Jiangling Motors Corporation, Ltd.
2024 Half-year Report
2024-08
1
Chapter I Important Notes, Contents and Abbreviations
Important Note
The Board of Directors and its members, the Supervisory Board and its
members, and the senior executives are jointly and severally liable for the
truthfulness, accuracy and completeness of the information disclosed in the
Report and confirm that the information disclosed herein does not contain any
false statement, misrepresentation or major omission.
Chairman Qiu Tiangao, CFO Joey Zhu and Chief of Finance Department, Hu
Hanfeng, confirm that the Financial Statements in this Half-year Report are
truthful, accurate and complete.
All the Directors were present at the Board meeting to review this Half-year
Report.
Future plans, development strategies and other forward-looking statements in
this report do not constitute a substantial commitment of the Company to
investors. Investors are advised to pay attention to investment risks.
The Company's possible risks and countermeasures are described in Section
3 of this report, "Management Discussion and Analysis". Please investors to
pay attention to the relevant content.
Neither cash dividend nor stock dividend was distributed. The Board decided
not to convert capital reserve to share capital this time.
The Half-year Report is prepared in Chinese and English. In case of
discrepancy, the Chinese version will prevail.
2
Contents
Chapter I Important Notes, Contents and Abbreviations ................................ 2
Chapter II Brief Introduction and Operating Highlight ...................................... 5
Chapter III Management Discussion and Analysis ........................................... 8
Chapter IV Corporate Governance Structure ................................................. 18
Chapter V Environment and Social Responsibilities ..................................... 20
Chapter VI Major events ................................................................................. 24
Chapter VII Share Capital Changes & Shareholders ...................................... 28
Chapter VIII Preferred Shares.......................................................................... 31
Chapter IX Bond related Information.............................................................. 32
Chapter X Financial Statements ................................................................... 33
3
Catalogue on Documents for Reference
1. Originals of 2024 Half-year financial statements signed by Chairman, Chief
Financial Officer and Chief of Finance Department.
2. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in the first half of 2024.
3. Chinese version of the Half-year Report prepared per the China GAAP.
Abbreviations:
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co., Ltd.
Ford Ford Motor Company
JIC Nanchang Jiangling Investment Co., Ltd.
JMC or the Company Jiangling Motors Corporation, Ltd.
JMCH JMC Heavy Duty Vehicle Co., Ltd.
EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
4
Chapter II Brief Introduction and Operating Highlight
1. Company’s information
Share’s name Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing Shenzhen Stock Exchange
Company’s Chinese
江铃汽车股份有限公司
name
English name Jiangling Motors Corporation, Ltd.
Abbreviation JMC
Company legal
Qiu Tiangao
representative
2. Contact person and method
Board Secretary Securities Affairs Representative
Name Xu Lanfeng Quan Shi
No. 2111, Yingbin Middle Avenue, No. 2111, Yingbin Middle Avenue,
Address Nanchang City, Jiangxi Province, Nanchang City, Jiangxi Province,
P.R.C P.R.C
Tel 86-791-85266178 86-791-85266178
Fax 86-791-85232839 86-791-85232839
E-mail relations@jmc.com.cn relations@jmc.com.cn
3. Other
I. Contact methods
Changes of registered address, headquarter address, postal code, website
and e-mail in the reporting period
□Applicable Not Applicable
The Company's registered address, headquarter address, postal code,
website and e-mail remain unchanged during the reporting period.
For details, please refer to the 2023 Annual report.
II. Changes of newspapers and website for information disclosure, and place
for achieving half-year report in the reporting period
□Applicable Not Applicable
There is no change of names of the medias and website of Stock Exchange
for publication of the Company’s Half-year Report and the place for achieving
the Company’s Half-year Report in the reporting period. Please refer to 2023
Annual Report for details.
III. Other Relevant Information
Whether other relevant information has changed during the reporting period
□Applicable Not Applicable
5
4. Main accounting data and financial ratios
Unit: RMB
Reporting period Same period
(2024 first half) last year Change (%)
Revenue 17,920,065,801 15,429,372,309 16.14%
Profit Attributable to the
Equity Holders of the 895,480,117 729,387,557 22.77%
Company
Net Profit Attributable to
Shareholders of Listed
Company After 811,172,488 417,729,211 94.19%
Deducting Non-Recurring
Profit or Loss
Net Cash Generated
733,329,677 1,657,148,337 -55.75%
From Operating Activities
Basic Earnings Per
1.04 0.84 22.77%
Share (RMB)
Diluted Earnings Per
1.04 0.84 22.77%
Share (RMB)
Weighted Average up 0.7
8.29% 7.59%
Return on Equity Ratio percentage points
At the end of the At the end of the
reporting period previous year Change (%)
Total Assets 29,874,677,888 29,141,187,886 2.52%
Shareholders’ Equity
Attributable to the Equity 10,655,967,834 10,350,145,738 2.95%
Holders of the Company
5. Accounting data difference between China GAAP and IFRS
I. Differences in net profit and net assets in financial statements between in
accordance with international accounting standards and Chinese accounting
standards
□Applicable Not Applicable
II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable Not Applicable
6. Non-recurring profit and loss items and amounts
Applicable □Not Applicable
6
Unit: RMB
Reporting period
(2024 first half)
Profit and loss of non-current assets disposal (including
10,591,898
the charge-off part of the asset impairment provision)
Government subsidies included in the current profit and
76,378,976
loss
In addition to the effective hedging business related to
the normal operating business of the Company, holding
the gains and losses of fair value changes arising from
trading financial assets and trading financial liabilities, 13,584,473
as well as the investment income obtained from the
disposal of trading financial assets, trading financial
liabilities and available for sale financial assets
Capital occupation fee charged for non-financial
3,230,604
enterprises included in the current profit and loss
Other non-operating income and expenses except the
-4,020,858
above
Other profit and loss items that meet the definition of
-523,093
non-recurring profit and loss
Less: Income tax impact amount 15,639,039
Influence of minority shareholders' equity -704,668
Total 84,307,629
Details of other profit and loss items that meet the definition of non-recurring
profit and loss
□Applicable Not Applicable
There is no any other profit and loss items that meet the definition of non-
recurring profit and loss in the Company.
The description of that the non-recurring profit and loss items listed in
Corporate Information Disclosure of Public Issuing Securities No.1 are defined
as recurring profit and loss items
□Applicable Not Applicable
The Company does not have a situation in which the non-recurring profit and
loss items listed in No.1 of Corporate Information Disclosure Announcement
No.1 are defined as recurring profit and loss.
7
Chapter III Management Discussion and Analysis
1. Company’s Core Business During the Reporting Period
In 2024, the automotive industry continued to develop positively under the
combined effect of the stable domestic economy, the continuous development
of the automotive old-for-new activities, the successive introduction of local
supporting policies, and the continuous listing of new models in the market
superimposed on the semiannual node of the volume, etc. In the first half of
the year, the total production and sales of automobiles were 13,891 thousand
and 14,047 thousand, with YOY growth of 4.9% and 6.1% respectively.
Among them, the production and sales of passenger cars were 11,886
thousand and 11,979 thousand, with YOY growth of 5.4% and 6.3%
respectively, while those of ccommercial vehicles were 2,005 thousand and
2,068 thousand, with YOY growth of 2% and 4.9% respectively. New energy
vehicles continue the momentum of rapid growth, and their production and
sales in the first half of the year were 4,929 thousand and 4,944 thousand,
with YOY growth of 30.1% and 32% respectively, and the market share was
35.2%.
During the reporting period, the Company's main business is the production
and sale of commercial vehicles, SUVs and related components. The main
products include JMC light truck, Pickup, light bus, Ford-branded light bus,
MPV, Pickup and other commercial vehicles and SUV products. JMC also
produces engines, frame, axle, and components. The Company takes high
quality development as the main line, focuses on value, lean operation, and
transforms from scale expansion development to lean value growth.
In the first half of 2024, JMC continued to increase its technological reserves
and investment in new products, intelligent connection network, new energy
and lightweighting, and strengthened its digital operation capability to realize
the transformation of “four online”, including “products online”, “customers
online”, “processes online” and “employees online”. Through digital
technology, the Company improved operational efficiency, optimize business
processes and innovative business models, and focused on customer-
centered integration of the whole value chain. Meanwhile, JMC actively
expanded its transport capacity operation and used car business, integrated
intelligent technology into its service system, and gradually formed a
customer-centered commercial vehicle ecosystem to focus the entire life cycle
of automobiles and provided customers with all-around solutions. JMC
actively laid out the RV business and off-road pickup and modified car market
to create unique products and lead the market trend; at the same time, the
Company accelerated the demonstration operation of mass production of
intelligent driving and created industry-leading automatic driving solutions
through close cooperation with its partners.
8
2. Core Competitiveness Analysis
The Company is a modern Sino-foreign joint venture that integrates
automobile research and development, manufacturing and sales. It is a
pioneer in the Chinese auto industry that provides excellent products and
solutions for the intelligent logistics field by relying on the market leadership
and advanced technology of light commercial vehicles. It owns the titles of
National High-tech Enterprise, National Innovation Pilot Enterprise, National
Enterprise Technology Center, National Industrial Design Center, National
Intellectual Property Demonstration Enterprise, and National Vehicle Export
Base. It has been ranking among the top 100 most valuable automobile
brands in the world for many consecutive years. In the first half of 2024, JMC
light bus ranked No.1 in the segment, Pickup ranked No.2 in the segment,
and light truck ranked No.6 in the segment. JMC export sales have made
sustained growth, with sales of 52,989 units, a year -on -year increase of
5.9%.
JMC always takes customers as the center, and provides customized
integrated solution based on customer use scenarios. For customers in the
field of medical and health care, the Company has launched more than 10
kinds of "big health" product series, including isolation transfer vehicle,
medical checkup medical vehicle, medical waste transfer vehicle, disinfection
and epidemic prevention vehicle, etc., contributing JMC's power to the
national’s big health. At the same time, the Company continues to empower
smart logistics, design integrated solutions for the needs of large logistics
customers to increase efficiency and reduce cost, and provide C2B
customized product services, end-to-end logistics solutions and overall
logistics capacity platform services.
The Company is a full scenario solution provider for light commercial vehicles.
JMC light bus has an insight into customers’ needs and the light bus operation
scenarios, and has launched high-quality, excellent and cost-effective light
bus product portfolios, achieving the full coverage of scenarios like freight,
and passenger transport. At the same time, it also continues to hold the first
place in the market in light passenger conversion scenarios such as traveling,
money transportation and ambulance. Relying on the leading technology line,
JMC light truck has built the Qingyun Architecture, which combines five major
technology platforms, including intelligent driving, intelligent Internet
connection, advanced electrical architecture, diversified power and high-
performance chassis, bringing users a more intelligent and comfortable,
lightweight and energy-saving vehicle experience. JMC launched "JMC
Dadao", a new Pickup product, positioning "Chinese pickup expert of full
scenarios", covering the market of mid-to-high commercial and passenger
9
dual-use and passenger off-road Pickups whose price are more than RMB
100,000. JMC has established the coexistence strategy of the three series of
Pickup products and completed the full price and product matrix layout in the
Pickup segment.
The Company adheres to the dual-brand strategy of Self-owned and Ford,
giving full play to its own advantages while deeply integrating Ford's global
system. In terms of technology research and development, with the help of
Ford's global platform, the Company has gradually formed the core
competitiveness of independent research and development, established an
independent research and development system, built an advanced global
digital design platform, and jointly develops, designs and launches specific
new products with Ford. The Company has been an industry-leading
technology center and industrial design center in terms of brand channels, the
Company currently has more than 700 tier 1 dealers, with a total of more than
2,000 dealers, and has established a modern marketing system through the
four-in-one franchise model of sales, accessories, service and information. At
the same time, with the ultimate powerful off-road product portfolio,
personalized customized modification and the abundant community activities
as the pillars, more than 100 Ford Beyond experience centers have been built
across the country, and the star product, Ford Bronco, has caused a huge
sensation in the industry and achieved a very good market response as soon
as it was listed. In terms of manufacturing management, the Company has
vehicle production bases such as Xiaolan Plant and Fushan Plant, covering
stamping, welding, painting, diesel engines, gasoline engines and other
advanced manufacturing technology, to create a highly intelligent, highly
flexible smart manufacturing center. The Company is a demonstration
enterprise in Jiangxi Province for integration of informatization and
industrialization. In terms of autonomous driving, the Company has been
working with strategic partner WeRide on commercialization practice, and has
been approved to carry out "purely unmanned test" and "cargo test" for self-
driving urban freight vehicles in Guangzhou, which is the first purely
unmanned remote test permit for L4-class autonomous driving freight vehicles
under urban open road scenarios in China. This is China's first purely
unmanned remote test license for L4-class self-driving freight vehicles in
urban open road scenarios. In the future, the Company will use light
commercial vehicles as carriers, and deeply plough into the development and
operation of self-driving in urban freight transportation and park logistics
scenarios. In terms of new energy, JMC has launched various new energy
products such as E Lu Da, Da Dao EV and E-Transit, released the new
energy transportation brand "JMC Fun-to-Drive" which expanded the
transportation and leasing business of the Company, and committed to
providing customers with systematic solution of "full-scene product coverage,
full-scene customer service, and full-scene ecological construction" from a
holistic perspective to create the greatest value for users from a practical point
of view. In terms of export business, the Company has entered into a
Framework Agreement on Vehicle Export Opportunities with Ford. Relying on
Ford’s mature global business layout and network, both parties intend to
procure the Company to become an export product engineering and
10
manufacturing center based in China and supporting Ford’s global sales
network.
3. Core Business Analysis
Summary
Refer to the relevant content of “1. the Company’s Core Business During the
Reporting Period”.
Year-over-Year Changes of Main Financial Data
Unit: RMB
YOY change
2024 1H 2023 1H Reason
（%）
Revenue 17,920,065,801 15,429,372,309 16.14%
Cost of sales 15,489,880,688 13,282,569,929 16.62%
Distribution costs 617,075,751 529,719,611 16.49%
Administrative expenses 460,505,827 520,114,941 -11.46%
Finance expense -87,655,467 -93,306,361 6.06%
Mainly the effect of
Income tax expense -56,969,254 -91,534,142 -37.76%
changes in profits.
Research and
802,077,814 1,084,212,021 -26.02%
Development Expenditure
Mainly due to the
increase in cash
Net cash generated from paid for operating
733,329,677 1,657,148,337 -55.75%
operating activities activities compare
with the same period
last year.
Net cash used in investing
-688,756,260 -658,303,311 -4.63%
activities
Due to reduction in
Net cash used in financing
-823,411,831 -283,374,696 -190.57% borrowings during
activities
the current period.
Mainly due to lower
cash flows from
Net increase/(decrease) in
-778,838,414 715,470,330 -208.86% operating activities
cash and cash equivalents
during the current
period.
Significant changes in the composition or source of profits during the reporting
period
□Applicable Not Applicable
There was no significant change in the composition or source of profits in the
period.
Composition of Core Business
Unit: RMB
11
2024 First Half 2023 First Half
YOY change
Proportion Proportion
Amount Amount （%）
(%) (%)
Revenue 17,920,065,801 100% 15,429,372,309 100% 16.14%
By Industry
Automobile Industry 17,920,065,801 100.00% 15,429,372,309 100.00% 16.14%
By Products
Vehicle 16,234,132,009 90.59% 13,332,827,137 86.41% 21.76%
Components 858,699,049 4.79% 1,810,283,833 11.73% -52.57%
Automobile Maintenance
343,013,155 1.91% 60,945,176 0.40% 462.82%
services, etc.
Material & Others 484,221,588 2.71% 225,316,163 1.46% 114.91%
By region
China 17,920,065,801 100.00% 15,429,372,309 100.00% 16.14%
Reach to 10% of Revenue or Profit by Industry, Product or Region
Applicable □Not Applicable
Unit: RMB
Y-O-Y gross
Gross Y-O-Y turnover Y-O-Y Cost
Turnover Cost margin change
Margin change (%) Change (%)
(points)
By Industry
Automobile
17,920,065,801 15,489,880,688 13.56% 16.14% 16.62% -0.35%
Industry
By Products
Vehicle 16,234,132,009 14,124,912,768 12.99% 21.76% 22.04% -0.20%
By Region
China 17,920,065,801 15,489,880,688 13.56% 16.14% 16.62% -0.35%
If the Company’s core business scope is adjusted during the reporting period,
the Company’s core business data of last year need to be adjusted per the
scope in this year
□Applicable Not Applicable
4. Non-core business analysis
□Applicable Not Applicable
5. Analysis of Assets and Liabilities
I. Major changes
Unit: RMB
YOY
June 30, 2024 December 31, 2023 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash equivalents 11,043,905,115 36.97% 11,830,560,675 40.60% -3.63%
Accounts receivables 4,711,811,192 15.77% 4,401,826,022 15.11% 0.66%
Inventories 2,118,012,490 7.09% 1,560,259,511 5.35% 1.74%
Long-term equity
227,134,693 0.76% 233,798,348 0.80% -0.04%
investments
12
Fixed assets 5,469,283,281 18.31% 5,389,645,152 18.49% -0.18%
Construction in progress 586,821,753 1.96% 464,431,412 1.59% 0.37%
Right-of-use asset 190,820,207 0.64% 194,836,028 0.67% -0.03%
Short-term borrowings 500,000,000 1.67% 1,300,000,000 4.46% -2.79%
Contract liabilities 341,737,019 1.14% 243,740,992 0.84% 0.30%
Long-term borrowings 1,166,732 0.00% 1,391,414 0.00% 0.00%
Lease liabilities 90,195,237 0.30% 138,005,943 0.47% -0.17%
II. Main Overseas Assets
□Applicable Not Applicable
III. The fair value of the assets and liabilities.
Applicable □Not Applicable
Unit: RMB
1.Trading
financial 2.
assets Derivative financial
financial financial
Financing Financial
Item (excluding assets Subtotal
assets assets receivables liabilities
derivative Subtotal
financial
assets)
Beginning
of the 200,604,877 0 200,604,877 123,170,062 323,774,939 0
period
Loss/profit
in fair value
-21,425 4,510,945 4,489,520 4,489,520
in the
period
Cumulative
changes in
fair value
recorded
into equity
Impairment
in the
period
Purchase in
400,000,000 400,000,000 1,163,432,307 1,563,432,307
the period
Sell in the
400,000,000 400,000,000 1,011,825,137 1,411,825,137
period
Other
changes
End of the
200,583,452 4,510,945 205,094,397 274,777,232 479,871,629 0
period
Other change
None.
Whether there is a significant change in the measurement attributes of the
Company's main assets during the reporting period
□Applicable Not Applicable
13
IV. Restriction on Assets Rights as of the End of the Reporting Period
Unit: RMB
Book value at the end
Items Cause for restriction
of the period
Cash and cash
18,760,506 Frozen funds for litigation.
equivalents
6. Investment Analysis
I. Summary
□Applicable Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□Applicable Not Applicable
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable Not Applicable
IV. Financial Assets Investment
(a) Stock Investment
□Applicable Not Applicable
There was no stock investment on the reporting period.
(b)Derivative Investment
□Applicable Not Applicable
There was no derivative investment on the reporting period.
V. Usage of Raised Fund
□Applicable Not Applicable
There was no usage of raised fund on the reporting period.
7. Sales of Major Assets and Equity
I. Sales of Major Assets
□Applicable Not Applicable
No Major Assets were sold during the reporting period.
II. Sales of Major Equity
□Applicable Not Applicable
8. Analysis of major shareholding companies
Applicable □Not Applicable
Operating Results of Main Subsidiaries and Joint-Stock Companies whose
impact on JMC’s net profit more than 10%
14
Unit: RMB
Jiangling Motors Jiangling Ford Motor
Name of JMC Heavy Duty
Sales Corporation, Technology
companies Vehicle Co., Ltd.
Ltd (Shanghai) Co., Ltd.
Type of
Subsidiary Subsidiary Holding subsidiary
companies
Engineering and
technology research
Production and sales
and experimental
Sales of vehicles of automobiles,
Main business development, sales of
and service parts. engines and other
vehicles, new energy
automotive parts.
vehicles, auto parts,
etc.
Registered
50,000,000 1,323,793,174 200,000,000
capital
Total assets 4,903,754,988 382,869,556 904,961,583
Net assets 208,684,076 352,816,966 -1,326,262,052
Turnover 9,736,398,321 179,025 2,085,240,315
Operating
-60,871,513 -13,711,429 -772,460,050
profit
Net profit -45,956,961 -13,425,806 -580,806,710
Acquisition and disposal of the subsidiaries
□Applicable Not Applicable
Description of the main holding and participating companies
None.
9. Structured Entities Controlled by JMC
□Applicable Not Applicable
10. Potential Challenges and Solutions
In 2024, China is in a critical period of economic recovery and transformation
and upgrading. Despite the complexity, severity and uncertainty of the
external environment is obviously rising, and the domestic structural
adjustment continues to deepen, which bring new challenges, the economic
growth in the first half of this year is generally stable, and the foundation of the
economic upturn is relatively solid, based on accelerating the cultivation of
new quality productivity, and continue to stimulate the new kinetic energy, the
fundamentals of China's economy in the long term to the good have not
changed. Changes in the automotive industry in terms of electrification,
internet connectivity, intelligence and sharing are accelerating, and the scale
of China's automotive exports continues to expand, while price competition in
15
the industry is becoming increasingly fierce. In order to maintain steady
growth, JMC will focus on the following aspects:
(1) To adhere to the customer-centric concept, gain in-depth insight into
customer needs and changes in the market environment, explore new
business growth points, and get in on the ground floor in the disruptive
industry changes;
(2) To continuously expanding brand reputation, strengthening brand
operation, enriching product matrix and enhancing product competitiveness;
(3) To continuously promote the Ford Beyond transformation, stimulate
channel vitality, improve the quality of community activities, and create a new
off-road experience ecosystem;
(4) To accelerate the research and development and launch of new energy
products, continue to promote the construction of new energy channels,
optimize the operation and management of transport capacity, and strengthen
the risk management and control of asset operations;
(5) To developing overseas business capacity, improving overseas service
level, accelerating export product development, enhancing the international
competitiveness of export products, deepening export business cooperation
with shareholders, and expanding new market opportunities;
(6) To accelerating the Company's digital transformation, exploring the
application of AI big models, continuing to enhance customer experience and
the digital competitiveness of the Company, and improving operational
efficiency;
(7) To strengthen product quality control, establish a culture of "quality
leadership", and improve the level of after-sales service capabilities;
(8) To continuously promote cost reduction, expenses control and efficiency
enhancement, meanwhile, strengthen the management and control of
operating cash flow to improve the quality of operations;
(9) To strengthen corporate governance, strictly comply with national laws and
regulations, and improve risk assessment and control mechanisms.
JMC will follow the customer-centric concept, focus on light commercial
vehicles, deepen the marketing system reform, promote brand building and
channel rejuvenation, consolidate the core competitiveness of light
commercial vehicles, and consolidate and enhance the market position of light
commercial vehicles. The Company will attach equal importance to passenger
cars and commercial vehicles, promote the Ford Beyond channel construction,
operate a high-end off-road brand image, enhance product market awareness,
increase the scale of passenger car sales. The Company will accelerate the
transformation of new energy business, launch new energy products with
market competitiveness, promote the healthy development of transport
capacity operation business, gain insight into overseas markets, and explore
new overseas markets and expand export sales.
16
The Company will continue to achieve “stable development with solid
foundation and additive energy for emerging business”, deeply promote sci-
tech innovation and industrial transformation, and taking the new
industrialization, information technology application, urbanization, and
agricultural modernization as well as digital transformation as the lead,
accelerate the cultivation of new quality productivity. At the same time, JMC
will continue to implement the strategy of quality leadership, optimize the cost
structure, promote cost reduction and efficiency enhancement, improve
profitability and create sufficient cash flow to support the Company’s high-
quality development.
11. Implementation of the action plan of "Double Enhancement of Quality and
Return"
Whether the Company has disclosed the action plan of "Double Enhancement
of Quality and Return".
□Yes No
17
Chapter IV Corporate Governance Structure
1. Introduction of the Shareholders’ Meetings Held in the Reporting Period
I. Index of the Shareholders’ Meetings in the reporting period
In the first half of 2024, the Company has hold three Shareholders’ Meetings,
and the relevant contents are as follows:
(1) Session of the meeting：2024 First Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 78.02%
Convening date: February 6, 2024
Disclosure date: February 7, 2024
The meeting resolutions:
1. approve the Proposal on Providing Financial Assistance to a Holding
Subsidiary;
2. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with JMCG Finance Company;
3. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its
subsidiaries;
4. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Jiangling Motor Group Co., Ltd. and its subsidiaries;
5. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Ford and its subsidiaries;
6. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Magna PT Powertrain (Jiangxi) Co., Ltd.;
7. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Nanchang Jiangling Huaxiang Auto Components Co., Ltd.;
8. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
9. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with China South Industries Group Co., Ltd. and its subsidiaries;
10. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
11. approve the Proposal on the Y2024 Routine Related Party Transaction
Framework with Faurecia Emissions Control Technologies (Nanchang) Co.,
Ltd.;
(2) Session of the meeting：2024 Second Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.62%
Convening date: April 11, 2024
Disclosure date: April 12, 2024
The meeting resolutions:
18
1. approve the Proposal on Retaining of External Auditor and C-SOX Auditor;
2. approve the Proposal on Electing Ms. Zhong Junhua as a Director on the
Eleventh Board of Directors of JMC.
(3) Session of the meeting：2023 Annual Shareholders’ Meeting
The meeting type: annual shareholders’ meeting
Investor participation ratio: 76.73%
Convening date: June 25, 2024
Disclosure date: June 26, 2024
The meeting resolutions:
1. approve the 2023 Work Report of the Board of Directors of JMC;
2. approve the 2023 Work Report of the Supervisory Board of JMC;
3. approve the 2023 Annual Report of JMC and the Extracts from such Annual
Report;
4. approve the 2023 Financial Statements of JMC;
5. approve the Proposal on JMC Profit Distribution for Year 2023.
II. Special Shareholders’ Meeting convened by preferred-shareholders whose
voting rights were restored
□Applicable Not Applicable
2. Changes of Directors, Supervisors and senior management
Applicable □Not Applicable
Name Position Status Date Reason
Zhong
Director Elected 2024.04.11 Work need
Junhua
Jin Wenhui Ex-Director Leave 2024.04.11 Work rotation.
Zhong
EVP Employment 2024.03.26 Appointment due to work need.
Junhua
Jin Wenhui Ex-EVP Leave 2024.03.26 Work rotation.
3. Proposal on profit distribution and converting capital reserve to share
capital for the reporting period
□Applicable Not Applicable
The Company planned that neither cash dividend nor stock dividend was
distributed, and not to convert capital reserve to share capital for the first half
of 2024.
4. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan
and Other Employee Incentive Method
□Applicable Not Applicable
There was neither equity incentive plan or ESOP, nor other employee
incentive method during the reporting period.
19
Chapter V Environmental and Social Responsibility
1.Major Environmental issues
(1) Environmental protection
Whether the Company and affiliates is the key pollution discharge unit
published by environmental protection administration?
Yes □No
Environmental protection related policies and industry standards
In the first half of 2024, the Ministry of Ecology and Environment of the PRC
updated the Measures for the Administration of Sewage Discharge Permits,
and the Department of Ecology and Environment of Jiangxi Province issued
the Measures for the Law Enforcement and Supervision of Ecological and
Environmental Classification in Jiangxi Province. The Company organized
relevant personnel to study and master the latest regulations, policies and
industry standards, and took comprehensive and systematic measures to
ensure that the Company's environmental management work meets the
requirements of national and local laws and regulations.
Situation of administrative permit for environmental protection
In the first half of 2024, the application for extension of the discharge permit of
the Fushan plant was passed, the discharge permit of the Xiaolan plant has
been passed the re-application, and the discharge permits of the other plants
are within the validity period; the Company’s frame welding line technology
improvement project has obtained the approval of the environmental
assessment.
Industry emission standards and specifics of pollutant emissions
involved in production and business activities
Name of
company or JMC JMC
subsidiary
Kind of principal
Wastewater discharge
pollutant and Exhaust emission pollutant
pollutant
specific pollutant
Name of principal
pollutant and COD, NH-N SO2, NOx, NMHC
specific pollutant
Mode of
Continuous discharge Continuous discharge
discharge
Number of
5 150
discharge outlet
Distribution of 1 in Fushan Site, 2 in 38 in Fushan Site, 81 in
discharge outlet Xiaolan Site, 1 in Cast Xiaolan Site, 28 in Cast Plant
Plant and 1 in Axle and 3 in Axle Plant
20
Plant
Discharge NOx: 3-159mg/m
concentration COD: 27.06-83.95mg/L; NMHC: Xiaolan Plant
NH-N: 0.33-5.17mg/L 10.09g/m2;
Fushan Plant 5.38g/m2;
Applicable Emission Standards for
standard for Atmospheric Pollutants from
pollutant Boilers (GB13271-2014);
Gan EIA [2015] No.
discharge Volatile Organic Compounds
144;
Emission Standards - Part 5:
Integrated Wastewater
Auto Manufacturing
Discharge Standard
(DB36/1101.5-2019);
(GB 8978-1996)
Emission Standard of Air
Pollutants for Foundry
Industry (GB 39726—2020)
Total amount of NOx: 28.44t
COD: 18.97t;
discharge NMHC: Xiaolan Plant 94t,
NH-N: 1.02t
Fushan Plant 32t
Total amount of
COD≤517.39t; NOx≤95.59t
discharge
NH-N≤24.795t NMHC≤1882.4t
audited
Excessive Meet Standard Meet Standard
discharge
Treatment of pollutants
In the first half of 2024, about 360 thousand tons of wastewater were treated,
and the treated wastewater steadily met the national discharge standards. In
2024, Fushan Plant and Xiaolan Plant were awarded the 2024 first batch of
VOCs performance A & B level enterprises of key industries in heavy pollution
weather in Jiangxi Province. At the same time, the Company formulated the
"VOCs Online Monitoring Compliance Rate Enhancement Program" to stably
operate the waste gas treatment facilities. JMC smart environmental
protection supervision platform monitors in real time to ensure the stable up-
to-standard discharge of VOC data. In terms of the waste management, the
Company has taken measures to unify the standardization of visualization
standards and other measures to enhance the management of hazardous
waste sites, and implemented a project to enhance the intelligent
management system for hazardous waste. continuously adopted intelligent
management system to further standardize the refined management of
hazardous waste. And by means of source control, brainstorming, digging into
the internal potential, the Company has actively adopted various types of
waste reduction and fee reduction measures such as painting and cleaning
process improvement, and the amount of hazardous waste disposed of by a
single unit in the first half of 2024 decreased by 23.7% compared with that of
2023.
Emergency plan on emergency environmental incidents
21
The Company did not experience any sudden environmental emergencies in
the first half of 2024. In order to dilute or prevent environmental risks, JMC
established an emergency preparation and response procedure and specific
environmental emergency plans which has been filed with the Environmental
Protection Bureau. The Company has formulated the control methods for
potential accidents and emergences occurred or that may probably occur, and
organized emergency drills every year to ensure the effectiveness of the plan.
Relevant information of investment in environmental governance and
protection and payment of environmental protection tax
In the first half of 2024, the Company invested approximately RMB 10.44
million in environmental remediation, operation and maintenance, of which,
RMB 1.76 million for operation of the wastewater treatment stations, RMB
2.84 million for disposal of solid wastes, RMB 520 thousand for environmental
monitoring and online operation, RMB 220 thousand for upgrading automatic
monitoring equipment and facilities, , RMB 100 thousand for upgrading the
Hazardous Waste Intelligent Management System, and specially, RMB 5
million for the implementation of the transformation project of Fushan Plant
painting topcoat robot cleaning machine. In the first half of 2024, JMC paid a
total of approximately RMB 97 thousand for environmental protection tax.
Remarks: The exhaust gas treatment facilities were not counted separately for
the operating expenses due to the overall operation with the production
facilities.
Environmental self-monitoring scheme
The Company carries out self-monitoring in strict accordance with the
requirements of the state. The monitoring schemes, monitoring results, and
annual monitoring report on pollution sources were disclosed on the
government platform. In the first half of 2024, the reporting rate of self-
monitoring data of the Company's four plants on the national monitoring
platform is 100%.
Administrative punishment for environmental problems during the
reporting period
None.
Other environmental information that should be disclosed
None.
Measures and effects taken to reduce carbon emissions during the
reporting period
Applicable □Not Applicable
22
In the first half of 2024, the Company used 29.69 million kWh of green electric
power, saving 8479.46 tons of standard coal and reducing 21,139.29 tons of
CO2 emissions.
By renovating and upgrading the original station air conditioning, 279,000 Nm3
of natural gas was saved, 338.7 tons of standard coal was saved, and 844.38
tons of carbon dioxide emissions were reduced in the first half of 2024.
Other environmental protection related information
None.
2. Social responsibility
JMC deeply implemented the decision arrangement of the CPC Central
Committee on consolidating our gains in poverty elimination and advancing
rural revitalization across the board, and offered paired assistance to
Hongxing Village of Liuhu Town of Honggutan New District of Nanchang City,
and Luoyang Village of Dafen Town of Suichuan County of Ji’an City
according to the requirements of the CPC Jiangxi Provincial Committee and
People’s Government of Jiangxi Province, and under the leadership of JMCG.
The Company take industrial revitalization as a channel, by means of talent
dispatching, consumption assistance, etc., to deeply promote rural
revitalization work. In the first half of 2024, the Company purchased more
than 4,000 jin of rapeseed oil, 43,000 jin of yellow peaches, and 4,000 jin of
pasta from the assisted villages, which increased the village’s collective
income of more than RMB 47,000 by the “1 RMB program”.
In the first half of 2024, JMC donated RMB 2 million to China Foundation for
Rural Development to implement the “JMC Xiqiao Project”. The "Build a
Bridge together JMC Xiqiao Monthly Donor Program" was launched on the
official public fundraising platform of the China Rural Development Fund,
"Public Welfare for All". Through JMC Smart Drive APP, millions of JMC
vehicle owners link with the JMC Xiqiao Project to drive more forces for rural
revitalization.
23
Chapter VI Major Events
1. Commitments of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue
unfinished by the end of the reporting period
□Applicable Not Applicable
There is no commitment of actual controlling parties, shareholders, related
parties, acquirers and the Company finished in the reporting period or
overdue unfinished by the end of the reporting period.
2. Non-operating funding in the Company occupied by controlling shareholder
and its affiliates
□Applicable Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates.
3. Illegal outside guarantee
□Applicable Not Applicable
The Company had no illegal outside guarantee during the reporting period.
4. Appointment or Dismissal of Accounting Firm
Whether the 2024 half-year report is audited?
□Yes No
JMC 2024 half-year report is not audited.
5. Explanation of the Board of Directors, the Supervisory Board to abnormal
opinions from accounting firm for the reporting period
□Applicable Not Applicable
6. Explanation of the Board of Directors to abnormal opinions from accounting
firm in 2023 report
□Applicable Not Applicable
7. Related Matters regarding Bankruptcy
□Applicable Not Applicable
There was no matter involving bankruptcy during the reporting period.
8. Litigation or arbitration
Major Litigation or Arbitration
□Applicable Not Applicable
There was no major litigation or arbitration during the reporting period.
Other litigation
□Applicable Not Applicable
24
9. Punishment
□Applicable Not Applicable
10. Honesty and credit of JMC and its controlling shareholder or actual
controlling party
□Applicable Not Applicable
11. Major related transactions
I. Routine related party transactions
Applicable □Not Applicable
Please refer to the note 7 “Related party Transactions” to the financial
statements in the Chapter X Financial Statements for details.
II. Major related party transaction concerning transfer of assets or equity
□Applicable Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.
III. Related party transaction concerning outside co-investment
□Applicable Not Applicable
There was no outside co-investment during the reporting period.
IV. Related credit and debt
Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes No
The Company had no non-operating related credit and debt in the reporting
period.
V. Transaction with related financial companies or financial companies that
the company holds
Applicable □Not Applicable
Deposit business
Balance at Current amount
Balance at
the
Maximum Deposit Take out the the end of
Related The related beginning of
daily deposit Deposit rate amount amount the period
party relationship the
limit (RMB (RMB (RMB
period(RMB
thousands) thousands) thousands)
thousands)
JMCG Wholly-owned
1.35%-
Finance Subsidiary of * 1,092,870 8,038,310 7,847,350 1,283,830
JMCG 2.25%
Company
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company
at the end of each month to the lower of the following: 1) 25% of JMCG
Finance Company absorbing deposit in prior year end; or 2) 12% of JMC’s
consolidated total cash reserve.
25
Loan business
Balance at Current amount
the Balance at
loan limit Loan beginning Loan Repayment the end of
Related The related
(RMB rate of the amount amount the period
party relationship
thousands) range period (RMB (RMB (RMB
(RMB thousands) thousands) thousands)
thousands)
JMCG Wholly-
owned
Finance Subsidiary of
1,300,000 0% 0 0 0 0
Company JMCG
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance Wholly-owned
Subsidiary of JMCG
Granting credit 1,300,000 0
Company
VI. The transactions between the financial company controlled by the
company and its related parties
□Applicable Not Applicable
The Company has no controlling financial company.
VII. Other major related party transactions
□Applicable Not Applicable
The Company has no other major related party transaction in the reporting
period.
12. Major Contracts and Execution
(1) Entrustment, contract or lease
a. Entrustment
□Applicable Not Applicable
There was no entrustment in the reporting period.
b. Contract
□Applicable Not Applicable
There was no contract in the reporting period.
c. Lease
Applicable □Not Applicable
Please refer to the Note 4 (16), note 4 (31) and note 7 (5) (b) of the financial
statements in the Chapter X Financial Statements for details.
Project of which the profit and loss brought for the company reaches more
than 10% of the total profit of the company during the reporting period
□Applicable Not Applicable
26
There was no leasing project of which the profit and loss brought for the
Company reached more than 10% of the total profit of the Company during
the reporting period.
II. Major guarantee
□Applicable Not Applicable
The Company had no outside guarantee in the reporting period.
III. Entrusted financial management
□Applicable Not Applicable
There was no entrusted financial management in the reporting period.
IV. Other Major Contracts
□Applicable Not Applicable
There was no other major contract in the reporting period.
13. Other major events
□Applicable Not Applicable
There was no other major event in the reporting period.
14. Major event of JMC subsidiary
□Applicable Not Applicable
27
Chapter VII Share Capital Changes & Shareholders
1. Changes of shareholding structure
I. Table of the changes of shareholding structure
Before the change Change (+, -) After the change
Proportion Reserve- Proportion
New Bonus Sub-
Shares of total converted Others Shares of total
shares Shares total
shares (%) shares shares (%)
I. Limited tradable
750,840 0.09% 750,840 0.09%
A shares
1. Other domestic
750,840 0.09% 750,840 0.09%
shares
Including:
Domestic legal
745,140 0.09% 745,140 0.09%
person shares
Domestic natural
5,700 0.00% 5,700 0.00%
person shares
II. Unlimited
862,463,160 99.91% 862,463,160 99.91%
tradable shares
1. A shares 518,463,160 60.06% 518,463,160 60.06%
2. B shares 344,000,000 39.85% 344,000,000 39.85%
III. Total 863,214,000 100.00% 863,214,000 100.00%
Causes of shareholding changes
□Applicable Not Applicable
Approval of changes of shareholding structure
□Applicable Not Applicable
Shares Transfer
□Applicable Not Applicable
Progress in the implementation of share repurchase
□Applicable Not Applicable
The implementation progress of reducing the buyback shares by means of
centralized bidding
□Applicable Not Applicable
Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’
equity attributable to the equity holders of the Company, generated from
shares transfer
□Applicable Not Applicable
Others to be disclosed necessarily or per the requirements of securities
regulator
□Applicable Not Applicable
II. Changes of limited A shares
□Applicable Not Applicable
28
2. Securities issuance and listing
□Applicable Not Applicable
3. Shareholders and shareholding status
Total shareholders (as of JMC had 29,904 shareholders, including 24,401 A-shareholders, and 5,503 B-shareholders.
June 30, 2024)
Top ten shareholders
Shares
Shareholding Shares at Shares with due to
Shareholder
Shareholder Name Percentage the End of Change (+,-) Trading mortgage
Type
(%) Year Restriction or mark or
frozen
Nanchang Jiangling State-owned
41.03% 354,176,000 0 0 0
Investment Co., Ltd. legal person
Foreign legal
Ford Motor Company 32.00% 276,228,394 0 0 0
person
Hong Kong Securities
Foreign legal
Clearing Company Ltd. 4.01% 34,636,448 422,620 0 0
person
(HKSCC)
Domestic natural
Jin Xing 0.72% 6,204,200 -1,341,900 0 0
person
China Merchants Foreign legal
0.56% 4,818,133 3,565,177 0 0
Securities (HK) Co., Ltd. person
Guangfa Wen Xin Domestic non-
Capital Preservation State-owned 0.39% 3,370,480 3,370,480 0 0
Hybrid legal persons
Guangfa Ruixuan Three
Months Regularly Open Domestic non-
Mixed Initiating State-owned 0.29% 2,511,500 2,511,500 0 0
Securities Investment legal persons
Fund
Guangfa Shengjing Domestic non-
Mixed Securities State-owned 0.27% 2,359,060 2,359,060 0 0
Investment Fund legal persons
Domestic natural
Li Yifeng 0.26% 2,227,500 -703,400 0 0
person
MORGAN STANLEY &
Foreign legal
CO. INTERNATIONAL 0.25% 2,157,624 1,516,021 0 0
person
PLC.
Strategic investors or general legal persons
become the top 10 shareholders due to the None.
placement of new shares
Notes on association among above-mentioned Guangfa Wen Xin Capital Preservation Hybrid, Guangfa Ruixuan
shareholders Three Months Regularly Open Mixed Initiating Securities
Investment Fund, Guangfa Shengjing Mixed Securities
Investment Fund are in custody of GF FUND MANAGEMENT
CO.,LTD. Shareholders holding more than 5% are not related.
Description of the above shareholders' entrusted /
None.
entrusted voting rights and waived voting rights
A special description of the special repurchase
None.
account among the top 10 shareholders
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Restriction Share Type
Nanchang Jiangling Investment Co., Ltd. 354,176,000 A share
Ford Motor Company 276,228,394 B share
Hong Kong Securities Clearing Company Ltd. (HKSCC) 34,636,448 A share
Jin Xing 6,204,200 B share
China Merchants Securities (HK) Co., Ltd. 4,818,133 B share
29
Guangfa Wen Xin Capital Preservation Hybrid 3,370,480 A share
Guangfa Ruixuan Three Months Regularly Open Mixed Initiating
2,511,500 A share
Securities Investment Fund
Guangfa Shengjing Mixed Securities Investment Fund 2,359,060 A share
Li Yifeng 2,227,500 B share
MORGAN STANLEY & CO. INTERNATIONAL PLC. 2,157,624 A share
Explanation of the association or concerted Guangfa Wen Xin Capital Preservation Hybrid, Guangfa Ruixuan Three
action between the top 10 unlimited tradable Months Regularly Open Mixed Initiating Securities Investment Fund,
shareholders, and between the top 10 Guangfa Shengjing Mixed Securities Investment Fund are in custody of
unlimited tradable shareholders and the top GF FUND MANAGEMENT CO.,LTD. Shareholders holding more than
10 shareholders 5% are not related.
Description of Shareholders Participating in None.
Financing and Securities Financing Business
Participation of Shareholders holding more than 5% of shares, top 10
shareholders and top 10 shareholders with unlimited shares in the lending of
shares in the refinancing business
□Applicable Not Applicable
Change in the top 10 shareholders of the Company and the top 10
shareholders with unlimited shares from the previous period due to
lending/repatriation of refinancing business
□Applicable Not Applicable
Stock buy-back by top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Applicable Not Applicable
The top 10 common shareholders of the Company and the top 10 common
shareholders with unlimited conditions of sale did not conduct agreed
repurchase transactions during the reporting period.
4. Changes of shares held by Directors, Supervisors and senior management
□Applicable Not Applicable
There was no change of shares held by Directors, Supervisors and senior
management in the reporting period. Please refer to 2023 annual report for
details.
5. Change of controlling shareholders or actual controlling parties
Change of controlling shareholders
□Applicable Not Applicable
There was no change of controlling shareholders during the reporting period.
Change of actual controlling parties
□Applicable Not Applicable
There was no change of actual controlling parties during the reporting period.
30
Chapter VIII Preferred Shares
□Applicable Not Applicable
JMC had no preferred shares in the reporting period.
31
Chapter IX Bond related Information
□Applicable Not Applicable
32
Chapter X Financial Statements
JIANGLING MOTORS CORPORATION, LTD.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
[English translation for reference only. Should there be any inconsistency between
the Chinese and English versions, the Chinese version shall prevail.]
33
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 30 JUNE 2024
(All amounts in RMB Yuan unless otherwise stated)
30 June 2024 31 December 2023 30 June 2024 31 December 2023
Assets Note
Consolidated* Consolidated Company* Company
Current assets
Cash and cash equivalents 4(1) 11,043,905,115 11,830,560,675 8,762,470,742 8,697,182,460
Financial assets held for
4(2) 200,583,452 200,604,877 - -
trading
Derivative financial assets 4(3) 4,510,945 - 4,510,945 -
Notes receivable 4(4) - 14,621,337 500,000,000 700,000,000
4(5)、
Accounts receivable 4,711,811,192 4,401,826,022 5,865,100,512 4,594,376,160
13(1)
Financing receivables 4(6) 274,777,232 123,170,062 12,598,753 17,979,578
Advances to suppliers 4(7) 115,585,832 204,358,759 115,585,832 204,358,759
4(8)、
Other receivables 90,616,478 75,319,848 90,027,657 71,813,906
13(2)
Inventories 4(9) 2,118,012,490 1,560,259,511 2,110,559,732 1,558,685,526
Current portion of non-current
4(11) 16,828,704 15,749,806 14,828,932 14,495,736
assets
Other current assets 4(10) 1,307,258,115 951,659,556 1,008,289,892 731,819,005
Total current assets 19,883,889,555 19,378,130,453 18,483,972,997 16,590,711,130
Non-current assets
Long-term receivables 4(12) 17,082,583 22,775,696 9,224,157 16,699,348
4(13)、
Long-term equity investments 227,134,693 233,798,348 779,788,623 786,452,278
13(3)
Fixed assets 4(14) 5,469,283,281 5,389,645,152 5,145,233,915 5,176,956,698
Construction in progress 4(15) 586,821,753 464,431,412 529,955,912 438,083,465
Right-of-use assets 4(16) 190,820,207 194,836,028 178,136,399 183,725,741
Intangible assets 4(17) 1,736,954,077 1,691,021,121 1,518,077,008 1,469,907,538
Development expenditures 4(18) 224,666,128 283,738,155 224,666,128 283,738,155
Goodwill 4(21) - - - -
Deferred tax assets 4(19) 1,528,691,458 1,472,003,554 30,100,335 185,190,368
Other non-current assets 4(20) 9,334,153 10,807,967 9,334,153 10,807,967
Total non-current assets 9,990,788,333 9,763,057,433 8,424,516,630 8,551,561,558
TOTAL ASSETS 29,874,677,888 29,141,187,886 26,908,489,627 25,142,272,688
34
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS (CONT'D) AS AT 30 JUNE 2024
(All amounts in RMB Yuan unless otherwise stated)
30 June 2024 31 December 2023 30 June 2024 31 December 2023
Liabilities and equity Note
Consolidated* Consolidated Company* Company
Current liabilities
Short-term borrowings 4(22) 500,000,000 1,300,000,000 500,000,000 1,300,000,000
Derivative financial liabilities 4(3) - 459,306 - 459,306
Accounts payable 4(23) 10,503,654,457 9,476,215,223 10,497,008,493 9,475,904,232
Contract liabilities 4(24) 341,737,019 243,740,992 477,791,775 29,190,915
Employee benefits payable 4(25) 697,285,331 890,051,287 616,877,395 788,409,476
Taxes payable 4(26) 120,374,397 118,399,765 116,006,960 97,718,547
Other payables 4(27) 6,461,271,467 5,944,976,093 2,941,278,412 2,377,082,577
Current portion of non-
4(28) 102,500,086 93,383,898 94,089,564 86,713,258
current liabilities
Other current liabilities 4(29) 391,701,548 373,948,630 91,638,568 36,085,601
Total current liabilities 19,118,524,305 18,441,175,194 15,334,691,167 14,191,563,912
Non-current liabilities
Long-term borrowings 4(30) 1,166,732 1,391,414 1,166,732 1,391,414
Lease liabilities 4(31) 90,195,237 138,005,943 86,063,597 134,081,724
Provisions 4(32) 332,686,679 315,700,263 1,234,439 -
Deferred income 4(33) 65,025,145 67,601,361 65,025,145 67,601,361
Long-term employee
4(34) 50,956,050 52,891,000 50,627,050 52,562,000
benefits payable
Deferred tax liabilities 4(19) 18,971,266 19,256,890 - -
Other non-current liabilities 4(35) 191,053,046 120,293,201 - -
Total non-current
750,054,155 715,140,072 204,116,963 255,636,499
liabilities
Total liabilities 19,868,578,460 19,156,315,266 15,538,808,130 14,447,200,411
Equity
Share capital 4(36) 863,214,000 863,214,000 863,214,000 863,214,000
Capital surplus 4(37) 839,442,490 839,442,490 839,442,490 839,442,490
Other comprehensive
4(38) (20,572,000) (20,572,000) (20,979,000) (20,979,000)
income
Special reserve 4,601,980 3,821,625 4,601,980 3,821,625
Surplus reserve 4(39) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 4(40) 8,537,674,364 8,232,632,623 9,251,795,027 8,577,966,162
Total equity attributable to
shareholders of the 10,655,967,834 10,350,145,738 11,369,681,497 10,695,072,277
Company
Minority interests (649,868,406) (365,273,118) - -
Total equity 10,006,099,428 9,984,872,620 11,369,681,497 10,695,072,277
TOTAL LIABILITIES AND
29,874,677,888 29,141,187,886 26,908,489,627 25,142,272,688
EQUITY
note：* Unaudited financial indexes
35
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR 2024 FIRST HALF-YEAR
(All amounts in RMB Yuan unless otherwise stated)
2024 First 2023 First 2024 First 2023 First
Item Note Half-year Half-year Half-year Half-year
Consolidated* Consolidated* Company* Company*
Revenue 4(41)、13(4) 17,920,065,801 15,429,372,309 17,885,950,058 15,449,037,934
4(41)、
Less: Cost of sales (15,489,880,688) (13,282,569,929) (15,176,367,555) (12,870,083,505)
4(47)、13(4)
Taxes and surcharges 4(42) (673,383,353) (440,363,547) (651,112,639) (434,553,879)
Selling and distribution
4(43)、4(47) (617,075,751) (529,719,611) (63,278,732) (64,683,930)
expenses
General and administrative
4(44)、4(47) (460,505,827) (520,114,941) (420,738,982) (470,830,812)
expenses
Research and development 4(18)、
(617,237,727) (748,135,775) (617,237,727) (748,135,775)
expenses 4(45)、4(47)
Financial expenses 4(46) 87,655,467 93,306,361 61,810,235 60,804,106
Including: Interest expenses (13,395,131) (17,531,522) (13,169,162) (17,378,308)
Interest income 116,562,375 116,473,977 90,256,996 83,081,729
Add: Other income 4(50) 379,965,220 358,643,954 379,781,774 356,955,122
Investment income 4(51)、13(5) 6,108,391 (13,413,788) 3,455,680 (12,981,958)
Including: Share of profit of
(2,527,255) (3,893,639) (2,527,255) (3,893,639)
associates and joint ventures
Gains on changes in fair value 4(52) 4,948,826 4,250,063 4,970,251 4,114,063
Credit impairment losses 4(49) 2,387,703 (2,335,878) (184,716) (2,164,265)
Asset impairment losses 4(48) 4,296,473 - 4,296,473 -
Gains on disposal of assets 4(53) 10,657,596 (293,630) 10,372,755 (236,732)
Operating profit 558,002,131 348,625,588 1,421,716,875 1,267,240,369
Add: Non-operating income 4(54) 1,134,539 7,042,517 205,746 6,143,130
Less: Non-operating expenses 4(55) (5,221,095) (585,439) (2,565,347) (536,187)
Total profit 553,915,575 355,082,666 1,419,357,274 1,272,847,312
Less: Income tax expenses 4(56) 56,969,254 91,534,142 (155,090,033) (125,395,973)
Net profit 610,884,829 446,616,808 1,264,267,241 1,147,451,339
Classified by continuity of
operations
Net profit from continuing
610,884,829 446,616,808 1,264,267,241 1,147,451,339
operations
Net profit from discontinued
- - - -
operations
Classified by ownership of the
equity
Minority interests (284,595,288) (282,770,749) - -
Attributable to shareholders of
895,480,117 729,387,557 1,264,267,241 1,147,451,339
the Company
Other comprehensive income,
- - - -
net of tax
Attributable to shareholders of
the Company
Other comprehensive income
items which will not be
reclassified to profit or loss
Changes arising from
remeasurement of defined 4(36) - - - -
benefit plan
Attributable to minority
- - - -
interests
Total comprehensive income 610,884,829 446,616,808 1,264,267,241 1,147,451,339
Attributable to shareholders of
895,480,117 729,387,557 1,264,267,241 1,147,451,339
the Company
Attributable to minority (284,595,288) (282,770,749) - -
36
interests
Earnings per share
Basic earnings per share (RMB
4(57) 1.04 0.84 —— ——
Yuan)
Diluted earnings per share
4(57) 1.04 0.84 —— ——
(RMB Yuan)
note：* Unaudited financial indexes
37
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR 2024 FIRST HALF-
YEAR
(All amounts in RMB Yuan unless otherwise stated)
2024 First 2023 First 2024 First 2023 First
Item Note Half-year Half-year Half-year Half-year
Consolidated* Consolidated* Company* Company*
Cash flows generated from
operating activities
Cash received from sales of goods or
18,941,092,268 17,406,530,446 18,741,276,443 16,222,462,727
rendering of services
Refunds of taxes 164,581,363 304,302,316 164,581,363 304,302,316
Cash received relating to other
4(58) 118,884,525 405,291,238 95,504,577 387,595,895
operating activities
Sub-total of cash inflows 19,224,558,156 18,116,124,000 19,001,362,383 16,914,360,938
Cash paid for goods and services (14,491,870,430) (12,996,163,395) (13,973,193,906) (12,477,732,638)
Cash paid to and on behalf of
(1,478,169,089) (1,214,500,391) (1,350,502,965) (1,096,589,996)
employees
Payments of taxes and surcharges (1,462,969,310) (1,103,139,617) (1,420,869,779) (1,073,581,827)
Cash paid relating to other operating
4(58) (1,058,219,650) (1,145,172,260) (642,894,199) (744,011,957)
activities
Sub-total of cash outflows (18,491,228,479) (16,458,975,663) (17,387,460,849) (15,391,916,418)
Net cash flows generated from
4(59) 733,329,677 1,657,148,337 1,613,901,534 1,522,444,520
operating activities
Cash flows used in investing
activities
Cash received from disposal of
4(58) 400,000,000 - - -
investments
Cash received from returns on
6,789,112 - 4,136,400 -
investments
Net cash received from disposal of
fixed assets, intangible assets and 9,005,122 795,730 7,544,579 1,676,649
other long-term assets
Cash received from disposal of
- 36,000,000 - 36,000,000
subsidiaries and other business units
Cash received relating to other
4(58) 128,144,704 103,235,093 103,696,833 76,225,119
investing activities
Sub-total of cash inflows 543,938,938 140,030,823 115,377,812 113,901,768
Cash paid to acquire fixed assets,
intangible assets and other long-term (832,578,865) (698,245,427) (835,883,605) (696,001,267)
assets
Cash paid to acquire investments 4(58) (400,000,000) (100,000,000) - (53,167,203)
Cash paid relating to other investing
(116,333) (88,707) (116,333) (88,707)
activities
Sub-total of cash outflows (1,232,695,198) (798,334,134) (835,999,938) (749,257,177)
Net cash flows used in investing
(688,756,260) (658,303,311) (720,622,126) (635,355,409)
activities
Cash flows used in financing
activities
Cash received from absorbing
- 49,000,000 - -
investments
Including: cash received by the
subsidiary from absorbing minority - 49,000,000 - -
shareholders' investment
Cash received from borrowings 995,542,778 2,586,819,167 995,542,778 2,091,194,167
Cash received from other financing
661,625 - - -
activities
Sub-total of cash inflows 996,204,403 2,635,819,167 995,542,778 2,091,194,167
Cash repayments of borrowings (1,802,237,020) (2,406,409,044) (1,802,237,020) (2,406,409,044)
Cash payments for distribution of
dividends, profits or interest (4,455,249) (3,335,711) (4,455,249) (3,335,711)
expenses
38
Cash paid relating to other financing
4(58) (12,923,965) (509,449,108) (8,831,429) (5,865,317)
activities
Sub-total of cash outflows (1,819,616,234) (2,919,193,863) (1,815,523,698) (2,415,610,072)
Net cash flows used in financing
(823,411,831) (283,374,696) (819,980,920) (324,415,905)
activities
Effect of foreign exchange rate
changes on cash and cash - - - -
equivalents
Net (decrease)/increase in cash
4(59) (778,838,414) 715,470,330 73,298,488 562,673,206
and cash equivalents
Add: Cash and cash equivalents at
4(59) 11,746,518,615 8,543,193,654 8,648,791,242 6,863,577,337
beginning of year
Cash and cash equivalents at end
4(59) 10,967,680,201 9,258,663,984 8,722,089,730 7,426,250,543
of period
note：* Unaudited financial indexes
39
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB Yuan unless otherwise stated)
First half of 2024
Attributable to shareholders of the parent company
Other Minority
Item Note Share Capital Special Surplus Retained Total equity
comprehensive interests
capital surplus reserve reserves earnings
income
Balance at 1 January 2024 863,214,000 839,442,490 (20,572,000) 3,821,625 431,607,000 8,232,632,623 (365,273,118) 9,984,872,620
Movements for the six months
ended 30 June 2024* - - - 780,355 - 305,041,741 (284,595,288) 21,226,808
Total comprehensive income
Net profit/(loss) - - - - - 895,480,117 (284,595,288) 610,884,829
Other comprehensive income - - - - - - - -
Total comprehensive income for
the year - - - - - 895,480,117 (284,595,288) 610,884,829
Capital contributed by owners
and capital decreases
Capital invested by shareholders - - - - - - - -
Profit distribution
Distribution to shareholders 4(40) - - - - - (590,438,376) - (590,438,376)
Special reserves
Provided - - - 12,307,442 - - - 12,307,442
Ultilized - - - (11,527,087) - - - (11,527,086)
Balance at 30 June 2024* 863,214,000 839,442,490 (20,572,000) 4,601,980 431,607,000 8,537,674,364 (649,868,406) 10,006,099,428
40
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024 (CONT’D)
(All amounts in RMB Yuan unless otherwise stated)
First half of 2023
Attributable to shareholders of the parent company
Other Minority
Item Note Share Capital Special Surplus Retained Total equity
comprehensive interests
capital surplus reserve reserves earnings
income
Balance at 1 January 2023 863,214,000 839,442,490 (13,484,250.00) - 431,607,000 7,123,038,093 (3,170,549) 9,240,646,784
Movements for the six months
- - - 9,394,050 - 363,384,821 (233,770,749) 139,008,122
ended 30 June 2023*
Total comprehensive income
Net profit/(loss) - - - - - 729,387,557 (282,770,749) 446,616,808
Other comprehensive income - - - - - - - -
Total comprehensive income for
- - - - - 729,387,557 (282,770,749) 446,616,808
the year
Capital contributed by owners
and capital decreases
Capital invested by shareholders - - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders 4(40) - - - - - (366,002,736) - (366,002,736)
Special reserves
Provided - - - 12,877,704 - - - 12,877,704
Ultilized - - - (3,483,654) - - - (3,483,654)
Balance at 30 June 2023* 863,214,000 839,442,490 (13,484,250) 9,394,050 431,607,000 7,486,422,914 (236,941,298) 9,379,654,906
note：* Unaudited financial indexes
41
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024
(All amounts in RMB Yuan unless otherwise stated)
First half of 2024
Other
Share Capital Special Surplus Retained
Item Note comprehensive Total equity
capital surplus reserve reserves earnings
income
Balance at 1 January 2024 863,214,000 839,442,490 (20,979,000) 3,821,625 431,607,000 8,577,966,162 10,695,072,277
Movements for the six
months ended 30 June 2024* - - - 780,355 - 673,828,865 674,609,220
Total comprehensive income
Net profit - - - - - 1,264,267,241 1,264,267,241
Other comprehensive income - - - - - - -
Total comprehensive income
for the year - - - - - 1,264,267,241 1,264,267,241
Profit distribution
Distribution to shareholders 4(40) - - - - - (590,438,376) (590,438,376)
Special reserves
Provided - - - 12,307,442 - - 12,307,442
Ultilized - - - (11,527,087) - - (11,527,086)
Balance at 30 June 2024* 863,214,000 839,442,490 (20,979,000) 4,601,980 431,607,000 9,251,795,027 11,369,681,497
42
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024 (CONT’D)
(All amounts in RMB Yuan unless otherwise stated)
First half of 2023
Other
Share Capital Special Surplus Retained
Item Note comprehensive Total equity
capital surplus reserve reserves earnings
income
Balance at 1 January 2023 863,214,000 839,442,490 (13,844,250) - 431,607,000 7,025,176,443 9,145,595,683
Movements for the six
- - - 9,394,050 - 781,448,603 790,842,653
months ended 30 June 2023*
Total comprehensive income
Net profit - - - - - 1,147,451,339 1,147,451,339
Other comprehensive income - - - - - - -
Total comprehensive income
- - - - - 1,147,451,339 1,147,451,339
for the year
Profit distribution
Distribution to shareholders 4(40) - - - - - (366,002,736) (366,002,736)
Special reserves
Provided - - - 12,877,704 - - 12,877,704
Ultilized - - - (3,483,654) - - (3,483,654)
Balance at 30 June 2023* 863,214,000 839,442,490 (13,844,250) 9,394,050 431,607,000 7,806,625,046 9,936,438,336
note：* Unaudited financial indexes
43
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information
Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi
Motors Manufacturing Factory on 16 June 1992. The registration number of the enterprise
business license is No. 913600006124469438. The registered address of the Company
and the address of its headquarters are both Nanchang City, Jiangxi Province of the
People’s Republic of China (“the PRC”).
On 23 July 1993, with the approval of the China Securities Regulatory Commission
(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi
[1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1
December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of
25,214,000 shares were distributed for the 1993 dividend distribution programme with the
approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group
(Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi
[1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Office Fu
[1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998,
with the approval of CSRC (Zheng Jian Fa Zi [1998] No. 19), the Company issued
additional 170,000,000 B shares.
According to the resolution of the shareholders’ meeting regarding the split share structure
reform on 11 January 2006, the Company implemented the Scheme on Split Share
Structure Reform on 13 February 2006. After the implementation, the Company’s total
paid-in capital remains the same. Related details are disclosed in Note 4(36).
As at 30 June 2024, the Company’s paid-in capital totalled RMB863,214,000, with par
value of RMB1 per share.
The actual principal business scope of the Company and its subsidiaries (hereinafter “the
Group”) includes production and sales of automobile assemblies such as automobiles,
special (modified) vehicles, engines and chassis and other automobile parts, and
provision of related after-sales services; retail and wholesale of imported FORD E series
automobiles of Ford Motor (China) Co., Ltd. as the dealer; import and export of
automobiles and parts; dealership of used cars; provision of enterprise management and
consulting services related to production and sales of automobiles.
Subsidiaries included in the consolidation scope for the current period are detailed in Note
5.
These financial statements were authorised for issue by the Company's Board of Directors
on 28 August 2024.
2 Summary of significant accounting policies and accounting estimates
The Group determines specific accounting policies and estimates based on the features of
its production and operation, which mainly comprise the measurement of expected credit
losses (“ECL”) on receivables (Note 2(8)), valuation of inventories (Note 2(9)),
depreciation of fixed assets and amortisation of intangible assets and right-of-use assets
(Note 2(11), (14), (22)), criteria for capitalisation of development expenditures (Note
2(14)), impairment of long-term assets (Note2(15)), recognition and measurement of
revenue (Note 2(19)), government subsidies (Note2(20)), etc.
Key judgements and critical accounting estimates and key assumptions applied by the
Group on the determination of significant accounting policies are set out in Note 2(25).
44
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for
Business Enterprises - Basic Standard, specific accounting standards and relevant
regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent
periods (hereinafter collectively referred to as “the Accounting Standards for Business
Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of
Information Disclosure by Companies Offering Securities to the Public No.15 - General
Rules on Financial Reporting issued by CSRC.
These financial statements have been prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for for the Six Months Ended 30 June 2024 are
in compliance with the Accounting Standards for Business Enterprises, and truly and
completely present the consolidated and company’s financial position of the Company as
at 30 June 2024 and their financial performance, cash flows and other information for the
period then ended.
(3) Fiscal year
The Company’s fiscal year starts on 1 January and ends on 30 June.
(4) Recording currency
The recording currency of the Company and its subsidiaries is Renminbi (“RMB”). The
financial statements are presented in RMB.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company
and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are
de-consolidated from the date that such control ceases. For a subsidiary that is acquired
in a business combination involving enterprises under common control, it is included in the
consolidated financial statements from the date when it, together with the Company,
comes under common control of the ultimate controlling party. The portion of the net
profits realised before the combination date is presented separately in the consolidated
income statement.
45
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(5) Preparation of consolidated financial statements (Cont’d)
In preparing the consolidated financial statements, where the accounting policies or the
accounting periods of the Company and subsidiaries are inconsistent, the financial
statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business
combinations involving enterprises not under common control, the individual financial
statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in
the consolidated financial statements. The portion of subsidiaries’ shareholders' equity
and the portion of subsidiaries’ net profits and losses and comprehensive income for the
period not attributable to the Company are recognised as minority interests, net profit
attributed to minority interests and total comprehensive income attributed to minority
interests and presented separately in the consolidated financial statements under
shareholders' equity, net profits and total comprehensive income respectively. If the
subsidiaries’ loss for the current period attributed to the minority shareholders exceeds
their share in the opening shareholder’s equity, the excess will be deducted against the
minority interests. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to owners of
the parent. Unrealised profits and losses resulting from the sales of assets by a subsidiary
to the Company are eliminated and allocated between net profit attributable to owners of
the parent and net profit attributed to minority interests in accordance with the allocation
proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the
sales of assets by one subsidiary to another are eliminated and allocated between net
profit attributable to owners of the parent and net profit attributed to minority interests in
accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at
the Group level and at the Company or its subsidiary level, adjustment will be made from
the perspective of the Group.
The Group remeasure the remaining investment held at its fair value in the consolidated
statement of financial position when the control is lost because of the partially disposal of
the equity or other reasons. The difference between the consideration of the disposal as
well as the fair value of the remaining investment and the share of net assets of the former
subsidiary calculated based on the original share since the acquisition date as well as the
good will is recognised in investment income in the period of control lost. In addition, the
other comprehensive income and other changes in owner's equity related to the
investment of the former subsidiary, are reclassified to profit or loss when the control is
lost, except for the changes arising from remeasurement of net liabilities or net assets of
defined benefit, the accumulated changes in fair value from the equity instruments not
held for trading and designated as financial assets at fair value through other
comprehensive income by the investee.
(6) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on
demand, and short-term and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
46
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(7) Foreign currency translation
Foreign currency transactions
Foreign currency transactions are translated into recording currency using the exchange
rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are
translated into recording currency using the spot exchange rates on the balance sheet
date. Exchange differences arising from these translations are recognised in profit or loss
for the current period, except for those attributable to foreign currency borrowings that
have been taken out specifically for acquisition or construction of qualifying assets, which
are capitalised as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical costs are translated at the balance sheet
date using the spot exchange rates at the date of the transactions. The effect of exchange
rate changes on cash is presented separately in the cash flow statement.
(8) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial
liability is recognised when the Group becomes a party to the contractual provisions of the
instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets, financial assets are classified as: (1) financial
assets at amortised cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction
costs that are attributable to the acquisition of the financial assets are included in the
initially recognised amounts, except for the financial assets at fair value through profit or
loss, the related transaction costs of which are recognised directly in profit or loss for the
current period. Accounts receivable or notes receivable arising from sales of products or
rendering of services (excluding or without regard to significant financing components) are
initially recognised at the consideration that is entitled to be charged by the Group as
expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of
financial liabilities from the perspective of the issuer, and are measured in the following
three ways:
47
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
Measured at amortised cost:
The objective of the Group’s business model is to hold the financial assets to collect the
contractual cash flows, and the contractual cash flow characteristics are consistent with a
basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount
outstanding. The interest income of such financial assets is recognised using the effective
interest method. Such financial assets mainly include cash at bank and on hand, notes
receivable, accounts receivable, other receivables and long-term receivables, etc. The
Group presents long-term receivables that are due within one year from the balance sheet
date (including one year) as non-current assets due within one year.
Measured at fair value through other comprehensive income:
The objective of the Group’s business model is to hold the financial assets to both collect
the contractual cash flows and sell such financial assets, and the contractual cash flow
characteristics are consistent with a basic lending arrangement. Such financial assets are
measured at fair value through other comprehensive income, except for the impairment
gains or losses, foreign exchange gains and losses, and interest income calculated using
the effective interest method which are recognised in profit or loss for the current period.
Such financial assets mainly include financing receivables, etc.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or
those measured at fair value through other comprehensive income, are measured at fair
value through profit or loss. At initial recognition, the Group does not designate a portion
of financial assets as at fair value through profit or loss to eliminate or significantly reduce
an accounting mismatch. Financial assets that are due in more than one year as from the
balance sheet date and are expected to be held for over one year are included in other
non-current financial assets, and the others are included in financial assets held for
trading.
48
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment
Loss provision for financial assets at amortised cost and receivables financing at fair value
through other comprehensive income is recognised on the basis of ECL.
Giving consideration to reasonable and supportable information that is related to past
events, current conditions and forecasts of future economic conditions and is available
without undue cost or effort at the balance sheet date, as well as the default risk weight,
the Group recognises the ECL as the probability-weighted amount of the present value of
the difference between the cash flows receivable from the contract and the cash flows
expected to collect.
For notes receivable, accounts receivable and financing receivables arising from sales of
goods and rendering of services in the ordinary course of operating activities, the Group
recognises the lifetime ECL regardless of whether there exists a significant financing
component.
Except for the above-mentioned notes receivable, accounts receivable and financing
receivables, as at each balance sheet date, the ECL of financial instruments at different
stages are measured respectively. 12-month ECL provision is recognised for financial
instruments in Stage 1 that have not had a significant increase in credit risk since initial
recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that
have had a significant increase in credit risk yet without credit impairment since initial
recognition; and lifetime ECL provision is recognised for financial instruments in Stage 3
that have had credit impairment since initial recognition.
For the financial instruments with low credit risk on the balance sheet date, the Group
assumes there is no significant increase in credit risk and identifies it in Stage 1 since
initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1 and Stage 2, the Group calculates the interest
income by applying the effective interest rate to the gross carrying amount (before
deduction of the impairment provision). For the financial instrument in Stage 3, the interest
income is calculated by applying the effective interest rate to the amortised cost (after
deduction of the impairment provision from the gross carrying amount).
49
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
The credit risk characteristics of various financial assets where the ECL is calculated
individually are significantly different from those of other financial assets in this category.
In case the ECL of an individually assessed financial asset cannot be evaluated with
reasonable cost, the Group divides the receivables into certain groupings based on credit
risk characteristics and calculates the ECL for the groupings. Basis for determining
groupings and related provision methods are as follows:
Grouping - Bank acceptance notes State-owned banks and joint stock banks
Customers purchasing using trade acceptance
Grouping - Trade acceptance notes notes
Grouping - Domestic sales of Domestic customers of general automobiles, with
general automobiles the aging calculated from the overdue date
Grouping - Export sales of general Overseas customers of export general
automobiles automobiles, with the aging calculated from the
overdue date
Grouping - Sales of new energy Customers of new energy automobiles, with the
automobiles aging calculated from the overdue date
Grouping - Sales of automobile Customers of automobile parts, with the aging
parts calculated from the overdue date
Grouping - Other receivables Other receivables with the same nature
For accounts receivable classified as a portfolio and notes receivable and financing
receivables resulting from daily operating activities such as sale of goods and provision of
services, the Group calculates the ECL with reference to historical credit losses
experience, current conditions and forecasts of future economic conditions, and based on
the exposure at default and the lifetime ECL rate. For other notes receivable, financing
receivables and other receivables classified into groupings, the Group calculates the ECL
with reference to the historical credit loss experience, current conditions and forecasts of
future economic conditions, and based on the exposure at default and the 12-month or
lifetime ECL rate.
The Group recognises the loss provision made or reversed into profit or loss for the
current period. For debt instruments held at fair value through other comprehensive
income, the Group adjusts other comprehensive income while the impairment loss or gain
is recognised in profit or loss for the current period.
50
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(iii) Derecognition
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the
financial asset expire, (ii) the financial asset has been transferred and the Group transfers
substantially all the risks and rewards of ownership of the financial asset to the transferee,
or (iii) the financial asset has been transferred and the Group has not retained control of
the financial asset, although the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset.
When a financial asset is derecognised, the difference between the carrying amount and
the sum of the consideration received and the cumulative changes in fair value that are
previously recognised directly in other comprehensive income is recognised in profit or
loss for the current period.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial
liabilities at fair value through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost,
including notes payable, accounts payable, other payables, borrowings, etc. Such
financial liabilities are initially recognised at fair value, net of transaction costs incurred,
and subsequently measured using the effective interest method. Financial liabilities that
are due within one year (inclusive) are classified as current liabilities; those with maturities
over one year but are due within one year (inclusive) as from the balance sheet date are
classified as current portion of non-current liabilities. Others are classified as non-current
liabilities.
A financial liability is derecognised or partly derecognised when the underlying present
obligation is discharged or partly discharged. The difference between the carrying amount
of the derecognised part of the financial liability and the consideration paid is recognised
in profit or loss for the current period.
51
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at
the quoted price in the active market. The fair value of a financial instrument that is not
traded in an active market is determined by using a valuation technique. In valuation, the
Group adopts valuation techniques applicable in the current situation and supported by
adequate available data and other information, selects inputs with the same characteristics
as those of assets or liabilities considered in relevant transactions of assets or liabilities by
market participants, and gives priority to the use of relevant observable inputs. When
relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(9) Inventories
(a) Classification
Inventories include raw materials, work-in-process, finished goods, low-value
consumables, materials in transit and materials on consignment, etc., and are measured at
the lower of cost or net realizable value.
(b) Costing of inventories
Cost is determined using the weighted average method. The cost of finished goods and
work in progress comprise raw materials, direct labour and systematically allocated
production overhead based on the normal production capacity.
(c) Basis for determining net realisable value of inventories and method for making provision
for inventories
Provision for inventories is determined at the excess amount of the carrying amounts of
the inventories over their net realisable value. Net realisable value is determined based on
the estimated selling price in the ordinary course of business, less the estimated costs to
completion, estimated contract fulfilment costs and estimated costs necessary to make the
sale and related taxes. The provision for decline in the value of inventories relating to
inventories that are produced and sold in the same region and with the same or similar end
uses or purposes, is determined on an aggregate basis. The Group makes provision for
decline in the value of inventories based on factors including sales.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation method of low value consumables
Low value consumables are amortised into expenses in full when issued for use.
52
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries, and the Group’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control.
Associates are the investees that the Group has a significant influence on their financial
and operating decisions.
Investments in subsidiaries are presented using the cost method in the Company’s
financial statements, and adjusted to the equity method when preparing the consolidated
financial statements. Investments in associates are accounted for using the equity
method.
(a) Determination of investment cost
For long-term equity investments acquired through a business combination involving
enterprises under common control, the investment cost shall be the absorbing party’s
share of the carrying amount of owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at the combination date;
for long-term equity investments acquired through a business combination not involving
enterprises under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination, such as
long-term equity investments acquired by payment in cash, the initial investment cost shall
be the purchase price actually paid; for long-term equity investments acquired by issuing
equity securities, the initial investment cost shall be the fair value of the equity securities
issued.
(b) Subsequent measurement and recognition of profit or loss
Long-term equity investments accounted for using the cost method are measured at the
initial investment cost. Cash dividend or profit distribution declared by an investee is
recognised as investment income into profit or loss for the current period.
For long-term equity investments accounted for using the equity method, where the initial
investment cost exceeds the Group’s share of the fair value of the investee’s identifiable
net assets at the time of acquisition, the investment is initially measured at that cost.
Where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the time of acquisition, the difference is included in
profit or loss for the current period and the cost of the long-term equity investment is
adjusted upwards accordingly.
53
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments (Cont’d)
(b) Subsequent measurement and recognition of profit or loss (Cont’d)
For long-term equity investments accounted for using the equity method, the Group
recognises the investment income or losses according to its share of net profit or loss of
the investee. The Group does not recognise further losses when the carrying amounts of
the long-term equity investment together with any long-term interests that, in substance,
form part of the Group’s net investment in investees are reduced to zero. However, if the
Group has obligations for additional losses and the criteria with respect to recognition of
provisions are satisfied, the Group continues recognising the investment losses and the
provisions at the amount it expects to undertake. The Group’s share of the changes in
investee’s owner's equity other than those arising from the net profit or loss, other
comprehensive income and profit distribution is recognised in capital surplus with a
corresponding adjustment to the carrying amounts of the long-term equity investment. The
carrying amount of the investment is reduced by the Group’s share of the profit distribution
or cash dividends declared by the investees.
Unrealised gains or losses on transactions between the Group and its investees are
eliminated to the extent of the Group’s equity interest in the investees, based on which the
investment income or losses in the Company’s financial statements are recognised. When
preparing consolidated financial statements, for the portion of unrealised gains and losses
of internal transaction attributable to the Group arising from downstream transactions in
which the Group invests in or sells assets to the investees, the Group shall, on the basis
of offsetting the Company's financial statements, offset the portion of unrealised revenue
and costs or asset disposal gains and losses attributable to the Group, and adjust
investment income accordingly; for the unrealised gains and losses of internal transaction
attributable to the Group arising from the upstream transactions in which the investees
invest in or sell assets to the Group, the Group shall, on the basis of offsetting the
Company's financial statements, offset the portion of unrealised gains and losses of
internal transaction included in the carrying amount of the relevant assets, and adjust the
carrying amount of long-term equity investments accordingly. Any losses resulting from
transactions between the Group and its investees, which are attributable to asset
impairment losses are not eliminated.
(c) Basis for determining existence of control and significant influence over investees
Control is the power over investees that can bring variable returns through involvement in
related activities of investees and the ability to influence the returns by using such power
over investees.
Significant influence is the power to participate in making decisions on financial and
operating policies of the investee but is not control or joint control over making those
policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries and associates is
reduced to the recoverable amounts when the recoverable amounts are below their
carrying amount (Note 2(15)).
54
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, vehicles, moulds, and
electronic and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will
flow to the Group and the costs can be reliably measured. Fixed assets purchased or
constructed by the Group are initially measured at cost at the time of acquisition. The fixed
assets contributed by the state-owned shareholders upon the restructuring of the
Company are recorded at the valued amount determined by the state-owned asset
administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed
asset when it is probable that the associated economic benefits will flow to the Group and
the related cost can be reliably measured. The carrying amount of the replaced part is
derecognised. All the other subsequent expenditures are recognised in profit or loss for
the period in which they are incurred.
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the
assets to their estimated net residual values over their estimated useful lives. For the fixed
assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining
useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage
of cost and the annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual depreciation
lives residual values rates
Buildings 35 to 40 years 4% 2.4% to 2.7%
Machinery and
equipment 10 to 15 years 4% 6.4% to 9.6%
Vehicles 2 to 10 years 4% - 20% 9.6% to 42.2%
Moulds 5 years - 20%
Electronic and other
equipment 5 to 7 years 4% 13.7% to 19.2%
The estimated useful life and the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed and adjusted as appropriate at
each year-end.
(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(15)).
(d) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The amount of proceeds from disposals on sale,
transfer, retirement or damage of a fixed asset net of its carrying amount and related
taxes and expenses is recognised in profit or loss for the current period.
55
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction
costs, installation costs, borrowing costs that are eligible for capitalisation and other costs
necessary to bring the construction in progress ready for their intended use. Construction
in progress is transferred to fixed assets when the assets are ready for their intended use,
and depreciation is charged starting from the following month. The carrying amount of
construction in progress is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 2(15)).
(13) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an
asset that needs a substantially long period of time for its intended use commence to be
capitalised and recorded as part of the cost of the asset when expenditures for the asset
and borrowing costs have been incurred, and the activities relating to the acquisition and
construction that are necessary to prepare the asset for its intended use have
commenced. The capitalisation of borrowing costs ceases when the asset under
acquisition or construction becomes ready for its intended use and the borrowing costs
incurred thereafter are recognised in profit or loss for the current period. Capitalisation of
borrowing costs is suspended during periods in which the acquisition or construction of an
asset is interrupted abnormally and the interruption lasts for more than 3 months, until the
acquisition or construction is resumed.
The capitalised amount of specific borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the interest expenses incurred in the
current period less interest income of the unused borrowings deposited at banks or
investment income from temporary investments.
The capitalised amount of general borrowings intended to be used for the acquisition or
construction of qualifying assets is determined by the weighted average of the excess of
accumulated capital expenditure over capital expenditure of the special borrowings
multiplied by the weighted average effective interest rate of the utilised general
borrowings. The effective interest rate is the rate at which the future cash flows of the
borrowings over the expected lifetime or a shorter applicable period are discounted into
the initial recognised amount of the borrowings.
(14) Intangible assets
Intangible assets include land use rights, software use fees, non-patent technologies and
after-sales service management mode, are measured at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of
50 years. If the acquisition costs of the land use rights and the buildings located thereon
cannot be reasonably allocated between the land use rights and the buildings, all of the
acquisition costs are recognised as fixed assets.
56
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(b) Software use fees
Software use fees are amortised on a straight-line basis over the estimated useful life of 5
years.
(c) Non-patent technologies
Non-patent technologies are amortised on the straight-line basis over the estimated useful
life of 5 to 7 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation
method is performed at each year-end, with adjustment made appropriately.
(e) Research and development
The expenditure on research and development of the Group mainly include materials
consumed for research and development activities, employee benefits of research and
development departments, depreciation and amortisation of assets such as equipment
and software used for research and development, research and development design fees
and research and development testing expenses.
Expenditure on the research phase related to planned survey, evaluation and selection for
research on manufacturing technique of automobile products is recognised in profit or loss
in the period in which it is incurred. Prior to mass production, expenditure on the
development phase related to the design and testing phase in regard to the final
application of manufacturing technique of automobile products is capitalised only if all of
the following conditions are satisfied:
the development of manufacturing technique of automobile products has been fully
demonstrated by technical team;
management intends to complete the development of manufacturing technique of
automobile products, and use or sell it;
the research and analysis of preliminary market survey indicate that products
manufactured with manufacturing technique of automobile products are marketable;
adequate technical and financial supports are available for development of
manufacturing techniques of automobile products and subsequent mass production;
and
expenditure on development of manufacturing techniques of automobile products can
be reliably collected.
Other expenditures on the development phase that do not meet the conditions above are
recognised in profit or loss in the period in which they are incurred. Development
expenditures previously recognised as expenses are not recognised as an asset in a
subsequent period. Capitalised expenditure on the development phase is presented as
development expenditures in the balance sheet and transferred to intangible assets at the
date that the asset is ready for its intended use.
57
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(f) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when
the recoverable amounts are below their carrying amounts (Note 2(15)).
(15) Impairment of long-term assets
Fixed assets, construction in progress, right-of-use assets, intangible assets with finite
useful lives and long-term equity investments in subsidiaries and associates are tested for
impairment if there is any indication that the assets may be impaired at the balance sheet
date; intangible assets that are not yet available for their intended use are tested for
impairment at least once a year, irrespective of whether there is any indication of
impairment. If the result of the impairment test indicates that the recoverable amount of an
asset is less than its carrying amount, a provision for impairment and an asset impairment
loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less
disposal costs and the present value of the future cash flows expected to be derived from
the asset. Provision for asset impairment is determined and recognised on the individual
asset basis. If it is not possible to estimate the recoverable amount of an individual asset,
the recoverable amount of a group of assets to which the asset belongs is determined. A
group of assets is the smallest group of assets that is able to generate independent cash
inflows.
Goodwill that is separately presented in the financial statements is tested at least once a
year for impairment, irrespective of whether there is any indication that it may be impaired.
In conducting the test, the carrying amount of goodwill is allocated to the related asset
group or groups of asset groups which are expected to benefit from the synergies of the
business combination. If the result of the test indicates that the recoverable amount of an
asset group or a group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognised. The impairment loss is
first deducted from the carrying amount of goodwill that is allocated to the asset group or
group of asset groups, and then deducted from the carrying amounts of other assets within
the asset group or group of asset groups in proportion to the carrying amounts of assets
other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value
recovered in the subsequent periods.
(16) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in
exchange for service rendered by employees or for termination of employment relationship,
which include short-term employee benefits, post-employment benefits, termination
benefits, etc.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies,
staff welfare, premiums or contributions on medical insurance, work injury insurance,
housing funds, union running costs and employee education costs, short-term paid
absences, etc. The short-term employee benefits actually occurred are recognised as a
liability in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant
assets. Non-monetary benefits are measured at fair value.
58
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee benefits (Cont'd)
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under
which the Group pays fixed contributions into a separate fund and will have no obligation
to pay further contributions; and defined benefit plans are post-employment benefit plans
other than defined contribution plans. During the reporting period, premiums or
contributions on basic pensions and unemployment insurance paid for employees belong
to defined contribution plans; supplementary retirement benefits for employees are defined
benefit plans.
(i) Defined contribution plans
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by
local authorities of Ministry of Human Resources and Social Security. Monthly payments of
premiums on the basic pensions are calculated according to the bases and percentage
prescribed by the relevant local authorities. When employees retire, the relevant local
authorities are obliged to pay the basic pensions to them. The amounts based on the
above calculations are recognised as liabilities in the accounting period in which the
service has been rendered by the employees, with a corresponding charge to the profit or
loss for the current period or the cost of relevant assets.
(ii) Defined benefit plans
The Group also provides employees with supplementary retirement benefits in addition to
the insurance system prescribed by the State. Such supplementary retirement benefits
belong to defined benefit plans. The defined benefit liabilities recognised on the balance
sheet represent the present value of defined benefit obligations less the fair value of the
plan assets. The defined benefit obligations are calculated annually by an independent
actuary using projected unit credit method at the interest rate of treasury bonds with similar
obligation term and currency. Service costs related to supplementary retirement benefits
(including current service costs, historical service costs and settled gains or losses) and
net interest are recognised in profit or loss for the current period or the cost of related
assets, and changes arising from remeasurement of net liabilities or net assets of defined
benefit plans are recognised in other comprehensive income.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with
employees before the end of the employment contracts or as an offer to encourage
employees to accept voluntary redundancy before the end of the employment contracts.
The Group recognises a liability arising from compensation for termination of the
employment relationship with employees, with a corresponding charge to profit or loss for
the current period at the earlier of the following dates: 1) when the Group cannot
unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when
the Group recognises costs or expenses for a restructuring that involves the payment of
termination benefits.
59
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee benefits (Cont'd)
(c) Termination benefits (Cont’d)
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early
retirement arrangements. The early retirement benefits refer to the salaries and social
security contributions to be paid to and for the employees who accept voluntary retirement
before the normal retirement date prescribed by the State, as approved by the
management. The Group pays early retirement benefits to those early retired employees
from the early retirement date until the normal retirement date. The Group accounts for the
early retirement benefits in accordance with the treatment for termination benefits, in
which the salaries and social security contributions to be paid to and for the early retired
employees from the off-duty date to the normal retirement date are recognised as
liabilities with a corresponding charge to the profit or loss for the current period. The
differences arising from the changes in the respective actuarial assumptions of the early
retirement benefits and the adjustments of benefit standards are recognised in profit or
loss in the period in which they occur.
The termination benefits expected to be settled within one year since the balance sheet
date are classified as employee benefits payable.
(17) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are
approved at the shareholders’ meeting.
(18) Provisions
Provisions for product warranties, compensation to suppliers, etc. are recognised when
the Group has a present obligation, it is probable that an outflow of economic benefits will
be required to settle the obligation, and the amount of the obligation can be measured
reliably.
A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Factors on a contingency, such as the risks, uncertainties
and the time value of money, are taken into account as a whole in reaching the best
estimate of a provision. Where the effect of the time value of money is material, the best
estimate is determined by discounting the related future cash outflows. The increase in the
discounted amount of the provision arising from passage of time is recognised as interest
expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
reflect the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are
classified as current liabilities.
60
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Revenue
The Group sells automobiles and automobile parts to distributors or end customers. In
addition, the Group also provides customers with auto maintenance and additional quality
warranty services. The Group recognises revenue at the amount of the consideration that
is entitled to be charged by the Group as expected when the customer obtains control
over relevant goods or services.
Where two or more obligations are included in a contract between the Group and the
customers, at the beginning date of the contract, the Group allocates the transaction price
to individual obligation in the relative proportion to the individual selling prices of products
or services committed in each individual obligation. When the individual selling price is
unobservable, the Group makes reasonable estimates on the individual selling price with
comprehensive consideration to all available information, and by using market adjustment
method, cost plus method, etc.
(a) Sale of automobiles and automobile parts to distributors and end customers
The Group sells automobiles and automobile parts to distributors and end customers.
According to the contract, the delivery is completed after the products are delivered at the
contracted delivery location and acceptance by both parties. The Group recognises the
revenue at the timing of delivery completion.
The credit periods granted by the Group to distributors and end customers are generally
within one year, which is consistent with the industry practice, and there is no significant
financing component. The Group provides product warranties for automobiles and
automobile parts as required by laws and regulations and recognises the corresponding
provisions (Note 2(18)).
The Group provides distributors and end customers with sales discounts based on sales
volume, and related revenue is recognised at contract consideration net of the discount
amount estimated based on historical experience and using the expected value method.
(b) Rendering of services
The Group provides customers with automobile transportation, automobile maintenance
and additional quality warranty services, and the revenue is recognised based on the
progress of service provision within a certain period. According to the nature of the service
provided, the performance progress is determined in accordance with the value of the
labour provided to the customer.
When the Group recognises revenue based on the stage of completion, the amount with
unconditional collection right obtained by the Group is recognised as accounts receivable,
and the rest is recognised as contract assets. Meanwhile, loss provision for accounts
receivable and contract assets are recognised on the basis of ECL (Note 2(8)). If the
contract price received or receivable exceeds the amount for the completed service, the
excess portion will be recognised as contract liabilities. Contract assets and contract
liabilities under the same contract are presented on a net basis.
61
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group
from the government at no consideration, including support funds for enterprise
development, financial subsidies, etc.
Government grants are recognised when the grants can be received, and the Group can
comply with all attached conditions. If a government grant is a monetary asset, it will be
measured at the amount received or receivable. If a government grant is a non-monetary
asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will
be measured at its nominal amount.
Government grants related to assets refer to government grants which are obtained by the
Group for the purposes of purchase, construction or acquisition of the long-term assets.
Government grants related to income refer to the government grants other than those
related to assets.
Government grants related to assets are recorded as deferred income and recognised in
profit or loss on a reasonable and systemic basis over the useful lives of the assets.
Government grants related to income that compensate future costs, expenses or losses
are recorded as deferred income and recognised in profit or loss in reporting the related
expenses; government grants related to income that compensate incurred costs, expenses
or losses are recognised in profit or loss directly in the current period.
The Group applies the presentation method consistently to the similar government grants
in the financial statements.
Government grants that are related to ordinary activities are included in operating profit,
otherwise, they are recorded in non-operating income.
The Group recorded at the actual amount of borrowings when received the loans at policy-
based preferential interest rates received and the related borrowing costs are calculated on
the basis of the principal amount borrowed and the preferential interest rate under the
policy.
62
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on
the differences arising between the tax bases of assets and liabilities and their carrying
amounts (temporary differences). Deferred tax asset is recognised for the deductible
losses that can be carried forward to subsequent years for deduction of the taxable profit
in accordance with the tax laws. No deferred tax liability is recognised for a temporary
difference arising from the initial recognition of goodwill. No deferred tax asset or deferred
tax liability is recognised for a temporary difference arising from the initial recognition of
assets or liabilities due to a transaction other than a business combination where the initial
recognition of assets or liabilities does not result in equal taxable temporary differences
and deductible temporary differences, which affects neither accounting profit nor taxable
profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax
liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible
losses and tax credits to the extent that it is probable that taxable profit will be available in
the future against which the deductible temporary differences, deductible losses and tax
credits can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences arising from
investments in subsidiaries and associates, except where the Group is able to control the
timing of reversal of such temporary differences, and it is probable that the temporary
differences will not reverse in the foreseeable future. When it is probable that the
deductible temporary differences arising from investments in subsidiaries and associates
will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the deductible temporary differences can be utilised, the
corresponding deferred tax assets are recognised.
Deferred tax assets and deferred tax liabilities are offset when:
the deferred tax assets and deferred tax liabilities are related to the same taxpayer
within the Group and the same taxation authority; and
that taxpayer within the Group has a legally enforceable right to offset current tax
assets against current tax liabilities.
(22) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
63
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Leases (Cont’d)
The Group as the lessee
At the commencement date, the Group shall recognise the right-of-use asset and
measure the lease liabilities at the present value of the lease payments that are not paid
at that date. Lease payments include fixed payments, the exercise price of a purchase
option if the lessee is reasonably certain to exercise that option, and payments of
penalties for terminating the lease if the lessee exercises an option to terminate the lease.
Variable lease payments in proportion to sales are excluded from lease payments and
recognised in profit or loss as incurred. Lease liabilities that are due within one year
(inclusive) as from the balance sheet date are included in the current portion of non-
current liabilities.
The Group's right-of-use assets represent leased buildings. Right-of-use assets are
measured initially at cost which comprises the amount of the initial measurement of lease
liabilities, any lease payments made at or before the commencement date and any initially
direct costs, less any lease incentives received. If it is reasonably probable that the Group
will obtain ownership of the underlying asset by the end of the lease term, the asset is
depreciated over its remaining useful life; otherwise, the asset is depreciated over the
shorter of the lease term and its remaining useful life. The carrying amounts of the right-
of- use assets are reduced to the recoverable amounts when the recoverable amounts are
below their carrying amounts (Note 2(15)).
For short-term leases with a term of 12 months or less and leases of an individual asset
(when new) of low value, the Group may, instead of recognising right-of-use assets and
lease liabilities, recognise the lease payments in the cost of the underlying assets or in
profit or loss for the current period on a straight-line basis over the lease term.
The Group shall account for a lease modification as a separate lease if both: (1) the
modification extends the scope of the lease by adding the right to use one or more
underlying assets; (2) the increased consideration is equivalent to the amount of the
individual price of the expanded part of the lease scope adjusted according to the contract
conditions.
For a lease modification that is not accounted for as a separate lease, the Group shall
redetermine the lease term at the effective date of the lease modification and remeasure
the lease liability by discounting the revised lease payments using a revised discount rate,
except for the contract changes that may apply the simplified method as specified by the
Ministry of Finance. For a lease modification which narrows the scope of the lease or
shortens the lease term, the Group decreases the carrying amount of the right-of-use
asset and recognises in profit or loss any gain or loss relating to the partial or full
termination of the lease. For other changes which lead to the remeasurement of lease
liabilities, the Group correspondingly adjusts the carrying amount of the right-of-use asset.
For the qualified rental waivers on existing lease contracts, the Group applies the
simplified method, records the undiscounted waivers in profit or loss and adjusts lease
liability when the agreement is reached to dismiss the original payment obligation.
64
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Leases (Cont'd)
The Group as the lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. An operating lease is a lease other than a
finance lease.
(a) Operating lease
The Group leases out self-owned buildings and vehicles under operating leases, rental
income is recognised on a straight-line basis over the lease term.
(b) Finance lease
At the commencement date of the lease term, the Group recognizes finance lease
receivables and derecognizes the related assets for finance lease. The Group presents
finance lease receivables as long-term receivables and finance lease receivables
collected within one year (including one year) from the balance sheet date as non-current
assets due within one year.
(23) Specific reserve
According to the decision of the State Council on Further Strengthening the work of
production safety (Guo Fa [2004] No. 2), the Circular of the State Council on Further
Strengthening the Work of Enterprise Production Safety (Guo Fa [2010] No. 23 ) and the
Measures for the Administration of the Extraction and Use of Enterprise Production Safety
Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of
Emergency Response in December 2022, the Group extracted safety production costs at
a certain percentage of its operating revenue in the previous year, which is specifically
used for safety costs.
The Group's production safety expenses, which are extracted in accordance with the
aforementioned national regulations, are included in the cost of relevant products or
current profit or loss and are also included in special reserves.
When the safety fund is subsequently used for revenue expenditure, the specific reserve
is reduced accordingly. On utilisation of the safety fund for fixed assets, the specific
reserve is reduced as the fixed assets are recognised, which is the time when the related
assets are ready for their intended use; in such cases, an amount that corresponds to the
reduction in the specific reserve is recognised in accumulated depreciation with respect to
the related fixed assets. As a consequence, such fixed assets are not depreciated in
subsequent periods.
(24) Segment information
The Group identifies operating segments based on the internal organisation structure,
management requirements and internal reporting system, and discloses segment
information of reportable segments which is determined on the basis of operating
segments.
65
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Segment information (Cont’d)
An operating segment is a component of the Group that satisfies all of the following
conditions: (1) the component is able to earn revenues and incur expenses from its
ordinary activities; (2) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to
assess its performance, and (3) for which the information on financial position, operating
results and cash flows is available to the Group. Two or more operating segments that
have similar economic characteristics and satisfy certain conditions can be aggregated
into one single operating segment.
(25) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements
applied based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
(a) Critical judgements in applying the accounting policies
(i) Classification of financial assets
Significant judgements made by the Group in the classification of financial assets include
business models and analysis on contractual cash flow characteristics.
The Group determines the business model for financial assets management on the group
basis, and factors to be considered include the methods for evaluating the financial assets
performance and reporting such performance to key management personnel, the risks
relating to the financial asset’s performance and corresponding management methods,
the ways in which related business management personnel are remunerated, etc.
When assessing whether contractual cash flow characteristics of financial assets are
consistent with basic lending arrangement, key judgements made by the Group include:
the possibility of changes in time schedule or amount of the principal during the lifetime
due to reasons such as repayment in advance; whether interest only includes time value
of money, credit risks, other basic lending risks and considerations for costs and profits.
For example, whether the repayment in advance only reflects the principal outstanding
and corresponding interest and reasonable compensation paid for early termination of the
contract.
(ii) Judgement on significant increase in credit risk and occurrence of credit impairment
When the Group distinguishes the different stages of financial instruments, its judgement
on significant increase in credit risk and occurrence of credit impairment is as follows:
Judgement made by the Group for significant increase in credit risk is mainly based on
whether the overdue days exceed 30 days, or whether one or more of the following
indicators change significantly: business environment of the debtor, internal and external
credit rating, significant changes in actual or expected operating results, significant
decrease in value of collateral or credit rate of guarantor, etc.
66
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(a) Critical judgements in applying the accounting policies (Cont’d)
(ii) Judgement on significant increase in credit risk and occurrence of credit impairment
(Cont’d)
Judgement made by the Group for the occurrence of credit impairment is mainly based on
whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or
more of the following conditions is/are satisfied: the debtor is suffering significant financial
difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes
bankrupt, etc.
(iii) Judgement on capitalisation of development expenditures
Development expenditures are capitalised when the criteria in Note 2(14)(e) are fulfilled.
The assessments on whether the criteria for capitalisation of development expenditures
have been met involve judgements of the Group, including the technical feasibility of the
project, the likelihood of the project generating sufficient future economic benefits and the
timing to start capitalisation particularly. The Group makes the judgements on the
capitalisation of development expenditures and records the process in meeting minutes
based on feasibility analysis, regular review on the development project phase, etc.
(iv) Timing of revenue recognition
The Group sells automobiles and automobile parts to distributors or end customers.
According to the contract, the delivery is completed after the products are delivered at the
contracted delivery location and acceptance by both parties. Thereafter, the distributors or
end customers own the products, have the right to set prices independently, and bear the
risks from price fluctuation or damage of the products. The distributors or end customers
have obtained the control of the products after accepting the products. The Group
recognises the revenue at the timing of the delivery completion.
(v) Sales with product warranties
The Group provides statutory warranty for automobiles and automobile parts, and the
periods and terms of such warranty comply with the requirements of laws and regulations
related to the products. The Group does not provide any significant additional service or
additional warranty for this purpose; thus this kind of warranty cannot be identified as a
separate performance obligation. In addition, the Group also offers additional warranty other
than the requirements of laws and regulations, which is identified as a separate
performance obligation. The Group recognises the revenue of the additional warranty over
time during the period when services are rendered.
67
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the
next fiscal year are outlined below:
(i) Measurement of ECL
The Group calculates ECL through default risk exposure and ECL rate and determines the
ECL rate based on default probability and default loss rate or aging matrix. In determining
the ECL rate, the Group uses data such as internal historical credit loss experience, etc.,
and adjusts historical data based on current conditions and forward-looking information.
When considering forward-looking information, the Group takes different macroeconomic
scenarios into consideration. For the six months ended 30 June 2024, the weights of “base”,
“bad” and “good” are 68%, 16% and 16% (2023: 68%, 16% and 16%) under three economic
scenarios respectively for the consideration of forward-looking information. The Group
regularly monitors, and reviews important macroeconomic assumptions and parameters
related to the calculation of ECL rate, including the risks of economic downturn, external
market environment, changes of technological environment and customer, gross domestic
product, consumer price index, broad money supply and nominal interest rate. For the six
months ended 30 June 2024, the Group has considered the uncertainty under different
macroeconomic scenarios and updated relevant assumptions and parameters accordingly.
The key macroeconomic parameters used in each scenario are listed as follows:
Scenarios
Base Bad Good
Broad money supply 8.58% 8.06% 9.11%
Consumer price index 5.08% 2.83% 7.34%
Nominal interest rate 0.11% 0.23% -0.01%
In the first half of 2024, the key macroeconomic parameters used in each scenario are listed
below:
Scenarios
Base Bad Good
Gross domestic
product 4.56% 2.02% 7.11%
Consumer price index 3.45% -33.12% 40.02%
68
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(ii) Accounting estimate on provision for impairment of long-term assets
When the Group performs impairment tests for long-term assets if there is any indication
that the long-term assets may be impaired, if the result of the impairment test indicates that
the recoverable amount of an asset is less than its carrying amount, a provision for
impairment and an asset impairment loss are recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an
asset is the higher of the fair value less the cost of disposal and the present value of the
future cash flows expected to be derived from the asset. These calculations require the use
of estimates (Note 4(13), Note 4(14), Note 4(17) and Note 13(3)).
When the Group uses the present value of estimated future cash flows to determine the
recoverable amount, as there are uncertainties about the development of economic
environment in which the relevant region is situated, the revenue growth rate, the gross
profit margin rate and the pre-tax discount rate used in calculating the present value of
estimated future cash flows are also subject to uncertainties. If management revises the
growth rate, the gross margin rate and the pre-tax discount rate that is used in the
calculation of the future cash flows of related asset groups, and the revised rate is lower
than the current rate, the Group would need to recognise further impairment against related
assets. If the actual growth rate, the gross profit margin rate are higher than management’s
estimates or the actual pre-tax discount rate is lower than management’s estimates, the
impairment loss of related assets previously recognised is not allowed to be reversed by the
Group.
When the Group uses the fair value less disposal costs to determine the recoverable
amount, the recoverable amount is determined by the price of a sale agreement in an arm’s
length transaction, less the costs that are directly attributable to the disposal of the asset.
Where there is no sales agreement but there is an active market of assets, the amount is
determined by the market price less the costs that are directly attributable to the disposal of
the asset. The market price of assets is determined by the considerations provided by the
buyer. Where there is no sales agreement or active market of assets, the amount of an
asset’s fair value less disposal costs was determined based on the best information
available.
Disposal costs include legal cost, taxes and handling fee related to asset disposal, and
direct costs incurred to bring the assets to a saleable state.
69
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(iii) Income tax and deferred income tax (Cont’d)
The Group is subject to enterprise income tax in multiple regions. There are some
transactions and events for which the ultimate tax treatment is uncertain during the
ordinary course of business. Significant judgement is required from the Group in
determining the provision for income taxes in each of these regions. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the income tax and deferred tax provisions in the period in which
such determination is made.
As stated in Note 3(2), the Company is a high-tech enterprise. The “High-Tech Enterprise
Certificate” is effective for three years. Upon expiration, application for high-tech
enterprise assessment should be submitted again to the relevant government authorities.
Based on the past experience of reassessment for high-tech enterprise upon expiration
and its actual conditions, the Company considers that it is able to obtain the qualification
for high- tech enterprises in the next three years, and therefore a preferential tax rate of
15% is used to calculate the corresponding deferred income tax. If the Company cannot
obtain the qualification for high-tech enterprise upon expiration, then the Company is
subject to a statutory tax rate of 25% for the calculation of income tax, which further
influences the recognised deferred tax assets, deferred tax liabilities and income tax
expenses.
Deferred tax assets are recognised for the deductible tax losses that can be carried
forward to subsequent years to the extent that it is probable that taxable profit will be
available in the future against which the deductible tax losses can be utilised. Taxable
profit that will be available in the future includes the taxable profit that will be realised
through ordinary course of business and the taxable profit that will be increased upon the
future reversal of taxable temporary differences incurred in prior periods. Judgements and
estimates are required to determine the time and amounts of taxable profit in the future.
Any difference between the reality and the estimate may result in adjustment to the
carrying amount of deferred tax assets.
(iv) Provisions
The Group undertakes after-sales repair or replacement obligations for automobiles sold
based on the after-sales service agreement. Management estimates related provisions
based on historical after-sales service data, including the repair and replacement provided
as well as current trends.
Factors that may impact the estimation of warranty costs include improvement of the
Group’s productivity and production quality, as well as changes in related parts and labour
costs. Any increase or decrease in provisions will have impact on profit or loss of the
Group in the future.
70
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(v) Provision for decline in the value of inventories
The Group's inventories are stated at the lower of cost and net realisable value. Net
realisable value of inventories is the amount of the estimated selling price in the ordinary
course of business, less the estimated costs to completion, estimated contract
performance costs, estimated costs necessary to make the sales and related taxes.
If the management revises the estimated selling price of the inventory, the estimated
costs to be incurred by the time of completion, and the estimated selling and distribution
expenses and related taxes, the revised estimated selling price is lower than the currently
adopted estimated selling price, or the revised until The estimated costs, estimated
contract performance costs, sales expenses, and related taxes and fees at the completion
of the project are higher than the currently adopted estimates, the Group needs to make
provision for decline in the value of inventory.
If the actual selling prices, costs to completion, estimated contract performance costs,
selling and distribution expenses and related taxes are higher or lower than
management’s estimates, the Group shall recognise the relevant differences in the
consolidated income statement during the corresponding accounting period.
(26) Significant changes in accounting policies
The Ministry of Finance organized the compilation of the "Compilation of Application
Guidelines for Enterprise Accounting Standards 2024" (hereinafter referred to as the
"Compilation of Guidelines") in 2024. The Group and the Company have adopted the
guidelines to compile and prepare the financial statements for the first half of 2024. The
impact on the financial statements of the Group and the Company is listed as follows:
The content and reasons for Affected report project Impact amount
changes in accounting policies names Six months ended 30 June, 2023
the Group the Company
The Group and the Company Selling and distribution
reclassified the expected expenses (126,130,480) (7,777,286)
liabilities arising from quality Cost of sales 126,130,480 7,777,286
assurance into cost of sales
from selling and distribution
expenses.
71
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxation basis Tax rate
Enterprise income tax Taxable income
(a) 15% and 25%
Value-added tax Taxable value-added amount (Tax
(“VAT”) (b) payable is calculated using the taxable
sales amount multiplied by the
applicable tax rate less deductible
input VAT of the current period) 13%, 9% and 6%
Consumption tax (c) Taxable sales amount 3%, 5% and 9%
City maintenance and The payment amount of VAT and
construction tax (d) consumption tax 5% and 7%
(a) Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for
Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the
Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by
the State Taxation Administration and relevant regulations, during the period from 1 January
2018 to 30 June 2024, the cost of newly purchased equipment with the original cost less than
RMB5 million can be fully deducted against taxable profit in the next month after the asset is
put into use, instead of being depreciated annually for tax filing.
(b) Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform
(Announcement [2019] No. 39) and relevant regulations jointly issued by the Ministry of
Finance, the State Taxation Administration and the General Administration of Customs, the
Group’s taxable products sales revenue is subject to the VAT at the rate of 13%. The Group's
real estate leasing business is subject to the VAT at the rate of 9% and revenue from
provision of technical service to external parties is subject to VAT at the rate of 6%.
(c) Pursuant to the Interim Regulations of the People's Republic of China on Consumption Tax
promulgated by the State Council (Order No. 539 of the State Council of the People's
Republic of China) and the Notice of Ministry of Finance and State Taxation Administration on
Adjusting Consumption Tax Policies for Passenger Cars (Cai Shui [2008] No. 105), the
consumption tax rates of the Group's taxable products are 3%, 5% and 9%.
(d) Pursuant to the Circular of the State Council on Unifying the Collection of City Maintenance
and Construction Tax and Educational Surcharge on Domestic and Foreign-Owned
Enterprises and Individuals (Guo Fa [2010] No. 35) issued by the State Council, the Group is
subject to city maintenance and construction tax at the rates of 5% and 7%.
72
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(2) Tax preference
(a) Pursuant to the Circular on the Announcement of the First Batch of High-Tech Enterprises of
Jiangxi Province for the year 2021 (Gan Gao Qi Ren Ban [2021] No. 8), the Company is
certified as a high-tech enterprise, and the valid term is three years. During the period from 1
January 2021 to 31 December 2023, the Company was subject to enterprise income tax at
the rate of 15%. At present, the company is re-identified as a high-tech enterprise.
In the first half year of 2024, except for the Company, the Company’s wholly-owned
companies, including JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co.,
Ltd. (“JMCS”), Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”),
Guangzhou Fujiang New Energy Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford
Automobile Technology (Shanghai) Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the
enterprise income tax at the rate of 25% (2023: 25%).
(b) Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for
the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the
Ministry of Finance and the State Taxation Administration, the Company, as an advanced
manufacturing enterprise, is allowed to offset against the VAT payable by the 1.05 times
amount of input tax deductible in the current period from 1 January 2023 to 31 December
2027.
73
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2024 31 December 2023
Cash at bank 9,683,853,944 10,653,646,811
Cash at finance company (a) (Note
7(6)) 1,283,826,257 1,092,871,804
Other cash and cash equivalents (b) 18,760,506 20,854,424
Interest receivable 57,464,408 63,187,636
11,043,905,115 11,830,560,675
(a) As at 30 June 2024, the group's bank deposit with Jiangling Automobile Group Finance
Co, Ltd. was RMB1,283,826,257. The Group's bank deposits placed with Jiangling Motor
Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate
of 1.35% - 2.25% (31 December 2023: 0.455% - 2.25%) on RMB deposits for the same
period.
JMCF, a wholly-owned subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-
banking financial institution. JMCG holds 50% equity capital of Nanchang Jiangling
Investment Co., Ltd. (“JIC”), a main shareholder of the Company.
(b) Other cash and cash equivalents of RMB18,760,506 (December 31 2023: RMB
20,854,424) were the frozen funds of the Group's litigation.
(2) Financial assets held for trading
30 June 2024 31 December 2023
Structural deposits 200,583,452 200,604,877
(3) Derivative financial assets and derivative financial liabilities
30 June 2024 31 December 2023
Derivative financial assets -
Forward exchange contracts 4,510,945 -
Derivative financial liabilities -
Forward exchange contracts - 459,306
74
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Notes receivable
30 June 2024 31 December 2023
Trade acceptance notes - 14,638,901
Less: Provision for bad
debts - (17,564)
- 14,621,337
(a) As at 30 June 2024, there were no notes receivable pledged.
(b) Provision for bad debts
For notes receivable arising from sales of goods and rendering of services in the ordinary
course of operating activities, the Group measures the loss provision based on the
lifetime ECL regardless of whether there is a significant financing component.
The provision for bad debts of notes receivable is analysed by category as follows:
30 June 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on
the grouping basis (i) - - - -
31 December 2023
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
grouping basis (i) 14,638,901 100% (17,564) 0.12%
75
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Notes receivable (Cont’d)
(b) Provision for bad debts (Cont’d)
(i) The amount of bad debt provision reversed during the period was RMB17,564.
(ii) There was no provision for bad debts actually written off during the period.
(5) Accounts receivable
30 June 2024 31 December 2023
Accounts receivable 4,837,351,925 4,529,566,682
Less: Provision for bad debts (125,540,733) (127,740,660)
4,711,811,192 4,401,826,022
(a) The aging of accounts receivable was analysed as follows:
30 June 2024 31 December 2023
Within 1 year 4,696,609,247 4,354,838,862
1 to 2 years 7,293,905 28,667,064
Over 2 years 133,448,773 146,060,756
4,837,351,925 4,529,566,682
As at 30 June 2024, accounts receivable with individually significant amounts and aged
over three years were analyzed as follows:
Balance Reasons and risk of collection
As the debtor had difficulties in operation and
was involved in several lawsuits, the Group
considered that the receivable was difficult to be
recovered and therefore a provision for bad
Company 1 72,230,000 debts had been made in full.
The Group considered that the new energy
subsidy amount was difficult to be recovered
from relevant subsidy distribution departments
over a long period of time and therefore a
Company 2 37,924,214 provision for bad debts had been made in full.
Due to the cash flow arrangement of the debtor,
the accounts receivable had a long aging, but the
debtor has a good historical collection situation
and still has normal business dealings with the
Group, and the Group considered that the
receivables were likely to be recovered, so a
provision for bad debts was made in the
Company 3 17,812,503 grouping - sales of general automobiles.
76
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(b) As at 30 June 2024, the top five accounts receivable ranked by the balances of the
debtors are analysed as follows:
Amount of provision % of total
Balance for bad debts balance
The total accounts receivable of
the top five balances 3,592,272,912 (79,350,975) 74%
(c) Provision for bad debts
For accounts receivable, the Group measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.
The provision for bad debts of accounts receivable was analysed by category as follows:
30 June 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 110,154,214 2% (110,154,214) 100.00%
Provision for bad debts on the
grouping basis (ii) 4,727,197,711 98% (15,386,519) 0.33%
4,837,351,925 100% (125,540,733) 2.60%
31 December 2023
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 110,154,214 2% (110,154,214) 100.00%
Provision for bad debts on the
grouping basis (ii) 4,419,412,468 98% (17,586,446) 0.40%
4,529,566,682 100% (127,740,660) 2.82%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
110,154,214 (110,154,214)
77
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which the provision for bad debts is provided on the individual
basis are analysed follows (Cont’d):
31 December 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
110,154,214 (110,154,214)
As at 30 June 2024 and 31 December 2023, The Group assessed the expected credit
losses on the related accounts receivable, the Group considered the receivables cannot
be collected, therefore, full provision was made for those receivables. The related
amount was RMB110,154,214.
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Domestic sales of general automobiles:
30 June 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1,093,439,577 0.11% (1,197,131)
Overdue for 1 to 30
days 58,707,229 0.11% (63,080)
Overdue for 31 to 60
days 10,136,087 1.92% (194,375)
Overdue for 61 to 90
days 12,137,184 3.14% (381,510)
Overdue over 90 days 53,559,804 4.60% (2,464,869)
1,227,979,881 (4,300,965)
Grouping - Export sales of general automobiles:
30 June 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 3,112,760,619 0.20% (6,225,521)
78
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Sales of general automobiles (Cont’d):
31 December 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1,330,216,018 0.12% (1,651,582)
Overdue for 1 to 30
days 41,413,325 0.18% (74,476)
Overdue for 31 to 60
days 24,216,867 2.28% (553,239)
Overdue for 61 to 90
days 32,435,370 3.34% (1,083,923)
Overdue over 90 days 76,187,716 5.18% (3,948,751)
1,504,469,296 (7,311,971)
Grouping - Export sales of general automobiles:
31 December 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 2,647,787,903 0.20% (5,295,576)
Grouping - Sales of new energy automobiles:
30 June 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 4,123,260 80.00% (3,298,608)
31 December 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 5,123,260 80.00% (4,098,608)
79
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping – Automobile parts:
30 June 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 332,794,702 0.30% (998,384)
Overdue for 1 to 30 days 32,463,269 0.30% (97,390)
Overdue for 31 to 60 days 5,578,160 0.50% (27,891)
Overdue for 61 to 90 days 3,116,610 0.60% (18,700)
Overdue over 90 days 8,381,210 5.00% (419,060)
382,333,951 (1,561,425)
31 December 2023
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 242,349,099 0.30% (727,047)
Overdue for 1 to 30 days 16,195,486 0.30% (48,586)
Overdue for 31 to 60 days 728,660 0.50% (3,643)
Overdue for 61 to 90 days 839,164 0.60% (5,035)
Overdue over 90 days 1,919,600 5.00% (95,980)
262,032,009 (880,291)
(iii) The amount of provision for bad debts reversed for the period was RMB2,199,927.
(d) There was no provision for bad debts actually written off during the period.
(e) As at 30 June 2024 and 31 December 2023, there were no accounts receivable pledged.
80
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Financing receivables
30 June 2024 31 December 2023
Bank acceptance notes 274,777,232 123,170,062
The Group endorses the bank acceptance notes as required by daily fund management,
which also met the criteria for derecognition, and therefore classified those the bank
acceptance notes as financial assets at fair value through other comprehensive income.
For the six months ended 30 June 2024, the Group endorsed and discounted bank
acceptance notes, and almost all risks and rewards of ownership have been transferred to
other parties, accordingly, the carrying amounts of bank acceptance notes that were
derecognised by the Group were RMB419,555,238 and RMB511,589,299.
As at 30 June 2024 and 31 December 2023, as the credit risk characteristics of these
bank acceptance notes were similar, no provision for impairment was made individually.
In addition, the Group considered that its bank acceptance notes were not exposed to
significant credit risk and the probability of default of these banks was very low.
As at 30 June 2024 and 31 December 2023, the Group had no pledged bank acceptance
notes receivable presented in financing receivables.
As at 30 June 2024, the Group's bank acceptance notes had been endorsed or
discounted but not yet matured were RMB663,468,224, which had been derecognised.
81
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Advances to suppliers
(a) The aging of advances to suppliers is analysed as follows:
30 June 2024 31 December 2023
% of total % of total
Amount balance Amount balance
Within 1 year 115,585,832 100% 204,358,759 100%
(b) As at 30 June 2024, the top five advances to suppliers by the balances of the debtors are
analysed as follows:
Amount % of total balance
Total prepayments of the top five
balances 115,475,759 99.9%
(8) Other receivables
30 June 2024 31 December 2023
Import working capital 30,000,000 7,000,000
Advance payment of gas
expenses 13,850,672 12,769,141
Receivables from disposal of land
and above-ground buildings 13,111,456 -
Receivables from refund of social
insurance 7,242,084 23,958,000
Guarantees 5,308,676 6,974,616
Others 21,351,271 25,021,075
90,864,159 75,722,832
Less: Provision for bad debts (247,681) (402,984)
90,616,478 75,319,848
The Group did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.
(a) The aging of other receivables is analysed as follows:
30 June 2024 31 December 2023
Within 1 year 86,389,541 67,035,160
Over 1 year 4,474,618 8,687,672
90,864,159 75,722,832
82
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements:
The provision for bad debts of other receivables is analysed by category as follows:
30 June 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 20,353,540 22% - -
Provision for bad debts on the
grouping basis (i) 70,510,619 78% (247,681) 0.35%
90,864,159 100% (247,681) 0.27%
31 December 2023
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 23,958,000 32% - -
Provision for bad debts on the
grouping basis (i) 51,764,832 68% (402,984) 0.78%
75,722,832 100% (402,984) 0.53%
Stage 1
12-month ECL
12-month ECL (grouping) (individual) Total
Provision Provision Provision
Book for bad Book for bad for bad
balance debts balance debts debts
31 December 2023 51,764,832 (402,984) 23,958,000 - (402,984)
Decrease in the
current period - — (3,604,460) — —
Increase in the
current period 18,745,787 — - — —
Provision for bad
debts reversed
during the period — 155,303 — - 155,303
30 June 2024 70,510,619 (247,681) 20,353,540 - (247,681)
As at 30 June 2024 and 31 December 2023, the Group had no other receivables at Stage
2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:
(i) As at 30 June 2024, the Group’s other receivables with provision for bad debts were
analysed below:
83
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
12-month Provision for
Book balance ECL rates bad debts Reason
Provision on the individual basis: i)
Receivables from disposal of land and
above-ground buildings 13,111,456 - - ECL
Receivables from refund of social
insurance 7,242,084 - - ECL
Provision on the grouping basis:
Import working capital 30,000,000 0.35% (105,380) ECL
Advance payment of gas expenses 13,850,672 0.35% (48,653) ECL
Guarantees 5,308,676 0.35% (18,648) ECL
Others 21,351,271 0.35% (75,000) ECL
90,864,159 (247,681)
(i) As at 31 December 2023, the Group’s other receivables with provision for bad debts on
the grouping basis are analysed as follows:
12-month Provision for
Book balance ECL rates bad debts Reason
Provision on the individual basis: i)
Receivables from refund of social
insurance 23,958,000 - - ECL
Provision on the grouping basis:
Advance payment of gas expenses 12,769,141 0.78% (99,406) ECL
Import working capital 7,000,000 0.78% (54,494) ECL
Guarantees 6,974,616 0.78% (54,297) ECL
Receivables from platform utilization 4,757,270 0.78% (37,035) ECL
Receivables from disposal of assets 4,604,745 0.78% (35,847) ECL
Others 15,659,060 0.78% (121,905) ECL
75,722,832 (402,984)
i)The Group assessed the receivables from refund of social insurance and receivables
from disposal of land and above-ground buildings individually and based on the judgment
of credit risk, the receivables were not subject to significant credit risk and were not
overdue and impaired.
(c) The provision for bad debts reversed in the current period amounted to RMB155,303.
(d) There was no provision for bad debts actually written off during the period.
(e) As at 30 June 2024, the top five other receivables by the balances of the debtors are
listed as follows:
% of Provision
total for bad
Nature Balance Aging balance debts
Import working capital, within 1
Company 1 etc. 31,727,323 year 35% (111,046)
Advance payment of within 1
Company 2 gas expenses 13,850,672 year 15% (48,653)
Receivables from
disposal of land and
above-ground within 1
Company 3 buildings 13,111,456 year 14% -
Receivables from
refund of social within 1
Company 4 insurance 7,242,084 year 8% -
Receivables from within 1
Company 5 disposal of assets 3,206,042 year 4% (11,262)
69,137,577 76% (170,961)
84
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Inventories
(a) Inventories were summarised by category as follows:
30 June 2024 31 December 2023
Provision for Provision for
decline in the decline in the
value of Carrying value of Carrying
Book balance inventories amount Book balance inventories amount
Raw materials 1,066,984,459 (79,499,203) 987,485,256 802,679,074 (130,036,719) 672,642,355
Finished goods 421,327,623 - 421,327,623 497,244,891 - 497,244,891
Work in progress 294,185,452 (816,091) 293,369,361 194,945,039 (816,091) 194,128,948
Low value consumables 81,044,386 (2,830,181) 78,214,205 83,217,698 (2,830,181) 80,387,517
Materials in transit 276,214,935 - 276,214,935 71,613,700 - 71,613,700
Materials consigned for processing 61,401,110 - 61,401,110 44,242,100 - 44,242,100
2,201,157,965 (83,145,475) 2,118,012,490 1,693,942,502 (133,682,991) 1,560,259,511
(b) Provision for decline in the value of inventories was analysed as follows:
Increase in the
current period Decrease in the current period
31 December 2023 Provision Reversal Write-off 30 June 2024
-
Raw materials (130,036,719) 4,296,473 46,241,043 (79,499,203)
Low value consumables (2,830,181) - - - (2,830,181)
Work in progress (816,091) - - - (816,091)
(133,682,991) - 4,296,473 46,241,043 (83,145,475)
85
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Inventories (Cont’d)
(c) Provision for decline in the value of inventories was analysed as follows:
Reason for current period
reversal or write-off of provision
Specific basis for determining net for decline in the value of
realisable value inventories
Raw materials/Work Based on the estimated selling Increase in the net realisable
in progress/Low price, less the estimated costs to value of the provision for
value completion, estimated contract decline in the value of
consumables performance costs and selling and inventories had been made in
distribution expenses and related prior years or sales realised
taxes
(10) Other current assets
30 June 2024 31 December 2023
Taxes prepaid, input VAT to be
deducted and to be verified 1,307,258,115 951,659,556
(11) Current portion of non-current assets
30 June 2024 31 December 2023
Current portion of long-term
receivables (Note 4(12)) 16,828,704 15,749,806
(12) Long-term receivables
30 June 2024 31 December 2023
Long-term receivables 36,949,258 41,919,493
Less: Unearned financing income (2,927,122) (3,268,233)
Provision for bad debts (110,849) (125,758)
Current portion of long-term
receivables (Note 4(11)) (16,828,704) (15,749,806)
17,082,583 22,775,696
As at 30 June 2024, the Group's long-term receivables were generated by instalment
collections from disposal of fixed assets, which will be recovered from 2024 to 2026.
86
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments
30 June 2024 31 December 2023
Associates
- Shanxi Yunnei Power Co., Ltd. (“The Power Company”) 198,361,679 202,327,605
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 28,773,014 31,470,743
Less: Provision for impairment of long-term equity investments - -
227,134,693 233,798,348
Associates
Movements for the current period Impairment provision
Share of net
31 Increase/ profit/(loss) Cash Provision 31
December Decrease in under equity dividends for 30 June Shareholding Voting 30 June December
2023 investment method declared impairment 2024 (%) rights (%) 2024 2023
The Power
Company 202,327,605 - (3,965,926) - - 198,361,679 40% 40%
Hanon
Systems 31,470,743 - 1,438,671 (4,136,400) - 28,773,014 19.15% 33.33% - -
Total 233,798,348 - (2,527,255) (4,136,400) - 227,134,693 - -
Related information of equity in associates is set forth in Note 5(2).
87
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets
30 June 2024 31 December 2023
Fixed assets (a) 5,469,172,608 5,389,534,479
Fixed assets pending for disposal (b) 110,673 110,673
5,469,283,281 5,389,645,152
(a) Fixed assets
Machinery and Electronic and other
. Buildings equipment Vehicles Moulds equipment Total
Cost
31 December 2023 2,226,158,780 3,226,527,648 513,121,037 4,121,429,291 4,340,265,136 14,427,501,892
Increase in the
current period
Transfers from
construction in
progress 102,085,625 70,786,373 150,697,583 163,789,193 87,505,411 574,864,185
Decrease in the
current period
Disposal or
retirement (2,890,778) (59,796,892) (10,938,202) (136,278,214) (33,903,313) (243,807,399)
Others - - - - (4,317,418) (4,317,418)
30 June 2024 2,325,353,627 3,237,517,129 652,880,418 4,148,940,270 4,389,549,816 14,754,241,260
Accumulated
depreciation
31 December 2023 (475,073,634) (1,960,756,439) (321,764,940) (2,761,763,523) (2,919,832,565) (8,439,191,101)
Increase in the
current period
Provision (32,065,249) (96,575,597) (29,597,100) (148,239,386) (178,743,982) (485,221,314)
Decrease in the
current period
Disposal or
retirement 1,952,940 55,891,086 3,961,513 136,111,103 31,806,321 229,722,963
Others - - - - 3,822,585 3,822,585
30 June 2024 (505,185,943) (2,001,440,950) (347,400,527) (2,773,891,806) (3,062,947,641) (8,690,866,867)
Provision for
impairment
31 December 2023 (172,020,613) (28,233,307) (6,552,525) (339,692,238) (52,277,629) (598,776,312)
Increase in the
current period
Provision - - - - - -
Decrease in the
current period
Disposal or - 3,338,313 23,500 101,412 1,111,302 4,574,527
retirement
30 June 2024 (172,020,613) (24,894,994) (6,529,025) (339,590,826) (51,166,327) (594,201,785)
Carrying amount
30 June 2024 1,648,147,071 1,211,181,185 298,950,866 1,035,457,638 1,275,435,848 5,469,172,608
31 December 2023 1,579,064,533 1,237,537,902 184,803,572 1,019,973,530 1,368,154,942 5,389,534,479
For the six months ended 30 June 2024, depreciation charged to fixed assets amounted to
RMB485,221,314 (the six months ended 30 June 2023: RMB442,918,223), of which the
depreciation expenses charged in the cost of sales, selling and distribution expenses, general and
administrative expenses and research and development expenses were RMB413,536,440,
RMB3,897,033, RMB29,315,200 and RMB38,472,641 (the six months ended 30 June 2023:
RMB364,837,796, RMB1,135,033, RMB46,055,032 and RMB30,890,362), respectively.
The costs of fixed assets transferred from construction in progress amounted to RMB574,864,185
(the six months ended 30 June 2023: RMB506,249,913).
88
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets(Cont’d)
(a) Fixed assets (Cont’d)
(i) Temporarily idle fixed assets
As at 30 June 2024, the fixed assets with a carrying amount of approximately
RMB177,687,914 (a cost of RMB1,352,405,897) (31 December 2023: a carrying amount of
approximately RMB179,453,179 and a cost of RMB1,324,043,538) were idle due to the
termination of the equity transfer transaction of JMCH and the change of product process of
the Group. The analysis was as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 409,162,422 (108,122,281) (172,020,613) 129,019,528
Machinery and 167,746,540 (124,246,537) (22,701,574) 20,798,429
equipment
Vehicles 56,434,194 (47,190,430) (6,502,390) 2,741,374
Moulds 418,889,062 (106,287,067) (312,553,501) 48,494
Electronic and other 300,173,679 (228,130,482) (46,963,108) 25,080,089
equipment
1,352,405,897 (613,976,797) (560,741,186) 177,687,914
(ii) Fixed assets with pending certificates of ownership:
Reason for not obtaining
Carrying amount certificates of ownership
Buildings 3,092,373 Pending procedures
(b) Fixed assets pending for disposal
30 June 2024 31 December 2023
Electronic and other equipment 85,891 85,891
Machinery and equipment 24,782 24,782
110,673 110,673
89
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Construction in progress
30 June 2024 31 December 2023
Provision Provision
for Carrying Book for Carrying
Book balance impairment amount balance impairment amount
Projects for
commercial
vehicles 320,238,064 (1,284,000) 318,954,064 176,425,357 (1,284,000) 175,141,357
Projects for
passenger
vehicles 109,210,448 (4,460,314) 104,750,134 192,375,226 (4,460,314) 187,914,912
Projects for
automobile parts
factory 48,479,817 - 48,479,817 28,037,073 - 28,037,073
Projects for
automobiles
factory 21,082,317 - 21,082,317 17,752,703 - 17,752,703
Others 94,247,067 (691,646) 93,555,421 56,277,013 (691,646) 55,585,367
593,257,713 (6,435,960) 586,821,753 470,867,372 (6,435,960) 464,431,412
90
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Transfer to Accumulative Including:
Increase in Transfer to fixed intangible assets % of project capitalised Borrowing costs
Budget (In 31 December the current assets in the in the current investment in Progress of borrowing capitalised in the
Project name RMB0’000) 2023 period current period period 30 June 2024 budget project costs current period Source of fund
Projects for commercial
vehicles 293,659 176,425,357 192,463,305 (48,650,598) - 320,238,064 60% 60% - - Self-owned funds
Projects for passenger
vehicles 106,046 192,375,226 120,162,720 (203,327,498) - 109,210,448 58% 58% - - Self-owned funds
Projects for automobile
parts factory 13,175 28,037,073 23,064,740 (2,621,996) - 48,479,817 39% 39% - - Self-owned funds
Projects for automobiles
factory 311,994 17,752,703 173,255,508 (169,925,894) - 21,082,317 79% 79% - - Self-owned funds
Self-owned funds
Others 56,277,013 192,827,191 (150,338,199) (4,518,938) 94,247,067 292,897 - and borrowings
470,867,372 701,773,464 (574,864,185) (4,518,938) 593,257,713 292,897 -
The Group's Project for passenger vehicles and Projects for automobiles factory reached its intended design requirements and was available for its intended use
after installation, commissioning and acceptance for the six months ended 30 June 2024 and was transferred to fixed assets accordingly.
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
31 December 2023 current period current period 30 June 2024
Projects for passenger vehicles (4,460,314) - - (4,460,314)
Projects for commercial
vehicles (1,284,000) - - (1,284,000)
Other miscellaneous and
pending installation projects (691,646) - - (691,646)
(6,435,960) - - (6,435,960)
91
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Right-of-use assets
Buildings
Cost
31 December 2023 369,902,195
Increase in the current period
New lease contracts 37,552,314
Decrease in the current period
Expiration of lease contract (16,852,582)
30 June 2024 390,601,927
Accumulated depreciation
31 December 2023 (175,066,167)
Increase in the current period
Provision (41,568,134)
Decrease in the current period
Expiration of lease contract 16,852,581
30 June 2024 (199,781,720)
Provision for impairment
31 December 2023 -
Increase in the current period -
Decrease in the current period -
30 June 2024 -
Carrying amount
30 June 2024 190,820,207
31 December 2023 194,836,028
92
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Intangible assets
After-sales
services
Land use Software use Non-patent management
rights fees technologies mode Others Total
Cost
31 December 2023 628,964,157 394,046,217 1,839,778,636 36,979,184 1,599,516 2,901,367,710
Increase in the
current period
Transfers from
construction in
progress - 4,518,938 - - - 4,518,938
Internal research
and development - - 243,912,114 - - 243,912,114
Decrease in the
current period
Disposal (3,664,831) - - - - (3,664,831)
30 June 2024 625,299,326 398,565,155 2,083,690,750 36,979,184 1,599,516 3,146,133,931
Accumulated
amortisation
31 December 2023 (153,225,333) (235,386,600) (730,739,330) (36,979,184) (1,599,516) (1,157,929,963)
Increase in the
current period
Provision (6,599,907) (24,611,218) (169,576,002) - - (200,787,127)
Decrease in the
current period
Disposal 1,953,862 - - - - 1,953,862
30 June 2024 (157,871,378) (259,997,818) (900,315,332) (36,979,184) (1,599,516) (1,356,763,228)
Provision for
impairment
31 December 2023 - - (52,416,626) - - (52,416,626)
Increase in the
current period
Provision - - - - - -
30 June 2024 - - (52,416,626) - - (52,416,626)
Carrying amount
30 June 2024 467,427,948 138,567,337 1,130,958,792 - - 1,736,954,077
31December2023 475,738,824 158,659,617 1,056,622,680 - - 1,691,021,121
As at 30 June 2024, the intangible assets developed by the Group accounted for 59% (31
December 2023: 56%) of the carrying amount of intangible assets.
93
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Expenditure on research and development
The Group's total expenditure on research and development activities For the six months
ended 30 June 2024 and 2023 is presented by nature as follows:
Six months ended 30 June
2024 2023
Employee benefits 371,085,867 351,747,851
Design fee 195,801,929 291,839,084
Consumed materials 95,215,493 96,920,894
Depreciation and amortisation 42,867,809 138,004,437
Others 97,106,716 205,699,755
802,077,814 1,084,212,021
Wherein expenditure on research
and development on the
research phase (Note 4(45)) 617,237,727 748,135,775
(a) The changes in the Group's development expenditures eligible for capitalisation For the
six months ended 30 June 2024 is analysed as follows:
Transfer to intangible
31 December Increase in the assets in the current 30 June
2023 current period period 2024
Projects for
passenger
vehicles(i) 283,738,155 97,273,552 (243,912,114) 137,099,593
Projects for
commercial
vehicles(ii) - 87,566,535 - 87,566,535
283,738,155 184,840,087 (243,912,114) 224,666,128
(i) The capitalisation of Project for passenger vehicles started when the relevant products are
ready and the relevant research data is frozen, and it has passed the internal technical
review meeting of the Group. Upon completion of the development of the project, it is
expected to be used for mass production of product SUV that is competitive in the market.
The project progress of the main product as of June 30 2024 is 70%, and the completion
point of the Project is expected to be the second half year of 2024.
(ii) The capitalisation of Project for commercial vehicles started when the relevant products
are ready and the relevant research data is frozen, and it has passed the internal technical
review meeting of the Group. Upon completion of the development of the project, it is
expected to be used for mass production of product LT、PK、LCBV that is competitive in
the market. The project progress of the main product as of June 30 2024 is 24%, and the
completion point of the Project is expected to be the first half year of 2025.
94
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Expenditure on research and development (Cont’d)
For the six months ended 30 June 2024, there was no impairment of the Group's projects
under development expenditures (the six months ended 30 June 2023: Nil).
(19) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2024 31 December 2023
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 6,098,136,912 1,413,715,912 5,860,011,327 1,364,811,520
Recoverable losses 2,179,314,945 421,911,685 2,443,729,567 389,836,053
Provision for asset
impairment 1,135,035,531 174,790,345 1,192,154,407 183,615,437
Non-patent technology 371,978,395 81,988,457 304,526,218 63,692,824
Lease liability 181,378,686 33,547,805 218,076,092 34,258,049
Employee education
funds unpaid 80,096,978 12,533,212 81,356,938 12,728,702
Deferred income 65,025,145 9,753,772 67,601,361 10,140,204
Retirement benefits
plan 9,907,962 2,081,294 10,515,000 2,172,350
Others 243,763,612 32,194,904 186,761,227 28,046,234
10,364,638,166 2,182,517,386 10,364,732,137 2,089,301,373
Including:
Expected to be
recovered within 1
year (inclusive) 1,724,502,483 1,615,927,125
Expected to be
recovered after 1
year 458,014,903 473,374,248
2,182,517,386 2,089,301,373
95
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Deferred tax assets and deferred tax liabilities (Cont’d)
(b) Deferred tax liabilities before offsetting
30 June 2024 31 December 2023
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed assets 2,973,697,695 587,918,966 2,912,652,979 556,699,442
Right-of-use assets 190,820,207 30,069,711 194,836,028 30,336,433
Equity transactions between
parent and subsidiary 146,200,000 21,930,000 125,800,000 18,870,000
Differences between the fair
value of the identifiable net
assets and carrying amount
arising from business
combinations involving
enterprises not under
common control 75,885,063 18,971,266 77,027,559 19,256,890
Amortisation of intangible
assets 83,724,412 13,222,538 73,907,060 11,171,829
Others 4,175,785 684,713 1,064,183 220,115
3,474,503,162 672,797,194 3,385,287,809 636,554,709
Including:
Expected to be recovered
within 1 year (inclusive) 120,434,326 111,712,132
Expected to be recovered after 552,362,868
1 year 524,842,577
672,797,194 636,554,709
96
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses for which no deferred tax asset
was recognised were analysed as follows:
30 June 2024 31 December 2023
Deductible temporary differences 2,013,038,585 2,020,124,206
Deductible losses 296,066,641 276,440,468
2,309,105,226 2,296,564,674
(d) Deductible losses for which no deferred tax asset was recognised will be expired in
following years:
30 June 2024 31 December 2023
2024 109,336,011 109,336,011
2025 - -
2026 - -
2027 93,001,631 93,001,631
2028 74,184,911 74,102,826
2029 19,544,088 -
296,066,641 276,440,468
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as
follows:
30 June 2024 31 December 2023
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (653,825,928) 1,528,691,458 (617,297,819) 1,472,003,554
Deferred tax liabilities (653,825,928) 18,971,266 (617,297,819) 19,256,890
(20) Other non-current assets
30 June 2024 31 December 2023
Prepayment for molds 9,334,153 10,807,967
97
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Provision for asset impairment and losses
Decrease in the current period
31 December Increase in the Write-off
2023 current period Reversal /Disposal 30 June 2024
Provision for bad debts of notes receivable (Note
4(4)) 17,564 - (17,564) - -
Provision for bad debts of accounts receivable -
(Note 4(5)) 127,740,660 (2,199,927) - 125,540,733
Including: Provision for bad debts on the -
individual basis 110,154,214 - - 110,154,214
Provision for bad debts on the -
grouping basis 17,586,446 (2,199,927) - 15,386,519
Provision for bad debts of other receivables -
(Note 4(8)) 402,984 (155,303) - 247,681
Provision for bad debts of long-term receivables -
(Note 4(12)) 125,758 (14,909) - 110,849
Sub-total 128,286,966 - (2,387,703) - 125,899,263
Provision for decline in the value of inventories -
(Note 4(9)) 133,682,991 (4,296,473) (46,241,043) 83,145,475
Provision for impairment of fixed assets (Note -
4(14)) 598,776,312 - (4,574,527) 594,201,785
Provision for impairment of construction in -
progress (Note 4(15)) 6,435,960 - - 6,435,960
Provision for impairment of goodwill (i) 89,028,412 - - - 89,028,412
Provision for impairment of intangible assets -
(Note 4(17)) 52,416,626 - - 52,416,626
Sub-total 880,340,301 - (4,296,473) (50,815,570) 825,228,258
1,008,627,267 - (6,684,176) (50,815,570) 951,127,521
(i) As at 31 December 2019, the Group had made full provision for impairment of goodwill.
98
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Short-term borrowings
30 June 2024 31 December 2023
Credit loan 500,000,000 1,300,000,000
As at 30 June 2024, the Group had no overdue short-term borrowings and the interest
rates was 1.73% (31 December 2023: 1.73% to 2.40%).
(23) Accounts payable
30 June 2024 31 December 2023
Payable for automobile parts 10,151,169,323 9,094,393,825
Payable for raw and auxiliary
materials 352,485,134 381,821,398
10,503,654,457 9,476,215,223
As at 30 June 2024, accounts payable with aging over one year amounted to
RMB471,470,280 (31 December 2023: RMB408,228,798), which mainly represented
payables for materials for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.
99
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Contract liabilities
30 June 2024 31 December 2023
Advances for maintenance and warranty
services, etc. 366,074,110 226,857,269
Advances for automobiles and
automobile parts 166,715,955 137,176,924
532,790,065 364,034,193
Less: Contract liabilities carried forward
to revenue after 1 year (Note 4(35)) (191,053,046) (120,293,201)
341,737,019 243,740,992
(25) Employee benefits payable
30 June 2024 31 December 2023
Short-term employee benefits payable (a) 679,695,547 882,869,951
Defined contribution plans payable (b) 12,226,608 1,818,160
Defined benefit plans payable (c) 2,865,000 2,865,000
Termination benefits payable (d) 2,498,176 2,498,176
697,285,331 890,051,287
(a) Short-term employee benefits
31 December Increase in the Decrease in the
2023 current period current period 30 June 2024
Wages and salaries,
bonus, allowances
and subsidies 738,660,904 1,002,486,715 (1,212,722,880) 528,424,739
Staff welfare 56,932,663 42,596,523 (41,722,061) 57,807,125
Social security
contributions 152,685 67,176,666 (60,386,762) 6,942,589
Including: Medical
insurance 121,642 61,744,770 (55,099,088) 6,767,324
Work injury
insurance 31,043 5,431,896 (5,287,674) 175,265
Housing funds 28,935 95,002,808 (94,942,995) 88,748
Labour union funds
and employee
education funds 87,094,764 24,013,381 (24,675,799) 86,432,346
Other short-term
employee benefits - 2,792,616 (2,792,616) -
882,869,951 1,234,068,709 (1,437,243,113) 679,695,547
100
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Employee benefits payable (Cont’d)
(b) Defined contribution plans
Decrease in
31 December Increase in the the current
2023 current period period 30 June 2024
Basic pensions 1,761,709 130,670,009 (120,593,221) 11,838,497
Unemployment
insurance 56,451 4,130,573 (3,798,913) 388,111
1,818,160 134,800,582 (124,392,134) 12,226,608
(c) Defined benefit plans
Increase in Decrease in
31 December the current the current
2023 period period 30 June 2024
Post-retirement
benefits payable
(Note 4(34)) 2,865,000 1,327,912 (1,327,912) 2,865,000
(d) Termination benefits payable
30 June 2024 31 December 2023
Early retirement benefits payable
(Note 4(34)) 1,160,000 1,160,000
Other termination benefits (i) 1,338,176 1,338,176
2,498,176 2,498,176
(i) For the six months ended 30 June 2024, other termination benefits paid by the Group for
termination of the employment relationship were RMB908,195 (the six months ended 30
June 2023: RMB10,806,089).
(26) Taxes payable
30 June 2024 31 December 2023
Consumption tax payable 94,498,766 73,794,904
Land use tax payable 4,755,390 4,831,953
Unpaid VAT 1,468,053 637,391
Enterprise income tax payable - 18,702,207
Others 19,652,188 20,433,310
120,374,397 118,399,765
101
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Other payables
30 June 2024 31 December 2023
Promotion expenses 2,912,661,031 2,978,276,681
Research and development project
expenses 1,157,163,197 968,699,606
Ordinary share dividends payable 596,974,420 6,463,836
Construction payment 426,265,008 539,487,510
Transportation expenses 233,033,589 148,140,843
Guarantees 118,150,088 124,132,883
Advertising and new product
planning fees 115,858,701 166,568,934
Trademark license fee 32,125,080 17,037,453
Consulting fees 20,626,057 31,808,406
Technological transformation
project expenses 15,720,891 23,333,420
Others 832,693,405 941,026,521
6,461,271,467 5,944,976,093
As at 30 June 2024, other payables with aging over one year of RMB2,176,347,731 (31
December 2023: RMB1,967,233,887) mainly comprised guarantees collected from
distributors and repair stations, payables for promotion, payables for research and
development expenses and payables for construction projects. Such payables had not
been finally settled yet in view of the continuing business transactions with distributors and
service providers, and engineering projects and research and development projects that
had not yet been accepted and completed.
(28) Current portion of non-current liabilities
30 June 2024 31 December 2023
Current portion of lease liabilities
(Note 4(31)) 91,183,449 80,070,149
Current portion of long-term
borrowings (Note 4(30)) 11,316,637 13,313,749
102,500,086 93,383,898
(29) Other current liabilities
30 June 2024 31 December 2023
Provisions expected to be settled
within 1 year (Note 4(32)) 370,028,474 356,115,630
Others 21,673,074 17,833,000
391,701,548 373,948,630
102
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Long-term borrowings
30 June 2024 31 December 2023
Guaranteed loans(a) 1,633,424 1,855,219
Credit loans(b) 10,849,945 12,849,944
Less: Current portion of long-term
borrowings (Note 4(28)) (11,316,637) (13,313,749)
1,166,732 1,391,414
(a) As at 30 June 2024, the above guaranteed loans were long-term borrowings amounting to
USD 229,195 guaranteed by JMCF (note7(c)), borrowed from Industrial and Commercial
Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half
year and the principal paid in instalments between 10 December 2007 and 27 October
2027.
30 June 2024 31 December 2023
Amount in Amount in
Starting Maturity Interest foreign RMB foreign RMB
date date Currency rate (%) currency equivalent currency equivalent
ICBC
Nanchang
Ganjiang 27 February 27 October
Sub - branch 1998 2027 USD 1.5% 229,195 1,633,424 261,937 1,855,219
(b) As at 30 June 2024, the principal amount of bank credit borrowings is repayable in
installments during 2024.
(c) As at 30 June 2024, the Group had no overdue long-term borrowings and the Group’s
interest rates ranged from 1.5% to 2.5% (31 December 2023: 1.5% to 2.5%).
(31) Lease liabilities
30 June 2024 31 December 2023
Lease liabilities (a) 181,378,686 218,076,092
Less: Current portion of non-
current liabilities (Note 4(28)) (91,183,449) (80,070,149)
90,195,237 138,005,943
(a) As at 30 June 2024, the Group had no leases that were not included in lease liabilities but
will result in potential future cash outflows.
103
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Provisions
Increase in Decrease in
31 December the current the current 30 June
2023 period period 2024
Product warranties (a) 658,386,726 169,166,499 (138,267,239) 689,285,986
Provisions for contract
fulfilment 13,429,167 - - 13,429,167
671,815,893 169,166,499 (138,267,239) 702,715,153
Less: Provisions expected to
be settled within 1
year (Note 4(29)) (356,115,630) (370,028,474)
315,700,263 332,686,679
(a) Product warranties are expenses expected to be incurred during the warranty period from free
after-sales services, product warranty and other services for the vehicles sold.
(33) Deferred income
Increase in Decrease in
31 December the current the current
2023 period period 30 June 2024
Government grants 67,601,361 2,300,000 (4,876,216) 65,025,145
(a) Government grants
Decrease in the
current period
31 December Increase in the Recognised in
2023 current period other income 30 June 2024
Government grants
related to assets 8,724,703 - (805,357) 7,919,346
Government grants
related to income 58,876,658 2,300,000 (4,070,859) 57,105,799
67,601,361 2,300,000 (4,876,216) 65,025,145
104
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Long-term employee benefits payable
30 June 2024 31 December 2023
Supplementary retirement benefits
and early-retirement benefits
eligible for recognition of
provisions 54,981,050 56,916,000
Less: Payable within 1 year (4,025,000) (4,025,000)
50,956,050 52,891,000
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 4(25)(c), Note 4(25)(d)).
For retired and early-retired employees, the Group provides them with a certain amount of
supplementary benefits during their retirement or early-retirement period. The amount of
benefits depends on the employee’s position, length of service and salary at the time of
retirement or early-retirement, and is adjusted in accordance with inflation rate and other
factors. The Group’s obligations for supplementary retirement and early-retirement
benefits as at the balance sheet date were calculated using projected unit credit method
and were reviewed by an external independent actuary.
(a) Movements of retirement and early-retirement benefits of the Group are as follows:
Present value of the obligations of the defined
benefit plan
30 June 2024 31 December 2023
Opening balance 56,916,000 55,374,000
Cost of defined benefit plans
recognised in profit or loss for the
current period
- Current service cost - 1,141,000
- Past service cost - -
- Actuarial losses
recognised immediately - (331,000)
- Net interest - 1,610,000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial losses - 2,593,000
Other movements
- Benefits paid (1,934,950) (3,471,000)
Ending balance 54,981,050 56,916,000
105
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Long-term employee benefits payable (Cont’d)
(b) The major actuarial assumptions used to determine the present value of defined benefit
plan obligations of the Group
30 June 2024 31 December 2023
Discount rate 2.50% 2.50%
Inflation rate 2.00% 2.00%
Salaries and benefits growth rates 0%-6% 0%-6%
Future mortality assumptions were determined based on the China Life Insurance
Mortality Table (2010-2013), which is publicly available statistical information for the
Chinese region.
(35) Other non-current liabilities
30 June 2024 31 December 2023
Contract liabilities carried forward to
revenue after 1 year (Note 4(24)) 191,053,046 120,293,201
106
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Share capital
Movements for the current period
31 December Shares newly Bonus Transfer from
2023 issued share capital surplus Others Sub-total 30 June 2024
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745,140 - - - - - 745,140
Shares held by domestic
natural persons 5,700 - - - - - 5,700
750,840 - - - - - 750,840
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518,463,160 - - - - - 518,463,160
Domestically listed foreign shares 344,000,000 - - - - - 344,000,000
862,463,160 - - - - - 862,463,160
863,214,000 - - - - - 863,214,000
Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 30 June 2024, there were 750,840 shares
currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions.
107
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Share capital (Cont’d)
Movements for the current period
Transfer
31 December Shares Bonus from capital
2022 newly issued share surplus Others Sub-total 31 December 2023
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745,140 - - - - - 745,140
Shares held by domestic
natural persons 5,700 - - - - - 5,700
750,840 - - - - - 750,840
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518,463,160 - - - - - 518,463,160
Domestically listed foreign shares 344,000,000 - - - - - 344,000,000
862,463,160 - - - - - 862,463,160
863,214,000 - - - - - 863,214,000
108
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Capital surplus
31 December Increase in the Decrease in the
2023 current period current period 30 June 2024
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
31 December Increase in the Decrease in the 31 December
2022 current period current period 2023
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
109
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Other comprehensive income
Other comprehensive income in the balance Other comprehensive income in the income statement for the six
sheet months ended 30 June 2024
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
31 December company after tax for the income in the Less: Income company after the subsidiary
2023 tax 30 June 2024 current period current period tax expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (20,572,000) - (20,572,000) - - - - -
Other comprehensive income in the balance Other comprehensive income in the income statement for the year
sheet ended 31 December 2023
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
31 December company after 31 December tax for the income in the Less: Income company after the subsidiary
2022 tax 2023 current period current period tax expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (13,484,250) (7,087,750) (20,572,000) (2,593,000) - (4,494,750) (7,087,750) -
110
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Surplus reserve
31 December Increase in the Decrease in the
2023 current period current period 30 June 2024
Statutory surplus reserve 431,607,000 - - 431,607,000
31 December Increase in the Decrease in the 31 December
2022 current period current period 2023
Statutory surplus reserve 431,607,000 - - 431,607,000
In accordance with the Company Law of the People’s Republic of China, the Company’s
Articles of Association and the resolution of the Board of Directors, the Company should
appropriate 10% of net profit for the year to the statutory surplus reserve, and the
Company can cease appropriation when the statutory surplus reserve accumulated to
more than 50% of the registered capital. The statutory surplus reserve can be used to
make up for the loss or increase the share capital upon approval from the appropriate
authorities. As the accumulated appropriation to the statuary surplus reserve exceeded
50% of the registered capital, no appropriation was made in the current period (2023: Nil).
The Company reserves the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can
be used to compensate for the losses incurred in prior years or increase the share capital
upon approval from appropriate authorities.
(40) Retained earnings
Six months ended 30 June
2024 2023
Retained earnings at the beginning
of the year 8,232,632,623 7,123,038,093
Add: Net profit attributable to shareholders of the
parent company for the current period 895,480,117 729,387,557
Less: Ordinary share dividends payable (a) (590,438,376) (366,002,736)
Retained earnings at the end of the
year 8,537,674,364 7,486,422,914
(a) According to the resolution of the meeting of Board of Directors on 28 Mar 2024, the Board
of Directors proposed to distribute cash dividends of RMB0.684 per share to all
shareholders of the Company, calculated on the basis of 863,214,000 issued shares, for a
total of RMB590,438,376 , and the proposal was approved by the shareholders' meeting
on 25 June 2024.
111
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Revenue and cost of sales
Six months ended 30 June
2024 2023
Revenue from main operations 17,435,844,213 15,204,056,146
Revenue from other operations 484,221,588 225,316,163
17,920,065,801 15,429,372,309
Six months ended 30 June
2024 2023
Cost of sales from main operations 15,079,623,428 13,075,685,660
Cost of sales from other operations 410,257,260 206,884,269
15,489,880,688 13,282,569,929
(a) Revenue and cost of sales from main operations
Six months ended 30 June
2024 2023
Revenue from Cost of sales from Revenue from Cost of sales from
main operations main operations main operations main operations
Sales of
automobiles 16,234,132,009 14,124,912,768 13,332,827,137 11,574,416,648
Sales of
automobile
parts 858,699,049 615,732,277 1,810,283,833 1,443,434,830
Automobile
maintenance
services, etc. 343,013,155 338,978,383 60,945,176 57,834,182
17,435,844,213 15,079,623,428 15,204,056,146 13,075,685,660
(b) Revenue and cost of sales from other operations
Six months ended 30 June
2024 2023
Revenue from Cost of sales from Revenue from Cost of sales from
other operations other operations other operations other operations
Sales of
materials 326,730,729 312,885,452 175,794,567 159,216,134
Others 157,490,859 97,371,808 49,521,596 47,668,135
484,221,588 410,257,260 225,316,163 206,884,269
112
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Revenue and cost of sales (Cont’d)
(c) The breakdown of the Group’s revenue by product and service transfer time was as follows:
Six months ended 30 June 2024
Automobile
Automobile maintenance Materials
Automobiles parts services, etc. and others Total
Revenue from main operations 16,234,132,009 858,699,049 343,013,155 - 17,435,844,213
Including: Recognised at a
time point 16,234,132,009 858,699,049 - - 17,092,831,058
Recognised
within a certain
period - - 343,013,155 - 343,013,155
Revenue from other
operations (i) - - - 484,221,588 484,221,588
16,234,132,009 858,699,049 343,013,155 484,221,588 17,920,065,801
Six months ended 30 June 2023
Automobile
Automobile maintenance Materials and
Automobiles parts services, etc. others Total
Revenue from main operations 13,332,827,137 1,810,283,833 60,945,176 - 15,204,056,146
Including: Recognised at a
time point 13,332,827,137 1,810,283,833 - - 15,143,110,970
Recognised
within a certain
period - - 60,945,176 - 60,945,176
Revenue from other
operations (i) - - - 225,316,163 225,316,163
13,332,827,137 1,810,283,833 60,945,176 225,316,163 15,429,372,309
(i) The Group's revenue from other operations includes sales of materials and technical service
provided. Revenue from sales of materials is recognised at a certain time point, and revenue
from technical service provided is recognised within a certain period.
As at 30 June 2024, the amount of revenue corresponding to the performance obligations that
the Group had contracted but had not commenced or completed was RMB532,790,065, of
which the Group expects that RMB166,715,955 and RMB175,021,064 will be recognised as
revenue from the sales of automobiles and parts and revenue from the sales of automobile
maintenance services respectively in 2024, RMB191,053,046 will be recognised as revenue
from automobile maintenance services from 2025 to 2029.
(42) Taxes and surcharges
Six months ended 30 June
2024 2023
Consumption tax 524,126,267 373,711,792
City maintenance and construction tax 49,997,854 18,963,390
Educational surcharge 49,882,499 18,884,757
Stamp tax 29,026,562 8,613,872
Land use tax 10,228,561 10,305,123
Real estate tax 9,909,327 9,680,483
Others 212,283 204,130
673,383,353 440,363,547
113
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(43) Selling and distribution expenses
Six months ended 30 June
2024 2023
Promotion expenses 279,009,783 227,249,175
Employee benefits 119,214,306 117,185,212
Advertising and new product planning fees 54,490,620 70,042,801
Storage expenses 24,921,332 25,782,982
Packaging material expenses 15,610,119 15,619,732
Depreciation and amortisation expenses 8,566,421 3,849,137
Others 115,263,170 69,990,572
617,075,751 529,719,611
(44) General and administrative expenses
Six months ended 30 June
2024 2023
Employee benefits 257,247,147 305,643,416
Depreciation and amortisation expenses 60,085,504 74,160,233
Trademark license fee 52,181,119 32,535,858
Repair expenses 10,219,241 10,861,777
Consulting fees 7,170,257 6,821,567
General office expenses 5,334,911 6,348,243
Others 68,267,648 83,743,847
460,505,827 520,114,941
(45) Research and development expenses
Six months ended 30 June
2024 2023
Employee benefits 300,676,533 256,836,007
Design fee 124,951,201 118,103,150
Materials expenses 82,212,567 85,363,612
Depreciation and amortisation expenses 42,867,809 138,004,437
Others 66,529,617 149,828,569
617,237,727 748,135,775
114
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(46) Financial expenses
Six months ended 30 June
2024 2023
Interest costs 8,911,864 12,140,837
Add: Interest costs on lease liabilities 4,483,267 5,390,685
Interest expenses 13,395,131 17,531,522
Less: Interest income from cash at bank (112,657,246) (108,590,767)
Other interest income (3,905,129) (7,883,210)
Interest income (116,562,375) (116,473,977)
Exchange gains or losses 15,075,445 4,937,885
Others 436,332 698,209
(87,655,467) (93,306,361)
(47) Expenses by nature
The cost of sales, selling and distribution expenses, general and administrative expenses
and research and development expenses in the income statement are listed as follows by
nature:
Six months ended 30 June
2024 2023
Changes in inventories of finished goods and
work in progress (23,323,145) 294,331,743
Consumed raw materials and low value
consumables, etc. 13,585,276,006 11,856,243,351
Employee benefits 1,371,712,445 1,356,861,864
Depreciation of fixed assets 485,221,314 442,918,223
Amortisation of intangible assets 200,787,127 132,580,119
Depreciation of right-of-use assets 41,568,134 36,087,214
Transportation expenses 312,941,991 259,830,610
Promotion expenses 279,009,783 227,249,175
Warranties 169,166,499 126,130,480
Design fee 124,951,201 118,103,150
Advertising and new product planning fees 54,490,620 70,042,801
Technology development expenses 112,555,295 75,714,080
Fixed asset repair and maintenance
expenses (a) 51,950,328 54,578,826
Others 418,392,395 29,868,620
17,184,699,993 15,080,540,256
115
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Expenses by nature (Cont’d)
(a) The Group includes daily maintenance expenses ineligible for the capitalisation of fixed
assets regarding the production and processing of inventories into cost of inventories,
which will be carried forward to cost of sales, and those regarding the R&D Department,
Administrative Department, and Sales Department are included in research and
development expenses, management expenses and selling and distribution expenses
respectively.
(48) Asset impairment losses
Six months ended 30 June
2024 2023
Losses on decline in the value of inventories (4,296,473) -
(49) Credit impairment losses
Six months ended 30 June
2024 2023
Losses on bad debts of accounts receivable (2,199,927) 2,770,236
Losses on bad debts of other receivables (155,303) (92,558)
Losses on bad debts of notes receivable (17,564) (318,280)
Losses on bad debts of long-term receivables (14,909) (23,520)
(2,387,703) 2,335,878
(50) Other income
Six months ended 30 June Asset related/
2024 2023 Income related
Government grants
- Supporting funds by
government 50,000,000 350,200,000 Income related
- Research and development
activities related subsidies 13,820,858 2,192,354 Income related
- Equipment purchasing-related
subsidies 805,357 805,357 Asset related
- Other subsidies related with
daily operation 11,752,761 5,446,243 Income related
Additional deduction of input
VAT, etc. 303,586,244 — —
379,965,220 358,643,954
116
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(51) Investment income
Six months ended 30 June
2024 2023
Losses on discount of financing receivables
eligible for derecognition (Note 4(6)) - (12,045,045)
Losses on long-term equity investments
under equity method (2,527,255) (3,893,639)
Investment income from forward exchange
settlement 5,982,935 2,524,896
Investment income from financial assets
held for trading 2,652,711 -
6,108,391 (13,413,788)
There is no significant restriction on the remittance of investment income of the Group.
(52) Gains on changes in fair value
Six months ended 30 June
2024 2023
Derivative financial assets and derivative
financial liabilities -
Gains on forward exchange contracts 4,970,251 4,114,063
Financial assets at fair value through profit
or loss -
Structural deposits (21,425) 136,000
4,948,826 4,250,063
(53) Gains on disposal of assets
Six months ended 30 June Amount recognised in
non-recurring profit or
loss For the six
months ended 30
2024 2023 June 2024
Gains/ (Losses) on disposal of
assets 10,657,596 (293,630) 10,657,596
117
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Non-operating income
Six months ended 30 June Amount recognised in
non-recurring profit or
loss For the six
months ended 30
2024 2023 June 2024
Penalty income and
Others 1,134,539 7,042,517 1,134,539
(55) Non-operating expenses
Six months ended 30 June Amount recognised in
non-recurring profit or
loss For the six
months ended 30
2024 2023 June 2024
Losses on scrapping
of assets 65,698 462,383 65,698
Donations 2,792,688 5,050 2,792,688
Others 2,362,709 118,006 2,362,709
5,221,095 585,439 5,221,095
(56) Income tax expenses
Six months ended 30 June
2024 2023
Current income tax calculated based
on tax law and related regulations 4,274 (173,134,972)
Deferred income tax (56,973,528) 81,600,830
(56,969,254) (91,534,142)
118
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Income tax expenses (Cont’d)
The reconciliation from income tax calculated based on the applicable tax rates and total
profit presented in the consolidated income statement to the income tax expenses is listed
as follows:
Six months ended 30 June
2024 2023
Total profit 553,915,575 355,082,666
Income tax calculated at applicable tax rates 83,087,336 (38,901,653)
Effect of different applicable tax rates (71,290,587) 20,382,054
Additional deductions (72,828,094) (90,087,306)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 3,135,138 12,742,388
Non-deductible investment losses 379,088 584,046
Costs, expenses and losses not deductible
for tax purposes 547,865 3,746,329
Income tax expenses (56,969,254) (91,534,142)
(57) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of
outstanding ordinary shares of the parent company:
Six months ended 30 June
2024 2023
Consolidated net profit attributable to ordinary
shareholders of the parent company 895,480,117 729,387,557
Weighted average number of ordinary shares
outstanding issued by the Company 863,214,000 863,214,000
Basic earnings per share 1.04 0.84
(b) Diluted earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company adjusted based on the dilutive potential
ordinary shares by the adjusted weighted average number of outstanding ordinary shares
of the Company. As there were no dilutive potential ordinary shares for the six months
ended 30 June 2024 (the six months ended 30 June 2023: Nil), diluted earnings per share
equalled to basic earnings per share.
119
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Notes to the cash flow statement
The Group does not present cash flows on a net basis, and the significant cash flow items
are presented as follows:
(a) Cash received relating to other operating activities
Six months ended 30 June
2024 2023
Government grants 75,117,834 362,576,242
Guarantees 18,017,968 22,162,178
Others 25,748,723 20,552,818
118,884,525 405,291,238
(b) Cash paid relating to other operating activities
Six months ended 30 June
2024 2023
Research and development expenses 279,544,973 468,474,355
Promotion expenses 262,782,714 209,100,546
Advertising expenses 106,878,573 79,645,485
Maintenance expenses 34,102,249 43,587,238
Trademark royalties 32,447,757 27,447,499
Guarantees 29,075,464 33,126,160
Consulting fees 24,608,124 25,157,593
Others 288,779,796 258,633,384
1,058,219,650 1,145,172,260
(c) Cash received from disposal of investments
Six months ended 30 June
2024 2023
Cash receipts on maturity from structural
deposits 400,000,000 -
(d) Cash paid to acquire investments
Six months ended 30 June
2024 2023
Cash paid to purchase structural deposits 400,000,000 100,000,000
120
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Notes to the cash flow statement (Cont’d)
(e) Cash received relating to other investing activities
Six months ended 30 June
2024 2023
Interest from cash at bank 118,380,474 94,653,202
Other interest 9,764,230 8,581,891
128,144,704 103,235,093
(f) Cash paid relating to other financing activities
Six months ended 30 June
2024 2023
Payments of lease liabilities 12,923,965 9,449,108
Payment of deposit on a bank
acceptance bill - 500,000,000
12,923,965 509,449,108
(59) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
Six months ended 30 June
2024 2023
Net profit 610,884,829 446,616,808
Add: Asset impairment losses (Note 4(48)) (4,296,473) -
Credit impairment losses (Note 4(49)) (2,387,703) 2,335,878
Depreciation of fixed assets (Note 4(14)) 485,221,314 442,918,223
Amortisation of intangible assets (Note 4(17)) 200,787,127 132,580,119
Depreciation of right-of-use assets (Note 4(16)) 41,568,134 36,087,214
(Gains)/Losses on disposal of long-term assets (10,591,898) 755,894
Financial income (88,092,019) (94,004,623)
Investment (Gains)/Losses(Note 4(51)) (6,108,391) 13,413,788
Gains on changes in fair value (Note 4(52)) (4,948,826) (4,250,063)
Increase in deferred tax assets (56,687,904) (35,963,252)
Decrease in deferred tax liabilities (285,624) (340,693)
(Increase) /Decrease in inventories (788,821,169) 308,145,911
Increase/(Decrease) in provisions 30,899,260 (11,244,035)
(Increase) /Decrease in operating receivables (719,744,780) 694,355,906
Increase/(Decrease) in operating payables 1,043,839,882 (233,209,908)
Decrease/(Increase) in other cash and cash
equivalents 2,093,918 (41,048,830)
Net cash flows generated from operating activities 733,329,677 1,657,148,337
121
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(59) Supplementary information to the cash flow statement (Cont’d)
(a) Supplementary information to the cash flow statement (Cont’d)
Net increase/(decrease) in cash and cash equivalents
Six months ended 30 June
2024 2023
Cash and cash equivalents at the end of
the year 10,967,680,201 9,258,663,984
Less: Cash and cash equivalents at the
beginning of the year (11,746,518,615) (8,543,193,654)
Net (decrease)/increase in cash and cash
equivalents (778,838,414) 715,470,330
122
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(59) Supplementary information to the cash flow statement (Cont’d)
(b) Changes in liabilities arising from financing activities
Other accounts Long-term
Bank borrowings payable Lease liabilities receivables
(including the (including the (including the (including the
current portion) current portion) current portion) current portion) Total
31 December 2023 1,314,705,163 6,468,514 218,076,092 38,651,260 1,577,901,029
Cash inflows from financing activities 995,542,778 - - 661,625 996,204,403
Cash outflows from financing activities (1,806,527,811) (164,458) (12,923,965) - (1,819,616,234)
Interest accrued in the current period 8,748,014 163,850 4,483,268 - 13,395,132
Dividends accrued in the current period - 590,438,376 - - 590,438,376
Changes that do not involve cash 15,225 72,209 (28,256,709) (5,290,749) (33,460,024)
receipts and payments
30 June 2024 512,483,369 596,978,491 181,378,686 34,022,136 1,324,862,682
123
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(59) Supplementary information to the cash flow statement (Cont’d)
(c) Cash and cash equivalents
30 June 2024 31 December 2023
Cash at bank available for payment at any
time 9,683,853,944 10,653,646,811
Cash at finance company available for
payment at any time 1,283,826,257 1,092,871,804
10,967,680,201 11,746,518,615
(i) As in Note 4(1), other cash and cash equivalents of RMB18,760,506 as at 30 June 2024(31
December 2023: RMB20,854,424) was not included in cash and cash equivalents.
(60) Foreign currency monetary items
30 June 2024
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings -
USD 229,195 7.1268 1,633,424
Other payables -
USD 14,701,984 7.1268 104,778,103
EUR 33,288 7.6617 255,043
105,033,146
124
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Equity in other entities
(1) Equity in subsidiaries
Structure of the Group
Main place of Place of Registered Method of
Subsidiaries business registration capital Nature of business Shareholding (%) acquisition
Direct Indirect
Nanchang, Nanchang, Retail, wholesale and lease of Set up by
JMCS Jiangxi Jiangxi 50,000,000 automobiles 100% - investment
Business
combinations
involving
enterprises not
Taiyuan, Taiyuan, Manufacture and sales of under common
JMCH Shanxi Shanxi 1,323,793,174 automobiles 100% - control
Shenzhen, Shenzhen, Retail, wholesale and lease of Set up by
SZFJ Guangdong Guangdong 10,000,000 automobiles 100% - investment
Guangzhou, Guangzhou, Retail, wholesale and lease of Set up by
GZFJ Guangdong Guangdong 10,000,000 automobiles 100% - investment
Jiangling Ford Sales of automobiles, technical and Set up by
(Shanghai)(a) Shanghai Shanghai 200,000,000 business information consultation 51% - investment
125
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Equity in other entities (Cont’d)
(1) Equity in subsidiaries (Cont’d)
(a) Subsidiaries with significant minority interests
The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the
proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders
in the Group’s consolidated net profit, as follows:
Total profit or loss Dividends paid to
Shareholding of attributable to minority minority shareholders for
minority shareholders for the year the year ended 30 June Minority interests as
Subsidiaries shareholders ended 30 June 2024 2024 at 30 June 2024
Jiangling Ford (Shanghai) 49% (284,595,288) - (649,868,406)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
As at June 30 2024
Current Non-current Current Non-current
assets assets Total assets liabilities liabilities Total liabilities
Jiangling Ford (Shanghai) 379,335,434 525,626,149 904,961,583 2,217,698,379 13,525,255 2,231,223,634
The six months ended 30 June 2024
Total
comprehensive Cash flows from
Revenue Net loss loss operating activities
Jiangling Ford (Shanghai) 2,085,240,315 (580,806,710) (580,806,710) (316,803,331)
126
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Equity in other entities (Cont’d)
(2) Equity in associates
(a) General information of significant associates
The Group determines the significant joint ventures and associates by taking into account factors
such as whether the joint ventures and associates are listed companies, the proportion of their
carrying amounts to the Group’s consolidated total assets, and the proportion of the investment
income from long-term equity investments under equity method to the Group’s consolidated net
profit, as set out below:
Shareholding (%)
Place of registration Direct Indirect
Associate -
The Power Company Taiyuan, Shanxi 40% -
(b) Summarised financial information for significant associates
30 June 2024 31 December 2023
The Power Company The Power Company
Current assets 185,760,750 194,206,175
Non-current assets 440,017,930 443,606,551
Total assets 625,778,680 637,812,726
Current liabilities 146,812,859 147,988,407
Non-current liabilities 39,594 74,039
Total liabilities 146,852,453 148,062,446
Minority interests 191,570,491 195,900,112
Equity attributable to shareholders of the
parent company 287,355,736 293,850,168
Share of net assets based on shareholding
(i) 191,570,491 195,900,112
Adjustments
- Unrealised profits arising from internal
transactions (14,062,135) (14,425,830)
- Others (ii) 20,853,323 20,853,323
Carrying amount of equity investments in
associates 198,361,679 202,327,605
127
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Equity in other entities (Cont’d)
(2) Equity in associates (Cont’d)
(b) Summarised financial information for significant associates (Cont’d)
The six months ended 30 June
2024 2023
The Power Company The Power Company
Revenue 27,275,105 23,975,774
Net loss (10,982,624) (12,707,406)
Other comprehensive
income - -
Total comprehensive loss (10,982,624) (12,707,406)
Dividends received from
associates by the Group - -
(i) The Group calculated the shares of net assets in proportion of the shareholdings and based on
the amount attributable to the parent company of the associates in their consolidated financial
statements. The amount in the consolidated financial statements of associates considers the fair
value of identifiable assets and liabilities at the time of acquisition of the investments and the
impact of adjustments to uniform accounting policies. None of the assets involved in transactions
between the Group and associates contribute to business.
(ii) Other adjustments were mainly the remeasurement of fair value of remaining equity in the
consolidated financial statements, which resulted from the loss of control over the original
subsidiary due to the disposal of part of the equity investment.
(c) Summarised information of insignificant associates
The six months ended 30 June
2024 2023
Aggregated carrying amount of investments 28,773,014 35,979,511
Aggregate of the following items based on shareholding
Net profit/(loss) (i) 1,438,671 (1,447,622)
Other comprehensive income (i) - -
Total comprehensive income/(loss) 1,438,671 (1,447,622)
(i) Net profit and other comprehensive income have taken into account the fair value of identifiable
assets and liabilities at the time of acquisition of the investments and the impact of adjustments to
uniform accounting policies.
128
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Segment information
Revenue and profits of the Group mainly arise from production and domestic sales of
automobiles, and the primary assets of the Group are all located in China. Management of
the Group assesses the operating performance of the Group as a whole. Therefore, no
segment report is prepared for the current period.
For the six months ended 30 June 2024, the revenue obtained from a single customer of
the Group accounted for more than 10% of the Group’s revenue, amounting to
RMB5,056,371,717 (the six months ended 30 June 2023: RMB4,775,490,540 ), or 28.22%
(the six months ended 30 June 2023: 30.95% ), of the Group’s revenue.
7 Related parties and related party transactions
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal
enterprise registration representative Nature of business Code of organisation
State-owned Nanchang, Investment and asset
JIC enterprise China Qiu Tiangao management 91360125MA38LUR91F
Foreign United William Clay Ford, Manufacture and sales
Ford enterprise States Jr. of automobiles N/A
(b) Registered capital and changes in major shareholders
31 December Increase in the Decrease in the
2023 current period current period 30 June 2024
JIC 1,000,000,000 - - 1,000,000,000
Ford USD 42,000,000 - - USD 42,000,000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
30 June 2024 31 December 2023
Shareholding Voting rights Shareholding Voting rights
(%) (%) (%) (%)
JIC 41.03% 41.03% 41.03% 41.03%
Ford 32% 32% 32% 32%
(2) Information of subsidiaries
The general information and other related information of subsidiaries are set out in Note
5(1).
(3) Information of associates
The information of associates is set out in Note 4(13).
129
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(4) Information of other related parties
Relationship with the Group
JMCG Shareholder of JIC
Chongqing Changan Automobile Co., Ltd.(hereinafter
referred to as “Chongqing Changan”) Shareholder of JIC
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi Lingrui Recycling Resources Development
Wholly-owned Subsidiary of JMCG
Corporation
Jiangling Automobile Group (Nanchang) Fushan
Wholly-owned Subsidiary of JMCG
Energy Co., Ltd.
Jiangxi JMCG Industry Co., Ltd. Wholly-owned Subsidiary of JMCG
JMCG Property Management Co. Wholly-owned Subsidiary of JMCG
JMCG Jingma Motors Co., Ltd. Wholly-owned Subsidiary of JMCG
Nanchang Gear Forging Co.,Ltd. Wholly-owned Subsidiary of JMCG
JMCF Wholly-owned Subsidiary of JMCG
Jiangxi Jiangling Chassis Co., Ltd. Wholly-owned Subsidiary of JMCG
Nanchang JMCG Liancheng Auto Component Co.,
Wholly-owned Subsidiary of JMCG
Ltd.
Nanchang JMCG Shishun Logistics Co., Ltd. Holding Subsidiary of JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,
Holding Subsidiary of JMCG
Ltd.
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Holding Subsidiary of JMCG
Nanchang Jiangling HuaXiang Auto Components
Holding Subsidiary of JMCG
Co., Ltd.
Jiangxi Jiangling Lear Interior System Co., Ltd. Holding Subsidiary of JMCG
Nanchang Unistar Electric & Electronics Co., Ltd. Holding Subsidiary of JMCG
Jiangxi ISUZU Engine Co., Ltd. Holding Subsidiary of JMCG
Jiangxi ISUZU Co., Ltd. Holding Subsidiary of JMCG
Jiangxi JMCG Specialty Vehicles Co., Ltd. Holding Subsidiary of JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Holding Subsidiary of JMCG
Ford Motor Co. Thailand Ltd. Wholly-owned Subsidiary of Ford
Ford Global Technologies,LLC Wholly-owned Subsidiary of Ford
Ford Motor Research & Engineering (Nanjing) Co.,
Wholly-owned Subsidiary of Ford
Ltd.
Ford Motor (China) Co., Ltd. Wholly-owned Subsidiary of Ford
Ford Trading Company, LLC Wholly-owned Subsidiary of Ford
Auto Alliance (Thailand) Co., Ltd. Holding Subsidiary of Ford
Ford Otomotiv Sanayi A.S. Holding Subsidiary of Ford
Ford Vietnam Limited Holding Subsidiary of Ford
Ford Electric Mach Technology (Nanjing) Co., Ltd Holding Subsidiary of Ford
Changan Ford Automobile Co., Ltd. Joint venture of Ford
Jiangling Material Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Xinchen Auto Component Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang Lianda Machinery Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Boya brake system Co., Ltd. Subsidiary under indirect control of JMCG
Jiangling Aowei Automobile Spare Part Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Subsidiary under indirect control of JMCG
JMCG Jiangxi Engineering Construction Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang Hengou Industry Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Subsidiary under indirect control of JMCG
Ltd.
Jiangxi JMCG Motorhome Co.,Ltd. Subsidiary under indirect control of JMCG
China Changan Group Tianjin Sales Co., Ltd. Group Subsidiary of Chongqing Changan
Chongqing Anfu Vehicle Marketing Co., Ltd. Group Subsidiary of Chongqing Changan
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
130
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(4) Information of other related parties (Cont'd)
Relationship with the Group
Beijing Baiwang Changfu Vehicle Sales & Service
Group Subsidiary of Chongqing Changan
Co., Ltd.
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
Dali Wanfu Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
Guizhou Wanjia Automobile Sales and Service Co.
Group Subsidiary of Chongqing Changan
LTD
Beijing Beifang Changfu Vehicle Sales & Service Co.,
Group Subsidiary of Chongqing Changan
Ltd.
Chongqing Anbo Vehicle Sales Co., Ltd. Group Subsidiary of Chongqing Changan
Nanchang Yinlun Heat-exchanger Co., Ltd. Joint venture of JMCG
Dibao transportation equipment (Nanchang) Co., Ltd Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd. Associate of JMCG
Nanchang Baojiang Steel Processing Distribution
Associate of JMCG
Co., Ltd.
Faurecia Emissions Control Technologies
Associate of JMCG
(Nanchang) Co., Ltd.
Jiangxi Lingyun Automobile Industry Technology Co.,
Associate of JMCG
Ltd
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Associate of JMCG
Jiangling Motor Holdings Co., Ltd. Associate of JMCG
131
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions
(a) Purchase and sales of goods, provision and receipt of services
Purchase of goods:
Six months ended 30 June
Nature of related party transactions 2024 2023
Ford Purchase of automobile parts 780,177,730 70,921,401
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of automobile parts 600,584,838 612,879,253
Nanchang Jiangling HuaXiang Auto Components
Purchase of automobile parts
Co., Ltd. 590,768,738 573,081,318
Nanchang Baojiang Steel Processing Distribution
Purchase of raw materials
Co., Ltd. 405,780,356 338,563,188
Jiangxi Jiangling Chassis Co., Ltd. Purchase of automobile parts 393,178,316 298,114,886
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Purchase of automobile parts 377,760,824 296,110,915
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of automobile parts 347,400,376 354,855,203
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of automobile parts 264,589,567 262,668,568
Nanchang JMCG Liancheng Auto Component Co.,
Purchase of automobile parts
Ltd. 177,941,031 134,266,900
Nanchang Unistar Electric & Electronics Co., Ltd. Purchase of automobile parts 116,897,654 141,928,577
Faurecia Emissions Control Technologies
Purchase of automobile parts
(Nanchang) Co., Ltd. 108,646,612 184,385,384
Jiangxi Lingyun Automobile Industry Technology
Purchase of automobile parts
Co., Ltd 97,543,965 100,142,856
Nanchang JMCG Shishun Logistics Co., Ltd. Purchase of automobile parts 87,848,436 94,684,781
Ford Motor Co. Thailand Ltd. Purchase of automobile parts 68,314,885 1,056,616
Changan Ford Automobile Co., Ltd. Purchase of automobile parts 68,157,110 16,978,981
Hanon Systems Purchase of automobile parts 66,928,237 78,188,938
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Purchase of automobile parts 60,847,557 56,603,368
Nanchang Yinlun Heat-exchanger Co., Ltd. Purchase of automobile parts 58,593,286 59,390,004
Dibao transportation equipment (Nanchang) Co., Ltd Purchase of automobile parts 35,165,670 26,955,832
132
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Purchase of goods (Cont’d):
Six months ended 30 June
Nature of related party transactions 2024 2023
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,
Purchase of automobile parts
Ltd. 33,360,233 35,681,186
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of automobile parts 28,757,183 9,438,144
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Purchase of automobile parts 23,270,189 19,397,071
JMCG Purchase of automobile parts 22,525,005 2,515,904
Jiangxi Lingrui Recycling Resources Development
Purchase of raw materials
Corporation 16,477,867 15,092,027
Jiangling Automobile Group (Nanchang) Fushan
Purchase of raw materials
Energy Co., Ltd. 15,562,142 4,674,040
Nanchang Lianda Machinery Co., Ltd. Purchase of automobile parts 15,348,196 19,699,255
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Purchase of automobile parts 13,577,892 419,588
Jiangxi JMCG Boya brake system Co., Ltd. Purchase of automobile parts 11,236,000 9,926,780
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. Purchase of automobile parts 10,743,777 6,039,341
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Purchase of automobile parts 5,908,983 3,910,008
Jiangling Aowei Automobile Spare Part Co., Ltd. Purchase of automobile parts 5,562,150 5,647,036
Nanchang JMCG Xinchen Auto Component Co.,
Purchase of automobile parts
Ltd. 3,127,958 3,920,960
Auto Alliance (Thailand) Co., Ltd. Purchase of automobile parts 2,915,565 12,302,972
Jiangling Motor Holdings Co., Ltd. Purchase of automobile parts 1,126,880 2,613,788
Nanchang Gear Forging Co.,Ltd. Purchase of automobile parts 1,061,737 937,224
JMCG Jingma Motors Co., Ltd. Purchase of automobile parts 1,038,886 -
Jiangling Material Co., Ltd. Purchase of raw materials - 9,453,368
Jiangxi ISUZU Engine Co., Ltd. Purchase of automobile parts 40,104 5,843,600
Ford Otomotiv Sanayi A.S. Purchase of automobile parts 952,875 3,709,077
Other related parties Purchase of automobile parts 230,563 941,523
4,919,949,373 3,873,939,861
133
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Purchase of goods (Cont’d):
The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic
parts.
The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties;
The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation
between the two parties, and is adjusted regularly.
134
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Receipt of services:
Six months ended 30 June
Nature of related party transactions 2024 2023
Nanchang JMCG Shishun Logistics Co., Ltd. Transportation, removal fee, etc. 147,357,676 138,271,507
Trademark management fees, technology
Ford Global Technologies,LLC development 130,437,253 105,294,784
JMCG Jiangxi Engineering Construction Co., Ltd. Engineering construction 117,416,875 4,494,827
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Design fee, Personnel costs 73,479,037 102,360,446
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Cartage fee, storage fee, etc. 45,941,842 42,263,367
Ford Technical services and personnel costs 27,438,900 16,941,345
Ford Motor (China) Co., Ltd. Design fee, Personnel costs, etc. 27,098,764 25,690,619
Jiangxi JMCG Industry Co., Ltd. Meals 16,543,562 15,784,854
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Agency fee, advertising fee, etc. 9,290,495 7,490,617
JMCG Property Management Co. Property fees, labour costs, etc. 7,073,104 5,496,458
Chongqing Anfu Vehicle Marketing Co., Ltd. Warranty and promotion 1,604,135 941,548
Chongqing Changan Automobile Co., Ltd. Personnel costs 1,287,423 1,165,327
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. Promotion 1,180,264 107,509
JMCG Labour fee, rental fee, etc. 349,520 9,035,774
Technical services and technical
Ford Otomotiv Sanayi A.S. development 430,426 4,048,186
Changan Ford Automobile Co., Ltd. Service fee, labour costs, etc. 703,553 2,659,578
Magna PT Powertrain (Jiangxi) Co., Ltd. Design fee, experimental costs 190,790 1,728,126
China Changan Group Tianjin Sales Co., Ltd. Warranty and promotion 500,867 1,184,253
135
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Receipt of services (Cont’d):
Six months ended 30 June
Nature of related party transactions 2024 2023
Nanchang Jiangling HuaXiang Auto Components
Design fee, experimental costs
Co., Ltd. - 1,000,000
Other related parties 4,364,219 4,476,521
612,688,705 490,435,646
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
136
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Sales of goods and provision of services:
Six months ended 30 June
Nature of related party transactions 2024 2023
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Sales of vehicles and accessories, etc. 5,042,910,917 4,771,391,370
JMCG Jingma Motors Co., Ltd. Sales of vehicles and accessories 67,278,640 66,150,936
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 55,047,669 28,322,195
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Ltd. Sales of vehicles 49,551,991 96,069,902
China Changan Group Tianjin Sales Co., Ltd. Sales of vehicles and accessories 45,621,776 21,666,937
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 43,979,176 25,855,442
Jiangxi JMCG Specialty Vehicles Co., Ltd. Sales of vehicles and accessories 35,660,121 36,125,691
Jiangxi Lingrui Recycling Resources Development
Corporation Sales of waste materials, etc. 33,437,495 29,443,114
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Sales of accessories 33,330,915 448,728
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 25,337,145 27,313,444
Jiangxi Jiangling Chassis Co., Ltd. Sales of accessories 17,336,576 21,409,740
Jiangxi ISUZU Engine Co., Ltd. Sales of accessories 16,335,938 14,870,252
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 14,599,239 18,605,372
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Sales of accessories 14,319,726 9,072,055
Beijing Baiwang Changfu Vehicle Sales & Service
Co., Ltd. Sales of vehicles and accessories 11,027,317 11,354,377
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Sales of accessories 10,562,548 1,324,600
Jiangxi Jiangling Lear Interior System Co., Ltd. Sales of accessories 8,935,487 10,950,458
Nanchang Hengou Industry Co., Ltd. Sales of accessories and labor costs 8,697,566 4,772,985
Jiangxi ISUZU Co., Ltd. Sales of accessories 8,510,068 10,806,891
Nanchang JMCG Liancheng Auto Component Co.,
Ltd. Sales of accessories 8,093,548 3,427,362
137
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Sales of goods and provision of services (Cont’d):
Six months ended 30 June
Nature of related party transactions 2024 2023
Guizhou Wanjia Automobile Sales and Service
Co. LTD Sales of vehicles and accessories 7,248,862 10,915,251
Beijing Beifang Changfu Vehicle Sales &
Service Co., Ltd. Sales of vehicles and accessories 4,420,133 10,989,264
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. Sales of vehicles and accessories 2,800,546 6,367,741
Jiangxi JMCG Industry Co., Ltd. Sales of accessories and waste materials 1,704,763 1,388,357
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 140,934 13,177,316
Chongqing Anbo Vehicle Sales Co., Ltd. Sales of vehicles and accessories 1,657 6,332,539
JMCG Sales of accessories and labor costs 8,415 1,722,665
Other related parties 2,866,316 3,175,327
5,569,765,484 5,263,450,311
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
138
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(b) Leases
(i) The lease income recognised in the current period with the Group as the lessor:
Six months ended 30 June
Name of the lessee Type of the leased asset 2024 2023
Jiangling Motor Holdings Co., Ltd. Buildings 14,727 -
Jiangxi JMCG Motorhome Co., Ltd. Buildings - 2,945
14,727 2,945
(ii) Increase of right-of-use assets in the current period with the Group as the lessee
Six months ended 30 June
Name of the lessor Type of the leased asset 2024 2023
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings 37,552,314 -
(iii) Interest costs on lease liabilities in the current period with the Group as the lessee:
Six months ended 30 June
Type of the leased asset 2024 2023
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings 426,978 162,032
JMCG Buildings 301,701 114,569
728,679 276,601
139
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCF 1,633,424 5 March 2001 30 October 2029 Not fully performed
For the six months ended 30 June 2024, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of
USD2,282,123. As at 30 June 2024, JMCF provided borrowing guarantee to the bank borrowing of USD229,165, equivalent to RMB1,633,424 (31
December 2023: USD261,937, equivalent to RMB1,855,219) for the Group.
(d) Transfer of assets
Six months ended 30 June
Nature of related party
transactions 2024 2023
JMCG Jingma Motors Co., Ltd. Sales of fixed assets 44,381 -
Jiangxi JMCG Industry Co., Ltd. Sales of fixed assets 4,442 -
Jiangxi Lingrui Recycling Resources
Development Corporation Sales of fixed assets - 121,707
48,823 121,707
The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties.
140
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(e) Purchase of assets
Six months ended 30 June
Nature of related party transactions 2024 2023
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Purchase of fixed assets 11,714,950 21,138,257
JMCG Jingma Motors Co., Ltd. Purchase of fixed assets 3,928,253 -
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. Purchase of fixed assets 2,140,583 9,584,000
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of fixed assets 2,079,737 535,980
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of fixed assets 738,376 2,800,000
Nanchang JMCG Liancheng Auto Component
Co., Ltd. Purchase of fixed assets - 4,009,591
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of fixed assets - 456,637
20,601,899 38,524,465
The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.
141
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(f) Provision of technology sharing and distribution service
Six months ended 30 June
Nature of related party transactions 2024 2023
Ford Motor (China) Co., Ltd. Distribution and technical service 12,653,421 5,784,640
Ford Electric Mach Technology (Nanjing) Co.,
Ltd Technical service 55,406,177 -
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Technical service 19,141,233 19,180,000
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Technical service 13,958,000 4,099,170
Ford Vietnam Limited Technical service 7,250,000 5,100,000
Ford Trading Company, LLC Technical service 2,450,000 1,509,518
Ford Technical service - 3,283,725
Jiangxi ISUZU Co., Ltd. Technical service - 2,274,000
110,858,831 41,231,053
The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties.
142
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(g) Remuneration of key management
Six months ended 30 June
2024 2023
Remuneration of key management 9,376,278 7,593,376
(h) Interest income
Six months ended 30 June
2024 2023
JMCF 8,461,182 7,308,840
Cash at bank of the Group deposited with JMCF was calculated based on the bank
annual interest rate for RMB deposit of 1.35% to 2.25% over the same period (the six
months ended 30 June 2023: 1.35% to 2.25%).
(i) Interest expenses
Six months ended 30 June
2024 2023
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 120,000 120,000
Nanchang JMCG Shishun Logistics Co., Ltd. 30,000 30,000
150,000 150,000
143
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties
30 June 2024 31 December 2023
Provision for bad Provision for bad
Amount debts Amount debts
Accounts receivable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 3,164,810,120 (6,563,795) 2,681,807,388 (5,431,789)
JMCG Jingma Motors Co., Ltd. 35,808,509 (89,645) 32,388,453 (106,014)
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 18,520,425 (55,561) 304,992 (915)
Jiangxi JMCG Specialty Vehicles Co., Ltd. 11,985,421 (13,362) 39,985,715 (48,790)
Nanchang Jiangling HuaXiang Auto 6,973,091 (20,919) 1,275,203 (3,826)
Components Co., Ltd.
Ford Motor (China) Co., Ltd. 6,683,318 (20,050) 4,507,064 (13,521)
Jiangxi ISUZU Co., Ltd. 6,361,320 (19,084) 11,507,006 (34,521)
Jiangxi ISUZU Engine Co., Ltd. 5,656,047 (16,968) 9,873,973 (29,622)
Nanchang JMCG Liancheng Auto Component 3,601,881 (10,806) 2,938,482 (8,815)
Co., Ltd.
Jiangxi Jiangling Lear Interior System Co., Ltd. 3,100,951 (9,303) 3,792,069 (11,376)
Chongqing Anfu Vehicle Marketing Co., Ltd. 2,871,945 (3,112) 137,378 (412)
Guizhou Wanfu Vehicle Sales & Service Co., 1,295,493 (1,627) 312,271 (937)
Ltd.
Jiangxi JMCG Specialty Vehicles Sales - - 7,564,961 (9,076)
Corporation, Ltd.
Jiangxi Jiangling Group Special Vehicle Co., - - 5,471,828 (6,565)
Ltd.
Ford Vietnam Limited - - 5,320,000 (15,960)
Jiangxi Jiangling Special Purpose Vehicle Co., 10,657 (32) 2,827,718 (144,662)
Ltd.
Nanchang Hengou Industry Co., Ltd. 235,533 (1,015) 2,114,644 (6,344)
Other related parties 3,093,854 (36,762) 3,013,670 (10,711)
3,271,008,565 (6,862,041) 2,815,142,815 (5,883,856)
144
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
30 June 2024 31 December 2023
Provision for bad Provision for bad
Amount debts Amount debts
Other receivables
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 31,727,323 (111,046) 8,636,151 (67,362)
JMCG Jingma Motors Co., Ltd. 19,289 (68) 4,614,745 (35,995)
Other related parties 142,282 (498) 245,356 (1,914)
31,888,894 (111,612) 13,496,252 (105,271)
145
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2024 2023
Advances to Nanchang Baojiang Steel Processing
suppliers Distribution Co., Ltd. 102,559,416 144,390,937
Advances for Jiangxi Jiangling Motors Imp. & Exp.
engineering Co., Ltd. 1,400,293 -
Financing Jiangxi JMCG Specialty Vehicles 62,457,410 43,000,000
receivables Co., Ltd.
JMCG Jingma Motors Co., Ltd. 15,695,681 11,000,000
Jiangxi ISUZU Engine Co., Ltd. 3,796,669 1,264,651
Jiangxi JMCG Specialty Vehicles 1,412,700 -
Sales Corporation, Ltd.
Jiangxi ISUZU Co., Ltd. - 3,950,000
83,362,460 59,214,651
Cash at bank JMCF 1,283,826,257 1,092,871,804
Transactions with
JMCF JMCF 8,029,846,798 13,982,325,897
For the six months ended 30 June 2024, the amount of sales and other transactions settled
by JMCF was RMB8,029,846,798 (the six months ended 30 June 2023:
RMB6,450,656,589), of which the Group didn’t have sales amount settled through the buyer-
paid interest discounting business of electronic commercial notes (the six months ended 30
June 2023: Nil). As at 30 June 2024, the Group didn’t have trade acceptance notes
discounted but unmatured arising from the above business (31 December 2023: Nil). The
Group has transferred almost all the risks and rewards of ownership of electronic
commercial notes, which have been therefore derecognised.
146
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2024 2023
Accounts
payable Ford 609,543,518 86,590,606
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. 519,316,782 526,325,735
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 469,838,629 393,207,678
Jiangxi Jiangling Lear Interior System Co., Ltd. 387,303,612 365,099,029
Jiangxi Jiangling Chassis Co., Ltd. 280,118,513 251,320,872
Magna PT Powertrain (Jiangxi) Co., Ltd. 197,131,812 271,344,575
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. 194,276,764 194,714,700
Nanchang JMCG Liancheng Auto Component
Co., Ltd. 173,450,088 202,046,109
Nanchang JMCG Shishun Logistics Co., Ltd. 98,381,564 89,401,630
Hanon Systems 84,617,019 28,561,752
Jiangxi Lingyun Automobile Industry
Technology Co., Ltd 72,860,526 46,765,963
Changan Ford Automobile Co., Ltd. 58,855,075 5,740,862
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 51,757,077 62,653,105
Nanchang Unistar Electric & Electronics Co.,
Ltd. 42,568,572 64,278,792
Nanchang Yinlun Heat-exchanger Co., Ltd. 40,336,392 33,494,753
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. 37,973,665 34,028,487
Jiangxi JMCG Specialty Vehicles Co., Ltd. 31,845,359 22,470,866
Jiangxi Lingge Non-ferrous Metal Die-casting
Co., Ltd. 25,482,365 33,447,909
JMCG 21,249,491 1,812,893
Dibao transportation equipment (Nanchang)
Co., Ltd 21,125,839 28,378,407
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. 20,876,373 10,453,228
Jiangxi Lingrui Recycling Resources
Development Corporation 14,540,189 19,443,919
Ford Motor Co. Thailand Ltd. 13,848,074 2,269,745
Jiangxi Jiangling group Fuxin Auto Parts Co.,
Ltd. 11,935,808 1,485,717
Nanchang Lianda Machinery Co., Ltd. 8,053,983 13,769,421
Jiangxi JMCG Boya brake system Co., Ltd. 7,854,139 8,114,273
Jiangxi JMCG Shangrao Industrial Co.,Ltd. 7,690,548 3,108,061
Jiangling Motor Holdings Co., Ltd. 7,256,556 6,295,798
Jiangxi Mingfang Auto Parts Industry Co., Ltd. 6,322,560 3,734,394
Jiangling Aowei Automobile Spare Part Co.,
Ltd. 6,050,276 6,868,703
Nanchang JMCG Xinchen Auto Component
Co., Ltd. 2,553,480 3,571,782
JMCG Jingma Motors Co., Ltd. 1,926,000 887,114
Jiangling Automobile Group (Nanchang)
Fushan Energy Co., Ltd. 1,422,987 2,102,733
Other related parties 2,339,595 2,651,442
3,530,703,230 2,826,441,053
147
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
31 December
30 June 2024 2023
Other
payables Ford 71,311,805 91,949,142
Ford Global Technologies,LLC 57,425,174 66,643,015
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 49,812,222 44,553,591
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 32,861,632 33,884,078
Nanchang Jiangling HuaXiang Auto Components Co.,
Ltd. 26,418,240 23,662,480
JMCG Jiangxi Engineering Construction Co., Ltd. 24,946,943 64,113,619
Ford Motor (China) Co., Ltd. 12,496,140 16,138,211
Nanchang JMCG Shishun Logistics Co., Ltd. 12,001,215 10,400,985
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 9,870,130 10,086,404
JMCG Property Management Co. 7,005,448 6,473,088
JMCG Jingma Motors Co., Ltd. 5,229,684 351,539
Jiangxi JMCG Specialty Vehicles Co., Ltd. 4,851,666 5,072,940
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 4,493,407 4,420,456
Nanchang JMCG Liancheng Auto Component Co., Ltd. 4,011,339 8,149,662
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 3,925,744 2,724,194
Jiangxi JMCG Industry Co., Ltd. 2,743,422 3,100,412
JMCG 2,445,557 2,445,557
Chongqing Changan Automobile Co., Ltd. 1,287,423 2,394,350
Hanon Systems 1,283,100 1,283,100
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 1,144,925 2,565,523
Jiangxi Jiangling Lear Interior System Co., Ltd. 1,009,469 55,243
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 214,002 1,696,615
Ford Otomotiv Sanayi A.S. 517,159 1,425,533
Changan Ford Automobile Co., Ltd. 206,904 1,010,529
Other related parties 6,086,524 6,754,911
343,599,274 411,355,177
Contract
liabilities Ford Electric Mach Technology (Nanjing) Co., Ltd 55,113,623 -
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 4,742,349 -
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 4,616,981 23,208,214
Ford Vietnam Limited 2,920,000 -
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 2,538,000 -
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 2,341,635 -
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. 1,202,447 1,350,217
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 1,007,193 6,142,607
Chongqing Anbo Vehicle Sales Co., Ltd. 19,545 1,098,689
Other related parties 2,802,328 2,683,591
77,304,101 34,483,318
Lease
liabilities Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 36,843,890 1,390,961
JMCG 11,418,895 17,016,922
48,262,785 18,407,883
148
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont’d)
(7) Commitments in relation to related parties
Capital commitments
30 June 2024 31 December 2023
JMCG Jiangxi Engineering
Construction Co., Ltd. 4,971,108 19,956,147
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. - 15,677,612
Jiangxi Jiangling Special Purpose
Vehicle Co., Ltd. - 11,091,570
Nanchang JMCG Liancheng Auto
Component Co., Ltd. - 4,678,200
Magna PT Powertrain (Jiangxi) Co.,
Ltd. - 791,000
4,971,108 52,194,529
Guarantee of commitments in relation to related parties is set out in Note 7(5)(c).
8 Contingencies
As at 30 June 2024, the Group had no contingencies that needed to be disclosed in the
notes to the financial statements.
9 Commitments
Capital expenditure commitments
Capital expenditures contracted for by the Group but are not yet necessary to be
recognised on the balance sheet as at the balance sheet date are as follows:
30 June 2024 31 December 2023
Buildings, machinery and equipment 679,031,000 636,424,000
149
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk
The Group’s activities expose it to a variety of financial risks, which mainly comprise market
risk (primarily including foreign exchange risk and interest rate risk), credit risk and liquidity
risk. The above financial risks and the Group’s risk management policies to mitigate the
risks are as follows:
The Board of Directors is responsible for planning and establishing the Group’s risk
management framework, formulating the Group’s risk management policies and related
guidelines, and supervising the implementation of risk management measures. The Group
has established risk management policies to identify and analyse the risks faced by the
Group. These risk management policies specify the risks such as market risk, credit risk
and liquidity risk management. The Group regularly evaluates the market environment and
changes in the Group’s operating activities to determine whether to update the risk
management policies and systems or not. The Group’s risk management is carried out by
the Risk Management Committee under policies approved by the Board of Directors. The
Risk Management Committee works closely with other business departments of the Group
to identify, evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports
the audit results to the Audit Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in the mainland China and a
majority of the transactions are denominated in RMB. The Group is exposed to foreign
exchange risk arising from the recognised assets and liabilities, and future transactions
denominated in foreign currencies, primarily with respect to USD. The Group continuously
monitors the amount of assets and liabilities, and transactions denominated in foreign
currencies to minimise the foreign exchange risk. As at 30 June 2024, the Group’s
borrowings denominated in foreign currencies were USD229,195, equivalent to
RMB1,633,424. The Group signed forward exchange contracts to mitigate the foreign
exchange risk(Note 4(3), Note 4(30)).
150
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group, were expressed in RMB as at 30 June 2024 and 31 December 2023
as follows:
30 June 2024
USD EUR Total
Financial assets
denominated in
foreign currency -
Derivative financial
assets 4,510,945 - 4,510,945
Financial liabilities
denominated in
foreign currency -
Current portion of long-
term borrowings 466,692 - 466,692
Long-term borrowings 1,166,732 - 1,166,732
Other payables 104,778,103 255,043 105,033,146
106,411,527 255,043 106,666,570
31 December 2023
USD EUR Total
Financial liabilities
denominated in
foreign currency -
Derivative financial
liabilities 459,306 - 459,306
Current portion of long-
term borrowings 463,805 - 463,805
Long-term borrowings 1,391,414 - 1,391,414
Other payables 143,725,731 261,617 143,987,348
146,040,256 261,617 146,301,873
151
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 30 June 2024, for the financial assets and liabilities dominated in foreign currencies,
if the RMB had strengthened/weakened by 10% against the USD while all other variables
had been held constant, the Group’s net profit would have been approximately
RMB8,618,385 (31 December 2023: approximately RMB12,370,525) higher/lower.
(b) Interest rate risk
The Group’s interest rate risk mainly arises from interest-bearing debts such as short-
term borrowings and long-term borrowings. The financial liabilities of floating interest rate
expose the Group to cash flow interest rate risk, and the financial liabilities of fixed
interest rate expose the Group to fair value interest rate risk. The Group determines the
relative proportions of fixed-rate and floating-rate contracts based on the prevailing
market environment. As at 30 June 2024, the Group’s short-term borrowings of
RMB500,000,000 (31 December 2023: RMB1,300,000,000) were fixed-rate borrowings,
and long-term borrowings of USD229,195 (31 December 2023: USD261,937) were fixed-
rate contracts, long-term borrowings of RMB10,849,945 (31 December 2023:
RMB12,849,944) were fixed-rate contracts, therefore there was no significant cash flow
interest rate risk.
The Group continuously monitors the interest rate position of the Group. Increases in
interest rates will increase the cost of new borrowing and the interest costs with respect to
the Group’s outstanding floating rate borrowings, and therefore could have a material
adverse effect on the Group’s financial performance. Management makes adjustments
timely with reference to the latest market conditions and may enter into interest rate swap
agreements to mitigate its exposure to interest rate risk. During the first half of 2024 and
2023, the Group did not enter into any interest rate swap agreements.
As at 30 June 2024 and 31 December 2023, there was no significant difference between
the fair value and the carrying amount of the Group’s bank borrowings with fixed rates.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable,
accounts receivable, financing receivables, other receivables, long-term receivables and
derivative financial assets at fair value through profit or loss that are not included in the
impairment assessment scope. The carrying amount of the Group’s financial assets
reflects its maximum credit exposure at the balance sheet date.
The Group expects that there is no significant credit risk associated with cash at bank and
on hand since they are deposited at state-owned banks and other large or medium size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.
152
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(2) Credit risk (Cont’d)
The Group has policies to limit the credit exposure on notes receivable, accounts receivable,
financing receivables, other receivables and long-term receivables. The Group assesses the
credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors
such as current market conditions. The credit history of the customers is regularly monitored
by the Group. In respect of customers with a poor credit history, the Group will use written
payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of
the Group is limited to a controllable extent.
As at 30 June 2024, the Group had no significant collateral or other credit enhancements
held as a result of the debtor’s mortgage (31 December 2023: Nil).
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group. The Group monitors rolling forecasts of the Group’s short-term and long-term
liquidity requirements to ensure it has sufficient cash, while maintaining sufficient headroom
on its undrawn committed borrowing facilities from major financial institutions so that the
Group does not breach borrowing limits or covenants on any of its borrowing facilities to
meet the short-term and long-term liquidity requirements.
As at the balance sheet date, the financial liabilities of the Group were analysed by their
maturity date below at their undiscounted contractual cash flows:
30 June 2024
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
500,000,000
borrowings 500,000,000 - - -
Accounts
10,503,654,457
payable 10,503,654,457 - - -
Other
6,461,271,467
payables 6,461,271,467 - - -
Lease
190,900,172
liabilities 97,707,702 81,386,193 11,806,277 -
Long-term
12,536,473
borrowings 11,343,490 482,443 710,540 -
17,573,977,116 81,868,636 12,516,817 - 17,668,362,569
31 December 2023
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,304,453,333 - - - 1,304,453,333
Derivative
financial
liabilities 459,306 - - - 459,306
Accounts
payable 9,476,215,223 - - - 9,476,215,223
Other
payables 5,944,976,093 - - - 5,944,976,093
Lease
liabilities 87,312,608 76,170,689 66,393,248 - 229,876,545
Long-term
borrowings 13,361,423 482,936 945,003 - 14,789,362
16,826,777,986 76,653,625 67,338,251 - 16,970,769,862
153
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (Cont’d)
(3) Liquidity risk (Cont’d)
(i) As at 30 June 2024, the Group did not have lease contracts that had been signed but had
not yet been performed.
11 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the
fair value hierarchy of the lowest level input that is significant to the entire fair value
measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Assets and liabilities measured at fair value on a recurring basis
As at 30 June 2024, the assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Financial assets held for
trading –
Structured deposits - 200,583,452 - 200,583,452
Derivative financial assets -
Forward foreign exchange
contracts - 4,510,945 - 4,510,945
Financing receivables -
Notes receivable - - 274,777,232 274,777,232
- 205,094,397 274,777,232 479,871,629
As at 30 June 2024, the group didn’t have liabilities measured at fair value on a recurring
basis.
154
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2023, the assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Financial assets held for
trading –
Structured deposits - 200,604,877 - 200,604,877
Financing receivables -
Notes receivable - - 123,170,062 123,170,062
- 200,604,877 123,170,062 323,774,939
As at 30 June 2024, the liabilities measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial liabilities
Derivative financial
assets -
Forward foreign
exchange contracts - 459,306 - 459,306
The Group takes the date on which events causing the transfers between the levels take
place as the timing specific for recognising the transfers. There was no transfer between
Level 1 and Level 2 for the six months ended 30 June 2024.
The fair value of financial instruments traded in an active market is determined at the
quoted market price; and the fair value of those not traded in an active market is
determined by the Group using valuation technique. The valuation models used mainly
comprise discounted cash flow model and market comparable corporate model. The inputs
of valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate,
credit spreads, liquidity premium, EBITDA multiplier and liquidity lack discount.
155
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets were analysed below:
Changes in unrealised
gains or losses included in
profit or loss For the six
months ended 30 June
2024 with respect to assets
Gains still held as at 30 June 2024
31 December 30 June recognised in - gains/(losses) on changes
2023 Increase Decrease 2024 profit or loss (a) in fair value
Financing receivables -
Notes receivable 123,170,062 1,163,432,307 (1,011,825,137) 274,777,232 - -
Changes in unrealised
gains or losses included in
profit or loss in 2022 with
respect to assets still held
Gains as at 31 December 2023 -
31 December 31 December recognised in gains/(losses) on changes
2022 Increase Decrease 2023 profit or loss (a) in fair value
Financing receivables -
Notes receivable 376,662,817 3,737,982,954 (3,991,475,709) 123,170,062 - -
(a) Gains recognised in profit or loss are recognised in investment income in the income statement.
156
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Fair value estimates (Cont’d)
(2) Assets measured at fair value on a non-recurring basis
As at 30 June 2024 and 31 December 2023, the Group had no assets measured at fair
value on a non-recurring basis.
(3) Assets and liabilities not measured at fair value but for which the fair value is disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly comprise
notes receivable, accounts receivable, other receivables, long-term receivables, short-term
borrowings, payables, lease liabilities and long-term borrowings.
The carrying amount of the Group’s financial assets and liabilities not measured at fair
value is a reasonable approximation of their fair value.
The fair value of long-term borrowings and lease liabilities is the present value of the
contractually determined stream of future cash flows discounted at the rate of interest
applied at that time by the market to instruments of comparable credit status and providing
substantially the same cash flows on the same terms, and categorised within Level 3 of the
fair value hierarchy.
12 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue
as a going concern in order to provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, refund capital to shareholders, issue new shares or sell
assets to reduce debts.
The Group's total capital is calculated as “shareholders’ equity” as shown in the
consolidated balance sheet. The Group is not subject to external mandatory capital
requirements, and monitors capital on the basis of equity ratio.
As at 30 June 2024 and 31 December 2023, the Group’s equity ratio was as follows:
30 June 2024 31 December 2023
Total borrowings 512,483,369 1,314,705,163
Total shareholders’ equity 10,006,099,428 9,984,872,620
Equity ratio 5% 13%
157
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements
(1) Accounts receivable
30 June 2024 31 December 2023
Accounts receivable 5,945,358,107 4,674,277,592
Less: Provision for bad debts (80,257,595) (79,901,432)
5,865,100,512 4,594,376,160
(a) The aging of accounts receivable was analysed as follows:
30 June 2024 31 December 2023
Within 1 year 5,758,544,769 4,490,861,735
Over 1 year 186,813,338 183,415,857
5,945,358,107 4,674,277,592
As of December 31, 2023, accounts receivable with significant individual amounts and
aging exceeding three years was analysed as follows:
Balance Reason and collection risk
The Company evaluates the receivables from its
subsidiary, SZFJ, on an individual basis. Based
on the judgment of credit risk, these receivables
were not subject to significant credit risk and were
SZFJ 74,049,026 not overdue and impaired.
Due to the operating difficulties of the defaulting
company and several lawsuits involved, the
Company considered that the receivables were
difficult to collect and had therefore made full
Company1 72,230,000 provision for bad debts.
(b) As at 30 June 2024, the top five accounts receivable ranked by the balances of the
debtors were analysed as follows:
Amount of
provision for bad
Balance debts % of total balance
The total amount of
accounts receivable
in the top five 5,595,081,173 (78,674,815) 94%
158
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts
For accounts receivable, the Company measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.
The provision for bad debts of accounts receivable was analysed by category as follows:
30 June 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 2,318,187,762 39% (72,230,000) 3.12%
Provision for bad debts on the
grouping basis (ii) 3,627,170,345 61% (8,027,595) 0.22%
5,945,358,107 100% (80,257,595) 1.35%
31 December 2023
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 1,722,220,010 37% (72,230,000) 4.19%
Provision for bad debts on the
grouping basis (ii) 2,952,057,582 63% (7,671,432) 0.26%
4,674,277,592 100% (79,901,432) 1.71%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2024
Book balance Provision for bad debts
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 2,245,957,762 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
2,318,187,762 (72,230,000)
31 December 2023
Book balance Provision for bad debts
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 1,649,990,010 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
1,722,220,010 (72,230,000)
i) As at 30 June 2024, the Company’s accounts receivable from subsidiary Jiangling Ford
(Shanghai), SZFJ and GZFJ were RMB1,892,627,333, RMB346,370,129 and
RMB6,960,300 (31 December 2023, the Company’s accounts receivable from subsidiary
Jiangling Ford (Shanghai), SZFJ and JMCS were: RMB1,393,390,720, RMB148,630,266
and RMB107,969,024). The Company assessed the receivables from subsidiaries
individually and based on the judgment of credit risk, the receivables from subsidiaries
were not subject to significant credit risk and were not overdue and impaired.
159
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows (Cont’d):
ii) As at 30 June 2024 and 31 December 2023, the Company assessed the ECL on the
related accounts receivable, and did not consider that they could be collected, therefore,
full provision was made. The related amount was RMB72,230,000.
(ii) Accounts receivable for which provision for bad debts was made on the grouping basis
were analysed as follows:
Grouping – Domestic sales of general automobiles:
30 June 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 233,683,025 0.12% (273,339)
Overdue for 1 to 30 days 6,901,852 0.11% (7,416)
Overdue for 31 to 60 days 164,256 2.10% (3,451)
Overdue for 61 to 90 days - — -
Overdue over 90 days 1,624,600 5.04% (81,802)
242,373,733 (366,008)
Grouping – Export sales of general automobiles:
30 June 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 3,112,760,619 0.20% (6,225,521)
Grouping - Domestic sales of general automobiles:
31 December 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 107,010,139 0.14% (154,326)
Overdue for 1 to 30 days 14,613,810 0.29% (42,323)
Overdue for 31 to 60 days - — -
Overdue for 61 to 90 days 2,949,660 0.60% (17,698)
Overdue over 90 days 6,048,500 5.64% (341,368)
130,622,109 (555,715)
160
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Export sales of general automobiles:
31 December 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,647,787,903 0.20% (5,295,576)
Grouping - Sales of new energy automobiles:
30 June 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 563,760 80.00% (451,008)
Grouping - Sales of new energy automobiles (Cont’d):
31 December 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 1,563,760 80.00% (1,251,008)
Grouping – Automobile parts:
30 June 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 229,568,523 0.30% (688,706)
Overdue for 1 to 30 days 32,453,302 0.30% (97,360)
Overdue for 31 to 60 days 5,575,863 0.50% (27,879)
Overdue for 61 to 90 days 513,964 0.60% (3,084)
Overdue over 90 days 3,360,581 5.00% (168,029)
271,472,233 (985,058)
161
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
31 December 2023
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 168,672,852 0.30% (506,019)
Overdue for 1 to 30 days 1,575,377 0.30% (4,726)
Overdue for 31 to 60 days 190,620 0.50% (953)
Overdue for 61 to 90 days 563,937 0.60% (3,384)
Overdue over 90 days 1,081,024 5.00% (54,051)
172,083,810 (569,133)
(iii) The provision for bad debts in the current period amounted to RMB356,163, of which none was
collected or reversed.
(d) There was no provision for bad debts actually written off during the period.
(e) As at 30 June 2024 and 31 December 2023, there were no accounts receivable pledged.
162
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables
30 June 2024 31 December 2023
Import working capital 30,000,000 7,000,000
Receivables from disposal of land and
above-ground buildings 13,111,456 -
Advance payment of gas expenses 13,850,672 12,769,141
Receivables from JMCH 9,679,410 9,679,410
Receivables from refund of social
insurance 7,242,084 23,958,000
Others 16,359,468 18,770,714
90,243,090 72,177,265
Less: Provision for bad debts (215,433) (363,359)
90,027,657 71,813,906
The Company did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.
(a) The aging of other receivables was analysed as follows:
30 June 2024 31 December 2023
Within 1 year 78,214,248 54,408,692
Over 1 year 12,028,842 17,768,573
90,243,090 72,177,265
163
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements
The provision for bad debts of other receivables were analysed by category as follows:
30 June 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 30,032,950 33% - -
Provision for bad debts on
the grouping basis (ii) 60,210,140 67% (215,433) 0.36%
90,243,090 100% (215,433) 0.24%
31 December 2023
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 33,637,410 47% - -
Provision for bad debts on
the grouping basis (ii) 38,539,855 53% (363,359) 0.94%
72,177,265 100% (363,359) 0.50%
164
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
Stage 1
12-month ECL (grouping) 12-month ECL (individual) Total
Book Provision for Book Provision for Provision for
balance bad debts balance bad debts bad debts
31 December 2023 38,539,855 (363,359) 33,637,410 - (363,359)
Decrease in the
current period - — (3,604,460) — —
Increase in the
current period 21,670,285 — - — —
Bad debt provision
reversed in the
current period - 147,926 - - 147,926
30 June 2024 60,210,140 (215,433) 30,032,950 - (215,433)
As at 30 June 2024 and 31 December 2023, the Company did not have any other receivables
at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 30 June 2024 and 31 December 2023, the Company’s other receivables with provision
for bad debts on the individual basis were analysed below:
30 June 2024
12-month ECL Provision for
Stage 1 Book balance rates bad debts Reason
Receivables from disposal
of land and above-ground
buildings 13,111,456 - i)
Receivables from JMCH 9,679,410 - - ii)
Receivables from refund of
social insurance 7,242,084 - - i)
30,032,950 -
31 December 2023
12-month ECL Provision for
Stage 1 Book balance rates bad debts Reason
Receivables from refund of
social insurance 23,958,000 - - i)
Receivables from JMCH 9,679,410 - - ii)
33,637,410 -
i)The Company assessed the receivables from refund of social insurance individually and
receivables from disposal of land and above-ground buildings and based on the judgment of
credit risk, the receivables were not subject to significant credit risk and were not overdue and
impaired.
ii) The Company assessed the receivables from subsidiaries individually and based on the
judgment of credit risk, the receivables from subsidiaries were not subject to significant credit
risk and were not overdue and impaired.
165
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
(ii) As at 30 June 2024 and 31 December 2023, the Company’s other receivables with provision
for bad debts on the grouping basis were analysed below:
Other receivables with provision on the grouping basis at Stage 1:
As at 30 June 2024, the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Book 12-month Provision for
balance ECL rates bad debts Reason
Provision on the grouping basis:
Import working capital 30,000,000 0.35% (105,380) ECL
Advance payment of gas 13,850,672 (48,653)
expenses 0.35% ECL
Others 16,359,468 0.38% (61,400) ECL
60,210,140 (215,433)
As at 31 December 2023, the Company’s other receivables with provision for bad debts on
the grouping basis were analysed below:
Book 12-month ECL Provision for
balance rates bad debts Reason
Provision on the grouping basis:
Advance payment of gas
expenses 12,769,141 0.78% (99,406) ECL
Import working capital 7,000,000 0.78% (54,494) ECL
Receivables from disposal of
assets 4,604,745 0.78% (35,847) ECL
Others 14,165,969 1.23% (173,612) ECL
38,539,855 (363,359)
As at 30 June 2024 and 31 December 2023, the Company had no other receivables at stage
2 or stage 3.
(c) The provision for bad debts reversed in the current period amounted to RMB147,926.
(d) There was no provision for bad debts actually written off during the period.
166
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(e) As at 30 June 2024, the top five other receivables ranked by remaining balances were
analysed as follows:
Provision
% of total for bad
Nature Balance Aging balance debts
Import working
Company 1 capital, etc. 31,727,323 within 1 year 35% (111,046)
Advances
classified as
Company 2 expenses 13,850,672 within 1 year 15% (48,653)
Receivables from
disposal of land
and above-
Company 3 ground buildings 13,111,456 within 1 year 15% -
Receivable from
Company 4 subsidiary 9,679,410 over 1 year 11% -
Receivables
from refund of
Company 5 social insurance 7,242,084 within 1 year 8% -
75,610,945 84% (159,699)
(3) Long-term equity investments
30 June 2024 31 December 2023
Subsidiaries (a) 2,858,943,493 2,858,943,493
Associates (b) 222,285,683 228,949,338
3,081,229,176 3,087,892,831
Less: Provision for impairment of long-term
equity investments for subsidiaries (c) (2,301,440,553) (2,301,440,553)
Provision for impairment of long-term
equity investments for associates - -
(2,301,440,553) (2,301,440,553)
779,788,623 786,452,278
167
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movements for
the current period
Cash
Ending balance dividends
31 December Additional of provision for declared this
2023 investments 30 June 2024 impairment year 30 June 2024
Carrying
Gross amount Gross amount amount
JMCH 2,686,943,493 - 2,686,943,493 (2,301,440,553) - 385,502,940
JMCS 50,000,000 - 50,000,000 - - 50,000,000
SZFJ 10,000,000 - 10,000,000 - - 10,000,000
GZFJ 10,000,000 - 10,000,000 - - 10,000,000
Jiangling Ford
(Shanghai) 102,000,000 - 102,000,000 - - 102,000,000
2,858,943,493 - 2,858,943,493 (2,301,440,553) - 557,502,940
(b) Associates
Movements for the current period Impairment provision
Share of net
Increase in profit/(loss) Cash Voting 31
31 December the current under equity dividends Provision for Shareholding rights 30 June December
2023 period method declared impairment 30 June 2024 (%) (%) 2024 2023
The Power
Company 197,478,595 - (3,965,926) - - 193,512,669 40% 40% - -
Hanon
Systems 31,470,743 - 1,438,671 (4,136,400) - 28,773,014 19.15% 33.33% - -
Total 228,949,338 - (2,527,255) (4,136,400) - 222,285,683 - -
168
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
Six months ended 30 June
2024 2023
Revenue from main operations 16,828,092,423 14,581,518,843
Revenue from other operations 1,057,857,635 867,519,091
17,885,950,058 15,449,037,934
Six months ended 30 June
2024 2023
Cost of sales from main operations 14,766,862,877 12,668,859,996
Cost of sales from other operations 409,504,678 201,223,509
15,176,367,555 12,870,083,505
(a) Revenue and cost of sales from main operations
Six months ended 30 June
2024 2023
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 16,001,794,796 14,131,205,491 12,803,883,870 11,226,199,599
Sales of
automobile
parts 787,392,775 596,752,534 1,777,634,973 1,442,660,397
Automobile
services 38,904,852 38,904,852 - -
16,828,092,423 14,766,862,877 14,581,518,843 12,668,859,996
(b) Revenue and cost of sales from other operations
Six months ended 30 June
2024 2023
Cost of sales Cost of sales
Revenue from from other Revenue from from other
other operations operations other operations operations
Sales of
materials 326,770,645 312,926,556 176,010,823 159,438,315
Others 731,086,990 96,578,122 691,508,268 41,785,194
1,057,857,635 409,504,678 867,519,091 201,223,509
169
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales (Cont’d)
The breakdown of the Company’s revenue by product and service transfer time was as
(c) follows:
Six months ended 30 June 2024
Automobile Automobile Materials
Automobiles parts services. and others Total
Revenue from main
operations 16,001,794,796 787,392,775 38,904,852 - 16,828,092,423
Including: Recognised at a
time point 16,001,794,796 787,392,775 - - 16,789,187,571
Recognised
within a certain
period - - 38,904,852 - 38,904,852.00
Revenue from other
operations (i) - - - 1,057,857,635 1,057,857,635
16,001,794,796 787,392,775 38,904,852 1,057,857,635 17,885,950,058
Six months ended 30 June 2023
Automobile Automobile Materials
Automobiles parts services and others Total
Revenue from main
operations 12,803,883,870 1,777,634,973 - - 14,581,518,843
Including: Recognised at a
time point 12,803,883,870 1,777,634,973 - - 14,581,518,843
Recognised
within a certain
period - - - - -
Revenue from other
operations (i) - - - 867,519,091 867,519,091
12,803,883,870 1,777,634,973 - 867,519,091 15,449,037,934
(i) The Company’s revenue from other operations includes sales of materials and technical
service provided. Revenue from sales of materials is recognised at a certain time point, and
revenue from technical service provided is recognised within a certain period.
As at 30 June 2024, the amount of revenue corresponding to the performance obligations
that the Company had contracted but had not commenced or completed was
RMB477,791,775, which the Company expected that would be recognised as revenue in
2024.
(5) Investment income
Six months ended 30 June
2024 2023
Investment gain from forward exchange
settlement 5,982,935 2,524,895
Losses on discount of financing receivables
eligible for derecognition - (11,613,214)
Losses on long-term equity investments under
equity method (2,527,255) (3,893,639)
3,455,680 (12,981,958)
There is no significant restriction on the remittance of investment income to the Company.
170
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss for six months ended 30 June 2024
Six months ended 30 June
2024
Government grants recognised in profit or loss for the current
period, except those that are closely related to ordinary
activities and conform to the national policies and
regulations, and are granted in accordance with certain
standards and have a continuous impact on the Company’s
profit or loss 76,378,976
Gains or losses on disposal of non-current assets 10,591,898
Fund occupation fees received from non-financial institutions 3,230,604
Gains or losses arising from changes in fair value of financial
assets and liabilities held, and gains or losses on disposal
of related financial assets and liabilities, except for the
effective hedging business related to the normal operation 13,584,473
Net amount of other non-operating income and expenses (4,020,858)
One-off expenses incurred due to discontinuation of related
business activities (523,093)
99,242,000
Effect of income tax (15,639,039)
Effect of gains or losses on minority interests (net of tax) 704,668
84,307,629
(1) Basis for preparation of statement of non-recurring profit or loss for six months ended 30 June
2024
For the six months ended 30 June 2024, the CSRC issued the Explanatory Announcement No.
1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring
Profit or Loss (Revised For the six months ended 30 June 2024) (hereinafter “2023 Explanatory
Announcement No. 1”), which came into effect from the date of promulgation. The Group have
prepared the statement of non-recurring profit or loss for 2023 in accordance with the
requirements in the 2023 Explanatory Announcement No. 1.
Under the requirements in the 2023 Explanatory Announcement No. 1, non-recurring profit or
loss refers to those arises from transactions and events that are not directly relevant to ordinary
activities, or that are relevant to ordinary activities, but are extraordinary and not expected to
happen frequently that would have an influence on the financial statements users’ making
economic decisions based on the financial performance and profitability of an enterprise.
171
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Statement of non-recurring profit or loss for six months ended 30 June 2023
Six months ended 30 June
2023
Government grants recognised in profit or loss for the
current period 358,643,954
Gains or losses on disposal of non-current assets (755,894)
Fund occupation fee received from non-financial
institutions 6,890,293
Gains or losses arising from changes in fair value of
financial assets and liabilities held at fair value
through profit or loss, and investment losses on
disposal of related financial assets and liabilities 6,774,959
Net amount of other non-operating income and
expenses 6,919,342
Reversal of provision for impairment of receivables
tested individually -
Other items of profit or loss conforming to the definition
of non-recurring profit or loss (9,062,423)
369,410,231
Effect of income tax (57,720,416)
Effect of gains or losses on minority interests (net of tax) (31,469)
311,658,346
(1) Basis for preparation of statement of non-recurring profit or loss for six months ended 30
June 2023
The Group prepared the statement of non-recurring profit or loss for the first half of 2023 in
accordance with the provisions of the 2008 Explanatory Announcement No. 1.
172
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2024
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Return on net assets and earnings per share
Weighted average Earnings per share
return on net assets Basic earnings per Diluted earnings
(%) share per share
Six months ended 30 June
2024 2023 2024 2023 2024 2023
Net profit attributable to
ordinary shareholders
of the Company 8.29% 7.59% 1.04 0.84 1.04 0.84
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss 7.51% 4.35% 0.94 0.48 0.94 0.48
173
