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公司公告

江 铃B:2021年年度报告(英文版)2022-03-30  

                        Jiangling Motors Corporation, Ltd.




       2021 Annual Report
               2022-03




                                 1
Chapter I Important Notes, Contents and Abbreviations

Important Note
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.

Chairman Qiu Tiangao, CFO Joey Zhu and Chief of Finance Department, Ding Ni,
confirm that the Financial Statements in this Annual Report are truthful and
complete.

All Directors were present at the Board meeting to review this Annual Report.

The year 2021 profit distribution proposal approved by the Board of Directors is
as follows:

A cash dividend of RMB 2.66(including tax) will be distributed for every 10 shares
held based on the total share capital of 863,214,000 shares, and there is no
stock dividend. The Board decided not to convert capital reserve to share capital
this time.




                                                                                 2
                                           Contents

Chapter I      Important Notes, Contents and Abbreviations .......................... 2
Chapter II     Brief Introduction and Operating Highlight ................................ 5
Chapter III    Management Discussion and Analysis ..................................... 10
Chapter IV     Corporate Governance Structure .............................................. 30
Chapter V      Environment and Social Responsibilities ................................. 59
Chapter VI     Major events ................................................................................ 63
Chapter VII    Share Capital Changes & Shareholders.................................... 69
Chapter VIII   Preferred Shares ........................................................................ 74
Chapter IX     Bond related Information .......................................................... 75
Chapter X      Financial Statements ................................................................. 76




                                                                                                             3
                 Catalog on Documents for Reference
1. Originals of 2021financial statements signed by legal representative, Chief
   Financial Officer and Chief of Finance Department.
2. Originals of the Independent Auditor’s Reports signed by Independent
   accountants and stamped by the accounting firm.
3. Originals of all the documents and public announcements disclosed in
   newspapers designated by CSRC in 2021.
4. The Annual Report in the China GAAP.



Abbreviations:
JMC or the Company                Jiangling Motors Corporation, Ltd.
JIC                               Nanchang Jiangling Investment Co., Ltd.
Ford                              Ford Motor Company
CSRC                              China Securities Regulatory Commission
JMCG                              Jiangling Motors Group Co., Ltd.
JMCH                              JMC Heavy Duty Vehicle Co., Ltd.
EVP                               Executive Vice President
CFO                               Chief Financial Officer
VP                                Vice President




                                                                                 4
Chapter II Brief Introduction and Operating Highlight

1. Company’s Information

Share’s name            Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing         Shenzhen Stock Exchange
Company’s Chinese
                         江铃汽车股份有限公司
name
English name             Jiangling Motors Corporation, Ltd.
Abbreviation             JMC
Company legal
                         Qiu Tiangao
representative
                         No. 2111, Yingbin Middle Avenue, Nanchang County,
Registered Address
                         Nanchang City, Jiangxi Province, P.R.C
Postal Code of
                         330200
Registered Address
                      Due to the relocation of JMC’s Qingyunpu site, the original
                      registered address " No. 509, Northern Yingbin Avenue,
Changes of Registered
                      Nanchang City, Jiangxi Province" was changed to "No.2111,
Address
                      Yingbin Middle Avenue, Nanchang County, Nanchang City,
                      Jiangxi Province" in October 2021.
                      No. 2111, Yingbin Middle Avenue, Nanchang County,
Headquarters Address
                      Nanchang City, Jiangxi Province, P.R.C
Postal Code of
                      330200
Headquarters Address
Website               http://www.jmc.com.cn
E-mail                relations@jmc.com.cn

2. Contact Person and Method

                         Board Secretary               Securities Affairs Representative
Name          Xu Lanfeng                            Quan Shi
              No. 2111, Yingbin Middle Avenue,      No. 2111, Yingbin Middle Avenue,
Address       Nanchang County, Nanchang City,       Nanchang County, Nanchang City,
              Jiangxi Province, P.R.C               Jiangxi Province, P.R.C
Tel           86-791-85266178                       86-791-85266178
Fax           86-791-85232839                       86-791-85232839
E-mail        relations@jmc.com.cn                  relations@jmc.com.cn

3. Information Disclosure and Place for Achieving Annual Report

Stock Exchange Website for
                                    http://www.szse.cn
Publication of JMC’s Annual Report
Newspapers and Website for          China Securities, Securities Times, Hong Kong


                                                                                5
 Publication of JMC’s Annual Report Commercial Daily, cninfo (http://www.cninfo.com.cn)
                                     Securities Department, Jiangling Motors
 Place for Achieving Annual Report
                                     Corporation, Ltd.

4. Changes of Registration

 Organization Code            913600006124469438
 Changes in the Main
                              No change.
 Business since the Listing
                              On December 1, 1993, JMC A shares were listed on
                              Shenzhen Stock Exchange, while JMCG, the founder-
                              member, was the controlling shareholder of the Company.
                              On September 29, 1995 and November 12, 1998, JMC
                              issued additional 344 million B shares totally, while, after the
                              additional B share issuance, JMCG and Ford were the
                              controlling shareholders of the Company. On December 8,
                              2005, the 354.176 million JMC shares held by JMCG, the
                              former controlling shareholder, were transferred to Jiangling
 Changes of Controlling
                              Motor Holdings Co., Ltd. After the transference, Jiangling
 Shareholders
                              Motor Holdings Co., Ltd. and Ford were the controlling
                              shareholders of the Company.
                              In 2019, Jiangling Motor Holdings Co., Ltd., the former
                              controlling shareholder, was divided and separated into
                              Jangling Motor Holdings Co., Ltd. and Nanchang Jiangling
                              Investment Co., Ltd., and transferred the 354.176 million
                              JMC shares it held to Nanchang Jiangling Investment Co.,
                              Ltd. Presently, Nanchang Jiangling Investment Co., Ltd. and
                              Ford are the controlling shareholders of the Company.

5. Other Information

Accounting Firm Appointed by JMC for Audit
                        PricewaterhouseCoopers Zhong Tian LLP
 Name
                        (‘PwC Zhong Tian’)
                        11/F, PricewaterhouseCoopers Center Link Square 2,202 Hu
 Headquarters Address
                        Bin Road, Huangpu District, Shanghai 200021, PRC
 Names of Signed
                        Lei Fang, Ye Dan
 Accountants

The recommendation agency engaged by the Company executing the persistent
supervision responsibilities in the reporting period
□Applicable □√Not Applicable

The financial consultant engaged by the Company performing the duties of
persistent supervision and guidance in the reporting period
□Applicable □√Not Applicable

                                                                                  6
          6. Main accounting data and financial ratios
                                                                                    Unit: RMB
                                                                          Change
                                    2021                   2020                              2019
                                                                           (%)
Revenue                         35,221,306,472        33,095,733,665        6.42%       29,173,636,262
Profit Attributable to the
Equity Holders of the              574,165,944            550,698,958      4.26%            147,812,078
Company
Net Profit Attributable to
Shareholders of Listed
Company After Deducting              29,628,811           405,188,533     -92.69%           -308,254,449
Non-Recurring Profit or
Loss
Net Cash Generated From
                                 1,760,193,010           3,698,342,828    -52.41%          2,736,867,238
Operating Activities
Basic Earnings Per Share
                                            0.67                   0.64    4.26%                     0.17
(RMB)
Diluted Earnings Per
                                            0.67                   0.64    4.26%                     0.17
Share (RMB)
Weighted Average Return
                                           5.87%                  5.13%    0.74%                    1.42%
on Equity Ratio
                                                                          Change
                              End of Year 2021     End of Year2020                   End of Year 2019
                                                                           (%)

Total Assets                    26,359,084,120        28,185,185,418       -6.48%       24,298,528,593

Shareholders’ Equity
Attributable to the Equity         8,555,444,589      10,986,474,009      -22.13%      10,496,563,781
Holders of the Company
           The lower of the Company’s net profit before and after deduction of non-recurring
           gains and losses in the most recent three fiscal years is negative, and the audit
           report of the most recent year shows that the Company’s ability to continue
           operations is uncertain
           □Yes □√No

          The lower of the net profit before and after non-recurring gains and losses is
          negative
          □Yes □√No

          7. Accounting data difference between China GAAP and IFRS

          I. Differences in net profit and net assets in financial statements between in
          accordance with international accounting standards and Chinese accounting
          standards


                                                                                              7
         □Applicable □√Not Applicable

         II. Differences in net profit and net assets in financial statements betweenin
         accordance with overseas accounting standards and Chinese accounting
         standards
         □Applicable □√Not Applicable

         8. Main accounting data quarterly
                                                                            Unit: RMB
                                      Q1            Q2            Q3             Q4
     Revenue                     8,041,295,685 9,634,325,403 7,815,433,165 9,730,252,219
     Profit Attributable to the
     Equity Holders of the         277,530,327   127,683,728     72,235,853      96,716,036
     Company
     Net Profit Attributable to
     Shareholders of Listed
     Company After                 150,125,194   -36,283,319     75,550,360 -159,763,424
     Deducting Non-
     Recurring Profit or Loss
     Net Cash Generated
     From Operating             -2,012,581,942 2,082,499,791 -523,738,971 2,214,014,132
     Activities
         Whether or not the above mentioned financial indicators and the total number of
         the company has disclosed the major difference between quarterly reports and
         semi-annual report
         □Yes □√No

         9. Non-recurring profit and loss items and amounts
         □√Applicable □Not Applicable
                                                                                 Unit: RMB
                                                                2021         2020         2019
Profit and loss of non-current assets disposal (including       5,107,814 -167,780,780   -4,212,722
the charge-off part of the asset impairment provision)
Gains on disposal of long-term equity investments              52,133,307           -           -
Government subsidies included in the current profit and       552,831,370 277,756,664 466,818,134
loss
Capital occupation fee charged for non-financial               15,836,668    7,628,722   10,877,889
enterprises included in the current profit and loss
In addition to the effective hedging business related to      -16,082,076   76,150,461   36,773,734
the normal operating business of the Company, holding
the gains and losses of fair value changes arising from
trading financial assets and trading financial liabilities,
as well as the investment income obtained from the
disposal of trading financial assets, trading financial
liabilities and available for sale financial assets


                                                                                          8
Return of the impairment provision for receivables with      2,250,000      6,540,000                 -
a separate impairment test
Other non-operating income and expenses except the           2,027,076      5,869,080          -940,331
above
Other profit and loss items that meet the definition of    18,765,020     -10,493,560                 -
non-recurring profit and loss
Less: Income tax impact amount                             88,332,046 50,160,162 53,250,177
Total                                                     544,537,133 145,510,425 456,066,527
         Details of other profit and loss items that meet the definition of non-recurring
         profit and loss
         □Applicable □√Not Applicable
         There is no any other profit and loss items that meet the definition of non-
         recurring profit and loss in the Company.
         The description of that the non-recurring profit and loss items listed in Corporate
         Information Disclosure of Public Issuing Securities No.1 are defined as recurring
         profit and loss items
         □Applicable □√Not Applicable
         The Company does not have a situation in which the non-recurring profit and loss
         items listed in No.1 of Corporate Information Disclosure Announcement No.1 are
         defined as recurring profit and loss.




                                                                                           9
Chapter III           Management Discussion and Analysis

1. The industry situation of the company during the reporting period
Looking back to 2021, affected by economic recovery, industry prosperity, dual
carbon targets, the overall market bottomed out and rebounded, showing a trend
of high before and low after.

The overall market: the total sales volume of the whole year was 26,275,000
units, with a year-on-year growth of 3.8%. Influenced by economic recovery,
industry prosperity and dual carbon target, the control of the epidemic provided a
guarantee for the recovery of the auto market, but attention should also be paid
to the adverse factors such as chip shortage and rising raw material prices.

Commercial vehicle market: the annual sales volume of commercial vehicles was
4,793,000 units, down 6.6% year on year (among which, the cumulative sales
volume of light commercial vehicles was 3,189,000 units, down 0.6% year on
year), mainly affected by the overdraft of Stage VI switch and the overload
control, etc.

Passenger vehicle market: in the whole year, passenger vehicles showed
recovery growth, with the sales volume of 21,482,000 units, up 6.5% year-on-
year (among which, SUV totalled 10,101,000 units, with the highest growth rate
of 6.8%).

New energy vehicle market: the annual sales volume of new energy vehicles was
3,521,000 units, up 157.5% year on year, and the penetration rate increased to
13.4%, while the monthly penetration rate in December was close to 20%. The
overall new energy vehicle market was further shifted from policy-driven to
market-driven.

The commercial vehicle segment light bus that JMC is in, driven by double cycle,
E-commerce, the rapid development of boutique tourism and customized
passenger transport, will further promote the sales of this segment. In the future,
with the gradual liberalization of urban traffic restriction policy, people's pursuit of
a better life and the development of modern agriculture will further release the
demand for Pickup trucks. With the promotion of the dual carbon target, the rise
of green distribution, the construction of new urbanization and urban circle, the
structural freight demand will be further enlarged, which will be a stimulating
factor for the development of light truck market. With the continuous
improvement of people's income level and the personalized demand of the Z era
consumer group, the SUV market with high cost performance will continue to
grow. The market segment that JMC is in will be further developed in the future,
and continue to open up incremental space.

2. Company’s Core Business during the Reporting Period


                                                                                     10
During the reporting period, the Company's main business is the production and
sale of commercial vehicles, SUVs and related components. The main products
include JMC light truck, Pickup, light bus, Yusheng SUV, Ford-branded light bus,
MPV and other commercial vehicles and SUV products. JMC also produces
engines, castings and other components. The Company takes high quality
development as the main line, focuses on value, lean operation, and transforms
from scale expansion development to lean value growth.

In 2021, JMC continued to expand the technical reservation and investment in
new products, smart connectivity, new energy and light weight, etc. Based on
vehicle, JMC developed autonomous driving and smart connectivity functions
and achieved more function expansion through the third space with vehicle as
the carrier. At the same time, JMC strengthens the construction of digitalization
operation capability, thus entering such key value fields as network socialization
and financial payment, etc., forming massive ecological circle and presenting
excellent overall performance in the industry.

Vehicle manufacturing and operation
□√Applicable □Not Applicable

Production and Sales Volume Information

                     Production Volume (Unit)                Sales Volume (Unit)
                                         YOY                                   YOY
                  2021 FY    2020 FY    change          2021 FY 2020 FY      change
                                          (%)                                    (%)
By Products
Light Bus           100,168      94,945        5.50%      101,516     92,994          9.16%
Truck               118,117     128,949       -8.40%      118,105    128,875         -8.36%
Pickup               68,268      66,209        3.11%       67,906     65,204          4.14%
SUV                  53,096      46,212       14.90%       53,481     44,025         21.48%
Total               339,649     336,315        0.99%      341,008    331,098          2.99%
By Region
China               339,649     336,315        0.99%      341,008    331,098         2.99%

Explanation on the above 30% year-on-year change of related date.
□Applicable □√Not Applicable

Component Kit System Construction
JMC owns in-house R&D and manufacturing capability for key components, with
such important components as engine, body parts, frame, wheel and front axle,
etc. developed and manufactured independently. For some other key
components, JMC keeps strategic cooperation with industry leading suppliers,
e.g. Bosch, Garrett, Yunnei Power, and ZF. JMC has established strategic
cooperation with such leading enterprises as CATL and Suzhou Inovance on
new energy development. For smart connectivity, JMC conducted diversified

                                                                                11
cooperation with such giants as Tencent, Hengrun, IFLYtek and Desay SV, etc.
for ecology development. JMC takes enabling customers successful as the vision,
and works with suppliers on providing customer-centric vehicle experience and
creating sustainable swift supply system. Through innovative thinking and
digitalized means, JMC established complete supplier admission, capability
enhancement and supplier control mechanism from the perspectives of
technology, quality, cost, delivery and service, etc., so as to effectively promote
the competitiveness improvement of supplier system.

Production and operation of auto parts during the reporting period
□Applicable □√Not Applicable
The Company carries out auto finance business
□Applicable □√Not Applicable
The Company carries out new energy vehicle related business
□√Applicable □Not Applicable

Production and operation of new energy vehicles and parts

                                             Production Sales Volume            Revenue
  Product Category        Capacity(Unit)
                                            Volume(Unit)    (Unit)               (RMB)
New Energy Bus                       50,000           190          186          32,817,563
Series
New Energy                           50,000              785             793 116,617,579
Passenger Vehicles
and Pickup
New Energy Truck                     30,000            1,427           1,178 159,171,122
                                    130,000            2,402           2,157 308,606,264
                      Note: all new energy
       Total          vehicles are collinear
                      with corresponding fuel
                      vehicles.

New energy vehicle Subsidy
JMCdid not receive new energy vehicle subsidy in 2021.

3. Core Competitiveness Analysis

JMC is a Sino-foreign joint venture auto company with R&D, manufacturing and
sales operations. With leading position and advanced technology of commercial
vehicles, JMC is a China auto industry pioneer providing excellent products and
solutions to smart logistics, and a provider of Ford value products.JMC also is
certificated as a national high-tech enterprise, national innovative pilot enterprise,
national enterprise technology center, national industrial design center, national
intellectual property demonstration enterprises and national automobile export
base. JMC has been ranking among the top 100 most valuable global brands for
consecutive years. JMC light buses ranked No.1 in the segment with 30.5%


                                                                                   12
market share. JMC Pickup ranked No.2 in the segment with 14.6% market share.
JMC light trucks ranked No.4 in the segment with 7.7% market share.

As No.1 brand in China, JMC light bus insists on taking customers as the center,
observes customer demand and light bus operation scenarios. JMC launched
European light bus product portfolio with high quality, excellent performance and
great cost performance, covering all scenarios of freight, passenger transport
and refitting. JMC is the pioneer in industry providing Uptime 100% solution,
continuing to help customers create value, thus achieving rapid growth of sales
volume. JMC’s light bus market share has been ranking No.1 in the segment for
consecutive seven years. Awarded the title of “Vehicle No.1 for Epidemic
Fighting”, JMC light bus continued to contribute to medical and health vehicles in
2021, developing a number of special vehicles such as nucleic acid sampling test
vehicle and Novel Coronavirus Nucleic acid testing mobile laboratory. JMC new
Transit negative pressure ambulance has also provided an important barrier for
the prevention and control of the epidemic around the Beijing Winter Olympics
and ensured the success of the Beijing Winter Olympics. As the flagship product
of the family, the new generation Transit Pro has up to 13 kinds of intelligent
driving auxiliary configurations. Equipped with iFLYTEK intelligent network
system, it makes driving more convenient and more enjoyable. Moreover,
"Uptime 100% solution" is used to meet users' 24-hour all-weather efficient
vehicle demand and service demand, leading the new era of digital light bus. As
a multi-functional light bus with No.1applicability, the new Transit is equipped
with Ward's global top ten engine, with the strongest boron steel body of light bus,
and the driving comfort of passenger car level, which can meet the diversified
use scenarios. Teshun is an economical light bus with No.1 cost performance. In
2021, Teshun Space King was launched with a great impact. Together with
freight head platform "Cargo Lala", Teshun showed its talents in the fast-winning
competition called “ceiling” of logistics competition and won high praise. JMC
light bus with strong brand strength and product strength, recognized by
mainstream authoritative media and official authorities, won a number of
authoritative awards, becoming the “grand slam” winner in light bus market.

JMC light truck has always been customer-oriented, with in-depth insight into
light truck operation scenarios, and constantly enriching product lines. In
response to the new blue license plate laws and regulations, lightweight iron and
aluminium containers were launched. Lightweight chassis and a series of weight
reduction measures were utilized on the new-generation light truck to enhance
product competitiveness.

As the leading brand in Pickup market, with the unremitting customer-centric
concept, JMC launched new Yuhu7 and Baodian products, creating Pickup life
mode with immersive experience. Yuhu7 possesses the highlights of strong
power, extraordinary quality, leading technology and fashionable life. In order to
expand the multiple application attributes of Pickup, to meet customers' higher
pursuit of fun in life, JMC launched the JFX Yuhu Life Family series activities.
Various activities interpreted Yuhu Life Family and enabled Pickup infinite

                                                                                 13
possibilities. Based on the customers’ use habits in various scenarios, Baodian
provides low dock model and flat container structure, which enables design more
practical, goods moving more energy saving and overall style more fashionable.

JMC continues to promote the construction of brand-new PV channels. In order
to further deepen the cooperation between both parties, and also to facilitate the
implementation of Ford China 2.0 strategy, the Company and Ford Motor
Company established the JMC Ford Automobile Technology (Shanghai) Co., Ltd
(hereinafter referred to as “JMC Ford Technology”). In 2021, there have been
175 Family Space Ford experience stores, covering over 150 cities in China.
JMC Ford Technology shall insist on the belief of challenger, adheres to Ford
brand spirit of pioneering and innovation, challenges tradition and disrupts itself,
strengthens technical innovative capability, and creates outstanding customer
experience with differentiation, rejuvenation, personalization and profession.

Ford Everest is a high-performance all-road SUV, equipped with 2.3T Ward
global top ten engine + Ford 10AT transmission, professional non-carrying
chassis, intelligent all-time four-wheel drive and TMS all-road management
system. Ford Equator is a cost-effective medium and large SUV, equipped with
more than 20 configurations of Co-Pilot360 Chi Hang driving assistance system,
dual 12.3 screen equipped with Tencent TAI 3.0 voice intelligent vehicle system,
AR real navigation, bringing intelligent technology cockpit experience. In 2021,
the export volume of Ford Territory surged by 106% year on year. Ford Territory
won high recognition from overseas consumers, thus realizing the brand-new
layout of “in China, for China, for World”.

Ford Equator Sport, which is a new wide-body SUV pioneer with official orders
kicked off in 2022, not only adopts new Ford potential aesthetics with Mobileye
autonomous driving chip, but also leads the peers in hashrate, autonomous
driving and smart cabin, displaying the highly potential starting of JMC Ford
Technology, and providing the confidence to the new power of auto technology
company.

4. Core Business Analysis

I. Summary

2021 is still not free from the impact of the epidemic, but the entire automotive
industry is still tenacious forward. Looking back at the auto market in 2021, due
to the lack of chip, auto manufacturer reduced production volume, and
technology companies were optimistic about the auto market, so scrambled to
manufacture vehicles. The auto market strived to recover and grow in the face of
multiple challenges. In 2021, 26,275,000 vehicles were sold in China, up 3.8%
year-on-year.

During the reporting period, in order to respond to the intensified competition,
stricter homologation requirement and cost increase, JMC has been dedicated in

                                                                                  14
      improving the product quality, promoting new product development, controlling
      operation cost and enhancing production efficiency. At the same time, JMC
      launched a series of marketing proposals to actively cope with market risks. In
      2021, JMC achieved sales volume of 341,008 units, including 101,516 light
      buses, 118,105 trucks, 67,906 Pickups and 53,481 SUVs, with YOY growth of
      2.99%. In 2021, the total production volume was 339,649 units, including
      100,168 light buses, 118,117 trucks, 68,268 Pickups and 53,096 SUVs, with
      YOY increase of 0.99%.

      In 2021, the operation revenue reached RMB35.221 billion, up 6.42% year on
      year. The operation cost was RMB 30.117 billion, up 9.44% year on year. The
      marketing expense was RMB1.532 billion, with YOY decrease of 0.84%. The
      administration expense was RMB1.152 billion, up 13.82% year over year. R&D
      cost was RMB 1.709 billion, up 27.18% year on year. The financial expense was
      RMB -296 million, down by 49.70% year over year.

      In 2021, JMC planned the productivity of 320,000 units and the utilization rate
      was 106%. In 2021, the investment in Fushan Plant project was RMB 345 million,
      with 63% of the project completed.

      II. Revenue and Cost

      (a) Composition of Sales Revenue

                                                                     Unit: RMB
                               2021 FY                 2020 FY              YOY
                                      Proportion              Proportion change
                          Amount                  Amount
                                         (%)                     (%)        (%)
Revenue                35,221,306,472     100% 33,095,733,665     100%       6.42%
By Industry
Automobile Industry    35,221,306,472       100% 33,095,733,665          100%       6.42%
By Products
Vehicle                32,317,182,099     91.75% 30,666,834,098        92.66%        5.38%
Components              2,101,505,690      5.97% 1,774,007,492          5.36%       18.46%
Automobile                111,360,531      0.32%     94,435,844         0.29%       17.92%
Maintenance Services
Material & Others         691,258,152       1.96%      560,456,231      1.69%       23.34%
By Region
China                  35,221,306,472       100% 33,095,733,665          100%       6.42%
Sales model
Distribution           33,828,173,736     96.04% 31,731,165,121        95.88%       6.61%
Direct selling          1,393,132,736      3.96% 1,364,568,544          4.12%       2.09%

      (b) Reach to 10% of Revenue or Profit by Industry, Product, Region or Sales
           Model
      □√Applicable □Not Applicable

                                                                                     15
                                                                                Unit: RMB
                                                                   YOY                 YOY gross
                                                                            YOY Cost
                                                       Gross     turnover               margin
                    Turnover             Cost                                Change
                                                       Margin     change                change
                                                                              (%)
                                                                    (%)                 (points)
 By Industry
 Automobile       35,221,306,472    30,117,454,367     14.49%      6.42%         9.44%          -2.36%
 Industry
 By Products
 Vehicle          32,317,182,099    27,809,982,305     13.95%      5.38%         8.47%          -2.45%
By Region
 China            35,221,306,472    30,117,454,367     14.49%      6.42%         9.44%          -2.36%

           If the Company’s core business scope is adjusted during the reporting period, the
           Company’s core business data of last year need to be adjusted per the scope in
           this year
           □Applicable □√Not Applicable

           (c) Whether the Company’s Goods Revenue Higher Than Service Revenue
           □√Yes □No

               Industry           Item            Unit     2021        2020    Change (%)
                          Sales Volume             unit    341,008     331,098      2.99%
           Automobile     Production Volume        unit    339,649     336,315      0.99%
                          Inventory Volume         unit     10,188      11,821    -13.81%

           Explanation on YOY change of over 30%
           □Applicable □√Not Applicable

           (d) Execution of the Company’s Signed Major Sales Contracts and Major
               Purchase Contracts as of the Reporting Period
           □Applicable □√Not Applicable

           (e) Composition of Operating Cost

           Product categories
                                                                                  Unit: RMB
                          Item            2021 FY                       2020 FY
                                                                                                 YOY
Product                                           Proportion                     Proportion     Change
                                      Cost                           Cost
                                                     (%)                            (%)         (%)
Vehicle                   Cost 27,809,982,305        92.34% 25,638,598,860          93.17%       8.47%
Components                Cost 1,557,352,106          5.17% 1,250,772,343            4.54%      24.51%

                                                                                           16
Automobile           Cost        118,486,239        0.39%         95,282,459      0.35%     24.35%
Maintenance Services
Material & Others    Cost        631,633,717        2.10%        533,856,251      1.94%     18.32%


       (f) Whether the Consolidated Scope was Changed During the Reporting Period
       □√Yes □No

       The 60% equity of Taiyuan Jiangling Power Co., Ltd., a former wholly-owned
       subsidiary of the Company, has been transferred to Yunnan Yunnei Power
       Group Co., Ltd. in November 2021. "Taiyuan Jiangling Power Co., Ltd." has been
       renamed as "Shanxi Yunnei Power Co., Ltd.". After the equity transfer, Shanxi
       Yunnei Power Co., Ltd. was not included in the scope of the consolidated
       statement of the Company.

       In 2021, the Company and Ford Motor Company(“Ford”) subscribed to the capital
       contribution of RMB102 million and RMB 98 million respectively to set up
       Jiangling Ford Automobile Technology (Shanghai) Co., Ltd.("Jiangling Ford
       Technology”), the total registered capital subscribed amount to RMB200 million.
       The Company holds 51% of the shares of Jiangling Ford Technology and got the
       control of Jiangling Ford Technology’s Board of Shareholders and Directors.
       Jiangling Ford Technology is a subsidiary of the Company. As of December 31,
       2021, Jiangling Ford Technology completed the business registration while not in
       operation yet.

       (g) Major Change or Adjustment on Business, Products or Services During the
           Reporting Period
       □Applicable □√Not Applicable

       (h) Main Customers and Suppliers

             Main Customers

        Total sales value to top 5 customers(RMB)                       5,601,678,211.00
        Accounted for the proportion of JMC’s total annual turnover               15.90%
        Included related party transaction accounted for the
                                                                                     9.75%
        proportion of JMC’s total annual turnover

       Top 5 Customers
                                                                                  Percentage of
                                                                  Sales Value
        No.                Name of the Customer                                    JMC’s Total
                                                                     (RMB)
                                                                                  Turnover (%)
         1      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.    3,009,681,649           8.55%
         2      Zhejiang Jiangling Motors Sales Company           1,061,202,534           3.01%
         3      Chengli Special Automobile Co., Ltd.                560,588,462           1.59%
         4      Beijing Jinglingshun Auto Sales Company             545,373,013           1.55%

                                                                                       17
        Jiangxi JMCG Specialty Vehicles Sales              424,832,553                1.20%
  5
        Service Co., Ltd.
Total                                                    5,601,678,211            15.90%

Other introduction to main customers
□√Applicable □Not Applicable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and Jiangxi JMCG Specialty
Vehicles Sales Service Co., Ltd. are related parties of the Company.

Top 5 Suppliers:
Total purchase value from top 5 suppliers(RMB)                      4,890,214,576
Accounted for the proportion of JMC’s total annual purchase
                                                                            18.40%
amount
Included related party transaction accounted for the proportion of
                                                                            10.73%
JMC’s total annual purchase amount

                                                                      Percentage of
                                                    Purchase           JMC’s Total
No.              Name of the Supplier
                                                   Value (RMB)       Annual Purchase
                                                                       Amount (%)
        Bosch Auto Diesel System (Wuxi)           1,238,849,375                4.66%
  1
        Company
        Jiangxi Jiangling Special Purpose           985,020,418                  3.71%
  2
        Vehicle Co., Ltd.
        Nanchang Baojiang Steel Processing          967,549,307                  3.64%
  3
        Distribution Co., Ltd.
  4     Jiangxi Jiangling Chassis Co., Ltd.         898,433,987                  3.38%

  5     Bosch Powertrain Co., Ltd.                  800,361,489                  3.01%
Total                                             4,890,214,576              18.40%

Other introduction to main suppliers
□√Applicable □Not Applicable
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd., Nanchang Baojiang Steel
Processing Distribution Co., Ltd., and Jiangxi Jiangling Chassis Co., Ltd. are
related parties of the Company.

III. Expense
                                                                     Unit: RMB
                                                                      Description of
                                                               YOY
                                 2021            2020                    significant
                                                              Change
                                                                          Changes
Distribution Expenses        1,531,808,043    1,544,737,028      -0.84%
Administrative Expenses      1,152,218,590    1,012,347,173      13.82%


                                                                                 18
                                                                       mainly due to
                                                                       the interest
Finance Income-net           -295,755,557     -197,567,513      49.70% income from
                                                                       bank deposits
                                                                       increased.
R & D Expenses             1,709,014,171     1,343,812,092      27.18%

IV. Research & Development

                                                                           The expected
 Name of                                                                   impact on the
                                                          Goals to be
 main R&D     Project purpose       Project progress                         Company's
                                                           achieved
  project                                                                      future
                                                                            development
                                  Equator was launched
              Enhance the         in March 2021,
                                                         Increase the
              competitiveness     Equator Sport was
PV product                                               Company's
              of Jiangling Ford   launched in January
program                                                  operating
              passenger           2022, and the other
                                                         revenue.
              vehicle products.   PV products are in
                                  progress.
              Enhance the                                Increase the
Light bus
              competitiveness                            Company's
product                       In progress.
              of light bus                               operating
program
              products.                                  revenue.
              Enhance the                                Increase the
Light truck
              competitiveness                            Company's
product                       In progress.
              of light truck                             operating
program
              products.                                  revenue.
              Enhance the                                Increase the
Pickup
              competitiveness                            Company's
product                       In progress.
              of pickup                                  operating
program
              products.                                  revenue.

Company R & D personnel
                                                2021             2020      Change(%)
R&D staff (person)                                   2,315           2,393     -3.26%
R&D staff as % of total employees                 17.90%           17.73%       0.17%
Educational structure of R&D personnel          ——             ——        ——
Undergraduate                                        1,609           1,646     -2.20%
Master                                                 559             593     -5.70%

Age composition of R&D personnel                ——             ——           ——
Under the age of 30                                      602              816   -26.20%
30 ~ 40 years old                                      1,382            1,278     8.10%


                                                                                19
R&D Investment
                                                2021          2020      Change(%)
R&D investment (RMB)                        1,886,139,707 1,664,559,872     13.31%
R&D investment as % of revenue                     5.36%         5.03%       0.33%
Capitalization of R&D investment              177,125,536 320,747,780      -44.78%
Capitalization of R&D investment as % of
                                                      9.39%         19.27%       -9.88%
R&D investment

Causes and impacts of major changes in the composition of R&D personnel
□Applicable □√Not Applicable

Major change of R&D investment as % of revenue
□Applicable □√Not Applicable

Major change of capitalization of R & D investment
□√Applicable □Not Applicable
Reason of the change is due to the decrease in the amount of R&D investment
eligible for capitalization in this year.

V. Cash Flow Analysis
                                                                        Unit: RMB
                                                                               Change
                  Item                         2021               2020
                                                                                 (%)
Cash received from operating activities    39,740,902,264     35,570,910,131     11.72%
Cash outflows from operating activities    37,980,709,254     31,872,567,303     19.16%
Net cash flows from operating activities    1,760,193,010      3,698,342,828    -52.41%
Cash received from investing activities     2,915,954,321     15,608,879,156    -81.32%
Cash outflows from investing activities     2,994,592,220     17,522,317,586    -82.91%
Net cash flows from investing activities      -78,637,899     -1,913,438,430     95.89%
Cash received from financing activities     1,484,497,639      2,291,211,222    -35.21%
Cash outflows from financing activities     4,718,956,565      1,892,097,149 149.40%
Net cash flows from financing activities   -3,234,458,926        399,114,073 -910.41%
Net increase/(decrease) in cash and
                                           -1,552,903,815      2,184,018,471   -171.10%
cash equivalents


Explanation on the major factors regarding major change of related data
□√Applicable □Not Applicable

Year on year decrease of the net cash flow generated by operating activities was
due to the increase in payment for goods purchased.
.
Year on year increase of the net cash flow from investment activities was mainly
due to the reduced cash payments on current investments.




                                                                                20
         Year on year decrease of the net cash flow from financing activities was mainly
         due to the reduction in the current loan and the payment of 2020 annual
         dividends.
         .
         Year on year decrease of the net increase in cash and cash equivalents was
         mainly attributable to the payment of 2020 annual dividends.

         Explanation on significant difference between net cash generated from operating
         activities and net profit during the reporting period.
         □Applicable □√Not Applicable

         5. Non- core business analysis
         □Applicable □√Not Applicable

         6. Analysis of Assets and Liabilities
         I. Major changes
                                                                                   Unit: RMB
                                                                                            YOY
                               End of 2021                   Beginning of 2021            Proportion
   Asset item
                                                                                           change
                             Amount        Proportion        Amount          Proportion    (Points)
Cash and cash
                         9,569,051,314        36.30%       11,121,955,129       39.46%       -3.16%
equivalents
Accounts
                         2,994,798,227        11.36%        2,999,883,212       10.64%           0.72%
receivables
Inventories              1,974,728,632          7.49%       2,086,605,692        7.40%           0.09%
Long-term equity
                           257,251,255          0.98%          39,496,548        0.14%           0.84%
investments
Fixed assets             6,029,302,031        22.87%        5,165,956,410       18.33%           4.54%
Construction in
                           448,338,672          1.70%       1,535,497,770        5.45%       -3.75%
progress
Right-of-use
                           306,225,810          1.16%          28,405,890        0.10%           1.06%
assets
Short-term
                           300,000,000          1.14%         500,000,000        1.77%       -0.63%
borrowings
Contract
                           272,274,177          1.03%         558,526,846        1.98%       -0.95%
liabilities
Long-term
                              2,087,537         0.01%            2,563,666       0.01%               -
borrowings
Lease liabilities          263,409,414          1.00%          18,998,952        0.07%           0.93%
            Foreign assets account for a relatively high proportion
            □Applicable □√Not Applicable

         II. The fair value of the assets and liabilities.


                                                                                            21
                                                                                     Unit: RMB
                                     1.Trading
                                 financial assets
                    financial                       2.Receivables                    Financial
      Item                          (excluding                        Subtotal
                     assets                           financing                      liabilities
                                    derivative
                                financial assets)
Beginning of
                                    803,892,985      815,583,669    1,619,476,654     3,716,727
the period
Loss/profit in
fair value in the                     -3,650,656               0       -3,650,656     6,987,892
period
Cumulative
changes in fair
                                                0              0                 0                 0
value recorded
into equity
Impairment in
                                                0              0                 0                 0
the period
Purchase in the
                                  1,800,000,000     3,073,998,320   4,873,998,320                  0
period
Sell in the
                                  2,500,000,000     3,688,070,319   6,188,070,319                  0
period
Other changes                                   0              0                 0                 0
End of the
                                    100,242,329      201,511,670     301,753,999     10,704,619
period

   Other change
   None.

   Whether there is a significant change in the measurement attributes of the
   Company's main assets during the reporting period
   □Applicable √Not Applicable

   III. Restriction on Assets Rights as of the End of the Reporting Period
   There was no restriction on rights of major assets as of the end of the reporting
   period.

   7. Investment Analysis

   I. Summary
   □Applicable □√Not Applicable

   II. Obtained Major Equity Investment during the Reporting Period
   □√Applicable □Not Applicable




                                                                                               22
                                                                        Unit: RMB
Name of investee company     Jiangling Ford Motor Technology (Shanghai) Co.,
                             Ltd.
Main business                Engineering and technical research and
                             experimental development, sales of vehicles, new
                             energy vehicles, auto parts, electric accessories of
                             new energy vehicles, plug-in hybrid professional
                             engines, charging piles, centralized rapid charging
                             stations, new energy vehicles for electric facilities,
                             new energy vehicles production and testing
                             equipment; Technical consulting and business
                             information consulting in the field of automotive
                             science and technology; Economic information
                             consulting, marketing planning, corporate image
                             planning, etc.
Investment way               Establish a new company
Investment amount            102,000,000
Proportion of shareholding   51.00%
Investment source            Self-funded
Partner                      Ford Motor Company
Investment horizon           30 years
Product type                 Not applicable
Progress as of the balance   Business registration was completed on December
sheet date                   27,2021.
Expected earnings            -
Profit and loss of           Not yet in operation.
investment in the current
period
Whether litigation is        No
involved
Date of disclosure           September 27, 2021
Index                        The announcement (No. 2021-054) was published
                             on the website: www.cninfo.com.cn.

III. Ongoing Major Non-Equity Investment during the Reporting Period
□√Applicable □Not Applicable

Project Name                                                 Fushan Plant
Investment Method                                                 Self-built
Fixed Assets (Y/N)                                                       Y
Industry                                                Automobile Industry
Spending in 2021 (RMB)                                        345,225,886
Cumulative Actual Investment (RMB)                          1,388,435,757
Investment source                                              Self-funded
Progress                                                              95%


                                                                                 23
       Anticipated income                                                  -
       Accumulated earnings realized by the end of                         -
       the reporting period
       Reasons for missed schedule and projected              Not Applicable
       earnings
       Disclosure date                                   November 15th, 2017
       Index                                                               *
       *The announcement (No. 2017-044) was published on November 15, 2017 on
       the website: www.cninfo.com.cn.

       IV. Financial Assets Investment
       (a) Stock Investment
       □Applicable □√Not Applicable
       There was no financial assets investment on the reporting period.

       (b)Derivative Investment
       □Applicable □√Not Applicable
       There was no derivative investment on the reporting period.

       V. Usage of Raised Fund
       □Applicable □√Not Applicable
       There was no usage of raised fund on the reporting period.

       8. Sales of Major Assets and Equity
       I. Sale of Major Assets
       □Applicable □√Not Applicable
       There was no sale of major assets on the reporting period.

       II. Sales of Major Equity
       □√Applicable □Not Applicable

                         Yunnan Yunnei Power Group
Counterparty                                               Volvo Lastvagnar Aktiebolag
                         Co., Ltd.
                         60% equity of Taiyuan Jiangling   100% equity of JMC Heavy Duty
Sold equity              Power Co., Ltd., a wholly-owned   Vehicle Co., Ltd., a wholly
                         subsidiary                        owned subsidiary of JMC
Date of sale             November 5, 2021                  The deal is still in progress.
Transaction price
                         360,000                           781,400
(RMB thousand)
Net profit contributed
by the equity to the
listed company from                                        RMB -120,947.4thousand in
                         RMB -38,086.8thousand
the beginning of the                                       2021.
current period to the
selling date

                                                                                     24
                           Introduce external strategic
Impact of the sale on                                        One of the measures to achieve
                           partner to develop heavy engine
the Company                                                  the Company's strategic vision.
                           business.
Proportion of net
profit contributed by
equity sale to the total   9.08%                             The deal is still in progress.
net profit of the listed
company
Equity sale pricing
                           Public bidding process.           Public bidding process.
principle
Whether it is a related
                           No.                               No.
party transaction
Association with the
                           No relationship.                  No relationship.
counterparty
Whether all the equity
involved has been          Yes.                              No.
transferred
Whether the plan is
implemented as
scheduled, if not, the
                           Yes.                              Yes.
reason and the
measures taken by
the company
Date of disclosure         January 7, 2021                   August 24, 2021
                           The announcement (No. 2021-       The announcement (No. 2021-
Index                      002) was published on the         047) was published on the
                           website: www.cninfo.com.cn        website: www.cninfo.com.cn

        9. Analysis of major shareholding companies
        □√Applicable □Not Applicable
        Operating Results of Main Subsidiaries and Joint-Stock Companies whose
        impact on JMC’s net profit more than 10%
                                                                          Unit: RMB’000
                                     Jiangling Motors Sales    JMC Heavy Duty Vehicle
        Name of companies
                                     Corporation, Ltd          Co., Ltd.
        Type of companies            Subsidiary                Subsidiary
                                                               Production and sales of
                                     Sales of vehicles and
        Main business                                          automobiles, engines and
                                     service parts.
                                                               other automotive parts
        Registered capital                              50,000                 1,323,793
        Assets                                        4,898,230                     832,562
        Net assets                                     258,369                      792,043
        Turnover                                     30,749,374                          258


                                                                                              25
      Operating profit                                35,649                    -121,391
      Net profit                                      28,189                    -120,947

      Acquisition and disposal of the subsidiaries
      □√Applicable □Not Applicable

                         Acquisition and disposal
  Name of Companies                                                    Influence
                            of the subsidiaries
                        60% equity of Taiyuan          Introducing external strategic partner to
Taiyuan Jiangling Power Jiangling Power Co., Ltd.      develop heavy engine business. This
Co., Ltd.               was sold through public        transaction has no significantimpact on the
                        bidding process.               Company’s profit in the current period.
                                                       This external investment was invested by
                                                       the Company's own funds, and it is not
Jiangling Ford Motor                                   expected to have a significant adverse
                           JMC and Ford Motor
Technology (Shanghai) Company jointly invested.
Co., Ltd.                                              impact on the Company's financial position
                                                       and operating results in the current period
                                                       and future.
       Description of the main holding and participating companies
       None.

      10. Structured Entities Controlled by JMC
      □Applicable □√Not Applicable

      11. Outlook
      I. Industry Competition and Development Trend
      (I) Industry Trend
      Looking ahead to 2022, the economic growth will return to the potential rate with
      higher downturn pressure. It’s predicted that there will be more room for marco
      policy easing, which will form cross-cycle adjustment to the economy. There will
      be low growth before high growth in the whole year, with 5.5% growth rate. The
      tone of stabilizing growth is beneficial to the bulk commodity like automobile.

      The overall market: the annual sales volume was 27.5 million units, with YOY
      increase of 3%. The policy on stabilizing growth is conducive to the stable growth
      of bulk commodity.

      Commercial Vehicle market: the annual sales volume was 4.5 million units, with
      YOY decrease of 6%. The switch of emission homologation, the normalized
      advance of overload governance and the stricter environmental protection rules
      result in rationalization of CV market.

      Passenger Vehicle market: the annual sales volume was 23 million units, up 5.5%
      year on year. The restocking is expected to propel for sales volume rise.




                                                                                       26
New Energy Vehicle market: the annual sales volume was 5 million units, with
YOY growth of 56%. There are high supply and demand of NEVs, which shall
continue.

The economic growth rate was adjusted, and power was being switched. China’s
auto market ended a three-year decline. The trend of electrification, connectivity
and intelligence in auto industry has been established. JMC shall keep the
strategy firm, insist on taking customers as the center and optimize business
structure, with technology studied in depth, marketing service updated and
ecological cooperation deepened.

(II) Company Strategy
JMC adheres to the vision of Becoming Leader in LCV and Provider of Ford
Value Product, and the value of Integrity, Dedication, Innovation and
Collaboration. Commercial vehicle is targeted at becoming the integrated
supplier of product and service for urban and mainline logistics. Passenger
vehicle is to look for breakthrough and great development in medium and small
size market. JMC is to center around the main line of high-quality development,
focus on value and operation in a lean way, thus transforming from scale
expansion development mode to lean value growth mode. JMC will focus on key
business and be dedicated in its segments. With customer-centric concept and
improved all-value chain market awareness, JMC is to actively make its products
the leaders in segments. JMC is also following the new development trend of
auto industry, promoting the CASE strategy of Connectivity, Artificial, Sharing
and Electrification. JMC has planned for New Energy Vehicle, smart connectivity,
autonomous driving and other key area. Through overall coordination and CASE
integration, JMC accelerates to build the business ecology system with global
competitiveness that looks into the future.

(III) Operation Plan
In 2022, JMC is targeting at the sales volume of 380,000 units, with business
revenue of about RMB 39 billion, up 11% respectively year on year. In order to
improve the revenue and profitability, JMC is committed to the following in 2022:
i. to continue to consolidate and improve the leading advantages in LCV
     segment, to deepen LCV marketing system and dealer capability build, with
     brand reputation improved;
ii. through establishing a PV Joint Venture, to accelerating the expansion of PV
     business and channel capability improvement, with customer experience
     innovated, “JMC Ford” brand positioning specified and star product created;
iii. to insist on taking customers as the center, and deeply understands market
     changes and customer demands, with continuous innovation and efficient
     synergy, thus providing the best product and service to customers;
iv. to launch Ford Equator Sport, next-generation Teshun, new Transit SVO and
     brand-new light truck, etc., with high quality. And meanwhile, to improve
     product competitiveness and complete PV and LCV product line-up;



                                                                                27
v. to continue the promotion of digital transformation and improves customer
      experience with proactive digital service and predictive service system;
vi. to create the new business concept of “Lifelong Partner” and construct
      operation ecology with customized product and integrated service;
vii. to continue to reduce the cost and improve efficiency with lean management,
      and also to build efficient and swift team to lay solid foundation for the overall
      strategy development; and
viii. to expand the whole vehicle export and component sales.

(IV) Potential Risks and Solutions
In 2022, there are still repeated outbreaks of the epidemic in the world and also
uncertainties in the recovery and growth of world economy. Guided by the long-
term strategic planning of "double cycle" new development pattern, dual carbon
goals and common prosperity, China's economy is expected to start a round of
overall optimization of the demand structure, but it faces short-term economic
costs. With the rise of start-ups in vehicle manufacturing, and due to stricter
regulations, rising raw material prices and tight chip supply, the industry
competition is further intensified, which brings great challenges to the Company's
operation. In order to maintain robust development, JMC will focus on the
following:
i. JMC will continue to have a good control on epidemic and steadily promote
     the company’s production and sales;
ii. Being customer-centric, JMC will make in-depth insight into customer
     demands and market changes, with new business growth point identified and
     opportunities grasped in the disruptive industry;
iii. JMC is to accelerate the digital transformation and utilize digital marketing
     means to empower channel capability expansion with customer experience
     enhanced;
iv. JMC will complete CV BEV strategy and construct brand-new LCV ecology
     through the cooperation with leading logistic company / freight platform;
v. JMC will continue the cost reduction and efficiency improvement with supplier
     capability and vehicle quality improved;
vi. JMC is going to strengthen the Company governance and strictly abide by
     national laws and regulations with risk assessment and control mechanism
     completed; and
vii. JMC is to accelerate business process digitalization and increase operation
     efficiency by establishing swift work team.
The company will focus on LCV with SUV as the support. And meanwhile, JMC
is going to push for in-depth scientific innovation and continue to consolidate the
advantages of commercial vehicles, thus being strong in passenger vehicle. The
Company shall accelerate the development of new energy vehicles with focus on
marketing and service, and speed up the digital transformation of each function
so as to improve customer experience. By expanding new business and profit
mode, the Company is to construct the sustainable ecology platform. By
strengthening sales channel construction, JMC will enhance the market
reputation and customer experience. At the same time, JMC also focuses on new


                                                                                     28
product development and launch the competitive products with required quality
and cost target as soon as possible, thus expanding the market share and
profitability, supporting the Company’s high-quality development with stable cash
flow.

12. External Research, Communication, and Media Interview to the Company
□√Applicable □Not Applicable
             Date          Communication   Type of        Information
                              Method       Object        Discussed and
                                                        Materials offered
    April8, 2021           Other         Individual JMC Operating
                                         Investors highlights
    May 14, 2021           Other         Individual JMC Operating
                                         Investors highlights




                                                                                29
Chapter IV Corporate Governance Structure
1. Status of the Corporate Governance in JMC
During the reporting period, the Company strictly abided by the Company Law, the
Securities Law, the Code of Corporate Governance for Listed Companies in China,
the Rules Governing Listing of Stock on Shenzhen Stock Exchange, as well as
relevant laws and regulations, to carry out corporate governance activities and
continued to improve its corporate governance.

Whether there are significant differences between the actual situation of corporate
governance in the company and the laws, administrative regulations and that of
regulations on corporate governance of listed companies promulgated by CSRC
□Yes□√No
There is no significant difference between the actual situation of corporate
governance in JMC and the laws, administrative regulations and that of
regulations on corporate governance of listed companies promulgated by CSRC.

2. Separation between JMC and the Controlling Shareholders and actual controller
in respect of Personnel, Assets and Finance, and Independence concerning
Organization and Business:
(1) With respect to personnel matters, the positions of chairman and president are
held by different individuals; JMC’s senior management do not hold positions other
than director positions with its controlling shareholders; JMC senior management
personnel are paid by JMC; labor, personnel matters and compensation
management of JMC are completely independent.

(2) With respect to assets, JMC assets are complete. The assets utilized by JMC,
including production system, supporting production system and peripheral facilities,
and non-patent technology, are owned and/or controlled by JMC.

(3) With respect to finance, JMC has an independent finance department and
independent accounting system, and has a uniform and independent accounting
system and financial control system for its branches and subsidiaries. JMC has its
own bank accounts, and there are no bank accounts jointly owned by JMC and its
controlling shareholders. JMC pays taxes independently in accordance with
relevant laws.

(4) With respect to organization, JMC’s organization is independent, complete and
scientifically established with a sound and efficient operating mechanism. The
establishment and the operation of JMC’s corporate governance are strictly
carried out per the Articles of Association of JMC. Production and administrative
management are independent from the controlling shareholders. JMC has
established an organization structure that meets the need for ongoing
development.

(5) With respect to business, JMC has independent purchasing, production and
sales systems. The purchasing, production and sales of main materials and
products are carried out through its own purchasing, production & sales functions.
JMC is independent from the controlling shareholders in respect to its business,


                                                                                 30
and has independent and complete business and self-sufficient operating
capability.
3. Horizontal Competition
□Applicable □√Not Applicable
4 Introduction to the Shareholders’ Meetings Held in the Reporting Period
(1) Index to the Shareholders’ Meeting in the reporting period
In 2021, the Company has hold four Shareholders’ Meetings, and the relevant
contents are as follows:

Meeting 1:2021 First Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.92%
Convening date: January 25, 2021
Disclosure date: January 26, 2021
The meeting resolution: approved the proposal on the capital increase to JMC
Heavy Duty Vehicle Co., Ltd., a wholly owned subsidiary of JMC.

Meeting2:2021 Second Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.44%
Convening date: May 25, 2021
Disclosure date: May 26, 2021
The meeting resolution: approved the proposal on the sale of 100% of the equities
of JMC Heavy Duty Vehicle Co., Ltd., a wholly owned subsidiary of JMC, through
the public bidding process.

Meeting3:2020 Annual Shareholders’ Meeting
The meeting type: annual shareholders’ meeting
Investor participation ratio: 75.92%
Convening date: June 25, 2021
Disclosure date: June 26, 2021
The meeting resolutions:
1. approved the 2020 Work Report of the Board of Directors of JMC;
2. approved the 2020 Work Report of the Supervisory Board of JMC;
3. approved the 2020 Financial Statements of JMC;
4. approved the Proposal on JMC Profit Distribution for Year 2020;
5. approved the Proposal on Retaining PricewaterhouseCoopers Zhong Tian
    CPAs LLP as External Auditor from 2022 to 2024 with Annual Audit Fee of
    RMB 1.88 million;
6. approved the Proposal on Retaining PricewaterhouseCoopers Zhong Tian
    CPAs LLP as the C-Sox Auditor from 2022 to 2024 with Annual Audit Fee of
    RMB 440 thousand;
7. approved the Proposal on the Y2021 Routine Related Party Transaction
    Framework with JMCG Finance Company;
8. approved the Proposal on the Y2021 Routine Related Party Transaction
    Framework with Jiangling Motors Group Co., Ltd. and its subsidiaries;
9. approved the Proposal on the Y2021 Routine Related Party Transaction
    Framework with Ford Motor Company and its subsidiaries;



                                                                               31
10. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its
   subsidiaries;
11. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with China South Industries Group Corporation and its subsidiaries;
12. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with Jiangxi Huaxiang Auto Components Co., Ltd.;
13. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
14.approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with GETRAG (Jiangxi) Transmission Company;
15. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
16. approved the Proposal on the Y2021 Routine Related Party Transaction
   Framework with Nanchang Faurecia Emissions Control Technologies Co., Ltd.;
17. approved the Proposal on Electing Ms. Xiong Chunying as a Director of the
   Tenth Board of Directors of the Company.

Meeting 3:2021 Third Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.13%
Convening date: October 18, 2021
Disclosure date: October 19, 2021
The meeting resolutions:
1. approved the Proposal on Amendment to the Articles of Association of JMC
    (Year 2021);
2. approved the Proposal on Electing Mr. Yu Zhuoping as an Independent Director
    of the Tenth Board of Directors of JMC;
3. approved the Proposal on Electing Mr. Zhang Yangyang as a Supervisor of
    JMC;
4.01. approved the Proposal on Electing Mr. Yuan Mingxue as a Director of the
    Tenth Board of Directors of JMC;
4.02. approved the Proposal on Electing Mr. Ryan Anderson as a Director of the
    Tenth Board of Directors of JMC.

(2) Special Shareholders’ Meeting convened by preferred-shareholders whose
voting rights were restored
□Applicable □√Not Applicable

5.Directors, supervisors and senior managers
(1) Basic information
                                             Shares at                  Share Share
                                                the    Stock           Change s at
                      Gende       Term of                    restricte
 Name      Position         Age               period- option            in the    the
                        r          Office                     d stock
                                             beginnin    s             reportin period-
                                                 g                     g period end
                                2020.06.19
Qiu
          Chairman    Male   55 -                   0       0        0        0      0
Tiangao
                                2023.06.18
Manto     Vice                  2021.06.25
                      Male   59                     0       0        0        0      0
Wong      Chairman              -


                                                                                     32
                                   2023.06.18
                                   2021.10.18
Ryan
         Director       Male    48 -               0    0   0   0     0
Anderson
                                   2023.06.18
                                   2021.06.25
Xiong    Director &     Femal
                                57 -            1,200   0   0   0 1,200
Chunying President      e
                                   2023.06.18
                                   2020.06.19
Jin       Director &
                        Male    54 -               0    0   0   0     0
Wenhui    EVP
                                   2023.06.18
                                   2021.10.18
Yuan
          Director      Male    53 -               0    0   0   0     0
Mingxue
                                   2023.06.18
                                   2020.06.19
Chen      Independen
                     Male       42 -               0    0   0   0     0
Jiangfeng t Director
                                   2023.06.18
                                   2020.06.19
Wang      Independen Femal
                                43 -               0    0   0   0     0
Yue       t Director e
                                   2023.06.18
                                   2021.10.18
Yu       Independen
                    Male        61 -               0    0   0   0     0
Zhuoping t Director
                                   2023.06.18
                                   2020.06.19
          Chief
Xiao Hu                 Male    53 -               0    0   0   0     0
          supervisor
                                   2023.06.18
                                   2021.10.18
Zhang
         Supervisor     Male    45 -               0    0   0   0     0
Yangyang
                                   2023.06.18
                                   2020.06.19           0   0
Zhang
          Supervisor    Male    52 -              40            0    40
Jian
                                   2023.06.18
                                   2022.03.16
Ma Jian   Supervisor    Male    46 -               0    0   0   0     0
                                   2023.06.18
                                   2022.03.16
                        Femal
Li Yanling Supervisor           44 -               0    0   0   0     0
                        e
                                   2023.06.18
                                   2021.10.01
Joey Zhu CFO            Male    39 -               0    0   0   0     0
                                   2023.06.18
                                   2020.06.19
Ding
          VP            Male    49 -               0    0   0   0     0
Wenmin
                                   2023.06.18
                                   2021.02.01
Erik
        VP              Male    47 -               0    0   0   0     0
Hermann
                                   2023.06.18
                                   2020.06.19
Wu
          VP            Male    47 -               0    0   0   0     0
Xiaojun
                                   2023.06.18
                                   2021.04.01
Xu        VP &Board Femal
                                52 -               0    0   0   0     0
Lanfeng   Secretary e
                                   2023.06.18
                                   2020.06.19
Liu                     Femal
          VP                    59 -               0    0   0   0     0
Shuying                 e
                                   2023.06.18
                                   2020.08.01
Jerry Lin VP            Male    45                 0    0   0   0     0
                                   -


                                                                     33
                                   2023.06.18
                                   2021.04.01
Liu
           VP           Male    48 -            0    0   0   0   0
Rangpo
                                   2023.06.18
                                   2021.09.01
Xiang
         VP             Male    46 -            0    0   0   0   0
Dongping
                                   2023.06.18
                                   2021.10.01
Wu                      Femal
           VP                   45 -            0    0   0   0   0
Jiehong                 e
                                   2023.06.18
                                   2021.12.01
Yang
         VP             Male    41 -            0    0   0   0   0
Shenghua
                                   2023.06.18
                                   2020.06.19
Anning     Ex-Vice
                        Male    60 -            0    0   0   0   0
Chen       Chairman
                                   2021.06.25
                                   2020.06.19
Wan
         Ex-Director Male       56 -            0    0   0   0   0
Jianrong
                                   2021.10.18
Thomas                             2020.06.19
Peter      Ex-Director Male     44 -            0    0   0   0   0
Hilditch                           2021.10.18
                                   2020.06.19
Manto      Ex-
                        Male    59 -            0    0   0   0   0
Wong       President
                                   2021.06.25
           Ex-                     2020.06.19
Li Xianjun Independen Male      54 -            0    0   0   0   0
           t Director              2021.10.18
                                   2020.06.19
Alvin Qing Ex-
                        Male    64 -            0    0   0   0   0
Liu        Supervisor
                                   2021.10.18
                                   2020.06.19
Ding     Ex-
                        Male    52 -            20   0   0   0   20
Zhaoyang Supervisor
                                   2022.03.15
                                   2020.06.19
Chen       Ex-
                        Male    48 -            0    0   0   0   0
Guang      Supervisor
                                   2022.03.15
                                   2020.06.19
                        Femal
Li Weihua Ex-CFO                44 -            0    0   0   0   0
                        e
                                   2021.09.30
                                   2020.06.19
Wan
           Ex-VP        Male    60 -            0    0   0   0   0
Hong
                                   2021.03.31
                                   2020.06.19
Li Xiaojun Ex-VP        Male    46 -            0    0   0   0   0
                                   2021.09.01
                                   2020.06.19
Milton
           Ex-VP        Male    47 -            0    0   0   0   0
Wong
                                   2021.01.31
                                   2020.06.19
Luo                     Femal
         Ex-VP                  43 -            0    0   0   0   0
Xiaofang                e
                                   2021.11.30
                                   2020.06.19
Yu
           Ex-VP        Male    53 -            0    0   0   0   0
Jianbin
                                   2021.12.17
                                   2021.04.01
Xiong Yi   Ex-VP        Male    46              0    0   0   0   0
                                   -


                                                                 34
                               2021.08.31
Total                                         1260      0       0       0   1260

Whether there are any outgoing Directors and Supervisors and the dismissal of
senior management personnel during the reporting period?
□√Yes □No

Changes of Directors, Supervisors and Senior Management
□√Applicable □Not Applicable
    Name         Position     Status       Date               Reason
Manto         Vice
                           elected    2021.06.25 Work need.
Wong          Chairman
Xiong
              Director     elected    2021.06.25 Work need.
Chunying
Ryan
              Director     elected    2021.10.18 Work need.
Anderson
Yuan
              Director     elected    2021.10.18 Work need.
Mingxue
Yu            Independent
                           elected    2021.10.18 Work need.
Zhuoping Director
Zhang
              Supervisor elected      2021.10.18 Work need.
Yangyang
Ma Jian       Supervisor elected      2022.03.16 Work need.
Li Yanling Supervisor elected         2022.03.16 Work need.
Xiong
              President    employment 2021.05.01 Appointment due to work need.
Chunying
Joey Zhu CFO               employment 2021.10.01 Appointment due to work need.
Eric
              VP           employment 2021.02.01 Appointment due to work need.
Hermann
Xu Lanfeng VP              employment 2021.04.01 Appointment due to work need.
Liu Rangpo VP              employment 2021.04.01 Appointment due to work need.
Xiong Yi      VP           employment 2021.04.01 Appointment due to work need.
Xiang
              VP           employment 2021.09.01 Appointment due to work need.
Dongping
Wu Jiehong VP              employment 2021.10.01 Appointment due to work need.
Yang
              VP           employment 2021.12.01 Appointment due to work need.
Shenghua
              Ex-Vice
Aning Chen                 Leave      2021.06.25 Work rotation.
              Chairman
Wan
              Ex-Director Leave       2021.10.18 Work rotation.
Jianrong
Thomas
Peter         Ex-Director Leave       2021.10.18 Work rotation.
Hilditch
Manto
              Ex-President Leave      2021.06.25 Work rotation.
Wong
              Ex-
Li Xianjun Independent Leave          2021.10.18 The term of office has expired.
              Director
Alvin Qing Ex-             Leave      2021.10.18 Work rotation.

                                                                                35
Liu          Supervisor
Ding         Ex-
                          Leave        2022.03.15     Work rotation.
Zhaoyang     Supervisor
Chen         Ex-
                          Leave        2022.03.15     Work rotation.
Guang        Supervisor
Li Weihua    Ex-CFO       Leave        2021.09.30     Work rotation.
Wan Hong     Ex-VP        Leave        2021.03.31     Retired.
Li Xiaojun   Ex-VP        Leave        2021.08.31     Work rotation.
Milton
             Ex-VP        Leave        2021.01.31     Work rotation.
Wong
Luo
             Ex-VP        Leave        2021.11.30     Work rotation.
Xiaofang
Yu Jianbin   Ex-VP        Leave        2021.12.16     Work rotation.
Xiong Yi     Ex-VP        Leave        2021.08.31     Resign.

(2). Employment
Particulars about working experience of Directors, Supervisors and senior
management:

Directors:
Mr. Qiu Tiangao, born in 1966, holds a Bachelor Degree in Mechanical
Manufacturing and a Master Degree in Industrial Engineering from Huazhong
University of Science and Technology, and is Chairman of JMCG, Chairman of
Nanchange Jiangling Investment Co., Ltd., and Chairman of JMC. Mr. Qiu
Tiangao held various positions including General Manager, Chairman of
Nanchang Gear Co., Ltd., Chairman of Jiangxi JMCG Gear Co., Ltd., Vice
President of Jiangling Motor Holdings Co., Ltd., and Director & General Manager
of JMCG.

Mr. Manto Wong, born in 1962, holds a Bachelor’s Degree in Computer
Engineering and a Master’s Degree in Business Administration from the University
of Michigan, U.S.A., and is General manager of Commercial Vehicle Division for
Ford Motor (China) Ltd., andVice Chairman of JMC. Mr. Manto Wong held various
positions including Manger of U.S. Market Analysis Department of Ford, Chief
Financial Officer of JMC, President of JMC, Chief Financial Officer of Ford Japan
operations, Director of Business Strategy for Asia Pacific of Ford, Vice President
and Chief Financial Officer for Ford Motor (China) Ltd., and Vice President of
Finance for Chang’an Ford, President of JMC.

Mr. Ryan Anderson, born in 1973, holds a Bachelor’s degree in Economics from
University of Chicago and a Master’s degree in Business Administration from
University of Michigan - Ann Arbor, and is Director and CFO of Ford Motor (China)
Ltd., Director of JMC, Director of Chang’an Ford Automobile Limited and Fuqi
Trading (Shanghai) Ltd., and Chairman of Ford Blue Mache Technology (Nanjing)
Co., Ltd. Mr. Ryan Anderson has held various positions including Treasurer of
Ford Europe, Product Development Controller, Marketing & Sales Controller of
Ford Asia Pacific, Director of Corporate Financial Planning and Analysis for Ford
Motor Company.

Ms. Xiong Chunying, born in 1964, senior engineer, holds a Bachelor Degree in
Automobile Engineering from Jiangsu Engineering College, a Master Degree in

                                                                                36
Industrial Economics from Jiangxi University of Finance and Economics and an
EMBA Degree from China Europe International Business School, and is President
and a Director of JMC, in charge of the Company's product research and
development. Ms. Xiong Chunying held various positions including Chief of
Quality Management Department, Assistant to the President, Vice President, and
Director for JMC.

Mr. Jin Wenhui, born in 1967, senior engineer, holds a Bachelor’s Degree in
Mechanical Manufacturing, a Master’s Degree in Mechanical Engineering from
Huazhong University of Science and Technology and an EMBA Degree in China
Europe International Business School, and is Director &First Executive Vice
President of JMC, in charge of marketing sales & service, and assist the President
to manage the Company. Mr. Jin Wenhui held various positions including Chief of
Manufacturing Department, Assistant to the President, Vice President for JMC,
Director, General Manager of JMCG Jingma Motors Co., Ltd., and Executive Vice
General Manager of Jiangxi-Isuzu Motors Co., Ltd., and Executive Vice President
of JMC.

Mr. Yuan Mingxue, born in 1968, holds a Bachelor’s degree in Auto Engineering
from Beijing Institute of Technology and an EMBA from China Europe International
Business School, and is Deputy Secretary of the Party Committee, Chairman of
the Labor Union, President of Chang'an Automobile University for Chongqing
Chang’an Automobile Company Limited and Director of JMC. Mr. Yuan Mingxue
has held various positions including Assistant to the President of Chang’an Auto
and Executive Vice President of Jiangling Holdings Limited Company, Assistant to
the President and Director of Strategy Planning Department for Chang’an Auto,
Assistant to the President and Director of Overseas Development Department for
Chang’an Auto, Vice President, Executive Vice President of Chang’an Auto.

Mr. Chen Jiangfeng, born in 1979, holds a Bachelor’s Degree and Master’s
Degree in Law from International Law Department, Foreign Affairs College, and is
Senior Deputy General Counsel & Executive Director of Gilead (Shanghai)
Pharmaceutical Technology Co., and an Independent Director of JMC. Mr. Chen
Jiangfeng has held various positions including Legal Counsel of Ford Motor (China)
Ltd., Legal Counsel of Ford Motor Research & Engineering (Nanjing) Co., Ltd./
Chang’an Ford Mazda Automobile Corporation, Ltd., Nanjing Company/Chang’an
Ford Mazda Engine Company, Ltd., Senior Legal Counsel & Compliance Officer of
Ford Asia Pacific & Africa, Senior Legal Counsel of BMW China Automotive
Trading Ltd., and Member of China Country Council, Head of legal, Director,
Merck Healthcare China.

Ms. Wang Yue, born in 1978, holds a Bachelor’s Degree in Accountancy from
Henan University, a Master’s Degree in Accountancy from Zhongnan University of
Economics and Law, and a Doctor’s Degree in Accountancy from Shanghai
University of Financial and Economics, and is an Associate Professor of School of
Accountancy for Shanghai University of Financial and Economics, an Independent
Director of JMC, an Independent Director of Shanghai Xinhua Media Co., Ltd., an
Independent Director of Zhuhai Letong Chemical Co., Ltd., an Independent
Director of Jiangsu Hongde Special Components Co., Ltd., and an Independent
Director of Guangdong Yangshan United Precision Manufacturing Co., Ltd. Ms.
Wang Yue has served as Research Assistant at The Hong Kong Polytechnic

                                                                                37
University and China Europe International School, and during 2012~2013, served
as Visiting Scholar at Zimmerman Center for University of Illinois at Urbana-
Champaign.

Mr. Yu Zhuoping, born in 1960, holds a Bachelor's degree in Mechanical
Engineering and a Master's degree in Mechanical Engineering from Tongji
University and a Doctor's degree in Automotive Engineering from Tsinghua
University, and is Director of Collaborative Innovation Center for Intelligent Energy
Vehicles of Tongji University, Chairman of Tongji Automobile Design and
Research Institute Co., Ltd., Chairman of Nanchang Jiling New Energy
Technology Co. Ltd., a Director of Shanghai Motor Vehicle Inspection Certification
& Tech Innovation Center Co., Ltd., a Director of Beijing National Hydrogen
Zhonglian Hydrogen Energy Technology Research Institute Co., Ltd., Chairman
and General Manager of Shanghai Intelligent New Energy Vehicle Science and
Technology Innovation Function Platform Co., Ltd., a Counsellor of Shanghai
Municipal People's Government, a Vice President of China Society of Automotive
Engineers, a Non-Executive Director of Huazhong In-Vehicle Holdings Company
Limited, an Independent Director of Shanghai Haili (Group) Co., Ltd., an
Independent Director of Weichai Power Co., Ltd., an Independent Director of
Ningbo Shenglong Automotive Powertrain System Co., Ltd., an Independent
Director of Huayu Automotive Systems Co., Ltd and an Independent Director of
JMC. Mr. Yu Zhuoping held various positions including Director of School of
Mechanical Engineering, Executive Deputy Director of New Energy Vehicle
Engineering Center, Executive Vice Dean, Dean of School of Automotive Studies
for Tongji University, and Assistant to the President of Tongji University.

Supervisors:
Mr. Xiao Hu, born in 1968, holds a Bachelor’s Degree in Radio from Information
Science & Electronic Engineering Department of Zhejiang University, and is a
member of the Standing Committee of the CPC, the secretary of Discipline
Inspection Commission and Chairman of Supervisory Board for JMCG, and Chief
Supervisor of JMC. Mr. Xiao Hu has served as a cadre in the General Office of the
Nanchang Municipal People's Government, deputy director of the Office of the
Working Committee of the Nanchang Hi-tech Industrial Development Zone, deputy
director of the Software Industry Office of the Nanchang Hi-tech Industry
Development Zone Administrative Committee, deputy head of the Organization
Department of the Working Committee of Nanchang Hi-tech Industry Development
Zone, deputy director of the Personnel and Labor Bureau of the Nanchang Hi-tech
Industry Development Zone Administrative Committee, Head of the Organization
Department of the Working Committee of Nanchang Hi-tech Industry Development
Zone, and the Director of the Personnel Bureau of the Nanchang Hi-tech Industry
Development Zone Administrative Committee.

Mr. Zhang Yangyang, born in 1979, holds a LLB degree in International Law from
China Foreign Affairs University and a LLM degree from the University of Michigan
Law School (Ann Arbor), is qualified to practice law in People’s Republic of China
and in the State of New York, the United States of America, and is currently serve
as a Director and General Counsel of Ford Motor (China) Ltd., Principle of Beijing
Branch for Ford Motor (China) Ltd., a Supervisory of Ford Blue Mache Technology
(Nanjing) Co., Ltd., a Supervisor of Ford Blue Mache Auto Sales (Shanghai) Co.,
Ltd and a Supervisor of JMC. Mr. Zhang Yangyang previously assumed a series

                                                                                   38
of legal related positions within Ford including Managing Counsel for Ford China
and ASEAN region, Senior Counsel for Ford China Operations, etc.

Mr. Zhang Jian, born in 1969, holds a College Degree in Secretarial Professional
from North China University of Technology, and is Chairman of JMCG Labor
Union, Chairman of Supervisor Board of Nanchang Jiangling Investment Co., Ltd.,
and a Supervisor of JMC. Mr. Zhang Jian held various positions including
Secretary of Chairman and Deputy Director of Office for JMC, Director of Office,
Director of Communist Party Office, Chief of Publicity Department for JMCG,
Assistant to General Manager of JMCG, and Senior Vice Chairman of JMCG
Labor Union.

Mr. Ma Jian, born in 1975, holds a College Degree in Mechanical &Electrical
Engineering from Nanchang University of Aeronautical Technology, a Master
Degree in Mechanical Engineering from Huazhong University of Science and
Technology, and is a Supervisor and Chief of Manufacturing Department for JMC.
Mr. Ma Jian held various positions including Lead Engineer, Assistant to the Chief,
Deputy Chief of Manufacturing Department for JMC, Director of Nanchang factory
for Getrag Powertrain (Jiangxi) Co. Ltd., and Director of Nanchang Factory and
Director of DCT Factory for Magna Powertrain (Jiangxi) Co. Ltd.

Ms. Li Yanling, born in 1977, holds a College Degree in Industrial and Trade
English from Nanchang University of Aeronautical Technology, a Bachelor Degree
in English from Jiangxi Normal University, and is a Supervisor and Deputy Chief of
Public Relationship Department for JMC. Ms. Li Yanling held various positions
including Assistant to Ford Quality Expert of Quality Control Department, Assistant
to Ford Expert of Public Relationship and Legal Affairs Department, Executive
Assistant to President, Chief of Translation Office, and Deputy Chief of Public
Relationship Department of JMC.

Senior management:
Ms. Xiong Chunying, please refer to the part of Directors for her resume.

Mr. Jin Wenhui, please refer to the part of Directors for his resume.

Mr. Joey Zhu, born in 1982, holds a Bachelor’s Degree in Accounting from Nanjing
University and a Master’s Degree in Financial Engineering from Nanyang
Technological University, and is CFO of JMC. Mr. Joey Zhu held various positions
including PD Profit Planning Manager, Profit Analysis Manager, Admin & IT
Controller, and PD Finance Controller for Ford Asia & Pacific, Deputy CFO of
CEVT, Sweden, Finance Controller of Byton NEV Company, Senior Business
Development Manager, CFO of BEV Division, and BEV Strategic Partnership
Development Director for Ford China.

Mr. Ding Wenming, born in 1972, holds a Bachelor’s Degree in Automobile
Exertion from Wuhan University of Technology, and is a Vice President of JMC, in
charge of the Company's product research and development. Mr. Ding Wenming
held various positions including Deputy Chief of Product Development Center,
Chief of Product Planning & Program Management Department, and Assistant to
the President for JMC.

                                                                                 39
Mr Eric Hermann, born in 1964, holds a Bachelor’s Degree in Engineering
Mechanical and a Master’s Degree in Engineering Mechanical from University of
Michigan, and is a Vice President of JMC, in charge of the Company's product
research and development. Mr. Eric Hermann held various positions in Ford Motor
Company including Light Truck Exhaust Design Engineer, Vehicle NVH
Supervisor, VE Launch Leader, Exhaust, AIS & Clutch Supervisor, AIS, Cooling,
Exhaust & CAE Manager, BoF Cooling & Mounts Manager, Unibody Exhaust &
AIS Manager, and Global AIS Manager, as well as the Director of Powertrain
Engineering Department and Assistant President for JMC.

Mr. Wu Xiaojun, born in 1974, holds a Bachelor’s Degree from Wuhan University
of Technology and a MBA from Jiangxi University of Finance and Economics, and
is a Vice President of JMC, CEO of New Energy Division for JMC, Executive
Director and General Manager of Jiangling Heavy Vehicle Co., Ltd., in charge of
the new energy business of commercial vehicles for the Company. Mr. Wu Xiaojun
held various positions including Chief of Quality Department, Assistant to the
President for JMC, and Executive Deputy General Manager of JMC Heavy Duty
Vehicle Co., Ltd.

Ms. Xu Lanfeng, born in 1969, holds a Bachelor’s Degree in Forging Technology
and Equipment from Jiangxi Industry University and a MBA from University of
International Business and Economics, and is a Vice President and the Board
Secretary of JMC, in charge of the Company’s human resources and relevant
duties of Board Secretary. Ms. Xu Lanfeng held various positions in JMC including
Deputy Plant Manager of Framing Plant, Deputy Chief, Chief of Manufacture
Department and Assistant to the President of JMC.

Ms. Liu Shuying, born in 1962, senior engineer, holds a Bachelor’s Degree in
Mechanical Manufacturing from Jiangxi University of Technology, and is a Vice
President of JMC, in charge of the Company's product research and development.
Ms. Liu Shuying held various positions including Chief of Quality & Supervision
Department of Jiangling-Isuzu Motors Company Limited, Director of Product
Development Center and Assistant to the President of JMC.

Mr. Jerry Lin, born in 1976, holds a Bachelor’s Degree in Aerospace Engineering
and a Master’s Degree in Aerospace Engineering from Tamkang University, China
Taiwan, and is a Vice President of JMC, in charge of manufacturing business of
the Company. Mr. Jerry Lin held various positions including AE TCF & Powertrain
Lead Engineer, AE TCF & Powertrain Supervisor, TCF MPE Superintendent for
Ford Lio Ho Motor Co., Ltd., Program Manager of Ford Motor Company, Plant
Launch & FPS Manager, TCF Area Manager, Body Area Manager, and Plant
Manager of Chang’an Ford Automobile Co., Ltd.

Mr. Liu Ranbo, born in 1973, holds a Bachelor’s Degree in Plastic Forming from
Wuhan Automotive Polytechnic University, and is a Vice President for JMC and
General Manager of Jiangling Motor Sales Co., Ltd., in charge of commercial
vehicle sales business of the Company. Mr. Liu Ranbo held various positions in
JMC including Marketing Service Manager for Customer Service Department,
Regional Manager for East 3 / East 1 District, JMC Light Truck Brand Manager,


                                                                                  40
Sales Director of Jiangling Motors Sales General Company, and Deputy General
Manager of Jiangling Motor Sales Co., Ltd.

Mr. Xiang Dongping, born in 1975, holds a Bachelor’s Degree in Management
Engineering from Shanghai Jiao Tong University, a MBA Degree from The Hong
Kong Polytechnic University and an EMBA Degree from China Europe
International Business School, and is a Vice President for JMC, General Manager
of Jiangling Ford Motor Technology (Shanghai) Co., Ltd., in charge of the
passenger vehicle sales business of the Company. Mr. Xiang Dongping held
various positions including Executive Director and Senior Director of Sales for
Shanghai Volkswagen Brand Marketing Division, Vice General Manager of
Shanghai Automotive International Trading Co., Ltd. and General Manager of
SAIC International Marketing Center, Executive Vice-President of Volvo Cars
China Sales Co. Ltd., Co-founder & Chief Marketing Officer of ENOVATE, Vice
President of Hyundai Motor Group (China) and Vice-General Manager & Sales
Director of Beijing Hyundai Motor Co., Ltd.

Ms. Wu Jiehong, born in 1976, holds a Bachelor’s Degree in Finance
Management from Nanchang University and a MBA from Jiangxi University of
Finance and Economics, and is a Vice President for JMC, in charge of the
strategic development of the Company and assist the CFO to support the financial
work. Ms. Wu Jiehong held various positions including Assistant to the Chief of
Financial Department, Chief of Internal Audit Office, and Chief of Financial
Department for JMC, Finance Manager for Ford APA, Chief of Planning
Department, and Assistant to the President for JMC.

Mr. Yang Shenghua, born in 1980, holds a Bachelor’s Degree in English
Language & Literature from Huazhong University of Science and Technology and
a Master’s Degree in Business Administration from Nanjing University, and is a
Vice President of JMC, in charge of purchasing business of the Company. Mr.
Yang Shenghua held various positions including Program Purchasing Supervisor
of Chang’an Ford Automobile Co., Ltd., Program Purchasing Manager, and
Purchasing Strategy & Program Director for JMC.

Positions at the shareholder entities
□√Applicable □Not Applicable
       Name         Shareholder         Title           Term of Compensation
                       Entity                            Office    Paid by
                                                                 Shareholder
                                                                  Entity (Y/N)
Qiu Tiangao        JIC            Chairman           2019.05.28 N
                                  General manager of
Manto Wong          Ford          Commercial Vehicle 2021.05.01 Y
                                  Division, Ford China
Ryan Anderson Ford                CFO, Ford China        2021.06.01 Y
Jin Wenhui          JIC           Director               2019.05.28 N
Yuan Mingxue        JIC           Director               2019.05.28 N
Zhang Jian          JIC           Chief supervisor       2019.05.28 N
Description of the positions in the shareholder entities       None.



                                                                               41
Particulars about positions and concurrent positions in other entities
□√Applicable □Not Applicable
                                                                         Compensation
   Name                     Entity                       Title           Paid by Other
                                                                         Entities (Y/N)
                                                 Chairman, Legal
Qiu Tiangao JMCG                                                               Y
                                                 Representative
                                                 Chairman, Legal
Qiu Tiangao JiangxiISUZU Co., Ltd.                                             N
                                                 Representative
            JMCG New Energy Vehicle Co.,         Chairman, Legal
Qiu Tiangao                                                                    N
            Ltd.                                 Representative
            Nanchang Jiangling Investment        Chairman, Legal
Qiu Tiangao                                                                    N
            Co. Ltd.                             Representative
            Nanchang Intelligent New Energy
Qiu Tiangao                                  Chairman                          N
            Vehicle Research Institute
                                             General Manager
Manto Wong Ford Motor (China) Ltd.           of Commercial                     N
                                             Vehicle Division
Ryan                                         Director, Chief
            Ford Motor (China) Ltd.                                            N
Anderson                                     Financial Officer
Ryan        Chang’an Ford Automobile Co.,
                                             Director                          N
Anderson    Ltd.
Ryan        Ford Shuttle Trading (Shanghai)
                                             Director                          N
Anderson    Co., Ltd.
Ryan        Lincoln Automobile Sales Service
                                             Director                          N
Anderson    (Shanghai) Co., Ltd
Ryan        Ford blue Mach Technology
                                             Chairman                          N
Anderson    (Nanjing) Co., Ltd
Jin Wenhui JMCG                              Director                          N
            Jiangling Ford Motor Technology
Jin Wenhui                                   Chairman                          N
            (Shanghai) Co., Ltd.
                                             Executive
Jin Wenhui Jiangling Motor Sales Co., Ltd.   Director, Legal                   N
                                             Representative
            Hanon Systems (Nanchang) Co.,
Jin Wenhui                                   Vice Chairman                     N
            Ltd.
                                             Executive
            Guangzhou Fujiang New Energy
Jin Wenhui                                   Director, Legal                   N
            Automobile Sales Co., Ltd.
                                             Representative
Yuan        Chongqing Chang’an Automobile Chairman of the
                                                                               Y
Mingxue     Company Limited                  Labor Union
Yuan
            Chang'an Automobile University President                           N
Mingxue
                                             Executive
            Gilead (Shanghai)
Chen                                         Director, Senior
            Pharmaceutical Technology Co.,                                     Y
Jiangfeng                                    Deputy General
            Ltd.
                                             Counsel
            Shanghai University of Finance Associate
Wang Yue                                                                       Y
            and Economics                    Professor
Wang Yue Shanghai XinHua Media Co., Ltd. Independent                           Y

                                                                                     42
                                                 Director
                                                 Independent
Wang Yue      Zhuhai Letong Chemical Co., Ltd.                        Y
                                                 Director
              Jiangsu Hongde Special Parts       Independent
Wang Yue                                                              Y
              Co.,Ltd.                           Director
              Guangdong Yangshan United          Independent
Wang Yue                                                              Y
              Precision Manufacturing Co., Ltd. Director
              Tongji Automobile Design and
Yu Zhuoping                                      Chairman             N
              Research Institute Co., Ltd.
              Nanchang Jiling New Energy
Yu Zhuoping                                      Chairman             N
              Technology Co., Ltd.
              Shanghai Motor Vehicle
Yu Zhuoping   Inspection Certification & Tech    Director             Y
              Innovation Center Co., Ltd.
              Beijing National Hydrogen
              Zhonglian Hydrogen Energy
Yu Zhuoping                                      Director             N
              Technology Research Institute
              Co., Ltd.
              Shanghai Intelligent New Energy
              Vehicle Science and Technology Chairman &
Yu Zhuoping                                                           N
              Innovation Function Platform Co., President
              Ltd.
                                                 Independent
Yu Zhuoping   Shanghai Haili (Group) Co., Ltd.                        Y
                                                 Director
              Huayu Automotive Systems Co., Independent
Yu Zhuoping                                                           Y
              Ltd.                               Director
                                                 Independent
Yu Zhuoping   Weichai Power Co., Ltd.                                 Y
                                                 Director
              Ningbo Shenglong Automotive        Independent
Yu Zhuoping                                                           Y
              Powertrain System Co., Ltd.        Director
              Huazhong In-Vehicle Holdings       Non-executive
Yu Zhuoping                                                           Y
              Company Limited                    Director
              Shanghai Municipal People's
Yu Zhuoping                                      Counsellor           N
              Government
              China Society of Automotive
Yu Zhuoping                                      Vice Chairman        N
              Engineers
Xiao Hu       JMCG                               Chief Supervisor     Y
Xiao Hu       JMCG Jingma Motors Co., Ltd.       Supervisor           N
              Jiangxi Jiangling Group Special
Xiao Hu                                          Supervisor           N
              Vehicle Co., Ltd.
              Jiangxi Jiangling Chassis Co.,
Xiao Hu                                          Supervisor           N
              Ltd.
              Jiangling Dingsheng Investment
Xiao Hu                                          Supervisor           N
              Co., Ltd.
              Jiangxi Jiangling Real Estate Co.,
Xiao Hu                                          Chief Supervisor     N
              Ltd.
                                                 Director, General
Zhang
              Ford Motor (China) Ltd.            Counsel, Principal   Y
Yangyang
                                                 of Beijing Branch
Zhang         Ford Motor Research (Nanjing) Supervisor                N

                                                                          43
Yangyang     Co., Ltd.
Zhang        Ford Motor Research
                                                Supervisor           N
Yangyang     Test(Nanjing) Co., Ltd.
Zhang        Ford Shuttle Trading (Shanghai)
                                                Supervisor           N
Yangyang     Co., Ltd.
Zhang        Lincoln Automobile Sales Service
                                                Supervisor           N
Yangyang     (Shanghai) Co., Ltd.
Zhang        Jiangling Ford Motor Technology
                                                Supervisor           N
Yangyang     (Shanghai) Co., Ltd.
Zhang        Ford blue Mach Technology
                                                Supervisor           N
Yangyang     (Nanjing) Co., Ltd.
Zhang        Ford Blue Mach Technology
                                                Supervisor           N
Yangyang     (Nanjing) Co., Ltd.
                                                Chairman of the
Zhang Jian   JMCG                                                    Y
                                                Labor Union
             Nanchang Jiangling Investment
Zhang Jian                                     Chief Supervisor      N
             Co. Ltd.
             JMCG New Energy Automobile
Zhang Jian                                     Supervisor            N
             Co. Ltd.
             Jiangxi Jiangling Special-Purpose
Zhang Jian                                     Supervisor            N
             Vehicle Co., Ltd.
             Jiangxi JMCG Specialty Vehicles
Zhang Jian                                     Supervisor            N
             Co., Ltd.
Zhang Jian   Nanchang Gear Co., Ltd.           Chief Supervisor      N
Zhang Jian   JMCG Finance Co., Ltd.            Chief Supervisor      N
             Jiangxi Lingrui Renewable
Zhang Jian                                     Supervisor            N
             Resources Development Co., Ltd.
             Jiangxi Jiangling Real Estate
Zhang Jian                                     Supervisor            N
             Co.,Ltd
             Jiangxi Jiangling Motors Imp. &
Zhang Jian                                     Chief Supervisor      N
             Exp. Co., Ltd.
             Magna Powertrain (Jiangxi) Co.
Zhang Jian                                     Supervisor            N
             Ltd.
             Jiangxi Yizhizhixing Automobile
Zhang Jian                                     Supervisor            N
             Operation Service Co., Ltd.
             Jiangling Ford Motor Technology
JoeyZhu                                        Director              N
             (Shanghai) Co., Ltd.
             Hanon Systems (Nanchang) Co.,
JoeyZhu                                        Director              N
             Ltd.
             Guangzhou Fujiang New Energy
JoeyZhu                                        Supervisor            N
             Automobile Sales Co., Ltd.
Ding
             JMCG                               Director             N
Wenming
                                                Executive
           JMC Heavy Duty Vehicle Co.,
Wu Xiaojun                                      Director, General    N
           Ltd.
                                                Manager
           Shenzhen Fujiang New Energy
Wu Xiaojun                                      Executive Director   N
           Automobile Sales Co., Ltd.
Wu Xiaojun Shanxi Yunnei Power Co., Ltd.        Director             N
Wu Jiehong JMC Heavy Duty Vehicle Co.,          Supervisor           N

                                                                         44
              Ltd.
              Shenzhen Fujiang New Energy
Wu Jiehong                                      Supervisor         N
              Automobile Sales Co., Ltd.
Wu Jiehong Shanxi Yunnei Power Co., Ltd.        Director           N
              Jiangling Ford Motor Technology
Liu Rangpo                                      Director           N
              (Shanghai) Co., Ltd.
Liu Rangpo Jiangling Motor Sales Co., Ltd.      General Manager    N
Xiang         Jiangling Ford Motor Technology
                                                General Manager    N
Dongping      (Shanghai) Co., Ltd.
Description of the positions in other entities                None
Penalties from securities regulator to the present and resigned Directors,
Supervisors and senior executives in the recently three years
□Applicable □√Not Applicable

(4). Compensation of Directors, Supervisors and Senior Executives
Decision-making procedure, determination of basis, and actual payment regarding
the compensation of the Directors, Supervisors and senior executives

Directors and Supervisors who did not concurrently hold other management
positions in JMC were not paid by JMC. Director Qiu Tiangao, Supervisor Xiao Hu
and Supervisor Zhang Jian were paid by JMCG. Director Manto Wong, Director
Ryan Anderson and Supervisor Zhang Yangyang were paid by Ford. Director
Yuan Mingxue were paid by Chongqing Chang’an Automobile Co., Ltd.

(a) In accordance with JMC Executive Compensation Scheme approved by the
Board of Directors, the compensation for the Chinese-side senior management
consists of base salary and floating bonus. The base salary level is determined
according the grade of the senior executives, and the floating bones shall be paid
according to the operating performance. 70% of the bonus will be distributed in
this year, and the rest 30% will be distributed in the next three years. In 2021, the
Company paid annual compensation before tax of approximately RMB 2,010
thousand to First EVP Jin Wenhui, paid approximately RMB 1,450thousand to VP
Ding Wenming, paid approximately RMB 1,610thousand to VP Wu Xiaojun, paid
approximately RMB 1,380thousand to VP & Board Secretary Xu Lanfeng, paid
approximately RMB 1,420 thousand to VP Liu Shuying, paid approximately RMB
1,730 thousand to VP Liu Rangpo, paid approximately RMB 1,320 thousand to VP
Wu Jiehong, paid annual compensation before tax of approximately RMB 820
thousand per personto two Ex-employee-representative Supervisors, Mr. Ding
Zhaoyang and Mr. Chen Guang, paid approximately RMB 1,390 thousand toEx-
EVP Xiong Chunying, paid approximately RMB 720 thousand toEx-VP Wan Hong,
paid approximately RMB 1,150 thousand to Ex-VP Li Xiaojun, paid approximately
RMB 1,280 thousand to Ex-VP Yu Jianbin. The total compensation before tax paid
by JMC for the aforesaid persons was about RMB 17.10 million in the reporting
period, including the long-term incentive of RMB 1,100 thousand deferred from the
previous years.

(b)JMC pays annual compensation for Ford-seconded senior management
personnel to Ford in accordance with the Personnel Secondment Agreement
signed between JMC and Ford & Ford Affiliates. In 2021, the Company should pay
approximately RMB 730 thousand to Ford for Director and President Xiong
Chunying, pay approximately RMB 280 thousand for CFO Joey Zhu, pay US$470

                                                                                   45
thousand for Vice President Erik Hermann, pay RMB 1,100thousand forVice
President Jerry Lin, pay RMB 370 thousand for Vice President Xiang Dongping,
pay RMB 1,100 thousand for Vice President Yang Shenghua, pay
US$170thousand for Ex-President Manto Wong, pay US$40thousand for Ex-Vice
President Milton Wong. pay RMB 830 thousand for Ex-CFO Li Weihua, pay RMB
1,100 thousand for Ex-Vice President Luo Xiaofang. These payments made by
JMC to Ford do not reflect the actual salaries earned by Ford-seconded senior
management.

(c) Pursuant to the resolutions of JMC 2011 Annual Shareholder’s Meeting, the
annual compensation for the JMC Independent Directors is RMB 100 thousand
per person, and JMC bears their travel-related expenses associated with JMC’s
business. In 2021, the Company paid annual compensation before tax of RMB
100 thousand to Independent Director Chen Jiangfeng, paid annual compensation
before tax of RMB 100 thousand to Independent Director Wang Yue, paid annual
compensation before tax of RMB 20 thousand to Independent Director Yu
Zhuoping, paid annual compensation before tax of RMB 80 thousand to Ex-
Independent Director Li Xianjun.

Table on compensation of the Directors, Supervisors and senior executives in the
reporting period
                                                                 Unit: RMB’ 000
                                                                             Compensatio
                                                                Compensatio
                                                                              n Paid by
   Name            Position     Gender   Age      Present (Y/N) n Before Tax
                                                                             Related Party
                                                                Paid by JMC
                                                                                 (Y/N)
Qiu TiangaoChairman           Male        55           Y             0               Y
           Vice
Manto Wong
           Chairman
                              Male        59           Y             *               Y
Ryan
              Director        Male        48           Y             0               Y
Anderson
Xiong        Director &
                              Female      57           Y           1,390*            N
Chunying     President
             Director &
Jin Wenhui                    Male        54           Y           2,010             N
             EVP
Yuan Mingxue Director         Male        53           Y             0               Y
Chen         Independent
                              Male        42           Y            100              N
Jiangfeng    Director
             Independent
Wang Yue                      Female      43           Y            100              N
             Director
             Independent
Yu Zhuoping                   Male        61           Y            20               N
             Director
             Chief
Xiao Hu                       Male        53           Y             0               Y
             supervisor
Zhang
             Supervisor       Male        45           Y             0               Y
Yangyang
Zhang Jian   Supervisor       Male        52           Y             0               Y
JoeyZhu      CFO              Male        39           Y             *               Y
Ding Wenming VP               Male        49           Y           1,450             N
Erik Hermann VP               Male        47           Y             *               Y
Wu Xiaojun   VP               Male        47           Y           1,610             N
             VP &Board
Xu Lanfeng                    Female      52           Y           1,380             N
              Secretary
Liu Shuying   VP              Female      59           Y           1,420             N


                                                                                46
Jerry Lin        VP            Male                  45           Y             *               Y
Liu Rangpo       VP            Male                  48           Y           1,730             N
Xiang
Dongping
                 VP            Male                  46           Y             *               Y
Wu Jiehong       VP            Female                45           Y           1,320             N
Yang
Shenghua
                 VP            Male                  41           Y             *               Y
             Ex-Vice
Anning Chen                    Male                  60           N             0               Y
             Chairman
Wan Jianrong Ex-Director       Male                  56           N             0               Y
Thomas Peter
             Ex-Director       Male                  44           N             0               Y
Hilditch
Manto Wong Ex- President       Male                  59           N             *               Y
             Ex-
Li Xianjun   Independent       Male                  54           N            80               N
                 Director
                 Ex-
Alvin Qing Liu                 Male                  64           N             0               Y
           Supervisor
Ding       Ex-
                               Male                  52           Y            820              N
Zhaoyang   Supervisor
           Ex-
Chen Guang                     Male                  48           Y            820              N
           Supervisor
Li Weihua       Ex-CFO          Female               44           N             *               Y
Wan Hong        Ex-VP           Male                 60           N            720              N
Li Xiaojun      Ex-VP           Male                 46           N           1,150             N
Milton Wong Ex-VP               Male                 47           N             *               Y
Luo Xiaofang Ex-VP              Female               43           N             *               Y
Yu Jianbin      Ex-VP           Male                 53           N           1,280             N
Xiong Yi        Ex-VP           Male                 46           N             *               Y
Total           -               -                     -           -          17,400             -
*See the instructions in the previous paragraph.

6. Directors’ Performance of Duty
(1) Introduction to the Board of Directors

      Meeting          Convening Date     Disclosure Date           Meeting Resolutions
                                                            1.agreed the proposal on capital
                                                            increase to JMCH.
                       2021.01.05-
Paper Meeting                           2021.01.09          2.approved the Notice on Holding
                       01.08
                                                            2021 First Special Shareholders’
                                                            Meeting of JMC.
                                                            approved MC 2020 Second Half
                       2021.01.15-
Paper Meeting                           2021.01.22          Assets Impairment Provisions&
                       01.20
                                                            Write-off proposal.
                       2021.01.22-                          approved the personnel changes of
Paper Meeting                           2021.01.30
                       01.28                                senior executives.
                                                            approved CX756 Vehicles
                                                            Cooperation Contract among Ford
                       2021.01.28-
Paper Meeting                           2021.02.06          Motor Company, Ford Global
                       02.04
                                                            Technologies, LLC and the
                                                            Company.
Fourth Session of                                           approved the personnel changes of
                       2021.03.26       2021.03.27
the Tenth Board                                             senior executives.
Paper Meeting          2021.03.27                           approves the L536 program KO.
                       2021.03.17-                          1. Proposal on Year 2020 Profit
Paper Meeting                           2021.03.30
                       03.26                                Distribution;


                                                                                           47
                                               2. approved the 2020 Annual
                                               Report of the Company and the
                                               Extracts from such Annual Report.
                                               3. approved the 2020Work Report
                                               of the Board of Directors of the
                                               Company.
                                               4. approved the Company’s
                                               2020FinancialStatements.
                                               5. approved the Company’s 2020
                                               Internal Control Self-assessment
                                               Report.
                                               6.approved the Company’s 2020
                                               Corporate Social Responsibility
                                               Report.
                                               7.approved JMCG Finance
                                               Company Continuous Risk
                                               Assessment Report.
                                               8.approved retaining
                                               PricewaterhouseCoopers Zhong
                                               Tian CPAs LLP as external auditor
                                               and the C-Sox Auditor from 2022to
                                               2024.
                   2021.04.19-                 approved the 2021 First Quarter
Paper Meeting                     2021.04.28
                   04.27                       Report of the Company.
                   2021.04.21-                 approved the personnel changes of
Paper Meeting                     2021.04.29
                   04.27                       senior executives.
                                               1. approved the Articles of
                                               Association of Shanxi Yunnei
                                               Power Co., Ltd.
Paper Meeting      2021.04.30
                                               2. approved the Appointment of
                                               Directors for Shanxi Yunnei Power
                                               Co., Ltd.
                                               1. approved the proposal on the
                                               sale of 100% of the equities of JMC
                                               Heavy Duty Vehicle Co., Ltd., a
                   2021.04.30-                 wholly owned subsidiary of JMC,
Paper Meeting                     2021.05.08
                   05.06                       through the public bidding process;
                                               2. approved the Notice on Holding
                                               2021 Second Special Shareholders’
                                               Meeting of JMC.
                                               Approved the FE Credits Trading
                                               Agreement among Jiangling
                                               Holdings Limited, Jiangling Motors
                   2021.05.21-                 Group Co., Ltd. and the Company,
Paper Meeting                     2021.05.29
                   05.27                       and the FE Credits Trading
                                               Agreement between JMCG New
                                               Energy Vehicle Co., Ltd. and the
                                               Company.
                                               1. approved the proposal on the
                                               personnel changes of Directors;
                   2021.05.21-
Paper Meeting                     2021.06.01   2.approved the Notice on Holding
                   05.18
                                               2020 Annual Shareholders’ Meeting
                                               of JMC.
                                               Elected the Vice Chairman and
Fifth Session of the
                     2021.06.25   2021.06.29   members of the special committees
Tenth Board
                                               under the Board of Directors.
                                               1. approved the V362C MCA
Paper Meeting      2021.06.25
                                               Program;

                                                                                48
                                              2. approved the V363C program
                                              phase II long lead funding;
                                              3.approved the N822program;
                                              4.approved the T360 program
                                              Phase II long lead funding.
                                              approved the P789 program Phase
Paper Meeting      2021.07.13
                                              II long lead funding.
                                              approved the personnel changes of
Paper Meeting      2021.08.23    2021.08.24
                                              senior executives.
                                              1.approved JMC 2021Half-year
                                              Report and the Extracts from JMC
                   2021.08.19-                2021Half-year Report.
Paper Meeting                    2021.08.28
                   08.26                      2.approved JMCG Finance
                                              Company Continuous Risk
                                              Assessment Report.
Sixth Session of                              approved the personnel changes of
                   2021.09.24    2021.09.25
the Tenth Board                               senior executives.
                   2021.09.24-                approved the changes of Directors
Paper Meeting
                   09.26                      of JMCH.
                                              Approved the Joint Venture and
                                              Shareholders Agreement of
Paper Meeting      2021.09.25    2021.09.27   Jiangling Ford Joint Venture
                                              Company between Ford Motor
                                              Company and JMC.
                                              1. approved the Articles of
                                              Association of Jiangling Ford Joint
                                              Venture Company.
Paper Meeting      2021.09.25
                                              2.approved JMC BOD Authorization
                                              to JMC ECM on Jiangling Ford
                                              Joint Venture Company.
                                              1.agreed the Proposal on
                                              Amendment to the Articles of
                                              Association of JMC (Year 2021),
                                              and to submit it to the
                   2021.09.26-                Shareholders’ Meeting for approval.
Paper Meeting                    2021.09.29
                   09.27                      2、approved the Independent
                                              Director Changes Proposal;
                                              3. approved the Notice on Holding
                                              2021 Third Special Shareholders’
                                              Meeting of JMC.
                                              1. Opinions of the Board of
                                              Directors on additional of temporary
                                              proposals by the Company’s
                   2021.09.30-                shareholders to the 2021 Third
Paper Meeting                    2021.10.08
                   10.07                      Special Shareholders’ Meeting;
                                              2.approved the postponement of
                                              the 2021 Third Special
                                              Shareholders’ Meeting of JMC.
                                              1.Proposal for the election of
                                              members of the special committee
                                              under the Board of Directors ;
                                              2.approved the Proposal on
Paper Meeting      2021.10.18
                                              Amendment to the Articles of
                                              Association of Jiangling Motors
                                              Sales Corporation, Ltd. (Year
                                              2021).
Paper Meeting      2021.11.02-   2021.11.12   approved the 2021 Third Quarter


                                                                                49
                   10.26                                 Report of the Company.
                   2021.11.02-                           approved the personnel changes of
Paper Meeting                        2021.11.12
                   11.10                                 senior executives.
                                                         Approved the nomination of the
Paper Meeting      2021.11.02                            Directors for Jiangling Ford Joint
                                                         Venture Company.
                                                         Approved the “SUPERDUTY”
Paper Meeting      2021.11.18                            Trademark Transfer Agreement
                                                         between Ford and JMC
                                                         1. approved the 2022 Routine
                                                         Related Party Transaction Forecast
Seventh Session of
                   2021.12.17        2021.12.21          Proposal;
the Tenth Board
                                                         2. approved the personnel changed
                                                         of senior executives.
                                                         1.approved the 2022 Operating
                                                         Budget of the Company;
Paper Meeting      2021.12.20
                                                         2.approved the JP360 Program;
                                                         3.approved the V363CProgram.

(2) Particulars about the Directors’ attendance to the Board meeting and the
Shareholders’ Meeting

                                                                              Not to     Presence
                                         Presence                           present in     at the
                Required
                             Presence    in form of   Presence             person in two Shareholde
   Name           Board                                          Absence
                             in Person    Paper       by Proxy             consecutive rs’ Meeting
                Attendance
                                         Meeting                            meetings
                                                                              (Y/N)
Qiu Tiangao        31            4          27           -          -           N             3
Manto Wong         31            4          27           -          -           N             4
Ryan
                    7            1           6           -          -           N             0
Anderson
Xiong
                   19            3          16           -          -           N             2
Chunying
Jin Wenhui         31            2          16          13          -           Y             2
Yuan Mingxue       7             1          6            -          -           N             0
Chen
                   31            4          27           -          -           N             1
Jiangfeng
Wang Yue           31            3          27           1          -           N             0
Yu Zhuoping        7             1          6            -          -           N             0
Anning Chen        12            1          11           -          -           N             0
Wan Jianrong       24            3          21           -          -           N             1
Thomas Peter
                   24            1           6          17          -           Y             0
Hilditch
Li Xianjun         24            1          21           2          -           N             0
Statements on failure to attend Board meetings in person for two consecutive
occasions
Director Jin Wenhui did not attend the Board meetings in person for two
consecutive occasions due to physical reasons. Ex-Director Thomas Peter Hilditch
did not attend the Board meetings in person for two consecutive occasions due to
work rotation to the United States.

(3) Dissent from Directors

                                                                                         50
□Yes □√No
The Directors of the Company had no dissent to the relevant proposals of the
Company in the reporting period.

(4) Other introduction to Directors’ Performance of Duty
□√Yes □No
     All the Directors of the Company fulfill their duties, diligent, active attention to
the Company’s management information, financial situation, major matters, etc., to
the proposals submitted to the Board of Directors thorough study and discussion,
and put forward their respective opinions, make recommendations for the
Company's business development, make decisions fully consider the interests of
minority shareholders and the demands, strengthen the scientific Board decision,
promote the sustainable, stable and healthy development of the work.

7. 2021 Situation of the Committees under the Board of Directors

    (1) Audit Committee
    Members:
    Chairman: Wang Yue
    Member: Yuan Mingxue, Ryan Anderson, Chen Jiangfeng, Yu Zhuoping
    Secretary: Joey Zhu

    The number of meetings held in the reporting period: five.

     The first Audit Committee meeting of 2021 was convened on January 14,
2021. Meeting contents:
     1.Approved the Asset Impairment Reserve for the second half of 2020, and
agreed to submit it to the Board of Directors for approval;
     2.Reviewed the 2020 Annual Financial and Accounting Statements of JMC,
and would review the Company's financial and accounting statements again after
the auditor forms the preliminary audit opinions.
     Important comments and suggestions made: None.
     Other performance of duties: None.
     Details of the objection to matters (if any): None.

      The second Audit Committee meeting of 2021 was convened on February 20,
2021. Meeting contents:
      Reviewed the Company's financial report after the certified auditor issued its
initial audit opinions.
      Important comments and suggestions made: None.
      Other performance of duties: None.
      Details of the objection to matters (if any): None.

    The third Audit Committee meeting of 2021 was convened on March 3, 2021.
Meeting contents:
    1.Reviewed the PwC Report;
    2.Reviewed the 2020 Financial Report audited by the auditor and agreed to
submit it to the Board of Directors for approval;
    3.Reviewed the Annual Audit Summary Report of External Auditors and
agreed to submit it to the Board of Directors for approval;


                                                                                       51
     4.Reviewed the 2020 Internal Control Self-Evaluation Report and agreed to
submit it to the Board of Directors for approval;
     5.Reviewed the Audit Committee Performance Report and agreed to submit it
to the Board of Directors for approval;
     6.Reviewed the External Auditor Selection and Fees and submitted to the
Board of Directors and Shareholders’ Meeting for approval.
     Important comments and suggestions made: None.
     Other performance of duties: None.
     Details of the objection to matters (if any): None.

    The forth Audit Committee meeting of 2021 was convened on June 25, 2021.
Meeting contents:
    1.Reviewed the Internal Control Work Report for the first half of 2021 and the
Work Plan for the second half of 2021;
    2. Reviewed the PwC Report.
    Important comments and suggestions made: the Committee members
recommended the Company pay attention to data security and antitrust
compliance risk, and attach importance to information security and the use and
protection of sensitive data.
    Other performance of duties: None.
    Details of the objection to matters (if any): None.

    The fifth Audit Committee meeting of 2021 was convened on December 17,
2021. Meeting contents:
    1.Reviewed the Internal Control Work Report 2021 and approved the Internal
Audit Work Plan 2022.
    2.Reviewed the Asset Impairment Preparation Report 2021 and agreed to
submit it to the Board for review.
    3.Reviewed and approved the Financial Statements Audit Schedule 2021.
    4. Reviewed the PwC Report.
    Important comments and suggestions made: None.
    Other performance of duties: None.
    Details of the objection to matters (if any): None.

    (2) Compensation Committee
    Members:
    Chairman: Chen Jiangfeng
    Member: Qiu Tiangao, Ryan Anderson, Wang Yue, Yu Zhuoping
    Secretary: Xu Lanfeng

    The number of meetings held in the reporting period: one.

     ACompensationCommittee meeting was convened on March 3, 2021.
Meeting contents:
     1. Reviewed and approved the Proposal on 2020 Year-end Bonus for the
Company’s senior executives;
     2. Reviewed and approved the adjustment of the annual total cash income
target of the Company’s senior executives in 2021;
     3. Reviewed and approved the KPIs for the Company’s senior executives in
2021;


                                                                                 52
    4. Reviewed and approved to adjust the cap of single KPI fulfillment in JMC
Executive Compensation Scheme; and,
    5. Reviewed and approved the 2020 Due Diligence Report of the
Compensation Committee.
    Important comments and suggestions made: None.
    Other performance of duties: None.
    Details of the objection to matters (if any): None.

   (3) Strategy Committee
   Members:
   Chairman: Qiu Tiangao
   Member: Manto Wong, Ryan Anderson, Xiong Chunying, Jin Wenhui,
Yuan Mingxue
   Secretary: Wu Jiehong

    The number of meetings held in the reporting period: one.

     A StrategyCommittee meeting was convened on September 24, 2021.
Meeting contents:
     Reviewed the Company’s 2025 Strategy Status Report.
     Important comments and suggestions made: in order to cope with the new
situation, new changes and new challenges, the Company needs to focus on the
strategic deployment and realization path at the strategic level, and continuously
promote the implementation of the winning strategy of customized products and
integrated services; and called for further study of new strategic opportunities.
     Other performance of duties: None.
     Details of the objection to matters (if any): None.

8. Works of Supervisory Board
Risks found by the Supervisory Board in the reporting period
□Yes □√No
The Supervisory Board had no dissent on inspection items in the reporting period.

9. Employees
(1) Employees, Professional Structure and Educational Level
Employees in parent company at the end of reporting
                                                                           12,462
period(persons)
Employees in subsidiaries at the end of reporting period(persons)             468
Total employees at the end of reporting period(persons)                    12,930
Total employees paid compensation (persons)                                13,842
Retired employees bore retirement benefits in parent company and
                                                                              912
its subsidiaries
                             Professional Structure
                                                                      Employees
                               Type
                                                                      (Persons)
Production Worker                                                          8,470
Sales Personnel                                                              599
Technical Personnel                                                        2,992
Finance Personnel                                                            156
Administrative Staff                                                         713

                                                                                     53
Total                                                                      12,930
                                  Educational Level
                                                                      Employees
                                  Type
                                                                      (Persons)
Master degree and higher                                                     889
Undergraduate degree                                                       3,437
Polytechnic school degree                                                  1,692
Below polytechnic school degree                                            6,912
Total                                                                     12,930

(2) Compensation Policy
In 2021, JMC strictly abided by the relevant requirements of national labor laws
and regulations, and provided safe and comfortable work places. The Company
also established and improved the incentive system that can effectively help the
realization of the Company’s strategy and targets, which can reflect the close
relationship between personal value contribution and the Company’s strategy
realization. JMC established performance-oriented culture and identity, rewarded
talents with excellent performance. At the same time, the Company constantly
improves employee welfare policies to meet the diversified individual needs of
employees and improve employee experience and satisfaction.

(3) Training
In 2021, with To Become Leader in Light Commercial Vehicle and Provider of Ford
Value Products as the vision, JMC paid attention to the talent transformation and
training of new automotive technologies, built an effective learning ecology,
focused on learning effects and experience, based on improving customer
performance, and provided human resource support for the Company's strategic
goals, so as to meet the company's future industry challenges in the field of new
energy, intelligent network and intelligent manufacturing. For more information
about the completion of 2021 training, please refer to the 2021 Social
Responsibility Report released by the Company.

(4) Labour outsourcing
□Applicable □√Not Applicable

10. Profit distribution and capital reserve conversion
Establishment, implementation or adjustment of profit distribution policy, esp. cash
dividend distribution policy, regarding common stock during the reporting period
□√Applicable □Not Applicable
In accordance with the requirements of laws, regulations and the Articles of
Association of the Company, the Company's profit distribution policy maintains
continuity and stability, and the Company pays attention to the reasonable return
to investors. The Company gives priority to cash dividend, and subject to the
provisions of laws, regulations and the Articles of Association of the Company, the
Board of Directors can put forward a mid-term or special profit distribution
proposal. The Company's profit distribution policy is in line with the CSRC's
guidance on encouraging cash dividends for listed companies.

                       Special Explanation on Cash Dividend Policy
Whether to comply with the requirements of the Articles of Association of JMC
                                                                                 Y
or resolution of the Shareholders’ Meeting (Y/N)

                                                                                  54
Whether the standards and proportion of dividends on profit distribution are
                                                                             Y
clear (Y/N)
Whether the procedures are valid and legal (Y/N)                             Y
Whether the Independent Director fulfil their duties (Y/N)                   Y
Whether middle and small shareholders have opportunities to claim their
                                                                             Y
appeals and their legal rights and interests are completely protected (Y/N)
Whether the condition and procedure are reasonable and transparent when the
                                                                             Y
cash dividend policy is being changed (Y/N)

The Company made a profit during the reporting period and the profit of the parent
company distributable to the common shareholders is positive, but a distribution
plan of cash dividends for the common shares is not put forward
□Applicable □√Not Applicable

Proposal on Year 2021 Profit Distribution Plan or Capital Reserve Conversion
□√Applicable □Not Applicable
Stock dividend (share) for every 10 shares                                                   0
Cash Dividend (RMB) for every 10 shares (including tax)                                   2.66
Total share capital (share)                                                        863,214,000
Total cash dividend distribution amounts (RMB) (including tax)                  229,614,924.00
Amount of cash dividend (RMB) in other ways (e.g. repurchase of
                                                                                          0.00
shares)
Total cash dividend amounts (RMB) (including other ways)                        229,614,924.00
Distributable profit (RMB)                                                    6,259,291,734.00
Total cash dividends (including other ways) as a proportion of total
                                                                                         100%
profit distribution
                                      Cash dividend status
If the development stage of the Company is not easy to distinguish but there are major
fund expenditure arrangements, the minimum proportion of cash dividends in this profit
distribution shall reach 20% when the profit distribution is carried out.
       Detailed description of profit distribution or capital reverse conversion proposal
Proposal on year 2021 profit distribution: the Company plans to distribute a cash dividend
of RMB 2.66 (including tax) for every 10 shares held. Based on the total share capital of
863,214,000 shares as of December 31, 2021, the total cash dividend distribution
amounts shall be RMB 229,614,924. The cash dividend on B share shall be paid in Hong
Kong Dollars and converted at the middle rate of the HK dollar’s exchange rate against
RMB quoted by the People’s Bank of China on the first working day following the relevant
resolution adopted by the Company’s Annual Shareholders’ Meeting. The Board decided
not to convert the capital reserve to the share capital this time. The proposal is subject to
the approval of the Company’s 2021 annual shareholders’ meeting.

11. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan and
Other Employee Incentive Method
□Applicable □√Not Applicable
There was neither equity incentive plan or ESOP, nor other employee incentive
method during the reporting period.

12. Internal control system construction and implementation during the reporting
period
(1) Internal control construction and implementation


                                                                                    55
According to the requirements of the Basic Standard for Enterprise Internal
Control (C-SOX) along with its Application Guidelines and Internal Control
Guidelines for Public Companies listed on the Shenzhen Stock Exchange jointly
issued by the Ministry of Finance and China Security Regulation Commission, the
Company has established a set of sound and effective internal control system, and
at the same time, combined with the internal and external environment, internal
institutions and management requirements, so as to make the internal control
system design scientific, simple, applicable and effective operation.

The Company has reasonably planned the organizational structure, and
established a control structure with the full participation of the Audit Committee,
Executive Committee, senior management and business level under the
leadership of the Board of Directors. The Audit Committee has an audit
department, which supervises and evaluates the operation of the Company's
internal control system through internal audit.

Through the operation, analysis and evaluation of the internal control system, the
Company has effectively prevented the risks in the operation and management,
and promoted the realization of the internal control objectives.

This year, the Company's internal control can cover the main aspects of the
Company's operation and management without major omissions; the units,
businesses and matters and high-risk areas included in the evaluation scope
cover the main aspects of the Company's operation and management without
major omissions.

(2) Major defect of internal control in the reporting period
□Yes □√No

13.The Company's management control over the subsidiaries during the reporting
period
□Applicable □√Not Applicable
During the reporting period, the Company has not purchased new subsidiaries.

14. Internal Control Self-Assessment Report or Internal Control Audit Report
(1) Internal Control Self-Assessment Report
Issuance date                                                                                   March 30, 2022
Index                                                                                      www.cninfo.com.cn
Total value of assets of the
entities in scope counts as % of
                                                                                                       100.00%
that disclosed in the consolidated
financial statements
Total value of operating revenue
of the entities in scope counts
                                                                                                       100.00%
as % of that disclosed in the
consolidated financial statements
                                     Deficiency Determination Criteria
              Type                                 Type                                     Type
                                     Material Weakness: An error that        Material Weakness: Unscientific
                                     changes the trend of results,           decision making process such as
Qualitative Criteria
                                     changes profit to loss or loss to       incorrect decisions that result in
                                     profit Ineffective anti-fraud process   unsuccessful mergers and

                                                                                                     56
                        or any fraud involving senior           acquisitions; Major regulatory
                        management Ineffective control          compliance issues; Frequent
                        over accounting policies Ineffective    media reports harmful to the
                        oversight by the Audit                  Company’s reputation; A lack of
                        Committee Significant Deficiency;       control within key business
                        Errors in management reporting          processes or systematic
                        systems or Corporate accounting         breakdown of control policies
                        records that could lead to incorrect
                        management decisions; Actions           Material weakness identified in
                        inconsistent with Company values,       the self-assessment without any
                        policies and other Corporate            action plan implemented
                        guidelines that are likely to           Significant Deficiency; control
                        significantly impact cost, quality,     deficiency, or combination of
                        customer satisfaction, reputation,      control deficiencies, that does not
                        or competitive advantage; Control       meet the criteria for material
                        issues in IT infrastructure or          weakness but deserves the
                        applications that may lead to           concerns of the Audit Committee
                        impairment of Company                   and the Board of Directors. Minor
                        operations. Any actions indicating      Deficiency Any control
                        fraud or theft that is significant in   deficiencies that do not meet the
                        value Minor Deficiency; Any control     criteria for material or significant.
                        deficiencies that do not meet the
                        criteria for material or significant.
                        Material Weakness Misstatement in
                        the Income Statement is more than
                        5% of the annual profit before
                        taxation; Misclassification in the
                        Income Statement is more than
                        0.4% of the annual sales revenue
                        Adjustment of net assets in the
                        Balance Sheet is more than 1% of
                        the shareholders' equity Adjustment
                        of asset or liability in the Balance
                        Sheet is more than 0.6% of the total Please refer to internal control
                        assets; Adjustment in the Cash Flow deficiency over financial reporting
Quantitative Criteria
                        Statement is more than 3% of the     for the criteria for non-financial
                                                             reporting internal control.
                        total net cash flow in the operating
                        activities. Significant Deficiency
                        Misstatement in the Income
                        Statement is more than 2.5% of the
                        annual profit before taxation;
                        Misclassification in the Income
                        Statement is more than 0.2% of the
                        annual sales revenue; Adjustment of
                        net assets in the Balance Sheet is
                        more than 0.5% of the Shareholders’
                        equity; Adjustment of asset or

                                                                                          57
                                      liability in the Balance Sheet is more
                                      than 0.3% of the Total assets;
                                      Adjustment in the Cash Flow
                                      Statement is more than 1.5% of the
                                      total net cash flow from the
                                      operating activities. Minor Deficiency
                                      All the deficiencies that do not meet
                                      the quantitative criteria for
                                      significant.
Number of Material Weakness in
                                                                                             0
financial report
Number of Material Weakness in
                                                                                             0
non-financial report
Number of Significant Deficiency in
                                                                                             0
financial report
Number of Significant Deficiency in
                                                                                             0
non-financial report

(2). Internal Control Audit Report
□√Applicable □Not Applicable
                        Opinions in the Internal Control Audit Report
The comments in the Internal Control Audit Report issued by PWC Zhongtian
Accountants (special general partnership) are as follows: On December 31, 2021, JMC
maintained effective internal control of financial reporting in all major aspects in
accordance with the Basic Code for Enterprise Internal Control and relevant provisions.
Disclosure of Internal Control Audit Report              Disclosed
Issuance Date                                            March 30, 2022
Index                                                    www.cninfo.com.cn
Type of Opinion                                          Standard and unqualified opinions
Major Defect Regarding Non-financial Report or no No
Abnormal opinion issued by the accounting firm
□Yes □√No
Whether the Opinion issued by the accounting firm keeps the same with that of
self-assessment report made by the Board?
□√Yes □No

15.Situation of Problem Rectification for the self-inspection of the special action
for the governance of listed companies

According to the deployment of the China Securities Regulatory Commission, in
2021, the Company organized the self-inspection of the special action for the
governance of listed companies. After self-inspection, the Company did not find
any situation that needs to be rectified.




                                                                                  58
Chapter V Environment and Social Responsibilities
1.Major Environmental issues
(1) Environmental protection
Whether the Company and affiliates is the key pollution discharge unit published
by environmental protection administration?
□√Yes□No
Name of principal   Wastewater (COD, NH-N) Exhaust gas
pollutant and                                   (SO2,NOx,smoke,toluol,xylene)
specific pollutant
Mode of discharge continuous discharge          continuous discharge
Number of
                    4                           120
discharge outlet
Distribution of     3 in Fushan Site, 1 in      38 in Fushan Site, 47 in Xiaolan
discharge outlet    Xiaolan Site, 1 in Cast     Site, 31 in Cast Plant and 4 in
                    Plant and 1 in Axle Plant   Axle Plant
Discharge           "COD:68mg/L                 SO2: 12mg/m3; NOx:91mg/m3;
concentration       NH-N:0.786mg/L"             smoke:
                                                20mg/m3;toluol:0.316mg/m3;
                                                dimethylbenzene:0.145mg/m3;
Applicable          “Wastewater Discharge      "The Emission Standard of Air
standard for        Standard”(GB 8978-1996) Pollutants”, "Emission Standard
pollutant discharge                             of Air Pollutants for Boiler”(GB
                                                13271-2014)
Total amount of     COD: 30.9t;                 NOx: 22.4t
discharge           NH-N:0.61
Total amount of     COD≤517.39t; NH-           NOx≤60.91t
discharge           N≤24.795t
audited
Excessive           Meet Standard               Meet Standard
discharge

The construction and operation of pollutant preventive and control facilities
In order to meet the environmental protection requirements and ensure that all
environmental indicators meet the standard of emission, the Company has
continuously taken various governance measures. The Company has built some
standardized hazardous waste storage sites, such as Xiaolan hazardous waste
station, Fushan hazardous waste station, Casting Plant hazardous waste station,
and Axle Plant hazardous waste station. In 2021, JMC has governed the VOCs
emission of Xiaolan Plant and Axle Plant. Through process modification and
adding VOCs disposal facility, VOCs emission was reduced significantly, thus
lowering the risk of environmental pollution. The Company also managed the
exhaust of diesel test vehicles to ensure the emission meets the standards. The
governance facility in Fushan and Xiaolan Plant has been put into full operation,
providing protection to the green JMC. The newly-added wastewater sludge drying
system strives to reduce both the amount and cost of waste. The Company has
established intelligent environmental protection monitoring platform, pollutants
online real-time monitoring, hazardous waste intelligent management system and
other digital platforms to create intelligent green JMC.


                                                                                59
EIA on construction project and other administrative permits for environmental
protection
The Company strictly implements the construction project environmental impact
assessment system. With respect to new construction, expansion and
reconstruction, JMC comprehensively planned environmental protection and
evaluated the “Three Simultaneities”. From the source of design, JMC carried out
the philosophy of energy saving and low carbon all the time. The Company carries
on the environmental monitoring every year according to the requirements,
ensures the pollutant discharge meeting the requirements of discharge permit,
formulates the stricter internal control target, and strives to reduce the impact of
environmental pollution to the minimum. In 2021, JMC completed the Fushan
Plant productivity optimization project, productivity optimization component
relocation project and environmental acceptance of Xiaolan simulation crash lab.
And meanwhile, the Company also received the environmental approval of VOC
governance in Xiaolan Paintshop.

Emergency plan on emergency environmental incidents
In order to dilute or prevent environmental risks, JMC established an emergency
preparation and response procedure and specific environmental emergency plans,
so as to formulate corresponding control methods for potential accidents and
emergences occurred or that may probably occur, and has been filed with the
environmental protection bureau.JMC organize various emergency drills to the
effectiveness of the plan.

Environmental self-monitoring scheme
JMC carries out self-monitoring in strict accordance with the Method for Self-
monitoring and Information Disclosure of State Key Monitoring Enterprises (Trial).
Its self-monitoring schemes, monitoring results and annual monitoring reports on
pollution sources were disclosed on the “Jiangxi Province pollution source
enterprise portal system”.

Administrative punishment for environmental problems during the reporting period
None.

Other information related to environmental protection
None.

Measures and effects taken to reduce carbon emissions during the reporting
period
□√Applicable □Not Applicable
In response to the national call for carbon neutrality and carbon standards, the
Company promoted the green and low-carbon development of enterprises in 2021.
The energy supervisor team and all plants promoted energy saving and
consumption reduction from production organization, standardized management,
process optimization, production pace improvement, and application of energy
saving technologies. The Company also increased the energy conservation
publicity, for the staff to popularize the concept of energy conservation, enhance
the staff energy awareness.



                                                                                  60
In 2021, the comprehensive energy consumption of the company's million output
value down 5% compared with 2020. The company's comprehensive energy
consumption per unit down 3% compared with 2020. In the T coating workshop of
Xiaolan Plant transferred from Qingyunpu Plant, chain roller machines and rotary
moving machines can increase the storage area in painting, improve the
production time of painting trolley line in single shift, meet the capacity adjustment
ability of welding WBS, thus reducing the production time of painting and saving
energy consumption. JMC Manufacturing Department implemented energy
management system in Fushan Plant, and through the system timely and
comprehensive grasped their energy utilization, by monitoring the production
status, combining with the production information system data. Through the
organic combination of energy and the output, as well as utilizing the energy big
data from the industry, the assessment can be made on the actual energy usage
of the enterprise, thus providing support for production and operation planning.

Other environmental protection related information
None.

2. Corporation Social Responsibilities
JMC always consciously undertake social responsibility and create brand public-
benefit “Jiangling Xiqiao Project” with the aim of “Green, Love, and Safe”. By the
end of 2021, JMC has invested a total of more than RMB 34 million in building 412
caring bridges distributed in 128 counties of 25 provinces or municipalities directly
under the central government or autonomous regions, and over 600,000 people
benefit and get lifted out of poverty.

During the reporting period, the Company operated according to law and
regulations, upheld the interest of the shareholders, especially small & medium-
sized shareholders, protected the legitimate rights and interests of employees, and
treated suppliers, customers and consumers sincerely. Simultaneously, JMC paid
attention to environmental protection, energy saving and consumption reduction,
fully reduced energy consumption and pollutant discharge, and actively fulfilled
corporate social responsibility.

JMC 2021 Corporation Social Responsibilities Report can be downloaded from
JMC official website: www.jmc.com.cn or the website: www.cninfo.com.cn.

3. The consolidation and expansion of poverty alleviation achievements and rural
revitalization
In 2021, the Company placed the consolidation and expansion of poverty
alleviation achievements at the top of its priority list, promoted poverty alleviation
policies, measures and work systems, and gradually made a smooth transition to
rural revitalization to ensure effective linkage with rural revitalization.

We need to consolidate and expand our achievements in poverty alleviation,
maintain overall policy stability, and improve the mechanism for monitoring and
helping prevent people from falling back into poverty. Timely detection and
assistance will be provided to unstable households and marginal households
prone to poverty. Industrial assistance should not be provided from village to
household, but should be provided from township to village. We will continue to do


                                                                                    61
a good job in labor service cooperation and actively expand channels for local and
nearby employment.

We also comprehensively improved Xianting rice, horseshoe and other
characteristic agricultural products market competitiveness. Through land transfer,
we promoted vegetable industry development, optimized characteristic industry
development structure. We will continue to consolidate the infrastructure of
agriculture and lay a solid foundation for industrial development.

In 2022, the village task force will continue to strengthen targeted assistance and
prevent people from returning to poverty, and constantly explore new methods and
approaches for targeted assistance. We will continue to carry out the practical
activities of "Doing practical things for the people", do our best to do good things
for the people, take concrete actions to consolidate the achievements in poverty
alleviation and lay a solid foundation for rural revitalization.




                                                                                  62
Chapter VI          Major events
1. Commitments
(1) Commitments of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period
□Applicable √Not Applicable
There is no commitment of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period.

(2) Earnings forecast of the assets or project and the explanations
□Applicable □√Not Applicable

2. 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.

3. Illegal outside guarantee
□Applicable √Not Applicable
The Company had no illegal outside guarantee during the reporting period.

4.The board's explanation of the situation related to the latest "non-standard audit
Report"
□Applicable □√Not Applicable

5. Explanation of the Board of Directors, Supervisory Committee and Independent
Directors to abnormal opinions from accounting firm
□Applicable □√Not Applicable

6. Explanation on major accounting errors that shall be restated during the
reporting period
□Applicable □√Not Applicable
There was no major accounting error that shall be restated during the reporting
period.

7.Description of changes in the scope of consolidated statements as compared
with the previous year's financial statements
□√Applicable □Not Applicable

In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd.
(hereinafter referred to as “Yunnei Group”) signed by consensus the property
rights transaction contract of Yunnei Group purchasing 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. In November 2021, 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. was transferred to Yunnei Group, and “Taiyuan
Jiangling Power Co., Ltd.” was renamed as “Shanxi Yunnei Power Co., Ltd.”. After
the equity transfer, Shanxi Yunnei Power Co., Ltd. was not included in the scope
of the Company's consolidated statements.


                                                                                   63
In 2021, the Company and Ford Motor Company (“Ford”) subscribed to the capital
contribution of RMB 102 million and RMB 98 million respectively to set up
Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. ("Jiangling Ford
Technology”), the total registered capital subscribed amount to RMB 200 million.
The Company holds 51% of the shares of Jiangling Ford Technology and got the
control of Jiangling Ford Technology’s Board of Shareholders and Directors.
Jiangling Ford Technology is a subsidiary of the Company. As of December 31,
2021, Jiangling Ford Technology completed the business registration while not in
operation yet.

8. Appointment or Dismissal of Accounting Firm
Current accounting firm
 Name                                      PricewaterhouseCoopers Zhong Tian LLP
 Compensation (RMB’000)                                                      2,000
 Consecutive years offering audit services                                        20
 Names of signed accountants                                       Lei Fang, Ye Dan
 Consecutive years offering audit
                                                      Lei Fang 5 year, Ye Dan 4 year
 services of signed accountants

Dismissal of accounting firm
□Applicable □√Not Applicable

Appointment of C-SOX auditor, financial consultant or sponsor
□√Applicable □Not Applicable
Upon the approval of 2017 Annual Shareholders’ Meeting, JMC agreed to appoint
PricewaterhouseCoopers Zhong Tian LLP as JMC’s 2019to 2021 C-SOX auditor.
In 2021, JMC paid RMB 550 thousand to PricewaterhouseCoopers Zhong Tian
LLP for the C-SOX audit.

9. Suspension and Termination of Listing after Annual Report Disclosed
□Applicable □√Not Applicable

10. Related Matters regarding Bankruptcy
□Applicable □√Not Applicable
There was no matter involving bankruptcy during the reporting period.

11. Major Litigation or Arbitration
□Applicable □√Not Applicable
There was no major litigation or arbitration during the reporting period.

12. Punishment
□Applicable □√Not Applicable
Neither JMC nor its Directors or senior management were punished by regulatory
authorities during the reporting period.

13. Honesty and credit of JMC and its controlling shareholder or actual controlling
party
□Applicable □√Not Applicable

14. Major Related Transactions
(1) Routine related party transactions

                                                                                  64
Please refer to the Note 8 related party transactions of the notes to the
consolidated financial statements in the Chapter X Financial Statements for details.

(2) Major related party transaction concerning transfer of assets or equity
□Applicable □√Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.

(3) Related party transaction concerning outside co-investment
□√Applicable □Not Applicable
Partner                         Ford Motor Company
                                Ford, representing 32% of the outstanding shares
Relationship                    of the Company, is the second largest shareholder
                                of the Company.
Name of the invested            Jiangling Ford Motor Technology (Shanghai) Co.,
enterprise                      Ltd.
                                Engineering and technical research and
                                experimental development, sales of vehicles, new
                                energy vehicles, auto parts, electric accessories of
                                new energy vehicles, plug-in hybrid professional
                                engines, charging piles, centralized rapid charging
The main business of the        stations, new energy vehicles for electric facilities,
invested enterprise             new energy vehicles production and testing
                                equipment; Technical consulting and business
                                information consulting in the field of automotive
                                science and technology; Economic information
                                consulting, marketing planning, corporate image
                                planning, etc.
The registered capital of the   RMB 200 million
invested enterprise
The total assets of the         *
investee enterprise
The net assets of the           *
invested enterprise
The net profit of the invested *
enterprise
Progress of the major           None
projects under construction of
the invested enterprises
* Note: Jiangling Ford Motor Technology (Shanghai) Co., Ltd. completed business
registration on December 27, 2021, and not yet make operating activities in the
reporting period.

(4) Related credit and debt
□√Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes □√No
The Company had no non-operating related credit and debt in the reporting period.



                                                                                    65
  5、Transaction with related financial companies or financial companies that the
  company holds
  □√Applicable □Not Applicable
                                                       Balance at    Current amount
                                                                                             Balance at
                                                           the
                            Maximum                                                              the
    Related   The related                             beginning of Deposit   Take out the
                           daily deposit Deposit rate                                       beginning of
     party    relationship                                 the     amount      amount
                                limit                                                        the period
                                                      period(RMB (RMB mils) (RMB mils)
                                                                                            (RMB mils)
                                                          mils)
  JMCG
              Subsidiary          1.725%-
  Finance
  Company
              of JMCG          *  2.25%
                                                   1,232    21,206    21,378    1,060

  * Note: JMC applies the consolidated deposit limit in JMCG Finance Company at
  the end of each month to the lower of the following: 1) 25% of JMCG Finance
  Company absorbing deposit in prior year end; or 2) 12% of JMC’s consolidated
  total cash reserve.

  6. The transactions between the financial company controlled by the company and
  its related parties
  □Applicable □√Not Applicable
  There is no deposit, loan, credit granting or other financial business between the
  financial company controlled by the company and its related parties.

  (7) Other major related party transactions
  □√Applicable □Not Applicable
  Please refer to the Note 8 related party transactions of the notes to the
  consolidated financial statements for details.
  The announcement on Related Party Transactions
                                                                    Website for
                    Name                         Disclosure Date
                                                                    Disclosure
Public Announcement on Related Party
                                                2021.02.06       www.cninfo.com.cn.
Transactions
Public Announcement on Related Party
                                                2021.05.29       www.cninfo.com.cn.
Transactions
Public Announcement on Establishment of a
                                                2021.09.27       www.cninfo.com.cn.
Joint Venture with Related Party
Public Announcement on the 2021 Forecast
                                                  2021.12.21          www.cninfo.com.cn.
Routine Related Party Transactions

  15. Major Contracts and Execution
  (1) Entrustment, contract or lease
  a. Entrustment
  □Applicable □√Not Applicable
  There was no entrustment in the reporting period.

  b. Contract
  □Applicable □√Not Applicable
  There was no contract in the reporting period.

  c. Lease
  □√Applicable □Not Applicable

                                                                                             66
Please refer to the Note 4 (15), note 4 (29) and note 8 (5) (b) of the financial
statements in the Chapter X Financial Statements for detail.

Project with more than 10% of net profit
□Applicable □√Not Applicable
There was no lease project with more than 10% of net profit in the reporting period.

(2) Major guarantee
□Applicable □√Not Applicable
The Company had no outside guarantee in the reporting period.

(3) Entrustment on cash asset management
a. Trust investment
□Applicable □√Not Applicable
There was no trust investment in the reporting period.

b. Entrusted loan
□Applicable □√Not Applicable
There was no entrusted loan in the reporting period.

(4) Other major contract
□Applicable □√Not Applicable

16. Other Major Events
□√Applicable □Not Applicable

In 2021, the Company received government incentives of approximate RMB
552million appropriated from Nanchang City, Nanchang Xiaolan Economic and
Technological Development Zone, which is to support the daily operation and
development of the Company.

17.Major event of JMC subsidiary
□√Applicable □Not Applicable

In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd.
(hereinafter referred to as “Yunnei Group”) signed by consensus the property
rights transaction contract of Yunnei Group purchasing 60% of the equity of
Taiyuan Jiangling Power Co., Ltd. In August 2021, the Company and Yunnei
Group completed the transfer procedures of 60% of the equity of Taiyuan
Jiangling Power Co., Ltd., and renamed Taiyuan Jiangling Power Co., Ltd. as
Shanxi Yunnei Power Co., Ltd. The Company now holds 40% of the equity of
Shanxi Yunnei Power Co., Ltd., Yunnei Group holds 60% of the equity of Shanxi
Yunnei Power Co., Ltd., and Shanxi Yunnei Power Co., Ltd. is not included in the
scope of the Company's consolidated statements.

In January 2021, the Shareholders’ Meeting of JMC approved to increase the
capital by RMB 1.142 billion in cash to JMC Heavy Duty Vehicle Co., Ltd. Upon
completion of the capital increase, the registered capital of JMC Heavy Duty
Vehicle Co., Ltd. was increased from RMB 181,793,174 to RMB 1,323,793,174.In
May 2021, the Shareholders’ Meeting of JMC approved to sell 100% of the equity
of JMC Heavy Duty Vehicle Co., Ltd. through the public bidding process at Shanxi

                                                                                   67
Property Rights Exchange. At the expiration of the bidding announcement period,
the above subject matter is solicited to an intended transferee, Volvo Lastvagnar
Aktiebolag. On August 23, 2021, by consensus, the Company signed the Equity
Interest Transfer Agreement Relating to100% of the Equity Interests in JMC
Heavy Duty Vehicle Co., Ltd. with Volvo Lastvagnar Aktiebolag. As of the date of
disclosure of the report, the relevant transaction between the Company and Volvo
Lastvagnar Aktiebolag is still in progress.

In September 2021, the Board of Directors of JMC approved to jointly establish
Jiangling Ford Joint Venture Company with Ford Motor Company. In December
2021, the Joint Venture by the Company and Ford, Jiangling Ford Motor
Technology (Shanghai) Co., LTD., completed the business registration and
obtained the business license with a registered capital of RMB 200 million. JMC
held 51% equity, and Ford held 49% equity.




                                                                               68
               Chapter VII                       Share Capital Changes & Shareholders
               1. Changes of shareholding structure
               I. Table of the changes of shareholding structure
                        Before the change                          Change (+, -)                       After the change
                                    Proportion    New             Reserve-                                        Proportion
                                                         Bonus
                        Shares       of total    share            converted     Others   Subtotal     Shares        of total
                                                         Shares
                                   shares (%)      s                shares                                        shares (%)
I. Limited tradable
                         750,840        0.09%                                                          750,840          0.09%
    A shares
1. Other domestic
                         750,840        0.09%                                                          750,840          0.09%
    shares
Including:
Domestic legal
                         745,140        0.09%                                                          745,140          0.09%
    person shares
Domestic natural
                            5,700       0.00%                                                             5,700         0.00%
    person shares
II. Unlimited
                      862,463,160      99.91%                                                       862,463,160        99.91%
    tradable shares
1. A shares           518,463,160     60.06%                                                        518,463,160         60.06%
2. B shares           344,000,000     39.85%                                                        344,000,000         39.85%
III. Total            863,214,000    100.00%                                                        863,214,000        100.00%

               Causes of shareholding changes
               □Applicable □√Not Applicable

               Approval of changes of shareholding structure
               □Applicable □√Not Applicable

               Shares Transfer
               □Applicable □√Not Applicable

               Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’
               equity attributable to the equity holders of the Company, generated from shares
               transfer
               □Applicable □√Not Applicable

               Others to be disclosed necessarily or per the requirements of securities regulator
               □Applicable □√Not Applicable

               II. Changes of limited A shares
               □Applicable □√Not Applicable

               2. Securities Issuance and Listing
               I. Securities issuance (not including preferred shares) in the reporting period
               □Applicable □√Not Applicable

               II. Explanation on changes of shares, shareholding structure, assets and liabilities
               structure
               □Applicable □√Not Applicable

               III. Current staff shares
               □Applicable □√Not Applicable

               3. Shareholders and actual controlling parties

                                                                                                                  69
            I. Total shareholders, top ten shareholders, and top ten shareholders holding
            unlimited tradable shares

Total shareholders as     JMC had 50,481 shareholders, including 44,678 A-share holders, and 5,806 B-share
of the end of the         holders, as of December 31, 2021.
reporting period
Total shareholders as     JMC had 45,406 shareholders, including 39,620 A-share holders, and5,786 B-share
of the last month-end     holders, as of February 28, 2022.
prior to the disclosure
date of the Report
Top ten shareholders
                                                                                                          Shares
                                                                                           Shares
                                             Shareholding      Shares at                                  due to
                            Shareholder                                      Change          with
  Shareholder Name                            Percentage      the End of                                 mortgage
                               Type                                           (+,-)        Trading
                                                 (%)             Year                                    or mark
                                                                                          Restriction
                                                                                                         or frozen
Nanchang Jiangling        State-owned
                                                   41.03%     354,176,000             0            0              0
Investment Co., Ltd.      legal person
FORD MOTOR                Foreign legal
                                                   32.00%     276,228,394             0            0              0
COMPANY                   person
Shanghai Automotive       State-owned
                                                    1.51%      13,019,610             0            0              0
Co., Ltd.                 legal person
National Social
                          Domestic non-
Security Fund - One
                          State-owned               0.77%       6,643,441     6,643,441            0              0
One Eight
                          legal persons
Combinations
                          Foreign legal
GAOLING FUND,L.P.                                   0.63%       5,453,086             0            0              0
                          person
                          Domestic
Jin Xin                                             0.54%       4,619,136     2,022,736            0              0
                          Natural Person
INVESCO FUNDS             Foreign legal
                                                    0.52%       4,454,844      -387,045            0              0
SICAV                     person
Hong Kong Central         Foreign legal
                                                    0.51%       4,423,878    -1,746,698            0              0
Clearing Limited          person
Wells Securities
                          Domestic non-
dividend index
                          State-owned               0.38%       3,244,400     3,244,400            0              0
enhanced securities
                          legal persons
investment fund
                          Domestic
Li Yifeng                                           0.34%       2,896,026     1,677,318            0              0
                          Natural Person
Strategic investors or general legal persons become the top
                                                              None.
10 shareholders due to the placement of new shares
Notes on association among above-mentioned                    None.
shareholders
Description of the above shareholders' entrusted /
                                                              None.
entrusted voting rights and waived voting rights
A special description of the special repurchase account
                                                              None.
among the first 10 shareholders
 Top ten shareholders holding unlimited tradable shares
          Shareholder Name                    Shares without Trading Restriction               Share Type
Nanchang Jiangling Investment Co., Ltd.                                354,176,000                     A share
FORD MOTOR COMPANY                                                          276,228,394                B share
Shanghai Automotive Co., Ltd.                                                13,019,610                A share
National Social Security Fund - One One
                                                                              6,643,441                      A share
Eight Combinations
GAOLING FUND,L.P.                                                             5,453,086                      B share
Jin Xin                                                                       4,619,136                      B share


                                                                                                        70
INVESCO FUNDS SICAV                                                             4,454,844                    B share
Hong Kong Central Clearing Limited                                              4,423,878                    A share
Wells Securities dividend index
                                                                                3,244,400                    A share
enhanced securities investment fund
Li Yifeng                                                                      2,896,026                     B share
The top 10 shareholders to sell circulated
shares, and the infinite tradable
                                             None.
relationship between shareholders and
top 10 shareholders or concerted action
Notes on association among above-            None.
mentioned shareholders
         Stock buy-back by top ten shareholders or top ten shareholders holding unlimited
         tradable shares in the reporting period
         □Applicable □√Not Applicable
         The top 10 common shareholders of the company and the top 10 common
         shareholders with unlimited conditions of sale did not conduct agreed repurchase
         transactions during the reporting period.

         II. Controlling Shareholders
         Nature of controlling shareholders: Central/Local government holdings, foreign
                                             holdings
         Type: Legal person
                                     Legal           Establishe Organization
                 Name                                                                Main scope of business
                                 representative       d Date       code
                                                                           investment management, industrial
          Nanchang Jiangling                         May 28,    91360125MA
                               Qiu Tiangao                                 investment, asset management
          Investment Co., Ltd.                       2019       38LUR91F
                                                                           and other business.
                                                                           to design, manufacture, market,
                                                                           and service a full line of Ford cars,
                                                                           trucks, sport utility vehicles
                                                                           (“SUVs”), electrified vehicles, and
          Ford Motor           William Clay          January 1,            Lincoln luxury vehicles, provide
          Company              Ford, Jr.             1903                  financial services through Ford
                                                                           Motor Credit Company LLC, and
                                                                           be pursuing leadership positions in
                                                                           electrification, autonomous
                                                                           vehicles, and mobility solutions.

         Change of controlling shareholders
         □Applicable □√Not Applicable
         The controlling shareholder of the company did not change during the reporting
         period.

         III. Actual Controlling Parties
         Nature of controlling shareholders: Central/Local State-owned Assets Supervision
                                             and Administration
         Type: Legal person

                           Legal      Established Organization
             Name                                                              Main scope of business
                       representative    Date        code
                                                               manufacturing of automobiles, engines,
                                                    9136000015 chassis, specialty vehicle, transmission,
          JMCG         Qiu Tiangao    July 27, 1991
                                                    8263759R other products, automotive quality testing,
                                                               sales of self-produced products and raw


                                                                                                        71
                                                      materials, equipment, electronic products,
                                                      parts and others, as well as related after-
                                                      sales services and maintenance services;
                                                      development of products derived from JMC
                                                      brand light vehicle; overseas auto project-
                                                      contracting, export equipment, material and
                                                      related labour services.
                                                      development, manufacturing, sales, import &
 Chongqing
                                                      export business of auto (including sedan),
 Changan                      October 31, 9150000020
               Zhu Huarong                            engine, automotive components, die, tools,
 Automobile                   1996           286320X6
                                                      installation of machinery, technological
 Co., Ltd.
                                                      consultant services.
 Equity of listed company in domestic and aboard
 market held by the entity controlled by the actual   None
 controlling party during the reporting period

Change of actual controlling parties
□Applicable □√Not Applicable
There was no change of actual controlling parties in the reporting period.

Ownership and control relations between the Company and the actual controlling
parties are shown as follows:

                  SASAC
                                     Nanchang State-owned Assets Supervision
                                          and Administration Committee
                       41.58%                               100%

  Chongqing Changan Automobile Co., Ltd.                  JMCG
                             50%                    50%

       Nanchang Jiangling Investment Co., Ltd.             Ford Motor Company
                                   41.03%                   32%

                       Jiangling Motors Co., Ltd.

Actual controlling parties control the Company by the way of trust or other assets
management
□Applicable □√Not Applicable

IV. The cumulative number of shares pledged by the controlling shareholder or the
largest shareholder and its acting partners accounts for 80% of the number of
shares held by them.
□Applicable □√Not Applicable

V. Other legal person shareholder holding more than 10% of total equity of the
Company
□Applicable □√Not Applicable

VI Shareholding reducing restriction to controlling shareholders, actual controlling
parties, restructuring parties and other commitment-making entities

                                                                                        72
□Applicable □√Not Applicable

4.The specific implementation of share repurchase during the reporting period
The implementation progress of share repurchase.
□Applicable □√Not Applicable
The implementation progress of the reduction of the shares repurchase through
centralized bidding
□Applicable □√Not Applicable




                                                                                73
Chapter VIII        Preferred Shares

□Applicable □√Not Applicable
JMC had no preferred shares in the reporting period.




                                                       74
Chapter IX          Bond related Information

□Applicable √Not Applicable




                                               75
Chapter X            Financial Statements
Type of Audit Report            Standard and Unqualified Opinion
Signature date                  March 28, 2022
Name of Auditor                 PricewaterhouseCoopers Zhong Tian LLP
Document No. of Audit Report    PwC ZT Shen Zi (2022) No. 10080




                                                                        76
                                            Auditor’s Report


                                                                 PwC ZT Shen Zi (2022) No. 10080
                                                                                     (Page 1 of 5)

    To the shareholders of Jiangling Motors Corporation, Ltd.,

    Opinion

    What we have audited

We have audited the accompanying financial statements of Jiangling Motors Corporation, Ltd.
(hereinafter “Jiangling Motors”), which comprise:

        the consolidated and company balance sheets as at 31 December 2021;
        the consolidated and company income statements for the year then ended;
        the consolidated and company cash flow statements for the year then ended;
        the consolidated and company statements of changes in equity for the year then ended;
        and
        notes to the financial statements.

    Our opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and company’s financial position of Jiangling Motorsas at 31 December 2021, and
their financial performance and cash flows for the year then ended in accordance with the
requirements of the Accounting Standards for Business Enterprises (“CASs”).

Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of Jiangling Motors in accordance with the Code of Ethics for Professional
Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have
fulfilled our other ethical responsibilities in accordance with the CICPA Code.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.

Key audit matters identified in our audit is Expenditures on research and development.




                                                                                              77
                                                                  PwC ZT Shen Zi (2022) No. 10080
                                                                                      (Page 2 of 5)

            Key Audit Matters (Cont’d)

Key Audit Matters                   How our audit addressed the Key Audit Matter

Expenditures on research            We understood, evaluated and tested the internal controls
and development                     related to the expenditures on research and development.

Please refer to Note 2(14)(e)       We obtained a breakdown, by value, of all individual research
and Note 4(16) to the financial     and development projects and reconciled this to the amounts of
statements.                         research and development expenses and capitalised research
                                    and development projects, which were recorded in the general
We focussed on this matter          ledger, identifying no reconciling differences.
due to the incurred amount of
research and development            We tested the projects where research and development
expenditures                   is   expenses were in excess of RMB21,000,000, together with a
RMB1,886,139,707,        among      sample of randomly selected immaterial projects from the
which the amount of the             remaining population, as follows:
development costs capitalised            We obtained the lists of expenses by nature on selected
is RMB 177,125,536 in 2021                 projects and inspected contracts and underlying
and the fact that there is                 invoices which were directly related to those projects.
management’s        judgement             We also checked the reasonableness of the indirect
involved in assessing whether              expenses attributable to relevant projects, including
the criteria set out in the                employment costs and depreciation expenses, by
accounting        policies(Note            understanding the allocating method and inspecting
2(14)(e)),     required      for
                                           the supporting for the assembling and allocating
capitalisation      of     such
                                           process of those indirect expenses.
development costs had been
met, particularly:                       We compared the recorded research and development
 Technical feasibility of the              costs of the above projects to their budgeted amounts
    project                                and discussed the progress of the above projects with
 Likelihood          of      the           the project managers.
   generating of sufficient
   future economic benefits         We found no material issues arising from the above procedures.
 Timing           to       start
   capitalisation
                                    We obtained the lists of capitalised projects and tested those
We had particular regard to         projects with the capitalised amounts over RMB21,000,000.
the fact that Jiangling Motors      We obtained explanations from management of why those
has continued to invest in the      projects were considered to be capital in nature, in terms of
technical improvements for its      how the specific requirements of CASs No. 6 - Intangible Assets
automobile     products,   and      were met. We also conducted interviews with individual project
therefore we focussed on the        managers responsible for those projects selected to corroborate
accuracy and completeness of        these explanations, which enabled us to independently assess
recorded      research     and      whether the projects met all the criteria for capitalisation set
development       expenditures      out in accounting standards. In addition, we reviewed the
and whether the economic            selected projects’ inspection reports at different phases
benefits of the projects under      including the reports which indicated that the subject projects
development supported the           entered into developmental stage and related management and
amounts capitalised.                board meeting minutes. We found the information we gathered
                                    from those documents to be consistent with explanations
As part of our work we also         obtained from individual project managers and to be in line
focussed on management’s           with management’s assessment that the costs met the relevant
judgements           regarding      capitalisation   criteria.  We considered        management’s
whether    capitalised   costs      judgements on whether those selected projects should be
were of a development stage         capitalised were appropriate.
rather than research stage
(which would result in the
costs being expensed rather
than     capitalised),     and

                                                                                                 78
whether    costs,     including
employment       costs,    were
directly    attributable     to
relevant projects.




                                                                    PwC ZT Shen Zi (2022) No. 10080
                                                                                        (Page 3 of 5)

 Other Information

 Management of Jiangling Motors is responsible for the other information. The other information
 comprises all of the information included in 2021 annual report of Jiangling Motors other than the
 financial statements and our auditor’s report thereon.

 Our opinion on the financial statements does not cover the other information and we do not express
 any form of assurance conclusion thereon.

 In connection with our audit of the financial statements, our responsibility is to read the other
 information and, in doing so, consider whether the other information is materially inconsistent with
 the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
 misstated. If, based on the work we have performed, we conclude that there is a material
 misstatement of this other information, we are required to report that fact. We have nothing to report
 in this regard.

 Responsibilities of Management and the Audit Committee for the Financial Statements

 Management of Jiangling Motors is responsible for the preparation and fair presentation of these
 financial statements in accordance with the CASs, and for such internal control as management
 determines is necessary to enable the preparation of financial statements that are free from material
 misstatement, whether due to fraud or error.

 In preparing these financial statements, management is responsible for assessing Jiangling Motors’s
 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
 using the going concern basis of accounting unless management either intend to liquidate Jiangling
 Motors or to cease operations, or have no realistic alternative but to do so.

 The Audit Committee is responsible for overseeing Jiangling Motors’sfinancial reporting process.

 Auditor’s Responsibilities for the Audit of the Financial Statements

 Our objectives are to obtain reasonable assurance about whether these financial statements as a
 whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
 report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
 guarantee that an audit conducted in accordance with CSAs will always detect a material
 misstatement when it exists. Misstatements can arise from fraud or error and are considered material
 if, individually or in the aggregate, they could reasonably be expected to influence the economic
 decisions of users taken on the basis of these financial statements.




                                                                                                     79
                                                                     PwC ZT Shen Zi (2022) No. 10080
                                                                                        (Page 4 of 5)

Auditor’s Responsibilities for the Audit of the Financial Statements(Cont’d)

As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:

        Identify and assess the risks of material misstatement of the financial statements, whether
        due to fraud or error, design and perform audit procedures responsive to those risks, and
        obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
        risk of not detecting a material misstatement resulting from fraud is higher than for one
        resulting from error, as fraud may involve collusion, forgery, intentional omissions,
        misrepresentations, or the override of internal control.


        Obtain an understanding of internal control relevant to the audit in order to design audit
        procedures that are appropriate in the circumstances.

        Evaluate the appropriateness of accounting policies used and the reasonableness of
        accounting estimates and related disclosures made by management.

        Conclude on the appropriateness of management’s use of the going concern basis of
        accounting and, based on the audit evidence obtained, whether a material uncertainty exists
        related to events or conditions that may cast significant doubt onJiangling Motors’s ability of
        to continue as a going concern. If we conclude that a material uncertainty exists, we are
        required to draw attention in our auditor’s report to the related disclosures in these financial
        statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
        based on the audit evidence obtained up to the date of our auditor’s report. However, future
        events or conditions may cause Jiangling Motors to cease to continue as a going concern.

        Evaluate the overall presentation (including the disclosures), structure and content of the
        financial statements, and whether the financial statements represent the underlying
        transactions and events in a manner that achieves fair presentation.

        Obtain sufficient appropriate audit evidence regarding the financial information of the
        entities or business activities within Jiangling Motors to express an opinion on the
        consolidated financial statements. We are responsible for the direction, supervision and
        performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.




                                                                                                    80
                                                                   PwC ZT Shen Zi (2022) No. 10080
                                                                                      (Page 5 of 5)


Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

From the matters communicated with the Audit Committee, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.




PricewaterhouseCoopers Zhong TianLLP          Signing CPA
                                                                ———————————
                                                                Lei Fang (Engagement Partner)


Shanghai, the People’s Republic of China     Signing CPA       ———————————
28 March 2022                                                   Ye Dan




                                                                                                 81
JIANGLING MOTORS CORPORATION, LTD.

CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF THE AUDITORS

31 DECEMBER 2021




                                        82
               JIANGLING MOTORS CORPORATION, LTD.
               CONSOLIDATED AND COMPANY BALANCE SHEET AS AT 31 DECEMBER 2021
               (All amounts in RMB Yuan unless otherwise stated)
            Assets               Notes    31 December2021   31 December 2020   31 December 2021   31 December 2020
                                            Consolidated      Consolidated         Company            Company
Current assets
Cash and cash equivalents         4(1)      9,569,051,314     11,121,955,129      7,706,280,711      8,473,562,045
Financial assets held for
trading                           4(2)        100,242,329       803,892,985                   -       502,797,917
Notes receivable                  4(3)        119,783,900                  -       300,000,000                   -
                                 4(4)、
Accounts receivable              15(1)      2,994,798,227      2,999,883,212      1,409,320,240      3,330,880,651
Financing receivables             4(5)        201,511,670       815,583,669          13,725,275         29,412,448
Advances to suppliers             4(6)        497,302,198       452,714,683        496,546,531        451,832,917
                                 4(7)、
Other receivables                15(2)        399,983,736       128,989,573        400,787,837       1,359,907,223
Inventories                       4(8)      1,974,728,632      2,086,605,692      1,974,728,632      2,020,079,494
Current portion of non-current
assets                           4(10)         13,236,153                  -         13,236,153                  -
Other current assets              4(9)        984,174,056       737,369,737        881,324,652        678,079,950
Total current assets                       16,854,812,215     19,146,994,680     13,195,950,031     16,846,552,645


Non-current assets
Long-term receivables            4(11)         44,952,638                  -         44,952,638                  -
                                 4(12)
                                  、
Long-term equity investments     15(3)        257,251,255         39,496,548      1,103,802,245      1,561,496,548
Fixed assets                     4(13)      6,029,302,031      5,165,956,410      5,497,170,652      4,331,796,677
Construction in progress         4(14)        448,338,672      1,535,497,770       448,112,420       1,429,348,858
Right-of-use assets              4(15)        306,225,810         28,405,890       304,449,400          28,405,890
Intangible assets                4(16)      1,073,881,961       931,391,553        844,988,965        637,918,837
Development expenditures         4(16)        111,004,350       173,473,242        111,004,350        173,473,242
Deferred tax assets              4(17)      1,233,315,188      1,163,969,325       285,288,625        370,120,915
Total non-current assets                    9,504,271,905      9,038,190,738      8,639,769,295      8,532,560,967


TOTAL ASSETS                               26,359,084,120     28,185,185,418     21,835,719,326     25,379,113,612




                                                                                                      83
                       JIANGLING MOTORS CORPORATION, LTD.
                       CONSOLIDATED AND COMPANY BALANCE SHEET AS AT 31 DECEMBER
                       2021(CONTINUED)
                       (All amounts in RMB Yuan unless otherwise stated))
                                           31 December 2021    31 December 2020   31 December 2021    31 December 2020
     Liabilities and equity        Notes     Consolidated        Consolidated         Company             Company

Current liabilities
Short-term borrowings              4(19)         300,000,000        500,000,000        300,000,000         500,000,000
Derivative financial liabilities   4(20)          10,704,619          3,716,727         10,704,619           3,716,727
Accounts payable                   4(21)       9,702,584,830     10,026,215,877      9,702,584,830      10,022,399,964
Contract liabilities               4(22)        272,274,177        558,526,846          67,392,485          42,397,868
Employee benefits payable          4(23)        766,986,525        759,368,606        690,921,936         687,984,808
Taxes payable                      4(24)        287,171,720        218,445,227        111,626,950           95,599,544
Other payables                     4(25)       5,253,800,805      4,153,849,625      1,985,838,271       1,495,307,482
Current portion of non-current
liabilities                        4(26)         78,039,188          10,909,163         76,893,591          10,909,163
Other current liabilities          4(27)        420,456,813        410,899,328          35,663,765          39,220,370
Total current liabilities                     17,092,018,677     16,641,931,399     12,981,626,447      12,897,535,926


Non-current liabilities
Long-term borrowings               4(28)           2,087,537          2,563,666          2,087,537           2,563,666
Lease liabilities                  4(29)        263,409,414          18,998,952       262,016,700           18,998,952
Provisions                         4(30)        197,587,164        195,896,139                   -                   -
Deferred income                    4(31)         49,074,545          49,944,625         49,074,545          49,944,625
Long-term employee benefits
payable                            4(32)         55,684,000          62,855,000         55,370,000          62,561,000
Deferred tax liabilities           4(17)         24,000,545        126,995,164                   -        102,300,000
Other non-current liabilities      4(33)        119,777,649          99,526,464       108,673,373           90,866,994
Total non-current liabilities                   711,620,854        556,780,010        477,222,155         327,235,237


Total liabilities                             17,803,639,531     17,198,711,409     13,458,848,602      13,224,771,163


Equity
Share capital                      4(34)        863,214,000        863,214,000        863,214,000         863,214,000
Capital surplus                    4(35)        839,442,490        839,442,490        839,442,490         839,442,490
Other comprehensive income         4(36)        (16,422,750)       (11,759,250)       (16,684,500)        (12,021,750)
Surplus reserve                    4(37)        431,607,000        431,607,000        431,607,000         431,607,000
Retained earnings                  4(38)       6,437,603,849      8,863,969,769      6,259,291,734      10,032,100,709
Total equity attributableto
shareholders of the Company                    8,555,444,589     10,986,474,009      8,376,870,724      12,154,342,449
Minority interests                                         -                  -                  -                   -
Total equity                                   8,555,444,589     10,986,474,009      8,376,870,724      12,154,342,449

TOTAL LIABILITIES AND
EQUITY                                        26,359,084,120     28,185,185,418     21,835,719,326      25,379,113,612

          Legal representative:Qiu Tiangao    CFO:Joey Zhu            Finance Department:Ding Ni




                                                                                                             84
                     JIANGLING MOTORS CORPORATION, LTD.
                     CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE YEAR ENDED 31
                     DECEMBER 2021
                     (All amounts in RMB Yuan unless otherwise stated)
                                                           2021               2020               2021               2020
              Item                       Notes
                                                       Consolidated       Consolidated        Company            Company
Revenue                               4(39)、15(4)      35,221,306,472     33,095,733,665     32,892,038,392     30,728,247,865
                                     4(39)、4(45)、
Less:Cost of sales
                                         15(4)         (30,117,454,367)   (27,518,509,913)   (29,110,316,368)   (26,277,296,318)
Taxes and surcharges                     4(40)            (968,148,993)      (837,877,008)      (928,747,793)      (808,544,571)
Selling and distribution expenses     4(41)、4(45)      (1,531,808,043)    (1,544,737,028)      (247,250,188)      (226,152,644)
General and administrative
expenses                              4(42)、4(45)      (1,152,218,590)    (1,012,347,173)     (993,790,073)      (806,195,496)
Research and development
expenses                              4(43)、4(45)      (1,709,014,171)    (1,343,812,092)    (1,696,132,130)    (1,341,100,949)
Financial expenses                       4(44)              295,755,557        197,567,513        212,372,641        179,281,512
  Including: Interest expenses                             (23,640,234)       (19,283,170)       (23,561,570)       (19,232,913)
             Interest income                                300,401,839        215,262,461        216,746,764        196,071,590
Add: Other income                        4(48)              551,071,245        268,222,289        550,726,007        246,472,249
Investment income                     4(49)、15(5)            (568,716)         70,178,856       (46,544,278)         70,427,986
  Including: Share of profit of
associates and joint ventures         4(49)、15(5)         (22,245,293)        (1,438,009)       (21,475,697)         (1,438,009)
Gains on changes in fair value           4(50)             (10,638,548)            721,890        (9,785,809)           (373,178)
Credit impairment losses                 4(47)               14,328,162      (79,766,249)           3,505,404       (56,761,565)
Asset impairment losses                  4(46)             (43,273,452)     (681,884,784)     (1,422,816,945)    (1,158,304,106)
Gains on disposal of assets              4(51)               16,977,005          (713,072)         26,312,882           (548,969)
Operating profit                                           566,313,561        612,776,894       (770,428,258)        549,151,816
Add: Non-operating income                4(52)                4,606,837        11,634,917           2,363,699           4,303,815
Less: Non-operating expenses             4(53)             (14,448,952)     (172,753,545)        (14,140,968)       (30,611,761)
Total profit                                               556,471,446        451,658,266       (782,205,527)        522,843,870
Less: Income tax expenses                4(54)               17,694,498        99,040,692          15,547,022         85,506,286
Net profit                                                 574,165,944        550,698,958       (766,658,505)        608,350,156
Classified by continuity of
operations
Net profit from continuing
operations                                                 574,165,944        550,698,958      (766,658,505)          608,350,156
Net profit from discontinued
operations                                                            -                  -                  -                   -
Classified by ownership of the
equity
Minority interests                                                    -                  -                  -                   -
Attributable to shareholders of
the Company                                                574,165,944        550,698,958      (766,658,505)          608,350,156
Other comprehensive income,
net of tax
Attributable to shareholders of
the Company
Other comprehensive income
items which will not be
reclassified to profit or loss
Changes arising from
remeasurement of defined
benefit plan                             4(36)              (4,663,500)         (363,750)         (4,662,750)           (405,000)
Attributable to minority interests                                    -                 -                   -                   -
Total comprehensive income                                 569,502,444        550,335,208      (771,321,255)          607,945,156
Attributable to shareholders of
the Company                                                569,502,444        550,335,208      (771,321,255)          607,945,156
Attributable to minority interests                                   -                  -                  -                    -
Earnings per share
Basic earnings per share(RMB
Yuan)                                    4(55)                    0.67               0.64        ——                 ——
Diluted earnings per share(RMB
Yuan)                                    4(55)                    0.67               0.64        ——                 ——
          Legal representative:Qiu Tiangao           CFO:Joey Zhu          Finance Department:Ding Ni


                                                                                                                 85
                  JIANGLING MOTORS CORPORATION, LTD.
                  CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE YEAR ENDED
                  31 DECEMBER 2021
                   (All amounts in RMB Yuan unless otherwise stated)
                                                           2021               2020                2021                   2020
                    Item                     Notes
                                                        Consolidated       Consolidated         Company                Company
Cash flows from operating activities
Cash received from sales of goods or
rendering of services                                   39,004,121,378      35,125,114,857     37,770,178,605         30,135,915,527
Cash received relating to other operating
activities                                   4(56)         736,780,886         445,795,274        613,181,977            348,244,836
Sub-total of cash inflows                               39,740,902,264      35,570,910,131     38,383,360,582         30,484,160,363
Cash paid for goods and services                       (30,184,229,122)    (25,087,676,080)   (29,501,916,289)    (24,034,906,418)
Cash paid to and on behalf of employees                 (2,621,245,572)     (2,140,291,935)    (2,458,757,584)        (1,934,667,949)
Payments of taxes and surcharges                        (2,262,657,388)     (1,797,705,380)    (1,819,787,242)        (1,561,759,004)
Cash paid relating to other operating
activities                                   4(56)      (2,912,577,172)     (2,846,893,908)    (1,742,292,716)     (1,708,207,234)
Sub-total of cash outflows                             (37,980,709,254)    (31,872,567,303)   (35,522,753,831)    (29,239,540,605)
Net cash flows from operating activities     4(57)       1,760,193,010       3,698,342,828      2,860,606,751          1,244,619,758
Cash flows from investing activities
Cash received from disposal of
investments                                              2,500,000,000      15,307,000,000      2,142,000,000         17,624,568,383
Cash received from returns on investments                   15,174,593          77,849,662          3,894,456             75,400,552
Net cash received from disposal of fixed
assets, intangible assets and other long-
term assets                                                 37,460,481          32,672,679         36,440,992             30,206,852
Cash received from disposal of
subsidiaries and other business units                       84,615,031                    -       108,000,000                       -
 Cash received relating to other investing
activities                                   4(56)         278,704,216         191,356,815        215,581,457            249,783,971
Sub-total of cash inflows                                2,915,954,321      15,608,879,156      2,505,916,905         17,979,959,758
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets                                                  (1,169,407,698)     (1,410,515,107)    (1,158,649,784)     (1,357,972,695)
Cash paid to acquire investments                        (1,800,000,000)    (16,107,000,000)    (1,720,252,413)    (18,467,738,455)
Cash paid relating to other investing
activities                                                 (25,184,522)         (4,802,479)       (20,697,147)            (4,802,479)
Sub-total of cash outflows                              (2,994,592,220)    (17,522,317,586)    (2,899,599,344)    (19,830,513,629)
Net cash flows from investing activities                   (78,637,899)     (1,913,438,430)     (393,682,439)         (1,850,553,871)
Cash flows from financing activities
Cash received from borrowings                            1,484,497,639       2,291,211,222      1,484,497,639          2,291,211,222
Sub-total of cash inflows                                 1,484,497,639       2,291,211,222      1,484,497,639          2,291,211,222
Cash repayments of borrowings                           (1,700,425,493)     (1,800,450,682)    (1,700,425,493)        (1,800,450,682)
Cash payments for distribution of
dividends, profits or interest expenses                 (3,002,467,779)        (78,895,390)    (3,002,467,779)          (78,895,390)
Cash paid relating to other financing
activities                                   4(56)         (16,063,293)        (12,751,077)       (15,810,013)          (10,297,938)
Sub-total of cash outflows                              (4,718,956,565)     (1,892,097,149)    (4,718,703,285)        (1,889,644,010)
Net cash flows from financing activities                (3,234,458,926)         399,114,073    (3,234,205,646)            401,567,212
Effect of foreign exchange rate changes
on cash and cash equivalents                                           -                  -                  -                      -
Net increase/(decrease) in cash and
cash equivalents                             4(57)      (1,552,903,815)      2,184,018,471      (767,281,334)          (204,366,901)
Add: Cash and cash equivalents at
beginning of year                            4(57)      11,121,955,129       8,937,936,658      8,473,562,045          8,677,928,946
Cash and cash equivalents at end of
year                                         4(57)       9,569,051,314      11,121,955,129      7,706,280,711          8,473,562,045
        Legal representative:Qiu Tiangao            CFO:Joey Zhu          Finance Department:Ding Ni


                                                                                                                 86
       JIANGLING MOTORS CORPORATION, LTD.
       CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
                                                                  Attributable to shareholders of the parent company
                                                                                       Other                                          Minority
                       Item                         Notes Share        Capital                        Surplus       Retained                     Total equity
                                                                                   comprehensive                                     interests
                                                          capital     surplus                         reserve       earnings
                                                                                      income
Balance at 1 January 2020                                863,214,000   839,442,490   (11,395,500)   431,607,000    8,373,695,791             -   10,496,563,781
Movements for the year ended31 December 2020                       -             -      (363,750)             -      490,273,978             -      489,910,228
 Total comprehensive income
Net profit                                                         -             -              -             -      550,698,958             -      550,698,958
  Other comprehensive income                                       -             -      (363,750)             -                -             -        (363,750)
  Total comprehensive income for the year                          -             -      (363,750)             -      550,698,958             -      550,335,208
 Profit distribution
Distribution to shareholders                     4(38)             -             -              -             -       (60,424,980)           -      (60,424,980)
Balance at 31 December 2020                              863,214,000   839,442,490   (11,759,250)   431,607,000     8,863,969,769            -   10,986,474,009
Balance at 1 January 2021                                863,214,000   839,442,490   (11,759,250)   431,607,000     8,863,969,769            -   10,986,474,009
Movements for the year ended31 December 2021                       -             -    (4,663,500)             -   (2,426,365,920)            -   (2,431,029,420)
 Total comprehensive income
Net profit                                                         -             -              -             -      574,165,944             -      574,165,944
 Other comprehensive income                                        -             -    (4,663,500)             -                -             -       (4,663,500)
Total comprehensive income for the year                            -             -    (4,663,500)             -      574,165,944             -      569,502,444
 Profit distribution
Distribution to shareholders                     4(38)             -           -                -            -   (3,000,531,864)             -   (3,000,531,864)
Balance at 31 December 2021                              863,214,000 839,442,490     (16,422,750) 431,607,000      6,437,603,849             -     8,555,444,589
         Legal representative:Qiu Tiangao               CFO:Joey Zhu                      Finance Department:Ding Ni




                                                                                                                                                    87
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB unless otherwise stated)
                                                                             Other
                                               Share          Capital
                Item               Notes                                comprehensive       Surplus reserve     Retained earnings       Total equity
                                               capital        surplus
                                                                           income
Balance at 1 January 2020                    863,214,000    839,442,490     (11,616,750)         431,607,000           9,484,175,533     11,606,822,273
Movements for the year ended
31 December 2020                                        -             -        (405,000)                    -            547,925,176        547,520,176
  Total comprehensive income
 Net profit                                             -             -                -                    -            608,350,156        608,350,156
    Other comprehensive income                          -             -        (405,000)                    -                       -         (405,000)
    Total comprehensive income
for the year                                            -             -        (405,000)                    -            608,350,156        607,945,156
  Profit distribution
 Distribution to shareholders       4(38)               -             -                -                    -            (60,424,980)       (60,424,980)
Balance at 31 December 2020                  863,214,000    839,442,490     (12,021,750)         431,607,000         10,032,100,709      12,154,342,449
Balance at 1 January 2021                    863,214,000    839,442,490     (12,021,750)         431,607,000         10,032,100,709      12,154,342,449
Movements for the year ended
31 December 2021                                        -             -      (4,662,750)                    -        (3,772,808,975)     (3,777,471,725)
  Total comprehensive income
 Net profit                                             -             -                -                    -          (766,658,505)      (766,658,505)
    Other comprehensive income                          -             -      (4,662,750)                    -                       -       (4,662,750)
    Total comprehensive income
for the year                                            -             -      (4,662,750)                    -          (766,658,505)      (771,321,255)
  Profit distribution
 Distribution to shareholders       4(38)               -             -                -                    -        (3,000,531,864)     (3,000,531,864)
    Others                                              -             -                -                    -             (5,618,606)         (5,618,606)
Balance at 31 December 2021                  863,214,000    839,442,490     (16,684,500)         431,607,000           6,259,291,734       8,376,870,724
Legal representative:Qiu Tiangao                      CFO:Joey Zhu                     Finance Department:Ding Ni




                                                                                                                            88
    JIANGLING MOTORS CORPORATION, LTD.

    NOTES TO THE FINANCIAL STATEMENTS
    FOR THE YEAR EDNED 31 DECEMBER 2021
    (All amounts in RMB Yuan unless otherwise stated)
    [English translation for reference only]



1   General information

    Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
    enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
    Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi
    Motors Manufacturing Factory on 16 June 1992. The registration number of the enterprise
    business license is No. 913600006124469438. The registered address of the Company
    and the address of its headquarters are both Nanchang City, Jiangxi Province of the
    People’s Republic of China (“the PRC”).

    On 23 July 1993, with the approval of the China Securities Regulatory Commission
    (hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi
    [1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1
    December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of
    25,214,000 shares were distributed for the 1993 dividend distribution programme with the
    approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group
    (Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi
    [1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Office Fu
    [1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998,
    with the approval of CSRC (Zheng Jian Fa Zi [1998] No. 19), the Company issued
    additional 170,000,000 B shares.

    According to the resolution of the shareholders’ meeting regarding the split share structure
    reform on 11 January 2006, the Company implemented the Scheme on Split Share
    Structure Reform on 13 February 2006. After the implementation, the Company’s total
    paid-in capital remains the same. Related details are disclosed in Note 4(34).

    As at 31 December 2021, the Company’s paid-in capital totalled RMB863,214,000, with
    par value of RMB1 per share.

    The business scope of the Company and its subsidiaries (hereinafter “the Group”)
    includes production and sales of automobile assemblies such as automobiles, special
    (modified) vehicles, engines and chassis and other automobile parts, and provision of
    related after-sales services; retail and wholesale of imported E series automobiles of Ford
    Motor (China) Co., Ltd. (“FORD”) as the dealer; import and export of automobiles and
    parts; dealership of used cars; provision enterprise management and consulting services
    related to production and sales of automobiles.

    Subsidiaries included in the consolidation scope for the current year are detailed in Note
    6.

    These financial statements were authorised for issue by the Company's Board of Directors
    on 28th March 2022.

2   Summary of significant accounting policies and accounting estimates

    The Group determines specific accounting policies and estimates based on the features of
    its production and operation, which mainly comprise the measurement of expected credit
    losses (“ECL”) on receivables (Note 2(8)), valuation of inventories (Note 2(9)),
    depreciation of fixed assets and amortisation of intangible assets and right-of-use assets
    (Note 2(11), (14), (22)), criteria for capitalisation of development expenditures (Note
    2(14)), recognition and measurement of revenue (Note 2(19)), etc.

    Key judgements and critical accounting estimates and key assumptions applied by the
    Group on the determination of significant accounting policies are set out in Note 2(24).




                                                                                                89
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

2     Summary of significant accounting policies and accounting estimates (Cont’d)

(1)   Basis of preparation

      The financial statements are prepared in accordance with the Accounting Standards for
      Business Enterprises - Basic Standard, specific accounting standards and relevant
      regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent
      periods (hereinafter collectively referred to as “the Accounting Standards for Business
      Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of
      Information Disclosure by Companies Offering Securities to the Public No.15 - General
      Rules on Financial Reporting issued by CSRC.

      As at 31 December 2021, the Group's net current liabilities amounted to
      RMB237,206,462. Of which, the contract liabilities amount to RMB272,274,177will be
      recognised in revenue within 12 months after the balance sheet date. The reason for the
      occurrence of net current liabilities at the end of this year was mainly due to the significant
      amount of cash dividends distributed to all shareholders by the Company this year(Note 4
      (38)). Considering the 12-month cash flow projection of the Group provided by the
      management, including the expected netoperation cash inflows and the bank facilities
      available, as well as the dividends distribution plan proposed by the Board of Directors
      and the expected net investment cash outflows, the management expected that the Group
      has enough funds to cover maturing debt and maintain the usual operation in the next 12
      months. Accordingly, the management of the Company prepared the financial statements
      on a going concern basis.

(2)   Statement of compliance with the Accounting Standards for Business Enterprises

      The financial statements of the Company for the year ended 31 December 2021 are in
      compliance with the Accounting Standards for Business Enterprises, and truly and
      completely present the consolidated and company’s financial position of the Company. As
      at 31 December 2021 and their financial performance, cash flows and other information
      for the year then ended.

(3)   Fiscal year

      The Company’s fiscal year starts on 1 January and ends on 31 December.

(4)   Recording currency

      The recording currency is Renminbi (“RMB”). The financial statements are presented in
      RMB.

(5)   Preparation of consolidated financial statements

      The consolidated financial statements comprise the financial statements of the Company
      and all of its subsidiaries.

      Subsidiaries are consolidated from the date on which the Group obtains control and are
      de-consolidated from the date that such control ceases. For a subsidiary that is acquired
      in a business combination involving enterprises under common control, it is included in the
      consolidated financial statements from the date when it, together with the Company,
      comes under common control of the ultimate controlling party. The portion of the net
      profits realised before the combination date is presented separately in the consolidated
      income statement.




                                                                                                   90
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

2     Summary of significant accounting policies and accounting estimates (Cont’d)

(5)   Preparation of consolidated financial statements (Cont'd)

      In preparing the consolidated financial statements, where the accounting policies or the
      accounting periods of the Company and subsidiaries are inconsistent, the financial
      statements of the subsidiaries are adjusted in accordance with the accounting policies and
      the accounting period of the Company. For subsidiaries acquired from business
      combinations involving enterprises not under common control, the individual financial
      statements of the subsidiaries are adjusted based on the fair value of the identifiable net
      assets at the acquisition date.

      All significant intra-group balances, transactions and unrealised profits are eliminated in
      the consolidated financial statements. The portion of subsidiaries’ shareholders' equity
      and the portion of subsidiaries’ net profits and losses and comprehensive income for the
      period not attributable to the Company are recognised as minority interests, net profit
      attributed to minority interests and total comprehensive income attributed to minority
      interests, and presented separately in the consolidated financial statements under
      shareholders' equity, net profits and total comprehensive income respectively. If the
      subsidiaries’ loss for the current period attributed to the minority shareholders exceeds
      their share in the opening shareholder’s equity, the excess will be deducted against the
      minority interests. Unrealised profits and losses resulting from the sale of assets by the
      Company to its subsidiaries are fully eliminated against net profit attributable to owners of
      the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary
      to the Company are eliminated and allocated between net profit attributable to owners of
      the parent and net profit attributed to minority interests in accordance with the allocation
      proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the
      sale of assets by one subsidiary to another are eliminated and allocated between net profit
      attributable to owners of the parent and net profit attributed to minority interests in
      accordance with the allocation proportion of the parent in the subsidiary.

      If the accounting treatment of a transaction is inconsistent in the financial statements at
      the Group level and at the Company or its subsidiary level, adjustment will be made from
      the perspective of the Group.

      The Group remeasure the remaining investment held at its fair value in the consolidated
      statement of financial position when the control is lost because of the partially disposal of
      the equity or other reasons. The difference between the consideration of the disposal as
      well as the fair value of the remaining investment and the share of net assets of the former
      subsidiary calculated based on the original share since the acquisition date as well as the
      good will is recognised in investment income in the period of control lost. In addition, the
      other comprehensive income and other changes in owner's equity related to the
      investment of the former subsidiary, are reclassified to profit or loss when the control is
      lost, except for the changes arising from remeasurement of net liabilities or net assets of
      defined benefit, the accumulated changes in fair value from the equity instruments not
      held for trading and designated as financial assets at fair value through other
      comprehensive income by the investee.

(6)   Cash and cash equivalents

      Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on
      demand, and short-term and highly liquid investments that are readily convertible to
      known amounts of cash and which are subject to an insignificant risk of changes in value.




                                                                                                 91
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

2     Summary of significant accounting policies and accounting estimates (Cont’d)

(7)   Foreign currency translation

      Foreign currency transactions

      Foreign currency transactions are translated into recording currency using the exchange
      rates prevailing at the dates of the transactions.

      At the balance sheet date, monetary items denominated in foreign currencies are
      translated into recording currency using the spot exchange rates on the balance sheet
      date. Exchange differences arising from these translations are recognised in profit or loss
      for the current period, except for those attributable to foreign currency borrowings that
      have been taken out specifically for acquisition or construction of qualifying assets, which
      are capitalised as part of the cost of those assets. Non-monetary items denominated in
      foreign currencies that are measured at historical costs are translated at the balance sheet
      date using the spot exchange rates at the date of the transactions. The effect of exchange
      rate changes on cash is presented separately in the cash flow statement.

(8)   Financial instruments

      A financial instrument is any contract that gives rise to a financial asset of one entity and a
      financial liability or equity instrument of another entity. A financial asset or a financial
      liability is recognised when the Group becomes a party to the contractual provisions of the
      instrument.

(a)   Financial assets

(i)   Classification and measurement

      Based on the business model for managing the financial assets and the contractual cash
      flow characteristics of the financial assets, financial assets are classified as: (1) financial
      assets at amortised cost; (2) financial assets at fair value through other comprehensive
      income; (3) financial assets at fair value through profit or loss.

      The financial assets are measured at fair value at initial recognition. Related transaction
      costs that are attributable to the acquisition of the financial assets are included in the
      initially recognised amounts, except for the financial assets at fair value through profit or
      loss, the related transaction costs of which are recognised directly in profit or loss for the
      current period. Accounts receivable or notes receivable arising from sales of products or
      rendering of services (excluding or without regard to significant financing components) are
      initially recognised at the consideration that is entitled to be charged by the Group as
      expected.

      Debt instruments

      The debt instruments held by the Group refer to the instruments that meet the definition of
      financial liabilities from the perspective of the issuer, and are measured in the following
      three ways:

      Measured at amortised cost:

      The objective of the Group’s business model is to hold the financial assets to collect the
      contractual cash flows, and the contractual cash flow characteristics are consistent with a
      basic lending arrangement, which gives rise on specified dates to the contractual cash
      flows that are solely payments of principal and interest on the principal amount
      outstanding. The interest income of such financial assets is recognised using the effective
      interest method. Such financial assets mainly include cash at bank and on hand, notes
      receivable, accounts receivable, other receivables and long-term receivables, etc.
                                                                                                92
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

2     Summary of significant accounting policies and accounting estimates (Cont’d)

(8)   Financial instruments (Cont’d)

(a)   Financial assets (Cont’d)

(i)   Classification and measurement (Cont’d)

      Measured at fair value through other comprehensive income:

      The objective of the Group’s business model is to hold the financial assets to both collect
      the contractual cash flows and sell such financial assets, and the contractual cash flow
      characteristics are consistent with a basic lending arrangement. Such financial assets are
      measured at fair value through other comprehensive income, except for the impairment
      gains or losses, foreign exchange gains and losses, and interest income calculated using
      the effective interest method which are recognised in profit or loss for the current period.
      Such financial assets mainly include financing receivables, etc.

      Measured at fair value through profit or loss:

      Debt instruments held by the Group that are not divided into those at amortised cost, or
      those measured at fair value through other comprehensive income, are measured at fair
      value through profit or loss. At initial recognition, the Group does not designate a portion
      of financial assets as at fair value through profit or loss to eliminate or significantly reduce
      an accounting mismatch. Financial assets that are due in more than one year as from the
      balance sheet date and are expected to be held for over one year are included in other
      non-current financial assets, and the others are included in financial assets held for
      trading.




                                                                                                    93
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(8)    Financial instruments (Cont’d)

(a)    Financial assets (Cont’d)

(ii)   Impairment

       Loss provision for financial assets at amortised cost and investments in debt instruments
       at fair value through other comprehensive income is recognised on the basis of ECL.

       Giving consideration to reasonable and supportable information on past events, current
       conditions and forecasts of future economic conditions, as well as the default risk weight,
       the Group recognises the ECL as the probability-weighted amount of the present value of
       the difference between the cash flows receivable from the contract and the cash flows
       expected to collect.

       As at each balance sheet date, the ECL of financial instruments at different stages are
       measured respectively. 12-month ECL provision is recognised for financial instruments in
       Stage 1 that have not had a significant increase in credit risk since initial recognition;
       lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a
       significant increase in credit risk yet without credit impairment since initial recognition; and
       lifetime ECL provision is recognised for financial instruments in Stage 3 that have had
       credit impairment since initial recognition.

       For the financial instruments with low credit risk on the balance sheet date, the Group
       assumes there is no significant increase in credit risk since initial recognition and
       recognises the 12-month ECL provision.

       For the financial instruments in Stage 1, Stage 2 and with low credit risk, the Group
       calculates the interest income by applying the effective interest rate to the gross carrying
       amount (before deduction of the impairment provision). For the financial instrument in
       Stage 3, the interest income is calculated by applying the effective interest rate to the
       amortised cost (after deduction of the impairment provision from the gross carrying
       amount).

       For notes receivable, accounts receivable and financing receivables arising from sales of
       goods and rendering of services in the ordinary course of operating activities, the Group
       measures the lifetime ECL provision regardless of whether there is a significant financing
       component.




                                                                                                     94
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(8)    Financial instruments (Cont'd)

(a)    Financial assets (Cont’d)

(ii)   Impairment (Cont’d)

       In case the ECL of an individually assessed financial asset can be evaluated with reasonable
       cost, the Group determines the ECL based on impairment assessment of an individual financial
       asset. In case the ECL of an individually assessed financial asset cannot be evaluated with
       reasonable cost, the Group divides the receivables into certain groupings based on credit risk
       characteristics, and calculates the ECL for the groupings. Basis for determining groupings and
       related provision method are as follows:

       Grouping - Bank acceptance notes                    State-owned banks and joint stock banks
       Grouping - Trade acceptance notes                   Customers purchasing using Trade acceptance
       Grouping - Sales of general automobiles:            Customers of general automobiles
       Grouping - Sales of new energy automobiles          Customers of new energy automobiles
       Grouping - Sales of automobile parts                Customers of automobile parts
       Grouping -operating advances and
         guarantees                                        Operating advances and guarantees
       Grouping –Others                                   Accrued interest on cash at bank

       For accounts receivable that are classified into groupings and notes receivable and financing
       receivables arising from sales of goods and rendering of services in the ordinary course of
       operating activities, the Group calculates the ECL with reference to historical credit losses
       experience, current conditions and forecasts of future economic conditions, and based on the
       exposure at default and the lifetime ECL rate. For other notes receivable, financing receivables
       and other receivables classified into groupings, the Group calculates the ECL with reference to
       the historical credit loss experience, current conditions and forecasts of future economic
       conditions, and based on the exposure at default and the 12-month or lifetime ECL rate.

       The Group recognises the loss provision made or reversed into profit or loss for the current
       period. For debt instruments held at fair value through other comprehensive income, the Group
       adjusts other comprehensive income while the impairment loss or gain is recognised in profit or
       loss for the current period.




                                                                                                95
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(8)     Financial instruments (Cont'd)

(a)     Financial assets (Cont’d)

(iii)   Derecognition

        A financial asset is derecognised when: (i) the contractual rights to the cash flows from the
        financial asset expire, (ii) the financial asset has been transferred and the Group transfers
        substantially all the risks and rewards of ownership of the financial asset to the transferee,
        or (iii) the financial asset has been transferred and the Group has not retained control of
        the financial asset, although the Group neither transfers nor retains substantially all the
        risks and rewards of ownership of the financial asset.

        When a financial asset is derecognised, the difference between the carrying amount and
        the sum of the consideration received and the cumulative changes in fair value that are
        previously recognised directly in other comprehensive income is recognised in profit or
        loss for the current period.

(b)     Financial liabilities

        Financial liabilities are classified as financial liabilities at amortised cost and financial
        liabilities at fair value through profit or loss at initial recognition.

        Financial liabilities of the Group mainly comprise financial liabilities at amortised cost,
        including notes payable, accounts payable, other payables, borrowings, etc. Such
        financial liabilities are initially recognised at fair value, net of transaction costs incurred,
        and subsequently measured using the effective interest method. Financial liabilities that
        are due within one year (inclusive) are classified as current liabilities; those with maturities
        over one year but are due within one year (inclusive) as from the balance sheet date are
        classified as current portion of non-current liabilities. Others are classified as non-current
        liabilities.

        A financial liability is derecognised or partly derecognised when the underlying present
        obligation is discharged or partly discharged. The difference between the carrying amount
        of the derecognised part of the financial liability and the consideration paid is recognised
        in profit or loss for the current period.




                                                                                                      96
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

2     Summary of significant accounting policies and accounting estimates (Cont’d)

(8)   Financial instruments (Cont’d)

(c)   Determination of fair value of financial instruments

      The fair value of a financial instrument that is traded in an active market is determined at
      the quoted price in the active market. The fair value of a financial instrument that is not
      traded in an active market is determined by using a valuation technique. In valuation, the
      Group adopts valuation techniques applicable in the current situation and supported by
      adequate available data and other information, selects inputs with the same characteristics
      as those of assets or liabilities considered in relevant transactions of assets or liabilities by
      market participants, and gives priority to the use of relevant observable inputs. When
      relevant observable inputs are not available or feasible, unobservable inputs are adopted.

(9)   Inventories

(a)   Classification

      Inventories include raw materials, work in progress products, finished goods, materials in
      transit, low value consumables, materials consigned for processing, etc., and are
      measured at the lower of cost and net realisable value.

(b)   Costing of inventories

      Cost is determined using the weighted average method. The cost of finished goods and
      work in progress comprise raw materials, direct labour and systematically allocated
      production overhead based on the normal production capacity.

(c)   Basis for determining net realisable value of inventories and method for making provision
      for inventories

      Provision for inventories is determined at the excess amount of the carrying amounts of
      the inventories over their net realisable value. Net realisable value is determined based on
      the estimated selling price in the ordinary course of business, less the estimated costs to
      completion and estimated costs necessary to make the sale and related taxes.

(d)   The Group adopts the perpetual inventory system.

(e)   Amortisation methods of low-value consumables

      Low-value consumables are amortised into expenses in full when issued for use.




                                                                                                     97
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(10)   Long-term equity investments

       Long-term equity investments comprise the Company’s long-term equity investments in its
       subsidiaries, and the Group’s long-term equity investments in its associates.

       Subsidiaries are the investees over which the Company is able to exercise control.
       Associates are the investees that the Group has a significant influence on their financial
       and operating decisions.

       Investments in subsidiaries are presented using the cost method in the Company’s
       financial statements, and adjusted to the equity method when preparing the consolidated
       financial statements. Investments in associates are accounted for using the equity
       method.

(a)    Determination of investment cost

       For long-term equity investments acquired through a business combination involving
       enterprises under common control, the investment cost shall be the absorbing party’s
       share of the carrying amount of owners’ equity of the party being absorbed in the
       consolidated financial statements of the ultimate controlling party at the combination date;
       for long-term equity investments acquired through a business combination not involving
       enterprises under common control, the investment cost shall be the combination cost.

       For long-term equity investments acquired not through a business combination, such as
       long-term equity investments acquired by payment in cash, the initial investment cost shall
       be the purchase price actually paid; for long-term equity investments acquired by issuing
       equity securities, the initial investment cost shall be the fair value of the equity securities
       issued.

(b)    Subsequent measurement and recognition of profit or loss

       Long-term equity investments accounted for using the cost method are measured at the
       initial investment cost. Cash dividend or profit distribution declared by an investee is
       recognised as investment income into profit or loss for the current period.

       Where the initial investment cost exceeds the Group’s share of the fair value of the
       investee’s identifiable net assets at the time of acquisition, the investment is initially
       measured at that cost. Where the initial investment cost is less than the Group’s share of
       the fair value of the investee’s identifiable net assets at the time of acquisition, the
       difference is included in profit or loss for the current period and the cost of the long-term
       equity investment is adjusted upwards accordingly.




                                                                                                    98
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(10)   Long-term equity investments (Cont’d)

(b)    Subsequent measurement and recognition of profit or loss (Cont’d)

       For long-term equity investments accounted for using the equity method, the Group
       recognises the investment income or losses according to its share of net profit or loss of
       the investee. The Group does not recognise further losses when the carrying amounts of
       the long-term equity investment together with any long-term interests that, in substance,
       form part of the Group’s net investment in investees are reduced to zero. However, if the
       Group has obligations for additional losses and the criteria with respect to recognition of
       provisions are satisfied, the Group continues recognising the investment losses and the
       provisions at the amount it expects to undertake. The Group’s share of the changes in
       investee’s owner's equity other than those arising from the net profit or loss, other
       comprehensive income and profit distribution is recognised in capital surplus with a
       corresponding adjustment to the carrying amounts of the long-term equity investment. The
       carrying amount of the investment is reduced by the Group’s share of the profit distribution
       or cash dividends declared by the investees. Unrealised gains or losses on transactions
       between the Group and its investees are eliminated to the extent of the Group’s equity
       interest in the investees, based on which the investment income or losses are recognised.
       Any losses resulting from transactions between the Group and its investees, which are
       attributable to asset impairment losses are not eliminated.

(c)    Basis for determining existence of control and significant influence over investees

       Control is the power over investees that can bring variable returns through involvement in
       related activities of investees and the ability to influence the returns by using such power
       over investees.

       Significant influence is the power to participate in making decisions on financial and
       operating policies of the investee but is not control or joint control over making those
       policies.

(d)    Impairment of long-term equity investments

       The carrying amounts of long-term equity investments in subsidiaries and associates is
       reduced to the recoverable amounts when the recoverable amounts are below their
       carrying amount (Note 2(15)).

(11)   Fixed assets

(a)    Recognition and initial measurement of fixed assets

       Fixed assets comprise buildings, machinery and equipment, Vehicles, moulds, and
       electronic and other equipment.

       Fixed assets are recognised when it is probable that the related economic benefits will
       flow to the Group and the costs can be reliably measured. Fixed assets purchased or
       constructed by the Group are initially measured at cost at the time of acquisition. The fixed
       assets contributed by the state-owned shareholders upon the restructuring of the
       Company are recorded at the valued amount determined by the state-owned asset
       administration department.




                                                                                                  99
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(11)   Fixed assets (Cont’d)

(a)    Recognition and initial measurement of fixed assets (Cont’d)

       Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed
       asset when it is probable that the associated economic benefits will flow to the Group and
       the related cost can be reliably measured. The carrying amount of the replaced part is
       derecognised. All the other subsequent expenditures are recognised in profit or loss for
       the period in which they are incurred.

(b)    Depreciation methods of fixed assets

       Fixed assets are depreciated using the straight-line method to allocate the cost of the
       assets to their estimated net residual values over their estimated useful lives. For the fixed
       assets that have been provided for impairment loss, the related depreciation charge is
       prospectively determined based upon the adjusted carrying amounts over their remaining
       useful lives.

       The estimated useful lives, the estimated net residual values expressed as a percentage
       of cost and the annual depreciation rates of fixed assets are as follows:

                                              Estimated useful      Estimated net    Annual depreciation
                                                         lives     residual values                 rates

       Buildings                                 35 to 40 years               4%           2.4% to 2.7%
       Machinery and equipment                   10 to 15 years               4%           6.4% to 9.6%
       Vehicles                                   5 to 10 years               4%          9.6% to 19.2%
       Moulds                                           5 years                -                    20%
       Electronic and other
         equipment                                  5 to 7 years              4%        13.7% to 19.2%

       The estimated useful life and the estimated net residual value of a fixed asset and the
       depreciation method applied to the asset are reviewed and adjusted as appropriate at
       each year-end.

(c)    The carrying amount of a fixed asset is reduced to the recoverable amount when the
       recoverable amount is below the carrying amount (Note 2(15)).

(d)    Disposal of fixed assets

       A fixed asset is derecognised on disposal or when no future economic benefits are
       expected from its use or disposal. The amount of proceeds from disposals on sale,
       transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes
       and expenses is recognised in profit or loss for the current period.




                                                                                                     100
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(12)   Construction in progress

       Construction in progress is measured at actual cost. Actual cost comprises construction
       costs, installation costs, borrowing costs that are eligible for capitalisation and other costs
       necessary to bring the construction in progress ready for their intended use. Construction
       in progress is transferred to fixed assets when the assets are ready for their intended use,
       and depreciation is charged starting from the following month. The carrying amount of
       construction in progress is reduced to the recoverable amount when the recoverable
       amount is below the carrying amount (Note 2(15)).

(13)   Borrowing costs

       The borrowing costs that are directly attributable to acquisition and construction of an
       asset that needs a substantially long period of time for its intended use commence to be
       capitalised and recorded as part of the cost of the asset when expenditures for the asset
       and borrowing costs have been incurred, and the activities relating to the acquisition and
       construction that are necessary to prepare the asset for its intended use have
       commenced. The capitalisation of borrowing costs ceases when the asset under
       acquisition or construction becomes ready for its intended use and the borrowing costs
       incurred thereafter are recognised in profit or loss for the current period. Capitalisation of
       borrowing costs is suspended during periods in which the acquisition or construction of an
       asset is interrupted abnormally and the interruption lasts for more than 3 months, until the
       acquisition or construction is resumed.

       The capitalised amount of specific borrowings intended to be used for the acquisition and
       construction of qualifying assets is determined by the interest expenses incurred in the
       current period less interest income of the unused borrowings deposited at banks or
       investment income from temporary investments.

       The capitalised amount of general borrowings intended to be used for the acquisition or
       construction of qualifying assets is determined by the weighted average of the excess of
       accumulated capital expenditure over capital expenditure of the special borrowings
       multiplied by the weighted average effective interest rate of the utilised general
       borrowings. The effective interest rate is the rate at which the future cash flows of the
       borrowings over the expected lifetime or a shorter applicable period are discounted into
       the initial recognised amount of the borrowings.

(14)   Intangible assets

       Intangible assets include land use rights, software use fees, non-patent technologies and
       after-sales service management mode, and are measured at cost.

(a)    Land use rights

       Land use rights are amortised on the straight-line basis over their approved use period of
       50 years. If the acquisition costs of the land use rights and the buildings located thereon
       cannot be reasonably allocated between the land use rights and the buildings, all of the
       acquisition costs are recognised as fixed assets.




                                                                                                   101
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(14)   Intangible assets (Cont’d)

(b)    Software use fees

       Software use fees are amortised on a straight-line basis over the estimated useful life of 5
       years.

(c)    Non-patent technologies

       Non-patent technologies are amortised on the straight-line basis over the estimated useful
       life of 5 years.

(d)    Periodical review of useful life and amortisation method

       For an intangible asset with a finite useful life, review of its useful life and amortisation
       method is performed at each year-end, with adjustment made appropriately.

(e)    Research and development

       The expenditure on an internal research and development project is classified into
       expenditure on the research phase and expenditure on the development phase based on
       its nature and whether there is material uncertainty that the research and development
       activities can form an intangible asset at the end of the project.

       Expenditure on the research phase related to planned survey, evaluation and selection for
       research on manufacturing technique of automobile products is recognised in profit or loss
       in the period in which it is incurred. Prior to mass production, expenditure on the
       development phase related to the design and testing phase in regard to the final
       application of manufacturing technique of automobile products is capitalised only if all of
       the following conditions are satisfied:

            the development of manufacturing technique of automobile products has been fully
            demonstrated by technical team;
            management intends to complete the development of manufacturing technique of
            automobile products, and use or sell it;
            the research and analysis of preliminary market survey indicate that products
            manufactured with manufacturing technique of automobile products are marketable;
            adequate technical and financial supports are available for development of
            manufacturing techniques of automobile products and subsequent mass production;
            and
            expenditure on development of manufacturing techniques of automobile products can
            be reliably collected.

       Other expenditures on the development phase that do not meet the conditions above are
       recognised in profit or loss in the period in which they are incurred. Development
       expenditures previously recognised as expenses are not recognised as an asset in a
       subsequent period. Capitalised expenditure on the development phase is presented as
       development expenditures in the balance sheet and transferred to intangible assets at the
       date that the asset is ready for its intended use.

(f)    Impairment of intangible assets

       The carrying amounts of intangible assets are reduced to the recoverable amounts when
       the recoverable amounts are below their carrying amounts (Note 2(15)).



                                                                                                 102
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(15)   Impairment of long-term assets

       Fixed assets, construction in progress, right-of-use assets, intangible assets with finite
       useful lives and long-term equity investments in subsidiaries and associates are tested for
       impairment if there is any indication that the assets may be impaired at the balance sheet
       date; intangible assets that are not yet available for their intended use are tested for
       impairment at least once a year, irrespective of whether there is any indication of
       impairment. If the result of the impairment test indicates that the recoverable amount of an
       asset is less than its carrying amount, a provision for impairment and an asset impairment
       loss are recognised for the amount by which the asset’s carrying amount exceeds its
       recoverable amount. The recoverable amount is the higher of an asset’s fair value less
       disposal costs and the present value of the future cash flows expected to be derived from
       the asset. Provision for asset impairment is determined and recognised on the individual
       asset basis. If it is not possible to estimate the recoverable amount of an individual asset,
       the recoverable amount of a group of assets to which the asset belongs is determined. A
       group of assets is the smallest group of assets that is able to generate independent cash
       inflows.

       Goodwill that is separately presented in the financial statements is tested at least once a
       year for impairment, irrespective of whether there is any indication that it may be impaired.
       In conducting the test, the carrying amount of goodwill is allocated to the related asset
       group or groups of asset groups which are expected to benefit from the synergies of the
       business combination. If the result of the test indicates that the recoverable amount of an
       asset group or a group of asset groups, including the allocated goodwill, is lower than its
       carrying amount, the corresponding impairment loss is recognised. The impairment loss is
       first deducted from the carrying amount of goodwill that is allocated to the asset group or
       group of asset groups, and then deducted from the carrying amounts of other assets
       within the asset group or group of asset groups in proportion to the carrying amounts of
       assets other than goodwill.

       Once the above asset impairment loss is recognised, it will not be reversed for the value
       recovered in the subsequent periods.

(16)   Employee benefits

       Employee benefits refer to all forms of consideration or compensation given by the Group
       in exchange for service rendered by employees or for termination of employment
       relationship, which include short-term employee benefits, post-employment benefits,
       termination benefits, etc.

(a)    Short-term employee benefits

       Short-term employee benefits include wages or salaries, bonus, allowances and
       subsidies, staff welfare, premiums or contributions on medical insurance, work injury
       insurance and maternity insurance, housing funds, union running costs and employee
       education costs, short-term paid absences, etc. The short-term employee benefits actually
       occurred are recognised as a liability in the accounting period in which the service is
       rendered by the employees, with a corresponding charge to the profit or loss for the
       current period or the cost of relevant assets. Non-monetary benefits are measured at fair
       value.




                                                                                                 103
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(16)   Employee benefits (Cont'd)

(b)    Post-employment benefits

       The Group classifies post-employment benefit plans as either defined contribution plans or
       defined benefit plans. Defined contribution plans are post-employment benefit plans under
       which the Group pays fixed contributions into a separate fund and will have no obligation
       to pay further contributions; and defined benefit plans are post-employment benefit plans
       other than defined contribution plans. During the reporting period, premiums or
       contributions on basic pensions and unemployment insurance paid for employees belong
       to defined contribution plans; supplementary retirement benefits for employees are defined
       benefit plans.

(i)    Defined contribution plans

       Basic pensions

       The Group’s employees participate in the basic pension plan set up and administered by
       local authorities of Ministry of Human Resources and Social Security. Monthly payments of
       premiums on the basic pensions are calculated according to the bases and percentage
       prescribed by the relevant local authorities. When employees retire, the relevant local
       authorities are obliged to pay the basic pensions to them. The amounts based on the
       above calculations are recognised as liabilities in the accounting period in which the
       service has been rendered by the employees, with a corresponding charge to the profit or
       loss for the current period or the cost of relevant assets.

(ii)   Defined benefit plans

       The Group also provides employees with supplementary retirement benefits in addition to
       the insurance system prescribed by the State. Such supplementary retirement benefits
       belong to defined benefit plans. The defined benefit liabilities recognised on the balance
       sheet represent the present value of defined benefit obligations less the fair value of the
       plan assets. The defined benefit obligations are calculated annually by an independent
       actuary using projected unit credit method at the interest rate of treasury bonds with similar
       obligation term and currency. Service costs related to supplementary retirement benefits
       (including current service costs, historical service costs and settled gains or losses) and
       net interest are recognised in profit or loss for the current period or the cost of related
       assets, and changes arising from remeasurement of net liabilities or net assets of defined
       benefit plans are recognised in other comprehensive income.

(c)    Termination benefits

       The Group provides compensation for terminating the employment relationship with
       employees before the end of the employment contracts or as an offer to encourage
       employees to accept voluntary redundancy before the end of the employment contracts.
       The Group recognises a liability arising from compensation for termination of the
       employment relationship with employees, with a corresponding charge to profit or loss for
       the current period at the earlier of the following dates: 1) when the Group cannot
       unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when
       the Group recognises costs or expenses for a restructuring that involves the payment of
       termination benefits.




                                                                                                 104
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(16)   Employee benefits (Cont'd)

(c)    Termination benefits (Cont’d)

       Early retirement benefits

       The Group offers early retirement benefits to those employees who accept early
       retirement arrangements. The early retirement benefits refer to the salaries and social
       security contributions to be paid to and for the employees who accept voluntary retirement
       before the normal retirement date prescribed by the State, as approved by the
       management. The Group pays early retirement benefits to those early retired employees
       from the early retirement date until the normal retirement date. The Group accounts for the
       early retirement benefits in accordance with the treatment for termination benefits, in
       which the salaries and social security contributions to be paid to and for the early retired
       employees from the off-duty date to the normal retirement date are recognised as
       liabilities with a corresponding charge to the profit or loss for the current period. The
       differences arising from the changes in the respective actuarial assumptions of the early
       retirement benefits and the adjustments of benefit standards are recognised in profit or
       loss in the period in which they occur.

       The termination benefits expected to be settled within one year since the balance sheet
       date are classified as employee benefits payable.

(17)   Dividend distribution

       Cash dividends are recognised as liabilities in the period in which the dividends are
       approved at the shareholders’ meeting.

(18)   Provisions

       Provisions for product warranties, compensation to suppliers, etc. are recognised when
       the Group has a present obligation, it is probable that an outflow of economic benefits will
       be required to settle the obligation, and the amount of the obligation can be measured
       reliably.

       A provision is initially measured at the best estimate of the expenditure required to settle
       the related present obligation. Factors on a contingency, such as the risks, uncertainties
       and the time value of money, are taken into account as a whole in reaching the best
       estimate of a provision. Where the effect of the time value of money is material, the best
       estimate is determined by discounting the related future cash outflows. The increase in the
       discounted amount of the provision arising from passage of time is recognised as interest
       expense.

       The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
       reflect the current best estimate.

       The provisions expected to be settled within one year since the balance sheet date are
       classified as current liabilities.




                                                                                                105
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(19)   Revenue

       The Group manufactures automobiles and automobile parts and sells them to distributors
       and end customers. In addition, the Group also provides customers with auto maintenance
       and additional quality warranty services. The Group recognises revenue at the amount of
       the consideration that is entitled to be charged by the Group as expected when the
       customer obtains control over relevant goods or services.

(a)    Selling automobiles and automobile parts to distributors and end customers

       The Group manufactures automobiles and automobile parts and sells such products to
       distributors and end customers. The Group recognises revenue from sales of automobiles
       after they are delivered as prescribed in the contract, customers have accepted the
       products and the delivery documents have been signed by both parties. The Group
       recognises revenue from sales of parts after they are delivered to the designated location
       as prescribed in the contract, customers have accepted the products and the delivery
       documents have been signed by both parties.

       Where two or more obligations are included in a contract between the Group and the
       customers, at the beginning date of the contract, the Group allocates the transaction price
       to individual obligation in the relative proportion to the individual selling prices of products
       or services committed in each individual obligation. When the individual selling price is
       unobservable, the Group makes reasonable estimates on the individual selling price with
       comprehensive consideration to all available information, and by using market adjustment
       method, cost plus method, etc.

       The credit periods granted by the Group to distributors and end customers are generally
       within one year, which is consistent with the industry practice, and there is no significant
       financing component. The Group provides product warranties for automobiles and
       automobile parts as required by laws and regulations, and recognises the corresponding
       provisions (Note 2(18)).

       The Group provides distributors and end customers with sales discounts based on sales
       volume, and related revenue is recognised at contract consideration net of the discount
       amount estimated based on historical experience and using the expected value method.

(b)    Rendering of services

       The Group provides customers with car maintenance and additional quality warranty
       services, and the revenue is recognised based on the progress of service provision within
       a certain period. According to the nature of the service provided, the performance
       progress is determined in accordance with the value of the labour provided to the
       customer.

       When the Group recognises revenue based on the stage of completion, the amount with
       unconditional collection right obtained by the Group is recognised as accounts receivable,
       and the rest is recognised as contract assets. Meanwhile, loss provision for accounts
       receivable and contract assets are recognised on the basis of ECL (Note 2(8)). If the
       contract price received or receivable exceeds the amount for the completed service, the
       excess portion will be recognised as contract liabilities. Contract assets and contract
       liabilities under the same contract are presented on a net basis.




                                                                                                    106
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(20)   Government grants

       Government grants refer to the monetary or non-monetary assets obtained by the Group
       from the government, including support funds for enterprise development, financial
       subsidies, etc.

       Government grants are recognised when the grants can be received and the Group can
       comply with all attached conditions. If a government grant is a monetary asset, it will be
       measured at the amount received or receivable. If a government grant is a non-monetary
       asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will
       be measured at its nominal amount.

       Government grants related to assets refer to government grants which are obtained by the
       Group for the purposes of purchase, construction or acquisition of the long-term assets.
       Government grants related to income refer to the government grants other than those
       related to assets.

       Government grants related to assets are recorded as deferred income and recognised in
       profit or loss on a reasonable and systemic basis over the useful lives of the assets.
       Government grants related to income that compensate future costs, expenses or losses
       are recorded as deferred income and recognised in profit or loss in reporting the related
       expenses; government grants related to income that compensate incurred costs, expenses
       or losses are recognised in profit or loss directly in the current period.

       The Group applies the presentation method consistently to the similar government grants
       in the financial statements.

       Government grants that are related to ordinary activities are included in operating profit,
       otherwise, they are recorded in non-operating income.

       The interest subsidies directly received from government are recorded as a reduction of
       interest expenses.




                                                                                                           107
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(21)   Deferred tax assets and deferred tax liabilities

       Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
       differences arising between the tax bases of assets and liabilities and their carrying
       amounts (temporary differences). Deferred tax asset is recognised for the deductible
       losses that can be carried forward to subsequent years for deduction of the taxable profit
       in accordance with the tax laws. No deferred tax liability is recognised for a temporary
       difference arising from the initial recognition of goodwill. No deferred tax asset or deferred
       tax liability is recognised for the temporary differences resulting from the initial recognition
       of assets or liabilities due to a transaction other than a business combination, which
       affects neither accounting profit nor taxable profit (or deductible loss). At the balance
       sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates
       that are expected to apply to the period when the asset is realised or the liability is settled.

       Deferred tax assets are only recognised for deductible temporary differences, deductible
       losses and tax credits to the extent that it is probable that taxable profit will be available in
       the future against which the deductible temporary differences, deductible losses and tax
       credits can be utilised.

       Deferred tax liabilities are recognised for taxable temporary differences arising from
       investments in subsidiaries and associates, except where the Group is able to control the
       timing of reversal of such temporary differences, and it is probable that the temporary
       differences will not reverse in the foreseeable future. When it is probable that the
       deductible temporary differences arising from investments in subsidiaries and associates
       will be reversed in the foreseeable future and that the taxable profit will be available in the
       future against which the deductible temporary differences can be utilised, the
       corresponding deferred tax assets are recognised.

       Deferred tax assets and deferred tax liabilities are offset when:

        the deferred tax assets and deferred tax liabilities are related to the same taxpayer
        within the Group and the same taxation authority; and
        that taxpayer within the Group has a legally enforceable right to offset current tax
        assets against current tax liabilities.




                                                                                                       108
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(22)   Leases

       A contract is, or contains, a lease if the contract conveys the right to control the use of an
       identified asset for a period of time in exchange for consideration.

       The Group as the lessee:

       At the commencement date, the Group shall recognise the right-of-use asset and measure
       the lease liabilities at the present value of the lease payments that are not paid at that
       date. Lease payments include fixed payments, the exercise price of a purchase option if
       the lessee is reasonably certain to exercise that option, and payments of penalties for
       terminating the lease if the lessee exercises an option to terminate the lease. Variable
       lease payments in proportion to sales are excluded from lease payments and recognised
       in profit or loss as incurred. Lease liabilities that are due within one year (inclusive) as
       from the balance sheet date are included in the current portion of non-current liabilities.

       The Group's right-of-use assets represent leased buildings. Right-of-use assets are
       measured initially at cost which comprises the amount of the initial measurement of lease
       liabilities, any lease payments made at or before the commencement date and any initially
       direct costs, less any lease incentives received. If it is reasonably probable that the Group
       will obtain ownership of the underlying asset by the end of the lease term, the asset is
       depreciated over its remaining useful life; otherwise the asset is depreciated over the
       shorter of the lease term and its remaining useful life. The carrying amounts of the right-of-
       use assets are reduced to the recoverable amounts when the recoverable amounts are
       below their carrying amounts (Note 2(15)).

       For short-term leases with a term of 12 months or less and leases of an individual asset
       (when new) of low value, the Group may, instead of recognising right-of-use assets and
       lease liabilities, recognise the lease payments in the cost of the underlying assets or in
       profit or loss for the current period on a straight-line basis over the lease term.

       The Group shall account for a lease modification as a separate lease if both: (1) the
       modification extends the scope of the lease by adding the right to use one or more
       underlying assets; (2) the increased consideration is equivalent to the amount of the
       individual price of the expanded part of the lease scope adjusted according to the contract
       conditions.

       For a lease modification that is not accounted for as a separate lease, the Group shall
       redetermine the lease term at the effective date of the lease modification, and remeasure
       the lease liability by discounting the revised lease payments using a revised discount rate,
       except for the simplified method for contract changes directly caused by COVID-19. For a
       lease modification which narrows the scope of the lease or shortens the lease term, the
       Group decreases the carrying amount of the right-of-use asset, and recognises in profit or
       loss any gain or loss relating to the partial or full termination of the lease. For other
       changes which lead to the remeasurement of lease liabilities, the Group correspondingly
       adjusts the carrying amount of the right-of-use asset.

       For the rental waivers due to COVID-19 and for the period ended before 30 June 2022
       only, the Group applies the simplified method, records the undiscounted waivers in profit
       or loss and adjusts lease liability when the agreement is reached to dismiss the original
       payment obligation.




                                                                                                    109
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(22)   Leases (Cont'd)

       The Group as the lessor

       A lease is classified as a finance lease if it transfers substantially all the risks and rewards
       incidental to ownership of an underlying asset. An operating lease is a lease other than a
       finance lease.

       As the lessor, the Group does not hold any finance lease. Where the Group leases out
       self-owned buildings under operating leases, rental income the refrom is recognised on a
       straight-line basis over the lease term.

(23)   Segment information

       The Group identifies operating segments based on the internal organisation structure,
       management requirements and internal reporting system, and discloses segment
       information of reportable segments which is determined on the basis of operating
       segments.

       An operating segment is a component of the Group that satisfies all of the following
       conditions: (1) the component is able to earn revenues and incur expenses from its
       ordinary activities; (2) whose operating results are regularly reviewed by the Group’s
       management to make decisions about resources to be allocated to the segment and to
       assess its performance, and (3) for which the information on financial position, operating
       results and cash flows is available to the Group. Two or more operating segments that
       have similar economic characteristics and satisfy certain conditions can be aggregated
       into one single operating segment.




                                                                                                      110
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(24)   Critical accounting estimates and judgements

       The Group continually evaluates the critical accounting estimates and key judgements
       applied based on historical experience and other factors, including expectations of future
       events that are believed to be reasonable under the circumstances.

(a)    Critical judgements in applying the accounting policies

(i)    Classification of financial assets

       Significant judgements made by the Group in the classification of financial assets include
       business models and analysis on contractual cash flow characteristics.

       The Group determines the business model for financial assets management on the group
       basis, and factors to be considered include the methods for evaluating the financial assets
       performance and reporting such performance to key management personnel, the risks
       relating to the financial assets performance and corresponding management methods, the
       ways in which related business management personnel are remunerated, etc.

       When assessing whether contractual cash flow characteristics of financial assets are
       consistent with basic lending arrangement, key judgements made by the Group include:
       the possibility of changes in time schedule or amount of the principal during the lifetime
       due to reasons such as repayment in advance; whether interest only includes time value
       of money, credit risks, other basic lending risks and considerations for costs and profits.
       For example, whether the repayment in advance only reflects the principal outstanding
       and corresponding interest and reasonable compensation paid for early termination of the
       contract.

(ii)   Judgement on significant increase in credit risk and occurrence of credit impairment

       Judgement made by the Group for significant increase in credit risk is mainly based on
       whether the overdue days exceed 30 days, or whether one or more of the following
       indicators change significantly: business environment of the debtor, internal and external
       credit rating, significant changes in actual or expected operating results, significant
       decrease in value of collateral or credit rate of guarantor, etc.

       Judgement made by the Group for the occurrence of credit impairment is mainly based on
       whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or
       more of the following conditions is/are satisfied: the debtor is suffering significant financial
       difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes
       bankrupt, etc.




                                                                                                      111
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(24)    Critical accounting estimates and judgements (Cont’d)

(a)     Critical judgements in applying the accounting policies (Cont’d)

(iii)   Judgement on capitalisation of development expenditures

        Development expenditures are capitalised when the criteria in Note 2(14)(e) are fulfilled.
        The assessments on whether the criteria for capitalisation of development expenditures
        have been met involve judgements of the Group, including the technical feasibility of the
        project, the likelihood of the project generating sufficient future economic benefits and the
        timing to start capitalisation particularly. The Group makes the judgements on the
        capitalisation of development expenditures and records the process in meeting minutes
        based on feasibility analysis, regular review on the development project phase, etc.

(iv)    Timing of revenue recognition

        The Group sells automobiles and automobile parts to distributors or end customers. The
        Group recognises revenue from sales of automobiles after they are delivered as prescribed
        in the contract, distributors or end customers have accepted the products and the delivery
        documents have been signed by both parties. The Group recognises revenue from sales of
        parts after they are delivered to the designated location as prescribed in the contract,
        distributors or end customers have accepted the products and the delivery documents are
        signed by both parties. Thereafter, the distributors or end customers own the products, have
        the right to set prices independently, and bear the risks from price fluctuation or damage of
        the products. The distributors or end customers have obtained the control of the products
        after accepting the products. Therefore, the Group recognises the sales revenue of the
        products at the time when the delivery documents have been signed.

(v)     Sales with product warranties

        The Group provides statutory warranty for automobiles and automobile parts, and the
        periods and terms of such warranty comply with the requirements of laws and regulations
        related to the products. The Group does not provide any significant additional service or
        additional warranty for this purpose, thus this kind of warranty cannot be identified as a
        separate performance obligation. In addition, the Group also offers additional warranty other
        than the requirements of laws and regulations, which is identified as a separate
        performance obligation. The Group recognises the revenue of the additional warranty over
        time during the period when services are rendered.




                                                                                                  112
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(24)   Critical accounting estimates and judgements (Cont’d)

(b)    Critical accounting estimates and key assumptions

       The critical accounting estimates and key assumptions that have a significant risk of causing
       a material adjustment to the carrying amounts of assets and liabilities within the next fiscal
       year are outlined below:

(i)    Measurement of ECL

       The Group calculates ECL through default risk exposure and ECL rate and determines the
       ECL rate based on default probability and default loss rate. In determining the ECL rate, the
       Group uses data such as internal historical credit loss experience, etc., and adjusts historical
       data based on current conditions and forward-looking information.

       When considering forward-looking information, the Group takes different macroeconomic
       scenarios into consideration. In 2021, the weights of “base”, “bad” and “good” are 68%, 16%
       and 16% (2020: 68%, 16% and 16%) under three economic scenarios respectively for the
       consideration of forward-looking information. The Group regularly monitors, and reviews
       important macroeconomic assumptions and parameters related to the calculation of ECL
       rate, including the risks of economic downturn, external market environment, changes of
       technological environment and customer, gross domestic product, consumer price index and
       broad money supply. In 2021, the Group has considered the uncertainty caused by COVID-
       19 and updated relevant assumptions and parameters accordingly. The key macroeconomic
       parameters used in each scenario are listed as follows:

                                                                Scenarios
                                                      Base              Bad                       Good

       Gross domestic product                        7.81%             4.74%                   10.89%
       Consumer price index                          1.82%            -1.38%                    5.02%

       In 2020, the key macroeconomic parameters used in each scenario are listed below:

                                                                Scenarios
                                                      Base              Bad                       Good

       Gross domestic product                      14.25%             14.15%                   14.34%
       Money supply                                 9.20%              7.72%                   10.68%




                                                                                                     113
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(24)    Critical accounting estimates and judgements (Cont’d)

(b)     Critical accounting estimates and key assumptions (Cont’d)

(ii)    Impairment of long-term asset

        The Group assesses whether there is any indication that non-current assets other than
        financial assets may be impaired at the balance sheet date. When there are indications
        showing the carrying amounts of such assets cannot be recovered, an impairment test will
        be performed.

        When the carrying amount of non-current assets or asset groups other than financial assets
        is higher than the recoverable amount, which is the higher of an asset’s fair value less
        disposal costs and the present value of the future cash flows expected to be derived from
        the asset, it shows non-current assets or asset groups are impaired.

        The amount of an asset’s fair value less disposal costs was determined by the price of a
        sale agreement in affair rade, less the costs that are directly attributable to the disposal of
        the asset. Where there is no sales agreement but there is an active market of assets, the
        amount is determined by the market price less the costs that are directly attributable to the
        disposal of the asset. The market price of assets is determined by the considerations
        provided by the buyer. Where there is no sales agreement or active market of assets, the
        amount of an asset’s fair value less disposal costs was determined based on the best
        information available, with reference to the latest transaction price or results of similar assets
        of the same industry.

        Disposal costs include legal cost, taxes and handling fee related to asset disposal, and
        direct costs incurred to bring the assets to a saleable state.

(iii)   Income tax and deferred income tax

        The Group is subject to enterprise income tax in multiple regions. There are some
        transactions and events for which the ultimate tax treatment is uncertain during the ordinary
        course of business. Significant judgement is required from the Group in determining the
        provision for income taxes in each of these regions. Where the final tax outcome of these
        matters is different from the amounts that were initially recorded, such differences will impact
        the income tax and deferred tax provisions in the period in which such determination is
        made.




                                                                                                       114
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(24)    Critical accounting estimates and judgements (Cont’d)

(b)     Critical accounting estimates and key assumptions (Cont’d)

(iii)   Income tax and deferred income tax (Cont’d)

        As stated in Note 3(2), the Company is a high-tech enterprise. The “High-Tech Enterprise
        Certificate” is effective for three years. Upon expiration, application for high-tech enterprise
        assessment should be submitted again to the relevant government authorities. Based on
        the past experience of reassessment for high-tech enterprise upon expiration and its
        actual conditions, the Company considers that it is able to obtain the qualification for high-
        tech enterprises in the next 3 years, and therefore a preferential tax rate of 15% is used to
        calculate the corresponding deferred income tax. If the Company cannot obtain the
        qualification for high-tech enterprise upon expiration, then the Company is subject to a
        statutory tax rate of 25% for the calculation of income tax, which further influences the
        recognised deferred tax assets, deferred tax liabilities and income tax expenses.

        Deferred tax assets are recognised for the deductible tax losses that can be carried
        forward to subsequent years to the extent that it is probable that taxable profit will be
        available in the future against which the deductible tax losses can be utilised. Taxable
        profit that will be available in the future includes the taxable profit that will be realised
        through ordinary course of business and the taxable profit that will be increased upon the
        future reversal of taxable temporary differences incurred in prior periods. Judgements and
        estimates are required to determine the time and amounts of taxable profit in the future.
        Any difference between the reality and the estimate may result in adjustment to the
        carrying amount of deferred tax assets.

(iv)    Provisions

        The Group undertakes after-sales repair or replacement obligations for automobiles sold
        based on the after-sales service agreement. Management estimates related provisions
        based on historical after-sales service data, including the repair and replacement provided
        as well as current trends.

        Factors that may impact the estimation of warranty costs include improvement of the
        Group’s productivity and production quality, as well as changes in related parts and labour
        costs. Any increase or decrease in provisions will have impact on profit or loss of the
        Group in the future.




                                                                                                        115
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(24)   Critical accounting estimates and judgements (Cont’d)

(b)    Critical accounting estimates and key assumptions (Cont’d)

(v)    Provision for decline in the value of inventories

       The Group's inventories are stated at the lower of cost and net realisable value. Net
       realisable value of inventories is the amount of the estimated selling price in the ordinary
       course of business, less the estimated costs to completion and estimated costs necessary
       to make the sales and related taxes.

       If the management revises the estimated selling price of the inventory, the estimated costs
       to be incurred by the time of completion, and the estimated selling expenses and related
       taxes, the revised estimated selling price is lower than the currently adopted estimated
       selling price, or the revised until The estimated costs, estimated sales expenses, and
       related taxes and fees at the completion of the project are higher than the currently
       adopted estimates, the Group needs to make provision for inventory.

       If the actual selling prices, costs to completion, selling and distribution expenses and
       related taxes are higher or lower than management’s estimates, the Group shall recognise
       the relevant differences in the consolidated income statement during the corresponding
       accounting period.

(25)   Significant changes in accounting policies

       The Ministry of Finance released the Notice on Adjusting the Application Scope of the
       Provisions on the Accounting Treatment Regarding COVID-19-Related Rent Concessions
       (Cai Kuai [2021] No. 9), the Circular on Issuing Interpretation No. 14 of Accounting
       Standards for Business Enterprises (Cai Kuai [2021] No. 1) and Q&A on Implementation
       of Accounting Standards for Business Enterprises in 2021. The financial statements for
       the year ended 31 December 2021 have been prepared in accordance with the above
       standard, circular and Q&A, and the impacts on the financial statements of the Group
       andthe Company are as follows:

(a)    Accounting treatment regards COVID-19-related rent concession

       For the part of the rent concession that is caused directly by COVID-19, which is
       respectively made with the lessee and the lessor and happened before 30 June 2022, the
       Group and the Company has taken simplified methods in the above Notice (note 4(45))
       when preparing the financial statement for the year ended 31 December 2021. The notice
       listed above has no impact on the accounting treatment of the Group and the Company as
       the lessor.




                                                                                                  116
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(25)   Significant changes in accounting policies (Cont’d)


(b)    Accounting treatment for changes on the basis of determining the contractual cash flows of
       financial assets or financial liabilities due to the reform in the benchmark interest rate

       Reform towards benchmark interest rate, specified in Interpretation No.14 of Accounting
       Standards for Business Enterprises, has no significant influence towards the basis of
       determining the contractual cash flows of financial assets and financial liabilities when
       preparing the Group and Company’s financial statements for 2021.

3      Taxation

(1)    The main categories and rates of taxes applicable to the Group are set out below:

       Category                         Taxation basis                              Tax rate

       Enterprise income tax (a)        Taxable income                              15% and 25%
       Value-added tax                  Taxable value-added amount (Tax payable     13%, 9% and 6%
        (“VAT”)(b)                      is calculated using the taxable sales
                                          amount multiplied by the applicable tax
                                          rate less deductible input VAT of the
                                          current period)
       Consumption tax (c)              Taxable sales amount                        3%, 5% and 9%
       City maintenance and             The payment amount of VAT and               5% and 7%
         construction tax (d)             consumption tax

(a)    Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for
       Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the
       Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by
       the State Taxation Administration and relevant regulations, during the period from 1 January
       2018 to 31 December 2023, the cost of newly purchased equipment with the original cost less
       than RMB5 million can be fully deducted against taxable profit in the next month after the
       asset is put into use, instead of being depreciated annually for tax filing.

       Pursuant to the Circular on Further Improving Pre-tax additional deduction for Research and
       Development Expenses (Cai Shui [2021] No. 13) issued by the Ministry of Finance and the
       State Taxation Administration, from 1 January 2021, the Group’s actual research and
       development expenses that are not recognised as intangible assets but included in profit or
       loss, are allowed to 100% pre-tax additional deduction (during the period of 1 January 2018 to
       31 December 2020:75%); those expenses recognised as intangible assets can be amortised
       before tax at 200% of the costs of intangible assets (during the period of 1 January 2018 to 31
       December 2020:175%).

(b)    Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform
       (Announcement [2019] No. 39) and relevant regulations jointly issued by the Ministry of
       Finance, the State Taxation Administration and the General Administration of Customs, the
       Group’s taxable products sales revenue is subject to the VAT at the rate of 13%. The Group's
       real estate leasing business is subject to the VAT at the rate of 9%. Revenue from provision of
       technical service to external parties is subject to VAT at the rate of 6%.




                                                                                                 117
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

3     Taxation (Cont’d)

(1)   The main categories and rates of taxes applicable to the Group are set out below (Cont’d):

(c)   Pursuant to the Interim Regulations of the People's Republic of China on Consumption Tax
      promulgated by the State Council (Order No. 539 of the State Council of the People's
      Republic of China) and the Notice of Ministry of Finance and State Taxation Administration on
      Adjusting Consumption Tax Policies for Passenger Cars (Cai Shui [2008] No. 105), the
      consumption tax rates of the Group's taxable products are 3%, 5% and 9%.

(d)   Pursuant to the Circular of the State Council on Unifying the Collection of City Construction
      and Maintenance Tax and Educational Surcharge on Domestic and Foreign-Owned
      Enterprises and Individuals (Guo Fa [2010] No. 35) issued by the State Council, the Group is
      subject to city construction and maintenance tax at the rates of 5% and 7%.

(2)   Tax preference

      Pursuant to the Circular on the Announcement of the First Batch of High-Tech Enterprises of
      Jiangxi Province for the year 2021 (Gan Gao Qi Ren Ban [2021] No. 8), the Company is
      certified as a high-tech enterprise, and the valid term is three years. During the period from 1
      January 2021 to 31 December 2023, the Company is subject to enterprise income tax at the
      rate of 15%(2020:15%).

      In 2021, except for the Company, the Company’s wholly-owned companies, including JMC
      Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen
      Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), and Guangzhou Fujiang New
      Energy Automobile Sales Co., Ltd. (“GZFJ”), were subject to the enterprise income tax at the
      rate of 25% (2020: 25%).




                                                                                                    118
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements

(1)   Cash at bank and on hand

                                                            31 December 2021    31 December 2020

      Cash at bank (a)                                         9,569,051,314       11,121,955,129

(a)    As at 31 December 2021, cash at bank of the Group deposited with Jiangling Motor Group
       Finance Company (“JMCF”) was RMB1,059,580,980 (31 December 2020:
       RMB1,231,825,734) (Note 8(6)), and interest was calculated at the bank annual interest
       rate for RMB deposit of 1.725% to 2.25% over the same period (2020: 0.455% to
       3.30%)(Note 8(5)).

       JMCF, a holding subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking
       financial institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment
       Co., Ltd. (“JIC”), a main shareholder of the Company.

(2)   Financial assets held for trading

                                                           31 December 2021     31 December 2020

      Structural deposits                                       100,242,329          803,892,985

(3)   Notes receivable

                                                            31 December 2021    31 December 2020

      Trade acceptance notes                                      119,783,900                       -
      Less: Provision for bad debts                                         -                       -
                                                                  119,783,900                       -

(a)    As at 31 December 2021, there were no notes receivable pledged.

(b)   As at 31 December 2021, there was no notes receivable that have been endorsed or
      discounted but not yet matured.

(c)   Provision for bad debts

      For notes receivable arising from sales of goods and rendering of services in the ordinary
      course of operating activities, the Group measures the loss provision based on the lifetime
      ECL regardless of whether there is a significant financing component. As at 31 December
      2021, the acceptors of the notes receivable held by the Group were dealers with good credit
      and the Group therefore believed that the relevant notes receivable would not result in
      material losses due to their defaults.




                                                                                                119
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4     Notes to the consolidated financial statements (Cont’d)

(4)   Accounts receivable

                                                           31 December 2021           31 December 2020

      Accounts receivable                                      3,213,330,895              3,233,785,212
      Less: Provision for bad debts                            (218,532,668)               (233,902,000)
                                                               2,994,798,227              2,999,883,212

(a)   The ageing of accounts receivable is analysed as follows:

                                                           31 December 2021           31 December 2020

      Within 1 year                                           2,713,109,300              2,729,338,870
      1 to 2 years                                              128,900,600                 18,746,837
      Over 2 years                                              371,320,995                485,699,505
                                                              3,213,330,895              3,233,785,212

(b)   As at 31 December 2021, the top five accounts receivable ranked by remaining balances
      are analysed as follows:

                                                                Amount of provision           % of total
                                                 Balance             for bad debts             balance

      Company 1                          1,055,206,739                 (2,469,956)              32.84%
      Company 2                            124,233,514                   (247,448)               3.87%
      Company 3                            118,452,703                    (96,776)               3.69%
      Company 4                            100,295,872                    (80,107)               3.12%
      Company 5                             72,230,000                (72,230,000)               2.25%
                                         1,470,418,828                (75,124,287)              45.77%

(c)   Provision for bad debts

      For accounts receivable, the Group measures the loss provision based on the lifetime ECL
      regardless of whether there is a significant financing component.

(i)   Accounts receivable for which provision for bad debts is made on the individual basis are
      analysed as follows:

                                                                31 December 2021
                                           Book balance                  Provision for bad debts
                                                Amount          Lifetime ECL (%)                 Amount

      New energy subsidies
        receivable i)                       103,180,418                    100%           (103,180,418)
      Receivables for
        automobiles ii)                      80,862,880                    100%            (80,862,880)
                                            184,043,298                                   (184,043,298)




                                                                                                      120
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(4)    Accounts receivable (Cont’d)

(c)    Provision for bad debts (Cont’d)

(i)    Accounts receivable for which provision for bad debts is made on the individual basis are
       analysed as follows (Cont’d):

                                                             31 December 2020
                                            Book balance              Provision for bad debts
                                                Amount       Lifetime ECL (%)                 Amount

       New energy subsidies
         receivable i)                      103,180,418                100%            (103,180,418)
       Receivables for
         automobiles ii)                     83,112,880                100%             (83,112,880)
                                            186,293,298                                (186,293,298)

       i) As at 31 December 2021 and 31 December 2020, government subsidies receivable for
       new energy automobiles amounted to RMB103,180,418. As the corresponding new energy
       vehicles may not meet the corresponding subsidy policy standards, the Group considered
       the receivables cannot be collected, therefore, full provision was made for those
       receivables.

       ii) As at 31 December 2021, since aforesaid companies in debts had difficulties in operation
       and were involved in several legal proceedings, the Group considered that it was difficult to
       recover such receivables, so related provision for bad debts was made in full amount
       RMB80,862,880(31 December 2020: RMB83,112,880).

(ii)   Accounts receivable for which provision for bad debts is made on the grouping basis are
       analysed as follows:

       Grouping - Sales of general automobiles:

                                                             31 December 2021
                                              Book balance           Provision for bad debts
                                                   Amount     Lifetime ECL (%)               Amount

       Not overdue                           2,279,044,623             0.08%             (1,829,856)
       Overdue for 1 to 30 days                182,608,365             0.08%               (146,245)
       Overdue for 31 to 60 days                48,703,203             2.44%             (1,186,068)
       Overdue for 61 to 90 days                25,563,462             4.15%             (1,061,263)
       Overdue over 90 days                     37,478,374             5.01%             (1,876,531)
                                             2,573,398,027                               (6,099,963)




                                                                                                      121
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(4)    Accounts receivable (Cont’d)

(c)    Provision for bad debts (Cont’d)

(ii)   Accounts receivable for which provision for bad debts is made on the grouping basis are
       analysed as follows (Cont’d):

       Grouping - Sales of general automobiles(Cont’d):

                                                               31 December 2020
                                               Book balance             Provision for bad debts
                                                    Amount      Life timeECL(%)                 Amount

        Not overdue                           2,092,329,084              0.21%             (4,395,983)
        Overdue for 1 to 30 days                262,730,035              0.21%               (551,996)
        Overdue for 31 to 60 days                   345,798              6.35%                (21,961)
        Overdue for 61 to 90days                  1,936,800             10.74%               (208,085)
        Overdue over 90 days                     17,757,747             17.59%             (3,123,783)
                                              2,375,099,464                                (8,301,808)

       Grouping - Sales of new energy automobiles:

                                                               31 December 2021
                                                Book balance            Provision for bad debts
                                                     Amount      Lifetime ECL(%)                Amount

       Overdue over 90 days                      187,009,300            14.67%           (27,438,915)

                                                               31 December 2020
                                               Book balance            Provision for bad debts
                                                    Amount      Lifetime ECL(%)                Amount

       Not overdue                              149,343,763              6.28%             (9,378,788)
       Overdue for 1 to 30 days                           -                  —                     -
       Overdue for 31 to 60 days                194,083,088             14.52%            (28,173,753)
       Overdue for 61 to 90 days                          -                  —                     -
       Overdue over 90 days                       3,993,700             16.25%               (649,037)
                                                347,420,551                               (38,201,578)




                                                                                                     122
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

4       Notes to the consolidated financial statements (Cont’d)

(4)     Accounts receivable (Cont’d)

(c)     Provision for bad debts (Cont’d)

(ii)    Accounts receivable for which provision for bad debts is made on the grouping basis are
        analysed as follows (Cont’d):

        Grouping –Automobile parts:

                                                                     31 December 2021
                                                 Book balance                 Provision for bad debts
                                                      Amount            Lifetime ECL(%)              Amount

        Not overdue                                236,210,964                         0.30%           (708,633)
        Overdue for 1 to 30 days                    10,782,728                         0.30%            (32,348)
        Overdue for 31 to 60 days                   14,692,940                         0.50%            (73,465)
        Overdue for 61 to 90 days                    3,469,461                         0.60%            (20,817)
        Overdue over 90 days                         3,724,177                         3.09%           (115,229)
                                                   268,880,270                                         (950,492)

                                                                    31 December 2020
                                                 Book balance                Provision for bad debts
                                                      Amount           Lifetime ECL(%)              Amount

        Not overdue                               288,024,625                      0.30%                (864,074)
        Overdue for 1 to 30 days                   21,425,030                      0.30%                 (64,275)
        Overdue for 31 to 60 days                  11,544,651                      0.50%                 (57,723)
        Overdue for 61 to 90 days                   1,809,917                      0.60%                 (10,860)
        Overdue over 90 days                        2,167,676                      5.00%                (108,384)
                                                  324,971,899                                         (1,105,316)

(iii)   The provision for bad debts in the current year amounted to RMB15,345,078 was
        reversed, because the accrued bad debts were received in 2021.Among them, RMB
        2,250,000 of accounts receivable for which provision for bad debts was made on the
        individual basis in the previous period were recovered in the current period, and the
        corresponding book balance was RMB 2,250,000.The significant amounts reversed or
        recovered were as follows:

                                                       Basis and justification for
                                 Reasons for        determining the provision for       Amount of Recovery
                            reversal/recovery                          bad debts reversal/recovery method

                                                     The aforesaid companies in
                                                           debts had difficulties in
                           The actual receipt      operation and were involved in
                                   of account      several legal proceedings, the
                         receivables relating               Group considered the
                          to the provision for   receivables cannot be collected,
        Accounts          bad debts made in          therefore, full provision was
        receivable 1         the prior period.       made for those receivables.               2,250,000 Received

(d)     As at 31 December 2021 and 31 December 2020, there were no accounts receivable
        pledged.




                                                                                                                123
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

4     Notes to the consolidated financial statements (Cont’d)

(5)   Financing receivables

                                                     31 December 2021            31 December 2020

      Bank acceptance notes                               201,511,670                      815,583,669

      The Group endorses the bank acceptance notes as required by daily fund management,
      which also met the criteria for dere cognition, and therefore classified those the bank
      acceptance notes as financial assets at fair value through other comprehensive income.

      The Group had no bank acceptance notes for which the provision for impairment was
      made on the individual basis. As at 31 December 2021, the Group measures the loss
      provision of financing receivables based on the lifetime ECL. As of 31 December, 2021,
      the acceptors of the Groups’ notes receivable were mainly major state-owned banks or
      large and medium-sized banks withgoodreputationandcreditranking. Therefore, the Group
      expected there was no significant loss on related bank acceptance notes arising from
      bank default.

      As at 31 December 2021, the Group had no pledged bank acceptance notes receivable
      presented in financing receivables.

      As at 31 December 2021, the Group's notes receivable had been endorsed or discounted
      but not yet matured were as follows:

                                                          Derecognised                Not derecognised

      Bank acceptance notes                               1,326,983,992                               -

(6)   Advances to suppliers

(a)   The ageing of advances to suppliers is analysed as below:

                                  31 December 2021                         31 December 2020
                                                  % of total                              % of total
                                   Amount          balance                 Amount           balance

      Within 1 year            497,302,198                100%          452,714,683                100%

(b)   As at 31 December 2021, the top five advances to suppliers ranked by remaining balances
      are analysed as follows:

                                                                 Amount               % of total balance

      Company 1                                              399,394,083                        80.31%
      Company 2                                               58,836,729                        11.83%
      Company 3                                               21,870,265                         4.40%
      Company 4                                                8,885,838                         1.79%
      Company 5                                                5,016,888                         1.01%
                                                             494,003,803                        99.34%




                                                                                                          124
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

4     Notes to the consolidated financial statements (Cont’d)

(7)   Other receivables

                                                          31 December 2021               31 December 2020

      Receivable for
        subsidiarydisposal(Note 5)                                252,000,000                             -
      Import working capital advances                              25,000,000                    35,000,000
      Disposal of assets                                           17,668,457                             -
      Advances for gas fee                                          7,409,989                     7,367,141
      Others                                                       98,941,850                    86,840,341
                                                                  401,020,296                   129,207,482

      Less: Provision for bad debts                                 (1,036,560)                    (217,909)
                                                                  399,983,736                   128,989,573

(a)   The ageing of other receivables is analysed as follows:

                                                   31 December 2021                      31 December 2020

      Within 1 year                                            398,699,129                      128,336,086
      Over 1 year                                                2,321,167                          871,396
                                                               401,020,296                      129,207,482

(b)   Provision for losses and changes in book balance statements:

                                                       Stage 1
                                                    12-month ECL
                                                      (grouping)                                 Total
                                             Book balance Provision for bad debts        Provision for bad debts

      31 December 2020                        129,207,482                    (217,909)                 (217,909)
        Netincreasein the current
          year                                271,812,814                          —                         —
        Bad debt provision
          reserved in the current
          year                                            —                 (823,789)                 (823,789)
        Bad debt provision written
          off in the current year                         —                  5,138                       5,138
      31 December 2021                       401,020,296                 (1,036,560)                 (1,036,560)


      As at 31 December 2021 and 31 December 2020, the Group had no other receivables at
      Stage 2 and Stage 3. The analysis of other receivables at Stage 1 is stated below:

(i)   As at 31 December 2021 and 31 December 2020, the Group had no other receivables
      with provision for bad debts on the individual basis.




                                                                                                               125
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(7)    Other receivables (Cont’d)

(b)    Provision for losses and changes in book balance statements (Cont’d):

(ii)   As at 31 December 2021 and 31 December 2020, the Group’s other receivables with
       provision for bad debts on the grouping basis were analysed below:

       Other receivables with provision on the grouping basis at Stage 1:

                                            31 December 2021                              31 December 2020
                                   Book balance       Provision for losses    Book balance        Provision for losses
                                                    Provision                                   Provision
                                         Amount          ratio       Amount           Amount         ratio       Amount

       Grouping of operating
          advances and
          guarantees:
          Within 1 year             343,446,354        0.30%    (1,029,601)        68,052,441       0.32%        (215,154)
          Over 1 year                 2,321,167        0.30%        (6,959)           871,396       0.32%          (2,755)
       Grouping of others i):
          Within 1 year              55,252,775             -            -      60,283,645              -               -
                                    401,020,296                 (1,036,560)    129,207,482                       (217,909)


       i) As at 31 December 2021 and 31 December 2020,the grouping of others are mainly
       interest receivables from the Group's bank deposits. the Group’s interest receivable from
       cash at bank mainly came from major state-owned banks or other large and medium sized
       banks with good reputation and credit ranking. Therefore, the Group expected that there
       was no material credit risk associated with related interest receivable and thus there was no
       significant losses on related interest receivable from bank default.

(c)    RMB823,789 of provision for bad debts was reversed in the current year.

(d)    As at 31 December 2021, the top five other receivables by the balance of the debtors are
       listed as follows:

                                                                                            % of
                                                                                            total           Provision for
                                Nature               Balance              Ageing         balance              bad debts

                        Receivable
                      for subsidiary
       Company 1            disposal          252,000,000          Within 1 year          62.84%               (756,000)
                          Advances
                       classified as
       Company 2          expenses                31,266,512       Within 1 year            7.80%               (93,800)
                          Advances
                       classified as
       Company 3          expenses                25,000,000       Within 1 year            6.23%               (75,000)
                        Disposal of
       Company 4              assets              17,668,457       Within 1 year            4.41%               (53,005)
                          Advances
                       classified as
       Company 5          expenses              7,397,042          Within 1 year           1.84%                (22,191)
                                              333,332,011                                 83.12%               (999,996)




                                                                                                                      126
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

4     Notes to the consolidated financial statements (Cont’d)

(8)   Inventories

(a)   Inventories are summarised by categories as follows:

                                      31 December 2021                                    31 December 2020
                                          Provision for           Carrying                    Provision for          Carrying
                         Book balance       inventories            amount    Book balance       inventories           amount

      Raw materials       875,837,414        (70,998,768)    804,838,646         816,201,410     (109,312,198)    706,889,212
      Finished goods      740,881,390                   -    740,881,390         815,055,053                 -    815,055,053
      Work in progress    205,597,637         (1,297,098)    204,300,539         268,716,191         (175,387)    268,540,804
      Materials in
         transit           94,075,651                   -     94,075,651          98,887,111                -      98,887,111
      Low-cost
         consumables       93,028,528         (4,443,955)     88,584,573         160,969,525      (32,479,143)    128,490,382
      Materials
         processed on
         commission         42,047,833                  -      42,047,833       68,743,130                   -    68,743,130
                         2,051,468,453       (76,739,821)   1,974,728,632    2,228,572,420       (141,966,728) 2,086,605,692


(b)   Provision for inventories is analysed as follows:

                                                Increase in the
                             31 December           current year       Decrease in the current year               31 December
                                    2020              Provision         Reversal             Write-off                  2021

      Raw materials          (109,312,198)         (40,609,433)         5,024,205              73,898,658         (70,998,768)
      Low-cost
       consumables            (32,479,143)          (4,223,181)         1,402,449              30,855,920          (4,443,955)

      Work in progress           (175,387)          (1,234,309)             5,218              107,380             (1,297,098)
                             (141,966,728)         (46,066,923)         6,431,872          104,861,958            (76,739,821)

(c)   Provision for decline in the value of inventories is as follows:

                                                                                        Reason for current year reversal or
                                          Specific basis for determining net             write-off of provision for decline in
                                                             realisable value                        the value of inventories

      Raw materials/Work in            Based on the estimated selling price,         Increase in the net realisable value of
        progress/Low value           less the estimated costs to completion,           the inventories of which a provision
        consumables                         estimated selling and distribution            for decline in the value had been
                                                 expenses and related taxes                    made in prior years or sales
                                                                                                                    realised




                                                                                                                    127
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(9)    Other current assets

                                                            31 December 2021    31 December 2020

       Taxes prepaid, input VAT to be
         deducted and to be verified                             984,174,056          736,953,815
       Others                                                              -              415,922
                                                                 984,174,056          737,369,737

(10)   Current portion of long-term receivables

                                                           31 December 2021     31 December 2020

        Current portion of long-term
         receivables(Note 4(11))                                 13,236,153                      -

(11)   Long-term receivables

                                                            31 December 2021    31 December 2020

       Long-term receivables                                      64,375,548                         -
       Less:Unearned financing income                             (5,993,630)
       Provision for bad debts                                      (193,127)                        -
       Current portion of long-term
                receivables                                      (13,236,153)                        -
                                                                  44,952,638                         -

       As at 31 December 2021, the Group's long-term receivables were generated by instalment
       collections from disposal of fixed assets, which will be recovered from 2022 to 2026.




                                                                                           128
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(12)   Long-term equity investments

                                                                                                                     31 December 2021              31 December 2020

       Associate
       - Shanxi Yunnei Power Co., Ltd. (“The PowerCompany”)                                                                 220,842,615                            —
       - Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”)                                                                36,408,640                    39,496,548

       Less: Provision for impairment of long-term equity investments                                                                   -                             -
                                                                                                                              257,251,255                    39,496,548

       Associate

                                                                 Movements for the current year
                                                                                         Cash
                                                                   Share of net     dividends                                                                     Ending
                                          31                        profit/(loss)    declared                          31                                      balance of
                                    December      Increase in the under equity         by joint Provision for    December     Shareholding   Voting rights   provision for
                                        2020       current period       method       ventures    impairment          2021              (%)             (%)    impairment

       ThePower Company (i)                —      240,000,000    (19,157,385)             -                -   220,842,615           40%           40%                   -
       Hanon Systems               39,496,548                -     (3,087,908)             -                -    36,408,640        19.15%        33.33%                   -
       Total                       39,496,548      240,000,000    (22,245,293)             -                -   257,251,255

       Related information of equity in associates is set forth in Note 6(2).




                                                                                                                                                                    129
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(12)   Long-term equity investments (Cont’d)

(i)    The Power Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly
       owned subsidiary of the Company. According to the resolution of the Board of Directors in
       October 2020, the Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd.
       through public listing on the Shanghai United Assets and Equity Exchange.

       In January 2021, the Company and Yunnan Yunnei Power Group Co., Ltd. (hereinafter
       referred to as "Yunnei Group") signed the equity transaction contract.

       On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting
       in 2021, and approved the change of the Power Company's name to Shanxi Yunnei Power
       Co., Ltd., the change of shareholders to Yunnei Group and the Company, and the
       establishment of the board of directors, and election of directors. After the completion of the
       aforementioned changes, Yunnei Group has become the parent company and the ultimate
       parent company of the Power Company. The Company holds 40% of the shares of the Power
       Company and the Power Company becomes an associate of the Company.

(ii)   Hanon Systems has applied new financial instruments standard, new revenue standard and
       new       lease    standard     (“new    standards”)  since    1    January    2021,
       whichhavenosignificantimpactontheopeningbalanceofretainedearningsin2021 and have no
       significant impact on the opening balance of retained earnings and long-term equity
       investments in 2021 of the Group and the Company.




                                                                                                         130
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(13)   Fixed assets

                                                                 31 December 2021                       31 December 2020

       Fixed assets (a)                                                6,027,890,644                            5,164,260,516
       Fixed assets pending for disposal (b)                               1,411,387                                1,695,894
                                                                       6,029,302,031                            5,165,956,410

(a)    Fixed assets

                                           Machinery and                                       Electronic and
.                              Buildings      equipment        Vehicles           Moulds     other equipment               Total

       Cost
       31 December 2020 2,300,951,630      4,011,283,000    353,517,996     3,154,261,304     4,004,241,347     13,824,255,277
       Increase in the
         current year
         Transfer from
           construction in
           progress        538,509,317       706,767,723     69,996,484      180,038,631        626,022,878      2,121,335,033
       Decrease in the
         current year
         Disposal or
           retirement      (12,050,420)     (935,268,120)   (38,506,644)      (87,011,282)     (602,643,563) (1,675,480,029)
         Disposal of
           subsidiary      (82,341,445)     (143,668,191)     (8,210,163)     (11,336,918)     (103,958,753)  (349,515,470)
         Others                      -      (147,265,400)              -                -       (41,271,909)  (188,537,309)
       31 December 2021 2,745,069,082      3,491,849,012    376,797,673     3,235,951,735     3,882,390,000 13,732,057,502

       Accumulated
         depreciation
       31 December 2020 (573,584,513) (2,390,076,662) (232,596,897) (2,372,671,702)           (2,596,189,492) (8,165,119,266)
       Increase in the
         current year
         Provision       (62,844,878)   (242,175,058) (33,820,824)    (199,661,463)            (349,487,527)      (887,989,750)
       Decrease in the
         current year
         Disposal or
           retirement      4,630,261     769,404,860    29,799,812      80,589,492              539,734,981      1,424,159,406
         Disposal of
           subsidiary      8,113,372      53,053,728     5,046,854       5,185,220                55,174,829     126,574,003
         Others                    -     134,692,427              -               -               32,486,031     167,178,458
       31 December 2021 (623,685,758) (1,675,100,705) (231,571,055) (2,486,558,453)           (2,318,281,178) (7,335,197,149)

       Provision for
         impairment
       31 December 2020                -     (94,376,123)    (6,070,058)    (343,015,623)        (51,413,691)     (494,875,495)
       Increase in the
         current year
         Provision                     -      (2,131,673)      (263,994)                -         (1,242,734)         (3,638,401)
       Decrease in the
         current year
         Disposal or
           retirement                  -      83,943,269      3,500,585        6,158,551          35,941,782       129,544,187
       31 December 2021                -     (12,564,527)    (2,833,467)    (336,857,072)        (16,714,643)     (368,969,709)

       Carrying amount
       31 December 2021 2,121,383,324      1,804,183,780    142,393,151      412,536,210      1,547,394,179      6,027,890,644
       31 December 2020 1,727,367,117      1,526,830,215    114,851,041      438,573,979      1,356,638,164      5,164,260,516

       In 2021, depreciation charged to fixed assets amounted to RMB887,989,750 (2020:
       RMB984,968,013), of which the depreciation expenses charged in the cost of sales, selling and
       distribution expenses, general and administrative expenses and research and development
       expenses were RMB694,724,288, RMB1,965,774, RMB125,771,056 and RMB65,528,632 (2020:
       RMB747,787,243, RMB2,892,455, RMB166,883,300 and RMB67,405,015), respectively.

                                                                                                                131
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(13)   Fixed assets (Cont’d)

(a)    Fixed assets (Cont’d)

       The costs of fixed assets transferred from construction in progress amounted to
       RMB2,121,335,033 (2020: RMB974,985,684).

(i)    Temporarily idle fixed assets

       As at 31 December 2021, the fixed assets with a carrying amount of approximately
       RMB862,054,869 (a cost of RMB2,081,185,910) (31 December 2020: a carrying amount of
       approximately RMB16,532,578 and a cost of RMB483,214,712) were temporarily idle due to
       the reorganization plan of JMCH and the change of business development, product
       strategies, product process, etc. The analysis is as follows:

                                                      Accumulated     Provision for          Carrying
                                          Cost        depreciation     impairment             amount

       Buildings                  956,130,282         (347,949,680)               -       608,180,602
       Machinery and
         equipment                165,809,251          (86,285,548)     (5,802,462)        73,721,241
       Vehicles                    75,474,990          (48,323,990)     (2,777,601)        24,373,399
       Moulds                     476,856,785         (152,576,330)   (322,906,129)         1,374,326
       Electronic and
         other equipment          406,914,602         (239,436,212)    (13,073,089)       154,405,301
                                2,081,185,910         (874,571,760)   (344,559,281)       862,054,869


(ii)   Fixed assets with pending certificates of ownership:

                                                                            Reasons for not obtaining
                                                 Carrying amount             certificates of ownership

       Buildings                                      726,462,819                 Pending procedures




                                                                                                 132
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(13)   Fixed assets (Cont’d)

(b)    Fixed assets pending for disposal

                                                     31 December 2021                             31 December 2020

       Electronic and other
         equipment                                                1,096,021                                     1,639,777
       Machinery and equipment                                      280,051                                        56,117
       Vehicles                                                      35,315                                             -
                                                                  1,411,387                                     1,695,894

(14)   Construction in progress

                                               31 December 2021                             31 December 2020
                                                     Provision                                  Provision
                                                            for     Carrying                           for          Carrying
                                   Book balance    impairment        amount     Book balance impairment              amount

       N822 project                  92,903,791           -        92,903,791     31,176,961               -     31,176,961
       CX743conversion
         project                     62,473,608           -        62,473,608     26,409,132               -     26,409,132
       Coating VOC treatment
         project                     59,811,593           -        59,811,593      5,000,000               -      5,000,000
       Fushan       new    plant
       investment project            56,875,765           -        56,875,765   522,070,550                -    522,070,550
       CX756 project                 50,714,716           -        50,714,716    89,516,432            -         89,516,432
       V363C project                 29,320,960           -        29,320,960             -            -                  -
       Capacity optimisation
         project                     18,120,130           -        18,120,130   504,378,481            -        504,378,481
       V348 conversion
         project                     13,061,667           -        13,061,667     23,183,603           -         23,183,603
       V362 MCA project               4,666,773           -         4,666,773              -           -                  -
       JF8/CX743 project              3,622,051           -         3,622,051      7,347,943           -          7,347,943
       JP360                          2,615,448           -         2,615,448              -           -                  -
       Construction of
         Xiaolan 600 mu
         Phase 3 plan                 1,858,797           -         1,858,797   105,196,107            -        105,196,107
       Collision Simulation
         Laboratory                       4,535           -            4,535      45,422,684           -         45,422,684
       N356 project                           -           -                -      13,789,890           -         13,789,890
       Other miscellaneous
         and pending
         installation projects       52,980,484    (691,646)       52,288,838   162,697,633     (691,646)        162,005,987
                                    449,030,318    (691,646)      448,338,672 1,536,189,416     (691,646)      1,535,497,770




                                                                                                                  133
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(14)   Construction in progress (Cont’d)

(a)    Movement of significant projects of construction in progress

                                                                                                                                                                       % of            Accumulative         Including:
                                                                                       Transfer to fixed        Disposal of                                          project             capitalised Borrowing costs
                                        Budget       31 December    Increase in the       assets in the    subsidiary in the   Decrease in the    31 December   investment Progress       borrowing capitalised in the
       Project name              (In RMB 0’000)            2020       current year        current year        current year       current year           2021     in budget of project         costs     current year     Source of fund

       N822 project                     20,700       31,176,961      79,784,264          (18,057,434)                      -                -     92,903,791         53%         53%               -                 - Self-owned funds
       CX743conversion
         project                        11,349       26,409,132      38,096,925           (2,032,449)                      -                -     62,473,608         57%         57%               -                 - Self-owned funds
       Coating VOC treatment
         project                         7,730        5,000,000      55,305,566             (493,973)                      -                -     59,811,593         78%         78%               -                 - Self-owned funds
       Fushan new plant
         investment project           205,200       522,070,550     283,887,779        (676,873,577)                       -    (72,208,987)      56,875,765         95%         95%               -                 - Self-owned funds
       CX756 project                   17,768        89,516,432      33,843,896         (72,645,612)                       -              -       50,714,716         76%         76%               -                 - Self-owned funds
       V363C project                   54,300                 -      29,632,695            (311,735)                       -              -       29,320,960          6%          6%               -                 - Self-owned funds
       Capacity optimisation
         project                      133,990       504,378,481     473,577,551        (959,835,902)                       -                -     18,120,130         73%         73%               -                 -   Self-owned funds
       V348 conversion project          4,390        23,183,603      10,238,869         (20,360,805)                       -                -     13,061,667         83%         83%               -                 -   Self-owned funds
       V362 MCA project                 3,966                 -       4,666,773                    -                       -                -      4,666,773         12%         12%               -                 -   Self-owned funds
       JF8/CX743 project               13,690         7,347,943       4,288,655          (8,014,547)                       -                -      3,622,051         96%         96%               -                 -   Self-owned funds
       JP360                           26,823                 -       2,813,837            (198,389)                       -                -      2,615,448          3%          3%               -                 -   Self-owned funds
       Construction of Xiaolan
         600 mu Phase 3 plan            20,977      105,196,107      59,858,339        (163,195,649)                       -                -      1,858,797         79%         79%               -                 - Self-owned funds
       Collision Simulation
         Laboratory                      9,651       45,422,684        6,937,581         (52,355,730)                      -                -          4,535         80%        80%                -                 - Self-owned funds
       N356 project                     11,802       13,789,890          406,366         (14,196,256)                      -                -              -        100%       100%                -                 - Self-owned funds
       Other miscellaneous
         and pending
         installation projects                       162,697,633     180,000,970        (132,762,975)       (108,340,562) (48,614,582)            52,980,484                               292,897                   - Self-owned funds
                                                   1,536,189,416   1,263,340,066      (2,121,335,033)       (108,340,562) (120,823,569)          449,030,318                               292,897




                                                                                                                                                                                                               134
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(14)   Construction in progress (Cont’d)

(b)    Provision for impairment of construction in progress

                                                               Increase in the   Decrease in the
                                       31 December 2020           current year      current year   31 December 2021          Reason for provision

       Other miscellaneous
         and pending                                                                                                    The recoverable amount is
         installation projects                     (691,646)                 -                 -            (691,646)    lowerthan the book value




                                                                                                                                               135
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(15)   Right-of-use assets

                                                                                Buildings

       Cost
       31 December 2020                                                       42,736,398
         Increase in the current year
           New lease contracts                                               319,356,247
         Decrease in the current year
           Expiration of lease contract                                                -
       31 December 2021                                                      362,092,645

       Accumulated depreciation
       31 December 2020                                                       (14,330,508)
         Increase in the current year
           Provision                                                          (41,536,327)
         Decrease in the current year
           Expiration of lease contract                                                 -
       31 December 2021                                                       (55,866,835)

       Provision for impairment
       31 December 2020                                                                 -
         Increase in the current year                                                   -
         Decrease in the current year                                                   -
       31 December 2021                                                                 -

       Carrying amount
       31 December 2021                                                      306,225,810
       31 December 2020                                                       28,405,890

       In 2021, depreciation of right-of-use assets amounted to RMB41,536,327
       (2020:RMB14,748,075), of which RMB32,683,225, RMB3,824,867, RMB3,998,038 and
       RMB1,030,197were included in cost of sales, selling and distribution expenses and
       administrative expenses and research and development expenses, respectively (2020:
       RMB11,550,187, RMB3,112,038 and RMB85,850 were included in cost of sales, selling
       and distribution expenses and research and development expenses, respectively).




                                                                                      136
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(16)   Intangible assets

                                                                                After-sales
                                                                                   services
                                    Land use         Software       Non-patent management
                                       rights        licenses     technologies       mode        Others              Total

       Cost
       31 December 2020           751,625,667    206,965,791      540,153,070    36,979,184   1,599,516     1,537,323,228
       Increase in the current
         year
         Transfer from
            construction in
            progress               72,208,987     48,614,582                -             -            -     120,823,569
         Internal research
            and development                 -               -     239,594,428             -            -     239,594,428
       Decrease in the
         current year
         Disposal                           -       (183,146)               -             -            -        (183,146)
         Disposal of
         subsidiary               (68,741,281)       (54,640)               -             -           -       (68,795,921)
       31 December 2021           755,093,373    255,342,587      779,747,498    36,979,184   1,599,516     1,828,762,158

       Accumulated amortisation
       31 December 2020         (181,512,922)    (130,785,042)   (216,248,050) (36,979,184)   (1,599,516)   (567,124,714)
       Increase in the current
         year
         Provision               (16,014,455)     (26,963,804)   (117,309,644)           -             -    (160,287,903)
       Decrease in the
         current year
         Disposal                          -         137,360                -            -             -          137,360
         Disposal of
         subsidiary               11,188,209           13,812               -            -             -      11,202,021
       31 December 2021         (186,339,168)    (157,597,674)   (333,557,694) (36,979,184)   (1,599,516)   (716,073,236)

       Provision for impairment
       31 December 2020                     -               -     (38,806,961)           -             -      (38,806,961)
       Increase in the current
         year                               -                -              -             -            -                -
         Provision                          -                -              -             -            -                -
       31 December 2021                     -               -     (38,806,961)           -             -      (38,806,961)

       Carrying amount
       31 December 2021           568,754,205     97,744,913      407,382,843            -             -    1,073,881,961
       31 December 2020           570,112,745     76,180,749      285,098,059            -             -      931,391,553

       In 2021, amortization charged to intangible assets amounted to RMB160,287,903 (2020:
       RMB128,255,625), of which RMB415,534, RMB363,744, RMB40,110,291 and RMB
       119,398,334 were included in cost of sales, selling and distribution expenses and administrative
       expenses and research and development expenses, respectively(2020: RMB546,138, RMB
       406,143, RMB37,768, 698, RMB89,534,646 were included in cost of sales, selling and
       distribution expenses and administrative expenses and research and development expenses,
       respectively).




                                                                                                               137
          JIANGLING MOTORS CORPORATION, LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR EDNED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]

 4       Notes to the consolidated financial statements (Cont’d)

 (16)    Intangible assets (Cont’d)

         The Group's development expenditures are set out below:

                                                                            Decrease in the current year
                                         31 December   Increase in the     Recognised as                        31 December
                                                2020      current year   intangible assets        Write-off            2021

         Automobile products
            development project          173,473,242     177,125,536                     -     (239,594,428)     111,004,350


         Expenditures on research and development of the Group incurred in 2021 amounted to
         RMB1,886,139,707 (2020: RMB1,664,559,872) in total, of which RMB1,709,014,171
         (2020: RMB1,343,812,092) was recognised in profit or loss for the current period,
         RMB66,121,186 (2020: RMB147,274,538) was recognised as intangible assets for the
         current period and RMB111,004,350 (2020: RMB173,473,242) was included in the ending
         balance of development expenditures. As at 31 December 2021, the intangible assets
         developed by the Group accounted for 38% (31 December 2020: 31%) of the carrying
         amount of intangible assets.

(17)    Deferred tax assets and deferred tax liabilities

(a)     Deferred tax assets before offsetting

                                                 31 December 2021                          31 December 2020
                                       Deductible temporary                      Deductible temporary
                                            differences and    Deferred tax           differences and    Deferred tax
                                          deductible losses         assets          deductible losses         assets

        Accrued expenses and
          provisions                        4,820,934,400      1,096,537,713            3,918,637,644           896,970,479
        Recoverable losses                  1,878,611,797        282,043,452            2,032,780,205           307,105,716
        Provision for asset
          impairment                        1,209,522,802        186,548,154                 897,520,189        140,838,024
        Non-patent technology                 155,010,935         34,890,219                 108,124,026         23,281,348
        Employee education
          funds unpaid                         67,882,259         10,494,123               42,695,014              6,607,339
        Retirement benefits plan               59,941,000         14,147,350               67,587,000             15,497,050
        Deferred income                        49,074,545          7,361,182               49,944,625              7,491,694
        Others                                138,426,727         23,420,738               54,068,775              8,189,817
                                            8,379,404,465      1,655,442,931            7,171,357,478          1,405,981,467

        Including:
        Expected to be recovered
           within 1 year (inclusive)                           1,320,586,445                                   1,065,699,235
        Expected to be
           recovered after 1 year                                334,856,486                                     340,282,232
                                                               1,655,442,931                                   1,405,981,467




                                                                                                                       138
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

4       Notes to the consolidated financial statements (Cont’d)

(17)    Deferred tax assets and deferred tax liabilities (Cont’d)

(b)    Deferred tax liabilities before offsetting

                                                    31 December 2021                         31 December 2020
                                          Taxable temporary      Deferred tax      Taxable temporary      Deferred tax
                                                 differences         liabilities          differences         liabilities

       Depreciation of fixed assets          1,685,457,873         353,019,830         1,247,553,627        235,959,055
       Net losses related to debt
          exemption and equity
          transactions between
          parent and subsidiary                408,000,000           61,200,000          682,000,000        102,300,000
       Differences between the fair
          value of the identifiable net
          assets and carrying
          amount arising from
          business combinations not
          under common control                  96,002,180           24,000,545           98,780,656         24,695,164
       Amortisation of intangible
          assets                                45,631,805           7,847,331            38,367,939          5,779,320
       Others                                      242,329              60,582             1,095,069            273,767
                                             2,235,334,187         446,128,288         2,067,797,291        369,007,306

       Including:
       Expected to be recovered
          within 1 year (inclusive)                                 116,988,634                             147,540,386
       Expected to be recovered
          after 1 year                                              329,139,654                             221,466,920
                                                                   446,128,288                              369,007,306

(c)     Deductible temporary differences and deductible losses for which no deferred tax asset
        was recognised are analysed as follows:

                                                               31 December 2021                  31 December 2020

        Deductible temporary differences                            1,380,010,739                         3,119,574
        Deductible losses                                             108,539,538                       171,901,892
                                                                    1,488,550,277                       175,021,466

(d)     Deductible losses for which no deferred tax asset was recognised will be expired in
        following years:

                                                               31 December 2021                  31 December 2020

        2024                                                           108,539,538                      171,901,892

(e)     The net balances of deferred tax assets and deferred tax liabilities after offsetting are as
        follows:

                                                  31 December 2021                         31 December 2020
                                                 Offsetting Balance after                 Offsetting Balance after
                                                   amount       offsetting                  amount       offsetting

        Deferred tax assets                 (422,127,743) 1,233,315,188              (242,012,142) 1,163,969,325
        Deferred tax liabilities            (422,127,743)    24,000,545              (242,012,142) 126,995,164



                                                                                                                    139
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(18)   Provision for asset impairment and losses

                                                31 December      Increase in the         Decrease in the current year              31 December
                                                       2020         current year     Reversal          Write-off         Other            2021

       Provision for bad debts of
         accounts receivable                     233,902,000                   -   (15,345,078)                -        (24,254)    218,532,668
       Including: Provision for bad
                    debts on the
                    individual basis             186,293,298                   -    (2,250,000)                -              -     184,043,298
                  Provision for bad
                    debts on the
                    grouping basis                 47,608,702                  -   (13,095,078)                -        (24,254)     34,489,370
       Provision for bad debts of other
         receivables                                   217,909          823,789              -                 -         (5,138)      1,036,560
       Provision for impairment of
         long-term receivables                             -            193,127              -                 -              -         193,127
         Sub-total                               234,119,909          1,016,916    (15,345,078)                -        (29,392)    219,762,355

       Provision for inventories                 141,966,728         46,066,923     (6,431,872)    (104,861,958)              -      76,739,821
       Provision for impairment of
         fixed assets                            494,875,495          3,638,401              -     (129,544,187)              -     368,969,709
       Provision for impairment of
         construction in progress                      691,646                 -             -                 -              -        691,646
       Provision for impairment of
         goodwill                                  89,028,412                  -             -                 -              -      89,028,412
       Provision for impairment of
         intangible assets                        38,806,961                  -              -                -               -      38,806,961
         Sub-total                               765,369,242         49,705,324     (6,431,872)    (234,406,145)              -     574,236,549
                                                 999,489,151         50,722,240    (21,776,950)    (234,406,145)        (29,392)    793,998,904




                                                                                                                                           140
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(19)   Short-term borrowings

                                                           31 December 2021   31 December 2020

       Credit loan                                              300,000,000        500,000,000


       As at 31 December 2021, the interest rate for the short-term borrow ingsis 2.85%(31
       December 2020: between 2.05% to 3.15%).

(20)   Derivative financial liabilities

                                                           31 December 2021   31 December 2020

       Derivative financial liabilities -
        Forward exchange contracts                               10,704,619          3,716,727

       As at 31 December 2021 and 31 December 2020, derivative financial liabilities mainly
       represented forward exchange contracts.

(21)   Accounts payable

                                                           31 December 2021   31 December 2020

       Payable for automobile parts                           9,377,900,014       9,672,652,729
       Payable for raw and auxiliary
         materials                                              324,684,816         353,563,148
                                                              9,702,584,830      10,026,215,877

       As at 31 December 2021, accounts payable with ageing over 1 year amounted to
       RMB747,156,926 (31 December 2020: RMB431,202,897), which mainly represented
       materials payable for which a settlement price had not yet been determined, and such
       payables had not been finally settled yet.




                                                                                           141
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(22)   Contract liabilities

                                                             31 December 2021                 31 December 2020

       Advances for automobiles and
         automobile parts                                            223,779,674                     521,367,837
       Advances for maintenance and
         warranty services                                           168,272,152                     136,685,473
                                                                     392,051,826                     658,053,310
       Less: Contract liabilities carried
               forward to revenue after 1
               year (Note 4(33))                                     (119,777,649)                   (99,526,464)
                                                                      272,274,177                    558,526,846

       In     2021,      contract    liabilities  amounting     to    RMB558,526,846(2020:
       RMB268,170,154)included in the carrying amount As at 31 December 2020 were
       transferred to the revenue of 2021, including advances for automobiles and automobile
       parts amounting to RMB521,367,837 (2020: RMB227,774,183), and advances for
       maintenance and warranty services amounting to RMB37,159,009 (2020:
       RMB40,395,971).

(23)   Employee benefits payable

                                                             31 December 2021                   31 December 2020

       Short-term employee benefits
         payable (a)                                                  593,229,732                    617,598,452
       Defined contribution plans payable (b)                         168,161,617                    135,699,978
       Defined benefit plans payable (c)                                2,930,000                      3,415,000
       Termination benefits payable (d)                                 2,665,176                      2,655,176
                                                                      766,986,525                    759,368,606

(a)    Short-term employee benefits
                                  31 December              Increase in the    Decrease in the         31 December
                                         2020                 current year       current year                2021

       Wages and salaries,
          bonus, allowances,
          and subsidies            539,376,881              1,870,970,234     (1,944,872,701)          465,474,414
       Staff welfare                26,872,505                122,589,603       (110,145,006)           39,317,102
       Social security
          contributions              3,877,466                116,050,622       (102,596,226)           17,331,862
       Including: Medical
                     insurance                -                98,300,892        (85,954,986)           12,345,906
                  Work injury
                     insurance       3,877,466                  6,355,063           (6,276,378)          3,956,151
                  Maternity
                     insurance                -                11,394,667        (10,364,862)            1,029,805
       Housing funds                          -               159,849,067       (159,656,606)              192,461
       Labor union and
          employee education
          costs                     47,471,600                 67,705,466        (44,263,173)           70,913,893
       Other short-term
          employee benefits                  -                  9,686,712         (9,686,712)                    -
                                   617,598,452              2,346,851,704     (2,371,220,424)          593,229,732




                                                                                                             142
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(23)   Employee benefits payable (Cont'd)

(b)    Defined contribution plans

                                                            Increase in     Decrease in
                               31 December                  the current      the current       31 December
                                      2020                        year             year               2021

       Basic pensions           131,620,467                243,129,681     (211,668,261)       163,081,887
       Supplementary
         pensions                             -             10,400,000      (10,400,000)                    -
       Unemployment
         insurance                4,079,511                  7,640,865       (6,640,646)         5,079,730
                                135,699,978                261,170,546     (228,708,907)       168,161,617

(c)    Defined benefit plans

                                                           Increase in       Decrease in
                               31 December                 the current        the current      31 December
                                      2020                       year               year              2021

       Post-retirement
         benefits
         payable (Note
         4(32))                    3,415,000                 2,350,051           (2,835,051)      2,930,000

(d)    Termination benefits payable

                                                            31 December 2021             31 December 2020

       Early retirement benefits payable
         (Note 4(32))                                                1,327,000                  1,317,000
       Other termination benefits (i)                                1,338,176                  1,338,176
                                                                     2,665,176                  2,655,176

       (i) In 2021, other termination benefits paid by the Group for termination of the employment
       relationship were RMB16,420,116 (2020: RMB15,631,166).

(24)   Taxes payable

                                                            31 December 2021             31 December 2020

       Enterprise income tax payable                               170,084,881                  88,142,260
       Consumption tax payable                                      85,326,751                  78,952,885
       Land use tax payable                                          6,174,129                   5,746,521
       Unpaid VAT                                                      434,482                  26,439,025
       Others                                                       25,151,477                  19,164,536      19,278,5
                                                                   287,171,720                 218,445,227




                                                                                                      143
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(25)   Other payables

                                                           31 December 2021     31 December 2020

       Promotion expenses                                      2,620,282,716        2,213,691,765
       Research and development project
          expenses                                              877,392,808           673,089,112
       Construction payment                                     541,897,265           290,525,592
       Transportation expenses                                  273,386,502           148,274,852
       Advertising and new product
          planning fees                                         138,500,269           161,524,470
       Guarantees payable                                       131,123,402            97,973,078
       Technological transformation project
          expenses                                                61,104,696           21,530,592
       Trademark license fee                                      15,572,521            2,485,538
       Consulting fees                                            14,322,912           10,298,545
       Ordinary share dividends payable                            6,463,836            6,463,836
       Others                                                    573,753,878          527,992,245
                                                               5,253,800,805        4,153,849,625

       As at 31 December 2021, other payables with ageing over 1 year of RMB1,433,335,159
       (31 December 2020: RMB819,824,836) mainly comprised guarantees collected from
       logistics companies, distributors and repair stations, payables for construction projects and
       payables for research and development expenses. Such payables have not been finally
       settled yet in view of the continuing business transactions with distributors and service
       providers, and engineering projects and research and development projects that had not
       yet been accepted and completed.

(26)   Current portion of non-current liabilities

                                                            31 December 2021    31 December 2020

       Current portion of lease
         liabilities(Note 4(29))                                  77,621,681            10,481,886
       Current portion of long-term
         borrowings(Note 4(28))                                      417,507               427,277
                                                                  78,039,188            10,909,163

(27)   Other current liabilities

                                                           31 December 2021     31 December 2020

       Provisions expected to be settled
          within 1 year(Note 4(30))                              391,365,455           343,121,509
       Others                                                     29,091,358            67,777,819
                                                                 420,456,813           410,899,328




                                                                                                144
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(28)   Long-term borrowings

                                                            31 December 2021               31 December 2020

       Guaranteed loans                                              2,505,044                        2,990,943
       Less: Current portion of long-term
               borrowings(Note 4(26))                                 (417,507)                        (427,277)
                                                                     2,087,537                        2,563,666

       The     above     guaranteed       loanswere   long-term   borrowings  amounting     to
       USD392,905guaranteed by JMCF, borrowed from Industrial and Commercial Bank of
       China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year and
       the principal was paid in instalments between 10 December 2007 and 27 October 2027. In
       2021, the interest rate of long-term borrowings was 1.5% (2020: 1.5%).

                                                                     31 December 2021        31 December 2020
                                                                    Amount in              Amount in
                              Starting   Maturity          Interest   foreign      RMB        foreign       RMB
                                 date       date Currency rate (%) currency equivalent      currency  equivalent

       ICBC Nanchang
         Ganjiang Sub-     27 February 27 October
         branch                  1998       2027      USD     1.5%   392,905   2,505,044    458,389     2,990,943

(29)   Lease liabilities

                                                            31 December 2021               31 December 2020

       Lease liabilities                                         341,031,095                      29,480,838
       Less: Current portion of non-
                current liabilities (Note
                4(26))                                            (77,621,681)                    (10,481,886)
                                                                 263,409,414                       18,998,952

(a)    As at 31 December 2021, the Group has no leases that are not included in lease liabilities
       but will result in potential future cash outflows.

(b)    As at 31 December 2021, Group has no signed short-term lease and low-value asset lease
       contracts that are simplified in accordance with the new lease standards..




                                                                                                            145
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(30)   Provisions

                                                           Increase in         Decrease in
                                   31 December             the current          the current           31 December
                                          2020                   year                 year                   2021

       Product warranties i)        511,619,012            454,077,121         (396,448,655)          569,247,478
       Provision for contracts       27,398,636                      -           (7,693,495)           19,705,141
                                    539,017,648            454,077,121         (404,142,150)          588,952,619
       Less: Provisions
               expected to
               be settled
               within 1 year
               (Note 4(27))        (343,121,509)                                                     (391,365,455)
                                    195,896,139                                                       197,587,164

i)     Product warranties are expenses expected to be incurred during the warranty period from free
       after-sales services, product warranty and other services for the vehicles sold.

(31)   Deferred income

                                                  Increase in   Decrease in
                           31 December            the current    the current     31 December
                                  2020                  year           year             2021              Reason

       Government                                                                                      Subsidy for
         grants (a)           49,944,625           1,200,000      (2,070,080)      49,074,545            projects

(a)    Government grants

                                                       Decrease in the current year                             Asset
                                31      Increase in                                            31
                          December      the current                            Offset    December             related/
                              2020            year     Recognised in        financial        2021             Income
                                                        other income       expenses                            related

       Research and
        development-
        related                                                                                               Income
        subsidies    47,519,981             960,000        (309,955)               -     48,170,026            related
       Government
        interest                                                                                              Income
        subsidies     1,760,125                    -               -     (1,760,125)             -             related
                                                                                                              Income
       Others               664,519         240,000               -                -        904,519            related
                         49,944,625       1,200,000        (309,955)     (1,760,125)     49,074,545




                                                                                                        146
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(32)   Long-term employee benefits payable

                                                           31 December 2021           31 December 2020

       Supplementary retirement benefits
         and early-retirement benefits
         eligible for recognition of provisions                   59,941,000                  67,587,000
       Less: Payable within 1 year                                (4,257,000)                  (4,732,000)
                                                                  55,684,000                  62,855,000

       The retirement and early-retirement benefits payable within one year are included in
       employee benefits payable(Note 4(23)(c),(d)).

       For retired and early-retired employees, the Group provides them with a certain amount of
       supplementary benefits during their retirement or early-retirement period. The amount of
       benefits depends on the employee's position, length of service and salary at the time of
       retirement or early-retirement, and is adjusted in accordance with inflation rate and other
       factors. The Group's obligations for supplementary retirement and early-retirement benefits
       as at the balance sheet date were calculated using projected unit credit method and were
       reviewed by an external independent actuary.

(a)    Movements of retirement and early-retirement benefits of the Group are as follows:

                                                           Present value of the obligations of the defined
                                                                            benefit plan
                                                           31 December 2021              31 December 2020

       Opening balance                                             67,587,000                  68,441,000

       Cost of defined benefit plans
          recognised in profit or loss for the
          current period
       - Current service cost                                       1,346,000                   1,242,000
       - Past service cost                                        (14,664,000)                          -
       - Actuarial losses/(gains)recognised
            immediately                                               800,000                    (843,000)
       - Net interest                                               2,463,000                   2,324,000

       Remeasurement of net liabilities for
          defined benefit plans
       - Actuarial losses                                           6,218,000                     485,000

       Other movements
       - Benefits paid                                             (3,809,000)                 (4,062,000)

       Ending balance                                              59,941,000                  67,587,000




                                                                                                      147
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(32)   Long-term employee benefits payable (Cont'd)

(b)    The actuarial assumptions used to determine the present value of defined benefit plan
       obligations

                                                           31 December 2021         31 December 2020

       Discount rate                                                 3.00%                        3.75%
       Inflation rate                                                2.00%                        2.00%
       Salaries and benefits growth
          rates                                                      0%-6%                       0%-6%

       Future mortality assumptions were determined based on the China Life Insurance Mortality
       Table (2010-2013), which is publicly available statistical information for the Chinese region.

(c)    The sensitivity analysis of the actuarial assumptions used to determine the present value of
       defined benefit plan obligations is as follows:

                                                                         Effect on present value of
                                                                         defined benefit obligations
                                                      Variation in        Assumed             Assumed
                                                     assumptions           increase           decrease

                                                                        Decrease of         Increase of
       Discount rate                                          0.5%             5.9%               6.7%
                                                                         Increase of       Decrease of
       Inflation rate                                         0.5%             4.0%               3.4%

       The above sensitivity analysis is based on a change in an assumption while holding all
       other assumptions constant. In practice, changes in some of the assumptions may be
       correlated. The projected unit credit method is also utilised in calculating the present value
       of the defined benefit obligations in the analysis.

(d)    Supplementary retirement and early-retirement benefits expose the Group to various
       risks, mainly including risk of changes in the interest rate of treasury bonds, inflation risk,
       etc. Decline in the interest rate of treasury bonds will lead to an increase in defined benefit
       plan liabilities. Supplementary retirement and early-retirement benefits obligations keep
       pace with inflation, and the rise in inflation will increase the defined benefit plan liabilities.

(33)   Other non-current liabilities

                                                           31 December 2021         31 December 2020

       Contract liabilities carried forward to
         revenue after one year (Note
         4(22))                                                 119,777,649                 99,526,464




                                                                                                     148
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(34)   Share capital

                                                                                     Movements for the current year
                                                     31 December     Shares                   Transfer                                       31 December
                                                            2020      newly         Bonus from capital                                              2021
                                                                     issued          share      surplus         Others       Sub-total

       Shares subject to trading
         restriction -
        Other domestic shares
        Including: Shares held by
                       domestic non-state-
                       owned legal
                       persons                             745,140         -             -              -              -              -           745,140
                    Shares held by domestic
                       natural persons                       5,700         -             -              -              -              -              5,700
                                                           750,840         -             -              -              -              -            750,840

       Shares not subject to trading
         restriction -
         Ordinary shares denominated in
           RMB                                        518,463,160          -             -              -              -              -       518,463,160
         Domestically listed foreign
           shares                                     344,000,000          -             -              -              -              -       344,000,000
                                                      862,463,160          -             -              -              -              -       862,463,160
                                                      863,214,000          -             -              -              -              -       863,214,000

       Since the implementation of the Company's Scheme on Share Split Reform on 13 February 2006, As at 31 December 2021, there were 750,840
       shares currently unavailable for trading. During the reporting period, During the reporting period, there was no shares with trading restrictions were
       released from the restricted conditions.




                                                                                                                                                        149
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(34)   Share capital (Cont’d)

                                                                                   Movements for the current year
                                                      31 December        Shares             Transfer                               31 December
                                                             2019         newly   Bonus from capital                                      2020
                                                                         issued    share      surplus         Others   Sub-total

       Shares subject to trading
         restriction -
        Other domestic shares
        Including: Shares held by
                       domestic non-state-
                       owned legal
                       persons                                749,940        -        -             -        (4,800)     (4,800)       745,140
                    Shares held by domestic
                       natural persons                            975        -        -             -         4,725       4,725          5,700
                                                              750,915        -        -             -           (75)        (75)       750,840

       Shares not subject to trading
         restriction -
         Ordinary shares denominated in
           RMB                                             518,463,085       -        -             -            75          75    518,463,160
         Domestically listed foreign
           shares                                          344,000,000       -        -             -             -           -    344,000,000
                                                           862,463,085       -        -             -            75          75    862,463,160
                                                           863,214,000       -        -             -             -           -    863,214,000




                                                                                                                                           150
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(35)   Capital surplus

                                                           Increase in   Decrease in
                                     31 December           the current    the current   31 December
                                            2020                 year           year           2021

       Share premium                  816,609,422                   -              -     816,609,422
       Other capital surplus           22,833,068                   -              -      22,833,068
                                      839,442,490                   -              -     839,442,490

                                                           Increase in   Decrease in
                                     31 December           the current    the current   31 December
                                            2019                 year           year           2020

       Share premium                  816,609,422                    -              -   816,609,422
       Other capital surplus           22,833,068                    -              -    22,833,068
                                      839,442,490                    -              -   839,442,490




                                                                                                151
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(36)   Other comprehensive income

                                                            Other comprehensive income in the      Other comprehensive income in the income statement for
                                                                     balance sheet                             the year ended 31 December 2021
                                                                                                        Amount Less: Transfer-
                                                                                                       incurred out of previous
                                                                     Attributable                        before              other            Attributable
                                                                 31 to the parent          31       income tax comprehensive           Less: to the parent
                                                           December     company      December            for the    income in the Income tax     company
                                                               2020      after tax       2021      current year       current year expenses       after tax

       Other comprehensive income items which
         will not be reclassified to profit or loss
         Actuarial gains on defined benefit plans (11,759,250)          (4,663,500) (16,422,750)    (6,218,000)                -    1,554,500 (4,663,500)

                                                            Other comprehensive income in the      Other comprehensive income in the income statement for
                                                                     balance sheet                             the year ended 31 December 2020
                                                                                                        Amount Less: Transfer-
                                                                                                       incurred out of previous
                                                                     Attributable                        before              other            Attributable
                                                                 31 to the parent          31       income tax comprehensive           Less: to the parent
                                                           December     company      December            for the    income in the Income tax     company
                                                               2019      after tax       2020      current year       current year expenses       after tax

       Other comprehensive income items which
         will not be reclassified to profit or loss
         Actuarial gains on defined benefit plans (11,395,500)           (363,750) (11,759,250)       (485,000)                -    121,250      (363,750)




                                                                                                                                                       152
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(37)   Surplus reserve

                                      31 December          Increase in the   Decrease in the    31 December
                                             2020             current year      current year           2021

       Statutory surplus reserve       431,607,000                      -                  -     431,607,000

                                      31 December          Increase in the   Decrease in the    31 December
                                             2019             current year      current year           2020

       Statutory surplus reserve       431,607,000                      -                  -     431,607,000

       In accordance with the Company Law of the People's Republic of China, the Company’s
       Articles of Association and the resolution of the Board of Directors, the Company should
       appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company
       can cease appropriation when the statutory surplus reserve accumulated to more than 50%
       of the registered capital. The statutory surplus reserve can be used to make up for the loss
       or increase the share capital upon approval from the appropriate authorities. As the
       accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered
       capital, no appropriation was made in the current year (2020: Nil).

       The Company reserves the discretionary surplus reserve after the shareholders’ meeting
       approves the proposal from the Board of Directors. The discretionary surplus reserve can
       be used to compensate for the losses incurred in prior years or increase the share capital
       upon approval from appropriate authorities.


(38)   Retained earnings

                                                                             2021                       2020

       Retained earnings at the beginning of the
          year                                                    8,863,969,769                8,373,695,791
       Add: Net profit attributable to
                shareholders of the parent
                company for the current year                         574,165,944                550,698,958
       Less: Ordinary share dividends payable
                (a)                                               (3,000,531,864)                 (60,424,980)
       Retained earnings at the end of the year                    6,437,603,849               8,863,969,769

(a)    According to the resolution of the general meeting of shareholders on 25 June 2021, the
       Company distributed cash dividends of RMB3.476 per share to all shareholders, calculated
       on the basis of 863,214,000 issued shares, for a total of RMB3,000,531,864.

       According to the resolution of the meeting of board of directors on 28March 2022, the board
       of directors proposeto distribute cash dividends of RMB0.266 per share to all shareholders,
       calculated on the basis of 863,214,000 issued shares, for a total of RMB229,614,924(Note
       11).




                                                                                                         153
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(39)   Revenue and cost of sales

                                                                     2021                          2020

       Revenue from main operations                         34,530,048,320              32,535,277,434
       Revenue from other operations                           691,258,152                 560,456,231
                                                            35,221,306,472              33,095,733,665

                                                                     2021                          2020

       Cost of revenue from main operations                 29,485,820,650              26,984,653,662
       Cost of sales from other operations                     631,633,717                 533,856,251
                                                            30,117,454,367              27,518,509,913

(a)    Revenue and cost of sales from main operations

                                         2021                                      2020
                           Revenue from       Cost of revenue         Revenue from      Cost of revenue
                          main operations          from main         main operations         from main
                                                   operations                                operations

       Sales of
         automobiles       32,317,182,099        27,809,982,305      30,666,834,098      25,638,598,860
       Sales of
         automobile
         parts              2,101,505,690         1,557,352,106       1,774,007,492        1,250,772,343
       Automobile
         maintenance
         services             111,360,531           118,486,239          94,435,844          95,282,459
                           34,530,048,320        29,485,820,650      32,535,277,434      26,984,653,662

(b)    Revenue and cost of sales from other operations

                                        2021                                        2020
                           Revenue from Cost of sales from             Revenue from Cost of sales from
                         other operations    other operations        other operations    other operations

       Sales of
         materials          561,673,748            505,559,175          409,363,603          385,388,976
       Others               129,584,404            126,074,542          151,092,628          148,467,275
                            691,258,152            631,633,717          560,456,231          533,856,251




                                                                                                     154
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(39)   Revenue and cost of sales (Cont’d)

(c)    The Group's revenue is broken down as follows:

                                                                           2021
                                     Automobiles    Automobile parts     Automobile       Materials and             Total
                                                                       maintenance               others
                                                                       services, etc.

       Revenue from main
          operations               32,317,182,099     2,101,505,690    111,360,531                    -   34,530,048,320
       Including: Recognised at
                    a time point   32,317,182,099     2,101,505,690                 -                 -   34,418,687,789
                  Recognised
                     within a
                     certain
                     period                     -                  -   111,360,531                    -     111,360,531
       Revenue from other
          operations                            -                 -              -         691,258,152       691,258,152
                                   32,317,182,099     2,101,505,690    111,360,531         691,258,152    35,221,306,472

                                                                          2020
                                     Automobiles    Automobile parts    Automobile        Materials and             Total
                                                                       maintenance               others
                                                                           services

       Revenue from main
          operations               30,666,834,098     1,774,007,492     94,435,844                    -   32,535,277,434
       Including: Recognised at
                    a time point   30,666,834,098     1,774,007,492                 -                 -   32,440,841,590
                  Recognised
                     within a
                     certain
                     period                     -                  -    94,435,844                    -      94,435,844
       Revenue from other
          operations                            -                  -                -     560,456,231       560,456,231
                                   30,666,834,098     1,774,007,492      94,435,844       560,456,231     33,095,733,665


(i)    As at 31 December 2021, the amount of revenue corresponding to the performance obligations
       that the Group has signed but has not performed or has not yet performed is RMB392,051,826,
       of which the Group expects that RMB223,779,674 will be recognized as revenue from the sale
       of automobiles and parts in 2022. RMB168,272,152 will be recognized as revenue from
       automobile maintenance services during 2022 to 2027.

(40)   Taxes and surcharges

                                                                                        2021                     2020

       Consumption tax                                                      760,386,647                   630,470,931
       City construction and maintenance tax                                 82,265,926                    88,105,730
       Educational surcharge                                                 76,717,032                    77,624,969
       Land use tax                                                          18,625,222                    18,174,629
       Real estate tax                                                       17,284,111                    14,724,040
       Stamp duty                                                            12,397,463                     8,275,503
       Others                                                                   472,592                       501,206
                                                                            968,148,993                   837,877,008




                                                                                                              155
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(41)   Selling and distribution expenses

                                                                   2021            2020

       Promotion expenses                                   462,406,230     341,416,881
       Warranties                                           454,077,121     470,211,035
       Employee benefits                                    189,694,233     146,679,411
       Advertising and
       new product planning fees                            186,501,944     246,766,019
       Storage expenses                                      48,592,062      37,410,599
       Packaging material expenses                           36,696,621      34,225,598
       Sales network
       construction expenses                                 14,063,346     134,851,706
       Depreciation and amortisation
         expenses                                              6,154,385       6,410,636
       Others                                                133,622,101     126,765,143
                                                           1,531,808,043   1,544,737,028

(42)   General and administrative expenses

                                                                   2021            2020

       Employee benefits                                     576,689,666    536,931,919
       Depreciation and amortisation
          expenses                                           169,879,385     204,651,998
       Trademark license fee                                  56,532,031      46,878,508
       Repair expenses                                        56,019,261      30,893,355
       Cartagefee                                             40,886,163       8,174,289
       Consulting expenses                                    38,531,796      23,668,984
       General office expenses                                26,545,639      20,691,777
       Others                                                187,134,649     140,456,343
                                                           1,152,218,590   1,012,347,173

(43)   Research and development expenses

                                                                   2021            2020

       Employee benefits                                    483,915,948     450,728,077
       Design fee                                           378,814,577     239,481,179
       Technology development expenses                      239,561,528     224,124,643
       Materials expenses                                   204,200,408      91,583,428
       Depreciation and amortisation
          expenses                                           185,957,163     157,025,511
       Others                                                216,564,547     180,869,254
                                                           1,709,014,171   1,343,812,092




                                                                                     156
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(44)   Financial expenses

                                                                   2021                   2020

       Interest costs                                        17,868,043             27,293,064
       Add: Interest costs on lease
                liabilities                                    7,532,316             1,444,481
       Less: Government grants (Note
                4(31))                                       (1,760,125)            (9,454,375)
       Interest expenses                                     23,640,234             19,283,170
       Less: Interest income from cash at
                bank                                        (257,779,550)         (207,633,739)
             Fund occupation fee (a)                          (15,836,668)          (7,628,722)
             Other interest income                            (26,785,621)                    -
       Interest income                                      (300,401,839)         (215,262,461)
       Exchange gains or losses                              (21,273,861)           (2,841,917)
       Others                                                   2,279,909            1,253,695
                                                            (295,755,557)         (197,567,513)

(a)    The fund occupation fee is the fee paid to the Group at the rate agreed by both parties
       when the distributors delay payment or settle with a bill of exchange.

(45)   Expenses by nature

       The cost of sales, selling and distribution expenses, general and administrative expenses
       and research and development expenses in the income statement are listed as follows by
       nature:

                                                                     2021                 2020

       Changes in inventories of finished
          goods and work in progress                         137,184,837          (331,803,127)
       Consumed raw materials, low value
          consumables, etc.                                26,762,865,094       24,178,117,051
       Employee benefits                                    2,614,387,917        2,517,567,518
       Depreciation of fixed assets                           887,989,750          984,968,013
       Amortisation of intangible assets                      160,287,903          128,255,625
       Depreciation of right-of-use assets                     41,536,327           14,748,075
       Transportation expenses                                803,085,951          672,534,669
       Promotion expenses                                     462,406,230          341,416,881
       Warranties                                             454,077,121          470,211,035
       Design fee                                             378,814,577          239,481,179
       Technology development expenses                        239,561,528          224,124,643
       Advertising and new product
          planning fees                                      186,501,944           246,766,019
       Fixed asset repair and maintenance
          expenses (a)                                        184,972,267          153,676,679
       Others                                               1,196,823,725        1,579,341,946
                                                           34,510,495,171       31,419,406,206




                                                                                             157
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(45)   Expenses by nature (Cont’d)

(a)    The Group includes daily maintenance expenses ineligible for the capitalisation of fixed
       assets regarding the production and processing of inventories into cost of inventories,
       which will be carried forward to cost of sales, and those regarding the R&D Department,
       Administrative Department, and Sales Department are included in research and
       development expenses, management expenses and selling and distribution expenses
       respectively.

(b)    As stated in Note 2(22), the Group directly recognises the lease payments of short-term
       lease and low value lease into profit or loss for the current period. In 2021, the amount was
       RMB1,066,925(2020: RMB898,733).

       Due to the impact of COVID-19, the lessor exempted the Group from paying the rental of
       RMB47,937for the 2021, and the Group has deducted the above rental waivers against the
       rental expense for the current period (2020: RMB442,611).

(46)   Asset impairment losses

                                                                  2021                         2020

       Provision for inventories                            39,635,051                 133,257,119
       Impairment of fixed assets                            3,638,401                 487,531,202
       Impairment of intangible assets                               -                  38,806,961
       Impairment of development
         expenditures                                                -                  22,289,502
                                                            43,273,452                 681,884,784

(47)   Credit impairment losses

                                                                 2021                          2020

       Losses on bad debts of accounts
         receivable                                        (15,345,078)                 79,857,936
       Losses on bad debts of other
         receivables                                          823,789                       (91,687)
       Losses on bad debts of long-term
         receivables                                           193,127                           -
                                                           (14,328,162)                 79,766,249

(48)   Other income

                                                                                    Assets related/
                                                 2021            2020               Income related

       Subsidy for operating
        activities                      539,301,095        240,480,710              Income related
       Research and
        development
        activities related
        subsidies                        11,770,150         27,741,579              Income related
                                        551,071,245        268,222,289




                                                                                                158
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(49)   Investment income

                                                                      2021                     2020

       Investment income from disposal of long-
         term equity investments                                 52,133,307                -
       Investment income from financial assets
         held for trading                                        15,174,593              77,849,662
       Losses on discount of financing receivables
         eligible for dere cognition                         (25,013,202)                (3,811,706)
       Losses on long-term equity investments
         under equity method                                 (22,245,293)                (1,438,009)
       Investment loss from forward exchange
         settlement                                          (20,618,121)                (2,421,091)
                                                                (568,716)                70,178,856

       There is no significant restriction on the remittance of investment income of the Group.

(50)   Gains on changes in fair value

                                                                              2021             2020

       Financial assets at fair value through profit or loss -
         Structural deposits                                             (3,650,656)      3,892,985
       Derivative financial assets and derivative financial
         liabilities -
         Losses on forward exchange contracts                            (6,987,892)      (3,171,095)
                                                                        (10,638,548)        721,890

(51)   Gains on disposal of assets

                                                                               Amount recognised in
                                                                               non-recurring profit or
                                                   2021              2020               loss in 2021

       Gains/(Losses) on
        disposal of assets                   16,977,005           (713,072)               16,977,005




                                                                                                  159
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(52)   Non-operating income

                                                                              Amount recognised in
                                                                              non-recurring profit or
                                                2021                 2020              loss in 2021

       Compensation and
         penalty income                   3,437,808             2,999,142                 3,437,808
       Government grants
         (a)                                      -                80,000                         -
       Others                             1,169,029             8,555,775                 1,169,029
                                          4,606,837            11,634,917                 4,606,837

(53)   Non-operating expenses

                                                                                Amount recognised
                                                                              in non-recurring profit
                                                       2021           2020           or loss in 2021

       Losses on scrapping and
         disposal of assets (i)               11,869,191       167,067,708               11,869,191
       Donations                               1,995,000         5,198,781                1,995,000
       Others                                    584,761           487,056                  584,761
                                              14,448,952       172,753,545               14,448,952

       (i)In 2020, due to the business restructuring plan of JMCH, the disposal losses of land and
       above-ground buildings amount to RMB141,186,984 was recognised in losses on
       scrapping and disposal of assets.

(54)   Income tax expenses

                                                                     2021                      2020

       Current income tax calculated based
         on tax law and related regulations                    170,451,319             102,545,094
       Deferred income tax                                    (188,145,817)           (201,585,786)
                                                               (17,694,498)            (99,040,692)




                                                                                                 160
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(54)   Income tax expenses (Cont’d)

       The reconciliation from income tax calculated based on the applicable tax rates and total
       profit presented in the consolidated income statement to the income tax expenses is listed
       below:

                                                                     2021                    2020

       Total profit                                            556,471,446            451,658,266
       Income tax calculated at applicable tax rates          (149,370,177)           (65,608,806)
       Effect of change in the tax rates                        46,112,633            (38,461,745)
       Tax credit                                                        -               (289,629)
       Additional deductions                                 (166,139,453)           (117,791,694)
       Non-taxable loss                                          3,221,355                215,701
       Equity transactions and debt exemption
          between parent and subsidiary                        41,735,873             302,000,000
       Costs, expenses and losses not deductible
          for tax purposes                                     16,317,418              51,214,472
       Utilisation of previously unrecognised
          deductible temporary differences                       (663,082)            (40,487,091)
       Deductible losses for which no deferred tax
          asset was recognised in the current
          period                                              206,931,524                         -
       Utilisation of the deductible loss of the
          unrecognized deferred tax asset in the
          previous period                                     (15,840,589)           (189,831,900)
       Income tax expenses                                    (17,694,498)            (99,040,692)

(55)   Earnings per share

(a)    Basic earnings per share

       Basic earnings per share are calculated by dividing consolidated net profit attributable to
       ordinary shareholders of the parent company by the weighted average number of
       outstanding ordinary shares of the parent company:

                                                                      2021                    2020

       Consolidated net profit attributable to ordinary
         shareholders of the parent company                   574,165,944              550,698,958
       Weighted average number of ordinary shares
         outstanding issued by the Company                    863,214,000              863,214,000
       Basic earnings per share                                      0.67                     0.64

(b)    Diluted earnings per share

       Diluted earnings per share are calculated by dividing consolidated net profit attributable to
       ordinary shareholders of the parent company adjusted based on the dilutive potential
       ordinary shares by the adjusted weighted average number of outstanding ordinary shares
       of the Company. As there were no dilutive potential ordinary shares in 2021 (2020: Nil),
       diluted earnings per share equalled to basic earnings per share.




                                                                                                161
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(56)   Notes to the cash flow statement

(a)    Cash received relating to other operating activities

                                                                    2021            2020

       Government grants                                     551,961,290     291,706,526
       Guarantees from distributors                          113,421,092      32,766,930
       Guarantees for bidding                                 39,786,000      66,942,375
       Input VAT refund                                                -      39,282,451
       Others                                                 31,612,504      15,096,992
                                                             736,780,886     445,795,274

(b)    Cash paid relating to other operating activities

                                                                   2021             2020

       Research and development
         expenses                                            738,436,009    1,019,457,533
       Warranties                                            432,219,371      403,917,538
       Promotion expenses                                    374,879,458      301,960,017
       Advertising expenses                                  222,689,351      309,656,829
       Maintenance expenses                                  129,000,432       82,439,384
       Guarantees                                            123,112,381       68,989,781
       Travelling expenses                                    40,534,753       33,806,899
       Others                                                851,705,417      626,665,927
                                                           2,912,577,172    2,846,893,908

(c)    Cash received relating to other investing activities

                                                                    2021            2020

       Interest from cash at bank                             262,810,420    179,442,715
       Interest from acceptance notes                          10,349,063      5,836,694
       Interest from credit sales                               5,465,709      3,696,018
       Investment income from forward
         exchange settlement                                       79,024      2,381,388
                                                              278,704,216    191,356,815




                                                                                     162
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(56)   Notes to the cash flow statement (Cont’d)

(d)    Cash paid relating to other financing activities

                                                                   2021                  2020

       Payments of lease liabilities                        14,398,829             12,717,923
       Others                                                1,664,464                 33,154
                                                            16,063,293             12,751,077

(57)   Supplementary information to the cash flow statement

(a)    Supplementary information to the cash flow statement

       Reconciliation from net profit to cash flows from operating activities

                                                                      2021               2020

       Net profit                                              574,165,944        550,698,958
       Add: Provision for asset impairment
                (Note 4(46))                                    43,273,452        681,884,784
            Provision for credit impairment
                (Note 4(47))                                   (14,328,162)        79,766,249
            Depreciation of fixed assets (Note
                4(13))                                         887,989,750        984,968,013
            Amortisation of intangible assets
                (Note 4(16))                                   160,287,903        128,255,625
            Depreciation of right-of-use assets
                (Note 4(15))                                    41,536,327         14,748,075
            Increase in provisions(Note 4(30))                  49,934,971        137,381,909
            (Gain)/Losses on disposal of long-
                term assets                                    (5,107,814)        167,780,780
            Financial expenses                               (275,191,314)       (198,304,506)
            Investment income (Note 4(49))                        568,716         (70,178,856)
            Losses /(Gains) on changes in fair
                value (Note 4(50))                              10,638,548           (721,890)
            Increase in deferred tax assets                    (85,151,198)      (303,240,969)
            (Decrease)/Increase in deferred tax
                liabilities                                  (102,994,619)        101,655,183
            Increase in inventories                          (134,813,338)       (325,788,721)
            Decrease/(increase) in operating
                receivables                                    196,013,053      (1,117,125,510)
            Increase in operating payables                     413,370,791       2,866,563,704
       Net cash flows from operating activities              1,760,193,010       3,698,342,828




                                                                                          163
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4       Notes to the consolidated financial statements (Cont’d)

(57)    Supplementary information to the cash flow statement (Cont’d)

(a)    Supplementary information to the cash flow statement(Cont’d)

       Net increase/(decrease) in cash and cash equivalents

                                                                        2021                 2020

       Cash and cash equivalents
       at the end of the year                                  9,569,051,314        11,121,955,129
       Less: Cash and cash equivalents at the
           beginning of the year                              (11,121,955,129)      (8,937,936,658)
       Net increase in cash
       And cash equivalents                                    (1,552,903,815)       2,184,018,471

(b)    Disposal of subsidiaries

                                                                                              2021

       Cash or cash equivalents received in the current
          period for disposal of subsidiaries in the current
          period                                                                       108,000,000
       Less: Cash and cash equivalents held by
               subsidiaries at the date of loss of control                             (23,384,969)
       Net cash received for disposal of subsidiaries                                   84,615,031

       Considerations for disposal of subsidiaries in 2021

       The Power Company                                                              360,000,000

       Net assets of the subsidiaries disposed in 2021 at the date of disposal

       Current assets                                                                 150,917,970
       Non-current assets                                                             423,199,630
       Current liabilities                                                            (26,008,881)
       Non-current liabilities                                                           (242,026)
                                                                                      547,866,693

(c)    Cash and cash equivalents

                                                           31 December 2021      31 December 2020

       Cash at bank available for payment at any
         time                                                  9,569,051,314       11,121,955,129




                                                                                               164
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

 4     Notes to the consolidated financial statements (Cont’d)

(58)   Foreign currency monetary items

                                                                     31 December 2021
                                              Amounts foreign               Translation
                                                  currencies             exchange rate    Amounts in RMB

       Long-term borrowings -
         USD                                               392,905              6.3757          2,505,044

       Other payables -
         USD                                        20,517,258                  6.3757        130,811,883
         EUR                                            33,288                  7.2197            240,329
                                                                                              131,052,212

 5     Changes in the scope of consolidation(Cont’d)

 (1)   Set up of subsidiaries

       In 2021, the Company and Ford Motor Company(“Ford”) subscribed to the capital
       contribution of RMB102,000,000 and 98,000,000 respectively to set up Jiangling Ford
       Automobile Technology (Shanghai) Co., Ltd.("Jiangling Ford(Shanghai)”), the total
       registered capital subscribed amount to RMB200,000,000. The Company holds 51% of the
       shares of Jiangling Ford(Shanghai) and got the control of Jiangling Ford(Shanghai)’s Board
       of Shareholders and Directors. Jiangling Ford(Shanghai) is the subsidiary of the Company.

       As of December 31, 2021, Jiangling Ford(Shanghai) is completed the business registration
       while not in operation yet; the subscribed capital contribution has not been paid by the
       Company and Ford.




                                                                                                     165
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

5     Changes in the scope of consolidation


(2)   Disposal of subsidiaries


(a)   Aggregated information of subsidiaries disposed in the current year:

                                                                                                                                                           Amount transferred
                                                                                                                                                                 to investment
                                                                                                                                    Difference between       income or losses
                                                                                                                                          proceeds from              from other
                                                                                                                                            disposal and       comprehensive
                                                                                                                       Basis for          corresponding     income related to
                              Proceeds           Original                              Method                     judgement of     shares of net assets            initial equity
                                   from     shareholding     Disposal    Remaining          of   Timing of losing      timing of     in the consolidated    investment in the
      Subsidiaries             disposal       proportion    proportion   proportion   disposal            control losing control   financial statements            subsidiaries

                                                                                                                    Acquisition
      The Power                                                                         public                     of control by
        Company            360,000,000             100%          60%          40%       listing 5 November 2021       purchaser             52,133,307                          -

      In 2021, the Company sold 60% of the 100% equity of thePower Companyto Yunnei Group. The control was lost on 5 November 2021, resulting in a
      disposal gain of RMB52,133,307.

(b)   Gains or losses on disposal are as follows:
                                                                                                                                                                       Amount

      Consideration received from the disposal                                                                                                                   360,000,000
      Fair value of the remaining 40% equity at the date of disposal                                                                                             240,000,000
      Less: Share of net assets of the Power Company in the consolidated financial statements                                                                   (547,866,693)

      Other comprehensive income transferred to profit or loss for the current period                                                                                       -
      Investment income from disposal                                                                                                                              52,133,307

      The fair value of the remaining 40% equity on the date of losing control was determined mainly based on the consideration of the disposedequity.



                                                                                                                                                                   166
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

5     Changes in the scope of consolidation(Cont’d)
(2)   Disposal of subsidiaries(Cont’d)
(b)   Gains or losses on disposal are as follows(Cont’d):

      As of December 31, 2021, the Group has received an equity purchase payment of RMB108,000,000 from Yunnei Group, and the remaining receivables
      amount to RMB252,000,000 are recognised in other receivables(Note 4(7)).

6     Equity in other entities

(1)   Equity in subsidiaries

      Structure of the Group

                              Main place of          Place of
      Subsidiaries                business        registration                      Nature of business    Shareholding (%)             Method of acquisition
                                                                                                           Direct        Indirect

                                 Nanchang,        Nanchang,              Retail, wholesale and lease of
      JMCS                          Jiangxi          Jiangxi                               automobiles     100%                 -      Set up by investment
                                                                                                                                      Business combinations
                                  Taiyuan,          Taiyuan,                                                                        involving enterprises not
      JMCH(i)                      Shanxi            Shanxi    Manufacture and sales of automobiles        100%                 -     under common control
                                Shenzhen,         Shenzhen,
      SZFJ                     Guangdong         Guangdong Retail, wholesale and lease of automobiles      100%                 -      Set up by investment
                               Guangzhou,        Guangzhou,
      GZFJ                     Guangdong         Guangdong Retail, wholesale and lease of automobiles      100%                 -      Set up by investment
      Jiangling
      Ford(Shanghai)                                                 Sales of automobiles,technical and
      (Note 5(1))                  Shanghai         Shanghai          business information consultation      51%                -      Set up by investment

      (i)According to the resolution of Board of Directors held from April 30 to May 6, 2021, the Company sold 100% equity of JMCH held by the Company
      through Shanxi Property Rights Exchange at a price of not less than RMB764,069,207. On August 9, 2021, the listing announcement period has expired
      and Volvo Lastvagnar Aktiebolag became the intended transferee for the equity transaction. On August 23, 2021, the Company and Volvo Lastvagnar
      Aktiebolag reached an agreement through negotiation and signed the "Equity Transaction Agreement on 100% Equity of Jiangling Heavy Duty Truck Co.,
      Ltd.". The benchmark price for equity transfer is RMB781,400,000. As of December 31, 2021, the equity transaction is under approval by the relevant
      state departments.

                                                                                                                                                  167
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

6     Equity in other entities(Cont’d)

(2)   Equity in associates

(a)   General information of significant associates

                                                                                           Shareholding (%)
                                                                   Place of registration     Direct      Indirect

      Associates -
      The Power Company(i)                                Taiyuan City, Shanxi Province       40%                  -

      (i)The Power Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly-owned
      subsidiary of the Company. According to the resolution of the Board of Directors in October 2020, the
      Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd. through public listing on the
      Shanghai United Assets and Equity Exchange.

      In January 2021, The Company and Yunnei Group signed the equity transaction contract.

      On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting in
      2021, and approved the change of the Power Company's name to Shanxi Yunnei Power Co., Ltd.,
      the change of shareholders to Yunnei Group and the Company, and the establishment of the board
      of directors, and election of directors. After the completion of the aforementioned changes, Yunnei
      Group has become the parent company and the ultimate parent company of the Power Company.
      The Company holds 40% of the shares of the Power Company and the Power Company becomes an
      associate of the Company.

      The above equity investments are accounted for using the equity method by the Group.

(b)   Summarised financial information for significant associates

                                                                                            31 December 2021
                                                                                           The Power Company

      Current assets                                                                              153,906,457
      Non-current assets                                                                          421,186,131
      Total assets                                                                                575,092,588

      Current liabilities                                                                           35,108,575
      Non-current liabilities                                                                                -
      Total liabilities                                                                             35,108,575

      Minority interests                                                                          215,993,605
      Attributable to shareholders of the parent company                                          323,990,408

      Shares of net assets based on shareholding (i)                                              215,993,605
      Adjustments
      - Unrealised profits arising from internal
          transactions                                                                              (16,004,313)
      - Others (ii)                                                                                  20,853,323

      Carrying amount of equity investments in
       associates                                                                                 220,842,615




                                                                                                               168
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

  6     Equity in other entities (Cont’d)

  (2)   Summarised financial information for significant associates(Cont’d)

                                                                                     From November 5, 2021
                                                                                (date of the equity delivery) to
                                                                                           December 31, 2021
                                                                                          The Power Company

        Revenue                                                                                     4,211,261
        Net loss                                                                                   (7,882,680)
        Other comprehensive
          income                                                                                            -
        Total comprehensive loss                                                                   (7,882,680)

        Dividends received from
          associates by the Group                                                                             -

 (i)    The Group calculated the shares of assets in proportion of the shareholdings and based on the
        amount attributable to the parent company of the associates in their consolidated financial
        statements. The amount in the consolidated financial statements of associates considers the
        impacts of fair value of identifiable assets and liabilities of associates at the time of acquisition and
        the unification of accounting policies. None of the assets involved in transactions between the
        Group and associates contribute to business.

(ii)    Other adjustments were mainly the remeasurement for fair value of remaining equity in the
        consolidated financial statements, which resulted from the loss of control over the original subsidiary
        due to the disposal of part of the equity investment.

  (c)   Summarised information of insignificant associates
                                                                                     2021                  2020

        Aggregated carrying amount of investments                             36,408,640            39,496,548

        Aggregate of the following items in proportion
        Net profit (i)                                                         (3,087,908)           (1,438,009)
        Other comprehensive income (i)                                                  -                     -
        Total comprehensive income                                             (3,087,908)           (1,438,009)

  (i)   The net profit and other comprehensive income have taken into account the impacts of both the
        fair value of the identifiable assets and liabilities upon the acquisition of investment in joint
        ventures and associates and the unification of accounting policies adopted by the joint ventures
        and the associates to those adopted by the Group.

  7     Segment information

        Revenue and profits of the Company mainly arise from production and domestic sales of
        automobiles, and the primary assets of the Group are all located in China. Management of the
        Group assesses the operating performance of the Group as a whole. Therefore, no segment
        report is prepared for the current year.




                                                                                                                  169
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions

(1)   Information of major shareholders

(a)   General information of major shareholders

                        Type of        Place of             Legal                                     Code of
                      enterprise    registration    representative       Nature of business       organisation

                          State-
                         owned       Nanchang,                           Investment and 91360125MA38LU
      JIC             enterprise         China       Qiu Tiangao     asset management             R91F
                        Foreign         United       William Clay       Manufacture and
      Ford            enterprise        States            Ford, Jr. sales of automobiles           N/A

(b)   Registered capital and changes in major shareholders

                             31 December           Increase in the       Decrease in the        31 December
                                    2020              current year          current year               2021

      JIC                 1,000,000,000                              -                   -     1,000,000,000
      Ford               USD 41,000,000                              -                   -    USD 41,000,000

(c)   The percentages of shareholding and voting rights in the Company held by major
      shareholders

                                              31 December 2021                      31 December 2020
                                           Shareholding Voting rights            Shareholding Voting rights
                                                    (%)           (%)                     (%)           (%)

      JIC                                          41.03%        41.03%                41.03%         41.03%
      Ford                                            32%           32%                   32%            32%

(2)   Information of subsidiaries

      The general information and other related information of subsidiaries are set out in Note
      6(1).

(3)   Information of associates

      The information of associates is set out in Note 4(12).




                                                                                                          170
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(4)   Information of other related parties

                                                                             Relationship with the Group

      JMCG                                                                          Shareholder of JIC
      Chongqing Changan Automobile Co., Ltd.                                        Shareholder of JIC
      JMCG Jingma Motors Co., Ltd.                                    Wholly-owned subsidiary of JMCG
      Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.             Wholly-owned subsidiary of JMCG
      Jiangxi Lingrui Recycling Resources Development
        Corporation                                                   Wholly-owned subsidiary of JMCG
      Nanchang Gear Co., Ltd.                                         Wholly-owned subsidiary of JMCG
      Jiangling Material Co., Ltd.                                    Wholly-owned subsidiary of JMCG
      Jiangxi JMCG Industry Co., Ltd.                                 Wholly-owned subsidiary of JMCG
      JMCG Property Management Co.                                    Wholly-owned subsidiary of JMCG
      Jiangxi Jiangling Chassis Co., Ltd.                                   Holding subsidiary of JMCG
      Nanchang JMCG Shishun Logistics Co., Ltd.                             Holding subsidiary of JMCG
      JMCF                                                                  Holding subsidiary of JMCG
      Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.                Holding subsidiary of JMCG
      Nanchang JMCG Xinchen Auto Component Co., Ltd.                        Holding subsidiary of JMCG
      Jingdezhen Shishun Logistics Co., Ltd.                                Holding subsidiary of JMCG
      Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd                     Holding subsidiary of JMCG
      Jiangxi Mingfang Auto Parts Industry Co., Ltd                         Holding subsidiary of JMCG
      Ford Global Technologies,LLC                                     Wholly-owned subsidiary of Ford
      Ford Trading Company LLC                                         Wholly-owned subsidiary of Ford
      Ford Motor (China) Co., Ltd.                                     Wholly-owned subsidiary of Ford
      Ford Motor Research & Engineering (Nanjing) Co., Ltd.            Wholly-owned subsidiary of Ford
      Ford Motor Co. Thailand Ltd.                                     Wholly-owned subsidiary of Ford
      Ford Otomotiv Sanayi A.S.                                               Holding subsidiary of Ford
      Auto Alliance (Thailand) Co., Ltd.                                      Holding subsidiary of Ford
      Ford Vietnam Limited                                                    Holding subsidiary of Ford
      Changan Ford Automobile Co., Ltd.                                             Joint venture of Ford
      Nanchang JMCG Frame Co., Ltd                             Subsidiary under indirect control of JMCG
      Nanchang JMCG Liancheng Auto Component Co., Ltd.         Subsidiary under indirect control of JMCG
      Nanchang Lianda Machinery Co., Ltd.                      Subsidiary under indirect control of JMCG
      Jiangling Aowei Automobile Spare Part Co., Ltd.          Subsidiary under indirect control of JMCG
      Jiangxi JMCG Boya brake system Co., Ltd                  Subsidiary under indirect control of JMCG
      NC.Gear Forging Factory                                  Subsidiary under indirect control of JMCG
      JMCG Jiangxi Engineering Construction Co., Ltd.          Subsidiary under indirect control of JMCG
      Guizhou Wanfu Vehicle Sales & Service Co., Ltd.             Group subsidiary of JIC’s shareholder
      Chongqing Anfu Vehicle Marketing Co., Ltd.                  Group subsidiary of JIC’s shareholder
      Chengdu Wanxing Vehicle Sales & Service Co., Ltd.           Group subsidiary of JIC’s shareholder
      Chongqing Anbo Vehicle Sales Co., Ltd.                      Group subsidiary of JIC’s shareholder
      Yunan Wanfu Vehicle Sales & Service Co., Ltd.               Group subsidiary of JIC’s shareholder
      Dali Wanfu Vehicle Sales & Service Co., Ltd.                Group subsidiary of JIC’s shareholder
      Beijing Beifang Changfu Vehicle Sales & Service Co.,
        Ltd.                                                       Group subsidiary of JIC’s shareholder
      China Changan Group Hefei Investing Co., Ltd.                Group subsidiary of JIC’s shareholder
      Beijing Baiwang Changfu Vehicle Sales & Service
        Co., Ltd.                                                  Group subsidiary of JIC’s shareholder




                                                                                                     171
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(4)   Information of other related parties (Cont'd)

                                                                         Relationship with the Group

      China Changan Group Tianjin Sales Co., Ltd.                 Group subsidiary of JIC’s shareholder
      Guizhou Wanjia Automobile Sales and Service Co. LTD         Group subsidiary of JIC’s shareholder
      Anhui Wanyou Automobile Sales service Co. LTD               Group subsidiary of JIC’s shareholder
      Honghe Wanfu Vehicle Sales & Service Co., Ltd.              Group subsidiary of JIC’s shareholder
      Jiangxi Jiangling Lear Interior System Co., Ltd.                          Joint venture of JMCG
      Jiangxi ISUZU Co., Ltd.                                                   Joint venture of JMCG
      Nanchang Jiangling HuaXiang Auto Components Co., Ltd.                     Joint venture of JMCG
      Nanchang Unistar Electric & Electronics Co., Ltd.                         Joint venture of JMCG
      Nanchang Yinlun Heat-exchanger Co., Ltd.                                  Joint venture of JMCG
      Jiangxi ISUZU Engine Co., Ltd.                                            Joint venture of JMCG
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                                Associate of JMCG
      Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.                       Associate of JMCG
      Jiangxi JMCG Specialty Vehicles Co., Ltd.                                     Associate of JMCG
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.                             Associate of JMCG
      Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. (i)                               Associate of JMCG
      Nanchang Baojiang Steel Processing Distribution Co., Ltd.                     Associate of JMCG
      Magna PT Powertrain (Jiangxi) Co., Ltd.                                       Associate of JMCG
      Faurecia Emissions Control Technologies (Nanchang)
         Co., Ltd.                                                                  Associate of JMCG
      Jiangling Motor Holdings Co., Ltd.                                            Associate of JMCG
      Jiangxi Lingyun Automobile Industry Technology Co.,Ltd                        Associate of JMCG
      Nanchang Hengou Industry Co., Ltd.                                            Associate of JMCG
      Jiujiang Fuwantong Vehicle Co., Ltd.                                          Associate of JMCG
      Jiangxi Fuxiang Vehicle Co., Ltd.                                             Associate of JMCG
      Jiangxi Jiangling Overseas Automobile Sales and
         Service Co., Ltd.                                                          Associate of JMCG
      Jiangxi Zhonglian Intelligent Logistics Co., Ltd.                             Associate of JMCG
      Jiangling Motor Electricity Vehicle Co., Ltd.                                 Associate of JMCG
      Dibao transportation equipment (Nanchang) Co., Ltd                            Associate of JMCG
      Jiangxi Yizhizhihang automobile operation Service Co.,
         Ltd                                                                        Associate of JMCG
      Jiangxi JMCG Motorhome Co.,Ltd.                                               Associate of JMCG
      Ji'an Qingyuan District Yongfuda Vehicle Co., Ltd.                            Associate of JMCG

      (i) In November 2021, Nanchang JMCG Mekra-Lang Vehicle Mirror Co., Ltd. was renamed
      toNanchang JMCG SMR Huaxiang Mirror Co., Ltd.




                                                                                                    172
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions

(a)   Purchase and sales of goods, provision and receipt of services

      Purchase of goods:

                                                                           Nature of related party
      Related parties                                                                transactions           2021          2020

      Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.              Purchase of automobile parts   985,020,418   880,431,974
      Nanchang Baojiang Steel Processing Distribution Co., Ltd.           Purchase of raw materials   967,549,307   963,538,705
      Jiangxi Jiangling Chassis Co., Ltd.                              Purchase of automobile parts   898,433,987   925,826,174
      Magna PT Powertrain (Jiangxi) Co., Ltd.                          Purchase of automobile parts   787,759,240   775,969,464
      Nanchang Jiangling HuaXiang Auto Components Co., Ltd.            Purchase of automobile parts   772,387,021   754,832,828
      Ford                                                             Purchase of automobile parts   627,489,896   652,370,322
      Jiangxi Jiangling Lear Interior System Co., Ltd.                 Purchase of automobile parts   513,132,683   502,651,787
      Faurecia Emissions Control Technologies (Nanchang) Co.,
         Ltd.                                                          Purchase of automobile parts   477,760,140   471,477,165
      Jiangxi Zhonglian Intelligent Logistics Co., Ltd.                Purchase of automobile parts   470,431,786             -
      Nanchang JMCG Liancheng Auto Component Co., Ltd.                 Purchase of automobile parts   416,531,044   404,381,671
      Nanchang JMCG Shishun Logistics Co., Ltd.                        Purchase of automobile parts   366,945,009   402,465,442
      Nanchang Unistar Electric & Electronics Co., Ltd.                Purchase of automobile parts   344,122,534   313,333,686
      Hanon Systems                                                    Purchase of automobile parts   213,213,340   215,580,989
      JMCG                                                             Purchase of automobile parts   179,153,533   175,089,346
      Nanchang Yinlun Heat-exchanger Co., Ltd.                         Purchase of automobile parts   112,831,150    87,043,427
      Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.                      Purchase of automobile parts   105,244,091   113,007,282
      Dibao transportation equipment (Nanchang) Co., Ltd               Purchase of automobile parts    92,353,687             -
      Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.           Purchase of automobile parts    90,812,109    84,594,829
      Nanchang Lianda Machinery Co., Ltd.                              Purchase of automobile parts    72,039,671    81,935,083
      Changan Ford Automobile Co., Ltd.                                Purchase of automobile parts    48,145,204    56,465,853
      Auto Alliance (Thailand) Co., Ltd.                               Purchase of automobile parts    45,310,450    67,659,797




                                                                                                                            173
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Purchase of goods (Cont'd):

      Related parties                                                     Nature of related party transactions           2021                   2020

      Jiangling Motor Holdings Co., Ltd.                                        Purchase of automobile parts       43,636,191              40,171,568
      Jiangxi JMCG Specialty Vehicles Co., Ltd.                                 Purchase of automobile parts       41,659,140              39,104,828
      Jiangxi Lingyun Automobile Industry Technology Co.,Ltd                    Purchase of automobile parts       37,844,846              17,290,556
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.                         Purchase of automobile parts       33,875,299              40,513,016
      Jiangling Material Co., Ltd.                             Purchase of raw materials and automobile parts      32,138,057              25,302,089
      Jiangxi JMCG Boya brake system Co., Ltd                                   Purchase of automobile parts       30,510,070              19,296,893
      Ford Otomotiv Sanayi A.S.                                                 Purchase of automobile parts       22,119,616              39,382,418
      Jiangxi ISUZU Engine Co., Ltd.                                            Purchase of automobile parts       20,171,236              15,163,002
      Jiangling Aowei Automobile Spare Part Co., Ltd.                           Purchase of automobile parts       18,664,870              22,474,184
      Nanchang JMCG Xinchen Auto Component Co., Ltd.                            Purchase of automobile parts       14,697,466              16,576,226
      Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd                         Purchase of automobile parts       14,081,765                       -
      Jiangxi JMCG Industry Co., Ltd.                                           Purchase of automobile parts       10,268,410               1,525,809
      NC.Gear Forging Factory                                                   Purchase of automobile parts        9,391,656               7,485,354
      Jiangxi Lingrui Recycling Resources Development
        Corporation                                                             Purchase of automobile parts         8,484,962             10,063,375
      Ford Motor Co. Thailand Ltd.                                              Purchase of automobile parts         3,939,065              6,388,549
      Jiangxi Mingfang Auto Parts Industry Co., Ltd                             Purchase of automobile parts         3,510,953                      -
      Nanchang Hengou Industry Co., Ltd.                                        Purchase of automobile parts         3,105,865                203,250
      Nanchang Gear Co., Ltd.                                                   Purchase of automobile parts                 -              9,786,797
      Other related parties                                                     Purchase of automobile parts         4,019,558              5,902,367
                                                                                                                 8,938,785,325          8,245,286,105

      The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic
      parts.
           The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties.
           The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation
           between the two parties, and is adjusted regularly.



                                                                                                                                                  174
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Receipt of services:

      Related parties                                           Nature of related party transactions          2021          2020

      Nanchang JMCG Shishun Logistics Co., Ltd.                                   Transportation        308,005,709   327,801,942
                                                          Trademark management fees, technology
      Ford Global Technologies,LLC                                                 development          278,546,988   248,378,764
      JMCG Jiangxi Engineering Construction Co.,                        Engineering construction
         Ltd.                                                                                           202,783,377   298,581,804
      Ford                                                  Technical services and personnel costs      110,282,579   154,911,420
      Jiangxi JMCG Industry Co., Ltd.                                                         Meals      22,676,641    27,037,730
      Changan Ford Automobile Co., Ltd.                                Service fee, labor costs, etc.    21,913,168    63,254,852
                                                                  Technical services and technical
      Ford Otomotiv Sanayi A.S.                                     development, personnel costs         18,265,089    44,011,234
      Ford Motor (China) Co., Ltd.                                            Personnel costs, etc.      16,127,484    11,859,943
      Jiangxi Zhonglian Intelligent Logistics Co., Ltd.         Transportation fee, rental fee, etc.     12,343,777     3,078,267
      Jiangling Motor Holdings Co., Ltd.                       Labor fee, rental fee, personnel fee      10,097,592     6,847,601
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.              Agency fee, advertising fee, etc.       9,680,267     9,455,440
      Ford Motor Research & Engineering (Nanjing)                                   Personnel costs
        Co., Ltd.                                                                                         9,082,057    10,025,252
      JMCG Property Management Co.                                              Property fees, etc.       3,352,585     2,280,889
      Magna PT Powertrain (Jiangxi) Co., Ltd.(i)                    Design fee, experimental costs        2,440,812     8,721,427
      Nanchang Jiangling HuaXiang Auto                              Design fee, experimental costs
        Components Co., Ltd.                                                                              2,175,305     2,425,848
      Chongqing Changan Automobile Co., Ltd.                                        Personnel costs       1,680,278     1,781,095
      Jiangxi JMCG Specialty Vehicles Sales                                              Promotion
        Corporation, Ltd.                                                                                 1,509,434             -
      Jiangxi JMCG Specialty Vehicles Co., Ltd.                                         Promotion         1,509,221     6,748,500
      Jiangxi ISUZU Engine Co., Ltd.                                             Experimental costs       1,491,671             -




                                                                                                                              175
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Receipt of services (Cont’d):

                                                                  Nature of related party
      Related parties                                                        transactions                            2021           2020

      JMCG                                                        Rental expenses, etc.                       1,403,765           722,094
      Chongqing Anfu Vehicle Marketing Co., Ltd.                              Warranty                        1,153,740            87,448
      Dali Wanfu Vehicle Sales & Service Co., Ltd.                Warranty, promotions                        1,060,388           302,091
      Guizhou Wanfu Vehicle Sales & Service Co., Ltd.                         Warranty                        1,022,766           204,416
      Other related parties                                                                                   5,697,181         9,817,366
                                                                                                          1,044,301,874     1,238,335,423

      The Group’s pricing on services received from related parties is based on the agreed price by both parties.




                                                                                                                                      176
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Sales of goods:

      Related parties                                     Nature of related party transactions             2021             2020

                                                           Sales of vehicles and accessories,
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                              utilities, etc.   3,009,201,649   1,503,468,690
      Jiangxi JMCG Specialty Vehicles Sales
          Corporation, Ltd.                                                   Sale of vehicles       424,832,553     390,031,512
      Jiangxi Jiangling Special Purpose Vehicle Co.,       Sales of vehicles and accessories,
          Ltd.                                                                         utilities     108,430,877     133,908,645
      Jiangxi Lingrui Recycling Resources
          Development Corporation                                    Waste materials, utilities       91,363,165      85,072,002
      Jiangxi Jiangling Chassis Co., Ltd.                               Sales of accessories          71,371,856      68,495,760
      Jiangxi JMCG Specialty Vehicles Co., Ltd.            Sales of vehicles and accessories          61,352,599     135,016,982
      JMCG Jingma Motors Co., Ltd.                         Sales of vehicles and accessories          56,901,153      37,537,654
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.    Sales of vehicles and accessories          53,876,378      41,208,636
      Chengdu Wanxing Vehicle Sales & Service Co.,
          Ltd.                                             Sales of vehicles and accessories          47,840,275       8,760,743
      Chongqing Anfu Vehicle Marketing Co., Ltd.           Sales of vehicles and accessories          46,641,322      10,872,595
      Guizhou Wanfu Vehicle Sales & Service Co., Ltd.      Sales of vehicles and accessories          45,806,320      20,243,696
      Dali Wanfu Vehicle Sales & Service Co., Ltd.         Sales of vehicles and accessories          39,401,634      49,648,874
      Chongqing Anbo Vehicle Sales Co., Ltd.               Sales of vehicles and accessories          37,899,577      12,999,033
      Jiangxi Zhonglian Intelligent Logistics Co., Ltd.                 Sales of accessories          35,851,242               -
      China Changan Group Tianjin Sales Co., Ltd.          Sales of vehicles and accessories          26,458,070         221,770
      Beijing Beifang Changfu Vehicle Sales &
          Service Co., Ltd.                                Sales of vehicles and accessories          12,749,059      21,171,011
      Nanchang JMCG Shishun Logistics Co., Ltd.            Sales of vehicles and accessories          12,470,469      33,591,930
      Guizhou Wanjia Automobile Sales and Service
          Co. LTD                                          Sales of vehicles and accessories          10,893,900                -
      Nanchang JMCG SMR Huaxiang Mirror Co.,
          Ltd.                                                            Sales of accessories        10,779,022         871,742
      Nanchang Hengou Industry Co., Ltd.                                  Sales of accessories         9,982,170       8,496,187




                                                                                                                              177
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Sales of goods (Cont'd):

      Related parties                                           Nature of related party transactions           2021        2020

      Nanchang JMCG Liancheng Auto Component
           Co., Ltd.                                                           Sales of accessories       8,931,828   36,734,587
      Jiujiang Fuwantong Vehicle Co., Ltd.                        Sales of vehicles and accessories       7,122,010   23,066,338
      Jiangxi Jiangling Lear Interior System Co., Ltd.                         Sales of accessories       5,759,013    4,819,843
      Nanchang Jiangling HuaXiang Auto
          Components Co., Ltd.                                                 Sales of accessories       3,382,979    6,300,596
                                                            Sales of accessories, utilities and waste
      Jiangxi JMCG Industry Co., Ltd.                                                   materials, etc.   3,129,560    3,155,702
      Jiangxi ISUZU Co., Ltd.                                                  Sales of accessories       2,910,489    4,581,683
      Nanchang Lianda Machinery Co., Ltd.                                      Sales of accessories       2,332,429    1,748,053
      Magna PT Powertrain (Jiangxi) Co., Ltd.(i)                               Sales of accessories       1,850,790      451,200
      Anhui Wanyou Automobile Sales Service Co.
           LTD                                                    Sales of vehicles and accessories       1,574,031            -
      Jiangxi Yizhizhihang automobile operation
           Service Co., Ltd                                                         Sale of vehicles      1,302,655            -
      Yunan Wanfu Vehicle Sales & Service Co., Ltd.               Sales of vehicles and accessories         493,926    6,550,243
      Beijing Baiwang Changfu Vehicle Sales &
           Service Co., Ltd.                                      Sales of vehicles and accessories        429,324     4,029,396
      Jiangxi Jiangling Overseas Automobile Sales
           and Service Co., Ltd.                                  Sales of vehicles and accessories        389,202     3,451,607
      Ji'an Qingyuan District Yongfuda Vehicle Co.,
           Ltd.                                                  Sales of vehicles and accessories         128,243     2,948,093
      China Changan Group Hefei Investing Co., Ltd.              Sales of vehicles and accessories         111,195    14,027,598
      Jiangxi Fuxiang Vehicle Co., Ltd.                      Sales of vehicles, accessories, utilities     105,495     4,518,451
      Honghe Wanfu Vehicle Sales & Service Co., Ltd.             Sales of vehicles and accessories          83,549     2,204,686




                                                                                                                            178
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(a)   Purchase and sales of goods, provision and receipt of services (Cont'd)

      Sales of goods (Cont'd):

                                                                 Nature of related party
      Related parties                                                       transactions                            2021            2020

      Nanchang JMCG Frame Co., Ltd                                 Sales of accessories                                 -       9,682,940
      Jingdezhen Shishun Logistics Co., Ltd.                           Sale of vehicles                                 -       2,389,380
      Other related parties                                                                                     2,297,881       6,370,413
                                                                                                            4,256,437,889   2,698,648,271

      The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.




                                                                                                                                     179
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

8      Related parties and related party transactions (Cont'd)

(5)    Related party transactions (Cont’d)

(b)    Leases

(i)    The lease income recognised in the current year with the Group as the lessor:

       Name of the lessee                                     Type of the leased asset         2021     2020

       Jiangling Material Co., Ltd.                                           Buildings       60,550        -
       Jiangxi ISUZU Co., Ltd.                                                Buildings       29,708   53,411
                                                                                              90,258   53,411

(ii)   Increase of right-of-use assets in the current year with the Group as the lessee

       Name of the lessor                                     Type of the leased asset          2021    2020

       Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                         Buildings   16,852,582       -
       JMCG                                                                   Buildings      182,766       -
                                                                                          17,035,348       -




                                                                                                          180
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

8       Related parties and related party transactions (Cont'd)

(5)     Related party transactions (Cont’d)

(b)     Leases (Cont'd)

(iii)   Interest expenses on lease liabilities in the current year with the Group as the lessee:

                                                                                                            2021                       2020

        Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                                                   538,978                     50,258
        JMCG                                                                                             417,937                    568,210
                                                                                                         956,915                    618,468

(c)     Guarantee received

                                                            Guaranteed
        Guarantor                                              amount             Starting date        Ending date     Fully performed or not

        JMCF                                                 2,505,044           5 March 2001      30 October 2029        Not fully performed

        In 2021, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD2,282,123. As at 31
        December 2021, JMCF provided borrowing guarantee to the bank borrowing of USD392,905, equivalent to RMB2,505,044 (31 December 2020:
        USD458,389, equivalent to RMB2,990,943) for the Group.




                                                                                                                                         181
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(d)   Transfer of assets

                                                               Nature of related party
      Related parties                                                    transactions                            2021         2020

      Jiangxi Lingrui Recycling Resources
        Development Corporation                                 Sales of fixed assets                      19,069,865             -
      Jiangxi JMCG Industry Co., Ltd.                           Sales of fixed assets                               -         1,783
                                                                                                           19,069,865         1,783

      The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties.




                                                                                                                                182
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(e)   Purchase of assets

                                                               Nature of related party
      Related parties                                                    transactions                            2021               2020

      Jiangxi Jiangling Special Purpose Vehicle Co.,
         Ltd.                                               Purchase of fixed assets                        4,946,744           3,629,699
      Magna PT Powertrain (Jiangxi) Co., Ltd.               Purchase of fixed assets                        2,480,000           8,120,000
      Nanchang Jiangling HuaXiang Auto
         Components Co., Ltd.                               Purchase of fixed assets                          444,600                   -
      Jiangling Motor Holdings Co., Ltd.                    Purchase of fixed assets                                -             337,660
                                                                                                            7,871,344          12,087,359

      The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.

(f)   Provision of technology sharing

                                                               Nature of related party
      Related parties                                                    transactions                            2021               2020

      Ford Motor Research & Engineering (Nanjing)          Engineering and technical
        Co., Ltd.                                                            service                       66,669,000          83,687,640
      Ford Vietnam Limited                                        Technical service                        12,780,000          30,623,000
      Ford                                                        Technical service                        12,450,000          17,988,000
      Jiangxi ISUZU Co., Ltd.                                     Technical service                         6,390,000                   -
      Ford Trading Company, LLC                                   Technical service                         4,795,000                   -
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.              Technical service                           480,000           1,750,000
      Ford Otomotiv Sanayi A.S.                                   Technical service                           340,000                   -
                                                                                                         103,904,000          134,048,640
      The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties.




                                                                                                                                      183
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(5)   Related party transactions (Cont’d)

(g)   Purchase of CAFC credit and NEV credit

      Related parties                                            2021                   2020

      Jiangling Motor Holdings Co., Ltd.                  177,528,302                     -
      Jiangling Motor Electricity Vehicle Co., Ltd.        11,186,318            23,304,481
                                                          188,714,620            23,304,481

      The Group’s pricing on CAFC credit and NEV credit purchased from related parties is based
      on the agreed price by both parties.

(h)   Remuneration of key management

                                                                 2021                   2020

      Remuneration of key management                       17,375,367             12,148,337

(i)   Interest income

                                                                 2021                   2020

      JMCF                                                 17,076,393             18,598,836

      Cash at bank of the Group deposited with JMCF was calculated based on the bank
      annual interest rate for RMB deposit of 1.725% to 2.25% over the same period (2020:
      0.455% to 3.30%).

(j)   Interest expenses

                                                                 2021                   2020

      Jiangxi Zhonglian Intelligent Logistics
        Co., Ltd.                                             120,000                120,000
      Nanchang JMCG Shishun Logistics Co.,
        Ltd.                                                   30,000                 30,000
                                                              150,000                150,000




                                                                                          184
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(6)   Receivables from and payables to related parties

      Receivables from related parties:

                                                                   31 December 2021                      31 December 2020
                                                                               Provision for bad                     Provision for bad
                                                                   Amount                  debts         Amount                  debts
      Accounts receivable

      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.       1,055,206,739              (2,469,956)   1,081,916,003           (2,368,381)
      Jiangxi JMCG Specialty Vehicles Sales
        Corporation, Ltd.                                       70,709,214               (56,476)     22,613,476               (47,488)
      JMCG Jingma Motors Co., Ltd.                              16,858,567               (59,595)      4,953,579               (14,861)
      Jiangxi JMCG Specialty Vehicles Co., Ltd.                 10,889,510                (9,689)      9,705,710               (20,997)
      Jiangxi Jiangling Special Purpose Vehicle Co.,
        Ltd.                                                     4,511,078                (7,003)      1,539,411                (4,618)
      Jiangxi Zhonglian Intelligent Logistics Co., Ltd.          4,113,754               (14,542)              -                      -
      Nanchang JMCG SMR Huaxiang Mirror Co.,
        Ltd.                                                     3,253,009               (11,499)        943,109                (2,829)
      Nanchang JMCG Liancheng Auto Component
        Co., Ltd.                                                1,655,446                (5,852)      8,906,500               (26,720)
      Jiangxi Jiangling Lear Interior System Co., Ltd.           1,430,746                (5,058)      1,192,642                (3,578)
      Nanchang Hengou Industry Co., Ltd.                         1,189,979                (4,207)        394,513                (1,184)
      Magna PT Powertrain (Jiangxi) Co., Ltd.(i)                 1,102,564                (3,898)        196,507                  (590)
      Nanchang JMCG Frame Co., Ltd                               1,094,172                (3,868)     11,499,163               (34,497)
      Ford Vietnam Limited                                               -                      -     19,500,000               (97,500)
      Ford                                                               -                      -      6,304,000               (31,520)
      Jiangxi Jiangling Chassis Co., Ltd.                                -                      -      4,786,897               (14,361)
      Nanchang JMCG Shishun Logistics Co., Ltd.                          -                      -      4,267,697               (12,803)
      Jiangxi Jiangling Group Special Vehicle Co.,
        Ltd.                                                           -                        -       3,340,025               (7,014)
      Other related parties                                    2,287,518                  (8,087)       3,813,944              (13,215)
                                                           1,174,302,296              (2,659,730)   1,185,873,176           (2,702,156)



                                                                                                                                    185
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(6)   Receivables from and payables to related parties (Cont’d)

      Receivables from related parties (Cont'd):

                                                                     31 December 2021                    31 December 2020
                                                                                  Provision for bad                   Provision for bad
                                                                     Amount                   debts      Amount                   debts
      Other receivables

      Jiangling Motor Electricity Vehicle Co., Ltd.                31,266,512              (93,800)            -                      -
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.               25,000,000              (75,000)   35,201,661              (105,605)
      Jiangxi Lingrui Recycling Resources
         Development Corporation                                   17,668,457              (53,005)            -                      -
      Other related parties                                           121,141                 (364)        6,644                   (20)
                                                                   74,056,110             (222,169)   35,208,305              (105,625)




                                                                                                                                    186
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(6)   Receivables from and payables to related parties (Cont’d)

      Receivables from related parties (Cont'd):

                                                                         31 December     31 December
                                                                                2021            2020

      Advances to           Nanchang Baojiang Steel
       suppliers             Processing Distribution Co., Ltd.            399,394,083     355,529,951

      Financing
        receivables         JMCG Jingma Motors Co., Ltd.                    2,357,022       5,172,364
                            Nanchang JMCG Frame Co., Ltd                    2,000,000               -
                                                                            4,357,022       5,172,364

      Prepayment for        Jiangxi Jiangling Motors Imp. & Exp.
        projects               Co., Ltd.                                             -      1,239,661

      Cash at bank          JMCF                                         1,059,580,980   1,231,825,734

      In 2021, the sales              amount       settled   by   JMCF     wasRMB21,188,639,037(2020:
      RMB21,682,764,117).




                                                                                                  187
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

8      Related parties and related party transactions (Cont'd)

(6)   Receivables from and payables to related parties (Cont’d)

       Payables to related parties:

                                                                         31 December     31 December
                                                                                2021            2020

       Accounts      Nanchang Jiangling HuaXiang Auto
         payable       Components Co., Ltd.                               476,070,536     600,620,464
                     Jiangxi Jiangling Special Purpose Vehicle Co.,
                       Ltd.                                               405,329,856     450,355,413
                     Jiangxi Jiangling Chassis Co., Ltd.                  314,370,464     381,961,882
                     Jiangxi Jiangling Lear Interior System Co., Ltd.     251,892,398     244,023,570
                     Magna PT Powertrain (Jiangxi) Co., Ltd.(i)           224,125,697     257,203,673
                     Jiangxi Zhonglian Intelligent Logistics Co., Ltd.    188,395,117         343,739
                     Faurecia Emissions Control Technologies
                        (Nanchang) Co., Ltd.                              181,015,647     140,584,875
                     Nanchang JMCG Liancheng Auto Component
                       Co., Ltd.                                          162,044,531     177,586,249
                     Nanchang Unistar Electric & Electronics Co.,
                         Ltd.                                             118,507,723     107,067,804
                     Ford                                                 112,369,950     165,212,418
                     Nanchang JMCG Shishun Logistics Co., Ltd.             99,211,184     112,968,126
                     JMCG                                                  68,694,580     108,139,686
                     Nanchang JMCG SMR Huaxiang Mirror Co.,
                         Ltd.                                              61,887,021      84,273,999
                     Hanon Systems                                         51,492,058     119,546,495
                     Jiangxi JMCG Specialty Vehicles Co., Ltd.             46,385,916      44,095,229
                     Nanchang Yinlun Heat-exchanger Co., Ltd.              38,501,505      39,863,083
                     Jiangxi Lingge Non-ferrous Metal Die-casting
                        Co., Ltd.                                          38,128,081      33,997,041
                     Dibao transportation equipment (Nanchang)
                       Co., Ltd                                            29,226,123               -
                     Nanchang Lianda Machinery Co., Ltd.                   19,653,964      31,713,777
                     Jiangxi Jiangling Group Special Vehicle Co.,
                       Ltd.                                                16,813,329      17,656,588
                     Jiangling Motor Holdings Co., Ltd.                    15,315,388      11,635,750
                     Jiangxi JMCG Boya brake system Co., Ltd               14,172,332       8,797,919
                     Changan Ford Automobile Co., Ltd.                     10,017,548       7,408,214
                     Jiangxi Lingyun Automobile Industry
                       Technology Co.,Ltd                                   9,533,560       5,184,778
                     Jiangxi ISUZU Engine Co., Ltd.                         7,167,608         441,696
                     Nanchang JMCG Xinchen Auto Component
                        Co., Ltd.                                           6,542,386       5,721,038
                     Jiangxi Lingrui Recycling Resources
                        Development Corporation                             5,669,023       4,814,171
                     Jiangxi Jiangling group Fuxin Auto Parts Co.,
                        Ltd                                                 5,126,842                  -
                     Jiangling Aowei Automobile Spare Part Co.,
                         Ltd.                                                4,402,913      11,243,037
                     Auto Alliance (Thailand) Co., Ltd.                      3,986,161       4,294,750
                     NC.Gear Forging Factory                                 3,008,017         921,767
                     Jiangxi JMCG Industry Co., Ltd.                         2,995,670       1,044,850
                     Ford Otomotiv Sanayi A.S.                               2,224,130       4,727,288
                     Jiangling Material Co., Ltd.                            2,143,099       1,955,537
                     Jiangxi Mingfang Auto Parts Industry Co., Ltd           1,920,999               -
                     Nanchang Hengou Industry Co., Ltd.                      1,537,861               -
                     Nanchang Gear Co., Ltd.                                    90,024       3,414,942
                     Other related parties                                   2,100,155       1,810,372
                                                                         3,002,069,396   3,190,630,220



                                                                                                 188
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(6)   Receivables from and payables to related parties (Cont’d)

      Payables to related parties (Cont'd):

                                                                           31 December   31 December
                                                                                  2021          2020

      Other             JMCG Jiangxi Engineering Construction Co.,
        payables          Ltd.                                             112,247,451     7,117,653
                        Ford Global Technologies,LLC                        65,331,412    18,050,765
                        Ford                                                61,135,567    48,814,942
                        Jiangxi JMCG Specialty Vehicles Sales
                          Corporation, Ltd.                                 24,120,434    23,287,853
                        Jiangxi Jiangling Group Special Vehicle Co.,
                          Ltd.                                              11,035,849    10,269,987
                        Magna PT Powertrain (Jiangxi) Co., Ltd.(i)           8,783,237    13,139,275
                        Nanchang JMCG Shishun Logistics Co., Ltd.            7,302,639     8,370,326
                        Jiangxi Jiangling Special Purpose Vehicle Co.,
                          Ltd.                                               5,719,260     1,588,791
                        Ford Motor (China) Co., Ltd.                         4,670,514     2,570,952
                        Jiangxi JMCG Specialty Vehicles Co., Ltd.            4,590,958     3,682,741
                        Ford Otomotiv Sanayi A.S.                            4,578,953     5,265,976
                        Faurecia Emissions Control Technologies
                          (Nanchang) Co., Ltd.                               4,111,935     3,285,350
                        Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.       3,209,698     1,456,956
                        Nanchang Baojiang Steel Processing
                          Distribution Co., Ltd.                             2,722,060     1,944,877
                        Ford Motor Research & Engineering (Nanjing)
                          Co., Ltd.                                          2,229,384     1,345,255
                        Jiangxi JMCG Industry Co., Ltd.                      1,753,181     3,726,567
                        Chongqing Changan Automobile Co., Ltd.               1,680,278     1,781,095
                        Hanon Systems                                        1,475,000     1,475,000
                        Nanchang Jiangling HuaXiang Auto
                          Components Co., Ltd.                               1,438,427     2,481,859
                        JMCG Property Management Co.                         1,265,900       995,400
                        Jiangxi Jiangling Lear Interior System Co., Ltd.     1,007,000     1,207,000
                        Nanchang Unistar Electric & Electronics Co.,
                          Ltd.                                                 966,018       800,915
                        Jiangxi JMCG Motorhome Co.,Ltd.                        737,264       481,132
                        China Changan Group Tianjin Sales Co., Ltd.            700,000             -
                        Jiangxi ISUZU Engine Co., Ltd.                         596,744             -
                        Nanchang Yinlun Heat-exchanger Co., Ltd.               515,028       380,006
                        Changan Ford Automobile Co., Ltd.                      120,136    18,503,441
                        JMCG                                                    23,833     2,313,728
                        Other related parties                                1,828,155     4,423,066
                                                                           335,896,315   188,760,908

      Contract          Jiangxi Jiangling Group Special Vehicle Co.,
       liabilities        Ltd.                                               1,790,486             -
                        Other related parties                                2,793,328     2,191,137
                                                                             4,583,814     2,191,137

      Lease
        liabilities     Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.      17,391,559             -
                        JMCG                                                 7,027,932     9,033,918
                                                                            24,419,491     9,033,918




                                                                                               189
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

8     Related parties and related party transactions (Cont'd)

(7)   Commitments in relation to related parties

      Capital commitments                                   31 December 2021    31 December 2020

      JMCG Jiangxi Engineering
        Construction Co., Ltd.                                   270,278,911           377,223,784

      Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).

9     Contingencies

      As at 31 December 2021, the Group had no contingencies that needed to be disclosedin
      the notes to the financial statements.

10    Commitments

      Capital expenditure commitments

      Capital expenditures contracted for by the Group but are not yet necessary to be recognised
      on the balance sheet as at the balance sheet date were as follows:

                                                          31 December 2021      31 December 2020

      Buildings, machinery and equipment                     1,040,550,000           1,127,750,000




                                                                                              190
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

11    Subsequent events

(1)   Profit distribution

      According to the resolution at the Board of Directors’ meeting on March28th, 2022, the
      Board of Directors proposed that the Company distribute cash dividends of RMB0.266 per
      share to all shareholders. Based on the issued shares of 863,214,000, the proposed cash
      dividends totalled RMB229,614,924.

12    Financial instrument and risk

      The Group's activities expose it to a variety of financial risks, which mainly comprise
      market risk (primarily including foreign exchange risk and interest rate risk), credit risk and
      liquidity risk. The above financial risks and the Group's risk management policies to
      mitigate the risks are as follows:

      The Board of Directors is responsible for planning and establishing the Group's risk
      management framework, formulating the Group's risk management policies and related
      guidelines, and supervising the implementation of risk management measures. The Group
      has established risk management policies to identify and analyse the risks faced by the
      Group. These risk management policies specify the risks such as market risk, credit risk
      and liquidity risk management. The Group regularly evaluates the market environment and
      changes in the Group's operating activities to determine whether to update the risk
      management policies and systems or not. The Group’s risk management is carried out by
      the Risk Management Committee under policies approved by the Board of Directors. The
      Risk Management Committee works closely with other business departments of the Group
      to identify, evaluate and avoid relevant risks. The internal audit department of the Group
      conducts periodical audit to the controls and procedures for risk management and reports
      the audit results to the Risk Management Committee of the Group.

(1)   Market risk

(a)   Foreign exchange risk

      The Group’s major operational activities are carried out in Mainland China and a majority
      of the transactions are denominated in RMB. The Group is exposed to foreign exchange
      risk arising from the recognised assets and liabilities, and future transactions denominated
      in foreign currencies, primarily with respect to USD. The Group monitors the amount of
      assets and liabilities, and transactions denominated in foreign currencies to minimise the
      foreign exchange risk. Therefore, the Group signed forward exchange contracts to
      mitigate the foreign exchange risk (Note 4(20)).

      The financial assets and financial liabilities denominated in foreign currencies, which were
      held by the Group and the subsidiaries of the Group, were expressed in RMB As at 31
      December 2021 and 31 December 2020 as follows:

                                                                  31 December 2021
                                                           USD                EUR               Total

      Financial liabilities
         denominated in foreign
         currency -
      Derivative financial liabilities               10,704,619                  -      10,704,619
      Current portion of long-term
         borrowings                                     417,507                  -         417,507
      Long-term borrowings                            2,087,537                  -       2,087,537
      Other payables                                130,811,883            240,329     131,052,212
                                                    144,021,546            240,329     144,261,875


                                                                                                 191
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

12    Financial instrument and risk (Cont’d)

(1)   Market risk (Cont’d)

(a)   Foreign exchange risk (Cont’d)

                                                                  31 December 2020
                                                              USD              EUR            Total

      Financial liabilities
         denominated in foreign
         currency -
      Derivative financial liabilities                    3,716,727               -      3,716,727
      Current portion of long-term
         borrowings                                     427,277                   -       427,277
      Long-term borrowings                            2,563,666                   -     2,563,666
      Other payables                                 70,936,756           1,469,682    72,406,438
                                                     77,644,426           1,469,682    79,114,108

      As at 31 December 2021, for the financial assets and liabilities dominated in foreign
      currencies, if the RMB had strengthened/weakened by 10% against the USD while all
      other variables had been held constant, the Group’s net profit would have been
      approximately RMB10,422,046(31 December 2020: approximately RMB 6,599,776)
      higher/lower; if the RMB had strengthened/weakened by 10% against the EUR while all
      other variables had been held constant, the Group’s net profit would have been
      approximately RMB20,428(31 December 2020: approximately RMB142,961)higher/lower.

(b)   Interest rate risk

      The Group's interest rate risk mainly arises from interest-bearing debts such as short-term
      borrowings and long-term borrowings. The financial liabilities of floating interest rate
      expose the Group to cash flow interest rate risk, and the financial liabilities of fixed
      interest rate expose the Group to fair value interest rate risk. The Group determines the
      relative proportions of fixed-rate and floating-rate contracts based on the prevailing
      market environment. As at 31 December 2021, the Group’s short-term borrowings of
      RMB300,000,000(31 December 2020: RMB500,000,000) were fixed-rate borrowings, and
      long-term borrowings of USD392,905 (31 December 2020: USD458,389) were fixed-rate
      contracts, therefore there was no significant cash flow interest rate risk.

      As at 31 December 2021 and 31 December 2020, there was no significant difference
      between the fair value and the carrying amount of the Group’s bank borrowings with fixed
      rates.

(2)   Credit risk

      The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable,
      accounts receivable, financing receivables, other receivables, long-term receivables and
      derivative financial assets at fair value through profit or loss that are not included in the
      impairment assessment scope. The carrying amount of the Group’s financial assets
      reflects its maximum credit exposure on the balance sheet date.

      The Group expects that there is no significant credit risk associated with cash at bank and
      on hand since they are deposited at state-owned banks and other medium or large
      sizebanks with good reputation and high credit rating. The Group does not expect that
      there will be significant losses from non-performance by these banks.




                                                                                                192
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

12    Financial instrument and risk (Cont’d)

(2)   Credit risk (Cont’d)

      In addition, the Group has policies to limit the credit exposure on notes receivable, accounts
      receivable, financing receivables, other receivables and long-term receivables. The Group
      assesses the credit quality of and sets credit limits on its customers by taking into account
      their financial position, the availability of guarantee from third parties, their credit history and
      other factors such as current market conditions. The credit history of the customers is
      regularly monitored by the Group. In respect of customers with a poor credit history, the
      Group will use written payment reminders, or shorten or cancel credit periods, to ensure the
      overall credit risk of the Group is limited to a controllable extent.

      As at 31 December 2021, the Group had no significant collateral or other credit
      enhancements held as a result of the debtor’s mortgage (31 December 2020: Nil).

(3)   Liquidity risk

      Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
      Group. The Group monitors rolling forecasts of the Group's short-term and long-term
      liquidity requirements to ensure it has sufficient cash and securities that are readily
      convertible to cash to meet operational needs, while maintaining sufficient headroom on its
      undrawn committed borrowing facilities from major financial institutions so that the Group
      does not breach borrowing limits or covenants on any of its borrowing facilities to meet the
      short-term and long-term liquidity requirements.

      The financial liabilities of the Group at the balance sheet date are analysed by their maturity
      date below at their undiscounted contractual cash flows:

                                                                 31 December 2021
                                Within 1 year     1 to 2 years       2 to 5 years   Over 5 years            Total

      Short-term
         borrowings             300,000,000                 -                -                -      300,000,000
      Derivative
         financial
         liabilities              10,704,619               -                  -               -       10,704,619
      Accounts payable         9,702,584,830               -                  -               -    9,702,584,830
      Other payables           5,253,800,805               -                  -               -    5,253,800,805
      Lease liabilities           90,602,618      80,927,296        203,090,850               -      374,620,764
      Long-term
         borrowings                  453,517         447,254         1,304,189         422,205         2,627,165

                              15,358,146,389      81,374,550        204,395,039        422,205     15,644,338,183




                                                                                                          193
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

12     Financial instrument and risk (Cont’d)

(3)    Liquidity risk (Cont’d)

       The financial liabilities of the Group at the balance sheet date are analysed by their maturity
       date below at their undiscounted contractual cash flows (Cont'd):

                                                                   31 December 2020
                                    Within 1              1 to 2           2 to 5      Over 5
                                       year               years            years        years            Total

       Short-term
          borrowings           502,173,333                    -                -            -     502,173,333
       Derivative
          financial
          liabilities              3,716,727                  -                -            -        3,716,727
       Accounts
          payable            10,026,215,877                   -                -            -   10,026,215,877
       Other
         payables             4,153,849,625                   -                -            -    4,153,849,625
       Lease
          liabilities             11,683,625       11,419,366          8,646,930            -      31,749,921
       Long-term
          borrowings                470,539           464,130          1,353,936      870,579        3,159,184
                             14,698,109,726        11,883,496         10,000,866      870,579   14,720,864,667

(i)   As at 31 December 2021,the Group did not have lease contracts that had been signed but
      had not yet been implemented.




                                                                                                      194
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

13    Fair value estimates

      The level in which fair value measurement is categorised is determined by the level of the
      fair value hierarchy of the lowest level input that is significant to the entire fair value
      measurement:

      Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

      Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
      asset or liability, either directly or indirectly.

      Level 3: Unobservable inputs for the asset or liability.

(1)   Assets and liabilities measured at fair value on a recurring basis

      As at 31 December 2021, the assets measured at fair value on a recurring basis by the
      above three levels were analysed below:

                                                Level 1           Level 2        Level 3           Total

      Financial assets -
      Financial assets held for
         trading -
        Structural deposits                               -   100,242,329             -    100,242,329
      Financing receivables -
        Notes receivable                                  -             -   201,511,670    201,511,670
                                                          -   100,242,329   201,511,670    301,753,999

      As at 31 December 2021, the liabilities measured at fair value on a recurring basis by the
      above three levels were analysed below:

                                                Level 1           Level 2       Level 3            Total

      Financial liabilities -
        Derivative financial
           liabilities -
           Forward foreign
              exchange contracts                          -    10,704,619             -     10,704,619




                                                                                                   195
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

13    Fair value estimates (Cont’d)

(1)   Assets and liabilities measured at fair value on a recurring basis (Cont'd)

      As at 31 December 2020, the assets measured at fair value on a recurring basis by the
      above three levels were analysed below:

                                               Level 1           Level 2      Level 3              Total

      Financial assets -
      Financial assets held for
        trading -
        Structural deposits                               -   803,892,985              -    803,892,985
      Financing receivables -
        Notes receivable                                  -             - 815,583,669        815,583,669
                                                          -   803,892,985 815,583,669      1,619,476,654

      As at 31 December 2020, the liabilities measured at fair value on a recurring basis by the
      above three levels were analysed below:

                                               Level 1           Level 2     Level 3              Total

      Financial liabilities -
        Derivative financial
           liabilities -
           Forward foreign
              exchange contracts                      -        3,716,727           -          3,716,727

      The Group takes the date on which events causing the transfers between the levels take
      place as the timing specific for recognising the transfers. There was no transfer between
      Level 1 and Level 2 in 2021.

      The fair value of financial instruments traded in an active market is determined at the
      quoted market price; and the fair value of those not traded in an active market is
      determined by the Group using valuation technique. The valuation models used mainly
      comprise discounted cash flow model and market comparable corporate model. The inputs
      of valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate,
      etc.




                                                                                                     196
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

13    Fair value estimates (Cont’d)

(1)   Assets and liabilities measured at fair value on a recurring basis (Cont'd)

      The changes in Level 3 financial assets are analysed below:

                                                                                                                             Changes in unrealised gains
                                                                                                                                or losses included in profit
                                                                                                                              or loss in 2021 with respect
                                                                                                                   Gains       to assets still held As at 31
                                                                                                          recognised in         December 2021 - gains or
                                 31 December                                                31 December    profit or loss        losses on changes in fair
                                        2020                   Increase        Decrease            2021                (a)                            value

      Financial assets
      Financial assets
         held for trading -
        Monetary fund                         -            500,000,000     (500,000,000)              -         198,623                                    -
      Financing
         receivables -
        Notes receivable          815,583,669             3,073,998,320   (3,688,070,319)   201,511,670                 -                                  -

      Total assets                815,583,669             3,573,998,320   (4,188,070,319)   201,511,670         198,623                                    -

(a)   Gains recognised in profit or loss are recognised in investment income in the income statement.




                                                                                                                                                           197
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

13    Fair value estimates (Cont’d)

(1)   Assets and liabilities measured at fair value on a recurring basis (Cont'd)

      The changes in Level 3 financial assets are analysed below(Cont'd):

                                                                                                                             Changes in unrealised gains
                                                                                                                                or losses included in profit
                                                                                                                              or loss in 2020 with respect
                                                                                                                   Gains       to assets still held As at 31
                                                                                                          recognised in         December 2020 - gains or
                                 31 December                                                31 December    profit or loss        losses on changes in fair
                                        2019                   Increase        Decrease            2020                (a)                            value

      Financial assets
      Financial assets
         held for trading -
        Monetary fund                         -            500,000,000     (500,000,000)              -         244,059                                    -
      Financing
         receivables -
        Notes receivable          289,044,373             2,325,165,208   (1,798,625,912)   815,583,669                 -                                  -

      Total assets                289,044,373             2,825,165,208   (2,298,625,912)   815,583,669         244,059                                    -

(a)   Gains recognised in profit or loss are recognised in investment income in the income statement.




                                                                                                                                                           198
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

13    Fair value estimates (Cont’d)

(2)   Assets measured at fair value on a non-recurring basis

      As at 31 December 2021 and 31 December 2020, the Group had no assets measured at
      fair value on a non-recurring basis.

(3)   Assets and liabilities not measured at fair value but for which the fair value is disclosed

      The Group’s financial assets and liabilities measured at amortised cost mainly comprise
      notes receivable, accounts receivable, other receivables, long-term receivables, short-term
      borrowings, payables, lease liabilities and long-term borrowings, etc.

      The carrying amount of the Group's financial assets and liabilities not measured at fair
      value is a reasonable approximation of their fair value.

      The fair value of long-term borrowings is the present value of the contractually determined
      stream of future cash flows discounted at the rate of interest applied at that time by the
      market to instruments of comparable credit status and providing substantially the same
      cash flows on the same terms, and categorised within Level 3 of the fair value hierarchy.

14    Capital management

      The Group’s capital management policies aim to safeguard the Group’s ability to continue
      as a going concern in order to provide returns for shareholders and benefits for other
      stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.

      In order to maintain or adjust the capital structure, the Group may adjust the amount of
      dividends paid to shareholders, refund capital to shareholders, issue new shares or sell
      assets to reduce debts.

      The Group's total capital is calculated as “shareholders’ equity” as shown in the
      consolidated balance sheet. The Group is not subject to external mandatory capital
      requirements, and monitors capital on the basis of equity ratio.

      As at 31 December 2021 and 31 December 2020, the Group's equity ratio was as follows:

                                                          31 December 2021       31 December 2020

      Total borrowings                                         302,505,044              502,990,943
      Total shareholders’ equity                            8,555,444,589           10,986,474,009

      Equity ratio                                                     4%                           5%




                                                                                                    199
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements

(1)   Accounts receivable

                                                          31 December 2021         31 December 2020

      Accounts receivable                                    1,576,660,469            3,502,761,954
      Less: Provision for bad debts                           (167,340,229)            (171,881,303)
                                                             1,409,320,240            3,330,880,651

(a)   The ageing of accounts receivable is analysed as follows:

                                                           31 December 2021        31 December 2020

      Within 1 year                                           1,231,549,719            3,043,074,741
      Over1 years                                               345,110,750              459,687,213
                                                              1,576,660,469            3,502,761,954

(b)   As at 31 December 2021, the top five accounts receivable ranked by remaining balances
      are analysed as follows:

                                                                      Amount of
                                                               provision for bad          % of total
                                               Balance                     debts           balance

      Company 1                         1,049,027,460               (2,448,112)             66.53%
      Company 2                            74,668,369                        -               4.74%
      Company 3                            72,230,000              (72,230,000)              4.58%
      Company 4                            27,956,053                  (98,825)              1.77%
      Company 5                            16,858,567                  (59,595)              1.07%
                                        1,240,740,449              (74,836,532)             78.69%




                                                                                                  200
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(1)    Accounts receivable (Cont’d)

(c)    Provision for bad debts

(i)    Accounts receivable for which provision for bad debts is made on the individual basis are
       analysed as follows:

                                                           31 December 2021
                                           Book balance            Provision for bad debts
                                                                                       Provision for
                                                  Amount   Lifetime ECL (%)              bad debts

      Receivables from related
         parties within the
         Group i)                             74,668,369                    -                     -
      New energy subsidies
        receivable ii)                        84,903,126              100%             (84,903,126)
      Receivables for
        automobiles iii)                     72,230,000               100%             (72,230,000)
                                            231,801,495                               (157,133,126)

                                                           31 December 2020
                                           Book balance            Provision for bad debts
                                                                                       Provision for
                                                  Amount   Lifetime ECL (%)              bad debts

      Receivables from related
         parties within the
         Group i)                         1,775,196,875                    -                       -
      New energy subsidies
        receivable ii)                        84,903,126               100%            (84,903,126)
      Receivables for
        automobiles iii)                     74,480,000                100%            (74,480,000)
                                          1,934,580,001                               (159,383,126)

      i) As at 31 December 2021, the Company's accounts receivable from subsidiaries SZFJ was
      RMB74,668,369. The Company carried out individual assessment on receivables from
      subsidiaries. Based on the judgement of credit risk, there is no significant credit risk on
      receivables from subsidiaries, no overdue or impairment.

      As at 31 December 2020, the Company's accounts receivable due from subsidiaries JMCS,
      SZFJ and GZFJ were RMB1,605,066,624, RMB167,353,472 and RMB2,776,779
      respectively, totalling to RMB1,775,196,875. The Company carried out individual assessment
      on receivables from subsidiaries. Based on the judgement of credit risk, there is no
      significant credit risk on receivables from subsidiaries, no overdue or impairment.

      ii) As at 31 December 2021 and 31 December 2020,state subsidies receivable for new
      energy automobiles amounted to RMB84,903,126. As the corresponding new energy
      vehicles may not meet the corresponding subsidy policy standards, the Company considered
      that the state subsidies cannot be collected, therefore, full provision was made.

      iii) As at 31 December 2021, since aforesaid companies in debts had difficulties in operation
      and were involved in several legal proceedings, the Company considered that it was difficult
      to recover such receivables, so related provision for bad debts was made in full amount
      RMB72,230,000(31 December 2020:RMB74,480,000).

                                                                                                 201
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(1)    Accounts receivable (Cont’d)

(c)    Provision for bad debts (Cont’d)

(ii)   Accounts receivable for which provision for bad debts is made on the grouping basis are
       analysed as follows:

       Grouping - Sales of general automobiles:

                                                              31 December 2021
                                              Book balance             Provision for bad debts
                                                   Amount         Lifetime ECL(%)              Amount

       Not overdue                             833,314,688                 0.08%            (675,142)
       Overdue for 1 to 30 days                149,950,389                 0.08%            (120,161)
       Overdue for 31 to 60 days                29,645,955                 2.44%            (721,967)
       Overdue over 90 days                     17,638,503                 4.15%            (732,260)
                                                   114,035                 5.01%              (5,710)
                                             1,030,663,570                                (2,255,240)

                                                              31 December 2020
                                               Book balance            Provision for bad debts
                                                    Amount        Lifetime ECL(%)              Amount

       Not overdue                            1,096,348,057                 0.21%         (2,303,427)
       Overdue for 1 to 30 days                  70,701,614                 0.21%           (148,544)
       Overdue for 31 to 60 days                    345,798                 6.35%            (21,961)
                                              1,167,395,469                               (2,473,932)

       Grouping - Sales of new energy automobiles:

                                                              31 December 2021
                                               Book balance            Provision for bad debts
                                                    Amount        Lifetime ECL(%)              Amount

       Overdueover 90 days                      111,207,654                 6.51%         (7,234,301)




                                                                                                  202
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(1)    Accounts receivable (Cont’d)

(c)    Provision for bad debts (Cont’d)

(ii)   Accounts receivable for which provision for bad debts is made on the grouping basis are
       analysed as follows (Cont’d):

       Grouping - Sales of new energy automobiles(Cont’d):

                                                               31 December 2020
                                               Book balance             Provision for bad debts
                                                    Amount        Lifetime ECL(%)              Amount

       Not overdue                               138,042,462               4.94%          (6,826,200)
       Overdue for 1 to 30 days                            -                   —                  -
       Overdue for 31 to 60 days                  23,243,550              10.25%          (2,381,426)
                                                 161,286,012                              (9,207,626)

       Grouping - Automobile parts:

                                                               31 December 2021
                                                Book balance            Provision for bad debts
                                                     Amount       Lifetime ECL(%)              Amount

       Not overdue                               171,058,119               0.30%            (513,174)
       Overdue for 1 to 30 days                   10,595,578               0.30%             (31,787)
       Overdue for 31 to 60 days                  14,644,585               0.50%             (73,223)
       Overdue for 61 to 90 days                   3,464,188               0.60%             (20,785)
       Overdue over 90 days                        3,225,280               2.44%             (78,593)
                                                 202,987,750                                (717,562)




                                                                                                  203
        JIANGLING MOTORS CORPORATION, LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR EDNED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

15      Notes to the Company’s financial statements (Cont’d)

(1)     Accounts receivable (Cont’d)

(c)     Provision for bad debts (Cont’d)

(ii)    Accounts receivable for which provision for bad debts is made on the grouping basis are
        analysed as follows (Cont’d):

        Grouping - Automobile parts (Cont’d):

                                                                   31 December 2020
                                                Book balance               Provision for bad debts
                                                     Amount          Lifetime ECL (%)             Amount

        Not overdue                               206,087,099                     0.30%           (618,261)
        Overdue for 1 to 30 days                   19,968,933                     0.30%            (59,907)
        Overdue for 31 to 60 days                  10,595,310                     0.50%            (52,977)
        Overdue for 61 to 90 days                   1,295,045                     0.60%             (7,770)
        Overdue over 90 days                        1,554,085                     5.00%            (77,704)
                                                  239,500,472                                     (816,619)

(iii)   The provision for bad debts in the current year amounted to RMB4,541,074 was reversed,
        because of the actual receipt of account receivables relating to the provision for bad debts
        made in the prior period. Among them, RMB2,250,000 of accounts receivable for which
        provision for bad debts was made on the individual basis in the previous period were
        recovered in the current period, and the corresponding book balance was
        RMB2,250,000.The significant amounts reversed or recovered were as follows:

                                                    Basis and justification for
                              Reasons for        determining the provision for       Amount of     Recovery
                         reversal/recovery                          bad debts reversal/recovery     method

                                                The aforesaid companies in
                               The actual             debts had difficulties in
                                 receipt of   operation and were involved in
                                   account    several legal proceedings, the
                              receivables          Company considered the
                            relating to the            receivables cannot be
                         provision for bad           collected, therefore, full
        Accounts            debts made in      provision was made for those
        receivable 1      the prior period.                      receivables.        2,250,000     Received

(d)     In 2021, no accounts receivable were written off.

(e)     As at 31 December 2021 and 31 December 2020, the Company did not have accounts
        receivable that were pledged.




                                                                                                        204
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(2)    Other receivables

                                                          31 December 2021    31 December 2020

      Receivable for subsidiary
         disposal(Note 5)                                      252,000,000                   -
      Import working capital advances                           25,000,000          35,000,000
      Disposal of assets                                        17,668,457                   -
      Receivables from JMCH                                      9,679,410       1,247,724,942
      Others                                                    97,471,253          77,371,021
                                                               401,819,120       1,360,095,963
      Less: Provision for bad debts                             (1,031,283)           (188,740)
                                                               400,787,837       1,359,907,223

(a)   The ageing of other receivables is analysed as follows:

                                                          31 December 2021    31 December 2020

      Within 1 year                                            399,577,953        1,359,304,567
      Over 1 year                                                2,241,167              791,396
                                                               401,819,120        1,360,095,963




                                                                                            205
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements (Cont’d)

(2)   Other receivables (Cont’d)

(b)   Provision for losses and changes in book balance statements


                                                                                       Stage 1
                                                          12-month ECL
                                                            (grouping)                  12-month ECL (individual)           Sub-total        Total
                                                                       Provision for                       Provision for   Provision for   Provision for
                                                    Book balance         bad debts         Book balance       bad debts      bad debts       bad debts

      31 December 2020                                112,371,021          (188,740)      1,247,724,942               -        (188,740)       (188,740)
       Net increase/(decrease) in the
          current year                                279,768,689                —       (1,238,045,532)            —               —               —
       Provision for bad debts reserved
          in the current year                                  —          (842,543)                    —            -        (842,543)       (842,543)
       Provision for bad debts written
          off in the current year                              —                  -                    —            -               -               -
      31 December 2021                                392,139,710        (1,031,283)             9,679,410            -      (1,031,283)     (1,031,283)




                                                                                                                                                   206
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(2)    Other receivables (Cont’d)

(b)    Provision for losses and changes in book balance statements (Cont’d)

       As at 31 December 2021 and 31 December 2020, the Company did not have any other
       receivables at Stage 2 and Stage 3. Other receivables at Stage 1 were analysed below:

(i)    As at 31 December 2021 and 31 December 2020, provision for bad debts of other receivables
       on the individual basis was analysed as follows:

                                                                     31 December 2021
                                                                    12-month ECL    Provision for
       Stage 1                              Book balance                      (%)     bad debts          Reason

         Receivables from JMCH                   9,679,410                       -               -               i)

       i) As at 31 December 2021, the Company’s other receivables from subsidiary JMCH were
       RMB9,679,410 (31 December 2020: RMB1,247,724,942). The Company carried out an
       individual assessment on receivables from subsidiaries. Based on the judgement of credit risk,
       there is no significant credit risk on receivables from subsidiaries that were overdue and
       impaired.

(ii)   As at 31 December 2021 and 31 December 2020, the Company’s other receivables with
       provision for bad debts on the grouping basis were analysed below:

       Other receivables with provision on the grouping basis at Stage 1:

                                         31 December 2021                            31 December 2020
                                      Book
                                    balance     Provision for losses         Book balance   Provision for losses
                                              Provision                                     Provision
                                    Amount         ratio     Amount               Amount        ratio Amount

       Grouping of
         operating
         advances and
         guarantees
          Within 1 year        341,767,579          0.30% (1,024,521)          62,120,657      0.30% (186,365)
          Over 1 year            2,241,167          0.30%     (6,762)             791,396      0.30%   (2,375)
       Grouping of others):
         Within 1 year          48,130,964                 -            -      49,458,968            -          -
                               392,139,710                     (1,031,283)    112,371,021                (188,740)

       i)As at 31 December 2021 and 31 December 2020, the grouping of others are mainly interest
       receivables from the Company's bank deposits. the Company’s interest receivable from cash
       at bank mainly came state-owned banks and other medium or large size listed banks with
       good reputation and high credit rating. Therefore, the Company expected there was no
       significant loss on related interest receivable from non-performance by these banks.

       As at 31 December 2021, the Company had no other receivables at Stage 2 and Stage 3.




                                                                                                           207
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements (Cont’d)

(2)   Other receivables (Cont’d)

(c)   In 2021, the provision for bad debts reserved amounted to RMB842,543.

(d)   In 2021, no other receivables were written off.

(e)   As at 31 December 2021, the top five other receivables ranked by remaining balances are
      analysed as follows:

                                                                                      Provision
                                                                        % of total      for bad
                               Nature              Balance    Ageing     balance          debts

                       Receivable for
                          subsidiary                         Within 1
      Company 1             disposal         252,000,000        year     62.71%       (756,000)
                           Advances
                        classified as                        Within 1
      Company 2            expenses            31,266,512       year          7.78%    (93,800)
                           Advances
                        classified as                        Within 1
      Company 3            expenses            25,000,000       year          6.22%    (75,000)
                          Disposal of                        Within 1
      Company 4               assets           17,668,457       year          4.40%    (53,005)
                          Disposal of                        Within 1
      Company 5               assets           9,679,410        year      2.41%              -
                                             335,614,379                 83.52%       (977,805)




                                                                                        208
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

(3)    Long-term equity investments

                                                                                                                             31 December 2021              31 December 2020

       Subsidiaries (a)                                                                                                         2,756,943,493                   2,048,000,000
       Associates (b)                                                                                                             252,402,245                      39,496,548
                                                                                                                                3,009,345,738                   2,087,496,548

       Less: Provision for impairment of long-term equity investments for subsidiaries                                          (1,905,543,493)                     (526,000,000)
             Provision for impairment of long-term equity investments for associates                                                         -                                 -
                                                                                                                                (1,905,543,493)                     (526,000,000)

                                                                                                                                1,103,802,245                   1,561,496,548

 (a)   Subsidiaries

                                                                           Changes in the current year
                                                                                                                                                       Balance of
                                                                                                                   Other                                provision            Cash
                                                                                                                additions                         for impairment        dividends
                                   31 December               Additional           Debt      Provision for             and      31 December         at the end the        declared
                                          2020             investments        exemption      impairment      subtractions             2021                   year        this year

       JMCH                           852,000,000          1,142,000,000     166,943,493   (1,379,543,493)              -        781,400,000      (1,905,543,493)                -
       JMCS                            50,000,000                      -               -                -               -         50,000,000                   -                 -
       SZFJ                            10,000,000                      -               -                -               -         10,000,000                   -                 -
       GZFJ                            10,000,000                      -               -                -               -         10,000,000                   -                 -
       ThePower
         Company(i)                   600,000,000                      -               -                -    (600,000,000)                 -                   -                 -
                                    1,522,000,000          1,142,000,000     166,943,493   (1,379,543,493)   (600,000,000)       851,400,000      (1,905,543,493)                -




                                                                                                                                                                         209
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements (Cont’d)

(3)   Long-term equity investments(Cont’d)

(a)   Subsidiaries(Cont’d)

(i)   ThePower Company, formerly known as Taiyuan Jiangling Power Co., Ltd., was a wholly-owned subsidiary of the Company. According to the
      resolution of the Board of Directors in October 2020, the Company sold 60% of the equity of Taiyuan Jiangling Power Co., Ltd. through public listing on
      the Shanghai United Assets and Equity Exchange.

      In January 2021, The Company and Yunnei Group signed the equity transaction contract.

      On November 5, 2021, Taiyuan Jiangling Power Co., Ltd. held the first shareholders meeting in 2021, and approved the change of the Power
      Company's name to Shanxi Yunnei Power Co., Ltd., the change of shareholders to Yunnei Group and the Company, and the establishment of the
      board of directors, and election of directors. After the completion of the aforementioned changes, Yunnei Group has become the parent company and
      the ultimate parent company of the Power Company. The Company holds 40% of the shares of the Power Company and the Power Company
      becomes an associate of the Company.

(b)    Associate

                                                               Movements for the current year
                                                                                       Cash
                                                                Share of net      dividends                                                                       Ending
                                      31                         profit/(loss)  declared by                            31                                      balance of
                                December       Increase in the under equity             joint   Provision for    December     Shareholding   Voting rights   provision for
                                    2020        current period       method        ventures      impairment          2021              (%)             (%)    impairment

       ThePower Company                 —      240,000,000     (24,006,395)              -                 -   215,993,605           40%           40%                 -
       Hanon Systems            39,496,548                -      (3,087,908)              -                 -    36,408,640        19.15%        33.33%                 -
       Total                    39,496,548      240,000,000     (27,094,303)              -                 -   252,402,245




                                                                                                                                                                     210
       JIANGLING MOTORS CORPORATION, LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR EDNED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

15     Notes to the Company’s financial statements (Cont’d)

 (4)   Revenue and cost of sales

                                                                         2021                            2020

       Revenue from main operations                           32,230,431,936                30,175,972,435
       Revenue from other operations                             661,606,456                   552,275,430
                                                              32,892,038,392                30,728,247,865

                                                                        2021                             2020

       Cost of revenue from main operations                   28,545,317,717                25,758,133,679
       Cost of sales from other operations                       564,998,651                   519,162,639
                                                              29,110,316,368                26,277,296,318

 (a)   Revenue and cost of sales from main operations

                                              2021                                       2020
                                                           Cost of
                               Revenue from          revenue from                           Cost of revenue
                                       main                  main       Revenue from             from main
                                  operations            operations     main operations         operations s

       Sales of
        automobiles            30,095,151,966        26,882,101,617      28,382,524,670         24,423,856,544
       Sales of
        automobile
        parts                   2,026,158,467         1,544,733,777       1,699,021,801          1,238,994,675
       Automobile
        maintenance
        services                  109,121,503           118,482,323          94,425,964             95,282,460
                               32,230,431,936        28,545,317,717      30,175,972,435         25,758,133,679

(b)    Revenue and cost of sales from other operations

                                      2021                                          2020
                          Revenue from     Cost of sales                                        Cost of sales
                                  other      from other                 Revenue from              from other
                             operations      operations               other operations            operations

       Sales of
         materials          473,568,747            441,423,371           389,754,210            366,341,033
       Others               188,037,709            123,575,280           162,521,220            152,821,606
                            661,606,456            564,998,651           552,275,430            519,162,639




                                                                                                         211
      JIANGLING MOTORS CORPORATION, LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR EDNED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements (Cont’d)

(4)   Revenue and cost of sales (Cont’d)

(c)   The breakdown of revenue earned in 2021 was as follows:

                                                                         2021
                                                                           Automobile
                                                                         maintenance        Materials
                                         Automobiles Automobile parts        services      and others              Total

      Revenue from main
         operations                   30,095,151,966    2,026,158,467    109,121,503                  -   32,230,431,936
      Including: Recognised at a
                   time point         30,095,151,966    2,026,158,467              -                  -   32,121,310,433
                 Recognised within
                   a certain period                 -               -    109,121,503                  -      109,121,503
      Revenue from other
         operations                                -                -              - 661,606,456             661,606,456
                                      30,095,151,966    2,026,158,467    109,121,503 661,606,456          32,892,038,392

                                                                        2020
                                                                         Automobile                                 Total
                                                           Automobile   maintenance      Materials
                                        Automobiles             parts       services    and others

      Revenue from main
         operations                   28,382,524,670    1,699,021,801    94,425,964               -       30,175,972,435
      Including: Recognised at a
                    time point        28,382,524,670    1,699,021,801              -              -       30,081,546,471
                 Recognised
                    within a
                    certain period                  -               -    94,425,964               -           94,425,964
      Revenue from other
         operations                                -                -             - 552,275,430             552,275,430
                                      28,382,524,670    1,699,021,801    94,425,964 552,275,430           30,728,247,865

(i)   As of 31 December 2021, the amount of revenue corresponding to the performance
      obligations that the company has signed but has not performed or has not yet performed is
      RMB176,065,858, of which the company expects that RMB25,201,908 will be recognized as
      revenue from the sale of automobiles and parts in 2022. RMB150,863,950 will be
      recognized as revenue from automobile maintenance services during 2022 to 2027.

(5)   Investment income

                                                                                 2021                              2020

      Investment income from financial assets held for trading                3,894,456                       75,400,552
      Investment loss from forward exchange settlement                      (20,618,121)                      (2,421,091)
      Losses on discount of financing receivables eligible for
         derecognition                                                       (8,344,916)                       (1,113,466)
      Losses on long-term equity investments under equity
         method                                                             (21,475,697)                      (1,438,009)
                                                                            (46,544,278)                      70,427,986

      There is no significant restriction on the remittance of investment income to the Company.




                                                                                                                  212
     JIANGLING MOTORS CORPORATION, LTD.

     SUPPLEMENTARY INFORMATION THE FINANCIAL STATEMENTS
     FOR THE YEAR EDNED 31 DECEMBER 2021
     (All amounts in RMB Yuan unless otherwise stated)
     [English translation for reference only]

1    Statement of non-recurring profit or loss

                                                                     2021                   2020

     Government grants recognised in profit or
     loss for the current period                             552,831,370            277,756,664
     Gains on disposal of long-term equity
     investments                                              52,133,307                         -
     Gains and losses arising from changes in
     fair value of financial assets and liabilities
     held at fair value through profit or loss,
     and investment losses on disposal of
     related financial assets and liabilities                 (16,082,076)            76,150,461
     Fund occupation fee received from non-
     financial institutions                                   15,836,668               7,628,722
     Gains/Losses on disposal of non-current
         assets                                                 5,107,814           (167,780,780)
     Reversal of provision for impairment of
         receivables tested individually                        2,250,000              6,540,000
     Net amount of other non-operating
         income and expenses                                    2,027,076              5,869,080
     Other items of profit or loss conforming to
        the definition of non-recurring profit or
        loss                                                  18,765,020            (10,493,560)
                                                             632,869,179            195,670,587
     Effect of income tax                                    (88,332,046)           (50,160,162)
     Effect of gains and losses on minority
        interests (net of tax)                                        -                       -
                                                             544,537,133            145,510,425

     Basis for preparation of statement of non-recurring profit or loss

     Under the requirements in the Explanatory Announcement No. 1 on Information
     Disclosure by Companies Offering Securities to the Public - Non-recurring Profit or Loss
     [2008] from CSRC, non-recurring profit or loss refers to that arises from transactions and
     events that are not directly relevant to ordinary activities, or that are relevant to ordinary
     activities, but are extraordinary and not expected to recur frequently that would have an
     influence on users of financial statements making economic decisions on the financial
     performance and profitability of an enterprise.

2    Return on net assets and earnings per share

                                    Weighted average                  Earnings per share
                                   return on net assets    Basic earnings per     Diluted earnings
                                           (%)                   share                per share
                                       2021       2020       2021        2020       2021        2020

    Net profit attributable to
     ordinary shareholders
     of the Company                   5.87%        5.13%      0.67        0.64      0.67        0.64
    Net profit attributable to
     ordinary shareholders
     of the Company, net of
     non-recurring profit or
     loss                             0.30%        3.77%      0.03        0.47      0.03        0.47



                                                                                                 213