Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Chongqing Jianshe Vehicle System Co., Ltd.
2021 Annual Report
2022-024
April 2022
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
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.Yan Xuechuan, The Company leader, Mr. Tan Mingxian, 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 this Annual report.
All the directors attended the board meeting for the review of this Report.
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 had concretely described the existed factors of risks of the company in the report, of which please
refer to the contents in the Report of directors concerning the possible facing risk factors in the company’s future
development. The company’s business plan and business goal of the year do not represent the 2022-annual
earnings forecast made by the company, hence whether those can be realized depending on many factors such as
the market circumstance and the extent of hard working of the management team, thus there is a large extent of
uncertainty, please be aware of the investment risks.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Company Profile & Financial Highlights.
III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Documents Available for Inspection
I. Annual 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.Original copy of the Auditors’ Report with the seal of the CPA and signed by the certified
（ZXCGHSKZ[2022]No.302040.
IV. 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.
V.Statement on special audition on appropriation of capital by controlling shareholder and related parties of
Chongqing Jianshe Vehicle System Co., Ltd.( ZXCGHSZZ[2022]No.302010).
VI. Auditing Report on Internal Control for Chongqing Jianshe Vehicle System Co., Ltd.
（ZXCGHSZZ[2022]No.302011).
VII. Special review report on the situation of deposit and loan of Chongqing Jianshe Vehicle System Co., Ltd.
from the Military Equipment Finance Co., Ltd. ( ZXCGHSZZ[2022]No.302012).
VIII. Special verification opinion on the deduction of operating income of 2021 of Chongqing Jianshe Vehicle
System Co., Ltd. ( ZXCGHSZZ[2022]No.302013).
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Definition
Terms to be defined Refers to Definition
Company, the Company, Jianmo Stock, Jianshe
Refers to Chongqing Jianshe Vehicle System Co., Ltd.
Vehicle B
Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the
Shenjianmo Refers to
Company)
Chongqing Jianshe Motorcycle Co., Ltd. (predecessor of the
Jianmo B Refers to
Company)
China Military Equipment Group Co., Ltd. (China Southern Industry
Military Equipment Group（Southern Group） Refers to
Group Co., Ltd.)
Military Finance Co. Refers to Military Equipment Group Finance Co., Ltd.
Southern Motorcycle Refers to Chongqing Southern Motorcycle Co., Ltd.
Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe
Jianshe Industry Refers to
Machinery Factory, Jianshe Industry (Group) Co., Ltd.
Jianshe Group Refers to Jianshe Industrial (Group) Co., Ltd.
Jianshe Mechanical and Electric Refers to Chongqing Jianshe Mechanical and Electric Co., Ltd.
HANON,KOREA HANON Refers to Korea Hanon System Co., Ltd.
Chongqing Jianshe HANON Automobile Termal Management System
Jianshe HANON Refers to
Co., Ltd.
China Jialing Refers to China Jialing Industry Co., Ltd. (Group)
Jinan Qingqi Refers to Jinan Qingqi Motorcycle Co., Ltd.
Changan Auto Refers to Chongqing Changan Automobile Co., Ltd.
Yunnan Xiyi Refers to Yunnan Xiyi Industrial Co., Ltd.
Luoyang Northern Refers to Luoyang Northern Enterprise Group Co., Ltd.
Dajiang Industrial Refers to Chongqing Dajiang Industrial Co., Ltd.
Vehicle air conditioner Refers to Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
Import & Export Co. Refers to Chongqing Northern Jianshe Import & Export Co., Ltd.
Shanghai Jianshe Refers to Shanghai Jianshe Motorcycle Co., Ltd.
Chongqing Jianya Refers to Chongqing Jianshe YAMAHA Motorcycle Co., Ltd.
Zhuzhou Jianya Refers to Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd.
Pingshan Taikai Refers to Chongqing Pingshan Taikai Carburetor Co., Ltd.
South Air International Refers to South Air International Co., Ltd.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Minsheng Logistics Refers to Chongqing Changan Minsheng APLL Logistics Co., Ltd.
The company has made an agreement to sale the 100% stake of
Jianshe Mechanical and Electric Company-the company’s subsidiary
Major asset restructuring Refers to
funded by the liabilities and the motorcycle business related assets
held by the company to Military Equipment Group.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
II. Company Profile & Financial Highlights.
Ⅰ. Company Information
Stock ID Jianshe Vehicle B Stock Code 200054
Stock Exchange Listed 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 Yan Xuechuan
Registered address No.1 Jianshe Road, Huaxi Industrial Zone, Ba’nan District, Chongqing
Postal code of the Registered
400054
Address
On July 19, 1995, the first registered address was: Room 1802, Electronic Technology Building,
No.30 A, Shennan Middle Road, Shenzhen (office only); On September 29, 2000, the registered
address was changed to: Room 416, Electronic Building, No.2072, Shennan Middle Road, Futian
Historical change of the District, Shenzhen (office only); On July 26, 2002, the registered address was changed to: Room
company's registered address 1107, North Building, No.3003 Shennan Middle Road, Futian District, Shenzhen (office only); On
March 11, 2003, the registered address was changed to: No.47, Xiejiawan Main Street, Jiulongpo
District, Chongqing; On April 23,2009, the registered address was changed to: No.1 Jianshe Road,
Huaxi Industrial Zone, Ba’nan District, Chongqing.
Office Address No.1 Jianshe Road, Huaxi Industrial Zone, Ba’nan District, Chongqing
Postal code of the office
400054
address
Internet Web Site http://www.jianshe.com.cn
E-mail cqjsmc@jianshe.com.cn
Ⅱ.Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Zhang Hushan Li Wenling
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
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Fax. 023-66295333 023-66295333
E-mail. cqjsmc@jianshe.com.cn cqjsmc@jianshe.com.cn
Ⅲ. Information disclosure and placed
Internet website designated by CSRC for publishing
http://www.szse.cn/
the Annual report of the Company
Newspapers selected by the Company for information Securities Times, Hongkong Commercial daily and
disclosure htp://www.cninfo.com.cn
The place where the Annual report is prepared and
Secretarial office of the Board
placed
Ⅳ.Changes in Registration
Organization Code 915000007474824231
From 1995 to 2015, the Company was mainly engaged in the production and sales of
motorcycles. In 2015, the company implemented the major asset restructuring, stripped
Changes in principal business activities
the main assets and liabilities involved in the motorcycle business, completed the
since listing (if any)
structural adjustment of the main business. Since 2015, it has been mainly engaged in
the production and sales of automotive air-conditioning compressors.
(a) The company was set up by Jianshe Group and China North Industries Corp
Shenzhen Company in July 1995, of which the Jianshe Group was the company’s
controlling shareholder that holds 71.13% stake of the company.
(b) On August 31, 2005, the 71.13% stake of the company held by Jianshe Group was
transferred to Military Equipment Group in an agreement, thus the Military Equipment
Group. has become the company’s controlling shareholder.
On March 2, 2016, according to Agreement of Share Transfer in Zero Price signed
Changes is the controlling shareholder in between Military Equipment Group and Jianshe Mechanical and Electric, Military
the past (is any) Equipment Group shall transfer its 71.13% stake of the company to Jianshe Mechanical
and Electric in zero price, thus the Jianshe Mechanical and Electric will become the
company’s controlling shareholder.
(d) On December 20, 2018, according to the Stock Rights Transfer Agreement of
State-owned Listed Company signed by Jianshe Mechanical and Electric and Military
Equipment Group , Jianshe Mechanical and Electric will hold 71.13% of the company's
equity, and the agreement will be transferred to Military Equipment Group , which will
become the controlling shareholder of the company.
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs Zhongxingcai Guanghua Certified public Accountants LLP.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Office address A24, 22/F,No.2 Fuchengmenwai Street, Xicheng District, Beijing
Names of the Certified Public
Fan Rui, Wang Yongfeng
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.
□ Applicable √ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable √ Not applicable
Ⅵ. Summary of Accounting data and Financial index
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□Yes √No
Changed over last year
2021 2020 2019
（％）
Operating revenue(Yuan) 680,118,967.08 740,851,845.25 -8.20% 791,487,434.18
Net profit attributable to the
shareholders of the listed company -25,998,962.72 1,415,942.45 -1,936.16% -121,128,719.93
（Yuan）
Net profit after deducting of
non-recurring gain/loss attributable
-29,668,201.39 -44,041,022.22 32.64% -119,395,985.23
to the shareholders of listed
company（Yuan）
Net Cash flow generated by
21,432,367.47 165,013,126.67 -87.01% 13,414,357.42
business operation（Yuan）
Basic earning per
-0.218 0.012 -1,916.67% -1.0147
share(Yuan/Share)
Diluted gains per
-0.218 0.012 -1,916.67% -1.0147
share(Yuan/Share)
Net asset earning ratio（%） -16.10% 0.82% -16.92% -52.05%
Changed over last year
End of 2021 End of 2020 End of 2019
（％）
Gross assets（Yuan） 1,041,336,478.97 1,186,697,453.77 -12.25% 1,190,147,356.58
Net assets attributable to
shareholders of the listed company 149,303,592.84 173,588,673.06 -13.99% 172,172,730.61
（Yuan）
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last
three fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going
concern ability is uncertain.
□ Yes √No
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
√ Yes □ No
Items 2021 2020 Note
The business income unrelated
Operating income（Yuan) 680,118,967.08 740,851,845.25 to the main business is RMB
16,214,107.75.
Where: RMB 3,701,174.27 for
sales materials; RMB
Operating income after 898,870.36 for rental income;
16,214,107.75 9,280,483.94
deduction(Yuan) RMB 1,629,768.66 for waste
income; and RMB 9,984,294.46
for energy income.
The business income unrelated
Operating income after
663,904,859.33 731,571,361.31 to the main business is RMB
deduction(Yuan)
16,214,107.75.
VII. The differences between domestic and international accounting standards
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable□√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable□√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 257,353,451.32 199,610,977.70 165,687,052.96 57,467,485.10
Net profit attributable to the
-1,968,206.42 -5,929,380.40 -2,186,600.33 -15,914,775.63
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable -3,607,227.00 -6,516,813.90 -2,773,273.67 -16,770,886.82
to the shareholders of listed
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
company
Net Cash flow generated by
16,816,561.33 4,937,459.10 52,858,822.71 -53,180,475.67
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
IX. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2021) Amount (2020) Amount (2019) Notes
Non-current asset disposal gain/loss(including the
write-off part for which assets impairment provision is 1,566,473.14 -448,967.59 -3,068,753.15
made)
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s 1,583,305.16 4,466,559.88 1,057,774.93
business and granted under the state’s policies)
The investment cost of the enterprise to obtain
subsidiaries and joint ventures which is less than the fair
42,924,165.03
value of the identifiable net assets of the investee when
the investment is obtained
Switch back of provision for depreciation of account
receivable and contractual assets which were singly taken 200,000.00 88,468.57
depreciation test
Other non-operating income and expenditure except for
319,460.37 -1,496,366.67 278,243.52
the aforementioned items
Less: Influenced amount of income tax 76,894.55
Total 3,669,238.67 45,456,964.67 -1,732,734.70 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies 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.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
The Company shall comply with the disclosure requirements of automobile manufacturing-related industries in the
Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information
Disclosure.
1. Overall situation of automobile industry
According to the statistics of China Association of Automobile Manufacturers, in 2021, the production and
sales of automobiles were RMB 26.082 million and RMB 26.275 million, with a year-on-year increase of 3.4% and
3.8%. It shows four main characteristics: First, it has ended the decline for three consecutive years since 2018.
Second, the annual sales volume of new energy vehicles exceeded 3.5 million, and the market share increased to
13.4%. Third, driven by factors such as the recovery of the international market and the improvement of Chinese
brand competitiveness, in 2021, the export vehicles exceeded 2 million for the first time, achieving a breakthrough
of around 1 million for many years. Fourth, driven by new energy and export markets, the market share of China's
brand cars has exceeded 44%, approaching the best level in history.
2. Analysis of automobile air conditioning compressor industry
The automobile air-conditioning compressor industry keeps pace with the development of automobile industry,
and its share concentration is further expanded, with the top four in the industry accounting for about 70% of the
total.
Based on the huge number of fuel vehicles, non-electric compressor products will still maintain a large scale
capacity in the next few years. However, due to the rapid development of new energy vehicles and the forced fuel
consumption regulations, the proportion of fixed-displacement compressors will gradually decrease. Following the
"going out" of independent brand OEMs and the "globalization" of foreign brands, the trend of fixed-displacement
compressors gradually moving overseas is obvious, which is bound to bring opportunities and chances for the
Company's fix-displacement compressors to stabilize scale, improve quality and prolong service life.
The Company has introduced, digested, absorbed and independently innovated the rotary vane technology for
more than twenty years. In terms of industry development trend, the rotary vane technology will face the ceiling,
therefore the Company needs to speed up the digestion and introduction of new technology products such as vortex
motor.
II.Main Business the Company is Engaged in During the Report Period
The Company shall comply with the disclosure requirements of automobile manufacturing-related industries in the
Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information
Disclosure.
2021 is the first year of the "14th Five-Year Plan". In order to start with a new opening, the Company have
taken multiple measures to actively deal with the adverse effects such as pandemic, lack of chip and electricity, and
reduction of orders, and achieved 90.2% of the annual sales target and 93.2% of the annual revenue target. In the
whole year, 1,811,100 sets of air-conditioning compressors for vehicles were produced and 1,731,500 sets were sold,
which decreased by 6.81% and 6.96% respectively year on year, and the operating income was RMB 680 million,
which decreased by 8.2% year on year. As for the annual key work formulated by the Board of Directors at the
beginning of the year, the actual promotion is as follows:
(I) Industrial adjustment to promote development ability
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
First, the development of electric compressors is robust. The Company has seized the opportunity of the new
energy market, improved the operation mechanism, optimized the integration of resources, broadened the product
platform, and achieved a number of market project results. Beiqi Qingdao KY13E/KY23E project has been
approved as a fixed-point project; The category of Ruichi models has been expanded from 5 to 31; Hongrui
R2B-115V project achieved mass production; 36CC electric compressor has been actively promoted, achieving the
docking of 4 market projects. It sold 9,234 sets of large-displacement and electric compressors throughout the year,
initially forming a large-scale sales.
Second, the fixed-displacement compressors are basically stable. Under the influence of the overall downward
trend of the fixed-displacement market and the switching of the technical upgrading products of OEMs, the
Company has deeply tapped the potential customers and successfully acquired new projects such as Changan
Auchan X5-MCA and Great Wall A06/A07. Changan B211-GPF, Great Wall A01, Geely LG02, Nissan 534, etc.
have successively entered the mass production stage, with Changan market increasing by 13.8% year on year and
Peugeot-Fiat market increasing by 18.2% year on year. However, the Great Wall Motor Market, Geely Automobile
Market and UCM (Malaysia) market declined respectively. In the offline market, through channel optimization,
sluggish product modification and launch and innovative cooperation among dealers, it filled the model gap,
expanded 10 dealers successfully, and achieved 61,000 units in sales volume, with a year-on-year increase of 4.0%.
Third, the parts witness stable progress. Pingshan Taikai further expanded the sales volume of carburetor,
vigorously explored the market of throttle body and EFI system, promoted the market expansion of brushless fuel
pump, and made use of existing assets to produce and sell auto parts. This year, the sales of carburetor, EFI system
and auto parts all achieved an increase, with an operating income of RMB 52.2 million, up by 31.96% year on year.
(II) Innovation in science and technology promotes core competitiveness
First, the innovation system has been continuously improved. Improve the top-level design, formulate the
Company's Implementation Plan for Accelerating the Construction of Scientific and Technological Innovation
Enterprises, and determine the tasks, objectives and work measures of scientific and technological innovation.
Promote the construction of science and technology platform, set up the regional enterprise technology innovation
center, and form a "1+3+1" science and technology innovation platform; Relying on the key laboratory, set up an
academic committee, which provided platform support for the Company to solve the technical problems of electric
compressors and automotive thermal management products. Deepen the industry-university-research cooperation
and cooperate with five units including Changan New Energy and Chongqing University of Posts and
Telecommunications to jointly develop the project "Research and Application of Key Technologies of Intelligent
and Efficient Vehicle Thermal Management System Controller", which has obtained the approval of Chongqing
Technology Innovation and Application Development Project, and fully promote the research of high-efficiency
electric compressor and advanced motor and drive control technology for compressor. Cooperation with Chongqing
Jiaotong University in the research of key technologies of scroll compressor pump system has achieved initial
results.
Second, product research and development has been further advanced. Focus on building an electric
compressor platform. 27CC product performance optimization completed the stage goal, 36CC product entered the
stage of engineering development, and the product scheme of air-supplying enthalpy-adding electric compressor
passed the review and completed the prototype development; Focus on tackling key technical problems of heat
pump air conditioning system, establish new energy vehicle thermal management system product project team,
carry out the project planning and technical research, build and simulate the technical architecture of heat pump air
conditioning system, and build a set of basic heat pump test bench, with new product development of motorcycle
EFI system advancing side by side with market project expansion. There were 10 new projects in the whole year,
and 8 projects completed according to the plan. The standard EFI system was sold in batches, and 9 small batch
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
orders were received from customers for α/N EFI system; Focus on product innovation projects. The completion
rate of 42 R&D project planning nodes is 100%, of which 7 were completed in 10 basic research projects, 6 in 13
new product development projects and 9 in 19 market development projects achieved mass production, and the
contribution rate of new products remained above 55%.
Third, scientific and technological achievements are constantly emerging. 2 projects won the third prize of
Science and Technology Award of China South Industries Group, 3 new products were rated as major new products
in Chongqing, 2 projects applied for Chongqing Science and Technology Innovation Guidance Catalogue and
finished product appraisal, and 3 urban-level scientific research projects were completed as planned. The quality of
patents has been greatly improved, the proportion of invention patents accepted has increased from less than 20% to
63%, and it has been awarded a good rating for Chongqing's technological innovation demonstration enterprises.
(III) Benchmarking management to consolidate the ability of value creation
First, overall budget management has been continuously strengthened. Break down the annual business
objectives to achieve full budget coverage; Strengthen the management of budget process, closely monitor the
implementation of budget targets, and well ensure the in-process management and control; Adhere to the rigid
budget constraint, decompose the budget indicators into departmental KPI indicators, strictly assess and correct
them in time, ensure the rigidity and seriousness of budget implementation, and overfulfill the annual budget targets.
Second, lean management has been further advanced. Solidly carry out a special OEE promotion campaign for
machining equipment, with OEE reaching 74.7%, up by 1.9% year on year. Build a lean GK team with construction
characteristics. 8 of the Company's 14 production teams have reached the three-star standard, 4 have reached the
four-star standard and 1 has reached the five-star standard. Carry out 6S brand-winning activities with reference to
Japan Yamaha 6S evaluation system and standard, with 9 units winning bronze medals. Vigorously develop lean
production line construction, deepen the application of quality management system and data acquisition system of
Line 5#, and achieve remarkable results, reducing internal quality loss by RMB 600,000.
Third, technical management continues to improve. Strengthen the process improvement, optimize and adjust
the layout of machining technology, automate some processes of the assembly line, and reasonably decompose the
inspection and packaging operations, thus effectively improving the production efficiency. Strengthen key research
projects, increase the production efficiency of nickel-free phosphating solution by 25%, reduce the leakage rate of
M6*30 screw seal part of compressor by 93%, reduce the rework ratio of gap defect rate by 68%, and improve the
three bottlenecks of dynamic and static disk grouping, leakage and running-in of electric compressor.
Fourth, the quality management has achieved remarkable results. Vigorously promote the construction of
"1+N" quality system, successfully pass the review of IATF16949 system and Peugeot QSB+ system, and obtain the
license of Changan QCA2.0 system supplier. Continuously carry out "quality improvement activities", with 13
special improvement projects and 39 improvement measures achieving remarkable results, including zero-kilometer
PPM and three-guarantee PPM decreasing by 28.3% and 24.1% respectively. Vigorously improve the quality of
electric compressors, formulate the Improvement Plan for Quality Control of Electric Compressors, and carry out
the activities of "quality inspection, rectification and improvement of new energy compressors", with all 52
problems being rectified.
Fifth, the resilience of the supply chain has been enhanced. Pay close attention to the supply progress of key
bottleneck parts, overcome the pandemic, lack of chip and electricity and other difficulties, and complete the supply
task. Initially set up the procurement system of electric compressors, which provides guarantee for the development
of electric compressor in the Company. Optimize the continuous supply chain system, and combine the production
demand and supplier evaluation, introduce 6 new suppliers, eliminate 2 suppliers, and expand 89 parts. Promote the
informatization of procurement management, deepen the use of the electronic procurement platform of
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Norincogroup-eBuy, and fully realize the openness, centralization and electronization of tendering procurement.
Sixth, risk prevention and control are carried out strictly. Set control indicators for 3 major risks and 3
important risks, and work out countermeasures to avoid and control them, which promotes the smooth and orderly
operation of the Company. Revise the Company's Comprehensive Risk Management Measures, strengthen daily
risk monitoring, further find loopholes, improve shortcomings, and strictly control the occurrence of various risks.
Carry out special actions for risk prevention and control, formulate and implement the Company's Special Action
Plan for Risk Prevention and Control, strictly investigate potential risks, and provide a strong guarantee for the
safety of employees' lives and property and the stability of the Company's production and operation. Further
promote the enterprise management according to law, actively prevent and control various legal risks, and recover
losses of RMB 2.21 million.
Vehicle manufacturing, production and operation during the reporting period
□ Applicable √Not applicable
Production and operation of auto parts during the reporting period
√ Applicable □ Not applicable
Output Sales volume
Increase or Increase or
This reporting Same period last decrease This reporting Same period last decrease
period year compared with period year compared with
last year last year
By part category
Automotive air
conditioner 1811146S 1943425 -6.81% 1731479 1861028 -6.96%
compressor
According to the vehicle supporting
Automotive air
conditioner 1670325 1802222 -7.32%
compressor
According to after-sales service
Automotive air
conditioner 61154 58806 3.99%
compressor
Area
Domestic 1008512 1182870 -14.74%
Overseas 722967 678158 6.61%
Other
Explanation of the reasons for the year-on-year change of more than 30%
□ Applicable √ Not applicable
Parts sales model
The Company is an enterprise mainly engaged in the production of air-conditioning compressors for vehicles,
which achieves sales through supporting products to OEMs or selling products to after-sales service market. At
15
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
present, the designed capacity of the Company's fixed-displacement compressor products is 2 million units, and the
actual output in 2021 is 1,811,100 units, with a capacity utilization rate of 90.56%; And the designed capacity of
electric compressors with large-displacement is 350,000 units, and the actual output in 2021 is 9,869 units.
The company conducts auto finance business
□ Applicable √Not applicable
The company conducts new energy vehicle related business
□ Applicable √Not applicable
Subsidy income of new energy vehicles
III.Analysis On core Competitiveness
The Company shall comply with the disclosure requirements of automobile manufacturing-related industries in the
Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information
Disclosure.
Product pedigree construction: On the basis of introducing the world's advanced technology, the Company
actively carries out independent innovation. After years of development, the product pedigree and technical system
are becoming increasingly complete; Including rotary vane compressor, swash plate fixed-displacement and
variable-displacement and electric compressor with complete intellectual property rights, forming five product
platforms of "rotary vane iron/aluminum, piston fixed/variable-displacement and electric compressor"; The
products cover 18CC to 480CC displacement.
Innovation platform construction: The Company has built a "1+3+1" scientific and technological innovation
platform (national post-doctoral workstation+Chongqing Enterprise Technology Center, Chongqing Automobile
Thermal Management System Engineering Technology Research Center, Chongqing Automobile Air Conditioning
Compressor Key Laboratory+Chongqing Jiulongpo Innovation Center), which provides a strong platform support
for the transformation and upgrading of automobile thermal management products, the development of applied
basic research and innovative research on key technologies, the cultivation of scientific and technological talents,
and technological industrialization. The Company has established a Industry-University-Research platform with
China Automotive Engineering Research Institute, Shanghai Jiaotong University and Chongqing Jiaotong
University, mainly to study the working mechanism of compressors and noise optimization of compressors, and to
tackle key technical bottlenecks.
R&D capacity building: The Company has the largest and most functional experimental testing center for
automotive air-conditioning compressors in Southwest China. It has imported more than 50 sets of advanced
equipment for reliability test, system test, performance test and NVH test from abroad, with a value of more than
RMB 50 million, and has strong basic research capabilities, product development and design capabilities,
simulation and analysis capabilities and trial production and processing capabilities. In recent years, 12 major new
products in Chongqing have been approved, more than 20 provincial and ministerial level science and technology
awards have been won, and more than 200 patents have been applied for, including more than 40 invention patents.
Manufacturing capacity building: it has the domestic first-class high-precision parts manufacturing base and
Chongqing municipal digital workshop. It possesses more than 40 parts machining production lines, more than 260
sets high-precision and high-quality processing equipment, and 9 product assembly lines. The equipment is with a
total value of more than RMB 650 million, and more than 80% of which are imported from Japan, the United States,
Germany, Switzerland, South Korea and other countries. The machining and assembly accuracy are all micron-level,
and MARPOSS online detection is widely used, so its machining accuracy and assembly automation degree are at
the leading level in China.
16
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Quality capacity building: The Company always adheres to the tenet of "Quality first, customer oriented", and is
committed to running quality work through all aspects of the Company, and constantly improving product quality,
service quality and quality-price ratio. The Company has always continuously improved its management ability,
actively assumed social responsibilities, passed the IATF 16949 certified by DNV, an international authoritative
certification body, as well as OHSAS18001 and ISO14001 management system certification, connected with
international manufacturers, and introduced the general QSB+ quality management system, Ford Q1 system,
Changan QCA system and Nissan GK site management concept to continuously improve its management level.
Talent team building: The Company has 118 scientific and technical personnel, including 458 R&D personnel
among 10,000 employees, of which 80% have bachelor degree or above, and 11% have senior professional titles.
The Company has established an academic committee of key laboratories, set up 4 company-level scientific and
technological innovation teams, including basic research and experimental technology research of air-conditioning
compressors, and introduced 2 senior electric control talents, 1 postdoctoral fellow in EFI system, and 9 doctors in
the national postdoctoral workstation.
IV.Main business analysis
1.General
This year, the company completed a production of 1.8111 million units and sold 1.7315 million units for its
main products, automotive air conditioner compressors, with a year-on-year decrease of 6.81% and 6.96%
respectively. The main business income was RMB 664 million, with a year-on-year decrease of 9.25%.
From the regional perspective, the domestic sales reached 1.0085 million units, with a year-on-year increase
of 14.74%, and the sales revenue reached RMB 430 million, with a year-on-year decrease of 14.88%. Domestic
sales revenue accounted for 63.27% of the company's main business income. The company sold 723,000 units in
foreign trade throughout the year, with a year-on-year increase of 6.61%, and realized a sales income of RMB 234
million, with a year-on-year increase of 3.34%. Foreign trade sales accounted for 34.35% of the company's main
business income.
From the perspective of customer structure: the top five customers of the company, namely PSA (Peugeot),
Changan Automobile, Great Wall Motor, Geely Automobile and Proton Malaysia, purchased 1.535 million sets of
vehicle air conditioning compressors from the company in the whole year, accounting for 88.67% of the total
purchases of customers. The purchase amount is RMB 546 million, accounting for 82.26% of the total purchase
amount of customers.
2. Revenue and cost
(1)Component of Business Income
In RMB
2021 2020
Increase /decrease
Amount Proportion Amount Proportion
Total operating
680,118,967.08 100% 740,851,845.25 100% -8.20%
revenue
On Industry
Auto and Motorcycle
663,904,859.33 97.62% 731,571,361.31 98.75% -9.25%
parts
Other 16,214,107.75 2.38% 9,280,483.94 1.25% 74.71%
17
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
On products
Auto and Motorcycle
663,904,859.33 97.62% 731,571,361.31 98.75% -9.25%
parts
Other 16,214,107.75 2.38% 9,280,483.94 1.25% 74.71%
On Area
Anhui 17,124,052.52 2.52% 17,404,019.16 2.35% -1.61%
Beijing 455,801.74 0.07% 8,737,415.97 1.18% -94.78%
Fujian 44,566.37 0.01% 92,194.69 0.01% -51.66%
Guangdong 22,382,727.29 3.29% 4,965,172.47 0.67% 350.79%
Guangxi 1,582,781.37 0.23% 2,143,214.13 0.29% -26.15%
Hebei 2,191,979.02 0.32% 3,295,014.18 0.44% -33.48%
Henan 8,670,161.99 1.27% 4,894,181.39 0.66% 77.15%
Hubei 5,928,016.10 0.87% 30,883,712.83 4.17% -80.81%
Jilin 0.00% 65,486.74 0.01% -100.00%
Jiangsu 21,065,621.33 3.10% 9,232,764.33 1.25% 128.16%
Jiangxi 3,112,711.56 0.46% 6,328,746.31 0.85% -50.82%
Liaoning 199,132.70 0.03% 0.00%
Shandong 3,026,841.57 0.45% 1,955,016.56 0.26% 54.82%
Shannxi 175,176.99 0.03% 505,176.97 0.07% -65.32%
Shanghai 1,782,811.17 0.26% 4,099,161.46 0.55% -56.51%
Sichuan 11,023,173.14 1.62% 113,828.80 0.02% 9,583.99%
Tianjing 1,158,336.80 0.17% 2,704,426.60 0.37% -57.17%
Yunnan 4,444.40 0.00% 40,912.43 0.01% -89.14%
Zhejiang 65,525,378.21 9.63% 96,149,564.48 12.98% -31.85%
Chongqing 264,799,571.37 38.93% 311,883,789.99 42.10% -15.10%
Ningxia 20,247.78 0.00%
Shanxi 13,628.32 0.00%
Overseas 233,617,697.59 34.35% 226,077,561.82 30.52% 3.34%
Other 16,214,107.75 2.38% 9,280,483.94 1.25% 74.71%
Sub-sale model
Vehicle supporting
mode of vehicle air
586,606,478.18 86.25% 653,077,105.90 88.15% -10.18%
conditioning
compressor
Vehicle air 18,773,105.22 2.76% 19,374,211.18 2.62% -3.10%
18
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
conditioning
compressor
after-sales service
market model
Other business and
product market 74,739,383.68 10.99% 68,400,528.17 9.23% 9.27%
models
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
On Industry
Auto and
Motorcycle 663,904,859.33 573,770,883.14 13.58% -9.25% -9.63% 0.36%
parts
On products
Auto and
Motorcycle 663,904,859.33 573,770,883.14 13.58% -9.25% -9.63% 0.36%
parts
On Area
Domestic 430,287,161.74 354,344,024.14 17.65% -14.88% -15.69% 0.79%
Overseas 233,617,697.59 219,426,859.00 6.07% 3.34% 2.23% 1.01%
Sub-sale model
Vehicle
supporting mode
of vehicle air 586,606,478.18 501,604,763.90 14.49% -10.18% -12.08% 1.85%
conditioning
compressor
Vehicle air
conditioning
compressor 18,773,105.22 16,331,565.38 13.01% -3.10% -0.26% -2.48%
after-sales service
market model
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
19
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2021 20120 Changes
Sales Ten thousand sets 173.15 186.11 -6.96%
Vehicle air
Production Ten thousand sets 181.11 194.34 -6.81%
conditioner
Stock Ten thousand sets 52.8 44.88 17.64%
Explanation for a year-on –year change of over 30%
□ Applicable √Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
In RMB
2021 2020
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Industry Direct material 553,036,721.80 94.23% 574,716,791.27 84.45% -3.77%
Industry Fuel and energy 12,670,289.73 2.16% 14,109,914.18 2.07% -10.20%
Industry Staff salary 31,052,496.10 5.29% 29,285,361.74 4.30% 6.03%
Manufacturing
Industry 64,289,680.17 10.95% 62,454,453.65 9.18% 2.94%
cost
Note
Not applicable
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□ Yes √No
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’s
Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of Main Customers
Total sales amount to top 5 customers (Yuan) 546,102,886.62
Proportion of sales to top 5 customers in the annual
82.26%
sales(%)
20
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Proportion of the sales volume to the top five customers
22.78%
in the total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount(RMB) Proportion(%)
1 Customers1 230,772,788.57 34.76%
2 Customers 2 151,239,775.34 22.78%
3 Customers 3 75,885,048.32 11.43%
4 Customers 4 68,106,568.39 10.26%
5 Customers 5 20,098,706.00 3.03%
Total -- 546,102,886.62 82.26%
Other explanation :
√ Applicable □Not applicable
Chongqing Changan Automobile Co., Ltd. The company's controlling shareholder, Military Equipment Group, holds 44.17%
of its shares), one of the top five customers, and its affiliated enterprises have an associated relationship with the
Company. The Company and its transactions, as routine related transactions, have been submitted to the 2021 First
provisional General Meeting of Shareholders for review and approval.
The company director, supervisor, senior executive, core technician and shareholder holding more than 5% .
Principal suppliers
Total purchase of top 5 Suppliers（Yuan） 291,464,205.10
Percentage of total purchase of top 5 suppliers In total annual
45.85%
purchase(%)
Proportion of purchase amount from the top 5 suppliers in the
0.00%
total purchase amount from the related parties in the year
Information about the top 5 suppliers
No Name Amount（Yuan） Proportion
1 Suppliers 1 143,283,476.66 22.54%
2 Suppliers 2 47,616,543.62 7.49%
3 Suppliers 3 41,449,190.66 6.52%
4 Suppliers 4 32,735,449.16 5.15%
5 Suppliers 5 26,379,545.00 4.15%
Total -- 291,464,205.10 45.85%
Other explanation :
√ Applicable □ Not applicable
The company’s directors, supervisors, senior management personnel and key technical personnel have no direct or
indirect interests in the major suppliers of the above-said suppliers.
21
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
3.Expenses
In RMB
Increase/Decrea
2021 2020 Notes
se(%)
Sale expenses 16,795,778.20 16,631,963.90 0.98%
Administration expenses 62,047,629.17 69,410,916.79 -10.61%
Financial expenses 23,014,845.65 22,486,373.84 2.35%
This year, the Company focused on
promoting scientific and technological
R & D expenses 29,760,773.46 15,283,965.69 94.72% R&D innovation, promoting industrial
technology transformation and
increasing R&D investment.
4.R& D Investment
√Applicable □Not applicable
Name of main R&D Expected impact on the future
Project purpose Project progress Goal to be achieved
project development of the Company
First, continue to
Improve product
upgrade technology,
performance and tackle
and the basic research
with the upgrading and
project entered the
development of
final stage at the end
automobile technology; Improve the competitiveness
Technical direction of the year. Second, Improve refrigeration
consolidate the vitality of of fix-displacement
of traditional continue to carry out efficiency; optimize noise; and
products, deal with the compressors and stabilize the
compressor design cost reduction optimize manufacturing costs.
upgrading of automobile scale position of the industry
to achieve the goal of
consumption; consolidate
cost reduction. Third,
product competitiveness
the market project
and solve key technical
has been achieved on
problems.
schedule.
27CC product
performance
Realize the vertical optimization
integration upgrade of completed the stage Improve the design ability,
Technical direction Enhance product
product technology based goal, 36CC product optimize refrigeration
of electric competitiveness and achieve a
on the product position entered the stage of efficiency and improve the
compressor breakthrough in scale.
and market position of engineering noise level.
traditional compressors. development, and the
product scheme of
air-supplying
enthalpy-adding
22
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
electric compressor
passed the review and
completed the
prototype
development;
Carry out
construction and
Upgrade the product
simulation of the Centered by the heat pump
Technical direction horizontal integration, Master the matching test
technical framework electric compressor, build the
of thermal focusing on system technology of air conditioning
of the heat pump integration capability of heat
management system matching and heat pump system
system, and set up a pump air conditioning system.
technology.
set of basic heat
pump test bench.
Develop the standard
EFI system and α/N
EFI system, which
have been
Actively cultivate and
preliminarily verified Cultivate new products such
Direction of EFI develop new products
by market customers, as EFI system and oil pump, Improve profitability.
system such as EFI system and
and realize batch and promote scale growth.
oil pump.
supply of standard
EFI system and small
batch sales of α/N
EFI system.
Company's research and development personnel situation
2021 2020 Increase /decrease
Number of Research and Development persons (persons) 70 68 2.94%
Proportion of Research and Development persons 8.83% 7.20% 1.63%
Academic structure of R&D personnel —— —— ——
Bachelor 50 48 4.17%
Master 2 2 0.00%
College 18 18 0.00%
Age composition of R&D personnel —— —— ——
Under 30 years old 17 18 -5.56%
30-40 years old 21 21 0.00%
Over 40 years old 32 29 10.34%
The Company's R & D investment situation
2021 2020 Increase /decrease
Amount of Research and Development Investment (Yuan) 29,760,773.46 15,283,965.69 94.72%
23
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Proportion of Research and Development Investment of Operation
4.38% 2.06% 2.32%
Revenue
Amount of Research and Development Investment Capitalization
0.00 0.00 0.00%
(Yuan)
Proportion of Capitalization Research and Development Investment
0.00% 0.00% 0.00%
of Research and Development Investment
Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
√ Applicable □ Not applicable
According to the Company's scientific and technological R&D plan during the "14th Five-Year Plan" period, the
Company will focus on strengthening the ecological chain of scientific and technological innovation, with key
products and technological innovation ensured. First, accelerate the green transformation; Second, strengthen the
research of key core technologies; Third, promote product technology upgrading; Fourth, strengthen project
management. Therefore, the investment in R&D projects has been increased.
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable
5.Cash Flow
In RMB
Items 2021 2020 Increase/Decrease(%)
Subtotal of cash inflow received from operation activities 603,828,235.81 541,548,254.98 11.50%
Subtotal of cash outflow received from operation activities 582,395,868.34 376,535,128.31 54.67%
Net cash flow arising from operating activities 21,432,367.47 165,013,126.67 -87.01%
Subtotal of cash inflow received from investing activities 1,609,454.58 61,457,531.55 -97.38%
Subtotal of cash outflow for investment activities 12,003,935.51 44,728,338.85 -73.16%
Net cash flow arising from investment activities -10,394,480.93 16,729,192.70 -162.13%
Subtotal cash inflow received from financing activities 716,824,318.47 1,079,339,590.72 -33.59%
Subtotal cash outflow for financing activities 783,421,725.44 1,191,153,002.36 -34.23%
Net cash flow arising from financing activities -66,597,406.97 -111,813,411.64 -40.44%
Net increase in cash and cash equivalents -55,571,730.36 69,919,927.45 -179.48%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
The decrease in net cash flow from operating activities is due to the adjustment of cash settlement mode of operating
activities this year and the year-on-year increase in cash settlement.
The decrease in net cash flow from investment activities is due to the increase in net cash inflow from investment
activities due to the merger of Pingshan Taikai in 2020.
The decrease of net cash flow from fund-raising activities is due to the adjustment of fund-raising structure and
24
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
scale.
The decrease in net increase in cash and cash equivalents is due to the decrease in net cash flow from operating
activities.
Reasons for the significant difference between the net cash flow generated by the Company's operating activities
during the reporting period and the net profit of this year
□ Applicable √Not applicable
V. Main business analysis
√ Applicable □ Not applicable
In RMB
Proportion in Sustainable (yes
Amount Explanation of cause
total profit or no)
The operating income of the Company's joint venture
Investment income 15,770,549.70 -60.26% Yes
Jianshe HANON
Impairment of
17,064.89 -0.07% The inventory depreciation reserve this year is reversed. No
assets
It is mainly accounts payable that need not be paid,
Non-operating
319,658.55 -1.22% Changan Automobile Quality Contribution Award Car No
income
and safety penalty income.
Non-operating
198.18 0.00% Loss from retirement of fixed assets. No
expenses
Credit impairment
-318,331.09 1.22% Provision for bad debts made this year. No
losses
VI. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2021 End of 2020
Proportion in Proportion Notes to the
Proportion in the
Amount the total Amount increase/decrease significant change
total assets(%)
assets(%)
Monetary fund 91,678,523.19 8.80% 159,343,241.47 13.43% -4.63%
Accounts
149,333,285.64 14.34% 221,386,452.90 18.66% -4.32%
receivable
Inventories 206,719,605.79 19.85% 169,145,986.78 14.25% 5.60%
Investment real
23,043,398.52 1.94% -1.94%
estate
Long-term equity 201,984,268.72 19.40% 186,213,719.02 15.69% 3.71%
25
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
investment
Fixed assets 216,541,481.98 20.79% 310,131,438.69 26.13% -5.34%
Construction in
1,811,125.46 0.17% 1,871,241.59 0.16% 0.01%
process
Short-term loans 493,460,000.00 47.39% 553,910,000.00 46.68% 0.71%
Contract
2,868,604.98 0.28% 1,479,711.62 0.12% 0.16%
liabilities
Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Items End of Book value Reason
Monetary fund 67,940,000.00 Bank acceptance bill security deposit, Fixed deposit
Financing receivable 17,010,000.00 Pledeg
Total 84,950,000.00
VII. Investment situation
1. General
√ Applicable □Not applicable
Investments made in the Reporting Period
Investments made in the prior year (Yuan) Increase/Decrease(%)
（\Yuan）
16,378,700.00 11,991,820.54 36.58%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□ Applicable √ Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □ Not applicable
In RMB
Industry Investme Accrued Accrued Reasons
Fixed involved nt Actual Realized for not
Investme Project Anticipat
Project investme in amount Investme Capital Income Reaching Disclosu Disclosu
nt schedul ed
re date re Index
name nts or investme in this nt Source up to the the
method e income
not nt reporting Amount End of Planned
projects period up to the Reportin Schedule
26
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
End of g Period and
Reportin Anticipat
g Period ed
Income
Construc See on
tion Equipme www.cni
project nt nfo.com.
Automot
of tendering cn
ive air
dynamic has been company
condition
and static 7,087,00 7,087,00 Self complete January announc
Self-built Yes er 91.00% 0.00 0.00
disk 0.00 0.00 funds d and 19,2021 ement on
compress
producti main Announc
or
on line of equipme ement
industry
electric nt has No.
compres arrived 2021-00
sor 1
Equipme See on
36CC nt www.cni
scroll tendering nfo.com.
Automot
electric has cn
ive air
compres complete company
condition
sor 125,000. 125,000. Self d and August announc
Self-built Yes er 0.70% 0.00 0.00
assembly 00 00 funds producti 28,2021 ement on
compress
line on line Announc
or
construct contract ement
industry
ion has been No.
project conclude 2021-04
d 9
See on
Equipme www.cni
Electric nt nfo.com.
Automot
compres tendering cn
ive air
sor has company
condition
experime 1,227,00 1,227,00 Self complete August announc
Self-built Yes er 16.00% 0.00 0.00
nt ability 0.00 0.00 funds d and 28,2021 ement on
compress
improve contract Announc
or
ment has been ement
industry
project conclude No.
d 2021-04
9
8,439,00 8,439,00
Total -- -- -- -- -- 0.00 0.00 -- -- --
0.00 0.00
27
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
No such cases in the Reporting Period
（2）Investment in Derivatives
□ Applicable √ Not applicable
No such cases in the Reporting Period
5.Application of the raised capital
□ Applicable √ Not applicable
No such cases in the Reporting Period
VIII. Sales of major assets and equity
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
No such cases in the Reporting Period
2.Sales of major equity
□ Applicable √ Not applicable
IX. 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 Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Production
Air and sales of
941,787,258. 260,010,011. 637,153,193.
Conditioner Subsidiaries automotive 160000000 869,524.39 978,166.39
83 87 27
Co. air
conditioners
Production
Pingshan and sales of USD 10 96,785,634.5 77,201,117.2 52,199,647.7
Shareholding 110,916.40 -59,095.87
Taikai motorcycles million 3 6 8
company
and parts
Production
Jianshe Shareholding and sales of 576,638,679. 400,851,818. 306,636,095. 31,573,273.5 31,541,099.3
420000000
HANON company Automobile 08 65 98 8 9
Thermal
28
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Energy
Management
system
Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable √ Not applicable
Note
The wholly-owned subsidiary Automotive Air Conditioning is mainly engaged in the production and sales of
fixed-displacement compressors for automotive air conditioners. With the increase of market share of new energy
vehicles, the fixed-displacement compressor market has further declined. In 2021, 1.731 million air-conditioning
compressors were sold, with a year-on-year decrease of 6.96%, and the operating income was RMB 637.15 million,
with a year-on-year decrease of 8.80%.
The wholly-owned subsidiary Pingshan Taikai is mainly engaged in the production and sales of carburetor and
parts for engines. In 2021, it made an effective breakthrough in the development and marketing of new products,
achieving a sales of 288,600 carburetors, 229,600 EFI and parts, and 439,900 auto parts, with a year-on-year
increase of 9.6%, 71.3% and 10% respectively, and achieving an operating income of RMB 52.2 million, with a
year-on-year increase of 31.96%.
The joint venture Jianshe HANON is mainly engaged in the production and sales of variable displacement
compressors. With the increasing market share of automobile new energy, it sold 534,000 variable displacement
compressors in the whole year, with a year-on-year increase of 35.34%, achieving an operating income of RMB
306.64 million, with a year-on-year increase of 32.05%.
X．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Prospect for future development of the Company
(I) Overall development trend of the industry and opportunities and challenges faced by the Company
Domestically, as China entered a new stage of development, with economic structure transformed and new
kinetic energy cultivated, innovation has become a new engine of economic development, green and low-carbon
transformation provides new kinetic energy for medium and long-term development, and China's economy is
striding towards high-quality development. However, faced with the triple pressures of demand contraction, supply
shock and expected weakening that have not occurred for many years, the growth momentum of consumption and
investment has weakened, and the production of enterprise is confronted with structural shortages, and cost and
price increase.
In term of industry, the overall trend of automobiles is still on the rise. Electrification, intelligence, networking
and sharing have become the development trend. The industrial ecology is facing remodeling and the competition
pattern is continuously adjusted. The explosive growth and accelerated penetration of new energy vehicles provide a
historical opportunity for the Company to "overtake".
In terms of the Company itself, it is still facing great development pressure and many difficulties. First, the
scale benefit of the Company is not high; Second, new energy products have not yet formed a scale, and their
competitiveness is not strong; Third, key core technologies still need to be tackled vigorously, and the speed of
product innovation needs to be further accelerated; Fourth, with imperfect talent team structure and insufficient
high-end leading talents, it is an arduous task to promote the Company's high-quality development.
29
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
(II) Company development strategy
In 2021, the Company researched and formulated its "136" strategy and compiled the "14th Five-Year Plan".
With the vision of "building a first-class scientific and technological innovative enterprise with international
competitiveness", focusing on "leading by science and technology, driven by innovation", and aiming at "doubling
the scale, benefit and efficiency", it vigorously implemented "deepening reform and adjustment, leading the
development of compressors, innovating and developing thermal management systems, changing and developing
spare parts, and strengthening party building". It defined the overall orientation of "focusing on the development of
3 businesses, namely thermal management system, compressor and spare parts, focusing on the layout and
industrialization of a full range of products of thermal management system and compressor for new energy vehicles,
and realizing industrial upgrading and development". (See the "14th Five-Year Plan of the Company" in the 2020
Annual Report for details)
(III) Company's production and operation arrangement in 2022
In 2022, it will strive to achieve a sales of 2 million sets of automobile air-conditioning compressors, with a
sales income of RMB 682 million. In order to achieve the annual goal, it will focus on the following aspects in 2022:
1. Accelerate the high-quality development of the industry, and strive to improve economies of scale.
First, steady progress in fixed-displacement compressors. Adhere to the traditional basic disk, explore the
stock for increment, continuously optimize the management mode of key customers, and stabilize the supporting
pattern of core key customers; strengthen front-end sales, comprehensively monitor and maintain mass production
projects, research projects and dual-track projects, continuously tap the potential of projects, shares and
opportunities, stick to the matching share of mass production projects, ensure the smooth mass production of
research projects, and strive to expand the share of dual-track projects; focus on expanding the commercial vehicle
market and strive for new customers and new projects; expand overseas markets on a large scale, actively promote
the gradient transfer of the Company's production lines, innovate the supply mechanism of foreign trade market, and
constantly optimize the market layout at home and abroad; strengthen offline market expansion, enrich product
categories, expand dealer agency authority, optimize dealer incentive mechanism, and promote sales volume.
Second, key breakthrough of electric compressor. Make full use of "building" brand image, market reputation
and customer resources, comprehensively apply differentiated marketing strategies, and take 18CC, 27CC and
36CC electric compressors as carriers to increase the market share of new energy.
Third, the development of spare parts to "specialization and innovation". Based on the existing products,
Pingshan Taikai will well ensure exporting carburetor market, enlarge and strengthen throttle body assembly,
accelerate the promotion of FI system and parts integration, accelerate the mass sales of fuel pumps, and promote
the scale growth; establish the calibration capability of EFI system, continue to promote the integrated sales of
standard version and α/N EFI system, form an EFI system with PTK brand influence, and improve profitability.
Based on the components of automotive air-conditioning compressor, Casting Machine Division will continuously
improve the technological level, fully utilize the product manufacturing capacity, continuously optimize the product
structure, continuously enhance the product competitiveness, and gradually move towards high-end product
processing.
Fourth, better and stronger variable displacement compressors. Consolidate the project and sales capacity
building of Jianshe HANON, fully utilize the advantages of advanced manufacturing and advanced quality
management, actively optimize and improve costs through scale quantity, local parts, management improvement,
VAVE improvement, etc., continuously improve product cost performance and enhance product competitiveness.
Fully rely on the wholesale-retail coordination mechanism to speed up the project expansion in the system, actively
rely on the Company's existing customer resources, increase the market expansion outside the system, and strive to
30
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
achieve sales of more than 600,000 units.
2. Accelerate scientific and technological innovation, and strive to improve development capacity
First, focus on strengthening the ecological chain construction of scientific and technological innovation.
Strengthen the construction of Automotive Thermal Management Research Institute, optimize the organizational
structure and business structure of scientific and technological innovation, and actively build a full life cycle R&D
management system. Fully utilize the role of innovation platforms such as enterprise technology centers, key
laboratories, engineering technology research centers, etc., continuously improve the capabilities of basic
technology research, experimental testing technology research, engineering technology, market application
technology, etc., and continuously optimize the ecological chain of scientific and technological innovation. Build an
industry-university-research ecosystem with enterprises as the main body, take independent research and
development as the core, promote cooperation and co-construction with universities and enterprises, and build an
open ecosystem of scientific and technological innovation.
Second, well ensure key products and technological innovation. Accelerate the green transformation,
consolidate the existing electric compressor technology platform, accelerate the market application of 36CC, and
complete the design verification of 36CC air-supplying enthalpy-adding compressor; carry out platform
development of 45CC electric compressor, complete design finalization and realize engineering; continue to
promote the research and development of heat pump air conditioning system and gradually build a new technology
platform. Strengthen the research of key core technologies, carry out special research on dynamic and static disks,
driving motors, controllers, etc., and improve self-control ability. Promote product technology upgrade, continue to
carry out basic technology research of fixed-displacement compressor, and continue to promote optimization and
upgrade of α/N and standard EFI system.
Third, improve the system and mechanism of scientific and technological innovation. Actively implement the
incentive policy and optimize the construction of scientific and technological innovation evaluation system.
Strengthen the system construction and fully stimulate the innovation vitality. Optimize science and technology
project management, gradually implement the strong matrix project management organization mode, and establish a
demand-oriented and problem-oriented project mechanism.
3. Speed up benchmarking and focus on improving management efficiency
Deepen the actions to improve the quality of economic operation. Carry out the special action of improving
quality and efficiency in 2022, continuously promote the cost reduction of spare parts, non-spare parts, controllable
expenses and VE projects, stabilize the gross profit level of traditional compressors, improve the gross profit level of
electric compressors, and ensure that the increase of the two funds is not higher than the increase of income.
Deepen technical management. Complete the self-made production line of electric compressor core
components and the construction of 36CC or above assembly line, strengthen the engineering capacity building and
control of the whole manufacturing chain of electric compressor, continuously optimize and improve the
engineering capacity of traditional compressor, strengthen the whole process technology and quality improvement,
and consolidate the management foundation.
Deepen quality management. Promote the continuous integration of quality systems and build a "1+N" quality
management system model in line with the Company's development; continue to optimize the quality cost, improve
the management weaknesses such as appraisal cost, prevention cost, internal loss cost and external loss cost, and
reduce the quality cost rate by 0.4 percentage points year on year to within 1.8%; carry out continuous quality
improvement activities, promote design optimization, process engineering optimization, and process capability
CPK improvement, and control the internal quality loss rate within 0.18% and zero-kilometer failure rate below 8
PPM.
31
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Deepen lean management. Carry out special tasks of lean production, promote the deep integration of lean
indicators and KPI, build a standard workplace, and promote the promotion of "three forces", with lean indicators
optimized by 5%, lean five-star teams reaching more than 20%, four-star teams reaching more than 40%, the
Company's Production Department 6S reaching the silver medal level, and functional offices reaching the bronze
medal level; accelerate the digital transformation, continuously promote the intelligent transformation and
upgrading of production lines, and build the 36CC production line into an automatic, intelligent and
information-based benchmark demonstration production line.
Deepen supply chain management. Optimize the traditional product procurement system, focus on building an
electric compressor supply chain, promote supplier quality capability certification (QJS), and promote continuous
improvement of suppliers.
Deepen the promotion of benchmarking first-class management. Promote the implementation of 82 work
initiatives in 15 benchmarking areas in benchmarking management promotion action list, build 1-2 benchmarking
models and benchmarking projects in various business areas of the Company, and promote the overall improvement
of 12 indicators such as operating profit growth rate, gross profit margin, total labor productivity, zero-kilometer
failure rate and R&D investment intensity.
The above financial budget, business plan, and business goals do not represent the Company’s profit forecast
for the future years, and whether it can be achieved depends on various factors such as changes in market conditions
and the efforts of the business team. As there is great uncertainty, investors are advised to pay attention to it.
XII.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Main contents Index of Basic
Place of Types of visitors discussed and Information on the
Reception time Way of reception Visitors received
reception received information Investigation and
provided Survey
Q: The
Company's stock
fluctuated
obviously in
February. What
was the reason?
A: The Company
Register of visitors for i
released its
March 1,2021 The Company By phone Individual Mr.Chen nvestors of the compan
annual
y
performance
forecast on
January 22, and
its performance
turned a profit,
but its net profit
was negative
32
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
after deducting
non-recurring
profits. For
details, please
refer to the
Company's 2020
Annual
Performance
Forecast.
Currently, the
Company has no
other
undisclosed
information that
should be
disclosed.
After the
disclosure of the
Company's
annual report,
the Company
held a
performance
presentation
meeting in 2020,
For the communication
and
content of the
communicated
performance
with investors in
presentation, please
Medium and a remote way
refer to the investor
May 14,2021 The Company Other Individual Small through the
relations management
shareholders internet,
files of Shenzhen Stock
explaining and
Exchange Interactive
describing the
Easy on May 14,2021
Company's
development
strategy,
production and
operation,
financial
situation and
other issues that
investors are
concerned about.
33
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Q: Have the
controlling
shareholders
implemented the
B-to-A plan for
Register of visitors for i
September the Company?
The Company By phone Individual Mr.Ding nvestors of the compan
1,2021 A: The Company
y
is not aware of
the controlling
shareholder's
B-to-A plan of
the Company.
Blackbody 1. It visited the
assets, Bosong production site
Assets, Kaipule of Han'ang, and
Assets, Great listened to the
wall Guorui introduction to
Securities, robot production
Jingcheng process and
Assets, Hengdao product. 2. It
Investment, consulted the
Company joint Ruida Futures, investment, Register of visitors for i
September
venture Jianshe Field research Organization Zhangying construction and nvestors of the compan
17,2021
HANON Investment , operation of y
Zhongqian Jianshe Han'ang.
Investment, Based on the
Tebon data disclosed in
Securitiies,, its 2020 annual
Baiyi report, the
Investment, Company
Secutities introduced
Times,Chance relevant
Bao information.
Q: What is the
relationship
between Jianshe
Industry and
Register of visitors for i
September Jianche B? A: At
The Company By phone Individual Mr.Zhang nvestors of the compan
27,2021 the beginning of
y
the listing of
Jianche B,
Jianshe Industry
was the parent
34
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
company of the
Company and
one of the
founders of the
Company. It was
the controlling
shareholder of
the Company
from 1995 to
2005. In 2005, it
transferred its
controlling stake
to China South
Industries
Group. At
present, the
Company and
the Jianshe
Industry are both
controlled by
China South
Industries
Group, and are
related parties.
Q: The Company
publicly listed
and transferred
assets such as the
106 factory
building in
Chongqing
Register of visitors for i
November United Equity
The Company By phone Individual Mr.Xu nvestors of the compan
19,2021 Exchange. Has it
y
been delisted? A:
Up to now, the
intended
transferee has
not been
collected for this
project.
35
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
IV. Corporate Governance
I.Basic state of corporate governance
In accordance with the Guidelines for the Governance of Listed Companies and other laws and regulations,
the company has continuously improved its governance mechanism and established an effective governance
structure, with clear rights and obligations of shareholders, directors, supervisors and senior executives, which can
ensure that shareholders fully exercise their legal rights, ensure that the Board of Directors is responsible to the
company and shareholders, and ensure the transparency of major information disclosure, legal operation and
honesty and trustworthiness of the company. There is no significant difference between the actual situation of
corporate governance and the normative documents on governance of listing companies issued by China
Securities Regulatory Commission.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The Company is completely separate from the holding shareholder in aspects of business, asset, finance, and
organization. It has its independent business operation.
1. Business: The Company has independent and complete development, purchase, production and marketing
system. The Company is capable to perform business operation independently.
2. Personnel: The Company established independent functional department responsible for labor, personnel and
wage management and formed labor, personnel and wage management system.
3. Asset: The Company’s assets are independent and complete. The assets are registered, booked, accounted, and
administrated independently.
4. Organization: The Company has established an organizational structure that is independent of its controlling
shareholder. The organs of the Company are able to exercise their functions independently.
5. Finance: The Company has set up independent finance department, formed independent financial accounting
system, established and perfected financial control system and internal control measures, opened independent
bank accounts and paid taxes independently.
III. Competition situations of the industry
□ Applicable √ Not Applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reportin
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
The First Extraordinary 74.45% February 3,2021 February 4,2021 It was reviewed and
36
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Extraordinary shareholders’ approved: 1.
shareholders’ General meeting Proposal on 2021
General meeting in Annual Investment
2021 Plan. 2. Proposal on
the 2021 Annual
Financing Plan of
Chongqing Jianshe
Vehicle Air
Conditioning Co.,
Ltd., a wholly-owned
subsidiary. 3.
Proposal on
Estimated Daily
Related Party
Transactions in 2021.
4. Proposal on
Estimated External
Guarantee in 2021. 5.
Proposal on
Provision for Asset
Impairment in 2020.
6. Proposal on
Adding Mr. Fan
Aijun as the Director
of the Ninth Board of
Directors.
It was reviewed and
approved:1. The
Work Report of the
Board of Directors
for 2020.2. The
Work Report of
Supervisors
committee 2020.3.
2020 Shareholders’ Annual General Annual Report for
74.49% May 28,2021 May 29,2021
general meeting Meeting 2020 and its
summary.4. Profit
distribution plan for
2020.5. Proposal for
Hiring the Annual
Financial Report
Audit Agency of
2021. 6. Proposal on
Adding Mr. Fan
37
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Aijun as the Director
of the Ninth Board of
Directors.
It was reviewed and
approved:1. Proposal
on Publicly Listing
of Transfer of Plant
The Second
and Land Assets.
Extraordinary Extraordinary
2.Proposal on
shareholders’ shareholders’ 74.45% October 26,2021 October 27,2021
Authorizing the
General meeting in General meeting
Board of Directors to
2020
Handle All Matters
Related to Listing of
Transfer of Plant and
Land Assets.
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Information about Directors, Supervisors and Senior Executives
1.Basic situation
Amount Amount
Shares of shares of shares Shares
Other
Starting Expiry held at increased decrease held at
Office changes
Name Positions Sex Age date of date of the at the d at the the Reason
status increase/
tenure tenure year-begi reporting reporting year-end
decrease
n(share) period(sh period(sh (share)
are) are)
Yan Novemb Not
Chairma May
Xuechua In office Male 58 er 0 0 0 0 0 applicabl
n 31,2023
n 13,2020 e
Not
Fan February May
Director In office Male 50 0 0 0 0 0 applicabl
Aijun 3,2021 31,2023
e
Not
Dong April May
Director In office Male 57 0 0 0 0 0 applicabl
Qihong 11,2019 31,2023
e
Not
Shi May May
Director In office Male 49 0 0 0 0 0 applicabl
Qingong 28,2021 31,2023
e
38
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Zhou Not
May May
Yongqia Director In office Male 49 0 0 0 0 0 applicabl
25,2016 31,2023
ng e
Not
April May
Hao Lin Director In office Male 58 0 0 0 0 0 applicabl
29,2008 31,2023
e
Independ Not
Li May May
ent In office Male 56 0 0 0 0 0 applicabl
Jiaming 22,2020 31,2023
Director e
Independ Not
May May
Xie Fei ent In office Male 57 0 0 0 0 0 applicabl
22,2020 31,2023
Director e
Independ Not
Song May May
ent In office Female 46 0 0 0 0 0 applicabl
Weiwei 22,2020 31,2023
Director e
Independ Not
May May
Liu Wei ent In office Male 57 0 0 0 0 0 applicabl
22,2020 31,2023
Director e
Employe
Novemb Not
e Dimissio March
Yu Jing \Male 50 er 0 0 0 0 0 applicabl
supervis n 20,2019
22,2021 e
or
Not
Zhang Dimissio April April
Director Male 42 0 0 0 0 0 applicabl
Di n 11,2019 28,2021
e
Chairma
n of the
Novemb Not
Lu supervis May
In office Male 57 er 0 0 0 0 0 applicabl
Xianyun ory 31,2023
27,2020 e
committe
e
Not
Zhang Supervis April May
In office Male 54 0 0 0 0 0 applicabl
Lungang or 11,2019 31,2023
e
Not
Qiao Supervis April May
In office Male 57 0 0 0 0 0 applicabl
Guoan or 11,2019 31,2023
e
Employe
Not
e March May
Liao Jian In office Male 50 0 0 0 0 0 applicabl
supervis 3,2021 31,2023
e
or
39
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Employe
Novemb Not
e May
Su Qiang In office Male 35 er 0 0 0 0 0 applicabl
supervis 31,2023
29,2021 e
or
Employe
Li Novemb Not
e Dimissio March
Yongjian \Male 40 er 0 0 0 0 0 applicabl
supervis n 20,2019
g 29,2021 e
or
Employe
Not
Rao e Dimissio March March
Male 56 0 0 0 0 0 applicabl
Song supervis n 20,2019 3,2021
e
or
Not
Fan January May
GM In office Male 50 0 0 0 0 0 applicabl
Aijun 18,2021 31,2023
e
Not
Yu Deputy March May
In office Male 55 0 0 0 0 0 applicabl
Wenbiao GM 25,2019 31,2023
e
Tan Chief Not
March May
Mingxia accounta In office Male 48 0 0 0 0 0 applicabl
25,2019 31,2023
n nt e
Li Not
Deputy Decembe May
Yongjian In office Male 40 0 0 0 0 0 applicabl
GM r 5,2021 31,2023
g e
Not
Fan Deputy Dimissio March January
Male 50 0 0 0 0 0 applicabl
Aijun GM n 25,2019 18,2021
e
Secretary Not
Zhang May May
of the In office Male 34 0 0 0 0 0 applicabl
Hushan 17,2018 31,2023
Board e
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, whether there is dismissal of directors and supervisors and decruitment of senior
executives
√ Yes □No
During the reporting period, The company has the resignation of directors and supervisors and the dismisssal of
Senior executives personnel during their term of office. For details, please refer to the following
"Changes in the company's directors, supervisors and senior management personnel"
II.Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
40
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Fan Aijun Deputy GM Dismiss January 18,2021 Job adjustment.
On January 18, 2021, he was appointed as the General
Fan Aijun GM Appointed January 18,2021 Manager by the Sixth Meeting of the Ninth Board of
Directors of the Company.
On February 3, 2021, he was elected as a director by the
Fan Aijun Director Elected February 3,2021 Company's First Provisional General Meeting of
Shareholders in 2021.
Due to work change, he resigned as a director of the Ninth
Zhang Di Director Dimission April 28,2021
Board of Directors on April 28, 2021.
On May 28, 2021, he was elected as a director by the
Shi Qingong Director Elected May 28,2021 Company's 2020 Annual General Meeting of
Shareholders.
Due to work change, On March 3,2021, it was decided at
Employee the leader meeting of the Company's employee delegation
Rao Song Appointed March 3,2021
supervisor that he would no longer serve as the employee supervisor
of the Ninth Board of Supervisors.
On March 3, 2021, he was elected as the employee
Employee
Liao Jian Elected March 3,2021 supervisor by the leader meeting of the Company's
supervisor
employee delegation.
Due to work change, On November 22,2021, it was
Employee November decided at the leader meeting of the Company's employee
Yu Jiang Dimission
Director 22,2021 delegation that he would no longer serve as the employee
director of the Ninth Board of directors
On November 29, 2021, he was elected as the employee
Employee November
Su Qiang Elected supervisor by the leader meeting of the Company's
supervisor 29,2021
employee delegation.
Due to work change, On November 29,2021, it was
Employee November decided at the leader meeting of the Company's employee
Li Yongjiang Appointed
supervisor 29,2021 delegation that he would no longer serve as the employee
supervisor of the Ninth Board of Supervisors.
On December 5, 2021, he was appointed as Deputy
December
Li Yongjiang Deputy GM Appointed General Manager by the Eleventh Meeting of the Ninth
5,2021
Board of Directors of the Company.
III. Status of service
Working experiences of current directors, supervisors, and executives
Situation by the end of 2021:
Mr. Yan Xuechuan, male, was born in September 1963, MBA, senior economist. He had served as deputy chief
economist and director of the business plan department of 5618 factory; served as deputy director and deputy
secretary of the party committee, secretary of the disciplinary committee, secretary of the party committee of 5618
41
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
factory; he was the director and party secretary of Hunan Huanan Optoelectronics (Group) Co., Ltd.; served as
Standing member of Dandong Municipal Committee of Liaoning Province, Deputy Mayor (Temporarily held) of
Dandong; served as director, party committee secretary, worker union chairman of the Company; he had served as
Director, Party Committee Secretary, Disciplinary Committee Secretary,worker union Chairman and General
Manager of Jianshe Mechanical and Electric. Currently, he serves as Chairman and party committee of the
company of the Company.
Fan Aijun, male, was born in July 1971, postgraduate degree of business management, engineer. He had served
as workshop technician, office secretary, deputy director of general administration, and deputy chief of staff of
Construction Group; he had served as vice general manager of Pan India Construction Co., Ltd, section chief of
overseas business section of Chongqing Jianya, deputy chief, and section chief of matching section, and section
chief of matching section of automobile division of the company; he had served as vice general manager, and
general manager of automotive air-conditioner compressor division, and he had served as vice general manager of
the company; currently, he serves as deputy party secretary of Jianshe Mechanical and Electric Company, and he
is the general manager, director and CFO of the company. Currently, he serves as General Manger of the
Company.
Dong Qihong, male, was born in September 1964, bachelor degree in economic management, senior engineer.
He was Former Secretary of Youth League Committee of Qingshan Machinery Factory, Deputy Director of
Motorcycle Parts Branch; Deputy Minister and Minister of Personnel and Labor Department of Chongqing
Qingshan Industrial Co., Ltd., Deputy Secretary of Party Committee, Secretary of Discipline Inspection Committee,
Chairman of Worker Union, Deputy General Manager, Director, Secretary of Party Committee of Chongqing
Qingshan Industrial Co., Ltd; he had served as Deputy General Manager and General Manager of Chongqing
Qingshan Transmission Branch of China South Industrial Automobile Co., Ltd; General Manager of Chongqing
Qingshan Industrial Co., Ltd .; Deputy Director and Director of Audit and Risk Department of China South
Industries Group Corporation; Chairman and Secretary of Party Committee of Baoding Tianwei Group Co., Ltd.;
Inspector of Audit and Risk Department, Inspector of Supervision Department, Inspector of Discipline Inspection
and Supervision Department of China South Industries Group Corporation; Supervisor of South Asset Management
Company; Chairman of Chang’an Automobile Supervisory Committee; and he was Director of Construction
Mechatronics. Currently, he is the director of China Jialing, director of Luoyang North, director of Jinan Qingqi
and Dajing Industrial and director of the Company.
Shi Gonggong, male, born in July 1972, master's degree in software engineering, Senior Accountant. He used to
be the Leading Accountant of Accounting Section, Director of Enterprise Management Section, Director of Asset
Management Department, Director of Investment and Financing Management Department and Deputy Director of
Financial Settlement Center, Director of Financial Audit Department, Assistant to General Manager, Financial
Director of Lida Optoelectronics Dongguan Xujin Optoelectronics Co., Ltd., Director, Chief Accountant, General
Manager, Member and Deputy Secretary of the Party Committee of Hunan South China Optoelectronics Co., Ltd.
He is currently the Director of Luoyang North, Jinan Qingqi and the Company.
Zhou Yongqiang, male, was born in December 1972, bachelor degree in engineering management, senior
economist. He had served in China Jialing Group in posts of section chief of investment management section,
section chief of Investment Planning Section, deputy director of investment management department, Assistant
Minister of planning department and Assistant Minister of development department; General manager of
Chongqing Jiufang Foundry Co.,Ltd; he had served as general manager assistant with concurrent post of minister
of development planning, and deputy general manager of China Jialing Group, and minister of capital operation of
Military Motorcycle. Currently, he serves as director of corporate development department of motorcycle division
of Military Equipment Group, deputy chief economist and minister of development operation department of
42
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Military Motorcycle, director of Luoyang North Enterprise Group, and director of the company.
Hao Lin, Male, born in 1963, Master. At present he’s Chairman of Chongqing Tongkang Technologies Co., Ltd.,
and Director of the Company. He served as Director of the Company.
Li Jiaming: male, was born in 1965, with a doctoral degree and a professor title. He was former Head of the
Teaching and Research Section of the Department of Economics II, Yuzhou University; deputy director of the
accounting department of Chongqing University School of Business Administration, deputy director of the
Disciplinary Supervision Office of Chongqing University, deputy director, director of the Audit Office of
Chongqing University, General Manager of Chongqing University Science and Technology Enterprise Group,
Director of MPAcc Center of School of Economics and Management of Chongqing University, and Executive
Deputy Dean of Chongqing University of Science and Technology of Dazi City, he served concurrently as
independent director of Chongqing Yu Development Co., Ltd, Guangxi Liugong Machinery Co., Ltd. and
Chongqing Jianshe Motorcycle Company. Currently, he is the chairman of Chongqing University Asset
Management Co., Ltd and an independent director of the Company.
Xie Fei: Male, born in 1964, doctor degree, professor title, visiting scholar at Australian National University,
and research student at Ritsumeikan University in Japan. He was a member of the Standing Committee of the
Youth League Committee of Chongqing University, a teacher and director of Chongqing Industrial Management
Institute, and a teacher and director of Chongqing Institute of Technology. Currently, he is Dean of the School of
Economics and Finance of Chongqing University of Technology, concurrently serves as Educational Inspector of
Chongqing Municipal People’s Government, Executive Director of Chongqing Finance Society, Executive
Director of Chongqing Macroeconomics, Decision Consulting Expert of Chongqing Development and Reform
Commission, Leader of Applied Economics and Asset Appraisal of Chongqing University of Technology, and he
is an independent director of Chongqing Yuxin Pingrui Electronics Co., Ltd and an independent director of the
Company.
Liu Wei: Male, born in 1964, doctoral degree, professor title, former lecturer, associate professor, assistant
dean of the first department of mechanical engineering of Chongqing University, he served as professor and
deputy director of the research institute of the School of Mechanical Engineering of Chongqing University, once
concurrently served as independent director in Chongqing Chang’an Automobile Co., Ltd. Co., Ltd, Chongqing
Science and Technology Venture Capital Co., Ltd, Chongqing Jianfeng Chemical Co., Ltd, Chongqing Angel
Investment Guidance Fund Co., Ltd, and Chongqing Zaisheng Technology Co., Ltd, and external director of
Chongqing Iron and Steel (Group) Co., Ltd. Currently, he serves as professor, doctoral supervisor, deputy director
of the research center, and department head of the School of Economics and Business Administration of
Chongqing University, concurrently serving as independent director of Chongqing Mechanical and Electrical Co.,
Ltd., Chongqing Fuling Power Industry Co., Ltd, Chongqing Three Gorges Paint Co., Ltd., and Chongqing
Zhengchuan Pharmaceutical Packaging Materials and the Company.
Song Weiwei: female, born in 1975, master degree, professor of financial management and certified public
accountant. She served concurrently as the chairman of Chongqing University of Technology Weigan Technology
Co., Ltd. Currently, she serves as professor at the School of Accounting of Chongqing University of Technology,
concurrently serving as independent director of Chongqing Chuanyi Automation Co., Ltd, SPIC Yuanda
Environmental Protection Co., Ltd, Chongqing Three Gorges Paint Co., Ltd and the Company.
Lu Xianyun, male, Han nationality, was born in November 1964. He has a postgraduate degree in business
administration and has the title of researcher-level senior engineer. He served as Minister of Manufacturing
Department, Assistant to General Manager and Minister of Human Resources, and Deputy General Manager of
Qingshan Plant, and once served as Deputy General Manager, Secretary of the Party Committee, Secretary of the
Disciplinary Committee, Chairman of the Labor Union, and Director of Chongqing Qingshan Industrial Co., Ltd,
43
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
and he was Secretary of the Party Committee of, Secretary of the Commission for Discipline Inspection,
Chairman of the Labor Union in Chongqing Qingshan Transmission Branch. Currently, he is a supervisor of
Yunnan Xiyi and the chairman of the Company's board of supervisors.
Zhang Lungang, male, was born in January 1967, university degree in financial management, senior accountant
title. He was Former financial chief accountant of 5003 Factory; Deputy division chief of the Financial
Department of Southwest Ordnance Bureau; Financial Manager of Chongqing Wanyou Kang’nian Hotel; Division
Chief of the Financial Department, Division Chief of Financial Audit Department, Division Chief of Asset
Management Department of Southwest Ordnance Bureau; Deputy General Manager, Chief Accountant of Dajiang
Industrial Group Corporation; Deputy General Manager of Chongqing Jiangtong Machinery; Director, Chief
Accountant and Secretary of the Party Committee of Chongqing Chang’an Industry (Group) Co., Ltd .; Chairman of
the Supervisory Board of Chengdu Jinlin Industrial Manufacturing Co., Ltd; Supervisor and Chairman of the
Supervisory Board of Chengdu Lingchuan Special Industry Co., Ltd.; Supervisor of the Supervisory Board of
Sichuan Huaqing Machinery Co., Ltd .; and Chairman of the Supervisory Committee of Construction Mechatronics.
He is currently the Chairman of the Supervisory Committee of Construction Mechatronics, and Supervisor of
Yunnan Xiyi Industry Co., Ltd.
Qiao Guoan, male, was born in May 1964, holding a bachelor's degree in systems engineering and a senior
engineer title. He used to be Chief of Technology Section, Chief of Integrated Management Section of Chief
Engineer's Office, Deputy Chief of Science and Technology Department, Minister of Science and Technology
Quality Department of 861 plant, Assistant General Manager, Deputy General Manager and Chief Engineer,
Director, General Manager, Deputy Secretary of the Party Committee of Hunan Yunjian Group Co., Ltd; and
Supervisor of Jianshe Mechanical and Electric . He is currently the supervisor of Yunnan Xiyi Industry Co., Ltd.
and the supervisor of Jianshe Industry and the supervisor of the Company.
Liao Jian, male, born in April 1971, college degree in accounting, Assistant Accountant. He used to be the
Director of Accounting Office of Finance Department of Jianshe Group, Director of Securities Office of Asset
Operation Department, Deputy Director, Deputy Director and Director of Finance Department of Jianmo B, Deputy
General Manager (concurrently) of Vehicle Air Conditioning, Director of Jianshe Electromechanical Finance
Department, Executive and Deputy General Manager of Pingshan Taikai, and Deputy Director (presiding) of Audit
Risk Department of Jianche B. He is currently the Director of Audit Risk Department and Employee Supervisor of
the Company.
Su Qiang, male, born in November 1986, graduated from North University of China, majoring in Mechanical
and Electronic Engineering, Political Engineer. He used to be the Technician in the Casting Room of the Company's
Equipment Preservation Section, participating in post-job training in Chongqing Municipal Committee of the
Communist Youth League, Communist Youth League officer and organization officer in the Party-mass Work
Department of the Company, Marketing Planner and Engine Salesman in the Joint Venture Business Department of
the Company, and Deputy Head of the Purchase Management Division in the Production Management Department
of Zhuzhou Jianshe Yamaha Motorcycle Co., Ltd. He is currently the Deputy Secretary of the Communist Youth
League Committee, the Deputy Secretary of the Party Branch and the Deputy Director of the Party-mass Work
Department.
Yu Wenbiao, male, was born in November 1966, bachelor's degree in automatic machinery, senior engineer
title of researcher. He used to be Former Deputy Director of Workshop 61 of Construction Group, Deputy Division
Chief of Quality Assurance Division of Firearms Company, Deputy Director of Firearms Research Institute, Deputy
Minister of Development Planning Department, Director of Beijing Office, Director of Economic Operation
Department of Development Planning Department, Deputy Minister of Development Planning Department
(Hosting), Minister of Development Planning Department, Minister of Joint Venture Cooperation Management
44
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Department, Assistant General Manager, Minister of Asset Operation Department; Secretary of the Board of
Directors of Jianmo B; Deputy General Manager of Zhuzhou Jianya; Deputy General Manager, Member of the
Party Committee of Jianmo B; Deputy General Manager, Party Committee Member; and Company Director of
Jianshe Mechanical and Electric . Currently, he is the Deputy General Manager of the Company.
Mr. Tan Mingxian, male, was born in May 1973, bachelor degree in accounting, senior accountant, Chinese
Certified Tax Agent, Certified Management Accountant (CMA). He had served as Supervisor, Deputy Minister and
Minister of Finance Department of Chongqing Wangjiang Industrial Co., Ltd.; served as Chief Accountant of
Sichuan Xiguang Industrial Group Co., Ltd; severed as Deputy Minister of Finance Department of Chongqing
Chang’an Industrial Group Co., Ltd.; severed as Deputy Chief Accountant of Chongqing Wangjiang Industrial Co.,
Ltd; he was a supervisor of supervisory board of China Jialing, Jianmo B, Jinan Qingqi, and Luoyang North; he
had served as Office Director of Southern Motorcycle Supervisory Affairs Office; severed as Chief Financial
Officer of Chongqing Southern Motorcycle Technology R&D Co., Ltd. Currently, he is the chief accountant of
Construction Electromechanical; he is a director of the Company. he served as Chief accountant of the Company.
Li Yongjiang, male, was born in November 1981, holding bachelor degree in mechanical engineering and
automation and the senior engineer title. He used to be Deputy Section Chief of the Engine Group of Construction
Group; Chief of Workshop Room 54, Deputy Chief of Machine Shop of Manufacturing Department, Director of
Precision Management Office of Jianmo B Engine Business Department; Practice Section Chief of Chongqing
Jianya casting section; Deputy Director of the Jianmo B press welding workshop; Deputy Minister of the production
management department; Deputy Minister of the construction machinery manufacturing management department;
Deputy Division Chief of the manufacturing department of Chang’an Automobile Yubei Factory (Concurrent
Post). He is currently the Vice Chairman of the Company's worker union, Minister of the party and mass work
department, and Employee Supervisor. he served as Deputy General Manager of the Company.
Mr. Zhang Hushan, male, was born in August 1987, bachelor degree, political engineer title. He had served as
the operation administrator in the company's business planning department and secretary of the league branch of the
business cooperation group (during the period of 2011.08~2013.02, worked in the capital operation department of
China South Industries Group Corporation); served as the general affairs officer of the company office, and he was
the member of the Youth League Committee and the secretary of the league branch of the second group; he had
severed as deputy minister of the Business Planning Department and deputy minister of the Automotive Air
Conditioning Business Planning Department. Currently, he is the deputy minister of the company's business
planning department (the secretary-general office) and the deputy director of the secretary-general office; and he is
the secretary of the Board of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharing date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Dong Qihong Luoyang North Director October Yes
45
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
10,2018
December
Dong Qihong Jinan Qingqi Director Yes
3,2018
November
Dong Qihong Dajiang Industrial Director Yes
29,2021
Shi Qingong Luoyang North Director April 16,2021 Yes
Shi Qingong Jinan Qingqi Director April 6,2021 Yes
Director of
Zhou Southern Group Southwest Region the Enterprise
July 1,2013 Yes
Yongqiang Motorcycle Feform and Development Dept Development
Department
Zhou
Jinan Qingqi Director April 7,2016 April 6,2021 Yes
Yongqiang
Zhou
Luoyang North Director April 7,2016 Yes
Yongqiang
Chairman of
November
Zhang Lungang Jianshe Industry the board of Yes
6,2017
supervisors
November
Zhang Lungang Yunnan Xiyi Industry Co., Ltd. Supervisor Yes
6,2017
Qiao Guoan Jianshe Industry Supervisor January 3,2018 Yes
November
Lu Xianyun Yunnan Xiyi Supervisor Yes
10,2020
Offices taken in other organizations
√Applicable □Not applicable
Take
Names Name of the parties Positions Job started Job ended remunerations
from the party
Hao Lin Chongqing Tongkang Technology Co., Ltd. Chairman July 1,1999 Yes
Chongqing University Assets Management September
Li Jiaming Chairman July 1,2019 Yes
Co., Ltd. 23,2021
Chongqing University Assets Management November
Li Jiaming GM Yes
Co., Ltd. 21,2021
Chongqing University of Technology Professor,
Xie Fei January 4,2016 Yes
School of Economics and Finance President
Director,
Department
Chongqing University of School of
Liu Wei of Enterprise April 2,2001 Yes
Economics and Business Administration
Mangement,P
h.D
46
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Song Weiwei Accounting School of CQUT Professor July 3,2000 Yes
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The Board of Directors follows the market rules and reflects the characteristics of enterprise, and implements
an annual salary system for the members of the managers, which consists of basic annual salary and performance
annual salary. By signing employment contracts and performance contracts, stipulating responsibilities, rights and
obligations, conducting strict employment management and objective assessment, and smoothing the exit
mechanism, it will build a professional and specialized management team.
During the implementation, the Board of Directors decides the salary structure and level of managers in
accordance with the Salary Management Measures and the Performance Management Measures. The basic annual
salary is the annual basic income, which is mainly determined according to the relative value of the positions of
managers, the responsibilities and risks they undertake, work experience, ability to hold positions and other factors.
The annual salary of performance is the annual floating income, which is linked to the annual performance
assessment results, reflects the situation of managers' completion of the annual business plan and objectives, and is
determined according to the completion of the Company's main financial indexes and individual performance
assessment results.
Remuneration of directors, supervisors, and executives in the report period
In (RMB '0,000)
Total Remuneration
remuneration actually receives
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Yan Xuechuan Chairman Male 58 In office 41.05 No
Fan Aijun Director, GM Male 50 In office 37.22 No
Dong Qihong Director Male 57 In office 12.9 Yes
Shi Qingong Director Male 49 In office 12.67 Yes
Zhou Yongqiang Director Male 49 In office 0 Yes
Hao Lin Director Male 58 In office 0 Yes
Independent
Li Jiaming Male 56 In office 3.57 No
Director
Independent
Xie Fei Male 57 In office 3.57 No
Director
Independent
Song Weiwei Female 46 In office 3.57 No
Director
Liu Wei Independent Male 57 In office 3.57 No
47
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Director
Chairman of the
Lu Xianyun supervisory Male 57 In office 28.91 Yes
committee
Zhang Lungang Supervisor Male 54 In office 23.42 Yes
Qiao Guoan Supervisor Male 57 In office 23.51 Yes
Employee
Liao Jian Male 50 In office 23.62 No
Supervisor
Employee
Su Qiang Male 35 In office 20.7 No
Supervisor
Yu Wenbiao Deputy GM Male 55 In office 37.09 No
Tan Mingxian Chief accountant Male 48 In office 36.9 No
Li Yongjiang Deputy GM Male 40 In office 29.21 No
Secretary of the
Zhang Hushan Male 34 In office 27.27 No
Board
Employee
Yu Jiang Male 50 Dimission 31.28 No
director
Employee
Rao Song Male 56 Dimission 17.58 No
Supervisor
Zhang Di Director Male 42 Dimission 0 Yes
Total -- -- -- -- 417.61 --
VI. Performance of directors' duties during the reporting period
1. Information of the board meetings during the reporting period
Session Convening date Disclosure date Meeting resolution
It was reviewed and approved:
Proposal on 2021 Annual
Investment Plan, Proposal on
the 2021 Annual Financing Plan
of Chongqing Jianshe Vehicle
The 6th meeting
Air Conditioning Co., Ltd., a
of the Ninth
January 18,2021 January 19,2021 wholly-owned subsidiary,
Board of
Proposal on Estimated Daily
Directors
Related Party Transactions in
2021, Proposal on Estimated
External Guarantee in 2021,
Proposal on Provision for Asset
Impairment in 2020, Proposal
48
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
on Overall Audit Strategy of
Financial Statements in 2020,
Proposal on Training Plan in
2021,Proposal on Nominating
Mr. Fan Aijun as the Candidate
of the Ninth Board of Directors,
Proposal on Appointing Mr. Fan
Aijun as General Manager,
Proposal on Convening the First
Extraordinary General Meeting
of Shareholders in 2021
It was reviewed and
approved: the Work Report
of the Board of Directors for
2020, the Work Report of the
General Manager for 2020,
Annual Report 2020 and
Summary,The dividend plan
2020, Evaluation Report on
Internal Control in 2020,
Summary Report on
Corporate Audit of
Accounting Firms in 2020 and
Proposal on Renewing
Financial Audit Institutions
and Internal Control Audit
The 7th meeting
Institutions in 2021, Risk
of the Ninth
April 28,2021 April 30,2021 Evaluation Report of Military
Board of
Equipment Group Finance
Directors
Co., Ltd., Proposal on the
Outline of the 14th Five-Year
Plan of the Company,
Proposal on Adjusting
Organizational Structure,
Proposal on Amending the
Measures for Comprehensive
Risk Management, Proposal
on Nominating Shi Qingong
as a Candidate for the
Director of the Ninth Board of
Directors, Proposal on
Adjusting the Remuneration
and Appraisal Committee of
the 9th Board of
49
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Directors.The First quarter
Report of 2020, Proposal on
Convening the General
Meeting of Shareholders in
2021
It was reviewed and approved:
Proposal for semi-annual report
2021 and its summary, Report
on Risk Assessment of Military
The 8th meeting Equipment Group Finance Co.,
of the Ninth Ltd., Proposal on Transferring
August 26,2021 August 28,2021 Assets such as Plant and Land,
Board of
Directors Proposal on Adding Fixed
Assets Investment Projects in
2021, Proposal on Adding
Members of the Strategy
Committee of the Ninth Board
of Directors
It was reviewed and approved:
Proposal on Public Listing of
Transfer of Plant and Land
Assets, Proposal on Requesting
The 9th meeting the General Meeting of
of the Ninth Shareholders to Authorize the
October 9,2021 October 11,2021
Board of Board of Directors to Handle
Directors Matters Related to Listing of
Transfer of Plant and Land
Assets,. Notice on Holding
2021 second Extraordinary
Shareholders' General Meeting
The 10th
It was reviewed and approved:
meeting of the
October 28,2021 October 30,2021 The Third quarter Report of
Ninth Board of
2021
Directors
It was reviewed and approved:
Proposal on Adjusting the
Transfer Price of Public Listing
The 11th
of Plant and Land Assets,
meeting of the
December 5,2021 December 6,2021 Proposal on Formulating the
Ninth Board of
Administrative Measures for
Directors
Information Disclosure,
Proposal on Amending the
Administrative Measures for the
50
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Registration of Insider
Information and Proposal on
Appointing Mr. Li Yongjiang as
the Deputy General Manager of
the Company.
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
Whether to
board meetings Number of board meetings Number of General
Number of attend the
attended board meetings attended by board meetings meetings of
Name of director board meetings board meeting
during the attended in means of attended by shareholders
absent from in person twice
reporting person communicatio proxy attended
in a row
period n
Yan Xuechuan 6 4 2 0 0 No 3
Fan Aijun 5 3 2 0 0 No 2
Dong Qihong 6 4 2 0 0 No 3
Shi Qingong 4 2 2 0 0 No 2
Zhou Yongqiang 6 4 2 0 0 No 3
Hao Lin 6 3 1 1 1 Yes 3
Li Jiaming 6 4 2 0 0 No 3
Xie Fei 6 4 2 0 0 No 3
Song Weiwei 6 4 2 0 0 No 3
Liu Wei 6 4 2 0 0 No 3
Yu Jiang 5 2 1 2 0 No 2
Zhang Di 2 1 0 1 0 No 1
Explanation of failure to attend the board meeting in person twice in a row
Director Hao Lin was hospitalized due to illness. During her hospitalization, the company held two consecutive bo
ard meetings (ie: the ninth meeting of the ninth board of directors on October 9, 2021 and the tenth meeting of the
ninth board of directors on October 28, 2021). meeting), so there were two consecutive failures to attend the boar
d meeting in person.
3. Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
51
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
√ Yes □No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
In 2021, the Company's directors learned about the its production and operation through field visits, consulting
the Company's information and listening to reporting, and paid attention to the development of the automobile
industry, important customers, key suppliers, major competitors and other related situations. In their respective
professional fields, they put forward professional opinions and management suggestions on its "14th Five-Year
Plan", product structure adjustment and new product R&D direction. The management of the Company listened to
and adopted the suggestions of the directors, and implemented them in specific work.
VII. Situation of special committees under the Board of Directors during the reporting period
Put forward Other
Number of Details of
Committee Member Meeting important information of
meetings Convening date objections (if
name information content opinions and duty
convened any)
suggestions performance
Audit of and 1. It is agreed to During the
Opinions on the submit the preparation of
2020 Annual 2020 annual the Company's
Financial accounting annual report,
Statements statement actively
Prepared by the prepared by the participate in
Company's Company's the training on
Finance Finance the annual
Department; Department to report and learn
Audit of and the accounting relevant laws
Opinions on the firm for and
4：Chairman of
Overall Audit preliminary regulations;
the
Strategy of the review. 2. It is Negotiate with
Committee：
2020 Annual agreed to the accounting
Audit Song Weiwei,
3 January 8,2021 Financial submit the firm to
Committee Member: Li
Statements overall audit determine the
Jiaming, Xie
Submitted by strategy of the time schedule
Fei, Dong
Zhongxing 2020 financial of the annual
Qihong
Caiguanghua statements financial report
Certified Public submitted by audit, pay
Accountants the accounting attention to the
(Special firm to the progress of the
General Board of audit many
Partnership); Directors for times during
Audit of and consideration. the audit, and
Opinions on the 3. It is agreed to urge the
Company's submit the accounting firm
Estimated Proposal on to submit the
Daily Related Estimated audit report
52
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Party Daily Related within the
Transactions in Party agreed time
2021; Audit of Transactions of limit.
and Opinions the Company in
on the 2021 to the
Company's Board of
Provision for Directors for
Asset consideration.
Impairment in 4. It is agreed to
2020. submit matters
of the provision
for asset
impairment of
RMB
12,641,100 in
2020 to the
Board of
Directors for
deliberation.
Propose to
Review the increase the
2021 Audit content of audit
Plan of the informatization
March 10,2021
Company and construction in
put forward terms of
opinions. measures
guarantee.
Audit of the 1. It is agreed to
Company's submit the
2020 Annual 2020 annual
Accounting audit report
Statements and issued by
Notes, Audit of Zhongxingcai
the 2020 Certified Public
Annual Internal Accountants to
April 8,2021 Control the Board of
Evaluation Directors for
Report, consideration.
Summary of 2. It is agreed to
the Company's submit the
Audit Work by 2020 internal
Accounting control
Firms in 2020, evaluation
Suggestions on report to the
53
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Whether the Board of
Company will Directors for
Continue to consideration.
Hire 3. It is
Zhongxingcai suggested that
Guanghua Zhongxingcai
Certified Public Guanghua
Accountants Certified Public
LLP and Pay Accountants
Audit Fees in LLP shall
2021, and continue to be
Measures for employed to
Auditing the audit the
Company's financial
Comprehensive statements and
Risk internal control
Management of the
Company in
2021. It is
suggested that
the audit fee for
financial
statements
should be RMB
450,000 and the
audit fee for
internal control
should be RMB
150,000. 4. It is
agreed to
submit the
Company's
Comprehensive
Risk
Management
Measures to the
Board of
Directors for
consideration.
4：Chairman of Study and It is agreed to Follow the
the Opinions on the submit the changing trend
Strategy
Committee： 4 January 8,2021 Company's 2021 of national
Committee
Yan Xuechuan, 2021 investment industrial
Member: Shi Investment plan, 2021 policies, study
54
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Qingong, Zhou Plan, Study and financing plan the
Yongqiang, Liu Opinions on the and 2021 development
Wei. Company's estimated trend of
2021 Financing external domestic and
Plan, Study and guarantee items foreign markets
Opinions on the to the Board of and
Company's Directors for technologies,
2021 Expected consideration. and pay
External attention to the
Guarantee development of
Items major
competitors.
1. With the
vision of
"building a
first-class
scientific and
technological
innovative
enterprise with
international
competitivenes
Discussion and
s", the
Opinions on the
Company
Outline of the
further
Company's
promotes its
"14th
"1363"
Five-Year
strategy, speeds
April 8,2021 Plan",
up structural
Discussion and
optimization,
Opinions on the
focuses on
Overall
innovation
Business
mechanism,
Objectives in
deepens reform
2021
and adjustment,
continuously
improves
management,
strengthens
human
resources,
strengthens
party building,
practically
55
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
improves
operating
efficiency, and
pushes the
Company's
high-quality
development to
a new level
according to
the guiding
principle of
"overall
planning,
distributed
promotion,
focusing on
resources and
innovating
mechanism". 2.
Put forward the
overall
business target
in 2021: It is
suggested that
the Company's
annual sales
target of
vehicle
air-conditionin
g compressor
products in
2021 should be
1.92 million
units, with a
sales income of
RMB 730
million.
Study and 1. It is
Opinions on the suggested to
Adjustment of invest RMB 18
July 26,2021 Investment million to build
Plan in 2021 a 36CC scroll
and Study and electric
Opinions on the compressor
56
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Transfer of production line
Assets such as and RMB 7.5
Plant and Land million to build
an electric
compressor
performance
test bench and
an electric
compressor
durability test
bench in the
wholly-owned
subsidiary
Vehicle Air
Conditioning
Company. 2. It
is suggested to
transfer the idle
106 plants, the
corresponding
land use right
and related
ancillary
machinery and
equipment
based on the
assessed value
of RMB
172.033
million
(preliminary
evaluation).
The funds
obtained are
used to repay
part of the
Company's
debts, and to
strengthen the
Company's
manufacturing
capacity
building and
R&D capacity
57
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
building.
It is suggested
that the Board
of Directors
Study and put make the asset
forward transfer price
opinions on not less than
November adjusting the 92% of the
30,2021 transfer price of assessed value,
public listing of i.e. RMB
plant and land 157,382,000
assets (including tax)
for the second
listing to solicit
the transferee.
The candidate
is qualified and
Review the capable of
qualifications performing his
of Fan Aijun as duties, and it is
January 8,2021 a candidate for agreed to
Director and submit the
General application to
Manager the Board of
Directors for
4：Chairman of consideration.
the The candidate
Committee： is qualified and
Nomination Li Jiaming, capable of
3
Committee Member : Liu Review the performing his
Wei, Song qualifications duties, and it is
Weiwei, Fan April 26,2021 of Shi Qingong agreed to
Aijun as a candidate submit the
for Director. application to
the Board of
Directors for
consideration.
Review the The candidate
qualifications is qualified and
November of Li Yongjiang capable of
30,2021 as a candidate performing his
for Deputy duties, and it is
General agreed to
58
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Manager of the submit the
Company. application to
the Board of
Directors for
consideration.
In 2020, there
were 19
directors
(including
independent
directors) and
senior
managers who
were paid by
the Company
(including
those who
resigned).
According to
the
Review the
achievement of
4：Chairman of performance of
the Company's
the duties of
main financial
Remuneration Committee： directors and
indicators and
and Xie Fei, senior
1 April 8,2021 business
Assessment Member: Liu management in
objectives in
Committee Wei, Li 2020, and
2020,
Jiaming, Yan conduct annual
combined with
Xue Chuan performance
the assessment
assessment
of the
above-mention
ed personnel's
in-charge work
indicators and
their business
abilities, it was
considered that
the salary level
of the
Company's
directors and
senior
managers in
this year was in
59
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
line with the
provisions of
the Company's
Evaluation and
Incentive
System for
Senior
Managers, and
it was agreed
that the
Company
would pay a
total salary of
RMB 3.611
million.
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during the repo
rting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.
IX. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 186
Number of in-service staff of the main subsidiaries（person） 608
Total number of the in-service staff（person） 794
Total number of staff receiving remuneration in the current
794
period（person）
The number of the parent company and the main subsidiary’s
147
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 472
Sales 35
Technical 169
Financial 25
Administrative 93
60
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Total 794
Education
Classified according by Professions Number of persons（person）
Mid-school or below 299
Colleges or above 225
Universities or above 255
Postgraduate or above 15
Total 794
2. Remuneration policies
The mode of piecework wage for production personnel was carried out. Sales commissions are employed to
sales personnel. Other employees will enjoy the basic broadband salary. The salary of employees is closely related
to individual performance, department performance and company operating results.
3.Training plan
In 2021, the Company incurred a total training fee of RMB 980,000. It organized 186 training sessions, including
108 internal training sessions and 78 external training sessions, with a total of 5,388 person-times, a total of 35,924
hours, and an average of 61 hours per employee, thus fully completing the Company's annual training plan. It
organized the on-the-job (transfer) training for and appraisal of 256 production and operation employees, and issued
the on-the-job operation certificate. It provided online learning platform, and opened self-learning courses in
various fields for employees of the Company, with an average of 39 hours per person.
4. Outsourcing situation
□ Applicable √ Not applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy
during the reporting period
√ Applicable □ Not applicable
According to the Notice on Further Implementing Cash Dividends of Listed Companies (JJF [2012] No.37)
issued by China Securities Regulatory Commission, on July 26, 2012, the Seventh Meeting of the Sixth Board of
Directors of the Company supplemented and revised the profit distribution policy in the Articles of Association, in
which specific policies such as the form of profit distribution, the specific conditions and proportion of dividend
distribution, and the principle of using undistributed profits were defined, and submitted it to the First Extraordinary
General Meeting of Shareholders in 2012 held on August 30, 2012 for review and approval. The Board of Directors
of the Company prepares a profit distribution plan every year, which conforms to the provisions of the Articles of
Association of the Company, and independent directors have expressed their consent. The profit distribution plan
reviewed and approved by the General Meeting of Shareholders of the Company has been implemented by the
Board of Directors.
Special description of cash dividend policy
61
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Whether it meets the requirements of the Articles of Association
Yes
or the resolution of the general meeting of shareholders:
Whether the dividend standard and proportion are explicit and
Yes
clear:
Whether the relevant decision-making procedures and
Yes
mechanisms are complete:
Whether the independent directors have performed their duties
Yes
and played their due role:
Whether the minority shareholders have the opportunity to fully
express their opinions and demands, and whether their legitimate Yes
rights and interests have been fully protected:
Whether the cash dividend policy is adjusted or changed, and
whether the conditions and procedures are compliant and Yes
transparent:
During the reporting period, the Company made a profit and the profit available to shareholders of the parent
company was positive, but no cash dividend distribution plan was put forward.
□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
□ Applicable √ Not applicable
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
None
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
First, continuously improve the management system. Comprehensively sort out and improve the relevant
systems of internal control, risk and compliance management, and effectively improve the effectiveness of the
internal control system. Second, carry out special actions for risk prevention and control. Conduct internal risk
business investigation, comprehensively rectify the problems found, and form a closed loop. Third, continuously
promote the construction of the Company's comprehensive risk management system. Revise the Company's
comprehensive risk management measures, strengthen the daily monitoring of risk management, and formulate and
implement the Company's special action plan for comprehensive risk prevention and control in 2021. Fourth,
strengthen the daily control of key areas. Strengthen the implementation of the system and process of pre-check,
in-process monitoring and post-evaluation, strengthen risk early warning and dynamic monitoring, conduct daily
monitoring on the changes of risk indicators and risk management and control every month, and formulate targeted
risk response measures to prevent risks from expanding from "points" to "areas" and avoid major risks.
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
2.Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
Problems
Integration Measures taken Subsequent
Company name Integration plan encountered in Solution progress
progress for solution planned solution
integration
None None None None None None None
XIV.Internal control self-evaluation report or internal control audit report
1.Self-evaluation report on internal control
Disclosure date of appraisal report on
April 30,2022
internal control
Disclosure index of appraisal report on
Juchao Website:（http://www.cninfo.com.cn），Announcement No.2022-035
internal control
Proportion of total unit assets covered by
appraisal in the total assets of the
100.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
100.00%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
General defects: ① Minor financial loss; Indicator 1: General defects in
② Minor misstatement or omission of company’s daily operation. It’s almost
statement in terms of financial statement; ③ impossible that some specific business
Minor damage of reputation caused by its fails to operate normally. Other business
negative influence in some regions. Serious activities and achievement of business
defects: ① Bring some financial loss to goals will not be affected. Serious
company; ② Cause moderate misstatement defects: It’s reasonably possible that
Qualitative standard
or omission of statement in terms of normal operations of some business may
financial statement; ③ Serious damage of be influenced but it will not affect the
reputation caused by its comparatively sustainable operation of our company.
large-scale influence in some regions. Significant defects: it’s reasonably
Significant defects: ① Bring significant possible that operation capacity of some
financial loss to company; ② Significant business may be lost and it will endanger
misstatement or omission of statement in the company’s sustainable operation.
63
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
terms of financial statement; ③ The Indicator 2: Financial loss. General
significantly negative influence has attracted defects: It’s almost impossible that minor
large-scale attention by the public and financial losses may be led to company.
unrecoverable losses have been brought to Serious defects: It’s reasonably possible
company. that moderate financial losses may be led
to company. Significant defects: It’s
possible that significant financial losses
may be led to company. Indicator 3:
Reputation of company. General defects:
It’s almost impossible that the negative
information popular in some regions will
be caused, which may further affect
company’s reputation. Serious defects:
It’s reasonably possible that the negative
information popular in some regions will
be caused, which may lead moderate
influence to company’s reputation.
Significant defects: It’s reasonably
possible that the negative information
popular in some regions will be caused,
which may lead significant influence to
company’s reputation.
Indicator: The proportion of misstatement in Indicator: The proportion of financial
the overall assets. General defects: It’s losses in the overall assets. General
almost impossible that the amount of defects: It’s almost impossible that the
misstatement accounting for 0.05% of the amount of financial losses accounting for
overall assets or less will occur. Serious 0.05% of overall assets or less will occur.
defects: It’s reasonably impossible that the Serious defects: It’s reasonably possible
Quantitative criteria amount of misstatement accounting 0.05% to that the amount of financial losses
1% of the overall assets will occur. accounting for 0.05% to 1% of the
Significant defects: It’s reasonably possible overall assets will occur. Significant
that the amount of misstatement accounting defects: It’s reasonably possible that the
for 1% of the overall assets or more will amount of financial losses accounting for
occur. 1% of the overall assets or more will
occur.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
64
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Number of important defects in non
0
financial reporting（a）
2. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
We acknowledge that Chongqing Jianshe Vehicle System Co., Ltd. has been conducting effective internal control in all material
aspects complying with “Fundamental Rules of Enterprise Internal Control” .On December 31,2021.
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
April 30,2022
internal control (full-text)
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn），Announcement No.2022-045
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant defect
No
in non-financial report
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XV. Rectification of self-examination problems in special governance actions of listed companies
According to the Notice on Well Ensuring the Special Self-examination of Listed Company Governance (YZJF
[2020] No.367) issued by Chongqing Supervision Bureau of China Securities Regulatory Commission, Contrasting
with the "Special Self-Inspection List of Listed Company Governance" issued by the China Securities Regulatory
Commission's government affairs service platform, the Company adopts the principle of strict and precise
self-inspection to carry out self-inspection one by one. Thereinto,for the Company's unrecovered losses reached
one-third of the total paid-in share capital and whether to hold an extraordinary general meeting of shareholders,
the measures taken by the Company are described below:
When the Company went public in 1995, the paid-in share capital was 470 million yuan. After the 4:1 share
drawing back was implemented in 2013, the paid-in share capital was changed to 119 million yuan.
From the end of the 1990s to the beginning of this century, the Company's original main motorcycle business
was impacted by the sharp decline in the domestic motorcycle industry, and the Company's performance suffered
losses for many years. After the Company's first unrecovered loss exceeded one-third of the total paid-in share
capital at the end of 1998, the Company had accumulated a relatively high undistributed profit (-1,056,046,000
65
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
yuan) by the end of 2021, and the unrecovered loss had always exceeded one-third of the total paid-in share
capital (RMB 470 million or RMB 119 million). In response to this situation, after the Company's audit annually
confirmed the amount of unrecovered losses, the board of directors of the Company informed shareholders of the
amount of unrecovered losses at each annual general meeting, and meanwhile formulated a medium and long-term
development and annual business plan to promote the Company's main business, and since 1998, it had promoted
the implementation of the following projects to make up for losses and improve the quality of the Company:
1. In 2003, the Company replaced the controlling shareholder's high-quality vehicle air-conditioning assets
and business with accounts receivable with a long age, and introduced new business to adjust the industrial
structure and improve the Company's asset quality and profitability. (For details, please refer to Announcement
No.: 2004-001 dated December 31, 2003)
2. In 2004, the Company purchased the equity of the motorcycle joint venture between the controlling
shareholder and Japan Yamaha with cash and some accounts receivable with a relatively long age, for enhancing
the core competitiveness of motorcycles and expand the business scale. (For details, please refer to Announcement
No.: 2004-034 dated December 29, 2004)
3. In 2007, relocated to other places to expand the production scale of motorcycle and vehicle
air-conditioning compressors and improve the experimental design capabilities. (For details, please refer to
Announcement No.: 2008-023 dated August 4, 2008)
4. In 2013, the transfer of idle assets was implemented to revitalize the stock assets. (For details, please refer
to Announcement No.: 2013-079 dated November 30, 2013)
5. In 2015, implemented the major asset restructuring and divested the loss-making motorcycle assets and
businesses, vigorously developed the automotive air-conditioning compressor business, and realized industrial
structure adjustment. (For details, please refer to Announcement No.: 2015-082 dated October 29, 2015)
6. In 2017, the Company established a joint venture with Hanon South Korea to build the Hanon joint
venture to promote the development of the Company's automotive air-conditioning compressor industry from the
mid-low-end market to the mid-to-high-end market. In 2019, the acquisition of the equity of Construction Hanon
held by Construction electromechanical further strengthened the Company's expansion in the new energy field of
automotive air-conditioning compressors. (For details, please refer to Announcement No.: 2017-064 and 2019-015
dated October 12, 2017 and April 1,2019)
7. In 2018, the Company further divested its motorcycle business and transferred its 51% stake in Shanghai
Jianshe to promote the industrial restructuring. (For details, please refer to Announcement No.: 2018-037 dated
June 21, 2018)
8. In 2020, purchased the 50% equity of Pingshan Taikai held by Japan side to promote the industrial
integration. (For details, please refer to Announcement No.: 2020-031 dated April 28, 2020)
66
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
9. In 2021, publicly listed and transferred the plant and land assets to revitalize idle assets and improve the
asset operation efficiency. The funds obtained was used to repay some debts and to strengthen the Company's
manufacturing capacity building and R&D capacity building. (For details, please refer to Announcement No.:
2021-054 dated October 11, 2021)
10. In 2021, the Company formulated the "14th Five-Year Plan", established the vision of "building a
first-class scientific and technological innovation enterprise with international competitiveness", and formulated
the medium and long-term goal of upgrading to automotive air conditioning systems and electric vehicle thermal
management products. (For details, please refer to Announcement No.: 2021-014 dated April 30, 2021)
The above matters had all been submitted to the extraordinary general meeting and the annual general
meeting for consideration and approval at then.
Through this self-examination, the Company's precise and standardized operation level has been further
promoted. there is no significant difference between the actual situation of corporate governance and the normative
documents on corporate governance of listed companies issued by China Securities Regulatory Commission.
67
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
√ Yes □No
Main
Emission Emission Implemente Verified
Company or pollutant Total Excessive
Emission Emission port concentratio d pollutant total
subsidiary and specific emission emission
way port number distribution n emission emission(To
name pollutant condition
condition standards ns)
name
Indirect Simplified Simplified No
COD：
discharge: it managemen managemen
152mg/L
Main is t of t of
pollutants discharged petroleum： pollutant pollutant
of into 1.33mg/L discharge discharge
wastewater: Zhongliangs ammonia Grade III permits, no permits, no
COD, han sewage nitrogen： Standard of total total
Total
ammonia treatment 27.4mg/L the amount amount
Vehicle air wastewater
nitrogen, plant after 1 total Integrated required required
conditioner discharge
total reaching the phosphorus Wastewater
outlet
phosphorus, Grade III ：2.48mg/L Discharge
PH standard of PH： Standard
particular the 7.51-7.56
pollutants: Integrated total zinc：
total zinc Wastewater 0.01mg/L
Discharge
Standard
Outlet of Simplified Simplified No
phosphating managemen managemen
Waste gas: production t of t of
Main Direct line 1, pollutant pollutant
Limit value
pollutants: emission: outlet of discharge discharge
Nitrogen of main
nitrogen The phosphating permits, no permits, no
oxide： urban area
oxides, treatment production total total
20mg/m3 of the
Vehicle air particulate meets the line 2, amount amount
6 particulate Integrated
conditioner matter; Integrated outlet of tin required required
matter： Emission
characteristi Emission plating
12.1mg/m3 Standard of
c pollutants: Standard of production
Air
hydrogen Air line, surface
Pollutants
chloride, Pollutants treatment
xylene line, outlet
of shot
peening
68
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
workshop
and outlet
of PTFE
production
line
Main Indirect Total COD： Simplified Simplified No
pollutants discharge: it wastewater 148mg/L managemen managemen
of is discharge petroleum： t of t of
wastewater: discharged outlet 1.94mg/L pollutant pollutant
COD, into ammonia discharge discharge
ammonia Zhongliangs nitrogen： Grade III permits, no permits, no
nitrogen, han sewage 9.66mg/L Standard of total total
Chongqing total treatment the amount amount
total
Jianshe phosphorus, plant after 1 Integrated required required
phosphorus
Automobile PH reaching the Wastewater
：7.25mg/L
particular Grade III Discharge
PH：
pollutants: standard of Standard
7.6-7.89
Petroleum the
category Integrated
Wastewater
Discharge
Standard
Waste gas: 1 Exhaust gas Nitrogen Simplified Simplified No
Main Direct outlet oxide： managemen managemen
Limit value
pollutants: emission: ofmelting 56mg/m3 t of t of
of main
sO 2， The furnace particulate pollutant pollutant
urban area
nitrogen treatment matter： discharge discharge
Chongqing of the
oxides, meets the 6.5mg/m3 permits, no permits, no
Jianshe Integrated
particulate Integrated sO 2： total total
Automobile Emission
matter; Emission 20mg/m3 amount amount
Standard of
characteristi Standard of required required
Air
c Air
Pollutants
pollutants:N Pollutants
one
Main Direct 7.64mg/L Implement Implement
pollutants of discharge: it PH: registration registration
Grade I
Chongqing wastewater: reaches the 8.16-8.21; for filing, for filing,
standard of
Pingshan PH, COD, first-class COD:79; fill in the fill in the
Total waste Integrated
Taikai BOD5, standard of 1 BOD5: pollutant pollutant No
water outlet Wastewater
Carburetor suspended Integrated 16.4; discharge discharge
Discharge
Co., Ltd solids, Wastewater Suspended registration registration
Standard
petroleum, Discharge matter: 14; form, do not form, do not
animal and Standard Petroleum: need to need to
69
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
vegetable after 0.31 mg/L; apply for a apply for a
oils, treatment Animal and pollutant pollutant
ammonia and is vegetable discharge discharge
nitrogen. discharged oil: 0.54 permit, with permit, with
into mg/L; total amount total amount
Huangxi Ammonia not required not required
River. nitrogen:
7.64mg/L
Nitrogen
oxide: 3L,
particulate
matter:
Implement Implement
9.6mg/m3,
registration registration
sulfur
for filing, for filing,
dioxide: 3L;
Direct fill in the fill in the
Main The data Limits on
discharge: it pollutant pollutant
pollutants: with "L" Main Urban
Chongqing meets the discharge discharge
nitrogen Exhaust indicates Area in
Pingshan Integrated registration registration
oxides, port of die that the Comprehen
Taikai Atmospheri 1 form, do not form, do not No
sulfur casting concentratio sive
Carburetor c Discharge need to need to
dioxide and machine n of the Atmospheri
Co., Ltd Standard apply for a apply for a
particulate pollutant is c Emission
after pollutant pollutant
matter. lower than Standard
treatment discharge discharge
the method
permit, with permit, with
detection
total amount total amount
limit, and
not required not required
the
detection
limit is 3
mg/m3.
Prevention and control of pollution facilities construction and operation
Wastewater: The Company and its subsidiary vehicle air-conditioning company have respectively built a
wastewater treatment station. The wastewater station is operating steadily, equipment maintenance is carried out
regularly, and the treatment effect is good, and the discharge of pollutants from the total discharge outlet of the
wastewater has continued and steadily reached the standard.
Exhaust gas: the acid mist produced by phosphating, tinning and surface treatment is absorbed by the spray tower to
reach the standard. The exhaust gas at the outlet of the shot blasting workshop is washed and filtered with the
particle absorption device to reach the standard. The exhaust gas of the PTFE production line is equipped with
activated carbon adsorption + light Catalytic oxidation treatment to reach the standard. The melting furnace uses the
clean energy-natural gas, which reaches the standard at directly discharge. The pollution control facilities are
operating well and the operation records are complete.
Conditions of environmental impact assessment and other environmental protection administrative licensing of
construction projects
70
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Three synchronizations for construction projects shall be conducted as required to obtain acceptance approval, and
pollution discharge permits shall be applied in accordance with regulations.
Emergency plan for emergency environmental incidents
In order to establish a sound emergency response mechanism for environmental pollution incidents, improve the
Company’s ability to respond to sudden environmental pollution incidents involving public crises, prevent
environmental emergencies from polluting the public environment (atmosphere and water), maintain social stability,
protect the life, health and property safety of enterprises and the surrounding public, protect the environment, and to
promote the comprehensive, coordinated and sustainable development of society, the Company and its
wholly-owned subsidiary vehicle air-conditioning company have prepared the "Emergency Plan for Emergent
Environmental Incidents", which has been reviewed and approved by experts and thus it’s been implemented.
Environmental self-monitoring program
The Environmental Protection Administration Department does not require the Company to carry out
self-monitoring, and entrusts the qualified Chongqing Yujiu Environmental Protection Industry Co., Ltd. to monitor
the wastewater, organized waste gas, unorganized waste gas and noise discharged by the Company and its
wholly-owned subsidiary Vehicle Air Conditioning Company on a yearly basis; Every year, Chongqing Falan
Testing Technology Co., Ltd., a qualified company, is entrusted to monitor the wastewater, organized waste gas and
noise discharged by the wholly-owned subsidiary Pingshan Taikai Company.
According to the monitoring results shown in the Monitoring Report (YJ (J) Zi [2022] No. WT572) and (YJ (J) Zi
[2022] No. WT571) issued on March 31, 2022, and the Monitoring Report (FL (J) Zi [2021] No. WT919) issued on
December 17, 2021, the emissions of wastewater, organized waste gas, unorganized waste gas and noise produced
by the Company and its wholly-owned subsidiaries, namely Vehicle Air Conditioning Company and Pingshan
Taikai Company, all meet the relevant emission standards.
Administrative penalties for environmental problems during the reporting period
Impact on the
Company's
Company or Reason of Violation of production and
Punishment result rectification
subsidiary name punishment regulations operation of listed
measures
companies
Chongqing Jianshe No violation and
Not applicable Not applicable Not applicable Not applicable
Automobile punishment
Vehicle air No violation and
Not applicable Not applicable Not applicable Not applicable
conditioner punishment
Chongqing Pingshan
No violation and
Taikai Carburetor Not applicable Not applicable Not applicable Not applicable
punishment
Co., Ltd
Other environmental information that should be disclosed
For environmental disclosure information, please refer to the Company's extranet http://www.jianshe.com.cn.
Measures and effects taken to reduce its carbon emissions during the reporting period
√ Applicable □ Not applicable
First, vigorously develop the thermal management industry of new energy vehicles, and realize large-scale market
sales of new energy electric compressor products. Second, vigorously develop the green low-carbon parts industry,
adapt to the requirements of emission upgrading, and actively develop and cultivate the low-carbon competitiveness
71
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
of new products. Third, strengthen the green design of products, implement the green design through the whole life
cycle of products, strengthen the tracking of carbon footprint of products, select green low-carbon materials and
green low-carbon suppliers, and adopt modular and detachable design, and green recycling packaging. Fourth,
strengthen the low-carbon manufacturing of products, carry out low-carbon technological reform, integrate or
simplify processes, tap potential opportunities for carbon reduction, and carry out upgrading of equipment in terms
of information, automation, digitalization and intelligence. Fifth, adjust the energy consumption structure,
continuously increase the proportion of electric energy use through the electrification transformation of equipment,
promote the transformation of equipment and facilities and process optimization, and reduce carbon dioxide
emissions per unit output. Sixth, scientifically arrange production plans, carry out energy conservation monitoring
and energy design, and take energy evaluation as one of KPI indicators for control.
Other Environmental Related Information
See the foregoing for details.
II. Social responsibilities
(1) Protection of shareholders’ equity
The company always insists on fair treatment to all investors, protects the legitimate rights and interests of
shareholders, especially small and medium shareholders, and actively creates conditions to attract small and
medium shareholders to participate in major decisions of the company. During the reporting period, the Board of
Directors convened 3 general meetings of shareholders by providing on-site voting and online voting, and the
shares held by shareholders participating in voting accounted for more than 74.46% of the total shares of the
company.
The Company strictly follows the principles of information disclosure and publishes regular reports and
temporary announcements in a true, accurate, complete and timely manner. There is no selective information
disclosure and private disclosure or disclosure of undisclosed material information. Also, the Company seriously
replies or receives investors’ calls and visits and maintains good management of investor relations.
(II) Protection of employee rights and interests
The Company respects and safeguards employees' rights and interests, and is committed to promoting
employees' all-round development, realizing the common promotion of employees' personal value and enterprise
value, and striving to benefit the majority of employees from the achievements of enterprise reform and
development.
First, adhere to the democratic management system. The Company set up employee directors and employee
supervisors to participate in the Company's decision-making and supervision, held 3 employee representative
symposiums, extensively listened to employees' opinions and suggestions on the Company's development, and
implemented or replied to 85 items one by one. Second, continue to make factory affairs public. The Company made
use of the newspaper of Jianshe Shares and OA collaborative office platform to disclose the matters that employees
should know in a timely manner, and disclosed 160 major matters involving the vital interests of employees
throughout the year. Third, provide legal protection for employees. The Company signed various special contracts
with employees on schedule, and signed one special collective contract for wages this year. Fourth, pay attention to
the basic guarantee for employees. In the whole year, the Company consoled 59 employees with difficulties and
illness, and distributed RMB 20,200 of solatium; It carried out the "Golden Autumn Student Aid Activity" and
provided RMB 11,000 grants for 22 employees' children for schooling; It purchased 721 mutual insurance for major
diseases for employees, with an insurance premium of RMB 21,600. Fifth, care for employees' health. During the
72
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
pandemic, the Company strengthened prevention and control propaganda and daily disinfection in the workplace,
provided workers with masks and other protective products totaling RMB 70,000 on time, and organized 2,582
vaccinations for employees, with a vaccination rate of 100%; It strengthened occupational health management,
carried out emergency rescue knowledge training and occupational health publicity, and regularly carried out
occupational hazard factors detection in workplaces. It organized 489 workers exposed to harm to take pre-job,
on-the-job and off-the-job occupational health examination, distribute cool drinks and heatstroke prevention drugs,
and paid a total of RMB 152,500. Sixth, pay attention to employee growth and talent cultivation. The Company
organized 186 training sessions throughout the year, with a total of 5,388 person-times, and a total class hour of
35,924. It strengthened the training and use of young cadres, and its proportion of middle-aged and post-80s cadres
in 2021 increased by 6.3%.
(III) Protection of rights and interests of suppliers, customers and consumers
First, adhere to fairness, justice and good faith in market transactions, strictly abide by all laws, regulations,
regulatory provisions and international rules, adhere to equal consultation, achieve mutual benefit and win-win,
strictly abide by contract terms, fulfill transaction promises and fulfill contractual obligations. Promote the
informatization of procurement management, deepen the use of the electronic procurement platform of
Norincogroup-eBuy, and fully realize the openness, centralization and electronization of tendering procurement.
Second, improve and upgrade the product quality, adhere to the value orientation of "Quality First", vigorously
carry forward the "Artisan Spirit" and continue to pursue quality excellence. In 2021, the Company vigorously
promoted the construction of "1+N" quality system, successfully passed the review of IATF16949 system and
Peugeot QSB+ system, and obtained the license of Changan QCA2.0 system supplier. It continuously carries out
"quality improvement activities", with 13 special improvement projects and 39 improvement measures achieving
remarkable results, including zero-kilometer PPM and three-guarantee PPM decreasing by 28.3% and 24.1%
respectively.
(IV) Environmental protection and sustainable development
With green development as its goal, the Company establishes employees' awareness of environmental
protection, actively fulfills their environmental responsibility, practices the concept of low-carbon life, strictly
abides by the relevant laws and regulations of the state on environmental protection, sets up environmental
protection management institutions, establishes an ecological environment risk prevention and control system, and
continuously strengthens the capacity building of emergency monitoring, emergency response and risk prevention
and control. It strictly controls the operation of wastewater and waste gas treatment facilities, implements fine
management of hazardous waste, and the discharge of wastewater, organized waste gas and unorganized waste gas
all reaches the standard. It optimizes the continuous production process, replaces the nickel-containing phosphating
solution with nickel-free phosphating solution, and realized zero emission of Class I pollutants. In 2021, the
Company's subsidiary, Vehicle Air Conditioning Company, was included in the first batch of solid waste
management pilot units at the district level and the "Five All Four Standards" environmental standardization
management pilot units. The Company and Vehicle Air Conditioning Company were awarded the title of 2020
district-level and municipal environmental integrity enterprise respectively.
(V) Public relations and social welfare undertakings
In 2021, the Company actively participated in the poverty alleviation activities of unsalable agricultural and sideline
products consumption in Yanshan County, Yunnan Province, and purchased unsalable agricultural and sideline
products totaling RMB 34,200. It actively promoted employment and poverty alleviation. In combination with the
annual recruitment plan, the Company actively participated in activities such as school recruitment organized by
73
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
China South Industries Group and Zhilian Recruitment Platform. It participated in 4 on-site and online
double-election meetings, received more than 200 resumes, interviewed more than 30 candidates by means such as
We Chat video, and admitted 4. In response to the call of China South Industries Group for young cadres to
participate in training on secondment, it selected a designated assistant cadre to serve as the subprefect in Yanshan
County, Yunnan Province, for a period of two years.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
For details, please refer to "Public Relations and Social Welfare" in "II. Social Responsibility" in this section.
74
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
1.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
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of
the Company
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
□ Applicable √ Not applicable
II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the reporting period.
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board
□ Applicable √ Not applicable
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
□ Applicable √ Not applicable
No such cases in the reporting period.
VII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□ Applicable √ Not applicable
75
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
No such cases in the reporting period.
VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Domestic CPA Zhongxingcai Guanghua Certified public Accountants LLP.
Reward for domestic CPA (RMB '0,000) 45
Successive years the domestic CPA has been providing service to
5 years
the Company
Name of CPAs from the domestic CPA firm Fan Rui, Wang Yongfeng
Continuous life of auditing service for domestic accounting firm 5 years, 1 year
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
√Applicable □Not applicable
1.The Company paid RMB 150,000 to Zhongxingcai Guanghua Certified public Accountants LLP for its internal
auditing service of one year.’
IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
No such cases in the reporting period.
XI. Matters of Important Lawsuit and Arbitration
√ Applicable □ Not applicable
Involved Index to
Decisions and Execution of Disclosure
General information amount Provision Progress disclosed
effects decisions date
(RMB '0,000) information
Chongqing See details in
HYOSOW have the
failed to pay Vehicle company’s
In 2020, 947
Air Conditioning announcemen
compressors
Company, a t published
The Company has have been
full-owned The trial August on securities
1,232.5 No fully accrued bad recovered, and
subsidiary of the ends 16,2019 times,
debts in 2018. the case is still
Company for the air Hongkong
being executed.
conditioner Commercial
compressors. The daily and
Vehicle Air http//www.cn
Conditioning info.com.cn
76
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Company filed a (Announcem
lawsuit with ent
Chongqing Yubei No.:2019-070
District People's )
Court in November
2018, who held a
hearing on July 11,
2019. The Company
received the "Civil
Judgment of
Chongqing Yubei
District People's
Court" on August 6,
2019 ((2018) Y0112
MC, No. 24010),
where the "General
Rules for Purchase
of Parts and
Materials" signed by
the Company and
Chongqing
HYOSOW was
cancelled.
Chongqing
HYOSOW returned
4,017 sets of goods
to the Vehicle Air
Conditioning
Company, and paid
12,325,044.85 yuan
and loss of capital
occupation.
The Company’s Chongqing
wholly-owned Court filed
subsidiary the case and
Automotive Air transferred
Conditioning it to Suzhou www.cninfo.
The trial will be
Company sued Ran Intermediat April com.cn.Anno
100 No held on April 8, Not judged
Ping, Luo Fangqing, e People's 28,2020 uncement
2021.
Zhang Ye, Court due to No.:2020-024
Changzhou Kang jurisdiction
Purui Automotive al issues.
Air Conditioning Suzhou
Co., Ltd, Chongqing Intermediat
77
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Yuxian Sanji Auto e People's
Parts Co., Ltd, and Court Case
Chongqing No. (2021)
Dongdian S 05 MC
Refrigeration No.305;
Equipment in the Four
Fifth Intermediate hearings
People’s Court of have been
Chongqing completed,
Municipality over and the
the case of court is
infringement of currently
technical secrets, conducting
which had been supplement
transferred to the ary
jurisdiction of the appraisal.
Suzhou Intermediate
People's Court.
The Company’s
wholly-owned
subsidiary-
Automotive Air
Conditioning
Company-sued in
the People’s Court
of Xiangyang
High-tech Zone for
a dispute over the
In March 2021,
sale and purchase
it applied for
contract, demanding Min Chu The Company has www.cninfo.
compulsory
that Hubei Meiyang No. fully accrued bad April com.cn.Anno
154.32 No execution,，260
Automobile 3234-(2019 debts of 1.4088 30,2021 uncement
compressors
Industry Co., Ltd ) E 0691 million in 2020 No.:2021-017
have been
pay 1,408,800 yuan
recovered,
in arrears and return
260 compressors.
According to the
civil judgment of
the Min Chu No.
3234-(2019) E 0691
on November 19,
2020, the defendant
shall pay the
air-conditioning
78
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
company 1,408,800
yuan for goods and
interest losses, and
return 260
compressors.
The Company filed
a lawsuit to the
court of Jiujiang
Economic and
Technological
Reached a
Development Zone
mediation
in Jiangxi Province
agreement Debt to the
due to the dispute 607,500 yuan
138.06 N (No. Company side
over the sales unpaid
2197Min confirmed
contract, demanding
Chu0491
Jiangxi Zhicheng
Gan(2021))
Automobile Co., Ltd
and its Jingdezhen
branch to pay
1,380,600 yuan for
the goods.
The Company filed
a lawsuit to the
People's Court of
Shunqing District,
Yet court
Nanchong City due
session not
to the dispute over
open （No.
the sales contract, 5.11 No Not judged Not judged
1111Chuan
requesting Sichuan
1302Minch
Tianxi Automotive
u(2022)）
Air Conditioning
Co., Ltd to pay
51,100 yuan for the
goods.
Liu Bi, a retiree of
Ruled to
the company, sued
reject the The plaintiff has
the Company for The plaintiff has
claim (No. appealed, yetthe
compensation of 18.91 No appealed, yetthe
28344Min case is not
189,100 yuan due to case is not closed.
Chu0113Yu closed.
a work-related
(2021))
injury dispute.
The Company sued Min Chu The Company has The application April www.cninfo.
139.87 No
in the Ba’nan No. 4664 fully accrued bad for enforcement 30,2021 com.cn.Anno
79
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
District People’s -(2020) Yu debts of 1.4789 was applied in uncement
Court of Chongqing 0113 million in 2020. September No.:2021-017
City for a dispute Judgment, 2020, and no
over a lease contract Min Chu property has
and required the No. 4665- been executed
lessee Chongqing (2020) Yu yet. The case
Construction Lijue 0113 has been closed.
Industrial Co., Ltd Judgment,
to pay a lease fee Min Chu
with 5 cases totaling No. 4684
1,398,700 yuan. -(2020) Yu
According to the 0113
court’s judgment Judgment,
(mediation) in June
Min Chu
2020, the defendant
No. 4685
shall pay 981,800
-(2020) Yu
yuan.
0113
Judgment,
Min Chu
No. 4686
-(2020) Yu
0113
Judgment
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
No such cases in the reporting period.
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XIV. Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □ Not applicable
Whethe
r over
Principl Trading
the Market Index
Subjects e of Amount limit price of of
of the pricing of Ratio in approve Way of Date of
Related Relation Type of Price of similar informa
related the trade(R similar approve paymen disclosu
parties ship trade trade trade tion
transacti related MB trades d t re
availabl disclos
ons transacti '0,000) d(RMB e ure
ons limited
'0,000)
or not
(Y/N)
80
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
Hongko
Jianshe Controll ng
Purchas Fair
Mechanic ing Spare January Comme
e of Market 350 0 0.00% 350 No Cash 350
al and sharehol parts 19,2021 rcial
goods Price
Electric der daily
and
http//w
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(Annou
ncemen
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No.:202
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on
January
19,2021
See
details
in the
compan
Purchas
y’s
e of raw
announ
Under material Fair
Jianshe January cement
same s from Energy Market 156.72 156.72 0.27% 200 No Cash 156.72
Industrial 19,2021 publish
control the Price
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Related
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person
es
times,
Hongko
ng
81
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Comme
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daily
and
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(Annou
ncemen
t
No.:202
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on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
China
es
Changan Sell
Sell times,
Automobi products
spare Hongko
le Group Under and Fair
parts 15685.5 15,685. Bill+Ca 15685.5 January ng
Co., Ltd. same commo Market 23.63% 19,000 No
and 5 55 sh 5 19,2021 Comme
And its control dities to Price
finished rcial
affiliated related
product daily
Enterprise persons
and
s
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(Annou
ncemen
t
No.:202
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on
82
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
Sell
Hongko
products
Jianshe ng
Under and Rental Fair
Mechanic January Comme
same commo warehou Market 0 0 350 No Cash 0
al and 19,2021 rcial
control dities to se Price
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and
persons
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ncemen
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No.:202
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on
January
19,2021
See
details
in the
Joint
compan
venture
y’s
of Spare Fair
Chongqin Sales of 1,194.4 January announ
controlli parts Market 1194.46 1.80% 1,100 Yes Cash 1194.46
g Jianya goods 6 19,2021 cement
ng sales Price
publish
sharehol
ed on
der
securiti
es
times,
83
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Hongko
ng
Comme
rcial
daily
and
http//w
ww.cni
nfo.co
m.cn
(Annou
ncemen
t
No.:202
1-003.
on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
Joint
es
venture
times,
of Spare Fair
Zhuzhou Sales of Hongko
controlli parts Market 39.35 39.35 0.06% 0 Yes Cash 39.35
Jianya goods ng
ng sales Price
Comme
sharehol
rcial
der
daily
and
http//w
ww.cni
nfo.co
m.cn
(Annou
ncemen
t
No.:202
84
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
1-003.
on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
Joint
Hongko
venture
South Air ng
of Spare Fair
Internatio Sales of January Comme
controlli parts Market 14.40 14.4 0.02% 50 No Cash 14.40
nal goods 19,2021 rcial
ng sales Price
daily
sharehol
and
der
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nfo.co
m.cn
(Annou
ncemen
t
No.:202
1-003.
on
January
19,2021
See
details
in the
compan
Spare Fair
Jianshe Joint Sales of January y’s
part Market 482.95 482.95 0.73% 600 No Cash 482.95
HANON venture goods 19,2021 announ
sales Price
cement
publish
ed on
securiti
85
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
es
times,
Hongko
ng
Comme
rcial
daily
and
http//w
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(Annou
ncemen
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No.:202
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on
January
19,2021
Under Fair
Jianshe Sales of
same Energy Market 867.91 867.91 53.54% 0 Yes Cash 867.91
Industry goods
control Price
Sell
products
Jianshe
Under and Fair
Mechanic
same commo Energy Market 20.77 20.77 1.28% 0 Yes Cash 20.77
al and
control dities to Price
Electric
related
persons
See
details
in the
compan
y’s
Under Fair announ
Jianshe Sales of January
same Energy Market 42.79 42.79 2.64% 50 No Cash 42.79 cement
Industry goods 19,2021
control Price publish
ed on
securiti
es
times,
Hongko
86
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
ng
Comme
rcial
daily
and
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m.cn
(Annou
ncemen
t
No.:202
1-003.
on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
Under Fair Hongko
Jianshe January
same Services Test Market 69.94 69.94 58.28% 100 No Cash 69.94 ng
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control Price Comme
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daily
and
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nfo.co
m.cn
(Annou
ncemen
t
No.:202
1-003.
87
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
Joint
Hongko
venture
ng
of Fair
Chongqin January Comme
controlli Services Test Market 0 0 10 No Cash 0
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daily
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and
der
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ncemen
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No.:202
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January
19,2021
See
details
Joint in the
Minsheng
venture compan
Logistrics
of Fair y’s
And its January
controlli Services Services Market 373.55 373.55 0.65% 100 Yes Cash 373.55 announ
affiliated 19,2021
ng Price cement
Enterprise
sharehol publish
s
der ed on
securiti
es
88
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
times,
Hongko
ng
Comme
rcial
daily
and
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(Annou
ncemen
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January
19,2021
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details
in the
compan
y’s
announ
cement
publish
Southwes
ed on
t
securiti
Ordnance
es
Chongqin
Under Fair times,
g Institute January
same Services Services Market 173.66 173.66 0.30% 240 No Cash 173.66 Hongko
of 19,2021
control Price ng
Environm
Comme
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Protection
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Co., Ltd.
and
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m.cn
(Annou
ncemen
t
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Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
No.:202
1-003.
on
January
19,2021
See
details
in the
compan
y’s
announ
cement
publish
ed on
securiti
es
times,
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Changan
ng
Auto And Under Accept Fair
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19,170.
Total -- -- -- 22,400 -- -- -- -- --
52
Details of any sales return of a large
None
amount
Give the actual situation in the report The estimated total amount of "purchasing raw materials from related parties" is RMB 5.5
period where a forecast had been million, and the actual amount incurred is RMB 1.5672 million.
made for the total amounts of routine The estimated total amount of "selling products and commodities to related parties" is RMB
related-party transactions by type to 211.5 million, and the actual amount incurred is RMB 183.4818 million.
90
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
occur in the current period(if any) The estimated total amount of "accepting labor services provided by related parties" is
RMB 7 million, and the actual amount incurred is RMB 6.6562 million.
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
Pricing Book Evaluatio Settlemen
Type of Content
principle value of n value of Transfer t method Transacti
Related related of related
Related of related transferre transferre price of related on profit Disclosur Disclosur
associatio party party
party party d assets d assets (RMB party and loss e date e index
n transactio transactio
transactio (RMB (RMB '0,000) transactio (RMB
n n
ns '0,000) '0,000) ns '0,000)
See
details in
the
Publicly company’
listed on s
Chongqin announce
g United ment
Property published
Rights on
Exchange securities
Collect
to transfer times,
the
the Hongkon
transferee
Be Company' g
Selling with the
controlled s 106 Commerc
Jianshe assets to evaluatio August
by the workshop 10,722.77 16,986.26 15,288 Cash 0 ial daily
Industrial related n value as 26,2021
same s, the and
parties the
party correspon http//ww
transfer
ding land w.cninfo.
listing
use right com.cn .o
price
and n August
related 26,2021,
ancillary October
machiner 9, 2021,
y and October
equipmen 26, 2021,
t Decembe
r 5,
2021 ,Jan
uary
91
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
10,2022,
February
19, 2022
and
February
24, 2022.
This asset transfer project was completed after three rounds of listing in Chongqing
United Property Rights Exchange from November 2, 2021 to February 9, 2022. In the
Reasons for large difference between
first two rounds of listing, because the transferee was not collected, the listing price was
transfer price and book value or evaluation
adjusted by the Board of Directors, and the reserve price of the transfer was adjusted to
value (if any)
90% of the assessed value of the transferred assets. See the aforementioned disclosure
index for details.
After the transfer of idle assets, there is no impact on the Company's current production
Impact on the Company's operating results and operation. After the transaction is completed, the transaction costs of real estate,
and financial status land, etc. will be deducted from the transaction price, which after deduction will be the
asset disposal income.
Performance realization during the
reporting period, if performance agreement Not applicable
is involved in related transaction
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4.Contact of related credit and debt
√ Applicable □Not applicable
Whether there is non operating related debt and debt
□Yes√ No
Not-existent
5. Transactions with related finance company, especially one that is controlled by the Company
√ Applicable □Not applicable
Deposit business
Related party Relationship Maximum Deposit interest Beginning The amount of this period
daily deposit rate range balance(RMB
Total amount is
Ending
limit(RMB '0,000) withdrawn for
Total deposit
balance(RMB
'0,000) amount (RMB this
'0,000)
'0,000) period(RMB
'0,000)
Military Be controlled
30,000 0.46%-1.95% 7,529.99 172,207.17 173,028.75 6,708.42
Equipment by the same
92
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Group Finance party
Company
Loan business
Related party Relationship Beginning The amount of this period
balance(RMB
Total
'0,000) Total loan
Loan repayment Ending
Loant interest amount of the
limit(RMB amount of the balance(RMB
rate range current
'0,000) current '0,000)
period(RMB
period(RMB
'0,000)
'0,000)
Military
Be controlled
Equipment
by the same 62,000 3.915%-4.35% 17,041 38,325 28,041 27,325
Group Finance
party
Company
Credit extension or other financial services
Related party Relationship Business type Total amount(RMB Actual amount
'0,000) incurred(RMB '0,000)
Military Equipment Be controlled by the same
Credit 62,000 38,325
Group Finance Company party
Military Equipment Be controlled by the same
Other 69,000 0
Group Finance Company party
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
XV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
93
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant Guarantees
√ Applicable □ Not applicable
In (RMB '0,000)
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Counter Complete for
Name of happening Actual
date/No. of Amount of Guarantee Guaranty -guarant Guarantee implemen associate
the (Date of mount of
the Guarantee type （If any） ee（If term tation d
Company signing guarantee
guaranteed any） or not parties
agreement)
amount (Yes or
no)
Guarantee of the company for its subsidiaries
Guarante
Relevant e
Date of
disclosure Counter Complete for
Name of happening Actual
date/No. of Amount of Guarantee Guaranty -guarant Guarantee implemen associate
the (Date of mount of
the Guarantee type （If any） ee（If term tation d
Company signing guarantee
guaranteed any） or not parties
agreement)
amount (Yes or
no)
Vehicle air April January Joint 12
1,771 1,771 Yes No
conditioner 28,2020 17,2020 liabilities months
Vehicle air April February Joint 12
5,000 5,000 Yes No
conditioner 28,2020 28,2020 liabilities months
Vehicle air April April Joint 12
2,500 2,500 Yes No
conditioner 28,2020 13,2020 liabilities months
Vehicle air April April Joint 12
1,000 1,000 Yes No
conditioner 28,2020 20,2020 liabilities months
Vehicle air April April Joint 12
2,501 2,501 Yes No
conditioner 28,2020 28,2020 liabilities months
Vehicle air April June Joint 12
3,000 3,000 Yes No
conditioner 28,2020 19,2020 liabilities months
Vehicle air
3,000 July 3,000 Joint Yes No
conditioner April 12
94
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
28,2020 29,2020 liabilities months
Vehicle air April July Joint
1,751 1,751 6 months Yes No
conditioner 28,2020 31,2020 liabilities
Vehicle air April August Joint 12
3,000 3,000 Yes No
conditioner 28,2020 11,2020 liabilities months
Vehicle air April August Joint 12
1,000 1,000 Yes No
conditioner 28,2020 27,2020 liabilities months
Vehicle air April September Joint
3,248 3,248 6 months Yes No
conditioner 28,2020 23,2020 liabilities
Vehicle air April October Joint
3,450 3,450 7 months Yes No
conditioner 28,2020 12,2020 liabilities
Vehicle air April October Joint
2,000 2,000 7 months Yes No
conditioner 28,2020 15,2020 liabilities
Vehicle air April October Joint
2,000 2,000 6 months Yes No
conditioner 28,2020 16,2020 liabilities
Vehicle air April October Joint
2,549 2,549 7months Yes No
conditioner 28,2020 19,2020 liabilities
Vehicle air April November Joint
2,000 2,000 6 months Yes No
conditioner 28,2020 3,2020 liabilities
Vehicle air April December Joint 12
5,579 5,579 Yes No
conditioner 28,2020 4,2020 liabilities months
Vehicle air January January Joint
1,750 1,750 6 months Yes No
conditioner 19,2021 11,2021 liabilities
Vehicle air January January Joint 11
1,750 1,750 Yes No
conditioner 19,2021 11,2021 liabilities months
Vehicle air January January Joint 12
1,771 1,771 Yes No
conditioner 19,2021 15,2021 liabilities months
Vehicle air January January Joint 10
2,501 2,501 Yes No
conditioner 19,2021 25,2021 liabilities months
Vehicle air January March Joint 12
5,000 5,000 No No
conditioner 19,2021 5,2021 liabilities months
Vehicle air January March Joint
3,248 3,248 6 months Yes No
conditioner 19,2021 18,2021 liabilities
Vehicle air January April Joint
2,000 2,000 6 months Yes No
conditioner 19,2021 22,2021 liabilities
Vehicle air January April Joint 12
2,000 2,000 No No
conditioner 19,2021 9,2021 liabilities months
Vehicle air January April Joint 12
2,549 2,549 No No
conditioner 19,2021 23,2021 liabilities months
95
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Vehicle air January May Joint 12
3,450 3,450 No No
conditioner 19,2021 13,2021 liabilities months
Vehicle air January June Joint 12
2,000 2,000 No No
conditioner 19,2021 11,2021 liabilities months
Vehicle air January July Joint
1,750 1,750 6 months No No
conditioner 19,2021 15,2021 liabilities
Vehicle air January September Joint 12
1,000 1,000 No No
conditioner 19,2021 17,2021 liabilities months
Vehicle air January December Joint
1,750 1,750 6 months No No
conditioner 19,2021 9,2021 liabilities
Vehicle air January December Joint
2,501 2,501 6 months No No
conditioner 19,2021 14,2021 liabilities
Total of guarantee to
Total of guarantee to
subsidiaries actually
subsidiaries approved in 61,000 35,020
occurred in the report
the report term (B1)
term (B2)
Total of balance of
Total of guarantee to guarantee actually
subsidiaries approved as 61,000 provided to the 23,771
of the report term (B3) subsidiaries as of end of
report term (B4)
Guarantee of the subsidiaries for its subsidiaries
Guarante
Relevant e
Date of
disclosure Counter Complete for
Name of happening Actual
date/No. of Amount of Guarantee Guaranty -guarant Guarantee implemen associate
the (Date of mount of
the Guarantee type （If any） ee（If term tation d
Company signing guarantee
guaranteed any） or not parties
agreement)
amount (Yes or
no)
The Company’s total guarantee(i.e.total of the first three main items)
Total amount of
Total guarantee quota approved
guarantee actually
in the reporting period 61,000 35,020
（A1+B1+C1） incurred in the reporting
period（A2+B2+C2）
Total balance of the
Total guarantee quota already
actual guarantee at the
approved at the end of the 61,000 23,771
end of the reporting
reporting period（A3+B3+C3）
period（A4+B4+C4）
The proportion of the total amount of actually
guarantee in the net assets of the Company (that is 159.21%
A4+B4+C4）%
96
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Including：
Amount of guarantees provided for shareholders,
0
the actual controller and their related parties (D)
Amount of debt guarantees provided directly or
indirectly for entities with a liability-to-asset ratio 23,771
over 70% (E)
Total amount of the three kinds of guarantees
35,020
above (D+E+F)
Explanations about joint and several liability for
None
repayment in respect of undue guarantee(if any)
Explanation about external guarantee violating
None
established procedure if any）
Description of the guarantee with complex method
(2) Illegal providing of external guarantees
□ Applicable √ Not applicable
No illegal providing of external guarantees in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
Not-existent
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Not-existent
4. Other significant contract
□ Applicable √ Not applicable
Not-existent
XVI. Explanation on other significant events
□ Applicable √ Not applicable
Not-existent
XVII. Significant event of subsidiary of the Company
□ Applicable √Not applicable
97
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
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 Capitaliza
tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
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
71.13% 0 0 0 0 0 71.13%
shares 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 RMB 0 0.00% 0 0 0 0 0 0 0.00%
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%
III. Total of capital shares 119,375,0 100.00% 0 0 0 0 0 119,375,0 100.00%
98
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
00 00
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; Hengsheng Sun Group Co., Ltd. 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
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable Not applicable
99
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total
The total number preferred shareh
Total
Total number of of preferred shar olders at the end
shareholders at
common eholders voting ri of the month
the end of the
shareholders at 7,150 7,083 ghts restored at p 0 from the date of 0
month from the
the end of the eriod-end(if disclosing the
date of disclosing
reporting period any)(See Notes annual report(if
the annual report
8) any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proportio Number of share
Number of Changes in Amount of Amount of
Shareholders Nature of n of pledged/frozen
shares held at reporting restricted un-restricted
shareholder shares State of
period -end period shares held shares held Amount
held（%） share
China Military
State-owned
Equipment Group 71.13% 84,906,250 0 84,906,250 0
legal person
Co., Ltd.
Domestic natural
Gu Zuocheng 1.89% 2,261,000 0 2,218,750 42,250
person
Anhui Hengsheng
Domestic
Investment
non-state-owned 1.47% 1,750,000 0 1,750,000 0
Development Co.,
legal person
Ltd.
Domestic natural
Xu Yuanhui 0.77% 913,999 136,110 0 913,999
person
Domestic natural
Liu Dan 0.74% 880,476 -37,775 0 880,476
person
Domestic natural
Chen Xinqiang 0.51% 612,400 0 0 612,400
person
CORE
PACIFIC-YAMAI
CHI Overseas Legal
0.46% 544,150 13,000 0 544,150
INTERNATIONA person
L (H.K.)
LIMITED
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
Domestic natural
Li Jianping 0.37% 436,300 1,800 0 436,300
person
100
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
Strategic investor or general legal
person becoming top-10 ordinary
Not applicable
shareholder due to rights issue (if
any)（See Note 3)
There isn’t any associated relationship between the sponsoring shareholder and the other
shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in
Related or acting-in-concert parties
accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign
among shareholders above
shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in
concert’.
Description of the above
shareholders in relation to
Not applicable
delegate/entrusted voting rights and
abstention from voting rights
Top 10 holders of unconditional shares
Amount of unconditional Category of shares
Name of the shareholder
shares held at end of period Category of shares Amount
Foreign shares placed in domestic
Xu Yuanhui 913,999 913,999
exchange
Foreign shares placed in domestic
Liu Dan 880,476 880,476
exchange
Foreign shares placed in domestic
Chen Xinqiang 612,400 612,400
exchange
CORE PACIFIC-YAMAICHI
Foreign shares placed in domestic
INTERNATIONAL (H.K.) 544,150 544,150
exchange
LIMITED
Foreign shares placed in domestic
Zhang Meilan 513,560 513,560
exchange
Foreign shares placed in domestic
Li Jianping 436,300 436,300
exchange
Foreign shares placed in domestic
Chen Houping 423,561 423,561
exchange
Foreign shares placed in domestic
Lv Gang 418,099 418,099
exchange
Foreign shares placed in domestic
Zhang Long 351,577 351,577
exchange
Foreign shares placed in domestic
Liu Guosheng 345,575 345,575
exchange
Action-in-concert among top 10 There is no affiliated relationship between the top ten non-restricted tradable shareholders and the
non-restricted current share controlling shareholder China Military Equipment Group Co., Ltd. nor do they belong to the
holders, top 10 non-restricted consistent actors stipulated in the Administrative Measures for the Acquisition of Listed
101
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
current share holders and top 10 Companies; it is unknown to the company whether there is an affiliated relationship between the
shareholders top ten non-restricted tradable shareholders as well as between the top ten non-restricted 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.
Top 10 ordinary shareholders
conducting securities margin Not applicable
trading (if any) (see note 4)
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.
2.Controlling shareholder
Nature of Controlling Shareholders: Central State-owned Holdings
Type of Controlling Shareholders: Legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
Investment, operation and
management of state-owned
assets: research and
development, production,
guarantee and service of
weapons and equipment;
Research and development,
manufacturing, sales and
comprehensive services of
vehicles, electrical
equipment, photoelectric
China Military Equipment
Xu Xianpng June 29,1999 91110000710924929L information and products
Group Co., Ltd.
and their equipment,
mechanical equipment,
engineering and
construction machinery,
chemical materials (except
hazardous chemicals), fire
fighting equipment,
medical and environmental
protection equipment, metal
and nonmetal materials and
their products.
Equity of other As of December 31, 2021, Shares held and controlled by other domestic and overseas listed
102
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
domestic/foreign listed companies directly or indirectly: 1.44.17% by Chongqing Changan Automobile Co., Ltd.( Stock
company with share code:000625); 2. 44.56 by Baoding Tianwei Baobian Electric Co., ltd(Stock code: 600550).;
controlling and share 3.41.03% by Jiangling Motors Corporation, Ltd（Stock code:000550）；4. 37.40% by Hunan Tianyan
participation by Machinery Co., Ltd(Stock code: 600698）；5. 51.42 by Haerbin Automobile Power Co., Ltd.；6.46.87
controlling shareholder in by Costar Group Co., Ltd.(Stock Code002189）；7. 55.61% by Yunnan Xiyi Industry Co., Ltd(Stock
reporting period code:002265）；8. 25.44% by Chongqing Minsheng Logistic Co., Ltd( Stock code:1292.HK）；
9.70.35% by Hubei Huangqiang High-Tech Co., Ltd.(Stock code688151）.
Change of holding shareholder
□ Applicable √ Not applicable
No such cases in the reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Central state owned Assets Management t
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
State-owned Assets Supervision
and administration Commission Not applicable Not applicable Not applicable
of the State Council
Situation of domestic and
Not applicable
abroad holding listed companies
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
103
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
□Applicable √Not applicable
6.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
104
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
105
Chongqing Jianshe Vehicle System Co., Ltd. 2021 Annual Report
IX. Corporate Bond
□ Applicable √Not applicable
106
Auditors' Report
Z.X.C.G.H.S.K.Zi [2022]No.302040
To all shareholders of Chongqing Jianshe Vehicle System Co., Ltd.：
Ⅰ. Audit opinion
We have audited the accompanying financial statements of Chongqing Jianshe Vehicle
System Co., Ltd. (hereinafter referred to as "Chongqing Jianshe"), which comprises
the consolidated balance sheet and the company’s balance sheet as on December 31,
2021, the consolidated Income Statement and the Company's Income Statement, the
consolidated statement of cash flows and the Company's statement of cash flows, the
consolidated statement of changes in owners' equity and the company's statement of
changes in owners' equity for the year then ended, and the notes to the financial
statements.
In our opinion, the financial statements of Chongqing Jianshe present fairly, in all
material respects, the company's and consolidated financial position as of 31
December 2021, and the company's and consolidated results of operations and cash
flows for the year then ended in accordance with Accounting Standards for Business
Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public
Accountants. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. In accordance with professional ethics for certified public accountants, we are
independent with Chongqing Jianshe and we have fulfilled our other ethical
responsibilities. We believe that the audit evidence we have obtained is sufficient and
107
appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are matters that we consider to be the most important in the audit of
the current financial statements based on our professional judgement. These matters
should be addressed against the background of an audit of the financial statements as
a whole and the formation of an audit opinion, and we do not express an opinion on
these matters separately. We have identified the following as key audit matters that
need to be communicated in the audit report.
Key Audit Matters：Income Confirmation
1.Item Description
Please refer to Note 26 of Annotation III. Important Accounting Policies and
Accounting Estimation of the Financial Statement and Note 33 of Annotation V.
Operating revenue and Operating costs for related information disclosed.
The operating income of Chongqing Jianshe in 2021 was 680 million Yuan, fell by
8.20%, compared with one year earlier was 741 million Yuan, which is an important
component of the consolidated income statement. Among them, the sales revenue of
Chongqing Jianshe Automobile A/C and accessories for 97.62% of the operating
income in 2021 and decreased slightly compared with 98.75% of the operating
income in 2020, which is divided into three categories according to customer groups:
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
108
department shall issue invoices to confirm the sales income.
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.
Customers - After-sales market. Sales personnel deliver the goods to the customer
according to the contract and customer demand. After arrival time node of the contract,
sales personnel issues a letter of notice according to the contract unit price and
shipment quantity, and the finance department issues invoices to confirm the sales
revenue.
Operating income is one of the key performance indicators of Chongqing Jianshe. The
revenue recognition type is various and complicated. Therefore, we identified the
operating income to key audit matters for the company.
2.Countermeasures of Audit
Our main countermeasures of audit for the income of the above key audit are as
follows:
(1) We selected big sales contracts, reviewing the relevant terms of the contract, and
interviewed the management; in the meantime, we analyzed the contract by using
"five-step" of new revenue standard, judged the composition of performance
obligations and the time point of control transfer, and then evaluated whether the sales
revenue recognition policy meet the requirements of the new revenue criteria.
(2) We conducted interviews with management and governance to assess the risk of
integrity and fraud.
(3) We understudied and tested the internal controls associated with income, and
determined it's reliable.
(4) Perform analytical procedures on revenue and cost, including: the analysis of
monthly income, cost and fluctuation of gross profit in current period, comparison
analysis of the main product’s current income, cost and gross profit with previous
period, to judge the rationality of sales revenue and gross profit rate changes.
109
(5) Execution of detail test, we have sampled the inventory receipt and sending
records, sales contracts, sales orders, sales invoices, shipping documents, bills of
current account and receipt document and other supporting documents, checked
receipt records, done external confirmation for final accounts receivable, and
confirmed the authenticity of sales revenue.
(6) For confirmed sales revenue of products as balance sheet date, we have checked
the delivered note of inventories, transport document, receiving reports of customer
and other documents, and audit integrality of sales revenue and so on.
(7) We checked the information of operating income presented in the financial
statements and notes.
Ⅳ. Other information
The Company’s management of Chongqing Jianche (hereinafter referred to as
“management”) is responsible for the other information. The other information
comprises all of the information included in the Company’s 2021 Annual Report other
than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information;
we are required to report that fact. We have nothing to report in this regard.
V. Responsibility of Management and Those Charged with Governance for the
Financial Statements
The management of the Company is responsible for the preparation and fair
presentation of these financial statements in accordance with Accounting Standards
110
for Business Enterprises to make them a fair presentation and designing,
implementing and maintaining internal control relevant to the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management of the Company is responsible
for assessing the Company’s ability to continue as a going concern, disclosing, if
applicable, matters related to going concern and using the going concern basis of
accounting unless the management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s
financial reporting process.
VI. CPA’s Responsibility for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements
as a whole are free of material misstatement resulting from fraud or error and to issue
an audit report containing an audit opinion. Reasonable assurance is a high level of
assurance, but there is no guarantee that audits performed in accordance with audit
standards can always be found when a material misstatement exists. Misstatements
may be the result of fraud or error, and misstatements are generally considered
material if they are reasonably expected to be misstated individually or collectively
that may affect the economic decisions made by the user of the financial statements
on the basis of the financial statements.
As part of an audit in accordance with auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
1.Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
111
2.Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.
3.Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
4.Conclude on the appropriateness of the management use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements, or if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
5.Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
6.Obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the Company to express an opinion on the
financial statements and bear all liability for the opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements of
the Current Period and are therefore the key audit matters. We describe these matters
112
in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Zhongxingcai Guanghua Certified CPA：
Public Accountants（LLP） （Engagement Partner）
CPA：
BeijingChina April 28,2022
113
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Consolidated Balance Sheet and The Company`s Balance Sheet
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd. Monetary Unit:RMB
Balance as at December 31,2021 Balance as at December 31,2020
Items Notes
Consolidation Parent company Consolidation Parent company
Current Assets —— —— —— ——
Cash and cash equivalents V. 1 91,678,523.19 2,146,167.36 159,343,241.47 1,039,038.26
Financial assets held for trading
Derivative financial assets
Notes receivable V. 2 2,220,000.00 66,548,530.50 11,600,000.00
Accounts receivable V. 3 149,333,285.64 3,152,475.45 221,386,452.90 2,189,335.14
Financing receivables V. 4 29,250,840.86 440,000.00
Advances to suppliers V. 5 7,228,480.93 2,465,664.66 8,539,316.15 5,477,412.18
Other receivables V. 6 1,431,664.33 1,153,592.45 1,253,612.91 934,239.22
Including: interest receivable
Dividends receivable
Inventories V. 7 206,719,605.79 2,084,284.76 169,145,986.78 1,645,305.96
Contract assets
Held-for-sale assets V. 8 104,982,996.11 104,982,996.11
Non-current assets maturing within one year
Other current assets V. 9 4,585,170.16 1,523,292.88 3,396,186.56 3,179.92
Total current assets 597,430,567.01 117,948,473.67 629,613,327.27 22,888,510.68
Non-current assets —— —— —— ——
Available for sale of financial assets
Held-to-maturity investments
Long-term receivable
9
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Long-term equity investments V.10 201,984,268.72 401,029,712.67 186,213,719.02 385,259,162.97
Other equity instrument investments
Other non-current financial assets V.11
Investment properties V.12 23,043,398.52 23,043,398.52
Fixes assets V.13 216,541,481.98 30,608,778.01 310,131,438.69 110,261,716.77
Construction in progress V.14 1,811,125.46 16,637.17 1,871,241.59 66,037.74
Production physical assets
Oil and gas assets
Right-of-use assets
Intangible assets V.15 13,580,639.04 27,384,056.97 14,171,538.97
Developemnt expenses
Goodwill
Long-term prepaid expenses V. 16 116,978.77 24,750.00
Deferred income tax assets V. 17 6,060,617.99 6,274,078.12
Other non-current assets V. 18 3,810,800.00 2,141,443.59
Total non-current assets 443,905,911.96 431,655,127.85 557,084,126.50 532,801,854.97
Total assets 1,041,336,478.97 549,603,601.52 1,186,697,453.77 555,690,365.65
Current Liabilities —— —— —— ——
Short-term loans V. 19 493,460,000.00 553,910,000.00
Trading financial liabilities
Derivative financial liabilities
Notes payable V. 20 160,670,000.00 110,020,000.00
Accounts payable V. 21 190,292,444.13 165,209,294.49 288,803,247.07 265,278,880.90
Advances from customers
Contract liabilities V. 22 2,868,604.98 159,843.70 1,479,711.62 248,849.01
Payroll payables V. 23 20,944,522.89 6,044,727.21 28,427,402.84 10,058,993.74
10
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Taxes payable V. 24 15,134,121.83 15,021,233.16 18,106,616.93 15,199,300.72
Other payables V. 25 6,766,954.83 355,521,343.12 10,260,888.23 231,990,706.48
Including: interest payable
Dividends payable
Held for sales liabilitie
Non-current liabilities maturing within one year
Other current liabilities V. 26 372,918.65 20,779.68 192,362.51 32,350.37
Total current liabilities 890,509,567.31 541,977,221.36 1,011,200,229.20 522,809,081.22
Non-current liabilities —— ——
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liability
Long-term payables
Long-term Payroll Payable
Estimated liabilities
Deferred income
Deferred income tax liabilities V. 17 1,523,318.82 1,908,551.51
Other non-current liabilities
Total non-current liabilities 1,523,318.82 1,908,551.51
Total liabilities 892,032,886.13 541,977,221.36 1,013,108,780.71 522,809,081.22
OWNERS' EQUITY —— ——
Share Capital V. 27 119,375,000.00 119,375,000.00 119,375,000.00 119,375,000.00
Other equity instruments
Including: preferred shares
11
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Perpetual bond
Capital reserve V. 28 958,565,294.29 958,565,294.29 958,565,294.29 958,565,294.29
Less: treasury stock
Other comprehensive income V. 29 9,800.00 9,800.00 9,800.00 9,800.00
Special reserve V. 30 1,713,882.50 612,361.09
Surplus reserves V. 31 125,686,000.00 125,686,000.00 125,686,000.00 125,686,000.00
Retained earnings V. 32 -1,056,046,383.95 -1,196,622,075.22 -1,030,047,421.23 -1,170,754,809.86
Total equity attributable to owners' of the parent company 149,303,592.84 7,626,380.16 173,588,673.06 32,881,284.43
Minority equity
TOTAL OWNERS' EQUITY 149,303,592.84 7,626,380.16 173,588,673.06 32,881,284.43
Total liabilities and owners’ equity 1,041,336,478.97 549,603,601.52 1,186,697,453.77 555,690,365.65
Current Liabilities —— —— —— ——
Short-term loans V. 19 493,460,000.00 553,910,000.00
Trading financial liabilities
Derivative financial liabilities
Notes payable V. 20 160,670,000.00 110,020,000.00
Accounts payable V. 21 190,292,444.13 165,209,294.49 288,803,247.07 265,278,880.90
Advances from customers
Contract liabilities V. 22 2,868,604.98 159,843.70 1,479,711.62 248,849.01
Payroll payables V. 23 20,944,522.89 6,044,727.21 28,427,402.84 10,058,993.74
Taxes payable V. 24 15,134,121.83 15,021,233.16 18,106,616.93 15,199,300.72
Other payables V. 25 6,766,954.83 355,521,343.12 10,260,888.23 231,990,706.48
Including: interest payable
Dividends payable
Held for sales liabilitie
Non-current liabilities maturing within one year
12
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Other current liabilities V. 26 372,918.65 20,779.68 192,362.51 32,350.37
Total current liabilities 890,509,567.31 541,977,221.36 1,011,200,229.20 522,809,081.22
Non-current liabilities —— ——
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liability
Long-term payables
Long-term Payroll Payable
Estimated liabilities
Deferred income
Deferred income tax liabilities V. 17 1,523,318.82 1,908,551.51
Other non-current liabilities
Total non-current liabilities 1,523,318.82 1,908,551.51
Total liabilities 892,032,886.13 541,977,221.36 1,013,108,780.71 522,809,081.22
OWNERS' EQUITY —— ——
Share Capital V. 27 119,375,000.00 119,375,000.00 119,375,000.00 119,375,000.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve V. 28 958,565,294.29 958,565,294.29 958,565,294.29 958,565,294.29
Less: treasury stock
Other comprehensive income V. 29 9,800.00 9,800.00 9,800.00 9,800.00
Special reserve V. 30 1,713,882.50 612,361.09
Surplus reserves V. 31 125,686,000.00 125,686,000.00 125,686,000.00 125,686,000.00
13
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Retained earnings V. 32 -1,056,046,383.95 -1,196,622,075.22 -1,030,047,421.23 -1,170,754,809.86
Total equity attributable to owners' of the parent company 149,303,592.84 7,626,380.16 173,588,673.06 32,881,284.43
Minority equity
TOTAL OWNERS' EQUITY 149,303,592.84 7,626,380.16 173,588,673.06 32,881,284.43
Total liabilities and owners’ equity 1,041,336,478.97 549,603,601.52 1,186,697,453.77 555,690,365.65
Legal Representative of Enterprise: Accounting Principal:
Accounting Firm's Principal:
Consolidated Income Statement and The Company`s Income Statement
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd. Monetary Unit:RMB
Year 2021 Year 2020
Items Notes
Consolidation Parent company Consolidation Parent company
I.Total operating income V. 33 680,118,967.08 505,387,254.89 740,851,845.25 582,119,961.20
Less: total operating costs V. 33 586,901,822.80 509,519,813.11 638,523,642.92 565,869,149.78
Taxes and surcharges V. 34 6,707,375.25 2,476,585.14 5,442,591.54 1,784,164.65
Selling expenses V. 35 16,795,778.20 415,349.38 16,631,963.90 2,379,049.19
General and administrative expenses V. 36 62,047,629.17 35,954,807.78 69,410,916.79 38,644,444.31
R&D expenses V. 37 29,760,773.46 98,668.74 15,283,965.69 1,377,914.06
Financial expenses V. 38 23,014,845.65 658,011.46 22,486,373.84 545,319.21
Including: interest expenses 24,231,685.81 765,967.92 23,719,626.23 632,663.12
Interest income 1,562,787.46 64,826.78 1,572,349.92 63,831.60
Add: other income V. 39 1,583,305.16 59,403.42 4,449,659.88 3,548,959.00
Investment income ("-" for losses) V. 40 15,770,549.70 15,770,549.70 -3,451,062.12 -5,390,443.20
Including: income from investment in associates and
15,770,549.70 15,770,549.70 -5,390,443.20 -5,390,443.20
joint ventures
Financial asset derecognition which
measured in amortized cost method ("-"for loss)
Net exposure hedge income ("-"for loss)
Gain on changes in fair value ("-"for loss)
14
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Losses of credit impairment ("-"for loss) V.41 -318,331.09 237,752.50 -1,258,873.53 -1,478,870.07
Losses of assets impairment ("-"for gains) V.42 17,064.89 -9,953,007.03 -9,140,781.65
Asset disposal income ("-" for loss) V.43 1,566,473.14 1,598,662.50 -448,967.59 -158,358.75
II.. Operating Profit ("-"for loss) -26,490,195.65 -26,069,612.60 -37,589,859.82 -41,099,574.67
Plus: non-operating income V. 44 319,658.55 202,347.24 41,077,989.97 55,100.00
Minus: non-operating expenses V. 45 198.18 1,572,672.69 1,572,191.89
III. Profit before tax("-"for loss) -26,170,735.28 -25,867,265.36 1,915,457.46 -42,616,666.56
Minus: income tax expenses V. 46 -171,772.56 499,515.01
IV. Net profit ("-"for net loss) -25,998,962.72 -25,867,265.36 1,415,942.45 -42,616,666.56
Including: net profit realized by the combined party before
merger
1.Classification according to net profit of going concern -25,998,962.72 -25,867,265.36 1,415,942.45 -42,616,666.56
（1）Continuous operating net profit ("-" for loss) -25,998,962.72 -25,867,265.36 1,415,942.45 -42,616,666.56
（2）net profit of Termination ("-" for loss)
2.Classification according to ownership -25,998,962.72 1,415,942.45
（1）Net profit attributable to owners of the parent company -25,998,962.72 1,415,942.45
（2）Net of profit attributable to owners of Minority shareholders’
equity
V. Other comprehensive income (net of tax) - -
Net profit attributable to owners of the parent company - -
1. Other comprehensive income that cannot be reclassified into gains
- -
and losses subsequently
(1) Changes in net liabilities or net assets arising from re-measurement
of defined benefit plan
(2) Share in other comprehensive income of the investee cannot be
reclassified into gains and losses under the equity method
(3) Changes in fair value of other equity instrument investments
(4) Changes in fair value of enterprise's own credit risk
(5) Others
2.Other comprehensive income to be reclassified into gains and losses
- -
subsequently
(1) Share in other comprehensive income of the investee to be
reclassified into gains and losses under the equity method
(2) Changes in fair value of other debt investments
(3) Gains and losses on changes in fair value of financial assets available
for sale
15
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedging reserve
(6) Translation differences of financial statements denominated in
foreign currency
(7) Profit and loss from changes in fair value of available for sale
financial assets
(8) Profit and loss of held to maturity investment reclassified as
available for sale financial assets
(9) Effective part of profit and loss of cash flow hedging
(10) Others
VI.Total comprehensive income -25,998,962.72 -25,867,265.36 1,415,942.45 -42,616,666.56
Total comprehensive income attributable to owners of the parent
-25,998,962.72 -25,867,265.36 1,415,942.45 -42,616,666.56
company
Total comprehensive income attributable to owner’s minority
shareholders
Ⅶ. Earnings per share:
1.Basic earnings per share (RMB/Share) -0.218 0.012
2.Diluted earnings per share (RMB/Share) -0.218 0.012
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
Consolidated Statement Cash Flow and the Company`s Statement of Cash Flows
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd. Monetary Unit:RMB
Year 2021 Year 2020
Items Notes
Consolidation Parent company Consolidation Parent company
I. Cash flows from Operating Activities —— ——
Cash received from sale of goods and rendering of services 573,159,596.26 168,800,813.85 511,870,586.73 147,889,417.48
16
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Refunds of taxes and surcharges 20,826,397.73 13,131,562.71
Cash received from other operating activities V. 48 9,842,241.82 6,232,085.99 16,546,105.54 14,729,508.79
Sub-total of cash inflows from operating activities 603,828,235.81 175,032,899.84 541,548,254.98 162,618,926.27
Cash paid for goods purchased and services received 432,450,100.21 150,998,598.56 242,967,204.21 118,365,485.57
Cash paid to and on behalf of employees 111,795,006.58 37,808,659.45 97,076,119.98 41,809,052.51
Cash paid for taxes and surcharges 13,624,159.14 5,495,048.13 7,338,755.29 1,763,767.81
Cash paid for other operating activities V. 48 24,526,602.41 9,559,906.59 29,153,048.83 7,992,431.15
Sub-total of cash outflows from operating activities 582,395,868.34 203,862,212.73 376,535,128.31 169,930,737.04
Net cash flows from operating activities 21,432,367.47 -28,829,312.89 165,013,126.67 -7,311,810.77
Ⅱ. Cash flows from investing activities: —— ——
Cash received from disposal of investments
Cash received from returns on investments
Net cash received from disposal of fixed assets, intangible assets and other
1,609,454.58 1,609,454.58 6,863.00
long-term assets
Cash inflow from disposal of subsidiaries and other operating units
Cash received from other investing activities V. 48 61,450,668.55
Sub-total of cash inflows from investing activities 1,609,454.58 1,609,454.58 61,457,531.55 -
Cash paid to acquire and construct fixed assets, intangible assets and other
12,003,935.51 4,506,429.25 4,728,338.85 4,027,205.10
long-term assets
Cash paid for investments 20.54
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities V. 48 40,000,000.00
Sub-total of cash outflows from investing activities 12,003,935.51 4,506,429.25 44,728,338.85 4,027,225.64
Net cash flows from investing activities -10,394,480.93 -2,896,974.67 16,729,192.70 -4,027,225.64
Ⅲ. Cash flows from financing activities —— —— —— ——
Cash received from investors
Including：Cash received by subsidiaries absorbing minority equity investments
Cash received from borrowings 673,010,000.00 15,000,000.00 772,910,000.00
Cash received from other financing activities V. 48 43,814,318.47 365,599,500.00 306,429,590.72 449,469,841.68
Sub-total of cash inflows from financing activities 716,824,318.47 380,599,500.00 1,079,339,590.72 449,469,841.68
Cash paid for debt repayments 733,460,000.00 15,000,000.00 641,280,000.00
Cash paid for distribution of dividends and profits or payment of interest 24,166,086.12 765,967.92 22,798,392.28
Including: Dividends, profits paid by subsidiaries to minority shareholders
Cash paid for other financing activities V. 48 25,795,639.32 332,000,115.42 527,074,610.08 441,540,000.00
17
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Sub-total of cash outflows from financing activities 783,421,725.44 347,766,083.34 1,191,153,002.36 441,540,000.00
Net cash flows from financing activities -66,597,406.97 32,833,416.66 -111,813,411.64 7,929,841.68
Ⅳ. Effect of fluctuation in exchange rate on cash and cash equivalents -12,209.93 -8,980.28
Ⅴ. Net increase in cash and cash equivalents -55,571,730.36 1,107,129.10 69,919,927.45 -3,409,194.73
Plus: balance of cash and cash equivalents at the beginning of the period 79,310,253.55 1,039,038.26 9,390,326.10 4,448,232.99
Ⅵ. Balance of cash and cash equivalents at the end of the period 23,738,523.19 2,146,167.36 79,310,253.55 1,039,038.26
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
Consolidated Statement of Changes in Owners' Equity
Prepared by: Chongqing Jianshe Vehicle System Co.,
Monetary Unit:RMB
Ltd.
Year 2021
Equity attributable to owners of the parent company
Items Other equity instruments Minorit Total owners'
Less: Other
Capital Special Surplus Retained y equity equity
Share capital Preferre Perpetua Other treasur comprehensiv Sub-total
reserves Reserve reserve earnings
d shares l bond s y stock e income
Ⅰ. Balance as at December 31 of last year 119,375,000.0 - - - 958,565,294.2 - 9,800.00 - 125,686,000.0 -1,030,047,421.2 173,588,673.0 173,588,673.0
0 9 0 3 6 6
Plus: adjustments for changes in accounting policies -
Adjustments for correction of accounting errors in prior
-
year
Business combination involving entities under common
-
control
Others - -
Ⅱ. Balance as at January 1 of the current year 119,375,000.0 - - - 958,565,294.2 - 9,800.00 - 125,686,000.0 -1,030,047,421.2 173,588,673.0 - 173,588,673.0
0 9 0 3 6 6
Ⅲ. Increase/(decrease) for the current year ("-" for
- - - - - - - 1,713,882.5 - -25,998,962.72 -24,285,080.2 - -24,285,080.2
losses)
0 2 2
1.Total comprehensive incomes -25,998,962.72 -
-25,998,962.7 -25,998,962.7
18
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
2 2
2.Capital contributed or reduced by owners - - - - - - - - - - - - -
(1) Common shares from shareholders - -
(2) Investment capital from the holders of other equity
- -
instruments
(3) Amount of the share-based payment included in the
- -
owners' equity
(4) Others - -
3.Distribution of profits - - - - - - - - - -
(1) Withdrawal of surplus reserves - -
(2) Distribution to owners or shareholders -
(3) Others - -
4.Transfers within the owners` equity - - - - - - - - - - -
(1) Conversion of capital reserves into paid-in capital - ——
(2) Conversion of surplus reserves into paid-in capital - ——
(3) Recovery of losses by surplus reserve - ——
(4) Set benefit plan changes carry-over retained income - ——
(5) Other profits changes carry-over related income - ——
(6) Others - ——
5.Special reserves - - - - - - - 1,713,882.5 - - 1,713,882.50 - 1,713,882.50
0
(1) Amount withdrawn in the current year 2,710,546.8 2,710,546.82 ——
2
(2) Amount used in the current year -996,664.32 ——
-996,664.32
6.Others - -
Ⅳ. Ending balance of the current year 119,375,000.0 - - - 958,565,294.2 - 9,800.00 1,713,882.5 125,686,000.0 -1,056,046,383.9 149,303,592.8 - 149,303,592.8
0 9 0 0 5 4 4
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
19
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Consolidated Statement of Changes in Owners' Equity
Prepared by: Chongqing Jianshe Vehicle System Co.,
Monetary Unit:RMB
Ltd.
Year 2020
Items Equity attributable to owners of the parent company Minorit Total owners'
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Sub-total y equity equity
20
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Preferre Perpetua Other reserves treasur comprehensiv Reserv reserve earnings
d shares l bond s y stock e income e
Ⅰ. Balance as at December 31 of last year 119,375,000.0 958,565,294.2 9,800.00 125,686,000.0 -1,031,463,363.6 172,172,730.6 172,172,730.6
0 9 0 8 1 1
Plus: adjustments for changes in accounting policies -
Adjustments for correction of accounting errors in prior
-
year
Business combination involving entities under common
-
control
Others - -
Ⅱ. Balance as at January 1 of the current year 119,375,000.0 - - - 958,565,294.2 - 9,800.00 - 125,686,000.0 -1,031,463,363.6 172,172,730.6 - 172,172,730.6
0 9 0 8 1 1
Ⅲ. Increase/(decrease) for the current year ("-" for
- - - - - - - - - 1,415,942.45 1,415,942.45 - 1,415,942.45
losses)
1.Total comprehensive incomes 1,415,942.45 1,415,942.45 - 1,415,942.45
2.Capital contributed or reduced by owners - - - - - - - - - - - - -
(1) Common shares from shareholders - -
(2) Investment capital from the holders of other equity
- -
instruments
(3) Amount of the share-based payment included in the
- -
owners' equity
(4) Others - -
3.Distribution of profits - - - - - - - - - -
(1) Withdrawal of surplus reserves - -
(2) Distribution to owners or shareholders -
(3) Others - -
4.Transfers within the owners` equity - - - - - - - - - - -
(1) Conversion of capital reserves into paid-in capital - ——
(2) Conversion of surplus reserves into paid-in capital - ——
(3) Recovery of losses by surplus reserve - ——
(4) Set benefit plan changes carry-over retained income - ——
(5) Other profits changes carry-over related income - ——
21
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(6) Others - ——
5.Special reserves - - - - - - - - - - - - -
(1) Amount withdrawn in the current year - ——
(2) Amount used in the current year - ——
6.Others - -
Ⅳ. Ending balance of the current year 119,375,000.0 - - - 958,565,294.2 - 9,800.00 - 125,686,000.0 -1,030,047,421.2 173,588,673.0 - 173,588,673.0
0 9 0 3 6 6
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
22
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Consolidated Statement of Changes in Owners' Equity
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd. Monetary Unit:RMB
Year 2021
Other equity instruments Less: Other
Items Capital Special Surplus Retained
Share capital Preferred Perpetual treasury comprehensive Total owners' equity
Others reserves Reserve reserve earnings
shares bond stock income
Ⅰ. Balance as at December 31 of last year - - - - 9,800.00 - 32,881,284.43
119,375,000.00 958,565,294.29 125,686,000.00 -1,170,754,809.86
Plus: adjustments for changes in accounting policies
Adjustments for correction of accounting errors in prior year
Business combination involving entities under common
control
Others -
Ⅱ. Balance as at January 1 of the current year - - - - 9,800.00 - 32,881,284.43
119,375,000.00 958,565,294.29 125,686,000.00 -1,170,754,809.86
Ⅲ. Increase/(decrease) for the current year ("-" for
- - - - - - - - -25,867,265.36 -25,254,904.27
losses) 612,361.09
1.Total comprehensive incomes -25,867,265.36 -25,867,265.36
2.Capital contributed or reduced by owners - - - - - - - - - - -
(1) Common shares from shareholders -
(2) Investment capital from the holders of other equity
-
instruments
(3) Amount of the share-based payment included in the
-
owners' equity
(4) Others -
3.Distribution of profits - - - - - - - -
23
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(1) Withdrawal of surplus reserves -
(2) Distribution to owners or shareholders
(3) Others -
4.Transfers within the owners` equity - - - - - - - - -
(1) Conversion of capital reserves into paid-in capital
(2) Conversion of surplus reserves into paid-in capital
(3) Recovery of losses by surplus reserve
(4) Set benefit plan changes carry-over retained income
(5) Other profits changes carry-over related income
(6) Others
5.Special reserves - - - - - - - - - 612,361.09
612,361.09
(1) Amount withdrawn in the current year
851,766.65
(2) Amount used in the current year
-239,405.56
6.Others -
Ⅳ. Ending balance of the current year - - - - 9,800.00 7,626,380.16
119,375,000.00 958,565,294.29 612,361.09 125,686,000.00 -1,196,622,075.22
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
24
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Consolidated Statement of Changes in Owners' Equity
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd. Monetary Unit:RMB
Year 2020
Other equity instruments Less: Other
Items Capital Special Surplus Retained
Share capital Preferred Perpetual treasury comprehensive Total owners' equity
Others reserves Reserve reserve earnings
shares bond stock income
Ⅰ. Balance as at December 31 of last year 9,800.00 75,497,950.99
119,375,000.00 958,565,294.29 125,686,000.00 -1,128,138,143.30
Plus: adjustments for changes in accounting policies
Adjustments for correction of accounting errors in prior year
Business combination involving entities under common
control
Others -
Ⅱ. Balance as at January 1 of the current year - - - - 9,800.00 - 75,497,950.99
119,375,000.00 958,565,294.29 125,686,000.00 -1,128,138,143.30
Ⅲ. Increase/(decrease) for the current year ("-" for
- - - - - - - - - -42,616,666.56 -42,616,666.56
losses)
1.Total comprehensive incomes -42,616,666.56 -42,616,666.56
2.Capital contributed or reduced by owners - - - - - - - - - - -
(1) Common shares from shareholders -
(2) Investment capital from the holders of other equity
-
instruments
(3) Amount of the share-based payment included in the
-
owners' equity
(4) Others -
3.Distribution of profits - - - - - - - -
(1) Withdrawal of surplus reserves -
(2) Distribution to owners or shareholders
(3) Others -
4.Transfers within the owners` equity - - - - - - - - -
(1) Conversion of capital reserves into paid-in capital
(2) Conversion of surplus reserves into paid-in capital
25
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(3) Recovery of losses by surplus reserve
(4) Set benefit plan changes carry-over retained income
(5) Other profits changes carry-over related income
(6) Others
5.Special reserves - - - - - - - - - - -
(1) Amount withdrawn in the current year
(2) Amount used in the current year
6.Others -
Ⅳ. Ending balance of the current year - - - - 9,800.00 - 32,881,284.43
119,375,000.00 958,565,294.29 125,686,000.00 -1,170,754,809.86
Legal Representative of Enterprise: Accounting Principal: Accounting Firm's Principal:
26
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Notes To Financial Statements
Ⅰ. 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 Motorcycle Co., Ltd.，was jointly set up in July 1995 by the
Construction Industry (Group) Co., Ltd. and China North Industries Shenzhen Corporation. The Business 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.
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.
On October 22, 2018, Chongqing Jianshe mechanical and Electrical Co., LTD., the controlling shareholder of the company,
signed the "Equity transfer Agreement for State-owned listed companies" with China South Industries Group Corporation
(hereinafter referred to as "GSGC"). The Chongqing Jianshe mechanical and electrical co., LTD. transferred 84,906,250
shares of its state-owned legal person shares to the GSGC, it accounts for 71.13% of the Chongqing Jianshe 's total share
capital.
On December 21, 2018, the company received the " Confirmation of registration of securities transfer " issued by the
Shenzhen Branch of China Securities Registration and Clearing Co., Ltd., and the registration procedures for the transfer of
shares under this agreement have been completed in the Shenzhen Branch of China Securities Registration and Settlement
Co., Ltd.
After the completion of this agreement transfer, Chongqing Jianshe mechanical and Electrical Co., LTD., would no longer
hold shares of the company. GSGC became the controlling shareholder of the company, the proportion of shareholding is
71.13%, and the nature of the shares is State-owned legal person shares.
The parent company and actual controller of the company is China South Industries Group Corporation. The ultimate
controller of the Company is the State-owned Assets Supervision and Administration Commission (SASAC).
As at December 31, 2021, the Company issued 119,375,000 shares in total and had the registered capital of 119,375,000. The
registration place: No.1, Janshe Road Huaxi Industry Park, Banan District, Chongqing; the headquarters address: Banan
District, Chongqing Municipality. Legal representative: Xuechuan Yan. The main business activities: research and
development, processing, manufacturing and related technical services of motorcycles, auto parts, accessories, machinery
9
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 disclosure of the financial report was approved by the Board of Directors on April 28, 2022.
As at December 31, 2021, two subsidiaries were included in the scope of consolidated financial statements of the Company，
See "Note VII Equity in other entities" for details of scope consolidated financial statements.
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.
Ⅱ. Basis for the Preparation of financial statements
1.Basis for 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 various specific 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.
III. Principal accounting policies and accounting estimates
1.Statements on Compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflect the company's and consolidated financial position, operating results and cash
flows for the reporting period.
10
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 CNY.
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.
（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
11
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 goodwill 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 less the fair value
shares of identifiable net assets obtained by the acquiree during the merger on the acquisition date, is recognized as the
goodwill. While the merger cost is less than the fair value shares of identifiable net assets 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 goodwill 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
goodwill 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 III.6 (2)). For the package deal, please refer to above description of this
section and Note III.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.
12
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 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）The method of preparing consolidated financial 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.
13
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 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 is 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 remained equity less 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
III.14 “Long-term Equity Investment” or Notes III.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
14
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Investment in Subsidiary without Control Lost” (please refer to (2) ④ in Notes III.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 when the control lost.
7.Joint venture arrangements classification and accounting treatment of joint operation
Joint venture arrangement refers to an arrangement jointly controlled by two or more parties. According to the rights and
obligations in the joint venture arrangement, the company divides the joint venture arrangement into joint operation and joint
venture. Joint operation means the company has the right to arrange related assets and related liabilities. Joint venture means
the company only has the right to arrange the net asset.
The company adopts equity method to calculate investment to joint venture by referring to accounting policies stated in
"Long-term Stock Ownership for Equity Method Calculation" (please refer to (2) ④ in Notes III.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 losses and
profits in the trade which belong to other parties in the joint operation. In case the assets are 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
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment at any time. Cash
equivalent refers to the investments with holding period of less than three months that are readily convertible to known
amount of cash and subject to insignificant risk of changes in value.
9. Foreign currency business and foreign currency translation
（1）Translation Method of Foreign Currency Transaction
15
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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.
（2）Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign
Currency
On the balance sheet date, the spot exchange rate on the balance sheet date is used for the monetary items
in foreign currency. The exchange difference arising from the special borrowing in foreign currency
borrowed for the purpose of purchasing and constructing assets meeting the capitalization conditions of
borrowing costs shall be capitalized during the capitalization period.
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.
16
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Moreover, the Retained Earnings 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 liability’s 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.
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 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
A financial instrument refers to a contract that concludes the financial assets of one party and the financial
liabilities or equity instruments of another party. Related financial assets or financial liabilities are
recognized when the company becomes a party to a financial instrument contract.
Financial assets and financial liabilities are measured at fair values at the initial recognition: (i) for the
financial assets and financial liabilities measured at fair values with variations recorded into the current
17
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
profits and losses, related transaction expenses are directly recorded into the current profits and losses;(ii)
for other kinds of financial assets and financial liabilities, related transaction expenses are included in the
initial recognition amounts. Furthermore, subsequent measurements of financial assets and liabilities are
decided by their own classifications.
A financial asset or financial liability that qualified with one of the following conditions are indicating its
transactional purposes: (i) the purpose of acquiring relevant financial assets or assuming relevant financial
liabilities is mainly made for the purpose of selling or repurchasing in the near future; (ii) the initial
confirmation is a part of the identifiable portfolio of financial instruments under centralized management,
and there is objective evidence that the short-term profit model actually exists in the near future;(iii) where
it is defined as the derivative instrument, but conforms to the financial guarantee contract definition and is
designated as an effective hedging instrument of the derivative instruments.
（1）Debt Instruments
Debt instruments refer to the instruments that conform to the definition of financial liabilities from the
perspective of the issuers. The classifications and subsequent measurements of debt instruments depend on
the company's business models for financial assets management and the contractual cash flow
characteristics of financial assets. Where it fails to pass the cash flow characteristic test, direct
classification as a financial asset measured at fair values shall be adopted with variations to be recorded
into the current profits and losses; where it succeed to pass the cash flow characteristic test, its
classification shall be determined on the business model of financial assets management, and its
qualification as a financial asset measured at fair values, of which variations shall be recorded into the
current profit and loss.
1) To be measured at amortized costs.
The company's business models for the management of such financial assets are aimed at the collection of
the contract cash flows, of which the characteristics of the contract cash flow shall be consistent with the
benchmark lending arrangement, that is, the cash flows generated at a certain date are referred to the
payment of the principal and the interest based on the outstanding principal amount only while the
financial assets are not designated to be measured at fair values, but their variations are recorded into the
current profits and losses. However, the company recognizes interest incomes for such financial assets in
accordance with the effective interest rate methods. The profits or losses of such financial assets due to the
termination of recognition together with the losses as a result of the impairment are directly recorded into
the current profits and losses.
2) To be measured at fair values with its variations included in other comprehensive incomes.
The company's business model for managing such financial assets is both to receive the contract cash
flows and to sell, of which the characteristics of the contract cash flows shall be consistent with the
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Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
benchmark lending arrangements, that is, the cash flow generated at a certain date is only the payment of
the principal and the interest based on the outstanding principal amount while the financial assets are not
designated to be measured at fair values, but their variations are recorded into the current profits and losses.
However, such financial assets are measured at fair values and their variations are included in other
comprehensive incomes, but impairment losses or gains, exchange gains & losses and interest incomes
calculated according to the actual interest rate method are included in the current profits and losses.
Furthermore, variations in fair values accumulated into other comprehensive incomes will be carried
forward to the current profits and losses when the recognition of such financial assets is terminated. Such
financial assets are listed as other lending investments.
3) To be measured at fair values with variations booked into the current profits and losses.
Debt instruments held by the company that are not divided into those measured at amortized costs and
those measured at fair values with their variations recorded in other comprehensive incomes are measured
at fair values and their variations are recorded into the current profits and losses, of which those classified
as financial assets are measured at fair values with variations recorded into current profits and losses are
listed as transactional financial assets or other non-current financial assets.
（2）Equity Instruments
An equity instrument is one that is analyzed from the perspective of the issuers in accordance with the
definition of an equity instrument. Equity instrument investments are measured at fair values with
variations recorded into current profits and losses, which are listed as transactional financial assets, except
that the management of the company that is specified to be measured at fair values with variations
recorded into other comprehensive incomes.
Items designated to be measured at fair values with variations included in the comprehensive incomes are
listed as the investments of other equity instruments, of which related changes in fair values shall not be
carried forward to the current profits and losses, and such designation shall not be revoked once made.
However, related dividend gains are booked into the current profits and losses, and no impairment
provision is included in the other equity instruments. When terminate recognition, the accumulated gains
or losses as previously recorded in other comprehensive incomes are transferred from other comprehensive
incomes and recorded in retained earnings.
（3）Financial Liabilities
Financial liabilities are classified as financial liabilities and other financial liabilities which are measured
at fair values with variations to be recorded into the current profits and losses at the initial recognition.
Financial liabilities measured at fair values with variations recorded into the current profits and losses
includes trading financial liabilities and financial liabilities that are specified to be measured at fair values
with variations booked into the current profit and loss. Financial liabilities can be designated as financial
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Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
liabilities to be measured at fair values at the initial measurement with their variations recorded into the
current profits and losses upon the any of the following conditions:
1)the designation can eliminate or significantly reduce the accounting mismatches;
2)The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities is managed
and evaluated on the basis of fair values, and reported to key management within the company thereafter
according to the risk management or investment strategies stated in the official written documents. Such
designation shall not be revoked once made.
For financial liabilities designated to be measured at fair values with variations recorded in the current
profits and losses, variations in fair values caused by changes in the company's own credit risks shall be
recorded in other comprehensive incomes, while variations of other fair values are booked into the current
profits and losses. Furthermore, when terminate the recognition of such financial liabilities, the
accumulated gains or losses as previously recorded in other comprehensive incomes are transferred from
other comprehensive incomes and recorded in retained earnings.
Other financial liabilities of the company mainly include short-term loans, long-term loans and the like.
For such financial liabilities, effective interest methods are adopted with subsequent measurement to be
made according to the amortized costs.
（4）Termination Recognition of Financial Assets and Financial Liabilities
A financial asset shall be terminated upon one of the following circumstances:
1)The contractual right to receive the cash flow of the financial assets is terminated;
2)The financial asset with almost all the risks and rewards from the ownership of the financial assets have
been transferred to the transferee;
3)Although the company has neither transferred nor retained nearly all the risks and rewards in the
ownership of the financial asset, the financial assets of the company have been transferred and have
relinquished control of the financial assets.
Where the current obligations of a financial liability (or any part thereof) have been discharged, the
company ceases to recognize such financial liability (or any part thereof).
（5）Impairment of Financial Instruments
The company carries out impairment accounting treatment to the financial instruments based on expected
credit losses and confirms loss provisions. Expected credit loss refers to the weighted average credit losses
of financial instruments by the risks of defaults, and credit losses refer to the difference between all
contract cash flow receivable under the contract as well as all cash flows expected to be collected that
discounted at the original real interest rates, that is, the present values of all cash shortfalls.
Measuring methods of the company's expected credit losses on financial instruments reflects the following
factors: unbiased probability weighted averages as determined by a range of possible outcomes; the time
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Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
value of money; reasonable and informed information about past events, current conditions and future
economic conditions available up to the balance sheet date without unnecessary additional costs or efforts.
The company determines the expected credit losses of relevant financial instruments in the following
manners:
1) For financial assets, the credit losses are the present values of the difference between the contract cash
flows and the expected cash flows payable by the company;
2)For leasing receivables, the credit losses are the present values of the difference between the contract
cash flows and the expected cash flows payable by the company;
3)For any uncommitted loan commitment, the credit losses are the present values of the difference between
the contract cash flows payable by the company and the cash flows expected to be collected if the loan
commitment holder withdraws corresponding loans. The company's estimations on the expected credit
losses of the loan commitment are consistent with its expectations on the utilization of the loan
commitments;
4)In the case of a financial guarantee contract, the credit losses are the present values of the difference
between the amount the company expects to receive from the contract holders, debtors or any other party,
and the amount of money the company expects to pay to the contract holder in respect of the credit losses
incurred by the contract holder;
5)In the case of a financial asset whose credit impairment has occurred on the date as indicated by the
balance sheets but is not purchased or originated, the credit losses are referred to the difference between the
book balance of the financial assets and the present values of the estimated future cash flow discounted at
the original real interest rates.
Three stages are adopted to identify expected credit losses by assessing whether its credit risks have
increased significantly since its initial recognition together with considerations to the reasonable and
evidence-based information (including forward-looking information) on each balance sheet date. In the
case that the credit risk has not increased significantly since the initial confirmation, the expected credit
losses are defined as the first stage, and the loss provisions are measured according to the expected credit
losses of the financial instruments within the next 12 months; If the credit risk has not increased
significantly since the initial recognition, it shall be in the first stage, and the loss provision shall be
measured according to the expected credit loss of the financial instrument in the next 12 months; If the
credit risk has increased significantly since the initial recognition, but the credit impairment has not
occurred, it shall be in the second stage, and the loss provision shall be measured according to the expected
credit loss of the whole duration of the financial instrument; If the credit impairment has occurred since the
initial recognition, it shall be in the third stage, and the loss provision shall be measured according to the
expected credit loss of the whole duration of the financial instrument. For financial instruments of the first
21
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
and second stages, the interest income shall be calculated according to the book balance and the actual
interest rates; for financial instruments of the third stage, the interest income shall be determined according
to its amortized costs and the real interest rates.
For purchased or originated financial assets with credit impairment, only the cumulative variations in the
expected credit losses during the entire period (up to the date as indicated by balance sheet) after the initial
recognition are recognized as loss provisions, and its interest gains are determined according to the
amortized costs of financial assets and the real interest rates as adjusted by credit.
An increase or reversal of the loss provisions is recorded as an impairment loss or gain of the current
period. For debt instruments as held at fair values with variations recorded into other comprehensive
incomes, impairment losses or gains are recorded into the current profits and losses, and other
comprehensive incomes are adjusted synchronously.
A. Provisions of the company for the losses are measured on the expected credit losses for the entire
duration
The company divides notes and accounts receivable into several combinations and calculates the expected
credit losses with reference to the combination based on the characteristics of credit risks.
For notes receivable by portfolios, the expected credit losses are calculated by the default risk exposures
and the expected credit loss rates of the entire duration with reference to company's historical credit loss
experience, and the combination with the current situation and the forecast of future economic conditions.
Determining basis of the portfolios is as follows:
Portfolio A of notes receivable trade acceptances
Portfolio B of notes receivable bank acceptances
For accounts receivable by portfolios, a comparison table of the expected credit loss rates is prepared
between the age of accounts receivable and the entire duration to calculate the expected credit losses with
reference to company's historical credit loss experience, and the combination with the current situation and
the forecast of future economic conditions. Determining basis of the portfolios is as follows:
Portfolio A of accounts receivable aging analysis
Portfolio B of accounts receivable specific identification
B. The company divides other receivables and long-term receivables into several portfolios according to
the characteristics of credit risks and calculates the expected credit losses on the basis of such portfolios
when individual other receivables and long-term receivables fail to obtain the information to assess the
expected credit losses at a reasonable cost. Determining basis of the portfolios is as follows:
Portfolio A of other receivables deposits and securities receivable
Portfolio B of other receivables advanced money receivable
Portfolio A of long-term receivables lease receivables
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Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
For lease receivables by portfolios, the expected credit losses are calculated by the default risk exposures
and the expected credit loss rates of the entire duration with reference to company's historical credit loss
experience, and the combination with the current situation and the forecast of future economic conditions.
For other receivables and long-term receivables divided into combinations other than lease receivables, the
expected credit losses are calculated by the default risk exposure and the expected credit loss rates for the
next 12 months or the entire duration.
（6）Derivatives and Embedded Derivatives
Derivatives of the company' mainly include forward contracts, futures contracts and swap contracts.
Derivatives are initially measured at the fair values at the execution dates of the derivative trading
contracts, and are subsequently measured at their fair values thereafter. The gains or losses arising from the
variations in the fair values of the company's derivatives are directly recorded into the current profits and
losses.
Embedded derivative refers to the derivatives that are embedded in the non-derivative instruments (i.e., the
master contracts), which constitutes the hybrid contracts with the master contracts. Where the master
contracts contained inside the hybrid contract are assets regulated by the Standards for Financial
Instruments, the company does not split the embedded derivatives from the hybrid contracts, and instead,
the hybrid contracts are applied as a whole to relevant provisions of the financial instrument criterion on
the classification of financial assets.
In the case that the master contracts contained in the hybrid contracts are not assets under the financial
instrument criterion but meet the following conditions, the company splits the embedded derivative from
the master contracts and settle as separate derivatives:
1)The economic characteristics and risks of the embedded derivative instruments are not closely related to
the economic characteristics and risks of the master contracts.
2)Separate instruments with terms associated with embedded derivatives are conforming to the definition
of derivatives;
3)The hybrid contracts are not measured at fair values and their variations are recorded into the current
profits and losses for accounting settlements.
（7）Offsets of Financial Assets and Liabilities
When the company is legally entitled to offset the recognized financial assets and financial liabilities, and
such right is currently enforceable, and when the company plans to settle such financial assets and pay off
the financial liabilities on a net basis or liquidate the financial assets and liabilities, the amount of financial
assets and financial liabilities offset against each other are stated in the balance sheets. In addition,
financial assets and financial liabilities are shown separately in the balance sheets and are not offset against
each other.
23
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
（8）The Fair Values Determination of Financial Instruments
For financial instruments with active markets, the fair values of assets are determined by the price the
market participant who would have to pay to receive or transfer a liability from the sale of such asset in an
orderly transaction on the measurement date. Where there are financial instruments without active markets,
the fair values are determined by valuation methodologies. In the valuations, the input values consistent
with the characteristics of the assets or liabilities as considered by the market participants in the transaction
of the relevant assets or liabilities, together with relevant observable input values as preferred reference are
adopted by the company through the valuation techniques that are applicable in the current situation and
are supported by sufficient data and other information available. An unobservable input value is adopted
when relevant observable input values cannot be obtained or are not feasible to obtain.
11. Inventories
（1）Classification of inventories
Inventories are classified into: raw materials, work in progress, finished goods, turnover materials, low-value consumables,
packaging materials, 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 progress, finished goods, 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.
12. Contract assets and contract liabilities
The company presents contract assets or liabilities in the balance sheet according to the relationship between performance
24
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
obligation and customer payment. Contract assets are the right of the company to receive consideration for the goods
transferred to the customer, and the right depends on other factors other than the passage of time. Contract liability is the
obligation of the company to transfer goods to the customer for the consideration it has received or receivable from the
customer.
The contract assets are prepared for impairment according to the expected credit loss method. No matter whether it contains
significant financing components or not, the company measures its loss provision according to the amount of expected credit
loss in the whole duration on the balance sheet date. If the expected credit loss is greater than the book amount of current
contract asset impairment provision, the difference is recognized as impairment loss, otherwise, it is recognized as
impairment gain. The relevant contract assets are deemed to be unable to be recovered and have actual impairment loss,
which shall be written down after approval.
On the balance sheet date, the contract assets and liabilities are listed separately due to different contracts. For contract assets
and contract liabilities under the same contract, the net amount is shown as the debit balance, and the contract assets or other
non-current assets are listed respectively according to their liquidity. If the provision for impairment has been accrued, the
balance at the end of the period minus the provision for impairment of contract assets shall be listed; If the net amount is the
credit balance, it shall be listed as contract liabilities or other non-current liabilities according to their liquidity.
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 decisions 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 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
25
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 previously written down by the disposal group held for sale shall be restored
and reversed within the amount of asset impairment loss recognized by non-current assets according to the measurement
provisions of Accounting Standards for Business Enterprises No. 42 – non-current assets held for sale, disposal group and
termination of operation after being classified as held for sale, and the reversed amount shall be included in the current profits
and losses. The book value of the offset goodwill and the non-current assets that are measured according to the Accounting
Standards for Business Enterprises No. 42 – non-current assets held for sale, disposal group and termination of operation
shall not be reversed before they are classified into the categories held for sale.
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.
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
26
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
policy, please refer to Notes III.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 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
27
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 non-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 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
28
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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.
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 Retained Earnings 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.
For the long-term equity investment held by the Company before the first execution of the new accounting criterion of the
associated enterprises and joint ventures, if there is debit difference of the equity investment related to the investment, should
be included in the current gains and losses according to the amount of the straight-line amortization during the original
remained period.
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
29
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 Notes III.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 are 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 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 carried over entirely.
30
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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
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 are acquired and records as part of the 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.
The company's investment property uses the cost model to carry on the follow-up measurement. Such properties are
depreciated or amortized in accordance with the relevant regulations for fixed assets or intangible assets.
16. Fixed assets and accumulated depreciation
（1）Criteria for recognition of fixed assets
Fixed assets refer to tangible assets that are held for production, services, leases or operations and the useful life of which are
over one accounting year. Fixed assets are recognized if it produces economic benefit inflows and its costs can be measured
reliably. The Company makes initial measurements on fixed assets at the costs that they are acquired.
（2）Classification and depreciation policy of fixed assets
The company adopts the Straight-line method to carry out depreciation. The fixed assets shall begin to be depreciated upon
reaching the intended usable state, and shall cease to be depreciated upon termination of recognition or when they are
classified as non-current & held-for-sale assets. Without taking into account the provision for impairment, the Company
determines the annual depreciation rates of all types of fixed assets according to the type of fixed assets, the expected useful
31
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
life and the estimated residual value as follows:
Residual’s yearly
Item Method Useful life (Year)
rate % depreciation %
Straight-line
House and building 25—35 3 2.77-3.88
depreciation
Straight-line
Machinery equipment 7-15 3 6.47-13.86
depreciation
Straight-line
Transportation equipment 8-10 3 9.70-12.13
depreciation
Straight-line
Electronic equipment and others 5-10 3 9.70-19.40
depreciation
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.
At the end of each year, the company reviews the useful life, estimated net residual value and depreciation method of fixed
assets. If the estimated useful life is different from the original estimate, the useful life of the fixed assets shall be adjusted. If
the estimated net residual value is different from original estimated, the estimated net residual value shall be adjusted.
（3）Recognition basis, pricing and depreciation method of fixed assets by finance lease
Fixed assets leased by the Company are recognized as financing leased fixed assets when they meet one or more of the
following criteria:
1) At the end of the lease term, ownership of the leased assets is transferred to the Company.
2) The Company has the option to purchase leased assets, and the contracted purchase price is
expected to be well below the fair value of the leased assets at the time of exercise of the option,
So it can be reasonably certain that the Company will exercise this option on the date of
commencement of the lease.
3) Even if ownership of the assets is not transferred, the lease term accounts for the majority of the
useful life of the leased assets.
4) The present value of the minimum lease payment of the Company at the date of
commencement of the lease is almost equivalent to the fair value of the leased assets on the
date of commencement of the lease.
5) The leased assets are of a special nature, if no major modifications are made, only the company
can use them.
32
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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.
（4）Charge for Major repair
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.
17. Construction in progress
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that should be
capitalized before the work 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, less 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 excess 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 restarts.
19. Leases
33
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within a certain
period of time. On the commencement date of the contract, the company evaluates whether the contract is a lease or includes
a lease. If one party in the contract transfers the right to control the use of one or more identified assets within a certain
period in exchange for consideration, the contract is a lease or includes a lease. Unless the terms and conditions of the
contract change, the company will not reassess whether the contract is a lease or includes a lease.
(1) The company as lessee
If the contract contains multiple separate leases at the same time, the contract shall be split and each separate lease shall be
subject to accounting treatment. If the contract includes both lease and non lease parts, the lease and non lease parts shall be
separated, and the contract consideration shall be apportioned according to the relative proportion of the sum of the
individual prices of each lease part and the individual prices of the non lease part. The lease term is an irrevocable period
during which the company has the right to use the leased assets.
1) Right-of-use asset
Right-of-use asset refer to the right of the company to use the leased assets during the lease term. The categories of leased
assets of the company mainly include houses and buildings, means of transport and other equipment.
On the beginning date of the lease term, the company initially measures the right-of-use asset according to the cost, including:
A. The initial measurement amount of lease liabilities; B. For the lease payment paid on or before the beginning of the lease
term, if there is lease incentive, the relevant amount of lease incentive enjoyed shall be deducted; C. Initial direct costs
incurred; D. The costs that are expected to occur to dismantle and remove the leased assets, restore the site where the leased
assets are located or restore the leased assets to the state agreed in the lease terms, but are incurred for the production of
inventories, according to the Accounting Standards for Business Enterprises No. 1 - inventories.
After the beginning date of the lease term, the company adopts the cost model for the subsequent measurement of the
right-of-use asset, makes a decision according to the expected realization of the economic benefits related to the right-of-use
asset, depreciates the right-of-use asset with the straight-line method, and accounts for the identified impairment losses. If the
company remeasures the lease liabilities in accordance with the relevant provisions of the lease standards, the book value of
the right-of-use asset shall be adjusted accordingly.
2) Lease liability
Lease liabilities reflect the present value of the unpaid lease payments of the company. The company initially measures the
lease liabilities according to the present value of the unpaid lease payments at the beginning of the lease term.
Lease payment refers to the amount paid by the company to the lessor related to the right to use the leased assets during the
lease term, including: A. Fixed payment and substantial fixed payment. If there is lease incentive, the amount related to lease
34
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
incentive shall be deducted; B. The ratio of the lease payment depends on the index at the beginning of the lease term or the
index at the beginning of the lease term; C. The company reasonably determines the exercise price of the purchase option
when it will exercise the purchase option; D. The lease term reflects the amount to be paid when the company will exercise
the option to terminate the lease; E. The amount expected to be paid according to the guarantee residual value provided by
the company.
When calculating the present value of lease payments, the company adopts the interest rate embedded in the lease as the
discount rate; When the embedded interest rate of the lease cannot be determined, the incremental loan interest rate is used as
the discount rate, and the incremental loan interest rate is adjusted based on the bank loan interest rate of the same period and
considering relevant factors.
The Company calculates the interest expense of the lease liability in each period of the lease term according to the fixed
periodic interest rate and records it into the current profit and loss, but it shall be included into the cost of relevant assets if it
should be capitalized.
When the evaluation results of purchase option, renewal option and termination option change, the actual exercise of renewal
option and termination option is inconsistent with the original evaluation results, the expected payable amount according to
the guarantee residual value changes, the index or ratio used to determine the lease payment changes, or the actual fixed
payment changes, the lease liability is remeasured.
3) Change of lease
When the lease change expands the scope of the lease by increasing the use right of one or more leased assets, and the
increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate price
of most of the expanded scope of the lease, the lease change shall be treated as a separate lease. If it is not accounted for as a
separate lease, the consideration of the changed contract shall be apportioned, the lease term shall be re-determined, and the
lease liability shall be re-measured.
4) Short term leases and low value asset leases
The company recognizes the lease with a lease term of no more than 12 months on the beginning date of the lease term and
excluding the purchase option as a short-term lease; A lease with a value of no more than 2 million yuan when a single leased
asset is a new asset is recognized as a low value asset lease. If the company sublets or expects to sublet the leased assets, the
original lease is not recognized as a low value asset lease. The company chooses not to recognize the right of use assets and
lease liabilities for short-term leases and low-value asset leases, and the lease payment amount is included in the relevant
asset cost or current profit and loss according to the straight-line method or other systematic and reasonable methods in each
period of the lease term.
5) Sale and leaseback transaction
35
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
For the sale and leaseback transaction, the company evaluates and determines whether the asset transfer in the sale and
leaseback transaction belongs to sales in accordance with the Accounting Standards for Business Enterprises No. 14 -
Revenue. If it belongs to sales, the right to use assets formed by the sale and leaseback shall be measured according to the
part of the original asset book value related to the right to use obtained by leaseback, and only the relevant gains or losses
shall be recognized for the rights transferred to the lessor; If it does not belong to sales, continue to recognize the transferred
assets and recognize a financial liability equal to the transfer income.
(2) The company as lessor
On the lease commencement date, the company divides the lease into financial lease and operating lease. The lease that
substantially transfers almost all the risks and rewards related to the ownership of the leased asset is financial lease, and in
addition, it is operating lease. When the company is the sublessee lessor, the sublease is classified based on the right-of-use
asset generated from the original lease.
1) Finance lease
On the beginning date of the lease term, the company recognizes the financial lease receivables for the financial lease and
terminates the recognition of the financial lease assets. When the finance lease receivables are initially measured, the net
lease investment is taken as the entry value of the finance lease receivables. The net lease investment is the sum of the
unguaranteed residual value and the present value of the lease receipts not received on the beginning date of the lease term
discounted at the interest rate embedded in the lease.
Lease collection amount refers to the amount that the company should collect from the lessee due to the transfer of the right
to use the leased assets during the lease term, including: a. the fixed payment amount and actual fixed payment amount to be
paid by the lessee. If there is lease incentive, the relevant amount of lease incentive shall be deducted; B. Variable lease
payments depending on index or ratio; C. The exercise price of the purchase option, provided that it is reasonably determined
that the lessee will exercise the option; D. The amount to be paid by the lessee to exercise the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease; E. The guaranteed residual
value provided to the company by the lessee, the party related to the lessee and the independent third party with the financial
ability to perform the guarantee obligation.
The company calculates and recognizes the interest income of each period within the lease term according to the fixed
periodic interest rate. The amount of variable lease payments obtained by the company that are not included in the
measurement of net lease investment shall be included in the current profit and loss when actually incurred.
2) Operating lease
During each period of the lease term, the company adopts the straight-line method to recognize the lease receipts of operating
leases as rental income. The amount of variable lease payments not included in the lease receipts shall be included in the
36
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
current profits and losses when actually incurred.
If the operating lease is changed, the company will treat it as a new leases for accounting from the effective date of the
change, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded
as the amount of new leases receipts.
(3) Sale and leaseback transaction
For the sale and leaseback transaction, the company evaluates and determines whether the asset transfer in the sale and
leaseback transaction belongs to sales in accordance with the Accounting Standards for Business Enterprises No. 14 -
Revenue. If it belongs to sales, the asset purchase and asset disposal shall be subject to accounting treatment in accordance
with the applicable accounting standards; If it does not belong to sales, the transferred asset is not recognized, but a financial
asset equal to the transfer income is recognized.
20.Intangible assets
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.
21. Research and development expenses
The expenditures for internal research and development projects of an enterprise shall be classified into research expenditures
and development expenditures. The research expenditures shall be recorded into the profit or loss for the current period.
The development expenditures shall be capitalized when they satisfy the following conditions simultaneously: It is feasible
technically to finish intangible assets for use or sale; Having the intention to complete the intangible asset and use or sell it;
The usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove
that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market
for the intangible assets itself for the intangible assets will be used internally; It is able to finish the development of the
37
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources
and other resources; Expenditures attributable to the development phase of the intangible assets can be measured reliably.
Development expenditures that do not meet the above conditions are included in the profits and losses of the current period.
After meeting the above conditions, the corresponding projects of the company study their technical feasibility and economic
feasibility, and enter the development stage after the formation of the project.
22. Long-term amortizable expenses
Long-term amortized 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.
23. Impairment of the long-term assets
On balance sheet dates, the Company determines whether there are impairments occurring to fixed assets, construction in
progress, right-of-use asset, 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 less 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 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
38
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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 reversed in the future.
24. Employee compensation
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.
Post-service benefits mainly include defined contribution plan and defined benefit plan. The defined contribution plan mainly
includes basic pension, unemployment insurance etc. The corresponding contributions are recorded in the relevant asset costs
or current profit and loss when incurred.
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 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 record 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 Retained Earnings.
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 obligations relating to contingent events as estimated liabilities if they meet the following
conditions:
A. That obligation is a present obligation of the enterprise;
B. It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
C. A reliable estimate can be made of the amount of the obligation.
The estimated liabilities are initially measured on the basis of the best estimate of the expenditure required to meet the
39
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
relevant current obligations, taking into account factors such as risks, uncertainties and the time value of the currency
associated with contingencies. Where the time value of the currency has a significant impact, the best estimate is determined
by discounting the relevant future cash outflows.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is expected to be
compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain
that the reimbursement will be obtained. Besides, the amount recognized for the reimbursement should not exceed the book
value of the estimated liabilities.
26. Recognition Principles of Revenues
The company recognizes revenue when the contract performance obligations have been fulfilled such as the customer has
gained control over relevant goods or services.
If two or more performance obligations are included in the contract, the company shall, on the commencement date of the
contract, apportion the transaction price to the individual performance obligations according to the relative proportion of the
individual selling prices of the commodities or services promised by the individual performance obligations, and measure
the income according to the transaction price apportioned to the individual performance obligations.
If one of the following conditions is met the company shall be obliged to fulfil its performance obligations over a certain
period; otherwise, it shall be obliged to fulfil its performance obligations at a certain point:
A. the customer simultaneously receives and consumes the benefits provided by the company’s
performance as the company performs; or
B. the company’s performance creates or enhances an asset that the customer controls as the asset is
created or enhanced; or
C. the commodities produced by the company in the course of its performance are irreplaceable and
the company has the right to collect payments for the part of performance that has been completed so far
during the entire contract period.
For performance obligation that is to be fulfilled over a period of time, the company recognizes revenue based on the
performance obligation cannot be reasonably measured, if the cost incurred is expected to be recovered, the revenue shall be
recognized according to the amount of cost incurred, until the progress can be reasonably determined.
For performance obligation that is to be fulfilled at certain point, the company recognizes revenue when the customer gains
control of the relevant goods or services.
（1）Sale of Goods
The company recognizes the realization the revenue sale of the goods when the main risk or reward in the ownership of the
goods has been transferred to the buyer, the right to continue management and actual control over the goods is no longer
exercised, relevant income has been obtained or the proof of receipt has been obtained, and the costs related to the sale of the
40
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
goods can be measured reliably.
Specific Principles of Main Revenues
Specific recognition principle of sales income for the vehicle air conditioners are subdivided into three situations according to
customer groups:
1）Big customers
The main way of cooperation is that the company ships the goods to the designated or cooperative third-party logistics
companies who will be responsible for warehousing and distribution services according to the production requirements of
customers. The customer issues the debit notes according to the actual amount of the production plan monthly, and the
salesmen issue the billing notices according to the customers' bills of lading combined with the customer's consumption,
contract unit price, bill of lading and the like, while the finance department issues invoices to recognize the sales revenues.
2） Customers who pay first and pick up later
According to the customers' demands and relevant billing information, and after the customers pay and confirm the payments,
the salesmen deliver the goods according to the unit prices of the sales contracts and the quantities required by the customers
with the invoice notices, while the finance department issues invoice to complete the transaction.
3） Aftermarket customers
The salesmen ship the goods to the customers according to the contracts and the customers' requirements, and issue the
invoice notices to the customers according to the unit prices and shipment quantities as agreed in the contracts after the
milestones, while and the finance department issues invoices to recognize the sales revenues.
（2）Income from providing services
The company shall recognize the income according to the progress of completed services within a period of time. The
progress of completed services shall be determined according to the proportion of the cost incurred to the total cost. On the
balance sheet date, the Company re-estimates the progress of completed services so as to reflect the change of performance.
When the company confirms revenue according to the progress of completed services, the part that has obtained
unconditional right of collection shall be recognized as receivables, the rest shall be recognized as contract assets, and the
loss reserves shall be recognized based on expected credit loss for receivables and contract assets; If the company has
received or the contract price exceeding the completed labor progress, the excess part will be recognized as the contract
liability. The company shall show the contract assets and liabilities under the same contract in net.
27. Governmental subsidies
Government subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from the government,
not including the capital into which the government invests as an investor who has relevant ownership interest. Government
subsidies are divided into the subsidy related to assets and the other related to earnings. Government subsidies related to
monetary assets will be measured according to the amount received or the amount receivable. Those which related to
non-monetary assets will be measured according to fair value; For any fair value which cannot be reliable to be obtained, the
41
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
assets will be measured according to the nominal amount, and the one measured according to the nominal amount will be
directly counted into the current profits and losses.
Government subsidies can only be recognized when the company is able to meet the conditions attached to government
subsidies and is able to receive government subsidies.
Government subsidies are divided into asset-related government subsidies and income-related government subsidies.
Government subsidies related to assets refer to government subsidies obtained by companies for the purchase, construction or
other formation of long-term assets. Government subsidies related to income refer to government subsidies in addition to
those 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. The government grants pertinent to income that are used to compensate the relevant
costs or losses of the subsequent period of the enterprise are recognized as deferred income and are credited to the current
profit or loss for the period when the relevant costs, expenses or losses are recognized; those government grants used for
compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and
losses.
For the government subsidy which includes both the assets related part and the income related part, the different parts are
treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy related to the income.
Government subsidies related to the daily activities of the company shall be included in other earnings in accordance with the
substance of the economic business. Government subsidies not related to the daily activities of the company shall be included
in the non-operating income and expenditure.
28. Deferred income tax assets/Deferred income tax liability
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
42
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
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.
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.
29. Income tax expenses
Income tax expenses include current income tax and deferred income tax. Except that the adjusted goodwill arising from the
merger of enterprises, or the deferred income tax related to the transaction or event directly included in the owner's equity is
included in the owner's equity, it is included in the profit and loss of the current period as an income tax expense.
The current income tax is the amount of income tax payable in the current period, which is calculated on the basis of the
taxable income of the current period. The amount of taxable income is derived from the corresponding adjustment of the
pre-tax accounting profits for the current year in accordance with the relevant provisions of the tax law.
According to the temporary difference between the book value of assets and liabilities on the balance sheet date and the
taxable basis, the Company uses the balance sheet debt method to recognize deferred income tax.
All taxable temporary differences recognize the relevant deferred income tax liabilities unless the taxable temporary
differences arise in the following transactions: A、The initial recognition of goodwill, or the initial recognition of assets or
liabilities arising from a transaction with the following characteristics: the transaction is not a merger of enterprises, and the
43
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
transaction does not affect neither accounting profits nor taxable income at the time of the transaction; B、For taxable
temporary differences related to investments in subsidiaries, joint ventures and associated enterprises, the timing of the return
of the temporary differences can be controlled and the temporary difference is likely not to be reversed for the foreseeable
future.
For deductible temporary differences, deductible losses and tax credits that can be carried forward in subsequent years, the
company is likely to recognize deferred income tax assets, which arising from limit to deductible temporary differences,
deductible losses and tax credits for future taxable income, unless the deductible temporary difference arises in the following
transactions: A、the transaction is not a merger of enterprises and does not affect neither accounting profits nor taxable
income at the time of the transaction; B、Where the deductible temporary differences related to the investments of
subsidiaries, joint ventures and joint ventures meet the following conditions at the same time, the corresponding deferred
income tax assets shall be confirmed: Temporary differences are likely to turn back in the foreseeable future and are likely to
be used to offset taxable income against temporary differences in the future.
On the balance sheet date, the Company's deferred income tax assets and deferred income tax liabilities are measured at the
applicable tax rate for the period during which the assets are expected to be recovered or the liabilities are liquidated, it also
reflects the income tax impact of the expected recovery of assets or liquidation of liabilities on the balance sheet date.
On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is likely that sufficient
taxable income will not be available in future periods to offset the benefits of deferred income tax assets, the book value of
deferred income tax assets will be written down.
30. Safety in production expenses
According to the relevant provisions of the Notice on Printing and Distributing the Management Measures for the
Withdrawal and Use of Enterprise Safety in Production Expenses (Caiqi [2012] No. 16) issued by the Ministry of Finance
and the State Administration of work safety, the Company withdraws the safety in production expenses according to the
following standards, that is, the actual operating income of the machinery manufacturing enterprise in the previous year is
taken as the basis for withdrawal, and the excess accumulation method is adopted to withdraw them month by month
according to the following standards:
(1) If the operating income does not exceed 10 million yuan, it shall be withdrawn according to 2%;
(2) The part of operating income exceeding 10 million yuan to 100 million yuan shall be withdrawn at 1%;
(3) The part of operating income exceeding 100 million yuan to 1 billion yuan shall be withdrawn at 0.2%;
(4) The part of operating income exceeding 1 billion yuan to 5 billion yuan shall be withdrawn at 0.1%;
(5) The part of operating income exceeding 5 billion yuan at 0.05%.
The safety in production expenses shall be included in the cost of relevant products or current profits and losses when
withdrawn, and shall be included in the special reserve.
44
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
When the withdrawn work safety fee is used within the specified scope, if it belongs to expense expenditure, it shall be
directly offset against the special reserve; If fixed assets are formed, the expenses incurred are collected through the
"construction in progress" subject, and are recognized as fixed assets when the safety project is completed and reaches the
expected usable state; At the same time, the special reserve shall be offset according to the cost of forming fixed assets, and
the accumulated depreciation of the same amount shall be recognized. The fixed assets will not be depreciated in future
periods.
31. Other Main Accounting Policies and Estimates
（1）Discontinued Operation
Discontinued operation refers to the components of an enterprise that meet one of the following conditions and can be
distinguished separately, and the component has been disposed of or classified as holding for sale:
1)This component represents an independent major business or a separate major area of operation;
2)This component is part of an associated plan to dispose of an independent major business or a separate major area of
operation;
3)This component is a subsidiary acquired specifically for resale.
For accounting method of Discontinued Operation, please refer to relevant description of Notes III.13 “Held-for-sale assets”.
32. Changes in Major Accounting Policies and Estimations
（1）Changes in Major Accounting Policies
1)New leases standards
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 21 - leases (Caikuai [2018]
No. 35) (hereinafter referred to as the "new leases standards") on December 7, 2018. The Company will implement the new
leases standards from January 1, 2021. According to the relevant provisions of the new leases standards, the company adjusts
the amount of retained earnings and other relevant items in the financial statements at the beginning of the year when the
standards are first implemented for the cumulative impact of the first implementation of the standards, and does not adjust the
information of comparable periods.
The first implementation of the above new standards has no impact on the beginning retained earnings and related items of
the financial statements.
2)Change of other accounting policies
None.
(2) Change of accounting estimations
There were no changes of main accounting estimations during this period.
45
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
IV.Taxation
1. Major tax types and tax rates applicable to the Company
Taxes Basis of tax assessment Tax rate %
Value-added tax (VAT) Incomes should be taxed. 13、9、6
Levied based on the actual payment of business tax, VAT and
Education surcharges 3
consumption tax
Local education Levied based on the actual payment of business tax, VAT and
2
surcharges consumption tax
Urban maintenance and Levied based on the actual payment of business tax, VAT and
7
construction tax consumption tax
Enterprise income tax Levied based on the taxable income 15、25
Note：
（1）Chongqing Jianshe Automobile A/C Co., Ltd. by high and new technology enterprise qualification on November 21,
2019, acquire the qualification of new high-tech enterprises, Certificate No. GR201951100777, valid for three years. The
company calculates and pay enterprise income tax shall be levied at the reduced tax rate 15% from 2020 to 2022.
（2）The tax rebate for export of a company shall be exempted from deductions and the tax rebate rate shall be 13%.
V. Notes to the items of consolidated financial statements
1. Cash and cash equivalents
Items 2021.12.31 2020.12.31
Cash on hand 5,418.26
Bank deposits 23,738,523.19 79,304,835.29
Other monetary assets 67,940,000.00 80,032,987.92
Total 91,678,523.19 159,343,241.47
Including: Overseas deposits
46
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Note: The closing balance of other monetary assets of the company is 67,940,000.00 Yuan, including guarantee deposit of
27,940,000.00 Yuan and fixed deposit of 40,000,000.00 Yuan; the opening balance is 80,032,987.92 yuan, including
guarantee deposit of 40,032,987.92 Yuan and fixed deposit of 40,000,000.00 Yuan. The above amount of other monetary
assets is not regarded as cash and cash equivalents due to restrictions on use.
2. Notes receivable
(1) Notes receivable：
2021.12.31
Items
Book Balance Bad debts Reserves Book value
Bank Acceptance 2,220,000.00 2,220,000.00
Trade Acceptance
Total 2,220,000.00 2,220,000.00
&
2020.12.31
Items
Book Balance Bad debts reserves Book value
Bank Acceptance 65,509,530.50 65,509,530.50
Trade Acceptance 1,039,000.00 1,039,000.00
Total 66,548,530.50 66,548,530.50
(2) Provision for bad debts：
For notes receivable, whether or not there is a material financing component, the company will measure the loss in
accordance with the estimated credit loss throughout the duration.
1) Band Acceptance
The company measured the loss in accordance with the expected credit loss throughout the duration on December 31st 2021.
All the bank`s acceptance bills would not bring credit risk to the company even if there were default by banks or other
drawers. So, the company did not withdraw the expected credit impairment loss on the bank acceptance bill.
2) Trade Acceptance
None.
47
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
3. Accounts receivable
（1）Accounts receivable measured by amortized cost
2021.12.31 2020.12.31
Book Balance Bad debts Book value Book Balance Bad debts Book value
reserves reserves
Account 184,917,114.30 35,583,828.66 149,333,285.64 256,413,808.79 35,027,355.89 221,386,452.90
receivable
Total 184,917,114.30 35,583,828.66 149,333,285.64 256,413,808.79 35,027,355.89 221,386,452.90
（2）Bad debts reserves
No matter whether there is a significant financing component or not, the company count bad debts reserves for account
receivable according to the entire duration of the estimated credit loss.
① Bad Debt Reserves-single allotment amount on Dec 31st 2021,
Estimated credit
Bad debts
Book balance loss rate Reason
reserves
during the period
Chongqing Hyosow
12,723,992.31 100.00 12,723,992.31 Unable to recover
Auto parts Co., Ltd.
Chongqing Bisuyunbo
5,217,475.35 100.00 5,217,475.35 Unable to recover
Technology Co., Ltd.
Harbin Hafei Automobile
3,999,944.43 100.00 3,999,944.43 Unable to recover
Industry Group Co., Ltd.
Chongqing Kaite Dynamic
1,481,654.59 100.00 1,481,654.59 Unable to recover
Technology Co., Ltd.
Guangqi Jiao Automobile Co.,
75,821.20 100.00 75,821.20 Unable to recover
Ltd. Luqiao Branch
Guangqi Jiao Automobile Co., 48,579.85 100.00 48,579.85 Unable to recover
48
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Ltd. Dongying Branch
Hangzhou Fuyang Instrument
2,821,287.26 100.00 2,821,287.26 Unable to recover
Co., Ltd.
Guangqi Jiao Automobile Co.,
67,998.51 100.00 67,998.51 Unable to recover
Ltd.
Hubei Zotye Automobile Co.,
1,408,811.40 100.00 1,408,811.40 Unable to recover
Ltd.
Baic black leopard (Weihai)
51,021.77 100.00 51,021.77 Unable to recover
Automobile Co., Ltd.
Sichuan Yema Automobile Co.,
12,157.93 100.00 12,157.93 Unable to recover
Ltd.
Jiangxi Zhipin Automobile Co., Unable to recover
750,000.00 100.00 750,000.00
Ltd. Jingdezhen Branch
Jiangxi Zhipin Automobile Co., Unable to recover
7,477.79 100.00 7,477.79
Ltd.
Total 28,666,222.39 28,666,222.39
②Balance of bad debts reserves：
Portfolio——Aging
Estimated credit
Book Balance loss rate during the Bad debts reserves
period
1-6 months 140,518,929.68 -
6 months to 1 year 8,680,937.60 5.00 434,046.88
1 to 2 years 572,989.71 10.00 57,615.34
2 to 3 years 61,990.38 30.00 18,597.11
3 to 4 years 8,592.69 50.00 4,296.35
49
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
4 to 5 years 22,006.29 80.00 17,605.03
Over 5 years 6,385,445.56 100.00 6,385,445.56
Total 156,250,891.91 6,917,606.27
③The changes of bad debts reserves:
Increase Reduce
Increased of
Items 2021.01.01 2021.12.31
Recovery or Elimination
Enterprise Provision
reversal or write-off
Combination
Bad debts
35,027,355.89 756,472.77 200,000.00 35,583,828.66
Reserves
④Significant reversal or write-off of bad debt provision for the current period:
Amount of reversal or
Company Reason
write-off
Chongqing Bisuyunbo Technology Co., Ltd. 179,300.00 Recovered
Baic Yinxiang Automobile Co., Ltd. Recovered
20,700.00
Total 200,000.00
Note: The amount above of bad debts reserves which was fully withdrawn according to the independent provision for
expected credit loss in the previous year, and in the current year, the provision for bad debts was switched back by recovery.
⑤Actual write-off amount of account receivable through the duration：
There were no accounts receivable actually write-off through the duration.
(3) Top five of account receivable classified by company：
The amount of top five account receivable classified by company throughout this duration is 123,121,804.13Yuan,
accounting for 66.58% of the whole account receivable at end of term. The provision of bad debts is 13,145,348.96 Yuan at
the end of duration.
50
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Amount pf Proportion of total Amount of ending balance
Company Name Aging
ending balance accounts receivable % for bad debts
Within 6
PSA Group 69,838,691.30 months、6 37.77 421,356.65
months to 1 year
Chongqing Changan
15,225,677.65 1-6 months
8.23
Auto Co., Ltd.
Chongqing Huansu
12,723,992.31 Over 3years 12,723,992.31
6.88
Auto Co., Ltd.
Zhejiang Yuanjing
12,672,995.21 1-6 months
6.85
Auto Co., Ltd.
Great Wall Motor Co.,
Ltd. Chongqing 12,660,447.66 1-6 months 6.85
Yongchuan Branch
Total 123,121,804.13 66.58 13,145,348.96
4．Financing receivables
Items 2021.12.31
Notes receivable measured at fair value with changes
29,250,840.86
included in other comprehensive income
Accounts receivable measured at fair value with changes
included in other comprehensive income
Total 29,250,840.86
The company discounts or endorses bank acceptance bills in its daily fund management. The business model of management
takes both the receipt of contract cash flow as the goal and the sale as the goal. It is classified as financial assets measured at
fair value and whose changes are included in other comprehensive income and reported as financing receivables.
(1) Bad debts reserves
For notes receivable measured at fair value and whose changes are included in other comprehensive income, the acceptor of
51
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
bank acceptance bill is a commercial bank. Because the commercial bank has high credit, short term and low possibility that
the bank acceptance bill will not be paid at maturity, the credit reduction will not be withdrawn. However, if such bills are not
paid when due, the company will still be jointly and severally liable to the holders in accordance with the provisions of the
Law of the People's Republic of China on Negotiable Instruments.
5．Advances to suppliers
（1）Presentation of Prepayments by aging
2021.12.31 2020.12.31
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 6,871,577.60 95.06 8,133,267.52 95.24
1-2 years 127,554.40 1.76 176,700.00 2.07
2 to 3 years 169,785.97 1.99
Over 3 years 229,348.93 3.18 59,562.66 0.70
Total 7,228,480.93 100.00 8,539,316.15 100.00
（2）The top five prepayments by the debit balance as at December 31, 2021
Relations with the Proportion Reason for
Company Name Amount Aging
Company % of total non-settle
prepaid accounts
Huayang（Shanghai）trade Co., non-arrival
Non-related party 1,651,000.00 22.84 Within 1 year
accounts
Ltd. settlement period
Chongqing Jiantao Aluminum non-arrival
Non-related party 1,445,875.00 20.00 Within 1 year
Co., Ltd. settlement period
Chongqing Bangzhou import non-arrival
Non-related party 1,420,000.00 19.64 Within 1 year
and export trade Co., Ltd. settlement period
Chengdu Chuanxing non-arrival
Non-related party 424,417.01 5.87 Within 1 year
Technology Industry Co., Ltd. settlement period
Chongqing Qifu Machinery non-arrival
Non-related party 358,938.94 4.97 Within 1 year
Co., Ltd. settlement period
Total 5,300,230.95 73.32
52
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
6．Other receivables
Items 2021.12.31 2020.12.31
Interest receivable
Dividends receivable
Other receivables 1,431,664.33 1,253,612.91
Total 1,431,664.33 1,253,612.91
(1) Disclosure of other receivables by category
2021.12.31 2020.12.31
Book Balance Provision for Book Value Book Balance Provision for Book Value
bad debts bad debts
Other receivable with
significant single
amount and provision 2,364,944.99 2,364,944.99 2,364,944.99 2,364,944.99
for bad debt made on
an individual basis
Other receivable with
provision for bad
debt made on a
5,319,771.74 3,888,107.41 1,431,664.33 5,379,862.00 4,126,249.09 1,253,612.91
portfolio with similar
risk credit
characteristics basis
Total 7,684,716.73 6,253,052.40 1,431,664.33 7,744,806.99 6,491,194.08 1,253,612.91
① Provision for bad debts
A. Provision for bad debts of other accounts receivable at the first stage on December 31, 2021：
53
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Estimated credit loss Provision for bad
Balance value Reason
in the next 12months debts
Provision in groups:
Group 1: aging 5,319,771.74 73.09 3,888,107.41 Recyclability
Group 2: Individually determined
Others
Total 5,319,771.74 73.09 3,888,107.41
B. Provision for bad debts of other accounts receivable at the third stage on December 31, 2021
Estimated credit loss Provision for bad
Balance value Reason
in the next 12 months debts
Single provision
Pending quality inspection, Exhibition
163,394.48 100.00 163,394.48 Unable to recover
products
Temporary supplier 390,655.08 100.00 390,655.08 Unable to recover
Chongqing Yiqun Trade Co., Ltd. 91,900.00 100.00 91,900.00 Unable to recover
Deposit of workers` salary from
Chongqing Huachuang Tech Building 88,000.00 100.00 88,000.00 Unable to recover
construction project
Chongqing Jinxiang Hoisting Equipment
16,800.00 100.00 16,800.00 Unable to recover
Manufacturing Co., Ltd.
Yangzhou Qionghua Coating Equipment
56,500.00 100.00 56,500.00 Unable to recover
Co., Ltd.
China Customs (Chongqing) 78,825.36 100.00 78,825.36 Unable to recover
Chongqing Jianshe lijue Industrial Co.,
1,478,870.07 100.00 1,478,870.07 Unable to recover
Ltd.
Total 2,364,944.99 100.00 2,364,944.99
②The moving of provision for bad debts
54
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
First stage Second stage Third stage
Estimated credit Estimated credit loss Estimated credit loss
Provision for bad debts Total
loss in the next throughout the duration throughout the duration
12 months (no credit loss) (credit loss)
Balance value on Jan 1st
4,126,249.09 2,364,944.99 6,491,194.08
2021
In the Reporting Period,
carrying amount of other
4,126,249.09 2,364,944.99 6,491,194.08
receivables on 1 January
2021
—transfer to the first
stage
—transfer to the
second stage
—transfer to the
third stage
Provision throughout the
duration
Reversal during the
238,141.68 238,141.68
period
Elimination during the
period
Write off during the
period
Others (Increased of
enterprise combination)
Balance value as at Dec
3,888,107.41 2,364,944.99 6,253,052.40
31st 2021
55
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
③Classification of other receivables:
Item 2021.12.31 2020.12.31
Petty cash, guarantee deposit, social security fee, etc. 1,431,664.33 1,254,002.09
Bad debts have been fully charged for long-term
6,253,052.40 6,490,804.90
transactions
Total 7,684,716.73 7,744,806.99
④The top five other receivables by the debit balance as at December 31, 2021：
Whether Proportion % of Ending
it is Business Ending total other receivables balance for
Company Name Aging
related nature balance bad-debt
party provision
Shenzhen Jianshe motorcycle Co., Ltd. No Trading 3,013,664.00 Over 5 years 39.22 3,013,664.00
Chongqing Jianshe Lijue Industrial Co., 1-2 years、2-3
Yes Trading 1,478,870.07 19.24 1,478,870.07
Ltd. years
Agency of Ningbo Jianshe No Trading 692,035.31 Over 5 years 9.01 692,035.31
Chongqing Hanon Jianshe Automotive
Yes Trading 640,407.92 Within 1 year 8.33
Thermal Systems Co., Ltd.
Temporary supplier No Trading 390,655.08 Over 5 years 5.08 390,655.08
Total — 6,215,632.38 80.88 5,575,224.46
7. Inventories
（1）Category of Inventory
2021.12.31
Provision for
Item
Book balance inventory Book value
impairment
56
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
2021.12.31
Provision for
Item
Book balance inventory Book value
impairment
Raw materials 24,131,134.23 24,131,134.23
Work in progress 8,477,431.32 42,930.77 8,434,500.55
Finished goods 173,420,234.47 2,170,864.12 171,249,370.35
Turnover materials 4,198,620.71 1,294,020.05 2,904,600.66
Total 210,227,420.73 3,507,814.94 206,719,605.79
&
2020.12.31
Provision for
Item
Book balance inventory Book value
impairment
Raw materials 21,059,315.45 1,396.55 21,057,918.90
Work in progress 6,915,376.31 210,319.10 6,705,057.21
Finished goods 141,445,525.10 3,387,974.33 138,057,550.77
Turnover materials 4,636,544.84 1,311,084.94 3,325,459.90
Total 174,056,761.70 4,910,774.92 169,145,986.78
（2）Provision for Inventory
Decrease in current
Increase in current period
period
Item 2021.01.01 2021.12.31
Switch back or
Accrual Other Other
write-off
Raw materials 1,396.55 1,396.55
Work in progress 210,319.10 167,388.33 42,930.77
57
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Finished goods 3,387,974.33 1,217,110.21 2,170,864.12
Turnover materials 1,311,084.94 17,064.89 1,294,020.05
Total 4,910,774.92 1,402,959.98 3,507,814.94
（3）Notes of provision for Inventory and the reasons for charging off or write-off
The reason for switching
Details of provision for The Reason for writing off
Items back provision for
inventory provision for inventory
inventory
Damaged very seriously, estimated
Raw materials net value is lower than its book Sale or disposal
cost.
Estimated net value is lower than its
Work in progress Sale or disposal
book cost.
Estimated net value is lower than its
Finished goods Sale or disposal
book cost.
8. Held-for-sale assets
Reasons and
2021.12.31 Estimated Estimated
Items
Fair value methods of Division
Book value selling expenses time of sale
sale
Non-current assets 104,982,996.11 169,862,600.00
130,000.00 Transfer Year 2022 Headquarters
Held-for-sale assets
Including：Fixes assets 91,236,342.06 106,511,000.00 Headquarters
Land use 13,746,654.05 63,351,600.00 Headquarters
Total 104,982,996.11 169,862,600.00
Note: the company's asset transfer project went through three rounds of listing in Chongqing United
Property and Equity Exchange from November 2, 2021 to February 9, 2022. The company received the
notice of transaction results from Chongqing United Property and Equity Exchange on February 10, 2022
(the day after the expiration of the third round of listing), and finally determined Chongqing Jianshe
Industry (Group) Co., Ltd. as the transferee of the transfer project, Chongqing Jianshe Industry (Group)
Co., Ltd. agreed to transfer the listed assets at the listed price of 152.88 million yuan (including tax). On
February 15, 2022, both parties signed the asset transaction contract for the overall transfer project of
58
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
housing, land use right, aboveground structures and waste equipment of Chongqing Jianshe Automobile
System Co., Ltd. in Chongqing. According to the asset trading contract, Chongqing Jianshe Industry
(Group) Co., Ltd. has paid all the transfer price and service fee to Chongqing United Property and Equity
Exchange at one time on schedule. Chongqing United Property and Equity Exchange transferred the
transaction price of 152.88 million yuan of the listed transferred assets to the designated account of the
company on February 22, 2022.
9. Other current assets
Item 2021.12.31 2020.12.31
Overpaid VAT 4,585,170.16 3,396,186.56
Total 4,585,170.16 3,396,186.56
10. Long-term equity investments
（1）Classification of Long-term equity investments
Increase in current Decrease in current
Item 2021.01.01 2021.12.31
period period
Investment on subsidiaries
Investment on joint ventures 186,213,719.02 15,770,549.70 201,984,268.72
Investment on associate
company
Total 186,213,719.02 15,770,549.70 201,984,268.72
Less: provision for impairment
of long-term equity
investments
Total 186,213,719.02 15,770,549.70 201,984,268.72
（2）Details of Long-term equity investments
Increase/decrease in 2021 (+/-)
Balance as at
January 1, Profits and losses
Investee Other
Decrease in on investments
2020 Additional Changes in
investment Recognized
investment other equity
under the equity comprehensive
method
59
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
income
一、Joint ventures
Chongqing
Jianshe
186,213,719.02 15,770,549.70
Hanon Co., Ltd.
Total 186,213,719.02 15,770,549.70
&
Increase/decrease in 2021 (+/-) Balance as at
Balance as at December 31,
Investee December 31, 2021 2021 of provision
Declaration of Preparing for for impairment
impairment Others
cash dividends or
provision
profits
一、Joint ventures
Chongqing Jianshe
201,984,268.72
Hanon Co., Ltd.
Total 201,984,268.72
11. Other non-current financial assets
Item 2021.12.31 2020.12.31
Financial assets which measured in fair
value and the changes regarded as current 1,140,915.04 1,140,915.04
period profit and loss
Including: Investment on Ningbo Jianshe
1,140,915.04 1,140,915.04
Investment Company
Provision for impairment 1,140,915.04 1,140,915.04
Total
12. Investment properties
(1) Investment properties with cost measurement method
House、 Construction in
Item Land use rights Total
Building process
60
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
House、 Construction in
Item Land use rights Total
Building process
I. Original price
1. Opening balance 36,808,839.38 36,808,839.38
2.Increase in the current period
(1) Purchase
(2) Transferred from construction in progress
(3) Increased of Enterprise Combination
3、Decreased amount of the period 36,808,839.38 36,808,839.38
（1）Disposal
（2）Other transfer 36,808,839.38 36,808,839.38
4、Closing balance
Ⅱ. Accumulated depreciation and
accumulated amortization
1、Opening balance 13,765,440.86 13,765,440.86
2、Increase in the current period 595,076.28 595,076.28
（1）Provision or amortization 595,076.28 595,076.28
（2）Transfer from fixed assets
3、Decreased amount of the period 14,360,517.14 14,360,517.14
（1）Disposal
（2）Other transfer 14,360,517.14 14,360,517.14
4、Balance at period-end
Ⅲ. Provisions for impairment
1、Opening balance
2、Increase in the current period
（1）Provision
61
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
House、 Construction in
Item Land use rights Total
Building process
3、Increase in the current period
（1）Disposal
（2）Other transfer
4、Balance at period-end
Ⅳ. Book value
1、Book value of the period-end
2、Book value of the period-begin 23,043,398.52 23,043,398.52
Note：In this period of investment properties, leasing value of housing buildings decreased
36,808,839.38 Yuan, and it moved from investment properties to fixed assets.
13. Fixed assets
Item 2021.12.31 2020.12.31
Fixed assets 216,541,481.98 310,131,438.69
Fixed assets to be disposed of
Total 216,541,481.98 310,131,438.69
(1) Fixed assets and accumulated depreciation
① Fixed assets situation
House, Machinery Other
Item Transportations Total
Building equipment equipment
Ⅰ、Original price
1、Opening balance 218,170,188.82 627,702,493.86 6,142,962.99 19,340,924.12 871,356,569.79
2、Increase in the current
39,053,913.41 13,432,254.07 463,361.48 531,255.00 53,480,783.96
period
（1）Purchase 1,879,936.41 12,921,865.08 463,361.48 475,125.39 15,740,288.36
（2）Transferred from 37,173,977.00 510,388.99 56,129.61 37,740,495.60
62
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
House, Machinery Other
Item Transportations Total
Building equipment equipment
construction in progress
（3） Increased of Enterprise
Combination
（4） others
3、Decreased amount of the
154,528,124.05 13,700,826.87 537,472.58 195,249.71 168,961,673.21
period
（1）Disposal 154,528,124.05 13,700,826.87 537,472.58 195,249.71 168,961,673.21
（2）Decreased of Enterprise
Combination
（3）Transferred to investment
properties
4、Closing balance 102,695,978.18 627,433,921.06 6,068,851.89 19,676,929.41 755,875,680.54
Ⅱ、Accumulated depreciation
1、Balance at period-beginning 94,839,368.95 428,951,260.80 5,490,965.17 17,582,940.09 546,864,535.01
2 、 Increase in the current
21,652,848.62 25,192,281.42 174,105.25 528,162.38 47,547,397.67
period
（1）Provision 7,292,331.48 25,192,281.42 174,105.25 528,162.38 33,186,880.53
（2）Increased of Enterprise
Combination
（3）Transferred from
14,360,517.14 14,360,517.14
construction in progress
（4）Others
3 、 Decrease in the current
62,354,666.95 4,766,560.62 429,216.74 155,459.94 67,705,904.25
period
（1）Disposal 62,354,666.95 4,766,560.62 429,216.74 155,459.94 67,705,904.25
（2）Decreased of Enterprise
Combination
（3）Transferred to investment
63
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
House, Machinery Other
Item Transportations Total
Building equipment equipment
properties
4、Balance at period-end 54,137,550.62 449,376,981.60 5,235,853.68 17,955,642.53 526,706,028.43
Ⅲ、Provisions for impairment
1、Balance at period-beginning 14,360,596.09 14,360,596.09
2 、 Increase in the current
period
（1）Provision
（2）Increased of Enterprise
Combination
3 、 Decrease in the current
1,732,425.96 1,732,425.96
period
（1）Disposal 1,732,425.96 1,732,425.96
（2）Decrease of Enterprise
Combination
4、Balance at period-end 12,628,170.13 12,628,170.13
Ⅳ、Book Value
1、Book Value of period-end 48,558,427.56 165,428,769.33 832,998.21 1,721,286.88 216,541,481.98
2、Book Value of period-begin 123,330,819.87 184,390,636.97 651,997.82 1,757,984.03 310,131,438.69
Note: As at December 31, 2021, the company didn’t occur the situation of leasing fixed assets through financial lease
method.
The original value of 36,808,839.38 Yuan of housing buildings are converted from investment properties to fixed assets,
which caused roll-in corresponding accumulated depreciation of 14,360,596.09Yuan.
14. Construction in progress
Item 2021.12.31 2020.12.31
Construction in progress 1,811,125.46 1,871,241.59
Material holds for construction of fixed assets
64
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Total 1,811,125.46 1,871,241.59
（1）Information of construction in progress
2021.12.31 2020.12.31
Item Provisions for Provisions for
Book balance Book value Book balance Book value
impairment impairment
Science and technology
615,980.77 615,980.77 615,980.77 615,980.77
complex building project
Assembly line system project 461,185.83 461,185.83
Production line project 645,678.17 645,678.17 367,924.53 367,924.53
Mould to be transferred to
371,283.18 371,283.18 426,150.46 426,150.46
fixed assets
PDM system upgrade project 53,935.55 53,935.55
Comprehensive performance
69,026.55 69,026.55
test-bed
2021 workstation computer
55,221.24 55,221.24
and desktop computer project
Total 1,811,125.46 1,811,125.46 1,871,241.59 1,871,241.59
(2) Changes of important construction in progress during the period
Source of Paid accounting for the Progress of
Progress name Budget
fund budget % project %
Production line project 18,620,000.00 Self-funding 3.46 3.46
Science and technology complex building 4,427,877.00 Self-funding 91.20 99.66
project
Assembly line system project 790,000.00 Self-funding 98.87 100.00
&
Process name Increase in the period Decrease in the period 2021.12.31
2021.1.1
65
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Including: Including:
Transfer to fixed Other
Beginning
Amount capitalization Closing balance capitalization of
assets decrease
balance
of interest interest
Production line
367,924.53 277,753.64 645,678.17
project
Science and
technology complex 615,980.77 615,980.77
building project
Assembly line
461,185.83 319,924.53 781,110.36
system project
Total 1,445,091.13 597,678.17 781,110.36 1,261,658.94
15. Intangible assets
Non-patented
Item Land use Patent right Total
Software
technology
Ⅰ、Original book value
1、Opening balance 42,126,408.29 1,880,957.69 2,691,549.96 46,698,915.94
2、Increase in the current period 2,052,791.71 2,052,791.71
（1）Purchase 2,052,791.71 2,052,791.71
（2）Internal R & D
（3）Increased of Enterprise Combination
（4）Others
3、Decrease in the current period 20,902,264.96 20,902,264.96
（1）Disposal 20,902,264.96 20,902,264.96
（2）Decrease of Enterprise Combination
4、Closing balance 21,224,143.33 3,933,749.40 2,691,549.96 27,849,442.69
Ⅱ、Accumulated amortization
1、Balance at period-begin 18,191,424.21 965,108.29 158,326.47 19,314,858.97
2、Increase in the current period 1,126,303.72 508,272.46 474,979.41 2,109,555.59
66
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Non-patented
Item Land use Patent right Total
Software
technology
（1）amortization 1,126,303.72 508,272.46 474,979.41 2,109,555.59
（2）Increase of enterprise combination
（2）Others
3、Decrease in the current period 7,155,610.91 7,155,610.91
（1）Disposal 7,155,610.91 7,155,610.91
（2）Decrease of enterprise combination
4、Balance at period-end 12,162,117.02 1,473,380.75 633,305.88 14,268,803.65
Ⅲ、Provisions for Impairment
1、Balance at period-begin
2、Increase in the current period
（1）Provision
3、Decrease in the current period
（1）Disposal
4、Balance at period-end
Ⅳ、Book Value
1、Book Value of period-end 9,062,026.31 2,460,368.65 2,058,244.08 13,580,639.04
2、Book Value of period-begin 23,934,984.08 915,849.40 2,533,223.49 27,384,056.97
16. Long-term prepaid expenses
Other
Increase in Amortization
Decrease in Reason for
Item 2021.01.01 the current in the current 2021.12.31
the current other decrease
period period
period
SlidDworks
24,750.00 140,094.34 47,865.57 116,978.77
service charge
Total 24,750.00 140,094.34 47,865.57 116,978.77
17. Deferred income tax assets and deferred income tax liability
67
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(1) Deferred income tax assets not wrote off
2021.12.31 2020.12.31
Item Deferred income Deductible temporary Deferred income tax Deductible temporary
tax assets differences assets differences
Provisions for
impairment in 5,229,979.37 34,862,886.80 5,177,039.68 34,306,803.21
credit
Provisions for
impairment in 830,638.62 4,522,840.65 1,097,038.44 5,955,882.88
assets
Total 6,060,617.99 39,385,727.45 6,274,078.12 40,262,686.09
（2）Deferred income tax liability not wrote off
2021.12.31 2020.12.31
Taxable
Taxable
Item Deferred income temporary Deferred income tax
temporary
tax liability differences liability
differences
Estimated added
value of assets not
1,170,509.17 4,682,036.67 1,520,765.13 6,083,060.52
under the same
control
Tax deduction for
depreciation of 352,809.65 1,411,238.58 387,786.38 1,551,145.52
fixed assets
Total 1,523,318.82 6,093,275.25 1,908,551.51 7,634,206.04
(3) Details of the un-recognized deferred income tax assets
Item 2021.12.31 2020.12.31
Deductible temporary differences 19,728,053.72 21,668,149.93
Tax deductible losses 258,870,633.26 190,208,959.14
68
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Item 2021.12.31 2020.12.31
Total 278,598,686.98 211,877,109.07
Note: Because the amount of taxable income is uncertain in the future, the Company's deductible temporary differences and
deductible losses weren’t recognized as deferred income tax assets.
(4) Deductible losses of unrecognized deferred income tax assets shall be due in the following years:
Year 2021.12.31 2020.12.31 Notes
2021 1,176,802.39
2022
2023 850,355.91 850,355.91
2024 145,565,134.28 145,565,134.28
2025 42,616,666.56 42,616,666.56
2026 68,661,674.12
Total 257,693,830.87 190,208,959.14
18. Other non-current assets
Item 2021.12.31 2020.12.31
Prepayment of long - term assets 3,810,800.00 2,141,443.59
Total 3,810,800.00 2,141,443.59
19. Short-term borrowings
（1）Classification of short-term borrowings
Item 2021.12.31 2020.12.31
Credit borrowings 273,250,000.00 170,410,000.00
Guaranteed borrowings 220,210,000.00 383,500,000.00
Mortgaged borrowings
Pledge loan
Total 493,460,000.00 553,910,000.00
Notes：
69
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Annual
Terminatio Ending
lending institution Starting date interest Guarantor
n date balance
rate
China South Industries Group
2021/2/25 2022/2/25 4.35% Credit borrowings 30,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/6/16 2022/6/16 3.92% Credit borrowings 20,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/7/7 2022/7/7 4.35% Credit borrowings 20,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/9/17 2022/9/17 4.35% Credit borrowings 20,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/10/20 2022/10/20 4.35% Credit borrowings 10,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/11/15 2022/11/15 3.92% Credit borrowings 30,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/11/18 2022/11/18 4.35% Credit borrowings 28,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/11/22 2022/11/22 4.35% Credit borrowings 30,000,000.00
Finance Co., Ltd.
China South Industries Group
2021/12/2 2022/12/2 4.35% Credit borrowings 55,790,000.00
Finance Co., Ltd.
China South Industries Group
2021/12/8 2022/3/8 4.35% Credit borrowings 5,960,000.00
Finance Co., Ltd.
China South Industries Group
2021/12/13 2022/12/13 4.35% Credit borrowings 23,500,000.00
Finance Co., Ltd.
Business department of Chongqing Jianshe
Chongqing rural commercial 2021/1/15 2022/1/14 4.57% Vehicle System Co., 17,710,000.00
bank Ltd.
Chongqing Jiulongpo branch Chongqing Jianshe
of Bank of China 2021/3/5 2022/3/4 4.57% Vehicle System Co., 50,000,000.00
Ltd.
Jiulongpo branch of 2021/4/9 2022/4/8 4.50% Chongqing Jianshe 20,000,000.00
70
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Chongqing Bank Vehicle System Co.,
Ltd.
Jiulongpo branch of Chongqing Jianshe
Chongqing Bank 2021/4/23 2022/4/22 4.50% Vehicle System Co., 25,490,000.00
Ltd.
Jiulongpo branch of Chongqing Jianshe
Chongqing Bank 2021/5/13 2022/5/12 4.50% Vehicle System Co., 34,500,000.00
Ltd.
Jiulongpo branch of Chongqing Jianshe
Chongqing Bank 2021/6/11 2022/6/9 4.57% Vehicle System Co., 20,000,000.00
Ltd.
Chongqing Jianshe
Chongqing Branch of China
2021/9/17 2022/9/17 4.35% Vehicle System Co., 10,000,000.00
Everbright Bank Co., Ltd.
Ltd.
Chongqing Jianshe
Jiulongpo branch of
2021/12/9 2022/6/23 4.50% Vehicle System Co., 17,496,500.00
Chongqing Bank
Ltd.
Jiulongpo branch of Chongqing Jianshe
Chongqing Bank 2021/12/14 2022/6/23 4.50% Vehicle System Co., 25,013,500.00
Ltd.
20. Notes payable
Item 2021.12.31 2020.12.31
Bank Acceptance 160,670,000.00 110,020,000.00
Trade Acceptance
Total 160,670,000.00 110,020,000.00
21. Accounts payable
(1) Presentation of Accounts payable
Aging 2021.12.31 2020.12.31
71
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Within 1 year 186,738,613.09 284,998,378.45
1-2 years 1,219,209.52 1,837,069.84
2-3 years 530,450.87 0.08
Over 3 years 1,804,170.65 1,967,798.70
Total 190,292,444.13 288,803,247.07
(2) Significant accounts payable for over 1 year.
Reason for unreimbursed or
Item Ending balance
transferred
Chongqing Mingxin Machinery Manufacturing Co.,
467,379.08 Not settled
Ltd.
Xi'an Servo Motor Co., Ltd. 423,560.91 Not settled
Chongqing mechanical and electrical design and
375,000.00 Not settled
Research Institute
Shenzhen Jiuzheng mould Co., Ltd. 354,276.00 Not settled
Wuxi Lanli Machine Tool Co., Ltd. 198,100.00 Not settled
Total 1,818,315.99
22. Contract liabilities
Item 2021.12.31 2020.12.31
Contract liabilities 2,868,604.98 1,479,711.62
Less: contract liabilities that
are included in non-current
liabilities
Total 2,868,604.98 1,479,711.62
&
Item 2021.12.31 2020.12.31
72
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Advance for manufactured
2,868,604.98 1,479,711.62
products
Total 2,868,604.98 1,479,711.62
23. Payroll Payable
（1）Presentation of Payroll Payable
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Short-term remuneration 8,802,162.43 98,061,162.79 101,055,710.73 5,807,614.49
Post-employment benefits -
7,076,035.45 6,175,613.37 10,232,623.88 3,019,024.94
defined contribution plans
Dismissal welfare 12,549,204.96 127,500.00 558,821.50 12,117,883.46
Other benefits due within one year
Others
Total 28,427,402.84 104,364,276.16 111,847,156.11 20,944,522.89
（2）Presentation of short-term compensation
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
1、Salary, bonus, allowance and
5,174,763.88 72,839,514.14 75,060,788.14 2,953,489.88
subsidy
2、Employee benefits 1,097,945.30 5,859,144.24 6,957,089.54
3、Social insurance expenses 1,446,984.41 9,337,304.60 9,535,033.68 1,249,255.33
Including: medical insurance premium 1,161,051.67 8,925,773.37 8,889,017.52 1,197,807.52
Work-related injury insurance premium 285,932.74 411,531.23 646,016.16 51,447.81
Maternity insurance premium
4、Housing fund 380,205.46 7,272,033.00 7,301,520.00 350,718.46
5、Labor union expenditures and
702,263.38 2,050,091.19 1,693,203.75 1,059,150.82
employee education expenses
73
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
6、Short-term absence
with payment
7、Short-term profit
sharing plan
8、Others 703,075.62 508,075.62 195,000.00
Total 8,802,162.43 98,061,162.79 101,055,710.73 5,807,614.49
（3）Presentation of defined contribution plans
Increase in the Decrease in the
Item beginning balance Ending balance
current period current period
Basic endowment insurance premium 6,778,246.97 5,987,932.64 9,921,657.47 2,844,522.14
Unemployment insurance
297,788.48 187,680.73 310,966.41 174,502.80
premium
Enterprise Annuity
Total 7,076,035.45 6,175,613.37 10,232,623.88 3,019,024.94
24. Taxes and surcharges payable
Tax and surcharge items 2021.12.31 2020.12.31
Value-added tax (VAT) 23,721.14
Corporate income tax 2,762,007.64
Individual income tax 455,942.81 565,599.19
Urban maintenance and construction tax 3,120,764.65 3,132,397.23
Property tax 3,727,900.64 3,727,900.64
Land royalties 1,808,215.20 1,808,215.20
Educational surtax 1,991,810.18 2,000,119.16
Other taxes and surcharges 4,029,488.35 4,086,656.73
Total 15,134,121.83 18,106,616.93
74
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
25. Other payable
Item 2021.12.31 2020.12.31
Interest payable
Dividend payable
Other payable 6,766,954.83 10,260,888.23
Total 6,766,954.83 10,260,888.23
（1）Other payable
① Presentation of other payable in accordance with the nature of the payment.
Item 2021.12.31 2020.12.31
Cash deposit 883,595.14 1,426,426.77
Reimbursement for occupational injury 182,224.40 216,487.83
Testing cost 444,312.20 1,670,056.33
Party organization funds 500,020.01 541,589.50
Design cost and Others 4,756,803.08 6,406,327.80
Total 6,766,954.83 10,260,888.23
② Significant other payable for over 1 year
Item Ending balance Reason for unreimbursed or transferred
Chongqing Xingsu Logistics Co., Ltd. 300,000.00 Undue deposit
Chongqing Chengbei Logistics Co., Ltd. 50,000.00 Undue deposit
Chongqing Huangdao Automobile
50,000.00 Undue deposit
Transportation Co., Ltd.
Chongqing Tangshifu Secret Kitchen
50,000.00 Undue deposit
Katering Management Group Co., Ltd.
Chongqing Bangbao Auto Parts Co., Ltd. 30,000.00 Undue deposit
Total 480,000.00
75
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
26. Other current liabilities
Item 2021.12.31 2020.12.31
Taxes to be written off 372,918.65 192,362.51
Total 372,918.65 192,362.51
27. Share capital
Increase in Decrease in
Item 2021.01.01 the current the current 2021.12.31
period period
Total shares 119,375,000.00 119,375,000.00
Total 119,375,000.00 119,375,000.00
28. Capital reserve
Increase in the Decrease in the
Item 2021.01.01 2021.12.31
current period current period
Capital (or equity) premium 702,032,741.07 702,032,741.07
Other capital reserves 256,532,553.22 256,532,553.22
Total 958,565,294.29 958,565,294.29
76
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
29. Other comprehensive income
Reporting Period
Less: recorded in
other
comprehensive Attributable to
Income before Attributable to
Item 2021.01.01 income in prior Less: Income owners of the 2021.12.31
taxation in the non-controlling
period and tax expense Company as the
Current Period interests after tax
transferred in parent after tax
profit or loss in the
Current Period
I. Items that will not be reclassified to profit or
9,800.00 9,800.00
loss
Of which: Re-measurement of changes in net
liabilities or net assets of a defined benefit plan
Share of other combined income of invested
units that cannot be reclassified into profit or 9,800.00 9,800.00
loss under the equity method
II. Items that may subsequently be reclassified
to profit or loss
Of which: Share of other comprehensive
77
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Reporting Period
Less: recorded in
other
comprehensive Attributable to
Income before Attributable to
Item 2021.01.01 income in prior Less: Income owners of the 2021.12.31
taxation in the non-controlling
period and tax expense Company as the
Current Period interests after tax
transferred in parent after tax
profit or loss in the
Current Period
income of investees that will be reclassified into
profit or loss under equity method
Gain/Loss on changes in fair value of available
-for- sale financial assets
Investments held to maturity reclassified as
gains or losses on marketable financial assets
Effective portion of cash flow hedging gains
and losses
Translation difference in foreign currency
financial statements
Total of other comprehensive income 9,800.00 9,800.00
78
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
30. Special reserve
Item 2021.01.01 Increase in the Decrease in the 2021.12.31
current period current period
Safety in production
2,710,546.82 996,664.32 1,713,882.50
expenses
Total 2,710,546.82 996,664.32 1,713,882.50
31. Surplus reserves
Item 2021.01.01 Increase in the Decrease in the 2021.12.31
current period current period
Statutory Surplus 56,724,000.00 56,724,000.00
reserve
Discretionary Surplus 68,962,000.00 68,962,000.00
reserves
Reserve fund
Enterprise development
fund
Total 125,686,000.00 125,686,000.00
32. Retained Earnings
Item Amount To extract or distribute the
proportion.
Adjustments to Retained Earnings as at December 31, 2020 -1,030,047,421.23
Adjustments to total Retained Earnings as at January 1, 2021 ("+"
for increases; "-" for decreases)
Adjusted Retained Earnings as at January 1, 2021 -1,030,047,421.23
Add: net profit attributable to owners of parent company in 2021 -25,998,962.72
Less：Extraction of statutory Surplus reserve
Extraction of discretionary Surplus reserve
79
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Extraction of General risk reserve
Dividends payable to ordinary shares
Ordinary dividend dividends transferred to capital stock
Retained Earnings as at December 31, 2021 -1,056,046,383.95
33. Operating revenue and operating costs
（1）The operating revenue and cost are listed below：
Year 2021 Year 2020
Item
Revenue Cost Revenue Cost
Primary businesses 663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
Other businesses 16,214,107.75 13,130,939.66 9,280,483.94 3,611,284.74
Total 680,118,967.08 586,901,822.80 740,851,845.25 638,523,642.92
（2）Primary businesses (by business)：
Year 2021 Year 2020
Name of product
Revenue Cost Revenue Cost
Motorcycle and auto
663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
parts
Total 663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
（3）Primary businesses (by product)：
Year 2021 Year 2020
Name of product
Revenue Cost Revenue Cost
Motorcycle and auto
663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
parts
Total 663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
（4）The operating income and costs (by region) are as follows:
Year 2021 Year 2020
Area name
Revenue Cost Revenue Cost
Anhui Province 17,124,052.52 11,707,055.53 17,404,019.16 11,550,377.56
Beijing 455,801.74 327,550.28 8,737,415.97 6,191,546.78
80
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Fujian Province 44,566.37 34,185.08 92,194.69 67,860.82
Guangdong Province 22,382,727.29 15,971,018.56 4,965,172.47 3,393,904.49
Guangxi Province 1,582,781.37 1,105,623.07 2,143,214.13 1,454,238.87
Abroad 233,617,697.59 219,426,859.00 226,077,561.82 214,634,628.96
Hebei Province 2,191,979.02 1,539,337.33 3,295,014.18 2,215,103.44
Henan Province 8,670,161.99 6,057,373.19 4,894,181.39 3,365,463.80
Hubei Province 5,928,016.10 4,022,365.87 30,883,712.83 20,430,654.16
Jilin Province 65,486.74 24,681.74
Jiangsu Province 21,065,621.33 14,455,005.40 9,232,764.33 6,215,398.79
Jiangxi Province 3,112,711.56 2,234,617.24 6,328,746.31 4,416,835.33
Liaoning Province 199,132.70 162,786.96
Shandong Province 3,026,841.57 2,324,309.20 1,955,016.56 1,421,099.96
Shaanxi Province 175,176.99 124,585.21 505,176.97 359,785.11
Shanghai Province 1,782,811.17 1,206,738.85 4,099,161.46 2,806,999.93
Sichuan Province 11,023,173.14 7,483,708.33 113,828.80 78,986.59
Tianjin 1,158,336.80 795,592.41 2,704,426.60 1,835,873.80
Yunnan Province 4,444.40 3,659.99 40,912.43 33,946.99
Zhejiang Province 65,525,378.21 44,997,776.30 96,149,564.48 67,278,049.97
Chongqing 264,799,571.37 239,763,438.17 311,883,789.99 287,136,921.09
Ningxia Province 20,247.78 15,674.17
Shanxi Province 13,628.32 11,623.00
Total 663,904,859.33 573,770,883.14 731,571,361.31 634,912,358.18
(5) The operating revenue is listed as follows according to the revenue recognition time:
Motorcycle and auto Engineering Others
Item Services Total
parts construction
Revenue is recognized in a
certain period of time
Revenue is recognized at a
680,118,967.08 680,118,967.08
certain point in time
Total 680,118,967.08 680,118,967.08
（6）Information related to performance obligations
81
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
The company's revenue recognition policy is detailed in Note 26 of Annotation III. According to the contract, the
company delivers the goods to the agreed place or the third-party logistics company. Each month, the customer
issues a notice of account according to the actual consumption of the production. The sales clerk issues an invoice
according to the customer's notice of account, combined with the customer's consumption, contract unit price,
notice of account, etc. As the time point of control transfer, the sales revenue is recognized. The credit period
given by the company to customers is determined according to the credit risk of customers, and there is no
significant financing component.
（7）Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was 2,868,604.98 Yuan at the period-end, among which RMB 2,868,604.98 Yuan was
expected to be recognized in 2022.
34. Taxes and surcharges
Item Year 2021 Year 2020
Urban maintenance and construction tax 1,412,323.01 1,297,889.65
Educational surtax 1,008,802.12 942,394.93
Property tax 1,982,928.97 1,362,504.39
Tenure tax 1,832,315.20 1,266,056.40
Vehicle ship royalties 7,004.80 8,280.00
Stamp duty 453,795.40 556,229.80
Other 10,205.75 9,236.37
Total 6,707,375.25 5,442,591.54
35. Selling expenses
Item Year 2021 Year 2020
Payroll Payable 7,229,332.62 6,908,470.17
Depreciation costs 60,736.39 45,737.88
Office expenses 230,302.33 72,913.22
Insurance expenses 10,743.48 15,207.32
Exhibition fees -40,608.00 178,430.05
Advertising expenses 184,158.41 115,226.42
Travel expenses 722,762.61 737,314.20
Consignment expenses 177,584.81 499,920.18
82
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Sales service charge 555,856.21 1,225,779.95
Repair cost 5,439,785.83 4,851,678.62
Storage and storage fee 1,546,418.12 1,463,359.49
Others 678,705.39 517,926.40
Total 16,795,778.20 16,631,963.90
36. General and administrative expenses
Item Year 2021 Year 2020
Payroll Payable 31,007,429.20 36,780,276.53
Depreciation costs 8,153,164.70 8,812,391.54
Repair charges 9,505,068.66 7,655,837.85
Consulting fee 79,336.50 244,683.58
Office expenses 811,164.13 719,571.66
Agency fee 865,439.58 993,241.03
Travel expenses 411,827.43 397,741.18
Amortization of intangible assets 1,883,417.49 999,818.65
Conference fees 427,465.56 381,923.64
Business entertainment 396,970.60 356,627.75
Sewage charge 1,791,919.34 1,905,796.86
Legal fare 34,215.90
Insurance and others 6,680,210.08 10,163,006.52
Total 62,047,629.17 69,410,916.79
37. Research and development expense
Item Year 2021 Year 2020
Salary 22,932,480.67 9,107,110.70
Material cost 1,650,738.65 939,353.55
Travel expenses 383,873.74 258,984.60
Depreciation expense 2,278,310.53 2,011,654.48
83
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Amortization of intangible assets 226,138.10 4,730.40
Others 2,289,231.77 2,962,131.96
Total 29,760,773.46 15,283,965.69
38. Financial expenses
Item Year 2021 Year 2020
Interest expenses 24,231,685.81 23,719,626.23
Less: Interest income 1,562,787.46 1,572,349.92
Net exchange loss ("-"for gain) -21,267.77 83,330.26
Cash discount -61,693.29 31,258.10
Commission Charge and others 428,908.36 224,509.17
Total 23,014,845.65 22,486,373.84
39. Other income
Item Year 2021 Year 2020
Government subsidy 1,583,305.16 4,449,659.88
Commission for withholding and paying
individual income tax
Others
Total 1,583,305.16 4,449,659.88
Government subsidy regarded as other income during the period:
Item Year 2021 Year 2020
Related to assets
Related to profits: 1,583,305.16 4,449,659.88
Government subsidy 1,583,305.16 4,449,659.88
Total 1,583,305.16 4,449,659.88
84
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Details of government subsidy
Item Year 2021 Year 2020
Return of stabilization assistance posts of medium-sized enterprises 3,048,959.00
Talent introduction support allowance 400,000.00
Reward from Jiulong Park Finance Office of Chongqing High Tech Industrial
45,000.00
Development Zone
Special fund for international trade in services 10,000.00
Quality management reward funds 300,000.00
Subsidy for motorcycle EFI project 100,000.00
Emergency insurance subsidy 50,000.00 100,000.00
Patent funding 58,200.00 61,400.00
Recruitment subsidy 8,400.00 54,200.00
Subsidies for science and technology projects 75,000.00 100,000.00
Special project funds for technological innovation and application development 200,000.00 200,000.00
Third generation service fee 20,680.11 30,100.88
Subsidies for creating an innovation platform in Banan District 300,000.00
Enterprise subsidy funds from Banan District Commerce Commission 40,000.00
Award from China South Industries Group Finance Co., Ltd. 50,000.00
Tax deduction 21,425.05
Ecological environment subsidy 124,700.00
R & D subsidy fund 234,900.00
Incentives for steady growth of industrial enterprises 100,000.00
Special fund for Industry and informatization 300,000.00
Total 1,583,305.16 4,449,659.88
40. Investment income
item Year 2021 Year 2020
85
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Long-term equity investment income calculated by
15,770,549.70 -5,390,443.20
equity method
Investment income from 50% equity of Chongqing Pingshan
TK Carburetor Co., Ltd. remeasured according to the fair value 1,939,381.08
on the purchase day
Total 15,770,549.70 -3,451,062.12
41. Losses of credit impairment
Item Year 2021 Year 2020
Impairment losses of accounts receivable credit -556,472.77 149,123.18
Impairment losses of other receivable credit 238,141.68 -1,407,996.71
Total -318,331.09 -1,258,873.53
42. Losses from asset impairment
Item Year 2021 Year 2020
Losses for falling price of inventory 17,064.89 597,106.59
Impairment loss of fixed Asset -10,550,113.62
Total 17,064.89 -9,953,007.03
43. Asset disposal income
The amount included in
the current
Item Year 2021 Year 2020
non-recurring profit and
loss.
Total profits of holding
unavailable-for-sale non-current assets 1,566,473.14 -448,967.59 1,566,473.14
disposal
Including: fixed assets 1,566,473.14 -448,967.59 1,566,473.14
86
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Total 1,566,473.14 -448,967.59 1,566,473.14
44. Non-operating income
Amounts included in the
Item Year 2021 Year 2020 non-recurrent profit and loss for
the current year
Non-current assets damage
2,160.36
and retirement gains
Government subsidies 16,900.00
Others 319,658.55 74,145.66 319,658.55
Profits from merger of enterprises
40,984,783.95
not under the same control
Total 319,658.55 41,077,989.97 319,658.55
Government subsidies included in current profit and loss
Subsidy item Year 2021 Year 2020
Related to profits:
Warehousing reward and R & D investment subsidy of scientific and technological 16,900.00
enterprises in Banan District
Total 16,900.00
45. Non-operating expenses
Amounts included in the non-recurrent
Item Year 2021 Year 2020 profit and loss for
the current year
Loss of non-current assets damaged and
169.23 1,572,191.89 169.23
scrapped
Other 28.95 480.80 28.95
Total 198.18 1,572,672.69 198.18
87
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
46. Income tax expenses
（1）Details of income tax expense
Items Year 2021 Year 2020
Income tax at current period 297,185.27
Deferred income tax -171,772.56 202,329.74
Total -171,772.56 499,515.01
（2）Accounting profit and income tax expense adjustment process
Amount of current
Item
period
Total profit -26,170,735.28
Income tax expense at statutory / applicable tax rates -6,542,683.81
Effect of different tax rates applicable to subsidiaries -98,683.57
Income tax adjustments on prior periods
Effect of non-taxable income -3,942,637.43
The impact of R&D expenses -4,597,261.86
The impact of non-deductible costs, expenses and losses 360,884.13
Affect the use of deferred tax assets early unconfirmed deductible losses -59,438.13
Deductible losses of unrecognized deferred income tax assets in the current period 14,708,048.11
The adjustment of tax rate leads to the change of the beginning-balance of deferred income tax
assets/liabilities
Total -171,772.56
47. Other comprehensive income
Details of the disclosure of other comprehensive income can be found in the notes No.29
48. Items of the statement of cash flows
88
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
（1）Cash received from other operating activities
Item Year 2021 Year 2020
Interest income 1,113,277.82 251,975.74
Government subsidies 1,583,305.16 4,466,559.88
Deposits, petty cash 7,145,658.84 11,827,569.92
Total 9,842,241.82 16,546,105.54
（2）Cash paid for other operating activities
Item Year 2021 Year 2020
Deposits, petty cash and allotment 1,255,698.63 472,285.28
Expenses paid in cash during the period 23,270,903.78 28,680,763.55
Total 24,526,602.41 29,153,048.83
（3）Cash received from other investing activities
Item Year 2021 Year 2020
Acquisition of subsidiaries 61,450,668.55
Total 61,450,668.55
（4）Cash paid for other investing activities
Item Year 2021 Year 2020
Financial periodic deposits 40,000,000.00
Total 40,000,000.00
（5）Cash received from other financing activities
Item Year 2021 Year 2020
Interest 449,509.64 1,320,374.18
Proceeds from discounting of financing notes received 31,271,812.75 88,769,216.54
Collection of financing 12,092,996.08 216,340,000.00
Total 43,814,318.47 306,429,590.72
（6）cash paid for other financing activities
Item Year 2021 Year 2020
89
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Payments for matured financing notes 16,506,825.20 398,125,000.00
cash deposit for financing such as bills and loans 9,288,814.12 128,949,610.08
Total 25,795,639.32 527,074,610.08
49. Supplementary information to the statement of cash flows
（1）Supplementary information to the statement of cash flows
Supplementary information Year 2021 Year 2020
1、Net profit adjusted to cash flows from operating activities
Net profits -25,998,962.72 1,415,942.45
Add: provision for credit impairment -17,064.89 1,258,873.53
Provision for assets impairment 318,331.09 9,953,007.03
Depreciation of fixed assets, depletion of oil and gas assets and
33,781,956.81 33,781,630.33
depreciation of productive biological assets
Depreciation of Right-of-use assets
Amortization of intangible assets 2,109,555.59 1,004,549.05
Amortization of long-term prepaid expenses 47,865.57 49,500.00
448,967.59
Losses on disposal of assets ("-" for gains) -1,566,473.14
Losses on discarding of fixed assets ("-" for gains) 169.23 1,572,191.89
Losses from changes in fair value ("-" for gains)
Financial expenses ("-" for income) 24,231,685.81 23,719,626.23
Investment’s losses ("-" for gains) -15,770,549.70 3,451,062.12
Decreases in the deferred income tax assets ("-" for increases) 213,460.13 -213,146.14
Increases in the deferred income tax liabilities ("-" for decreases) -385,232.69 1,908,551.51
Decreases in inventories ("-" for increases) -37,573,619.01 -22,827,528.18
Decreases in operating receivables ("-" for increases) 2,091,660.99 -30,853,916.35
Increases in operating receivables（"-" for decreases） 39,949,584.40 140,343,815.61
90
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Others
Net cash flows from operating activities 21,432,367.47 165,013,126.67
2、Significant investment and financing activities involving no cash
receipts and payments
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under financial lease
3、Net change in cash and cash equivalents:
Closing balance of cash 23,738,523.19 79,310,253.55
Less: Opening balance of cash 79,310,253.55 9,390,326.10
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -55,571,730.36 69,919,927.45
（2）Component of cash and cash equivalents
Item Year 2021 Year 2020
1. Cash 23,738,523.19 79,310,253.55
Including: cash on hand 5,418.26
Unrestricted bank deposit 23,738,523.19 79,304,835.29
Other unrestricted Cash and cash equivalents
Unrestricted bank deposit placed in central bank
2. Cash equivalents
Including: bond investments maturing within three months
3. Balance of cash and cash equivalents as at December 31, 2021 23,738,523.19 79,310,253.55
50. Assets with restrictions on their ownership or use right
91
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Book value as at
Item Reason for restriction
December 31, 2021
Monetary assets 67,940,000.00 Guarantee deposit, fixed deposit
Financing receivables 17,010,000.00 Pledge
Total 84,950,000.00
51. Government subsidies
（1）Government subsidies confirmed in current period
Asset-related Revenue related
Write-
Whether
down
Subsidy item Amount deferred deferred Non-operatin Write-do actually
of Other income
income income g income wn of cost received
book
value
Emergency insurance
50,000.00 50,000.00 Yes
subsidy
Patent funding 58,200.00 58,200.00 Yes
Recruitment subsidy 8,400.00 8,400.00 Yes
Subsidies for science and
75,000.00 75,000.00 Yes
technology projects
Special project funds for
technological innovation
200,000.00 200,000.00 Yes
and application
development
Third generation service
20,680.11 20,680.11 Yes
fee
Subsidies for creating an
innovation platform in 300,000.00 300,000.00 Yes
Banan District
92
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Asset-related Revenue related
Write-
Whether
down
Subsidy item Amount deferred deferred Non-operatin Write-do actually
of Other income
income income g income wn of cost received
book
value
Enterprise subsidy funds
from Banan District 40,000.00 40,000.00 Yes
Commerce Commission
Award from China South
Industries Group Finance 50,000.00 50,000.00 Yes
Co., Ltd.
Tax deduction 21,425.05 21,425.05 Yes
Ecological environment
124,700.00 124,700.00 Yes
subsidy
R & D subsidy fund 234,900.00 234,900.00 Yes
Incentives for steady
growth of industrial 100,000.00 100,000.00 Yes
enterprises
Special fund for Industry
300,000.00 300,000.00 Yes
and informatization
Total 1,583,305.16 1,583,305.16
2). Government subsidies included in current profit and loss
Included in the
Asset-related / Included in the
Subsidy item Non-operating Write-down of cost
revenue-related Other income
income
Emergency insurance
Revenue related 50,000.00
subsidy
Patent funding Revenue related 58,200.00
93
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Included in the
Asset-related / Included in the
Subsidy item Non-operating Write-down of cost
revenue-related Other income
income
Recruitment subsidy Revenue related 8,400.00
Subsidies for science and
Revenue related 75,000.00
technology projects
Special project funds for
technological innovation
Revenue related 200,000.00
and application
development
Third generation service
Revenue related 20,680.11
fee
Subsidies for creating an
innovation platform in Revenue related 300,000.00
Banan District
Enterprise subsidy funds
from Banan District Revenue related 40,000.00
Commerce Commission
Award from China South
Industries Group Finance Revenue related 50,000.00
Co., Ltd.
Tax deduction Revenue related 21,425.05
Ecological environment
Revenue related 124,700.00
subsidy
R & D subsidy fund Revenue related 234,900.00
Incentives for steady
growth of industrial Revenue related 100,000.00
enterprises
Special fund for Industry
Revenue related 300,000.00
and informatization
Total 1,583,305.16
94
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
VI. Change of consolidation scope
There is no change in the consolidation scope in this period.
VII.Equity in other entities
1. Equity in subsidiaries
(1) Composition of enterprise groups
Main business Registered Shareholding ratio (%) Acquisition
Name of subsidiary Business nature
areas place Directly Indirectly method
Chongqing Jianshe Production and sales
Establishment by
Automobile A/C Chongqing Chongqing of Automobile Air 100.00
investment
Co., Ltd. Conditioner
Chongqing Pingshan TK Production and sales Merger under
Chongqing Chongqing 100.00
Carburetor Co., Ltd. of motorcycle parts different control
2. Equity in joint ventures and associates
（1）Major joint ventures
Main Shareholding ratio Accounting treatment methods
Name of joint Registered
business Business nature (%) for the investments in joint
venture or associate place
areas Directly Indirectly ventures or associates
Chongqing Hanon
Compressor assembly
Jianshe Automotive
Chongqing Chongqing and core auto parts 50.00 Equity method
Thermal Systems Co.,
production
Ltd.
（2）Major financial information of significant joint ventures
95
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Beginning balance / Amount of the
Ending balance / Current amount
previous period
Item
Chongqing Hanon Jianshe Automotive Chongqing Hanon Jianshe Automotive
Thermal Systems Co., Ltd. Thermal Systems Co., Ltd.
Current assets 196,148,081.75 207,788,619.72
Including: cash and cash equivalents 52,373,714.91 14,910,653.69
Non-current assets 380,490,597.33 403,946,863.16
Total assets 576,638,679.08 611,735,482.88
Current liabilities 158,199,475.93 147,202,798.08
Non-current liabilities 17,587,384.50 95,221,965.54
Total liabilities 175,786,860.43 242,424,763.62
Minority equity
Equity attributable to the shareholders
400,851,818.65 369,310,719.26
of parent company
Shares in net assets calculated
200,425,909.33 184,655,359.63
according to the shareholding ratios
Adjustment events
- Goodwill
- Unrealized profits of internal
transactions
- Others
The book values of equity
201,984,268.72 186,213,719.02
investments in joint ventures
96
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Beginning balance / Amount of the
Ending balance / Current amount
previous period
Item
Chongqing Hanon Jianshe Automotive Chongqing Hanon Jianshe Automotive
Thermal Systems Co., Ltd. Thermal Systems Co., Ltd.
The fair values of equity investments
in joint ventures with a public offer
Operating income 306,636,095.98 232,203,748.88
Financial expenses 8,227,807.42 4,678,168.50
Income tax expenses
Net profit 31,541,099.39 -11,136,523.51
Net profit from termination
Other comprehensive income
Total comprehensive income 31,541,099.39 -11,136,523.51
Dividends received from joint
ventures for the current
year
VIII. Related parties and related party transactions
1. The parent company of the Company
Shareholding Voting ratio
Name of the parent Registered Registered
Business nature ratio in the in the
company place capital
Company (%) Company (%)
China South State-owned RMB 35.30
Beijing 71.13 71.13
Industries Group assets investment billion
97
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Corporation
Note: The ultimate controller of the Company is The State-owned Assets Supervision and Administration
Commission of the State Council.
The changes of parent company registered capital (million):
Item 2021.01.01 Increase in 2021 Decrease in 2021 2021.12.31
Amount 35.30 billion 35.30 billion
2. Subsidiaries of the Company
Please refer to Notes VII.1 “Equity in subsidiaries” for the details of subsidiaries of the Company.
3. The joint ventures and associates of the Company
Please refer to Notes VII.2 “Equity in joint ventures and associates” for the details of major joint ventures or
associates of the Company.
4. Other related parties of the Company
Name of other related parties Relationship with the Company
Under the common control of the same
Chongqing Jianshe Electromechanical Construction Co., Ltd.
party
Under the common control of the same
Chongqing Jianshe Industry (Group) Co., Ltd. ("Jianshe industry (Group) ")
party
Under the common control of the same
South Finance Co., Ltd. ("Finance Company ")
party
A Joint venture of a subsidiary of a
Chongqing Jianxing Machinery Co., Ltd. ("Jianxing Machinery")
controlling shareholder
Under the common control of the same
Chongqing Changan Automobile Co., Ltd. ("Chongqing Changan")
party
Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company Under the common control of the same
98
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
("Beijing Changan") party
A Joint venture of a subsidiary of a
Chongqing Changan Suzuki Motor Co., Ltd. ("Changan Suzuki ")
controlling shareholder
Under the common control of the same
Hebei Changan Motor Co., Ltd. ("Hebei Changan ")
party
Under the common control of the same
Nanjing Changan Motor Co., Ltd. ("Nanjing Changan ")
party
Under the common control of the same
Baoding Changan Bus Manufacturing Co., Ltd. ("Baoding Changan")
party
Under the common control of the same
Hefei Changan Motor Co., Ltd. ("Hefei Changan")
party
Under the common control of the same
Chongqing South Motorcycle Co., Ltd. ("South Motorcycle ")
party
Chongqing Changan Motor Customer Service Co., Ltd. ("Changan Motor Under the common control of the same
Customer Service ") party
Chongqing Changan Automobile International Sales & Service Co., Ltd.（"Changan Under the common control of the same
Automobile sales "） party
Chongqing North Construction import and export trade Co., Ltd. ("import and Under the common control of the same
export company") party
Under the common control of the same
Hafei Motor share company ("Hafei motor")
party
Under the common control of the same
Sichuan Huaqing Machinery Co., Ltd.
party
A Joint venture of a subsidiary of a
Changan Ford Motor Co., Ltd. Harbin branch ("Changan Ford Harbin branch")
controlling shareholder
Under the common control of the same
Harbin dongan Motor Power shares Co., Ltd. ("Harbin dongan power")
party
Under the common control of the same
South Air International Co., Ltd. ("South Air ")
party
99
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Southwest Ordnance Chongqing Environmental Protection Research Institute Co., Under the common control of the same
Ltd.（" Southwest Ordnance"） party
Under the common control of the same
China Ordnance Equipment Group commercial factoring Co., Ltd.
party
A Joint venture of a subsidiary of a
Chongqing Jianshe Yamaha Motorcycle Co., Ltd.（"Jianshe Yamaha"）
controlling shareholder
A Joint venture of a subsidiary of a
Chongqing Changan Minsheng Logistics Co., Ltd.（"Minsheng Logistics "）
controlling shareholder
A Joint venture of a subsidiary of a
Chongqing Jianshe lijue Industrial Co., Ltd.（" Jianshe lijue"）
controlling shareholder
Xuechuan Yan Board Chairman
Aijun Fan Director、General manager
Qihong Dong Board director
Qingong Shi Board director
Yongqiang Zhou Board director
Lin Hao Board director
Jiaming Li Independent director
Fei Xie Independent director
Weiwei Song Independent director
Wei Liu Independent director
Xianyun Lu Supervisory board chairman
Lungang Zhang Supervisor
Guoan Qiao Supervisor
Jian Liao Employee supervisor
Qiang Su Employee supervisor
Wenbiao Yu Vice-general manager
Mingxian Tan General Accountant
100
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Yongjiang Li Vice-general manager
Hushan Zhang Secretary of the board of directors
5. Related party transactions
(1) Purchasing and selling goods, providing and receiving labor services
① Table of sales of goods
Content of Amount
Related party related party
Year 2021 Year 2020
transactions
Chongqing Changan Automobile Co., Ltd. Auto Parts 131,973,718.97 121,152,914.63
Chongqing Changan Suzuki Automobile Co., Ltd. Auto Parts 5,615,743.47 8,312,846.45
Hefei Changan Automobile Co., Ltd. Auto Parts 16,194,939.56 12,311,294.83
Nanjing Changan Automobile Co., Ltd. Auto Parts 1,820,143.06 1,955,924.44
Baoding Changan Automobile Co., Ltd. Auto Parts 1,324,434.08 2,231,755.78
Hebei Changan Automobile Co., Ltd. Auto Parts 104,905.84
Beijing Changan Automobile Co., Ltd. Auto Parts 2,557.55
Chongqing Changan Automobile customer Service Co.,
Auto Parts 6,851.20 18,532.42
Ltd.
South Air International Co., Ltd. ("South Air ") Auto Parts 144,000.00 144,000.00
Chongqing Jianshe Yamaha Motorcycle Co., Ltd. Motorcycle Parts 11,944,592.17 3,469,076.51
Chongqing Jianshe industry (Group) Co., Ltd. Parts inspection 427,878.59 280,236.11
Chongqing Jianshe Electromechanical Construction
Material 207,747.94
Co., Ltd.
Chongqing Hanon Jianshe Automotive Thermal
Auto Parts 4,829,474.48
Systems Co., Ltd.
Chongqing Hanon Jianshe Automotive Thermal
Material 8,679,058.73
Systems Co., Ltd.
101
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Total 183,168,582.25 149,984,044.56
②Table of purchase of goods, received labor services
Amount
Content of related
Related party
party transactions Year 2021 Year 2020
Chongqing Jianshe industry (Group) Co., Ltd. Parts inspection 699,441.80 948,359.57
Warehousing
Chongqing Changan Minsheng Logistics Co., Ltd. 3,735,472.46 581,396.56
service
Southwest Ordnance Chongqing Environmental
Parts inspection 1,736,605.88 1,039,838.83
Protection Research Institute Co., Ltd.
Chongqing Jianshe industry (Group) Co., Ltd. Material 1,567,203.06 0.00
Chongqing Changan Automobile Co., Ltd. and its Maintenance
1,163,939.02 0.00
affiliated enterprises service
Total Auto Parts 8,902,662.22 2,569,594.96
(2) The situation of related-party lease
① The Company as a lessor：
Leasing asset of Leasing asset of
The name of lessor The kind of leased assets
2021 2020
Chongqing Jianshe Electromechanical Construction
Plant 3,187,684.37
Co., Ltd.
② The Company as a lessee：
The kind of leased Leasing asset of Leasing asset of
The name of lessor
assets 2021 2020
Chongqing Jianshe Electromechanical
Plant 3,131,505.24
Construction Co., Ltd.
(3) Related Guarantee
The Company as the guarantor
102
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Whether the
Maturity date of
Guarantee Guaranteed Starting date of guarantee has
guaranty
amount guaranty been fulfilled
Chongqing Jianshe Automobile
17,710,000.00 2021/1/15 2022-1-14 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
50,000,000.00 2021-3-5 2022/3/4 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
20,000,000.00 2021-4-9 2022-4-8 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,490,000.00 2021-4-23 2022-4-22 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
34,500,000.00 2021-5-13 2022-5-12 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
20,000,000.00 2021-6-11 2022-6-9 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
10,000,000.00 2021-9-17 2022-9-17 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
17,496,500.00 2021-12-9 2022-6-23 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,013,500.00 2021/12/14 2022/6/23 No
A/C Co., Ltd.
Chongqing Jianshe Automobile
17,496,500.00 2021-1-11 2022-1-10 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,013,500.00 2021-1-25 2022/1/24 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
17,710,000.00 2020-1-17 2021-1-16 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
30,000,000.00 2020-6-19 2021-6-18 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
30,000,000.00 2020-7-29 2021-7-28 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
30,000,000.00 2020-8-11 2021-8-10 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
55,790,000.00 2020-12-4 2021-12-3 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
24,997,000.00 2020-4-13 2021-4-12 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
9,999,500.00 2020-4-20 2021-4-19 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,013,500.00 2020-4-28 2021-4-27 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
34,500,000.00 2020-10-12 2021-5-24 Yes
A/C Co., Ltd.
103
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Chongqing Jianshe Automobile
20,000,000.00 2020-10-12 2021-5-24 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,490,000.00 2020-10-19 2021-5-24 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
10,000,000.00 2020-8-27 2021-8-27 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
20,000,000.00 2020-11-3 2021-5-18 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
50,000,000.00 2020-2-28 2021-2-27 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,020,000.00 2020-7-31 2021-1-31 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
46,400,000.00 2020-9-23 2021-3-16 Yes
A/C Co., Ltd.
Chongqing Jianshe Automobile
25,000,000.00 2020-10-16 2021-4-13 Yes
A/C Co., Ltd.
(4) Payroll of core management staff
Item 2021 2020
Payroll of core management staff 3,574,756.20 3,956,919.45
(5) Deposits in related parties
Related-party Increase during the Decrease during the
2021.01.01 2021.12.31
name period period
Finance company of
China South 75,299,945.03 1,722,071,692.34 1,730,287,453.61 67,084,183.76
Industries Group
Note: The total deposit interest of related parties received in the current period is 918,031.22 Yuan.
(6) Loan from related parties
Annual
Terminatio
Related-party name Starting date interest Guarantor Ending balance
n date
rate
Finance company of China 2021/2/25 2022/2/25 4.35% Credit borrowings 30,000,000.00
104
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
South Industries Group
Finance company of China
2021/6/16 2022/6/16 3.92% Credit borrowings 20,000,000.00
South Industries Group
Finance company of China
2021/7/7 2022/7/7 4.35% Credit borrowings 20,000,000.00
South Industries Group
Finance company of China
2021/9/17 2022/9/17 4.35% Credit borrowings 20,000,000.00
South Industries Group
Finance company of China
2021/10/20 2022/10/20 4.35% Credit borrowings 10,000,000.00
South Industries Group
Finance company of China
2021/11/15 2022/11/15 3.92% Credit borrowings 30,000,000.00
South Industries Group
Finance company of China
2021/11/18 2022/11/18 4.35% Credit borrowings 28,000,000.00
South Industries Group
Finance company of China
2021/11/22 2022/11/22 4.35% Credit borrowings 30,000,000.00
South Industries Group
Finance company of China
2021/12/2 2022/12/2 4.35% Credit borrowings 55,790,000.00
South Industries Group
Finance company of China
2021/12/8 2022/3/8 4.35% Credit borrowings 5,960,000.00
South Industries Group
Finance company of China
2021/12/13 2022/12/13 4.35% Credit borrowings 23,500,000.00
South Industries Group
Note: The total loan interest paid to related parties in this period is 8,774,059.98 Yuan.
6. Related party receivables/payables
（1）The item of receivables
2021.12.31 2020.12.31
Item Related parties bad-debt bad-debt
book balance book balance
provision provision
Chongqing Jianshe Yamaha
Accounts receivable 978,730.60 1,600,948.83
Motorcycle Co., Ltd.
Chongqing Hanon Jianshe
Accounts receivable 2,062,836.40 1,057,181.69
Automotive Thermal Systems Co.,
105
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Ltd.
Chongqing Changan Automobile
Accounts receivable 15,225,677.65 35,860,898.25
Co., Ltd.
Hefei Changan Automobile Co.,
Accounts receivable 4,584,439.91 6,144,169.57
Ltd.
Baoding Changan Automobile Co.,
Accounts receivable 178,907.37 176,024.12
Ltd.
Chongqing Changan Suzuki
Accounts receivable 413,084.63 144,754.60
Automobile Co., Ltd.
Nanjing Changan Automobile Co.,
Accounts receivable 779,950.94 757,093.89
Ltd.
Hebei Changan Automobile Co.,
Accounts receivable 51,911.53 125,588.19
Ltd.
Accounts receivable Hafei motor Co., Ltd. 3,999,944.43 3,999,944.43 3,999,944.43 3,999,944.43
Chongqing Changan Motor
Accounts receivable 3,870.93
Customer Service Co., Ltd.
Baoding Changan bus
Notes receivable 1,080,000.00
Manufacturing Co., Ltd.
Chongqing Changan Automobile
Notes receivable 5,340,000.00 20,462,109.25
Co., Ltd.
Hefei Changan Automobile Co.,
Notes receivable 1,781,515.49 4,501,490.44
Ltd.
Nanjing Changan Automobile Co.,
Notes receivable 200,000.00 880,000.00
Ltd.
Chongqing Jianshe Lijue Industry
Other receivables 1,478,870.07 1,478,870.07 1,478,870.07 1,478,870.07
Co., Ltd.
China South Industries Group
Other receivables 39,300.00
Corporation
Chongqing Hanon Jianshe
Other receivables Automotive Thermal Systems Co., 640,407.92
Ltd.
106
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
（2）The item of payables
2021.12.31 2020.12.31
Item Related parties
book balance book balance
Accounts payable Chongqing Yamaha Motorcycle Co., Ltd. 23,210.00 23,210.00
China South Industries Group Commercial
Accounts payable 23,610,000.00 32,950,000.00
Factoring Co., Ltd.
Chongqing Hanon Jianshe Automotive Thermal
Accounts payable 497,923.20
Systems Co., Ltd.
Other payable Chongqing Jianshe Industrial (Group) Co., Ltd. 233,241.12 563,402.75
7. Commitments by related parties
None.
IX.Commitments or contingencies
1. Significant commitment events
As at December 31, 2021, the Company did not need to disclose important commitments.
2. Contingencies
As at December 31, 2021, the Company did not need to disclose important contingencies.
X. Subsequent events
As the approval date of audit report, the Company did not need to disclose important subsequent events.
XI. Other significant events
As at December 31, 2021, the Company did not need to disclose other significant events.
XII. Notes to the main items of financial statements of parent company
1. Accounts receivable
107
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
(1) Accounts receivable measured as amortized cost
2021.12.31 2020.12.31
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Accounts receivable 4,443,972.39 1,291,496.94 3,152,475.45 3,480,832.08 1,291,496.94 2,189,335.14
Total 4,443,972.39 1,291,496.94 3,152,475.45 3,480,832.08 1,291,496.94 2,189,335.14
(2) Bad debt reserves
No matter whether there is material financing component, the company measured losses reserves provision using
estimated credit losses method during the period.
①Accounts receivable with provision for bad debt made on a portfolio with similar aging
Estimated credit
Provision for
Book balance losses during the
impairment
period
3,152,475.45
Within one year
1-2 years
2-3 years
1,291,496.94 100.00 1,291,496.94
Over 3 years
4,443,972.39 1,291,496.94
Total
②Changes of Bad debt
Increase Decrease during the period
Item 2021.01.01 during the 2021.12.31
Recovery or Elimination or
period reversal write-off
Accounts receivable
1,291,496.94 1,291,496.94
provision for
108
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
impairment
(3) Top five accounts receivable as at December 31, 2021:
Total amount of top five accounts receivable is 4,056,402.35 Yuan, which accounting for 91.29% of total accounts
receivable, and the corresponding provision of accounts receivable bad debts impairment is 1,014,835.35 Yuan.
Amount of Proportion of total Amount of ending
Company Name ending Aging accounts balance for bad
balance receivable % debts
Chongqing Jianshe Hanon Heat
2,062,836.40 Within 6 months 46.42
Management System Co., Ltd.
Chongqing Jianshe Yamaha Motorcycle Within 6 months
978,730.60 22.02
Co., Ltd.
Wuhan Longchang Company Wujiao Over 5 years
473,539.96 10.66 473,539.96
Market Department
China Aerospace Science and Over 5 years
Technology Corporation long March 395,296.04 8.90 395,296.04
Machinery Factory
Chongqing Chihai Machinery 145,999.35
145,999.35 Over 5 years 3.29
Manufacturing Co., Ltd.
Total 4,056,402.35 91.29 1,014,835.35
2．Other receivables
Item 2021.12.31 2020.12.31
Interest receivable
Dividend receivable
Other receivables 1,153,592.45 934,239.22
Total 1,153,592.45 934,239.22
(1) Situation of other receivables
109
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
2021.12.31 2020.12.31
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Other receivables 6,836,089.77 5,682,497.32 1,153,592.45 6,854,489.04 5,920,249.82 934,239.22
Total 6,836,089.77 5,682,497.32 1,153,592.45 6,854,489.04 5,920,249.82 934,239.22
1) Provision of bad debts
A. Provision for bad debts of other accounts receivable at the first stage on December 31st
2021
Estimated credit losses Provision for
Book balance Reason
during the period impairment
Provision in portfolio
Aging 5,041,699.86 73.75 3,888,107.41 Low recovery possibility
5,041,699.86 73.75 3,888,107.41
Total
B. Provision for bad debts of other accounts receivable at the third stage on December 31st
2021
Estimated credit losses Provision for
Book balance Reason
during the period impairment
Provision in single entity
Chongqing Jinxiang
Hoisting equipment 16,800.00 100.00 16,800.00 Low recovery possibility
manufacturing
Yangzhou Qionghua
decoration engineering 56,500.00 100.00 56,500.00 Low recovery possibility
equipment
Chongqing China Customs 78,825.36 100.00 78,825.36 Low recovery possibility
Goods pending quality 163,394.48 100.00 163,394.48 Low recovery possibility
110
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
inspection and goods on
exhibition
Chongqing Jianshe lijue
1,478,870.07 100.00 1,478,870.07 Low recovery possibility
Industrial Co., Ltd.
Total 1,794,389.91 100.00 1,794,389.91
2) Changes of bad debts provision
Stage One Stage Two Stage Three
Estimated credit Estimated credit
Provision of impairment Estimated credit losses Total
losses during the losses during the
in next 12mongths
period (not happened) period(happened)
Balance as at Jan 1st 2021 4,125,859.91 1,794,389.91 5,920,249.82
Beginning book balance in this
period
-transfer to the first stage
-transfer to the second stage
-transfer to the third stage
Provision during the period
Reversal during the period 237,752.50 237,752.50
Elimination during the period
Write off during the period
Other changes
Balance as at Dec 31st 2021 3,888,107.41 1,794,389.91 5,682,497.32
3) Nature classification of other receivables
Nature 2021.12.31 2020.12.31
111
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Commercial intercourse 6,836,089.77 6,854,489.04
Total 6,836,089.77 6,854,489.04
4) Top five other receivable as at December 31, 2021
Total amount of top five accounts receivable is 6,154,606.03 Yuan, which accounting for 90.12% of total accounts
receivable, and the corresponding provision of accounts receivable bad debts impairment is 5,514,198.11 Yuan.
Percentage Provision of
Amount of
Related of whole impairment
Company Name Nature ending Aging
Party other of ending
balance
receivables% balance
Shenzhen Jianshe
No Trading 3,013,664.00 Over 5 years 44.08 3,013,664.00
Motorcycle Co., Ltd.
Chongqing Jianshe lijue 1-2 years、2-3
Yes Trading 1,478,870.07 21.63 1,478,870.07
Industrial Co., Ltd. years
Ningbo Jianshe Auto Co.,
No Trading 692,035.31 Over 5 years 10.12 692,035.31
Ltd. Chongqing Office
Chongqing Hanon Jianshe
Automotive Thermal No Trading 640,407.92 Within 6 months 9.37
Systems Co., Ltd.
Ningbo Jianshe
No Trading 329,628.73 Over 5 years 4.82 329,628.73
Motorcycle Co., Ltd.
Total 6,154,606.03 90.02 5,514,198.11
3. Long-term equity investments
（1）Classification of long-term equity investment
2021.12.31 2020.12.31
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Investments in 199,045,443.95 199,045,443.95 199,045,443.95 199,045,443.95
112
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
2021.12.31 2020.12.31
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
subsidiaries
Investments in
associates and 201,984,268.72 201,984,268.72 186,213,719.02 186,213,719.02
joint ventures
Total 401,029,712.67 401,029,712.67 385,259,162.97 385,259,162.97
（2）Investments in subsidiaries
Increase in Decrease in
Investee 2021.01.01 2021.12.31
2021 2021
Chongqing Jianshe Automobile A/C Co.,
160,000,000.00 160,000,000.00
Ltd.
Chongqing Pingshan TK Carburetor Co., 39,045,443.95 39,045,443.95
Ltd.
Less: provision for long-term investment
impairment
Total 199,045,443.95 199,045,443.95
（3）Investments in associates and joint ventures
Increases/decreases in the current year
profits and
losses on
Other Changes
Investee 2021.01.01 Additional Decrease in investments
comprehensiv in other
investment investment recognized
e income equity
under the equity
method
Joint ventures
Chongqing Jianshe Hanon 186,213,719.02 15,770,549.70
113
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Heat Management System
Co., Ltd.
Total 186,213,719.02 15,770,549.70
&
Increases/decreases in the current year Balance as
At December
Declaration of Balance as at
Investee 31, 2021 of
Provision for
cash dividends or Other December 31, 2021
impairment Provision for
profits
impairment
Joint ventures
Chongqing Jianshe
Hanon Heat
201,984,268.72
Management system
Co., Ltd.
Total 201,984,268.72
4. Operating income and operating costs
（1）Operating income and costs are as follows：
Year 2021 Year 2020
Item
Income Cost Income Cost
Primary businesses 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
Other businesses 11,820,268.31 10,319,273.71 8,020,335.84 3,413,711.76
Total 505,387,254.89 509,519,813.11 582,119,961.20 565,869,149.78
（2）The main operating income and costs (by business) are as follows：
Year 2021 Year 2020
Product Name
Income Cost Income Cost
Motorcycle and auto
493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
parts
Total 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
114
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
（3）The main operating income and costs (by product) are as follows：
Year 2021 Year 2020
Product Name
Income Cost Income Cost
Motorcycle and auto 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
parts
Total 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
（4）The main operating income and costs (by region) are as follows：
Year 2021 Year 2020
Product Name
Income Cost Income Cost
Chongqing 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
Total 493,566,986.58 499,200,539.40 574,099,625.36 562,455,438.02
5. Investment income
item Year 2021 Year 2020
Long-term equity investment income calculated by
15,770,549.70 -5,390,443.20
equity method
Disposal of a long-term equity investment of investment returns
Others — —
Total 15,770,549.70 -5,390,443.20
XIII. Supplementary information
1. Detailed statement of current non-recurring profit and loss
Item Amount Remark
Gains and losses on disposal of non-current assets 1,566,473.14
Tax returns, deduction and exemption approved beyond the authority or
without official approval documents
Government grants included in current profits and losses (except for
government grants closely related to the enterprise business, obtained by 1,583,305.16
quota or quantity at unified state standards)
115
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Payment for use of state funds received from non-financial institutions
recorded in current profits and losses
Gains from the difference between the investment costs of acquisition of
subsidiaries, associates and joint ventures and share in the net fair value of
the identifiable assets of the investee when investing
Gains or losses from non-monetary asset exchange
Gains or losses from entrusting the investments or management of asset
Impairment provision for force majeure such as natural calamities
Profits or losses from debt restructuring
Restructure expenses, such as the compensation for employee relocation and
integration costs
Gains or losses from transactions with obvious unfair transaction price
Current net profit and loss of subsidiaries from the beginning of the period to
the date of business combination under the common control
Profits or losses arising from contingencies not related to the company’s
normal business
Except for effective hedging business related to the normal business of the
company, profits or losses from fair value changes in held-for-trading
financial assets and held-for-trading financial liabilities, and investment
income from disposal of held-for-trading financial assets, held-for-trading
financial liabilities and available-for-sale financial assets
Disposal of transactional financial assets, transactional financial liabilities
and return on investments available for sale
Reversal of the impairment provision for receivables subject to separate
200,000.00
impairment test
Profits or losses from entrusted loans
116
Chongqing Jianshe Vehicle System Co., Ltd.
Notes To Financial Statements
For The Year Ended December 31, 2022
Profits or losses from fair value changes in investment property subsequently
calculated with the fair value mode
Impacts of one-time adjusting the current profits or losses in accordance with
requirements of tax and accounting laws and regulations on the current
profits and losses
Custodian income from entrusted management
Other non-operating income and expenditure except for the above items 319,460.37
Other profits or losses which can be deemed as non-recurring profits or
losses
Total non-recurrent gains and losses 3,669,238.67
Less: income tax impact of non-recurrent gains and losses
Net non-recurrent gains and losses 3,669,238.67
Less: net effect of non-recurrent gains and losses attributable to minority
shareholders
Non-recurring gains and losses attributable to common shareholders of the
3,669,238.67
company
2. Rate of return on net assets and earnings per share
Weighted Earnings per share (Yuan)
average rate of Basic
Profit during the reporting period Diluted earnings
return on net earnings per
per share
assets (%) share
Net profit attributable to ordinary shareholders of
-16.10 -0.218 0.218
the Company
Net profit attributable to ordinary shareholders of
the Company after deducting the non-recurring -18.38 -0.249 -0.249
profit and loss
Chongqing Jianshe Vehicle System Co., Ltd.
April 28, 2022
117
