Share’s name: Jiangling Motors Share’s code: 000550 No.: 2011-011
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2011 First 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 First 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.
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§2 Brief Introduction
2.1 Main accounting data and financial indicators
Unit: RMB’000
At the end of At the end of the Change (%)
reporting period previous year
Total assets 11,498,529 11,237,715 2.32
Shareholder’s equity
Attributable to the Equity 6,672,603 6,127,276 8.90
Holders of the Company
Share Capital 863,214 863,214 0
Net Assets Per Share
Attributable to the Equity 7.73 7.10 8.90
Holders of the Company (RMB)
Same period
Reporting period Change (%)
last year
Revenue 4,727,348 3,565,674 32.58
Profit Attributable to the Equity 545,327 493,896 10.41
Holders of the Company (RMB)
Net cash generated from 123,474 679,799 -81.84
operating activities
Net cash per share generated 0.14 0.79 -81.84
from operating activities (RMB)
Basic earnings per share (RMB) 0.63 0.57 10.41
Diluted earnings per share 0.63 0.57 10.41
(RMB)
Down 1.18
Weighted Average Return on 8.52 9.70 percentage
Net Asset Ratio (%) points
2
2.2 Total number of shareholders and top ten shareholders holding unlimited
tradable shares at the end of reporting period
Total shareholders at the JMC had 18,166 shareholders, including 12,108 A-share
end of reporting period holders and 6,058 B-share holders, as of March 31, 2011.
Top ten shareholders holding unlimited tradable shares
Name Shares as of Type of share
March 31, 2011
Jiangling Motor Holding Co., Ltd. (“JMH”) 354,176,000 A share
Ford Motor Company 258,964,200 B share
Bosera Thematic Sector Equity Securities
13,900,000 A share
Investment Fund
Shanghai Automotive Co., Ltd. 13,019,610 A share
National Social Security Fund- Portfolio 102 10,030,098 A share
Dragon Billion China Master Fund 9,202,496 B share
Invesco Great Wall Selected Blue Chip
5,100,000 A share
Securities Investment Fund
Harvest Stable & Open Securities
5,000,196 A share
Investment Fund
National Social Security Fund- Portfolio 103 4,450,000 A share
Rongtong New Blue Chip Securities
4,339,755 A share
Investment Fund
§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 quarter of 2011, JMC sold 55,443 vehicles, including 20,740
JMC-brand trucks, 18, 979 JMC-brand pickups and SUVs, and 15,724
Ford-brand commercial vehicles. Total sales volume was up 34.2% from the
same period last year. Revenue and net profit in the reporting period were
RMB 4,727 million and RMB 545 million, up 32.58% and 10.41% respectively
from the same period last year.
In the first quarter of 2011, JMC achieved 23% gross profit margin, down 3
percentage points from the same period last year. This profit margin decrease
is primarily explained by tactical vehicle price reductions and mix changes.
Trade and other receivables at the end of the reporting period were increased
by RMB 535 million, or 65%, from the end of 2010, primarily reflecting sales
increase.
Borrowings in current liabilities at the end of the reporting period were
decreased by RMB 25 million, down 98% from the end of 2010, primarily
reflecting repayment of bank loan.
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Finance income at the end of the reporting period was increased by RMB 16
million, or 87%, primarily reflecting increase of interest income on band
deposits and interest income on credit sales.
2011 year-to-date net cash generated from operating activities was RMB 556
million lower than 2010, down 82% from the same period of 2010, primarily
reflecting incremental notes receivable, accounts receivable and tax payment
due to the increase of sales volume.
2011 year-to-date net cash used in investing activities was RMB 87 million
higher than 2010, up 135% from the same period of 2010, primarily reflecting
capacity expansion spending for capital goods such as equipment and tooling.
2011 year-to-date net cash used in financing activities was RMB 25 million
higher than the same period of 2010, primarily reflecting repayment of bank
loan.
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
3.3 Implementation of commitments made by the Company, shareholders or
actual controlling parties
Promisor Content of
Item Implementation of commitments
Commitments
In the reporting period, JMH exercised its
Share reform JMH * commitments sincerely and did not
breach the promise.
Acquisition report or
Statement of changes in None None N/A
equity
Major asset restructuring None None N/A
Initial Public Offering None None N/A
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Other 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 laws and regulations;
(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 oppose 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
3.5 Explanations on other major events
3.5.1 Securities investments
□Applicable □√Not Applicable
3.5.2 External research and media interview to the Company in the reporting
period
Date Place Communication Object Information discussed
Method and sources offered
January In the Oral Two analysts from JMC Operating highlights
17, 2011 Company Communication Hengtai Securities Co.,
Ltd., Value Star Asset
Management Co., Ltd.
January In the Oral Three analysts from JMC Operating highlights
19, 2011 Company Communication Minsheng Royal Fund
Management Co., Ltd.,
Orient Fund
Management Co., Ltd.,
Great Wall Securities
Co., Ltd.
January In the Oral Two analysts from JMC Operating highlights
26, 2011 Company Communication Everbright Securities
Company Limited,
Shanxi Securities Co.,
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Ltd.
February In the Oral Ten analysts from JMC Operating highlights
17, 2011 Company Communication China Securities Co.,
Ltd., Changsheng
Fund Management
Co., Ltd., Everbright
Pramerica Fund
Management Co., Ltd.,
Bank of
Communication
Schroders Fund
Management Co., Ltd.,
Galaxy Asset
Management Co., Ltd.,
Taikang Asset
Management Co., Ltd.,
Franklin Templeton
Sealand Fund
Management Co., Ltd.,
GF Fund Management
Co., Ltd.
February In the Oral An analysts from China JMC Operating highlights
18, 2011 Company Communication Re Asset Management
Company Ltd.
February In the Oral An analysts from Great JMC Operating highlights
23, 2011 Company Communication Wall Fund
Management Co., Ltd.
March 4, In the Oral An analysts from China JMC Operating highlights
2011 Company Communication Securities Co., Ltd.
March 7, In the Oral Two analysts from JMC Operating highlights
2011 Company Communication Shenyin & Wanguo
Securities Co., Ltd,
Yinhua Fund
Management Co., Ltd.
March 10, In the Oral Six analysts from JMC Operating highlights
2011 Company Communication Beijing Hongdao
Investment Company,
GF Securities Co.,
Ltd., Huatai Asset
Management Co., Ltd.,
Guotai Junan
Securities Co., Ltd.,
Ping An Insurance
(Group) Company of
China, Ltd.
March 16, In the Oral Five analysts from JMC Operating highlights
2011 Company Communication BOC International
(China) Limited,
Bosera Fund
Management Co., Ltd.
March 17. In the Oral An analysts from JMC Operating highlights
2011 Company Communication Nanjing Securities Co,
Ltd.
March 29, In the Oral Two analysts from JMC Operating highlights
2011 Company Communication Taikang Asset
Management Co., Ltd.
March 31, In the Oral An analysts from China JMC Operating highlights
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2011 Company Communication Merchants Securities
Co., Ltd.
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.
April 26, 2011
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Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
March 31, 2011
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
31 March 2011* 31 December 2010
RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 2,689,983 2,630,524
Lease prepayment 276,239 277,870
Intangible assets 28,187 31,302
Investments in associates 19,216 17,928
Deferred income tax assets 178,098 205,063
3,191,723 3,162,687
Current assets
Inventories 1,185,158 1,436,492
Trade and other receivables 1,360,553 825,374
Cash and cash equivalents 5,761,095 5,813,162
8,306,806 8,075,028
Total assets 11,498,529 11,237,715
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 4,535,130 3,989,803
6,672,603 6,127,276
Non-controlling interests 130,394 115,319
Total equity 6,802,997 6,242,595
LIABILITIES
Non-current liabilities
Borrowings 6,870 6,939
Retirement benefit obligations 50,722 54,569
Warranty provisions 195,960 171,789
253,552 233,297
Current liabilities
Trade and other payables 4,353,671 4,628,421
Current income tax liabilities 75,792 96,310
Borrowings 429 25,004
Retirement benefits obligations 12,088 12,088
4,441,980 4,761,823
Total liabilities 4,695,532 4,995,120
Total equity and liabilities 11,498,529 11,237,715
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
2011 First quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2011 first quarter* 2010 first quarter*
RMB’000 RMB’000
Revenue 4,727,348 3,565,674
Sales tax (133,447) (60,984)
Cost of sales (3,627,938) (2,630,050)
Gross profit 965,963 874,640
Distribution costs (180,109) (183,800)
Administrative expenses (160,563) (129,347)
Other income 1,810 1,135
Operating profit 627,101 562,628
Finance income 35,141 19,043
Finance costs (371) (444)
Finance income -net 34,770 18,599
Share of profit of associates 1,288 1,460
Profit before income tax 663,159 582,687
Income tax expense (102,757) (84,403)
Profit for the period 560,402 498,284
Profit attributable to:
Equity holders of the Company 545,327 493,896
Non-controlling interests 15,075 4,388
560,402 498,284
Other comprehensive income - -
Total comprehensive income for the period 560,402 498,284
Total comprehensive income attributable to:
Equity holders of the Company 545,327 493,896
Non-controlling interests 15,075 4,388
560,402 498,284
Earnings per share for profit attributable to
the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted 0.63 0.57
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
2011 First Quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2011 first quarter* 2010 first quarter*
RMB’000 RMB’000
Cash flows from operating activities
Cash generated from operations 220,151 708,940
Interest paid (368) (425)
Income tax paid (96,309) (28,716)
Net cash generated from operating activities 123,474 679,799
Cash flows from investing activities
Purchase of held-to-maturity investments (214,968) -
Purchase of property, plant and equipment(“PPE”) (172,844) (81,663)
Proceeds from disposal of PPE 37 1,566
Interest received 21,863 15,957
Proceed from repayment of held-to-maturity investments 215,216 -
Net cash used in investing activities (150,696) (64,140)
Cash flows from financing activities
Proceeds from borrowings - 25,019
Repayments of borrowings (24,455) (25,000)
Dividends paid to the Company’s shareholders (276) -
Other cash paid relating to financing activities (114) (104)
Net cash used in financing activities (24,845) (85)
Net increase/(decrease) in cash and cash equivalents (52,067) 615,574
Cash and cash equivalents at beginning of year 5,813,162 3,913,823
Effects of exchange rate changes - 6
Cash and cash equivalents at end of period 5,761,095 4,529,403
*: Unaudited financial indexes
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