Share’s name: Jiangling Motors Share’s code: 000550 No.: 2013-015
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2013 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 Director Howard D. Welsh did not attend this meeting in person, and he
authorized Vice Chairman David L. Schoch to represent him at this meeting.
Other Directors were present at the Board meeting in person.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Wang Xigao, President Yuan-Ching Chen, CFO Dennis Leu 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
2013 2012
Change (%)
First Quarter First Quarter
Revenue 4,900,875 4,493,960 9.05
Profit Attributable to the
Equity Holders of the 499,879 475,479 5.13
Company
Net Cash Generated
886,373 746,616 18.72
From Operating Activities
Basic Earnings Per Share
0.58 0.55 5.13
(RMB)
Diluted Earnings Per
0.58 0.55 5.13
Share (RMB)
Weighted Average Return Down 0.30
6.00 6.30
on Net Asset Ratio (%) percentage point
March 31, December 31,
Change (%)
2013 2013
Total Assets 13,658,323 13,111,354 4.17
Shareholders’ Equity
Attributable to the Equity 8,581,211 8,082,872 6.17
Holders of the Company
2.2 Total number of shareholders and top ten shareholders at the end of
reporting period
JMC had 25,355 shareholders, including 19,313 A-share holders and 6,042
Total shareholders
B-share holders as of March 31, 2013.
Top ten shareholders
Shares due
Shareholding Shares at the Shares with
Shareholder to
Shareholder Name Percentage End of 2013 Trading
Type mortgage
(%) First Quarter Restriction
or frozen
Jiangling Motor State-owned
41.03 354,176,000 0 0
Holding Co., Ltd. legal person
Ford Motor Company Foreign legal
30.40 262,436,947 0 0
person
Shanghai Automotive State-owned
1.51 13,019,610 0 0
Co., Ltd. Legal person
National Social Domestic
Security Fund- non-state-owned 1.30 11,234,091 0 0
Portfolio 102 legal person
Huaan Tactical Select Domestic 0.84 7,262,451 0 0
2
Securities Investment non-state-owned
Fund legal person
Jpmblsa Re Ftif
Foreign legal
Templeton China Fund 0.70 6,071,850 0 0
person
Gti 5497
National Social Domestic
Security Fund- non-state-owned 0.68 5,856,528 0 0
Portfolio 418 legal person
Domestic
Guotai Jinma Stable
non-state-owned 0.57 4,907,787 0 0
Return Equities Fund legal person
New China Select Domestic
Securities Investment non-state-owned 0.56 4,804,583 0 0
Fund legal person
Foreign legal
Invesco Funds Sicav 0.54 4,698,109 0 0
person
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Share Type
Restriction
Jiangling Motor Holding Co., Ltd. 354,176,000 A share
Ford Motor Company 262,436,947 B share
Shanghai Automotive Co., Ltd. 13,019,610 A share
National Social Security Fund- Portfolio
11,234,091 A share
102
Huaan Tactical Select Securities
7,262,451 A share
Investment Fund
Jpmblsa Re Ftif Templeton China Fund
6,071,850 B share
Gti 5497
National Social Security Fund- Portfolio
5,856,528 A share
418
Guotai Jinma Stable Return Equities Fund 4,907,787 A share
New China Select Securities Investment
4,804,583 A share
Fund
Invesco Funds Sicav 4,698,109 B share
Notes on association among
None.
above-mentioned shareholders
§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 2013, JMC sold 56,420 vehicles, including 17,230
JMC-brand trucks, 19,565 JMC-brand pickups (including 1,845 Yuhu Pickups),
2,689 Yusheng-brand SUVs, 16,704 Ford-brand commercial vehicles, and 232
heavy trucks. Total sales volume increased by 7.1% compared with the same
period last year. Revenue and net profit during the reporting period were RMB
3
4,901 million and RMB 500 million, up 9.05% and 5% respectively compared
with the same period last year.
In the first quarter of 2013, JMC achieved 26% gross profit margin, an increase
of 2 percent compared with the same period last year, mainly attributed to the
continuous cost control and improvement of product line mix.
Lease prepayment at the end of the reporting period increased by RMB 281
million, up 106% from the end of 2012, primarily reflecting the inclusion of the
land property of JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”)
Intangible assets at the end of the reporting period increased by RMB 88
million, up 498% from the end of 2012, primarily explained by the goodwill
increase from the acquisition of Taiyuan Changan Heavy Truck Company
(“TCHT”).
Other non-current assets at the end of the reporting period were down by RMB
81 million from the end of 2012, as the advanced payment for acquisition of
TCHT was included in prior period.
Held-to-maturity investment at the end of the reporting period were increased
by RMB 100 million from the end of 2012, primarily reflecting increase of
central bank note
Non-controlling interests at the end of the reporting period were down by RMB
106 million from the end of 2012, primarily because the Company transferred
the equity of Jiangling-Isuzu Motors Company Limited to Jiangling Motors
Company (Group).
Deferred income tax liabilities at the end of the reporting period increased by
RMB 31 million from the end of 2012, primarily reflecting the deferred income
tax liabilities derived from the assets evaluation of JMCH.
Administrative Expenses in the first quarter of 2013 increased by RMB 136
million, up 80% compared with the same period last year, primarily reflecting
the growth of product development costs.
Finance income -net in the first quarter of 2013 decreased by RMB 19 million,
4
down 37% compared with the same period last year, primarily reflecting lower
payment for the use of the Company’s funds from dealers and interest
expense of JMCH.
Other income in the first quarter of 2013 decreased by RMB 16 million, down
98% compared with the same period last year, mainly reflecting the decrease
of government subsidy funds compared with the same period last year.
2013 year-to-date net cash used in investing activities was RMB 393 million,
increased by RMB 146 million, up 59% compared with the same period of
2012, primarily reflecting the payment for acquiring TCHT equity.
2013 year-to-date net cash used in financing activities was 550 million,
increased by RMB 550 million compared with the same period of 2012,
primarily reflecting the repayment of borrowing of JMCH.
3.2 Analysis of major events, their impacts and resolutions
1. On January 8, 2013, Taiyuan Changan Heavy Truck Company (“TCHT”)
completed its industrial and commercial registration changes and its company
name was changed as JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”). JMC paid
off the remaining of RMB 189,000,000 for acquiring 100% equity of TCHT in
January 2013 (total consideration concerning TCHT equity transfer was RMB
270 million, and prepayment of RMB 81 million was paid off in 2012). Upon the
completion of the equity transfer, JMCH is a whole-owned subsidiary of the
Company to manufacture heavy duty trucks. In the reporting period, JMCH has
been added into the consolidated scope of JMC financial statements.
2. Jiangling Motors Company (Group) had paid off RMB 318,499,168 to the
Company as a consideration of the equity transfer of Jiangling-Isuzu Motors
Company, Ltd. (“Jiangling-Isuzu”). The relevant government approval and
industrial and commercial registration changes concerning the equity transfer
has been completed. Jiangling-Isuzu has been deleted from the consolidated
scope of JMC financial statements.
Jiangling-Isuzu was a subsidiary of JMC in the past, and JMC held 75% equity
of Jiangling-Isuzu.
3.3 Commitments made by the Company or the shareholder holding 5% or
more of the Company shares during the reporting period
□Applicable □√Not Applicable
3.4 Forecast on 2013 first half-year operating performance
5
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 Securities investments
□Applicable □√Not Applicable
3.6 Securities derivates investment
□Applicable □√Not Applicable
3.6.1 Balance of securities derivates at the end of reporting period
□Applicable □√Not Applicable
3.7 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 An analyst from JMC Operating highlights
7, 2013 Company Communication Harvest Fund
Management Co., Ltd.
January In the Oral An analyst from China JMC Operating highlights
9, 2013 Company Communication International Capital
Corporation Limited.
January In the Oral Four analysts from JMC Operating highlights
10, 2013 Company Communication Guotai Junan
Securities Co., Ltd.
January In the Oral An analyst from Tianli JMC Operating highlights
16, 2013 Company Communication Investment Singapore
(Private) Company
January In the Oral An analyst from BOC JMC Operating highlights
18, 2013 Company Communication International (China)
Limited
January In the Oral Eleven analysts from JMC Operating highlights
24, 2013 Company Communication Sun Life Everbright
Asset Management
Co., Ltd., Essence
Fund Management
Co., Ltd, SMC China
Fund, CITIC Securities
Co., Ltd., Huashang
Fund Management
Co., Ltd.,
AEGON-INDUSTRIAL
Fund Management
Co., Ltd., New Times
Securities Co., Ltd.,
Juntai Consulting
Company, Keywise
Capital Management
Co., Ltd.
February In the Oral An analyst from JMC Operating highlights
6
20, 2013 Company Communication Changjiang Securities
Co., Ltd.
March 29, In the Oral Four analysts from JMC Operating highlights
2013 Company Communication China Fortune
Securities Company,
ABC-CA Fund
Management Co., Ltd.,
Haitong Securities Co.,
Ltd.
Board of Directors
Jiangling Motors Corporation, Ltd.
April 27, 2013
7
Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
March 31, 2013
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
31 March 2013* 31 December 2012
RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 4,534,660 4,139,276
Lease prepayment 546,051 264,824
Intangible assets 105,719 17,678
Investments in associate 25,536 22,319
Other non-current assets - 81,000
Deferred income tax assets 166,117 181,515
5,378,083 4,706,612
Current assets
Financial assets at fair value through profit or loss - 322
Inventories 1,161,478 1,194,811
Trade and other receivables 1,515,416 1,649,916
Held-to-maturity investment 100,000 -
Cash and cash equivalents 5,503,346 5,559,693
8,280,240 8,404,742
Total assets 13,658,323 13,111,354
EQUITY
Capital and reserves attributable to the pany’s
Company’s equity holders
Share capital 863,214 863,214
Share premium 816,609 816,609
Other reserves 456,110 457,650
Retained earnings 6,445,278 5,945,399
8,581,211 8,082,872
Non-controlling interests - 106,378
Total equity 8,581,211 8,189,250
LIABILITIES
Non-current liabilities
Borrowings 5,747 5,762
Deferred income tax liablities 31,275 -
Retirement benefit obligations 47,532 50,592
Warranty provisions 159,733 152,467
Other non-current liabilities 5,620 -
249,907 208,821
Current liabilities
Financial liabilities at fair value through profit or loss 676 -
Trade and other payables 4,814,401 4,669,878
Current income tax liabilities - 31,276
Borrowings 411 412
Retirement benefits obligations 11,717 11,717
4,827,205 4,713,283
Total liabilities 5,077,112 4,922,104
Total equity and liabilities 13,658,323 13,111,354
*: Unaudited financial indexes
8
Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
2013 First quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2013 first quarter* 2012 first quarter*
RMB’000 RMB’000
Revenue 4,900,875 4,493,960
Sales tax (165,247) (145,268)
Cost of sales (3,635,962) (3,409,213)
Gross profit 1,099,666 939,479
Distribution costs (231,767) (272,955)
Administrative expenses (306,221) (170,450)
Other income 239 15,513
Operating profit 561,917 511,587
Finance income 38,861 54,346
Finance costs (4,569) (240)
Finance income -net 34,292 54,106
Share of profit of associates 3,218 1,577
Profit before income tax 599,427 567,270
Income tax expense (80,288) (88,725)
Profit for the period 519,139 478,545
Profit attributable to:
Equity holders of the Company 499,879 475,479
Non-controlling interests 19,260 3,066
519,139 478,545
Other comprehensive income - -
Total comprehensive income for the period 519,139 478,545
Total comprehensive income attributable to:
Equity holders of the Company 499,879 475,479
Non-controlling interests 19,260 3,066
519,139 478,545
Earnings per share for profit attributable to
the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted 0.58 0.55
*: Unaudited financial indexes
9
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
2013 First Quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2013 first quarter* 2012 first quarter*
RMB’000 RMB’000
Cash flows from operating activities
Cash generated from operations 1,030,289 764,711
Interest paid (5,165) (220)
Income tax paid (138,751) (17,875)
Net cash generated from operating activities 886,373 746,616
Cash flows from investing activities
Purchase of held-to-maturity investments (100,000) -
Purchase of property, plant and equipment(“PPE”) (220,865) (299,837)
Acquisition of subsidiaries, net of cash acquired (166,168) -
Other cash paid relating to investing activities - (328)
Proceeds from disposal of PPE 1,142 350
Interest received 92,901 52,867
Other cash received from investing activities 153 508
Net cash used in investing activities (392,837) (246,440)
Cash flows from financing activities
Repayments of borrowings (424,000) -
Dividends paid to minority shareholders of a subsidiary (125,638) -
Other cash paid relating to financing activities (245) (145)
Net cash used in financing activities (549,883) (145)
Net increase/(decrease) in cash and cash equivalents (56,347) 500,031
Cash and cash equivalents at beginning of year 5,559,693 5,384,977
Effects of exchange rate changes - -
Cash and cash equivalents at end of period 5,503,346 5,885,008
*: Unaudited financial indexes
10
