Share’s name: Jiangling Motors Share’s code: 000550 No.: 2011-028
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
Extracts From 2011 Half-year 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.
These extracts are extracted from the original of half-year report, and the original is
published at web site http://www.cninfo.com.cn. Investors should carefully read the original
for details.
1.2 None of the directors states that he can not ensure the truthfulness, accuracy and
completeness of the information disclosed in the report, or he had the dissentience to this
report.
1.3 Nine Directors shall attend this Board meeting and eight Directors were present.
Director Howard D. Welsh did not attend this meeting, and he authorized Director
Yuan-Ching Chen to represent him at this meeting.
1.4 The Half-year Financial Statements have not been 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
Half-year Report are truthful and complete.
1.6 The Half-year Report is prepared in Chinese and English. In the event of any
discrepancy, the Chinese version will prevail.
All financial data in this report are prepared under International Financial Reporting
Standards unless otherwise specified.
§2 Brief Introduction
2.1 Brief introduction
Shares name Jiangling Motors Jiangling B
Shares code 000550 200550
Place of listing Shenzhen Stock Exchange
Board Secretary Securities Affair Representative
Name Wan Hong Quan Shi
Telephone 86-791-5235675 86-791-5266178
Fax 86-791-5232839
E-mail relations@jmc.com.cn
Contact address No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province, P.R.C
1
2.2 Operating Highlight
2.2.1 Main accounting data and financial ratios Unit: RMB000
At the end of At the end of the Change (%)
reporting period* previous year
Total assets 11,616,231 11,237,715 3.37
Shareholders equity Attributable
to the Equity Holders of the 6,520,355 6,127,276 6.42
Company
Share Capital 863,214 863,214 0
Net Assets Per Share Attributable
to the Equity Holders of the 7.55 7.10 6.42
Company (RMB)
Reporting period
Same period Change (%)
last year*
(2011 first half)*
Revenue 9,221,540 7,675,817 20.14
Operating Profit 1,203,418 1,192,587 0.91
Profit Before Income Tax 1,286,509 1,237,702 3.94
Profit Attributable to the Equity 1,075,018 1,039,512 3.42
Holders of the Company
Basic Earnings Per Share (RMB) 1.25 1.20 3.42
Diluted Earnings Per Share (RMB) 1.25 1.20 3.42
Down 3.30
Weighted Average Return on Net 16.13 19.43
Asset Ratio (%)
percentage points
Net Cash Generated From 149,377 1,499,490 -90.04
Operating Activities
Net Cash Flow Per Share from 0.17 1.74 -90.04
Operating Activities (RMB)
Notes:
*Unaudited financial indexes
2.2.2 Non-recurring items
□Applicable □√Not Applicable
2
2.2.3 Difference between profit for the period per China Generally Accepted Accounting
Principles (“China GAAP”) and per International Financial Reporting Standards (IFRS)
□√Applicable □Not Applicable
Unit: RMB000
Shareholders equity Profit Attributable to
Attributable to the Equity the Equity Holders of
Holders of the Company the Company
June 30, 2011 2011 First Half
As Prepared under the China GAAP** 6,524,048 1,078,711
Adjustment per IFRS:
Staff bonus and welfare fund appropriated -3,693 -3,693
from net profit of a subsidiary
As Restated in Conformity with IFRS 6,520,355 1,075,018
** Based on the financial statements prepared by Jiangling Motors Corporation, Ltd.
(JMC”) under the China GAAP.
§3 Share Capital Changes and Shareholders
3.1 Table on shares changes
□√Applicable □Not Applicable
Before the change Change (+, -) After the change
Proportion Reserve- Proportion
New Bonus
Shares of total converted Others Subtotal Shares of total
shares Shares
shares (%) shares shares (%)
I. Limited tradable - - -
2,905,620 0.34% 1,170 1,170 2,906,790 0.34%
A shares
1.State-owned - - - - -
- - - -
shares
2. State-owned legal - - -
- - - - - -
person shares
3. Other domestic - - -
2,901,000 0.33% - - 2,901,000 0.33%
shares
Including:
Domestic legal 2,781,000 - - -
0.32% - - 2,781,000 0.32%
person shares
Domestic natural - - -
120,000 0.01% - - 120,000 0.01%
person shares
4. Management 4,620 0.01% - - -
1,170 1,170 5,790 0.01%
Shares
II. Unlimited
860,308,380 99.66% -1,170 -1,170 860,307,210 99.66%
tradable shares
1. A shares 516,308,380 59.81% - - - -1,170 -1,170 516,307,210 59.81%
2. B shares 344,000,000 39.85% - - - - - 344,000,000 39.85%
III. Total 863,214,000 100% - - - - - 863,214,000 100%
3.2 Total shareholders, top ten shareholders, and top ten shareholders holding unlimited
tradable shares
Total shareholders JMC had 21,833 shareholders, including 15,854 A-share
holders and 5,979 B-share holders, as of June 30, 2011.
Top ten shareholders
3
Shareholding Shares
Shares with
Shareholder Percentage Due to
Shareholder Name Shares Trading
Type （%） Restriction
Mortgage
or Frozen
Jiangling Motor Holding State-owned
41.03 354,176,000 - -
Co., Ltd. (“JMH”) legal person
Ford Motor Company Foreign
30 258,964,200 - -
(Ford) legal person
Shanghai Automotive Co., State-owned
1.51 13,019,610 - -
Ltd. legal person
Bosera Thematic Sector Domestic non
Equity Securities -state-owned 1.51 12,999,900 - -
Investment Fund legal person
Domestic non
National Social Security
-state-owned 1.16 10,030,098 - -
Fund- Portfolio 102
legal person
Dragon Billion China Foreign
1.07 9,202,496 - -
Master Fund legal person
Domestic non
Huaan Tactical Select
-state-owned 0.85 7,374,087 - -
Securities Investment Fund
legal person
Jpmblsa Re Ftif Templeton Foreign
0.54 4,632,763 - -
China Fund Gti 5497 legal person
Domestic non
Harvest Stable Open
-state-owned 0.52 4,463,714 - -
Securities Investment Fund
legal person
Domestic non
National Social Security
-state-owned 0.51 4,436,560 - -
Fund- Portfolio 103
legal person
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Restriction Share Type
Jiangling Motor Holding Co., Ltd. 354,176,000 A share
Ford Motor Company 258,964,200 B share
Shanghai Automotive Co., Ltd. 13,019,610 A share
Bosera Thematic Sector Equity Securities
12,999,900 A share
Investment Fund
National Social Security Fund- Portfolio 102 10,030,098 A share
Dragon Billion China Master Fund 9,202,496 B share
Huaan Tactical Select Securities Investment Fund 7,374,087 A share
Jpmblsa Re Ftif Templeton China Fund Gti 5497 4,632,763 B share
Harvest Stable Open Securities Investment Fund 4,463,714 A share
National Social Security Fund- Portfolio 103 4,436,560 A share
Notes on association among above-mentioned Bosera Thematic Sector Equity Securities Investment
shareholders Fund and National Social Security Fund- Portfolio
102 are in custody of Bosera Fund Management Co.,
Ltd.
3.3 Change of controlling shareholder or actual controller
□Applicable □√Not Applicable
4
§4 Directors, Supervisors and Senior Management
4.1 Change of share holding of directors, supervisors and senior management
□Applicable □√Not Applicable
§5 Management Discussions and Analysis
5.1 Core business by industry or product
□√Applicable □Not Applicable Unit: RMB000
Turnover Costs in core Gross margin
change from business change change from the
Cost in core Gross Margin
Product Turnover the same from the same same period last
business (%)
period last period last year year (points)
year (%) (%)
I. Vehicles 8,459,434 6,463,287 23.6% 19.2 22.8 -2.3
II. Components 661,816 477,255 27.9% 34.3 32.4 1.1
Total 9,121,250 6,940,542 23.9% 20.2 23.4 -2.0
Involving:
related party 618,693 505,285 18.3% 53.5 66.3 -6.3
transactions
Pricing principle
of related party Market Price
transactions
5.2 Details pertaining to core business classified according to region
□√Applicable □Not Applicable Unit: RMB000
Turnover change from the same
Region
Turnover period last year (%)
North-east China 448,574 15.4
North China 917,396 24.3
East China 4,505,544 18.4
South China 1,419,644 15.1
Central China 745,437 25.7
North-west China 462,507 39.3
South-west China 622,148 24.1
5.3 Causes and explanations of major changes on core business and its structure
□Applicable □√Not Applicable
5.4 Causes and explanations of major changes on profitability (margin) of core business
compared with that of last year
□√Applicable □Not Applicable
In the first half of 2011, gross margin was 23.9%, down 2 percentage points from the same
5
period last year, primarily reflecting tactical price reductions and raw material cost
increases.
5.5 Causes and explanations of major changes on profit structure compared with that of last
year
□√Applicable □Not Applicable
Sales tax in the first half of 2011 increased by RMB 131 million, or 100%, from the same
period last year, primarily reflecting higher consumption tax generated from volume growth
and the levy of construction and education taxes.
5.6 Raised fund use
5.6.1 Raised fund use
□Applicable □√Not Applicable
5.6.2 Changed projects
□Applicable □√Not Applicable
5.7 The Boards adjustment on the business plan for the second half
□Applicable □√Not Applicable
5.8 Warning and explanations 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
same period last year, may have a substantial change
□Applicable □√Not Applicable
5.9 Explanations of the Board of the Company to abnormal audit report for the reporting
period from accounting firms
□Applicable □√Not Applicable
5.10 Explanations of the Board of the Company to the changes and settlement of the items
involved by abnormal audit report for last year from accounting firms
□Applicable □√Not Applicable
§6 Major Events
6.1 Acquirement, sales and restructure of operation
6.1.1 Acquirement of operation
□Applicable □√Not Applicable
6
6.1.2 Sales of operation
□Applicable □√Not Applicable
6.1.3 After the Operation Restructure Report or Announcement on Acquirement or Sales of
Operation was published, the progress of the items and its impact on operating results and
financial conditions in the reporting period are as follows
□Applicable □√Not Applicable
6.2 Guarantees
□Applicable □√Not Applicable
6.3 Non-operating creditors rights, liabilities between JMC and related parties
□Applicable □√Not Applicable
6.4 Major litigation or arbitration items
□Applicable □√Not Applicable
6.5 Analysis and Explanations on other major events & its impact and settlement
□√Applicable □Not Applicable
6.5.1 Securities Investments
□Applicable □√Not Applicable
6.5.2 Equity in other listed companies
□Applicable □√Not Applicable
6.5.3 Non-operating account receivable by major shareholder and its subsidiaries
□Applicable □√Not Applicable
Independent Director Shi Jiansan, Vincent Pun Fong Kwan and Wang Xu expressed their
opinions on the Companys account receivables by related parties as follows:
We are aware of the cash flow occurring between the Company and its controlling
shareholders and other related parties, and believe that: cash flow occurring between the
Company and its controlling shareholders and other related parties resulted from normal
business transactions. There was no illegal embezzlement of company funds.
7
6.5.4 Commitments of the Company, shareholder and actual controller
□√Applicable □Not Applicable
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
None N/A
of changes in equity
Major asset restructuring None N/A
Initial Public Offering None N/A
Other commitments 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.
6.5.5 The proposals on 2011 half-year profit distribution and transferring capital surplus
reserve to share capital
□Applicable □√Not Applicable
6.5.6 Other comprehensive income
□Applicable □√Not Applicable
6.6 External research and media interviews with the Company in the reporting period
Date Place Communication Object Information discussed and
Method sources offered
January 17, In the Oral Two analysts from JMC Operating highlights
2011 Company Communication Hengtai Securities Co.,
Ltd., Value Star Asset
Management Co., Ltd.
January 19, In the Oral Three analysts from JMC Operating highlights
2011 Company Communication Minsheng Royal Fund
Management Co., Ltd.,
8
Orient Fund Management
Co., Ltd., Great Wall
Securities Co., Ltd.
January 26, In the Oral Two analysts from JMC Operating highlights
2011 Company Communication Everbright Securities
Company Limited, Shanxi
Securities Co., Ltd.
February In the Oral Ten analysts from China JMC Operating highlights
17, 2011 Company Communication 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 Beijing JMC Operating highlights
2011 Company Communication 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 BOC JMC Operating highlights
2011 Company Communication International (China)
Limited, Bosera Fund
Management Co., Ltd.
March 17. In the Oral An analyst from Nanjing JMC Operating highlights
2011 Company Communication 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 analyst from China JMC Operating highlights
2011 Company Merchants Securities Co.,
9
Communication Ltd.
April 12, In the Oral Four analysts from JMC Operating highlights
2011 Company Communication Manulife Teda Fund
Management Co., Ltd.,
Manulife Asset
Management (Hong
Kong) Limited
April 19, In the Oral Two analysts from JMC Operating highlights
2011 Company Communication Everbright Securities
Company Limited, Shanxi
Securities Co., Ltd.
April 21, In the Oral An analyst from JMC Operating highlights
2011 Company Communication Huachuang Securities Co.,
Ltd.
April 26, In the Oral Three analysts from BNP JMC Operating highlights
2011 Company Communication Paribus Securities (Asia)
Limited, Goldman Sachs
(Asia) Company Limited,
Capital Research
Company
May 4, In the Oral Three analysts from GF JMC Operating highlights
2011 Company Communication Securities Co., Ltd.,
Harvest Fund
Management Co., Ltd.
May 10, In the Oral Seven analysts from JMC Operating highlights
2011 Company Communication Xiaoniu Asset
Management Co., Ltd.,
Chongyang Investment
Management Co., Ltd.,
Invesco Great Wall Fund
Management Co., Ltd.,
HFT Investment
Management Co., Ltd.,
China Post & Capital
Fund Management Co.,
Ltd., Sunshine Insurance
Group Corporation
Limited, China Securities
Co., Ltd.
May 13, In the Oral Eight analysts from China JMC Operating highlights
2011 Company Communication International Capital
Corporation Limited, E
Fund Management Co.,
Ltd., New China Fund
Management Co., Ltd.,
Citic-Prudential Fund
Management Co., Ltd.,
Hualong Securities Co.,
Ltd., CCB Principal Asset
Management Co., Ltd.,
Fuanda Fund
Management Co., Ltd.
May 24, In the Oral An analyst from PICC JMC Operating highlights
2011 Company Communication Asset Management
Company Limited
June 9, In the Oral An analyst from Galaxy JMC Operating highlights
2011 Company Communication Securities Co., Ltd.
June 15 In the Oral Five analysts from Bosera JMC Operating highlights
10
Company Communication Fund Management Co.,
Ltd., Manulife Teda Fund
Management Co., Ltd.
June 23, In the Oral Five analysts from China JMC Operating highlights
2011 Company Communication Life Insurance (Group)
Company, GoldenFaith
Asset Management Co.,
Ltd., Greenwoods Asset
Management Co., Ltd.,
Essence Securities Co.,
Ltd., Ping An Insurance
(Group) Company of
China
§7 Financial Statements
7.1 The Financial Statements have not been audited.
11
7.2
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
(All amounts in RMB unless otherwise stated)
As at
30 June 2011# 31 December 2010
RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 2,817,293 2,630,524
Lease prepayment 274,608 277,870
Intangible assets 25,073 31,302
Investments in associate 21,157 17,928
Deferred income tax assets 156,609 205,063
3,294,740 3,162,687
Current assets
Inventories 1,235,399 1,436,492
Trade and other receivables 1,487,791 825,374
Trading financial assets 180 -
Cash and cash equivalents 5,598,121 5,813,162
8,321,491 8,075,028
Total assets 11,616,231 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 4,382,882 3,989,803
6,520,355 6,127,276
Non-controlling interests
138,701 115,319
Total equity 6,659,056 6,242,595
LIABILITIES
Non-current liabilities
Borrowings 6,569 6,939
Retirement benefit obligations 47,170 54,569
Warranty provisions 135,872 171,789
189,611 233,297
Current liabilities
Trade and other payables 4,692,048 4,628,421
Current income tax liabilities 63,004 96,310
Borrowings 424 25,004
Retirement benefit obligations 12,088 12,088
4,767,564 4,761,823
Total liabilities 4,957,175 4,995,120
Total equity and liabilities 11,616,231 11,237,715
12
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
(All amounts in RMB unless otherwise stated)
Six months ended 30 June
2011# 2010#
RMB’000 RMB’000
Revenue 9,221,540 7,675,817
Sales tax (262,719) (131,399)
Cost of sales (6,992,497) (5,675,348)
Gross profit 1,966,324 1,869,070
Distribution costs (402,393) (381,236)
Administrative expenses (361,193) (291,368)
Other (expense)/income 679 (3,879)
Operating profit 1,203,417 1,192,587
Finance income 80,433 42,363
Finance costs (570) (845)
Finance income-net 79,863 41,518
Share of profit of associates 3,229 3,597
Profit before income tax 1,286,509 1,237,702
Income tax expense (188,109) (182,882)
Profit for the period 1,098,400 1,054,820
Profit attributable to:
Equity holders of the Company 1,075,018 1,039,512
Non-controlling interests 23,382 15,308
1,098,400 1,054,820
Other comprehensive income - -
Total comprehensive income for the period 1,098,400 1,054,820
Total comprehensive income attributable to:
Equity holders of the Company 1,075,018 1,039,512
Non-controlling interests 23,382 15,308
1,098,400 1,054,820
Earnings per share for profit attributable to
the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted 1.25 1.20
#Unaudited financial indexes
13
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
(All amounts in RMB unless otherwise stated)
Six months ended June 30
2011# 2010#
RMB’000 RMB’000
Cash flows from operating activities
Cash generated from operations 322,759 1,601,655
Interest paid (422) (711)
Income tax paid (172,960) (101,454)
Net cash generated from operating activities 149,377 1,499,490
Cash flows from investing activities
Purchase of held-to-maturity investments (314,968) -
Purchase of property, plant and equipment (“PPE”) (399,262) (129,580)
Proceeds from disposal of PPE 1,239 1,566
Interest received 58,410 31,367
Proceed from repayment of held-to-maturity investments 315,338 -
Net cash used in investing activities (339,243) (96,647)
Cash flows from financing activities
Proceeds from borrowings - 25,019
Repayments of borrowings (24,668) (25,224)
Dividends paid to the Company’s shareholders (276) (65)
Other cash paid relating to financing activities (231) (205)
Net cash used in financing activities (25,175) (475)
Net increase / (decrease) in cash and cash equivalents (215,041) 1,402,368
Cash and cash equivalents at beginning of year 5,813,162 3,913,823
Effects of exchange rate changes - 4
Cash and cash equivalents at end of period 5,598,121 5,316,195
#Unaudited financial indexes
Board of Directors
Jiangling Motors Corporation, Ltd.
August 23, 2011
14
