Share’s name: Jiangling Motors Share’s code: 000550 No.: 2013-038
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2013 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 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: RMB000
At the end of At the end of the Change (%)
reporting period previous year
Total Assets 14,863,517 13,111,354 13.36
Shareholders equity
Attributable to the Equity 8,736,151 8,082,872 8.08
Holders of the Company
Beginning of
Reporting year to
period
Change (%) end of Change (%)
(2013 third reporting
quarter) period
Revenue 5,124,475 27.34 14,795,232 16.08
Profit Attributable to the
Equity Holders of the 321,566 -3.95 1,259,069 7.28
Company
Net Cash Generated From
- - 2,143,711 71.43
Operating Activities
Basic Earnings Per Share
0.37 -3.95 1.46 7.28
(RMB)
Diluted Earnings Per Share
0.37 -3.95 1.46 7.28
(RMB)
Down 0.54 Down 0.50
Weighted Average Return on
4.19 percentage 14.68 percentage
Net Asset Ratio (%)
point point
2
2.2 Total number of shareholders and top ten shareholders at the end of
reporting period
JMC had 23,889 shareholders, including 18,743 A-share holders and 5,146
Total shareholders
B-share holders as of September 30, 2013.
Top ten shareholders
Shares due
Shareholding Shares as of Shares with
Shareholder to
Shareholder Name Percentage September Trading
Type mortgage
(%) 30, 2013 Restriction
or frozen
Jiangling Motor State-owned
41.03 354,176,000 0 0
Holding Co., Ltd. legal person
Ford Motor Company Foreign legal
31.83 274,759,441 0 0
person
Shanghai Automotive State-owned
1.51 13,019,610 0 0
Co., Ltd. Legal person
Canada Pension Plan Foreign legal
0.92 7,923,990 0 0
Investment Board person
National Social Domestic
Security Fund- non-state-owned 0.91 7,850,000 0 0
Portfolio 418 legal person
Jpmblsa Re Ftif
Foreign legal
Templeton China Fund 0.70 6,071,850 0 0
person
Gti 5497
New China Select Domestic
Securities Investment non-state-owned 0.70 6,048,627 0 0
Fund legal person
Invesco Funds Sicav Foreign legal
0.54 4,698,109 0 0
person
Templeton Dragon Foreign legal
0.46 3,985,917 0 0
Fund, Inc. person
Templeton Gbl Invstmt
Foreign legal
Trst-Tmpltn Emgng 0.38 3,300,966 0 0
person
Mkts Small Cap Fd
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 274,759,441 B share
Shanghai Automotive Co., Ltd. 13,019,610 A share
Canada Pension Plan Investment Board 7,923,990 A share
National Social Security Fund- Portfolio
7,850,000 A share
418
Jpmblsa Re Ftif Templeton China Fund
6,071,850 B share
Gti 5497
New China Select Securities Investment
6,048,627 A share
Fund
Invesco Funds Sicav 4,698,109 B share
3
Templeton Dragon Fund, Inc. 3,985,917 B share
Templeton Gbl Invstmt Trst-Tmpltn
3,300,966 B share
Emgng Mkts Small Cap Fd
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 nine months of 2013, JMC sold 165,196 vehicles, including 57,633
JMC-brand trucks, 50,988 JMC-brand pickups (including 6,537 Yuhu Pickups),
7,181 Yusheng-brand SUVs, 49,055 Ford-brand commercial vehicles and 339
heavy trucks. Total sales volume increased by 12% compared with the same
period last year. Under IFRS, revenue and net profit for the first nine months of
2013 was RMB 14,795 million and RMB 1,259 million up 16.08% and 7.28%
respectively from the same period last year.
In the first nine months of 2013, JMC achieved 26% gross profit margin, an
increase of 1 percentage point from the same period last year, primarily
reflecting the continuing and effective cost control and favorable sales mix of
the Company.
Lease prepayment at the end of the reporting period increased by RMB 275
million, up 104% from the end of 2012, primarily reflecting the inclusion of the
land property of JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”).
Other non-current assets at the end of the reporting period decreased by RMB
81 million from the end of 2012, as the advanced payment for acquisition of
JMCH was included in prior period.
Intangible assets at the end of the reporting period increased by RMB 88
million, up 496% from the end of 2012, primarily reflecting the goodwill
increasing by the acquisition of JMCH.
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.
Current income tax liabilities at the end of the reporting period increased by
RMB 34 million, up 108% from the end of 2012, primarily reflecting the
repayment of income tax increased.
4
Sales tax in the third quarter increased by RMB 50 million, up 50% compared
with the same period last year, primarily reflecting the volume increasing and
higher mixes of SUV and Transit vehicle.
Distribution costs in the third quarter increased by RMB 156 million, up 61%
compared with the same period last year, primarily reflecting the growth of
product volume and expense relating to new mode launch.
2013 year-to-date net cash used in operating activities was RMB 2,144 million,
increased by RMB 893 million, up 71% compared with the same period last
year, primarily reflecting the changes of operating activities.
2013 year-to-date net cash used in financing activities was RMB 1,153 million,
increased by RMB 377 million, up 49% compared with the same period last
year, primarily reflecting the repayment of borrowing of JMCH.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments of the Company or the shareholder holding 5% or more of
the Company shares
□√Applicable □Not Applicable
Promisor Content of Time Term of Implementation of
Item
Commitments Commitments commitments
Share reform None None None N/A
Acquisition report or
Statement of changes None None None N/A
in equity
Asset restructuring None None None N/A
Initial Public Offering or
None None None N/A
re-funding
Ford April 16, within 6 months
2013 as of the In the reporting period, Ford
completion date exercised its commitments
Other commitments *
of this sincerely and did not breach
Shareholding the promise.
Increase
* Ford undertakes that the additional shares acquired by it within 12 months as
of the First Shareholding Increase Date (January 21, 2013) will not exceed 2%
of the aggregate issued shares of the Company, and it will not reduce the
shares it acquires in this Shareholding Increase within 6 months as of the
completion date of this Shareholding Increase.
5
3.4 Forecast on 2013 operating performance
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
3.7 External research and media interviews with the Company in the reporting
period
Date Place Communication Type of Object Information discussed
Method Object and sources offered
July 11, In the Oral Institution Four analysts from Dacheng JMC Operating
2013 Company Communication Fund Management Co., Ltd., highlights
Mingsheng Securities
Company Limited, Manulife
Teda Fund Management
Co., Ltd., Owl Creek Asset
Management Lp.
July 25, In the Oral Institution Six analysts from UBS, JMC Operating
2013 Company Communication China Merchant Securities highlights
Company Limited,
Chongyang Investment
Consulting Company,
Huachuang Securities
Company Limited
August 28, In the Oral Institution An analyst from Taikang JMC Operating
2013 Company Communication Asset Management Co., Ltd. highlights
September In the Oral Institution An analyst from Chongyang JMC Operating
11, 2013 Company Communication Investment Consulting highlights
Company
September In the Oral Institution Two analysts from Bank of JMC Operating
17, 2013 Company Communication Communications Schroder highlights
Fund Management Co., Ltd.
September In the Oral Institution Two analysts from Hanlun JMC Operating
17, 2013 Company Communication Investment Consulting highlights
Company
September In the Oral Institution An analyst from Owl Creek JMC Operating
26, 2013 Company Communication Asset Management Lp. highlights
September In the Oral Institution An analyst from GF JMC Operating
27, 2013 Company Communication Securities Company Limited highlights
Board of Directors
Jiangling Motors Corporation, Ltd.
October 29, 2013
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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
2013* 2012
ASSETS
Non-current assets
Property, plant and equipment 5,078,374 4,139,276
Lease prepayment 539,640 264,824
Intangible assets 105,390 17,678
Investments in associates 31,286 22,319
Other non-current assets - 81,000
Deferred income tax assets 195,194 181,515
5,949,884 4,706,612
Current assets
Financial assets at fair value
through profit or loss 124 322
Inventories 1,498,551 1,194,811
Trade and other receivables 1,599,796 1,649,916
Cash and cash equivalents 5,815,162 5,559,693
8,913,633 8,404,742
Total assets 14,863,517 13,111,354
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 456,110 457,650
Retained earnings 6,600,218 5,945,399
8,736,151 8,082,872
Non-controlling interests - 106,378
Total equity 8,736,151 8,189,250
LIABILITIES
Non-current liabilities
Borrowings 5,435 5,762
Deferred income tax liabilities 30,749 -
Retirement benefit obligations 42,616 50,592
Provisions for warranty and other
liabilities 188,718 152,467
Other non-current liabilities 5,580 -
273,098 208,821
Current liabilities
Trade and other payables 5,777,041 4,669,878
Current income tax liabilities 65,107 31,276
Borrowings 403 412
Retirement benefits obligations 11,717 11,717
5,854,268 4,713,283
Total liabilities 6,127,366 4,922,104
Total equity and liabilities 14,863,517 13,111,354
*: Unaudited financial indexes
7
Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands) 2013.7.1- 2012.7.1- 2013.1.1- 2012.1.1-
2013.9.30* 2012.9.30* 2013.9.30* 2012.9.30*
Revenue 5,124,475 4,024,256 14,795,232 12,745,785
Sales tax (151,846) (101,409) (423,992) (357,379)
Cost of sales (3,809,076) (3,008,147) (10,964,003) (9,599,166)
Gross profit 1,163,553 914,700 3,407,237 2,789,240
Distribution costs (410,820) (254,949) (978,387) (806,530)
Administrative expenses (411,336) (322,404) (1,086,910) (697,595)
Other income/(expenses) 11,096 (1,580) 17,276 6,869
Operating profit 352,493 335,767 1,359,216 1,291,984
Finance income 51,604 46,597 144,575 162,259
Finance costs (1,187) (1,443) (5,956) (1,951)
Finance income -net 50,417 45,154 138,619 160,308
Share of profit of associates 3,056 2,451 8,967 5,863
Profit before income tax 405,966 383,372 1,506,802 1,458,155
Income tax expense (84,400) (44,501) (228,473) (264,997)
Profit for the period 321,566 338,871 1,278,329 1,193,158
Profit attributable to:
Equity holders of the Company 321,566 334,774 1,259,069 1,173,672
Non-controlling interests - 4,097 19,260 19,486
321,566 338,871 1,278,329 1,193,158
Other comprehensive income - - - -
Total comprehensive income for
the period 321,566 338,871 1,278,329 1,193,158
Total comprehensive income
attributable to:
Equity holders of the Company 321,566 334,774 1,259,069 1,173,672
Non-controlling interests - 4,097 19,260 19,486
321,566 338,871 1,278,329 1,193,158
Earnings per share for profit
attributable to the equity holders
of the Company
(expressed in RMB per share)
- Basic and diluted 0.37 0.39 1.46 1.36
*: Unaudited financial indexes
8
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2013.7.1-2013.9.30* 2013.1.1-2013.9.30*
Cash flows from operating activities
Cash generated from operations 705,561 2,345,644
Interest paid - (5,211)
Income Tax paid (50,044) (196,722)
Net cash generated from operating activities 655,517 2,143,711
Cash flows from investing activities
Purchase of held-to-maturity investments - (200,000)
Purchase of property, plant and equipment(“PPE”) (275,179) (718,804)
Acquisition of subsidiaries, net of cash acquired - (166,169)
Other cash paid relating to investment activities (374) (805)
Proceeds from disposal of PPE 1,241 2,885
Proceed from repayment of held-to-maturity
investments - 200,524
Interest received 25,552 147,305
Other cash received from investing activities - 154
Net cash used in investing activities (248,760) (734,910)
Cash flows from financing activities
Repayments of borrowings - (424,202)
Dividends paid to the Companys shareholders (601,194) (602,039)
Dividends paid to minority shareholders of a
subsidiary - (125,638)
Other cash paid relating to financing activities (1,098) (1,453)
Net cash used in financing activities (602,292) (1,153,332)
Net increase/(decrease) in cash and cash
equivalents (195,535) 255,469
Cash and cash equivalents at beginning of period - 5,559,693
Cash and cash equivalents at 30 June 2013 6,010,697 -
Effects of exchange rate changes - -
Cash and cash equivalents at end of period 5,815,162 5,815,162
*: Unaudited financial indexes
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