Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Stock code: 200054 Stock Abbreviation: Jianshe Vehicle B Announcement No.: 2018-043
Chongqing Jianshe Vehicle System Co., Ltd.
The Semi-Annual Report 2018
July 2018
1
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee
that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept
individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr. Lv Hongxian, The Company leader, Mr.Fan Aijun, Chief financial officer and the Ms.Niu Yanli, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in the semi-report.
Except the following directors, all the directors attended the board meeting for reviewing the semi-report.
The name of the directors absent Positions Reasons for the absence Name of the consignee
Ye Yuxin Independent Director Business trip Lv Hongxian
Prospective statements carried in this report, such as business plans for future are not constituting any substantial
commitment to the investors. Please be cautious to the risks. This report is prepared both in English and Chinese.
When there is any conflict in understanding, the Chinese version shall prevail.
The Company analyzed the risks that may exist in the course of the operation of the Company and the
countermeasures in the section "The Risks Faced by the Company and the Countermeasures " in Section 4
"Discussion and Analysis of Business Operation Situation", so please pay attention to that relevant contents.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
2
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Table of Contents
2018 Semi-Annual Report
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Results
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII.Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds .
X.Financial Report
XI. Documents available for inspection
3
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Definition
Define
Terms to be defined Definition
d as
Define
Company, the Company, Jianmo Stock Chongqing Jianshe Vehicle System Co., Ltd.
d as
Define Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the
Shenjianmo
d as Company)
Define
Jianmo B Chongqing Jianshe Motorcycle Co., Ltd. (predecessor of the Company)
d as
Define
Military Equipment Group China Military Equipment Group Co., Ltd.
d as
Define
Southern Group China Southern Industry Group Co., Ltd.
d as
Define
Military Finance Co. Military Equipment Group Finance Co., Ltd.
d as
Define
Southern Motorcycle Chongqing Southern Motorcycle Co., Ltd.
d as
Define Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe
Jianshe Industry
d as Machinery Factory, Jianshe Industry (Group) Co., Ltd.
Define
Jianshe Group Jianshe Industrial (Group) Co., Ltd.
d as
Define
Jianshe Mechanical and Electric Chongqing Jianshe Mechanical and Electric Co., Ltd.
d as
Refine
HANON,KOREA HANON Korea Hanon System Co., Ltd.
d as
Define
China Jialin China Jialin Industry Co., Ltd. (Group)
d as
Define
Jinan Qingqi Jinan Qingqi Motorcycle Co., Ltd.
d as
Define
Changan Auto Chongqing Changan Automobile Co., Ltd.
d as
Define
Luoyang Northern Luoyang Northern Enterprise Group Co., Ltd.
d as
Sales Co. Define Chongqing Jianshe Sales Co., Ltd.
4
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
d as
Define
Vehicle air conditioner Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
d as
Define
Import & Export Co. Chongqing Northern Jianshe Import & Export Co., Ltd.
d as
Define
Shanghai Jianshe Shanghai Jianshe Motorcycle Co., Ltd.
d as
Define
Chongqing Jianya Chongqing Jianshe YAMAHA Motorcycle Co., Ltd.
d as
Define
Zhuzhou Jianya Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd.
d as
Define
Pingshan Taikai Chongqing Pingshan Taikai Carburetor Co., Ltd.
d as
Define
Tongsheng Construction Chongqing Tongsheng Jianshe Industry Co., Ltd.
d as
Define
Fuyeda Chongqing Fuda Property Management Co., Ltd.
d as
Define
Changan SUZUKI Chongqing Chang’an SUZUKI Automobile Co., Ltd.
d as
Define
Changhe SUZUKI Jiangxi Changhe SUZUKI Automobile Co., Ltd.
d as
Define
Hebei Changan Hebei Changan Automobile Co., Ltd.
d as
Define
Hefei Changan Hefei Changan Auto Co., Ltd.
d as
Define
Hafei Automobile Harbin Hafei Automobile Co., Ltd.
d as
Define
Changan Ford ,Harbin Branch Changan Ford Automobile Co., Ltd. Harbin Branch
d as
Define
Harbin Dongan Auto Engine Harbin Dongan Auto Engine Co., Ltd.
d as
Define
South Air International South Air International Co., Ltd.
d as
Define
Nanjing Changan Nanjing Changan Automobile Co., Ltd.
d as
The company has made an agreement to sale the 100% stake of Jianshe
Define Mechanical and Electric Company-the company’s subsidiary funded by
Major asset restructuring
d as the liabilities and the motorcycle business related assets held by the
company to Military Equipment Group.
5
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
II. Corporate Profile and Key Financial Results
1. Basic Information
Stock ID Jianshe Vehicle B Stock Code 200054
Change of stock Abbreviation
Jianshe Vehicle B
（If any）
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 重庆建设汽车系统股份有限公司
Short form of Company Name
建车 B
in Chinese
Company Name in English Chongqing Jianshe Vehicle System Co., Ltd
Short form of Company Name
JSVS-B
in English
Legal representative: Lv Hongxian
2. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Zhang Hushan Liu Hongyu
No.1 Jianshe Road, Huaxi Industrial Zone, No.1 Jianshe Road, Huaxi Industrial Zone,
Address
Ba’nan District, Chongqing Ba’nan District, Chongqing
Tel. 023-66295333 023-66295333
Fax. 023-66295333 023-66295333
E-mail. cqjsmc@jianshe.com.cn cqjsmc@jianshe.com.cn
3.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2017 Annual Report.
6
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2017 Annual Report.
IV.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YOY+/-（%）
Operating income（Yuan） 511,696,731.41 550,074,257.84 -6.98%
Net profit attributable to the shareholders
66,076,528.48 11,418,319.36 478.69%
of the listed company（Yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 65,795,940.72 11,141,929.71 490.53%
listed company（Yuan）
Cash flow generated by business operation,
28,486,030.25 63,135,091.91 -54.88%
net（Yuan）
Basic earning per share(Yuan/Share) 0.5535 0.0957 478.37%
Diluted gains per share(Yuan/Share) 0.5535 0.0957 478.37%
Weighted average ROE(%) 21.04% 4.17% 16.87%
As at the end of the
As at the end of last year YOY+/-（%）
reporting period
Gross assets (Yuan) 1,426,739,166.59 1,302,238,427.15 9.56%
Shareholders’ equity attributable to
348,834,731.97 282,758,203.49 23.37%
shareholders of the listed company（Yuan）
V. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
7
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
VI.Items and amount of deducted non-current gains and losses
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-52,595.40
for which assets impairment provision is made)
Govemment subsidy recognized in current gain and
loss(excluding those closely related to the Company’s business 332,400.00
and granted under the state’s policies)
Other non-business income and expenditures other than the above 783.16
Total 280,587.76 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
8
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company engages mainly in production and sales of the vehicle air compressor including the vane iron
and aluminous compressor, piston swash-plate fixed discharge rate compressor, piston swash-plate variable
discharge rate compressor and motor compressor (with the discharge rate from 32cc to 480cc), has been awarded
“China Famous Brand”, “High-quality Product of French Technological Quality Surveillance Evaluation
Commission” and “China Recommended Product for Entry into WTO”, etc. for products and has the strategical
cooperative partners including the leading production and sales volume in terms of finished automobile such as
Chanan Auto, PEUGEOT, Dongfeng Nissan, Changan Suzuki and Great Wall Automobile, etc.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
In June 2018, the sale of Shanghai Construction's equity was 8.16 million yuan, and the
Equity assets
new investment joint venture company built HANON 21.3 million yuan.
Fixed assets Some fixed assets for rental are no longer rented out
Monetary Fund Received equity payment of 61.2 million yuan.
Real estate investment Some fixed assets for rental are no longer rented out
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company has the enterprise technology center which recognized by Chongqing City, established the rotary
vane technology platform and the piston technology platform and formed the three series products of iron,
aluminum and electric-driven. Through continuous independent innovation and introduction, the company has
shaped a strong R&D capability of automotive air conditioner compressor, and the products are mature and
cost-effective with stable performance. In the rotary vane compressor market, the company’s product has
constantly gained a stable market share. The advanced equipment which introduced from countries including the
9
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
United States, Germany, Switzerland and Japan accounts for more than 80%, enabling the company to have
precision manufacturing capacity. In the last two years, the company increased the investment in technological
transformation, so the company has realized the production and sales scale of 2.3 million per year, and the
company has made a comprehensive improvement on on-line testing ability, quality testing ability and R&D
capability and experimental capability.
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half of 2018, the company has vigorously expanded the existing compressor business according
to the business objectives that we set at the beginning of the year in a bid to accelerate the development of Hanon,
and speed up the transformation, achieving remarkable results in key areas of work.
In 2018, the company aims to sell 2.4 million sets of automotive air-conditioning compressors with revenue
of 920 million yuan. In the first half of the year, the company has actually sold 1.23 million sets, accounting for
51% of the sale plan at the beginning of the year. Among it, domestic sales is 890,000 units, dropping 5.76% over
the same period of the previous year; foreign sales is 340,000 units, an increase of 7.33% over the same period of
the previous year.
In the first half of 2018, revenue for the main business is 470 million yuan. As 51% of equity interest of the
subsidiary Shanghai Jianshe is transferred, investment profit is increased. Thus, the profit of current period is
66.08 million yuan, an increase of 479% over the same period of the previous year.
(1) The automotive air-conditioner business has been developing steadily, successfully achieving “double
goals”
In the first half of the year, under the severe situation of low growth in industry, the company has
successfully achieved “double goals” by reducing risks, costs and losses, improving weak links, replenishing
resources, cultivating and strengthening core competence, improving sales and revenue.
Firstly, sale strategy of “one plan for one factory” has been promoted steadily by optimization of customer
structure and strengthening of risk management for large customers. Through adjustment of two big customers,
the sales volume of the top 10 big customers has decreased to 88%, which has improved risk resisting capacity.
Secondly, with expansion of overseas markets, orders from the French Peugeot and Iranian market have increased
significantly. Thirdly, the new energy industry has been developing steadily. In the first half of 2018, sale has
exceeded 3,000 units that have been used in the production line of scroll-type electric compressor, thus enhancing
market competitiveness of the product. Fourthly, the introduction of social resources into the project of extending
technological transformation with 500,000 sets of productivity has been carried out smoothly, and the intended
partners have initially selected. Fifthly, measures such as technological management and promotion of new
technologies have been strengthened. Therefore, contribution rate of new products has reached 65%, an increase
of 111.4 % compared with the previous year. Sixthly, quality improvement activities have been carried out
vigorously, DNV IATF16949 upgrade certification has been passed smoothly, which has further improved
precision production. Seventhly, “Double Ten” project for cost reduction has been promoted vigorously by
emphasizing internal management, thus bring good preliminary results of the cost reduction.
(2) Effective control result for the joint venture
10
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
1. The control of Pingshan Taikai's annual business objectives has been strengthen to give full play to the
role of resident field personnel in management, supervision and coordination, thus enhancing the profitability of
the joint venture. In the first half of the year, Pingshan Taikai has sold 752,000 sets of carburetors, accounting for
65% of the sales plan at the beginning of the year, and earned revenue of 72.45 million yuan, accounting for 69%
of the plan at the beginning of the year. In addition, the listed company has earned an investment income of 1.736
million yuan.
2. The development of Hanon has been accelerated, and all tasks are advanced efficiently in quality
according to timeline. The initial capital investment has been put in place, and 89% of equipment procurement
bidding has been completed. It is expected that the equipment will be installed in October after being in place; the
factory renovation has been successfully implemented on the scene, which is expected to be completed in October.
At the same time, the market expansion has been quickened simultaneously and bids for Chan’an C 211NE14 and
S301-18 series projects as well as bid for Great Wall H6 platform have been won,which will lay a solid
foundation for the smooth production of the joint venture.
(3) Comprehensive accomplishment of equity interest transfer of subsidiary
51% of equity interest in Shanghai Jianshe is publicly listed on Shanghai United Assets and Equity Exchange.
Through “Shanghai Assets and Equity Exchange Contract” signed between Shanghai Construction and Shanghai
Hecang Industrial Co., Ltd. in June 15, 2018, the equity is transferred in a price that is higher than the evaluation
value, thus realizing the transformation of the company to withdraw from the motorcycle business.
II.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income 511,696,731.41 550,074,257.84 -6.98%
Operating cost 424,270,937.00 456,540,934.80 -7.07%
Sale expenses 12,662,136.26 12,358,836.00 2.45%
Administrative expenses 43,782,788.42 46,644,017.51 -6.13%
Financial expenses 20,585,397.71 18,617,069.49 10.57%
Income tax expenses 561,775.84 600,586.60 -6.46%
Cash flow generated by Most of the collection
28,486,030.25 63,135,091.91 -54.88%
business operation, net methods are bills
The disposal of Shanghai
Construction Equity
Net cash flow generated received RMB 61.2
41,235,623.28 -1,343,707.62 3,168.79%
by investment million, and the
investment in Hanon was
21.3 million yuan.
Net cash flow generated The financing method is
-34,957,175.84 -168,060,263.37 -79.20%
by financing changed, and the
11
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
discounted bills are
reduced.
Disposal of Shanghai
Net increasing of cash
34,764,477.69 -106,268,879.08 132.71% Jianshe Equity received
and cash equivalents
61.2 million yuan
Major changes in profit composition or sources during the report period
√ Applicable □Not applicable
During the reporting period, the operating profit increased by 461% over the previous period, on the ground of the
increased investment income gained from the transfer of its holding stake of 51% stake of Shanghai Jianshe.
Breakdown of main business
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
On Industries
Industry 482,850,720.88 400,797,229.92 16.99% -4.02% -2.70% -1.14%
On products
Vehicle air
480,084,334.61 398,850,383.41 16.92% -3.88% -2.27% -1.37%
conditioner
Other 2,766,386.27 1,946,846.51 29.62% -23.64% -48.83% 34.65%
On Area
Domestic 376,119,433.42 301,592,806.61 19.81% -2.83% -2.64% -0.17%
Overseas 106,731,287.46 99,204,423.30 7.05% -7.99% -2.88% -4.89%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Ratio to the total
Amount Notes of the causes Recurring or not
profit amount (%)
The company transfers 51% of its
Investment income 60,830,865.45 90.80% stake in Shanghai Jianshe to increase No
the return on investment.
Non-operating
357,960.24 0.53%
income
Non-operating 77,372.48 0.12%
12
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
expenses
IV.Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of same period of last
End of Reporting period
year
Change in
As a As a
percentag Reason for significant change
percentage percentage of
Amount Amount e(%)
of total total
assets(%) assets(%)
Monetary fund 306,009,444.15 21.45% 295,278,417.88 22.35% -0.90%
Accounts
311,419,183.31 21.83% 255,105,669.86 19.31% 2.52%
receivable
Inventories 190,097,635.16 13.32% 154,692,361.34 11.71% 1.61%
Real estate
54,413,486.25 3.81% 112,986,190.01 8.55% -4.74% Reduce rental fixed assets
Investment
New investment joint ventures to build
Long-term equity
104,127,592.86 7.30% 81,252,694.41 6.15% 1.15% Hanon and sell Shanghai Jianshe
investment
Equity.
Fixed assets 364,119,471.83 25.52% 315,059,363.89 23.84% 1.68% Reduce rental fixed assets
Construction in
5,032,611.25 0.35% 4,176,362.84 0.32% 0.03%
process
Short-term loans 262,000,000.00 18.36% 284,500,000.00 21.53% -3.17%
Long-term loans 0.00% 24,490,000.00 1.85% -1.85%
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Nil
V. Analysis on investment Status
1. General
□ Applicable √ Not applicable
13
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □Not applicable
In RMB
Target Main Invest Invest Shareh Capital Partner Invest Product Progre Predict Investm Litigatio
compan busines ment ment olding source ment type ss to ed ent n
y name s way amount rate period the revenu profit Disclos
balanc e and loss Disclosu
ure
e sheet of the re date
Index
date current
period
Develo New Accord
pment, establis ing to See on
manufa hment the www.cn
cturing, contrac info.co
sales t, m.cn
and inform compan
import ation y
of the of the announc
Air
auto capital ement
conditi
thermal contrib on
on,
Chongq manage ution October
compre
ing ment Shareh of the , 12,
ssor,
Jianshe system older current 2017,
motor
HANO Jianshe period October
cooling
N Electro is: 14,
106,50 system, October
Auto mechan 50 21.3 2017,
0,000.0 25.36% Self electro 0.00 0.00 No 12,
Therma ical years million October
0 nic 2017
l and yuan 14,
compo
Manage Korean by the 2017
nents,
ment HANO compa and
related
System N ny, Decemb
parts
Co., Ltd 124.8 er 2,
and
million 2017,
CKD,
yuan Announ
etc.
by cement
HANO No.
N, 2017-05
invest 7,2017-
ment 064,201
in kind 7-065,2
by 017-090
Constr
14
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
uction
Electro
mecha
nical,
and the
divisio
n of
propert
y right
is
under
proces
s.
106,50
Total -- -- 0,000.0 -- -- -- -- -- -- 0.00 0.00 -- -- --
0
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
√ Applicable □ Not applicable
Transact Net Influenc Proporti Pricing Whether Relation Whether Whether Disclos
Counter Sold Sold Disclos
ion profits e of the on on of principl was the ship the execute ure
party equities date ure date
price(Te contribu selling the net es of the related with the involve as Index
15
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
n ted by of the profits equities transacti center d schedul
thousan the Compan of the selling on party equities ed and
d yuan) equities y contribu all if failed,
to the ted complet should
listed amount e ed the state the
compani of the ownersh reasons
es from equities ip and the
the selling transfer adopted
period-b to the measure
egin to listed ments of
the sold compani the
date es to the compan
(Ten total y
thousan amo9un
d yuan) t of the
net
profits
After
the sale
of the
equity,
See on
Shangha
www.cn
i Jianshe
info.co
was no
m.cn
longer
compan
included
The y
in the
listed announc
consolid
Shangha transacti ement
ated
i 51% on price on
stateme
Hecang stake of June 15, not June 21, Novemb
6,120 73 nt of the 88.00% No No No Yes
Industry Shangha 2018 lower 2018 er
compan
Co., i Jianshe than the 16,2017
y at the
Ltd. assessm ,Dece
end-peri
ent mber 2,
od of
value 2017,
the
June 21,
balance
2018
sheet,
and
and
June 27,
consolid
2018
ated the
income
stateme
nt and
16
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
cash
flow as
of the
base
date.
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Main Registered Operating
Type Total assets Net assets Turnover Net Profit
name business capital profit
Manufacturin
Air
g and sales of 1,061,988,51 256,665,990. 495,255,083. 2,520,073.
Conditioner Subsidiaries auto 160,000,000 2,790,844.49
air-condition 3.95 16 12 03
Co.
ers
Production
Pingshan and sales of 158,758,676. 189,143,445. 164,789,599. 72,450,491.3 4,620,017.
Shareholding 3,471,597.60
Taikai motorcycles 00 32 08 2 14
company
and parts
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
Ways of acquisition and disposal of
Name Impact on overall operation and performance
subsidiaries during the reporting period
After the transfer of Shanghai Jianshe equity, the business structure of the
The company publicly listed and
company was further improved, which was in line with the company’s
Shanghai transferred its holding stake of 51%
restructuring arrangements and the company’s development strategy plan.
Jianshe stake of Shanghai Construction through
The above-mentioned equity transfer after completion generated the
the Shanghai United Property Exchange
investment income of 53.04 million yuan.
Through the joint venture approach to introduce the variable displacement
Jianshe compressors and the air conditioning integration technology to meet the
New Investment
Hanon needs of the company's automotive air conditioning industry development,
in order to enhance the company's development momentum.
Notes
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
17
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
IX. Prediction of business performance for January -September 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
X.Risks facing the Company and countermeasures
1. Possible risks
(1) Policy and macro situation. In the first half of 2018, the overall growth of passenger vehicles has slowed
down, which coincides with frequent international trade disputes involving tariffs, industrial costs and other
aspects. Therefore, the development of the industry is greatly affected by macro factors.
(2) Intense market competition. At present, the competition in the automotive air-conditioning compressor
market is very fierce. At the same time, original equipment manufacturers continue to impose cost pressure to the
supporting enterprises, which leads to further intensified competition in the industry.
(3) Pressure from capacity bottleneck. At present, the company’s production capacity has been basically
saturated, and the capacity bottleneck is difficult to be removed in the short term.
(4) Customer dependencies. At present, more than 75% of the company’s total sales revenue is attributed to
top 5 big customers, indicating strong dependencies on large customers.
(5) Overseas market. At present, the uncertainty of overseas markets has increased, and there are
corresponding risks and challenges in the stability and development of overseas business.
(6) Some financial institutions have raised loan rate, and the company's financing costs have further
increased.
2. Solutions
(1) Automotive air conditioner: market shall be further explored to actively respond to changes in the
industry and the market; core competence shall be strengthened and cultivated to build technological and product
reserves with core competitiveness, thus increasing profit margin; Greater efforts shall be made to realize cost
reduction in procurement to ensure the achievement of the annual profit target.
(2) For electric compressor for new energy vehicle: market shall be further explored to expedite the
production line construction of scroll-type electric compressor, and sales of the electric vehicle shall be promoted
to provide scale benefits.
(3) In terms of capital safety and financing costs: the existing relationship between banks and enterprises
shall be further stabilized to actively explore new credit cooperative banks for credit. In addition, management
shall be strengthened by plan to ensure the safety of the capital chain. Furthermore, the structure shall be adjusted
to promote the reduction of financing costs and improve work performance to receive National special
low-interest loan.
18
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
For details please find
the Resolutions of
Shareholders’ Meeting
2017, Announcement
Annual General Annual General
75.31% May 17,2018 May 18,2018 2018-033 on securities
Meeting of 2017 Meeting
times, Hongkong
Commercial daily and
http://www.cninfo.com.c
n
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
□ Applicable √Not applicable
No such cases in the Reporting Period.
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
19
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
√ Applicable □Not applicable
Due to the failure of Chongqing Jianshe Machinery and Electric Co., Ltd. to fulfill an effective judgment, the
Company was listed as Dishonest Persons Subject to Enforcement in the enforcement of the following cases by
the court: Chongqing Fuji Machinery Manufacturing Co., Ltd. Contract Dispute Case (Yu 0113 Enforcement 167
of 2018.
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□ Applicable √ Not applicable
No such cases in the reporting period.
20
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
XII.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of Amount approve price of of
of the pricing of trade Ratio in approve Date of
Related Relation Type of Price of Way of similar inform
related the ten similar d disclosu
parties ship trade trade payment trade ation
transacti related thousan trades d ten re
availabl disclos
ons transacti d yuan limited e ure
ons thousan
or not
d yuan
(Y/N)
See
details
in the
compa
ny’s
annou
nceme
nt
publis
hed on
securit
ies
times,
Jianshe Controll
Purchas Fair April Hongk
Mechani ing Spare
e of Market 845 845 2.04% 1,000 No Cash 845 26, ong
cal and sharehol parts
goods Price 2018 Comm
Electric der
ercial
daily
and
http//w
ww.cni
nfo.co
m.cn
(Anno
uncem
ent
No.:20
18-011
)
Import Subsidia Purchas Spare Fair 1126 1,126 2.72% 1,800 No Cash 1126 April The
21
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
& ry of the e of parts Market 26, same
export controlli goods Price 2018 as
ng above
sharehol
der
Jianshe The
Controll
Mechani Purchas Lease Fair April same
ing
cal and e of producti Market 0 0 0.00% 250 No Cash 0 26, as
sharehol
Electric goods on site Price 2018 above
der
The
South Under Purchas Fair April same
housing
motorcy same e of Market 0 0 0.00% 100 No Cash 0 26, as
lease
cle control goods Price 2018 above
China
Changa
n
Automo
Sale of
bile The
finished
Group Under Fair April same
Sales of parts
Co., same Market 6321 6,321 13.43% 25,000 No Cash 6321 26, as
goods and
Ltd. control Price 2018 above
compon
And its
ents
affiliate
d
Enterpri
ses
The
Jianshe Controll
Rental Fair April same
Mechani ing Sales of
warehou Market 0 0 0.00% 1,000 No Cash 0 26, as
cal and sharehol goods
se Price 2018 above
Electric der
The
South
Under Sale of Fair April same
Air Sales of
same spare Market 7.2 7.2 0.02% 25 No Cash 7.2 26, as
Internati goods
control parts Price 2018 above
onal
The
Under Fair April
Jianshe same
same Services Test fee Market 27 27 0.07% 200 No Cash 27 26,
Industry as
control Price 2018
above
22
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Joint
venture The
Chongqi of Fair April same
ng controlli Services Test fee Market 0.1 0.1 0.00% 2 No Cash 0.1 26, as
Jianya ng Price 2018 above
sharehol
der
China
Changa
n
Automo
bile The
Group Under Accept Fair April same
Co., same Services mainten Market 97 97 0.23% 500 No Cash 97 26, as
Ltd. control ance Price 2018 above
And its
affiliate
d
Enterpri
ses
Total -- -- 8,423.3 -- 29,877 -- -- -- -- --
Details of any sales return of a large
Nil
amount
Give the actual situation in the report
The total amount of various types of routine connected transactions that occurred in the
period where a forecast had been
Company by categories did not exceed the scope of the examination and approval.
made for the total amounts of routine
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the Not applicable
market reference price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
No such cases in the reporting period.
23
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
4.Contact of related credit and debt
□ Applicable √ Not applicable
No such cases in the reporting period.
5. Other significant related-party transactions
√ Applicable □ Not applicable
Investment in joint venture by Chongqing Jianshe Mechanical and electric Co., Ltd. and HANON and
connected transactions
In order to seize market development opportunities and achieve a leading position in the automotive thermal
management system industry in China, the Company and controlling shareholder (Chongqing Jianshe Mechanical
and electric Co., Ltd .) signed the Sino-Foreign Joint Venture Contract for Chongqing Jianshe Hanon Auto
Thermal Management System Co., Ltd. on October 25, 2017, which stipulated for joint investment in establishing
a joint venture with the registered capital of 420 million yuan. The Company contributed 106.5 million yuan in
cash, which accounted for 25.36% of the registered capital. Chongqing Jianshe Mechanical and electric Co., Ltd.
contributed 103.5 million yuan by the factory building and land, which accounted for 24.64% of the registered
capital. HANON contributed 210 million yuan in cash, which accounted for 50% of the registered capital.
The transaction was approved by the transaction was approved by the Second Extraordinary General Meeting
of 2017 of the Company convened on December 1, 2017. The business registration was completed on January 15,
2018.
For details, please refer to the company announcements published on Securities Times, Hong Kong
Commercial Daily, and the Cninfo Network (cninfo.com.cn).
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement of 3rd meeting of the Eighth http//www.cninfo.com.cn. Announcement
October 12,2017
board of directors No.:2017-057
Announcement on Joint Investment in
Establishing Joint Venture by the Company,
http//www.cninfo.com.cn. Announcement
Chongqing Jianshe Mechanical and October 14,2017
No.:2017-064
electric Co., Ltd . and Hanon Systems and
Related Transactions
Announcement on Joint Investment in
Establishing Joint Venture by the Company,
http//www.cninfo.com.cn. Announcement
Chongqing Jianshe Mechanical and October 27,2017
No.:2017-065
electric Co., Ltd . and Hanon Systems and
Related Transactions progress
Evaluation Report of Contribution of Some
http//www.cninfo.com.cn. Announcement
Assets by Chongqing Jianshe Mechanical November 16,2017
No.:2017-086
and electric Co., Ltd
24
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Evaluation Notes of Contribution of Some
http//www.cninfo.com.cn. Announcement
Assets by Chongqing Jianshe Mechanical and November 16,2017
No.:2017-087
electric Co., Ltd
Announcement of Resolutions of the second
http//www.cninfo.com.cn. Announcement
provisional shareholders’ general meeting of December 2,2017
No.:2017-090
2017
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
Ten thousand yuan
External Guarantee (Exclude controlled subsidiaries)
Name of the Relevant Amount of Date of Actual Guarantee Guarantee Complete Guarante
Company disclosure Guarantee happening mount of type term implemen e
25
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
date/No. of (Date of guarantee tation for
the signing or not associate
guaranteed agreement) d
amount parties
(Yes or
no)
Total amount of approved Total actually amount of
external guarantee in the report 0 external guarantee in the 0
period(A1) report period(A2)
Total amount of approved Total actually amount of
external guarantee at the end of 0 external guarantee at the end 0
the report period(A3) of the report period(A4)
Guarantee of the company for its subsidiaries
Guarante
Related Date of Complete
Name of the Actually e for
announcem Amount of happening(date Guarantee Guarantee implemen
company guarantee related
ent date and guarantee of signing type term tation or
guaranteed amount party(yes
no. agreement) not
or no)
Vehicle air April 28, Joint
3,500 January 23,2017 3,500 12 months Yes No
conditioner 2017 liabilities
Vehicle air April 28, Joint
3,500 January 24,2017 3,500 12 months Yes No
conditioner 2017 liabilities
Vehicle air April 28, August 30, Joint
2,000 2,000 6 months Yes No
conditioner 2017 2017 liabilities
Vehicle air April 28, Joint
2,850 October 17,2017 2,850 6 months Yes No
conditioner 2017 liabilities
Vehicle air April 28, November 17, Joint
2,800 2,800 6 months Yes No
conditioner 2017 2017 liabilities
Vehicle air April 28, December 11, Joint
2,500 2,500 6 months Yes No
conditioner 2017 2017 liabilities
Vehicle air April 28, Joint
1,700 July 6,2017 1,700 12 months No No
conditioner 2017 liabilities
Vehicle air April 28, September 12, Joint
3,000 3,000 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 28, September 12, Joint
1,097 1,097 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 28, September 14, Joint
1,453 1,453 12 months No No
conditioner 2017 2017 liabilities
26
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Vehicle air April 28, September 21, Joint
3,000 3,000 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 28, September Joint
4,200 4,200 12 months No No
conditioner 2017 29,2017 liabilities
Vehicle air April 28, October 11, Joint
2,450 2,450 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 28, November 8, Joint
2,500 2,500 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 28, December 7, Joint
5,000 5,000 12 months No No
conditioner 2017 2017 liabilities
Vehicle air April 26, January 3, Joint
1,000 1,000 6 months Yes No
conditioner 2018 2018 liabilities
Vehicle air April 26, January 11, Joint
2,450 2,450 12 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, January 18, Joint
3,500 3,500 12 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, January 16, Joint
1,000 1,000 12 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, January 22, Joint
3,500 3,500 6 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, February 9, Joint
2,000 2,000 12 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, May 21, Joint
2,849 2,849 6 months No No
conditioner 2018 2018 liabilities
Vehicle air April 26, Joint
2,730 May 30,2018 2,730 12 months No No
conditioner 2018 liabilities
Vehicle air April 26, Joint
2,500 June 4,2018 2,500 6 months No No
conditioner 2018 liabilities
Vehicle air April 26, Joint
1,000 June 7,2018 1,000 6 months No No
conditioner 2018 liabilities
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 126,000 22,529
subsidiaries in report period
report period（B1）
（B2）
Total amount of approved Total amount of actual
guarantee for subsidiaries at the 126,000 occurred guarantee for 45,929
end of reporting period（B3） subsidiaries at the end of
27
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
reporting period（B4）
Guarantee of the subsidiaries for its subsidiaries
Date of Guarante
Related Complete
Name of the happening(d e for
announcem Amount of Actually guarantee Guarantee Guarantee implemen
company ate of related
ent date and guarantee amount type term tation or
guaranteed signing party(yes
no. not
agreement) or no)
Total guarantee quota to the Total amount of guarantee to the
subsidiaries approved in the 0 subsidiaries actually incurred in 0
reporting period (C1) the reporting period (C2)
Total guarantee quota to the Total balance of actual guarantee
subsidiaries approved at the end 0 to the subsidiaries at the end of the 0
of the reporting period (C3) reporting period (C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
126,000 22,529
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
126,000 Period-end 45,929
（A3+B3+C3）
（A4+B4+C4）
The Company’s total guarantee(i.e.total of the first three main
131.66%
items)（A4+B4+C4）
Including：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 45,929
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
28,466.5
company exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees
45,929
（D+E+F）
Explanations about joint and several liability for repayment in
Nil
respect of undue guarantee(if any)
Explanation about external guarantee violating established
Nil
procedure if any）
Description of the guarantee with complex method
28
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Illegal providing of external guarantees
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
XV.Social responsibilities
1.Major environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No
The vehicle air-conditioning compressor production base has been strictly abiding by the national environmental
laws and regulations since the relocation to the Jiulongpo Industrial Park in Jiulongpo District of Chongqing in
2007, it has been adhered to legitimate sewage and paid the sewage charges according to the law. The
establishment of environmental management agencies ,enterprise environmental management system and on-site
environmental management practices, no dripping water, running water, water leakage phenomenon, complete
environmental protection archives, and strive to make contribution to environmental protection and ecological
civilization work to Chongqing. The company was selected as "Environmental Protection Demonstration
Enterprises" by Chongqing Jiulongpo.
1. Environmental Protection Facilities Investment Construction and Operation
(1)In 2007, the company invested 2.63 million yuan and built a sewage treatment station, which uses physical
biochemical process technology and its processing capacity is 33 cubic meters / hour. The treated sewage is
discharged to the municipal pipe network after reaching the first grade standard of GB8978-1996. The company
has carried out a standardized rectification of the discharge of waste water, with environmentally friendly graphic
signs, and installed with automatic online monitoring device.
(2)In 2008, the company invested 300,000 yuan in the new phosphate production line and built a set of acid mist
exhaust gas purification facilities, which uses acid-base neutralization process to neutralize the hydrochloric acid
mist, and the treated flue gas is discharged through the standardized sewage outlet discharge.
(3)In 2009, the company invested 200,000 yuan in the new spraying production line and built a set of sand gas
purification facilities, which uses water washing and filtration treatment, and the treated flue gas emissions is
discharged through the standardized sewage outlet discharge.
(4)In 2009, the company invested 500,000 yuan in the PTFE coating production line and built two sets of
purification facilities, which uses activated carbon adsorption treatment and the treated flue gas emissions is
discharged through the standardized sewage outlet discharge.
(5)In 2009, the company invested 500,000 yuan in the chemical tinning line production line and built two sets of
purification facilities, which uses acid-alkali neutralization process to treat the waste gas, and the treated flue gas
emissions is discharged through the standardized sewage outlet discharge.
(6)In 2012, the company invested 300,000 yuan in the expansion phosphating production line and built a set of
29
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
acid waste gas purification facilities, which uses neutralization process of hydrochloric acid mist neutralization
treatment, and the treated flue gas emissions is discharged through the standardized sewage outlet discharge.
(7)In 2016, according to the requirements of organic waste treatment Chongqing Environmental Protection
Bureau, the company invested 200,000 yuan in the Teflon coating production line of the existing purification
process, adding new purification process facilities to ensure organic waste gas treatment up to 90% of the
standard.
In the production process of hazardous waste, the company commissioned a special collection and disposal of
qualified units responsible for recycling. The transfer was performed during the transfer of hazardous waste
manifest, established the hazardous waste management ledger, built a temporary capacity of 30 cubic meters of
hazardous waste, and take “Three Measures” to prevent the loss of hazardous waste.
2. Enterprise Internal Environmental Management
The company passed the ISO14001 environmental management system, OHSAS18001 occupational health and
safety management system in 2009. Strictly in accordance with the system requirements to carry out various
activities, focusing on process control. In particular, after the implementation of the new environmental law, the
company carried out a series of special activities, and strive to environmental protection work in line with the
provisions of the new environmental law.
3. Cleaner Production, Pollution Control
In 2012, the company passed the clean production audit work of the Chongqing Municipal Environmental
Protection Bureau, and has been in accordance with the idea of sustainable development, the selection of low
energy consumption and pollution of small products, technology, equipment, raw materials, and always adhere to
the "low carbon, environmental protection, energy saving, recycling, green development concept.
4. Comprehensive Utilization of Waste Classification
The workshop is equipped with recyclable, non-recyclable general industrial solid waste collection tanks and
hazardous waste collection tanks. The company separately constructed the hazardous waste dumping site and
carried out "three prevention" measures. Hazardous waste of the company were all commissioned by a qualified
unit for safe transfer and disposal. a total of 56.56 tons of hazardous waste disposal in 2016.
5. Factory Environment and Office System
The factory area is neat, the workshop and the office .functional area are clearly distinguished, the 6S
management is strictly enforced, and the plant green area is up to 587.26 million square meters. It has
standardized the discharge of waste gas and water, the pollution and the factory noise discharge are also
standardized, and the air quality is good.
In order to advocate "green office" and "paperless office", the company introduced the OA office system and
bought a complete set of office software, the paperless office is achieved. All of the tools which are equipped with
Company’s production workshop take environmental friendly, green as prerequisite. For example, staff’s hand
sanitizer and logistics supplies are non-phosphorus, green, natural and does not cause secondary pollution to the
environment. At the same time energy-saving wind is the prevalence of the entire factory, by breaking the office
cost indicators, from office lighting, office supplies and so on, strictly limit the energy consumption every year.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in the period and bas no follow-up plan
either.
30
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
XVI.Other material events
√ Applicable □Not applicable
1. Matters on the freezing of shares held by controlling shareholders of the company
The company received the share freezing date from the Shenzhen branch of China Securities Depository and
Clearing Corporation Limited (CSDC) (hereinafter referred to as the Shenzhen branch of CSDC) on March
14,2018, knew that the controlling shareholder Jianshe Mechanical & Electric Co., Ltd held a total of 285,000
shares of the company, which were judicially frozen by the People's Court of Banan District of Chongqing and the
People's Court of Jiulongpo District of Chongqing. Specific matters are as follows:
In the bill distribute between Chongqing Jingcan Industry & Trade Co., Ltd. and the Construction
Electromechanical, Chongqing Jiulongpo District People's Court issued the Document of Ruling-No.8212 Yu
0107 -2017, ruled to freeze the 285,000 shares of the company held by Jianshe Mechanical and Electric . On
March 13, 2018,The Shenzhen branch of CSDC executed the freezing of the 285000 shares of the company held
by Jianshe Mechanical and Electric Co., Ltd, which accounted for 0.24% of the total share capital of the company.
As of the disclosure date of the report, Jianshe Mechanical and Electric Co., Ltd holds 84,906,250 shares of
the company, accounting for 71.13% of the total share capital of the company. A total of 7,185,000 shares of the
shares of the company it holds have been frozen, which accounted for 6.02% of the company's total share capital.
The judicial freezing of the shares of the company held by the Jianshe Mechanical and Electric Co., Ltd shall
not affect the production and operation of the company, should the frozen shares be disposed of judicially, it shall
not affect the control of the company. At present, Jianshe Mechanical and Electric Co., Ltd is actively negotiating
with the above-mentioned six companies to resolve the litigation issues as soon as possible.
2. Matters on public listing and transferring the equity of Shanghai Jianshe
On December 1, 2017, The company publicly listed its holding stake of 51% stake of Shanghai Jianshe for
transfer on Shanghai United Property Exchange. This equity transfer had been reviewed and approved at the 5th
meeting of the 8th Board of Directors and the 2nd Extraordinary General Meeting of 2017. On June 15, 2018, the
"Shanghai Property Rights Transaction Contract" was signed, that Shanghai Hecang purchased the aforesaid 51%
stake of Shanghai Jianshe at the price of RMB 61.2 million. On June 22, 2018, the company received the full
payment for the transfer of 51% stake of Shanghai Jianshe. For details, please refer to the related announcements
of the company disclosed on The Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn in the
time of November 16,2017, December 2, 2017 and June 21, 2018 and June 27, 2018.
XVII. Material events of subsidiaries
√Applicable □ Not applicable
As verified by the company's subsidiary air-conditioning company, as of the date of this disclosure, the loan
receivable of air-conditioning compressor worth 19,665,969.80 yuan from Baic Yinxiang Automobile Co., Ltd.,
Chongqing Magic Auto Parts Co., Ltd., Chongqing Bisu Yunbo Power Technology Co., Ltd. and Chongqing
Kaite Engine Technology Co., Ltd may not be recovered on time, accounting for 137% of the company's latest
audited net profit. In accordance with the requirements of the company's risk control, the air-conditioning
company shall stop supplying products to the above-mentioned enterprises, and monitor closely their business
31
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
dynamics, and take intensive measures to recover the loan, to ensure that no new losses were incurred, and when
necessary, to take legal action against the above-mentioned enterprises.
32
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
VI. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus
common Other Subtotal Quantity Proportion
allotment shares
reserve
fund
89,375,00 89,375,00
I. Unlisted shares 74.87% 0 0 0 0 0 74.87%
0 0
89,375,00 89,375,00
1. Founder's stock 74.87% 0 0 0 0 0 74.87%
0 0
Including: State-owned
84,906,25 84,906,25
shares 71.13% 0 0 0 0 0 71.13%
0 0
Shares held by domestic
1,750,000 1.46% 0 0 0 0 0 1,750,000 1.46%
legal persons
Share held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Other 2,718,750 2.28% 0 0 0 0 0 2,718,750 2.28%
2. Raising legal person
0 0.00% 0 0 0 0 0 0 0.00%
shares
3. Internal staff shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Preferred stock or other 0 0.00% 0 0 0 0 0 0 0.00%
30,000,00 30,000,00
II Listed shares 25.13% 0 0 0 0 0 25.13%
0 0
1. Common shares in
0 0.00% 0 0 0 0 0 0 0.00%
RMB
2. Foreign shares in 30,000,00 30,000,00
25.13% 0 0 0 0 0 25.13%
domestic market 0 0
3. Foreign shares in
0 0.00% 0 0 0 0 0 0 0.00%
overseas market
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
119,375,0 119,375,0
III. Total of capital shares 100.00% 0 0 0 0 0 100.00%
00 00
33
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
2.Self-defined Chapter
When the company was founded in 1995, North China Industrial Shenzhen Co., Ltd., one of the founders,
held 17,875,000 shares of the company, accounting for 3.74% of the company's total share capital. According to
the Civil Order of the Shenzhen Intermediate People’s Court of Guangdong Province- [2006] Shenzhong Famin
Two Bankruptcy Zi No. 21-4) on March 6th, 2007, it’s ruled that the proprietary rights of the 3.74% stake
(17,875,000 legal person shares) of the company held by North China Industrial Shenzhen Co., Ltd. belongs to the
buyers Gu Zuocheng, Yangpu Xinyufeng Investment Co., Ltd. and Feng Yonghui. Thereinto, Gu Zuocheng held
8,875,000 shares; Yangpu Xinyufeng Investment Co., Ltd. held 7,000,000 shares; Feng Yonghui held 20,000
million shares.
On September 12, 2013, the company implemented a 4:1 share-shrunk. After the share-shrunk, Gu
Zuocheng held 2,218,750 shares; Anhui Hengsheng Economic Development Group Co., Ltd. (The shares
transferred by Yangpu Xinyufeng Investment Co., Ltd. on March 21, 2012) held 1,750,000 shares; Feng Yonghui
held 500,000 shares.
Therefore, in the above “Changes in Shares” table, the number of shares that’s filled in the “others” for the sponsors’
shares is the total shares held by the natural persons Gu Zuocheng and Feng Yonghui, namely: 2,718,750 shares.
3. Change of shares with limited sales condition
□ Applicable √Not applicable
Ⅱ.Issuing and listing
□ Applicable √Not applicable
III. Shareholders and shareholding
In Shares
Total number of common Total number of common
shareholders at the end of the 8,100 shareholders at the end of the 0
reporting period reporting period
34
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Particulars about shares held above 5% by shareholders or top ten shareholders
Amount Number of share pledged/frozen
Number Amount
Changes of
of shares of
Shareholders Nature of Proportion of in un-restri
held at restricte
shareholder shares held（%） reportin cted State of share Amount
period d shares
g period shares
-end held
held
Chongqing
Jianshe
State-owned legal 84,906,2 84,906,2
Mechanical and 71.13% 0 0 Freeze 7,185,000
person 50 50
Electric Co.,
Ltd.
Domestic natural 2,261,00 2,218,75
Gu Zuocheng 1.89% 0 42,250
person 0 0
Anhui
Hengsheng Domestic 1,750,00 1,750,00
Economic non-state-owned 1.47% 0 0
Development legal person 0 0
Group Co., Ltd.
Domestic natural 1,032,20 1,032,20
Liu Dan 0.86% 0 0
person 1 1
Domestic natural
Xu Yuanhui 0.55% 651,989 41200 0 651,989
person
Domestic natural
Yu Lingfeng 0.51% 612,921 -10700 0 612,921
person
Domestic natural
Chen Xinqiang 0.51% 612,400 0 0 612,400
person
Domestic natural
Zhang Meilan 0.43% 513,560 0 0 513,560
person
Domestic natural
Feng Yonghui 0.42% 500,000 0 500,000 0
person
CORE
PACIFIC-YAM
AICHI Overseas legal
0.36% 424,550 0 0 424,550
INTERNATIO person
NAL (H.K.)
LIMITED
There isn’t any associated relationship between the sponsoring shareholder and the other
Explanation on associated shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in
relationship among the aforesaid accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign
shareholders shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in
concert’.
35
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Foreign shares
placed in
Liu Dan 1,032,201 1,032,201
domestic
exchange
Foreign shares
placed in
Xu Yuanhui 651,989 651,989
domestic
exchange
Foreign shares
placed in
Yu Lingfeng 612,921 612,921
domestic
exchange
Foreign shares
placed in
Chen Xinqiang 612,400 612,400
domestic
exchange
Foreign shares
placed in
Zhang Meilan 513,560 513,560
domestic
exchange
Foreign shares
CORE PACIFIC-YAMAICHI
placed in
INTERNATIONAL (H.K.) 424,550 424,550
domestic
LIMITED
exchange
Foreign shares
placed in
Chen Houping 423,561 423,561
domestic
exchange
Foreign shares
placed in
Li Jianping 359,444 359,444
domestic
exchange
Foreign shares
placed in
Liu Guosheng 345,575 345,575
domestic
exchange
Foreign shares
KGI ASIA LIMITED 303,615 303,615
placed in
36
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
domestic
exchange
There is no affiliated relationship between the top ten non-restricted tradable shareholders and
the controlling shareholder Jianshe Mechanical and Electric Co., Ltd, nor do they belong to
Action-in-concert among top 10 the consistent actors stipulated in the Administrative Measures for the Acquisition of Listed
non-restricted current share holders, Companies; it is unknown to the company whether there is an affiliated relationship between
top 10 non-restricted current share the top ten non-restricted tradable shareholders as well as between the top ten non-restricted
holders and top 10 shareholders tradable shareholders and the other top ten shareholders, or whether they are included in the
consistent actors stipulated in the Administrative Measures for the Acquisition of Listed
Companies.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
37
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
38
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2017 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Zhang Guofeng Deputy General Manager Leave February 12,2018 Job change
Deputy GM.CFO, Secretary to the board of
Xue Gangyi Leave February 12,2018 Job change
directors
Fan Aijun CFO Appointed April 26,2018
Zhang Hushan Secretary to the board of directors Appointed May 17,2018
39
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
40
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd.
June 30, 2018
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 306,009,444.15 249,648,466.46
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Note receivable 33,293,659.53 17,800,808.72
Account receivable 311,419,183.31 280,383,810.21
Prepayments 14,262,064.82 13,371,261.26
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 15,287,712.47 7,736,032.47
41
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Repurchasing of financial assets
Inventories 190,097,635.16 176,214,199.33
Assets held for sales
Non-current asset due in 1 year
Other current asset 5,866,739.02 3,257,224.78
Total of current assets 876,236,438.46 748,411,803.23
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 104,127,592.86 84,591,794.06
Property investment 54,413,486.25 110,646,354.41
Fixed assets 364,119,471.83 334,707,635.51
Construction in progress 5,032,611.25 4,800,176.35
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 16,165,335.69 11,383,982.46
R & D petrol
Goodwill
Long-germ expenses to be amortized 911,014.41 1,327,675.53
Differed income tax asset 1,831,732.07 1,831,732.07
Other non-current asset 3,901,483.77 4,537,273.53
Total of non-current assets 550,502,728.13 553,826,623.92
Total of assets 1,426,739,166.59 1,302,238,427.15
Current liabilities
Short-term loans 262,000,000.00 312,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
42
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
current income account
Derivative financial liabilities
Note payable 472,278,000.00 411,410,000.00
Account payable 269,301,008.53 179,749,230.79
Advance payment 2,300,748.87 2,317,670.14
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 4,098,928.61 3,684,784.25
Tax payable 15,316,140.16 15,659,997.79
Interest payable
Dividend payable
Other account payable 39,919,608.45 44,403,126.16
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 12,690,000.00 47,090,000.00
Other current liability
Total of current liability 1,077,904,434.62 1,016,314,809.13
Non-current liabilities：
Long-term loan 1,500,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 1,500,000.00
Total of liability 1,077,904,434.62 1,017,814,809.13
43
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,575,094.29 958,575,094.29
Less：Shares in stock
Other comprehensive income 0.00 0.00
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Undistributed profit -854,801,362.32 -920,877,890.80
Total of owner’s equity belong to the
348,834,731.97 282,758,203.49
parent company
Minority shareholders’ equity 1,665,414.53
Total of owners’ equity 348,834,731.97 284,423,618.02
Total of liabilities and owners’ equity 1,426,739,166.59 1,302,238,427.15
Legal Representative: Lv Hongxian
Person in charge of accounting：Fan Aijun
Accounting Dept Leader: Niu Yanli
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 95,961,873.35 93,728,199.64
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Note receivable 179,825.64
Account receivable 1,104,100.68 350,383.40
Prepayments 6,409,584.06 4,852,929.09
44
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Interest receivable
Dividend receivable
Other account receivable 7,854,378.07 5,867,166.58
Inventories 13,139,745.53 1,273,568.27
Assets held for sales
Non-current asset due in 1 year
Other current asset 2,218,853.36
Total of current assets 124,469,681.69 108,470,925.98
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 264,127,592.86 252,751,794.06
Property investment 54,413,486.25 110,646,354.41
Fixed assets 136,638,160.22 92,238,100.45
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 7,571,806.17
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset
Total of non-current assets 462,751,045.50 455,636,248.92
Total of assets 587,220,727.19 564,107,174.90
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Note payable
45
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Account payable 218,196,632.46 135,394,136.00
Advance payment 192,246.35 180,083.38
Employees’ wage payable 683,163.79 458,709.22
Tax payable 15,297,680.32 15,345,282.22
Interest payable
Dividend payable
Other account payable 98,002,073.79 214,153,117.35
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 332,371,796.71 365,531,328.17
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities
Total of liability 332,371,796.71 365,531,328.17
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 958,575,094.29 958,565,294.29
Less：Shares in stock
Other comprehensive income 9,800.00
Special reserves
46
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Surplus reserves 125,686,000.00 125,686,000.00
Undistributed profit -948,787,163.81 -1,005,060,247.56
Total of owners’ equity 254,848,930.48 198,575,846.73
Total of liabilities and owners’ equity 587,220,727.19 564,107,174.90
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 511,696,731.41 550,074,257.84
Incl：Business income 511,696,731.41 550,074,257.84
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 505,398,898.77 540,112,621.78
Incl：Business cost 424,270,937.00 456,540,934.80
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4,097,639.38 4,459,150.00
Sales expense 12,662,136.26 12,358,836.00
Administrative expense 43,782,788.42 46,644,017.51
Financial expenses 20,585,397.71 18,617,069.49
Asset impairment loss 414,009.12 1,492,613.98
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 60,830,865.45 1,994,582.10
Incl: investment gains from affiliates 60,830,865.45 1,994,582.10
Gains from currency exchange
（“-”for loss）
Assets disposal income
Other income
47
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
III. Operational profit（“-”for loss） 66,714,688.96 11,956,218.16
Add ：Non-operational income 357,960.24 443,547.75
Less：Non business expenses 77,372.48 167,158.10
IV.Total profit(“-”for loss) 66,995,276.72 12,232,607.81
Less：Income tax expenses 561,775.84 600,586.60
V. Net profit 66,433,500.88 11,632,021.21
(1)Continuous operating net profit
(2) Net profit of termination
Net profit attributable to the owners of
66,076,528.48 11,418,319.36
parent company
Minority shareholders’ equity 356,972.40 213,701.85
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
(II)Other comprehensive income that will
be reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
48
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income 66,433,500.88 11,632,021.21
Total comprehensive income attributable
66,076,528.48 11,418,319.36
to the owner of the parent company
Total comprehensive income attributable
356,972.40 213,701.85
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.5535 0.0957
(II)Diluted earnings per share 0.5535 0.0957
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative: Lv Hongxian
Person in charge of accounting：Fan Aijun
Accounting Dept Leader: Niu Yanli
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 397,145,699.33 339,527,118.70
Incl：Business cost 362,672,276.66 305,125,226.46
Business tax and surcharge 1,515,717.24 841,394.14
Sales expense 324,477.46
Administrative expense 20,542,869.58 22,238,575.73
Financial expenses 10,591,372.14 5,993,807.50
Asset impairment loss
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 54,775,798.80 1,994,582.10
Incl: investment gains from affiliates 54,775,798.80 1,994,582.10
Assets disposal income
Other income
II. Operational profit（“-”for loss） 56,274,785.05 7,322,696.97
49
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Add ：Non-operational income 2,096.06 207,862.58
Less：Non business expenses 3,797.36 -267,191.65
III.Total profit(“-”for loss) 56,273,083.75 7,797,751.20
Less：Income tax expenses
IV. Net profit（“-”for net loss） 56,273,083.75 7,797,751.20
(1)Continuous operating net profit
(2) Net profit of termination
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
(II)Other comprehensive income that wi
ll be reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 56,273,083.75 7,797,751.20
VII. Earnings per share：
（I）Basic earnings per share 0.471 0.0653
(II)Diluted earnings per share 0.471 0.0653
50
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
183,435,859.06 233,913,811.59
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 3,865,269.30 4,086,887.50
Other cash received from business
14,049,354.57 8,555,466.77
operation
Sub-total of cash inflow 201,350,482.93 246,556,165.86
Cash paid for purchasing of
77,479,182.57 110,250,299.46
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
51
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 38,274,323.44 25,208,850.06
Taxes paid 14,899,387.30 17,335,347.98
Other cash paid for business activities 42,211,559.37 30,626,576.45
Sub-total of cash outflow from business
172,864,452.68 183,421,073.95
activities
Cash flow generated by business
28,486,030.25 63,135,091.91
operation, net
II.Cash flow generated by investing
Cash received from investment
8,160,000.00
retrieving
Cash received as investment gains 56,540,000.00 4,000,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
64,700,000.00 4,000,000.00
investment activities
Cash paid for construction of
fixed assets, intangible assets 2,164,376.72 5,343,707.62
and other long-term assets
Cash paid as investment 21,300,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
23,464,376.72 5,343,707.62
investment activities
Net cash flow generated by investment 41,235,623.28 -1,343,707.62
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
52
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Cash received as loans 20,000,000.00
Cash received from bond placing
Other financing –related ash received 399,577,250.28 548,004,868.94
Sub-total of cash inflow from financing
419,577,250.28 548,004,868.94
activities
Cash to repay debts 136,123,111.10 26,300,000.00
Cash paid as dividend, profit, or
20,924,052.91 22,593,991.30
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 297,487,262.11 667,171,141.01
Sub-total of cash outflow due to
454,534,426.12 716,065,132.31
financing activities
Net cash flow generated by financing -34,957,175.84 -168,060,263.37
IV. Influence of exchange rate
0.00
alternation on cash and cash equivalents
V.Net increase of cash and cash
34,764,477.69 -106,268,879.08
equivalents
Add: balance of cash and cash
126,225,466.46 273,768,758.46
equivalents at the beginning of term
VI ..Balance of cash and cash
160,989,944.15 167,499,879.38
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
60,926,056.16 132,211,763.35
rending of services
Tax returned
Other cash received from business
20,455.50 286,365.25
operation
Sub-total of cash inflow 60,946,511.66 132,498,128.60
Cash paid for purchasing of
94,856,965.27 81,048,957.61
merchandise and services
Cash paid to staffs or paid for staffs 21,685,566.62 9,247,217.96
Taxes paid 4,378,220.07 5,726,931.81
53
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Other cash paid for business activities 2,035,778.28 1,982,919.53
Sub-total of cash outflow from business
122,956,530.24 98,006,026.91
activities
Cash flow generated by business
-62,010,018.58 34,492,101.69
operation, net
II.Cash flow generated by investing
Cash received from investment
8,160,000.00
retrieving
Cash received as investment gains 56,540,000.00 4,000,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
64,700,000.00 4,000,000.00
investment activities
Cash paid for construction of
fixed assets, intangible assets 602,707.13 40,000.00
and other long-term assets
Cash paid as investment 21,300,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
21,902,707.13 40,000.00
investment activities
Net cash flow generated by investment 42,797,292.87 3,960,000.00
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received 266,746,000.00 383,791,136.86
Sub-total of cash inflow from financing
266,746,000.00 383,791,136.86
activities
Cash to repay debts
Cash paid as dividend, profit, or 10,829,540.25 8,540,566.36
54
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
interests
Other cash paid for financing activities 234,470,060.33 515,152,973.17
Sub-total of cash outflow due to
245,299,600.58 523,693,539.53
financing activities
Net cash flow generated by financing 21,446,399.42 -139,902,402.67
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
2,233,673.71 -101,450,300.98
equivalents
Add: balance of cash and cash
93,728,199.64 247,582,579.15
equivalents at the beginning of term
VI ..Balance of cash and cash
95,961,873.35 146,132,278.17
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrument Total of
Items Other Commo
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
119,37 -920,87
I.Balance at the 958,575 125,686 1,665,4 284,423
5,000. 7,890.8
end of last year ,094.29 ,000.00 14.53 ,618.02
00 0
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 958,575 125,686 -920,87 1,665,4 284,423
beginning of 5,000. ,094.29 ,000.00 7,890.8 14.53 ,618.02
55
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
current year 00 0
III.Changed in the 66,076, -1,665,4 64,411,
current year 528.48 14.53 113.95
（1）Total
66,076, 356,972 66,433,
comprehensive
528.48 .40 500.88
income
（II）Investment
-2,022,3 -2,022,3
or decreasing of
86.93 86.93
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
56
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -854,80
IV. Balance at the 958,575 125,686 348,834
5,000. 0.00 1,362.3
end of this term ,094.29 ,000.00 ,731.97
00 2
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrument Total of
Items Other Commo
Less: Speciali Attribut shareho
share Capital Compre Surplus n risk owners’
prefer Shares zed able lders’
Capita Sustai reserves hensive reserves provisio equity
red Other in stock reserve profit equity
nable Income n
stock
debt
119,37 -935,25
I.Balance at the 958,575 125,686 1,220,2 269,603
5,000. 3,002.6
end of last year ,094.29 ,000.00 85.74 ,377.39
00 4
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 -935,25
958,575 125,686 1,220,2 269,603
beginning of 5,000. 3,002.6
,094.29 ,000.00 85.74 ,377.39
current year 00 4
57
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
III.Changed in the 14,375, 445,128 14,820,
current year 111.84 .79 240.63
（1）Total
14,375, 445,128 14,820,
comprehensive
111.84 .79 240.63
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
58
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -920,87
IV. Balance at the 958,575 125,686 1,665,4 284,423
5,000. 7,890.8
end of this term ,094.29 ,000.00 14.53 ,618.02
00 0
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,005,0
119,375, 958,575,0 125,686,0 198,575,8
60,247.
I.Balance at the 000.00 94.29 00.00 46.73
end of last year 56
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,005,0
119,375, 958,575,0 125,686,0 198,575,8
beginning of 60,247.
000.00 94.29 00.00 46.73
current year 56
III.Changed in the 56,273, 56,273,08
current year 083.75 3.75
（1）Total
56,273, 56,273,08
comprehensive
083.75 3.75
income
（II）Investment or
decreasing of
59
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
60
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
-948,78
IV. Balance at the 119,375, 958,575,0 125,686,0 254,848,9
7,163.8
end of this term 000.00 94.29 00.00 30.48
1
Amount in last year
In RMB
Amount in last year
Other Equity instrument
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
Preferre Sustain Shares in able owners’
Capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,016,3
119,375, 958,575,0 125,686,0 187,306,0
30,071.
I.Balance at the 000.00 94.29 00.00 22.91
end of last year 38
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,016,3
119,375, 958,575,0 125,686,0 187,306,0
beginning of 30,071.
000.00 94.29 00.00 22.91
current year 38
III.Changed in the 11,269, 11,269,82
current year 823.82 3.82
（1）Total
11,269, 11,269,82
comprehensive
823.82 3.82
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by
shareholders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
61
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
-1,005,0
IV. Balance at the 119,375, 958,575,0 125,686,0 198,575,8
60,247.
end of this term 000.00 94.29 00.00 46.73
56
III. Corporate Information
Chongqing Jianshe Vehicle System Co.,Ltd. (hereinafter referred to as the "Company", "Company" or "Chongqing
Jianshe")，the company’s original name is Chongqing Jianshe Motorcyle Co.,Ltd.，was jointly set up in July 1995
by the Construction Industry (Group) Co., Ltd. and China North Industries Shenzhen Corporation. The Business
62
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
License of the Enterprise: No. 915000007474824231. The Company was listed in July 1995 at the Shenzhen
Stock Exchange. The Company is engaged in the manufacturing industry.
As at December 31, 2017, the Company issued 119,375,000 shares in total and had the registered capital of
119,375,000. The registration place: NO.1, JIANSHE ROAD HUAXI INDUSTRY PARK, BANAN DISTRICT,
CHONGQING; the headquarters address: Banan District, Chongqing Municipality. Legal representative: Lv
Hongxian. The main business activities: research and development, processing, manufacturing and related
technical services of Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related
technical services of tooling (except for those subject to national special provisions) ; R & D, production and sales
of motorcycle engines; research , development and processing of mechanical and electrical products, home
appliances, bicycles, environmental protection product; imports, wholesale, retail, commission agency (except
auction) of similar products of these products. The parent company is Chongqing Jianshe mechanical and
electrical co., LTD. (hereinafter referred to as the "Jianshe Jidian "). The actual controller of the Company is
China South Industries Group Corporation(CSGS), and the ultimate controller of the Company is the State-owned
Assets Supervision and Administration Commission (SASAC).
On December 27, 2017, the company issued an announcement that it has completed the relevant business
registration procedures for the change in Chinese, obtained the notice of approval for change of registration of
chongqing administration of industry and commerce (Chongqing Industrial and commercial registration of
changes [2017] No.1206-1)，got an issue of a business license and approval rear of implementing the shenzhen
stock exchange. The name of the company was changed from " Chongqing Jianshe Motorcycle Co., Ltd." to "
Chongqing Jianshe Vehicle System Co.,Ltd.". Abbreviation of the company was changed from "Jianmo B" to
"Jianche B", and the securities code of the company was unchanged at 200054.
The disclosure of the financial report was approved by the Board of Directors on July 25, 2018.
As at June 30, 2018, one subsidiaries were included in the scope of consolidated financial statements of the
Company，See "Note 7 Equity in other entities" for details of scope consolidated financial statements and the
change therein. The scope consolidated financial statements of this year has not changed compared with the last
year.
The company and Chongqing Jianshe Automobile A/C Co., Ltd., its important subsidiary, mainly engaged in the
manufacture, sale of air conditioners and accessories, air conditioning and spare parts maintenance.
IV.Basis of preparation for financial statements
1 Basis of preparation
The Company prepares the financial statements on the basis of going concern, according to actual transactions and
events, and in accordance with the Accounting Standards for Business Enterprises – Basic Standards and 38
63
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
concrete accounting standards issued by the Ministry of Finance on February 15, 2006, the subsequently issued
Accounting Standards for Business Enterprises – Application Guidelines, and the Accounting Standards for
Business Enterprises – Interpretations and other relevant provisions (hereinafter collectively referred to as –
Accounting Standards for Business Enterprises‖), as well as Compilation Rules for Information Disclosure by
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports issued by China
Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group adopted
the accrual basis in accounting. Except for some financial instruments, where impairment occurred on an asset, an
impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Going Concern
The Company was on a going concern basis in 12 months as of the end of the current reporting period and was not
affected by any material event having impact on the going concern.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
The disclosure as set out below cover the specific accounting policies and accounting estimates developed by the
Company in accordance with the actual production and management features. See "Note 3.11 Provision for bad
debts of accounts receivables, "Note 3.12 Inventories", "Note 3.16 Fixed assets", "Note 3.19 Intangible assets"
and "3.25 Revenues" for details.
1. Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system, and have truly and completely reflected of the financial status in Juneber
30, 2018 operational results, cash flow, and other relevant information of January–June 2018.
2 .Accounting period
The Company’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year from
January 1 to December 31 as one accounting year.
3.Operating cycle
The normal operating cycle refers to the period from the assets used for processing after purchased by the
company to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company,
and which is as the division criterion for the liquidity of assets and liabilities.
4.Functional currency
The functional currency is Renminbi.
5.Accounting treatments of the combination of enterprises under common control and the combination of
enterprises not under the common control
Business combination refers to the transactions or items with one reporting entity formed by the combination of
two or more separate enterprises. The business combination shall be divided into the business combination under
common control and the business combination under non-common control.
64
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（1）Business combination under common control
The business combination under common control refers to the business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that
control is not transitory. Of which, the combining party is that acquiring the control right to other combining
enterprises at combining date, and the combining date means the date that the combining party actually acquires
the control right of the combined party. The acquisition date means the date that the acquirer actually obtains the
control right of the acquiree.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the
combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Combination of enterprises not under the common control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree.
For the business combination under non-common control, the merger costs include the assets paid for obtaining
the control right of acquiree by the acquirer, the liabilities occurred or borne and the fair value of equity securities
issued, the intermediary fees for audit, legal services, evaluation and consultation when the business combination
issued, and other management costs shall be recorded into the current profits and losses when occurred. The
transaction costs of equity securities or debt securities issued for the merger consideration by the acquirer shall be
included into the initially recognized amount of the equity securities or the debt securities. The contingent
consideration involved shall be recorded into the merger cost as per the fair value at the acquisition date. Within
12 months after the acquisition date, the combining business reputation should be adjusted correspondingly if the
contingent consideration is required to adjust because of new or further evidence for the existed situation on the
acquisition date. The merger cost issued by the acquirer and the identifiable net assets acquired in the combination
are measured as per the fair value on the acquisition date. The difference of the merger cost minus the fair value
shares of identifiable net assets obtained by the acquiree during the merger on the acquisition date, is recognized
as the business reputation. While the merger cost is less than the fair value shares of identifiable net assets
65
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
obtained by the acquiree during the merger, all the measurement on the identifiable assets, the liabilities, the fair
value of liabilities and the merger cost obtained by the acquiree should firstly be rechecked, and the difference
shall be recorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions, the
multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of
Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and
Accounting [2012] No.19) and the judgment standards on “the package deal” in Article 51st of “Accounting
Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see Note 3.6 (2)). For the
package deal, please refer to above description of this section and Note 3.14 “Long-term Equity Investment” to
conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased party
held before the purchase date and the new investment cost at the purchase date shall be as the initial investment
cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree held before the
acquisition date, the investment and the relevant other comprehensive incomes shall be disposed through the
accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree
(Namely, the rest is transferred into the current investment incomes with the exception of the corresponding shares
of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquiree as
per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be
measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value
and the book value is recorded into the current investment income. For the other comprehensive incomes involved
in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be
disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or
liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition
date, with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the
66
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
defined benefit plans re-measured by the acquire as per the equity method).
6. Preparation of consolidated financial statements
（1）Principle for determining the consolidation scope
The consolidation scope for financial statements is determined on the basis of control. The term “control” is the
power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtain
variable returns and is able to influence the amount of returns. The scope of consolidation includes the Company
and its all subsidiaries. A subsidiary is an enterprise or entity controlled by the Group.
Once any changes in the relevant facts or situations resulted in any changes in the elements involved in the
aforesaid definition of “control”, the Company shall carry out a reassessment.
（2）Compiling method of consolidated accounting statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. through the business combination under
non-common control, the business performance and the cash flow after the acquisition date have been properly
included in the consolidated profit statement and the consolidated cash flow statement, and the opening balance
and the comparison balance of the consolidated financial statement shall not be adjusted. For the subsidiaries
increased through the business combination under common control, the business performance and the cash flow
from the beginning of current combination period to the combination date have been properly included in the
consolidated profit statement and the consolidated cash flow statement, and the comparison balance of the
consolidated financial statement shall be adjusted simultaneously.
With the preparation of the consolidated financial statement, the necessary adjustment shall be made according to
the accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control, the financial statement shall
be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of
the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
67
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
shall be respectively as the minority equity and the minority interest income and individually listed under the
shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion from
the net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons,
the remaining equity should be measured again according to the fair value on the control lost date. The difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are
transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or
the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes 3.14
“Long-term Equity Investment” or Notes 3.10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at least.
④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment
in Subsidiary without Control Lost” (please refer to (2) ④ in Note 3.14) and “The Control on Original Subsidiary
Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For the package
deal from the transactions after the disposal of equity investment in the subsidiary till the control right lost, the
transactions shall be as one transaction of the disposal of subsidiary and the control lost for the accounting
treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative to the
disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
68
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
when the control lost.
7. Joint venture arrangements classification and Co-operation accounting treatment
Joint enterprise arrangement is two or more parties jointly control the enterprise. The company enjoys rights and
bears obligations based on joint enterprise arrangement. Joint enterprise arrangement is composed of joint
operation and joint enterprises. Joint operation means the company has the right to arrange related assets and
related liabilities. Joint enterprises means the company only has the right to arrange the net asset.
The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies
stated in "Long-term Stock Ownership for Equity Method Calculation" (please refer to (2) ④ in Note 3.14)
As one party of joint operation, the company confirms assets and liabilities only held by itself and confirms joint
assets and liabilities as proportion of the company’s shares; confirm incomes from sales and production in the way
of joint operation as proportion of the company’s shares; confirm the company’s own expenses and all expenses in
the way of joint operation as proportion.
As a party of joint operation, the company funds or sells assets (not used for operation, the same below) of joint
operation or purchases assets from joint operation. Before the assets are sold to a third party, the company only
confirms the loss and benefit in the trade which belong to other parties in the joint operation. In case the assets is
in conformity to the asset impairment loss regulated in Asset Impairment --No.8 of Accounting Criteria for
Enterprises, the company confirms all losses in full amount for the company funding or selling assets of joint
operation. The company confirms the loss as proportion of shares for the company purchasing assets from joint
operation.
8.Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to cash on hand and deposits of
that are readily available for payment. And the term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
9. Foreign currency business and foreign currency translation
（1）Translation Method of Foreign Currency Transaction
The shot exchange rate (usually refers to the middle rate at the date of currency exchange published by the
People’s Bank of China, hereinafter inclusive) on the transaction date is adopted to convert to the amount of
functional currency when the foreign currency transaction issued in the company is initially recognized. However,
the foreign currency exchanges or the transactions relative to the foreign currency exchanges occurred in the
company shall be translated into the amount of functional currency as per the actually adopted exchange rate.
69
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（2）Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign Currency
On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on
the balance sheet date, and the foreign exchange conversion gap arising from which shall be recorded into the
profits and losses of the current period, except for ① the balance of exchange arising from special foreign
currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing
costs. ② the exchange balance generated from other book balances in the foreign currency monetary items
available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive
incomes.
When it involves overseas business in preparing the consolidated financial statement, for the translation difference
of foreign currency monetary items of net investment in overseas business arising from the change in exchange
rate, it shall be recorded into the other comprehensive income; and be recorded into disposal gains and losses at
current period when disposing overseas business.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the amount
of functional currency translated at the spot exchange rate on the transaction date. The non-monetary items of
foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
recognized date, and the gap of the translated amount of functional currency and the original the amount of
functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and
recorded into the current profits and losses or recognized as other comprehensive incomes.
（3）Translation Method of Foreign Currency Financial Statement
For the overseas business operation involved in the preparation of the consolidated financial statement, the
exchange balance arising from the change in exchange rate for the foreign currency monetary items of the net
investment in the overseas business, shall be as “translation reserve of foreign currency statement” and recognized
as other comprehensive incomes. The profits and losses of the current disposal period shall be recorded when
disposal of the overseas business operations.
The foreign currency financial statement of the overseas business operation shall be translated as RMB statement
as per the following methods: the assets and liabilities in the balance sheet shall be translated at a spot exchange
rate on the balance sheet date. For the shareholders’ equity items, other items shall be translated at a spot exchange
rate when occurring, except for the “undistributed profit” items. The earnings and expenses items in the profit
statement shall be translated at a spot exchange rate on the transaction date. Moreover, the undistributed profits at
the beginning of this year are the profits translated at the end of last year which shall be distributed and listed all
the items measurement as per the translated profits. The difference between the translated assets items and the sum
of the liabilities items and the shareholders’ equity items shall be as the translation reserve of foreign currency
statement and recognized as other comprehensive incomes. When disposing the overseas business operation and
losing the control right, the translation reserves of foreign currency statement related to the overseas business
operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the current
disposal profits and losses or shifted as per the disposal proportion of the overseas business operation.
70
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
The cash flows of foreign currency and overseas subsidiary shall be translated at the spot exchange rate on the
cash flow date. The influence amount of the change in exchange rate on the cash shall be individually listed and
reported as the adjustment items in the cash flow statement.
The amount at the beginning of this year and the actual amount of last year shall be listed according to the
translated amount of the financial statement.
If the control on the overseas business operation lost due to the disposal of partial equity investment or other
reasons when disposing all the owners’ equity of the overseas business operation of the company, the translation
reserves of foreign currency statement belong to the owners’ equity of the parent company related to the overseas
business operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the
current disposal profits and losses.
If the held equity proportion of the overseas business operation reduced due to the disposal of partial equity
investment or other reasons, but the control on the overseas business operation not lost, the translation reserves of
foreign currency statement related to the partial disposal of the overseas business operation shall be belong to the
minority equity and not recorded into the current profits and losses. When disposing partial equity of the joint
ventures or the cooperative enterprises of the overseas business operations, the translation reserves of foreign
currency statement related to the overseas business operations shall be recorded into the current disposal profits
and losses as per the disposal proportion of the overseas business operations.
10. Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial
instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial
recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the
current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses.
For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as
initial amount.
（1）Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in
the orderly transactions occurring on the measurement date for the market participants. If there exists the active
market for the financial instrument, the company shall recognize the fair value according to the quotation in the
active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers,
Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair
dealing. For there isn’t the active market for the financial instrument, the company shall recognize the fair value
with adopting the valuation technique which includes the price used in the market transactions recently conducted
by the parities with voluntary trade and under the consideration and acquainting of the situation, the current fair
value in reference to other same financial instruments, the discount cash flow method and the option pricing
model.
（2）Classification、recognition and measurement of financial instruments
71
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
The accounting recognition and de-recognition shall be conducted at the transaction date in the conventional way
for the financial assets dealing. The financial assets are divided into the financial assets, the held-to-maturity
investment, the loans, the receivables and the sellable financial assets which are measured at their fair values and
of which the variation are recorded into the current profits and losses when recognized initially.
① Financial assets (financial liabilities) measured at fair value through current profit and loss
Including the tradable financial assets and the financial assets designated at their fair values and of which the
variation is recorded into the current profits and losses.
The tradable financial assets refer to the financial assets meeting any of the following requirements: A. the
purpose to acquire the financial assets is for selling in the short-term. B. forming a part of the identifiable
combination of financial instruments which are managed in a centralized way and for which there are objective
evidences proving that the company may manage the combination by way of short-term profit making in the near
feature. C. being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments belong to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quotation in the
active market and whose fair value cannot be reliably measured, and which shall be settled by the delivery of the
equity instruments.
The financial assets meeting any of the following requirements can be designated when they are initially
recognized as financial assets measured at their fair values and of which the variation is recorded into the current
profits and losses: A. the designation is able to eliminate or obviously reduce the discrepancies in the recognition
or measurement of relevant gains or losses arisen from the different basis of measurement of the financial assets.
B. the official written documents on risk management or investment strategies of the company have recorded that
the combination of the financial assets, or the combination of the financial assets and liabilities will be managed
and evaluated on the basis of the fair value and reported to the key management personnel.
The financial assets measured at their fair values and of which the variation is recorded into the current profits and
losses shall be made the subsequent measurement as per the fair value, and the gains or losses formed from the
variation of the fair value as well as the dividend and interest incomes related to the financial assets shall be
recorded into the current profits and losses.
②Held-to-maturity investments
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or
determinable amount of report price and the company holds for a definite purpose or is able to hold until its
maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest
rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or
amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or
expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial
72
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or
liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate
used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets
or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the
charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received
between all the parties of the financial assets or liabilities contracts.
③ Loans and Accounts receivable
The loans and the receivables refer to a non-derivative financial asset without the quotation, a fixed or
determinable amount of repo price in the active market. The financial assets divided into loans and receivables of
the company shall include the bill receivable, the accounts receivable, the interest receivable, the dividends
receivable and other receivables.
The loans and the receivables shall be made the subsequent measurement on the basis of the actual interest rate
and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization
shall recorded into the current profits and losses.
④ Available-for-sale financial assets
The sellable financial assets refer to the non-derivative financial assets which are designated as sellable when they
are initially recognized as well as the financial assets other than the financial assets, the loans, the receivables and
the held-to-maturity investments measured at the fair value and of which the variation recorded into the current
profits and losses.
The costs of the sellable liability instrument investments at the end of period shall be recognized as per the
post-amortization cost method, which is the amount that the accumulated amortization amount, formed after the
amortization for the initially recognized amount with the compensated capital deducted plus or minus the
difference between the initially recognized amount and the amount at the maturity date with use of the actual
interest rate method, with deduction of the impairment losses occurred. The costs of the sellable equity instrument
investments at the end of period are the initially acquired costs.
The sellable financial assets shall be conducted the subsequent measurement at the fair value，the gains or losses
arising from the change in the fair value, except that the impairment losses and the exchange balance related to the
monetary financial assets of foreign currency and the post-amortization costs are recorded into the current profits
and losses, shall be recognized as other comprehensive incomes, transferred out and recorded into the current
profits and losses when the de-recognition of the financial assets. However, The equity instrument investment
which has no quotation in the active market and whose fair value cannot be reliably measured, and the derivative
financial assets which are connected with the equity instrument and required to settle by the delivery of the equity
instrument shall be conducted the subsequent measurement by costs.
The interests acquired from the sellable financial assets during the holding period and the cash dividends declared
to deliver by the investee shall be recognized as the investment returns.
73
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（3）Impairment of financial assets
The Company assesses at the balance sheet date the carrying amount of every financial asset except for the
financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be
impaired, a provision is provided for the impairment.
The Group carries out a separate impairment test for every financial asset which is individually significant. As for
a financial asset which is individually insignificant, an impairment test is carried out separately or in the financial
asset group with similar credit risk. Where the financial asset (individually significant or insignificant) is found
not impaired after the separate impairment test, it is included in the financial asset group with similar credit risk
and tested again on the group basis. Where the impairment loss is recognized for an individual financial asset, it is
not included in the financial asset group with similar credit risk for an impairment test.
① Impairment of held-to- maturity investments、loans and accounts receivable
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present
value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate
the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition
of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after
impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of
impairment loss on the reserving date.
②Impairment of available-for-sale financial assets
The decline for the fair value of the sellable equity instrument investments can be judged as serious or
non-transient depreciation by the relevant comprehensive factors, which shows that the sellable equity instrument
investments have the impairment. Of which, the “serious depreciation” refers to the decline range of the fair value
accumulatively over 20%, and the “non-transient depreciation” is the decline period of the fair value continuously
beyond 12 months.
When the sellable financial assets impair, the accumulated losses formed due to the depreciation of the fair value
for other comprehensive incomes originally recorded shall be transferred out and recognized as the current profits
and losses, and the transferred accumulative losses are the balances of the costs of the assets initially acquired
with deduction of the withdrawn capitals, the amortized amount, the current fair value and the impairment losses
initially recorded into profits and losses.
After the impairment losses recognized and if there are objective evidences proving that the financial assets values
have resumed after the period and have objectively involved in the matters occurred after the losses recognized,
the impairment losses originally recognized shall be switched back, the reverse of the impairment losses for the
sellable equity instrument investments shall be recognized as other comprehensive incomes and the reverse of the
impairment losses for the sellable liability instrument shall be recorded into the current profits and losses.
The equity instrument investment which has no quotation in the active market and whose fair value cannot be
reliably measured, or the impairment losses of the derivative financial assets which are connected with the equity
instrument and required to settle by the delivery of the equity instrument shall not be reversed.
74
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（4）Recognition and measurement for transfer of financial assets
For financial asset that satisfies the following criteria, it shall stop recognizing the financial asset: 1) the contract
rights to collect the cash flow of the financial assert has been terminated; 2) the financial assert has been
transferred with nearly all of the risks and rewards related to the ownership of the financial assert transferred to
transferee; 3) the financial assert has been transferred with the control to such financial asserts waived, though this
enterprise has not transferred or retained nearly all the risks and rewards related to the ownership of the financial
asset.
If this enterprise has neither transferred nor retained almost all the risks and rewards on the asset ownership, it
shall, within the extent of its continuous involvement in the transferred financial asset and recognize the relevant
liability. The term "continuous involvement in the transferred financial asset" shall refer to the risk level that this
enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the book value of the transferred financial asset and the sum of consideration received from the
transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's equities
of other comprehensive income, shall be recorded in the profits and losses of the current period.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the current
period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount
changes in fair value originally recorded owner’s equities which is corresponding to stopped, the book value of
the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been
stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement, prior to
confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has been
transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to the
ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the
financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to principles stipulated above.
（5）Classification and measurement of financial liabilities
Financial liabilities shall be classified into the two categories when they are initially recognized: the financial
liabilities which are measured at their fair values and of which the variation is included in the current profits and
losses; other financial liabilities. The initial recognition of financial liabilities shall be measured at fair value. For
the financial liabilities which are measured at their fair values and of which the variation is included in the current
profits and losses, the related transaction cost shall be included directly in the current profits and losses; for other
financial liabilities, the related transaction cost included in the initially recognized amount.
75
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
① Financial liabilities measured at fair value through current profit and loss
Such financial liabilities are divided into transactional financial liabilities and financial liabilities designated to be
measured at fair values and whose changes are recorded in current gains and losses in the initial recognition under
the same conditions where such financial assets are divided into transactional financial assets and financial assets
designated to be measured at fair values and whose changes are recorded in current gains and losses in the initial
recognition.
Financial liabilities measured at fair values and whose changes are recorded in current gains and losses are
subsequently measured at their fair values. Gains or losses arising from the fair value changes, as well as the
dividend and interest expenses in relation to the said financial liabilities, are recorded in the profits and losses for
the current period.
② Other Financial liabilities
And are not quoted in an active market, for which there is no quoted price in the active market and whose fair
value cannot be reliably measured, this enterprise shall make subsequent measurement according to its cost. For
other financial liabilities, this enterprise shall make subsequent measurement on the basis of the post-amortization
costs by adopting the actual interest rate method, with profits or losses resulting from stopping recognition or
amortization recorded into the profits and losses of the current period.
③ Financial guarantee contract and loan commitment
For the financial guarantee contracts which are not designated as a financial liability measured at its fair value and
the variation thereof is recorded into the profits and losses of the current period, or the loan commitment which is
not designated as a financial liability measured at its fair value and the variation thereof is recorded into the gains
and losses that will be loaned lower than the market interest rate, which shall be initially recognized by fair value,
and the subsequent measurement shall be made after they are initially recognized according to the higher one of
the following: a. the amount as determined according to the Accounting Standards for Enterprises No. 13 –
Contingencies; b. the surplus after accumulative amortization as determined according to the principles of the
Accounting Standards for Enterprises No. 14 - Revenues is subtracted from the initially recognized amount.
（6）Conditions for derecognition of financial liabilities
Financial liabilities shall be entirely or partially derecognized if the present obligations derived from them are
entirely or partially discharged. Where the Company enters into an agreement with a creditor so as to substitute
the current financial liabilities with new ones, and the contract clauses of which are substantially different from
those of the current ones, it shall recognize the new financial liabilities in place of the current ones.
Upon entire or partial derecognition of financial liabilities, differences between the carrying amounts of the
derecognized financial liabilities and the consideration paid (including non-monetary assets surrendered or new
financial liabilities assumed) are charged to profit or loss for the current period.
（7）Derivatives and embedded derivatives
Derivative financial instruments include derivatives are initially measured at fair value at the date when the
derivative contracts are entered into and are substantially re-measured at fair value. The resulting gain and loss is
76
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
recognized in profit or loss.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as
a financial asset or financial liability at fair value though profit or loss, and the treated as a standalone derivative if
(a) the economic characteristics and risks of the embedded derivative are not closely related to the economic
characteristics and risks of the host contract; and (b) a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative. If the Company is unable to measure the embedded derivative
separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a
financial asset or financial liability at fair value through profit or loss.
（8）Offset of Financial Asset and Financial Liability
Where this enterprise has the legal right to offset its recognized financial asset and financial liability, and it is able
to perform this legal right, and if it plans to settle with the net amount of and cash the financial asset and liquidate
the financial liability, it shall itemize and show in the balance sheet the amounts after the financial asset and the
financial liability offset each other. For any other circumstances, the financial asset and financial liability shall not
offset each other, and shall be itemized and shown separately in the balance sheet.
（9）Equity Instruments
The "equity instruments" refers to the contracts which can prove that this enterprise holds the surplus equities of
the assets after the deduction of all the debts. This enterprise deal the equity instruments issued (including
refinancing), repurchased, sold or cancelled as changes of equity. It shall not recognize the changes of fair value of
equity instruments. The transaction expenses associated with equity transactions shall be deducted from the
equity.
This enterprise shall deduct the shareholders' equity for various kinds of distributions (not including stock
dividends) to the holders of equity instruments. It shall not recognize the amount of changes in the fair value of
equity instruments.
11.Account receivable
(1) Bad debt provision on receivable accounts with major amount individually
Assessment basis or standard of Accounts receivable have an individual amount of more than RMB5 million,
individually significant amount and other receivables have an individual amount of RMB3 million.
The separate impairment tests are carried out for the accounts receivable.
Individual provision for bad debt of Provision for bad debts shall be made at the difference of present values of
significant accounts receivable estimated future cash flows in short of their book values and included in
current profit and loss, if any objective evidence indicates the impairment.
77
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Accounts receivable with provision for bad debts accrued by credit risk features portfolio
Name Basis of bad debt provision
Accounts receivable without provision for bad debt Age analysis method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Proportion of provision for accounts Provision for bad debt of other receivables
Aging
receivable (%) (%)
1-6 months（including 6 months） 0.00% 0.00%
Within 6 months- 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons for individual provision for bad debts: If there is any
clear evidence indicating that the receivables cannot or are
unlikely to be recovered, for example, the bankruptcy,
insolvency, insufficient cash flow of the debtor, or the insolvency
Reasons of Withdrawing Individual Bad Debt Provision in a short time due to the production halt resulting from the
severe natural disaster, or the accounts receivable may be
exposed to risk as indicated by other evidence, the individual
provision for bad debt will be made.
Method of provision for bad debt: The provision for bad debt is
individually recognized at the difference between the book value
and the present value of estimated future cash flow. Method of
Withdrawing Method of Bad Debt Provision
provision for bad debt: The provision for bad debt is individually
recognized at the difference between the book value and the
present value of estimated future cash flow.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
78
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
No
（1）Classification of inventories
Inventories are classified into: raw materials, consigned processing materials, low-cost consumables, packaging
materials, stock commodities, goods in progress, semi-finished goods, finished goods, etc.
（2）Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by
their actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall be
measured with the weighted average method when they are being sent out. Low-value consumption goods shall be
written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be
recorded into cost according to the predicted usage times.
（3）Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make
the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
（4）Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
13. Held-for-sale assets
The Company will retrieve its book value by means of selling assets (including the exchange of commercial
non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meeting
two of the following conditions, the book value will be divided into held-for-sale category: (1) When a certain
non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with
the convention , assets can be sold immediately under the current situation. (2)The Company has made decision
for the selling plans and has acquired assured purchase commitment, predicting that selling will be completed
within one year.( The selling, which can only be sold after acquiring approval from relevant authorities or
supervision departments according to relevant provision requirement , has acquired its approval ).
The Company will be specifically for dividing the non-current assets or disposal group which are acquired from
reselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated condition
79
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
that the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or remeasured
and divided into held-for-sale category on balance sheet date, if its book value is higher than the net amount after
fair value deducts selling expense, the book value will be written down to the net amount after fair value deducts
selling expense, and the written-down amount will be confirmed as assets impairment losses and counted into the
current profits and losses, and the impairment provision with held-for-sale assets will be withdrawn in the
meanwhile. For the held-for-sale disposal group’s confirmed amount of loss of asset impairment, the book value
of goodwill will be deducted first, and its book value will then be deducted proportionally according to the book
value’s percentages of all non-current assets in the disposal group which can be adopted by the measurement
stipulations of Accounting Standards for Business Enterprises NO.42- Held-for-sale Non-current Assets, Disposal
Groups and Operation Termination
If any increment occurs in the net amount after the held-for-sale non-current assets on the subsequent balance
sheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred back
within the amount of asset impairment losses confirmed after being divided into held-for-sale category, and the
amount transferred back will be counted into the current profits and losses. There will be no restitution for asset
impairment losses confirmed before being divided into held-for-sale category. The amount deducted previously of
held-for-sale disposal group shall be recovered, and when after being divided into held-for-sale category, it will be
transferred back within the amount of impairment confirmed by non-current assets by the means of the measure
stipulations of Accounting Standards for Business Enterprises NO.42- Held-for-sale Non-current Assets, Disposal
Groups and Operation Termination, and the amount transferred back will be counted into the current profits and
losses. There will be no restitution for the book value of goodwill which has been deducted and for asset
impairment losses confirmed before being divided into held-for-sale category which can be adopted by the
measure stipulation of this principle.
Non-current held-for-sale assets or non-current assets in the disposal group shall not be depreciated or amortized,
and interest and other expenses on liabilities held in the disposal group for sale shall continue to be recognized.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-sales category,
the Company will not continue to divide it into on-sales category or remove the non-current assets from the
on-sales disposal group, and the valuation will be made according to the lower one between two of followings:
（1）Book value before being divided into on-sales category, and the amount of money after being under the
situation where book value is supposed not to be divided into on-sales category and adjustment is made in
depreciation, amortization or impairment which should have been confirmed. （2）Recoverable amount.
When derecognizing the on-sales non-current assets or disposal group, the Company will count the gains and
losses which are yet to be confirmed into the current profits and losses.
80
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
14. Long-term equity investment
The long-term equity investment in this section refers to the long-term equity investment of this enterprise that is
able to control to or does joint control with or significant influences over the invested enterprise. For the
long-term equity investment of this enterprise that is not able to control to or does not do joint control with or
have significant influences over the invested enterprise, this enterprise shall record it as available-for-sale
financial asset or the financial asset measured by its fair value with its changes in fair value recorded into the
profits or losses of current period as the changes. For details of its accounting policy, please refer to Note 3.10
"Financing Instruments".
The term "joint control" refers to the joint control over an arrangement of this enterprise in accordance with the
contracts and agreements, and decisions over relevant activity of such arrangement shall not be unless the assent
on sharing the control power. The term "significant influences" refers to this enterprise's power to participate in
making decisions on the financial and operating policies of the invested enterprise, but not to control or do joint
control together with other parties over the formulation of these policies.
（1）Determination of investment cost
For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book
value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The
difference between the initial cost of the long-term equity investment and the payment in cash, no-cash assets
transferred as well as the book value of the debts borne by the merging party shall offset against the capital reverse.
If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the
merging enterprise is that it issues equity securities, it shall, on the date of merger, regard the share of book value
of the owner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face
value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the
long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. For the merger of enterprises under
the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal
with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package
deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal",
it shall, on the date of merger, regard the share of book value of the owner’s equity of the merged enterprise as the
initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the
capital stock, while the difference between the initial cost of the long-term equity investment and total face value
of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the
retained earnings shall be adjusted. The equity investment held by this enterprise before the date of merger shall
be accounted for by equity method, or shall be recorded as the other comprehensive income recognized as
available-for-sale financial asset and not accounted for.
For the merger of enterprises not under the same control, it shall, on the date of merger, regard the share of the
81
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment.
The merger costs include the assets paid, liabilities occurred or borne and sum of the fair value of the equity
securities issued by the purchaser. For the merger of enterprises not under the same control through gaining the
shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways
depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals
as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard
the sum of book value of the owner’s original equity of the merged enterprise and the newly increased investment
cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise
accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for
temporarily. For the equity investment accounted for as available-for-sale financial asset, the difference of its fair
value and its face value and the accumulated changes in its fair value originally recorded as other comprehensive
income shall be switched to the profits or losses of the current period.
The audit cost, law service cost, evaluation and consultation fees and agent commissions as well as other related
administration costs occurred and borne by the merging or purchasing enterprise for the purpose of merger, shall
be recorded into the profits or losses of current period at the time when the costs occurred.
Other equity investments except the long-term equity investment formed by merger of enterprises shall be initially
ascertained by their costs which, depending on the different ways in acquiring the long-term equity investments,
shall be recognized separately as cash purchasing prices actually paid by this enterprise, fair value of the equity
securities issued by this enterprise, agreed value of the investment contracts or agreements, fair value or original
book value of the assets obtained by exchange of no-monetary assets, the fair value of the long-term equity
investment itself, etc. The relevant expenses, tax payments as well as other necessary expenses directly associated
with obtaining the long-term equity investment shall be recorded into the investment costs as well. If this
enterprise is able to do joint control or significant influence, which does not constitute control, over the invested
entity as a result of additional investment, the long-term equity investment cost shall be the sum of the fair value
of the equity investment ascertained in accordance with the Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instrument and the cost of the increased investment.
（2）Subsequent measurement and recognition of profit or loss
A long-term equity investment of this enterprise that does joint control (not including joint venture) or significant
influences over the invested entity shall be measured by employing the equity method. Besides, the cost method is
employed in this enterprise's financial reports to measure the long-term equity investment that could form control
over the invested entity.
① Long-term equity investment calculated under the cost method
The price of a long-term equity investment measured by employing the cost method shall be included at its initial
82
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
investment cost. If there are additional investments, the cost of the long-term equity investment shall be adjusted.
Except the prices actually paid when obtaining the investment or cash dividends or profits being approved in the
consideration but not yet issued, the investment income of the current period shall be recognized in accordance
with the cash dividends or profits being approved by the invested entity.
② Long-term equity investment calculated under the equity method
If the initial cost of a long-term equity investment is more than the investing enterprise's attributable share of the
fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity
investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing
enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
difference shall be included in the current profits and losses and the cost of long-term equity investment shall be
adjusted simultaneously.
When employing the equity method, this enterprise shall, in accordance with the attributable share of the net
profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the
long-term equity investment. This enterprise shall, in the light of the profits or cash dividends declared to
distribute by the invested entity, calculate the proportion it shall obtain, and shall reduce the book value of the
long-term equity investment correspondingly. Where any change is made to the owner's equity other than the net
profits and losses of the invested entity, the book value of the long-term equity investment shall be adjusted and
included in the capital reserves. This enterprise shall, on the ground of the fair value of all identifiable assets of
the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of
the invested entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting
periods adopted by the invested entity are different from those adopted by this enterprise, an adjustment shall be
made to the financial statements of the invested entity in accordance with the accounting policies and accounting
periods of this enterprise and recognize the investment profits or losses and other comprehensive incomes. For the
transactions between this enterprise and its joint ventures and associated entities, where the assets invested or sold
do not constitute a business, the unrealized internal transaction profits or losses shall be calculated in accordance
with proportion shared, with the proportion shared by this enterprise offset and recognize the investment profits or
losses based thereof. However, if losses occurred in the internal transaction between the invested entities is the
impairment loss of transferred assets, they shall not be offset. When the assets invested by this enterprise to its
joint ventures or associated entities constitute a business, and the investing party obtains long-term equity but
without control power, the fair value of the invested business shall be recognized as the initial investment cost of
the additional long-term equity investment. The total difference between the original investment cost and the book
face of the invested business shall be recorded into the profits or losses of the current period. If the assets
purchased from the joint ventures or associated entities constitute a business, this enterprise shall account for the
business in accordance with this enterprise Accounting Standard No. 20 - Business Combinations, with the total
profits or losses associated with the transaction recognized.
83
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
The Company bears the net losses of its invested business to the limit of the book value of its long-term equity
investment and other long-term equity that in real terms constitutes investment on the business. For additional loss
of its invested business, if the Company is obligated to undertake, it shall be recognized as estimated liabilities
accordingly and recorded in current investment losses. If the invested business earns profits afterwards, the
Company shall reinstate and recognize its share of gains after compensating its unrecognized share of losses.
③ Purchase of minority interest
While compiling consolidated financial statements, the Company adjusts its capital reserve in terms of the
difference between the increase of long-term equity investments due to purchase of minority interest and its share
of the subsidiaries’ net assets since the purchase (or combination) date or dates. If its capital reserve is not
sufficient to write down the difference, then the Company adjusts its retained income.
④ Disposal of long-term equity investment
In consolidated financial statements, the Company records in shareholders’ equity the difference between partial
disposals of its long-term equity investments in its subsidiaries and its share of the subsidiaries’ net assets if it
does not lose control of the subsidiaries; and if such partial disposals result in loss of its control of the subsidiaries,
the difference shall be treated in accordance with the accounting policies related and specified in “Compiling
Principles for Consolidated Financial Statements”. ( Please refer to (2) in Note 3.6 )
For disposals of long-term equity investments under other circumstances, the difference between the book value
and the actual received consideration is recorded in current profit and loss.
For the long-term equity investments calculated by equity method, the same method applies to the remaining
equity after disposal. Meanwhile, the other comprehensive gains originally recorded in shareholders’ equity is
treated pro rata by the same method how the invested businesses handle the accounts while directly disposing the
related assets or liabilities. The investor recognizes the ownership interest due to equity changes except net profit
and loss, other comprehensive gains and profit distribution, and carries it over pro rata to current profit and loss.
For long-term equity investments calculated by costs method, the same method applies to the remaining equity
after disposal. Other comprehensive gains calculated and recognized by equity method or recognition and
measurement principles for financial instruments before the Company obtains control of the invested businesses
are treated on the same basis that the invested businesses directly dispose the related assets or liabilities, and it
will be carried over pro rata to current profit and loss; and among the invested businesses’ net assets that are
calculated and recognized by equity method are all other equity changes than net profit and loss, other
comprehensive gains and profit distribution carried over pro rata to current profit and loss.
For disposals of long-term investment equity resulting in loss of control over the invested businesses, when
compiling individual financial statements, the Company changes to adopt equity method to calculate the
84
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
remaining equity that is still sufficient to exert joint control or significant influence, and to make adjustments as
since it was acquired; and if the remaining equity is not sufficient, it will be handled in accordance with the
relevant recognition and measurement principles for financial instruments and the difference between its fair value
and book value will be recorded in current profit and loss since the Company loses control of the invested
businesses. For other comprehensive gains recognized by equity method or recognition and measurement
principles for financial instruments before the Company obtains control over the invested businesses, the
Company adopts the same basis to handle the accounts as the invested businesses directly dispose the related
assets or liabilities, and among the invested businesses’ net assets that are calculated and recognized by equity
method are all other equity changes than net profit and loss, other comprehensive gains and profit distribution
carried over pro rata to current profit and loss. For the remaining equity calculated by equity method, other
comprehensive gains and other ownership interests will be carried over pro rata while for those treated in
accordance with the recognition and measurement principles for financial instruments, other comprehensive gains
and other ownership interests will be carrier over entirely.
Under the circumstances that the Company loses joint control over or has no significant influence on the invested
businesses due to partial equity disposal, the remaining equity changes to be calculated in accordance with the
recognition and measurement principles for financial instruments, and the difference between its fair value on the
date that the Company loses the joint control and significant influence and the book value is recorded in current
profit and loss. For other comprehensive gains recognized due to calculation of the original equity investments by
equity method, the Company adopts the equity method no longer but the same basis to handle the accounts as the
invested businesses directly dispose the related assets or liabilities while carrying over to current profit and loss all
the ownership interest recognized due to other equity changes than net profit and loss, other comprehensive gains
and profit distribution.
If the Company gradually loses control of a subsidiary through multiple transactions, which is a package deal as a
whole, then all these transactions will be treated as control losing equity disposal, and before loss of control, the
difference between each transaction consideration and the book value of the corresponding long-term equity
investment is recognized as other comprehensive gains and in the end, carried over to current profit and loss upon
loss of control.
15. Investment property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land
leased out under operating leases, land held for long-term capital appreciation, buildings leased out under
operating leases, (including buildings that have been constructed or developed for future lease out under operating
leases, and buildings that are being constructed or developed for future lease out under operating leases).
The Company makes initial measurement at the costs that the properties is acquired and records as part of the
85
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while
other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in
accordance with the relevant regulations for fixed assets or intangible assets.
16. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for
rental to others, or for administrative purposes, and have useful lives of more than one accounting year.
A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to
the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation method
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
Buildings and
Straight-line method 25-35 3 2.77-3.88
constructions
Straight-line method 7-15 3 6.47-13.86
Machinery equipment
Transportation
Straight-line method 8-10 3 9.70-12.13
equipment
Other equipment Straight-line method 5-10 3 9.70-19.40
Thereinto, the fixed asset whose asset impairment provision has been withdrawn should also have its
accumulated amount deducted to count and confirm the depreciation rate.
Fixed assets from financial leasing are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise, the Company should choose the shorter of the lease
period and the remaining useful life to depreciate the assets.
When the year of the fixed asset comes to an end, the Company will review its service life, net residual value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one, adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one, adjustment will be made for the estimated
one.
(3)Charge for Major Overhaul
The Company conducts regular checking on major overhaul fee incurred in the fixed asset, and any parts of
the fee that have unambiguous evidence to indicate they conform with the condition for confirming fixed asset
will be counted into the fixed asset costs, otherwise into the profit and loss of the current period. During the
interval period of regular major overhaul, the fixed asset will be depreciated as before.
86
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（3）Basis for recognition and measurement of fixed assets acquired under the finance lease
17 .Projects under construction
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
18 Borrowing expenses
Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation
differences arising from borrowings in foreign currency etc. The Company starts to capitalize the borrowing
expenses in direct connection to purchase, construction or production of the assets that meet capitalization
conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the
necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other
borrowing expenses are recognized as costs when incurred.
The Company capitalizes the actual interest expense incurred by use of special borrowings, minus the interest
income from the remaining borrowing funds in bank or any investment income earned from the interim
investment of those borrowings; and for general borrowings, the amount to capitalize is the weighted average of
the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used
general borrowings, which is determined by the weighted average interest rate of the general borrowings.
During capitalization, all translation differences of special borrowings in foreign currency should be capitalized
while those of general borrowings in foreign currency are recorded in current profit and loss.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need to be
acquired, constructed or produced through a long period of time, in order to become ready for its intended use or
sale.
The Company stops capitalization of borrowing costs if an abnormal interruption more than 3 consecutive months
occurs during purchase, construction or production of the assets that are eligible to capitalization till all those
restart.
For the special loan borrowed for the purchase or production of assets eligible for capitalization, the amount of the
borrowing costs incurred in the current period of a special loan, minus the amount of interest earned in the bank
on unused borrowed funds or the return on the investment obtained by a temporary investment, to determine the
amount of capitalization of borrowing costs.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing
cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special
87
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted
average interest rate of the general borrowings.
19. Biological assets
20. Oil-gas assets
21. Intangible assets
1 Pricing method, useful life and impairment test
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
Intangible assets with uncertain service life shall be explained the judgement basis for uncertainty of service life,
and be explained the procedures for reviewing the useful life of the intangible assets during each accounting
period, as well as the results of impairment tests for the intangible assets.
（2）Internal research and development expenditure accounting policy
22 Impairment of the long-term assets
On balance sheet dates, the Company determines whether there are impairments occurring to fixed assets,
construction in progress, intangible assets of a limited life, investment properties measured in the cost model as
well as non-current and non-financial assets like the long-term equity investments on subsidiaries, joint ventures
and associated companies. If impaired, the Company estimates the retrievable amount and conducts an
impairment test. Impairment tests need to be done on goodwill, intangible assets of an unlimited life and the
intangible assets that are not yet to reach the usable status, no matter they are impaired or not.
If the impairment test result shows the retrievable amount lower than the book value, impairment provisions will
be set aside and recorded in impairment loss. The retrievable amount is the fair value of the assets minus the
disposal expenses or the present value of the estimated future cash flows of the assets, whichever is higher. The
fair value of the assets is determined in terms of the price specified in the selling agreement that is fair trade; if no
selling agreement but there is an active assets market existing, it is determined in terms of the buyer’s offer; and if
88
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
no selling agreement and active assets market, the fair value can be estimated based on the best available
information. Disposal expenses include all related legal charges, taxes, delivery fees or the direct expenses
incurred to have the assets reach the usable or sellable status. To determine the present value of the estimated
future cash flows from the assets, the Company chooses an appropriate discount rate in the light of the continual
usage of the assets and the estimated future cash flows occurring upon final disposal. Impairment provisions of the
assets are calculated and recognized on the basis of individual assets. If unable to estimate the retrievable amount
of individual assets, the Company determines the amount by reference to the asset group that includes the
individual assets. Asset groups are the minimum assets combination that independently produces cash inflows.
For the goodwill separately listed in financial statements, while an impairment test being conducted, the book
value is apportioned to the asset groups or combination of asset groups expected to benefit from the synergy
effects arising from business combinations. The Company recognizes impairment losses when the test result
shows that the retrievable amount of the asset groups or combination of asset groups is lower than their book
values. The impairment loss will be first used to write down the book values of the asset groups or combination of
asset groups and then those of other assets pro rata.
Once the aforesaid impairment losses are recognized, they cannot be reinstated in the future.
23. Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
all in current profit and loss.
24.Employee compensation
1.Accounting treatment of short-term remuneration
Employee compensation refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefit.
Short-term compensation includes payroll, bonus, allowances and subsidies, employee welfare, medical insurance,
injury insurance and birth insurance, housing fund, labor union and employee training expenditures, non-monetary
benefits and other short-term rewards. It recognizes as liabilities the actual short-term compensation incurred
during the accounting period that the employees provide their services and records in current profit and loss or the
relevant asset costs. Non-monetary benefits are measured at the fair value.
2.Accounting treatment of benefits paid after departure
Post-employment benefits are mainly defined contribution plans, which include basic pension, unemployment
insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss
when incurred.
3.Accounting treatment of dismissal welfare
When terminating labor relations before expiration of contract, or layoffs with compensations, and the Company
cannot terminate the labor relations unilaterally or reduce the demission welfare, remuneration and liabilities
89
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
produced from the demission welfare should be determined and included in current profits and losses when
determining the costs of demission welfare and recombination. However, demission welfare not fully paid within
12 months after annual Reporting Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above demission welfare.
The Company would recorded the salary and the social security insurance fees paid and so on from the
employee’s service terminative date to normal retirement date into current profits and losses (demission welfare)
under the condition that they meet the recognition conditions of estimated liabilities.
4 .Accounting treatment of other long term employee benefits
The other long-term welfare that the Company offers to the staffs, if met with the defined contribution plans,
should be accounting disposed according to the defined contribution plans, while the rest should be disposed
according to the defined-benefit plan.
25. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to
receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
26. Share-based Payment
（1）Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
（2）Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for, the
options pricing model is adopted to determine the fair value.
（3）Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
90
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
27. Other financial instruments such as preferred shares and perpetual capital securities
28.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Merchandise sales
After transferring the significant risks and compensation of the merchandise ownership to the buyer, the company
no longer holds the rights to manage and have control over the merchandise, and recognizes the revenue if the
economic benefits arising from the related transactions can flow into the Company and all the costs and revenues
related to such product sales can be measured reliably.
（2）The concrete principle of Major income
The sales revenue of Chongqing Jianshe Automobile A/C is divided into three categories according to customer
groups:
① Big customer. The mode of cooperation is mainly according to the customer's production needs; the company
will ship the goods to the designated or cooperative tripartite logistics company, which is responsible for the
warehousing and distribution services. Each month, the customer would issue a hang account notice according to
the actual consumption of the production plan, sales clerk issued a letter of notice for invoices according to the
customer's bill hang notice combined with customer consumption, contract unit price and hang account notice, etc.,
The finance department shall issue invoices to confirm the sales income.
② Customers - Delivery after payment. Sales personnel confirm upon receipt of payment by the customer, in
accordance with customer requirements and related information of bill, the contract of sale price and customer
demand quantity shipment, and issue a letter of notice, then the finance department completes the transaction.
③ Customers - After-sales market. Sales personnel deliver the goods to the customer according to the contract and
customer demand. After arrival time node, sales personnel issues a letter of notice according to the unit contract
price and shipment quantity, and the finance department issues invoices to confirm the sales revenue.
29.Government grants
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government grants pertinent to assets are recognized as deferred income and are credited to profit or
loss by stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets.
If the pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the
non-allocated pertinent deferred income balance shall be transferred to the profit or loss of the period of assets
disposal, and the recognized government grant needs to be refunded, then it shall write down the carrying amount
of the relevant deferred income and the excess part shall be included in the current profit and loss
91
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Judgment basis and accounting treatment of government subsidies related to profits
If government subsidies related to income are used to compensate the Company’s relevant expenses or losses in
future periods, such government subsidies should be recognized as deferred income on acquisition and be
included into the current non-operating income in the period of recognizing relevant expenses; if government
subsidies related to income are used to compensate the enterprise’s relevant expenses or losses incurred, such
government subsidies are directly included into the current non-operating income on acquisition.
For government grants that include both asset-related and income-related components, the accounting treatment
shall differentiate the different part; for those that are unable to differentiate, the grants shall be classified as
government grants related to income.
The government grants related to the company's routine activities are included in other income or offset related
costs in accordance with the business economic nature. The government grants not related to the company's
routine activities are included in the non-operating income.
30.Deferred income tax assets and deferred income tax liabilities
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax assets shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax assets caused by deductible temporary differences within the limit of likely obtained taxable income that can
be used to deduct the deductible temporary differences of the taxable income.
92
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
31.Operational leasing
1.Accounting treatment of operating lease
The Company will transfer substantially all the risks and rewards of ownership of an asset lease are recognized as
a finance lease. Other forms of lease besides financial leasing are considered as operating leasing.
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
2.Accounting treatment of financing lease
32. Other significant accounting policies and estimates
（1）Discontinued Operation
Discontinued operation means enterprises which can meet one of the following conditions and can be
distinguished into a constituent part separately, and this part has been disposed or divided into a on-sales category.
① This constituent part represents an independent main business or a separate main business area;
② This part is a one of the related parts which proposes to dispose an independent main business or an
independent main business area.
③This part is a subsidiary acquired from being specifically for reselling.
For accounting treatment methods for discontinued operation, see the relevant descriptions at Article 13-
93
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Possession of On-Sales Asset in Note III
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other
Not applicable
VI. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
Calculated on tax law from selling goods
and taxable services based on the
VAT calculation of output tax, after deduction of 16、11、6
input tax deductibility of the current
period, the balance part of VAT payable
Consumption tax Revenue of taxable consumables 3
Value-added tax, operating tax and
City maintenance and construction tax 7
consumption tax paid
Enterprise income tax Taxable income 25、15
Levied based on the taxable income (Since
Operational tax May 1, 2016, the Business tax changes to 5
Value-added tax)
Levied based on the actual payment of 3
Education surcharges
business tax, VAT and consumption tax
Levied based on the actual payment of 2
Local education surcharges
business tax, VAT and consumption tax
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
2. Preferential tax treatment
The company is subject to the enterprise income tax rate of 15% in 2017, as a result of the preferential enterprise
income tax policies to promote the large-scale development of the western region in accordance with the
94
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Announcement on Issues of Enterprise Income Tax concerning In-depth Implementation of Western Region
Large-scale Development Strategy (Announcement of the State Administration of Taxation [2012] No.12).
Chongqing Jianshe Automobile A/C Co., Ltd. by high and new technology enterprise qualification on December 5,
2016, acquire the qualification of new high-tech enterprises, Certificate No. GR201651100400, valid for three
years. Chongqing Jianshe Automobile A/C Co., Ltd. calculates and pay enterprise income tax shall be levied at the
reduced tax rate 15% from 2017 to 2019.
3.Other
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash on hand 29,270.09
Bank deposits 160,989,944.15 126,196,196.37
Other cash and cash equivalents 145,019,500.00 123,423,000.00
Total 306,009,444.15 249,648,466.46
Other notes
Notes：The amounts of other currency funds in beginning balance and ending balance are bank acceptance deposit,
it shall be classified as restricted funds.
Other notes
2. Financial assets measured at fair value through current profit and loss
In RMB
Items Closing balance Opening
Other notes：
3. Derivative financial assets
□ Applicable √Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Closing balance Opening balance
Bank acceptance bill 32,456,659.53 16,272,808.72
Trade acceptance bill 837,000.00 1,528,000.00
95
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total 33,293,659.53 17,800,808.72
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance
sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 338,399,565.05
Trade acceptance bill 3,970,000.00
Total 342,369,565.05
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
In RMB
Amount of the notes transferred to account receivable at the
Items
period-end
Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Account receivables
with provision for
bad debt made on a 325,710, 14,332,2 311,378,7 295,640 15,297,53 280,343,33
99.99% 4.27% 99.98% 5.17%
portfolio with similar 943.11 34.80 08.31 ,872.01 6.80 5.21
risk credit
characteristics basis
46,628.0 46,628.
Account receivables 0.01% 6,153.00 13.20% 40,475.00 0.02% 6,153.00 13.20% 40,475.00
with insignificant 0 00
96
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
single amount and
provision for bad
debt made on an
individual basis
325,757, 14,338,3 311,419,1 295,687 15,303,68 280,383,81
100.00% 4.27% 100.00%
Total 571.11 87.80 83.31 ,500.01 9.80 0.21
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
In RMB
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion of provision (%)
Subitem within 1 year
Within 6 months(Including 6
294,761,648.47
months)
6－12 months 8,280,182.40 414,009.12
Subtotal within 1 year 303,041,830.87 5.00%
1-2 years 3,258,323.53 325,832.35 10.00%
2-3 years 8,232,360.99 2,469,708.30 30.00%
Over 3 years 11,178,427.72 11,122,685.03
3-4 years 93,775.20 46,887.60 50.00%
4-5 years 44,275.44 35,420.35 80.00%
Over 5 years 11,040,377.08 11,040,377.08 100.00%
Total 325,710,943.10 13,918,225.68
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB0.00; the amount of the
reversed or collected part during the reporting period was of RMB 0.00.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
97
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Name Book balance Proportion（%） Bad debt provision
PSA group 78220793.89 24.01% 0
Zhejiang Yuanjing Auto Parts Co.,Ltd 49,606,586.77 15.23% 0
Great Wall Motor Co.,Ltd. – Tianjin Haval filiale 32,749,390.68 10.05% 0
China Northern Vehicle Co., Ltd. 27,021,208.01 8.29% 9,753,208.010
Chongqing Chanan Aotomobile Co., Ltd. 22,773,503.38 6.99%
Total 154,005,291.23 47.28% 0
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
6.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 13,802,477.17 96.78% 13,138,485.04 98.26%
1-2 years 361,125.35 2.53% 164,291.92 1.23%
2-3 years 32,568.50 0.23% 2,590.50 0.02%
Over 3 years 65,893.80 0.46% 65,893.80 0.49%
98
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total 14,262,064.82 -- 13,371,261.26 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Other notes:
7. Interest receivable
(1) Category of interest receivable
In RMB
Items Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes：
8. Dividend receivable
(1) Dividend receivable
In RMB
Items Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Other notes：
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Category
Book balance Bad debt provision Book Book balance Bad debt provision Book value
99
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Proportio Proportio value Proportio Proportion
Amount Amount Amount Amount
n% n% n% %
Other receivables
with provision for
bad debt made on a 19,559,1 4,271,46 15,287,71 12,007, 4,271,468 7,736,032.4
98.19% 21.84% 97.08% 35.57%
portfolio with similar 80.49 8.02 2.47 500.49 .02 7
risk credit
characteristics basis
Other receivables
with insignificant
single amount and 361,125. 361,125. 361,125 361,125.3
1.81% 100.00% 2.92% 100.00%
provision for bad 35 35 .35 5
debt made on an
individual basis
19,920,3 4,632,59 15,287,71 12,368, 4,632,593 7,736,032.4
100.00% 100.00%
Total 05.84 3.37 2.47 625.84 .37 7
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other receivables Provision for bad debts Proportion of provision (%)
Subitem within 1 year
Within 6 month 15,050,262.08
7-12 months 24,414.34 1,220.72 5.00%
Subtotal within 1 year 15,074,676.42 1,220.72 0.01%
1-2 years 195,249.68 19,524.97 10.00%
2-3 years 55,045.80 16,513.74 30.00%
Over 3 years 4,234,208.59 4,234,208.59 100.00%
Over 5 years 4,234,208.59 4,234,208.59 100.00%
Total 19,559,180.49 4,271,468.02
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
100
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00；the amount of
the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Of which the significant write-off other accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash and borrowings with small
15,631,051.45 8,079,371.45
amount
Fully provided provision for bad debts
regarding long-term receivables and 4,289,254.39 4,289,254.39
payables
Total 19,920,305.84 12,368,625.84
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Shenzhen Jianshe
Other 3,013,664.00 Over 5 years 15.13% 3,013,664.00
Motorcycle Co.,Ltd.
101
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Chongqing North
Jianshe Import & Current account 2,131,448.26 Within 1 year 10.70%
Export Co., Ltd.
Ningbo Jianshe
Other 692,035.31 Over 5 years 3.47% 692,035.31
Chongqing Office
Ningbo Jianshe
Other 329,628.73 1-2 years 1.65% 329,628.73
Motorcycle Co., Ltd.
Chongqing Huicai
Steel Structure Other 209,000.00 Over 5 years 1.05% 20,900.00
Co.,Ltd.
Total -- 6,375,776.30 -- 34.95% 4,056,228.04
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other notes:
10. Inventory
(1) Category of inventory
In RMB
Closing balance Opening balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 44,010,331.70 4,618,914.59 39,391,417.11 43,232,398.57 4,618,914.59 38,613,483.98
Goods in progress 880,661.36 880,661.36
Stock goods 134,317,224.72 174,210.57 134,143,014.15 135,543,697.36 174,210.57 135,369,486.79
Other 16,563,203.90 16,563,203.90 1,350,567.20 1,350,567.20
Total 194,890,760.32 4,793,125.16 190,097,635.16 181,007,324.49 4,793,125.16 176,214,199.33
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
102
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 4,618,914.59 4,618,914.59
Stock goods 174,210.57 174,210.57
Total 4,793,125.16 4,793,125.16
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
In RMB
Items Amount
Other notes:
11. Assets divided as held-to-sold
In RMB
Estimated disposal
Items Closing book value Fair value Estimated disposal time
expense
Other notes：
12. Non-current assets due within 1 year
In RMB
Items Closing balance Opening balance
Other notes：
13. Other current assets
In RMB
Items Closing balance Opening balance
Overpaid VAT 5,533,725.46 2,881,005.35
Prepaid enterprise income tax. 333,013.56 376,219.43
103
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total 5,866,739.02 3,257,224.78
Other notes：
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Available-for-sale equity
1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
instruments
Measured at cost 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
Total 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
Category of the
Available –for-sale Available-for-sale
available-for –sale Total
equity instruments liabilities instruments
financial assets
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the reporting
investees period
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
104
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or
temporarily fell but not withdrawn the impairment provision
Items of
Falling range of Withdrawn Reason of not
available-for-sale Fair value of the Continued falling
Investment cost the fair value amount of with drawn the
equity period-end time(month)
against the cost impairment impairment
instruments
Other notes
15. Investment held-to-maturity
(1) List of investment held-to-maturity
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Significant held-to-maturity investment at the period-end
In RMB
Bond item Par value Nominal interest rate Actual interest rate Due date
(3) Re-classified held-to-maturity investment during the reporting period
Other notes
16. Long-term accounts receivable
(1) List of long-term accounts receivable
In RMB
Discount rate
Items Closing balance Opening balance
range
105
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Other notes
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Adjustme
Cash Withdraw balance
Additiona nt of
Opening Changes bonus or al of Closing of
Investees l other
balance of other profits impairme Other balance impairme
investmen comprehe
equity announce nt nt
t nsive
d to issue provision provision
income
I. Joint ventures
Chongqin
g
Pingshan
84,591,79 1,735,798 3,500,000 82,827,59
TK
4.06 .80 .00 2.86
Carburett
or Co.,
Ltd.
Chongqin
g Jianshe
Hanon
Automobi
21,300,00 21,300,00
le heat
0.00 0.00
managem
ent
system
co., Ltd.
84,591,79 21,300,00 1,735,798 3,500,000 104,127,5
Subtotal 0.00 0.00 0.00 0.00 0.00
4.06 0.00 .80 .00 92.86
II. Associates
84,591,79 21,300,00 1,735,798 3,500,000 104,127,5
Total 0.00 0.00 0.00 0.00 0.00
4.06 0.00 .80 .00 92.86
Other notes
106
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
18. Investment property
(1) Investment property adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
131,695,310.84 20,902,264.96 152,597,575.80
period-beginning
2.Increase in the current
period
(1) Purchase
(2)Inventory\Fixed
assets\ Transferred from
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
65,531,586.66 10,400,967.05 75,932,553.72
the period
（1）Dispose
（2）Other out 65,531,586.66 10,400,967.05 75,932,553.72
4. Balance at period-end 66,163,724.16 10,501,297.92 76,665,022.08
II.Accumulated
amortization
1.Opening balance 36,474,631.36 5,476,590.03 41,951,221.39
2.Increased amount of
1,070,229.21 105,012.99 1,175,242.19
the period
(1) Withdrawal 1,070,229.21 105,012.99 1,175,242.19
3.Decreased amount of
18,149,776.55 2,725,151.20 20,874,927.75
the period
（1）Dispose
（2）Other out
18,149,776.56 2,725,151.20 20,874,927.76
4. Balance at 19,395,084.01 2,856,451.82 22,251,535.83
107
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period
46,768,640.15 7,644,846.10 54,413,486.25
-end
2.Book value at
95,220,679.48 15,425,674.93 110,646,354.41
period-beginning
(2) Investment property adopted fair value measurement mode
□ Applicable √Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book value Reason
Other notes
19. Fixed assets
(1) List of fixed assets
In RMB
Items House and Buildings Machinery equipment Vehicles Other Total
I. Original book
value：
1. Opening balance 89,165,656.22 683,814,001.83 8,899,841.25 15,771,914.40 797,651,413.70
2.Increased amount 65,531,586.67 3,742,702.70 134,629.91 69,408,919.28
108
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
of the period
（1）Purchase 3,742,702.70 134,629.91
（2）Transfer of
project under
Construction
（3）Increased from
enterprise merger
65,531,586.67
3.Decreased amount
10,552,682.32 1,106,035.86 596,636.00 614,207.72 12,869,561.90
of the period
（1）Disposal or
126,577.16 126,577.16
scrap
10,552,682.32 1,106,035.86 596,636.00 487,630.56 12,742,984.74
4.Closing balance 144,144,560.57 686,450,668.67 8,303,205.25 15,292,336.59 854,190,771.08
II. Accumulative
depreciation
1.Opening balance 28,672,186.30 400,393,778.17 7,865,240.65 11,899,432.01 448,830,637.13
2.Increased amount
20,345,767.84 14,560,465.76 215,412.90 637,479.15 35,759,125.65
of the period
（1）Withdrawal 2,195,991.28 14,560,465.76 215,412.90 637,479.15 17,609,349.09
18,149,776.56 18,149,776.56
3.Decreased amount
6,475,011.57 1,017,146.35 553,417.88 586,028.79 8,631,604.59
of the period
（1）Disposal or
122,779.80 122,779.80
scrap
6,475,011.57 1,017,146.35 553,417.88 463,248.99 8,508,824.79
4.Closing balance 42,542,942.57 413,937,097.58 7,527,235.67 11,950,882.37 475,958,158.19
III. Depreciation
reserves
1. Opening
14,113,141.06 14,113,141.06
balance
2.Increased
amount of the period
（1）Withdrawal
3.Decreased
amount of the period
109
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（1）Disposal or
scrap
4.Closing balance 14,113,141.06 14,113,141.06
IV. Book Value
1.Closing book value 101,601,618.00 258,400,430.03 775,969.58 3,341,454.22 364,119,471.83
2.Opening book
60,493,469.92 269,307,082.60 1,034,600.60 3,872,482.39 334,707,635.51
value
(2) List of temporarily idle fixed assets
In RMB
Accumulative Accumulative
Items Original Book value Book value Notes
depreciation depreciation
Machinery
86,249,110.46 53,465,024.47 14,113,141.06 18,670,944.93
equipment
Transportation 3,087,032.65 2,952,702.52 134,330.13
Total 89,336,143.11 56,417,726.99 14,113,141.06 18,805,275.06
(3) Fixed assets leased in from financing lease
In RMB
Accumulative
Items Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
In RMB
Items
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Buildings and constructions 42,288,815.25 Waiting for final acceptance
Other notes
110
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
20. Construction in progress
(1) List of construction in progress
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Replacement of
4,901,086.98 4,901,086.98 4,667,174.08 4,667,174.08
equipment
Civil engineering
131,524.27 131,524.27 133,002.27 133,002.27
and other
Total 5,032,611.25 5,032,611.25 4,800,176.35 4,800,176.35
(2) Changes of significant construction in progress
In RMB
Of
Amount Proporti which：
Accumul
that on The Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name of Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
items balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
(3) List of the withdrawal of the impairment provision of the construction in progress
In RMB
Items Withdrawn amount Reason
Other notes:
21. Engineering material
In RMB
Items Closing balance Opening balance
Other notes：
111
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
22. Liquidation of fixed assets
In RMB
Items Closing balance Opening balance
Other notes：
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Intangible assets
(1) Information
In RMB
Items Land use right Patent Non-patents Total
I. Total original book
value
1. Opening balance 15,768,620.49 15,768,620.49
2. Increase in the
reporting period
（1）Purchase
（2）Internal R&D
（3）Increase from
enterprise 10,400,967.05 10,400,967.05
combination
10,400,967.05 10,400,967.05
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance 26,169,587.54 0.00 0.00 0.00 26,169,587.54
II. Total accrued
112
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
amortization
1.Opening balance 4,384,638.03 4,384,638.03
2.Increased in the
5,619,613.82 5,619,613.82
reporting period
（1）Withdrawal 2,894,462.62 2,894,462.62
2,725,151.20 2,725,151.20
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance 10,004,251.85 10,004,251.85
III. Impairment
provision
1.Opening balance
2.Increases in the
reporting period
（1）Withdrawal
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance
IV. Book value
1.Book value of the
16,165,335.69 16,165,335.69
period-end
2.Book value of the
11,383,982.46 11,383,982.46
period-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
In RMB
Items Book value Reasons for absence of certificate of title
Buildings and constructions 42,288,815.25 Waiting for final acceptance
Other notes：
113
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
26. R&D expenses
In RMB
Opening Closing
Items Increase Decrease
balance balance
No items 4,125,991.09 4,125,991.09
120
aluminum
machine 87,592.48 87,592.48
development
project
Domestic
project of
330,235.25 330,235.25
aluminous
machine
140 iron
machine R & 135,128.59 135,128.59
D project
Total 4,678,947.41 4,678,947.41
Other notes
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
（2）Goodwill Impairment provision
In RMB
Items Opening balance Increase Decrease Closing balance
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes
28. Long-term unamortized expenses
In RMB
114
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Amortization
Items Opening balance Increase Decrease Closing balance
amount
83 Aluminum
889,267.38 381,114.48 508,153.04
machine entry fee
96 Aluminum
machine technology 438,408.15 35,546.64 402,861.37
transfer fee
Total 1,327,675.53 416,661.12 911,014.41
Other notes
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
12,211,547.13 1,831,732.07 12,211,547.13 1,831,732.07
provision
Total 12,211,547.13 1,831,732.07 12,211,547.13 1,831,732.07
(2) Deferred income tax liabilities had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Items
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax 1,831,732.07 1,831,732.07
(4) List of unrecognized deferred income tax assets
In RMB
115
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Items Closing amount Opening amount
Deductible temporary difference 27,771,917.24 27,771,917.24
Deductible losses 132,566,451.99 132,566,451.99
Total 160,338,369.23 160,338,369.23
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
Year Closing balance Opening balance Notes
2018 25,332,418.05 25,332,418.05
2019 98,496,222.54 98,496,222.54
2020 7,561,009.01 7,561,009.01
2021 1,176,802.39 1,176,802.39
2022
Total 132,566,451.99 132,566,451.99 --
Other notes：
30. Other non-current assets
In RMB
Items Closing balance Opening balance
Advance purchase of long-term assets 3,901,483.77 4,537,273.53
Total 3,901,483.77 4,537,273.53
Other notes：
31. Short-term loans
(1) Category of short-term loans
In RMB
Items Closing balance Opening balance
Guarantee loan 202,000,000.00 202,000,000.00
Credit loan 60,000,000.00 110,000,000.00
Total 262,000,000.00 312,000,000.00
Notes of short-term loans category
116
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of
which the situation of the significant overdue but not return short-term borrowings as follows:
In RMB
Borrower Closing balance Borrowing rate Overdue time Overdue rate
Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
In RMB
Items Closing balance Opening balance
Other notes:
33. Derivative financial liabilities
□ Applicable √ Inapplicable
34. Notes payable
In RMB
Items Closing balance Opening balance
Bank acceptance bill 472,278,000.00 411,410,000.00
Total 472,278,000.00 411,410,000.00
The total amount of the due but not pay notes payable at the period-end was of RMB 0.00.
35. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Within 1 year 262,852,744.84 165,957,509.82
1-2 years 4,278,533.02 7,609,524.71
2-3 years 68,858.05 119,199.22
Over 3 years 2,100,872.62 6,062,997.04
Total 269,301,008.53 179,749,230.79
117
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Notes of the accounts payable aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Zhongzi environmental technology
2,230,162.61 non-arrival settlement period
Co.,Ltd.
Chongqing bearing Industry Co., Ltd. 612,280.15 non-arrival settlement period
Chongqing Youcheng Automation
389,000.00 non-arrival settlement period
Engineering Technology Co., Ltd
Chongqing Electromechanical Design and
375,000.00 non-arrival settlement period
Research Institute
Total 3,606,442.76 --
Other notes:
36. Advance from customers
(1) List of advance from customers
In RMB
Items Closing balance Opening balance
Within 1 year 1,855,833.16 1,902,693.88
Over 1 year 444,915.71 414,976.26
Total 2,300,748.87 2,317,670.14
(2) Significant advance from customers aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
In RMB
Items Amount
Other notes:
37. Payroll payable
(1) List of Payroll payable
In RMB
Items Opening balance Increase Decrease Closing balance
118
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Short-term compensation 2,351,973.62 33,144,171.80 35,496,145.42 2,457,952.33
Post-employment
benefits - defined 1,332,810.63 5,632,601.73 6,965,412.36 1,640,976.28
contribution plans
Total 3,684,784.25 38,776,773.53 42,461,557.78 4,098,928.61
(2) List of Short-term salary
In RMB
Items Opening balance Increase Decrease Closing balance
(1) Salary, bonus,
1,357,502.95 24,140,339.23 25,497,842.18 1,262,432.43
allowance and subsidy
(2) Employee benefits 1,848,784.80 1,848,784.80 0.00
(3) Social insurance
282,299.73 2,691,089.05 2,973,388.78 451,264.65
expenses
Including: medical
209,522.71 2,364,145.75 2,573,668.46 436,863.99
insurance premium
Work-related injury
220,716.90 220,716.90 14,400.66
insurance premium
Maternity insurance
72,777.02 106,226.40 179,003.42 0.00
premium
Other
(4) Housing fund 474,990.00 3,812,986.00 4,287,976.00 329,818.00
(5) Labor union
expenditures and
237,180.94 650,972.72 888,153.66 414,437.25
employee education
expenses
Total 2,351,973.62 33,144,171.80 35,496,145.42 2,457,952.33
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
Basic endowment
1,171,764.55 5,448,813.53 6,620,578.08 1,469,677.71
insurance premium
Unemployment insurance
161,046.08 183,788.20 344,834.28 171,298.57
premium
Total 1,332,810.63 5,632,601.73 6,965,412.36 1,640,976.28
Other notes：
38. Taxes payable
In RMB
119
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Items Closing balance Opening balance
VAT 48,289.08 59,383.97
Enterprise income tax 146,100.87
Individual income tax 542,159.49 1,172,046.48
Urban maintenance and construction tax 3,116,482.90 3,116,095.28
Business tax 406,965.05 393,030.84
property tax 3,727,900.64 3,727,900.64
Land royalties 1,808,215.20 1,808,215.20
Educational surtax 1,990,057.88 1,988,736.03
Other 3,676,069.92 3,248,488.48
Total 15,316,140.16 15,659,997.79
Other notes：
39. Interest payable
In RMB
Items Closing balance Opening balance
Particulars of significant overdue unpaid interest：
In RMB
Unit Overdue amount Overdue reason
Other notes:
40. Dividends payable
In RMB
Items Closing balance Unpaid/un-carry-over reason
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Work-related injury payment 217,506.79 287,008.98
Goods 31,230,158.34 27,917,955.28
Maternity benefits payable 332,061.98 1,048,957.08
Payable reward 320,970.00 47,400.00
120
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Other 7,818,911.34 15,101,804.82
Total 39,919,608.45 44,403,126.16
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Other notes:
42. Liabilities classified as holding for sale
In RMB
Items Closing balance Opening balance
Other notes:
43. Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term Borrowing loans due within 1
12,690,000.00 47,090,000.00
year
Total 12,690,000.00 47,090,000.00
Other notes：
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Changes on short term bonds payable:
In RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Other notes:
45. Long-term borrowing
(1) Category of long-term loan
121
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
In RMB
Items Closing balance Opening balance
Credit borrowing 48,590,000.00
Less：Long –borrowing within due in 1
-47,090,000.00
year
Total 1,500,000.00
Notes ：
Other notes，including interest rate range：
46. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual
capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Other notes:
122
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
48. Long term payroll payable
(1) List of long term payroll payable
In RMB
Items Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Plan assets:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Net liabilities (net assets) of defined benefit plans
In RMB
Items Amount of the Current Term Amount of the Previous Term
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
49. Special payable
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Other notes:
50. Accrued liabilities
In RMB
Items Closing balance Opening balance Formation reasons
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Items involved in government subsidies:：
123
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
In RMB
Amount of newly Amount accrued Related to the
Items Opening balance Other changes Closing balance
subsidy in non-business assets/income
Other notes:
52. Other non-current liabilities
In RMB
Items Closing balance Opening balance
Other notes:
53. Share capital
In RMB
Increase ("+") /decrease ("-") for the current year
Opening Share Closing
balance Issuance of converted from balance
Share donation Others Sub-total
new shares public reserve
funds
Total shares 119,375,000.00 119,375,000.00
Other notes
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at
period-end
In RMB
Financial Opening balance Increase Decrease Closing balance
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
In ：RMB
Items Opening balance Increase Decrease Closing balance
124
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Capital premium 702,032,741.07 702,032,741.07
Other capital reserves 256,532,553.22 256,542,353.22
Total 958,575,094.29 958,575,094.29
Other notes, including changes and reason of change:
56. Treasury stock
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
Opening balance
Less：Amount
transferred
into profit and
Amount loss in the After-tax After-tax
Opening Less： Closing
Items incurred current period attribute to attribute to
balance Income tax balance
before that recognied the parent minority
expenses
income tax into other company shareholder
comprehensive
income in
prior period
1. Other comprehensive income that
cannot be reclassified in the loss and 0.00
gain in the future
A share in other comprehensive
income of investee that cannot be 0.00
reclassified in the loss and gain under
the equity method
Total other comprehensive income 0.00 0.00
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
58. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
125
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
59. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
56,724,000.00 56,724,000.00
reserves
Discretionary surplus
68,962,000.00 68,962,000.00
reserves
Total 125,686,000.00 125,686,000.00
Other note, including changes and reason of change
60. Retained profits
In RMB
Items Amount of the Current Term Amount of the Previous Term
Opening balance of retained profits after
-920,877,890.80
adjustments
Add: Net profit attributable to owners of the
66,490,537.60
Parent company
Closing retained profits -854,387,353.20
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
61. Revenue and Cost of Sales
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Income Cost Income Cost
Main business 482,850,720.88 400,797,229.92 503,087,025.50 411,899,437.65
Other business 28,846,010.53 23,473,707.09 46,987,232.34 44,641,497.15
Total 511,696,731.41 424,270,937.01 550,074,257.84 456,540,934.80
62. Business tax and surcharges
In RMB
126
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Items Amount of the Current Term Amount of the Previous Term
Urban maintenance and construction tax 1,185,383.93 1,875,078.50
Educational surtax 842,785.96 882,957.36
Resource tax 0.00
House tax 813,042.22 874,874.27
Land royalties 945,215.56
vehicle ship royalties 900.00
Stamp duty 228,411.82
Business tax 0.00 3,636.58
Other 81,899.89 822,603.29
Total 4,097,639.38 4,459,150.00
Other notes:
63. Sales expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 3,233,307.74 2,887,786.88
Depreciation costs 31,726.41 32,592.77
Office costs 73,188.55 103,780.01
Loading and unloading expenses
Transportation cost 3,642,308.85 3,135,452.31
Insurance premium 7,935.60 40,746.56
Operating funds 7,397.70
Exhibition fees 28,857.28 80,776.70
Advertising expenses 225,710.82 100,164.87
Travel expenses 731,363.78 669,615.71
Sale service fees 532,490.09 763,063.83
Repair charges 3,229,756.75 2,899,469.01
Warehousing custodian fees 803,942.71 1,580,550.42
Other expenses 121,547.68 57,439.23
Total 12,662,136.26 12,358,836.00
Other notes:
127
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
64. Administrative expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 22,176,697.64 25,278,939.52
Depreciation costs 6,339,970.14 6,998,453.47
Office costs 450,911.45 349,863.66
Water and electric charge 109,519.64
Travel expenses 475,519.31 458,888.14
Transportation cost 79,832.87 115,461.79
Insurance premium 12,317.48 10,915.68
Repair charges 3,649,996.03 1,146,810.29
Consumption of goods and materials 259,509.61 346,813.37
Technological development expenses 4,688,359.54 5,548,061.06
Technological transfer fees 803,967.80 1,378,061.53
Amortization of intangible assets 359,142.11 365,184.06
Entertainment expenses 301,050.31 165,266.91
Conference fees 90,027.23 4,000.00
Intermediary service expenses 877,244.45 629,874.75
Board meeting fees 195,781.41 96,348.77
Other 2,912,941.40 3,751,074.51
Total 43,782,788.42 46,644,017.51
Other notes：
65. Financial expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest expenses 20,923,980.91 19,436,793.78
Less: Interest income 313,738.57 29,113.82
Gains or losses on exchange 83,224.83 83,667.69
Other -108,069.46 -874,278.16
Total 20,585,397.71 18,617,069.49
Other notes
128
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
66. Asset impairment loss
In RMB
Items Amount of the Current Term Amount of the Previous Term
I. Bad debt loss 414,009.12 1,492,613.98
Total 414,009.12 1,492,613.98
Other notes
67. Gains on the changes in the fair value
In RMB
Source Amount of the Current Term Amount of the Previous Term
Other notes
68. Investment income
In RMB
Items Amount of the Current Term Amount of the Previous Term
Long-term equity investment income
1,735,798.80 1,994,582.10
calculated by equity method
Profits of disposal of fixed assets 59,095,066.65
Total 60,830,865.45 1,994,582.10
Other notes
69．Assets disposal income
In RMB
Source Amount of current period Amount of previous period
70. Other income
In RMB
Source Amount of current period Amount of previous period
71. Non-operating gains
In RMB
Amount of the Current Term Amount of the Previous Term Recorded in the amount of the
Items
non-recurring gains and losses
129
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total gains from disposal of
200,962.58
non-current assets
Government Subsidy 332,400.00 36,900.00
Other 25,560.24 205,685.17
Total 357,960.24 443,547.75
Government subsidies recorded into current profits and losses：
In RMB
Whether the
impact of Amount of Amount of
Whether Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income
Reason the current
subsidies -related
profit and period period
loss
Recruitment
subsidy of
Human
resource and
social bureau
industrial
enterprises
The funds for
international
market
development
Industrial
supporting 36,900.00
funds
Special funds of
foreign trade
and economic
development
Other
Total -- -- -- -- -- 36,900.00 --
Other notes：
72. Non-operational expenditures
In RMB
Items Amount of the Current Term Amount of the Previous Term Carried to current contingent
130
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
gain/loss
Total loss from disposal of
52,595.40 142,770.96
non-current assets
Other 24,777.08 24,387.14
Total 77,372.48 167,158.10
Other notes：
73. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Current income tax expense 561,775.84 600,586.60
Total 561,775.84 600,586.60
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items June 30,2018
Total profit 67,409,285.85
Income tax expense at statutory / applicable tax rates 561,775.84
Income tax expenses 561,775.84
Other notes
74. Other comprehensive income
Refer to the notes
75. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest income 57,138.61 86,602.67
Other 13,992,215.96 8,468,864.10
Total 14,049,354.57 8,555,466.77
Other notes：
131
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Other cash paid related to operation
In RMB
Items Amount of the Current Term Amount of the Previous Term
Operation fees such as freight,
9,398,031.99 9,411,628.27
warehousing fees
Administrative expenses such as office
15,672,282.64 6,652,129.80
expenses and traveling expenses
Others 17,141,244.74 14,562,818.38
Total 42,211,559.37 30,626,576.45
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash paid related to investment
(5) Other cash received related to financing
In RMB
Items Amount of the Current Term Amount of the Previous Term
Financial note discount received 399,577,250.28 548,004,868.94
Total 399,577,250.28 548,004,868.94
Statement on other cash received related to financing
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payment of due financing notes 159,712,262.11 554,303,615.40
Decrease of note deposit 137,775,000.00 112,867,525.61
Total 297,487,262.11 667,171,141.01
Other notes：
132
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
76. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flows from
-- --
operating activities
Net profits 66,433,500.88 11,632,021.21
Add：Provision for assets impairment 1,492,613.98
Depreciation of fixed assets, oil and gas
17,881,729.85 18,527,934.70
assets and consumable biological assets
Amortization of intangible assets 359,142.11 365,184.06
Amortization of Long-term deferred
416,661.12 727,252.00
expenses
Loss on disposal of fixed assets, intangible
3,797.36 142,770.96
assets and other long-term deferred assets
Losses on discarding of fixed assets ("-" for
0.00
gains)
Financial expenses ("-" for income) 20,585,397.71 19,057,069.49
Investments losses ("-" for gains) -60,830,865.45 -1,994,582.10
Decreases in the deferred income tax assets
0.00
("-" for increases)
Increases in the deferred income tax
0.00
liabilities ("-" for decreases)
Decreases in inventories ("-" for increases) -13,883,435.83 46,514,669.20
Decreases in operating receivables ("-" for
-53,213,751.28 -51,840,966.48
increases)
Increases in operating receivables（"-" for
50,733,853.78 18,511,124.89
decreases）
Net cash flows from operating activities 28,486,030.25 63,135,091.91
2 、 Significant investment and financing
activities involving no cash receipts and -- --
payments
3、Net change in cash and cash equivalents: -- --
Closing balance of cash 160,989,944.15 167,499,879.38
Less: Opening balance of cash 126,225,466.46 273,768,758.46
Net increase in cash and cash equivalents 34,764,477.69 -106,268,879.08
133
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Cash or cash equivalents received by subsidiaries during the current
61,200,000.00
period
Of which --
Less：Cash and cash equivalents held by the company on the date of
3,258,712.90
loss of control
Of which --
Of which --
Disposal of net cash received by subsidiaries 57,941,287.10
Other notes：
(4) Cash and cash equivalents
In RMB
Items Closing balance Opening balance
1. Cash 160,989,944.15 126,225,466.46
Including: cash on hand 29,270.09
Unrestricted bank deposit 15,970,444.15 126,196,196.37
Other unrestricted monetary funds 145,019,500.00 126,225,466.46
III. Closing balance of cash and cash
160,989,944.15 126,225,466.46
equivalents
Other notes：
77. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
78. The assets with the ownership or use right restricted
In RMB
134
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Items Closing book value Restricted reason
Provide a guarantee for issuance of bank
Monetary capital 145,019,500.00
acceptance bills
Total 145,019,500.00 --
Other notes：
79. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Other notes：
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √Not applicable
80. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:
81.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Purchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Other notes：
135
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Combined cost and goodwill
In RMB
Combined cost
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Contingent liability of acquiree undertaken by business merger
Other notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other notes:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Proportion of Combination basis of during the during the
Name Basis to the period to the
the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Other notes：
136
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(2) Combination cost
In RMB
Combination cost
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the merged party on the date of consolidatio
In RMB
Combination date Last closing period
Contingent liabilities of the combined party undertaken in combination
Other notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
The Determin The
Regainin
differenc ation of amount
The g gains
e The fair the fair of other
Proporti book or losses
between value of value of compreh
Determi on of value of arising
the the the ensive
ning the remainin the from
Equity Equity Loss of disposal remainin remainin income
Disposal basis for g stocks remainin re-measu
Name disposal disposal control price and g equity g equity related to
of equity the loss at the g equity rement
price ratio point the share at the at the the
of date of at the of the
of the date of date of atomic
control loss of date of remainin
subsidiar loss of loss of company
control loss of g equity
y's net control control 's equity
control at fair
assets at rights investme
value
the level and its nt
137
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
of the main transferr
consolid assumpti ed to
ated ons investme
financial nt profit
statemen and loss
t
correspo
nding to
the
disposal
of the
investme
nt
Shanghai
Listing
Jianshe June 8,160,00
6,120.00 51.00% transfer 51.00%
Motorcy 15,2018 0.00
cle
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Proportion of shareholding
Name Registration place Way of gaining
place business Directly Indirectly
138
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Production and
Air Conditioner sale of
Chongqing Chongqing 100.00% Investment
Co. automotive
air-conditioners
Domestic sales of Business
Shanghai Jianshe motorcycles and combination
Shanghai Shanghai 51.00%
Motorcycle the relevant under common
accessories control
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
(2) Significant not wholly owned subsidiary
In RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Shanghai Jianshe
49.00%
Motorcycle Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Closing balance Opening balance
Non-curr Non-curr
Non-curr Current Total Non-curr Current Total
Name Current Total ent Current Total ent
ent Liabilitie Liabilitie ent Liabilitie Liabilitie
assets assets Liabilitie assets assets Liabilitie
assets s s assets s s
s s
Shanghai
Jianshe
Motorcy
cle Co.,
Ltd.
In RMB
Name June 30,2018 June 30,2017
139
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total Total
Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Shanghai
Jianshe
Motorcycle
Co., Ltd.
Other notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Other notes:
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
In RMB
Other notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding ratio (%) Accounting
treatment
Name of joint methods for the
Domicile of
venture or Registered place Business nature
primary operation Directly Indirectly investments in
associate
joint ventures or
associates
Production and
Chongqing
sales of
Pingshan TK
Chongqing Chongqing motorcycles and 49.00% Equity method
Carburettor Co.,
the relevant
Ltd.
accessories
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
140
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（2）Major joint ventures and associates
In RMB
Closing balance/June 30, 2018 Opening balance/June 30, 2017
Chongqing Pingshan TK Chongqing Pingshan TK
Carburettor Co., Ltd. Carburettor Co., Ltd.
Current assets 168,141,352.67 168,577,815.92
Including: cash and cash equivalents 110,830,085.00 102,666,236.99
Non-current assets 21,002,092.65 23,137,339.55
Total assets 189,143,445.32 191,715,155.47
Current liabilities 24,353,846.24 26,082,019.34
Total liabilities 24,353,846.24 26,082,019.34
Equity attributable to the shareholders of
164,789,599.08 165,633,136.13
parent company
Operating income 72,450,491.32 64,818,695.71
Financial expenses -357,203.64 -435,670.01
Income tax expenses 1,157,165.78 1,007,753.29
Net profit 3,471,597.60 4,070,575.72
Total comprehensive income 3,471,597.60 4,070,575.72
Dividends received from joint ventures for
3,500,000.00 4,000,000.00
the current year
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/June 30, 2017 Opening balance/June 30, 2016
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2018 Opening balance/June 30, 2017
Joint venture： -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
141
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
The total of following items according to the
-- --
shareholding proportions
Other notes:
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The no cumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Main operating place Proportion /share portion
Name Registration place Business nature
registration place Directly Indirectly
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation Other notes:
Other notes
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value -- -- -- --
142
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
measurement
II Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing
book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens
among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Shareholding ratio in Voting ratio in the
Registered place Business nature Registered capital
company the Company (%) Company (%)
chongqing
Production and sales
construction
Chongqing of motorcycles and 180.30 million yuan 71.13% 71.13%
mechanical and
parts
electrical Co. Ltd.
Notes
The ultimate controller of the Company is
Other notes
2. Subsidiaries of the Company
See notes
143
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name of joint venture or associate Relationship with the company
Chongqing Pingshan TK Carburettor Co., Ltd.("Pingshan TK") Joint venture
Chongqing Tongsheng Machinery Co., Ltd.("Tongsheng
Original associates venture, now associates of parent company
Jianshe")
Chongqing Fuyeda Property Management Co., Ltd.("Fuyeda") Original associates venture, now associates of parent company
Other notes
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Chongqing Jianshe Industrial (Group) Co., Ltd. ("Jianshe
industry ") Under the common control of the same party
China South Industries Group Finance Co., Ltd. ("South Finance
Company ") Under the common control of the same party
Chongqing Changan Motor Joint Stock Limited Company
("Changan Motor ") Under the common control of the same party
Chongqing Changan Automobile Co., Ltd. Beijing Changan
Under the common control of the same party
Automobile Company (“Beijing Changan“)
Chongqing Changan Suzuki Motor Co., Ltd. ("Changan Suzuki
An Joint venture a subsidiary of a controlling shareholder
")
Hebei Changan Motor Co., Ltd. ("Hebei Changan ") Under the common control of the same party
Nanjing Changan Motor Co., Ltd. ("Nanjing Changan ") Under the common control of the same party
Baoding Changan Bus Manufacturing Co., Ltd (“Baoding
Under the common control of the same party
Changan“)
Hefei Changan Motor Co.Ltd (“Hefei Changan’) Under the common control of the same party
Chongqing Changan Motor Customer Service Co., Ltd.
Under the common control of the same party
("Changan Motor Customer Service ")
Chongqing Changan Automobile International Sales & Service
Under the common control of the same party
Co., Ltd（“Changan Automobile sales “）
Chongqing North Construction import and export trade co.,ltd
Under the common control of the same party
(“import and export company”)
Chongqing jianshe sales co. Ltd(“the sales company”) Under the common control of the same party
Hafei Motor share company(“Hafei motor”) Under the common control of the same party
144
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Changan Ford Motor Co.Ltd Harbin branch (“Changan Ford
An Joint venture a subsidiary of a controlling shareholder
Harbin branch”)
Harbin dongan Motor Power shares Co. Ltd(“Harbin dongan
Under the common control of the same party
power”)
Other notes
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Occurred current Trading limit Over the trading limit Occurred in previous
Related party Content
term approved or not? term
Jianshe Mechanical Purchasing parts
845.00 1,000.00 No 27,450,000.00
and Electric and others
Purchasing parts
Import & export Co 1,126.00 1,800.00 No 15,250,000.00
and others
Jianshe Mechanical Lease production
0.00 250.00 No 0.00
and Electric site
Jianshe Industry Part test 27.00 200.00 No 830,000.00
Chongqing Jianya Part test 0.10 2.00 No 4,000.00
Fuyeda Transportation 0.00 0.00 No 254,000.00
Acceptance of
Cbangan Group and
repairing service 97.00 500.00 No 1,030,000.00
its Subsidiaries
Sales of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Cbangan Group and its
Sales of goods 6,321.00 91,070,000.00
Subsidiaries
Jianshe Mechanical and Electric Lease storehouse 0.00 0.00
Notes
(2) Related trusteeship/contract
Lists of related trusteeship/contract
In RMB
145
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Name of the Name of the Income
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes
Lists of entrust/contractee：
In RMB
Name eof the Name of the Charge
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes:
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Jianshe Mechanical and Electric Workshop 0.00 0.00
The Company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Jianshe Mechanical and Electric Production site 0.00 0.00
Notes:
(4) Related-party guarantee
The Company was guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
Vehicle air conditioner 35,000,000.00 January 23,2017 January 23,2018 Yea
Vehicle air conditioner 35,000,000.00 January 24,2017 January 24,2018 Yes
Vehicle air conditioner 19,999,000.00 August 30,2017 February 28,2018 Yes
Vehicle air conditioner 28,500,000.00 October 17,2017 April 17,2018 Yes
Vehicle air conditioner 28,000,000.00 November 17,2017 May 17,2018 Yes
Vehicle air conditioner 25,000,000.00 December 11,2017 June 11,2018 Yes
Vehicle air conditioner 17,000,000.00 July 6,2017 July 6,2018 No
Vehicle air conditioner 30,000,000.00 September 12,2017 September 11,2018 No
Vehicle air conditioner 10,970,000.00 September 12,2017 September 12,2018 No
Vehicle air conditioner 14,530,000.00 September 14,2017 September 14,2018 No
146
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Vehicle air conditioner 30,000,000.00 September 21,2017 September 20,2018 No
Vehicle air conditioner 42,000,000.00 September 29,2017 September 28,2018 No
Vehicle air conditioner 24,500,000.00 October 11,2017 October 11,2018 No
Vehicle air conditioner 25,000,000.00 November 8,2017 November 8,2018 No
Vehicle air conditioner 50,000,000.00 December 7,2017 December 6,2018 No
Vehicle air conditioner 10,000,000.00 January 3,2018 July 3,2018 Yes
Vehicle air conditioner 24,500,000.00 January 11,2018 January 9,2019 No
Vehicle air conditioner 35,000,000.00 January 18,2018 January 18,2019 No
Vehicle air conditioner 10,000,000.00 January 16,2018 January 16,2019 No
Vehicle air conditioner 35,000,000.00 January 22,2018 July 22,2018 No
Vehicle air conditioner 20,000,000.00 February 9,2018 February 9,2019 No
Vehicle air conditioner 28,490,000.00 May 21,2018 November 21,2018 No
Vehicle air conditioner 27,300,000.00 May 30,2018 May 29,2019 No
Vehicle air conditioner 25,000,000.00 June 4,2018 December 4,2018 No
Vehicle air conditioner 10,000,000.00 June 7,2018 December 7,2018 No
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Jianshe Mechanical and
24,500,000.00 July 10,2017 January 10,2018 Yes
Electric
Jianshe Mechanical and
19,980,000.00 April 10,2018 October 9,2018 Yes
Electric
Notes
(5) Inter-bank lending of capital of related parties：
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Occurred current term Occurred in previous term
147
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(7) Rewards for the key management personnel
In RMB
Items Occurred current term Occurred in previous term
(8) Other related transactions
6. Receivable and payables due with related parties
（1）Receivables
In RMB
At end of term At beginning of term
Project Related parties
Book balance Bad debt provision Book balance Bad debt provision
Chongqing Jianshe
Account receivable 1,061,265.42 350,383.40
YAMAHA Co., Ltd.
Chongqing Northern
Prepayment Jianshe Import & 6,648,166.17
Export Co., Ltd.
Chongqing Jianshe
Other receivables Industrial (Group)
Co., Ltd.
Shanghai Jianshe
Other receivables 667,041.51
Motorcycle Co., Ltd.
（2）Payables
In RMB
Project Related parties At end of term At beginning of term
Chongqing Jianshe Sales Co.,
Other account payable 48,599.35 48,193.05
Ltd.
Chongqing Jianshe Industrial
Other account payable 680,615.89 679,146.63
(Group) Co., Ltd.
Chongqing Northern Jianshe
Other account payable 2,882,204.23 2,879,204.23
Import & Export Co., Ltd.
Chongqing Jianshe
Other account payable Mechanicaland Electric Co., 30,134,704.13 24,332,416.32
Ltd.
148
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
7. Related party commitment
As of June 30, 2018, the company does not need to discourse
8. Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
149
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
5. Other
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
In RMB
Influence number to the
Reason of unable to estimate
Items Content Financial position and operating
influence number
results
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Accumulative impact
items during comparison period
150
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
（2）Prospective application
Content Processing program Reason of adopting prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
Termination of
the business
Income tax profits
Items Income Expenses Total profit Net profit
expenses attributable to the
parent company
owner
Other notes
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
In RMB
Items Offset during segments Total
151
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Account receivables
with provision for
bad debt made on a 2,824,89 1,720,79 1,104,100 2,077,3 1,726,944
99.78% 60.92% 99.70% 83.13% 350,383.40
portfolio with similar 2.26 1.58 .68 27.98 .58
risk credit
characteristics basis
Account receivables
with insignificant
single amount and 6,153.0
6,153.00 0.22% 6,153.00 100.00% 0.30% 6,153.00 100.00%
provision for bad 0
debt made on an
individual basis
2,831,04 1,726,94 1,104,100 2,083,4 1,733,097
Total 100.00% 350,383.40
5.26 4.58 .68 80.98 .58
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
In RMB
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion of provision (%)
Subitem within 1 year
152
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Within 6 months 1,104,100.68 0.00
7-12 months
Subtotal within 1 year 1,104,100.68 0.00
Over 3 years 1,720,791.58 1,720,791.58 100.00%
Over 5 years 1,720,791.58 1,720,791.58 100.00%
Total 2,824,892.26 1,720,791.58
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB0.00; the amount of the
reversed or collected part during the reporting period was of RMB 0.00.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Amount of endin
Amount of endi Proportion of total ac
Company Name Aging g balance for bad
ng balance counts receivable %
debts
Chongqing Jianshe YAMAHA Motorcycle Co., Ltd. 1,061,265.42 Within 6 37.49% 0
months
Sales department of Hanlong Chang Company 473,539.96 Over 5 years 16.73% 473,539.96
Changzheng machinery factory of China Aerospace 395,296.04 Over 5 years 13.96% 395,296.04
Science and Technology Corporation
153
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Chongqing Huida trading Company 183,478.00 Over 5 years 6.48% 183,478.00
Chongqing Chihai Maschinenbau LLC. 145,999.35 Over 5 years 5.16% 145,999.35
Total 2,259,578.77 79.81% 1,198,313.35
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other note:
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Other receivables
with provision for
bad debt made on a 12,172,2 4,317,90 7,854,378 10,185, 4,317,906 5,867,166.5
97.12% 35.47% 96.58% 42.39%
portfolio with similar 84.15 6.08 .07 072.66 .08 8
risk credit
characteristics basis
Other receivables
with insignificant
single amount and 361,125. 361,125. 361,125 361,125.3
2.88% 100.00% 3.42% 100.00%
provision for bad 35 35 .35 5
debt made on an
individual basis
12,533,4 4,679,03 7,854,378 10,546, 4,679,031 5,867,166.5
100.00%
Total 09.50 1.43 .07 198.01 .43 8
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other receivables Provision for bad debts Proportion of provision (%)
Subitem within 1 year
154
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Within 6 months 7,211,192.25
Subtotal within 1 year 7,211,192.25
1-2 years 671,837.51 67,183.75 10.00%
2-3 years 55,045.80 16,513.74 30.00%
Over 5 years 4,234,208.59 4,234,208.59 100.00%
Total 12,172,284.15 4,317,906.08
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□Applicable √ Not applicable
2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00；the amount of
the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Of which the significant write-off other accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash 8,406,397.53 4,416,207.00
Goods 4,058,757.24 4,058,757.24
Other 68,254.73 2,071,233.77
155
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Total 12,533,409.50 10,546,198.01
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Personal advances
received from 7,096,542.19 Within 1 year 56.62%
employees
Shenzhen Jianshe
Motorcycle Co., Goods 3,013,664.00 Over 5 years 24.05% 3,013,664.00
Ltd.
Ningbo
Jianshe .Chongqing Goods 692,035.31 Over 5 years 5.52% 692,035.31
Office
Ningbo Jianshe
Goods 329,628.73 Over 5 years 2.63% 329,628.73
Motorcycle Co., Ltd.
Quality inspection to
be processed, Goods 163,394.48 Over 5 years 1.30% 163,394.48
Exhibition product
Total -- 11,295,264.71 -- 4,198,722.52
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other note:
3. Long-term equity investment
In RMB
156
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
160,000,000.00 160,000,000.00 168,160,000.00 168,160,000.00
subsidiaries
Investments in
associates and 104,127,592.86 104,127,592.86 84,591,794.06 84,591,794.06
joint ventures
Total 264,127,592.86 264,127,592.86 252,751,794.06 252,751,794.06
（1） Investments in subsidiaries
In RMB
Balance as at June
Provision for
30, 2018 of
Investee Opening balance Increase Decrease Closing balance impairment in the
provision for
period impairment
Chongqing Jianshe
Automobile A/C 160,000,000.00 160,000,000.00
Co., Ltd.
Shanghai Jianshe
Motorcycle Co., 8,160,000.00 8,160,000.00
Ltd.
Less: provision for
long-term
investment
impairment
Total 168,160,000.00 8,160,000.00 160,000,000.00
（2）Investments in associates and joint ventures
In RMB
Increases/decreases in the current year Balance
as at June
profits
and losses 30, 2018
on Declarati
Opening Additio Decrease Other Impairme Closing of
Investee investmen Changes on of cash
Balance nal in comprehe balance provision
ts in other nt Other
investm investmen nsive dividends
recognize equity provision for
ent t
d under income or profits
the equity impairme
method nt
1. Joint ventures
Chongqin
g
Pingshan
84,591,79 1,735,798 3,500,000 82,827,59
TK
4.06 .80 .00 2.86
Carburett
or Co.,
Ltd.
157
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Jianshe 21,300,00 21,300,00
HANON 0.00 0.00
84,591,79 21,300,00 1,735,798 3,500,000 104,127,5
Subtotal
4.06 0.00 .80 .00 92.86
2．Associates
84,591,79 21,300,00 1,735,798 3,500,000 104,127,5
Total
4.06 0.00 .80 .00 92.86
（3）Other notes
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Major business turnover 386,205,807.86 362,617,628.59
Other business income 10,939,891.47 54,648.07 339,527,118.70 305,125,226.46
Total 397,145,699.33 362,672,276.66 339,527,118.70 305,125,226.46
Other notes：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income
calculated by equity 1,735,798.80 1,994,582.10
method
Investment income from disposal of
long-term equity 53,040,000.00
investment
Total 54,775,798.80 1,994,582.10
6.Other
XVIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -52,595.40
158
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
Govemment subsidy recognized in current
gain and loss(excluding those closely related
332,400.00
to the Company’s business and granted
under the state’s policies)
Other non-business income and expenditures
783.16
other than the above
Total 280,587.76 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √Not applicable
2. Net income on asset ratio and earning per share
In RMB
Earnings per share
Profit of the report period Net income on asset, weighted Diluted earnings per
Basic earnings per share
share
Net profit attributable to common
21.04% 0.5570 0.5570
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
20.95% 0.5546 0.5546
deducting of non-recurring
gains/losses
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
159
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2018
XI. Documents available for inspection
I. The semi-report carrying personal signature and seal of the Chairman of the Board;
II. Financial Statements with signatures of the legal representative, the financial officer, and accounting manager.
III. All of the originals of the Company’s documents and public notices publicized by the presses designated by
China Securities Regulatory Commission in the report period;
160
