Share’s name: Jiangling Motors Share’s code: 000550 No.: 2017-041
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2017 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 any
false statement, misrepresentation or major omission.
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 Directors were present at the Board meeting in person.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Qiu Tiangao, CFO Gong Yuanyuan and Chief of Finance
Department, Xie Wanzhao 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 23,685,848 24,493,789 -3.30
Shareholder’s equity
Attributable to the Equity 12,526,207 12,409,236 0.94
Holders of the Company
Beginning of
Reporting year to
period
Change (%) end of Change (%)
(2017 third reporting
quarter) period
Revenue 6,768,706 5.45 22,435,182 30.21
Profit Attributable to the
Equity Holders of the 90,628 -76.70 643,531 -41.15
Company
Net Cash Generated From
- - -1,385,148 -166.79
Operating Activities
Basic Earnings Per Share
0.11 -76.70 0.75 -41.15
(RMB)
Diluted Earnings Per Share
0.11 -76.70 0.75 -41.15
(RMB)
Down 2.67 Down 4.68
Weighted Average Return on
0.74 percentage 5.10 percentage
Net Asset Ratio (%)
point points
2
2.2 Total number of shareholders and top ten shareholders at the end of
reporting period
2.2.1 Total number of shareholders and top ten shareholders
JMC had 28,117 shareholders as of September 30, 2017, including 22,845
Total shareholders
A-share holders and 5,272 B-share holders.
Top ten shareholders
Shareholding Shares as of Shares with Shares due
Shareholder
Shareholder Name Percentage September Trading to mortgage
Type
(%) 30, 2017 Restriction or frozen
Jiangling Motor State-owned
41.03% 354,176,000 0 0
Holding Co., Ltd. legal person
Ford Motor Company Foreign legal
32.00% 276,228,394 0 0
person
China Securities
Other 2.64% 22,743,584 0 0
Corporation Limited
Shanghai Automotive State-owned
1.51% 13,019,610 0 0
Co., Ltd. Legal person
Central Huijin State-owned
0.83% 7,186,600 0 0
Investment Ltd. Legal person
JPMBLSA RE FTIF
Foreign legal
TEMPLETON CHINA 0.68% 5,848,450 0 0
person
FUND GTI 5497
Foreign legal
GAOLING FUND,L.P. 0.63% 5,439,086 0 0
person
INVESCO FUNDS Foreign legal
0.58% 5,035,746 0 0
SICAV person
TEMPLETON Foreign legal
0.57% 4,887,508 0 0
DRAGON FUND,INC. person
TEMPLETON GBL
INVSTMT
Foreign legal
TRST-TMPLTN 0.46% 3,948,718 0 0
person
EMGNG 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 276,228,394 B share
China Securities Corporation Limited 22,743,584 A share
Shanghai Automotive Co., Ltd. 13,019,610 A share
Central Huijin Investment Ltd. 7,186,600 A share
JPMBLSA RE FTIF TEMPLETON CHINA
5,848,450 B share
FUND GTI 5497
GAOLING FUND,L.P. 5,439,086 B share
INVESCO FUNDS SICAV 5,035,746 B share
TEMPLETON DRAGON FUND,INC. 4,887,508 B share
TEMPLETON GBL INVSTMT
TRST-TMPLTN EMGNG MKTS SMALL 3,948,718 B share
CAP FD
3
Notes on association among
None.
above-mentioned shareholders
Stock buy-back of top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Yes □√No
There was no Stock buy-back of top ten shareholders or top ten shareholders
holding unlimited tradable shares in the reporting period.
2.2.2 Total number of shareholders holding preferred shares and top ten
shareholders holding preferred shares
□Applicable □√Not Applicable
§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 three quarters of 2017, JMC sold 221,408 vehicles in total, up
19.99% compared with the same period last year; including 75,574 JMC-brand
trucks, 49,570 JMC-brand pickups, 33,454 SUVs, 38,331 Ford-brand
commercial vehicles, 20,179 JMC-brand light buses and 4,300 Transit CKDs.
Revenue and net profit during the reporting period were RMB 22,435 million
and RMB 644 million, increase 30.21% and decrease 41.15% respectively
compared with the same period last year.
Trade, other receivables and prepayments at the end of the reporting period
increased by RMB 1,301 million, or 49.56% from the end of 2016, primarily
reflecting the increase of dealer credit to support peak season sales and
production balance, and the material purchasing increase due to higher
production.
Distribution costs in the third quarter of 2017 increased by 163 million, up
36.12% from the same period last year, primarily reflecting the increase of
marketing expenses due to the severe competition situation.
Profit after income tax in the third quarter of 2017 decreased by RMB 298
million, down 76.70% from the same period last year, primarily reflecting
change of sales structure and the marketing expense and research
expenditure increase.
Distribution costs in the first three quarters of 2017 increased by RMB 676
4
million, up 55.92% from the same period last year, primarily reflecting the
marketing and sales promotion expense increase.
Profit before income tax in the first three quarters of 2017 decreased by RMB
544 million, down 44.05% from the same period last year, primarily reflecting
the marketing expense increase and change of sales structure.
Income tax expense in the first three quarters of 2017 decreased by RMB 94
million, down 66.31% from the same period last year, primarily reflecting the
decrease of the profit.
Net cash generated from operating activities in the first three quarters of 2017
decreased by RMB 3,459 million, down 166.79% from the same period last
year, primarily reflecting the increase of receivables and payments generated
by the increase of sales volume.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments of the Company, the shareholder, the actual controlling
party, the acquirer, the Director, the Supervisor, the senior executive or the
related party of the Company
□Applicable □√Not Applicable
3.4 Forecast on 2017 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 investment
□Applicable □√Not Applicable
There was no securities investment during the reporting period.
3.6 Securities derivates investment
□Applicable □√Not Applicable
There was no securities derivates investment during the reporting period.
3.7 External research and media interviews with the Company during the
reporting period
□Applicable □√Not Applicable
There was no external research or media interview with the Company during
the reporting period.
5
3.8. Outside guarantee in breach of laws & regulations
□Applicable □√Not Applicable
There was no outside guarantee in breach of laws & regulations during the
reporting period.
3.9 Non-operating funding in the Company occupied by controlling
shareholder and its affiliates
□Applicable □√Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates during the reporting period.
3.10 Corporation social responsibilities of one-to-one poverty alleviation
3.10.1 Summary of one-to-one poverty alleviation
According to arrangement of JMCG, the Company joined the one-to-one
poverty alleviation in Qianmo Village, Daijiapu Township, Suichuan County,
Jiangxi Province and Xianting Village, Songhu Town, Xinjian District,
Nanchang City.
3.10.2 Status of one-to-one poverty alleviation by the listed company in the first
three quarters
Item Unit Amount/Progress
I. Brief Introduction —— ——
including：1. Funding RMB (‘000) 57.7
2. Sum converted from the materials RMB (‘000) 13.3
3. Persons get rid of poverty Persons 20
II. Investments —— ——
1. Anti-poverty depending on industry development —— ——
2. Anti-poverty depending on employment transfer —— ——
3. Anti-poverty depending on relocation —— ——
4. Anti-poverty depending on education —— ——
5. Health Anti-poverty —— ——
6. Ecological protection anti-poverty —— ——
7. Miscellaneous provisions —— ——
8. Social anti-poverty —— ——
including：8.1 Investments on cooperation between West
RMB (‘000)
China and East China
8.2 Investments on one-to-one anti-poverty RMB (‘000) 71
8.3 Investments from anti-poverty charity fund RMB (‘000)
9. Other —— ——
III. Awards —— ——
6
§4 Financial Statements
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
(All amounts in RMB thousands unless otherwise stated)
30 September 2017* 31 December 2016
Assets
Non-current assets
Property, plant and equipment 6,595,626 6,688,530
Lease prepayment 620,728 632,408
Intangible assets 143,479 158,160
Investments accounted for using the equity
45,271 39,893
method
Other non-current assets 115,987 97,549
Deferred income tax assets
582,138 554,488
8,103,229 8,171,028
Current assets
Financial assets at fair value through profit
- 8,539
or loss
Inventories 2,299,947 1,934,092
Trade, other receivables and prepayments 3,927,188 2,625,808
Cash and cash equivalents 9,262,071 11,666,222
Restricted Cash - 463
Assets classified as held for sale 93,413 87,637
15,582,619 16,322,761
Total assets 23,685,848 24,493,789
Equity and liabilities
Equity attributable to shareholders of the
Company
Share capital 863,214 863,214
Share premium 816,609 816,609
Other reserves 452,126 452,126
Retained earnings 10,394,258 10,277,287
Total equity 12,526,207 12,409,236
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30 September 2017* 31 December 2016
Liabilities
Non-current liabilities
Borrowings 4,129 4,543
Deferred income tax liabilities 26,791 27,383
Retirement benefit obligations 49,807 53,627
Provisions for warranty and other liabilities 159,426 130,987
Other non-current liabilities 260 320
240,413 216,860
Current liabilities
Financial liabilities at fair value through profit
2,687 -
or loss
Trade and other payables 10,701,225 11,605,178
Current income tax liabilities 24,816 98,860
Borrowings 435 454
Retirement benefit obligations 4,561 4,561
Provisions for warranty and other liabilities 185,504 153,640
Other current liabilities - 5,000
10,919,228 11,867,693
Total liabilities 11,159,641 12,084,553
Total equity and liabilities 23,685,848 24,493,789
*: Unaudited financial indexes
8
Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(All amounts in RMB thousands unless otherwise stated)
2017.7.1- 2016.7.1- 2017.1.1- 2016.1.1-
2017.9.30* 2016.9.30* 2017.9.30* 2016.9.30*
Revenue 6,768,706 6,418,622 22,435,182 17,229,358
Sales tax (190,741) (197,070) (735,363) (525,325)
Cost of sales (5,407,643) (4,866,388) (17,779,600) (13,222,471)
Gross profit 1,170,322 1,355,164 3,920,219 3,481,562
Distribution expenses (613,872) (450,967) (1,884,349) (1,208,534)
Administrative expenses (583,351) (543,465) (1,777,017) (1,480,863)
Impairment charge of non-current assets
- - (3,347) (1,347)
Other income 42,621 50,039 246,205 275,895
Operating profit 15,720 410,771 501,711 1,066,713
Finance income 60,293 53,272 188,196 163,691
Finance expenses (1,897) (2,298) (3,900) (3,065)
Finance income -net 58,396 50,974 184,296 160,626
Share of profit of investments accounted for using
the equity method 1,931 3,251 5,378 8,277
Profit before income tax 76,047 464,996 691,385 1,235,616
Income tax expense 14,581 (75,960) (47,854) (142,063)
Profit for the period 90,628 389,036 643,531 1,093,553
Total comprehensive income for the period 90,628 389,036 643,531 1,093,553
Profit attributable to:
Shareholders of the Company 90,628 389,036 643,531 1,093,553
Total comprehensive income attributable to:
Shareholders of the Company 90,628 389,036 643,531 1,093,553
Earnings per share for profit attributable to the
shareholders of the Company
(expressed in RMB per share)
- Basic and diluted 0.11 0.45 0.75 1.27
*: Unaudited financial indexes
9
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(All amounts in RMB thousands unless otherwise stated)
2017.1.1- 2016.1.1-
2017.9.30* 2016.9.30*
Cash flows from operating activities
Cash generated from operations (1,187,899) 2,220,687
Interest paid (158) (320)
Income Tax paid (197,091) (146,629)
Net cash generated from operating activities (1,385,148) 2,073,738
Cash flows from investing activities
Purchase of property, plant and equipment (PPE) (635,675) (839,683)
Other cash paid relating to investing activities (5,878) (101)
Proceeds from disposal of PPE 2,451 2,620
Interest received 144,405 160,217
Dividends received - 5,745
Other cash received from investing activities 8,908 1,554
Net cash used in investing activities (485,789) (669,648)
Cash flows from financing activities
Repayments of borrowings (5,226) (212)
Dividends paid to the Company’s shareholders (527,117) (897,770)
Other cash paid relating to financing activities (871) (1,467)
Net cash used in financing activities (533,214) (899,449)
Net (decrease)/increase in cash and cash equivalents (2,404,151) 504,641
Cash and cash equivalents at beginning of period 11,666,222 8,848,040
Effects of exchange rate changes
- -
Cash and cash equivalents at end of period 9,262,071 9,352,681
*: Unaudited financial indexes
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