
If it is necessary to refund the government subsidies 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. The income tax shall be included in the
current profit and loss as income tax expenses, except that the deferred income taxes related to the adjustment
of goodwill due to business combination or the transactions or matters directly included in the owner's equity
are included in the owner's equity.
Temporary differences arising from the difference between the book value of an asset or liability and its tax
base are recognized as deferred tax using the balance sheet liability method.
Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the taxable
temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction
which is neither a business combination nor affects the accounting profit or taxable income at the time of the
transaction;
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint ventures and
associated enterprises, the time of reversal of the temporary difference can be controlled and the temporary
difference is unlikely to be reversed in the foreseeable future.
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The Company recognizes a deferred tax asset for the carry forward of deductible temporary differences,
deductible losses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits
will be available against which the deductible temporary differences, deductible losses and tax credits can be
utilized, except for those incurred in the following transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable income at the
time of the transaction;
(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.
At the balance sheet date, the Company reviews the book value of a deferred tax asset. If it is likely that
sufficient taxable profits will not be available in the future periods to deduct the benefit of the deferred tax
assets, the book value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed
where it becomes probable that sufficient taxable income will be available.
36. Lease
(1) Accounting method of operating leases
1) Identification of lease
On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the
customer in the contract is entitled to obtain almost all economic benefits arising from the use of the identified
assets during the use period, and is entitled to dominate the use of the identified assets during the use period. If
one party to the contract abalienates the right to control the use of one or more identified assets within a certain
period of time in exchange for consideration, the Company determines that the contract is a lease or includes a
lease.
2) The Company acting as the lessee
At the commencement of the lease term, the Company recognizes right-of-use assets and lease liabilities for all
leases, except for simplified short-term leases and low-value asset leases.
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For the accounting policies of the right-of-use assets, see 24 "Right-of-use Assets" in V "Significant Accounting
Policies and Accounting Estimates" of Section X "Financial Report".
Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in lease
according to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicit
in lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The lease
payment includes: fixed payment and substantial fixed payment. If there is a lease incentive, the amount related
to the lease incentive shall be deducted; variable lease payments depending on index or ratio; the exercise price
of the purchase option, provided that the lessee reasonably determines that the option will be exercised;
payments for exercising the option to terminate the lease, provided that the lease term reflects that the lessee
will exercise the option to terminate the lease; and the amount expected to be paid according to the guaranteed
residual value provided by the lessee. The interest expenses of the lease liabilities within each lease term shall
be calculated subsequently according to the fixed periodic rate, and included in the current profits and losses.
Variable lease payments not included in the measurement of lease liabilities are included in the current profits
and losses when they actually occur.
Short-term lease
Short-term lease refers to the lease with a lease term of not more than 12 months on the commencement date of
the lease term, except for the lease containing the purchase option.
The Company will include the lease payment for short-term lease into relevant asset costs or current profits and
losses by the straight-line method at each period within the lease term.
For short-term lease, the Company selects the above simplified treatment method for the items meeting the
short-term lease conditions in the following asset types according to the category of leased assets.
Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40,000.
The Company includes the payment of low-value asset lease into relevant asset costs or current profits and
losses with the straight-line method in each period within the lease term.
For low-value asset leases, the Company selects the above simplified treatment method according to the specific
conditions of each lease.
Lease change
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If the lease changes and meets the following conditions at the same time, the Company will take the lease
change as a separate lease for the accounting treatment: ① the lease change expands the lease scope by
increasing the right to use one or more leased assets; and ② the increased consideration is equivalent to the
amount by adjusting the separate price of the expanded lease scope according to the contract.
If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the effective
date of the lease change, reallocate the consideration of the changed contract, redetermine the lease term, and
remeasure the lease liabilities according to the changed lease payment and the present value calculated by the
revised discount rate.
If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will
correspondingly reduce the book value of right-of-use assets, and include relevant profits or losses of partial or
complete termination of leasing in current profits and losses.
If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the book value of
the right-of-use asset accordingly.
3) The Company acting as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to the
ownership of the assets is recognized as a finance lease, and other leases other than finance leases are
recognized as operating leases.
Operating lease
Lease income from operating leases is included in current profits or losses by the Company as per the straight-
line method over the lease term. The occurred initial direct cost related to the operating lease shall be
capitalized, amortized within the lease term according to the same base with the recognition of rental income,
and included in the current profits and losses by stages. The variable lease receipts obtained by the Company
related to operating leases and not charged to the lease receipts shall be charged to the current profit and loss
when actually incurred.
Lease change
In case of any change in an operating lease, the Company carries out accounting treatment as it is a new lease
since the effective date of the change, and the advance receipts and receivables related to the lease before the
change are deemed as the receipts of the new lease.
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If the financial lease changes and meets the following conditions, the Company will take the change as a
separate lease for accounting treatment: ① the change expands the lease scope by increasing the right to use one
or more leased assets; and ② the increased consideration is equivalent to the amount by adjusting the separate
price of the expanded lease scope according to the contract.
If the change of finance lease is not taken as a separate lease for accounting treatment, the Company shall treat
the changed lease under the following circumstances respectively: ① If the change takes effect on the
commencement date of the lease and the lease will be classified as an operating lease, the Company will take it
as a new lease for accounting treatment from the effective date of the lease change, and take the net investment
in the lease before the effective date of the lease change as the book value of the leased asset. ② If the change
takes effect on the commencement date of the lease and the lease will be classified as a finance lease, the
Company shall carry out accounting treatment in accordance with the provisions of the ASBE 22 Recognition
and Measurement of Financial Instruments on modifying or renegotiating the contract.
(2) Accounting method of finance leases
In financial lease, at the commencement of the lease term, the Company takes the net investment in a lease as
the entry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteed
residual value and the present value of the lease receipts not yet received at the commencement of the lease
term discounted at the interest rate implicit in lease. The Company, as the lessor, calculates and recognizes
interest income in each lease term at a fixed periodic rate. The variable lease payment obtained by the Company
as the lessor and not included in the measurement of net lease investment is included in the current profits and
losses when it actually occurs.
Derecognition and impairment of finance lease receivables are accounted for according to the 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) Change in significant accounting policies
① Interpretation No. 15 of Accounting Standards for Business Enterprises
In December 2021, the Ministry of Finance issued the Interpretation No. 15 of Accounting Standards for
Business Enterprises (CK [2021] No. 35) (hereinafter referred to as "Interpretation No. 15").
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According to the Interpretation No. 15, if an enterprise sells the products or by-products produced before the
fixed assets are in serviceable condition as expected or during the R&D process (hereinafter collectively
referred to as trial sales), in accordance with the provisions of Accounting Standards for Business Enterprises
No. 14 - Revenue and Accounting Standards for Business Enterprises No. 1 - Inventory, the incomes and costs
related to the trial sales shall be subjected to accounting treatment respectively, and included in the current
profits and losses, and the net amount of trial sales revenue after offsetting relevant costs shall not be used to
offset the cost of fixed assets or R&D expenditures. Before external sales, relevant products or by-products
produced in the trial run shall be recognized as inventories if they meet the provisions of the Accounting
Standards for Business Enterprises No. 1 - Inventory, and shall be recognized as relevant assets if they meet the
relevant asset recognition conditions in other relevant accounting standards for business enterprises.
Since January 1, 2022, the Company has implemented the provisions of Interpretation No. 15 regarding
"Accounting Treatment for External Sales of Products or By-products Produced by Enterprises before the Fixed
Assets is in Serviceable Condition as Expected or during the R&D Process", and has made retrospective
adjustments.
According to the Interpretation No. 15, the "unavoidable cost of performing contractual obligations" in onerous
contracts shall reflect the minimum net cost of withdrawing from the contract, that is, the lower of the cost of
performing the contract and the compensation or penalty incurred for failure to perform the contract. The
enterprise's cost of performing the contract includes the incremental cost of performing the contract and the
apportioned amount of other costs directly related to the performance of the contract. Among them, the
incremental cost of performing the contract includes direct labor, direct materials, etc.; the apportioned amount
of other costs directly related to the performance of the contract includes the apportioned amount of
depreciation expenses of fixed assets used to perform the contract, etc.
Since January 1, 2022, the Company has implemented the provisions of Interpretation No. 15 regarding
"Judgment on Onerous Contracts", and has made retrospective adjustments to the retained earnings on January
1, 2022, without adjusting the data in the previous comparative financial statements.
The adoption of Interpretation No. 15 did not have a significant impact on the financial situation and operating
results of the Company.
② Interpretation No. 16 of Accounting Standards for Business Enterprises
In November 2022, the Ministry of Finance issued the Interpretation No. 16 of the Accounting Standards for
Business Enterprises (CK [2022] No. 31) (hereinafter referred to as "Interpretation No. 16").
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According to the Interpretation No. 16, for perpetual bond and other financial instruments classified as equity
instruments, enterprises shall recognize the income tax effect related to dividends when recognizing dividends
payable. For transactions or events in which the distributed profits are derived from previous profits or losses,
the income tax effect of the dividends shall be included in the current profits and losses; for transactions or
events in which the distributed profits are derived from previously recognized owners' equity, the income tax
effect of the dividends shall be included in the owners' equity.
If the dividends payable on recognition of financial instruments classified as equity instruments occurred in the
current year, the Company shall make accounting treatment for the income tax effect involved in accordance
with the Interpretation No. 16; and if the dividends payable occurred before January 1, 2022 and the relevant
financial instruments have not been recognized on January 1, 2022, the income tax effect involved shall be
retroactively adjusted.
According to the Interpretation No. 16, if the enterprise amends the terms and conditions of the cash-settled
share-based payment agreement so that it becomes an equity-settled share-based payment, on the amendment
date, the enterprise shall measure the equity-settled share-based payment at the fair value of the granted equity
instrument on that day, include the obtained services in the capital reserve, and derecognize the liabilities
recognized on the amendment date for the cash-settled share-based payment. The difference between the two
shall be included in the current profits and losses. If the vesting period is extended or shortened due to
amendment, the enterprise shall carry out the above accounting treatment according to the modified vesting
period (without considering the relevant accounting treatment provisions that are unfavorable to the
amendment).
The cash-settled share-based payment of the Company in the current year is changed to equity-settled share-
based payment, which is subject to accounting treatment in accordance with the provisions of the Interpretation
No. 16. For such transactions that occurred before January 1, 2022, the retained earnings and other relevant
financial statement items on January 1, 2022 are adjusted, but the information in comparable periods is not
adjusted.
The adoption of Interpretation No. 16 did not have a significant impact on the financial situation and operating
results of the Company.
(2) Change in significant accounting estimates
None
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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
39. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for transfer of a liability by market
participants in the orderly transaction on the measurement date.
The Company measures related assets or liabilities at fair value, assuming that the sale of an asset or the transfer
of liability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the major
market is not provided, the transaction shall be assumed to be performed in the most favorable market for
relevant assets or liabilities. Major markets (or most favorable markets) are the market where the Company can
enter on the measurement date. The Company uses the assumptions used by market participants to maximize
their economic benefits when pricing the asset or liability.
Fair value of financial assets or financial liabilities existing in the active market will be recognized based on
quotations in the active market by the Company. For a financial instrument without an active market, its fair
value is determined through valuation techniques.
When measuring non-financial assets at fair value, it is required to consider the ability of market participants to
use the asset for optimal purpose and produce economic benefits, or to sell the asset to other market participants
that can use such assets for optimal purposes to produce economic benefits.
The Company shall adopt the estimation technique that is applicable in the current conditions and is supported
sufficiently by available data and other information while using the fair value to measure relevant assets or
liabilities. The relevant observable input values shall be used in priority during the application of estimation
technique. Only when relevant observable value cannot be obtained or can be obtained but is not feasible, the
unobservable input value can be used.
For assets and liabilities measured or disclosed at fair value in the financial statements, the level to which the
fair value belongs is determined according to the lowest level input value that is of significance for the whole
fair value measurement: The input value for the first level refers to the unadjusted quotation of the same assets
or liabilities in the active market that can be obtained on the measurement date; the input value for the second
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level refers to the input value that can be directly or indirectly observed for relevant assets or liabilities other
than that for the first level; and the input value for the third level refers to the input value that cannot be
observed for relevant assets or liabilities.
The Company shall reassess the assets and liabilities successively measured at fair value recognized in financial
statements on each balance sheet date to determine the transition among fair value measurement levels.
(2) Contract cost
Contract costs include incremental costs incurred to obtain contracts and contract performance costs.
Incremental cost to obtain the contract refers to the cost (such as sales commissions) that would not have
occurred if the Company had not obtained the contract. If the cost is expected to be recovered, the Company
will recognize it as a contract acquisition cost and an asset. 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
profit or loss when incurred.
If the cost incurred for the performance of the contract does not fall within the scope of other accounting
standards for business enterprises such as inventory and does not meet the following conditions at the same time,
the Company will recognize it as an asset of the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only by
the Contract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafter
referred to as "assets related to contract costs") are amortized on the same basis as revenue recognition of goods
or services related to the assets and are included in current profits and losses. If the amortization period does not
exceed one year, it shall be included in the current profits and losses when it occurs.
When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for the impairment of the excess and recognize it as the
asset impairment loss:
① Residual consideration expected to be obtained by companies in connection with the transfer of goods or
services related to the asset;
② The cost expected to be incurred for the transfer of the relevant goods or services.
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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.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method of
excess regression based on the actual operating income of the previous year according to the provisions of CZ
[2022] No. 136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million, 2.35%
of work safety cost will be withdrawn; for the part of operating income between CNY 10 million and CNY 100
million, 1.25% shall be withdrawn; for the part of the operating income between CNY 100 million and CNY 1
billion, 0.25% will be withdrawn; for the part of the operating income between CNY 1 billion and CNY 5
billion, 0.1% will be withdrawn; for the part of the operating income over CNY 5 billion, 0.05% will be
withdrawn.
For transportation enterprises, the work safety cost is withdrawn month by month in an average manner
according to the following standards based on the actual operating income in the previous year: 1% for ordinary
freight business; 1.5% for passenger transportation business, and special freight business such as pipeline
transportation and dangerous goods transportation.
Work safety cost and maintenance & renovation cost are included in the cost of relevant products or the current
profit and loss when withdrawn, and are also included in the "special reserve" account.
For the withdrawn work safety cost and maintenance & renovation cost, if used within the specified scope,
those belong to expense expenditures are directly offset by specific reserves; those cost incurred via collection
under the item of “construction in progress” is recognized when the safety project completes and is ready for
intended use. At the same time, the Group will offset the specific reserves according to the cost that formed
fixed assets and recognize the accumulated depreciation of the same amount. The fixed assets will no longer be
depreciated in subsequent periods.
(4) Repurchase of shares
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Shares repurchased by the Company are managed as treasury shares before being canceled or transferred, and
all expenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment for
shares repurchase and reduced owner’s equity in transaction expenses, during repurchase, assignment and write
off of the Company's shares, are not recognized as profits or losses.
The transferred treasury shares are included in the capital reserve based on the difference between the amount
actually received and the book value of the treasury shares. The surplus reserve and undistributed profits shall
be offset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capital
reserve based on the difference between the book balance and the face value of the canceled treasury shares by
reducing the share capital according to the face value of the shares and the number of canceled shares. The
surplus reserve and undistributed profits shall be offset if the capital reserve is insufficient to offset.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the incentive
objects subscribe for the shares preferentially. If the unlocking conditions stipulated in the equity incentive plan
are not met subsequently, the Company will repurchase the shares at the price agreed in advance. If the
restricted shares issued to employees have completed capital increase procedures such as registration as
specified, the Company shall recognize the share capital and capital reserve (share premium) according to the
share subscription money received from employees on the grant date, and recognize the treasury shares and
other payables in terms of the repurchase obligation.
(6) 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 judges whether there is a sign of impairment to assets on the balance sheet date. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business 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 recoverable amount is
estimated of the individual asset. If it is not possible to estimate the recoverable amount of the individual asset,
the Company determines the recoverable amount of the asset group to which the asset belongs. 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 asset or asset group’s recoverable amount is lower than its carrying amount, the Company reduces its
carrying amount to its recoverable amount, the reduced amount is recorded in profit or loss for the current
period and the provision for impairment of assets is recognized.
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. Asset group or portfolio of asset
group is asset group or portfolio of asset group which can be benefit from synergies of a business combination
and is not greater than the reportable segment of 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.
(7) Significant accounting judgments and estimates
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based
on historical experience and other factors, including reasonable expectations for future events. Significant
accounting estimates and key assumptions 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 include the analysis of business
models and the contractual cash flow characteristics.
The Company determines the business model of managing financial assets at the level of financial asset
portfolio, considering the way of evaluating and reporting financial asset performance to key management
personnel, the risks affecting the financial asset performance and their management methods, and the way for
the relevant business management personnel to obtain the remuneration.
When evaluating whether the contractual cash flow of financial assets is consistent with the basic loan
arrangement, the Company has the following main judgments: whether the principal may change in the time
distribution or amount in the duration due to prepayment and other reasons; whether the interest includes only
the time value of money, credit risk, other basic borrowing risks and consideration with costs and profits. For
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example, whether the 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 through default risk exposure and
expected credit loss rate of accounts receivable, and determines the expected credit loss rate based on default
probability and loss given default. In determining the expected credit loss rate, the Company uses the internal
historical credit loss experience and other data, and adjusts the historical data according to the current situation
and forward-looking information. When considering forward-looking information, the indicators used by the
Company include risks of economic downturn, changes in external market environment, technological
environment and customer conditions. The Company regularly monitors and reviews the assumptions related to
the calculation of expected credit losses.
Development expenditures
In determining the capitalization amounts, the management must make assumptions on the expected future cash
flow generation of assets, discount rate to be adopted and expected benefit period.
Deferred income tax assets
The deferred tax assets shall be recognized concerning all unused tax losses to the extent that there is very likely
to be sufficient taxable profit to offset loss. This requires the management to estimate the timing and amount of
future taxable profit using large amounts of judgment and to determine the recognized amount of deferred tax
assets by referring to the tax planning strategy.
Estimated liabilities
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date, the carrying amount of the
estimated liabilities is reviewed and adjusted by the Company 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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VI. Taxes
1. Main taxes and tax rates
Tax Category Tax Basis Tax Rate
Taxable value-added tax (the tax payable
is calculated by multiplying taxable sales
VAT by applicable tax rate and then deducting 13%, 9%, 6%, 5%
input tax which is allowed to be deducted
for the current period)
Urban maintenance and
Turnover tax actually paid 7%, 5%
construction tax
Corporate income tax Taxable income 25%
Local educational
Turnover tax actually paid 2%
surcharges
Education surcharges Turnover tax actually paid 3%
Land use tax Land use area CNY 9/m2, CNY 14/m2, etc.
Residual value of property and rental
Property tax 1.2%, 12%
income
Disclosure shall be made if there are different enterprise income tax rates for different taxpayers
Name of Taxpayer Income tax rate
The Company 25%
Jiefang Limited 15%
Wuxi Dahao Power Co., Ltd. 25%
FAW Jiefang (Qingdao) Automotive Co., Ltd. 25%
FAW Jiefang Dalian Diesel Engine Co., Ltd. 15%
FAW Austria Automobile R&D GmbH 25%
FAW Jiefang New Energy Vehicle 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 Technology Department of Jilin Province, the Department of Finance of Jilin Province and the Jilin
Provincial Tax Service of State Taxation Administration.
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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 Consolidated Financial Statements
1. Monetary capital
Unit: CNY
Item Ending balance Opening balance
Cash at bank 20,992,347,381.12 30,709,255,009.05
Other monetary capital 49,126,036.59 52,007,712.35
Total 21,041,473,417.71 30,761,262,721.40
Including: total amount
13,903,726.95 13,585,238.95
deposited abroad
Total amount with
limited use due to mortgage, pledge 50,667,983.38 56,005,226.87
or freezing
Other notes:
Details of restricted monetary capital are as follows:
Ending balance of the
Item Ending balance
previous year
Security deposit for three types of personnel 27,077,797.58 26,244,528.16
Housing maintenance fund 22,048,239.01 21,993,684.19
Court freezing 1,541,946.79 3,997,514.52
Security deposit for migrant workers' wages 3,769,500.00
Total 50,667,983.38 56,005,226.87
2. Notes receivable
(1) Classification of notes receivable
Unit: CNY
Item Ending balance Opening balance
Commercial acceptance notes 186,748,716.22 12,936,978.11
Total 186,748,716.22 12,936,978.11
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Unit: CNY
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying Carrying
Provision amount Provision amount
Amount Scale Amount Amount Scale Amount
proportion proportion
Including:
Notes receivable
with provision
for bad debts 187,550,142.00 100.00% 801,425.78 0.43% 186,748,716.22 13,008,525.00 100.00% 71,546.89 0.55% 12,936,978.11
made by
portfolio
Including:
Commercial
187,550,142.00 100.00% 801,425.78 0.43% 186,748,716.22 13,008,525.00 100.00% 71,546.89 0.55% 12,936,978.11
acceptance bill
Total 187,550,142.00 100.00% 801,425.78 0.43% 186,748,716.22 13,008,525.00 100.00% 71,546.89 0.55% 12,936,978.11
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Provision for bad debts made by portfolio: commercial acceptance bills
Unit: CNY
Ending balance
Name
Book balance Bad debt provision Provision proportion
Less than one year 187,550,142.00 801,425.78 0.43%
Total 187,550,142.00 801,425.78
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 notes receivable is withdrawn based on the general model of expected credit
losses:
Applicable □ Not Applicable
Item for which allowance was made on a collective basis: commercial acceptance bills
Ending balance Ending balance of the previous year
Expected Expected
Aging Notes Bad debt Notes Bad debt
credit loss credit loss
receivable provision receivable provision
rate (%) rate (%)
< 1 year 187,550,142.00 801,425.78 0.43 13,008,525.00 71,546.89 0.55
(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 Ending
Category Recovery or Cancel after
balance Provision Others balance
reversal verification
Commercial
71,546.89 729,878.89 801,425.78
acceptance bill
Total 71,546.89 729,878.89 801,425.78
Important provision for bad debts recovered or reversed in the current period:
□ Applicable Not applicable
(3) Notes Receivable Endorsed or Discounted by the Company and Not Yet Expired on Date of Balance
Sheet
Unit: CNY
Derecognized amount at the end of Amount not derecognized at the
Item
the period end of the period
Bank acceptance bill 8,565,691,296.05
Total 8,565,691,296.05
3. Accounts receivable
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(1) Disclosure of accounts receivable by category
Unit: CNY
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Provision Carrying amount Provision Carrying amount
Amount Scale Amount Amount Scale Amount
proportion proportion
Accounts
receivable
with
provision
82,039,650.69 8.10% 82,039,650.69 100.00% 97,146,390.69 6.79% 97,146,390.69 100.00%
for bad
debt made
individuall
y
Including:
Accounts
receivable
with
provision
930,458,334.81 91.90% 63,367,996.39 6.81% 867,090,338.42 1,332,966,224.45 93.21% 53,272,272.75 4.00% 1,279,693,951.70
for bad
debts
made by
portfolio
Includin
g:
Aging
930,458,334.81 91.90% 63,367,996.39 6.81% 867,090,338.42 1,332,966,224.45 93.21% 53,272,272.75 4.00% 1,279,693,951.70
portfolio
1,012,497,985.5
Total 100.00% 145,407,647.08 14.36% 867,090,338.42 1,430,112,615.14 100.00% 150,418,663.44 10.52% 1,279,693,951.70
0
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Bad debt reserves on a single item:
Unit: CNY
Ending balance
Name Provision Reasons for
Book balance Bad debt provision
proportion provision
Jiangsu Xinrui New
Energy Vehicle Highly unlikely to
37,612,001.70 37,612,001.70 100.00%
Technology Co., be recovered
Ltd.
Zhejiang Hanglun
Highly unlikely to
Ligang Trading Co., 8,581,536.83 8,581,536.83 100.00%
be recovered
Ltd.
Dalian Qingfeng Highly unlikely to
8,043,264.87 8,043,264.87 100.00%
Bus 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.
Changchun Xiongtu
Highly unlikely to
New Energy 6,230,500.00 6,230,500.00 100.00%
be recovered
Vehicle Co., Ltd.
Zhonghe Shunyang
Supply Chain Highly unlikely to
5,643,600.00 5,643,600.00 100.00%
Management Co., be recovered
Ltd.
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
FAW Jingye Engine Highly unlikely to
1,820,957.23 1,820,957.23 100.00%
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
Shenyang Jinbei It has been
889,279.05 889,279.05 100.00%
Vehicle prosecuted, but
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Manufacturing Co., highly unlikely to
Ltd. be recovered
Jilin Zhuzhan
Highly unlikely to
Automobile Trading 848,566.00 848,566.00 100.00%
be recovered
Co., Ltd.
Dalian Baofeng
Highly unlikely to
Automobile Sales 496,200.00 496,200.00 100.00%
be recovered
Co., Ltd.
Liangshan Huatai Highly unlikely to
349,190.00 349,190.00 100.00%
Trading Co., Ltd. be recovered
Zhejiang Baoding
Highly unlikely to
Automobile Sales 80,035.12 80,035.12 100.00%
be recovered
Co., Ltd.
Transportation
Group (Qingdao)
Sunshine Highly unlikely to
20,835.47 20,835.47 100.00%
Automobile Sales be recovered
and Service Co.,
Ltd.
Yancheng
Highly unlikely to
Zhongwei Bus Co., 13,599.99 13,599.99 100.00%
be recovered
Ltd.
Total 82,039,650.69 82,039,650.69
Provision for bad debts made by portfolio: aging portfolio
Unit: CNY
Ending balance
Name
Book balance Bad debt provision Provision proportion
Within 1 year 786,514,528.13 1,677,403.73 0.21%
1-2 years 61,407,181.73 10,955,035.04 17.84%
2-3 years 71,238,950.11 39,437,882.78 55.36%
3-4 years 666,586.58 666,586.58 100.00%
Over 4 years 10,631,088.26 10,631,088.26 100.00%
Total 930,458,334.81 63,367,996.39
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
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Aging Book balance
Within 1 year (including 1 year) 786,514,528.13
Including: 0-6 months 702,938,136.01
7-12 months 83,576,392.12
1-2 years 61,407,181.73
2-3 years 71,238,950.11
Over 3 years 93,337,325.53
3-4 years 767,457.17
4-5 years 58,697,500.75
Over 5 years 33,872,367.61
Total 1,012,497,985.50
(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
Catego
Opening balance Recovery or Cancel after Other Ending balance
ry Provision
reversal verification s
Accou
nts
150,418,663.44 10,227,463.64 -15,106,740.00 -131,740.00 145,407,647.08
receiva
ble
Total 150,418,663.44 10,227,463.64 -15,106,740.00 -131,740.00 145,407,647.08
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Name of Organization Amount recovered or reversed Recovery method
Transportation Group (Qingdao)
Sunshine Automobile Sales and 11,000,000.00 Bank acceptance bill
Service Co., Ltd.
Dalian Qingfeng Bus Co., Ltd. 4,000,000.00 Cash at bank
Beijing Institute of Radio
71,740.00 Cash at bank
Measurement
Jilin Zhuzhan Automobile Trading
35,000.00 Cash at bank
Co., Ltd.
Total 15,106,740.00
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(3) Accounts Receivable Actually Written off in Current Period
Unit: CNY
Item Amount written off
Accounts receivable actually written off 131,740.00
Verification of important accounts receivable is as follows:
Unit: CNY
Whether
Nature of Write-off
Name of Amount written Reason for generated by
accounts procedures
Organization off write-off related party
receivable performed
transactions
Bad debts, long- General
North Huade
Payment for term arrears that manger's
Vehicle Co., 131,740.00 No
goods cannot be meeting for
Ltd.
recovered decisions
Total 131,740.00
Description of write-off of accounts receivable:
(4) Accounts receivable from top five borrowers classified based on the ending balance
Unit: CNY
Proportion in total ending
Ending balance of Ending balance of bad
Name of Organization balance of accounts
accounts receivable debts provision
receivable
China FAW Group
Import & Export Co., 320,294,820.43 31.63% 410,938.54
Ltd.
Customer 1 147,907,333.49 14.61% 147,907.33
Customer 2 69,454,500.00 6.86% 14,329,977.70
FAW Hongta Yunnan
Automobile 61,683,343.69 6.09% 7,544,307.53
Manufacturing Co., Ltd.
Customer 3 39,197,356.00 3.87% 215,585.46
Total 638,537,353.61 63.06%
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4. Receivables financing
Unit: CNY
Item Ending balance Opening balance
Notes receivable 3,461,653,473.66 5,305,018,299.79
Total 3,461,653,473.66 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
Other notes:
5. Prepayments
(1) Presentation of prepayment by aging
Unit: CNY
Ending balance Opening balance
Aging
Amount Scale Amount Scale
Within 1 year 683,392,293.37 76.12% 797,055,366.07 91.74%
1-2 years 179,765,899.07 20.02% 44,227,099.84 5.09%
2-3 years 17,802,947.31 1.98% 15,714,068.26 1.81%
Over 3 years 16,873,724.33 1.88% 11,814,878.82 1.36%
Total 897,834,864.08 868,811,412.99
Reasons for untimely settlement of prepayments with significant amount and age of over 1 year:
Unit: CNY
Proportion in
Reasons
total
Name of Debtor Book balance for non-
prepayments
settlement
(%)
Undue
China FAW Group Import & Export Co., Ltd. 117,930,561.31 13.13 settlement
period
Undue
Customer 1 24,390,033.00 2.72 settlement
period
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Proportion in
Reasons
total
Name of Debtor Book balance for non-
prepayments
settlement
(%)
Undue
Qiming Information Technology Co., Ltd. 6,354,000.00 0.71 settlement
period
Undue
The Ninth Institute of Project Planning & Research of China
5,478,800.00 0.61 settlement
Machinery Industry (FIPPR)
period
Undue
Customer 2 4,916,803.42 0.55 settlement
period
Undue
Customer 3 3,325,800.00 0.37 settlement
period
Total 162,395,997.73 18.09 --
(2) Prepayments of the top five objects classified based on the ending balance
The advance payments with top five closing balance classified by the prepaid parties in the current period is
CNY 530,271,452.54, accounting for 59.06% of the total closing balance of advance payments.
Other notes: none
6. Other receivables
Unit: CNY
Item Ending balance Opening balance
Dividends receivable 2,608,000.00 8,567,040.00
Other accounts receivable 1,065,846,162.91 240,521,050.95
Total 1,068,454,162.91 249,088,090.95
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
Item (or Investee) Ending balance Opening balance
FAW Changchun Ansteel Steel
2,608,000.00 8,567,040.00
Processing and Distribution Co., Ltd.
Total 2,608,000.00 8,567,040.00
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2) Provision for bad debts
□ Applicable Not applicable
Other notes:
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending book balance Opening book balance
Current account 915,518,158.63 99,570,166.66
Claim payment 197,953,339.79 196,444,173.02
Margin, deposit 38,988,831.99 34,872,256.53
Reserve fund 10,164,463.79 4,777,757.97
Total 1,162,624,794.20 335,664,354.18
2) Provision for bad debts
Unit: CNY
Phase I Phase II Phase III
Expected loss in the Expected credit loss
Expected credit loss
Bad debt provision duration (credit for the entire Total
for the next 12
impairment not duration (with
months
occurred) 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
一 Transfer to stage
-555,299.13 555,299.13
II
一 Transfer to stage
-8,227,110.28 8,227,110.28
III
Provision in the
-1,475,914.17 3,115,083.12 1,639,168.95
current period
Reversal in the
-3,840.89 -3,840.89
current period
Balance as at
3,002,964.74 25,052,575.21 68,723,091.34 96,778,631.29
December 31, 2022
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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 Book balance
Within 1 year (including 1 year) 1,063,615,196.21
Including: 0-6 months 1,062,285,764.54
7-12 months 1,329,431.67
1-2 years 1,441,092.04
2-3 years 4,041,713.73
Over 3 years 93,526,792.22
3-4 years 8,377,324.28
4-5 years 39,525,093.62
Over 5 years 45,624,374.32
Total 1,162,624,794.20
3) 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
Cancel
Opening
Category Recovery or after Ending balance
balance Provision Others
reversal verificati
on
Other
accounts 95,143,303.23 1,639,168.95 -3,840.89 96,778,631.29
receivable
Total 95,143,303.23 1,639,168.95 -3,840.89 96,778,631.29
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Name of Organization Amount reversed or recovered Recovery method
Employee arrears 3,840.89 Cash at bank
Total 3,840.89 ——
4) Other receivables from top five borrowers classified based on the ending balance
Unit: CNY
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Proportion in
total ending Ending balance
Name of Payment
Ending balance Aging balance of of bad debts
Organization nature
other provision
receivables
Funds for
Customer 1 land purchase 660,862,800.00 Within 1 year 56.84% 660,862.80
and reserve
Current
Customer 2 50,230,038.50 0-6 months 4.32% 462,116.35
account
Current
Customer 3 49,557,522.13 0-6 months 4.26% 455,929.20
account
New energy
4-5 years; over 5
Customer 4 vehicle sales 48,155,960.00 4.14% 48,155,960.00
years
subsidies
Current
Customer 5 38,332,743.36 0-6 months 3.30% 352,661.24
account
Total 847,139,063.99 72.86% 50,087,529.59
7. Inventories
Whether the Company is required to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
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Unit: CNY
Ending balance Opening balance
Provision for Provision for
impairment of impairment of
Item
Book balance inventory or Carrying amount Book balance inventory or Carrying amount
contract contract
performance cost performance cost
Raw materials 351,801,254.38 34,595,186.53 317,206,067.85 379,195,753.25 35,363,287.47 343,832,465.78
Goods in process 564,240,295.08 3,741,307.32 560,498,987.76 676,093,365.06 4,732,672.33 671,360,692.73
Goods in stocks 3,281,304,875.32 183,152,615.52 3,098,152,259.80 5,864,661,527.18 143,363,374.55 5,721,298,152.63
Revolving
92,939,661.90 2,463,306.64 90,476,355.26 103,311,491.37 1,244,042.64 102,067,448.73
materials
Others 2,509,560,166.91 193,153,939.75 2,316,406,227.16 2,618,917,617.54 189,355,846.16 2,429,561,771.38
Total 6,799,846,253.59 417,106,355.76 6,382,739,897.83 9,642,179,754.40 374,059,223.15 9,268,120,531.25
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(2) Provision for impairment of inventory and contract performance cost
Unit: CNY
Increase in current period Decrease in current period
Item Opening balance Ending balance
Provision Others Reverse or charge-off Others
Raw materials 35,363,287.47 773,725.07 1,541,826.01 34,595,186.53
Goods in process 4,732,672.33 1,414,223.41 2,405,588.42 3,741,307.32
Goods in stocks 143,363,374.55 332,094,426.49 292,305,185.52 183,152,615.52
Revolving
1,244,042.64 1,219,264.00 2,463,306.64
materials
Others 189,355,846.16 82,946,767.92 79,148,674.33 193,153,939.75
Total 374,059,223.15 418,448,406.89 375,401,274.28 417,106,355.76
250
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8. Contractual assets
Unit: CNY
Ending balance Opening balance
Item Impairment Carrying Impairment Carrying
Book balance Book balance
provision amount provision amount
Contract
11,341,422.54 211,797.79 11,129,624.75 57,650,067.72 4,602,380.00 53,047,687.72
assets
Total 11,341,422.54 211,797.79 11,129,624.75 57,650,067.72 4,602,380.00 53,047,687.72
Amount and reason of significant changes in the book value of contract assets in the current period: Unit: CNY
Item Change amount Reason for change
New quality guarantee
Shandong Wuzheng Group Co., Ltd. 3,163,711.67
deposit in the current period
Forland Pilot Truck Factory of Beiqi Foton Motor Expiration of quality
-1,714,986.00
Co., Ltd. guarantee deposit
Expiration of quality
Changchun Public Transport (Group) Co., Ltd. -43,838,920.00
guarantee deposit
Total -42,390,194.33 ——
Information about the provision for bad debts 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
Bad debt provision made as per portfolio:
Portfolio provision item: aging portfolio Unit: CNY
Ending balance Ending balance of the previous year
Category Expected Expected
Contract Bad debt Contract Bad debt
credit loss credit loss
assets provision assets provision
rate (%) rate (%)
Within 1
10,153,037.67 34,255.92 0.34 31,421,323.96 86,311.95 0.27
year
1-2 years 1,188,384.87 177,541.87 14.94 26,228,743.76 4,516,068.05 17.22
Total 11,341,422.54 211,797.79 1.87 57,650,067.72 4,602,380.00 7.98
Provision for impairment of contract 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
Risks in payment
impairment of -4,390,582.21
collection
contractual assets
Total -4,390,582.21 ——
9. Long-term receivables due within 1 year
Unit: CNY
251
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Item Ending balance Opening balance
Long-term receivables due within
191,262,030.30 114,825,391.38
1 year
Total 191,262,030.30 114,825,391.38
10. Other current assets
Unit: CNY
Item Ending balance Opening balance
Input tax 510,325,627.83 1,368,192,743.48
Input tax to be verified 384,601,871.76 19,065,353.23
Prepaid income tax 626,891,494.80
Total 894,927,499.59 2,014,149,591.51
252
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11. Long-term receivables
(1) Long-term receivables
Unit: CNY
Ending balance Opening balance
Discount
Item Bad debt Bad debt
Book balance Carrying amount Book balance Carrying amount rate range
provision provision
Sales of goods by
315,738,954.37 2,870,336.64 312,868,617.73 338,691,573.49 1,275,424.32 337,416,149.17
installments
Long-term receivables due
-193,577,418.87 -2,315,388.57 -191,262,030.30 -115,267,222.47 -441,831.09 -114,825,391.38
within 1 year
Total 122,161,535.50 554,948.07 121,606,587.43 223,424,351.02 833,593.23 222,590,757.79
Impairment of provision for bad debts
Unit: CNY
Phase I Phase II Phase III
Expected loss in the duration Expected credit loss for the
Bad debt provision Expected credit loss for the Total
(credit impairment not entire duration (with credit
next 12 months
occurred) 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 1,594,912.32 1,594,912.32
Balance as at December 31, 2022 2,870,336.64 2,870,336.64
Changes in the book balance of the loss provision with significant changes in the current period
□ Applicable Not applicable
12. Long-term Equity Investment Unit: CNY
253
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Increase/Decrease in the current period Endi
ng
Impa balan
Opening balance Inves Investment gains Adjustment Ending balance ce of
Investee Cash dividends irme Ot
(book value) Investment tment or losses to other Changes in (book value) impai
and profits nt he
increase decre recognized under comprehensi other equity rment
declared to pay prov rs
ase the equity method ve income provi
ision
sion
I. Joint ventures
II. Associated enterprises
First
Automobile
4,341,181,324.38 358,137,304.38 -98,154.88 429,182,504.29 4,270,037,969.59
Finance Co.,
Ltd.
Sanguard
Automobile
213,584,040.85 6,044,847.34 -686,753.20 17,920,972.75 201,021,162.24
Insurance Co.,
Ltd.
FAW
Changchun
Ansteel Steel
85,910,484.18 3,642,150.88 121,594.12 2,608,000.00 87,066,229.18
Processing and
Distribution
Co., Ltd.
Changchun
Wabco
Automotive 20,301,325.09 -3,013,158.96 17,288,166.13
Control System
Co., Ltd.
Suzhou Zhito
Technology
Co., Ltd.
FAW
Changchun
43,140,497.54 7,015,983.25 6,300,012.21 43,856,468.58
Baoyou Steel
Processing and
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Distribution
Co., Ltd.
FAW Jiefang
Fujie (Tianjin)
Technology 35,181,984.88 1,910,582.53 37,092,567.41
Industry Co.,
Ltd.
SmartLink 27,435,014.82 -27,148,942.11 286,072.71
Foshan
Diyiyuan New
Energy 36,000,000.00 36,000,000.00
Technology
Co., Ltd.
Subtotal 4,766,734,671.74 36,000,000.00 346,588,767.31 -784,908.08 121,594.12 456,011,489.25 4,692,648,635.84
Total 4,766,734,671.74 36,000,000.00 346,588,767.31 -784,908.08 121,594.12 456,011,489.25 4,692,648,635.84
Other notes:
255
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13. Other equity instrument investments
Unit: CNY
Item Ending balance Opening balance
REFIRE 480,780,000.00
Total 480,780,000.00
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plans to hold for
a long time for strategic purposes, so the Company designates it as a financial asset measured at fair value and
whose changes are included in other comprehensive incomes.
14. Investment real estate
(1) Investment real estates measured at cost
Applicable □ Not Applicable
Unit: CNY
Project
Houses and under
Item Land use right Total
buildings constructi
on
I. Original book value
1. Opening balance 148,337,701.92 2,042,122.60 150,379,824.52
2. Increase in the current period 17,261,344.57 92,855,371.47 110,116,716.04
(1) Purchase
(2) Transferred from inventories /
17,261,344.57 92,855,371.47 110,116,716.04
fixed assets / construction in progress
(3) Increase due to business
combination
3. Decrease in the current period 19,853,163.65 87,533,093.13 107,386,256.78
(1) Disposal
(2) Other transfer-out
(3) Reversal of intangible assets 87,533,093.13 87,533,093.13
(4) Transferred to fixed assets 16,931,930.47 16,931,930.47
(5) Transferred to construction in
2,921,233.18 2,921,233.18
progress
4. Ending balance 145,745,882.84 7,364,400.94 153,110,283.78
II. Accumulated depreciation and
accumulated amortization
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1. Opening balance 70,076,640.08 100,359.35 70,176,999.43
2. Increase in the current period 17,341,992.28 21,497,218.21 38,839,210.49
(1) Provision or amortization 7,328,867.88 1,309,979.48 8,638,847.36
(2) Other increases 10,013,124.40 20,187,238.73 30,200,363.13
3. Decrease in the current period 16,200,021.65 20,353,501.97 36,553,523.62
(1) Disposal
(2) Other transfer-out
(3) Reversal of intangible assets 20,353,501.97 20,353,501.97
(4) Transferred to fixed assets 13,358,236.95 13,358,236.95
(5) Transferred to construction in
2,841,784.70 2,841,784.70
progress
4. Ending balance 71,218,610.71 1,244,075.59 72,462,686.30
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
4. Ending balance
IV. Book value
1. Ending book value 74,527,272.13 6,120,325.35 80,647,597.48
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 Carrying amount
certificate
This plot has been included in the
government renovation project,
Property, No. 949, Chongqing
1,139,949.09 and the property ownership
Middle Road, Licang District
certificate cannot be applied for at
present
Other notes:
257
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15. Fixed assets
Unit: CNY
Item Ending balance Opening balance
Fixed assets 9,604,636,127.53 9,224,786,362.59
Fixed assets liquidation 8,286,682.75 12,002,959.44
Total 9,612,922,810.28 9,236,789,322.03
(1) Details of fixed assets
Unit: CNY
258
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Houses and Machinery Transportation Electronic Office
Item Others Total
buildings equipment equipment equipment equipment
I. Original book value
1. Opening balance 5,364,682,902.67 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
512,847,259.65 1,305,207,244.87 16,618,348.08 107,948,086.49 9,876,554.53 69,571,941.23 2,022,069,434.85
period
(1) Purchase 7,323,316.04 124,649,827.82 12,272,892.19 79,798,962.29 1,836,183.46 41,425,204.35 267,306,386.15
(2) Transfer to
488,592,013.14 1,180,557,417.05 4,345,455.89 28,149,124.20 8,040,371.07 28,146,736.88 1,737,831,118.23
construction in progress
(3) Increase due to
business combination
(4) Other increases 16,931,930.47 16,931,930.47
3. Decrease in the current
152,520,446.16 507,434,433.27 6,938,046.83 18,503,944.47 1,257,616.55 11,000,868.67 697,655,355.95
period
(1) Disposal or
118,838,331.39 394,660,332.13 4,769,006.41 18,503,944.47 1,257,616.55 11,000,868.67 549,030,099.62
retirement
(2) Other decreases 33,682,114.77 112,774,101.14 2,169,040.42 148,625,256.33
4. Ending balance 5,725,009,716.16 15,656,156,281.82 163,214,691.23 662,116,184.02 60,661,288.33 1,331,905,071.36 23,599,063,232.92
II. Accumulated depreciation
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
278,585,879.88 1,046,296,805.59 18,578,581.99 86,065,747.31 5,724,655.51 99,198,577.63 1,534,450,247.91
period
(1) Provision 265,227,642.93 1,046,181,393.98 18,414,338.25 86,065,747.31 5,724,655.51 99,198,577.63 1,520,812,355.61
(2) Transfer to
115,411.61 164,243.74 279,655.35
construction in progress
(3) Other increases 13,358,236.95 13,358,236.95
3. Decrease in the current
115,487,732.35 392,113,522.05 4,808,484.38 18,423,385.20 1,195,593.94 10,646,640.95 542,675,358.87
period
(1) Disposal or
92,365,173.75 315,963,802.37 4,644,240.64 18,423,385.20 1,195,593.94 10,646,640.95 443,238,836.85
retirement
(2) Other decreases 23,122,558.60 76,149,719.68 164,243.74 99,436,522.02
4. Ending balance 2,311,008,528.82 9,948,863,333.22 116,715,194.87 483,841,486.87 44,160,940.50 1,059,255,698.93 13,963,845,183.21
III. Provision for impairment
1. Opening balance 12,344.37 75,572,210.09 2,207,942.80 77,792,497.26
2. Increase in the current 10,230,753.57 10,230,753.57
259
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period
(1) Provision 10,230,753.57 10,230,753.57
3. Decrease in the current
57,441,328.65 57,441,328.65
period
(1) Disposal or
57,441,328.65 57,441,328.65
retirement
4. Ending balance 12,344.37 28,361,635.01 2,207,942.80 30,581,922.18
IV. Book value
1. Ending book value 3,413,988,842.97 5,678,931,313.59 46,499,496.36 178,274,697.15 16,500,347.83 270,441,429.63 9,604,636,127.53
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
260
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(2) Fixed assets not used currently
Unit: CNY
Original book Accumulated Impairment Carrying
Item Remarks
value depreciation provision amount
Machinery
56,614,790.77 34,692,721.09 17,791,117.86 4,130,951.82
equipment
Others 73,498,836.51 69,932,814.46 2,207,942.80 1,358,079.25
Total 130,113,627.28 104,625,535.55 19,999,060.66 5,489,031.07
(3) Fixed assets without property ownership certificates
Unit: CNY
Item Carrying amount Reasons for failure to obtain the certificate
Project of exiting the city and It is a new plant, and the information is
245,701,254.96
entering the industrial park incomplete and currently being processed.
Assets are newly added in 2022, with
Joint workshop and laboratory 168,095,079.74
procedures not completed yet
FAW Jiefang south new energy It is a new plant, and the information is
119,485,690.05
base project incomplete and currently being processed.
Hazardous waste station in plant
2,693,553.53 Relevant certificates are incomplete
area I
Land applications are not submitted, so the
Equipment workshop works 1,101,619.26 property ownership certificate cannot be
obtained
Other notes:
(4) Fixed assets liquidation
Unit: CNY
Item Ending balance Opening balance
Houses and buildings 283,806.99 8,280.77
Machinery equipment 7,759,672.33 10,642,669.15
Means of transportation 113,084.68 219,822.98
Electronic equipment 77,126.05 8,298.69
Office equipment 45,702.70 18,904.69
Others 7,290.00 1,104,983.16
Total 8,286,682.75 12,002,959.44
Other notes:
16. Construction in progress
Unit: CNY
Item Ending balance Opening balance
Project under construction 1,902,143,354.11 965,997,208.23
Total 1,902,143,354.11 965,997,208.23
(1) Project under construction
Unit: CNY
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Ending balance Opening balance
Item Impairment Impairment
Book balance Carrying amount Book balance Carrying amount
provision provision
New and
reconstruc
ted 230,889,214.48 1,945,416.12 228,943,798.36 235,582,222.31 1,945,416.12 233,636,806.19
investmen
t project
Technical
transforma
tion 1,673,255,052.94 55,497.19 1,673,199,555.75 732,415,899.23 55,497.19 732,360,402.04
investmen
t project
Total 1,904,144,267.42 2,000,913.31 1,902,143,354.11 967,998,121.54 2,000,913.31 965,997,208.23
262
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(2) Changes of important project under construction in the current period
Unit: CNY
Inclu
ding: Capi
Cum Capit taliz
Proportio
Other ulativ alized ation
n of
deduc e intere rate
Amount accumula Sou
tions amou st of
transferred to ted rces
Project Increase in current in the Project nt of amou inter
Budget Opening balance fixed assets in Ending balance investme of
name period curre progress capit nt est
the current nt in fun
nt alize durin in
period construct ds
perio d g the curr
ions to
d intere curre ent
budget
st nt peri
perio od
d
FAW
Jiefang
commerci
Oth
al vehicle 999,970,000.00 138,759,113.95 481,729,983.01 620,489,096.96 62.05% 62.05%
ers
Guanghan
base
project
Axle base
constructi
on project
and heavy
Oth
replaceme 989,859,950.93 79,972,863.66 341,454,665.18 421,427,528.84 46.00% 65.00%
ers
nt axle
technolog
y upgrade
(phase I)
Engine
constructi Oth
1,227,429,000.00 112,386,329.25 529,188,167.59 339,046,251.50 302,528,245.34 55.00% 63.40%
on and ers
natural gas
263
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test
capacity
improvem
ent project
(16L)
Collinear
project of
50,000
sets of Oth
667,780,000.00 102,315,208.39 102,315,208.39 15.32% 15.00%
new 13L ers
and M
series
engines
Thin plate
stamping
capacity
Oth
expansion 198,000,000.00 85,791,504.96 85,791,504.96 43.33% 44.04%
ers
project of
Jimo
factory
R&D
capacity
improvem
ent project Oth
636,619,900.00 49,273,323.85 49,273,323.85 7.74% 5.63%
of FAW ers
Jiefang
Qingdao
Base
FAW
Jiefang
south new Oth
413,800,000.00 82,263,770.61 114,239,821.86 154,826,435.39 41,677,157.08 69.63% 76.60%
energy ers
base
project
Project for Oth
79,820,000.00 20,357,026.83 20,357,026.83 25.50% 26.00%
introducin ers
264
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g new
energy
and other
products
as well as
upgrading
intelligent
logistics
M engine
crankshaft
capacity
Oth
improvem 30,500,000.00 2,106,866.39 17,661,339.47 19,768,205.86 64.81% 64.81%
ers
ent project
(W310000
00111)
Project of
exiting the
city and
Oth
entering 936,068,800.00 19,204,724.39 1,830,680.07 1,830,680.07 19,204,724.39 94.21% 99.80%
ers
the
industrial
park
Motor
Oth
assembly 22,300,000.00 15,221,238.88 15,221,238.88 68.26% 68.26%
ers
line
Qingqi
New
Energy
Oth
Light 998,000,000.00 280,930,246.91 3,341,363.58 284,271,610.49 100% 100%
ers
Truck
Base
Project
capacity
expansion Oth
169,960,000.00 144,594,242.99 142,563,900.01 2,030,342.98 85.08% 85.08%
project of ers
light truck
265
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welding
line in
welding
workshop
of Jimo
factory
Intelligent
transforma
tion of
Oth
welding 59,130,000.00 25,718,230.08 17,145,486.72 42,863,716.80 100% 100%
ers
workshop
automatio
n
Total 7,429,237,650.93 741,342,145.24 1,924,144,053.38 965,402,594.26 1,700,083,604.36
266
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17. Productive biological assets
(1) Bearer biological assets measured at cost
□ Applicable Not applicable
(2) Bearer biological assets measured at fair value
□ Applicable Not applicable
18. Oil and gas assets
□ Applicable Not applicable
19. 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
55,635,089.59 54,778,761.05 110,413,850.64
current period
Including: rent 55,635,089.59 54,778,761.05 110,413,850.64
3. Decrease in
4,748,858.75 17,495,179.83 22,244,038.58
the current period
4. Ending
203,880,616.59 54,778,761.06 23,719,044.14 282,378,421.79
balance
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
38,218,557.10 8,112,052.32 6,511,130.39 52,841,739.81
current period
(1)
38,218,557.10 8,112,052.32 6,511,130.39 52,841,739.81
Provision
3. Decrease in
2,725,362.04 16,400,642.86 19,126,004.90
the current period
(1) Disposal
4. Ending
71,135,818.41 13,022,260.79 84,158,079.20
balance
III. Provision for
impairment
1. Opening
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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
132,744,798.18 54,778,761.06 10,696,783.35 198,220,342.59
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, refer to 2 "Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X -
Financial Report.
20. Intangible assets
(1) Details of intangible assets
Unit: CNY
Patent Non-patented
Item Land use right Software Total
rights technology
I. Original book value
1. Opening balance 2,872,112,661.06 677,388,766.94 511,564,769.26 4,061,066,197.26
2. Increase in the
209,886,782.30 102,989,627.64 312,876,409.94
current period
(1) Purchase 122,353,689.17 82,658,365.18 205,012,054.35
(2) Internal R&D
(3) Increase due to
business combination
(4) Other increases 87,533,093.13 20,331,262.46 107,864,355.59
3. Decrease in the
443,801,317.32 309,877,041.02 7,508,036.81 761,186,395.15
current period
(1) Disposal 350,945,945.85 7,508,036.81 358,453,982.66
(2) Invalid and
309,877,041.02 309,877,041.02
derecognized portion
(3) Other decreases 92,855,371.47 92,855,371.47
4. Ending balance 2,638,198,126.04 367,511,725.92 607,046,360.09 3,612,756,212.05
II. Accumulated
amortization
1. Opening balance 573,374,388.26 562,286,837.32 153,127,855.55 1,288,789,081.13
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2. Increase in the
81,162,265.36 50,951,211.18 61,142,635.11 193,256,111.65
current period
(1) Provision 60,808,763.39 50,951,211.18 61,142,635.11 172,902,609.68
(2) Other increases 20,353,501.97 20,353,501.97
3. Decrease in the
101,003,328.09 309,877,041.02 7,505,529.67 418,385,898.78
current period
(1) Disposal 80,816,089.36 7,505,529.67 88,321,619.03
(2) Invalid and
309,877,041.02 309,877,041.02
derecognized portion
(3) Other decreases 20,187,238.73 20,187,238.73
4. Ending balance 553,533,325.53 303,361,007.48 206,764,960.99 1,063,659,294.00
III. Provision for
impairment
1. Opening balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 2,084,664,800.51 64,150,718.44 400,281,399.10 2,549,096,918.05
2. Opening book value 2,298,738,272.80 115,101,929.62 358,436,913.71 2,772,277,116.13
The intangible assets not resulting from internal research and development of the Company accounts for 0.00%
of the balance of intangible assets at the end of the current period.
(2) Conditions of land use right whose property certificates are not settled
Unit: CNY
Reasons for failure to obtain the
Item Carrying amount
certificate
After the land ownership
certificates of the 2 plots were
Parcels 2# and 3# of Guanghan returned to the government for
117,629,829.11
Base destruction, the procedures for
consolidating the certificates have
not been handled.
Other notes:
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21. Development expenditures
Unit: CNY
Increase in current period Decrease in current period
Recognize
Opening Internal Transferred to Ending
Item d as
balance development Others current profits and balance
intangible
expenditures losses
assets
Cost-based
2,895,655,097.73 2,895,655,097.73
expenditure
Total 2,895,655,097.73 2,895,655,097.73
Other notes:
22. Long-term unamortized expenses
Unit: CNY
Amortization
Opening Increase in
Item amount in the Other decreases Ending balance
balance current period
current period
Maintenance,
fire protection
transformation 334,598.30 204,158.64 130,439.66
and supporting
expenses
Total 334,598.30 204,158.64 130,439.66
Other notes:
23. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: CNY
Ending balance Opening balance
Deductible
Item Deductible Deferred income Deferred income
temporary
temporary difference tax assets tax assets
difference
Provision for
633,651,664.00 111,898,550.65 644,896,017.71 108,060,894.94
impairment of assets
Unrealized profits of
11,827,733.38 2,956,933.35 433,668,860.00 108,417,215.00
internal transactions
Deductible losses 5,145,166,718.01 927,446,279.03 1,337,622,355.67 275,224,988.92
Estimated liabilities 794,067,908.68 132,797,620.71 1,133,139,410.76 189,238,389.56
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Employee
118,991,183.21 20,016,363.56 95,057,719.68 16,232,178.23
compensation payable
Accrued expenses 3,175,125,774.27 742,710,859.21 3,203,797,740.11 738,848,418.90
Deferred incomes 538,046,593.82 108,889,119.49 586,360,167.55 114,073,451.58
Contract liabilities 539,407,507.24 84,634,179.21 575,584,804.51 100,200,974.13
Total 10,956,285,082.61 2,131,349,905.21 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 2,206,140,811.13 386,257,051.99 2,056,171,246.16 349,311,074.60
longer than tax
preference period
Interest income
293,135,708.15 44,112,815.94 162,580,602.64 24,874,039.55
accrued
Total 2,499,276,519.28 430,369,867.93 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 income
2,131,349,905.21 1,650,296,511.26
tax assets
Deferred income
430,369,867.93 374,185,114.15
tax liabilities
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Ending balance Opening balance
Deductible temporary difference 619,818,965.27 664,263,202.95
Deductible losses 499,742,487.05 276,845,879.98
Total 1,119,561,452.32 941,109,082.93
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(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Ending amount Opening amount Remarks
2022
2023
2024
2025
Year 2026 1,441,940.00 1,441,940.00
2027 3,524,136.57
2028 259,853,735.45 231,853,580.86
2029 41,881,736.88 43,550,359.12
2030
2031
2032 193,040,938.15
Total 499,742,487.05 276,845,879.98
Other notes:
24. Notes payable
Unit: CNY
Type Ending balance Opening balance
Bank acceptance bill 9,198,593,038.03 13,062,704,192.54
Total 9,198,593,038.03 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.
25. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
Item Ending balance Opening balance
Payment for goods 9,297,168,020.86 12,959,963,131.32
Project and equipment payment 11,953,792.66 21,713,517.52
Fees and others 724,486,854.54 1,583,223,345.63
Total 10,033,608,668.06 14,564,899,994.47
(2) Significant accounts payable with the aging over 1 year
Unit: CNY
Reasons for not repaying or
Item Ending balance
carrying forward
272
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At the stage of legal adjudication,
Supplier 1 5,243,361.11 the account is frozen and the
payment is stopped.
Both parties have not reached an
agreement on the content of the
Supplier 2 4,244,960.23
contract, and will not make
payment temporarily.
Total 9,488,321.34
Other notes:
26. Advance receipts
(1) Presentation of advances receipts
Unit: CNY
Item Ending balance Opening balance
Rental fee 1,861,865.37 1,712,917.27
Total 1,861,865.37 1,712,917.27
27. Contract liabilities
Unit: CNY
Item Ending balance Opening balance
Payment for goods 1,155,321,169.46 2,324,758,318.77
Others 607,787,793.96 643,363,601.92
Contract liabilities included in
-133,584,259.07 -267,479,444.78
other current liabilities
Total 1,629,524,704.35 2,700,642,475.91
28. Employee pay payable
(1) Presentation of employee compensation payable
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
I. Short-term
248,475,175.17 4,512,254,689.28 4,487,055,551.45 273,674,313.00
compensation
II. Post-
employment
20,760,130.28 673,411,917.06 631,342,706.16 62,829,341.18
benefits-defined
contribution plan
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III. Dismissal
40,525,119.92 75,164,048.19 69,504,643.53 46,184,524.58
welfare
IV. Current portion
54,690,000.00 67,374,059.37 68,104,059.37 53,960,000.00
of other welfare
Total 364,450,425.37 5,328,204,713.90 5,256,006,960.51 436,648,178.76
(2) Presentation of short-term compensation
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
1. Wages, bonuses,
3,089,898,058.03 3,089,898,058.03
allowances and subsidies
2. Employee welfare 237,865,196.05 237,865,196.05
3. Social insurance
4,091,540.25 344,992,625.87 343,869,231.52 5,214,934.60
premium
Including: medical
4,091,540.25 323,969,253.15 324,099,638.54 3,961,154.86
insurance premium
Work-related
15,529,747.23 14,275,967.49 1,253,779.74
injury insurance premium
Maternity
5,493,625.49 5,493,625.49
insurance premium
4. Housing fund 492,904,401.23 492,903,517.23 884.00
5. Labor union funds and
employee education 244,383,634.92 108,478,915.09 84,404,055.61 268,458,494.40
funds
Other short-term
238,115,493.01 238,115,493.01
compensations
Total 248,475,175.17 4,512,254,689.28 4,487,055,551.45 273,674,313.00
(3) Presentation of defined contribution plan
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
1. Basic endowment
16,032,537.24 459,206,806.73 425,765,165.93 49,474,178.04
insurance
2. Unemployment
2,374,937.21 18,739,687.59 17,276,613.86 3,838,010.94
insurance premium
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3. Enterprise
2,352,655.83 195,465,422.74 188,300,926.37 9,517,152.20
annuity
Total 20,760,130.28 673,411,917.06 631,342,706.16 62,829,341.18
Other notes:
29. Taxes payable
Unit: CNY
Item Ending balance Opening balance
VAT 142,544,438.56 11,331,447.35
Corporate income tax 73,697,911.27 21,659.10
Individual income tax 45,190,640.96 40,089,512.39
Urban maintenance and
8,789,299.91 1,789,459.45
construction tax
Resource tax 7,143.40
Property tax 7,910,979.72 7,611,594.27
Land use tax 4,512,474.49 4,508,520.75
Education surcharges 8,830,240.70 3,751,315.40
Other taxes 9,735,859.90 104,837,877.42
Total 301,211,845.51 173,948,529.53
Other notes:
30. Other payables
Unit: CNY
Item Ending balance Opening balance
Dividends payable 171,500.02 171,500.02
Other payables 6,095,281,248.15 7,383,051,672.28
Total 6,095,452,748.17 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:
275
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(2) Other payables
1) Presentation of other payables by nature
Unit: CNY
Item Ending balance Opening balance
Expenses payable 3,371,722,694.19 4,656,353,118.05
Margin, deposit 311,219,645.69 377,161,619.49
Project funds payable 1,524,956,021.50 1,381,458,524.66
Current accounts payable and
619,545,702.66 657,617,923.70
others
Repurchase obligations of
267,837,184.11 310,460,486.38
restricted shares
Total 6,095,281,248.15 7,383,051,672.28
2) Other significant payables with the aging over 1 year
Unit: CNY
Reasons for not repaying or
Item Ending balance
carrying forward
The Ninth Institute of Project Planning &
70,336,468.54 Project not completed
Research of China Machinery Industry (FIPPR)
Supplier 1 28,123,255.19 Project not completed
Fujie Henglu (Shenzhen) Non-financing
20,000,000.00 Margin, deposit
Guarantee Co., Ltd.
Supplier 2 5,920,000.00 Project not completed
New energy subsidy will be
paid after the national
Supplier 3 5,000,000.00
standard is met and the
application is successful.
Total 129,379,723.73
Other notes:
31. Current portion of non-current liabilities
Unit: CNY
Item Ending balance Opening balance
Current portion of lease liabilities 32,998,374.87 47,060,544.71
Total 32,998,374.87 47,060,544.71
Other notes:
276
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32. Other current liabilities
Unit: CNY
Item Ending balance Opening balance
Taxes to be written off 133,584,259.07 267,479,444.78
Total 133,584,259.07 267,479,444.78
33. Lease liabilities
Unit: CNY
Item Ending balance Opening balance
Lease payment 94,353,447.57 146,978,150.99
Unrecognized financing charges -6,540,469.64 -11,610,388.23
Current portion of lease liabilities -32,998,374.87 -47,060,544.71
Total 54,814,603.06 88,307,218.05
Other notes: The interest of lease liabilities accrued in 2022 is CNY 5,263,200, which is included in financial
expenses - interest expenses.
34. Long-term employee benefits payable
(1) Statement of long-term employee compensation payable
Unit: CNY
Item Ending balance Opening balance
I. Post-employment welfare - net
694,320,000.00 756,440,000.00
liabilities of defined benefit plan
II. Termination benefits 112,469,743.86 103,304,166.28
Current portion of long-term employee
-99,478,853.43 -95,215,119.92
remuneration payable
Total 707,310,890.43 764,529,046.36
35. Provisions
Unit: CNY
Item Ending balance Opening balance Cause
Cases responding to
Pending litigation 32,195,157.32 27,454,443.34
action
Expenses for return,
Product quality assurance 826,046,651.49 1,212,805,881.15
replacement and repair
Others 17,226,995.29 17,226,995.29 Labor social security
Total 875,468,804.10 1,257,487,319.78
Other notes, including important assumptions and estimation descriptions related to important estimated
277
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liabilities:
36. Deferred incomes
Unit: CNY
Increase in the Decrease in the Caus
Item Opening balance Ending balance
current period current period e
Government
2,473,072,814.33 1,281,203,031.25 632,290,159.65 3,121,985,685.93
subsidies
Total 2,473,072,814.33 1,281,203,031.25 632,290,159.65 3,121,985,685.93 --
Other notes: For details of government subsidies included in deferred incomes, please refer to 63 "Government
Subsidies" in VII of Section X - Financial Report.
37. Share capital
Unit: CNY
Increase/Decrease (+/-)
Share
Issue
Opening balance Transferred Ending balance
of Bonus
from Others Subtotal
New shares
Accumulation
Shares
Fund
Total - -
4,654,114,613.00 4,651,965,655.00
shares 2,148,958.00 2,148,958.00
Other notes: The share capital is decreased by CNY 2,148,958.00 in the current period, which is caused by the
repurchase and cancellation of restricted shares of the Company. For details, refer to III "Company Profile" of
Section X - Financial Report.
38. Capital reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
Capital premium (stock
9,384,981,147.23 11,582,883.62 9,373,398,263.61
premium)
Other capital reserves 1,054,383,945.95 23,306,027.18 1,077,689,973.13
Total 10,439,365,093.18 23,306,027.18 11,582,883.62 10,451,088,236.74
Other notes, including descriptions of changes and reasons for changes in the current period:
(1) The capital reserve (share premium) is decreased by CNY 11,582,883.62 in the current period, which is
caused by the repurchase and cancellation of the Company's equity incentive plan.
(2) The capital reserve (other capital reserves) is increased by CNY 23,184,433.06 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;
278
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(3) The capital reserve (other capital reserves) is increased by CNY 121,594.12 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.
39. Treasury shares
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
Treasury shares 310,460,486.38 42,623,302.27 267,837,184.11
Total 310,460,486.38 42,623,302.27 267,837,184.11
Other notes, including descriptions of changes and reasons for changes in the current period:
(1) The treasury share is decreased by CNY 28,891,460.65 in the current period, which is caused by the
cash dividends recognized by the Company in the equity incentive plan.
(2) The treasury share is decreased by CNY 13,731,841.62 in the current period, which is caused by the
repurchase and cancellation recognized by the Company in the equity incentive plan.
279
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40. Other comprehensive incomes
Unit: CNY
Amount incurred in the current period
Less: Retained
Less: Amount
Earnings
charged to
Amount Included in
other
incurred Other After-tax
comprehensive Less:
Item Opening balance before Comprehensive After-tax amount amount Ending balance
income in the Income
income Income in the attributable to parent attributable
previous tax
tax in the Previous company to minority
period but expenses
current Period and shareholders
transferred to
period Transferred in
the current
the Current
profit or loss
Period
I. Other
comprehensive
incomes that
cannot be -31,824,777.80 27,800,000.00 -4,024,777.80
reclassified
into profits or
losses
Including:
changes
arising from
re- -31,840,000.00 27,800,000.00 -4,040,000.00
measurement
of the defined
benefit plan
Other
comprehensive
incomes that
cannot be
15,222.20 15,222.20
reclassified
into profit or
loss under the
equity method
280
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II. Other
comprehensive
incomes that
will be -970,124.40 -404,218.61 -1,374,343.01
reclassified
into profits or
losses
Including:
other
comprehensive
incomes that
can be
288,891.11 -784,908.08 -496,016.97
reclassified
into profits or
losses under
the equity
method
Translatio
n difference in
foreign
-1,259,015.51 380,689.47 -878,326.04
currency
financial
statements
Total other
comprehensive -32,794,902.20 27,395,781.39 -5,399,120.81
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:
281
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41. Special reserve
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
Work safety cost 315,398,148.75 93,946,199.30 38,924,056.19 370,420,291.86
Total 315,398,148.75 93,946,199.30 38,924,056.19 370,420,291.86
Other notes, including descriptions of changes and reasons for changes in the current period:
42. Surplus reserves
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
current period current period
Statutory surplus
2,444,688,413.12 316,034,697.61 2,760,723,110.73
reserve
Discretionary
297,526,491.71 297,526,491.71
surplus reserves
Total 2,742,214,904.83 316,034,697.61 3,058,249,602.44
Explanation of surplus reserve, including changes in increase and decrease in the current period, and reasons for
changes: According to the provisions of the Company Law and the Articles of Association, the Company
withdraws the statutory surplus reserve at 10% of the net profit. If the accumulated amount of statutory surplus
reserve is more than 50% of the registered capital of the Company, it may not be withdrawn any more.
43. Undistributed profits
Unit: CNY
Item Current period Previous period
Undistributed profits at the end of the
8,434,403,352.08 7,207,573,351.05
previous period before adjustment
Undistributed profits at the beginning of
8,434,403,352.08 7,207,573,351.05
the current period after adjustment
Add: net profit attributable to owners of
367,745,445.34 3,899,854,760.39
parent company in the current period
Less: withdrawal of statutory surplus
316,034,697.61 347,697,824.86
reserve
Common stock dividends payable 3,025,174,498.45 2,325,326,934.50
Undistributed profits at the end of the
5,460,939,601.36 8,434,403,352.08
period
Details of undistributed profits at the beginning of adjustment:
282
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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.
44. Operating revenues and operating costs
Unit: CNY
Amount incurred in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Main
36,242,318,100.83 33,608,683,181.19 95,508,850,305.68 86,080,229,818.39
business
Other
2,089,428,983.05 1,643,487,705.34 3,242,392,363.87 2,729,108,950.21
business
Total 38,331,747,083.88 35,252,170,886.53 98,751,242,669.55 88,809,338,768.60
Whether the audited lower net profit before and after the deduction of non-recurring profit or loss is negative
Yes □ No
Unit: CNY
Specific Specific
Item Current Year Previous Year
Deductions Deductions
Sales revenue of Sales revenue of
complete vehicles, complete vehicles,
parts and parts and
Amount of operating components, components,
38,331,747,083.88 98,751,242,669.55
income materials, and materials, and
purchased semi- purchased semi-
finished products, finished products,
etc. etc.
Rental income Rental income
Total amount of operating
30,729,859.27 and entrusted 29,091,844.99 and entrusted
income deduction items
operating income operating income
Proportion of total amount
of operating income
0.08% 0.03%
deduction items in
operating income
I. Business income
irrelevant to main business
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1. Other business income
other than normal
operation. Income from
leasing of fixed assets,
intangible assets,
packaging materials, sales
of materials, exchange of
Rental income Rental income
non-monetary assets with
30,729,859.27 and entrusted 29,091,844.99 and entrusted
materials, operation of
operating income operating income
trusteeship management
business, etc., and income
that is included in the main
business income but
belongs to income other
than the normal operation
of listed companies.
Subtotal of business Rental income Rental income
income irrelevant to main 30,729,859.27 and entrusted 29,091,844.99 and entrusted
business operating income operating income
II. Income without
commercial substance
Subtotal of income without
0.00 None 0.00 None
commercial substance
Deduct the rental Deduct the rental
Amount of operating income and income and
38,301,017,224.61 98,722,150,824.56
income after deduction entrusted entrusted
operating income operating income
Information related to performance obligations: none
Information related to the transaction price apportioned to the remaining performance obligation: At the end of
the reporting period, the income corresponding to the performance obligations that have been signed but have
not been performed or fulfilled is CNY 607,787,793.96, of which CNY 607,787,793.96 is expected to be
recognized in 2023.
Other notes: none
45. Taxes and surcharges
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Urban maintenance and
47,145,522.88 110,645,134.98
construction tax
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Education surcharges 33,829,961.36 79,035,392.16
Resource tax 92,652.48
Property tax 46,965,136.96 54,557,465.91
Land use tax 36,781,212.64 41,555,710.05
Vehicle and vessel use tax 142,115.38 102,390.96
Stamp duty 40,861,476.54 78,300,752.42
Environmental protection tax 624,447.37 961,096.44
Others 1,448,295.47 1,541,078.58
Total 207,798,168.60 366,791,673.98
Other notes: For the calculation and payment standards of various taxes and surcharges, please see VI "Taxes"
of Section X - Financial Report.
46. Selling expenses
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Employee compensation 484,204,274.83 502,005,215.46
Product quality assurance fee 317,822,200.89 518,616,737.53
Storage fee 115,093,555.63 167,238,948.61
Travel expense 74,320,500.71 65,581,584.66
Packing cost 72,593,424.84 84,029,093.44
Rental fee 50,722,637.92 50,780,292.91
Business promotion expense 44,003,511.80 109,557,946.14
Sales service fee 35,005,162.00 39,527,177.88
Advertising expenses 19,878,977.32 39,915,332.60
Promotion fee 19,429,048.84 90,656,984.22
Depreciation cost 5,710,292.12 5,975,879.13
Consultation expenses 5,241,472.53 8,817,739.27
Insurance premium 4,668,488.93 16,953,334.46
Customer training fee 1,938,138.40 14,855,042.33
Office expenses 1,886,628.35 3,629,477.00
Business entertainment expenses 1,442,401.26 5,516,587.19
Exhibition fees 542,242.96 11,078,455.80
Others 1,379,262.31 19,608,285.75
Total 1,255,882,221.64 1,754,344,114.38
Other notes:
47. General and administrative expenses
Unit: CNY
285
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Amount incurred in the current
Item Amount in the previous period
period
Employee compensation 1,301,448,789.79 1,385,420,212.25
Fixed assets repair cost 211,593,916.90 421,297,219.90
Depreciation cost 121,826,644.98 102,725,933.94
Amortization of intangible assets 89,587,242.31 90,318,079.84
Labor outsourcing fee 59,607,050.45 75,520,054.33
Information system service fee 57,041,277.43 60,044,909.94
Kinetic energy and workshop
27,302,410.38 24,096,211.31
heating cost
Amortization of low value
25,465,015.78 17,067,816.61
consumables
Sewage charge 19,168,854.12 31,836,258.71
Rental fee 18,459,511.78 15,138,430.90
Publicity fees 17,836,870.27 31,202,402.82
Test and inspection fees 15,517,955.33 27,912,479.52
Environmental improvement fee 11,838,305.85 15,891,635.97
Travel expense 9,765,368.99 20,173,373.67
Security deposit for the disabled 8,575,779.84 8,915,852.56
Office expenses 7,352,183.57 11,016,851.19
Property insurance 6,560,789.79 7,895,007.50
Authentication fee 6,494,147.27 4,139,178.32
Others 24,897,239.79 102,985,315.40
Total 2,040,339,354.62 2,453,597,224.68
Other notes:
48. R&D expenses
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Labor cost 1,583,140,010.50 1,443,608,345.68
Test fee 451,352,248.63 893,311,833.33
Depreciation cost 229,336,754.97 174,667,164.17
Joint R&D expenses 219,738,026.91 105,746,687.20
Trial production cost 219,503,250.85 394,149,497.69
Design fee 43,312,926.32 68,961,706.46
Others 149,271,879.55 248,501,438.57
Total 2,895,655,097.73 3,328,946,673.10
Other notes:
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49. Financial expenses
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Interest expense 5,602,156.49 7,533,847.89
Less: interest income 949,854,588.85 931,991,300.64
Exchange gain or loss -245,058.21 -56,468.14
Cash discount -131,070,726.61 -321,711,694.34
Net actuarial interest 22,530,846.13 25,185,862.44
Fees and other charges 436,557.88 404,789.36
Total -1,052,600,813.17 -1,220,634,963.43
Other notes:
50. Other incomes
Unit: CNY
Amount incurred in the current
Sources of other incomes Amount in the previous period
period
Subsidy 1,630,283,090.82 334,743,067.21
Others 7,777,048.38 5,107,701.80
Total 1,638,060,139.20 339,850,769.01
51. Investment income
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Long-term equity investment
income calculated with equity 346,588,767.31 706,078,890.17
method
Gains from debt transfer 117,055,384.99
Others -109,670,548.80 -87,220,133.89
Total 236,918,218.51 735,914,141.27
Other notes: Others are mainly discounts on bank acceptance bills.
52. Credit impairment loss
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Bad debt loss of other receivables -1,635,328.06 8,849,364.51
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Loss on bad debts of long-term
-1,594,912.32 -1,275,424.32
receivables
Loss on bad debts of notes
-729,878.89 185,747.47
receivable
Loss on bad debts of accounts
4,879,276.36 -32,028,276.86
receivable
Total 919,157.09 -24,268,589.20
Other notes:
53. Asset impairment loss
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
I. Inventory depreciation provision
and contract performance cost -418,448,406.89 -221,420,995.50
impairment provision
II. Loss from fixed assets
-10,230,753.57 -1,806,400.04
impairment
III. Impairment Loss of
-2,000,913.31
Construction in Progress
IV. Loss from contractual asset
4,390,582.21 -4,552,687.09
impairment
Total -424,288,578.25 -229,780,995.94
Other notes:
54. Income from assets disposal
Unit: CNY
Amount incurred in the current
Sources of income from assets disposal Amount in the previous period
period
Gains from disposal of fixed assets ("-"
118,681,219.23 458,484.79
for loss)
Gains from disposal of intangible assets
752,349,888.83
("-" for loss)
Total 871,031,108.06 458,484.79
55. Non-operating revenues
Unit: CNY
Item Amount incurred in the Amount in the previous Amount included in
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current period period current non-recurring
profits and losses
Unpayable amount
135,470,008.26 27,812,439.97 135,470,008.26
recognized
Income from compensation,
liquidated damages and 14,867,839.76 18,894,668.64 14,867,839.76
penalties
Gains from damage and
scrapping of non-current 1,172,055.53 1,775,143.41 1,172,055.53
assets
Others 2,487,290.88 6,795,790.84 2,487,290.88
Total 153,997,194.43 55,278,042.86 153,997,194.43
56. Non-operating expenses
Unit: CNY
Amount included in
Amount incurred in the Amount in the previous current non-
Item
current period period recurring profits and
losses
Donation 19,050,000.00 10,749,529.16 19,050,000.00
Losses from damage and
3,340,608.37 14,479,728.92 3,340,608.37
scrapping of non-current assets
Expenditure of liquidated
4,057,445.84 1,889,696.78 4,057,445.84
damages and penalties
Others 119,683.80 14,289.92 119,683.80
Total 26,567,738.01 27,133,244.78 26,567,738.01
Other notes:
57. Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Current income tax expenses 239,694,863.79 -31,685,154.45
Deferred tax expenses -424,868,640.17 241,008,180.31
Total -185,173,776.38 209,323,025.86
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(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount incurred in the current period
Total profits 182,571,668.96
Income tax expense calculated at statutory/applicable
45,642,917.24
tax rate
Effect of applying different tax rates by subsidiaries 136,991,139.70
Effect of adjustment to income tax of previous periods 44,017,955.96
Effect of non-deductible costs, expenses and losses 26,950,283.58
Effects of deductible temporary differences or
deductible losses of deferred income tax assets 15,252,429.30
unrecognized in the current period
Profit or loss of joint ventures and associated
-88,406,530.27
enterprises calculated by equity method
Income exempted from taxation (to be listed with “-”) -1,050,039.60
Effect of change in tax rate on the balance of deferred
-567,588.33
tax at the beginning of the period
Tax effect of R&D expenses plus deduction (to be
-362,782,459.71
listed with "-")
Others -1,221,884.25
Income tax expenses -185,173,776.38
Other notes:
58. Other comprehensive incomes
For details, refer to 40 in VII "Notes to Consolidated Financial Statements" of Section X - Financial Report.
59. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Government subsidies received 1,869,848,621.04 507,552,396.89
Withholding costs 399,036,119.74 574,890,927.05
Lease expenses received 36,296,614.49 39,922,901.11
Penalties and indemnities received 7,810,168.36 9,928,728.23
Refund of handling fees 1,523,773.84 3,806,362.37
Recovery of reserve fund 2,240,229.10 2,785,287.71
Other current accounts 37,594,773.23 49,367,623.69
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Total 2,354,350,299.80 1,188,254,227.05
Description of other cash received related to operating activities:
(2) Other cash paid related to operating activities
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Out-of-pocket expenses 992,021,968.62 1,699,820,112.20
Current account 483,929,928.94 448,736,222.38
Donations 18,750,000.00
Total 1,494,701,897.56 2,148,556,334.58
Description of other cash paid related to operating activities:
(3) Other cash received related to investing activities
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Interest received 798,551,894.65 986,062,742.99
Fixed deposits 3,607,760,929.40
Total 798,551,894.65 4,593,823,672.39
Description of other cash received related to investing activities:
(4) Other cash paid related to financing activities
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Donations 10,350,000.00
Principal and interest on lease
55,183,852.56 45,192,434.20
liabilities
Total 55,183,852.56 55,542,434.20
Description of other cash paid related to financing activities:
60. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: CNY
Amount in the current Amount of the Previous
Supplementary Information
period Period
291
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1. Reconciliation of net profit to cash flows from
operating activities
Net Profit 367,745,445.34 3,899,854,760.39
Add: provision for impairment of assets 423,369,421.16 254,049,585.14
Depreciation/consumption of fixed assets, oil and
1,529,451,202.97 1,377,847,606.20
gas assets and bearer biological assets
Depreciation of right-of-use asset 52,841,739.81 50,442,344.29
Amortization of intangible assets 172,902,609.68 152,490,048.41
Amortization of long-term deferred expenses 204,158.64 204,158.64
Losses from disposal of fixed assets, intangible
assets and other long-term assets (incomes to be listed -871,031,108.06 -458,484.79
with "-")
Loss from retirement of fixed assets (incomes to
2,168,552.84 12,704,585.51
be listed with “-”)
Loss from changes in fair value (incomes to be
listed with “-”)
Financial expenses (incomes to be listed with “-”) -944,252,432.36 -924,457,452.75
Investment loss (incomes to be listed with “-”) -346,588,767.31 -823,904,762.50
Decreases of deferred income tax assets (increases
-481,053,393.95 117,351,274.94
to be listed with “-”)
Increases of deferred income tax liabilities
56,184,753.78 123,656,905.37
(decrease to be listed with “-”)
Decrease of inventory (increase to be listed with
2,466,932,226.53 10,473,313,309.65
“-”)
Decreases of operating receivables (increase to be
2,956,699,661.76 8,260,467,764.57
listed with “-”)
Increase in operating payables (decrease to be
-11,224,753,054.89 -7,945,279,292.25
listed with “-”)
Others 703,935,014.71 174,840,928.34
Net cash flows from operating activities -5,135,243,969.35 15,203,123,279.16
2. Major investment and financing activities not related to
cash deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets under financial lease
3. Net changes in cash and cash equivalents:
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Ending balance of cash 20,697,669,726.18 30,542,676,891.89
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 -9,845,007,165.71 15,755,996,673.07
(2) Composition of cash and cash equivalents
Unit: CNY
Item Ending balance Opening balance
I. Cash 20,697,669,726.18 30,542,676,891.89
Cash at bank available for
20,697,669,726.18 30,542,676,891.89
payments at any time
II. Ending balance of cash and cash
20,697,669,726.18 30,542,676,891.89
equivalents
Other notes:
61. Assets with restricted ownership or use right
Unit: CNY
Item Closing book value Restriction reasons
Housing maintenance fund,
Monetary capital 50,667,983.38 security deposit for three types of
personnel, frozen funds
Total 50,667,983.38
Other notes:
62. Foreign currency monetary items
(1) Monetary items for foreign currency
Unit: CNY
Closing balance of Closing balance of CNY
Item Exchange rate
foreign currency converted
Monetary capital
Including: U.S. dollar
Euro 1,873,085.58 7.4229 13,903,726.95
HK dollar
Accounts receivable
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Including: U.S. dollar
Euro
HK dollar
Long-term borrowings
Including: U.S. dollar
Euro
HK dollar
Other notes:
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.
(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
63. Government subsidy
(1) Basic information of government subsidies
Unit: CNY
Amount Included in the
Type Amount Presented Items
Current Profit and Loss
Government subsidies 3,121,985,685.93 Other income 632,290,159.65
(2) Refund of government subsidies
□ Applicable Not applicable
VIII. Changes in Consolidation Scope
FAW Jiefang New Energy Automotive Sales Co., Ltd, a subsidiary of the Company, merged FAW Jiefang
Automotive Sales Co., Ltd., the former subsidiary of the Company, on the base date of September 30, 2022.
294
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IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Main Shareholding
Registered Nature of Way of
Name of Subsidiary Business Proportion
address Business Acquisition
Place Direct Indirect
Business
combination
FAW Jiefang Automotive Co., Vehicle
Changchun Changchun 100.00% under
Ltd. manufacturing
common
control
Business
Vehicle combination
FAW Jiefang (Qingdao)
Qingdao Qingdao manufacturing 100.00% under
Automotive Co., Ltd.
and sales common
control
Business
Automotive combination
FAW Jiefang Dalian Diesel
Dalian Dalian engine 100.00% under
Engine Co., Ltd.
manufacturing common
control
Manufacturing Business
of automotive combination
Wuxi Dahao Power Co., Ltd. Wuxi Wuxi components 100.00% under
and common
accessories control
Business
Technology combination
FAW Austria Automobile
Austria Austria research and 100.00% under
R&D GmbH
development common
control
Investment
FAW Jiefang New Energy
Changchun Changchun Vehicle sales 100.00% and
Vehicle Sales Co., Ltd.
establishment
Explanation of the fact that the shareholding proportion in subsidiaries is different from the proportion of voting
rights: none
Basis for holding half or less of the voting rights but still controlling the investee, and the basis for holding
more than half of the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: none
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Basis for determining whether the Company is an agent or a principal: none
Other notes: none
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 Registered Nature of
Business in Joint
Associated Enterprises address Business
Place Direct Indirect Ventures or
Associated
Enterprises
First Automobile Finance Co., Financial Equity
Changchun Changchun 21.84%
Ltd. services method
Sanguard Automobile Insurance Financial Equity
Changchun Changchun 17.50%
Co., Ltd. insurance method
FAW Changchun Ansteel Steel
Industrial Equity
Processing and Distribution Co., Changchun Changchun 40.00%
manufacturing method
Ltd.
FAW Changchun Baoyou Steel
Industrial Equity
Processing and Distribution Co., Changchun Changchun 21.81%
manufacturing method
Ltd.
Manufacturing
of automotive
Changchun Wabco Automotive Equity
Changchun Changchun components 40.00%
Control System Co., Ltd. method
and
accessories
Application
software
Suzhou Zhito Technology Co., Equity
Suzhou Suzhou research and 26.92%
Ltd. method
test
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
Foshan Diyiyuan New Energy Foshan Foshan Manufacturing 45.00% Equity
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Technology Co., Ltd. and technical method
services
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different
from the proportion of voting rights: there is no difference between the shareholding proportion and the
proportion of voting rights.
Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of
voting rights but without significant influence: The Company holds 17.50% of the shares of Sanguard
Automobile Insurance Co., Ltd., but it sends one director to the 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 Changchun FAW Changchun
FAW Jiefang Fujie
Sanguard Ansteel Steel Wabco Baoyou Steel Suzhou Zhito
First Automobile (Tianjin)
Automobile Processing and Automotive Processing and Technology Co., SmartLink
Finance Co., Ltd. Technology Industry
Insurance Co., Ltd. Distribution Co., Control System Distribution Co., Ltd.
Co., Ltd.
Ltd. Co., Ltd. Ltd.
Current
34,615,907,095.53 2,172,822,754.87 231,520,871.50 19,053,367.45 427,768,781.91 638,977,641.34 931,332,176.60 157,591,221.86
assets
Non-
current 107,957,446,335.83 732,633,048.50 66,900,185.87 27,097,843.55 62,831,909.92 64,737,895.14 293,708,044.88 7,744,508.63
assets
Total
142,573,353,431.36 2,905,455,803.37 298,421,057.37 46,151,211.00 490,600,691.83 703,715,536.48 1,225,040,221.48 165,335,730.49
assets
Current
120,256,125,824.02 510,326,378.57 80,755,484.41 2,930,795.76 286,304,062.71 346,619,144.05 672,380,337.39 164,518,379.90
liabilities
Non-
current 1,561,324,948.51 1,246,437,069.12 3,175,522.27 633,398,618.35 181,734,209.97
liabilities
Total
121,817,450,772.53 1,756,763,447.69 80,755,484.41 2,930,795.76 289,479,584.98 980,017,762.40 854,114,547.36 164,518,379.90
liabilities
Net Assets 20,755,902,658.83 1,148,692,355.68 217,665,572.96 43,220,415.24 201,121,106.85 -276,302,225.92 370,925,674.12 817,350.59
Minority
1,182,641,203.70
equity
Equity
attributabl
e to 19,573,261,455.13 1,148,692,355.68 217,665,572.96 43,220,415.24 201,121,106.85 -276,302,225.92 370,925,674.12 817,350.59
shareholde
rs of the
parent
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company
Shares of
net assets
calculated
by 4,274,663,288.97 201,021,162.24 87,066,229.18 17,288,166.13 43,856,468.58 -74,380,559.22 37,092,567.41 286,072.71
shareholdi
ng
proportion
Adjustme
-4,625,319.38 74,380,559.22
nts
-Goodwill
-
Unrealize
d profits
of internal
transactio
ns
-Others
Book
value of
equity
investmen 4,270,037,969.59 201,021,162.24 87,066,229.18 17,288,166.13 43,856,468.58 37,092,567.41 286,072.71
t in
associated
enterprises
Fair value
of equity
investmen
t in
associated
enterprises
with
public
offer
Operating
6,570,745,844.89 705,195,878.73 386,986,775.78 2,799,151.03 1,393,101,224.13 110,953,140.73 1,272,122,747.15 183,253,178.35
income
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Net Profit 1,806,213,013.58 34,541,984.81 9,105,377.20 -7,532,897.41 32,174,554.00 -233,424,185.08 11,260,966.79 -80,823,617.88
Net profit
from
discontinu
ed
operations
Other
comprehe
-448,924.02 -3,924,304.00
nsive
incomes
Total
comprehe
1,805,764,089.56 30,617,680.81 9,105,377.20 -7,532,897.41 32,174,554.00 -233,424,185.08 11,260,966.79 -80,823,617.88
nsive
income
Dividends
received
from
associated
429,182,504.29 17,920,972.75 8,567,040.00 6,300,012.21
enterprises
in the
current
year
Opening Balance / Amount Incurred in Previous Period
FAW Changchun Changchun FAW Changchun
FAW Jiefang Fujie
Sanguard Ansteel Steel Wabco Baoyou Steel Suzhou Zhito
First Automobile (Tianjin)
Automobile Processing and Automotive Processing and Technology Co., SmartLink
Finance Co., Ltd. Technology Industry
Insurance Co., Ltd. Distribution Co., Control System Distribution Co., Ltd.
Co., Ltd.
Ltd. Co., Ltd. Ltd.
Current
40,131,178,525.09 1,969,614,739.80 244,723,023.42 23,309,549.83 372,141,757.88 148,696,572.21 462,222,981.21 169,220,705.74
assets
Non-current
102,242,717,942.06 963,760,754.36 72,149,193.36 30,290,681.55 75,445,516.96 50,229,659.04 48,836,246.18 7,677,314.57
assets
Total assets 142,373,896,467.15 2,933,375,494.16 316,872,216.78 53,600,231.38 447,587,274.84 198,926,231.25 511,059,227.39 176,898,020.31
Current 115,901,925,957.98 351,776,062.47 80,678,406.33 2,846,918.73 245,495,948.34 122,890,098.03 159,239,378.61 106,172,619.73
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liabilities
Non-current
5,338,477,309.41 1,361,119,198.26 4,253,586.77 124,728,570.49
liabilities
Total
121,240,403,267.39 1,712,895,260.73 80,678,406.33 2,846,918.73 249,749,535.11 247,618,668.52 159,239,378.61 106,172,619.73
liabilities
Net Assets 21,133,493,199.76 1,220,480,233.43 236,193,810.45 50,753,312.65 197,837,739.73 -48,692,437.27 351,819,848.78 70,725,400.58
Minority
1,234,473,342.18 178,219.62
equity
Equity
attributable
to
shareholder 19,899,019,857.58 1,220,480,233.43 236,193,810.45 50,753,312.65 197,837,739.73 -48,692,437.27 351,819,848.78 70,547,180.96
s of the
parent
company
Shares of
net assets
calculated
4,345,806,643.76 213,584,040.85 94,477,524.18 20,301,325.09 43,140,497.54 -14,896,347.92 35,181,984.88 24,691,513.34
by
shareholdin
g proportion
Adjustment
-4,625,319.38 -8,567,040.00 14,896,347.92 2,743,501.48
s
-Goodwill
-Unrealized
profits of
internal
transactions
-Others
Book value
of equity
investment 4,341,181,324.38 213,584,040.85 85,910,484.18 20,301,325.09 43,140,497.54 35,181,984.88 27,435,014.82
in
associated
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enterprises
Fair value
of equity
investment
in
associated
enterprises
with public
offer
Operating
9,178,061,752.35 663,554,176.26 705,248,229.08 14,825.50 1,628,707,611.52 105,820,137.09 1,697,371,170.74 163,906,034.86
income
Net Profit 3,641,249,394.63 128,006,948.20 14,499,015.62 -6,734,775.40 32,101,318.76 -134,493,134.39 4,326,298.56 -23,864,699.82
Net profit
from
discontinue
d operations
Other
comprehens -159,639.28
ive incomes
Total
comprehens 3,641,089,755.35 128,006,948.20 14,499,015.62 -6,734,775.40 32,101,318.76 -134,493,134.39 4,326,298.56 -23,864,699.82
ive income
Dividends
received
from
associated 516,053,003.83 17,763,787.54 4,907,799.92
enterprises
in the
current year
Other notes:
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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 -74,380,559.22 -89,276,907.14
Co., Ltd.
Other notes:
X. 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, and lease
liabilities. Details of each financial instrument have been disclosed in relevant notes. The risks related to these
financial instruments and the risk management policies adopted by the Company to reduce these risks are
described below. The management of the Company 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 book value of each financial asset in the
balance sheet. The Company does not provide any other guarantee that may expose the Company to credit risk.
For the accounts receivable of the Company, the accounts receivable of the top five clients account for 63.06%
of the Company's total accounts receivable (61.26% in 2021); for other accounts receivable of the Company, the
amounts owed by the five biggest debtors account for 72.86% of the total other accounts receivable (25.59% in
2021).
(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. As of December 31, 2022, the unused bank credit line of the Company was CNY 20.75
billion (which was CNY 18.1 billion as of December 31, 2021).
(3) Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial
instruments due to the changes in market price, including interest rate risk, exchange rate risk and other price
risks.
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Interest rate risk
The risk of changes in cash flow of financial instruments caused by changes in interest rates of the Company is
mainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floating
interest rates on these loans.
Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market interest rates
affect interest income or expenses on variable rate financial instruments.
The Company had no interest-bearing debts such as bank loans as of December 31, 2022.
Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due
to change in foreign exchange rate. 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 December 31, 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.
The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by total
assets). As at December 31, 2022, the asset-liability ratio of the Group is 58.22% (62.39% as at December 31,
2021).
XI. Disclosure of Fair Value
According to the lowest level input that is significant to the fair value measurement as a whole, the fair value
level can be divided into:
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Level I: Quotations for the same assets or liabilities in active markets (unadjusted).
Level II: Observable input values other than market quotations for assets or liabilities in the first level are used
directly (i.e. price) or indirectly (i.e. derived from price).
Level III: Any input value (non-observable input value) not based on observable market data is used for assets
or liabilities.
The Company's financial assets and financial liabilities measured at amortized cost mainly include monetary
capital, notes receivable, accounts receivable, other receivables, notes payable, accounts payable, other payables,
etc.
XII. Related Parties and Related Party Transactions
1. Information about parent company of the Company
Shareholding Voting Right
Name of Proportion of Proportion of
Registered Nature of
Parent Registered Capital the Parent the Parent
address Business
Company Company in the Company in the
Company Company
Production and
FAW Car sales of
Changchun CNY 78,000,000,000.00 65.77% 65.77%
Co., Ltd. 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 Article 1 in IX "Equity 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 Article 2 in IX
"Equity in Other Entities" of Section X "Financial Report".
Other joint ventures or associated enterprises that have related party transactions with the Company in the
current period or in the previous period, resulting in balance, are as follows:
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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
Foshan Diyiyuan New Energy Technology Co., Ltd. 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
FAW Harbin Light Automobile Co., Ltd. The same ultimate controlling party
China FAW Group Import & Export Co., Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co., Ltd. The same ultimate controlling party
FAW Foundry Co., Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co., Ltd. The same ultimate controlling party
FAW 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 (Dalian) International Logistics Co., Ltd. The same ultimate controlling party
FAW Mold Manufacturing Co., Ltd. The same ultimate controlling party
First Automobile Finance Co., Ltd. The same ultimate controlling party
Sanguard Automobile Insurance Co., Ltd. The same ultimate controlling party
FAW Asset Management Co., Ltd. The same ultimate controlling party
Changchun FAW International Tendering Co., Ltd. The same ultimate controlling party
Wuxi Sawane Spring Co., Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co., Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co.,
The same ultimate controlling party
Ltd.
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Qiming Information Technology Co., Ltd. The same ultimate controlling party
Dalian Qiming Haitong Information Technology Co.,
The same ultimate controlling party
Ltd.
Chengdu Qiming Chunrong Information Technology
The same ultimate controlling party
Co., Ltd.
Changchun Automotive Test Center Co., Ltd. The same ultimate controlling party
Changchun FAW Automobile Culture Communication
The same ultimate controlling party
Co., Ltd.
FAW Bestune Car Co., Ltd. The same ultimate controlling party
FAW-Volkswagen Automotive Co., Ltd. The same ultimate controlling party
Changchun Chengxin Second-hand Vehicles
The same ultimate controlling party
Distribution Co., Ltd.
FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. The same ultimate controlling party
Cinda FAW Commercial Factoring Co., Ltd. Other related parties
FAW Hongta Yunnan Automobile Manufacturing Co.,
Other related parties
Ltd.
Changchun FAWSN Group Co., Ltd. Other related parties
Changchun FAWAY Automobile Components Co.,
Other related parties
Ltd.
FAW Changchun Communication Technology Co.,
Other related parties
Ltd.
FAW Jilin Automobile Co., Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
Changchun FAW United Casting Company Other related parties
Jilin CNPC Hongrun Energy Development Co., Ltd. Other related parties
Changchun Yidong Clutch Co., Ltd. Other related parties
Fawer Auto Parts Co., Ltd. Other related parties
China Unicom Intelligent Network Technology Co.,
Other related parties
Ltd.
Jilin Checheng Garden Hotel Co., Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co., Ltd.
Wuxi CRRC New Energy Automobile Co., Ltd. Other related parties
FAW Changchun Comprehensive Utilization Co., Ltd. Other related parties
FAW Changchun Industrial Shuixing Rubber and
Other related parties
Plastic Products Co., Ltd.
FAW Changchun Yanfeng Visteon Electronics Co.,
Other related parties
Ltd.
FAW Changchun Industrial Sodis Management
Other related parties
Service Co., Ltd.
Shandong Pengxiang Automobile Co., Ltd. Other related parties
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FAW Changchun Tianqi Process Equipment
Other related parties
Engineering Co., Ltd.
Hongqi Intelligent Mobility Technology (Beijing) Co.,
Other related parties
Ltd.
Grammer Vehicle Parts (Harbin) Co., Ltd. Other related parties
Grammer Vehicle Parts (Qingdao) Co., Ltd. Other related parties
United Fuel Cell System R&D (Beijing) Co., Ltd. Other related parties
Volkswagen FAW Engine (Dalian) Co., Ltd. Other related parties
Harbin FAW Transmission Co., Ltd. Other related parties
FAW Jingye Engine Co., Ltd. Other related parties
Changchun FAW Pratt Technology Co., Ltd. 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
Amount incurred in Approved Transaction Amount in the
Related Parties Related
the current period Transaction Amount Amount previous period
Transaction
Exceeded
Goods purchase
Fawer Auto
and reception of 1,040,303,880.14 2,737,930,000.00 No 2,741,284,105.26
Parts Co., Ltd.
labor services
Goods purchase
FAW Foundry
and reception of 520,403,729.13 1,452,440,000.00 No 1,572,069,294.37
Co., Ltd.
labor services
Shandong
Goods purchase
Pengxiang
and reception of 333,494,286.96 922,870,000.00 No 821,724,503.38
Automobile
labor services
Co., Ltd.
Changchun
FAWAY Goods purchase
Automobile and reception of 320,827,961.46 526,170,000.00 No 738,034,626.36
Components labor services
Co., Ltd.
Goods purchase
FAW Forging
and reception of 296,850,949.41 917,570,000.00 No 867,388,771.15
(Jilin) Co., Ltd.
labor services
Changchun Goods purchase 285,115,158.83 963,850,000.00 No 995,936,136.26
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FAWSN Group and reception of
Co., Ltd. labor services
The Ninth
Institute of
Project
Planning & Goods purchase
Research of and reception of 280,744,044.56 825,150,000.00 No 494,147,083.09
China labor services
Machinery
Industry
(FIPPR)
Goods purchase
FAW Car Co.,
and reception of 248,344,825.51 551,300,000.00 No 450,060,804.31
Ltd.
labor services
FAW Logistics Goods purchase
(Qingdao) Co., and reception of 247,090,559.60 422,000,000.00 No 538,585,077.33
Ltd. labor services
Goods purchase
FAW Logistics
and reception of 242,651,156.76 560,080,000.00 No 474,978,528.38
Co., Ltd.
labor services
FAW
Changchun
Goods purchase
Ansteel Steel
and reception of 191,014,909.94 418,270,000.00 No 464,748,462.43
Processing and
labor services
Distribution
Co., Ltd.
Changchun Goods purchase
Yidong Clutch and reception of 165,424,937.00 570,710,000.00 No 565,851,422.77
Co., Ltd. labor services
Qiming
Goods purchase
Information
and reception of 150,551,880.46 334,260,000.00 No 263,624,372.93
Technology
labor services
Co., Ltd.
FAW
Changchun
Goods purchase
Baoyou Steel
and reception of 118,225,857.01 266,470,000.00 No 295,908,077.92
Processing and
labor services
Distribution
Co., Ltd.
Goods purchase
SmartLink and reception of 113,917,493.08 271,710,000.00 No 113,865,430.99
labor services
Changchun Goods purchase 68,056,015.91 123,190,000.00 No 120,039,323.56
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Automotive and reception of
Test Center Co., labor services
Ltd.
FAW Logistics
(Changchun
Goods purchase
Lushun)
and reception of 57,890,606.84 145,350,000.00 No 154,565,452.22
Storage and
labor services
Transportation
Co., Ltd.
FAW Mold Goods purchase
Manufacturing and reception of 56,026,450.00 148,050,000.00 No 83,970,079.47
Co., Ltd. labor services
Grammer
Goods purchase
Vehicle Parts
and reception of 53,513,930.54 54,000,000.00 No
(Qingdao) Co.,
labor services
Ltd.
FAW Harbin
Goods purchase
Light
and reception of 30,836,252.96 30,920,000.00 No 44,199,691.95
Automobile
labor services
Co., Ltd.
FAW (Dalian)
Goods purchase
International
and reception of 20,212,557.25 32,910,000.00 No 28,299,238.86
Logistics Co.,
labor services
Ltd.
Sanguard
Goods purchase
Automobile
and reception of 16,947,602.02 26,900,000.00 No 24,825,377.17
Insurance Co.,
labor services
Ltd.
FAW Jilin Goods purchase
Automobile and reception of 12,574,740.22 13,000,000.00 No
Co., Ltd. labor services
Grammer
Goods purchase
Vehicle Parts
and reception of 12,230,604.49 13,000,000.00 No
(Harbin) Co.,
labor services
Ltd.
FAW
Changchun Goods purchase
Communication and reception of 10,715,872.47 12,920,000.00 No 8,083,875.01
Technology labor services
Co., Ltd.
Hainan Tropical Goods purchase
Automobile and reception of 9,359,403.67 16,000,000.00 No 7,857,116.57
Test Co., Ltd. labor services
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FAW
Changchun Goods purchase
Automobile and reception of 4,426,582.97 10,820,000.00 No 7,972,453.00
Trading Service labor services
Co., Ltd.
FAW
Changchun Goods purchase
Comprehensive and reception of 8,500,177.30 16,490,000.00 No 12,064,523.67
Utilization Co., labor services
Ltd.
FAW Hongta
Yunnan Goods purchase
Automobile and reception of 6,792,968.69 17,400,000.00 No 32,130,092.57
Manufacturing labor services
Co., Ltd.
FAW
Changchun
Goods purchase
Industrial Sodis
and reception of 6,643,236.02 17,540,000.00 No 17,838,447.66
Management
labor services
Service Co.,
Ltd.
China FAW Goods purchase
Group Import & and reception of 175,338,956.45 959,820,000.00 No 101,087,586.03
Export Co., Ltd. labor services
Changchun Faw Goods purchase
Service Trade and reception of 5,847,490.52 16,600,000.00 No 8,409,593.47
Co., Ltd. labor services
Changchun
Automotive
Economic and
Technological
Goods purchase
Development
and reception of 4,221,956.56 6,460,000.00 No 5,593,707.88
Zone
labor services
Environmental
Sanitation and
Cleaning Co.,
Ltd.
FAW
Changchun
Goods purchase
Tianqi Process
and reception of 3,997,546.96 4,160,000.00 No 1,102,874.97
Equipment
labor services
Engineering
Co., Ltd.
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Goods purchase
Wuxi Sawane
and reception of 3,885,303.33 4,600,000.00 No 11,976,685.30
Spring Co., Ltd.
labor services
Wuxi CRRC
Goods purchase
New Energy
and reception of 3,652,485.85 3,800,000.00 No
Automobile
labor services
Co., Ltd.
Changchun
Wabco Goods purchase
Automotive and reception of 2,474,003.64 2,600,000.00 No 14,825.50
Control System labor services
Co., Ltd.
Changchun
Goods purchase
FAW United
and reception of 2,061,592.32 5,730,000.00 No 6,371,330.43
Casting
labor services
Company
Suzhou Zhito Goods purchase
Technology and reception of 1,488,321.73 64,040,000.00 No 9,343,623.35
Co., Ltd. labor services
FAW
Changchun
Goods purchase
Yanfeng
and reception of 1,407,288.17 5,940,000.00 No 5,162,703.69
Visteon
labor services
Electronics Co.,
Ltd.
Goods purchase
FAW Group and reception of 1,014,319.61 5,750,000.00 No 5,493,546.17
labor services
Dalian Qiming
Haitong Goods purchase
Information and reception of 986,233.96 1,040,000.00 No 1,065,866.08
Technology labor services
Co., Ltd.
FAW Asset Goods purchase
Management and reception of 919,804.06 1,700,000.00 No 1,213,431.45
Co., Ltd. labor services
FAW
Changchun
Industrial Goods purchase
Shuixing and reception of 552,191.07 4,980,000.00 No 5,559,604.54
Rubber and labor services
Plastic Products
Co., Ltd.
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Hongqi
Intelligent
Goods purchase
Mobility
and reception of 504,696.88 1,790,000.00 No 532,339.04
Technology
labor services
(Beijing) Co.,
Ltd.
Chengdu
Qiming
Goods purchase
Chunrong
and reception of 264,150.96 430,000.00 No 430,722.87
Information
labor services
Technology
Co., Ltd.
Changchun
FAW
Goods purchase
Automobile
and reception of 145,434.85 150,000.00 No
Culture
labor services
Communication
Co., Ltd.
China Unicom
Intelligent Goods purchase
Network and reception of 95,449.06 200,000.00 No 6,344,440.69
Technology labor services
Co., Ltd.
Jilin CNPC
Hongrun Goods purchase
Energy and reception of 58,203.77 60,000.00 No
Development labor services
Co., Ltd.
Changchun
FAW Goods purchase
International and reception of 28,766.98 30,000.00 No 262,875.00
Tendering Co., labor services
Ltd.
Jilin Checheng Goods purchase
Garden Hotel and reception of 15,300.00 20,000.00 No 11,537.53
Co., Ltd. labor services
FAW-
Goods purchase
Volkswagen
and reception of No 464,030.00
Automotive
labor services
Co., Ltd.
Statement of Goods Sales/Rendering of Services
Unit: CNY
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Content of Related Amount incurred in Amount in the
Related Parties
Transaction the current period previous period
China FAW Group Import & Export Co., Ltd. Sales of goods 5,921,179,357.98 2,417,369,133.62
FAW Jiefang Fujie (Tianjin) Technology
Sales of goods 842,004,381.84 1,424,674,632.64
Industry Co., Ltd.
FAW Car Co., Ltd. Sales of goods 223,777,186.60 29,330,561.46
Changchun Faw Service Trade Co., Ltd. Sales of goods 190,597,521.42 3,023,114,609.80
FAW Changchun Comprehensive Utilization
Sales of goods 139,052,616.83 284,372,779.64
Co., Ltd.
Suzhou Zhito Technology Co., Ltd. Sales of goods 47,059,399.63 52,517,885.83
FAW Hongta Yunnan Automobile
Sales of goods 19,099,950.39 56,039,962.85
Manufacturing Co., Ltd.
FAW Changchun Automobile Trading Service
Sales of goods 12,035,398.26
Co., Ltd.
FAW Asset Management Co., Ltd. Sales of goods 11,266,794.44 11,472,242.42
FAW Logistics (Qingdao) Co., Ltd. Sales of goods 10,787,369.81 11,519,887.68
FAW Harbin Light Automobile Co., Ltd. Sales of goods 8,285,242.45 101,203,249.25
Changchun Automotive Test Center Co., Ltd. Sales of goods 5,364,922.47 8,242,906.12
FAW Foundry Co., Ltd. Sales of goods 4,843,899.93 62,343,810.34
Shandong Pengxiang Automobile Co., Ltd. Sales of goods 1,179,878.53 100,358.49
Fawer Auto Parts Co., Ltd. Sales of goods 925,014.61 176,423.69
FAW Logistics (Changchun Lushun) Storage
Sales of goods 868,938.00 6,997,806.39
and Transportation Co., Ltd.
United Fuel Cell System R&D (Beijing) Co.,
Sales of goods 817,250.62 658,369.30
Ltd.
FAW Logistics Co., Ltd. Sales of goods 492,920.35
Changchun Yidong Clutch Co., Ltd. Sales of goods 315,024.68 1,573,438.90
FAW Bestune Car Co., Ltd. Sales of goods 176,415.09 404,149.88
Cinda FAW Commercial Factoring Co., Ltd. Sales of goods 155,115.86 278,942.07
FAW Jilin Automobile Co., Ltd. Sales of goods 132,278.36 250,787.55
FAW-Volkswagen Automotive Co., Ltd. Sales of goods 104,603.78 433,358.49
Changchun Chengxin Second-hand Vehicles
Sales of goods 52,256.64 533,677.07
Distribution Co., Ltd.
FAW Changchun Yanfeng Visteon Electronics
Sales of goods 39,774.12 59,629.64
Co., Ltd.
Wuxi Sawane Spring Co., Ltd. Sales of goods 10,377.36 10,000.00
FAW Changchun Baoyou Steel Processing and
Sales of goods 1,056,155.96
Distribution Co., Ltd.
FAW Group Sales of goods 379,633.02
FAW Forging (Jilin) Co., Ltd. Sales of goods 4,357,708.18
Volkswagen FAW Engine (Dalian) Co., Ltd. Sales of goods 755,320.50
Changchun Wabco Automotive Control System Sales of goods 593,966.70
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Co., Ltd.
FAW (Dalian) International Logistics Co., Ltd. Sales of goods 225,222.44
FAW Changchun Ansteel Steel Processing and
Sales of goods 212,212.88
Distribution Co., Ltd.
China Unicom Intelligent Network Technology
Sales of goods 106,654.90
Co., Ltd.
Changchun FAWSN Group Co., Ltd. Sales of goods 98,936.81
Qiming Information Technology Co., Ltd. Sales of goods 20,500.00
FAW Changchun Industrial Shuixing Rubber
Sales of goods 11,320.75
and Plastic Products Co., Ltd.
FAW Changchun Communication Technology
Sales of goods 15,596.36
Co., Ltd.
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company as the lessor:
Unit: CNY
Lease Income Lease Income
Name of the Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
Changchun Automotive Test Center Houses, buildings and
5,356,513.01 5,350,602.28
Co., Ltd. land
FAW Car Co., Ltd. Houses and buildings 3,437,949.10 774,875.76
FAW Changchun Baoyou Steel
Processing and Distribution Co., Houses and buildings 1,056,155.96 1,056,155.96
Ltd.
Shandong Pengxiang Automobile
Houses and buildings 754,700.92
Co., Ltd.
Fawer Auto Parts Co., Ltd. Houses and buildings 395,405.52 190,704.42
FAW Group Houses and buildings 173,884.11 379,633.02
FAW Changchun Communication
Land use right 99,999.97
Technology Co., Ltd.
The Company as the lessee:
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Unit: CNY
Rental expenses Variable lease
for simplified payments not
short-term leases included in lease Interest Expense on Lease Increased Right-of-use
Rent Paid
and low-value liabilities Liabilities Assumed Assets
Type of asset leases (if measurement (if
Name of the applicable) applicable)
Leased
Lessor
Assets Amount Amount Amount
Amount Amount Amount Amount in
incurred incurred Amount Amount in incurred Amount in
in the in the incurred in the
in the in the incurred in the the previous in the the previous
previous previous the current previous
current current current period period current period
period period period period
period period period
Houses
FAW Car Co.,
and 11,426,735.79 13,314,933.73 1,319,118.67 812,331.91 1,712,201.81
Ltd.
buildings
FAW Changchun
Automobile
Vehicle 4,509,955.99 2,893,792.46
Trading Service
Co., Ltd.
FAW Group Land 3,913,647.70 3,548,244.71 482,040.75 652,438.90
Hongqi Intelligent
Mobility
Vehicle 1,122.88 33,409.66
Technology
(Beijing) Co., Ltd.
FAW Asset Houses
Management Co., and 157,096.00 157,096.00 7,123.68 307,068.32
Ltd. buildings
Description of related lease: The rent paid by the Company as the lessee is the lease expense recognized.
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(3) Remuneration of key management personnel
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Remuneration of key management
23,496,500.00 22,252,500.00
personnel
(4) Other related transactions
Interest income and interest expense Unit: CNY
Content of Related Amount incurred in the Amount in the previous
Related Parties
Transaction current period period
First Automobile Finance Co.,
Interest income 305,093,442.72 522,833,172.84
Ltd.
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
Ending balance Opening balance
Project name Related Parties Bad debt Bad debt
Book balance Book balance
provision provision
China FAW Group
Accounts 320,294,820.
Import & Export Co., 410,938.55 133,665,249.08 133,665.25
receivable 43
Ltd.
Accounts FAW Logistics
3,233,572.00 13,581.00
receivable (Qingdao) Co., Ltd.
Accounts Changchun Automotive
2,919,274.52 12,260.95 3,953,858.47 13,443.11
receivable Test Center Co., Ltd.
Accounts FAW Jingye Engine
1,820,957.23 1,820,957.23 1,820,957.23 1,820,957.23
receivable Co., Ltd.
Accounts
FAW Car Co., Ltd. 880,188.52 3,696.78 148,038.86 503.33
receivable
Accounts FAW Asset
469,957.39 455,062.76 1,051,901.58 2,484.47
receivable Management Co., Ltd.
United Fuel Cell
Accounts
System R&D (Beijing) 200,233.26 840.98
receivable
Co., Ltd.
Accounts FAW-Volkswagen 110,880.00 465.70 343,200.00 1,166.88
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receivable Automotive Co., Ltd.
FAW Changchun
Accounts
Yanfeng Visteon 105,367.99 11,453.28 63,207.42 214.91
receivable
Electronics Co., Ltd.
Accounts FAW Harbin Light
3,787.60 15.91 157,790.76 536.49
receivable Automobile Co., Ltd.
FAW Hongta Yunnan
Accounts 61,683,343.6
Automobile 7,544,307.53 43,738,644.78 168,532.52
receivable 9
Manufacturing Co., Ltd.
Accounts Fawer Auto Parts Co.,
58,079.00 197.47
receivable Ltd.
China FAW Group
287,527,616.
Prepayments Import & Export Co., 299,415,808.16
69
Ltd.
FAW Hongta Yunnan
20,604,798.3
Prepayments Automobile 23,451,243.21
6
Manufacturing Co., Ltd.
FAW Mold 13,751,495.2
Prepayments 11,355,895.26
Manufacturing Co., Ltd. 6
The Ninth Institute of
Project Planning &
12,786,400.0
Prepayments Research of China 31,280,800.00
0
Machinery Industry
(FIPPR)
Prepayments FAW Car Co., Ltd. 9,862,836.98
Qiming Information
Prepayments 6,853,106.60 7,041,353.80
Technology Co., Ltd.
Prepayments SmartLink 2,283,555.30 2,364,055.79
FAW Jilin Automobile
Prepayments 646,730.48
Co., Ltd.
FAW Changchun
Prepayments Communication 639,459.98
Technology Co., Ltd.
FAW Changchun Tianqi
Prepayments Process Equipment 537,315.00 537,315.00
Engineering Co., Ltd.
Other
accounts FAW Car Co., Ltd. 8,453,593.02 8,229,193.92 8,227,110.28 5,675,883.38
receivable
Other
accounts FAW Group 189,533.68 1,743.71
receivable
Other FAW Logistics Co., 146,367.32 1,346.58 59,402.96 3,439.43
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accounts Ltd.
receivable
Other
FAW Asset
accounts 135,550.51 787.06 241,717.46 10,431.31
Management Co., Ltd.
receivable
Other
FAW Forging (Jilin)
accounts 55,563.56 511.19 37,596.07 2,176.81
Co., Ltd.
receivable
Other China FAW Group
accounts Import & Export Co., 50,623.62 172.12
receivable Ltd.
Other
FAW Mold
accounts 49,165.85 452.33 79,212.46 4,586.40
Manufacturing Co., Ltd.
receivable
Other Changchun FAWAY
accounts Automobile 16,388.62 68.83
receivable Components Co., Ltd.
FAW Logistics
Other
(Changchun Lushun)
accounts 5,086.11 46.79 5,801.51 335.91
Storage and
receivable
Transportation Co., Ltd.
Other
Changchun Automotive
accounts 231.00 0.23
Test Center Co., Ltd.
receivable
(2) Payables
Unit: CNY
Project name Related Parties Ending book balance Opening book balance
Accounts
Fawer Auto Parts Co., Ltd. 144,154,473.17 169,640,260.34
payable
Accounts
FAW Logistics (Qingdao) Co., Ltd. 91,101,620.88 68,025,114.39
payable
Accounts Changchun FAWAY Automobile Components
79,486,373.63 152,148,699.11
payable Co., Ltd.
Accounts
FAW Foundry Co., Ltd. 51,984,437.61 183,830,708.06
payable
Accounts
Shandong Pengxiang Automobile Co., Ltd. 34,193,762.56 73,531,515.19
payable
Accounts
FAW Logistics Co., Ltd. 32,265,403.36 57,571,100.02
payable
Accounts
Changchun Yidong Clutch Co., Ltd. 21,092,492.24 67,047,152.21
payable
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Accounts
FAW Car Co., Ltd. 34,214,102.32 38,452,564.39
payable
Accounts
Qiming Information Technology Co., Ltd. 20,174,791.43 41,883,498.37
payable
Accounts
FAW Forging (Jilin) Co., Ltd. 18,898,210.68 220,555,696.82
payable
Accounts
FAW Harbin Light Automobile Co., Ltd. 16,170,855.51 4,172,366.61
payable
Accounts FAW Changchun Ansteel Steel Processing and
15,646,652.24 14,533,080.61
payable Distribution Co., Ltd.
Accounts
SmartLink 14,489,906.15 99,415,297.12
payable
Accounts
Changchun FAWSN Group Co., Ltd. 14,386,006.95 129,367,496.49
payable
Accounts FAW Logistics (Changchun Lushun) Storage
11,426,277.60 17,089,430.56
payable and Transportation Co., Ltd.
Accounts FAW Changchun Baoyou Steel Processing and
4,937,649.97 9,272,615.36
payable Distribution Co., Ltd.
Accounts FAW Hongta Yunnan Automobile
4,551,929.99 175,200.00
payable Manufacturing Co., Ltd.
Accounts
FAW (Dalian) International Logistics Co., Ltd. 3,851,730.60 6,106,590.35
payable
Accounts
Grammer Vehicle Parts (Qingdao) Co., Ltd. 3,402,836.35
payable
Accounts FAW Changchun Comprehensive Utilization
2,905,411.90 3,294,031.20
payable Co., Ltd.
Accounts FAW Changchun Industrial Sodis Management
2,149,473.72 2,790,797.22
payable Service Co., Ltd.
Accounts The Ninth Institute of Project Planning &
1,751,774.48 735,721.78
payable Research of China Machinery Industry (FIPPR)
Accounts FAW Changchun Automobile Trading Service
1,479,550.69 5,721,646.90
payable Co., Ltd.
Accounts
FAW Mold Manufacturing Co., Ltd. 1,121,206.34 2,434,279.91
payable
Accounts
Sanguard Automobile Insurance Co., Ltd. 1,074,463.94 1,283,140.98
payable
Accounts
Suzhou Zhito Technology Co., Ltd. 1,011,118.95 4,487,478.33
payable
Accounts
Changchun Faw Service Trade Co., Ltd. 849,829.54 2,375,954.69
payable
Accounts
Wuxi CRRC New Energy Automobile Co., Ltd. 757,023.75
payable
Accounts FAW Changchun Yanfeng Visteon Electronics 715,521.31 478,759.95
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payable Co., Ltd.
Accounts
Grammer Vehicle Parts (Harbin) Co., Ltd. 701,342.31
payable
Changchun Automotive Economic and
Accounts Technological Development Zone
630,751.44 961,433.87
payable Environmental Sanitation and Cleaning Co.,
Ltd.
Accounts
Changchun FAW United Casting Company 521,726.80 667,354.32
payable
Accounts
Changchun Automotive Test Center Co., Ltd. 316,400.00 35,547,810.00
payable
Accounts Changchun Wabco Automotive Control System
272,712.00
payable Co., Ltd.
Accounts Dalian Qiming Haitong Information
248,852.00
payable Technology Co., Ltd.
Accounts
Wuxi Sawane Spring Co., Ltd. 233,647.89 1,555,556.34
payable
Accounts FAW Changchun Communication Technology
233,570.95 843,342.80
payable Co., Ltd.
Accounts FAW Changchun Industrial Shuixing Rubber
184,682.20 676,420.56
payable and Plastic Products Co., Ltd.
Accounts Hongqi Intelligent Mobility Technology
121,039.88 16,448.28
payable (Beijing) Co., Ltd.
Accounts FAW Jiefang Fujie (Tianjin) Technology
111,795.54 156,685.65
payable Industry Co., Ltd.
Accounts Changchun FAW Automobile Culture
82,778.99
payable Communication Co., Ltd.
Accounts China Unicom Intelligent Network Technology
54,880.00 12,984.00
payable Co., Ltd.
Accounts
Hainan Tropical Automobile Test Co., Ltd. 31,977.00 437,094.00
payable
Accounts
Changchun FAW Pratt Technology Co., Ltd. 17,236.96
payable
Accounts
FAW Group 14,133.00 367,385.00
payable
Accounts FAW Changchun Tianqi Process Equipment
8,891.97
payable Engineering Co., Ltd.
Accounts
FAW Bestune Car Co., Ltd. 5,100.00
payable
Accounts
FAW Jilin Automobile Co., Ltd. 13.33 126,000.00
payable
Accounts
China FAW Group Import & Export Co., Ltd. 642,326.53
payable
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Accounts
Harbin FAW Transmission Co., Ltd. 93,627.49
payable
Accounts Chengdu Qiming Chunrong Information
159,215.21
payable Technology Co., Ltd.
Accounts
received in Changchun Automotive Test Center Co., Ltd. 1,530,824.16 1,288,392.99
advance
Accounts
received in Fawer Auto Parts Co., Ltd. 107,748.00
advance
Accounts
FAW Changchun Comprehensive Utilization
received in 38,791.52
Co., Ltd.
advance
Accounts
FAW Changchun Communication Technology
received in 17,431.19
Co., Ltd.
advance
Accounts
received in Shandong Pengxiang Automobile Co., Ltd. 205,656.00
advance
Contract FAW Jiefang Fujie (Tianjin) Technology
68,040,782.38 79,085,729.95
liabilities Industry Co., Ltd.
Contract
Changchun Faw Service Trade Co., Ltd. 15,663,935.13 36,893,039.11
liabilities
Contract
China FAW Group Import & Export Co., Ltd. 2,676,797.47 632,188.13
liabilities
Contract
Suzhou Zhito Technology Co., Ltd. 1,181,411.98 12,317,158.00
liabilities
Contract FAW Changchun Comprehensive Utilization
547,549.31 4,364,564.62
liabilities Co., Ltd.
Contract
Shandong Pengxiang Automobile Co., Ltd. 436,111.40 492,805.88
liabilities
Contract FAW Hongta Yunnan Automobile
36,704.04
liabilities Manufacturing Co., Ltd.
Contract
FAW Asset Management Co., Ltd. 20,698.19 23,388.96
liabilities
Contract FAW New Energy Vehicle Sales (Shenzhen)
7,132.74 8,060.00
liabilities Co., Ltd.
Contract
Harbin FAW Transmission Co., Ltd. 119.16 134.65
liabilities
Contract
FAW Logistics Co., Ltd. 9.88 11.16
liabilities
Other The Ninth Institute of Project Planning &
170,438,828.71 178,013,170.48
payables Research of China Machinery Industry (FIPPR)
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Other
FAW Mold Manufacturing Co., Ltd. 32,192,507.66 42,797,927.25
payables
Other
Qiming Information Technology Co., Ltd. 31,377,721.05 37,234,276.05
payables
Other FAW Jiefang Fujie (Tianjin) Technology
20,050,000.00 20,700,000.00
payables Industry Co., Ltd.
Other FAW Changchun Tianqi Process Equipment
4,361,315.10
payables Engineering Co., Ltd.
Other FAW Changchun Communication Technology
3,483,543.17 207,971.15
payables Co., Ltd.
Other
FAW Car Co., Ltd. 2,792,527.37 216,522,779.89
payables
Other
China FAW Group Import & Export Co., Ltd. 2,264,521.88 2,782,645.30
payables
Other
Shandong Pengxiang Automobile Co., Ltd. 1,040,000.00 1,050,000.00
payables
Other FAW Hongta Yunnan Automobile
831,560.00
payables Manufacturing Co., Ltd.
Other
Changchun Faw Service Trade Co., Ltd. 629,405.00 1,397,786.21
payables
Other
Fawer Auto Parts Co., Ltd. 429,040.30
payables
Other
FAW Group 371,435.96 233,303,791.17
payables
Other
SmartLink 182,000.00
payables
Other
Hainan Tropical Automobile Test Co., Ltd. 97,185.18
payables
Other
Changchun Automotive Test Center Co., Ltd. 42,616.35
payables
Other
Suzhou Zhito Technology Co., Ltd. 10,000.00
payables
Other
FAW Asset Management Co., Ltd. 3,925.62 3,925.62
payables
Other
Sanguard Automobile Insurance Co., Ltd. 274,539.31
payables
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
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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
Deposits and interests of finance company Unit: CNY
Ending Ending balance of
Project name Related Parties Content
balance the previous year
Deposits and interests of
First Automobile 13,832,934,2
Monetary capital finance company included 22,653,110,736.33
55.95
Finance Co., Ltd.
in bank deposits
XIII. Share-based Payment
1. General Conditions of Share-based Payment
Applicable □ Not Applicable
Unit: CNY
Total number of various equity instruments of the
Company granted in the current period
Total number of various equity instruments of the
Company exercised in the current period
Total number of various equity instruments of the
2,148,958.00
Company lapsed in the current period
The validity period of the incentive plan shall not
exceed 72 months from the date of the first grant of
restricted shares to the date when all restricted shares
granted to the incentive objects are released or
repurchased and canceled. In the incentive plan, three
release dates are set, which are the next day after the
Scope of the exercise price of outstanding stock
expiration of the restricted period and the first and
options of the Company at the end of the period and
second anniversary days of that day (postponed to the
the remaining contract period
first trading day after that in case of holidays). The
upper limit of the number of restricted shares released
is 33%, 33% and 34% of the total number of shares
granted to the incentive object respectively. The
release period of the reserved part shall be determined
with reference to the above principles.
Scope of the exercise price of other equity instruments
outstanding at the end of the period and the remaining None
contract period
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Other notes:
2. Equity-settled share-based payment
Applicable □ Not Applicable
Unit: CNY
Restricted shares are determined according to the
Measures for determining the fair value of equity
closing price on the grant date, and stock options are
instruments on the grant date
determined according to the B-S option pricing model.
The Company determines according to 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
Basis for determining the number of exercisable Incentive Plan of FAW JIEFANG GROUP CO., LTD.,
equity instruments the Proposal on the Regulations for Restricted Share
Incentive of FAW JIEFANG GROUP CO., LTD., and
the Proposal on Requesting the Shareholders' Meeting
to Authorize the Board of Directors to Handle Matters
Related to the Company's Restricted Share Incentive
Plan.
Reasons for significant differences between current
None
estimates and previous estimates
Aggregate amount of equity-settled share-based
77,892,583.77
payment charged to the capital reserve
Total expenses recognized by equity-settled share-
23,184,433.06
based payment in the current period
Other notes:
3. Cash-settled share-based payment
□ Applicable Not applicable
XIV. 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 December 31, 2022.
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2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Farasis Energy The Company, FAW Bestune
Changchun
Technology Car Co., Ltd., Shanghai Ruimei Contract First
Intermediate 45,702,880.00
(Ganzhou) Co., New Energy Technology Co., disputes instance
People's Court
Ltd. Ltd.
Dalateqi
Second
FAW Jiefang Automotive Sales Product People's Court
Bai Haitao 19,899,350.00 instance
Co., Ltd. liability cases of Inner
of retrial
Mongolia
Jilin Branch of
Chengdu Baojinyang Vehicle
Sanguard Insurer's Xindu District
Parts Co., Ltd., third party: Second
Automobile subrogation People's Court 18,543,550.66
FAW Jiefang Automotive Sales instance
Insurance Co., disputes of Chengdu
Co., Ltd.
Ltd.
Beijing
Beijing Hotan Automobile Beijing
Vegetable Product
Modification Co., Ltd., FAW Second Second
Basket quality 12,000,000.00
Jiefang (Qingdao) Automotive Intermediate instance
Distribution disputes
Co., Ltd. People's Court
Co., Ltd.
Zhejiang
Hanglun Ligang
Trading Co.,
Ltd., Dali Yufeng
Sales
Changhang FAW Jiefang Automotive Co., District
contract 10,780,000.00 Execution
Real Estate Ltd. People's Court
disputes
Development of Liuzhou
Co., Ltd., Lu
Jianping, Zhao
Li
Wang Defeng, Puyang
Puyang Tianrong Automobile
Zhao Jianbao, Product County
Sales Co., Ltd., third party: First
Cheng quality People's Court 8,000,000.00
FAW Jiefang (Qingdao) instance
Zhizhuang, disputes of Henan
Automotive Co., Ltd.
Cheng Zhixuan Province
Liaocheng Mingfeng
Liaocheng
Automobile Sales and Service
Shengkai Chiping
Co., Ltd., Shandong Shengrun Product
Building District First
Automobile Co., Ltd., China quality 4,370,000.00
Materials Co., People's Court instance
FAW Group Corporation, FAW disputes
Ltd. of Shandong
Jiefang (Qingdao) Automotive
Province
Co., Ltd.
People's Court
of Changchun
Dongguan ALI Sales Automobile
FAW Jiefang Automotive Co., Second
System Co., contract Economic and 2,959,213.61
Ltd. instance
Ltd. disputes Technological
Development
Zone
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Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Qingyang
Product Intermediate
Gansu Longyuntong Second
Liu Jiting quality People's Court 2,560,000.00
Automobile Service Co., Ltd. instance
disputes of Gansu
Province
People's Court
of Changchun
FAW Jiefang Automotive Co., Sales Automobile
Second
Chen Jie Ltd. (third party: Qingdao TKS contract Economic and 2,360,057.35
instance
Sealing Industry Co., Ltd.) disputes Technological
Development
Zone
Zhaoyuan Shanling Automobile Zhaoyuan
Product First
Sales Co., Ltd., FAW Jiefang People's Court
Dong Guosheng quality 1,890,000.00 instance
(Qingdao) Automotive Co., of Shandong
disputes of retrial
Ltd. Province
Zhao Shirong, Tianjin Yili Baicheng Wuqing
Product
Shi Jinghua, Automobile Sales Co., Ltd., District First
quality 1,500,000.00
Wang Hewu, FAW Jiefang (Qingdao) People's Court instance
disputes
Wang Xinru Automotive Co., Ltd. of Tianjin
People's Court
Construction of Changchun
FAW Jiefang Automotive Co., project Automobile
Zheng Siyou, First
Ltd., Jilin Huaang Construction construction Economic and 1,494,402.70
Wang Yanqin instance
Engineering Co., Ltd., Li Jie contract Technological
disputes Development
Zone
Xingtai Tengrui Automobile
Trading Co., Ltd., Xingtai Nanhe District
Product First
Wang Peng Tuwei Cargo Transportation People's Court 1,362,429.81
liability cases instance
Co., Ltd.; third party: China of Xingtai
FAW Group Corporation
Lingcheng
Dezhou Zhenxingda
Product District First
Shao Yuhai Automobile Sales Co., Ltd., 1,200,000.00
liability cases People's Court instance
China FAW Group Corporation
of Dezhou
Other 33 items 9,370,556.35
As of December 31, 2022, the Company has no contingencies other than those mentioned above that should be
disclosed.
(2) Explanation is also required when the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
(3) Other information required by the industry information disclosure guidelines
The Company shall meet the disclosure requirements for the automobile manufacturing industry specified in the
"No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of Listed Companies - Industry
Information Disclosure."
The sales amount of mortgage sales, financial lease and other modes accounts for more than 10% of the
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operating income
□ Applicable Not applicable
The Company's guarantee to dealer
□ Applicable Not applicable
XV. Events after the Balance Sheet Date
FAW Jiefang Automotive Co., Ltd., a subsidiary of the Company, plans to invest in Changchun
Automobile Test Center Co., Ltd. in order to realize the Company's strategic planning, promote the healthy
and long-term development of the Company, further control the Company's product consistency, and carry out
R&D, testing and certification inspection of new energy, intelligent network and other products, which has
been eliberated and adopted at the 30th meeting of the 9th Board of Directors of the Company. The investment
amount is CNY 670,872,800, with a shareholding ratio of 14.63%, including CNY 475,000,000 in cash and
CNY 195,872,800 in related business assets. The appraisal benchmark date is February 28, 2022. The asset-
based approach is adopted for appraisal this time. The book value of net assets is CNY 94,876,500, the
appraisal value is CNY 195,872,800, and the delivery date is February 28, 2023.
The Company had no events after the balance sheet date to be disclosed as of March 31, 2023.
XVI. Other Significant 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
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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.
(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:
Item Amount incurred in the current period
Short-term lease 37,568,291.05
Low-value lease
Variable Lease Payments not Included in Lease Liabilities
Measurement
Total 37,568,291.05
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XVII. Notes to Major Items of Parent Company’s Financial Statements
1. Other receivables
Unit: CNY
Item Ending balance Opening balance
Other accounts receivable 224,132.76 432,429.80
Total 224,132.76 432,429.80
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
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
Expected loss in Expected credit
Bad debt provision Expected credit loss the duration loss for the Total
for the next 12 (credit entire duration
months impairment not (with credit
occurred) impairment)
Balance on January 1, 2022 26,576.46 26,576.46
Balance on January 1, 2022
in the current period
- Transfer to phase II -26,576.46 26,576.46
Provision in the current
208,297.04 208,297.04
period
Balance as at December
234,873.50 234,873.50
31, 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 Book balance
1-2 years 459,006.26
Total 459,006.26
3) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
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Amount changed in the current period
Opening Ending
Category Recovery or Cancel after
balance Provision Others balance
reversal verification
Current
26,576.46 208,297.04 234,873.50
account
Total 26,576.46 208,297.04 234,873.50
4) Other receivables from top five borrowers classified based on the ending balance
Unit: CNY
Proportion in
Ending balance
Payment total ending
Name of Organization Ending balance Aging of bad debts
nature balance of other
provision
receivables
Changchun Committee of
Current
Municipal and Rural 459,006.26 1-2 years 100.00% 234,873.50
account
Construction
Total 459,006.26 100.00% 234,873.50
2. Long-term equity investment
Unit: CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Carrying amount Book balance Carrying amount
provision provision
Investment
in 21,109,221,438.36 21,109,221,438.36 21,086,037,005.30 21,086,037,005.30
subsidiaries
Investment
to
associated
4,471,059,131.83 4,471,059,131.83 4,554,765,365.23 4,554,765,365.23
enterprises
and joint
ventures
Total 25,580,280,570.19 25,580,280,570.19 25,640,802,370.53 25,640,802,370.53
(1) Investment to subsidiaries
Unit: CNY
Increase/Decrease in the current period Ending
Opening balance Ending balance balance of
Investee Investment Investment Impairment
(book value) Others (book value) impairment
increase decrease provision provision
FAW
Jiefang 21,086,037,005.30 23,184,433.06 21,109,221,438.36
Automotive
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Co., Ltd.
Total 21,086,037,005.30 23,184,433.06 21,109,221,438.36
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(2) Investment to associated enterprises and joint ventures
Unit: CNY
Increase/Decrease in the current period
Investment Ending
Adjustment to
Opening balance gains or losses Changes Cash dividends Ending balance balance of
Investor Investment Investment other Impairment
(book value) recognized in other and profits Others (book value) impairment
increase decrease comprehensive provision
under the equity declared to pay provision
income
equity method
I. Joint ventures
II. Associated enterprises
First
Automobile
4,341,181,324.38 358,137,304.38 -98,154.88 429,182,504.29 4,270,037,969.59
Finance
Co., Ltd.
Sanguard
Automobile
213,584,040.85 6,044,847.34 -686,753.20 17,920,972.75 201,021,162.24
Insurance
Co., Ltd.
Subtotal 4,554,765,365.23 364,182,151.72 -784,908.08 447,103,477.04 4,471,059,131.83
Total 4,554,765,365.23 364,182,151.72 -784,908.08 447,103,477.04 4,471,059,131.83
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3. Investment income
Unit: CNY
Amount incurred in the current
Item Amount in the previous period
period
Long-term equity investment
income calculated with cost 2,799,650,000.00 2,719,920,000.00
method
Long-term equity investment
income calculated with equity 364,182,151.72 758,201,966.42
method
Total 3,163,832,151.72 3,478,121,966.42
XVIII. 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
Profits or losses on disposal of non-current assets 871,031,108.06
disposal of non-current assets.
Government subsidies included in the current profit and
loss (except those closely related to the Company normal
1,635,846,930.8
operations, conforming to the State policies and regulations
3
and enjoyed persistently in line with certain standard rating
or ration)
It mainly refers to the reversal
Reversal of impairment provision for receivables subject to of impairment provision for
15,110,580.89
separate impairment test receivables subject to separate
impairment test.
Trustee fee earned from entrusted management 864,779.87 The trustee fee
They mainly refer to the net
Non-operating income and expenses other than the above 127,429,456.42 non-operating income and
expenses
Other losses and profits conforming to the definition of Other non-recurring profits and
non-recurring profit and loss losses
Less: amount affected by income tax 568,294,525.62
2,081,988,330.4
Total --
5
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
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□ Applicable Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for
the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1
on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items
□ Applicable Not applicable
2. Return on net assets and earnings per share
Earnings per Share
Profit for the Reporting Weighted average return
Basic earnings per share Diluted earnings per
Period on equity
(CNY/share) share (CNY/share)
Net profit attributable to
common shareholders of 1.50% 0.0735 0.0735
the Company
Net profit attributable to
common shareholders of
the Company after -7.01% -0.3781 -0.3781
deducting non-recurring
profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according to
the international accounting standards and China accounting standards
□ Applicable Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according to
foreign accounting standards and China accounting standards
□ Applicable Not applicable
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