Share’s name: Jiangling Motors Share’s code: 000550 No.: 2019-021 Jiangling B 200550 Jiangling Motors Corporation, Ltd. 2019 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 any false statement, misrepresentation or major omission. 1.2 Director Thomas Fann did not attend this meeting, and he authorized Vice Chairman Anning Chen to represent him at this meeting, and all the other Directors were present at the Board meeting in person. 1.3 Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Xie Wanzhao, confirm that the financial statements in this Quarter Report are truthful, accurate and complete. 1.4 All financial data in this Quarter 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 Reporting period Same Period YoY Change (%) (2019 first quarter) Last Year Revenue 6,506,386 6,481,073 0.39% Profit Attributable to the Equity Holders of the 25,158 153,606 -83.62% Company Net Cash Generated From -191,400 -1,397,337 86.30% Operating Activities Basic Earnings Per Share 0.03 0.18 -83.62% (RMB) Diluted Earnings Per Share 0.03 0.18 -83.62% (RMB) Weighted Average Return on Down 0.97 0.24% 1.21% Net Asset Ratio (%) percentage points At the end of At the end of the previous year Change (%) the reporting period Total Assets 22,161,203 23,396,529 -5.28% Shareholder’s equity Attributable to the Equity 10,409,656 10,384,498 0.24% Holders of the Company 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 20,607 shareholders as of March 31, 2019, including 15,267 A-share Total shareholders holders and 5,340 B-share holders. Top ten shareholders Shares due Shareholding Shares with Shareholder Shares as of to Shareholder Name Percentage Trading Type March 31, 2019 mortgage (%) Restriction or frozen Jiangling Motor State-owned 41.03 354,176,000 0 0 Holdings Co., Ltd. legal person Foreign Ford Motor Company 32.00 276,228,394 0 0 legal person China Securities Other 2.72 23,458,066 0 0 Corporation Limited State-owned Shanghai Automotive Legal 1.51 13,019,610 0 0 Co., Ltd. person Harvest Environmental other 0.95 8,188,983 0 0 Protection Low 2 Carbon Stock Investment Fund State-owned Central Huijin Legal 0.83 7,186,600 0 0 Investment Ltd. person National Social State-owned Security Fund 602 Legal 0.75 6,488,864 0 0 Portfolio person JPMBLSA RE FTIF Foreign TEMPLETON CHINA 0.68 5,848,450 0 0 legal person FUND GTI 5497 GAOLING FUND, Foreign 0.63 5,453,086 0 0 L.P. legal person AEGON Social Responsibility Hybrid other 0.59 5,128,264 0 0 Securities Investment Fund Top ten shareholders holding unlimited tradable shares Shareholder Name Shares without Trading Share Type Restriction Jiangling Motor Holdings Co., Ltd. 354,176,000 A share Ford Motor Company 276,228,394 B share China Securities Corporation Limited 23,458,066 A share Shanghai Automotive Co., Ltd. 13,019,610 A share Harvest Environmental Protection 8,188,983 A share Low Carbon Stock Investment Fund Central Huijin Investment Ltd. 7,186,600 A share National Social Security Fund 602 6,488,864 A share Portfolio JPMBLSA RE FTIF TEMPLETON 5,848,450 B share CHINA FUND GTI 5497 GAOLING FUND, L.P. 5,453,086 B share AEGON Social Responsibility Hybrid 5,128,264 A share Securities Investment Fund 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 §3 Major Events 3.1 Causes and explanations on major changes of financial indicators of the reporting period □√Applicable □Not Applicable In the first quarter of 2019, JMC sold 65,105 vehicles in total, decreased by 2.01% compared with the same period last year, including 21,674 JMC-brand light trucks, 14,093 JMC-brand pickups, 7,437 JMC-brand light buses, 11,686 SUVs, 8,375 Ford-brand commercial vehicles, 180 heavy trucks and 1,660 CKDs. Revenue and net profit during the reporting period were RMB 6,506 million and RMB 25 million, decreased 0.39% and 83.62% respectively compared with the same period last year. In the first quarter of 2019, compared with the end of the previous year, contract liabilities decreased by RMB 77 million, down 28.81%, mainly reflecting that the Company pre-charge the payment for vehicles, components and service, part of which has been categorized to operating revenue of the period In the first quarter of 2019, compared with the same period last year, distribution costs increased by RMB 128 million, up 68.29%, mainly reflecting the marketing expense increase for Territory launch. In the first quarter of 2019, compared with the same period last year, finance income decreased RMB 29.7 million, down 49.13%, primarily reflecting the interest decrease due to cash decrease after special dividend payment in 2018 Q1. In the first quarter of 2019, compared with the same period last year, operating profit decreased by RMB 135 million, down 119.43%; profit before income tax decreased by RMB 165 million, down 95.67%, primarily reflecting the volume decrease and sales structure change as well as marketing expense increase for Territory launch. In the first quarter of 2019, compared with the same period last year, income tax expense decreased by RMB 36 million, down 196.50%, mainly due to the profit decrease of this period. In the first quarter of 2019, compared with the same period last year, net cash 4 outflow from operating activities decreased by RMB 1,206 million, down 86.31%, mainly due to account payable decreased. In the first quarter of 2019, compared with the same period last year, net cash outflow from investing activities increased by RMB 797 million, up 432.24%, mainly reflecting the purchase of monetary fund by part of the Company’s own idle fund and cash payment increase for fixed assets purchase. In the first quarter of 2019, compared with the same period last year, net cash outflow from financing activities decreased by RMB 1,590 million, down 99.99%, mainly reflecting the 2017 mid-term special dividend paid in 2018 Q1. 3.2 Analysis of major events, their impacts and resolutions □Applicable □√Not Applicable 3.3 Commitments of the Company actual controlling party, the shareholders, the related parties, the acquirer, or the Company □Applicable □√Not Applicable 3.4 Forecast on 2019 first half-year 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. 3.8. Outside guarantee in breach of laws & regulations □Applicable □√Not Applicable There was no outside guarantee in breach of laws & regulations during the 5 reporting period. 3.9 Non-operating funding in the Company occupied by controlling shareholder and its affiliates □Applicable □√Not Applicable 6 §4 Financial Statements Jiangling Motors Corporation, Ltd. Consolidated Balance Sheet March 31, 2019 (All amounts in RMB thousands unless otherwise stated) 31 March 2019* 31 December 2018 Assets Non-current assets Property, plant and equipment 6,905,562 6,941,292 Lease prepayment 597,367 601,260 Intangible assets 232,732 246,026 Deferred income tax assets 760,624 743,096 Investments accounted for using the equity method 40,052 40,112 Total non-current assets 8,536,337 8,571,786 Current assets Inventories 2,108,237 2,522,354 Trade and other receivables and prepayments 4,123,365 4,678,284 Derivative financial instruments - 979 Financial assets at fair value through profit or loss 606,160 - Financial assets at fair value through other 342,839 6,246 comprehensive income Cash and cash equivalents 6,444,265 7,616,880 Total current assets 13,624,866 14,824,743 Total assets 22,161,203 23,396,529 Equity Share capital 863,214 863,214 Share premium 816,609 816,609 Other reserves 447,472 447,472 Retained earnings 8,282,361 8,257,203 Total equity 10,409,656 10,384,498 Liabilities Non-current liabilities Contract liabilities 37,859 38,382 Borrowings 3,528 3,595 Deferred income tax liabilities 25,851 26,024 Retirement benefit obligations 62,016 63,425 Provisions for statutory warranty 152,540 151,492 Other non-current liabilities 60,139 60,160 Total non-current liabilities 341,933 343,078 7 Consolidated Balance Sheet (continued) March 31, 2019 (All amounts in RMB thousands unless otherwise stated) 31 March 2019* 31 December 2018 Current liabilities Trade and other payables 11,011,786 12,195,966 Contract liabilities 189,874 266,702 Current income tax liabilities 175 179 Borrowings 441 449 Derivative financial instruments. 9,300 - Retirement benefit obligations 4,595 4,595 Provisions for statutory warranty 193,443 201,062 Total current liabilities 11,409,614 12,668,953 Total liabilities 11,751,547 13,012,031 Total equity and liabilities 22,161,203 23,396,529 * Unaudited financial indexes 8 Jiangling Motors Corporation, Ltd. Consolidated Income Statement 2019 First Quarter (All amounts in RMB thousands unless otherwise stated) 2019 first quarter* 2018 first quarter* Revenue from contracts with customers 6,506,386 6,481,073 Taxes and surcharges (179,765) (183,607) Cost of sales (5,601,574) (5,603,281) Gross profit 725,047 694,185 Distribution costs (315,748) (187,621) Administrative expenses (555,129) (498,598) Net expected credit losses on financial assets 697 1,600 Other income 123,193 103,349 Operating (loss)/profit (21,940) 112,915 Finance income 30,793 60,534 Finance costs (1,341) (2,178) Finance income -net 29,452 58,356 Share of profit of investments accounted for using the equity method (60) 683 Profit before income tax 7,452 171,954 Income tax credit/(expense) 17,706 (18,348) Profit for the period 25,158 153,606 Profit attribute to: Shareholders of the Company 25,158 153,606 Total comprehensive income for the period 25,158 153,606 Total comprehensive income attributable to: Shareholders of the Company 25,158 153,606 Earnings per share for profit attributable to the shareholders of the Company for the period (expressed in RMB per share) - Basic and diluted 0.03 0.18 *: Unaudited financial indexes 9 Jiangling Motors Corporation, Ltd. Consolidated Cash Flow Statement 2019 First Quarter (All amounts in RMB thousands unless otherwise stated) 2019 first quarter* 2018 first quarter* Cash flows from operating activities Cash generated from operations (191,280) (1,282,311) Interest paid (120) (120) Income Tax paid - (114,906) Net cash outflow from operating activities (191,400) (1,397,337) Cash flows from investing activities Purchase of property, plant and equipment (“PPE”) (406,146) (224,007) Purchase of financial assets at fair value through profit or loss (3,900,000) (1,170,000) Other cash paid relating to investment activities (5,298) (5,829) Proceeds from disposal of PPE 232 65 Proceeds from repayment of financial assets at fair value through profit or loss 3,300,000 1,170,000 Investment income from financial assets at fair value through profit or loss 5,739 1,562 Interest received 22,954 43,119 Other cash received from investing activities 1,304 733 Net cash outflow from investing activities (981,215) (184,357) Cash flows from financing activities Dividends paid to shareholders of the Company - (1,588,924) Other cash paid relating to financing activities - (1,105) Net cash outflow from financing activities - (1,590,029) Net decrease in cash and cash equivalents (1,172,615) (3,171,723) Cash and cash equivalents at beginning of year 7,616,880 11,137,723 Effects of exchange rate changes - - Cash and cash equivalents at end of period 6,444,265 7,966,000 * Unaudited financial indexes Board of Directors Jiangling Motors Corporation, Ltd. April 25, 2019 10