Share’s name:
Jiangling Motors
Share’s code:
000550
No.:
2010-031
Jiangling B
200550
Jiangling Motors Corporation, Ltd.
2010 Third Quarter Report
§1 Important Note
1.1 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 false statements, misrepresentations or major omissions.
1.2 The Directors, Supervisors, and Senior Management undertake and have no objection to the truthfulness, accuracy and completeness of the contents of the Third Quarter Report.
1.3 All the Directors were present at the Board meeting.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Wang Xigao, President Yuan-Ching Chen, CFO Michael Joseph Brielmaier and Chief of Finance Department, Ding Ni, confirm that the financial statements in this Quarterly Report are truthful and complete.
1.6 All financial data in this Quarterly Report are prepared under International Financial Reporting Standards (‘IFRS’) unless otherwise specified.
1§2 Brief Introduction
2.1 Main accounting data and financial indicators
Unit: RMB’000
At the end of reporting period
At the end of the previous year
Change (%)
Total Assets
9,877,167
8,294,346
19.08
Shareholder’s equity Attributable to the Equity Holders of the Company
5,870,611
4,843,947
21.19
Share Capital
863,214
863,214
0
Net Assets Per Share Attributable to the Equity Holders of the Company (RMB)
6.80
5.61
21.19
Reporting period
(2010 third quarter)
Change (%)
Beginning of year to end of reporting period
Change (%)
Revenue
3,965,946
42.84
11,641,763
55.24
Profit Attributable to the Equity Holders of the Company
410,127
22.25
1,449,639
89.41
Net Cash Generated From Operating Activities
-
-
1,953,084
-17.09
Net Cash Flow Per Share from Operating Activities (RMB)
-
-
2.26
-17.09
Basic Earnings Per Share (RMB)
0.48
22.25
1.68
89.41
Diluted Earnings Per Share (RMB)
0.48
22.25
1.68
89.41
Weighted Average Return on Net Asset Ratio (%)
7.62
Down 0.34
percentage points
26.48
Up 8.99percentage points
22.2 Total number of shareholders and top ten shareholders holding unlimited tradable shares as at the end of reporting period
Total shareholders at the end of reporting period
JMC had 17,499 shareholders, including 11,603 A-share holders and 5,896 B-share holders, as of September 30, 2010.
Top ten shareholders holding unlimited tradable shares
Name
Shares as of September 30, 2010
Share Type
Jiangling Motor Holding Co., Ltd. （”JMH”）
354,176,000
A share
Ford Motor Company
258,964,200
B share
Bosera Thematic Sector Equity Securities Investment Fund
14,982,828
A share
Shanghai Automotive Co., Ltd.
13,019,610
A share
Dragon Billion China Master Fund
9,684,488
B share
Bosera Emerging Growth Securities Investment Fund
8,499,999
A share
ChinaAMC Growth Securities Investment Fund
8,490,607
A share
National Social Security Fund- Portfolio 102
8,173,367
A share
China Life Insurance (Group) Company
5,276,172
A share
Invesco Great Wall Domestic Demand II Securities Investment Fund
4,672,107
A share
§3 Major Events
3.1 Causes and explanations of major changes of financial indicators compared with those of previous reporting period
□√Applicable □Not Applicable
In the first nine months of 2010, the Company achieved a sales volume of 132,960 units, including 50,685 JMC-brand trucks, 43,860 JMC-brand pickups and SUVs, and 38,415 Ford-brand commercial vehicles. Total sales volume was up 61% from the same period last year. Under IFRS, revenue and net profit for the first nine months of 2010 was RMB 11,642 million and RMB 1,450 million, up 55% and 89% respectively from the same period last year.
In the third quarter of 2010, net profit was RMB 410 million, up 22% from the same period last year. Gross profit margin was 25.5%, down approximately 2.5 percentage points from the same period last year, primarily reflecting pricing actions for selected products.
Trade and other receivables increased by RMB 261 million, up 72% from the end of 2009, primarily reflecting increased sales volume and increased credit lines to support dealer sales.
Current income tax liabilities increased by RMB 45 million, up 158% from the end of 2009, primarily reflecting the increase of revenue and profit.
Distribution costs in the third quarter increased by RMB 64 million, up 30%
3compared with the same period last year, primarily reflecting increased sales volume.
.
Administrative expenses in the third quarter increased by RMB 62 million, up 46% compared with the same period last year, primarily reflecting higher engineering spending on new products.
2010 year-to-date income tax expenses increased by RMB 94 million, up 60% compared with the same period last year, primarily reflecting higher profits.
Cash and cash equivalents at the end of the reporting period increased by RMB 1,289 million, up 33% from the end of 2009, primarily reflecting increased profits.
2010 year-to-date net operating cash flow was RMB 403 million lower than 2009, primarily reflecting increased receivables and higher tax payments.
2010 year-to-date net cash used in investing activities was RMB 149 million lower than 2009, down 40% compared with the same period last year, mainly reflecting timing differences of facility and tooling investments. .
2010 year-to-date net cash used in financing activities was RMB 171 million higher than 2009, up 63% compared with the same period last year, primarily reflecting an increased cash dividend payment.
3.2 Analysis of major events, their impacts and resolutions
3.2.1 Abnormal audit report
□Applicable □√Not Applicable
3.2.2 Funds provided for the controlling shareholder and its related parties, or outside guarantee in breach of the laws and regulations
□Applicable □√Not Applicable
3.2.3 Signature and implementation of major contract regarding routine operation activities
□Applicable □√Not Applicable
3.2.4 Others
□Applicable □√Not Applicable
43.3 Implementation of commitments made by the Company, shareholders or actual controlling parties
Item
Promisor
Commitments’ Content
Implementation of commitments
Share reform
JMH
*
In the reporting period, JMH exercised its commitments sincerely and did not breach the promise.
Acquisition report or Statement of changes in equity
None
None
N/A
Major asset restructuring
None
None
N/A
Initial Public Offering
None
None
N/A
Other commitments (including additional commitments)
None
None
N/A
*JMH, which holds 41.03% of JMC total shares, issued letters of commitment, and declared and promised the following:
(1)
according to the requirements of Rules on Implementing the Full Tradable Share Reform of the Listed Companies, legal commitments will be fulfilled in accordance with provisions of the stock exchange rules, regulations and laws;
(2)
the promisor ensures that it will compensate losses resulting from partial or complete non-fulfillment of its promises to other shareholders; and
(3)
the promisor will fulfill its commitments faithfully and accept relevant legal responsibility, and it will not transfer its shares unless the transferee agrees and accepts liability to undertake the responsibility of the promise.
JMH promises specifically to pay the consideration on behalf of the unlisted-share holders who opposed the Share Reform or did not express their opinions. The above-mentioned unlisted-share holders should repay the consideration paid by JMH and the interest, or obtain written consent from JMH, if they want to list their shares.
3.4 Warning and explanations as to the situation that accumulated net profit during the period from year beginning to the end of next reporting period may be negative or, compared with the same period last year, may have a substantial change
□√Applicable □Not Applicable
The Company is projecting a net profit about RMB 1.7 billion for 2010, up about 60% from last year, primarily reflecting substantial volume increase associated with industry growth and share performance.
3.5 Explanations on other major events
3.5.1 Securities investments
□Applicable □√Not Applicable
53.5.2 External research and media interviews with the Company in the reporting period
Date
Place
Communication Method
Object
Information discussed and sources offered
July 13, 2010
In the Company
Oral Communication
Nine analysts from CITIC Securities Company Limited, China Merchants Fund Management Co., Ltd., China International Capital Corporation Limited, Sunshine Insurance Group Corporation Limited, Maida Investment Consulting Co., Ltd., China Life Insurance (Group) Company, Baoying Fund Management Co., Ltd., Penghua Fund Management Co., Ltd., HSBC JinTrust Fund Management Co., Ltd.
JMC Operating highlights
July 16, 2010
In the Company
Oral Communication
Two analysts from Shanghai Yongzhi Investment Management Co., Ltd.
JMC Operating highlights
July 22, 2010
In the Company
Oral Communication
Three analysts from GF Securities Co., Ltd., China Asset Management Co., Ltd.
JMC Operating highlights
August 13, 2010
In the Company
Oral Communication
An analyst from China Southern Fund Management Co., Ltd.
JMC Operating highlights
September 21, 2010
In the Company
Oral Communication
Three analysts from Guodu Securities Company, Guangdong New Value Investment Company
JMC Operating highlights
3.6 Securities derivates investment
□Applicable □√Not Applicable
3.6.1 Balance of securities derivates at the end of reporting period
□Applicable □√Not Applicable
Board of Directors
Jiangling Motors Corporation, Ltd.
October 26, 2010
6Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
30 September 2010*
31 December 2009
ASSETS
Non-current assets
Property, plant and equipment
2,573,755
2,491,159
Lease prepayment
279,501
284,393
Intangible assets
29,421
31,856
Investments in associates
15,896
17,292
Deferred income tax assets
143,918
134,133
3,042,491
2,958,833
Current assets
Inventories
1,008,724
1,059,798
Trade and other receivables
622,862
361,892
Cash and cash equivalents
5,203,090
3,913,823
6,834,676
5,335,513
Total assets
9,877,167
8,294,346
EQUITY
Capital and reserves attributable to the Company’s equity holders
Share capital
863,214
863,214
Share premium
816,609
816,609
Other reserves
457,650
457,650
Retained earnings
3,733,138
2,706,474
5,870,611
4,843,947
Minority interest in equity
102,948
102,906
Total equity
5,973,559
4,946,853
LIABILITIES
Non-current liabilities
Borrowings
7,240
7,601
Retirement benefit obligations
59,905
70,475
Warranty provisions
153,643
122,361
220,788
200,437
Current liabilities
Trade and other payables
3,570,114
3,079,345
Current income tax liabilities
73,977
28,716
Borrowings
25,181
25,447
Retirement benefits obligations
13,548
13,548
3,682,820
3,147,056
Total liabilities
3,903,608
3,347,493
Total equity and liabilities
9,877,167
8,294,346
*: Unaudited financial indexes
7Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2010.7.1-
2010.9.30*
2009.7.1-
2009.9.30*
2010.1.1-
2010.9.30*
2009.1.1-
2009.9.30*
Revenue
3,965,946
2,776,585
11,641,763
7,499,031
Sales tax
(70,022)
(50,892)
(201,421)
(127,137)
Cost of sales
(2,954,385)
(1,998,445)
(8,629,733)
(5,548,357)
Gross profit
941,539
727,248
2,810,609
1,823,537
Distribution costs
(280,321)
(215,850)
(661,557)
(535,004)
Administrative expenses
(196,941)
(134,821)
(488,309)
(390,199)
Other income/(expenses)
(2,438)
3,050
(6,317)
5,343
Operating profit
461,839
379,627
1,654,426
903,677
Finance income
22,126
18,771
64,489
40,555
Finance costs
(1,051)
(1,706)
(1,896)
(3,186)
Finance income -net
21,075
17,065
62,593
37,369
Share of profit of associates
1,480
1,899
5,077
3,816
Profit before income tax
484,394
398,591
1,722,096
944,862
Income tax expense
(68,314)
(58,304)
(251,196)
(156,709)
Profit for the period
416,080
340,287
1,470,900
788,153
Profit attributable to:
Equity holders of the Company
410,127
335,480
1,449,639
765,332
Minority interest
5,953
4,807
21,261
22,821
416,080
340,287
1,470,900
788,153
Other comprehensive income
-
-
-
-
Total comprehensive income for the period
416,080
340,287
1,470,900
788,153
Total comprehensive income attributable to:
Equity holders of the Company
410,127
335,480
1,449,639
765,332
Minority interest
5,953
4,807
21,261
22,821
416,080
340,287
1,470,900
788,153
Earnings per share for profit attributable to the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted
0.48
0.39
1.68
0.89
*: Unaudited financial indexes
89
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2010.7.1-2010.9.30*
2010.1.1-2010.9.30*
Cash flows from operating activities
Cash generated from operations
557,584
2,159,239
Interest paid
(219)
(930)
Income Tax paid
(103,771)
(205,225)
Net cash generated from operating activities
453,594
1,953,084
Cash flows from investing activities
Purchase of property, plant and equipment(“PPE”)
(146,837)
(276,417)
Proceeds from disposal of PPE
50
1,616
Interest received
17,001
48,368
Dividends received
6,473
6,473
Net cash used in investing activities
(123,313)
(219,960)
Cash flows from financing activities
Proceeds from borrowings
10,000
35,019
Repayments of borrowings
(10,000)
(35,224)
Dividends paid to the Company’s shareholders
(421,513)
(421,578)
Dividends paid to minority shareholders of a subsidiary
(21,219)
(21,219)
Other cash paid relating to financing activities
(655)
(860)
Net cash used in financing activities
(443,387)
(443,862)
Net increase/(decrease) in cash and cash equivalents
(113,106)
1,289,262
Cash and cash equivalents at beginning of period
-
3,913,823
Cash and cash equivalents at 30 June 2010
5,316,195
-
Effects of exchange rate changes
1
5
Cash and cash equivalents at end of period
5,203,090
5,203,090
*: Unaudited financial indexes
