Share’s name: Jiangling Motors Share’s code: 000550 No.: 2011-033
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2011 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 At the end of the Change (%)
reporting period previous year
Total Assets 11,126,710 11,237,715 -0.99
Shareholder’s equity
Attributable to the Equity 6,920,246 6,127,276 12.94
Holders of the Company
Share Capital 863,214 863,214 0
Net Assets Per Share
Attributable to the Equity
8.02 7.10 12.94
Holders of the Company
(RMB)
Beginning of
Reporting year to
period
Change (%) end of Change (%)
(2011 third reporting
quarter) period
Revenue 4,087,971 3.08 13,309,511 14.33
Profit Attributable to the
Equity Holders of the 399,891 -2.50 1,474,909 1.74
Company
Net Cash Generated From
- - 432,995 -77.83
Operating Activities
Net Cash Flow Per Share
from Operating Activities - - 0.50 -77.83
(RMB)
Basic Earnings Per Share
0.46 -2.50 1.71 1.74
(RMB)
Diluted Earnings Per Share
0.46 -2.50 1.71 1.74
(RMB)
Down 1.24 Down 4.51
Weighted Average Return on
6.38 percentage 21.97 percentage
Net Asset Ratio (%)
points points
2
2.2 Total number of shareholders and top ten shareholders holding unlimited
tradable shares as at the end of reporting period
Total shareholders at the JMC had 25,727 shareholders, including 19,409 A-share
end of reporting period holders and 6,318 B-share holders, as of September 30, 2011.
Top ten shareholders holding unlimited tradable shares
Name Shares as of Share Type
September 30,
2011
Jiangling Motor Holding Co., Ltd. （”JMH”） 354,176,000 A share
Ford Motor Company 258,964,200 B share
Shanghai Automotive Co., Ltd. 13,019,610 A share
National Social Security Fund- Portfolio 102 10,030,098 A share
Huaan Tactical Select Securities Investment Fund 9,912,299 A share
Bosera Thematic Sector Equity Securities
9,500,000 A share
Investment Fund
Dragon Billion China Master Fund 8,969,196 B share
Rongtong New Blue-chip Securities Investment
5,415,930 A share
Fund
Jpmblsa Re Ftif Templeton China Fund Gti 5497 4,827,483 B share
National Social Security Fund- Portfolio 103 4,099,149 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 2011, the Company achieved a sales volume of
149,352 units, including 53,666 JMC-brand trucks, 51,913 JMC-brand pickups
and SUVs, and 43,773 Ford-brand commercial vehicles. Total sales volume
was up 12% from the same period last year. Under IFRS, revenue and net
profit for the first nine months of 2011 were RMB 13,310 million and RMB
1,475 million, up 14% and 2% respectively from the same period last year.
In the third quarter of 2011, net profit was RMB 400 million, down 2.5% from
the same period last year. Gross profit margin was 24.8%, down approximately
0.7 percentage points from the same period last year, primarily reflecting
pricing actions for selected products and raw material cost increase.
Trade and other receivables at the end of the reporting period increased by
RMB 676 million, up 82% from the end of 2010, primarily reflecting increased
credit support to dealers.
Current income tax liabilities at the end of the reporting period decreased by
RMB 35 million, down 37% from the end of 2010, primarily reflecting tax
payment recalendarization.
Borrowings in current liabilities at the end of the reporting period decreased by
3
RMB 25 million, down 98% from the end of 2010, primarily reflecting
repayment of bank loan.
Sales tax in the third quarter increased by RMB 55 million, up 79% compared
with the same period last year, primarily reflecting higher consumption tax
generated from volume growth and a new levy of construction and education
taxes.
Financial income in the third quarter increased by RMB 17 million, up 79%
compared with the same period last year, primarily reflecting increase of
interest income on bank deposits and improved cash management.
2011 year-to-date net cash generated from operating activities was RMB 433
million, RMB 1,520 million lower than 2010, down 78% compared with the
same period last year, primarily reflecting working capital changes.
2011 year-to-date net cash used in investing activities was RMB 490 million,
RMB 270 million higher than 2010, up 123% compared with the same period
last year, primarily reflecting investments related to the new Xiaolan assembly
plant.
2011 year-to-date net cash used in financing activities was RMB 734 million,
RMB 290 million higher than 2010, up 65% 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
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3.3 Implementation of commitments made by the Company, shareholders or
actual controlling parties
Commitments’
Item Promisor Implementation of commitments
Content
In the reporting period, JMH
Share reform JMH * exercised its commitments sincerely
and did not breach the promise.
Acquisition report or Statement
None None N/A
of changes in equity
Major asset restructuring None None N/A
Initial Public Offering None None N/A
Other commitments (including
None None N/A
additional commitments)
*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
3.5 Explanations on other major events
3.5.1 Securities investments
□Applicable □√Not Applicable
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3.5.2 External research and media interviews with the Company in the
reporting period
Date Place Communication Object Information discussed
Method and sources offered
July 7, 2011 In the Oral Three analysts from JMC Operating
Company Communication Shanghai Heqi Investment highlights
Company, Value Star Asset
Management Co., Ltd.
July 13, In the Oral Five analysts from First JMC Operating
2011 Company Communication Shanghai Securities Co., highlights
Ltd., Shenzhen Pingshi
Investment Company,
Beijing Hongdao Investment
Company, TF Securities
Co., Ltd.
July 20, In the Oral An analyst from Shanghai JMC Operating
2011 Company Communication Wisdom Investment highlights
Management Co., Ltd.
September In the Oral Two analysts from JMC Operating
2, 2011 Company Communication Everbright Securities highlights
Company Limited,
Huatai-PineBridge Fund
Management Co., Ltd.
September In the Oral Eight analysts from China JMC Operating
27, 2011 Company Communication International Capital highlights
Corporation Limited, Orient
Securities Company
Limited, New Tongfang
Investment Company,
Fortune SG Fund
Management Co., Ltd.,
Baoying Fund Management
Co., Ltd., HuaAn Fund
Management 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.
October 27, 2011
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Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands) 30 September 31 December
2011* 2010
ASSETS
Non-current assets
Property, plant and equipment 2,927,474 2,630,524
Lease prepayment 272,978 277,870
Intangible assets 22,144 31,302
Investments in associates 15,776 17,928
Deferred income tax assets 152,775 205063
3,391,147 3,162,687
Current assets
Inventories 1,212,702 1,436,492
Trade and other receivables 1,500,877 825,374
Cash and cash equivalents 5,021,984 5,813,162
7,735,563 8,075,028
Total assets 11,126,710 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 4,782,773 3,989,803
6,920,246 6,127,276
Non-controlling interests 116,479 115,319
Total equity 7,036,725 6,242,595
LIABILITIES
Non-current liabilities
Borrowings 6,450 6,939
Retirement benefit obligations 43,982 54,569
Warranty provisions 140,628 171,789
191,060 233,297
Current liabilities
Trade financial liabilities 1,692 -
Trade and other payables 3,823,634 4,628,421
Current income tax liabilities 61,095 96,310
Borrowings 416 25,004
Retirement benefits obligations 12,088 12,088
3,898,925 4,761,823
Total liabilities 4,089,985 4,995,120
Total equity and liabilities 11,126,710 11,237,715
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands) 2011.7.1- 2010.7.1- 2011.1.1- 2010.1.1-
2011.9.30* 2010.9.30* 2011.9.30* 2010.9.30*
Revenue 4,087,971 3,965,946 13,309,511 11,641,763
Sales tax (125,137) (70,022) (387,856) (201,421)
Cost of sales (3,074,365) (2,954,385) (10,066,862) (8,629,733)
Gross profit 888,469 941,539 2,854,793 2,810,609
Distribution costs (270,320) (280,321) (672,713) (661,557)
Administrative expenses (188,552) (196,941) (549,745) (488,309)
Other income/(expenses) 1,954 (2,438) 2,633 (6,317)
Operating profit 431,551 461,839 1,634,968 1,654,426
Finance income 38,978 22,126 119,411 64,489
Finance costs (1,276) (1,051) (1,846) (1,896)
Finance income -net 37,702 21,075 117,565 62,593
Share of profit of associates 1,728 1,480 4,957 5,077
Profit before income tax 470,981 484,394 1,757,490 1,722,096
Income tax expense (64,928) (68,314) (253,037) (251,196)
Profit for the period 406,053 416,080 1,504,453 1,470,900
Profit attributable to:
Equity holders of the Company 399,891 410,127 1,474,909 1,449,639
Non-controlling interests 6,162 5,953 29,544 21,261
406,053 416,080 1,504,453 1,470,900
Other comprehensive income - - - -
Total comprehensive income for
the period 406,053 416,080 1,504,453 1,470,900
Total comprehensive income
attributable to:
Equity holders of the Company 399,891 410,127 1,474,909 1,449,639
Non-controlling interests 6,162 5,953 29,544 21,261
406,053 416,080 1,504,453 1,470,900
Earnings per share for profit
attributable to the equity holders
of the Company
(expressed in RMB per share)
- Basic and diluted 0.46 0.48 1.71 1.68
*: Unaudited financial indexes
8
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2011.7.1-2011.9.30* 2011.1.1-2011.9.30*
Cash flows from operating activities
Cash generated from operations 346,423 669,182
Interest paid - (422)
Income Tax paid (62,805) (235,765)
Net cash generated from operating activities 283,618 432,995
Cash flows from investing activities
Purchase of held-to-maturity investments - (314,968)
Purchase of property, plant and equipment(“PPE”) (217,893) (617,155)
Proceeds from disposal of PPE 53 1,292
Interest received 60,135 118,557
Proceed from repayment of held-to-maturity
- 315,326
investment
Dividends received 7,109 7,109
Net cash used in investing activities (150,596) (489,839)
Cash flows from financing activities
Repayments of borrowings - (24,668)
Dividends paid to the Company’s shareholders (707,962) (708,238)
Other cash paid relating to financing activities (1,196) (1,427)
Net cash used in financing activities (709,158) (734,333)
Net increase/(decrease) in cash and cash
equivalents (576,136) (791,177)
Cash and cash equivalents at beginning of period - 5,813,162
Cash and cash equivalents at 30 June 2011 5,598,121 -
Effects of exchange rate changes (1) (1)
Cash and cash equivalents at end of period 5,021,984 5,021,984
*: Unaudited financial indexes
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