Jiangling Motors Corporation, Ltd.
2022 Annual Report
2023-03
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.
Future plans, development strategies and other forward-looking statements in
this report do not constitute a substantial commitment of the Company to
investors. Investors are advised to pay attention to investment risks.
The Company's possible risks and countermeasures are described in Section 3
of this report, "Management Discussion and Analysis". Please investors to pay
attention to the relevant content.
The Annual Report is prepared in Chinese and English. In case of discrepancy,
the Chinese version will prevail.
The year 2022 profit distribution proposal approved by the Board of Directors is
as follows:
A cash dividend of RMB 4.24 (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 .............................................. 29
Chapter V Environment and Social Responsibilities ................................. 54
Chapter VI Major events ................................................................................ 58
Chapter VII Share Capital Changes & Shareholders.................................... 63
Chapter VIII Preferred Shares ........................................................................ 68
Chapter IX Bond related Information .......................................................... 69
Chapter X Financial Statements ................................................................. 70
3
Catalog on Documents for Reference
1. Originals of 2022 financial 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 2022.
4. The Annual Report in the China GAAP.
Abbreviations:
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co., Ltd.
Ford Ford Motor Company
JIC Nanchang Jiangling Investment Co., Ltd.
JMC or the Company Jiangling Motors Corporation, 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
Unified social credit 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
Ye Jun, Xiao Minjie
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
2022 2021 2020
(%)
Revenue 30,100,283,842 35,221,306,472 -14.54% 33,095,733,665
Profit Attributable to the
Equity Holders of the 915,049,168 574,165,944 59.37% 550,698,958
Company
Net Profit Attributable to
Shareholders of Listed
Company After Deducting -229,667,660 29,628,811 -875.15% 405,188,533
Non-Recurring Profit or
Loss
Net Cash Generated From
-1,518,573,952 1,760,193,010 -186.27% 3,698,342,828
Operating Activities
Basic Earnings Per Share
1.06 0.67 59.37% 0.64
(RMB)
Diluted Earnings Per
1.06 0.67 59.37% 0.64
Share (RMB)
Weighted Average Return
10.28% 5.87% 4.41% 5.13%
on Equity Ratio
Change
End of Year 2022 End of Year 2021 End of Year 2020
(%)
Total Assets 27,468,321,835 26,359,084,120 4.21% 28,185,185,418
Shareholders’ Equity
Attributable to the Equity 9,243,817,333 8,555,444,589 8.05% 10,986,474,009
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
Units: RMB
Item 2022 2021 remark
Revenue 30,100,283,842 35,221,306,472
Amount JMC main business includes the
Deducted 507,757,923 691,258,152 sales of automobile and spare
from parts and automobile
7
Revenue maintenance services, the sales
of materials, revenue from
technical service and other
business activities other than
the main business activities
shall be deducted.
Amount after
Deduction
29,592,525,919 34,530,048,320
from
Revenue
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
□Applicable □√Not Applicable
II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable □√Not Applicable
III. Reasons for the difference in accounting data under domestic and foreign
accounting standards
□Applicable □√Not Applicable
8. Main accounting data quarterly
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 7,232,030,037 6,990,729,347 7,808,857,974 8,068,666,484
Profit Attributable to the
Equity Holders of the 193,977,828 258,403,194 264,803,793 197,864,353
Company
Net Profit Attributable to
Shareholders of Listed
Company After -27,656,476 -80,778,100 39,085,652 -160,318,736
Deducting Non-
Recurring Profit or Loss
Net Cash Generated
From Operating -2,691,345,433 -640,201,042 1,108,616,335 704,356,188
Activities
Whether the above mentioned financial indicators or the total number are
significantly different from the financial indicators related to the disclosed
quarterly and half-year reports of the Company
□Yes □√No
8
9. Non-recurring profit and loss items and amounts
□√Applicable □Not Applicable
Unit: RMB
2022 2021 2020
Profit and loss of non-current assets disposal
(including the charge-off part of the asset impairment 389,251,475 5,107,814 -167,780,780
provision)
Government subsidies included in the current profit
943,326,556 552,831,370 277,756,664
and loss
Capital occupation fee charged for non-financial
13,827,410 15,836,668 7,628,722
enterprises included in the current profit and loss
In addition to the effective hedging business related to
the normal operating business of the Company,
holding the gains and losses of fair value changes
arising from trading financial assets and trading
1,424,039 -16,082,076 76,150,461
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
Return of the impairment provision for receivables
110,068 2,250,000 6,540,000
with a separate impairment test
Other non-operating income and expenses except the
1,423,948 2,027,076 5,869,080
above
Other profit and loss items that meet the definition of
- 18,765,020 -10,493,560
non-recurring profit and loss
Gains on disposal of long-term equity investments - 52,133,307 -
Less: Income tax impact amount 204,283,363 88,332,046 50,160,162
Influence of minority shareholders' equity 363,305 - -
Total 1,144,716,828 544,537,133 145,510,425
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
In 2022, the production and sales volume of automobiles were 27,021 thousand
and 26,864 thousand respectively, with year-on-year growth of 3.4% and 2.1%,
achieving slight growth for the whole year. Driven by policies to stabilize growth
and promote consumption, passenger vehicles grew rapidly, contributing an
important part to the year's modest growth. Commercial vehicles are operating at
the low level of overlaid factors. New energy vehicles continued explosive growth,
with annual sales exceeding 6.8 million units and the market share increasing to
25.6%. New energy vehicles gradually entered the full market expansion period,
ushering in a new stage of development and growth. Automobile export
continues to maintain a high level, repeatedly hitting a monthly record high. Since
August, the monthly average export volume has exceeded 300,000 units, and the
annual export volume has surpassed 3 million units, effectively driving the overall
growth of the industry. The performance of Chinese brands is outstanding,
grasping the transformation opportunities of new energy and intelligent network,
and improving product competitiveness. The market share of passenger vehicles
is close to 50%, which is a new high in recent years.
The production and sales volume of passenger vehicles were 23,836 thousand
and 23,563 thousand respectively, with YOY growth of 11.2% and 9.5%, which is
higher than the industry average. Among the main varieties of passenger
vehicles, compared with the same period last year, the production and sales of
basic passenger vehicles (sedans) and sport-utility vehicles (SUVs) showed
rapid growth and continued to occupy the dominant position. The other two
models witnessed different degrees of decline.
The production and sales of commercial vehicles were 3,185 thousand and 3,300
thousand, respectively, down 31.9% and 31.2% year-on-year, showing double-
digit declines. Among the main varieties of commercial vehicles, compared with
the same period last year, the production and sales of buses and trucks
decreased rapidly. Among the main truck models, compared with the same
period last year, the production and sales of the four categories of trucks all
showed a double-digit decline, among which the decline of heavy trucks and
medium trucks was more obvious; Among the main varieties of buses, compared
with the same period last year, the production and sales of large buses achieved
a small growth, but medium-sized buses and light bus dropped significantly.
Due to the lack of overseas supply and the substantial enhancement of export
competitiveness of Chinese automobile enterprises, the export exceeded 3
million units to reach 3,111 thousand units, up 54.4% year on year, effectively
driving the overall growth of the industry. The export of passenger vehicles was
2,529 thousand, up 56.7% year on year. Commercial vehicle export reached 582
thousand units, with YOY increase of 44.9%. The export of new energy vehicles
reached 679 thousand units, witnessing 1.2 times growth year on year. Since
10
2021, the total annual volume of China's automobile export exceeded 2 million
for the first time, breaking the situation of hovering around 1 million before, and
realized the leap-forward breakthrough. The production and sales of new energy
vehicles reached 7,058 thousand and 6,887 thousand respectively, with a year-
on-year growth of 96.9% and 93.4%, and the market share of 25.6%. Among the
main varieties of new energy vehicles, compared with the same period last year,
the production and sales of BEV, PHEV and fuel cell vehicles continued to
maintain rapid growth.
2. Company’s Core Business during the Reporting Period
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 2022, 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.
In 2022, JMC planned the productivity of 320,000 units and the utilization rate
was 88%.
Vehicle manufacturing and operation
□√Applicable □Not Applicable
Production and Sales Volume Information
Production Volume (Unit) Sales Volume (Unit)
YOY YOY
2022 FY 2021 FY change 2022 FY 2021 FY change
(%) (%)
By Products
Light Bus 79,805 100,168 -20.33% 77,237 101,516 -23.92%
Truck 62,825 118,117 -46.81% 64,727 118,105 -45.20%
Pickup 63,496 68,268 -6.99% 62,872 67,906 -7.41%
SUV 75,468 53,096 42.14% 77,172 53,481 44.30%
Total 281,594 339,649 -17.09% 282,008 341,008 -17.30%
By Region
China 281,594 339,649 -17.09% 282,008 341,008 -17.30%
11
Reasons for the year-on-year change of more than 30%
□√Applicable □Not Applicable
The 45.20% year-on-year decline in truck sales was mainly due to a decline in
the industry.
The 44.30% year-on-year increase in SUV sales was mainly due to the increase
in overseas sales.
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
cooperation with such giants as Tencent, Hengrun, IFLYtek and Desay SV, etc.
for ecology development. With the vision of achieving customer success, JMC
cooperates with suppliers to create a customer-centered vehicle experience and
strives to build a sustainable agile supply system. Through innovative thinking
and digitalization, JMC has established a complete supplier access, capability
improvement and supplier control mechanism from the perspectives of
technology, quality, cost, delivery and service, thus effectively promoting the
competitiveness of the supply 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 1,552 1,411 173,075,069
5,000
Series
New Energy 366 363 67,068,224
Passenger Vehicles 35,000
and Pickup
New Energy Truck 20,000 1,647 1,655 233,591,090
60,000 3,565 3,429 473,734,383
Note: all new energy
Total vehicles are collinear
with corresponding fuel
vehicles.
12
New energy vehicle Subsidy
In 2022, JMC received a subsidy of RMB 104,510 thousand for new energy
vehicles.
3. Core Competitiveness Analysis
The Company is a modern Sino-foreign joint venture that integrates automobile
research and development, manufacturing and sales. It is a pioneer in the
Chinese auto industry that provides excellent products and solutions for the
intelligent logistics field by relying on the market leadership and advanced
technology of light commercial vehicles. It is also a provider of Ford value SUVs.
It owns the titles of National High-tech Enterprise, National Innovation Pilot
Enterprise, National Enterprise Technology Center, National Industrial Design
Center, National Intellectual Property Demonstration Enterprise, and National
Vehicle Export Base. It has been ranked among the top 100 most valuable
automobile brands in the world for many consecutive years. In terms of segment,
JMC light bus’s market share ranked No.1, Pickup’s market share ranked No.2
and light truck’s market share ranked No.5.
As the top light bus brand in China, JMC has always been customer-oriented and
launched the light bus portfolio, including new Transit + new-generation Transit
Pro and Teshun + Fushun, which occupies an important position in logistics,
passenger transport, household, refit and other fields. The latest JMC Fushun on
the market, with joint venture quality, super space, super power, rear drive
advantage and friendly price, has become a hot selling model of logistic vehicle.
JMC light truck adheres to the business and service concept of “customer-
centered”, constantly improves product competitiveness, and effectively
responds to the new policy of blue license plate, with customer experience
improved and sales channels optimized. The newly launched “Kaiyun +”, a new-
generation light truck model, has comprehensive upgrade in exterior, interior,
power, safety and fuel economy, etc. Nine models have been available according
to the customer demands, they are engineering model, fruit and vegetable model,
building materials model, mountain model, supermarket model, seafood model,
moving model, express model and cold chain model.
JMC Pickup, as a leading brand in the market, adheres to the customer-centered
design concept in product research and development. JMC launched Yuhu 7
SVO product to meet customer demands for the appearance, interior and comfort
of medium and high-end Pickup. Baodian product line launched low platform and
flat bottom box models to satisfy the use habits of different industry customers on
the rear bucket. At the same time, through “JFX Yuhu life family” activities to
transmit diversified Pickup life concept and to continuously promote Chinese
Pickup culture, the sense of social responsibility of Pickup industry leading brand
has been displayed.
13
4. Core Business Analysis
I. Summary
In 2022, under the economic downward pressure, high raw material prices, lack
of core and power restriction, and poor logistics, etc., have a significant impact
on the automobile terminal consumption market, with weak market performance
and weak growth. In the whole year, the vehicle sales in China reached 26.86
million, up 2.1% year on year, including 23.56 million passenger vehicles; growth
of 9.5% year on year; commercial vehicles sold 3.3 million units, down 31.2%
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
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
2022, JMC achieved sales volume of 282,008 units, including 77,237 light buses,
64,727 trucks, 62,872 Pickups and 77,172 SUVs, with YOY decrease of 17.30%.
In 2022, the total production volume was 281,594 units, including 79,805 light
buses, 62,825 trucks, 63,496 Pickups and 75,468 SUVs, with YOY decrease of
17.09%.
In 2022, the operation revenue reached RMB 30.1 billion, down 14.54% year on
year. The operation cost was RMB 25,812 million, down 14.29% year on year.
The marketing expense was RMB1,445 million, with YOY decrease of 5.67%.
The administration expense was RMB 965 million, down 16.27% year over year.
R&D cost was RMB 1,483 million, down 13.21% year on year. The financial
expense was RMB -164 million, up by 44.58% year over year.
II. Revenue and Cost
(a) Composition of Sales Revenue
Unit: RMB
2022 FY 2021 FY YOY
Proportion Proportion change
Amount Amount
(%) (%) (%)
Revenue 30,100,283,842 100% 35,221,306,472 100% -14.54%
By Industry
Automobile Industry 30,100,283,842 100% 35,221,306,472 100% -14.54%
By Products
Vehicle 27,069,207,538 89.93% 32,317,182,099 91.75% -16.24%
Components 2,412,993,540 8.02% 2,101,505,690 5.97% 14.82%
Automobile
110,324,841 0.37% 111,360,531 0.32% -0.93%
Maintenance Services
14
Material & Others 507,757,923 1.68% 691,258,152 1.96% -26.55%
By Region
China 30,100,283,842 100% 35,221,306,472 100% -14.54%
Sales model
Distribution 28,995,566,644 96.33% 33,828,173,736 96.04% -14.29%
Direct selling 1,104,717,198 3.67% 1,393,132,736 3.96% -20.70%
Number of dealers: at present, there are more than 400 first-level dealers, and
the total number of dealers is more than 1,000.
(b) Reach to 10% of Revenue or Profit by Industry, Product, Region or Sales
Model
□√Applicable □Not Applicable
Unit: RMB
YOY YOY gross
YOY Cost
Gross turnover margin
Turnover Cost Change
Margin change change
(%)
(%) (points)
By Industry
Automobile
30,100,283,842 25,812,264,868 14.25% -14.54% -14.29% -0.24%
Industry
By Products
Vehicle 27,069,207,538 23,355,537,374 13.72% -16.24% -16.02% -0.23%
By Region
China 30,100,283,842 25,812,264,868 14.25% -14.54% -14.29% -0.24%
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 2022 2021 Change (%)
Sales Volume unit 282,008 341,008 -17.30%
Automobile Production Volume unit 281,594 339,649 -17.09%
Inventory Volume unit 9,113 10,188 -10.55%
Explanation on YOY change of over 30%
□Applicable □√Not Applicable
15
(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 2022 FY 2021 FY
YOY
Product Proportion Proportion Change
Cost Cost
(%) (%) （%）
Vehicle Cost 23,355,537,374 90.48% 27,809,982,305 92.34% -16.02%
Components Cost 1,872,040,360 7.25% 1,557,352,106 5.17% 20.21%
Automobile Cost
109,409,795 0.42% 118,486,239 0.39% -7.66%
Maintenance Services
Material & Others Cost 475,277,339 1.85% 631,633,717 2.10% -24.75%
(f) Whether the Consolidated Scope was Changed During the Reporting Period
□Yes □√No
(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） 8,458,719,170
Accounted for the proportion of JMC’s total annual turnover 28.10%
Included related party transaction accounted for the
21.19%
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. 5,907,094,789 19.62%
2 Chengli Special Automobile Co., Ltd. 823,303,887 2.74%
3 Beijing Jinglingshun Auto Sales Company 661,151,507 2.20%
4 Zhejiang Jiangling Motors Sales Company 594,285,016 1.97%
Jiangxi JMCG Specialty Vehicles Sales 472,883,971 1.57%
5
Service Co., Ltd.
Total 8,458,719,170 28.10%
16
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.
Main Suppliers:
Total purchase value from top 5 suppliers（RMB） 4,170,325,071
Accounted for the proportion of JMC’s total annual purchase
18.26%
amount
Included related party transaction accounted for the proportion of
14.62%
JMC’s total annual purchase amount
Top 5 Suppliers:
Percentage of
Purchase JMC’s Total
No. Name of the Supplier
Value (RMB) Annual Purchase
Amount (%)
Nanchang Jianglin Huaxiang Automobile
1 924,968,624 4.05%
Parts Co., Ltd.
2 Magna PT Powertrain (Jiangxi) Co., Ltd. 893,746,762 3.91%
Nanchang Baojiang Steel Processing
3 853,482,030 3.74%
Distribution Co., Ltd.
Bosch Auto Diesel System (Wuxi)
4 830,381,102 3.64%
Company
5 Jiangxi Jiangling Chassis Co., Ltd. 667,746,553 2.92%
Total 4,170,325,071 18.26%
Other introduction to main suppliers
□√Applicable □Not Applicable
Nanchang Jianglin Huaxiang Automobile Parts Co., Ltd., Magna PT Powertrain
(Jiangxi) 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
2022 2021 YOY Change significant
Changes
Distribution Expenses 1,444,894,711 1,531,808,043 -5.67%
Administrative Expenses 964,786,345 1,152,218,590 -16.27%
Mainly due to the
decreased interest
Finance Income-net -163,907,346 -295,755,557 44.58%
income form bank
deposits and the
17
increased interest
expense
R & D Expenses 1,483,329,630 1,709,014,171 -13.21%
IV. Research & Development
The expected
Name of main Goals to be impact on the
Project purpose Project progress
R&D project achieved Company's future
development
Enhance the
competitiveness of
PV product Jiangling Ford passenger It is under development Increase the
hybrid power vehicle products, and meet and will begin Company's
and BEV the requirements of future production in 2024- operating
project passenger vehicle fuel 2025. revenue.
consumption regulations
and double points policy
The self-owned brand
Enhance the dual brand replacement products
Light bus competitiveness of the have been launched in Increase the
product Company’s light bus 2022, and the Company's
replacement products, and maintain the Fordbrand replacement operating
project first position of light bus in products will be revenue.
the Chinese market. lanched in the second
half of this year.
The conventional
Light truck Enhance the vehicle had been Increase the
product competitiveness of the launched in 2022, and Company's
replacement Company’s light truck the electric platform operating
project products. products will be revenue.
launched this year.
It is under
Enhance the development, and the Increase the
Pickup product
competitiveness of the replacement of all Company's
replacement
Company’s pickup Pickup products will be operating
project
products. implemented in 2023- revenue.
2025.
Company R & D personnel
2022 2021 Change(%)
R&D staff (person) 2,350 2,315 1.51%
R&D staff as % of total employees 19.05% 17.90% 1.15%
Educational structure of R&D personnel
Undergraduate 1,651 1,609 2.60%
Master 554 559 -0.90%
Age composition of R&D personnel
Under the age of 30 533 602 -11.50%
30 ~ 40 years old 1,481 1,382 7.20%
18
R&D Investment
2022 2021 Change(%)
R&D investment (RMB) 2,018,500,532 1,886,139,707 7.02%
R&D investment as % of revenue 6.71% 5.36% 1.35%
Capitalization of R&D investment 535,170,902 177,125,536 202.14%
Capitalization of R&D investment as % of
26.51% 9.39% 17.12%
R&D investment
Causes and impacts of major changes in the composition of R&D personnel
□Applicable □√Not Applicable
Reason for the substantial change of R&D investment as % of revenue
□Applicable □√Not Applicable
Reason and rationality of the substantial change in the capitalization rate of R &
D investment
□√Applicable □Not Applicable
The change was due to an increase in the amount of R&D investment eligible for
capitalization in this year.
Please refer to the Note 2 (14) (e) research and development, and Note 4 (17)
Intangible assets/Development expenditures of the notes to the consolidated
financial statements in the Chapter X Financial Statements for details.
V. Cash Flow Analysis
Unit: RMB
Change
Item 2022 2021
(%)
Sub-total of cash inflows 31,614,927,049 39,740,902,264 -20.45%
Sub-total of cash outflows 33,133,501,001 37,980,709,254 -12.76%
Net cash flows generated from operating
-1,518,573,952 1,760,193,010 -186.27%
activities
Sub-total of cash inflows 1,407,222,333 2,915,954,321 -51.74%
Sub-total of cash outflows 1,496,365,812 2,994,592,220 -50.03%
Net cash flows generated uesd in
-89,143,479 -78,637,899 13.36%
investing activities
Sub-total of cash inflows 4,731,667,661 1,484,497,639 218.74%
Sub-total of cash outflows 4,149,807,890 4,718,956,565 -12.06%
Net cash flows generated from financing
581,859,771 -3,234,458,926 117.99%
activities
Net decrease in cash and cash
-1,025,857,660 -1,552,903,815 -33.94%
equivalents
Explanation on the major factors regarding major change of related data
□√Applicable □Not Applicable
Year on year decrease of the Net cash flows generated from operating activities
19
was due to the reduced cash received for goods sold as a result of lower sales
revenue.
Year on year increase of the net cash flows generated from financing activities
was mainly due to the increase in borrowing this year and the dividend payment
of RMB 3 billion in 2021.
Year on year decrease of the net decrease in cash and cash equivalents was
mainly attributable to the increase in net cash flows generated from financing
activities.
Explanation on significant difference between net cash generated from operating
activities and net profit during the reporting period.
□√Applicable □Not Applicable
Please refer to the Note 4 (57) supplementary information to the cash flow
statement of the notes to the consolidated financial statements in the Chapter X
Financial Statements for details.
5. Non- core business analysis
□Applicable □√Not Applicable
6. Analysis of Assets and Liabilities
I. Major changes
Unit: RMB
YOY
End of 2022 Beginning of 2022 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash
8,604,977,725 31.33% 9,569,051,314 36.30% -4.97%
equivalents
Accounts
4,245,541,752 15.46% 2,994,798,227 11.36% 4.10%
receivables
Inventories 2,129,040,820 7.75% 1,974,728,632 7.49% 0.26%
Long-term equity
248,482,822 0.90% 257,251,255 0.98% -0.08%
investments
Fixed assets 5,446,384,369 19.83% 6,029,302,031 22.87% -3.04%
Construction in
718,612,190 2.62% 448,338,672 1.70% 0.92%
progress
Right-of-use
233,622,890 0.85% 306,225,810 1.16% -0.31%
assets
Short-term
1,100,000,000 4.00% 300,000,000 1.14% 2.86%
borrowings
Contract
152,065,025 0.55% 272,274,177 1.03% -0.48%
liabilities
20
Long-term
20,858,057 0.08% 2,087,537 0.01% 0.07%
borrowings
Lease liabilities 193,090,351 0.70% 263,409,414 1.00% -0.30%
Foreign assets account for a relatively high proportion
□Applicable □√Not Applicable
II. The fair value of the assets and liabilities.
Unit: RMB
1.Trading
financial assets
financial 2.Receivables Financial
Item (excluding Subtotal
assets financing liabilities
derivative
financial assets)
Beginning of
100,242,329 201,511,670 301,753,999 0
the period
Loss/profit in
fair value in the -242,329 0 -242,329 0
period
Cumulative
changes in fair
0 0 0 0
value recorded
into equity
Impairment in
0 0 0 0
the period
Purchase in the
100,000,000 3,664,369,012 3,764,369,012 0
period
Sell in the
200,000,000 3,489,217,865 3,689,217,865 0
period
Other changes 0 0 0 0
End of the
0 376,662,817 376,662,817 0
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
21
II. Obtained Major Equity Investment during the Reporting Period
□Applicable □√Not Applicable
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable □√Not Applicable
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
Counterparty Nanchang Land Reserve Center
The land and above-ground buildings in the
Sold assets
Qingyunpu site
Date of sale June 28, 2022
Transaction price (RMB thousand) 759,208.3
Net profit contributed by the Assets to the
listed company from the beginning of the
335,000.1
current period to the selling date (RMB
thousand)
A positive impact on the Company's profits in
Impact of the sale on the Company
2022.
Proportion of net profit contributed by
assets sale to the total net profit of the 36.61%
listed company
Assets sale pricing principle Evaluation Price
Whether it is a related party transaction No
Association with the counterparty No relationship
Whether all the assets involved have
Yes
been transferred
Whether the claims and debts involved
Not applicable
have been completely transferred
Whether the plan is implemented as Yes
22
scheduled, if not, the reason and the
measures taken by the company
Date of disclosure June 30, 2022
The announcement (No. 2022-023) was
Index
published on the website: www.cninfo.com.cn.
II. Sales of Major Equity
□√Applicable □Not Applicable
Counterparty Volvo Lastvagnar Aktiebolag
100% equity of JMC Heavy Duty Vehicle Co.,
Sold equity
Ltd., a wholly owned subsidiary of JMC
Date of sale The deal is still in progress.
Transaction price (RMB thousand) 781,400
Net profit contributed by the equity to
the listed company from the beginning RMB -95,303.30 thousand in 2022.
of the current period to the selling date
One of the measures to achieve the Company's
Impact of the sale on the Company
strategic vision.
Proportion of net profit contributed by
equity sale to the total net profit of the The deal is still in progress.
listed company
Equity sale pricing principle Public bidding process.
Whether it is a related party transaction No.
Association with the counterparty No relationship.
Whether all the equity involved has
No.
been transferred
Whether the plan is implemented as
scheduled, if not, the reason and the Yes.
measures taken by the company
Date of disclosure August 24, 2021
The announcement (No. 2021-047) was
Index
published on the 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 Jiangling Ford Motor
Name of JMC Heavy Duty
Sales Corporation, Technology
companies Vehicle Co., Ltd.
Ltd (Shanghai) Co., Ltd.
Type of Subsidiary Subsidiary Holding subsidiary
23
companies
Engineering and
technology research
Production and sales
and experimental
Sales of vehicles of automobiles,
Main business development, sales of
and service parts. engines and other
vehicles, new energy
automotive parts
vehicles, auto parts,
etc.
Registered 50,000.00 1,323,793.20 200,000.00
capital
Assets 5,227,963.90 732,988.60 443,233.90
Net assets 343,011.30 696,739.60 -6,470.50
Turnover 23,237,876.50 325.20 124,029.60
Operating 109,559.00 -96,000.50 -141,873.10
profit
Net profit 84,544.20 -95,303.30 -106,470.50
Acquisition and disposal of the subsidiaries
□Applicable □√Not Applicable
Description of the main holding and participating companies
None.
10. Structured Entities Controlled by JMC
□Applicable □√Not Applicable
11. Outlook
I. Industry Development
In 2023, China will continue to adhere to the general tone of seeking progress
while maintaining stability and vigorously boost market confidence, with the
strategy of expanding domestic demand implemented. China will also actively
promote the overall improvement of economic performance, so as to achieve
effective improvement in quality and reasonable growth in quantity. We believe
that with the implementation of relevant supporting policies and measures, we
will further stimulate the vitality of market players and consumers. We are fully
confident that the economy will improve throughout the year. In addition, the chip
shortage and other problems are expected to be greatly alleviated in this year, it
is expected that the automobile market will continue to show a stable
development trend in 2023, with growth of about 3%.
Overall market: the sales volume in the whole year is 27.6 million units with YOY
growth of 3%. The policy of stabilizing growth will help stabilize the growth of
automobiles and other commodities.
24
Commercial vehicle market: the sales volume in the whole year is 3.8 million
units. The emission homologation has been switched. Overloading and over-limit
management has been carried out on a regular basis, environmental restrictions
on production have been increased, and the commercial vehicle market has
become more rational.
Passenger vehicle market: the sales volume in the whole year is 23.8 million
units. Re-stocking is expected to drive sales growth.
New energy vehicle market: the sales volume in the whole year is 9 million units
with YOY growth of 35%. Both high supply and demand shall continue the
prosperity of new energy vehicles.
II. Company Strategy
The Company adheres to the vision of “becoming leader in light commercial
vehicle and provider of Ford value products” and the values of “integrity,
dedication, innovation, collaboration”. Commercial vehicles are positioned as
integrated urban and arterial logistics product and service providers to meet
customer needs by providing customized products and integrated services to
create a new business concept of “lifelong partner”. Passenger vehicles make
breakthroughs and great development in small and medium-sized markets, and
create extreme customer experience by providing differentiated products that
meet customer needs. In the future, JMC will take high-quality development as
the main line, and focus on value with lean operation. The Company will transfer
from the scale expansion model of development to lean value growth model. At
the same time, JMC will focus on the core business, and be dedicated in the in-
depth cultivation of segmentation, with customers as the center, enhancing the
whole value chain market awareness, thus actively making the Company’s
products into leaders in the market. The Company will also aim at the new trend
of the automobile industry, and promote the implementation of the “new four
modernization” development strategy of “electrification, intelligent connectivity,
sharing, and autonomous driving”. JMC will plan in such core fields as new
energy vehicle, intelligent connectivity and autonomous driving, etc. Through the
overall coordination and integration of the four modernization, the Company will
accelerate the construction of future-oriented business ecosystem with global
competitiveness.
III. Business Plan
In 2023, the Company plans to achieve the sales volume of 316 thousand units
and the operation revenue of about RMB 31.6 billion, up 12% and 5%
respectively compared with 2022. In order to further improve the management
quality, the Company will devote itself to the following aspects in 2023:、
(1) Continue to consolidate and improve the Company's leading advantages
in the field of light commercial vehicles, improve channel capabilities, and
promote brand upgrading and renewal;
25
(2) Accelerate the expansion of passenger vehicle business, strengthen
customer experience, enhance the competitiveness of distributors, develop
innovative marketing modes, and create the brand image of off-road outdoor
lifestyle;
(3) Accelerate the establishment and promotion of new energy brands,
accelerate the landing of transport capacity operation, promote online, direct
sales, private marketing and other diversified marketing methods, and improve
the penetration rate of new energy products;
(4) Strengthen overseas market insight and new product promotion, and
cooperate with various resources to expand overseas market;
(5) Always insist on taking customers as the center, deeply understand the
market changes and customer needs, continue to innovate, and cooperate in an
efficient way to provide customers with quality products and services;
(6) Solidly promote research and development of new products, manufacture
and launch such products with high quality as brand-new Yuhu, new-generation
light bus, high-end Ford Pickup, new-generation light trucks and various new
energy models, to improve product competitiveness;
(7) Continue to promote digital transformation, and use digital marketing tools
to expand channel capabilities and improve customer experience;
(8) Continue to promote cost reduction, efficiency improvement and lean
management, build an efficient and agile organization, and lay a solid foundation
for the Company's overall strategic development.
IV. Potential Risks and Solutions
In 2023, geopolitical conflicts will continue, the risk of world economic contraction
will intensify, and the global economy will face enormous downward pressure.
China's economy is expected to pick up on the whole under the general principle
of “ensuring stability and pursuing progress while maintaining stability”. However,
affected by the international environment and the implementation of domestic
policies, the speed of economic recovery is uncertain. Under the background of
the implementation of the two-carbon policy and the acceleration of the
transformation of the New Four Modernizations, the competition pattern of the
automobile industry is becoming increasingly fierce. Meanwhile, the price of raw
materials is still high, which brings great challenges to the Company's operation.
In order to maintain steady growth, the Company will focus on the following
aspects:
(1) Be customer-oriented, make in-depth insight into customer needs and
market environment changes, explore new business growth points, and seize the
26
opportunity in the disruptive industry changes;
(2) Continue to accelerate the development and launch of new energy
products, vigorously expand online marketing and transport capacity operation
mode based on the original dealer channels, and become the best partner of
urban green transport capacity;
(3) Break through key overseas strategic markets, adopt dual-brand + dual-
channel strategy, and enhance overseas business scale;
(4) Carefully organize and prepare for the launch of new products,
continuously improve the brand influence and ensure there is volume just after
launch;
(5) Accelerate the digital transformation of the Company, break the data
isolation, realize online products, processes, customers and employees, enhance
customer experience and improve operation efficiency;
(6) Continue to promote cost reduction, cost control and efficiency
improvement, and strengthen the management and control of operating cash
flow to improve the quality of operation;
(7) Strengthen corporate governance, strictly abide by national laws and
regulations, and improve risk assessment and control mechanisms.
The Company will focus on light commercial vehicles with SUVs as the support,
further promote scientific and technological innovation and industrial
transformation, stabilize the leading position of light commercial vehicles, and
improve the sales of passenger vehicles. JMC is to strengthen market
development, promote brand renewal, and continue to consolidate the core
competitiveness of light commercial vehicles. Channel construction and brand
transformation of passenger vehicles will be accelerated to improve market
awareness and customer experience. We will accelerate the development of new
energy vehicles, vigorously expand overseas export business, strengthen the
existing market, and seek incremental markets. The Company shall expand new
business and profit model, and build an ecological platform for future sustainable
development. At the same time it will also focus on the process control and
marketing planning of new programs, so as to achieve the quality, cost and
volume targets. JMC is to accelerate the digital transformation, implement quality
and efficiency improvement actions, improve profitability and create sufficient
cash flow to support high-quality development of the Company.
12. External Research, Communication, and Media Interview to the Company
□√Applicable □Not Applicable
Date Communication Type of Information
Method Object Discussed and
Materials offered
27
April 15, 2022 Other Individual JMC Operating
Investors highlights
May 27, 2022 Other Individual JMC Operating
Investors highlights
September 9, 2022 Telephone Investment JMC Operating
communication institution highlights
September 23 2022 Telephone Investment JMC Operating
communication institution highlights
28
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,
29
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 2022, the Company has hold two Shareholders’ Meetings, and the relevant
contents are as follows:
1. Session of the meeting：2021 Annual Shareholders’ Meeting
The meeting type: annual shareholders’ meeting
Investor participation ratio: 75.15%
Convening date: June 24, 2022
Disclosure date: June 25, 2022
The meeting resolutions:
1. 2021 Work Report of the Board of Directors of JMC;
2. 2021 Work Report of the Supervisory Board of JMC;
3. 2021 Annual Report of JMC and the Extracts from such Annual Report;
4. 2021 Financial Statements of JMC;
5. Proposal on JMC Profit Distribution for Year 2021;
6. Proposal on the Y2022 Routine Related Party Transaction Framework with
JMCG Finance Company;
7. Proposal on the Y2022 Routine Related Party Transaction Framework with
JMCG and its subsidiaries;
8. Proposal on the Y2022 Routine Related Party Transaction Framework with
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its subsidiaries;
9. Proposal on the Y2022 Routine Related Party Transaction Framework with Ford
Motor Company and its subsidiaries;
10. Proposal on the Y2022 Routine Related Party Transaction Framework with
Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
11. Proposal on the Y2022 Routine Related Party Transaction Framework with
Magna PT Powertrain (Jiangxi) Co., Ltd. (formerly known as “GETRAG (Jiangxi)
Transmission Company”)
12. Proposal on the Y2022 Routine Related Party Transaction Framework with
Jiangxi Huaxiang Auto Components Co., Ltd.;
13. Proposal on the Y2022 Routine Related Party Transaction Framework with
Jiangxi JMCG Specialty Vehicles Co., Ltd. and its subsidiaries;
14. Proposal on the Y2022 Routine Related Party Transaction Framework with
China South Industries Group Corporation and its subsidiaries;
15. Proposal on the Y2022 Routine Related Party Transaction Framework with
Jiangxi Jiangling Lear Interior System Co., Ltd.;
16. Proposal on the Y2022 Routine Related Party Transaction Framework with
Nanchang Faurecia Emissions Control Technologies Co., Ltd.;
17. Proposal on Amendment to the Articles of Association of JMC (Year 2022)
2. Session of the meeting：2022 First Special Shareholders’ Meeting
The meeting type: special shareholders’ meeting
Investor participation ratio: 75.00%
Convening date: November 7, 2022
30
Disclosure date: November 8, 2022
The meeting resolutions:
Proposal on Electing Mr. Shengpo Wu 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
Share
Shares at Shares
Change
Term of the Stock restricted at the
Name Position Gender Age in the
Office period- options stock period-
reporting
beginning end
period
Qiu 2020.06.19-
Chairman Male 56 0 0 0 0 0
Tiangao 2023.06.18
Shengpo Vice 2022.11.07-
Male 56 0 0 0 0 0
Wu Chairman 2023.06.18
Ryan 2021.10.18-
Director Male 49 0 0 0 0 0
Anderson 2023.06.18
Xiong Director & 2021.06.25-
Female 58 1,200 0 0 0 1,200
Chunying President 2023.06.18
Director & 2020.06.19-
Jin Wenhui Male 55 0 0 0 0 0
EVP 2023.06.18
Yuan 2021.10.18-
Director Male 54 0 0 0 0 0
Mingxue 2023.06.18
Chen Independent 2020.06.19-
Male 43 0 0 0 0 0
Jiangfeng Director 2023.06.18
Independent 2020.06.19-
Wang Yue Female 44 0 0 0 0 0
Director 2023.06.18
Yu Independent 2021.10.18-
Male 62 0 0 0 0 0
Zhuoping Director 2023.06.18
Chief 2020.06.19-
Xiao Hu Male 54 0 0 0 0 0
supervisor 2023.06.18
Zhang 2021.10.18-
Supervisor Male 43 0 0 0 0 0
Yangyang 2023.06.18
2020.06.19- 0 0
Zhang Jian Supervisor Male 53 40 0 40
2023.06.18
2022.03.16-
Ma Jian Supervisor Male 47 0 0 0 0 0
2023.06.18
2022.03.16-
Li Yanling Supervisor Female 45 0 0 0 0 0
2023.06.18
Ding 2020.06.19-
EVP Male 50 0 0 0 0 0
Wenmin 2023.06.18
2021.10.01-
Joey Zhu CFO Male 40 0 0 0 0 0
2023.06.18
Erik 2021.02.01-
VP Male 58 0 0 0 0 0
Hermann 2023.06.18
2020.06.19-
Wu Xiaojun VP Male 48 0 0 0 0 0
2023.06.18
Xu Lanfeng VP &Board Female 53 2021.04.01- 0 0 0 0 0
31
Secretary 2023.06.18
2021.04.01-
Liu Rangpo VP Male 49 0 0 0 0 0
2023.06.18
Wu 2021.10.01-
VP Female 46 0 0 0 0 0
Jiehong 2023.06.18
Yang 2021.12.01-
VP Male 42 0 0 0 0 0
Shenghua 2023.06.18
2022.08.01-
Sam lo VP Male 43 0 0 0 0 0
2023.06.18
2022.08.01-
Zeng Fafa VP Male 44 0 0 0 0 0
2023.06.18
Anderson 2022.11.25-
VP Male 50 0 0 0 0 0
Liu 2023.06.18
Manto Ex-Vice 2021.06.25-
Male 60 0 0 0 0 0
Wong Chairman 2022.11.06
Chen Ex- 2020.06.19-
Male 49 0 0 0 0 0
Guang Supervisor 2022.03.15
Ding Ex- 2020.06.19-
Male 53 20 0 0 0 20
Zhaoyang Supervisor 2022.03.15
Liu 2020.06.19-
Ex-VP Female 60 0 0 0 0 0
Shuying 2022.05.31
2020.08.01-
Jerry Lin Ex-VP Male 46 0 0 0 0 0
2022.07.31
Xiang 2021.09.01-
Ex-VP Male 47 0 0 0 0 0
Dongping 2022.11.24
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
Shengpo Wu Vice Chairman elected 2022.11.07 Work need.
Ding
EVP employment 2022.06.01 Appointment due to work need.
Wenmin
Sam Lo VP employment 2022.08.01 Appointment due to work need.
Zeng Fafa VP employment 2022.08.01 Appointment due to work need.
Anderson
VP employment 2022.11.25 Appointment due to work need.
Liu
Ex-Vice
Manto Wong Leave 2022.11.06 Work rotation.
Chairman
Chen Guang Ex-Supervisor Leave 2022.03.15 Work rotation.
Ding
Ex-Supervisor Leave 2022.03.15 Work rotation.
Zhaoyang
Liu Shuying Ex-VP Leave 2022.05.31 Retired
Jerry Lin Ex-VP Leave 2022.07.31 Work rotation.
Xiang
Ex-VP Leave 2022.11.24 Work rotation.
Dongping
32
(2). Employment
The current Directors, Supervisors and Senior Executives’ professional
background, main working experience and main responsibilities in the Company:
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. Shengpo Wu, born in 1966, holds a Bachelor’s Degree in Thermal Energy
Engineering from Tsinghua University in Beijing and Master’s Degrees in
Mechanical Engineering and Information Management, respectively, from the
University of Nebraska-Lincoln and the Keller Graduate School of Management of
DeVry University, and is a Group Vice President of Ford, President and Chief
Executive Officer of Ford China, and Vice Chairman of JMC. Mr. Shengpo Wu
held various positions including Vice President and Regional General Manager for
Honeywell Process Solutions in Greater China, President and CEO of Osram’s
Asia-Pacific business, President, Asia Pacific, and a member of the Global
Executive Committee for Whirlpool Corporation, Managing Director and Chief
Operating Officer of Ford China.
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 Electric 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
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. Ms. Xiong Chunying held various positions including Chief
of Quality Management Department, Assistant to the President, Vice President,
President, Executive Vice President, First Executive Vice President, 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
33
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 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
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
34
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, a Director of Appotronics Corporation 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
Electric Mache Technology (Nanjing) Co., Ltd., a Supervisor of Ford Electric
Mache Auto Sales (Shanghai) Co., Ltd and a Supervisor of JMC. Mr. Zhang
Yangyang previously assumed a series 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.
35
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 for 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. Ding Wenming, born in 1972, holds a Bachelor’s Degree in Automobile
Exertion from Wuhan University of Technology, and is an Executive 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, Vice President of JMC.
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 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.
36
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.
Mr. Liu Ranbo, born in 1973, holds a Bachelor’s Degree in Plastic Forming from
Wuhan Automotive Polytechnic University, and is a Vice President of 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,
Sales Director of Jiangling Motors Sales General Company, and Deputy General
Manager of Jiangling Motor Sales 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 of 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.
Mr. Sam Lo, born in 1979, holds a Bachelor's Degree in Mechanical Engineering
from National Taiwan University of S&T, China, a Master's degree in Mechanical
Engineering from National Taiwan University, China, and is a Vice President of
JMC, in charge of manufacturing business of the Company. Mr. Sam Lo held
various positions including Production Superintendent and ME Manager of Ford
Lio Ho Motor Company, VOME Implementation Body Manager and Final
Assembly Manager of Ford Asia & Pacific, Body Area Manager Advisor of
37
Changan Ford Motor Co., Ltd. Harbin Branch, Plant Launch Manager and Plant
Manager of Changan Ford Motor Co., Ltd. Hangzhou Branch.
Mr. Zeng Fafa, born in 1978, holds a Bachelor's Degree in Automotive
Engineering from Nanchang University, China, and is a Vice President of JMC, in
charge of manufacturing business of the Company. Mr. Zeng Fafa held various
positions including Chief of Quality Improvement Section of Quality Control
Department, Deputy Director of Quality Control Department, Director of New
Model Program Department, Director of Quality Control Department, Director of
Quality Control & New Model Program Department, Director of Manufacture
Department, and an Assistant to the President of JMC.
Mr. Anderson Liu, born in 1972, holds a Bachelor’s Degree in Liberal Arts-
Psychology from National Taiwan University, China, a Master’s Degree in Liberal
Arts-Psychology from National Chengchi University, China, and a MBA Degree
from University of Pittsburgh, USA, is a Vice President of JMC and General
Manger of Jiangling Ford Motor Technology (Shanghai) Co., Ltd, in charge of the
passenger vehicle sales business of the Company. Mr. Anderson Liu held various
positions including Financial Analyst, E-Commerce Manager, Research Manager,
Marketing Manager for FLH, Sr. Marketing Manager, VP of VW Branch Operation,
VP of MS for VW Swire, Sales Director, MS Director for FLH, General Manager of
Dealer Network Development and Consumer & Retail Experience for Lincoln
China, and Executive Vice General Manager of Jiangling Motor Sales Co., Ltd.
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
Group Vice
Shengpo Wu Ford 2023.03.01 Y
President
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.
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
38
Nanchang Jiangling Investment Chairman, Legal
Qiu Tiangao N
Co. Ltd. Representative
Nanchang Intelligent New Energy
Qiu Tiangao Chairman N
Vehicle Research Institute
President and
Shengpo Wu Ford Motor (China) Ltd. N
CEO
Shengpo Wu Whirlpool (China) Co., Ltd. Vice Chairman Y
Shanghai Guangdian Electric
Shengpo Wu Director Y
(Group) Co., LTD.
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
Chairman, Head of
Ryan Ford Electric Mach Technology
Power Technology N
Anderson (Nanjing) Co., Ltd
branch
Ryan Ford Technology (China) Holding
Director N
Anderson Limited
Ryan
Ford Technology (China) Holding Director N
Anderson
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.
Jiangxi Jiangling Special Purpose
Jin Wenhui Director N
Vehicle Co., Ltd.
Yuan Chongqing Chang’an Automobile Chairman of the
Y
Mingxue Company Limited Labor Union
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
Independent
Wang Yue Shanghai XinHua Media Co., Ltd. Y
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
39
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.
Yu Zhuoping Appotronics Corporation Limited Director Y
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
Chairman of
Xiao Hu JMCG Y
Supervisory Board
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., Chairman of
Xiao Hu N
Ltd. Supervisory Board
Director, General
Zhang
Ford Motor (China) Ltd. Counsel, Principal Y
Yangyang
of Beijing Branch
Zhang Ford Motor Research (Nanjing)
Supervisor N
Yangyang Co., Ltd.
Zhang Ford Motor Research
Supervisor N
Yangyang Test(Nanjing) Co., Ltd.
Zhang Ford Shuttle Trading (Shanghai)
Supervisor N
Yangyang Co., Ltd.
40
Zhang Lincoln Automobile Sales Service
Supervisor N
Yangyang (Shanghai) Co., Ltd.
Zhang Jiangling Ford Motor Technology
Supervisor N
Yangyang (Shanghai) Co., Ltd.
Zhang Ford Electric Mach Technology
Supervisor N
Yangyang (Nanjing) Co., Ltd.
Zhang Ford Electric Mach Technology
Supervisor N
Yangyang (Nanjing) Co., Ltd.
Zhang Jiangling Ford Motor Technology
Supervisor N
Yangyang (Shanghai) Co., Ltd.
Chairman of the
Zhang Jian JMCG Y
Labor Union
Nanchang Jiangling Investment Chairman of
Zhang Jian N
Co. Ltd. Supervisory Board
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.
Ding
JMCG Director N
Wenming
Jiangling Ford Motor Technology
JoeyZhu Director N
(Shanghai) Co., Ltd.
Hanon Systems (Nanchang) Co.,
JoeyZhu Director N
Ltd.
JoeyZhu Jiangling Motor Sales Co., Ltd. Supervisor N
Executive
JMC Heavy Duty Vehicle Co.,
Wu Xiaojun Director, Legal N
Ltd.
Representative
Executive
Shenzhen Fujiang New Energy Director, Legal
Wu Xiaojun N
Automobile Sales Co., Ltd. Representative
General Manger
Executive
Guangzhou Fujiang New Energy
Wu Xiaojun Director, Legal N
Automobile Sales Co., Ltd.
Representative
Wu Xiaojun Shanxi Yunnei Power Co., Ltd. Director N
41
Jiangling Ford Motor Technology
Liu Rangpo Director N
(Shanghai) Co., Ltd.
Liu Rangpo Jiangling Motor Sales Co., Ltd. General Manager N
JMC Heavy Duty Vehicle Co.,
Wu Jiehong Supervisor N
Ltd.
Wu Jiehong Shanxi Yunnei Power Co., Ltd. Director N
Shenzhen Fujiang New Energy
Wu Jiehong Supervisor N
Automobile Sales Co., Ltd.
Guangzhou Fujiang New Energy
Wu Jiehong Supervisor N
Automobile Sales Co., Ltd.
Anderson Jiangling Ford Motor Technology
General Manager N
Liu (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 Shengpo Wu and
Director Ryan Anderson were paid by Ford. Supervisor Zhang Yangyang was paid
by Ford Motor (China) Ltd.. 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 2022, the
Company paid annual compensation before tax of approximately RMB 1,910
thousand to Director & First EVP Jin Wenhui, paid approximately RMB 1,560
thousand to EVP Ding Wenming, paid approximately RMB 1,390 thousand to VP
Wu Xiaojun, paid approximately RMB 1,370 thousand to VP & Board Secretary Xu
Lanfeng, paid approximately RMB 1,360 thousand to VP Liu Rangpo, paid
approximately RMB 1,430 thousand to VP Wu Jiehong, paid approximately RMB
1,050 thousand to VP Zeng Fafa, paid approximately RMB 630 thousand to
Employee-representative Supervisor Ma Jian, paid approximately RMB 430
thousand to Employee-representative Supervisor Li Yanling. The Company paid
annual compensation before tax of approximately RMB 800 thousand to Ex-VP Liu
Shuying, paid approximately RMB 880 thousand to Ex-employee-representative
Supervisor Chen Guang. The total compensation before tax paid by JMC for the
aforesaid persons was about RMB 12.81 million in the reporting period, including
the long-term incentive of RMB 740 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
42
signed between JMC and Ford & Ford Affiliates. In 2022, the Company should pay
approximately RMB 1,100 thousand to Ford for Director and President Xiong
Chunying, pay approximately RMB 1,100 thousand for CFO Joey Zhu, pay
US$ 500 thousand for VP Erik Hermann, pay RMB 1,100 thousand for VP Yang
Shenghua, pay RMB 460 thousand for VP Sam Lo, pay US$ 440 thousand and
RMB 660 thousand for VP Anderson Liu, pay RMB 640 thousand for Ex-VP Jerry
Lin, pay RMB 3,310 thousand for Ex-VP Xiang Dongping. 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 2022, the Company paid annual compensation before tax of RMB
100 thousand to Independent Director Chen Jiangfeng, Independent Director
Wang Yue, and Independent Director Yu Zhuoping respectively.
Table on compensation of the Directors, Supervisors and Senior Executives in the
reporting period
Unit: RMB’ 000
Compensation Compensation
Present
Name Position Gender Age Before Tax Paid by Related
(Y/N)
Paid by JMC Party (Y/N)
Qiu Tiangao Chairman Male 56 Y 0 Y
Vice
Shengpo Wu Male Y 0 Y
Chairman 56
Ryan
Director Male Y 0 Y
Anderson 49
Xiong Director &
Female Y * Y
Chunying President 58
Director &
Jin Wenhui Male Y 1910 N
EVP 55
Yuan
Director Male Y 0 Y
Mingxue 54
Chen Independent
Male Y 100 N
Jiangfeng Director 43
Independent
Wang Yue Female Y 100 N
Director 44
Independent
Yu Zhuoping Male Y 100 N
Director 62
Chief
Xiao Hu Male Y 0 Y
supervisor 54
Zhang
Supervisor Male Y 0 Y
Yangyang 43
Zhang Jian Supervisor Male 53 Y 0 Y
Ma Jian Supervisor Male 47 Y 630 N
Li Yanling Supervisor Female 45 Y 430 N
Ding Wenmin VP Male 50 Y 1560 N
Joey Zhu CFO Male 40 Y * Y
Erik Hermann VP Male 58 Y * Y
Wu Xiaojun VP Male 48 Y 1390 N
VP &Board
Xu Lanfeng Female Y 1370 N
Secretary 53
Liu Rangpo VP Male 49 Y 1360 N
Wu Jiehong VP Female 46 Y 1430 N
43
Yang
VP Male Y * Y
Shenghua 42
Sam lo VP Male 43 Y * Y
Zeng Fafa VP Male 44 Y 1050 N
Anderson LiuVP Male 50 Y * Y
Ex-Vice
Manto Wong Male N 0 Y
Chairman 60
Ex-
Chen Guang Male N 880 N
Supervisor 49
Ding Ex-
Male N 0 Y
Zhaoyang Supervisor 53
Liu Shuying Ex-VP Female 60 N 800 N
Jerry Lin Ex-VP Male 46 Y * Y
Xiang
Ex-VP Male Y * Y
Dongping 47
Total - - - - 13,110 -
*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
2022.02.14- No matters that should be disclosed
Paper Meeting
02.21 are involved.
1. Proposal on Year 2021 Profit
Distribution;
2. approved the 2021 Annual
Report of the Company and the
Extracts from such Annual Report;
3. approved the 2021 Work Report
of the Board of Directors of the
Company;
4. approved the Company’s 2021
Financial Statements;
2022.03.18- 5. approved the Company’s 2021
Paper Meeting 2022.03.30
03.28 Internal Control Self-assessment
Report;
6. approved the Company’s 2021
Corporate Social Responsibility
Report;
7. approved JMCG Finance
Company Continuous Risk
Assessment Report.
8. approved MC 2021 Assets
Impairment Provisions& Write-off
proposal.
Eighth Session of No matters that should be disclosed
2022.03.28
the Tenth Board are involved.
2022.04.19- Approved the Company’s 2022
Paper Meeting 2022.04.27
04.25 First Quarter Report.
1. approved the personnel changes
of senior executives;
2022.05.20-
Paper Meeting 2022.05.31 2. approved the Notice on Holding
05.27
2021 Annual Shareholders’ Meeting
of JMC.
Ninth Session of No matters that should be disclosed
2022.06.24
the Tenth Board are involved.
Paper Meeting 2022.07.21- 2022.07.29 Approved the personnel changes of
44
07.27 senior executives.
1. approved JMC 2022 Half-year
Report and the Extracts from JMC
2022.08.19- 2022 Half-year Report;
Paper Meeting 2022.08.30
08.26 2. approved JMCG Finance
Company Continuous Risk
Assessment Report.
2022.09.05- No matters that should be disclosed
Paper Meeting
09.09 are involved.
Tenth Session of No matters that should be disclosed
2022.09.23
the Tenth Board are involved.
1. approved the Director Changes
Proposal;
2022.10.12-
Paper Meeting 2022.10.20 2. approved the Notice on Holding
10.18
2022 First Special Shareholders’
Meeting of JMC.
2022.10.18- Approved the Company’s Third
Paper Meeting 2022.10.26
10.24 Quarter Report.
1. elected the Vice Chairman and
members of the special committees
2022.11.18-
Paper Meeting 2022.11.25 under the Board of Directors;
11.24
2. approved the personnel
changes of senior executives.
Approved the 2023 Routine Related
Eleventh Session
2022.12.09 2022.12.13 Party Transaction Forecast
of the Tenth Board
Proposal.
No matters that should be disclosed
Paper Meeting 2022.12.10
are involved.
(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 15 4 11 - - N 1
Shengpo Wu 3 1 2 - - N -
Ryan 15 4 11 - - N 1
Anderson
Xiong 15 4 11 - - N 2
Chunying
Jin Wenhui 15 4 11 - - N 2
Yuan Mingxue 15 - 11 4 - Y -
Chen 15 4 11 - - N 1
Jiangfeng
Wang Yue 15 4 11 - - N 1
Yu Zhuoping 15 4 11 - - N 1
Manto Wong 12 3 7 2 - N 1
Statements on failure to attend Board meetings in person for two consecutive
occasions
45
Director Yuan Mingxue did not attend the Board meetings in person for two
consecutive times due to other official commitments.
(3) Dissent from Directors
□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
Whether the Directors' suggestions on the Company have been adopted
□√Yes □No
Statement of the adoption or not of the Directors’ suggestions on the Company
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. Situation of the Committees under the Board of Directors in the Reporting
Period
(1) Audit Committee
Members:
Chairman: Wang Yue
Member: Ryan Anderson, Yuan Mingxue, Chen Jiangfeng, Yu Zhuoping
Secretary: Joey Zhu
The number of meetings held in the reporting period: five.
The first Audit Committee meeting of 2022 was convened on January 14,
2022. Meeting contents:
Reviewed the 2021 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 matter: None.
The second Audit Committee meeting of 2022 was convened on February 22,
2022. 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: None.
The third Audit Committee meeting of 2022 was convened on March 3, 2022.
Meeting contents:
1.Reviewed the PwC Report;
46
2.Reviewed the 2021 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;
4.Reviewed the 2021 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;
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
The forth Audit Committee meeting of 2022 was convened on June 24, 2022.
Meeting contents:
1.Reviewed the Internal Control Work Report for the first half of 2022 and the
Work Plan for the second half of 2022;
2. Reviewed the PwC Report.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The fifth Audit Committee meeting of 2022 was convened on December 9,
2022. Meeting contents:
1.Reviewed the Internal Control Work Report 2022 and approved the Internal
Audit Work Plan 2023.
2.Reviewed the Asset Impairment Preparation Report 2022 and agreed to
submit it to the Board for review.
3.Reviewed and approved the Financial Statements Audit Schedule 2022.
4. Reviewed the PwC Report.
Important comments and suggestions made: The Audit Committee
recommended the company pay more attention to data protection.
Other performance of duties: None.
Details of the objection to matters: 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.
A Compensation Committee meeting was convened on March 3, 2022.
Meeting contents:
1. Reviewed and approved the Proposal on 2021 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 2022;
3. Reviewed and approved the KPIs for the Company’s senior executives in
2022;
47
5. Reviewed and approved the 2021 Due Diligence Report of the
Compensation Committee.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
(3) Strategy Committee
Members:
Chairman: Qiu Tiangao
Member: Shengpo Wu, Ryan Anderson, Xiong Chunying, Jin Wenhui,
Yuan Mingxue
Secretary: Wu Jiehong
The number of meetings held in the reporting period: one.
A Strategy Committee meeting was convened on September 23, 2022.
Meeting contents:
Review the strategy status report with the theme of Following Development
Trend and Achieving Strategic Breakthrough.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
Note: Mr. Shengpo Wu succeeded Mr. Manto Wong as a member of the
Strategic Committee of the Company in November 2022.
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
11,759
period(persons)
Employees in subsidiaries at the end of reporting period(persons) 580
Total employees at the end of reporting period(persons) 12,339
Total employees paid compensation (persons) 13,118
Retired employees bore retirement benefits in parent company and
779
its subsidiaries
Professional Structure
Employees
Type
(Persons)
Production Worker 7,860
Sales Personnel 660
Technical Personnel 2,977
Finance Personnel 156
Administrative Staff 686
Total 12,339
Educational Level
48
Employees
Type
(Persons)
Master degree and higher 884
Undergraduate degree 3,478
Polytechnic school degree 1,602
Below polytechnic school degree 6,375
Total 12,339
(2) Compensation Policy
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, based on the characteristics of
the business and talents, the company promotes the multi-talent incentive system
with orientation on value, ability and contribution, so as to accelerate the growth of
new automobile talents. The company also strengthens the connection between
personal interests of core talents and the company's medium and long-term
strategic goals, thus driving the achievement of business objectives. 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 2022, 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, establish a platform, provide
resources, 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 2022 training, please refer to the 2022 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
49
or resolution of the Shareholders’ Meeting (Y/N)
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 2022 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) 4.24
Total share capital (share) 863,214,000
Total cash dividend distribution amounts (RMB) (including tax) 366,002,736
Amount of cash dividend (RMB) in other ways (e.g. repurchase of
0
shares)
Total cash dividend amounts (RMB) (including other ways) 366,002,736
Distributable profit (RMB) 7,123,038,093
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 2022 profit distribution: the Company plans to distribute a cash
dividend of RMB 4.24 (including tax) for every 10 shares held. Based on the total
share capital of 863,214,000 shares as of December 31, 2022, the total cash dividend
distribution amounts shall be RMB 366,002,736. 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 2022 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.
50
12. Internal control system construction and implementation during the reporting
period
(1) Internal control construction and implementation
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, 2023
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
Qualitative Criteria Material Weakness: An error that Material Weakness: Unscientific
51
changes the trend of results, decision making process such as
changes profit to loss or loss to incorrect decisions that result in
profit Ineffective anti-fraud process unsuccessful mergers and
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 Please refer to internal control
deficiency over financial reporting
Quantitative Criteria Sheet is more than 0.6% of the total for the criteria for non-financial
assets; Adjustment in the Cash Flow reporting internal control.
Statement is more than 3% of the
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
52
net assets in the Balance Sheet is
more than 0.5% of the Shareholders’
equity; Adjustment of asset or
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, 2022, 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, 2023
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.
53
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
Environmental protection related policies and industry standards
In the process of production and operation, the Company strictly abides by the
Environmental Protection Law, Air Pollution Prevention and Control Law, Water
Pollution Prevention and Control Law, Solid Waste Pollution Prevention and
Control Law, Environmental Impact Assessment Law and industry standards and
other laws and regulations related to environmental protection. Through the
implementation of ISO14001 environmental management system and Ford
Environmental operating system, the Company firmly establishes the belief that
quality and environmental protection are equal, strictly complies with
environmental laws and regulations, constantly reduces the environmental
pollution and resource loss in the manufacturing process, avoids environmental
accidents, and continuously improves environmental behavior.
Situation of administrative permit for environmental protection
In the process of environmental operation control, the Company takes the initiative
to analyze and foresee the current and future hidden worries, actively takes
preventive measures, and makes targeted countermeasures to implement
improvements. In terms of new construction, expansion and reconstruction
projects, the Company should make comprehensive environmental protection
planning and "three simultaneous" assessment, and always implement the
concept of energy saving and low carbon from the design source. The Company
apply for Cast Plant pollutant discharge permit in 2020, valid until June 2023;
Apply for Fushan Plant pollutant discharge permit in 2021, valid until 2024; Re-
apply for Xiaolan Plant pollutant discharge permit in 2022, valid until 2027; Apply
for Axle Plant pollutant discharge permit in 2022, valid until 2027.
Name of company
JMC JMC
or subsidiary
Kind of principal
Wastewater discharge
pollutant and Exhaust emission pollutant
pollutant
specific pollutant
Name of principal Exhaust gas
pollutant and Wastewater (COD, NH-N) (SO2, NOx, smoke, toluol,
specific pollutant xylene）
Mode of discharge Continuous discharge Continuous discharge
Number of
4 146
discharge outlet
Distribution of 1 in Fushan Site, 1 in 33 in Fushan Site, 78 in Xiaolan
discharge outlet Xiaolan Site, 1 in Cast Site, 32 in Cast Plant and 3 in
Plant and 1 in Axle Plant Axle Plant
Discharge "COD: 61mg/L NOx: 74mg/m3;
concentration NH-N: 2.73mg/L NMHC: 0.97mg/m3
54
Applicable Emission Standards for
standard for Atmospheric Pollutants from
pollutant discharge Boilers (GB13271-2014)
Gan EIA [2015] No. 144 Volatile Organic Compounds
Emission Standards - Part 5:
Auto Manufacturing
(DB36/1101.5-2019)
Total amount of COD: 47.01t; NOx: 3.76t
discharge NH-N: 4.07t
Total amount of
COD≤517.39t;
discharge NOx≤5.879t
NH-N≤24.795t
audited
Excessive Meet Standard Meet Standard
discharge
Treatment of pollutants
The Company built a number of zeolite roller +RTO VOCs treatment facilities to
collect and dispose of waste gas in Paintshop. The concentration adsorption
device of zeolite roller utilizes absorption and desorption procedures in three
continuous temperature change process of adsorption - concentration - desorption,
so that the organic waste gas with low concentration and large air volume can be
concentrated into concentrated gas with high concentration and small air volume.
RTO, also known as Regenerative Thermal Oxidizer, oxidizes organic waste gas
into CO2 and H2O at high temperature (≥760℃), so as to purify waste gas and
recycle the heat released during decomposition to realize both environmental
protection and energy saving. The VOCs emission of unit painting in Xiaolan Plant
is 9.57g, down 70% year on year. VOCs emission decreased by around 700 tons
annually.
In 2022, the Company upgraded wastewater treatment and aeration system in
Xiaolan Plant, thus improving biochemical water quality standards and sludge
filtration system capacity. The concentration of COD pollutants in the connected
government platform was reduced from 300mg/l before the project optimization to
less than 50mg/l, which was far lower than the emission limit of 500mg/l required
by the regulations. It was ensured that 100% of the Company's annual sewage
discharge satisfy the criteria. The Company also constructed standardized online
monitoring rooms, special rooms, equipped with monitoring, air conditioning, water
supply and other supporting facilities, so as to become a pilot of government's
environmental inspection while meeting the requirements of regulations.
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-
55
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” and “National pollution source monitoring information
management and sharing platform”.
Relevant information of investment in environmental governance and protection
and payment of environmental protection tax
The Company has invested more than RMB 60 million to build five wastewater
treatment stations, including Fushan Wastewater Treatment Station and Xiaolan
Wastewater Treatment Station, with a treatment capacity of 5,000 tons/day, and
the treated wastewater has reached the national discharge standard steadily. In
order to ensure the standard of exhaust emissions, the Company has been taking
new measures over the years. In 2021, Fushan Plant invested RMB 20 million to
install zeolite wheel +RTO disposal facility, which uses heating and high
temperature combustion technology to react and decompose organic pollutants
into harmless waste gas, so as to achieve the purpose of air purification. In 2022,
the Company spend RMB 30 million on environmental management and operation,
and pay Environmental protection tax of RMB 220 thousand.
Measures and effects taken to reduce carbon emissions during the reporting
period
□√Applicable □Not Applicable
JMC has been adhering to green development principle to provide green, energy-
saving and environment-protection automobiles and responding to national
“double carbon” target, leading low carbon actions. Photovoltaic power generation
shelters were built above Xiaolan, Fushan and 600mu vehicle parking lot and
employees’ parking lots. Annual power generation is 64 million kilowatt hours.
Saving 19,850 tons of standard coal per year; Reduce CO2 emissions by 52,122
tons/year; Reduce SO2 emissions by 1920 tons/year; Reduce NOx emissions by
960 tons/year. In the process of product manufacturing, energy consumption is
reduced by optimizing production scheduling, balancing production, optimizing
process, transforming energy-saving technology, advocating green office and
other measures. In 2022, the Company's comprehensive energy consumption per
million output value decreased by 12% compared with 2021; The comprehensive
energy consumption of the Company's single vehicle decreased by nearly 5%
compared with 2021.
Administrative punishment for environmental problems during the reporting period
None.
Other environmental information that should be disclosed
None.
Other environmental protection related information
None.
2. Corporation Social Responsibilities
JMC 2022 Corporation Social Responsibilities Report has been published on the
website: www.cninfo.com.cn. on the same day with the Annual Report.
56
3. The consolidation and expansion of poverty alleviation achievements and rural
revitalization
The Company has thoroughly implemented the decision and arrangement of the
CPC Central Committee on consolidating and expanding the achievements of
poverty alleviation and comprehensively promoting rural revitalization. According
to the arrangement of Jiangxi Provincial Party Committee and provincial
government and with the support of JMCG, the Company has participated in the
designated assistance work of Xianting Village, Songhu Town, Xinjian District,
Nanchang City, Jiangxi Province.
In 2022, by convening a meeting of village representatives and visiting farmers on
site, and combining industrial structure and unique projects of Xianting Village, the
team created a five-year support plan featuring the development of “three gardens”
(1,000 mu of oilseed rape garden, 100 mu of water chestnut garden and 100 mu
of allium garden), so as to comprehensively improve the profitability of industries
and promote income growth, promote industrial revival of the village, and enhance
the driving force of rural revitalization. With the joint efforts of JMCG and the two
committees of the village, Xianting Village has obtained two indicators for the
construction of common rich model villages. The main entrance roads of the
village have been fully hardened, the drainage system has been perfected, the
corridor of village folk culture has been built, and 16 dilapidated old buildings have
been demolished, over 4000 square meters of ground has been levelled, the
infrastructure has been significantly improved, and the village appearance has
been further promoted.
In 2022, JMC donated RMB 2 million to China Rural Development Foundation to
implement the “Jiangling Xiqiao Project”, with 5 convenient bridges constructed in
Jiangxi and Hunan province. By the end of 2022, JMC has invested a total of RMB
36.6 million to build 422 bridges in 25 provinces (municipalities and autonomous
regions). JMC, which cares for children and assists rural revitalization, has
donated 30 computers to the village committee of Luoyang Village, Dafen Town,
Suichuan County, Jiangxi Province.
The Company won the honor of “2022 Poverty Alleviation Model” and “2022
Corporate Social Responsibility Industry Model” in the 12th China Public Welfare
Festival, and was awarded the “Outstanding Contribution Award for Helping
Poverty Alleviation” by China Rural Development Foundation (formerly China
Foundation for Poverty Alleviation).
57
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 Board and Independent
Directors to abnormal opinions from accounting firm
□Applicable □√Not Applicable
6. Description of changes in accounting policies, accounting estimates, or
correction of major accounting errors compared to the financial report of the
previous year
□Applicable □√Not Applicable
There was no change in accounting policies, accounting estimates, and nor
correction of major accounting errors during the reporting period.
7.Description of changes in the scope of consolidated statements as compared
with the financial statements of the previous year
□Applicable □√Not Applicable
There was no change in the scope of the consolidated statements during the
reporting period.
8. Appointment or Dismissal of Accounting Firm
Current appointed accounting firm
Name PricewaterhouseCoopers Zhong Tian LLP
Compensation (RMB’000) 1,840
Consecutive years offering audit services 21
Names of signed accountants Ye Jun, Xiao Minjie
58
Consecutive years offering audit
Ye Jun 1 year, Xiao Minjie 1 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 2020 Annual Shareholders’ Meeting, JMC appointed
PricewaterhouseCoopers Zhong Tian LLP as JMC’s 2022 to 2024 C-SOX auditor.
In 2022, JMC paid RMB 440 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
Please refer to the Note 7 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
(4) Related credit and debt
□√Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes □√No
59
The Company had no non-operating related credit and debt in the reporting period.
5、Transaction with related financial companies or financial companies that the
company holds
□√Applicable □Not Applicable
Deposit business
Balance at Current amount
Balance at
the
Maximum Deposit Take out the the end of
Related The related beginning of
daily deposit Deposit rate amount amount the period
party relationship the
limit (RMB (RMB (RMB
period(RMB
thousands) thousands) thousands)
thousands)
JMCG
Subsidiary 1.725%-
Finance * 1,059,580 13,280,440 13,453,780 886,240
of JMCG 2.25%
Company
* 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.
Loan business
Balance at Current amount
the Balance at
loan limit Loan beginning Loan Repayment the end of
Related The related
(RMB rate of the amount amount the period
party relationship
thousands) range period (RMB (RMB (RMB
(RMB thousands) thousands) thousands)
thousands)
JMCG
Subsidiary
Finance 1,000,000 2.5% 0 200,000 0 200,000
of JMCG
Company
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance
Subsidiary of JMCG Granting credit 1,300,000 340,330
Company
6. The transactions between the financial company controlled by the company and
its related parties
□Applicable □√Not Applicable
The Company has no controlling financial company.
(7) Other major related party transactions
□√Applicable □Not Applicable
Please refer to the Note 7 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 the 2023
Forecast Routine Related Party 2022.12.13 www.cninfo.com.cn.
Transactions
60
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
Please refer to the Note 4 (16), note 4 (29) and note 7 (5) (b) of the financial
statements in the Chapter X Financial Statements for detail.
Project of which the profit and loss brought for the company reaches more than 10%
of the total profit of the company during the reporting period
□Applicable □√Not Applicable
There was no leasing project of which the profit and loss brought for the Company
reached more than 10% of the total profit of the Company during 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
There was no other major contract in the reporting period.
16. Other Major Events
□√Applicable □Not Applicable
In 2022, the Company received government incentives of approximate RMB 907
million 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
61
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
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.
62
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
63
I. Total shareholders, top ten shareholders, and top ten shareholders holding
unlimited tradable shares
Total shareholders as JMC had 49,715 shareholders, including 44,030 A-share holders, and 5,685 B-share
of the end of the holders, as of December 31, 2022.
reporting period
Total shareholders as JMC had 44,104 shareholders, including 38,404 A-share holders, and 5,700 B-share
of the last month-end holders, as of February 28, 2023.
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
Domestic
Jin Xin 0.71% 6,106,200 1,487,064 0 0
Natural Person
Hong Kong Central Foreign legal
0.64% 5,498,732 1,074,854 0 0
Clearing Limited person
Foreign legal
GAOLING FUND, L.P. 0.63% 5,453,086 0 0 0
person
INVESCO FUNDS Foreign legal
0.44% 3,818,089 -636,755 0 0
SICAV person
BARCLAYS BANK Foreign legal
0.36% 3,137,070 3,137,070 0 0
PLC person
Domestic
Li Yifeng 0.31% 2,653,600 -242,426 0 0
Natural Person
LSV EMERGING
Foreign legal
MARKETS EQUITY 0.23% 1,961,600 0 0 0
person
FUND, L.P.
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 top 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
Jin Xin 6,106,200 B share
Hong Kong Central Clearing Limited 5,498,732 A share
GAOLING FUND, L.P. 5,453,086 B share
INVESCO FUNDS SICAV 3,818,089 B share
BARCLAYS BANK PLC 3,137,070 A share
Li Yifeng 2,653,600 B share
LSV EMERGING MARKETS EQUITY 1,961,600 B share
64
FUND, L.P.
The top 10 shareholders to sell
circulated shares, and the infinite
tradable relationship between None.
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.
Equity status of other listed companies in domestic and aboard
market controlled and participated by the controlling shareholders None
during the reporting period
Change of controlling shareholders
□Applicable □√Not Applicable
The controlling shareholders 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
65
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 status of listed companies in domestic and
aboard market controlled by the actual controlling None
parties 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
66
□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
67
Chapter VIII Preferred Shares
□Applicable □√Not Applicable
JMC had no preferred shares in the reporting period.
68
Chapter IX Bond related Information
□Applicable √Not Applicable
69
Chapter X Financial Statements
Type of Audit Report Standard and Unqualified Opinion
Signature date March 28, 2023
Name of Auditor PricewaterhouseCoopers Zhong Tian LLP
Document No. of Audit Report PwC ZT Shen Zi (2023) No. 10080
70
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2023) 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 2022;
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 shareholder’s 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 Motors as at 31 December 2022, and
their financial performance and cash flows for the year then ended in accordance with the
requirements of 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 judgment, 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.
71
PwC ZT Shen Zi (2023) 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 The audit procedures we performed on expenditures on
and development research and development included:
Please refer to Note 2(14)(e) and We understood, evaluated, and tested the internal controls
Note 4(17) to the financial related to the expenditures on research and development.
statements.
We obtained the breakdown of expenditures of research and
The amount of expenditures on development by project and traced them to the amounts of
research and development was research and development expenses incurred and the amounts
RMB2,018,500,532 during the capitalised recorded in the general ledger.
year ended 31 December 2022, of
which RMB535,170,902 was We performed the following tests on a sample basis:
capitalised. As of 31 December We obtained the details of expenses by nature on
2022, the balance of development selected projects and inspected the supporting
expenditures amounted to documents such as contracts and invoices.
RMB477,233,877. We understood the cost allocation method of the
research and development for each project, reviewed
We identified the expenditures on the process of the collection and allocation of indirect
research and development as key expenses, and verified the reasonableness the indirect
audit matter due to the significant expenses attributable to relevant projects, including
amount of expenditure of research
employment costs and depreciation expenses.
and development incurred, a
portion of which being capitalised We compared the recorded research and development
and the fact that there is costs of the projects to their budgets, and confirmed
significant management’s the progress of the project by interviewing with the
judgment involved in assessing project managers.
whether the criteria of For projects which development expenditures
capitalisation have been met, capitalised, we understood the criteria of capitalisation
particularly included: and the timing of capitalisation determined by
Technical feasibility of the management; we interviewed the project managers and
project reviewed the verification reports and meeting minutes
Likelihood of the generating of at different stages to further confirm the
sufficient future economic reasonableness of the judgment of the management;
benefits we assessed the technical feasibility of the development
Timing of the capitalisation project and the likelihood of the generating of sufficient
future economic benefits by considering the market
information and the Company’s successful
development experience in the past.
Based on the audit procedures performed, the audit evidence
we obtained supports the recognition of the expenditures of
research and development and management's judgment on
capitalisation of the related development expenditures.
72
PwC ZT Shen Zi (2023) 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 2022 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’s financial 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.
73
PwC ZT Shen Zi (2023) 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 judgment 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 on Jiangling Motors’s ability
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 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.
74
PwC ZT Shen Zi (2023) 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 Tian LLP Signing CPA
———————————
Ye Jun (Engagement Partner)
Shanghai, the People’s Republic of China Signing CPA ———————————
28 March 2023 Xiao Minjie
75
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF THE AUDITORS
31 DECEMBER 2022
76
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31 DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated)
Assets Notes 31 December2022 31 December 2021 31 December 2022 31 December 2021
Consolidated Consolidated Company Company
Current assets
Cash and cash equivalents 4(1) 8,604,977,725 9,569,051,314 6,910,646,428 7,706,280,711
Financial assets held for
trading 4(2) - 100,242,329 - -
Derivative financial assets 4(3) 2,972,698 - 2,972,698 -
Notes receivable 4(4) 742,752,730 119,783,900 1,099,742,888 300,000,000
4(5)、
Accounts receivable 14(1) 4,245,541,752 2,994,798,227 2,368,898,327 1,409,320,240
Financing receivables 4(6) 376,662,817 201,511,670 56,868,760 13,725,275
Advances to suppliers 4(7) 277,743,526 497,302,198 277,278,672 496,546,531
4(8)、
Other receivables 14(2) 111,063,372 399,983,736 128,855,851 400,787,837
Inventories 4(9) 2,129,040,820 1,974,728,632 2,129,040,820 1,974,728,632
Current portion of non-
current assets 4(11) 13,851,634 13,236,153 13,851,634 13,236,153
Other current assets 4(10) 1,362,502,624 984,174,056 1,310,164,197 881,324,652
Total current assets 17,867,109,698 16,854,812,215 14,298,320,275 13,195,950,031
Non-current assets
Long-term receivables 4(12) 31,148,044 44,952,638 31,148,044 44,952,638
Long-term equity 4(13)、
investments 14(3) 248,482,822 257,251,255 1,146,033,812 1,103,802,245
Fixed assets 4(14) 5,446,384,369 6,029,302,031 4,961,529,936 5,497,170,652
Construction in progress 4(15) 718,612,190 448,338,672 688,385,553 448,112,420
Right-of-use assets 4(16) 233,622,890 306,225,810 232,666,362 304,449,400
Intangible assets 4(17) 1,195,005,752 1,073,881,961 971,966,227 844,988,965
Development expenditures 4(17) 477,233,877 111,004,350 477,233,877 111,004,350
Deferred tax assets 4(18) 1,250,722,193 1,233,315,188 235,320,874 285,288,625
Total non-current assets 9,601,212,137 9,504,271,905 8,744,284,685 8,639,769,295
TOTAL ASSETS 27,468,321,835 26,359,084,120 23,042,604,960 21,835,719,326
77
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS (CONT'D) AS AT 31 DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated))
31 December 2022 31 December 2021 31 December 2022 31 December 2021
Liabilities and equity Notes Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 4(20) 1,100,000,000 300,000,000 1,100,000,000 300,000,000
Derivative financial liabilities 4(3) - 10,704,619 - 10,704,619
Accounts payable 4(21) 9,015,978,354 9,702,584,830 9,015,584,820 9,702,584,830
Contract liabilities 4(22) 152,065,025 272,274,177 1,011,195 67,392,485
Employee benefits payable 4(23) 915,703,680 766,986,525 824,364,157 690,921,936
Taxes payable 4(24) 193,249,604 287,171,720 110,894,972 111,626,950
Other payables 4(25) 5,672,708,511 5,253,800,805 2,418,186,421 1,985,838,271
Current portion of non-current
liabilities 4(26) 72,680,756 78,039,188 71,491,054 76,893,591
Other current liabilities 4(27) 386,889,542 420,456,813 29,814,619 35,663,765
Total current liabilities 17,509,275,472 17,092,018,677 13,571,347,238 12,981,626,447
Non-current liabilities
Long-term borrowings 4(28) 20,858,057 2,087,537 20,858,057 2,087,537
Lease liabilities 4(29) 193,090,351 263,409,414 192,887,339 262,016,700
Provisions 4(30) 250,762,589 197,587,164 - -
Deferred income 4(31) 60,849,643 49,074,545 60,849,643 49,074,545
Long-term employee benefits
payable 4(32) 51,293,000 55,684,000 51,067,000 55,370,000
Deferred tax liabilities 4(18) 23,305,359 24,000,545 - -
Other non-current liabilities 4(33) 118,240,580 119,777,649 - 108,673,373
Total non-current liabilities 718,399,579 711,620,854 325,662,039 477,222,155
Total liabilities 18,227,675,051 17,803,639,531 13,897,009,277 13,458,848,602
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) (13,484,250) (16,422,750) (13,844,250) (16,684,500)
Surplus reserve 4(37) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 4(38) 7,123,038,093 6,437,603,849 7,025,176,443 6,259,291,734
Total equity attributable to
shareholders of the Company 9,243,817,333 8,555,444,589 9,145,595,683 8,376,870,724
Minority interests (3,170,549) - - -
Total equity 9,240,646,784 8,555,444,589 9,145,595,683 8,376,870,724
TOTAL LIABILITIES AND
EQUITY 27,468,321,835 26,359,084,120 23,042,604,960 21,835,719,326
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
78
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE YEAR ENDED 31
DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated)
2022 2021 2022 2021
Item Notes
Consolidated Consolidated Company Company
Revenue 4(39)、14(4) 30,100,283,842 35,221,306,472 28,100,997,449 32,892,038,392
4(39)、4(45)、
Less: Cost of sales 14(4) (25,812,264,868) (30,117,454,367) (25,020,438,748) (29,110,316,368)
Taxes and surcharges 4(40) (951,394,115) (968,148,993) (919,835,457) (928,747,793)
Selling and distribution expenses 4(41)、4(45) (1,444,894,711) (1,531,808,043) (171,729,499) (247,250,188)
General and administrative expenses 4(42)、4(45) (964,786,345) (1,152,218,590) (875,592,926) (993,790,073)
Research and development expenses 4(43)、4(45) (1,483,329,630) (1,709,014,171) (1,483,329,630) (1,696,132,130)
Financial expenses 4(44) 163,907,346 295,755,557 108,526,076 212,372,641
Including: Interest expenses (49,305,209) (23,640,234) (49,225,042) (23,561,570)
Interest income 236,308,959 300,401,839 180,329,362 216,746,764
Add: Other income 4(48) 943,326,556 551,071,245 942,054,079 550,726,007
Investment income 4(49)、14(5) (36,082,647) (568,716) (35,294,097) (46,544,278)
Including: Share of profit of associates
and joint ventures (8,768,433) (22,245,293) (8,768,433) (21,475,697)
Gains on changes in fair value 4(50) 13,434,988 (10,638,548) 13,677,317 (9,785,809)
Credit impairment losses 4(47) (12,066,846) 14,328,162 5,631,231 3,505,404
Asset impairment losses 4(46) (7,242,768) (43,273,452) (7,242,768) (1,422,816,945)
Gains on disposal of assets 4(51) 391,369,117 16,977,005 391,709,115 26,312,882
Operating profit 900,259,919 566,313,561 1,049,132,142 (770,428,258)
Add: Non-operating income 4(52) 3,788,268 4,606,837 383,365 2,363,699
Less: Non-operating expenses 4(53) (4,481,962) (14,448,952) (4,455,773) (14,140,968)
Total profit 899,566,225 556,471,446 1,045,059,734 (782,205,527)
Less: Income tax expenses 4(54) (36,687,606) 17,694,498 (49,560,101) 15,547,022
Net profit 862,878,619 574,165,944 995,499,633 (766,658,505)
Classified by continuity of operations
Net profit from continuing operations 862,878,619 574,165,944 995,499,633 (766,658,505)
Net profit from discontinued operations - - - -
Classified by ownership of the equity
Minority interests (52,170,549) - - -
Attributable to shareholders of the
Company 915,049,168 574,165,944 995,499,633 (766,658,505)
Other comprehensive income, net of
tax 2,938,500 (4,663,500) 2,840,250 (4,662,750)
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) 2,938,500 (4,663,500) 2,840,250 (4,662,750)
Attributable to minority interests - - - -
Total comprehensive income 865,817,119 569,502,444 998,339,883 (771,321,255)
Attributable to shareholders of the
Company 917,987,668 569,502,444 998,339,883 (771,321,255)
Attributable to minority interests (52,170,549) - - -
Earnings per share
Basic earnings per share (RMB Yuan) 4(55) 1.06 0.67 —— ——
Diluted earnings per share (RMB Yuan) 4(55) 1.06 0.67 —— ——
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
79
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated)
2022 2021 2022 2021
Item Notes
Consolidated Consolidated Company Company
Cash flows (uesd in)/generated from
operating activities
Cash received from sales of goods or rendering
of services 30,379,935,542 39,004,121,378 28,500,883,020 37,770,178,605
Refunds of taxes 186,230,096 - 139,724,259 -
Cash received relating to other operating
activities 4(56) 1,048,761,411 736,780,886 1,012,041,891 613,181,977
Sub-total of cash inflows 31,614,927,049 39,740,902,264 29,652,649,170 38,383,360,582
Cash paid for goods and services (26,012,469,683) (30,184,229,122) (25,251,565,747) (29,501,916,289)
Cash paid to and on behalf of employees (2,236,265,303) (2,621,245,572) (2,042,877,671) (2,458,757,584)
Payments of taxes and surcharges (2,208,513,599) (2,262,657,388) (1,895,305,960) (1,819,787,242)
Cash paid relating to other operating activities 4(56) (2,676,252,416) (2,912,577,172) (1,545,847,293) (1,742,292,716)
Sub-total of cash outflows (33,133,501,001) (37,980,709,254) (30,735,596,671) (35,522,753,831)
Net cash flows (uesd in)/generated from
operating activities 4(57) (1,518,573,952) 1,760,193,010 (1,082,947,501) 2,860,606,751
Cash flows generated uesd in investing
activities
Cash received from disposal of investments 200,000,000 2,500,000,000 - 2,142,000,000
Cash received from returns on investments 1,523,836 15,174,593 - 3,894,456
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 783,318,054 37,460,481 782,994,506 36,440,992
Cash received from disposal of subsidiaries and
other business units 191,100,000 84,615,031 191,100,000 108,000,000
Cash received relating to other investing
activities 4(56) 231,280,443 278,704,216 181,238,794 215,581,457
Sub-total of cash inflows 1,407,222,333 2,915,954,321 1,155,333,300 2,505,916,905
Cash paid to acquire fixed assets, intangible
assets and other long-term assets (1,380,537,113) (1,169,407,698) (1,377,197,659) (1,158,649,784)
Cash paid to acquire investments (100,000,000) (1,800,000,000) (55,924,647) (1,720,252,413)
Cash paid relating to other investing activities (15,828,699) (25,184,522) (15,828,699) (20,697,147)
Sub-total of cash outflows (1,496,365,812) (2,994,592,220) (1,448,951,005) (2,899,599,344)
Net cash flows generated uesd in investing
activities (89,143,479) (78,637,899) (293,617,705) (393,682,439)
Cash flows generated from/(uesd in)
financing activities
Cash received from absorbing investments 49,000,000 - - -
Including: cash received by the subsidiary from
absorbing minority shareholders' investment 49,000,000 - - -
Cash received from borrowings 4,682,667,661 1,484,497,639 4,682,667,661 1,484,497,639
Sub-total of cash inflows 4,731,667,661 1,484,497,639 4,682,667,661 1,484,497,639
Cash repayments of borrowings (3,900,441,579) (1,700,425,493) (3,900,441,579) (1,700,425,493)
Cash payments for distribution of dividends,
profits or interest expenses (230,386,002) (3,002,467,779) (230,386,002) (3,002,467,779)
Cash paid relating to other financing activities 4(56) (18,980,309) (16,063,293) (17,978,248) (15,810,013)
Sub-total of cash outflows (4,149,807,890) (4,718,956,565) (4,148,805,829) (4,718,703,285)
Net cash flows generated from/(uesd in)
financing activities 581,859,771 (3,234,458,926) 533,861,832 (3,234,205,646)
Effect of foreign exchange rate changes on
cash and cash equivalents - - - -
Net decrease in cash and cash equivalents 4(57) (1,025,857,660) (1,552,903,815) (842,703,374) (767,281,334)
Add: Cash and cash equivalents at beginning of
year 4(57) 9,569,051,314 11,121,955,129 7,706,280,711 8,473,562,045
Cash and cash equivalents at end of year 4(57) 8,543,193,654 9,569,051,314 6,863,577,337 7,706,280,711
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
80
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022
(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 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 ended 31 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
Balance at 1 January 2022 863,214,000 839,442,490 (16,422,750) 431,607,000 6,437,603,849 - 8,555,444,589
Movements for the year ended 31 December 2022 - - 2,938,500 - 685,434,244 (3,170,549) 685,202,195
Total comprehensive income
Net profit/(loss) - - - - 915,049,168 (52,170,549) 862,878,619
Other comprehensive income - - 2,938,500 - - - 2,938,500
Total comprehensive income for the year - - 2,938,500 - 915,049,168 (52,170,549) 865,817,119
Capital contributed by owners and capital
decreasesinvested by shareholders
Capital 4(38) - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders - - - - (229,614,924) - (229,614,924)
Balance at 31 December 2022 863,214,000 839,442,490 (13,484,250) 431,607,000 7,123,038,093 (3,170,549) 9,240,646,784
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
81
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022
(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 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
Balance at 1 January 2022 863,214,000 839,442,490 (16,684,500) 431,607,000 6,259,291,734 8,376,870,724
Movements for the year ended
31 December 2022 - - 2,840,250 - 765,884,709 768,724,959
Total comprehensive income
Net profit - - - - 995,499,633 995,499,633
Other comprehensive income - - 2,840,250 - - 2,840,250
Total comprehensive income
for the year - - 2,840,250 - 995,499,633 998,339,883
Profit distribution
Distribution to shareholders 4(38) - - - - (229,614,924) (229,614,924)
Balance at 31 December 2022 863,214,000 839,442,490 (13,844,250) 431,607,000 7,025,176,443 9,145,595,683
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Ding Ni
82
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 2022, 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 FORD E series automobiles
of Ford Motor (China) Co., Ltd. as the dealer; import and export of automobiles and parts;
dealership of used cars; provision of 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
5.
These financial statements were authorised for issue by the Company's Board of Directors
on March 28 2023.
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(25).
83
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 Standard 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.
These financial statements have been prepared 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 2022 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 2022 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 of the company and its subsidiaries 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.
84
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 sales 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 sales 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
sales 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.
85
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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:
86
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 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. The
Group presents long-term receivables that are due within one year from the balance sheet
date (including one year) as non-current assets due within one year.
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.
87
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 receivables financing at fair value
through other comprehensive income is recognised on the basis of ECL.
Giving consideration to reasonable and supportable information that is related to past
events, current conditions and forecasts of future economic conditions and is available
without undue cost or effort at the balance sheet date, 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.
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
recognises the lifetime ECL regardless of whether there exists a significant financing
component.
Except for the above-mentioned notes receivable, accounts receivable and financing
receivables, 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 and identifies it in Stage 1 since
initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1 and Stage 2, 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).
88
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 methods are as follows:
Grouping - Bank acceptance notes State-owned banks and joint stock banks
Customers purchasing using trade acceptance
Grouping - Trade acceptance notes notes
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 - Other receivables Other receivables with the same nature
Grouping - Others Accrued interest on cash at bank
For accounts receivable classified as a portfolio and financing of notes receivable and
receivables resulting from daily operating activities such as sale of goods and provision of
services, 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.
89
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
90
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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-process, finished goods, low-value consumables,
materials in transit and materials on consignment, etc., and are measured at the lower of
cost or net realizable 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, estimated contract fulfilment costs and estimated costs necessary to make the
sale and related taxes.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation method of low value consumables
Low value consumables are amortised into expenses in full when issued for use.
91
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
For long-term equity investments accounted for using the equity method, 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.
92
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
93
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 2 to 10 years 4%-22.32% 9.6% to 42.2%
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.
94
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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, 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.
95
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 to 7 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.
96
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(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)).
(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.
97
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
98
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
99
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Revenue
The Group sells automobiles and automobile parts to distributors or 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) Sale of 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. According to the contract, the delivery is completed after
the products are delivered at the contracted delivery location and acceptance by both
parties. The Group recognises the revenue at the timing of delivery completion.
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 automobile 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.
100
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 at no consideration, 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 Group recorded at the actual amount of borrowings when received the loans at policy-
based preferential interest rates received and the related borrowing costs are calculated on
the basis of the principal amount borrowed and the preferential interest rate under the
policy.
101
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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.
102
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 by the regulations of the Ministry of
Finance. 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 eligible rental waivers on existing lease contracts, 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.
103
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 and vehicles under operating leases, rental income is recognised on
a straight-line basis over the lease term.
(23) Specific Reserve
According to the decision of the State Council on Further Strengthening the work of
production safety(Guofa No.2 2004), the notice of Circular of the State Council on Further
Strengthening the work of enterprise production safety (Guofa No.23 2010) and Measures
for the Administration of the Extraction and Use of Enterprise Production Safety Expenses
(Caizi (2022) No. 136) issued by the Ministry of Finance and the Ministry of Emergency
Response in December 2022, the Group extracted safety production costs at a certain
percentage of its operating revenue in the previous year, which is specifically used for
safety costs.
The Group's production safety expenses, which are extracted in accordance with the
aforementioned national regulations, are included in the cost of relevant products or
current profit or loss, and are also included in special reserves.
When the safety fund is subsequently used for revenue expenditure, the specific reserve
is reduced accordingly. On utilization of the safety fund for fixed assets, the specific
reserve is reduced as the fixed assets are recognised, which is the time when the related
assets are ready for their intended use; in such cases, an amount that corresponds to
thereduction in the specific reserve is recognised in accumulated depreciation with respect
to the related fixed assets. As a consequence, such fixed assets are not depreciated in
subsequent periods.
(24) 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.
104
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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
When the Group distinguishes the different stages of financial instruments, its judgement
on significant increase in credit risk and occurrence of credit impairment is as follows:
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.
105
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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.
According to the contract, the delivery is completed after the products are delivered at the
contracted delivery location and acceptance 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. The Group
recognizes the revenue at the timing of the delivery completion.
(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.
106
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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 2022, the weights of “base”, “bad” and “good” are 68%, 16%
and 16% (2021: 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 2022, the Group has considered the uncertainty under different
macroeconomic scenarios, 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 4.56% 2.02% 7.11%
Consumer price
index 3.45% -33.12% 40.02%
In 2021, the key macroeconomic parameters used in each scenario are listed below:
Scenarios
Base Bad Good
Gross domestic
product 7.81% 4.74% 10.89%
Consumer price
index 1.82% -1.38% 5.02%
107
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(ii) Provision for long-term asset impairment
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 an arm’s length transaction, 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.
108
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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.
109
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) 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, estimated contract
performance costs, 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 and distribution
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
contract performance costs, 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 decline in the value of inventory.
If the actual selling prices, costs to completion, estimated contract performance costs,
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.
(26) Significant changes in accounting policies
The Ministry of Finance released the Circular on Issuing Interpretation No. 15 of
Accounting Standards for Business Enterprises (hereinafter “Interpretation No. 15”) in
2021, and released the Circular on Issuing Interpretation No. 16 of Accounting Standards
for Business Enterprises (hereinafter “Interpretation No. 16”) and Q&A on Implementation
of Accounting Standards for Business Enterprises ,etc. in 2022 and 2023. The financial
statements for the year ended 31 December 2022 have been prepared in accordance with
the above circulars and Q&A, and the impacts on the financial statements of the Group
and the Company are insignificant except the followings.
(a) Accounting treatment for trial run of fixed assets
The Group and the Company implemented the regulation of related to trial run sales of
fixed assets in Interpretation No. 15 from 1 January 2022. This changes in accounting
policies had no impacts on the balance sheet as at 1 January 2022.
110
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
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 Taxable income 15% and 25%
(a)
Value-added tax Taxable value-added amount (Tax 13%, 9% and 6%
(“VAT”) (b) payable 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.
(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%.
(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 Maintenance
and Construction 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 maintenance and construction tax at the rates of 5% and 7%.
111
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(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. Under Article 28 of the
Enterprise Income Tax Law of the People's Republic of China, the income tax rate applicable
to the Company for the year of 2022 is 15% (2021: 15%). In addition, pursuant to the
Announcement on Increasing Pre-tax Deductions in Support of Scientific and Technological
Innovation (Announcement of the Ministry of Finance, the State Taxation Administration, and
the Ministry of Science and Technology [2022] No. 28) issued by the Ministry of Finance, the
State Taxation Administration, and the Ministry of Science and Technology, during the period
from 1 October 2022 to 31 December 2022, the newly purchased equipment of subsidiary the
company could be fully deducted against taxable profit in 2022, and 100% additional
deduction was applicable before tax.
In 2022, 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”), Guangzhou Fujiang New Energy
Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai)
Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of
25% (2021: 25%).
112
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2022 31 December 2021
Cash at bank 7,656,947,735 8,509,470,334
Deposits from a finance company
(a) (Note 7(6)) 886,245,919 1,059,580,980
Interest receivable 61,784,071 -
8,604,977,725 9,569,051,314
(a) As at 31 December 2022, the Group's bank deposits placed with Jiangling Motor Group
Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of
1.725% - 2.25% (2021: 1.725% - 2.25%) on RMBdeposits for the same period.
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 2022 31 December 2021
Structural deposits - 100,242,329
(3) Derivative financial assets and derivative financial liabilities
31 December 2022 31 December 2021
Derivative financial assets -
Forward exchange contracts 2,972,698 -
Derivative financial liabilities -
Forward exchange contracts - 10,704,619
113
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Notes receivable
31 December 2022 31 December 2021
Trade acceptance notes 743,071,151 119,783,900
Less: Provision for bad debts (318,421) -
742,752,730 119,783,900
As at 31 December 2022, the Group had notes receivable from Jiangxi Jiangling Import &
Export Co., Ltd. amounting to RMB600,000,000 (31 December 2021: Nil) (Note 7(6)).
(a) As at 31 December 2022, there were no notes receivable pledged.
(b) As at 31 December 2022, the Group's notes receivable presented as endorsed or
discounted but not yet due are as follows.
Non-terminated
Confirmation
Commercial acceptances 600,000,000
(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
2022, The Group measures the provision for bad debts on the basis of expected credit
losses throughout its life and the related amount is RMB318,421 (31 December 2021: nil).
There is no provision for bad debts recovered or reversed during the year.
(5) Accounts receivable
31 December 2022 31 December 2021
Accounts receivable 4,367,065,120 3,213,330,895
Less: Provision for bad debts (121,523,368) (218,532,668)
4,245,541,752 2,994,798,227
114
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(a) The ageing of accounts receivable is analysed as follows:
31 December 2022 31 December 2021
Within 1 year 4,183,936,645 2,713,109,300
1 to 2 years 12,186,785 128,900,600
Over 2 years 170,941,690 371,320,995
4,367,065,120 3,213,330,895
(b) As at 31 December 2022, 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 1,809,124,109 (1,495,512) 41.43%
Company 2 178,320,397 (76,414) 4.08%
Company 3 105,372,893 (963,329) 2.41%
Company 4 86,707,209 (42,388) 1.99%
Company 5 72,230,000 (72,230,000) 1.65%
2,251,754,608 (74,807,643) 51.56%
(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 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
110,154,214 (110,154,214)
115
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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 2021
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 103,180,418 100% (103,180,418)
Receivables for
automobiles 80,862,880 100% (80,862,880)
184,043,298 (184,043,298)
As at 31 December 2022, The Group assessed the expected credit losses on the related
accounts receivables, the Group considered the receivables cannot be collected,
therefore, full provision was made for those receivables.
(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 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 3,342,241,063 0.04% (1,433,732)
Overdue for 1 to 30
days 191,926,407 0.04% (82,244)
Overdue for 31 to 60
day 60,431,806 1.07% (645,450)
Overdue for 61 to 90
days 28,747,850 2.07% (596,073)
Overdue over 90 days 132,725,554 3.14% (4,170,090)
3,756,072,680 (6,927,589)
116
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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 2021
Book balance Provision for bad debts
Lifetime ECL
Amount (%) 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)
Grouping - Sales of new energy automobiles:
31 December 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 8,803,260 31.06% (2,734,591)
31 December 2021
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 187,009,300 14.67% (27,438,915)
117
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) 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 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 467,350,948 0.30% (1,402,053)
Overdue for 1 to 30 days 16,889,558 0.30% (50,669)
Overdue for 31 to 60 days 1,741,552 0.50% (8,708)
Overdue for 61 to 90 days 1,297,746 0.60% (7,786)
Overdue over 90 days 4,755,162 5.00% (237,758)
492,034,966 (1,706,974)
31 December 2021
Book balance Provision for bad debts
Lifetime ECL
Amount (%) 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)
(iii) The amount of provision for bad debts for the year was RMB35,727,702 and the amount
of provision for bad debts reversed was RMB23,230,284. The reason is that the amounts
for which bad debts had been accrued were recovered in the current period. Among
them, the receivables that had been individually accrued in the previous period were
recovered in the current period in the amount of RMB110,068 and the corresponding
carrying amount was RMB110,068.
118
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Accounts receivable (Cont’d)
(d) As the relevant amounts were confirmed to be uncollectible, the actual carrying amount of
accounts receivable written off during the year was RMB109,506,718 and the amount of
provision for bad debts was RMB109,506,718, of which RMB8,522,812 was written off in
respect of accounts receivable for complete vehicles and RMB100,983,906 was written off
in respect of accounts receivable for new energy subsidies. The above write-offs are not
related transactions and have been approved by the board of directors.
(e) As at 31 December 2022 and 31 December 2021, there were no accounts receivable
pledged.
(6) Financing receivables
31 December 2022 31 December 2021
Bank acceptance notes 376,662,817 201,511,670
The Group endorses the bank acceptance notes as required by daily fund management,
which also met the criteria for derecognition, 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 2022, the Group measures the loss
provision of financing receivables based on the lifetime ECL. As at 31 December 2022,
the acceptors of the Groups’ notes receivable were mainly major state-owned banks or
large and medium-sized banks with good reputation and credit ranking. Therefore, the
Group expected there was no significant loss on related bank acceptance notes arising
from bank default.
As at 31 December 2022, the Group had no pledged bank acceptance notes receivable
presented in financing receivables.
As at 31 December 2022, the Group's bank acceptance notes had been endorsed or
discounted but not yet matured were RMB1,610,132,623 and were derecognised.
119
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Advances to suppliers
(a) The ageing of advances to suppliers is analysed as below:
31 December 2022 31 December 2021
% of total % of total
Amount balance Amount balance
Within 1 year 277,743,526 100% 497,302,198 100%
(b) As at 31 December 2022, the top five advances to suppliers ranked by remaining
balances are analysed as follows:
Amount % of total balance
Company 1 233,947,199 84.23%
Company 2 19,417,115 6.99%
Company 3 14,713,085 5.30%
Company 4 4,680,155 1.69%
Company 5 4,399,737 1.58%
277,157,291 99.79%
(8) Other receivables
31 December 2022 31 December 2021
Receivable for subsidiary disposal 60,900,000 252,000,000
Import working capital 10,000,000 25,000,000
Disposal of assets 4,604,745 17,668,457
Others 35,893,235 106,351,839
111,397,980 401,020,296
Less: Provision for bad debts (334,608) (1,036,560)
111,063,372 399,983,736
120
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(a) The ageing of other receivables is analysed as follows:
31 December 2022 31 December 2021
Within 1 year 47,163,619 398,699,129
Over 1 year 64,234,361 2,321,167
111,397,980 401,020,296
(b) Provision for losses and changes in book balance statements:
Stage 1
12-month ECL (grouping) Total
Provision for bad Provision for bad
Book balance debts debts
31 December 2021 401,020,296 (1,036,560) (1,036,560)
Net decrease in the current
year (289,622,316) — —
Bad debt provision reversed
in the current year — 701,952 701,952
31 December 2022 111,397,980 (334,608) (334,608)
As at 31 December 2022 and 31 December 2021, 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 2022 and 31 December 2021, the Group had no other receivables with
provision for bad debts on the individual basis.
(ii) As at 31 December 2022, the Group’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Expected credit
loss ratio within Provision for
Book balance Rationale
the next 12 bad debts
months
Portfolio accrual：
Receivable for
subsidiary disposal 60,900,000 0.30% (182,700) Expected credit losses
Import working
capital 10,000,000 0.30% (30,000) Expected credit losses
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 35,893,235 0.30% (108,094) Expected credit losses
111,397,980 (334,608)
121
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other receivables (Cont’d)
(ii) As at 31 December 2021, the Group’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Expected credit
loss ratio within Provision for
Book balance Rationale
the next 12 bad debts
months
Portfolio accrual：
Receivable for
subsidiary disposal 252,000,000 0.30% (756,000) Expected credit losses
Import working capital 25,000,000 0.30% (75,000) Expected credit losses
Disposal of assets 17,668,457 0.30% (53,005) Expected credit losses
Others 51,099,064 0.30% (152,555) Expected credit losses
Interest receivable 55,252,775 - - Expected credit losses
401,020,296 (1,036,560)
(c) RMB701,952 of provision for bad debts was reversed in the current year.
(d) As at 31 December 2022, the top five other receivables by the balance of the debtors are listed as
follows:
Provision
% of total for bad
Nature Balance Ageing balance debts
Receivable for
subsidiary More than one
Company 1 disposal 60,900,000 year 5 (182,700)
Within one
Company 2 Prepayment 12,919,400 year 1 (38,758)
Import working Within one
Company 3 capital, etc. 10,231,067 year 9.18%(30,693)
Asset disposal Within one
Company 4 payments, etc. 4,614,745 year 4.14%(13,844)
Platform usage fees Within one
Company 5 receivable 4,510,173 year 4.05%(13,531)
93,175,385 8 (279,526)
(9) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2022 31 December 2021
Provision for Provision for
decline in the decline in the
Book value of Carrying Book value of Carrying
balance inventories amount balance inventories amount
Raw materials 1,077,387,177 (70,415,497) 1,006,971,680 875,837,414 (70,998,768) 804,838,646
Finished goods 695,697,324 - 695,697,324 740,881,390 - 740,881,390
Work in progress 254,199,491 (857,711) 253,341,780 205,597,637 (1,297,098) 204,300,539
Low value
consumables 93,411,573 (537,572) 92,874,001 93,028,528 (4,443,955) 88,584,573
Materials in transit 42,989,505 - 42,989,505 94,075,651 - 94,075,651
Materials
consigned for
processing 37,166,530 - 37,166,530 42,047,833 - 42,047,833
2,200,851,600 (71,810,780) 2,129,040,820 2,051,468,453 (76,739,821) 1,974,728,632
122
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Inventories (Cont’d)
(b) Provision for decline in the value of inventories is analysed as follows:
31
December Increase in the 31 December
2021 current year Decrease in the current year 2022
Provision Reversal Write-off
Raw materials (70,998,768) (8,795,008) 2,712,875 6,665,404 (70,415,497)
Low value
consumables (4,443,955) (537,572) 185,448 4,258,507 (537,572)
Work in
progress (1,297,098) (49,637) 4,288 484,736 (857,711)
(76,739,821) (9,382,217) 2,902,611 11,408,647 (71,810,780)
(c) Provision for decline in the value of inventories is analysed as follows:
Reason for current year
reversal or write-off of provision
Specific basis for determining for decline in the value of
net realisable value inventories
Based on the estimated selling
price, less the estimated costs Increase in the net realisable
Raw materials/Work to completion, estimated value of the provision for
in progress/Low contract performance costs decline in the value of
value and selling and distribution inventories had been made in
consumables expenses and related taxes prior years or sales realised
(10) Other current assets
31 December 2022 31 December 2021
Taxes prepaid, input VAT to be
deducted and to be verified 1,362,502,624 984,174,056
(11) Current portion of non-current assets
31 December 2022 31 December 2021
Current portion of long-term
receivables (Note 4(12)) 13,851,634 13,236,153
123
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term receivables
31 December 2022 31 December 2021
Long-term receivables 48,695,467 64,375,548
Less: Unearned financing income (3,549,703) (5,993,630)
Provision for bad debts (146,086) (193,127)
Current portion of long-term
receivables(Note 4(11)) (13,851,634) (13,236,153)
31,148,044 44,952,638
As at 31 December 2022, the Group's long-term receivables were generated by instalment
collections from disposal of fixed assets, which will be recovered from 2023 to 2026.
124
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments
31 December 2022 31 December 2021
Associates
- Shanxi Yunnei Power Co., Ltd. (“The Power Company”) 211,055,689 220,842,615
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 37,427,133 36,408,640
Less: Provision for impairment of long-term equity investments - -
248,482,822 257,251,255
Associates
Movements for the current year
Share of net Ending
Increase/ profit/(loss) balance of
31 December decreace in the under equity Cash dividends Provision for 31 December Shareholding Voting rights provision for
2021 current period method declared impairment 2022 (%) (%) impairment
The Power
Company 220,842,615 - (9,786,926) - - 211,055,689 40% 40% -
Hanon
Systems 36,408,640 - 1,018,493 - - 37,427,133 19.15% 33.33% -
Total 257,251,255 - (8,768,433) - - 248,482,822 -
Related information of equity in associates is set forth in Note 5(2).
125
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets
31 December 2022 31 December 2021
Fixed assets (a) 5,446,006,505 6,027,890,644
Fixed assets pending for disposal (b) 377,864 1,411,387
5,446,384,369 6,029,302,031
(a) Fixed assets
Machinery and Electronic and other
. Buildings equipment Vehicles Moulds equipment Total
Cost
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
Increase in the
current year
Transfer from
construction in
progress 13,835,772 84,766,479 24,324,999 349,825,432 183,134,214 655,886,896
Other increases - - 2,300,000 - - 2,300,000
Decrease in the
current year
Disposal or
retirement (545,490,834) (17,631,753) (12,393,866) (131,091,542) (39,178,267) (745,786,262)
Others - (124,564,793) - - (54,873,232) (179,438,025)
Reclassification - (281,109,796) 84,516,373 - 196,593,423 -
31 December 2022 2,213,414,020 3,153,309,149 475,545,179 3,454,685,625 4,168,066,138 13,465,020,111
Accumulated
depreciation
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)
Increase in the
current year
Provision (57,544,946) (222,729,119) (56,281,925) (172,955,867) (396,664,981) (906,176,838)
Decrease in the
current year
Disposal or
retirement 261,824,676 12,399,317 9,525,492 112,936,470 36,329,271 433,015,226
Others - 96,947,819 - - 46,229,130 143,176,949
31 December 2022 (419,406,028) (1,788,482,688) (278,327,488) (2,546,577,850) (2,632,387,758) (7,665,181,812)
Provision for
impairment
31 December 2021 - (12,564,527) (2,833,467) (336,857,072) (16,714,643) (368,969,709)
Increase in the
current year
Provision - (565,007) - (31,034) (167,121) (763,162)
Decrease in the
current year
Disposal or
retirement - 737,384 262,387 13,440,664 1,460,642 15,901,077
31 December 2022 - (12,392,150) (2,571,080) (323,447,442) (15,421,122) (353,831,794)
Carrying amount
31 December 2022 1,794,007,992 1,352,434,311 194,646,611 584,660,333 1,520,257,258 5,446,006,505
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
In 2022, depreciation charged to fixed assets amounted to RMB906,176,838 (2021:
RMB887,989,750), 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 RMB744,253,418, RMB2,284,506, RMB94,102,502 and RMB65,536,412 (2021:
RMB694,724,288, RMB1,965,774, RMB125,771,056 and RMB65,528,632), respectively.
The costs of fixed assets transferred from construction in progress amounted to RMB655,886,896
(2021: RMB2,121,335,033).
126
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(i) Temporarily idle fixed assets
As at 31 December 2022, the fixed assets with a carrying amount of approximately
RMB507,898,988 (a cost of RMB1,521,049,605) (31 December 2021: a carrying amount of
approximately RMB862,054,869 and a cost of RMB2,081,185,910) were temporarily idle due
to the reorganisation plan of JMCH and the change of product process, etc. The analysis is
as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 409,240,038 (96,229,817) - 313,010,221
Machinery and
equipment 196,732,613 (126,996,428) (5,630,085) 64,106,100
Vehicles 70,527,743 (52,489,571) (2,473,956) 15,564,216
Moulds 455,442,876 (141,677,729) (312,686,908) 1,078,239
Electronic and
other equipment 389,106,335 (263,110,704) (11,855,419) 114,140,212
1,521,049,605 (680,504,249) (332,646,368) 507,898,988
As at 31 December 2022, the fixed assets with a carrying amount of approximately RMB
467,422,993 (a cost of RMB857,618,344) were temporarily idle due to the reorganisation
transaction of JMCH, which transaction is still in process and the carrying amount of the
related assets was based on the agreed price between both parties, and there was no
further impairment charged during this year.
(ii) Fixed assets with pending certificates of ownership:
Reasons for not obtaining
Carrying amount certificates of ownership
Buildings 10,030,719 Pending procedures
127
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Fixed assets (Cont’d)
(b) Fixed assets pending for disposal
31 December 2022 31 December 2021
Electronic and other equipment 216,104 1,096,021
Machinery and equipment 161,363 280,051
Vehicles 397 35,315
377,864 1,411,387
(15) Construction in progress
31 December 2022 31 December 2021
Provision for Carrying Book Provision for Carrying
Book balance impairment amount balance impairment amount
Projects for
commercial
vehicles 537,796,267 537,796,267 159,669,213 159,669,213
Projects for
passenger
vehicles 87,126,228 87,126,228 118,698,638 118,698,638
Projects for
automobiles
factory 42,929,882 42,929,882 139,257,147 139,257,147
Projects for
automobile
parts factory 5,424,980 5,424,980 8,550,792 8,550,792
Others 46,026,479 (691,646) 45,334,833 22,854,528 (691,646) 22,162,882
719,303,836 (691,646) 718,612,190 449,030,318 (691,646) 448,338,672
128
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Transfer to Transfer to Including:
Budget Increase fixed assets intangible % of project Accumulative Borrowing costs
(In 31 December in the current in the current assets in the 31 December investment in Progress of capitalised capitalised in the
Project name RMB0’000) 2021 year year current year 2022 budget project borrowing costs current year Source of fund
Projects for
commercial
vehicles 210,755 159,669,213 582,720,627 (204,208,617) (384,956) 537,796,267 79% 79% - - Self-owned funds
Projects for
passenger
vehicles 83,455 118,698,638 111,588,358 (143,160,768) - 87,126,228 57% 57% - - Self-owned funds
Projects for
automobiles
factory 329,376 139,257,147 146,410,429 (227,723,073) (15,014,621) 42,929,882 75% 75% - - Self-owned funds
Projects for
automobile
parts factory 24,694 8,550,792 35,296,182 (38,421,994) - 5,424,980 79% 79% - - Self-owned funds
Self-owned funds
Others 210,755 22,854,528 130,600,842 (42,372,444) (65,056,447) 46,026,479 292,897 - and borrowings
449,030,318 1,006,616,438 (655,886,896) (80,456,024) 719,303,836 292,897 -
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
31 December 2021 current year current year 31 December 2022 Reason for provision
Other miscellaneous
and pending The recoverable amount is lower
installation projects (691,646) - - (691,646) than the carrying amount
129
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Right-of-use assets
Buildings
Cost
31 December 2021 362,092,645
Increase in the current year
New lease contracts 1,986,861
Decrease in the current year
Expiration of lease contract (5,140,648)
Early termination of lease (9,795,685)
31 December 2022 349,143,173
Accumulated depreciation
31 December 2021 (55,866,835)
Increase in the current year
Provision (70,119,650)
Decrease in the current year
Expiration of lease contract 5,140,648
Early termination of lease 5,325,554
31 December 2022 (115,520,283)
Provision for impairment
31 December 2021 -
Increase in the current year -
Decrease in the current year -
31 December 2022 -
Carrying amount
31 December 2022 233,622,890
31 December 2021 306,225,810
In 2022, depreciation of right-of-use assets amounted to RMB70,119,650
(2021:RMB41,536,327), of which RMB63,990,089, RMB819,882, RMB4,797,645 and
RMB512,034 were included in cost of sales, selling and distribution expenses, general
and administrative expenses and research and development expenses, respectively
(2021: RMB32,683,225, RMB3,824,867, RMB3,998,038 and RMB1,030,197 were
included in cost of sales, selling and distribution expenses, general and administrative
expenses and research and development expenses, respectively).
130
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Intangible assets/Development expenditures
(a) Intangible assets
After-sales
services
Land use Software use Non-patent management
rights fees technologies mode Others Total
Cost
31 December 2021 755,093,373 255,342,587 779,747,498 36,979,184 1,599,516 1,828,762,158
Increase in the
current year
Purchase in the
current period - - 137,413,132 - - 137,413,132
Transfer from
construction in
progress - 80,456,024 - - - 80,456,024
Internal research
and
development - - 168,941,375 - - 168,941,375
Decrease in the
current year
Disposal (126,129,216) (1,160,305) - - - (127,289,521)
31 December 2022 628,964,157 334,638,306 1,086,102,005 36,979,184 1,599,516 2,088,283,168
Accumulated
amortisation
31 December 2021 (186,339,168) (157,597,674) (333,557,694) (36,979,184) (1,599,516) (716,073,236)
Increase in the
current year
Provision (13,480,034) (34,744,897) (151,199,572) - - (199,424,503)
Decrease in the
current year
Disposal 59,866,979 1,160,305 - - - 61,027,284
31 December 2022 (139,952,223) (191,182,266) (484,757,266) (36,979,184) (1,599,516) (854,470,455)
Provision for
impairment
31 December 2021 - - (38,806,961) - - (38,806,961)
Increase in the
current year - - - - - -
Provision - - - - - -
31 December 2022 - - (38,806,961) - - (38,806,961)
Carrying amount
31 December 2022 489,011,934 143,456,040 562,537,778 - - 1,195,005,752
31 December 2021 568,754,205 97,744,913 407,382,843 - - 1,073,881,961
In 2022, amortisation charged to intangible assets amounted to RMB199,424,503 (2021:
RMB160,287,903), of which RMB48,142, RMB454,024, RMB44,307,505 and
RMB154,614,832 were included in cost of sales, selling and distribution expenses, general
and administrative expenses and research and development expenses (2021: RMB415,534,
RMB363,744, RMB40,110,291 and RMB119,398,334), respectively.
131
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Intangible assets/Development expenditures (Cont’d)
(b) Development expenditures
The Group’s development expenditures are set out below:
Decrease in the current year
Recognised as
31 December Increase in the Recognised in intangible 31 December
2021 current year profit or loss assets 2022
Automobile
products
development
project 111,004,350 535,170,902 - (168,941,375) 477,233,877
Expenditures on research and development of the Group incurred in 2022 amounted to
RMB2,018,500,532 (2021: RMB1,886,139,707) in total, of which RMB1,483,329,630
(2021: RMB1,709,014,171) was recognised in profit or loss for the current period,
RMB535,170,902 (2021: RMB177,125,536) was recognised in development expenditures
for the current period and RMB77,578,667 (2021: RMB66,121,186) transferred from
development expenditures to intangible assets for the current period and RMB457,592,235
(2021: RMB111,004,350) was included in the ending balance of development
expenditures. As at 31 December 2022, the intangible assets developed by the Group
accounted for 36% (31 December 2021: 38%) of the carrying amount of intangible assets.
(18) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2022 31 December 2021
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4,978,763,776 1,120,987,322 4,820,934,400 1,096,537,713
Recoverable losses 3,634,617,217 571,696,850 1,878,611,797 282,043,452
Provision for asset
impairment 1,092,015,809 168,415,220 1,209,522,802 186,548,154
Non-patent technology 208,440,047 50,268,260 155,010,935 34,890,219
Employee education
funds unpaid 88,505,949 13,780,833 67,882,259 10,494,123
Deferred income 60,849,643 9,127,446 49,074,545 7,361,182
Retirement benefits plan 55,374,000 13,438,000 59,941,000 14,147,350
Others 174,643,793 29,512,438 138,426,727 23,420,738
10,293,210,234 1,977,226,369 8,379,404,465 1,655,442,931
Including:
Expected to be
recovered within 1
year (inclusive) 1,399,402,738 1,320,586,445
Expected to be
recovered after 1
year 577,823,631 334,856,486
1,977,226,369 1,655,442,931
132
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities (Cont’d)
(b) Deferred tax liabilities before offsetting
31 December 2022 31 December 2021
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed
assets 2,823,844,034 652,665,271 1,685,457,873 353,019,830
Equity transactions
between parent and
subsidiary 408,000,000 61,200,000 408,000,000 61,200,000
Differences between
the fair value of the
identifiable net assets
and carrying amount
arising from business
combinations
involving enterprises
not under common
control 93,221,436 23,305,359 96,002,180 24,000,545
Amortisation of
intangible assets 56,434,371 12,193,000 45,631,805 7,847,331
Others 2,972,698 445,905 242,329 60,582
3,384,472,539 749,809,535 2,235,334,187 446,128,288
Including:
Expected to be
recovered within 1
year (inclusive) 145,213,640 116,988,634
Expected to be
recovered after 1
year 604,595,895 329,139,654
749,809,535 446,128,288
133
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses for which no deferred tax asset
was recognised are analysed as follows:
31 December 2022 31 December 2021
Deductible temporary differences 1,380,025,289 1,380,010,739
Deductible losses 202,505,688 108,539,538
1,582,530,977 1,488,550,277
(d) Deductible losses for which no deferred tax asset was recognised will be expired in
following years:
31 December 2022 31 December 2021
2024 109,336,011 108,539,538
2025 - -
2026 - -
2027 93,169,677 -
202,505,688 108,539,538
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting are as
follows:
31 December 2022 31 December 2021
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (726,504,176) 1,250,722,193 (422,127,743) 1,233,315,188
Deferred tax liabilities (726,504,176) 23,305,359 (422,127,743) 24,000,545
134
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Provision for asset impairment and losses
Decrease in the current year 31 December
31 December Increase in the Write-
2021 current year Reversal off/Disposal 2022
Provision for bad debts of notes receivable - 318,421 - - 318,421
Provision for bad debts of accounts
receivable 218,532,668 35,727,702 (23,230,284) (109,506,718) 121,523,368
Including: Provision for bad debts on the
individual basis 184,043,298 35,727,702 (110,068) (109,506,718) 110,154,214
Provision for bad debts on the
grouping basis 34,489,370 - (23,120,216) - 11,369,154
Provision for bad debts of other receivables 1,036,560 - (701,952) - 334,608
Provision for bad debts of long-term
receivables 193,127 - (47,041) - 146,086
Sub-total 219,762,355 36,046,123 (23,979,277) (109,506,718) 122,322,483
Provision for decline in the value of
inventories 76,739,821 9,382,217 (2,902,611) (11,408,647) 71,810,780
Provision for impairment of fixed assets 368,969,709 763,162 - (15,901,077) 353,831,794
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 574,236,549 10,145,379 (2,902,611) (27,309,724) 554,169,593
793,998,904 46,191,502 (26,881,888) (136,816,442) 676,492,076
135
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Short-term borrowings
31 December 2022 31 December 2021
Credit loan 1,100,000,000 300,000,000
As at 31 December 2022, the above short-term borrowings were all caused by the discount
of the Company's commercial acceptance bill, which bear the interest rates ranging from
2.35% to 2.75% (31 December 2021: 2.85%).
(21) Accounts payable
31 December 2022 31 December 2021
Payable for automobile parts 8,783,467,597 9,377,900,014
Payable for raw and auxiliary
materials 232,510,757 324,684,816
9,015,978,354 9,702,584,830
As at 31 December 2022, accounts payable with ageing over one year amounted to
RMB652,758,141 (31 December 2021: RMB747,156,926), which mainly represented
materials payable for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.
136
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Contract liabilities
31 December 2022 31 December 2021
Advances for automobiles and
automobile parts 94,400,145 223,779,674
Advances for maintenance and
warranty services 175,905,460 168,272,152
270,305,605 392,051,826
Less: Contract liabilities carried
forward to revenue after 1
year (Note 4(33)) (118,240,580) (119,777,649)
152,065,025 272,274,177
In 2022, contract liabilities amounting to RMB272,274,177 (2021: RMB558,526,846)
included in the carrying amount as at 31 December 2021 were transferred to the revenue of
2022, including advances for automobiles and automobile parts amounting to
RMB223,779,674 (2021: RMB521,367,837), and advances for maintenance and warranty
services amounting to RMB48,494,503 (2021: RMB37,159,009).
(23) Employee benefits payable
31 December 2022 31 December 2021
Short-term employee benefits payable (a) 631,243,123 593,229,732
Defined contribution plans payable (b) 279,041,381 168,161,617
Defined benefit plans payable (c) 2,803,000 2,930,000
Termination benefits payable (d) 2,616,176 2,665,176
915,703,680 766,986,525
(a) Short-term employee benefits
Decrease in
31 December Increase in the the current 31 December
2021 current year year 2022
Wages and salaries,
bonus, allowances
and subsidies 465,474,414 1,757,682,763 (1,768,246,254) 454,910,923
Staff welfare 39,317,102 119,452,745 (99,602,137) 59,167,710
Social security
contributions 17,331,862 131,440,053 (124,639,496) 24,132,419
Including: Medical
insurance 13,375,711 123,693,643 (119,769,236) 17,300,118
Work injury
insurance 3,956,151 7,746,410 (4,870,260) 6,832,301
Housing funds 192,461 187,090,100 (186,814,619) 467,942
Labour union funds
and employee
education funds 70,913,893 60,619,181 (38,968,945) 92,564,129
Other short-term
employee benefits - 7,831,282 (7,831,282) -
593,229,732 2,264,116,124 (2,226,102,733) 631,243,123
137
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2021 year year 2022
Basic pensions 163,081,887 267,975,504 (170,530,049) 260,527,342
Supplementary
pensions - 10,400,000 - 10,400,000
Unemployment
insurance 5,079,730 8,361,902 (5,327,593) 8,114,039
168,161,617 286,737,406 (175,857,642) 279,041,381
(c) Defined benefit plans
Decrease in
31 December Increase in the the current 31 December
2021 current year year 2022
Post-retirement
benefits payable
(Note 4(32)) 2,930,000 2,162,448 (2,289,448) 2,803,000
(d) Termination benefits payable
31 December 2022 31 December 2021
Early retirement benefits payable
(Note 4(32)) 1,278,000 1,327,000
Other termination benefits (i) 1,338,176 1,338,176
2,616,176 2,665,176
(i) In 2022, other termination benefits paid by the Group for termination of the employment
relationship were RMB2,893,734 (2021: RMB16,420,116).
(24) Taxes payable
31 December 2022 31 December 2021
Consumption tax payable 87,601,901 85,326,751
Enterprise income tax payable 55,230,198 170,084,881
Unpaid VAT 24,542,717 434,482
Land use tax payable 4,831,953 6,174,129
Others 21,042,835 25,151,477
193,249,604 287,171,720
138
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Other payables
31 December 2022 31 December 2021
Promotion expenses 2,566,403,266 2,620,282,716
Research and development project
expenses 1,139,399,835 877,392,808
Construction payment 534,127,177 541,897,265
Transportation expenses 239,369,691 273,386,502
Advertising and new product
planning fees 160,966,200 138,500,269
Guarantees payable 111,554,518 131,123,402
Technological transformation project
expenses 51,152,889 61,104,696
Consulting fees 22,274,659 14,322,912
Trademark license fee 13,971,949 15,572,521
Ordinary share dividends payable 6,463,836 6,463,836
Others 827,024,491 573,753,878
5,672,708,511 5,253,800,805
As at 31 December 2022, other payables with ageing over one year of RMB1,696,105,568
(31 December 2021: RMB1,433,335,159) 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 2022 31 December 2021
Current portion of lease liabilities
(Note 4(29)) 72,224,685 77,621,681
Current portion of long-term
borrowings (Note 4(28)) 456,071 417,507
72,680,756 78,039,188
(27) Other current liabilities
31 December 2022 31 December 2021
Provisions expected to be settled
within 1 year (Note 4(30)) 374,617,524 391,365,455
Others 12,272,018 29,091,358
386,889,542 420,456,813
139
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Long-term borrowings
31 December 2022 31 December 2021
Guaranteed loans(a) 2,280,355 2,505,044
Credit loans(b) 19,033,773 -
Less: Current portion of long-term
borrowings (Note 4(26)) (456,071) (417,507)
20,858,057 2,087,537
(a) As at 31 December 2022, the above guaranteed loans were long-term borrowings
amounting to USD 327,421 guaranteed 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.
31 December 2022 31 December 2021
Amount in Amount in
Interest foreign RMB foreign RMB
Starting date Maturity date Currency rate (%) currency equivalent currency equivalent
ICBC Nanchang
Ganjiang Sub - 27 February 27 October
branch 1998 2027 USD 1.5% 327,421 2,280,355 392,905 2,505,044
(b) As at December 31, 2022, the principal amount of bank credit borrowings is repayable in
installments during 2024.
In 2022, the interest rate of long-term borrowings was 1.5-2.5% (2021: 1.5%).
(29) Lease liabilities
31 December 2022 31 December 2021
Lease liabilities(a) 265,315,036 341,031,095
Less: Current portion of non-
current liabilities (Note
4(26)) (72,224,685) (77,621,681)
193,090,351 263,409,414
(a) As at 31 December 2022, the Group has no leases that are not included in lease liabilities
but will result in potential future cash outflows.
140
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2021 year year 2022
Product warranties (a) 569,247,478 381,747,663 (340,962,074) 610,033,067
Provisions for contract
fulfilment 19,705,141 - (4,358,095) 15,347,046
588,952,619 381,747,663 (345,320,169) 625,380,113
Less: Provisions
expected to be
settled within 1
year (Note 4(27)) (391,365,455) (374,617,524)
197,587,164 250,762,589
(a) 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
31 December Increase in the Decrease in the 31 December
2021 current year current year 2022 Reason
Government Subsidy for
grants 49,074,545 13,525,000 (1,749,902) 60,849,643 projects
(a) Government grants
Decrease in the
current year
Asset related/
31 December Increase in the Recognised in 31 December Income
2021 current year other income 2022 related
Research and
development-
related Income
subsidies 48,170,026 1,900,000 (810,319) 49,259,707 related
Equipment
purchasing-
related
subsidies - 11,275,000 (939,583) 10,335,417 Asset related
Income
Others 904,519 350,000 - 1,254,519 related
49,074,545 13,525,000 (1,749,902) 60,849,643
141
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 2022 31 December 2021
Supplementary retirement benefits and
early-retirement benefits eligible for
recognition of provisions 55,374,000 59,941,000
Less: Payable within 1 year (4,081,000) (4,257,000)
51,293,000 55,684,000
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 2022 31 December 2021
Opening balance 59,941,000 67,587,000
Cost of defined benefit plans
recognised in profit or loss for the
current period
- Current service cost 1,161,000 1,346,000
- Past service cost - (14,664,000)
- Actuarial gains or losses recognised
immediately 82,000 800,000
- Net interest 1,744,000 2,463,000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial gains or losses (3,918,000) 6,218,000
Other movements
- Benefits paid (3,636,000) (3,809,000)
Ending balance 55,374,000 59,941,000
142
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 major actuarial assumptions used to determine the present value of defined benefit
plan obligations
31 December 2022 31 December 2021
Discount rate 3.00% 3.00%
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 major actuarial assumptions used to determine the present
value of defined benefit plan obligations is as follows:
Effect on present value of defined benefit
Variation in obligations
assumptions Assumed increase Assumed decrease
Discount rate 0.5% Decrease of 5.6% Increase of 6.4%
Inflation rate 0.5% Increase of 3.7% Decrease of 3.2%
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 2022 31 December 2021
Contract liabilities carried forward to
revenue after 1 year (Note 4(22)) 118,240,580 119,777,649
143
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 newly Bonus Transfer from 31 December
2021 issued share capital surplus Others Sub-total 2022
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 2022, there were 750,840
shares currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted
conditions.
144
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 Bonus Transfer from 31 December
2020 newly issued share capital surplus Others Sub-total 2021
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
145
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Capital surplus
Decrease in
31 December Increase in the the current 31 December
2021 current year year 2022
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
839,442,490 - - 839,442,490
Decrease in
31 December Increase in the the current 31 December
2020 current 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
146
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 balance Other comprehensive income in the income statement for the year ended 31
sheet December 2022
Less: Transfer-out
Attributable to Amount of previous other Attributable to
the parent incurred before comprehensive Less: the parent Attributable to
31 December company after 31 December income tax for income in the Income tax company after the subsidiary
2021 tax 2022 the current year current year expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (16,422,750) 2,938,500 (13,484,250) 3,918,000 - (979,500) 2,938,500 -
Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31
sheet December 2021
Less: Transfer-out
Attributable to Amount of previous other Attributable to
the parent incurred before comprehensive Less: the parent Attributable to
31 December company after 31 December income tax for income in the Income tax company after the subsidiary
2020 tax 2021 the current year current year expenses tax after tax
Other comprehensive income that 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) -
147
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Surplus reserve
Increase in Decrease in
31 December the current the current 31 December
2021 year year 2022
Statutory surplus
reserve 431,607,000 - - 431,607,000
Increase in Decrease in
31 December the current the current 31 December
2020 year year 2021
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 (2021: 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
2022 2021
Retained earnings at the beginning of the year 6,437,603,849 8,863,969,769
Add: Net profit attributable to shareholders of the
parent company for the current year 915,049,168 574,165,944
Less: Ordinary share dividends payable (a) (229,614,924) (3,000,531,864)
Retained earnings at the end of the year 7,123,038,093 6,437,603,849
(a) According to the resolution of the shareholders’ meeting on 24 June 2022, the Company
distributed 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.
According to the resolution of the meeting of Board of Directors on 28 March 2023, the
Board of Directors proposed to distribute cash dividends of RMB0.424 per share to all
shareholders, calculated on the basis of 863,214,000 issued shares, for a total of
RMB366,002,736 (Note 10).
148
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Revenue and cost of sales
2022 2021
Revenue from main operations 29,592,525,919 34,530,048,320
Revenue from other operations 507,757,923 691,258,152
30,100,283,842 35,221,306,472
2022 2021
Cost of sales from main operations 25,336,987,529 29,485,820,650
Cost of sales from other operations 475,277,339 631,633,717
25,812,264,868 30,117,454,367
(a) Revenue and cost of sales from main operations
2022 2021
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 27,069,207,538 23,355,537,374 32,317,182,099 27,809,982,305
Sales of
automobile
parts 2,412,993,540 1,872,040,360 2,101,505,690 1,557,352,106
Automobile
maintenance
services, etc. 110,324,841 109,409,795 111,360,531 118,486,239
29,592,525,919 25,336,987,529 34,530,048,320 29,485,820,650
(b) Revenue and cost of sales from other operations
2022 2021
Revenue from Cost of sales Revenue from Cost of sales
other from other other from other
operations operations operations operations
Sales of
materials 366,469,354 339,411,405 561,673,748 505,559,175
Others 141,288,569 135,865,934 129,584,404 126,074,542
507,757,923 475,277,339 691,258,152 631,633,717
149
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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:
2022
Automobile
Automobile maintenance Materials and
Automobiles parts services, etc. others Total
Revenue from main operations 27,069,207,538 2,412,993,540 110,324,841 - 29,592,525,919
Including: Recognised at a time
point 27,069,207,538 2,412,993,540 - - 29,482,201,078
Recognised within a
certain period - - 110,324,841 - 110,324,841
Revenue from other
operations (i) - - - 507,757,923 507,757,923
27,069,207,538 2,412,993,540 110,324,841 507,757,923 30,100,283,842
2021
Automobile
Automobile maintenance Materials and
Automobiles parts services, etc. others Total
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 (i) - - - 691,258,152 691,258,152
32,317,182,099 2,101,505,690 111,360,531 691,258,152 35,221,306,472
(i) The Group's Revenue from other operations includes sales of materials and technical service
provided, etc. Of which, revenue from sales of materials is recognized at a certain point in time,
and revenue from technical service provided is recognized within a certain period
As at 31 December 2022, the amount of revenue corresponding to the performance obligations
that the Group has signed but has not performed or has not yet performed is RMB270,305,605,
of which the Group expects that RMB94,400,145 and RMB57,664,880 will be recognised as
revenue from the sales of automobiles and parts and revenue from the sales of automobile
maintenance services, etc respectively in 2023, RMB118,240,580 will be recognised as
revenue from automobile maintenance services, etc during 2024 to 2028.
(40) Taxes and surcharges
2022 2021
Consumption tax 690,818,768 760,386,647
City maintenance and construction tax 99,989,565 82,265,926
Educational surcharge 98,742,654 76,717,032
Land use tax 22,286,670 18,625,222
Real estate tax 20,887,510 17,284,111
Stamp duty 18,217,884 12,397,463
Others 451,064 472,592
951,394,115 968,148,993
150
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Selling and distribution expenses
2022 2021
Promotion expenses 413,790,869 462,406,230
Warranties 381,747,663 454,077,121
Employee benefits 214,370,379 189,694,233
Advertising and new product planning fees 187,517,174 186,501,944
Storage expenses 48,853,162 48,592,062
Packaging material expenses 31,608,268 36,696,621
Sales network construction expenses 10,037,336 14,063,346
Depreciation and amortisation expenses 3,558,412 6,154,385
Others 153,411,448 133,622,101
1,444,894,711 1,531,808,043
(42) General and administrative expenses
2022 2021
Employee benefits 544,315,552 576,689,666
Depreciation and amortisation expenses 143,207,652 169,879,385
Trademark license fee 68,813,097 56,532,031
Repair expenses 37,951,031 56,019,261
Consulting expenses 26,261,406 38,531,796
General office expenses 17,095,983 26,545,639
Cartage fee 11,458,649 40,886,163
Others 115,682,975 187,134,649
964,786,345 1,152,218,590
(43) Research and development expenses
2022 2021
Employee benefits 430,170,063 483,915,948
Design fee 304,491,964 378,814,577
Depreciation and amortisation expenses 220,663,278 185,957,163
Materials expenses 197,330,293 204,200,408
Technology development expenses 190,609,379 239,561,528
Others 140,064,653 216,564,547
1,483,329,630 1,709,014,171
151
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(44) Financial expenses
2022 2021
Interest costs 36,417,358 17,868,043
Add: Interest costs on lease liabilities 12,887,851 7,532,316
Less: Government grants - (1,760,125)
Interest expenses 49,305,209 23,640,234
Less: Interest income from cash at bank (220,037,622) (257,779,550)
Other interest income (16,271,337) (42,622,289)
Interest income (236,308,959) (300,401,839)
Exchange gains or losses 22,205,504 (21,273,861)
Others 890,900 2,279,909
(163,907,346) (295,755,557)
(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:
2022 2021
Changes in inventories of finished goods and
work in progress (3,902,524) 137,184,837
Consumed raw materials and low value
consumables, etc. 22,878,764,631 26,762,865,094
Employee benefits 2,556,734,264 2,614,387,917
Depreciation of fixed assets 906,176,838 887,989,750
Amortisation of intangible assets 199,424,503 160,287,903
Depreciation of right-of-use assets 70,119,650 41,536,327
Transportation expenses 610,883,899 803,085,951
Promotion expenses 413,790,869 462,406,230
Warranties 381,747,663 454,077,121
Design fee 304,491,964 378,814,577
Technology development expenses 190,609,379 239,561,528
Advertising and new product planning fees 187,517,174 186,501,944
Fixed asset repair and maintenance expenses
(a) 122,958,397 184,972,267
Others 885,958,847 1,196,823,725
29,705,275,554 34,510,495,171
152
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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 2022, the amount was
RMB5,147,442 (2021: RMB1,066,925).
The lessor exempted the Group from paying the rental of RMB22,851 for the 2022, and
the Group has deducted the above rental waivers against the rental expense for the
current period (2021: RMB47,937).
(46) Asset impairment losses
2022 2021
Losses on decline in the value of inventories 6,479,606 39,635,051
Impairment of fixed assets 763,162 3,638,401
7,242,768 43,273,452
(47) Credit impairment losses
2022 2021
Losses on bad debts of notes receivable 318,421 -
Losses on bad debts of accounts receivable 12,497,418 (15,345,078)
Losses on bad debts of other receivables (701,952) 823,789
Losses on bad debts of long-term receivables (47,041) 193,127
12,066,846 (14,328,162)
(48) Other income
Asset related/
2022 2021 Income related
Supporting funds by
government 906,908,600 516,410,000 Income related
Equipment purchasing-related
subsidies 939,583 - Asset related
Research and development
activities related subsidies 810,319 11,770,150 Income related
Other subsidies related with
daily operation 34,668,054 22,891,095 Income related
943,326,556 551,071,245
153
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Investment income
2022 2021
Losses on discount of financing receivables eligible for
derecognition (15,303,265) (25,013,202)
Investment loss from forward exchange settlement (13,534,785) (20,618,121)
Losses on long-term equity investments under equity
method (8,768,433) (22,245,293)
Investment income from financial assets held for trading 1,523,836 15,174,593
Investment income from disposal of long-term equity
investments - 52,133,307
(36,082,647) (568,716)
There is no significant restriction on the remittance of investment income of the Group.
(50) Gains on changes in fair value
2022 2021
Derivative financial assets and derivative financial
liabilities -
Gains/(Loss) on forward exchange contracts 13,677,317 (6,987,892)
Financial assets at fair value through profit or loss -
Structural deposits (242,329) (3,650,656)
13,434,988 (10,638,548)
(51) Gains on disposal of assets
Amount recognised in
non-recurring profit or
2022 2021 loss in 2022
Gains on disposal of
assets (i) 391,369,117 16,977,005 391,369,117
(i) The gains generated from disposal of land and above-ground buildings of Qingyunpu
Factory in this year was RMB394,117,791.
154
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2022 2021 or loss in 2022
Compensation and penalty
income 3,539,296 3,437,808 3,539,296
Others 248,972 1,169,029 248,972
3,788,268 4,606,837 3,788,268
(53) Non-operating expenses
Amount recognised
in non-recurring profit
2022 2021 or loss in 2022
Losses on scrapping of
assets 2,117,642 11,869,191 2,117,642
Donations 2,007,280 1,995,000 2,007,280
Others 357,040 584,761 357,040
4,481,962 14,448,952 4,481,962
(54) Income tax expenses
2022 2021
Current income tax calculated based
on tax law and related regulations 55,769,297 170,451,319
Deferred income tax (19,081,691) (188,145,817)
36,687,606 (17,694,498)
155
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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:
2022 2021
Total profit 899,566,225 556,471,446
Income tax calculated at applicable tax rates 120,419,762 (149,370,177)
Effect of change in the tax rates 123,447,198 46,112,633
Additional deductions (230,686,396) (166,139,453)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 23,495,176 206,931,524
Tax deduction (1,487,861) -
Non-deductible investment losses 1,315,266 3,221,355
Debt exemption between parent and
subsidiary - 41,735,873
Costs, expenses and losses not deductible
for tax purposes 184,461 16,317,418
Utilisation of the deductible loss and
temporary differences of the
unrecognised deferred tax asset in the
previous period - (16,503,671)
Income tax expenses 36,687,606 (17,694,498)
(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:
2022 2021
Consolidated net profit attributable to ordinary
shareholders of the parent company 915,049,168 574,165,944
Weighted average number of ordinary shares
outstanding issued by the Company 863,214,000 863,214,000
Basic earnings per share 1.06 0.67
(b) 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 2022 (2021: Nil),
diluted earnings per share equalled to basic earnings per share.
156
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2022 2021
Government grants 955,101,654 551,961,290
Guarantees for bidding 33,371,024 39,786,000
Guarantees from distributors 27,191,136 113,421,092
Others 33,097,597 31,612,504
1,048,761,411 736,780,886
(b) Cash paid relating to other operating activities
2022 2021
Research and development expenses 816,368,325 738,436,009
Promotion expenses 476,208,872 374,879,458
Warranties 394,991,987 432,219,371
Advertising expenses 173,112,926 222,689,351
Maintenance expenses 83,223,085 129,000,432
Guarantees 78,907,867 123,112,381
Trademark royalties 64,658,976 37,289,547
Consulting Fees 55,227,003 75,454,111
Others 533,553,375 779,496,512
2,676,252,416 2,912,577,172
(c) Cash received relating to other investing activities
2022 2021
Interest from cash at bank 213,506,326 262,810,420
Other interest 17,774,117 15,893,796
231,280,443 278,704,216
157
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2022 2021
Payments of lease liabilities 18,852,333 14,398,829
Others 127,976 1,664,464
18,980,309 16,063,293
(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
2022 2021
Net profit 862,878,619 574,165,944
Add: Provision for asset impairment (Note 4(46)) 7,242,768 43,273,452
Provision for credit impairment (Note 4(47)) 12,066,846 (14,328,162)
Depreciation of fixed assets (Note 4(14)) 906,176,838 887,989,750
Amortisation of intangible assets (Note 4(17)) 199,424,503 160,287,903
Depreciation of right-of-use assets (Note 4(16)) 70,119,650 41,536,327
Increase in provisions (Note 4(30)) 36,427,494 49,934,971
Gains on disposal of long-term assets (389,251,475) (5,107,814)
Financial expenses (164,683,747) (275,191,314)
Investment income (Note 4(49)) 36,082,647 568,716
(Gains)/Losses on changes in fair value
(Note 4(50)) (13,434,988) 10,638,548
Increase in deferred tax assets (18,386,505) (85,151,198)
Decrease in deferred tax liabilities (695,186) (102,994,619)
Increase in inventories (324,847,715) (134,813,338)
(Increase)/Decrease in operating receivables (2,216,547,690) 196,013,053
(Decrease)/Increase in operating payables (521,146,011) 413,370,791
Net cash flows from operating activities (1,518,573,952) 1,760,193,010
158
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan 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
2022 2021
Cash and cash equivalents at the end of
the year 8,543,193,654 9,569,051,314
Less: Cash and cash equivalents at the
beginning of the year (9,569,051,314) (11,121,955,129)
Net decrease in cash and cash
equivalents (1,025,857,660) (1,552,903,815)
(b) Cash and cash equivalents
31 December 2022 31 December 2021
Cash at bank available for payment at any
time 7,656,947,735 8,509,470,334
Cash at finance company available for
payment at any time 886,245,919 1,059,580,980
8,543,193,654 9,569,051,314
(58) Foreign currency monetary items
31 December 2022
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings -
USD 327,421 6.9646 2,280,355
Other payables -
USD 36,364,457 6.9646 253,263,898
EUR 33,288 7.4229 247,094
253,510,992
159
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 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 involving
JMCH (i) Taiyuan, Shanxi Taiyuan, Shanxi Manufacture and sales of automobiles 100% - enterprises not 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 Sales of automobiles, technical and
(Shanghai)(a) Shanghai Shanghai business information consultation 51% - Set up by investment
(i) According to the resolution of Board of Directors held from 30 April 2021 to 6 May 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 9 August 2021, the listing announcement period
has expired and Volvo Lastvagnar Aktiebolag(“Volvo”) became the intended transferee for the equity transaction. On 23 August 2021, the Company and
Volvo 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 at 31 December 2022, the equity transaction has not yet been completed because the
review process by the relevant state authorities is under approval, so JMCH remains as a subsidiary of the Company and is included in the consolidated
financial statements.
160
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 Interests in other entities (Cont’d)
(1) Equity in subsidiaries (Cont’d)
(a) Subsidiaries with significant minority interests
Total profit or loss attributable to minority
Shareholding of shareholders for the year ended 31 Dividends paid to minority shareholders for the Minority interests as at 31
Subsidiaries minority shareholders December 2022 year ended 31 December 2022 (i) December 2022
Jiangling Ford (Shanghai) 49% (52,170,549) - (3,170,549)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
As at December 31 2022
Non-current
Current assets Non-current assets Total assets Current liabities liabities Total liabities
Jiangling Ford (Shanghai) 348,631,416 94,602,499 443,233,915 449,704,423 - 449,704,423
2022
Total comprehensive Cash flows from operating
Revenue Net profit income activities
(
Jiangling Ford (Shanghai) 124,029,583 (106,470,508) (106,470,508) (20,888,628)
As of December 31 2022, Jiangling Ford (Shanghai) is operating. The Company and Ford have paidRMB51,000,000 and RMB49,000,000 respectively.
As of February 28 2023, the Company and Ford had fully paid-in capital.
161
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
5 Interests in other entities (Cont’d)
(2) Equity in associates
(a) General information of significant associates
Shareholding (%)
Place of registration Direct Indirect
Associate -
The Power Company Taiyuan, Shanxi 40% -
(b) Summarised financial information for significant associates
31 December 2022 31 December 2021
The Power Company The Power Company
Current assets 194,926,320 153,906,457
Non-current assets 426,146,460 421,186,131
Total assets 621,072,780 575,092,588
Current liabilities 107,387,068 35,108,575
Non-current liabilities 152,778 -
Total liabilities 107,539,846 35,108,575
Minority interests 205,413,174 215,993,605
Attributable to shareholders of the parent
company 308,119,760 323,990,408
Share of net assets based on shareholding (i) 205,413,174 215,993,605
Adjustments
- Unrealised profits arising from internal
transactions (15,210,808) (16,004,313)
- Others (ii) 20,853,323 20,853,323
Carrying amount of equity investments in
associates 211,055,689 220,842,615
162
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(2) Equity in associates (Cont’d)
(b) Summarised financial information for significant associates (Cont’d)
From 5 November
2021 (date of the
equity delivery) to
2022 31 December 2021
The Power Company The Power Company
Revenue 92,711,191 4,211,261
Net loss (26,440,535) (7,882,680)
Other comprehensive income - -
Total comprehensive loss (26,440,535) (7,882,680)
Dividends received from associates by the
Group - -
(i) The Group calculated the shares of net 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
2022 2021
Aggregated carrying amount of investments 37,427,133 36,408,640
Aggregate of the following items in proportion
Net profit/(loss) (i) 1,018,493 (3,087,908)
Other comprehensive income (i) - -
Total comprehensive income/(loss) 1,018,493 (3,087,908)
(i) Net profit and other comprehensive income have taken into account the fair value of identifiable
assets and liabilities at the time of acquisition of the investments and the impact of adjustments to
uniform accounting policies.
163
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
6 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.
During 2022, the operating revenue obtained from a single customer of the Group
accounted for more than 10% of the Group's operating revenue (2021: Nil), amounting to
RMB5,907,094,789, or 19.62% of the Group's operating revenue.
7 Related parties and related party transactions
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal Nature of Code of
enterprise registration representative business organisation
Investment and
State-owned Nanchang, asset 91360125MA38L
JIC enterprise China Qiu Tiangao management UR91F
Manufacture and
Foreign United William Clay sales of
Ford enterprise States Ford, Jr. automobiles N/A
(b) Registered capital and changes in major shareholders
31 December Increase in the Decrease in the 31 December
2021 current year current year 2022
JIC 1,000,000,000 - - 1,000,000,000
Ford USD 41,000,000 USD 1,000,000 - USD 42,000,000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
31 December 2022 31 December 2021
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
5(1).
(3) Information of associates
The information of associates is set out in Note 4(13).
164
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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
Jiangxi JMCG Industry Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangxi Lingrui Recycling Resources
Development Corporation Wholly-owned subsidiary of JMCG
Jiangling Material Co., Ltd. Wholly-owned subsidiary of JMCG
JMCG Property Management Co. Wholly-owned subsidiary of JMCG
JMCG Jingma Motors Co., Ltd. Wholly-owned subsidiary of JMCG
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. Wholly-owned subsidiary of JMCG
JMCF Holding subsidiary of JMCG
Jiangxi Jiangling Chassis Co., Ltd. Holding subsidiary of JMCG
Nanchang JMCG Xinchen Auto Component
Co., Ltd. Holding subsidiary of JMCG
Nanchang JMCG Shishun Logistics Co., Ltd. Holding subsidiary of JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting
Co., Ltd. Holding subsidiary of JMCG
Jiangxi Mingfang Auto Parts Industry Co.,
Ltd. Holding subsidiary of JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co.,
Ltd. Holding subsidiary of JMCG
Ford Motor Research & Engineering
(Nanjing) Co., Ltd. Wholly-owned subsidiary of Ford
Ford Global Technologies,LLC Wholly-owned subsidiary of Ford
Ford Motor Co. Thailand Ltd. Wholly-owned subsidiary of Ford
Ford Motor (China) Co., Ltd. Wholly-owned subsidiary of Ford
Ford Trading Company, LLC Wholly-owned subsidiary of Ford
Ford Vietnam Limited Holding subsidiary of Ford
Auto Alliance (Thailand) Co., Ltd. Holding subsidiary of Ford
Ford Otomotiv Sanayi A.S. Holding subsidiary of Ford
Changan Ford Automobile Co., Ltd. Joint venture of Ford
JMCG Jiangxi Engineering Construction Co.,
Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Liancheng Auto
Component Co., Ltd. Subsidiary under indirect control of JMCG
Jiangling Aowei Automobile Spare Part Co.,
Ltd. Subsidiary under indirect control of JMCG
Nanchang Lianda Machinery Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Frame Co., Ltd Subsidiary under indirect control of JMCG
Nanchang Gear Forging Co.,Ltd.(i) Subsidiary under indirect control of JMCG
Jiangxi JMCG Boya brake system Co., Ltd. Subsidiary under indirect control of JMCG
China Changan Group Tianjin Sales Co.,
Ltd. Group subsidiary of JIC’s shareholder
Dali 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
165
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(4) Information of other related parties (Cont'd)
Relationship with the Group
Chongqing Anbo Vehicle Sales Co., Ltd. Group subsidiary of JIC’s shareholder
Guizhou Wanfu Vehicle Sales & Service Co.,
Ltd. Group subsidiary of JIC’s shareholder
Beijing Baiwang Changfu 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
Guizhou Wanjia Automobile Sales and Service
Co. LTD Group subsidiary of JIC’s shareholder
Jiangxi Jiangling Lear Interior System 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 ISUZU Co., Ltd. Joint venture of JMCG
Dibao transportation equipment (Nanchang)
Co., Ltd Joint venture of JMCG
Jiangxi JMCG Specialty Vehicles Co., Ltd. Associate of JMCG
Jiangling Motor Holdings Co., Ltd. Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd. Associate of JMCG
Nanchang Baojiang Steel Processing
Distribution Co., Ltd. Associate of JMCG
Jiangxi JMCG Motorhome Co.,Ltd. Associate of JMCG
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. Associate of JMCG
Nanchang Hengou Industry Co., Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. Associate of JMCG
Jiangling Motor Electricity Vehicle Co., Ltd. Associate of JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Associate of JMCG
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. Associate of JMCG
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. Associate of JMCG
Jiangxi Lingyun Automobile Industry
Technology Co.,Ltd Associate of JMCG
Jiujiang Fuwantong Vehicle Co., Ltd. Associate of JMCG
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Associate of JMCG
(i) In March 2022, NC.Gear Forging Factory was renamed to Nanchang Gear Forging
Co.,Ltd.
166
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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:
Related parties Nature of related party transactions 2022 2021
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Purchase of automobile parts 924,968,624 772,387,021
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of automobile parts 893,746,762 787,759,240
Nanchang Baojiang Steel Processing Distribution Co., Ltd. Purchase of raw materials 853,482,030 967,549,307
Jiangxi Jiangling Chassis Co., Ltd. Purchase of automobile parts 667,746,553 898,433,987
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of automobile parts 592,001,464 513,132,683
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Purchase of automobile parts 591,833,347 470,431,786
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of automobile parts 522,742,154 985,020,418
Faurecia Emissions Control Technologies (Nanchang) Co.,
Ltd. Purchase of automobile parts 463,742,380 477,760,140
Nanchang JMCG Liancheng Auto Component Co., Ltd. Purchase of automobile parts 369,597,043 416,531,044
Nanchang Unistar Electric & Electronics Co., Ltd. Purchase of automobile parts 324,877,090 344,122,534
Ford Purchase of automobile parts 322,131,155 627,489,896
Nanchang JMCG Shishun Logistics Co., Ltd. Purchase of automobile parts 180,558,765 366,945,009
Hanon Systems Purchase of automobile parts 158,047,018 213,213,340
Jiangxi Lingyun Automobile Industry Technology Co., Ltd. Purchase of automobile parts 103,896,591 37,844,846
Nanchang Yinlun Heat-exchanger Co., Ltd. Purchase of automobile parts 102,105,085 112,831,150
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Purchase of automobile parts 101,065,187 105,244,091
JMCG Purchase of automobile parts 88,653,236 179,153,533
Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. Purchase of automobile parts 77,843,750 90,812,109
167
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 2022 2021
Dibao transportation equipment (Nanchang) Co., Ltd. Purchase of automobile parts 72,666,598 92,353,687
Nanchang Lianda Machinery Co., Ltd. Purchase of automobile parts 41,535,015 72,039,671
Changan Ford Automobile Co., Ltd. Purchase of automobile parts 41,230,580 48,145,204
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Purchase of automobile parts 35,235,246 33,875,299
Auto Alliance (Thailand) Company Limited Purchase of automobile parts 32,471,122 45,310,450
Jiangling Material Co., Ltd. Purchase of raw materials 32,216,397 32,138,057
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of automobile parts 28,779,924 41,659,140
Jiangxi Lingrui Recycling Resources Development
Corporation Purchase of automobile parts 21,762,663 8,484,962
Jiangxi JMCG Boya brake system Co., Ltd. Purchase of automobile parts 19,380,235 30,510,070
Jiangling Motor Holdings Co., Ltd. Purchase of automobile parts 17,697,962 43,636,191
Jiangxi ISUZU Engine Co., Ltd. Purchase of automobile parts 15,633,287 20,171,236
The Power Company Purchase of automobile parts 12,857,369 873,543
Ford Otomotiv Sanayi A.S. Purchase of automobile parts 11,853,176 22,119,616
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. Purchase of automobile parts 11,199,030 14,081,765
Jiangling Aowei Automobile Spare Part Co., Ltd. Purchase of automobile parts 10,490,081 18,664,870
Nanchang JMCG Xinchen Auto Component Co., Ltd. Purchase of automobile parts 6,378,562 14,697,466
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Purchase of automobile parts 5,568,158 3,510,953
Nanchang Hengou Industry Co., Ltd. Purchase of automobile parts 3,423,048 3,105,865
168
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 2022 2021
Ford Motor Co. Thailand Ltd. Purchase of automobile parts 3,277,641 3,939,065
Nanchang Gear Forging Co.,Ltd. Purchase of automobile parts 3,004,555 9,391,656
Jiangxi JMCG Industry Co., Ltd. Purchase of automobile parts 174,875 10,268,410
Other related parties Purchase of automobile parts 1,927,294 3,146,015
7,767,801,052 8,938,785,325
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.
169
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 2022 2021
Nanchang JMCG Shishun Logistics Co., Ltd. Transportation, removal fee, etc. 298,629,305 308,005,709
Trademark management fees, technology
Ford Global Technologies, LLC development 246,334,027 278,546,988
Ford Technical services and personnel costs 204,118,407 110,282,579
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Cartage fee, storage fee, etc. 30,384,153 12,343,777
Jiangxi JMCG Industry Co., Ltd. Meals 24,868,735 22,676,641
Ford Motor (China) Co., Ltd. Personnel costs, etc. 21,474,039 16,127,484
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Agency fee, advertising fee, etc. 15,899,222 9,680,267
Ford Otomotiv Sanayi A.S. Technical services and technical development 15,125,422 18,265,089
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Personnel costs 14,496,038 9,082,057
Changan Ford Automobile Co., Ltd. Service fee, labour costs, etc. 8,263,784 21,913,168
JMCG Property Management Co., Ltd. Property fees, etc. 4,362,127 3,352,585
The Power Company Consulting 4,109,652 -
Chongqing Changan Automobile Co., Ltd. Personnel costs 2,458,047 1,680,278
Jiangling Motor Holdings Co., Ltd. Labour fee, rental fee 2,021,395 10,097,592
JMCG Labour fee, rental fee, etc. 1,492,519 1,403,765
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Promotion 1,482,872 183,420
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Warranty and promotion 1,276,480 1,022,766
Chengdu Wanxing Vehicle Sales & Service Co.,
Ltd. Warranty and promotion 1,203,126 608,540
China Changan Group Tianjin Sales Co., Ltd. Warranty and promotion 1,202,470 19,975
170
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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):
Related parties Nature of related party transactions 2022 2021
Chongqing Anfu Vehicle Marketing Co., Ltd. Warranty and promotion 1,168,824 1,153,740
Jiangxi JMCG Specialty Vehicles Co., Ltd. Promotion 1,143,651 1,509,221
JMCG Jiangxi Engineering Construction Co., Ltd. Engineering construction - 202,783,377
Magna PT Powertrain (Jiangxi) Co., Ltd. Design fee, experimental costs - 2,440,812
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Design fee, experimental costs - 2,175,305
Other related parties 5,100,616 8,946,739
906,614,911 1,044,301,874
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
171
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 and provision of services:
Related parties Nature of related party transactions 2022 2021
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Sales of vehicles and accessories, etc. 5,898,939,789 3,009,201,649
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Ltd. Sales of vehicles 472,883,971 424,832,553
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Sales of vehicles and accessories, etc. 258,768,616 108,430,877
Jiangxi JMCG Specialty Vehicles Co., Ltd. Sales of vehicles and accessories 104,259,399 61,352,599
Jiangxi Jiangling Chassis Co., Ltd. Sales of accessories 74,175,180 71,371,856
JMCG Jingma Motors Co., Ltd. Sales of vehicles and accessories 71,361,087 56,901,153
Jiangxi Lingrui Recycling Resources Development
Corporation Sales of waste materials, etc. 69,766,263 91,363,165
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 51,437,264 46,641,322
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Sales of vehicles and accessories 51,205,027 53,876,378
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 48,716,119 47,840,275
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 47,550,057 45,806,320
China Changan Group Tianjin Sales Co., Ltd. Sales of vehicles and accessories 45,104,628 26,458,070
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 41,230,522 39,401,634
Chongqing Anbo Vehicle Sales Co., Ltd. Sales of vehicles and accessories 27,134,967 37,899,577
Jiangxi ISUZU Co., Ltd. Sales of accessories 21,171,806 2,910,489
Beijing Beifang Changfu Vehicle Sales & Service Co.,
Ltd. Sales of vehicles and accessories 17,459,735 12,749,059
Jiangxi Jiangling Lear Interior System Co., Ltd. Sales of accessories 13,331,531 5,759,013
Guizhou Wanjia Automobile Sales and Service Co. LTD Sales of vehicles and accessories 13,260,858 10,893,900
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Sales of accessories 12,877,775 10,779,022
Nanchang Hengou Industry Co., Ltd. Sales of accessories 11,141,173 9,982,170
172
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 and provision of services(Cont'd):
Related parties Nature of related party transactions 2022 2021
Nanchang JMCG Liancheng Auto Component Co., Ltd. Sales of accessories 9,721,317 8,931,828
Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 9,138,891 429,324
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Sales of accessories 4,886,482 35,851,242
JMCG Sales of accessories and labor costs 3,931,336 140,274
Sales of accessories and waste
Jiangxi JMCG Industry Co., Ltd. materials, etc. 3,496,119 3,129,560
Nanchang JMCG Shishun Logistics Co., Ltd. Sales of vehicles and accessories, etc 3,351,832 12,470,469
Nanchang Jiangling HuaXiang Auto Components Co., Ltd. Sales of accessories 3,317,971 3,382,979
Nanchang Lianda Machinery Co., Ltd. Sales of accessories 1,964,144 2,332,429
Jiangling Motor Holdings Co., Ltd. Labor costs 1,150,970 -
Jiujiang Fuwantong Vehicle Co., Ltd. Sales of vehicles and accessories 648,584 7,122,010
Other related parties 3,731,023 8,196,693
7,397,114,436 4,256,437,889
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
173
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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 2022 2021
Jiangling Motor Holdings Co., Ltd. Buildings 4,909 -
Jiangxi JMCG Motorhome Co.,Ltd. Buildings 2,945 -
Jiangling Material Co., Ltd. Buildings - 60,550
Jiangxi ISUZU Co., Ltd. Buildings - 29,708
7,854 90,258
(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 2022 2021
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings - 16,852,582
JMCG Buildings - 182,766
- 17,035,348
174
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 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:
2022 2021
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 549,276 538,978
JMCG 311,629 417,937
860,905 956,915
(c) Guarantee received
Guarantor Guaranteed amount Starting date Ending date Fully performed or not
JMCF 2,280,355 5 March 2001 30 October 2029 Not fully performed
In 2022, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD 2,282,123. As at 31
December 2022, JMCF provided borrowing guarantee to the bank borrowing of USD 327,421, equivalent to RMB2,280,355 (31 December 2021:
USD 392,905, equivalent to RMB2,505,044) for the Group.
175
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(d) Transfer of assets
Related parties Nature of related party transactions 2022 2021
JMCG Jingma Motors Co., Ltd. Sales of fixed assets 4,527,773 -
Jiangxi Lingrui Recycling Resources Development
Corporation Sales of fixed assets 249,367 19,069,865
4,777,140 19,069,865
The pricing on transfer of assets between the Group and 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 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(e) Purchase of assets
Related parties Nature of related party transactions 2022 2021
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Purchase of fixed assets 30,269,160 444,600
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. Purchase of fixed assets 19,523,883 4,946,744
Nanchang JMCG Liancheng Auto Component
Co., Ltd. Purchase of fixed assets 9,660,000 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of fixed assets 456,637 -
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of fixed assets - 2,480,000
59,909,680 7,871,344
The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.
177
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(f) Purchaseof long-term technology license
Related parties Nature of related party transactions 2022 2021
Purchaseof long-term technology
Ford license 129,021,097 -
Purchaseof long-term technology
Ford Otomotiv Sanayi A.S. license 8,392,035 -
137,413,132 -
178
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(g) Provision of technology sharing and distribution service
Related parties Nature of related party transactions 2022 2021
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Engineering and technical service 55,006,000 66,669,000
Ford Technical service 18,690,000 12,450,000
Ford Vietnam Limited Technical service 14,390,000 12,780,000
Ford Motor (China) Co., Ltd. Distribution Services 12,978,451 -
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Technical service 8,155,000 480,000
Ford Trading Company, LLC Technical service 2,206,000 4,795,000
Jiangxi ISUZU Co., Ltd. Technical service 710,000 6,390,000
JMCG Jingma Motors Co., Ltd. Technical service 190,000 -
Ford Otomotiv Sanayi A.S. Technical service - 340,000
112,325,451 103,904,000
The Group’s pricing on technology sharing provided 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 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(5) Related party transactions (Cont’d)
(h) Remuneration of key management
2022 2021
Remuneration of key management 11,606,369 17,375,367
(i) Interest income
2022 2021
JMCF 17,130,577 17,076,393
Cash at bank of the Group deposited with JMCF was calculated based on the bank
annual interest rate for RMBdeposit of 1.725% to 2.25% over the same period (2021:
1.725% to 2.25%).
(j) Interest expenses
2022 2021
JMCF 1,250,000 -
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. - 120,000
Nanchang JMCG Shishun Logistics Co., Ltd. - 30,000
1,250,000 150,000
(k) Purchase of CAFC credit and NEV credit
2022 2021
Jiangling Motor Electricity Vehicle Co., Ltd. 64,474,060 11,186,318
Jiangling Motor Holdings Co., Ltd. 819,000 177,528,302
65,293,060 188,714,620
180
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties
31 December 2022 31 December 2021
Provision for bad Provision for bad
Amount debts Amount debts
Accounts receivable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 1,809,124,109 (1,495,512) 1,055,206,739 (2,469,956)
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 105,372,893 (963,329) 4,511,078 (7,003)
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 60,082,649 (329,953) 70,709,214 (56,476)
JMCG Jingma Motors Co., Ltd. 46,820,892 (140,841) 16,858,567 (59,595)
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 21,973,800 (65,921) - -
Jiangxi JMCG Specialty Vehicles Co., Ltd. 9,109,228 (5,477) 10,889,510 (9,689)
Jiangxi ISUZU Co., Ltd. 3,650,860 (10,953) 534,623 (1,890)
Jiangxi Jiangling Lear Interior System Co., Ltd. 3,326,672 (9,980) 1,430,746 (5,058)
Ford Vietnam Limited 3,250,000 (9,750) - -
Nanchang JMCG Liancheng Auto Component Co., Ltd. 1,773,035 (5,319) 1,655,446 (5,852)
Nanchang JMCG Shishun Logistics Co., Ltd. 1,735,793 (744) - -
Ford Motor (China) Co., Ltd. 1,727,858 (5,184) - -
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 1,340,748 (4,022) 4,113,754 (14,542)
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. - - 3,253,009 (11,499)
Other related parties 3,899,861 (10,790) 5,139,610 (18,170)
2,073,188,398 (3,057,775) 1,174,302,296 (2,659,730)
181
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December 2022 31 December 2021
Provision for bad Provision for bad
Amount debts Amount debts
Other receivables
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 10,231,067 (30,693) 25,000,000 (75,000)
JMCG Jingma Motors Co., Ltd. 4,614,745 (13,844) - -
Jiangling Motor Electricity Vehicle Co., Ltd. - - 31,266,512 (93,800)
Jiangxi Lingrui Recycling Resources Development Corporation - - 17,668,457 (53,005)
Other related parties 4,000 (12) 121,141 (364)
14,849,812 (44,549) 74,056,110 (222,169)
182
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December 31 December
2022 2021
Advances to Nanchang Baojiang Steel
suppliers Processing Distribution Co., Ltd. 233,947,199 399,394,083
Financing Jiangxi Jiangling Motors Imp. & Exp.
receivables Co., Ltd. 50,000,000 -
Jiangxi JMCG Specialty Vehicles
Co., Ltd. 40,000,000 -
JMCG Jingma Motors Co., Ltd. 3,000,000 2,357,022
Jiangxi ISUZU Co., Ltd. 600,000 -
Nanchang JMCG Frame Co., Ltd. - 2,000,000
93,600,000 4,357,022
Jiangxi Jiangling Motors Imp. & Exp.
Notes receivable Co., Ltd. 600,000,000 -
Cash at bank JMCF 886,245,919 1,059,580,980
Short-term
borrowings JMCF 200,000,000 -
In 2022, the sales amount settled by JMCF was RMB13,263,312,181 (2021:
RMB21,188,639,037), of which, the amount of 169,310,000 was settled through the
discounted electronic commercial acceptances which interest paid by buyers. As at
December 31, 2022, the Group’s commercial acceptances amounting to 140,330,000 had
discounted but not yet due (December 31, 2021: 676,750,000) arising under the aforesaid
business. The Group has transferred substantially all the risks and rewards of ownership of
its electronic commercial acceptances and therefore derecognized them.
183
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December 31 December
2022 2021
Accounts Nanchang Jiangling HuaXiang Auto
payable Components Co., Ltd. 538,861,064 476,070,536
Jiangxi Jiangling Lear Interior System Co.,
Ltd. 341,829,498 251,892,398
Magna PT Powertrain (Jiangxi) Co., Ltd. 295,727,129 224,125,697
Jiangxi Jiangling Chassis Co., Ltd. 287,843,287 314,370,464
Jiangxi Zhonglian Intelligent Logistics Co.,
Ltd. 280,456,600 188,395,117
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. 209,344,967 405,329,856
Nanchang JMCG Liancheng Auto
Component Co., Ltd. 168,502,531 162,044,531
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 142,695,801 181,015,647
Ford 63,701,961 112,369,950
Nanchang Unistar Electric & Electronics Co.,
Ltd. 59,831,745 118,507,723
Hanon Systems 52,260,989 51,492,058
Nanchang JMCG Shishun Logistics Co., Ltd. 51,617,596 99,211,184
Jiangxi JMCG Specialty Vehicles Co., Ltd. 48,084,822 46,385,916
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. 48,052,587 61,887,021
Nanchang Yinlun Heat-exchanger Co., Ltd. 38,139,971 38,501,505
Jiangxi Lingge Non-ferrous Metal Die-casting
Co., Ltd. 29,858,865 38,128,081
Dibao transportation equipment (Nanchang)
Co., Ltd. 29,824,381 29,226,123
Jiangxi Lingyun Automobile Industry
Technology Co., Ltd. 22,971,514 9,533,560
JMCG 21,226,897 68,694,580
Jiangxi Lingrui Recycling Resources
Development Corporation 15,959,512 5,669,023
Nanchang Lianda Machinery Co., Ltd. 15,928,121 19,653,964
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. 15,558,679 16,813,329
Jiangling Motor Holdings Co., Ltd. 7,254,527 15,315,388
Jiangxi JMCG Boya brake system Co., Ltd. 6,664,021 14,172,332
Jiangxi Mingfang Auto Parts Industry Co.,
Ltd. 5,244,867 1,920,999
Auto Alliance (Thailand) Company Limited 5,080,988 3,986,161
Jiangling Aowei Automobile Spare Part Co.,
Ltd. 4,202,862 4,402,913
Jiangxi Jiangling group Fuxin Auto Parts Co.,
Ltd. 3,044,022 5,126,842
Changan Ford Automobile Co., Ltd. 2,891,546 10,017,548
Nanchang JMCG Xinchen Auto Component
Co., Ltd. 1,532,286 6,542,386
Jiangling Material Co., Ltd. 1,444,482 2,143,099
Nanchang Hengou Industry Co., Ltd. 998,215 1,537,861
Ford Otomotiv Sanayi A.S. 681,248 2,224,130
Jiangxi ISUZU Engine Co., Ltd. 407,986 7,167,608
Nanchang Gear Forging Co.,Ltd. 356,703 3,008,017
Jiangxi JMCG Industry Co., Ltd. 67,177 2,995,670
Other related parties 1,774,381 2,190,179
2,819,923,828 3,002,069,396
184
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(6) Receivables from and payables to related parties (Cont’d)
31 December 31 December
2022 2021
Other
payables Ford 190,788,653 61,135,567
JMCG Jiangxi Engineering Construction
Co., Ltd. 73,068,908 112,247,451
Ford Global Technologies, LLC 57,966,899 65,331,412
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. 18,560,568 24,120,434
Jiangxi Jiangling Motors Imp. & Exp. Co.,
Ltd. 17,583,786 3,209,698
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. 15,949,537 1,438,427
Ford Motor (China) Co., Ltd. 14,421,987 4,670,514
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. 11,939,889 5,719,260
Nanchang JMCG Shishun Logistics Co.,
Ltd. 7,599,823 7,302,639
Jiangxi Jiangling Group Special Vehicle
Co., Ltd. 6,064,606 11,035,849
Jiangxi JMCG Specialty Vehicles Co., Ltd. 5,156,445 4,590,958
Jiangxi JMCG Industry Co., Ltd. 4,883,512 1,753,181
Ford Otomotiv Sanayi A.S. 4,749,574 4,578,953
Chongqing Changan Automobile Co., Ltd. 2,458,047 1,680,278
Ford Motor Research & Engineering
(Nanjing) Co., Ltd. 2,397,259 2,229,384
Nanchang Unistar Electric & Electronics
Co., Ltd. 1,908,865 966,018
Hanon Systems 1,475,000 1,475,000
Nanchang Baojiang Steel Processing
Distribution Co., Ltd. 1,121,868 2,722,060
Jiangxi Jiangling Lear Interior System Co.,
Ltd. 584,675 1,007,000
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 314,480 4,111,935
JMCG Property Management Co., Ltd. 22,736 1,265,900
Magna PT Powertrain (Jiangxi) Co., Ltd. - 8,783,237
Other related parties 4,536,900 4,521,160
443,554,017 335,896,315
Contract Guizhou Wanfu Vehicle Sales & Service
liabilities Co., Ltd. 1,902,370 376,671
Jiangxi Jiangling Group Special Vehicle
Co., Ltd. 1,143,867 1,790,486
Chongqing Anbo Vehicle Sales Co., Ltd. 1,112,609 357,767
Chengdu Wanxing Vehicle Sales & Service
Co., Ltd. 1,056,081 406,654
Other related parties 1,869,420 1,652,236
7,084,347 4,583,814
Lease Jiangxi Jiangling Motors Imp. & Exp. Co.,
liabilities Ltd. 9,542,357 17,391,559
JMCG 4,732,873 7,027,932
14,275,230 24,419,491
185
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (Cont'd)
(7) Commitments in relation to related parties
Capital commitments 31 December 2022 31 December 2021
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. 20,786,749 -
Jiangxi Jiangling Special Purpose
Vehicle Co., Ltd. 11,091,570 -
Nanchang JMCG Liancheng Auto
Component Co., Ltd. 4,678,200 -
Magna PT Powertrain (Jiangxi) Co.,
Ltd. 3,955,000 -
JMCG Jiangxi Engineering
Construction Co., Ltd. - 270,278,911
40,511,519 270,278,911
Guarantee of commitments in relation to related parties is set out in Note 7(5)(c).
8 Contingencies
As at 31 December 2022, the Group had no contingencies that needed to be disclosed in
the notes to the financial statements.
9 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 are as follows:
31 December 2022 31 December 2021
Buildings, machinery and equipment 484,700,000 1,040,550,000
186
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
10 Subsequent events
(1) Profit distribution
According to the resolution at the Board of Directors’ meeting on 28 March 2023, the
Board of Directors proposed that the Company distributes cash dividends of RMB0.424
per share to all shareholders. Based on the issued shares of 863,214,000, the proposed
cash dividends totalled RMB366,002,736.
11 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 continuously 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(3)).
187
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group, were expressed in RMBas at 31 December 2022 and 31 December
2021 as follows:
31 December 2022
USD EUR Total
Financial assets
denominated in
foreign currency -
Derivative financial
assets 808,826 2,163,872 2,972,698
Financial liabilities
denominated in
foreign currency -
Current portion of
long-term
borrowings 456,071 - 456,071
Long-term borrowings 1,824,284 - 1,824,284
Other payables 253,263,898 247,094 253,510,992
255,544,253 247,094 255,791,347
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
188
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 31 December 2022, for the financial assets and liabilities dominated in foreign
currencies, if the RMBhad strengthened/weakened by 10% against the USD while all
other variables had been held constant, the Group’s net profit would have been
approximately RMB21,592,894 (31 December 2021: approximately RMB10,422,046)
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 2022, the Group’s short-term borrowings of
RMB1,100,000,000 (31 December 2021: RMB300,000,000) were fixed-rate borrowings,
and long-term borrowings of USD327,421 (31 December 2021: USD392,905) were fixed-
rate contracts, long-term borrowings of RMB19,033,773 (31 December 2021: Nil) were
fixed-rate borrowings, therefore there was no significant cash flow interest rate risk.
As at 31 December 2022 and 31 December 2021, 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 at 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 size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.
189
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
11 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 2022, the Group had no significant collateral or other credit
enhancements held as a result of the debtor’s mortgage (31 December 2021: 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, 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 2022
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,100,000,000 - - - 1,100,000,000
Accounts
payable 9,015,978,354 - - - 9,015,978,354
Other payables 5,672,708,511 - - - 5,672,708,511
Lease liabilities 81,918,426 71,289,585 132,786,495 - 285,994,506
Long-term
borrowings 488,566 19,515,498 1,404,129 - 21,408,193
15,871,093,857 90,805,083 134,190,624 - 16,096,089,564
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
(i) As at 31 December 2022, the Group did not have lease contracts that had been signed but
had not yet been implemented.
190
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
12 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 2022, 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 -
Financing receivables -
Notes receivable - - 376,662,817 376,662,817
Derivative financial assets -
Forward foreign exchange
contracts - 2,972,698 - 2,972,698
- 2,972,698 376,662,817 379,635,515
As at 31 December 2022, the group didn’t have liabilities measured at fair value on a
recurring basis.
191
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
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
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 2022.
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, credit spreads, liquidity premium, EBITDA multiplier and liquidity lack discount.
192
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets are analysed below:
Changes in unrealised
gains or losses included
in profit or loss in 2022
with respect to assets still
Gains held as at 31 December
31 December 31 December recognised in 2022 - gains or losses on
2021 Increase Decrease 2022 profit or loss changes in fair value
Financing
receivables -
Notes
receivable 201,511,670 3,664,369,012 (3,489,217,865) 376,662,817 - -
Total assets 201,511,670 3,664,369,012 (3,489,217,865) 376,662,817 - -
193
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets are analysed below (Cont'd):
Changes in unrealised
gains or losses included
in profit or loss in 2021
Gains with respect to assets still
recognised in held as at 31 December
31 December 31 December profit or loss 2021 - gains or losses on
2020 Increase Decrease 2021 (a) changes in fair 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.
194
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates (Cont’d)
(2) Assets measured at fair value on a non-recurring basis
As at 31 December 2022 and 31 December 2021, 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.
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 and lease liabilities 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.
13 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 2022 and 31 December 2021, the Group's equity ratio was as follows:
31 December 2022 31 December 2021
Total borrowings 1,121,314,128 302,505,044
Total shareholders’ equity 9,240,646,784 8,555,444,589
Equity ratio 12% 4%
195
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements
(1) Accounts receivable
31 December 2022 31 December 2021
Accounts receivable 2,444,372,969 1,576,660,469
Less: Provision for bad debts (75,474,642) (167,340,229)
2,368,898,327 1,409,320,240
(a) The ageing of accounts receivable is analysed as follows:
31 December 2022 31 December 2021
Within 1 year 2,281,564,617 1,231,549,719
Over 1 year 162,808,352 345,110,750
2,444,372,969 1,576,660,469
(b) As at 31 December 2022, the top five accounts receivable ranked by remaining
balances were analysed as follows:
Amount of provision
Balance for bad debts % of total balance
Company 1 1,794,825,748 (1,447,904) 73.43%
Company 2 241,829,851 - 9.89%
Company 3 105,318,231 - 4.31%
Company 4 72,230,000 (72,230,000) 2.95%
Company 5 46,820,892 (140,841) 1.92%
2,261,024,722 (73,818,745) 92.50%
196
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 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 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Receivables from related
parties within the Group
i) 347,148,082 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
419,378,082 (72,230,000)
31 December 2021
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
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 ii) 72,230,000 100% (72,230,000)
231,801,495 (157,133,126)
i) As at 31 December 2022, the Company's accounts receivable from subsidiary JMCS and
SZFJ was RMB241,829,851 and RMB105,318,231(31 December 2021 ： Nil and RMB
74,668,369). The Company carried out individual assessment on receivables from
subsidiaries. Based on the judgement of credit risk, there was no significant credit risk on
receivables from subsidiaries that were overdue and impaired.
ii) As at 31 December 2022, the Company assessed the expected credit losses on the
related accounts receivable and expected that it was probable that such amounts would not
be collected and therefore a full provision for bad debts was made.
197
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 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 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 1,574,700,311 0.04% (676,307)
Overdue for 1 to 30 days 20,338,359 0.04% (8,715)
Overdue for 31 to 60 days 7,025,162 1.07% (75,033)
Overdue for 61 to 90 days - — -
Overdue over 90 days 1,046,303 3.37% (35,212)
1,603,110,135 (795,267)
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 for 61 to 90 days 17,638,503 4.15% (732,260)
Overdue over 90 days 114,035 5.01% (5,710)
1,030,663,570 (2,255,240)
Grouping - Sales of new energy automobiles:
31 December 2022
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4,853,760 20.60% (999,805)
198
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 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 2021
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 111,207,654 6.51% (7,234,301)
Grouping - Automobile parts:
31 December 2022
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 400,583,282 0.30% (1,201,749)
Overdue for 1 to 30 days 10,972,629 0.30% (32,918)
Overdue for 31 to 60 days 1,307,433 0.50% (6,537)
Overdue for 61 to 90 days 377 0.53% (2)
Overdue over 90 days 4,167,271 5.00% (208,364)
417,030,992 (1,449,570)
31 December 2021
Book balance Provision for bad debts
Lifetime ECL
Amount (%) 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)
199
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(d) The book balance of new energy subsidies receivable that was written off in 2022 was
RMB86,739,957, and the provision for bad debts was RMB86,739,957. The above write-offs
were not related transactions and had been approved by the board of directors.
(e) As at 31 December 2022 and 31 December 2021, the Company did not have accounts
receivable that were pledged.
(2) Other receivables
31 December 2022 31 December 2021
Receivable for subsidiary disposal 60,900,000 252,000,000
Receivables from Jiangling(Shanghai) 14,426,224 -
Import working capital 10,000,000 25,000,000
Receivables from JMCH 9,679,410 9,679,410
Disposal of assets 4,604,745 17,668,457
Others 29,561,083 97,471,253
129,171,462 401,819,120
Less: Provision for bad debts (315,611) (1,031,283)
128,855,851 400,787,837
(a) The ageing of other receivables is analysed as follows:
31 December 2022 31 December 2021
Within 1 year 55,337,691 399,577,953
Over 1 year 73,833,771 2,241,167
129,171,462 401,819,120
(b) Provision for losses and changes in book balance statements
Stage 1 Total
12-month ECL (grouping) 12-month ECL (individual)
Provision
Book Provision for Book Provision for for bad
balance bad debts balance bad debts debts
31 December 2021 392,139,710 (1,031,283) 9,679,410 - (1,031,283)
Net
(decrease)/incre
ase in the
current year (287,073,882) — 14,426,224 — —
Provision for bad
debts reserved
in the current
year — 715,672 — - 715,672
31 December 2022 105,065,828 (315,611) 24,105,634 - (315,611)
200
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 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 2022 and 31 December 2021, the Company did not have any other
receivables at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 31 December 2022 and 31 December 2021, provision for bad debts of other
receivables on the individual basis was analysed as follows:
31 December 2022
12-month ECL Provision for
Stage 1 Book balance (%) bad debts Reason
Receivables from
Jiangling Ford
(Shanghai) 14,426,224 - - i)
Receivables from JMCH 9,679,410 - - i)
24,105,634 -
31 December 2021
12-month ECL Provision for
Stage 1 Book balance (%) bad debts Reason
Receivables from JMCH 9,679,410 - - i)
i) As of December 31, 2022, the Company had other receivables from its subsidiaries,
Jiangling Ford (Shanghai) and JMCH, amounting to RMB14,426,224 and RMB9,679,410 (31
December 2021: Nil and RMB9,679,410).The Company assessed the receivables from
subsidiaries individually and based on the judgment of credit risk, the receivables from
subsidiaries are not subject to significant credit risk and are not past due and impaired.
201
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 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)
(ii) As at 31 December 2022 and 31 December 2021, 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:
(ii) As at 31 December 2022, the Company’s other receivables with provision for bad debts on
the grouping basis were analysed below:
Expected credit
Book loss ratio within Provision for
Rationale
balance the next 12 bad debts
months
Portfolio accrual：
Receivable for subsidiary
disposal 60,900,000 0.30% (182,700) Expected credit losses
Import working capital 10,000,000 0.30% (30,000) Expected credit losses
Disposal of assets 4,604,745 0.30% (13,814) Expected credit losses
Others 29,561,083 0.30% (89,097) Expected credit losses
105,065,828 (315,611)
(iii) As at 31 December 2021, the Company’s other receivables with provision for bad debts on
the grouping basis were analysed below:
Expected credit
Book loss ratio within Provision for
Rationale
balance the next 12 bad debts
months
Portfolio accrual：
Receivable for subsidiary
disposal 252,000,000 0.30% (756,000) Expected credit losses
Import working capital 25,000,000 0.30% (75,000) Expected credit losses
Disposal of assets 17,668,457 0.30% (53,005) Expected credit losses
Others 49,340,289 0.30% (147,278) Expected credit losses
Interest receivable 48,130,964 - - Expected credit losses
392,139,710 (1,031,283)
As at 31 December 2022 and 31 December 2021, the Company had no other receivables at
Stage 2 or Stage 3.
202
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(c) In 2022, the provision for bad debts reversed amounted to RMB715,672.
(d) In 2022, no other receivables were written off.
(e) As at 31 December 2022, the top five other receivables ranked by remaining balances were
analysed as follows:
Provision
% of total for bad
Nature Balance Ageing balance debts
Receivable for
subsidiary
Company 1 disposal 60,900,000 Over 1 year 47.15% (182,700)
Receivable from Within 1
Company 2 subsidiary 14,426,224 year 11.17% -
Advances
classified as Within 1
Company 3 expenses 12,919,400 year 10.00% (38,758)
Import working Within 1
Company 4 capital, etc. 10,231,067 year 7.92% (30,693)
Receivable from
Company 5 subsidiary 9,679,410 Over 1 year 7.49% -
108,156,101 83.73% (252,151)
203
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments
31 December 2022 31 December 2021
Subsidiaries (a) 2,807,943,493 2,756,943,493
Associates (b) 243,633,812 252,402,245
3,051,577,305 3,009,345,738
Less: Provision for impairment of long-term equity investments for subsidiaries (1,905,543,493) (1,905,543,493)
Provision for impairment of long-term equity investments for associates - -
(1,905,543,493) (1,905,543,493)
1,146,033,812 1,103,802,245
(a) Subsidiaries
Movement in the
current year
Balance of
provision for Cash dividends
31 December Additional 31 December impairment at the declared this
2021 investments 2022 end of the year year 31 December 2022
Gross amount Gross amount Carrying amount
JMCH 2,686,943,493 - 2,686,943,493 (1,905,543,493) - 781,400,000
JMCS 50,000,000 - 50,000,000 - - 50,000,000
SZFJ 10,000,000 - 10,000,000 - - 10,000,000
GZFJ 10,000,000 - 10,000,000 - - 10,000,000
Jiangling Ford
(Shanghai) - 51,000,000 51,000,000 - - 51,000,000
2,756,943,493 51,000,000 2,807,943,493 (1,905,543,493) - 902,400,000
204
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR EDNED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(b) Associates
Movements in the current year
Cash
Share of net dividends Ending
Increase in profit/(loss) declared by balance of
31 December the current under equity joint Provision for 31 December Shareholding Voting provision for
2021 year method ventures impairment 2022 (%) rights (%) impairment
The Power
Company 215,993,605 - (9,786,926) - - 206,206,679 40% 40% -
Hanon
Systems 36,408,640 - 1,018,493 - - 37,427,133 19.15% 33.33% -
Total 252,402,245 - (8,768,433) - - 243,633,812 -
205
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
2022 2021
Revenue from main operations 27,601,273,209 32,230,431,936
Revenue from other operations 499,724,240 661,606,456
28,100,997,449 32,892,038,392
2022 2021
Cost of sales from main operations 24,557,964,422 28,545,317,717
Cost of sales from other operations 462,474,326 564,998,651
25,020,438,748 29,110,316,368
(a) Revenue and cost of sales from main operations
2022 2021
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 25,235,142,483 22,674,692,674 30,095,151,966 26,882,101,617
Sales of
automobile
parts 2,341,764,663 1,871,646,827 2,026,158,467 1,544,733,777
Automobile
maintenance
services 24,366,063 11,624,921 109,121,503 118,482,323
27,601,273,209 24,557,964,422 32,230,431,936 28,545,317,717
(b) Revenue and cost of sales from other operations
2022 2021
Cost of sales Revenue from Cost of sales
Revenue from from other other from other
other operations operations operations operations
Sales of
materials 367,010,370 339,961,257 473,568,747 441,423,371
Others 132,713,870 122,513,069 188,037,709 123,575,280
499,724,240 462,474,326 661,606,456 564,998,651
206
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales (Cont’d)
(c) The breakdown of revenue earned was as follows:
2022
Automobile
Automobile maintenance Materials
Automobiles parts services and others Total
Revenue from main
operations 25,235,142,483 2,341,764,663 24,366,063 - 27,601,273,209
Including: Recognised at a
time point 25,235,142,483 2,341,764,663 - - 27,576,907,146
Recognised within
a certain period - - 24,366,063 - 24,366,063
Revenue from other
operations (i) - - - 499,724,240 499,724,240
25,235,142,483 2,341,764,663 24,366,063 499,724,240 28,100,997,449
2021
Automobile
Automobile maintenance Materials
Automobiles 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 (i) - - - 661,606,456 661,606,456
30,095,151,966 2,026,158,467 109,121,503 661,606,456 32,892,038,392
(i) The Company's revenue from other operations includes sales of materials and technical
service provided, etc. Of which, revenue from sales of materials is recognized at a certain
point in time, and revenue from technical service provided is recognized within a certain
period.
As at 31 December 2022, the amount of revenue corresponding to the performance
obligations that the Company had signed but had not performed or had not yet performed
was RMB1,011,195, and the Company expected that RMB1,011,195 will be recognised as
revenue from the sales of automobiles and parts in 2023.
(5) Investment income
2022 2021
Investment loss from forward exchange settlement (13,534,785) (20,618,121)
Losses on discount of financing receivables eligible for
derecognition (12,990,879) (8,344,916)
Gains on long-term equity investments under equity method (8,768,433) (21,475,697)
Investment income from financial assets held for trading - 3,894,456
(35,294,097) (46,544,278)
There is no significant restriction on the remittance of investment income to the Company.
207
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
(All amounts in RMBYuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
2022 2021
Government grants recognised in profit or loss
for the current period 943,326,556 552,831,370
Gains or losses on disposal of non-current
assets 389,251,475 5,107,814
Fund occupation fee received from non-
financial institutions 13,827,410 15,836,668
Gains or losses on disposal of long-term equity
investments - 52,133,307
Gains or 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 1,424,039 (16,082,076)
Net amount of other non-operating income and
expenses 1,423,948 2,027,076
Reversal of provision for impairment of
receivables tested individually 110,068 2,250,000
Other items of profit or loss conforming to the
definition of non-recurring profit or loss - 18,765,020
1,349,363,496 632,869,179
Effect of income tax (204,283,363) (88,332,046)
Effect of gains or losses on minority interests
(net of tax) (363,305) -
1,144,716,828 544,537,133
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 Basic earnings Diluted earnings
assets (%) per share per share
2022 2021 2022 2021 2022 2021
Net profit attributable to
ordinary shareholders
of the Company 10.28% 5.87% 1.06 0.67 1.06 0.67
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss (2.58%) 0.30% (0.27) 0.03 (0.27) 0.03
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