Chongqing Changan Automobile
Company Limited
2023 Annual Report
April 2024
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 1 Important Notice, Contents, and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors,
supervisors and senior managers of Chongqing Changan Automobile Co., Ltd. hereby guarantee the
factuality, accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material omissions
therein.
2. Zhu Huarong, the Company’s legal representative, Zhang Deyong, the Company’s Chief
Financial Officer and Shi Haifeng, the person-in-charge of the accounting organ hereby guarantee
that the financial statements carried in this Report are factual, accurate, and complete.
3. Except the following directors, all the directors have attended the board meeting for reviewing
this Report.
Name of the directors absent Positions Reasons for the absence Name of the Trustees
Deng Wei Director Work reasons Jia Lishan
Shi Yaoxiang Director Work reasons Zhang Deyong
Li Keqiang Independent Director Work reasons Tang Guliang
4. Any prospective description such as future business plans and development strategies in this
Report shall not be considered as the Company’s commitment to investors. Investors and relevant
persons shall be sufficiently mindful of risks, and undertake the difference in plans, predictions and
commitment.
5. Chapter III “Management Discussion and Analysis” of this Report describes the possible risks
and countermeasures of the Company, and investors shall pay attention to the relevant content.
6. The Board has approved a final dividend plan as follows: Based on 9,917,289,033 shares, a cash
dividend of RMB 3.43 (tax included) per 10 shares is to be distributed to all shareholders, without
transferring capital reserve to share capital.
This Report have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile and Main Financial Indexes ...........................................5
Chapter 3 Management Discussion and Analysis .....................................................10
Chapter 4 Corporate Governance ..............................................................................37
Chapter 5 Environmental and Social Responsibility ................................................ 58
Chapter 6 Important Matters ..................................................................................... 67
Chapter 7 Share Changes and Shareholder Information .......................................... 72
Chapter 8 Preference Shares ..................................................................................... 78
Chapter 9 Bonds ........................................................................................................ 79
Chapter 10 Auditor’s Report ..................................................................................... 82
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Documents Available for Reference
I. Financial statements carrying the signatures and seals of the Company’s legal representative, the Chief Financial
Officer, and the person-in-charge of the accounting organ.
Ⅱ. The 2022 Auditor’s Report stamped by the accounting firm and signed and stamped by chartered accountants.
Ⅲ. During the reporting period, the original copies of all company documents and announcements publicly
disclosed by the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities
News, and Hong Kong Commercial Daily.
IV. Annual Reports disclosed in other securities markets.
Definitions
Items Definitions
Changan Auto, Changan
Refers to Chongqing Changan Automobile Co., Ltd.
Automobile, the Company
China South Industries Group Corporation, the Company’s actual
CSG Refers to
controller
China Changan Automobile Group Co., Ltd., formerly known as China
China Changan Refers to
South Industries Automobile Co., Ltd., a subsidiary company of CSG
Chongqing Changan Industry (Group) Co., Ltd., formerly known as
Changan Industry Refers to
Changan Automobile (Group) Co., Ltd., a subsidiary company of CSG
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
Chongqing Changan Kaicheng Automotive Technology Co., Ltd.,
Changan Kaicheng Refers to formerly known as Kaicheng Automotive Technology Co., Ltd., a
subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co., Ltd., a
CIC Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co., Ltd., a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., Ltd., a JV of the Company
CME Refers to Changan Mazda Engine Co., Ltd., a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the Company
Changan Finance Refers to Changan Automobile Financing Co., Ltd., an associate of the Company
China South Industries Group Finance Co., Ltd., a subsidiary company of
CSG Finance Refers to
South Industries
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Chongqing Changan Automobile Company Limited 2023 Annual Report
United Prosperity Investment Co., Ltd., a subsidiary company of China
UPI Refers to
Changan
Chongqing Changan Technology Co., Ltd., a subsidiary company of the
Changan Technology Refers to
Company
Deepal Automotive Technology Co., Ltd., a subsidiary company of the
Deepal Auto Refers to
Company
Avatr Refers to Avatr Technology (Chongqing) Co. Ltd., an associate of the Company
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile, Changan B Stock Code 000625, 200625
Listed on Shenzhen Stock Exchange
Company name in Chinese 重庆长安汽车股份有限公司
Chinese abbreviation 长安汽车
Company name in English Chongqing Changan Automobile Co., Ltd.
Legal representative Zhu Huarong
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the registered
400023
address
No. 260, East Jianxin Road, Jiangbei District, Chongqing.
Office address
Building T2, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing.
Post code of the office address 400023
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zhang Deyong, Li Jun Jie Zhonghua
Building T2, No. 2, Financial City, No. 61 Building T2, No. 2, Financial City, No. 61
Contact address Dongshengmen Road, Jiangbei District, Dongshengmen Road, Jiangbei District,
Chongqing Chongqing
TEL 023-67594008 023-67594008
FAX 023-67870261 023-67870261
E-mail address cazqc@changan.com.cn jiezh@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Stock exchange website where this Report is disclosed http://www.szse.cn
China Securities, Journal, Securities Times, Securities Daily, Shanghai
Media and website where this Report is disclosed
Securities News, Hong Kong Commercial Daily and www.cninfo.com.cn
Place where this Report is lodged Board Office of the Company
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Not applicable
Company’s listing
1. In December 2005, according to the restructuring program on automobile business,
Changes of controlling shareholder since the Company’s actual controller, CSG transferred all state-owned shares of Changan
incorporation (if any) Automobile (Group) Company Limited (“Changan Group”) as part of funding for China
South Industries Automobile Co., Ltd. In March 2006, all shares held by Changan
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Group have been transferred to China South Industries Automobile Co., Ltd. China
South Industries Automobile Co., Ltd. became the majority shareholder of the Company,
and Changan Group holds zero share since then.
2. In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Co., Ltd.” changed its name to “China Changan
Automobile Group Co., Ltd.”. No change occurred in its property, ownership and
control of the Company.
3. In February 2019, “China Changan Automobile Group LLC” changed its name to
“China Changan Automobile Group Co., Ltd.” with the approval of Beijing
Administration for Industry and Commerce. The company changed from a joint stock
company to a limited liability company.
V. Other Relevant Information
The audit firm employed by the Company
Name Lixin Certified Public Accountants (Special General Partnership)
Office address 4th Floor, No. 61 Nanjing East Road, Huang pu District, Shanghai, China
Accountants writing signatures Zhu Yuqin, Wang Kai
The independent sponsor employed by the Company to exercise constant supervision over the Company in the reporting period
√ Applicable □Not applicable
Sponsor
Name Office address Supervision period
representative
CITIC Securities Co., 21st Floor, CITIC Securities Building, No. 48 He Yang, Chen October 26, 2020 - December
Ltd. Liangmaqiao Road, Chaoyang District, Beijing Shumian 31, 2021
Note: CITIC Securities Co., Ltd. is the recommendation institution for the continuous supervision of the company's non-public
offering of shares in 2020.
The independent financial advisor employed by the Company to exercise constant supervision over the Company in the reporting
period
□ Applicable √ Not applicable
VI. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years?
√ Yes □ No
Reason:Changes in accounting policies
YoY
2022 change 2021
2023 (%)
Original Restated Restated Original Restated
Operating revenue
151,297,706,646.97 121,252,864,085.40 121,252,864,085.40 24.78% 105,141,877,237.05 105,141,877,237.05
(RMB)
Net profit attributable to
shareholders of the 11,327,463,013.15 7,798,451,093.72 7,798,785,367.38 45.25% 3,552,463,320.03 3,552,631,696.73
Company (RMB)
Net profit after
deduction of
non-recurring gains or
3,781,846,729.11 4,458,919,314.80 3,254,790,124.46 16.19% 1,652,771,338.77 697,701,167.57
losses attributable to
shareholders of the
Company(RMB)
Net cash flow from
operating activities 19,861,466,237.56 5,666,346,858.52 5,666,346,858.52 250.52% 22,971,723,210.84 22,971,723,210.84
(RMB)
Basic earnings per share
1.15 0.80 0.80 43.75% 0.36 0.36
(RMB/share)
Diluted earnings per
1.13 0.78 0.78 44.87% 0.36 0.36
share (RMB/share)
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Weighted average ROE
16.55% 13.07% 13.07% 3.48% 6.53% 6.53%
(%)
YoY
31 December 2022 change 31 December 2021
31 December 2023 (%)
Original Restated Restated Original Restated
Total assets (RMB) 190,171,127,138.27 146,048,555,951.92 146,049,068,075.25 30.21% 135,404,623,479.63 135,404,791,856.33
Net assets attributable to
shareholders of the 71,853,119,985.49 62,858,105,705.70 62,858,608,356.06 14.31% 55,732,932,103.72 55,733,100,480.42
Company (RMB)
Reasons for changes in accounting policies:
From January 1st, 2023, the provisions of the Interpretation No. 16 of the Accounting Standards for Business Enterprises will be
implemented, and the information for comparable periods will be adjusted. For details, please refer to "(31) Changes in Significant
Accounting Policies and Accounting Estimates" in Note 3 "Important Accounting Policies and Accounting Estimates" to the
financial statements.
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’s report of last 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
VII. The Differences between Chinese Accounting Standards and International Financial
Reporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in
accordance with International Financial Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial
Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International
Financial Reporting Standards
□ Applicable √ Not applicable
VIII. Key Financial Indexes of 2023 by Quarter
Unit: RMB
First Quarter Second Quarter Third Quarter Forth Quarter
Operating revenues 34,556,094,707.75 30,936,004,161.26 42,714,220,563.67 43,091,387,214.29
Net profit attributable to shareholders of the
6,970,203,078.41 682,776,268.39 2,229,425,232.97 1,445,058,433.38
Company
Net profit attributable to shareholders of the
Company after deducting non-recurring gains 1,481,090,757.20 27,967,266.80 2,103,408,917.03 169,379,788.08
and losses
Net cash flow from operating activities 3,383,283,790.67 3,572,172,922.92 10,523,163,408.37 2,382,846,115.60
Whether there are significant differences between the above-mentioned financial indexes or its total number and the relevant
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Chongqing Changan Automobile Company Limited 2023 Annual Report
financial indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □Not applicable
Unit: RMB
Items 2023 2022 2021 Explanation
Gains or losses on disposal of
non-current assets (inclusive of 441,000,628.40 74,862,481.00 745,601,530.26
impairment allowance write-offs)
Government subsidies charged to
current gains or losses (exclusive
of government subsidies given in
the Company’s ordinary course 1,463,381,979.58 1,134,358,181.32 1,335,952,105.80
of business at fixed quotas or
amounts as per the government’s
uniform standards)
In addition to the effective
hedging business related to the
normal operation of the
company, the fair value change
gains and losses arising from the
holding of financial assets and -955,029.68 3,570,229.29 42,078,804.00
financial liabilities by
non-financial enterprises and the
gains and losses arising from the
disposal of financial assets and
financial liabilities
The company formed a non common
control enterprise merger through
additional investment in the original joint
venture Shenlan Automobile (formerly
Chongqing Changan New Energy Vehicle
Technology Co., Ltd.), as detailed in the
Announcement on the Acquisition of
Partial Equity of Changan New Energy
(Announcement No. 2022-78). The equity
Income generated from mergers delivery procedures for this transaction
of enterprises not under the same 5,021,482,128.74 were completed on February 1, 2023.
control Please refer to the Progress Announcement
on Acquiring Partial Equity of Chang'an
New Energy (Announcement No.:
2023-05) for details. According to Article
48 of Enterprise Accounting Preparation
No. 33- Consolidated Financial
Statements, the company recognized an
investment income of 5.021 billion yuan in
the first quarter of 2023 based on the
financial information on the purchase date.
Capital occupation fees charged
to non-financial enterprises
66,074,620.29 40,505,154.81 11,853,260.69
through profit or loss for the
current period
Gains and losses on entrusted
6,959,316.00
loans
Reversal of impairment
21,286,713.50 2,847,641.57
provision for accounts receivable
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Chongqing Changan Automobile Company Limited 2023 Annual Report
subject to separate impairment
testing
Gains from remeasuring
remaining equity at fair value 2,128,313,646.36
after losing control
Other non operating income and
expenses other than the above 141,715,255.35 77,519,377.00 90,085,373.52
items
Other profit and loss items that
meet the definition of non 673,232,447.45 1,204,463,464.00 955,238,547.90
recurring gains and losses (note)
Minus: influenced amount of
255,466,128.30 94,817,746.44 196,630,848.39
income tax
Non-controlling interests
26,136,331.29 27,627,185.99 136,207,560.62
effects (after tax)
Total 7,545,616,284.04 4,543,995,242.92 2,854,930,529.16
Particulars about other gains and losses that meet the definition of non-recurring gain/loss
√ Applicable □ Not applicable
Note: In this year, due to the implementation of the Interpretation Announcement No. 1 on Information Disclosure of Companies
Issuing Securities to the Public - Non recurring Gains and Losses, in accordance with the spirit of the announcement documents,
adjustments have been made to the non recurring gains and losses of the invested units accounted for under the equity method from
2021 to 2022 based on their respective shares.
Explanation of why the Company reclassifies non-recurrent gain/loss as a recurrent gain/loss item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/Loss
Items
□ Applicable √ Not applicable
No such cases for the reporting period.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 3 Management Discussion and Analysis
I．Industry Overview in 2023
1. The industry analysis
In 2023, the global economic growth rate slowed down, the world economic recovery still has uncertainty. At the same time,
2023 was also the beginning year of fully implementing the spirit of the 20th National Congress of the Communist Party of China.
This year, China’s economy has rebounded and high-quality development has been solidly promoted. Although there were still
unfavorable factors such as insufficient effective demand and weak social expectations, the favorable conditions for China’s
development were stronger than the unfavorable factors, and the basic trend of economic recovery and long-term improvement has
not changed. This year, with the gradual economic recovery and further release of consumer demand, the high-quality development
of the automotive industry has achieved new results. The annual production and sales scale continue to expand, with double-digit
year-on-year growth, effectively driving domestic economic growth. The specific industry situation during the reporting period is as
follows:
The automotive industry has exceeded 30 million units in cumulative production and sales in 2023, with sales reaching 30.094
million units, a year-on-year increase of 12.0%. The overall market sales throughout the year showed a fluctuating upward trend,
competitive landscape is constantly intensifying.
From the perspective of segmented markets, the cumulative sales of passenger cars reached 26.063 million units, a year-on-year
increase of 10.6%. The cumulative sales of commercial vehicles reached 4.031 million units, a year-on-year increase of 22.1%,
significantly better than the overall industry and showing a significant recovery momentum.
The performance of the new energy vehicle market remained impressive, continued to maintain strong growth momentum. In
2023, the sales of new energy vehicles reached 9.495 million units, a year-on-year increase of 37.9%. From the perspective of
segmented markets, with the continuous efforts of the supply side within the year and the marginal impact of the EV scale growth,
the growth rate of XEV models of the narrow definition passenger vehicles was significantly higher than that of EV models, and the
sales proportion of XEV of the narrow definition passenger vehicles has increased by 4.3 percentage points year-on-year. The main
share of the narrow definition new energy passenger car market was still dominated by Chinese brands, with Chinese brands
supporting 80% of its share. It is worth noting that from the sales ranking of the new energy narrow definition passenger car group,
the market pattern has changed compared to 2022. In the EV sector, the market share of industry leading enterprises has increased
year-on-year, and the concentration has further increased; In the XEV sector, with the continuous influx of new entrants, the market
share of top companies has loosened and was gradually being eroded by newcomer companies. It can be foreseen that the existing
competitive landscape may be further restructured.
The export of automobiles has reached a new level, with over 4.9 million vehicles exported throughout the year, making a
significant contribution to the overall market growth. Among them, the export of new energy vehicles exceeded 1.2 million units, a
year-on-year increase of over 70%. Among the top ten enterprise groups in terms of export sales, most of them have achieved
double-digit or higher year-on-year growth in export volume. Meanwhile, the sales concentration of the top ten enterprise groups in
the industry decreased by 3.9 percentage points year-on-year, indicating that as more and more enterprises accelerate their overseas
expansion, the export market pattern may further change.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Source: The above data/information comes from the “China Automobile Industry Production and Sales Express” published by the
China Association of Automobile Manufacturers and its industry information release
2. Changan Auto’s performance
In 2023, facing complex and severe external environments and increasingly intense market competition, Changan deeply
implemented and studied the spirit of the Party’s 20th National Congress, fully implemented Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, firmly promoted “The Third Business Venture- Innovation & Entrepreneurship Program”, and
pushed forward the “Three Major Plans” (Electrification-“Mission Of Shangri-La”, Intelligence-“Dubhe Plan” and
Globalization-“Vast Ocean Plan”) . By overcoming various risks and challenges such as market changes, industry adjustments, and
intensified competition, Changan Automobile has ensured overall stability in market share and has successfully completed the annual
production and business objectives and tasks. In 2023, the company achieved a total sales volume of 2.553 million vehicles, a
year-on-year increase of 8.8%. The company’s new energy and export sales has a excellent performance, with the self-owned brand
new energy vehicles selling 474,045 units annually, a year-on-year increase of 74.8%; exports reached 358,454 units, a year-on-year
increase of 43.9%.
3. Industrial policies
July 20th, 2023, the National Development and Reform Commission and other 13 departments issued “Several Measures to
Promote Automobile Consumption” including optimizing automobile purchase restrictions, supporting the update consumption of
aged automobiles, accelerating the development of the used car market, strengthening the construction of new energy vehicle
supporting facilities, focusing on improving the carrying capacity of rural power grids, reducing the cost of purchasing and using new
energy vehicles, promoting the increase in the procurement quantity of new energy vehicles in public areas, strengthening financial
services for automobile consumption, encouraging automobile enterprises to develop economy-friendly models, and continuously
alleviating parking difficulties and chaos.
4. Major laws and regulations
(1) Market access
Intelligent connected vehicles are a strategic direction for the development of the automobile industry. China attaches great
importance to the technological innovation and application of intelligent connected vehicles. On November 17, 2023, the Ministry of
Industry and Information Technology (MIIT), the Ministry of Public Security (MPS), the Ministry of Housing and Urban-Rural
Development (MOHURD), and the Ministry of Transportation (MOT) jointly issued the “Notice on Carrying out Pilot Work for
Market Access and Road Access of Intelligent Connected Vehicles”. Changan Automobile is applying for the pilot program, and the
application proposal has been submitted to the authorities.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
(2) Standards
Changan ’ s vehicle models are in strict accordance with` the national regulations and standards for development and
manufacturing. All of Changan’s products are in line with the regulations and standards. As for the new standards that have been
implemented, Changan has completed the product upgrade and switch according to the time requirements, among which the
standards for 2023 are as follows.
(A) GB 17675-2021 “Basic Requirements for Automotive Steering System ” was released in February 2021. For vehicles
applying for type approval, it has been effective since January 1, 2022. For models that already had type approval, it has been
effective since January 1, 2023. This standard defines the term definition, technical requirements and test methods of automobile
steering system, and adds that the electrical control of steering system should meet the requirements of electromagnetic compatibility,
functional safety, failure alarm, etc.
(B) GB 39732-2020 “Automobile Event Data Recording System” was released in December 2020. Vehicles applying for type
approval, from January 1, 2022, shall meet the requirements of this standard except for the elements of class B and article 4.4, and
from January 1, 2024 shall meet all the requirements. The standard mainly specifies the terms and definitions, technical requirements,
test methods, appearance and marking of automobile event data recording system.
(C) GB 19578-2021“The Fuel Consumption Limits for Passenger Vehicles”was issued in February 2021 and has been applied
to vehicles that already had type approval since January 1, 2023. The standard mainly specifies the fuel consumption limit
requirements based on the total mass of passenger vehicles under WLTC cycle conditions.
(D) GB 9656-2021 “Technical Specification for Glass Safety of Motor Vehicles” was issued in April 2021. From January 1,
2023, the glass of vehicles applying for type approval shall meet the requirements of field of vision safety, strength safety, and
damage safety, etc.
(E) GB 16897-2022 “Brake Hose Structure, Performance Requirements and Test Methods” was released in August 2022. For
vehicles applying for type approval, it has been effective since January 1, 2023. For models that already had type approval, it has
been effective since July 1, 2023. This standard mainly adds the hydraulic brake hose fast tensile strength, pneumatic brake hose
flexure fatigue requirements, etc.
(F) GB 15084-2022 “Performance and Installation Requirements for Indirect Vision Devices of Motor Vehicles” was released
in December 2022. The standard mainly adds the requirements for the use of electronic rearview mirrors, frameless rearview mirrors,
etc. The standard has been effective since July 1, 2023 for vehicles applying for type approval.
(G) GB 18352.6-2016 “Pollutant Emission Limits and Measurement Methods for Light-Duty Vehicles (China Stage 6)” was
released in December 2016, which stipulates the requirements for the type inspection of pollutant emission of light-duty vehicles in
Stage 6, the requirements for production consistency and in-use conformity inspection, and the method of determination. Starting
from July 1, 2023, all light-duty vehicles sold and registered shall comply with the requirements of this standard, of which the Type I
test shall comply with the requirements of the Stage 6b limits and the Type II test (RDE) shall comply with the limits. On May 8,
2023, the Ministry of Ecology and Environment, the Ministry of Industry and Information Technology, the Ministry of Commerce,
the General Administration of Customs, and the State Administration for Market Regulation jointly issued the “Announcement on
Matters Relating to the Implementation of the National VI Emission Standard for Automobiles”, which permits the sale of some
light-duty vehicle National VIb models with“test only”results from the real driving emissions (RDE) test until December 31, 2023.
(H) GB 4785-2019“Installation Requirements for Exterior Lighting and Light Signaling Devices for Automobiles and Trailers”
was published in December 2019. From July 1, 2023, for vehicles applying for type approval, when equipped with daytime running
lights and operating as specified, the low beams shall be automatically turned on or off in accordance with the standard requirements,
depending on the environmental conditions.
II. Analysis of Core Businesses in 2023
As an automobile manufacturer, Changan Automobile’s businesses cover R&D, manufacturing, and sales of vehicles, as well as
the R&D and production of engines. At the same time, we proactively develop new businesses such as mobility, car services, new
marketing and sales, and battery swapping, and steps up efforts in exploring finance, used cars and other fields to build a
comprehensive industrial ecology.
Changan always adheres to the mission of “leading auto culture and benefiting human life”, firmly promotes the “Third
Business Venture — Innovation & Entrepreneurship Program”, accelerates the transformation towards an intelligent low-carbon
mobility technology company, and strives to build itself into a world-class auto brand. Changan actively develops intelligent
connected new energy vehicles and has established five major independent automobile brands: AVATR, DEEPAL, NEVO, UNI, and
Kaicheng, promoting the electrification transformation of self-owned brands. At the same time, joint venture companies such as
Changan Ford and Changan Mazda produce and sell joint venture brand models. In the field of ICE vehicles, Changan has launched a
series of classic self-owned brand models, including the CS series, EADO series, UNI series, etc. The joint ventures have multiple
well-known products, including EDGE L, Explorer, the all-new Mondeo, the all-new Nautilus, Corsair, Zephyr, CX-50, CX-5 and
Axela. In the field of new energy vehicles, Changan has made great efforts to create NEV models such as the AVATR 11, AVATR 12,
DEEPAL SL03, DEEPAL S7, NEVO A07, Lumin, which are highly popular in the market and loved by consumers.
Changan adopts the business model of “equal emphasis on self-owned and joint venture brands”, and carries out entity operation
of its own auto brand business, such as UNI, NEVO, DEEPAL, and Kaicheng and firmly builds its own classic brands. We manage
investment over joint ventures such as Changan Ford and Changan Mazda, and continue to deepen mutual trust and cooperation with
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Chongqing Changan Automobile Company Limited 2023 Annual Report
partners.
1. The Company’s business development in 2023
(1) Adhere to strategic orientation and solidly promote strategic transformation
In 2023, Changan worked together with its partners to vigorously implement strategy. The “Mission of Shangri-La” for
electrification has taken a new step forward, building and forming three intelligent NEV brands: AVATR, DEEPAL, and NEVO,
which laid a brand foundation for global competition in the future. Changan also actively optimized its industrial layout, and
explored in-depth cooperation throughout the battery industry chain. Times Changan Power Battery Co., Ltd., a joint venture
established by Changan and CATL, has officially started production, with a designed production capacity of 30GWh and an
automation rate of over 95%. The “Dubhe Plan” for intelligent development has made new breakthroughs, continuously building a
“new automobile and new ecosystem”. The third Science and Technology Ecosystem Conference was held, and the first digital
intelligent car CD701 based on the SDA platform architecture was officially unveiled, and the central + zonal ring network
architecture entered the vehicle integration verification stage, opening a new era of digital cars. Changan signed a Memorandum of
Investment Cooperation with Huawei, which will accelerate the construction of a complete, autonomous and leading full-stack
intelligent vehicle capability for the intelligent era. New progress was achieved in the “Vast Ocean Plan” for global business. Five
global business units were established. DEEPAL S07, DEEPAL L07 were officially launched in Thailand, embarking on a new
journey into the Southeast Asian market. The construction of factory in Thailand has begun, and the global production layout has
entered a new stage.
(2) Adhere to innovation-driven development and continue to produce key core results
In 2023, Changan Automobile has launched 29 products in total, including 7 brand-new products, and the product line-up was
continuously improved. AVATR 12 made its global debut at the Munich IAA Mobility, and it has received more than 20,000 orders in
the first month after its launch, with an average order price of more than 350,000 yuan, which has gradually made a stable stance in
the premium market. DEEPAL S7 went to market equipped with the latest-generation CTP technology. In the 2023 Tour of Qinghai
Lake (International) Electric Vehicle Rally, it won the championship in six categories, including the best range, and its average
monthly sales volume exceeded 5,000 units. NEVO A07 and Q05 were released successively, making the product supply even more
sound; and the launch of the world’s first super range-extended pickup truck, Changan Hunter, attracted widespread attention.
Continuously mastering the core technology of new energy vehicles, Changan has released a new self-developed battery brand—
Changan “Golden Shield”. The entire Changan battery series uses high standard new insulation materials, with insulation
performance superior to industry standards. The first standard battery cell product of Times Changan Power Battery has been
officially launched, with advanced manufacturing technology and battery performance in the industry. It integrates 4C fast charging
technology, and the battery can be charged from 20% to 80% in just 10 minutes. Changan also launched industry-leading
technologies such as high-frequency pulse heating, next-generation battery integration, and new high-efficiency thermal management.
Intelligent technology achievements continued to turn results. NID3.0+APA7.0 Navigation Technology was mass produced on
DEEPAL’s two models, helping DEEPAL SL03 win the gold medal in the 2023 World Intelligent Driving Challenge. Changan
successfully obtained 17 L3 autonomous driving test licenses for high-speed highways, becoming the earliest enterprise that obtained
the most test licenses in a single batch. The National Key Laboratory of Intelligent Vehicle Safety Technology has been approved to
operate, promoting the development of high-value technologies such as intelligent safety driving and high safety onboard chips.
(3) Adhere to the user-centered and product-oriented approach and quickly carry out market response
actions
Changan actively invested marketing resources to cope with industry competition, and launched the “Changan Preferential Car
Purchase Season” activity, ensuring the stability of Changan’s automotive industry position. We innovatively revitalized the ICE
market, achieving a strong market share in segments. Changan ranked first in the Chinese brand passenger car market (retail), with
sales of over 190,000 units for the CS75PLUS series, ranking among the top in its segment. The sales of EADO PLUS have
exceeded 160,000 units, ranking first in the retail market segment, The sales of UNI-V exceeded 156,000 units, with an average
monthly sales of over 12,000 units. Rapidly advancing in the new energy market, the annual sales of DEEPAL’s two vehicle models
exceeded 128,000 units. Among them, the DEEPAL SL03 won the German Red Dot 2023 Product Design Award. Within two months,
NEVO launched three new cars, setting industry records. Within three months of launch, the cumulative sales volume reached 40,000
units, rapidly occupying the market share in the intelligent new car track. The annual sales of Changan Lumin, a popular commute
vehicle, exceeded 144,000 units, ranking among the top in its segment. Changan’s global brand communication has been gradually
strengthened, and the “Belt and Road Global Tour” has been carried out jointly with Xinhua News Agency to show the world the new
image of “Made in China Intelligently”, enhance the international influence of the brand. We have promoted the transformation of the
marketing system, deepened the development model of thousands of channels, implemented the “three centers” marketing model
reform, built over 4,000 new order, delivery, and service centers throughout the year, formed more than 9,000 global sales and
service outlets, and had nearly 120,000 professional service personnel. Changan ranked first in J.D. Power’s 2023 China Sales and
Service Satisfaction (SSI) among Chinese brands.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
(4) Adhere to the user-centered and product-oriented approach and quickly carry out market response
actions
Changan continuously deepened partnership, Changan Ford New Energy Vehicle Technology Co., Ltd. was established and its
first strategic product CX810 was being proceeded in an orderly manner. We established closer communication mechanisms with
Mazda, cooperated on multiple vehicle projects such as J90A and J90K, and continuously extended the scope of cooperation.
Changan established Chongqing Changxian Intelligent Technology Co., Ltd. with Horizon, and signed strategic cooperation
agreements with 15 partners including Huawei, Tencent, SMIC, and China Mobile, as well as carried out strategic cooperation with
more than 30 leading enterprises such as CATL, Ganfeng Lithium Industry and Baidu, focusing on high-value technology
breakthroughs and building core competitiveness in the new energy and intelligent fields.
2. Blockbuster products to be launched in 2023
AVATR 12, jointly built by Changan, Huawei and CATL, is
positioned as a “future smart premiums sedan” and is the second
model built on CHN’s new-generation smart electric vehicle
technology platform. Designed with the concept of “future
aesthetics”, it has a unique shape and is extremely elegant. It
comes standard with three lidars, equipped with the HUAWEI
ADS 2.0 high-end intelligent driving assistance system and the
Harmony cockpit developed based on HarmonyOS 4.
AVATR 12
DEEPAL S7 is the first SUV built based on the EPA1 all-electric
digital platform, which is equipped with a super range-extender
system with pure electric drive, long battery life, low energy
consumption, and 190kW ultra-high power FORCE ultra-
integrated electric drive. The CLTC pure electric range is up to
200 kilometers and the comprehensive range is up to 1,120
kilometers. DEEPAL S7 brings an unparalleled travel experience
to the users, with its technological sports styling, full-roof flow
lamp combination, yacht-style wrap-around design, and intelligent
ecosystem built on Qualcomm 8155 chip, including
programmable intelligent interactive lamps, intelligent cockpit,
dual zero-gravity seats in the front row, AR-HUD, 15.6-inch
DEEPAL S7 sunflower screen.
DEEPAL SL03i is the first mass-produced smart driving sedan of
DEEPAL brand, which has a dynamic vehicle design, leading
intelligent technology, and powerful rear-wheel drive control.
Equipped with NID high-speed navigation intelligent driving
assistance, APA remote valet parking assistance, 35 sensing
components and a high-precision sub-meter positioning system, it
is powerful in sensor detection, data calculation, parking space
recognition, and full-scenario driving assistance. At the same time,
it is equipped with a full-sensory digital cockpit with
technological configurations such as efficient voice interaction,
DEEPAL SL03i AR-HUD, and 14.6-inch sunflower screen to satisfy a variety of
car usage scenarios for young people.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
NEVO A07 is positioned as a “medium-to-large advanced digital
intelligent executive vehicle” and is available in both pure electric
and range-extended versions. It adopts Fuguang design aesthetics
and is equipped with a high-efficiency digital electric drive, with a
maximum power of 190kW, a peak torque of 320Nm, and electric
drive efficiency up to 95%. The entire series comes standard with
L2 IACC intelligent pilot system and iBC digital battery
management system. It has 33 digital intelligence standard
features, including frameless doors, electric hatchback tailgate,
4-door electronic inward opening, Snapdragon 8155
high-performance chip, and 540° full-field view image.
NEVO A07
NEVO A05 is positioned as a “digital intelligent AI electric drive
super-saving family sedan”. It adopts a digitally intelligent bionic
smile front face and hidden door handles, giving it a stylish and
pleasing appearance. The entire series is equipped with
configurations such as 13.2-inch high-definition touch console
screen, L2 IACC integrated adaptive cruise control system, and
540° high-definition panoramic images. It is equipped with NEVO
Digital Intelligence AI electric drive, 1.5L high-efficiency
BlueCore hybrid engine, iEM Intelligent Energy Management
Mode, and IP67-grade high-strength protection battery, which is
comprehensively capable of handling diversified family car
scenarios in the digital intelligent era.
NEVO A05
NEVO Q05 is the first plug-in hybrid SUV of NEVO brand. The
exterior adopts a trendy inductive design, and the interior adopts a
“sail” shape design. It has a smart cockpit and intelligent
configurations such as 540° high-definition panoramic images,
steep slope vision assistance, APA 5.0, and L2 intelligent assisted
driving system. The longest pure electric range can reach 125
kilometers, and the comprehensive range 1,215 kilometers.
NEVO Q05
The 2023 Changan UNI-V is positioned as a “future aesthetic
sports coupe”. Equipped with 2.0T+8AT and 1.5T+7DCT
BlueCore engines, it brings consumers a brand new power
experience with stronger performance and smoother power output.
UNI-V iDD (intelligent Dual Drive system) is equipped with a
maximum power of 125kW, and the BlueCore NE1.5T hybrid
special engine has a peak torque of 260Nm. The system’s
comprehensive maximum torque is 590Nm, the maximum
wheel-end torque is 4,470Nm, and the acceleration time from
zero to 100 kilometers is only 6.5 seconds, with strong power.
Changan UNI-V injects new vitality into the A+ class sedan
2023 Changan UNI-V market with its comprehensive advanced smart technology and
sports aesthetics.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
The 2024 Changan UNI-K is a medium and large SUV that
integrates luxury, comfort and intelligence. In terms of
appearance, it has a technical and fashionable spacious interior,
sporty and exquisite new wingspan quilting, and 64-color stepless
adjustment of front and rear ambient lights, showing a sense of
luxury; in terms of powertrain, with the BlueCore new generation
2.0T+8AT power combination, it provides strong power output
and smooth shifting experience.
2024 Changan UNI-K
The 3rd-generation CS55PLUS has become a “100,000 yuan-level
premium SUV for home enjoyment” with its good looks, good
fuel efficiency, good intelligence, and good quality, making the
CS55 series more competitive. The entire series is equipped with
new generation BlueCore NE 1.5T engine, L2 intelligent assisted
driving system, steep slope vision assist function, 540°
high-definition panoramic image and other practical intelligent
features, which are more practical and considerate.
The 3rd-generation CS55PLUS
The 3rd-generation CS75PLUS is positioned as the “Future
Vehicle”. The entire series is equipped with an Aisin 8-speed
automatic transmission, offering two power options, i.e., BlueCore
new generation NE 1.5T engine and 2.0T engine. It has four
driving modes (Normal/ECO/Sport/Custom) to create a more
personalized driving experience.
The 3rd-generation CS75PLUS
Changan LAMORE is positioned as a “compact family sedan”.
With a brand new design language, it is equipped with a source
code digital front grille, digital cursor LED light group, and
hidden door handles, etc. Mounted with BlueCore new generation
NE1.5T high-pressure direct injection engine, 7-speed wet dual
clutch transmission, 540° high-definition panoramic imaging,
IMS/DMS intelligent cabin monitoring system, and super large
intelligent interactive dual screens, it provides users with a
comfortable, considerate, and high-quality driving experience.
Changan LAMORE
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Changan HUNTER PRO is positioned as a “sporty off-road
pickup truck”. Equipped with 2.0T BlueCore power, ZF 8-speed
automatic transmission, BorgWarner four-wheel drive system, five
free driving modes, and high-performance off-road suspension, all
terrain locking system, 18 inch all terrain off-road tires, a
maximum 800mm high wading hose, 14,000 pound electric
winch, and a 2.5-ton towing qualification, it delivers the desired
pickup truck life for users who are brave in exploration and full of
passion.
Changan HUNTER PRO
3. Key models planned for 2024
In 2024, the company will launch a number of new and modified products, including more than 8 new energy products,
accelerating the pace of transformation towards an intelligent low-carbon mobility technology company.
(1) Strengthen the new energy vehicles line-up and create new digital and intelligent vehicles. In 2024, a total of eight new
products such as E07, C798, DEEPAL G318, AVATR 15, and modified products such as NEVO A07, DEEPAL SL03, DEEPAL S7
will be launched one after another, which will further strengthen Changan’s position in the new energy market. E07 is positioned as a
medium and large digital intelligence new vehicle, based on SDA platform, with variable body shape, leading intelligent driving and
intelligent services, to provide users with outdoor mobile third space. C798 is positioned as a new benchmark for medium and large
SUVs to create digital intelligence products with superior digital intelligence, leapfrog space, leading comfort and leading electric
drive to meet the needs of mainstream family users. DEEPAL G318 is positioned as an off-road compact SUV, with tough styling,
intelligent driving, intelligent interaction and intelligent ecology as the highlights to meet the differentiated and intelligent needs of
young users. AVATR 15 is positioned as a high-end multi-person smart electric vehicle, with forward-looking styling design,
changeable smart space, and full-scene intelligent driving as the product selling points to meet the full-scene travel needs of high-end
smart electric vehicle users.
(2) Consolidate the foundation and expand new market for ICE vehicle products to lead in their market segments. In
2024, Changan ICE vehicles will focus on the core market, and all IP products will be renewed to create blockbuster products. The
company will launch five new products, including C928 and EADO series, focusing on the two labels of “BlueCore Power” and
“Standard Intelligent Driving” to further strengthen their competitive leadership and consolidate their position in ICE vehicle market.
C928 is positioned as a compact classic SUV, with a new exterior design, second-generation BlueCore power and standard intelligent
driving, providing users with high-quality and efficient travel tool that is “good-looking, easy to drive, and energy-saving”.
Note: The features and configurations mentioned in “II. Analysis of Core Business in 2023” in Chapter 3 are not a true
representation of the features and configurations of actual vehicles. The actual configuration and functions of the model shall be
subject to the official product configuration table.
Vehicle manufacturing production and operation during the reporting period
√ Applicable □ Not applicable
Production and sales of vehicles
Production Volume (Unit) Sales Volume (Unit)
YoY YoY
2023 2022 increase/decrease 2023 2022 increase/decrease
(%) (%)
By Region
Domestic 2,583,215 2,298,419 12.39% 2,194,598 2,096,982 4.66%
Overseas 0 0 0 358,454 249,169 43.86%
Note: 1. The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates.
2. Production capacity: In 2023, the design capacity is 2.14 million vehicles. The capacity utilization rate reached 87.31%. In
the past three years, the backward production capacity for 0.63 million vehicles and 0.99 million engines have been shut down.
Upgrade the capacity for 0.57 million intelligent connected and new energy vehicles, and build 0.21 million sets for PACK, 0.45 sets
for electric drive, and 0.3 million sets for electric control production capacity. The capacity structure is gradually adjusted to new
energy.
Cause description of over 30% year-on-year increase/decrease
√ Applicable □ Not applicable
17
Chongqing Changan Automobile Company Limited 2023 Annual Report
Mainly due to the following reasons: firstly, Chinese automotive companies are increasingly valuing the development of
overseas markets and accelerating their "overseas" layout speed; Secondly, in recent years, Chinese brands represented by Changan
Automobile have gradually established competitive advantages in the fields of new energy and intelligence, and their comprehensive
product strength has significantly increased; Thirdly, the large-scale export of new energy vehicles drives the overall export growth.
Construction of parts supporting system
Changan Automobile’s main models, such as the CS series, UNI series, AVATR, DEEPAL, and NEVO are equipped with parts
that combine in-house production and external procurement. Key components, such as Changan new generation 7-in-1
ultra-integrated electric drive (industry first, 163 patents) are independently developed by the company, which can effectively control
costs and enhance the quality control of key parts through self-production; We have cooperated with over 800 international and
domestic first-class parts and components enterprises, such as Huawei autonomous driving and intelligent cockpit, CATL new energy
battery, Chongqing Qingshan Industry 7-speed wet dual clutch transmission, TINNOVE intelligent system, etc. We have established
a cooperative relationship of mutual trust, transparency and collaboration with partners, concentrating on “optimal product”, “lowest
cost”, “strongest flexibility”, and “strongest partnership” to build an independent, controllable, safe, and reliable supply chain.
Our supplier system capability was solidly improved and more than 1,322 people studied QCA (Changan Automobile Supplier
Quality Capability Assessment System) series courses. We completed 72 QCA certification audits, 87 supplier laboratory
accreditation and 114 on-site evaluation of manufacturing process capabilities in 2023. We established quality capability evaluation
strategies and implemented hierarchical management to continuously promote the improvement of supplier quality management
capabilities.
The production and operation of auto parts during the reporting period
□Applicable √ Not applicable
The company conducts auto finance business
□Applicable √ Not applicable
The company conducts NEV-related business
√ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
Production Capacity
By Category Production Volume (unit) Sales Volume (unit)
(unit)
New Energy Passenger Vehicle 1,200,000 450,087 439,531
New Energy Commercial Vehicle 170,000 35,287 34,514
Note: The revenue from the sales of new energy vehicles within the scope of the company's consolidated financial statements is RMB
38,545 million in the reporting period.
III. Core Competence Analysis
(1) Scientific and technological R&D capability. The company has always insisted on leading high-quality development with
scientific and technological innovation. It has realized a number of industry-leading technologies and initiated mass production based
on the driving force featuring “user demand + technological innovation”, and has further strengthened its independent innovation
capability. In the field of new energy technology, the first standard electric core product of Changan’s “Golden Shield” officially
rolled off the production line, equipped with a number of cutting-edge technologies in the industry, such as “fast-ion ring graphite”
and “ultra-high-conductivity electrolyte”. The “Golden Shield” battery has been installed in many products of NEVO and DEEPAL
Automobile; Force ultra-integrated electric drive and intelligent dual drive (iDD) transmission have been awarded “World’s Top 10
Electric Drive”, “World’s Top 10 New Energy Vehicle Powertrain” and “World’s Top 10 Hybrid Powertrain”. The key technology of
hydrogen fuel engine gained another milestone, which means that the second generation of hydrogen engine was successfully ignited.
In the field of intelligence, the first digital intelligent new car equipped with the SDA platform architecture labeled “Smart Brain”,
“Smart Body” and “Smart Service” made its debut. We have made breakthroughs in APA 7.0 remote valet parking, NID 3.0
navigation assisted driving, end-to-cloud integrated communication, display enhancement, and other technologies. Some of these
technologies have already been mass-produced and deployed. As of December 2023, the company owned 9,322 domestic and
international patents, including 2,704 invention patents. Its R&D strength has ranked first in the industry in the evaluation of national
enterprise technology centers for seven consecutive terms spanning 14 years.
(2) Product definition capability. The company adheres to a user-centric and innovation-driven approach to build a world-class
product definition capability system. Against the backdrop of increasingly diversified user demands and market changes, the product
18
Chongqing Changan Automobile Company Limited 2023 Annual Report
definition business breaks traditional rules by disrupting and leapfrogging innovation, reconstructing the product definition capability
system, and facilitating faster, more accurate, and more aggressive product-definition. The company optimizes its user research
insight capabilities by adopting innovative and immersive research methods to uncover users’ implicit needs, ensuring more precise
user insights. It also optimizes product-definition capabilities by continuously improving and advancing EMD (Experience-Driven
Design) scenario definitions, creating high-value differentiated scenarios. Additionally, it introduces software service definitions to
build unified, iterative, and profitable platform-oriented software service products, ensuring differentiation in homogeneous
competition. In 2023, the company’s key products performed well, with Changan’s ICE vehicle UNI achieving sales exceeding one
million units. The CS75 series and EADO series performed excellently in their respective segments of the ICE vehicle market. New
energy products experienced rapid growth, surpassing industry growth rates. Key products such as the DEEPAL SL03, DEEPAL S7,
and NEVO A07 were well-received in the market, quickly gaining traction upon their launch. The company will continue to focus on
user experience, concentrate on core scenarios, seize the window of opportunity for intelligent new cars, accelerating the realization
of strategic goals for electrification transformation.
(3) Global deployment capability. The company has launched the Vast Ocean Plan, pressing the accelerator key for Changan
Automobile ’ s overseas expansion. The annual overseas export sales reached 358,000 units, an increase of 43.9% year-on-year.
Company has clearly defined the overseas development goals, establishing five regional business units. Overseas deployment is
becoming increasingly sophisticated. The company hosted a brand launch event in Southeast Asia, officially introducing DEEPAL’s
two vehicle models into Thailand, expanding its footprint globally and initiating a new chapter in expanding global markets. It has
also established its first overseas production base — Changan Automobile Thailand Manufacturing Base, truly achieving localized
operations. In countries such as Saudi Arabia, Chile, and Mexico, the market sales rank among the forefront of Chinese brands. In the
future, the company will integrate resources, accelerate its overseas expansion, speed up the layout and channel construction in the
five major global markets, further enhance its overseas market capabilities, and remain committed to providing excellent technology
products and ultimate service experiences for global users. It aims to contribute to the construction of global economic integration,
promote high-quality joint construction of the Belt and Road Initiative, and make new and greater contributions.
(4) Brand upward capability. The company ’ s brand image has further elevated to a new level, continuously building
outstanding brands with distinctiveness, value, long-term viability, and recognition. In terms of brand enhancement, the brand image
continues to improve, with the establishment of five major brand architectures, completing the layout of three major intelligent
electric vehicle brands: AVATR, DEEPAL and NEVO. The company has released the Vast Ocean Plan, moving towards becoming a
world-class brand. It has deepened the Mission of Shangri-La for new energy vehicles, launching the Changan “Golden Shield”
battery brand. The intelligent "Dubhe Plan" has been put in place to continuously build a "new auto species, new ecosystem". We
have seized the opportunities in the smart new car arena, showcased Changan ’ s technology and achievements in new cars, and
achieved brand leapfrogging. In terms of brand promotion, the company has held brand launch event in Southeast Asia, releasing
strategic plans for the Thai market, with cumulative overseas communication covering 171 million people, enhancing brand
awareness in the Thai market. We collaborated with Xinhua News Agency to launch the “ Belt and Road Global Tour ” IP
cooperation, showcasing “Made in China” as a new calling card to the world, helping to further implement Changan’s overseas
strategic plan and enhance brand international influence. Changan had an intensive cooperation with the “Three Body Problem” IP
and became the exclusive title sponsor of the Bilibili “Three Body Problem” animation, with a viewership of 620 million, and a
cumulative exposure of 4.66 billion across the entire network, effectively enhancing the brand's youthfulness and perception of
intelligence. We have innovatively incubated the“SDA Technology Laboratory”proprietary IP, comprehensively and systematically
showcasing Changan Automobile as a leader in the era of smart new cars, building Changan Automobile's image as a technology
enterprise, with a cumulative exposure exceeding 530 million.
(5) Cultural leadership capability. The company deeply practices advanced culture and releases the cutting-edge cultural
concept 4.0, making culture a core competitive advantage. By telling a good story of Changan and promoting Changan culture, as
well as conducting learning and promotional activities and organizing competitions, it provides cultural leadership for the Vast Ocean
Plan. Around the key areas of production and operation, it organizes educational activities on situational tasks and oath-taking
meetings to consolidate the force of advancement. It practices the “dual caring” concept, deepens the “five assistance" support,
addresses employees ’ urgent needs and concerns, and continuously undertakes practical and beneficial tasks for employees,
enhancing their sense of achievement, happiness, and security. It has resolutely fulfilled the social responsibility of state-owned
enterprises, and provided immediate aid to disaster areas such as North China’s heavy rain and earthquakes in Gansu, with a total
donation of 16.5 million yuan. It has given comprehensive assistance to Yunnan ’ s Luxi, Yanshan counties, and Chongqing ’ s
Youyang, continuously improving the quality and effectiveness of assistance, with a total allocated fund of 10.6 million yuan. It has
fully implemented the rural revitalization strategy, deepening assistance to the tea oil industry in Youyang, forming a Changan
development model featuring “enterprises join hands to drive industry development” which has been included in the State Council’
s innovative cases of rural revitalization.
(6) Talent organization capability. The company adheres to the strategy of strengthening the enterprise with talents,
continuously optimizing its organization, strengthening its talent pool, and further solidifying support for strategic transformation.
Regarding talent, it focuses on both internal development and external recruitment, creating a global hub for outstanding talent to
gather and grow. It has brought in foreign vice presidents to empower the management team with a global perspective. In important
areas such as design, autonomous driving, battery technology, and big data, widely introduce industry-leading and senior talents, and
achieve full coverage of senior talents in important fields. It has strengthened the cultivation of young cadres, continuously
rejuvenating the structure of deputy general managers and managers. In terms of organization, the company ensures that its
organizational structure is aligned with its strategy in a timely manner. Regarding mechanisms, it has continuously innovated
incentive and constraint mechanisms, incorporating efficiency into comprehensive evaluations, stimulating the powerful vitality of
enterprise talents.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
IV. Analysis of Main Business
1. Overview
Compared with 2022, the company's operating revenue was 151.298 billion yuan, a year-on-year increase of 24.78%; The net
operating cash flow was 19.861 billion yuan, a year-on-year increase of 250.52%. The net profit attributable to shareholders of the
listed company during the reporting period was 11.327 billion yuan, a year-on-year increase of 45.25%. The net profit attributable to
shareholders of the listed company after deducting non recurring gains and losses was 3.782 billion yuan, a year-on-year increase of
16.19%, mainly due to the increase in sales volume and improvement in operating quality.
Please refer to “II Analysis of Main Business” under this chapter.
2. Income and cost
(1) Revenue
2023 2022
YoY
Proportion of Proportion of
increase/decrease
Amount (RMB) operating revenue Amount (RMB) operating revenue
(%)
（%） (%)
Operating revenue 151,297,706,646.97 121,252,864,085.40 24.78%
By industry
Automotive business 151,297,706,646.97 100% 121,252,864,085.40 100% 24.78%
By product
Vehicles 145,303,581,062.21 96.04% 114,066,406,439.25 94.07% 27.39%
Services and others 5,994,125,584.76 3.96% 7,186,457,646.15 5.93% -16.59%
By region
China 130,761,245,570.53 86.43% 107,841,417,091.18 88.94% 21.25%
Overseas 20,536,461,076.44 13.57% 13,411,446,994.22 11.06% 53.13%
By sales model
Distribution 132,864,188,744.96 87.82% 103,713,980,228.17 85.53% 28.11%
Direct selling 12,439,392,317.25 8.22% 10,352,426,211.08 8.54% 20.16%
Others 5,994,125,584.76 3.96% 7,186,457,646.15 5.93% -16.59%
Note: The Company has 3,913 dealers at the end of the reporting period.
(2) The business, products, regions and sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√ Applicable □ Not applicable
YoY YoY YoY
Operating Revenue Operating Cost Gross increase/decrease of increase/decrease increase/decrease
(RMB) (RMB) margin operating income of operating cost of gross margin
(%) (%) (%)
By industry
Automotive
151,297,706,646.97 123,522,656,353.72 18.36% 24.78% 28.12% -2.13%
business
By product
Vehicles 145,303,581,062.21 119,133,386,315.31 18.01% 27.39% 30.05% -1.68%
By region
China 130,761,245,570.53 108,069,640,682.38 17.35% 21.25% 28.91% -4.91%
By sales model
Distribution 132,864,188,744.96 107,715,814,183.91 18.93% 28.11% 31.51% -2.09%
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business data after
adjustment according to the caliber of the end of the report period in the latest year.
□ Applicable √ Not applicable
20
Chongqing Changan Automobile Company Limited 2023 Annual Report
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
By business Item 2023 2022 YoY increase/decrease (%)
Sales volume (unit) 2,553,052 2,346,151 8.82%
Automotive business Production volume (unit) 2,583,215 2,298,419 12.39%
Inventory volume (unit) 66,387 54,900 20.92%
Note: The above sales, production and inventory volume includes vehicles produced and sold by the Company and its JVs and
associates. The analysis over market share is based on the data from China Automobile Industry Association.
Cause description of over 30% year-on-year increase/decrease
□ Applicable √ Not applicable
(4) Performance of major sales and purchase contracts as of the end of the reporting period
□ Applicable √ Not applicable
(5) Cost
2023 2022
Proportion Proportion YoY
By business Item of of increase/decrease
Amount (RMB) Amount (RMB) (%)
operational operational
cost (%) cost (%)
Products 119,133,386,315.31 96.45% 91,604,889,306.21 95.02% 30.05%
Automotive
business Services and
4,389,270,038.41 3.55% 4,804,721,567.55 4.98% -8.65%
others
Total 123,522,656,353.72 100.00% 96,409,610,873.76 100.00% 28.12%
(6) Whether the scope of consolidation was changed during the reporting period
√ Applicable □ Not applicable
During the reporting period, the company has acquired the equity of Deepal Automotive Technology Co., Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership), with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.
(7) Major changes or adjustment in business, product or service of the Company in the reporting period
□ Applicable √ Not applicable
(8) Major customers and suppliers
Major customers
Total sales revenue from top five customer (RMB) 11,855,261,791.88
Proportion of total sales revenue from top 5 customers in annual total sales
7.84%
revenue (%)
Proportion of total sales revenue from affiliated parties in the top five
6.04%
customers in annual total sales revenue (%)
The top 5 customers
Proportion of annual total sales
No. Customer Revenue (RMB)
revenue (%)
1 Customer One 3,005,944,066.62 1.99%
21
Chongqing Changan Automobile Company Limited 2023 Annual Report
2 Customer Two 2,728,785,805.44 1.80%
3 Customer Three 2,615,879,134.66 1.73%
4 Customer Four 1,767,117,262.72 1.17%
5 Customer Five 1,737,535,522.44 1.15%
Total 11,855,261,791.88 7.84%
Other information regarding major customers
√ Applicable □ Not applicable
One of the above customers is a joint venture of the Company, and there customers are controlled by the same ultimate holding
company. Please refer to item 5 of Note 10 "Related Party Relationships and Transactions" in Chapter 10.
Major suppliers
Total purchase amount from top five suppliers (RMB) 22,980,559,004.09
Proportion of total purchase amount from top five suppliers in annual total
18.60%
purchase amount (%)
Proportion of total purchase amount from affiliated parties of the top five
12.60%
suppliers in total annual total purchase amount (%)
Top 5 suppliers
Proportion of annual total purchase
No. Supplier Purchase amount (RMB)
amount (%)
1 Supplier One 7,909,257,881.61 6.40%
2 Supplier Two 5,232,393,837.67 4.24%
3 Supplier Three 5,165,658,104.43 4.18%
4 Supplier Four 2,501,907,444.50 2.02%
5 Supplier Five 2,171,341,735.88 1.76%
Total 22,980,559,004.09 18.60%
Other information regarding major suppliers
√ Applicable □ Not applicable
One of the above suppliers is a joint venture of the Company, two suppliers are controlled by the same ultimate holding
company. Please refer to item 5 of note 10 “Related Party Relationships and Transactions” in Chapter 10.
3. Expenses
Item 2023 2022 YoY Change (%) Explanation of major changes
Mainly due to the acquisition of
Selling expenses
7,645,205,592.88 5,138,270,162.95 48.79% Deepal Auto, its sales expenses were
(RMB)
included in the merger and increased
Administrative
4,097,537,529.67 3,532,458,198.76 16.00%
expenses (RMB)
Financial costs
-897,343,739.80 -1,017,305,743.08 11.79%
(RMB)
Mainly due to the acquisition of
R&D expenses Deepal Auto, the R&D expenses
5,979,844,653.23 4,315,444,864.76 38.57%
(RMB) increased due to inclusion in the
merger
4. Research and Development Investment
√Applicable □ Not applicable
Expected impact on the
Projects Purpose Progress Goals future development of the
Company
Advanced Comfort The first product in a brand Complete the Develop new electric vehicle Develop new products to
Car Development new series, enhancing market annual models and launch them for enhance market
22
Chongqing Changan Automobile Company Limited 2023 Annual Report
competitiveness development task sale as planned competitiveness
New electric SUV products,
expanding the lineup of deep Complete the Develop new electric vehicle Develop new products to
Development of super
blue car models, and annual models and launch them for enhance market
fun electric SUVs
enhancing market development task sale as planned competitiveness
competitiveness
Develop a new generation of
The all-new The new generation of smart Complete the Develop new products to
plug-in hybrid models and
generation of plug-in electric sedans enhances annual enhance market
launch them for sale as
hybrid models market competitiveness development task competitiveness
planned
Creating a "ultra-low power Support the "dual carbon"
Research on Energy Continuously improving
consumption" technology Complete the strategy and complete the
Consumption Chang'an's positive research
label that balances user annual storage of electricity
Technology for New and development system for
experience in working development task consumption technology
Automobile Vehicles electricity consumption
conditions shelves
Development of
Development and validation Realize independent and
high-performance and
of high-performance and Complete research tasks for controllable software code,
scalable fluid Complete the
scalable fluid simulation and each section, avoid software supply
simulation and annual
optimization software for high-performance and interruption and bottleneck
optimization software development task
automotive research and scalable fluid simulation risks, and break foreign
for automotive
development software monopolies
development
The essential features of the
Development of Complete the
Building a leading software platform's first model have New car transformation and
intelligent electric annual
and hardware platform been defined and 98% of the upgrading
digital platform development task
features have been developed
R&D staff
2023 2022 Change over the previous year (%)
Number of R&D staff (person) 10,972 7,899 38.90%
Proportion of R&D personnel 22.34% 18.42% 3.92%
Education background -- -- --
High School diploma or below
180 262 -31.30%
(person)
Bachelor’s degree (person) 7,794 5,819 33.94%
Master’s degree (person) 2,903 1,738 67.03%
Doctor’s degree (person) 95 80 18.75%
Age structure -- -- --
Aged below 30 (person) 3,718 2,217 67.70%
Aged 30 - 40 (person) 6,096 4,682 30.20%
Aged above 40 (person) 1,158 1,000 15.80%
R&D Input
Change over the previous year
2023 2022
(%)
Amount of R&D Input (RMB) 9,007,550,532.89 5,677,807,968.36 58.64%
Proportion of R&D Input in
5.95% 4.68% 1.27%
Operating Revenue (%)
Amount of Capitalized R&D
3,027,705,879.66 1,362,363,103.60 122.24%
Expenditure (RMB)
Proportion of Capitalized R&D
33.61% 23.99% 9.62%
Expenditure in R&D Input (%)
Cause and effects of significant changes in composition of the R&D staff
√ Applicable □ Not applicable
The company’s R&D personnel increased by 38.9% year-on-year, mainly due to the increase in the number of R&D personnel
as a result of the merger and acquisition of DEEPAL Auto. DEEPAL is the core carrier of the company’s Mission of Shangri-La,
carrying Changan Automobile’s strategic mission of transitioning to new energy. The merger can strengthen the strategic integration
and resource coordination between Changan Auto and DEEPAL Auto, accelerating to building Changan’s new energy brands into
the industry’s leading digital electric vehicle brands.
Cause for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□ Applicable √ Not applicable
Cause and Reasonable Explanation of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
23
Chongqing Changan Automobile Company Limited 2023 Annual Report
5. Cash Flow
Unit: RMB
YoY Change
Item 2023 2022
(%)
Subtotal of cash inflows from operating activities 174,083,254,307.51 127,195,228,996.80 36.86%
Subtotal of cash outflows from operating activities 154,221,788,069.95 121,528,882,138.28 26.90%
Net cash flows from operating activities 19,861,466,237.56 5,666,346,858.52 250.52%
Subtotal of cash inflows from investing activities 6,989,273,666.33 2,492,217,372.08 180.44%
Subtotal of cash outflows from investing activities 13,197,419,195.66 5,446,189,241.05 142.32%
Net cash flows from investing activities -6,208,145,529.33 -2,953,971,868.97 -110.16%
Subtotal of cash inflows from financing activities 1,018,615,006.28 2,792,324,450.65 -63.52%
Subtotal of cash outflows from financing activities 3,146,923,971.81 2,567,894,182.64 22.55%
Net cash flows from financing activities -2,128,308,965.53 224,430,268.01 -1048.32%
Net increase in cash and cash equivalents 11,434,522,853.37 2,973,518,212.75 284.55%
Description of major influence factors of significant change of relevant data on a year-on-year basis
√ Applicable □ Not applicable
In 2023, the net cash flow generated from operating activities increased by 14.195 billion yuan compared to the previous year,
mainly due to sales growth and the inclusion of Deepal Auto in the merger this year.
The net cash flow generated from investment activities decreased by 3.254 billion yuan compared to the previous year. Firstly,
the dividends of joint ventures decreased compared to the previous year, resulting in a decrease in "cash received from obtaining
investment income". Secondly, according to the business development plan, the expenditure on purchasing and constructing fixed
assets increased compared to the previous year, resulting in an increase in "cash paid for purchasing fixed assets, intangible assets,
and other long-term assets". Thirdly, there were new term deposits that could not be withdrawn in advance, resulting in an increase in
"other cash paid related to investment activities" compared to the previous year. Fourthly, the cash balance of Deepal Auto on the
purchase date exceeded the portion of the company's cash offer to purchase its equity, resulting in an increase in "other cash received
related to investment activities".
The net cash flow generated from financing activities decreased by RMB 2.353 billion compared to the previous year, mainly
due to the issuance of bonds of RMB 1 billion in the previous year, which was not present in the current year. This resulted in a
decrease in "cash received from borrowing" compared to the previous year, as well as an increase in dividend expenses, leading to an
increase in "cash paid for distributing dividends, profits, or paying interest" compared to the previous year.
Cause for the significant difference between net cash flows from operating activities and net profit in the reporting period
√ Applicable □ Not applicable
As for the significant difference between net cash flows from operating activities and net profit in the reporting period, please
refer to the Item 64, Note 5 “Supplementary Information of the Cash Flow Statement” in the Auditor’s Report.
V. Analysis of Non-Main Business
√ Applicable □ Not applicable
Whether it is sustainable
Amount (RMB) Proportion of profits (%) Explanation
or not
Except for the income of
5.021 billion yuan
Please refer to the Item 5,
generated by the
Note 54 “Supplementary
company's merger of
Return on investment 3,050,413,045.10 28.81% Information of the Cash
enterprises not under the
Flow Statement” in the
same control as Deepal
Auditor’s Report.
Auto, other sustainable
activities
Profits or losses of fair
-19,061,189.53 -0.18% No
value change
Please refer to the Item 5,
Note 57 “Supplementary
Impairment losses on
-813,828,346.53 -7.69% Information of the Cash No
assets
Flow Statement” in the
Auditor’s Report.
Non-operating income 169,793,538.35 1.60% No
24
Chongqing Changan Automobile Company Limited 2023 Annual Report
Non-operating expenses 28,073,391.83 0.27% No
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
31 December 2023 31 December 2022 Increase/Dec
rease in Description of
Proportion of Proportion of
Amount (RMB) Amount (RMB) Proportion significant changes
total assets (%) total assets (%)
(%)
Monetary fund 64,871,042,747.88 34.11% 53,530,183,827.34 36.65% -2.54%
Receivables 2,411,796,419.07 1.27% 3,068,414,415.29 2.10% -0.83%
Contract assets 1,442,876,966.30 0.76% 458,389,187.10 0.31% 0.45%
Inventories 13,465,847,696.93 7.08% 5,823,307,512.90 3.99% 3.09%
Investment
6,196,003.48 0.00% 6,422,715.04 0.00% 0.00%
property
Long-term equity
13,787,391,985.47 7.25% 14,406,662,456.28 9.86% -2.61%
investment
Fixed assets 19,994,084,908.14 10.51% 19,346,764,691.44 13.25% -2.74%
Construction in
1,914,345,359.83 1.01% 1,387,898,218.64 0.95% 0.06%
progress
Right-of-use
209,480,676.04 0.11% 100,813,386.01 0.07% 0.04%
assets
Short-term loans 30,039,416.74 0.02% 29,000,000.00 0.02% 0.00%
Mainly due to increased
Contract sales and an increase in
7,923,792,852.77 4.17% 5,655,256,792.66 3.87% 0.30%
liabilities advance payments from
distributors
Long-term loans 72,000,000.00 0.04% 36,000,000.00 0.02% 0.02%
Lease liabilities 134,254,398.07 0.07% 60,205,397.98 0.04% 0.03%
Mainly due to the
addition of fixed deposits
Other current
9,735,453,361.32 5.12% 1,054,779,668.19 0.72% 4.40% that cannot be withdrawn
assets
in advance this year, the
impact of reclassification
Mainly due to the
acquisition of Deep Blue
intangible assets 15,045,563,649.79 7.91% 4,446,385,255.68 3.04% 4.87%
Motors, increasing
intangible assets
Mainly due to the merger
and acquisition of Deep
Blue Automobile, the
Notes payable 37,456,669,928.07 19.70% 22,072,793,864.83 15.11% 4.59%
increase in its notes
payable was included in
the merger
Mainly due to the
acquisition of Deep Blue
Other current
8,897,936,399.92 4.68% 6,627,044,667.62 4.54% 0.14% Motors, the provision for
liabilities
expenses was included in
the merger and increased
Mainly due to the
acquisition of Deep Blue
Estimated Automobile, its expected
6,277,041,416.79 3.30% 4,589,299,321.49 3.14% 0.16%
liabilities liabilities will be
included in the merger
and increase
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
25
Chongqing Changan Automobile Company Limited 2023 Annual Report
Unit: RMB
Accumulated Provision
Changes in Fair
Fair Value for Amount of Amount of Sales
Opening Value Gains
Item Changes Impairment Purchase in in Current Other Changes Closing Balance
Balance and Losses in
Included in in Current Current Period Period
Current Period
Equity Period
Financial assets
Financial assets
held for trading
(excluding 280,315,571.09 -19,061,189.53 93,735,034.27 167,519,347.29
derivative
financial assets)
Investments in
other equity 489,950,000.00 14,240,082.71 504,190,082.71
instruments
Subtotal
770,265,571.09 -19,061,189.53 14,240,082.71 93,735,034.27 671,709,430.00
financial assets
Others - - - - -
Total 770,265,571.09 -19,061,189.53 14,240,082.71 93,735,034.27 671,709,430.00
Financial
- - - - -
liabilities
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading Financial
Assets” and “11. Investments in Other Equity Instruments” in Note 5 of Auditor’s Report .
Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
3. Limitation of asset rights as of the end of the reporting period
Unit: RMB
Item Book Value at the End of Period Limitation Reason
Monetary fund 945,084,846.77 Acceptance bill deposit
Bill receivable 7,309,419,058.87 Pledge for issuing payable bills
Total 8,254,503,905.64
VII. Analysis of Investments
1. Overall situation
√ Applicable □ Not applicable
Investment amount for the reporting period Investment amount for the previous reporting
YoY Change (%)
(RMB) period (RMB)
8,798,279,380.10 8,135,765,655.11 8.14%
Joint investment between the Company and professional investment institutions:
Subscribed Subscrip Actual
Name of investment capital tion capital
Progress
institutions contribution ratio contribution
(RMB) (%) (RMB)
Chongqing Changyu The fund completed the registration work of the China
Private Equity Investment Securities Investment Fund Industry Association on
348,000,000 23.20% 69,600,000
Fund Partnership Enterprise December 7th, 2023, with the registration code
(Limited Partnership) SACR66
Chongqing Changan As of the end of the reporting period, Chongqing
Innovation Private Equity Changan Innovation Private Equity Investment Fund
Investment Fund 300,000,000 46.08% 70,230,769 Partnership Enterprise (Limited Partnership) increased
Partnership Enterprise its capital by 150 million yuan to the company's joint
(Limited Partnership) venture Avrta in 2023
26
Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Security investments
√ Applicable □ Not applicable
Accumulat
Gains and Purchase
ed fair
Initial Accountin Book value at losses from
value
amount Sales amount Gains and Book value at
Account
Security Stock g the beginning changes in fair during the during the losses of the the end of the Source
Abbreviation investment cost changes ing
type code measurem of the reporting value during reporting reporting period reporting reporting of funds
（RMB） included subject
ent model period（RMB） the period period （RMB） period（RMB）period（RMB）
in equity
（RMB） （RMB）
（RMB）
Fair value Trading Self-ow
Southwest
Stock 301215 98,999,997.80 measurem 125,052,628.80 35,692,104.47 0.00 0.00 0.00 37,098,946.54 160,744,733.27 financial ned
Securities
ent assets funds
China Fair value Trading Self-ow
Stock 600369 Automobile 50,000,000.00 measurem 126,112,500.00 5,349,310.72 0.00 0.00 131,461,810.72 5,349,310.72 0.00 financial ned
Corporation ent assets funds
Total 148,999,997.80 -- 251,165,128.80 41,041,415.19 0.00 0.00 131,461,810.72 42,448,257.26 160,744,733.27 -- --
(2) Derivative investments
√ Applicable □ Not applicable
1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
Unit: 10,000 RMB
Investment Proportion of
Profit and loss
Initial Accumulated Amount of Amount of amount at investment amount
Initial from changes
derivatives changes in fair purchase in sales in the the end of at the end of the
Investment type of derivatives investment in fair value in
investment value included in the reporting reporting the reporting period to
amount the current
amount equity period period reporting net assets of the
period
period Company
Forward Exchange 85,419 85,419 -6,008 -4,197 238,576 232,022 91,973 1.28%
Total 85,419 85,419 -6,008 -4,197 238,576 232,022 91,973 1.28%
Explanation of changes of the
accounting policies and accounting
principles of the Company’s
Not applicable
hedging during the reporting period
compared with the previous
reporting period
Description of actual gains/losses
During the reporting period, RMB 2,320.22 million was sold, and the actual transaction profit was RMB 18.11 million.
during the reporting period
Changan Automobile adheres to the principle of risk neutrality in carrying out forward foreign exchange settlement and
sales business, based on normal production and operation, locks in income and cost through forward foreign exchange
Description of hedging effect
transactions, avoids the risk of exchange rate fluctuations, reduces the uncertainty of operating profits, and ensures the
realization of annual operating objectives.
Source of funds Self-owned funds
Risk analysis
1. Market risk: In the case of large changes in the exchange rate, the difference between the exchange rate of the forward
Risk analysis and control measures exchange contract and the actual exchange rate on the expiration date may cause the Company to lose money.
for derivatives investment during 2. Liquidity risk: Due to inaccurate predictions, the delivery date signed for foreign exchange hedging business is
the reporting period (including but inconsistent with the actual delivery date, resulting in insufficient funds available for delivery, leading to liquidity risks
not limited to market risk, liquidity and inability to deliver on schedule.
risk, credit risk, operational risk, 3. Default risk: Due to inaccurate forecasts, the delivery date signed by the forward exchange transaction is inconsistent
legal risk, etc.) with the actual delivery period, resulting in the delayed delivery risk caused by the failure of the forward exchange
transaction to be delivered at the agreed time.
4. Operational risk: Risks may arise due to inadequate internal control mechanisms and unprofessional operators.
27
Chongqing Changan Automobile Company Limited 2023 Annual Report
5. Legal risks: If the terms of the transaction contract are not clear, the Company may face legal risks.
Risk control measures
1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market, strengthen the study of
exchange rates, study the future exchange rate trends, improve the forecasting ability of exchange rates, and reduce the
impact of exchange rate fluctuations on the Company.
2. In order to prevent delayed transaction settlement of forward exchange, the business management departments of the
Company and its subsidiaries will track the progress of payment and collection, avoid overdue payments, and try to reduce
the risk to the minimum.
3. The Company and its subsidiaries will strengthen business knowledge training, improve the comprehensive business
quality of relevant personnel, and improve the ability to identify and prevent exchange rate risks.
4. The Company has formulated the “Measures for the Administration of Forward Exchange Trading Business (Trial)”,
which clearly stipulates the business operation principles, approval authority, internal operation processes and
requirements, risk handling procedures, etc., and the operation must be handled in strict accordance with the requirements
of the measurements.
Changes in market price or fair
value of invested derivatives during The Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprises Article
the reporting period (the specific 22 - Recognition and Measurement of Financial Instruments”, and the fair value is basically measured and recognized
methods, relevant assumptions and with reference to bank pricing. During the reporting period, the gain on the change in fair value of forward exchange
parameters used in the analysis of contracts was RMB -60.08 million.
the fair value should be disclosed)
Whether it is involved in a lawsuit Not applicable
Disclosure date of derivatives
investment approval board March 16th, 2023
announcement
Disclosure date of derivatives
investment approval shareholders June 29th, 2023
meeting announcement
The company and its subsidiaries carry out foreign exchange hedging business on the basis of normal production and
operation, with prudence as the principle, with the purpose of currency hedging and avoiding exchange rate risks. By
locking in exchange rates to reduce exchange rate volatility risks, it will not affect the normal development of the main
Opinions of independent directors
business. The company has formulated the "Management Measures for Forward Foreign Exchange Trading Business
on the Company’s derivatives
(Trial)" and improved relevant internal control processes. The targeted risk control measures taken by the company are
investment and risk control
feasible and there is no situation that harms the interests of the company, shareholders, especially small and medium-sized
shareholders. The deliberation process of this proposal complies with relevant laws and regulations as well as the
provisions of the Company's Articles of Association.
2） Derivative investment for the purpose of speculation during the reporting period
□ Applicable √ Not applicable
During the reporting period, there was no derivative investment for the purpose of speculation.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
The total
Proportio
The used amount of Cumulative The purpose Amount of
n of total
amount of Total raised total amount The total and funds
Net amount raised
Types of Total funds total funds accumulated funds with of raised amount of placement raised idle
Year of raised funds
raise raised raised in use of funds purpose funds with unused of the for more
funds with
the current raised changed in purpose funds unused than two
purpose
period reporting changed funds years
changed
period
Deposited
Non-publi in a
2020 c offering 600,000.00598,608.41127,866.62 597,126.69 0 160,545.86 26.82%10,914.53 dedicated 0
of shares account for
raised funds
Total -- 600,000.00598,608.41127,866.62 597,126.69 0 160,545.86 26.82%10,914.53 -- 0
Description of the overall use of raised funds
1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in a
timely, true, accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the Shenzhen
Stock Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its
obligation to disclose the investment direction and progress of the raised funds.
28
Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The net amount of raised funds after deducting other issuance expenses is RMB 5,986.08 million, the actual net amount of raised funds after
adjustment is RMB 6,039.30 million. The Company used the raised funds of RMB 3,252.08 million, RMB 747.22 million, RMB 693.30 million and
RMB 1,278.67 million respectively in 2020, 2021, 2022 and 2023. As of December 31, 2023, the Company has used a total of RMB 5,971.27 million
of the raised funds.
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMB
Cumulative
Investment Whether the Whether the
Whether Total Adjusted investment Whether it
Committed projects and Amount progress as of project has Benefits feasibility of
the project committed total amount as meets the
placement of extra funds invested the end of the reached the realized this the project has
has been investment of investment of the end expected
raised this year period% (3) = intended year changed
changed raised funds (1) of the return
(2)/(1) usable state significantly
period (2)
Committed projects
H series fifth phase, NE1
series first phase engine
Yes 141,568.38 103,313.68 1,675.50 102,506.51 99.22% Yes 541,200 Yes No
production capacity
construction project
Crash Laboratory Capacity Not Not
Yes 11,505.75 8,251.85 300.61 8,342.63 101.10% Yes No
Upgrade Project applicable applicable
CD569 production line
Yes 15,576.22 9,418.59 183.43 9,616.70 102.10% Yes 46,710 Yes No
construction project
Hefei Changan Automobile
Co., Ltd. adjustment and Yes 249,958.06 142,399.78 692.97 133,901.72 94.03% Yes 129,930 No No
upgrade project
Supplementary working Not Not
No 180,000.00 180,000.00 - 180,000.00 100.00% No No
capital applicable applicable
New generation
energy-saving product Not Not
No - 160,545.86 125,014.11 162,759.13 101.38% No No
transformation and applicable applicable
upgrading project
Total 598,608.41 603,929.76 127,866.62 597,126.69 98.87% -- -- -- --
The reasons for not
reaching the planned The reasons why the adjustment and upgrading project of Hefei Changan Automobile Co., Ltd. did not achieve the expected revenue are
progress or expected as follows: the penetration rate of new energy continued to increase in 2023, the sales of traditional fuel passenger vehicles declined,
benefits (by specific and industry competition intensified.
projects)
Description of major
changes in the feasibility of N/A
the project
The amount, use and
progress of extra raised Not applicable
funds
Change in implementation
location of the committed N/A
projects
Adjustment to
implementation method of N/A
committed project
On November 18th, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved
Upfront investment and the “Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds”, and agreed to use raised funds of RMB
replacement of committed 1,378,818,553.05 to replace pre-invested sell-raised funds for the project. The replacement of the raised funds has been verified by the
projects Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public
Accountants (special general partnership).
Use of idle raised funds for
temporary supplement of N/A
working capital
The company's original plan for four fundraising projects, including the H-series Phase V and NE1 series Phase I engine production
capacity construction project, collision testing laboratory capacity upgrading construction project, CD569 production line construction
Amount and cause of project, and Hefei Changan Automobile Co., Ltd. adjustment and upgrading project, resulted in some savings compared to the previous
surplus of funds raised for plan. The main reason is that the company reduced the actual investment amount through the localization of imported equipment during
project implementation the project implementation process; At the same time, in order to continuously improve the quality of operation, the company has
continuously optimized the plan during the project construction process and implemented lean investment process management,
achieving control over investment scale and pace. Based on the company's long-term strategic planning and current development needs,
29
Chongqing Changan Automobile Company Limited 2023 Annual Report
and after comprehensive analysis, in order to further improve the efficiency of the use of raised funds, the company has adjusted the
investment scale of the original raised funds investment project and allocated the remaining funds of RMB 1,605.46 million to the
company's new generation energy-saving product transformation and upgrading project.
The purpose and placement
Deposited in a dedicated account by the Company for raised funds
of the unused raised funds
Defects and other problems
in utilization and disclosure N/A
of the raised funds
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
Total Significant
The amount Actual Investment The date when
amount of Benefits changes in
actually cumulative progress as the project Whether the
funds to be achieved the
The commitment of the invested investment of the end reached the expected
Changed project invested in during the feasibility
original project during the amount as of of the intended benefits have
the project reporting of the
reporting the end of the period (%) availability been achieved
after the period project after
period period (2) (3)=(2)/(1) status
change (1) the change
1. H series fifth phase, NE1
series first phase engine pr
oduction capacity construct
A new
ion project
generation of
2. Crash Laboratory Capaci
energy-saving
ty Upgrade Construction Pr In the year of Not Not
products 160,545.86 125,014.11 162,759.13 101.38% No
oject 2024 applicable applicable
transformation
3. CD569 production line c
and upgrading
onstruction project
projects
4. Hefei Changan Automob
ile Co., Ltd. adjustment and
upgrade project
Total -- 160,545.86 125,014.11 162,759.13 101.38% -- -- -- --
1. The company's original plan for four fundraising projects, including the H-series Phase V and NE1
series Phase I engine production capacity construction project, collision testing laboratory capacity
upgrading construction project, CD569 production line construction project, and Hefei Changan
Automobile Co., Ltd. adjustment and upgrading project, resulted in some savings compared to the
previous plan. The main reason is that the company reduced the actual investment amount through the
localization of imported equipment during the project implementation process; At the same time, in
order to continuously improve the quality of operation, the company has continuously optimized the
plan during the project construction process and implemented lean investment process management,
achieving control over investment scale and pace. Based on the company's long-term strategic
Reasons for change, decision-making procedures and
planning and current development needs, and after comprehensive analysis, in order to further improve
information disclosure (by specific project)
the efficiency of the use of raised funds, the company has adjusted the investment scale of the original
raised funds investment project and allocated the remaining funds of RMB 1,605.46 million to the
company's new generation energy-saving product transformation and upgrading project.
2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on
April 26th, 2022, and approved the proposal of “Adjusting and Changing the Use of Part of the Raised
Funds”. The proposal has yet to be submitted to the Company’s General Meeting of Shareholders for
consideration.
3. Information disclosure: Please refer to the announcement of “Adjusting and Changing the Use of
Part of the Raised Funds” on http://www.cninfo.com.cn (Announcement Number: 2022-23).
Reasons for failure to meet the planned schedule or
Not applicable
projected benefits (by project)
Description of significant changes in the feasibility of the
Not applicable
project after the change
VIII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
30
Chongqing Changan Automobile Company Limited 2023 Annual Report
2. Sale of significant equity
□ Applicable √ Not applicable
IX. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10,000 RMB
Registered Operating
Main Total Operating
Name Type capital Net assets profit Net profit
businesses assets income
Production and
Deepal Automotive Technology subsidiary
Co., Ltd. company
sales of vehicles 32,811 2,286,788 -196,911 2,588,251 -300,254 -299,893
and parts
Production and
Avatr Technology (Chongqing) Joint Stock
Co. Ltd. Company
sales of vehicles 199,496 1,264,405 209,378 564,536 -368,556 -369,250
and parts
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, the company has acquired the equity of Deepal Automotive Technology Co., Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership), with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.
Acquisition and disposal of subsidiaries Impact on overall production,
Name
during the reporting period operation and performance
Mergers of enterprises not under common
Deepal Automotive Technology Co., Ltd. Significant impact
control
Description of major holding and participating companies
During the reporting period, Deepal Auto accelerated the development of new energy vehicles, enriched the Deepal brand
product line, increased research and development investment, resulting in losses. Avatr is in a strategic investment period, with
significant resource investment in product research and development, brand promotion, channel building, and technical talent
introduction, resulting in losses.
X. Information of main shareholding and joint stock companies
□ Applicable √ Not applicable
XI. Prospects of Future Development
1. Industrial Landscape and Tendency
The overall performance of the automotive market in 2023 was good, serving as an important force in promoting economic
recovery. It mainly exhibited the following characteristics:
(1) Overall characteristics of the industry: Industry recovery exceeded expectations, the total production and sales volume of
the automobile industry exceeded 30 million units in 2023. Car brands from Europe, the United States, Japan, Germany, South Korea,
China used to be the main players in China’s auto market, whereas Chinese brand has dominated half of the market share now.
(2) New energy trends: China’s new energy vehicle production and sales ranked first in the world for nine consecutive years,
and under the dual promotion of policy and market, the market share of new energy vehicles will continue to increase in the future.
(3) Intelligent trends: With the development and application of artificial intelligence, big data and other new technologies, the
car has evolved from a traditional transportation tool into a new smart digital vehicle based on new energy and deeply integrated with
intelligence, to provide users with a more integrated and comprehensive services. The policy to support the industrialization of NOA
(navigation-assisted driving) formally kicked off, and intelligent driving has gradually become the dominant factor for consumers to
purchase cars. Intelligent technology capability and applications have become the core elements of competition among car
companies.
(4) Globalization trends: China’s auto industry has accelerated the pace of going overseas and become an important force for
Chinese brands to go overseas. More Chinese brand automotive companies will expand their overseas market presence in the future,
actively participating in international competition, seizing the incremental opportunities of ICE vehicle market in developing country
and new energy vehicle opportunities in developed country.
(5) Interconnected industry chain trends: The automotive industry chain has become more flexible and developed towards an
31
Chongqing Changan Automobile Company Limited 2023 Annual Report
interconnected structure. The automobile industry form has been reshaped from the traditional unidirectional chain based on the
petroleum internal combustion engine to a new automobile mesh ecosystem in which the OEM, Tier1 and raw material suppliers are
linked, and relevant industries like petroleum and electric power are deeply involved.
2. Corporation Development Strategy
Chinese automotive brands are currently facing historic development opportunities. New energy is the core strength of Chinese
brands, intelligence is an important element of differentiated competitiveness, and overseas markets have become a certain increment
in the future. Looking to the future, Changan will take the initiative to recognize and respond to changes, plan the overall situation
with strategic thinking, and meet challenges with transformation and change. Since the release of the Third Business Venture -
Innovation & Entrepreneurship Program in 2017, Changan has been constantly reviewing and optimizing the program, which has
now been iterated to version 7.0. Changan will adhere to Xi Jinping’s Thought on Socialism with Chinese Characteristics in the New
Era as its guide, and take “strategic leadership, systematic change, extreme efficiency, and innovative breakthrough” as the key to
accelerate its transformation into an intelligent low-carbon mobility technology company, and move forward to a world-class
automobile brand. By 2030, Changan aims to achieve sales of 5 million vehicles, including 4 million vehicles in the independent
sector, 3-3.5 million vehicles in new energy sales, and 1.2 million vehicles overseas.To this end, Changan will implement the “215”
partnership initiative, adhere to the “two major enhancements”, upgrade the “one major relationship” and realize the “five new
leaps”.
(1) Adhere to the "two major enhancements"
Firstly, we will insist on the double promotion of new energy vehicles and ICE vehicles. In 2023 China's new energy passenger
car penetration rate reached 35.7%, while fuel vehicles still occupied an important market share of 64.3%. Based on this, the
company will adhere to the business strategy of “two-pronged development” for new energy vehicles and ICE vehicles, adapt to
market changes, provide competitive products in different market segments, meet the needs of the majority of users in different
scenarios, and ensure that the new energy vehicles and ICE vehicles are both upgraded.
Secondly, we will insist on double promotion in domestic and international markets. Two-thirds of the global automobile market
lies overseas, and China's automobile industry is accelerating to go overseas in all aspects. Based on this, the company will put
globalization in a more important strategic position on the basis of stabilizing the domestic base.
(2) Upgrade the “one major relationship”—partnership
Competition in the automobile market has become more intense. In order to obtain better development, by sharing resources and
complementing advantages with each other, we will work with dealers, suppliers and users to maintain a partnership featuring
“risk-sharing, value co-creation and benefit-sharing” and go hand in hand to seek a better future.
(3) Realize the “five new leaps”
First, we will unswervingly take the strategy as the guide to realize the new leap in transformation and upgrading. Second, we
will unswervingly optimize the product layout to realize the new leap in brand enhancement. Third, we will unswervingly strengthen
the scientific and technological innovation to realize the new leap in technological leadership. Fourth, we will unswervingly build the
industrial ecosystem to realize the new leap in win-win development. Fifth, we will unswervingly promote the customer management
to realize the new leap in service experience.
3. Operation Plan
Changan’s actual sales of 2,553,052 vehicles in 2023 reached the Board’s target. Changan’s Board of Directors business
objective for 2024 is to strive to achieve production and sales of over 2.65 million vehicles. Changan will continue to follow the
guidance of Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era, fully implement the spirit of the 20th
CPC National Congress and the 2nd Plenary Session of the 20th CPC Central Committee, adhere to the general principle of seeking
progress while maintaining stability, and make every effort to achieve the production and operation targets for 2024 with the
keywords of “strategic leadership, systemic change, extreme efficiency and innovative breakthrough”. We will focus on the following
tasks: First, strengthen Party building, and guarantee high-quality development with high-quality Party building. Second, promote
Changan Automobile’s third business venture - Innovation and Entrepreneurship Program Version 7.0, and accelerate the
transformation to an intelligent low-carbon mobility technology company. Third, adhere to the customer-centered approach, and
continue to create blockbuster products. Fourth, adhere to the systematic change to accelerate the construction of innovation system
capacity. Fifth, strengthen resource integration and enhance operational capacity. Sixth, adhere to the two-way empowerment, create
a new type of cooperation model, and make every effort to ensure the sustainable development of joint ventures. Seventh, adhere to
reform and innovation, and orderly push forward the organizational change, talent management, and mechanism innovation. Eighth,
adhere to the bottom-line thinking, build a solid bottom line of the red line, and guard against and resolve major risks. Ninth, carry
out in-depth practice of the leading culture, and build culture as the core competitiveness.
4. Capital Expenditure Plan for 2024
In order to achieve the strategic goals of the company, the investment plan of the company and its holding subsidiaries in 2024
is RMB 10,721.2 million, including RMB 4,580.26 million fixed assets investment and RMB 6,140.94 million equity investment.
Fixed assets investment mainly focuses on the adjustment of new energy production capacity structure, investment in R&D capability,
investment in new energy products, and digital transformation, deepening the layout of new energy industry, accelerating the pace of
32
Chongqing Changan Automobile Company Limited 2023 Annual Report
new energy product investment, and continuously improving digital and R&D capabilities. Equity investment mainly supports the
development of independent brands, expands overseas markets, promotes the construction of intelligent capabilities, and accelerates
the deepening development of the new energy industry chain. The company will research and develop various channels of
fundraising and fund utilization plans based on project progress, combined with operating and financing environment conditions, to
improve fund utilization efficiency and reduce fund costs.
5. Possible Risks
(1) Supply chain stability risk
The world’s political and economic instability and uncertainty have increased, and the global industrial chain supply chain is
facing reconstruction. The automotive industry, with its long industrial chain and typical globalized division of labor, may still face
supply chain risks in the current environment.
Countermeasures: First, by combining the relevant policies of promoting the construction of a modernized industrial system
with technological innovation at the national level, we will increase the independent development of key core components,
continuously advance the technological research of key core components, and promote domestic substitution. Second, we will
continuously strengthen the cooperation between enterprises upstream and downstream of the industrial chain, and reduce the risk of
supply fluctuations through long-term agreements and reserving risky components.
(2) Overseas business risks
As China’s position in the global industrial chain continues to rise, China’s automobile industry has accelerated its overseas
expansion, and has been gradually laying out by region and step in many aspects including research, production, supply, sales and
shipment. With fierce and complex international competition and profound changes in international economic and trade rules,
Chinese enterprises are facing more challenges in going out for development. More and more Chinese enterprises have encountered
investigations and lawsuits against anti-monopoly, anti-subsidy, infringement of trade secrets and commercial bribery overseas.
Countermeasures: The company will unswervingly push forward the Vast Ocean Plan and deeply participate in international
competition. In participating in overseas market competition, the company has formulated a perfect compliance management system,
adhered to the bottom line and red line of operation, and met the compliance requirements of the target market in all aspects such as
investment, products, parts and components, and regulations, etc. Meanwhile, the company has also formed a comprehensive
tracking and research mechanism for the international market in terms of politics, economy, society, environment, and regulations on
a daily, weekly, and monthly basis in order to control the risks of overseas operation to the maximum extent possible.
XII. Reception Research, Communication, Interviews and Other Activities during the
Reporting Period
√ Applicable □ Not applicable
Type of
Reception
Date Research Type Research Index
place
Object
For details, see the February 2nd, 2023 Shenzhen stock exchange
February 1st,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
February 1st, 2023 investor relations activities record sheet.
For details, see the March 7th, 2023 Shenzhen stock exchange
March 3rd, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
March 3rd, 2023 investor relations activities record sheet.
For details, see the March 20th, 2023 Shenzhen stock exchange
March 16th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
March 16th, 2023 investor relations activities record sheet.
For details, see the May 10th, 2023 Shenzhen stock exchange
Panoramic
May 8th, 2023 Online All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
roadshow
May 8th, 2023 investor relations activities record sheet.
For details, see the May 16th, 2023 Shenzhen stock exchange
May 12th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 12th, 2023 investor relations activities record sheet.
For details, see the May 19th, 2023 Shenzhen stock exchange
May 17th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 17th, 2023 investor relations activities record sheet.
For details, see the June 1st, 2023 Shenzhen stock exchange
May 30th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 30th, 2023 investor relations activities record sheet.
For details, see the June 17th, 2023 Shenzhen stock exchange
June 14th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 14th, 2023 investor relations activities record sheet.
June 28th, 2023 Chongqing Field research Institution For details, see the June 29th, 2023 Shenzhen stock exchange
33
Chongqing Changan Automobile Company Limited 2023 Annual Report
interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 28th, 2023 investor relations activities record sheet.
For details, see the June 29th, 2023 Shenzhen stock exchange
June 29th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 29th, 2023 investor relations activities record sheet.
For details, see the July 13th, 2023 Shenzhen stock exchange
July 12th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 12th, 2023 investor relations activities record sheet.
For details, see the July 13th, 2023 Shenzhen stock exchange
July 13th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 13th, 2023 investor relations activities record sheet.
For details, see the July 19th, 2023 Shenzhen stock exchange
July 19th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 19th, 2023 investor relations activities record sheet.
For details, see the July 21st, 2023 Shenzhen stock exchange
July 20th, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 20th, 2023 investor relations activities record sheet.
For details, see the July 21st, 2023 Shenzhen stock exchange
July 21st, 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 21st, 2023 investor relations activities record sheet.
Panoramic
For details, see the August 31th, 2023 Shenzhen stock exchange
August 31th, Roadshow and
Online All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023 "Entering
August 31th, 2023 investor relations activities record sheet.
Finance"
For details, see the September 5th, 2023 Shenzhen stock exchange
September 5th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 5th, 2023 investor relations activities record sheet.
For details, see the September 13th, 2023 Shenzhen stock exchange
September 13th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 13th, 2023 investor relations activities record sheet.
For details, see the September 15th, 2023 Shenzhen stock exchange
September 15th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 15th, 2023 investor relations activities record sheet.
For details, see the September 20th, 2023 Shenzhen stock exchange
September 20th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 20th, 2023 investor relations activities record sheet.
For details, see the September 21st, 2023 Shenzhen stock exchange
September 21st,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 21st, 2023 investor relations activities record sheet.
For details, see the September 26th, 2023 Shenzhen stock exchange
September 26,th
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
September 26th, 2023 investor relations activities record sheet.
For details, see the October 11th, 2023 Shenzhen stock exchange
October 11th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 11th, 2023 investor relations activities record sheet.
For details, see the October 18th, 2023 Shenzhen stock exchange
October 18th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 18th, 2023 investor relations activities record sheet.
For details, see the October 19th, 2023 Shenzhen stock exchange
October 19th, Interactive Easy
Online All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023 Cloud Interview
October 19th, 2023 investor relations activities record sheet.
For details, see the October 25th, 2023 Shenzhen stock exchange
October 25th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 25th, 2023 investor relations activities record sheet.
For details, see the October 26th, 2023 Shenzhen stock exchange
October 26th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 26th, 2023 investor relations activities record sheet.
For details, see the October 27th, 2023 Shenzhen stock exchange
October 27th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 27th, 2023 investor relations activities record sheet.
For details, see the October 31st, 2023 Shenzhen stock exchange
October 31th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
October 31th, 2023 investor relations activities record sheet (I).
For details, see the October 31th, 2023 Shenzhen stock exchange
October 31th, Interactive Easy
Online All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023 Cloud Interview
October 31th, 2023 investor relations activities record sheet (II)..
34
Chongqing Changan Automobile Company Limited 2023 Annual Report
For details, see the November 1st, 2023 Shenzhen stock exchange
November 1st,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 1st, 2023 investor relations activities record sheet.
For details, see the November 2nd, 2023 Shenzhen stock exchange
November 2nd,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 2nd, 2023 investor relations activities record sheet.
For details, see the November 6th, 2023 Shenzhen stock exchange
November 6th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 6th, 2023 investor relations activities record sheet.
For details, see the November 7th, 2023 Shenzhen stock exchange
November 7th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 7th, 2023 investor relations activities record sheet.
For details, see the November 9th, 2023 Shenzhen stock exchange
November 9th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 9th, 2023 investor relations activities record sheet.
For details, see the November 10th, 2023 Shenzhen stock exchange
November 10th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 10th, 2023 investor relations activities record sheet.
For details, see the November 13th, 2023 Shenzhen stock exchange
November 13th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 13th, 2023 investor relations activities record sheet.
For details, see the November 14th, 2023 Shenzhen stock exchange
November 14th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 14th, 2023 investor relations activities record sheet.
For details, see the November 15th, 2023 Shenzhen stock exchange
November 15th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 15th, 2023 investor relations activities record sheet.
For details, see the November 16th, 2023 Shenzhen stock exchange
November 16th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 16th, 2023 investor relations activities record sheet.
For details, see the November 20th, 2023 Shenzhen stock exchange
November 20th
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 20th 2023 investor relations activities record sheet.
For details, see the November 23rd, 2023 Shenzhen stock exchange
November 23rd,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 23rd, 2023 investor relations activities record sheet.
For details, see the November 24th, 2023 Shenzhen stock exchange
November 24th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 24th, 2023 investor relations activities record sheet.
For details, see the November 27th, 2023 Shenzhen stock exchange
November 27th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 27th, 2023 investor relations activities record sheet.
For details, see the November 28th, 2023 Shenzhen stock exchange
November 28th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 28th, 2023 investor relations activities record sheet.
For details, see the November 29th, 2023 Shenzhen stock exchange
November 29th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 29th, 2023 investor relations activities record sheet.
For details, see the November 30th, 2023 Shenzhen stock exchange
November 30th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
November 30th, 2023 investor relations activities record sheet.
For details, see the December 1st, 2023 Shenzhen stock exchange
December 1st,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 1st, 2023 investor relations activities record sheet.
For details, see the December 5th, 2023 Shenzhen stock exchange
December 5th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 5th, 2023 investor relations activities record sheet.
For details, see the December 11th, 2023 Shenzhen stock exchange
December 11th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 11th, 2023 investor relations activities record sheet.
For details, see the December 12th, 2023 Shenzhen stock exchange
December 12th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 12th, 2023 investor relations activities record sheet.
For details, see the December 14th, 2023 Shenzhen stock exchange
December 14th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 14th, 2023 investor relations activities record sheet.
35
Chongqing Changan Automobile Company Limited 2023 Annual Report
For details, see the December 15th, 2023 Shenzhen stock exchange
December 15th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 15th, 2023 investor relations activities record sheet.
For details, see the December 22nd, 2023 Shenzhen stock exchange
December 21st,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 21st, 2023 investor relations activities record sheet.
For details, see the December 27th, 2023 Shenzhen stock exchange
December 26th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 26th, 2023 investor relations activities record sheet.
For details, see the December 29th, 2023 Shenzhen stock exchange
December 28th,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2023
December 28th, 2023 investor relations activities record sheet.
XIII Implementation of the “Parallel Improvement of Quality and Return” Initiative
Whether the company has disclosed the “Parallel Improvement of Quality and Return” Initiative.
√ Yes □ No
In order to implement the guiding ideology of "revitalizing the capital market and boosting investor confidence" proposed by the
Politburo meeting of the Communist Party of China Central Committee, better play the "three roles" of central enterprises in
scientific and technological innovation, industrial control, and security support, safeguard the interests of all shareholders, enhance
investor confidence, and promote the long-term healthy and sustainable development of the company, the company has formulated
the "dual improvement of quality and return" action plan. The specific measures include firmly guiding the strategy to accelerate the
transformation into an intelligent low-carbon travel technology company, improving the standard operation level of corporate
governance, strengthening information disclosure to enhance transparency, and valuing shareholder returns to improve investor
satisfaction. For specific details, please refer to the "Announcement on the Action Plan for" Double Improvement of Quality and
Return "(Announcement No. 2024-13) disclosed by the company on March 7th, 2024 on the Juchao Information Network
(www.cninfo. com. cn).
In accordance with the provisions of the Company Law and the Articles of Association regarding profit distribution policies,
combined with the actual situation and development needs of the company, and in order to fully repay shareholders, the company's
profit distribution plan for 2023 is as follows: based on the total share capital of 9,917,289,033 shares, a cash dividend of RMB 3.43
(including tax) will be distributed to all shareholders for every 10 shares. The company plans to distribute a total of RMB
3,401,630,138.32 (including tax) in cash, accounting for 30.03% of the net profit attributable to shareholders of the listed company in
the consolidated financial statements for this year. No bonus shares will be issued, and no share capital will be converted from
reserve funds. The cash dividend amount for this year increased by 45.31% year-on-year, fully sharing the company's development
achievements with investors.
The company is scheduled to hold the 2023 annual performance briefing on April 19th, 2024 (Friday) from 3:00 pm to 5:00 pm
through the "Chang'an Automobile Video Account", "Panoramic Roadshow", and "Jinmen Finance". Investors are welcome to
actively participate.`
36
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 4 Corporate Governance
I. The Basic Situation of Corporate Governance
During the reporting period, the company continuously improved its corporate governance structure, established and improved
its internal management and control system, and continuously promoted the improvement of the company's standardized operation
level in strict accordance with the requirements of the Company Law, the Securities Law, and the relevant regulatory documents of
the China Securities Regulatory Commission and Shenzhen Stock Exchange. The actual situation of corporate governance of the
company meets the requirements of the regulatory documents of the China Securities Regulatory Commission on listed company
governance.
During the reporting period, according to the new normative documents issued by the China Securities Regulatory Commission
and the Shenzhen Stock Exchange, the company improved a series of standardized management systems such as the Articles of
Association, the Rules of Procedure of the General Meeting of Shareholders, the Rules of Procedure of the Board of Directors, the
Rules of Procedure of the Board of Supervisors, and the Measures for the Administration of Authorization of the Board of Directors,
continuously optimized the construction of corporate governance-related systems and management processes, promoted the
implementation in an orderly manner, and strived to improve the company's decision-making efficiency and governance effectiveness.
Implement the reform of the independent director system of listed companies, revise the work system for independent directors and
the work rules of the audit committee in accordance with the Measures for the Administration of Independent Directors of Listed
Companies issued by the China Securities Regulatory Commission, and formulate the work rules for special meetings of independent
directors, so as to provide institutional support for independent directors to play the role of participation in decision-making,
supervision, checks and balances, and professional consultation in the board of directors.
In 2023, in accordance with the provisions of the Articles of Association, the company will hold a timely general election,
establish the ninth board of directors to complete the selection and appointment of the chairman, senior management and secretary of
the board of directors. Taking the re-election of the board of directors as an opportunity, the composition of the special committee
under the board of directors was optimized, the nomination function was added, the remuneration and appraisal committee was
changed to the nomination and remuneration appraisal committee, and the division of responsibilities and job requirements of each
special committee were systematically integrated, and the composition and main responsibilities of the special committee were
improved.
The company has established an effective internal control system over the financial report. According to company’s operation
and management characteristics, the company strictly implemented the “Enterprise Accounting Standards”, improved the basic
accounting management, established a sound financial system, optimized accounting and statements preparation process,
strengthened the financial supervision, conducted the in-depth implementation of financial management, established the management
foundation work, accounting and finance management authorization, the monetary fund management, financing, purchasing and
payment, fixed assets, projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost
management, inventory management, financial analysis and other financial management system to ensure the quality of accounting
information and the safety of the Company property. According to internal control deficiencies identified standards of the financial
report, there is no internal control defects over financial reporting in the report period. The full text of the internal control
self-evaluation report is published on http://www.cninfo.com.cn on April 18th, 2024.
Whether there are differences between corporate governance and the related requirements of “Company Law” and China
CSRC.
□ Yes √ No
There is no difference between corporate governance and the related requirements of “Company Law” and China CSRC.
II. The Independence of the Company in Terms of Assets, Personnel, Finance, Organization
And Business Relative to Controlling Shareholders and Actual Controllers
The Company is completely independent from the controlling shareholders and actual controllers in terms of business, assets,
personnel, institutions and finance.
1. Business: The business of Changan Auto is independent of controlling shareholders and actual controllers. It makes
independent decisions, operates independently and is responsible for its own profits and losses. It has a complete business and
industrial system including procurement, production, sales and research and development. The controlling shareholders and actual
controllers do not directly or indirectly interfere in the production and business activities of Changan Auto.
2. Personnel: The controlling shareholder and the actual controller are completely independent from the personnel, labor and
personnel of Changan Auto. They have independent staff teams, complete labor management, performance appraisal and other
systems and salary systems, and independently sign the Labor Contract with employees according to law.
3. Assets: The assets of controlling shareholders and actual controllers are strictly separated from Changan Auto, and the
property rights are clearly defined. There is no direct or indirect interference in the production and operation of Changan Auto.
Changan Auto has independent production system, auxiliary production system, supporting facilities, land use rights and other assets,
legally owns land, real estate, machinery and equipment, trademarks related to production and operation, and has an independent raw
37
Chongqing Changan Automobile Company Limited 2023 Annual Report
material procurement and product sales system.
4. Organization: The controlling shareholder, the actual controller and Changan Auto have independent production, operation
and office places. There is no mixed operation.
5. Finance: The controlling shareholder, the actual controller and Changan Auto have independent finance and accounting
departments with independent finance and accounting personnel, and have established independent accounting system and financial
management system. They make financial decisions independently, open bank accounts and pay taxes independently, and do not
share bank accounts. Changan Auto handles tax registration independently and pays tax independently according to law.
Ⅲ. Competition Situation
□ Applicable √ Not applicable
IV. Annual Shareholders Meeting and Extraordinary General Meeting during the Reporting
Period
1. Shareholders meeting during the reporting period
Investors’
Meeting Session Type participation Opening Time Disclosure Time Resolution Index
Ratio
http//www.cninfo.com.cn
2022 Annual 2022 Annual Shareholders Meeting
Annual 50.620% June 28th,2023 June 29th, 2023
Shareholders Meeting Resolution Announcement
(Announcement Number: 2023-26)
http//www.cninfo.com.cn
2023 The First 2023 The First Extraordinary
Extraordinary EGM 40.107% July 27th, 2023 July 28th, 2023 General Meeting Resolution
General Meeting Announcement (Announcement
Number: 2023-49)
http//www.cninfo.com.cn
2023 The Second 2023 The Second Extraordinary
September 15th, September 16th,
Extraordinary EGM 39.109% General Meeting Resolution
2023 2023
General Meeting Announcement (Announcement
Number: 2023-66)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□ Applicable √ Not applicable
V. Directors, Supervisors and Senior Management Personnel
1. Basic information
Share Share
Shares
Shares held volume volume
Other held at the Reasons for
Appoint at beginning increased decreased
Start End of reporting increase/de end of the increase
Name Gender Age Position ment in the in the
date date crease reporting /decrease in
status period reporting reporting
(share) period shares
(share） period period
（share)
（share） （share）
Chairman,
Zhu Secretary of Incumbe 2020-06 2026-07
M 58 500,864 500,864
Huarong the Party nt -22 -27
Committee
Incumbe 2023-09 2026-07
Deng Wei M 52 Director
nt -15 -27
Shi Incumbe 2024-01 2026-07
M 43 Director
Yaoxiang nt -30 -27
Jia Lishan M 53 Director Incumbe 2023-07 2026-07
38
Chongqing Changan Automobile Company Limited 2023 Annual Report
nt -27 -27
Incumbe 2023-07 2026-07
Zhao Fei M 49 Director 353,080 353,080
nt -27 -27
Director,
President
Incumbe 2020-06 2026-07
Wang Jun M 51 and Deputy 364,000 364,000
nt -22 -27
Party
Secretary
Director,
CFO,
Zhang Incumbe 2020-06 2026-07
M 48 Secretary of 353,080 353,080
Deyong nt -22 -27
the Board of
Directors
Cao Independent Incumbe 2020-06 2026-07
M 52
Xingquan Director nt -22 -27
Yang Independent Incumbe 2021-09 2026-07 Personal
M 63 0 30,000 30,000
Xinmin Director nt -17 -27 reasons
Li Independent Incumbe 2022-06 2026-07
M 60
Keqiang Director nt -15 -27
Independent Incumbe 2022-06 2026-07
Ding Wei M 63
Director nt -15 -27
Tang Independent Incumbe 2022-06 2026-07
M 61
Guliang Director nt -15 -27
Zhang Independent Incumbe 2022-06 2026-07
M 45
Ying Director nt -15 -27
Chairman of
the Incumbe 2023-07 2026-07
Wen Hong M 57
Supervisory nt -27 -27
Board
Sun Incumbe 2020-06 2026-07
M 57 Supervisor
Dahong nt -22 -27
Employee
Shi Supervisory Incumbe 2021-11 2026-07
M 52
Shengwei Board nt -08 -27
Member
Employee
Supervisory Incumbe 2020-06 2026-07 Personal
Luo Yan F 49 0 500 500
Board nt -19 -27 reasons
Member
Deputy
Tan Secretary of Incumbe 2023-10 2026-07
M 48 353,080 353,080
Benhong the Party nt -24 -27
Committee
Secretary of
Pu
Discipline Incumbe 2023-03 2026-07
Xingchua M 52
Inspection nt -03 -27
n
Commission
Executive
Incumbe 2020-07 2026-07
Ye Pei M 48 Vice 353,080 353,080
nt -13 -27
President
Executive
Incumbe 2023-07 2026-07
Chen Wei M 51 Vice 353,080 353,080
nt -13 -27
President
Executive
Li Incumbe 2022-01 2026-07
M 42 Vice 353,080 353,080
Mingcai nt -28 -27
President
Executive
Yang Incumbe 2022-12 2026-07
M 49 Vice 252,200 252,200
Dayong nt -28 -27
President
Executive
Incumbe 2022-12 2026-07
Peng Tao M 45 Vice 248,612 248,612
nt -28 -27
President
Klaus Vice Incumbe 2023-10 2026-07
M 62
Zyciora President nt -07 -27
Zhang Executive Incumbe 2023-12 2026-07
M 44 248,612 248,612
Xiaoyu Vice nt -01 -27
39
Chongqing Changan Automobile Company Limited 2023 Annual Report
President
Wang Vice Incumbe 2022-01 2026-07
M 41 171,990 171,990
Xiaofei President nt -12 -27
Vice Incumbe 2022-09 2026-07
Wang Hui M 42 171,990 171,990
President nt -22 -27
Zhang Vice Incumbe 2023-01 2026-07
M 41 248,612 248,612
Fatao President nt -05 -27
Deng Vice Incumbe 2023-12 2026-07
M 37
Chenghao President nt -01 -27
Secretary of Incumbe 2020-07 2026-07
Li Jun F 54 248,612 248,612
the Board nt -13 -27
Secretary of
Hua Discipline 2020-07 2023-03
M 56 Outgoing 353,080 353,080
Zhanbiao Inspection -13 -03
Commission
Zhou 2021-09 2023-05
M 50 Director Outgoing
Kaiquan -17 -30
Chairman of
the 2021-09 2023-05
Lian Jian M 60 Outgoing
Supervisory -17 -31
Board
Xian 2022-07 2023-07
M 53 Director Outgoing
Zhigang -26 -27
2021-02 2023-07
Liu Gang M 57 Director Outgoing
-18 -27
Ren
Independent 2020-06 2023-07
Xiaochan M 67 Outgoing
Director -22 -27
g
Wei Independent 2020-06 2023-07
M 54 Outgoing
Xinjiang Director -22 -27
Deputy
Yuan Secretary of 2020-07 2023-10
M 55 Outgoing 364,000 364,000
Mingxue the Party -13 -24
Committee
2021-02 2023-12
Zhang Bo M 45 Director Outgoing
-18 -26
Total -- -- -- -- -- -- 5,291,052 30,500 5,321,552 --
Whether there are any outgoing directors and supervisors and the dismissal of senior management personnel during the
reporting period
√Yes □ No
See “V. 1. Changes in Directors, Supervisors, and Senior Management Personnel” in Chapter 4.
Changes in Directors, Supervisors and Senior Management Personnel
√ Applicable □ Not applicable
Name Position Type Date Reason
Zhang Fatao Vice President Appointed January 5th, 2023 Appointment
Secretary of Discipline
Inspection Commission
Pu Xingchuan Appointed March 3rd, 2023 Appointment
(Senior Management
Personnel)
Jia Lishan Director Elected July 27th, 2023 Appointment
Zhao Fei Director Elected July 27th, 2023 Appointment
Chairman of the
Wen Hong Elected July 27th, 2023 Appointment
Supervisory Board
Deng Wei Director Elected September 15th, 2023 Appointment
Klaus Zyciora Vice President Appointed October 7th, 2023 Appointment
Deputy Secretary of the
Party Committee
Tan Benhong Appointed October 24th, 2023 Appointment
(Senior Management
Personnel)
Executive Vice
Zhang Xiaoyu Appointed December 1st, 2023 Appointment
President
40
Chongqing Changan Automobile Company Limited 2023 Annual Report
Deng Chenghao Vice President Appointed December 1st, 2023 Appointment
Shi Yaoxiang Director Elected January 30th, 2024 Appointment
Secretary of Discipline
Inspection Commission Dismissal from
Hua Zhanbiao March 3rd, 2023 Job change
(Senior Management Employment
Personnel)
Zhou Kaiquan Director Outgoing May 30th, 2023 Job change
Chairman of the
Lian Jian Outgoing May 31th, 2023 Reaching the statutory retirement age
Supervisory Board
Xian Zhigang Director Outgoing July 27th, 2023 General election
Liu Gang Director Outgoing July 27th, 2023 General election
Leave office upon
Ren Xiaochang Independent Director July 27th, 2023 Leaving office after 6 years of tenure
expiration of term
Leave office upon
Wei Xinjiang Independent Director July 27th, 2023 Leaving office after 6 years of tenure
expiration of term
Deputy Secretary of the
Party Committee Dismissal from
Yuan Mingxue October 24th, 2023 Job change
(Senior Management Employment
Personnel)
Executive Vice Dismissal from
Tan Benhong October 24th, 2023 Job change
President Employment
Dismissal from
Zhang Xiaoyu Vice President December 1st, 2023 Job change
Employment
Zhang Bo Director Outgoing December 26th, 2023 Job change
2. Incumbency
Professional background, work experience and duties and responsibilities of incumbent Directors, Supervisors and Senior
Manager Personnel
(1) Directors
Mr. Zhu Huarong, Chairman and Party Secretary, Chairman of Changan Ford Motor Co., Ltd., Chairman of Avtar Technology
(Chongqing) Co., Ltd., and Director of Nanchang Jiangling Investment Co., Ltd. Born in 1965, holds a master's degree and is a senior
engineer. Formerly served as the Deputy Director of the Technology Department, Chief Engineer of the Automobile Manufacturing
Plant, Assistant to the President and Director of the Technology Center, Director of the Science and Technology Committee, Deputy
General Manager of the Company, Dean of the Engineering Research Institute, Vice President and Party Secretary of Changan
Automobile, Deputy Secretary of the Party Committee of Changan Automobile, President of Changan Automobile, and Director of
China Changan Automobile Group.
Mr. Deng Wei, Director. Born in 1971, holds a master's degree and is a senior engineer. The current Director of Strategic
Development Department of China Ordnance Equipment Group, Executive Director of China Ordnance Equipment Group
Information Center Co., Ltd., concurrently serving as Chairman of Fujian Chenguang Qiming Technology Co., Ltd., and Chairman of
China Ordnance Equipment Group Fuzhou University Advanced Technology Innovation Research Institute. Formerly served as the
Deputy Director of the Development Planning Department, Deputy Director of the Strategic Development Department, and Director
of the Science and Technology Information Technology Department of the Ordnance Equipment Group. He was also a member of the
Standing Committee and Deputy Governor of the Honghe Hani and Yi Autonomous Prefecture in Yunnan Province, a director of
Chongqing Chang'an Wangjiang Industrial Group Co., Ltd., and a director of Xi'an Kunlun Industrial (Group) Co., Ltd.
Mr. Shi Yaoxiang, Director. Born in 1980, holds a master's degree and is a senior accountant. The current Director of Finance
Department of Ordnance Equipment Group, Director of Southern Industrial Asset Management Co., Ltd., and Director of Finance
Co., Ltd. of Ordnance Equipment Group. Formerly served as a director and chief accountant of Sichuan Huachuan Industry Co., Ltd.,
director and chief accountant of Changan Industry, chief accountant of Chongqing Changan Wangjiang Industrial Group Co., Ltd.,
deputy director of the finance department of Ordnance Equipment Group, and director, general manager, and deputy party secretary
of Southern Industrial Asset Management Co., Ltd.
Mr. Jia Lishan, Director. Born in 1970, holds a PhD and is a senior engineer. The current Director of Industry Promotion
Department of Ordnance Equipment Group and Chairman of Jinan Qingqi Suzuki Motorcycle Co., Ltd. Formerly served as the
Director of the Industrial Development Department, Director of the Comprehensive Office, and Deputy Director of the Development
Planning Department of the Optoelectronics Department of the Ordnance Equipment Group, Chairman and Party Secretary of
Chongqing Dajiang Industry Co., Ltd., and Deputy Director of the Industrial Promotion Department of the Ordnance Equipment
Group.
Mr. Zhao Fei, Director. Born in 1974, holds a master's degree and is a senior engineer. The current Chairman and Party
Secretary of China Changan Automobile Group Co., Ltd. Formerly served as the Director of the Engine Technology Institute and
41
Chongqing Changan Automobile Company Limited 2023 Annual Report
Deputy Factory Director of the Engine Fourth Factory of Changan Automobile Research Institute, Deputy General Manager of the
Science and Technology Development Department of China Changan Group, Director and General Manager of Harbin Dongan
Automobile Engine Manufacturing Co., Ltd., Party Secretary and Chairman, Assistant to the President and Minister of Strategic
Planning Department and Party Branch Secretary of Changan Automobile, Vice President and Executive Vice President of the
company, Party Secretary and Executive Vice President of Changan Ford, and President and Deputy Party Secretary of China
Changan Automobile Group.
Mr. Wang Jun, Director, President, and Deputy Secretary of the Party Committee, Executive Director and General Manager of
Chongqing Changan Technology Co., Ltd., Chairman of Deepal Automotive Technology Co., Ltd., Director of Changan Ford
Automobile Co., Ltd., Chairman of Changan Mazda Automobile Co., Ltd., Chairman of Changan Mazda Engine Co., Ltd., and
Chairman of Era Changan Power Battery Co., Ltd. Born in 1972, holds a master's degree and is a senior engineer. Formerly served as
Vice President and Director of Product Planning Department of Changan Automobile Engineering Research Institute, Manager of
Product Management Department and Director of Marketing Department of Sales Co., Ltd., Assistant to Changan Automobile
President and General Manager of Sales Co., Ltd., Secretary of the Party Committee and General Manager of Commercial Vehicle
Business Unit, Executive Vice President of the company, representative of the integration of industrialization and industrialization
management, Chairman of the Trade Union, and President of Changan Automobile University.
Mr. Zhang Deyong, Director, Chief Accountant, Board Secretary, Director of Changan Ford Motor Co., Ltd., Director of
Nanchang Jiangling Investment Co., Ltd., Director of Changan Automobile Finance Co., Ltd., and Director of Ordnance Equipment
Group Finance Co., Ltd. Born in 1975, Master of Accounting (MPAcc), Senior Accountant. Formerly served as the Director and
Assistant Director of the Finance Department of the Automation Research Institute of the Ordnance Equipment Group, Deputy
Director of the Finance Department of the Finance Department of the Ordnance Equipment Group (on secondment), Director, Chief
Accountant, and Party Committee Member of Chongqing Changjiang Electric Co., Ltd., Deputy Director of the Finance Department
of the Ordnance Equipment Group (on secondment), Director, Chief Accountant, and Party Committee Member of Changan Industry,
Executive Vice President of Changan Automobile, and General Legal Advisor of the company.
Mr. Cao Xingquan, independent director. Born in 1971, with a Doctor of Laws degree. Currently a professor at the School of
Civil and Commercial Law of Southwest University of Political Science and Law, and a doctoral supervisor in the field of civil and
commercial law; Also serving as an independent director of Construction Industry (002265) and Fuling Electric Power (600452).
Having 23 years of experience in teaching and researching civil and commercial law, including 20 years of teaching at Southwest
University of Political Science and Law, focusing on research in commercial law, company law, securities law, and insurance law. He
had led or participated in more than 20 scientific research projects, published more than 60 academic papers in law, published
academic works, and co edited more than 10 teaching materials. Formerly served as Deputy Chief Judge of the Fourth Civil Trial
Division of the First Intermediate People's Court of Chongqing, member of the Civil Administrative Procuratorate Expert Committee
of the People's Procuratorate of Chongqing, and member of the Expert Advisory Committee of the First and Fifth Intermediate
People's Courts of Chongqing.
Mr. Yang Xinmin, independent director. Born in 1960, with a PhD in Applied Mathematics. Currently a professor at the School
of Mathematical Sciences, Chongqing Normal University, director of the Chongqing National Center for Applied Mathematics, and
director of the Key Laboratory of Optimization and Control of the Ministry of Education; Also serving as a director of Chongqing
Immediate Science and Technology Development Foundation and an independent director of Construction Industry (002265). Mainly
engaged in systematic research in the field of operations research (mathematics), awarded the title of National Excellent Science and
Technology Worker in 2012, National Outstanding Professional and Technical Talent in 2014, and elected as an academician of the
International Academy of Systems and Control Sciences in 2016. Hosted over 10 projects funded by the National Natural Science
Foundation of China, including 1 major project, 2 key projects, and 1 international (regional) project. Received multiple awards,
including the National Natural Science Second Prize, the Ministry of Education Natural Science First Prize, and the Chongqing
Supreme Science and Technology Outstanding Contribution Award. Formerly served as Vice Chairman of the Chinese Mathematical
Society and Vice Chairman of the Chinese Society of Systems Engineering.
Mr. Li Keqiang, independent director. Born in 1963, with a Ph.D. in Automotive Engineering. He is currently a professor and
doctoral supervisor of the School of Vehicles and Transportation of Tsinghua University, director of the National Key Laboratory of
Intelligent Green Vehicles and Transportation of Tsinghua University, and an academician of the CAE Member; He also serves as an
independent director of the listed company navinfo (002405) and the non listed company Guangqi Aian New Energy Vehicle Co., Ltd.
Formerly served as the Director of the Department of Automotive Engineering at Tsinghua University.
Mr. Ding Wei, independent director. Born in 1960, with a Bachelor's degree in Finance. The current founder and chairman of
Xiamen Borun Capital Investment Management Co., Ltd; Also serving as independent directors of Guotai Junan (601211) and
Hengsheng Electronics (600570). Formerly served as an economist and department head at the World Bank and International
Monetary Fund, President of Deutsche Bank China, Chairman of the Investment Banking Business Management Committee and
Head of the Investment Banking Department at China International Finance Corporation, member of the Global Senior Management
Committee and Global Investment Decision Committee at Temasek, concurrently serving as President of China, President and
Chairman of CICC Capital Operations Limited, and Independent Non Executive Director of Shenzhou Car Rental Co., Ltd.
Mr. Tang Guliang, independent director. Born in 1962, with a PhD in Finance. Current Professor of Finance at the School of
International Business, University of International Business and Economics; He also serves as an independent director of listed
companies Kyushu Tong (600998) and Fosun Pharmaceuticals (600196), as well as non listed companies Three Gorges Capital Co.,
Ltd. and China Construction Investment Leasing Co., Ltd. Mainly engaged in teaching and research in management accounting and
financial management, with unique and influential achievements in budget management, group control, performance evaluation,
financial strategy, and capital operation. I have published 4 monographs and 40 works, and have published over 120 papers in
high-end academic journals such as Accounting Review TAR and Management World. Formerly served as an independent director of
companies such as Minmetals Development (600058), Changjiang Securities (000783), and Guangfeng Technology (688007).
Mr. Zhang Ying, independent director. Born in 1978, with a Ph.D. in Management. Current Professor and Vice Dean of
42
Chongqing Changan Automobile Company Limited 2023 Annual Report
Guanghua School of Management at Peking University; He also serves as an independent director of China Film (600977) and Mein
Gene (06667. HK). The research focuses on the intersection of psychology and economics, and excels in using experimental and data
methods to study how individual behavioral decisions and social attitudes affect corporate strategy and policy formulation. Received
awards such as the Outstanding Young Scholar Award from the American Academy of Marketing Sciences and the Global Top
Marketing Scholar Award from the American Marketing Association. He has been selected as one of the National Youth Top Talents
by the Organization Department of the CPC Central Committee, awarded the Outstanding Youth Fund by the National Natural
Science Foundation of China, and honored as a Cultural Master and "Four First Batch" Talent by the Propaganda Department of the
CPC Central Committee. Formerly taught at the University of Texas in the United States.
2. Supervisors
Mr. Wen Hong, Chairman of the Supervisory Board. Born in 1966, holds a master's degree and is a senior engineer. The current
Deputy Director and Senior Manager of the Southwest Regional Department of the Weapon Equipment Group. Formerly served as
the Deputy Director of the Office of Chongqing Construction Industry (Group) Co., Ltd., Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission, and Deputy General Manager of Chongqing Construction Motorcycle Co., Ltd.,
Deputy Secretary of the Party Committee and Deputy General Manager of Chongqing Construction Electromechanical Co., Ltd.,
Chairman and Party Secretary of Baoding Tianwei Baobian Co., Ltd., and Chairman and General Manager of Baoding Electric
Equipment Co., Ltd.
Mr. Sun Dahong, Supervisor. Born in 1966, master's degree, senior economist. Currently, he is the Deputy Director and Senior
Professional of the Audit Risk Control and Legal Department of the Weapon Equipment Group. He has served as the Deputy Director
of the Legal Department of the General Office of the Weapon Equipment Group, the Deputy Director and Director of the Legal
Advisory Office, the Director of the Legal Affairs Department, the Director of the Security and Confidentiality Bureau, the Deputy
Director of the Office, and the Deputy Director of the Legal Department.
Mr. Shi Shengwei, Employee Supervisor. Born in 1971, bachelor’s degree, political engineer. Currently, he is the Discipline
Inspection Officer of the Supervision Division of Changan Automobile Discipline Inspection Department. He has served as a
workshop group and machining worker in Changan Company, a mechanic in the first machining section of the Engine Branch, a
publicity officer and office director of the Party-Masses Studio of the Comprehensive Management Division of the Fourth Factory, a
director of the Party-Masses Studio of the Comprehensive Management Division of Changan Automobile Jiangbei Engine Factory, a
discipline inspection and supervision officer of the Discipline Inspection Division of the Discipline Inspection and Supervision
Department, and a manager of the Changan Mazda Integrity Employment Office.
Ms. Luo Yan, employee supervisor. Born in 1974, bachelor’s degree, assistant economist. Currently, she is the director of the
Jiangbei Branch of the Shared Service Center of Changan Automobile Human Resources Department. She has served as a
maintenance electrician, engineering surveyor, labor technology quota officer, and planner in Workshop 232 of the Third Factory of
Changan Company, as well as the director of the Employee Welfare Office of the Salary Management Office of the Human
Resources Department of Changan Automobile, and the director of the Third Office of Salary and Welfare Management.
3. Senior Management other than Directors and Supervisors
Mr. Tan Benhong, Deputy Secretary of the Party Committee, Chairman of the Trade Union, and General Manager of Changan
Learning Center. Born in 1975, holds a master's degree and is a senior engineer. Formerly served as the Director of the Technical
Planning Research Institute of Changan Automobile Engineering Research Institute, Deputy Chief Engineer and Director of the
Technical Planning Research Institute of the Automobile Engineering Research Institute, Vice President of Changan Automobile
Engineering Research Institute, President of Beijing Research Institute, Minister of Marketing Department, Minister of Brand Public
Relations Department, and Minister of Product Planning Department. Also served as the Executive Vice President, Party Secretary,
Company Spokesperson, General Manager of the Styling Design Institute, Executive Vice President of Changan Automobile
Engineering Research Institute, and CEO of Avrta Technology (Chongqing) Co., Ltd.
Mr. Pu Xingchuan, Secretary of the Commission for Discipline Inspection and Director of the Office of the Leading Group for
Inspection Work. Born in 1971, master's degree, senior economist. He has served as Deputy Secretary of the Party Committee,
Secretary of the Discipline Inspection Commission, and Chairman of the Labor Union of Chongqing Qingshan Industry Co., Ltd.,
Director of the Office of the Southwest Military Industry Bureau, Secretary of the Party Committee, Secretary of the Discipline
Inspection Commission, and Chairman of the Labor Union of Southwest Ordnance Industry Co., Ltd., Director, General Manager,
and Deputy Secretary of the Party Committee of Wanyou Automobile Investment Co., Ltd., and Chairman and Secretary of the Party
Committee of Southwest Ordnance Industry Co., Ltd.
Mr. Ye Pei, Executive Vice President and General Manager of Changan Brand Business Unit. Born in 1975, master's degree,
engineer. He used to be the assistant to the general manager of Changan, Nanjing, the deputy director of Changan Automobile
Quality Department, the deputy director of the company's office, the general manager and secretary of the party committee of
Changan, Nanjing, the deputy general manager of the commercial vehicle business department, the assistant to the president, the
director of the strategic planning department, the secretary of the party branch of the company, the general manager and secretary of
the party committee of the car sales business department, the general manager and secretary of the party committee of the passenger
vehicle marketing business department, the vice president of Changan Automobile, the director of the passenger vehicle operation
management committee, and the director of the Auchan operation management committee.
Mr. Chen Wei, Executive Vice President, General Legal Advisor, Chief Compliance Officer, Director of Changan Ford Motor
and Director of China Changan Automobile Group. Born in 1972, bachelor's degree, political engineer. He has served as Deputy
Factory Director, Factory Director, and Secretary of the Party Committee of Changan Automobile Manufacturing Factory, Vice
President of Personnel and Secretary of the Discipline Inspection Commission of Changan Ford, Director of the Logistics
Department of Changan Automobile Manufacturing, Secretary of the Party Branch, and OTD Project Director of the company,
General Manager and Secretary of the Party Committee of Beijing Changan Automobile Company, Director of the Construction
Project of Beijing Research Institute, Secretary of the Party Committee of Chongqing Lingyao Automobile Co., Ltd., and Vice
President and Deputy Director of Passenger Vehicle Management Committee, Deputy Director of Auchan Operation Management
43
Chongqing Changan Automobile Company Limited 2023 Annual Report
Committee.of Changan Automobile.
Mr. Li Mingcai, Executive Vice President and Management Representative of the Integration of Industrialization and
Urbanization. Born in 1981, with a master's degree. He has served as General Manager Assistant and Sales Regional Manager of
Changan Automobile's Overseas Business Development Department, Deputy General Manager of Overseas Business Development
Department, General Manager of International Companies, Executive Deputy General Manager of Overseas Business Development
Department, Project Director of Russian JV, Manager of Brazil Project Team, General Manager of Overseas Business Department,
General Legal Advisorand, Vice President of Changan Automobile.
Mr. Yang Dayong, Executive Vice President, Director, Executive Vice President, and Party Secretary of Changan Ford Motor,
Chairman, President, and Product Vice President of Changan Ford New Energy Vehicle Technology Co., Ltd. Born in 1974, with a
bachelor's degree. Formerly served as Deputy Director of Changan Automobile Marketing Department, Deputy Director and Minister
of Commercial Vehicle Business Management Department, Minister of Brand Public Relations Department, Party Branch Secretary,
and Company News Spokesperson, Senior Project Director of High end Automobile Brand Project Team, Senior Project Director of
Intelligent Industry Development Project Team, General Manager and Party Secretary of Changan New Energy, and Vice President
of Changan Automobile.
Mr. Peng Tao, Executive Vice President, Chairman of Chongqing Changan Kaicheng Automotive Technology Co., Ltd.,
Chairman of Chongqing Changan Kuayue Vehicle Co., Ltd., Chairman of Chongqing Changan Kuayue Vehicle Marketing Co., Ltd.,
Director of Nanjing Lingxing Technology Co., Ltd., Director and Investment Committee Member of Nanjing Lingxing Industry
Fund Management Co., Ltd., and Investment Decision Committee Member of Nanjing Lingxing Equity Investment Partnership
Enterprise. Born in 1978, holds a bachelor's degree and is a senior engineer. Formerly served as Vice Minister, Executive Vice
General Manager, and Party Branch Secretary of Changan Automobile Product Planning Department, Executive Vice General
Manager, General Manager, and Party Committee Secretary of Passenger Vehicle Marketing Business Unit, and Vice President of
Changan Automobile.
Mr. Klaus Zyciora, Vice President. Born in 1961, German. Formerly served as interior designer, exterior director, and design
leader for Volkswagen, as well as design leader for Volkswagen Group.
Mr. Zhang Xiaoyu, Executive Vice President, Chairman of the Company Science and Technology Association, Director of the
National Key Laboratory of Intelligent Vehicle Safety Technology, and Chairman of Chongqing Changxian Intelligent Technology
Co., Ltd. Born in 1979, holds a PhD and is a senior engineer. Formerly served as Deputy General Manager and General Manager of
the UK R&D Center at Changan Automotive Power Research Institute, Deputy General Manager of the Power Research Institute,
Director of the company's H13T project, Director of the NE series powertrain project, General Manager of the Power Research
Institute, General Manager of the Product Development Department II, General Manager of Changan Forward looking Technology
Research Institute, and Vice President of the company.
Mr. Wang Xiaofei, Vice President. Born in 1982, bachelor’s degree, engineer. He used to be the Deputy Director of the Product
Department of Changan Commercial Vehicle Business Unit, the Deputy Director of the Product Department of Auchan Automotive
Business Unit, the Deputy General Manager and Product Marketing Director of Passenger Vehicle Marketing Business Unit, the
Deputy General Manager of Product Planning Department, and the General Manager of Auchan Automotive Business Unit.
Mr. Wang Hui, Vice President, Chairman of Jiangling Holdings Co., Ltd., and Director of Changan Ford Motor Co., Ltd. Born
in 1981, with a bachelor's degree in engineering. Formerly served as the Director of the New Business Coordination Project Group of
Changan Automobile, Director of the Company Office and Party Branch Secretary, Executive Vice President and Party Secretary of
Changan Engine, Head of Changan Mazda New Energy Cooperation Project, Executive Vice President and Party Secretary of
Changan Mazda, General Manager of Overseas Business Development Department and General Manager of Southeast Asia Business
Unit.
Mr. Zhang Fatao, Vice President. Born in 1982, bachelor’s degree, assistant engineer. He has served as Deputy Director of the
Office of Changan Automobile Company, General Manager of the Technology and Project Management Department, Secretary of
the Party Branch, Executive Vice Chairman of the Association for Science and Technology, PDS Project Director, Director of the
Company's Office, Secretary of the Party Branch, Director of the Party Committee Office, Director of the Board Office, General
Manager of the Human Resources Department, Director of the Party Committee Organization Department, and Director of the Talent
Management Department of Changan Learning Center.
Mr. Deng Chenghao, Vice President, General Manager and Party Secretary of Deepal Automotive Technology Co., Ltd. Born in
1986, holds a PhD and is a senior engineer. Formerly served as Assistant General Manager and Deputy General Manager of Power
Development Department of Chongqing Changan New Energy Vehicle Technology Co., Ltd., Director of C385EV-E series project,
General Manager and Party Secretary of Chongqing Changan New Energy Vehicle Technology Co., Ltd.
Ms. Li Jun, Secretary of the Board of Directors and Senior Expert of the Board Office. Born in 1969, Master of Business
Administration, Senior Accountant. She has served as the Director of the Securities Division of the Finance Department of Changan
Automobile, the Director of the Capital Operations Division of the Finance Department, the Director of the Board of Directors Office,
the Deputy Director of the Finance Department, and the Deputy General Manager of the Capital Operations Department.
Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether having
renumeration or
Name of shareholders’ work Position in shareholders’ work Term start Term end
Name allowance in
unit unit date date
shareholders’ work
unit
China South Industries Group Director of Strategic
Deng Wei Y
Co., Ltd. Development Department
44
Chongqing Changan Automobile Company Limited 2023 Annual Report
China South Industries Group
Shi Yaoxiang Director of Finance Department Y
Co., Ltd.
China South Industries Group Director of Industry Promotion
Jia Lishan Y
Co., Ltd. Department
China Changan Automobile
Zhao Fei Chairman and Party Secretary Y
Group Co., Ltd
Deputy Director and Senior
China South Industries Group
Wen Hong Specialist of Southwest Regional Y
Co., Ltd.
Department
Deputy Director and Senior
China South Industries Group
Sun Dahong Specialist of Audit Risk Control Y
Co., Ltd.
and Legal Department
China Changan Automobile
Chen Wei Director N
Group Co., Ltd
Position in
None
other work unit
Employment status in other units
√Applicable □ is not applicable
Term Whether get
Name of other Term
Name Position in other work units start allowance in
work units end date
date other work unit
Southwest
Professor of the School of Civil and Commercial Law of
University of
Cao Xingquan Southwest University of Political Science and Law, and a Y
Political Science
doctoral tutor in the direction of civil and commercial law
& Law
Professor of the School of Mathematical Sciences of
Chongqing Chongqing Normal University, Director of the Chongqing
Yang Xinmin Normal National Center for Applied Mathematics, Director of the Y
University Key Laboratory of Optimization and Control of the
Ministry of Education
Professor and doctoral supervisor of the School of
Vehicle and Transportation of Tsinghua University,
Tsinghua
Li Keqiang Director of the National Key Laboratory of Intelligent Y
University
Green Vehicles and Transportation of Tsinghua
University, academician of the CAE Member
Xiamen Borun
Capital
Founder and Chairman of Xiamen Borun Capital
Ding Wei Investment Y
Investment Management Co., Ltd.
Management Co.,
Ltd
Professor, Department of Finance, International Business
School, University of International Business and
University of
Economics, contributing editor and reviewer of
International
Tang Guliang "Accounting Research", deputy editor of "China Y
Business and
Management Accounting", management accounting
Economics
consulting expert from the Ministry of Finance, member
of the CIMA Research Committee in the United Kingdom
Distinguished Professor Boya of Peking University, Vice
Dean of Guanghua School of Management, Director of
Peking University Management Case Study Center,
Peking Senior Researcher of China Management Research
Zhang Ying Y
University Center at Cambridge University, UK, Professional Editor
in Chief of Chinese Journal of Management Science and
Executive Vice Editor of Chinese Journal of Marketing
Science
Position in
None
other work unit
Securities regulator’s punishment to the current and former directors, supervisors and senior management during the
reporting period in recent three years.
□ Applicable √ Not applicable
45
Chongqing Changan Automobile Company Limited 2023 Annual Report
3. Remuneration of directors, supervisors and senior management personnel
Decision-making process, basis, the actual payment of remuneration for directors, supervisors and senior management
personnel
Decision-making process: the annual remuneration of the company's directors, supervisors, and senior executives, except for
independent directors, is issued in accordance with the relevant remuneration management regulations and standards of the company
and based on the achievement of performance targets, submitted to the company's board of directors for approval before distribution.
The basis: the senior management evaluation is divided into annual appraisal and term assessment. The salary of employee
supervisors shall be paid by position in accordance with the company's salary system. Payment of company independent directors is
prescribed by the board of directors and submitted to the board of directors of the company, and approved by the shareholders'
general meeting.
Actual payments: Since June 2022, Mr. Li Keqiang, an independent director, has voluntarily waived receiving allowances, and
other independent directors are paid according to the allowance standards. Vice President Deng Chenghao was appointed as a senior
management personnel of the company in December 2023. The salary of the senior management personnel of the company starts
from the following month, so no senior management personnel salary was received during the reporting period. In 2023, directors,
supervisors and senior executives who receive remuneration from the company had a total of RMB 34.39 million in remuneration
payable.
Remuneration of Directors, Supervisors and Senior Management Personnel during the reporting period
Unit: RMB
Whether
Total pre-tax
remunerated by
Name Gender Age Position Office status remuneration from
related-parties
the Company
of the company
Chairman, Secretary
Zhu Huarong M 58 of the Party Incumbent 2,634,743 N
Committee
Deng Wei M 52 Director Incumbent Y
Shi Yaoxiang M 43 Director Incumbent Y
Jia Lishan M 53 Director Incumbent Y
Zhao Fei M 49 Director Incumbent Y
Director,
Wang Jun M 51 President and Deputy Incumbent 2,634,743 N
Party Secretary
Director, CFO,
Zhang Deyong M 48 Secretary of the Incumbent 2,124,651 N
Board of Directors
Cao Xingquan M 52 Independent Director Incumbent 153,333 N
Yang Xinmin M 63 Independent Director Incumbent 153,333 N
Li Keqiang M 60 Independent Director Incumbent N
Ding Wei M 63 Independent Director Incumbent 153,333 N
Tang Guliang M 61 Independent Director Incumbent 153,333 N
Zhang Ying M 45 Independent Director Incumbent 153,333 N
Chairman of the
Wen Hong M 57 Incumbent Y
Supervisory Board
Sun Dahong M 57 Supervisor Incumbent Y
Employee
Shi Shengwei M 52 Supervisory Board Incumbent 231,107 N
Member
Employee
Luo Yan F 49 Supervisory Board Incumbent 362,491 N
Member
Deputy Secretary of
Tan Benhong M 48 Incumbent 1,917,319 N
the Party Committee
Secretary of
Pu Xingchuan M 52 Discipline Inspection Incumbent 1,047,810 N
Commission
Executive Vice
Ye Pei M 48 Incumbent 2,217,536 N
President
Executive Vice
Chen Wei M 51 Incumbent 1,980,569 N
President
Li Mingcai M 42 Executive Vice Incumbent 2,133,403 N
46
Chongqing Changan Automobile Company Limited 2023 Annual Report
President
Executive Vice
Yang Dayong M 49 Incumbent 2,111,019 N
President
Executive Vice
Peng Tao M 45 Incumbent 2,104,157 N
President
Klaus Zyciora M 62 Vice President Incumbent 938,697 N
Executive Vice
Zhang Xiaoyu M 44 Incumbent 2,072,453 N
President
Wang Xiaofei M 41 Vice President Incumbent 2,094,846 N
Wang Hui M 42 Vice President Incumbent 1,679,704 N
Zhang Fatao M 41 Vice President Incumbent 1,152,546 N
Deng Incumbent
M 37 Vice President N
Chenghao
Secretary of the
Li Jun F 54 Incumbent 979,198 N
Board
Secretary of
Hua Zhanbiao M 56 Discipline Inspection Outgoing 1,138,676 N
Commission
Zhou Kaiquan M 50 Director Outgoing Y
Chairman of the
Lian Jian M 60 Outgoing Y
Supervisory Board
Xian Zhigang M 53 Director Outgoing Y
Liu Gang M 57 Director Outgoing Y
Ren Xiaochang M 67 Independent Director Outgoing 70,000 N
Wei Xinjiang M 54 Independent Director Outgoing 70,000 N
Deputy Secretary of
Yuan Mingxue M 55 Outgoing 1,923,382 N
the Party Committee
Zhang Bo M 45 Director Outgoing Y
Total -- -- -- -- 34,385,715 --
Explanation of other situations.
□ Applicable √ Not applicable
VI. Performance of Directors during the reporting period
1. Board of Directors in the reporting period
Date of
Meeting Disclosure date Meeting resolution
convening
The 51st meeting of the 8th Session January 5th, Please refer to the Resolution of the 51st meeting of the
January 6th, 2023
of Board of Directors 2023 8th Board of Directors (No: Announcement 2023-01)
The 52nd meeting of the 8th Session February 17th, Please refer to the resolution of the 52nd meeting of the
February 17th, 2023
of Board of Directors 2023 8th Board of Directors (Announcement No: 2023-06)
The 53rd meeting of the 8th Session Please refer to the Resolution of the 53rd meeting of the
March 3rd, 2023 March 4th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-10)
The 54th meeting of the 8th Session March 15th, Please refer to the Resolution of the 54th meeting of the
March 16th, 2023
of Board of Directors 2023 8th Board of Directors (Announcement No: 2023-13)
The 55th meeting of the 8th Session March 29th,
No disclosable matters involved
of Board of Directors 2023
The 56th meeting of the 8th Session Please refer to the Resolution of the 56th meeting of the
April 16th, 2023 April 18th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-16)
The 57th meeting of the 8th Session Please refer to the Resolution of the 57th Meeting of the
April 27th, 2023 April 28th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-25)
The 58th meeting of the 8th Session
May 16th, 2023 No disclosable matters involved
of Board of Directors
The 59th meeting of the 8th Session Please refer to the Resolution of the 59th Meeting of the
June 8th, 2023 June 9th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-33)
The 60th meeting of the 8th Session Please refer to the Resolution of the 60th Meeting of the
June 26th, 2023 June 27th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-35)
47
Chongqing Changan Automobile Company Limited 2023 Annual Report
The 61st Meeting of the 8th Session Please refer to the Resolution of the 61th Meeting of the
July 11th, 2023 July 12th, 2023
of Board of Directors 8th Board of Directors (Announcement No: 2023-39)
The 1st meeting of the 9th Session of Please refer to the Resolution of the 1st Meeting of the
July 27th, 2023 July 28th, 2023
Board of Directors 9th Board of Directors (Announcement No: 2023-50)
The 2nd meeting of the 9th Session August 3rd, Please refer to the Resolution of the 2nd Meeting of the
August 4th,2023
of Board of Directors 2023 9th Board of Directors (Announcement No: 2023-54)
The 3rd meeting of the 9th Session September September Please refer to the Resolution of the 3rd Meeting of the
of Board of Directors 30th,2023 31st,2023 9th Board of Directors (Announcement No: 2023-57)
The 4th meeting of the 9th Session September 15th,
No disclosable matters involved
of Board of Directors 2023
The 5th meeting of the 9th Session October 7th, Please refer to the Resolution of the 5th Meeting of the
October 9th, 2023
of Board of Directors 2023 9th Board of Directors (Announcement No: 2023-68)
The 6th meeting of the 9th Session October 19th,
No disclosable matters involved
of Board of Directors 2023
The 7th meeting of the 9th Session October 24th, Please refer to the Resolution of the 7th Meeting of the
October 25th, 2023
of Board of Directors 2023 9th Board of Directors (Announcement No: 2023-71)
The 8th meeting of the 9th Session October 30th, Please refer to the Resolution of the 8th Meeting of the
October 31st, 2023
of Board of Directors 2023 9th Board of Directors (Announcement No: 2023-74)
The 9th meeting of the 9th Session November 15th, November 16th, Please refer to the Resolution of the 9th Meeting of the
of Board of Directors 2023 2023 9th Board of Directors (Announcement No: 2023-79)
The 10th meeting of the 9th Session November 24th,
No disclosable matters involved
of Board of Directors 2023
The 11st meeting of the 9th Session December 1st, Please refer to the Resolution of the 11st Meeting of the
December 2nd,
of Board of Directors 2023 2023 9th Board of Directors (Announcement No: 2023-82)
Please refer to the Resolution of the 12nd Meeting of
The 12nd meeting of the 9th Session December 8th,
December 9th, 2023 the 9th Board of Directors (Announcement No:
of Board of Directors 2023
2023-85)
Please refer to the Resolution of the 13rd Meeting of
The 13rd meeting of the 9th Session December 20th, December 21st,
the 9th Board of Directors (Announcement No:
of Board of Directors 2023 2023
2023-89)
The 14th meeting of the 9th Session December 29th,
No disclosable matters involved
of Board of Directors 2023
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance at BOD meetings and shareholders' meeting
Number of BOD Absent from
Number of
meetings that Attendance by meetings for Attendance at
BOD meeting Attendance
Name should be means of Absence two shareholders’
attendance at by proxy
attended in this communication consecutive meetings
spot
reporting period times
Zhu Huarong 25 3 22 0 NO 3
Deng Wei 10 1 9 0 NO 0
Jia Lishan 14 1 13 0 NO 0
Zhao fei 14 1 13 0 NO 0
Wang Jun 25 3 22 0 NO 3
Zhang Deyong 25 3 22 0 NO 3
Cao Xingquan 25 3 22 0 NO 2
Yang Xinmin 25 3 22 0 NO 2
Li Keqiang 25 0 22 3 NO 1
Ding Wei 25 2 22 1 NO 1
Tang Guliang 25 3 22 0 NO 1
Zhang Ying 25 2 22 1 NO 1
Zhou Kaiquan 8 1 6 1 NO 0
Xian Zhigang 11 1 9 1 NO 0
48
Chongqing Changan Automobile Company Limited 2023 Annual Report
Liu Gang 11 1 9 1 NO 0
Ren Xiaochang 11 2 9 0 NO 2
Wei Xinjiang 11 2 9 0 NO 0
Zhang Bo 24 0 21 3 NO 0
Explanation of the members of the Board who failed to attend Board meetings in person for two consecutive times
Not applicable
3. The directors’ objections to the relevant matters of the company
Disagreement of the directors on matters related to the Company
□Yes √ No
During the reporting period, the directors did not raise objections to the relevant matters of the company.
4. Other statement of the directors performance of duties
Whether the directors' suggestions on the company are adopted
√Yes □ No
Description of the directors on the adoption or non-adoption of relevant suggestions of the company
During the reporting period, the directors of the company strictly followed the relevant provisions of the Company Law and the
Articles of Association of the company, diligently performed their duties and obligations, actively attended the board of directors and
special committees, carefully deliberated on various proposals, made independent judgments and professional decisions on major
matters, and issued independent and impartial independent opinions on the company's nomination of directors, appointment of senior
management, annual profit distribution and other matters. In addition, the directors put forward valuable professional opinions or
suggestions on the construction of the company's system and daily business decision-making, all of which were adopted or responded
to, which effectively improved the company's standardized operation and scientific decision-making level, and safeguarded the
legitimate rights and interests of the company and all shareholders.
VII. Duty Performance of Specialized Committees of the Board of Directors during the
Report Period
Number Important Other
Specific
Committee of Date of comments and performa
Members Meeting content objection
name meetings convening suggestions that nce of
(if any)
held are made duties
Internal audit work plan for 2023.
February Unanimously
and audit inspection work report for
17th, 2023 passed
the fourth quarter of 2022
March 24th, Financial and Accounting Unanimously
2023 Statements for 2022 (Pre-trial) passed
Financial statements for 2022 (after
April audit); 2022 Annual Audit Results Unanimously
11th, 2023 and Communication Report on passed
Tang Important Matters
Guliang, 2022 Annual Internal Control Audit
Audit Wei Report; Proposal for self-evaluation
6
Committee Xinjiang, report on internal control in 2022;
Zhang Proposal on the appointment of
Deyong April auditors for the 2023 financial report Unanimously
16th, 2023 and internal control report; Internal passed
audit report for the first quarter ；
Special explanation for the
provision, reversal and resale of
asset impairment provisions
Proposal on canceling the
June 5th, Unanimously
re-appointment of the 2023 financial
2023 passed
reporting auditor and the internal
49
Chongqing Changan Automobile Company Limited 2023 Annual Report
control report auditor
July 11th, The employment plan of the Unanimously
2023 accounting firm passed
Proposal on the appointment of
auditors for financial reports and
auditors for internal control reports
August in 2023; Reports on the audit work Unanimously
Tang 18th, 2023 for the first half of 2023；Reports on passed
Guliang, the rectification of the company's
Zhang Bo， 2 management opinions and
Cao suggestions in 2022
Xingquan
The audit report for the third quarter
of 2023; The rectification report of
November Unanimously
the "Opinions and Suggestions of
16th, 2023 passed
the Company's Management" for the
annual review in 2022
Tang
Guliang, December Overall audit strategy and key audit Unanimously
1
Cao 29th, 2023 matters passed
Xingquan
Proposal on the rules for
January 5th, determining the comprehensive Unanimously
2023 assessment and evaluation results of passed
the company's leadership team
Proposal on the achievement of the
February first release of the restriction period Unanimously
17th, 2023 for the first grant of the A-share passed
Zhang restricted stock incentive plan
Ying, Wei Proposal on the 2022 tenure system
5
Xinjiang, and contractual assessment results of
March 15th, Unanimously
Ding Wei the company's management
2023 passed
members and the 2023
implementation plan
July 11th, Proposal on adjusting the allowance Unanimously
2023 of independent directors passed
Nomination
Proposal on amending the
and July 27th, Unanimously
company's A-share restricted stock
Remuneration 2023 passed
incentive plan
Committee
Proposal on the addition of directors;
(Remuneration
Proposal on adjusting the repurchase
and Appraisal
August price of the A-share restricted stock Unanimously
Committee)
30th, 2023 incentive plan and repurchasing and passed
canceling part of the restricted
shares
October Proposal on the appointment of Unanimously
Zhang 7th, 2023 senior management passed
Ying, Tang October Proposal on the change of senior Unanimously
6
Guliang, 24th, 2023 management passed
Ding Wei Proposal on the annual
November comprehensive assessment and Unanimously
15th, 2023 evaluation rating plan of the passed
company's leadership team members
December Proposal on the appointment of Unanimously
1st, 2023 senior management passed
December Proposal on the achievement of the Unanimously
8th, 2023 lifting of the restriction on the sale passed
50
Chongqing Changan Automobile Company Limited 2023 Annual Report
of A-share restricted stock incentive
plan
Proposal on the 2023 financing plan,
February 2023 investment plan, and equity Unanimously
17th, 2023 participation in the establishment of passed
Zhu a battery joint venture
Huarong, Proposal on the development of bill
Zhang Bo， pool business, proposal on the
Wang Jun, 3 company and its subsidiaries to carry
March 15th, Unanimously
Ren out foreign exchange hedging
2023 passed
Xiaochang, business, 2023 financial securities
Li Keqiang business plan and opportunistic
The Strategic
disposal of trading financial assets
and
April 2022 financial statements and 2023 Unanimously
Investment
16th, 2023 financial budget explanation passed
Committee
August Proposal on capital increase to joint Unanimously
30th, 2023 ventures passed
Proposal on the establishment of Unanimously
Chongqing Changfu Private Equity passed
Wang Jun, October
Investment Fund Partnership
Zhang Bo, 3 7th, 2023
(Limited Partnership) (tentative
Li Keqiang
name).
Proposal on the disposal of land and
October Unanimously
housing assets on the north side of
30th, 2023 passed
Hebei Chang'an Overhaul Plant
Note: On July 27th, 2023, the company's Compensation and Assessment Committee was renamed as the Nomination and
Compensation Assessment Committee.
VIII. The work of the board of supervisors
Whether the company was at risk during the report period according to the supervision of the board of supervisors
□Yes √ No
The Board of Supervisors supervised and inspected the legal compliance of the company's financial situation, measurement of
managing major affairs of the company, operation and management activities, and the implementation of major strategies. The Board
of Supervisors has no objection to the supervision matters during the reporting period.
IX. The Employees of the Company
1. The number of employees, professional field and education level
Number of incumbent employees in the parent company 33,275
Number of incumbent employees in major subsidiaries 15,842
Total number of incumbent employees 49,117
Total number of incumbent salaried employees 49,117
Number of retired employees for whom parent company and major
2,942
subsidiary bear the costs
Professional composition
Professional fields Number
Production 28,321
Sales 2,595
Technology 13,479
Finance 563
Administration 617
Management 3,542
Total 49,117
Educational Background
Degree Number
PhD 131
Postgraduate 4,243
51
Chongqing Changan Automobile Company Limited 2023 Annual Report
Bachelor 16,071
Junior college 12,860
Technical secondary school and high school 14,690
Middle school and below 1,122
Total 49,117
2. Compensation policy
Changan practices the concept of value creation and value sharing in salary distribution, continuously optimizes and improves
the compensation system, adheres to the principle of “performance-driven and result-oriented”, improves the effectiveness of
distribution, strengthens the double benchmarking of performance and salary, and guides the business units to continuously improve
their efficiency and effectiveness. We innovate incentive mechanism, optimize resource allocation, establish and improve medium-
and long-term incentive and constraint mechanism, closely bind the interests of the core members with the company’s medium- and
long-term operation, support the company’s strategic development, and boost the company's operating performance.
3. Training plan
In 2024, the key to employee training will be driven by “strategic leadership, systematic change, extreme efficiency, and
innovative breakthroughs”, which will comprehensively support Changan’s transformation into an intelligent low-carbon mobility
technology company. In 2024 we will focus on the globalization of the Vast Ocean Plan, and promote the training of international
talents in various regions and accelerate the construction of new capabilities for globalization. We will continue to strengthen the
operational capability of management talents and the professional capability of strategy implementation, and carry out training
programs such as training of management talents and digital transformation training to promote the development of strategic
transformation. We will comprehensively launch the BlueCore Program for training and certification of district team leaders to
enhance the company's production safety management capability.
4. Outsourcing of services
□ Applicable √ Not applicable
X. Distribution of profits and capital reserve
The formulation, implementation or adjustment of profit distribution policies, especially the formulation, implementation or the
adjustment situation of cash dividend policy.
√ Applicable □Not applicable
According to the China Securities Regulatory Commission requirements, the Notice on Further Implementing Matters
concerning Cash Dividends of Listed Companies as issued by the CSRC, the Guideline No. 3 for the Supervision of Listed
Companies—Cash Dividends of Listed Companies, in combination with the practical situation of the company, the Company has
rectified the “Articles of Association” and clarified the distributable profit caliber, dividend distribution means, principle, form, cash
dividend conditions and proportion, stock dividend condition, plan making and review procedures, the implementation, the
conditions of distribution policy adjustment, and decision-making procedures, etc, policy adjustment, and strengthen the institutional
guarantee of the dividend for investors. For details of the company’s specific distribution policy, please refer to the Articles of
Association. Company’s reported profit distribution plan and equity shares in line with the relevant provisions of the Articles of
Association and relevant provisions.
Special statement for cash dividend policy
Whether it comply with the Articles of Association or the resolutions of the shareholders'
Yes
general meeting:
Are the standard and the proportion of distribution clear: Yes
Are the related decision-making process and mechanism thorough: Yes
Have independent directors fulfilled their duties and performed their due roles: Yes
If the company does not distribute cash dividends, specific reasons should be disclosed, as well
Not Applicable
as the measures to be taken next to enhance investor returns:
Whether medium and minority shareholders have the chance to fully express their views and
Yes
demands and whether the legitimate rights and interests are fully protected:
Whether cash dividend policy is adjusted or changed and whether the conditions and
Not Applicable
procedures are compliant and transparent:
During the reporting period, the company made profits and the parent company could distribute profits to shareholders, but did not
put forward the dividend distribution plan
□ Applicable √ Not applicable
52
Chongqing Changan Automobile Company Limited 2023 Annual Report
Plans of profit distribution and increase of capital stock by transfer of capital reserve during the reporting period
√ Applicable □Not applicable
Number of bonus shares per ten shares (share) 0
Dividend per ten shares (RMB) (tax included) 3.43
Increased shares through transfer for per 10 shares (shares) 0
Equity base of distribution plan (shares) 9,917,289,033
Cash dividends (RMB) (tax included) 3,401,630,138.32
Cash dividend (RMB) of other means (such as repurchase) 0
Total cash dividend (RMB) (including other means) 3,401,630,138.32
Distributable profits (RMB) 44,297,589,798.86
Proportion (%) of cash dividends (including other means) to
100%
total profit distribution
Cash dividend policy：
others
Detailed description of profit distribution or increase of capital stock by transfer of capital reserves
The 19th meeting of the 9th Session of Board Of Directors of the company deliberated and passed the 2022 Profit Distribution Plan,
which still needs to be submitted to the 2022 annual general meeting for deliberation. In accordance with the provisions of the
Articles of Association, the relevant decision-making procedures and mechanisms are thorough, which fully protect the legitimate
rights and interests of medium and minority investors.
XI. Implementation of company equity incentive plans, employee stock incentive plans or
other incentive measures
√ Applicable □ Not applicable
1. Equity incentive
On July 13th, 2020, the 2nd meeting of the 8th Session of Board of Directors and the 2nd meeting of the 8th Session of Board of
Supervisors reviewed and approved proposals such as “Proposal on and its Summary” and “Proposal on ”. The independent directors expressed their independent agreement on the incentive plan.
On February 1st, 2021, the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of
Board of Supervisors reviewed and approved proposals such as “Proposal on and its Summary” and “Proposal on (Revision)”. The independent directors expressed their independent agreement
on the incentive plan revision.
On February 18th, 2021, the Company held the first extraordinary general meeting in 2021, and reviewed and approved
proposals such as “Proposal on and its Summary”,
“Proposal on ” and “Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to
Equity Incentives”.
On February 22nd, 2021, the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of the
Session of Board of Supervisors, which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive
Objects and Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and "”Proposal on Granting
Restricted Stocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors
expressed their independent agreement.
On March 3rd, 2021, the Company completed the registration of restricted stocks and disclosed the “Announcement on the
Completion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1,247 people were actually
granted with 76,195,400 restricted shares. The listing date of restricted shares was March 5, 2021.
On August 30th, 2021, the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the
8th Session of Board of Supervisors, which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-Share
Restricted Stock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive
Objects but still with Sales Restriction”. The independent directors expressed independent agreement.
On September 17th, 2021, the Company held the second extraordinary general meeting in 2021, and reviewed and approved the
“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.
On November 19th, 2021, the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting of
the 8th Session of Board of Supervisors, and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-Share
Restricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-Share
Restricted Stock Incentive Plan”. The independent expressed independent agreement.
On December 21th, 2021, the Company completed the repurchase and cancellation of all 1.036 million restricted shares that had
been granted to the original 11 incentive objects but still had sales restrictions.
On December 30th, 2021, the Company completed the registration of the reserved restricted stock and disclosed the
53
Chongqing Changan Automobile Company Limited 2023 Annual Report
“Announcement on the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people were
granted with 17,761,200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31th, 2021.
On August 2nd, 2022, the company held the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Board
of Supervisors, and reviewed and approved the Proposal on Adjusting the Repurchase Price of A-share Restricted Stock Incentive
Plan and Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the company have expressed
independent opinions that they agree with.
On August 18th, 2022, the company held the third extraordinary general meeting of shareholders in 2022, and reviewed and
approved the Proposal on Adjusting the Repurchase Price of the A-share Restricted Stock Incentive Plan and Repurchase and
Cancellation of Some Restricted Stocks.
On February 17th, 2023, the company held the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th
Board of Supervisors, and reviewed and approved the Proposal on the Achievements of the First Release of Restriction Conditions
during the First Grant Period of the A-share Restricted Stock Incentive Plan. The independent directors of the company have
expressed independent opinions that they agree with.
On March 3rd, 2023, the company disclosed the "Indicative Announcement on the Release of Restricted Shares from Listing
and Circulation during the First Release Period of the First Grant Part of the A-share Restricted Stock Incentive Plan", and the date of
release of restricted shares from listing and circulation was March 6th, 2023.
Equity incentives for directors and senior management
√ Applicable □ Not applicable
Unit: share
Number of
Price of Market Number of
Shares Number of newly Number of
Exercisable shares price at the restricted
exercised shares granted Grant price of restricted
shares exercised end of the shares held
during unlocked restricted restricted shares held
Name Position during the during the reporting at the
the in the shares shares at the end
reporting reporting period beginning
reporting current during the (RMB/share) of the
period period (RMB/share of the
period period reporting period
(RMB/share) ) period
period
Chairman, Secretary
Zhu
of the Party 16.83 455,000 150,150 3.07 304,850
Huarong
Committee
Zhao Fei Director 16.83 353,080 116,516 3.07 236,564
Director, President,
Wang Jun Deputy Secretary of 16.83 364,000 120,120 3.07 243,880
the Party Committee
Director, The Chief
Zhang
Accountant, Board 16.83 353,080 116,516 3.07 236,564
Deyong
of Directors Sectary
Tan Deputy Secretary of
16.83 353,080 116,516 3.07 236,564
Benhong the Party Committee
Executive Vice
Ye Pei 16.83 353,080 116,516 3.07 236,564
President
Executive Vice
Chen Wei 16.83 353,080 116,516 3.07 236,564
President
Li Executive Vice
16.83 353,080 116,516 3.07 236,564
Mingcai President
Yang Executive Vice
16.83 252,200 83,226 7.22 168,974
Dayong President
Executive Vice
Peng Tao 16.83 248,612 82,042 3.07 166,570
Presiden
Zhang
Vice President 16.83 248,612 82,042 3.07 166,570
Xiaoyu
Wang
Vice President 16.83 171,990 56,757 3.07 115,233
Xiaofei
Wang
Vice President 16.83 171,990 56,757 3.07 115,233
Hui
Zhang
Vice President 16.83 248,612 82,042 3.07 166,570
Fatao
Board of Directors
Li Jun 16.83 248,612 82,042 3.07 166,570
Sectary
Deputy Secretary of
Yuan
the Party Committee 16.83 364,000 120,120 3.07 243,880
Mingxue
(outgoing)
Secretary of
Discipline &
Hua
Inspection 16.83 353,080 116,516 3.07 236,564
Zhanbiao
Commission
(outgoing)
Total -- -- -- 5,245,188 1,730,910 -- 3,514,278
Notes (if any) 1. The above-mentioned personnel and positions are as of the disclosure date of this report;
54
Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The original initial grant price of the Company's A-share restricted shares was 6.66 yuan per share, and the reserved
grant price was 9.93 yuan per share. The number of shares and the grant price have been adjusted accordingly based on
the implementation of the Company's equity distribution plans for 2020, 2021 and 2022.
Evaluation mechanism and incentives for senior managers
For details, please refer to “V. 3. Remuneration of Directors, Supervisors and Senior Management” in Chapter 4.
2. Implementation of employee stock ownership plans
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
XII. Internal control system building and implementation during reporting period
1. Internal control building and implementation
Optimize the internal control team and improve control effectiveness. We established a matrix team of company level
internal control specialists, opened up internal control communication channels at all levels of the company, formed a working
mechanism with clear responsibilities and clear communication from top to bottom, and improved the communication efficiency of
cross department internal control work. We implemented concomitant internal control supervision and management of key business
processes, which was carried out in the same place, at the same time, and in the same direction as the business, so as to help the
business review the compliance of decision-making procedures and assess the risk of decision-making content, further strengthening
the effectiveness of internal control.
Improve the management system and strengthen the binding force of the internal control system. We improved top-level
design, promoted inventory management, revised and issued the Internal Control Evaluation Manual, clarified the division of work
and responsibilities of internal control, standardized the scope, standards, steps, and other requirements of internal control evaluation,
improved the internal control system, and achieved closed-loop management of control, evaluation, and rectification. We
continuously integrated and optimized business systems, embedded internal control system control requirements into specific
business systems, clarified business link control requirements and risk response measures, and built a standardized, comprehensive,
and effective management system.
Strengthen authorization management and improve internal control and supervision mechanism. We reviewed the
authorization management system, refined the power and responsibility boundaries of each level based on the authorization list of the
board of directors, and revised and issued the management authorization form and centralized and decentralized authority list for
institutions at all levels. We prepared a list of incompatible positions, comprehensively cleaned up incompatible positions at all levels
of the company’s institutions, sorted out the responsibilities of important positions and key personnel, adjusted unreasonable
positions and personnel settings, and achieved the separation of incompatible position responsibilities and personnel.
Promote the construction of offshore internal control system and prevent and control offshore business risks. Through
group-level control and based on the existing internal control system of the company, we exported internal control system to overseas
organizations at all levels. At the same time, we set up localized organizations, established business authorization systems and
designed overseas business system documents in accordance with the actual operation as well as the laws and regulations of the
countries (regions) where the overseas units were located. We continuously improved the offshore internal control system and further
enhanced the rigid constraints of the offshore internal control system.
Carry out comprehensive internal control evaluation to promote the continuous optimization of the internal control
system. Organizations at all levels of the company used the Internal Control Evaluation Manual as a standardized process to actively
evaluate the effectiveness of the implementation of the internal control system, identified problems, developed measures, improved
implementation, and ensured the effective operation and rigid constraints of the company’s internal control system.
2. Details of significant defects in internal control during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries of the company during the reporting period
Problems
encounter Follow-up
Integration Solutions
Name Integration plan ed in the Progress solution
progress taken
integratio plan
n
55
Chongqing Changan Automobile Company Limited 2023 Annual Report
During the reporting period, the company has acquired Completed Not Not Not Not
the equity of Deepal Automotive Technology Co., Ltd. applicable applicable applicable applicable
from Chongqing Changxin Equity Investment Fund
Deepal
Partnership Enterprise (Limited Partnership) and
Automotive
Chongqing Liangjiang New Area Equity Investment
Technology
Fund Partnership Enterprise (Limited Partnership), with
Co., Ltd.
a shareholding ratio of 51.00%. It will be transferred
from a joint venture to a subsidiary for accounting
purposes and included in the scope of consolidation.
XIV. Internal control self-evaluation report or internal control audit report
1. Self-evaluation report of internal control
Date of Full-text disclosure of internal
April 18th, 2024
control evaluation report
Inquiry index of internal control evaluation
www.cninfo.com.cn
report full text disclosure
The proportion of the total assets of units
included in the evaluation scope to the total
100%
assets in the company's consolidated
financial statements
The proportion of the operating income of
the unit in the evaluation scope to the total
100%
operating income of the company's
consolidated financial statements
Defect identification standard
Type Financial reports Non-financial report
1. Lack of, or violation of, democratic
1. Fraud of the directors, supervisors and
decision-making procedures;
senior managers of the Company.
2. Violation against state laws and
2. The Company shall correct the published
regulations with serious punishment;
financial report to correct major
3. Large loss of medium and senior
misstatements caused by fraud or errors, or
management personnel and senior
major misstatements in the current financial
technical personnel;
Qualitative standards report found by certified public accountants
4. Frequent and serious negative media
but not identified by the company's internal
coverage that spread far;
control of the Company.
5. Lack of institutional control or
3. The Audit Committee has ineffective
institutional system failure of important
supervision over the company’s external
business;
financial reports and financial report internal
6. Major defects in internal control not
control.
rectified.
The misstatement amount in the financial Identification according to the internal
Quantitative standards statements in the following range: control defect quantitative standard in
Misstated 1% of the total assets financial report.
Number of material defects in financial
0
reports
Number of material defects in
0
non-financial reports
Number of important defects in financial
0
reports
Number of important defects in
0
non-financial reports
2. Internal control audit report
√ Applicable □ Not applicable
Review opinions of the internal control audit report
The audit opinion in the internal control audit report issued by Lixin Certified Public Accountants (Special General Partnership) is
as follows: Chongqing Changan Automobile Co., Ltd. maintained effective internal control over financial reporting in all material
aspects as of December 31, 2023, in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure of the internal control
Disclosed
audit report
56
Chongqing Changan Automobile Company Limited 2023 Annual Report
Date of full text disclosure of the
April 18th, 2024
internal control audit report
Inquiry index of Internal Control
www.cninfo.com.cn
Audit Report
Opinion type of internal control
Standard without reservations
audit report
Material defects in non-financial
None
reports
Whether the accounting firm issues a non-standard opinion internal control audit report
□Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
√Yes □No
XV. Rectification of self-inspection problems in the Special Action of Listed Companies
According to the company’s self-inspection, the company’s overall compliance operation shows that there are no issues
requiring rectification.
57
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 5 Environmental and Social Responsibility
Ⅰ. Major Environment Concerns
Whether the listed company and its subsidiaries are reckoned as major pollutant discharging units by environment protection
department or not
√Yes □No
Environmental protection-related policies and industry standards
The company strictly implements the laws, regulations, standards and requirements for environmental protection in its
production and operation. The regulatory standards include Environmental Protection Law of the People’s Republic of China, Law
on Air Pollution Prevention and Control, Law of the People’s Republic of China on Prevention and Control of Water Pollution, Law
of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste, Law of People’s Republic
of China on Environmental Impact Assessment, etc.
Administrative regulations or rules include Measures for the Administration of Environmental Monitoring, Measures for the
Administration of the List of Key Units of Environmental Supervision, Measures for Enterprise Environmental Credit Evaluation,
Administrative Measures for the Legal Disclosure of Enterprise Environmental Information, Contingency Plan for Environmental
Emergencies, etc.
National standards include Integrated Wastewater Discharge Standard, Integrated Emission Standard of Air Pollutants, Standard
for Fugitive Emission of Volatile Organic Compounds, Technical Requirement for Low-Volatile-Organic-Compound-Content
Coatings Product, Technical specification for operation of wastewater online monitoring system (CODCr, NH3-N et al.), Technical
Specification for Continuous Monitoring of Non-Methane Total Hydrocarbons in Waste Gas from Stationary Pollution Sources,
Technical guide for leak detection and repair of volatile organic compounds in industriesetc, Technical Specifications for the Setting
of Hazardous Waste Identification Signs, etc. Industry standards include Technical Specification for Application and Issuance of
Pollutant Permit Automotive Industry, Foundry Industry Air Pollutant Emission Standards, Technical Guidelines for Self-monitoring
of Pollutant Discharging Units, etc.
Local standards include Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry,
Emission Standard of Air Pollutants for Catering Industry, Emission Standard of Air Pollutants for Boilers, etc. The company collects
and interprets the newly released and implemented regulations and standards quarterly and conducts compliance evaluations to
ensure that the company’s production and operation are always legally compliant.
Environmental Protection Administrative License
——Administrative License Information for Construction Projects
In 2023, there will be a total of 7 EIA approval documents for construction projects, as follows:
Name and document number of
Approval
Name of construction project environmental impact assessment approval Approval Authority
acquisition time
document
Chongqing Construction Project Chongqing Ecology
Renovation project of office R&D
Environmental Impact Assessment and Environment
base in Sino-German Industrial March 3rd, 2023
Document Approval Letter Bureau (Liangjiang
Park
(YLJHZ [2023] No. 21) New Area Branch)
Opinions on the approval of the
environmental impact report of the vehicle
Hebei Changan Automobile Co., Dingzhou Ecology
production capacity optimization and
Ltd. vehicle production capacity and Environment March 7th, 2023
upgrading project of Hebei Changan
optimization and upgrading project Bureau
Automobile Co., Ltd
(DHS [2023] No. 3)
Opinions on the examination and approval
Hefei Changan Automobile Co., of the environmental impact report of the
Hefei Ecology and
Ltd. A158 series pure electric "Hefei Changan Automobile Co., Ltd. A158
Environment March 27th, 2023
passenger car production line series pure electric passenger car production
Bureau
technical transformation project line technical transformation project".
(HJS [2023] No. 10020)
Yubei factory replacement and Chongqing Construction Project Chongqing Ecology
May 6th, 2023
green upgrade construction project Environmental Impact Assessment and Environment
58
Chongqing Changan Automobile Company Limited 2023 Annual Report
Document Approval Letter Bureau
(YSHZ [2023] No. 25)
Technical transformation project of Chongqing Construction Project Chongqing Ecology
C318 series new energy passenger Environmental Impact Assessment and Environment
June 26th, 2023
car production line of Liangjiang Document Approval Letter Bureau (Liangjiang
No. 3 Factory (YLJHZ [2023] No. 65) New Area Branch)
Chongqing Changan Automobile
Chongqing Construction Project Chongqing Ecology
Co., Ltd. Changan Automobile HE
Environmental Impact Assessment and Environment
series engine production line July 4th, 2023
Document Approval Letter Bureau (Liangjiang
technical transformation project
(YLJHZ [2023] No. 68) New Area Branch)
(phase I)
Opinions on the approval of the
Baoding Chang'an Bus environmental impact report on the technical
Dingzhou Ecology
Manufacturing Co., Ltd. G393 transformation of the G393 production line December 20th,
and Environment
production line technical of Baoding Changan Bus Manufacturing 2023
Bureau
transformation project Co., Ltd
(DHS [2023] No. 14)
——Information on administrative permission for pollutant discharge
In 2023, each base involved a total of 13 pollution discharge license documents, including 4 re applications, 7 changes, 2 others
and no extension. For details, see the "National Pollution Discharge License Management Information Platform" at
http://permit.mee.gov.cn.
——Other administrative licensing information
None.
Industry emission standards and specific conditions of pollutant emissions involved in production and
business activities
Total
Name of the Number of Distribution Discharge Total
Main pollutants and specific Discharge approved Excessive
company or discharge of discharge concentration Pollutant discharge standards discharge
pollutants means discharge emissions
subsidiary outlets outlets (mg/L) (Tons/year)
(Tons/year)
COD Two outlets 39.95 21.84 46.67 —
Ammonia Integrated Wastewater Discharge
for workshop 1.23 0.67 4.21 —
nitrogen Standard（GB8978-1996); The
Intermittent facilities, and
Wastewater 3 Influent Water Quality Requirements
Total nickel emissions one main 0.01 0.01 0.04 —
outlet for the set by the Yubei District Sewage
Total zinc 0.03 Treatment Plant in Chongqing 0.02 — —
Phosphate Plant 0.36 0.20 0.28 —
Sulfur Emission Standard of Air Pollutants
4.56 2.96 4.08 —
dioxide for Surface Coating of
Chongqing Nitrogen Automobile Manufacturing Industry
Changan 52.49 19.67 67.39 —
oxides （DB 50/577-2015);
Automobile Particulate Outlets Emission Standards of Air Pollutants
Co., Ltd. Organized 0.50 0.31 24.20 —
Exhaust gas matter 34 around the for Industrial Kiln and Furnace（DB
Yubei Plant emissions
Volatile Plant 50/659-2016);
organic 1.04 Integrated Emission Standards of Air 2.44 158.21 —
compounds Pollutants（DB 50/418-2016);
Toluene + Emission Standards of Air Pollutants
0.10 0.54 — —
Xylene for Boiler（DB 50/658-2016)
During the reporting period, the Yubei Plant of Chongqing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge
Units of Chongqing in 2023 with a total of 2,260.22 tons of hazardous waste generated in this period. The 2,265.84 tons have been legally utilized
Soil —
and disposed of by manufacturers with hazardous waste operation permits, produced 24,589.07 tons of general industrial solid waste and 24,589.07
tons of utilization and disposal.
COD An outlet for 107 Integrated Wastewater Discharge 9.23 14.02 —
Ammonia workshop
4.35 Standard（GB8978-1996); The 0.92 1.4 —
nitrogen Intermittent facilities, and
Wastewater 2 Influent Water Quality Requirements
Total nickel emissions one main 0.08 0.01 0.04 —
outlet for the set by Guoyuangang Sewage
Total zinc 0.118 Treatment Plant in Chongqing 0.04 0.28 —
Plant
Sulfur Emission standard of Air Pollutants
Chongqing 1.33 0.05 1.23 —
dioxide for Surface Coating of
Changan Nitrogen Automobile Manufacturing Industry
Automobile 46.95 9.46 18.23 —
oxides （DB 50/577-2015);
Co., Ltd. Particulate Emission Standards of Air Pollutants
Outlets 5.62 4.37 36.14
(Liangjiang matter Organized —
Exhaust gas 30 around the for Industrial Kiln and Furnace（DB
Plant, emissions
Volatile Plant 50/659-2016);
Campus No.
organic 5.87 Integrated Emission Standards of Air 12.35 63.06 —
1)
compounds Pollutants（DB 50/418-2016);
Toluene + Emission Standards of Air Pollutants
0.423 0.27 2.68 —
xylene for Boiler（DB 50/658-2016)
During the reporting period, Liangjiang Plant, Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge Units of
Chongqing in 2023 with a total of 1,804.59 tons of hazardous waste in this period. A total of 1,798.43 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits, produced 18,254.69 tons of general industrial solid waste and 18,254.69 tons of utilization
and disposal.
Chongqing COD An outlet for 58 Integrated Wastewater Discharge 38.13 46.00 —
Intermittent
Changan Wastewater Ammonia 2 workshop Standard（GB8978-1996); The
emissions 3.035 2.01 4.60 —
Automobile nitrogen facilities, and Influent Water Quality Requirements
59
Chongqing Changan Automobile Company Limited 2023 Annual Report
Co., Ltd. Total nickel one main 0.05 set by the Guoyuangang Sewage 0.004 0.14 —
(Liangjiang outlet for the Treatment Plant in Chongqing
Plant, Total zinc Plant 0.0393 0.03 1.38 —
Campus No. Sulfur Emission standard of Air Pollutants
2) 0.905 0.11 4.12 —
dioxide for Surface Coating of
Nitrogen Automobile Manufacturing Industry
60.158 29.57 34.72 —
oxides （DB 50/577-2015);
Particulate Outlets Emission Standards of Air Pollutants
Organized 6.7522 12.26 50.61 —
Exhaust gas matter 47 around the for Industrial Kiln and Furnace（DB
emissions
Volatile Plant 50/659-2016);
organic 3.315 Integrated Emission Standards of Air 7.84 543.23 —
compounds Pollutants（DB 50/418-2016);
Toluene + Emission Standards of Air Pollutants
0.3593 0.36 5.49 —
xylene for Boiler（DB 50/658-2016)
During the reporting period, Liangjiang Plant, Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2023
Soil with a total of 3,789.29 tons of hazardous waste. The 3,821.38 tons were legally utilized and disposed of by manufacturers with hazardous waste —
operation permits, produced 33,554.15 tons of general industrial solid waste and 33,554.15 tons of utilization and disposal.
COD An outlet for 64.15 Integrated Wastewater Discharge 13.71 45 —
Total nickel workshop 0.33 0.005 0.09 —
Standard（GB8978-1996); The
Ammonia Intermittent facilities, and
Wastewater 2 2.65 Influent Water Quality Requirements 0.55 4.5
nitrogen emissions one main —
set by the Guoyuangang Sewage
outlet for the
Total zinc Plant 0.08 Treatment Plant in Chongqing 0.01 0.81 —
Chongqing Particulate Emission standard of Air Pollutants
10.005 5.58 64.24 —
Changan matter for Surface Coating of
Automobile VOCs 8.04 Automobile Manufacturing Industry 7.49 244.36 —
Co., Ltd. SO2 0 （DB 50/577-2015); 0.02 5.34 —
(Liangjiang Toluene + Outlets Emission Standards of Air Pollutants
Organized 1.88 for Industrial Kiln and Furnace（DB 0.53 0.95 —
Plant, Exhaust gas xylene 38 around the
emissions
Campus No. Plant 50/659-2016);
3) Integrated Emission Standards of Air
NOx 51.52 Pollutants（DB 50/418-2016); 6.11 24.78 —
Emission Standards of Air Pollutants
for Boiler（DB 50/658-2016)
During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023
Soil with a total of 1,721.97 tons of hazardous waste generated in this period. 1,724.55 tons were legally utilized and disposed of by manufacturers with —
hazardous waste operation permits, produced 16,705.82 tons of general industrial solid waste and 16,705.82 tons of utilization and disposal.
COD 89.22 Integrated Wastewater Discharge 14.45 22.50 —
Standard（GB8978-1996); The
Ammonia Intermittent Main outlet
Wastewater
emissions
2 for the Plant Influent Water Quality Requirements
nitrogen 2.7 set by the Guoyuangang Sewage 1.45 2.25 —
Chongqing （NH3-N） Treatment Plant in Chongqing
Changan Particulate
Automobile matter
4.179 Emission Standards of Air Pollutants 14.66 — —
Co., Ltd. Outlets for Industrial Kiln and Furnace（DB
SO2 Organized 3 4.91 — —
(Jiangbei Exhaust gas
emissions
93 around the 50/659-2016);
Engine Plant, VOCs Plant 1.7 Integrated Emission Standards of Air 1.55 — —
Plant No.1） NOx 7.23 Pollutants（DB 50/418-2016) 8.19 — —
During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023,
and a total of 4,345.15 tons of hazardous waste was generated in this period. 4,347.97 tons were legally utilized and disposed of by manufacturers
Soil —
with hazardous waste operation permits or exemption certificates, produced 1,703.78 tons of general industrial solid waste and 1,703.78 tons of
utilization and disposal.
COD 89.3 Integrated Wastewater Discharge 9.98 11.08 —
Standard（GB8978-1996); The
Ammonia Intermittent Main outlet
Wastewater
emissions 1 for the Plant Influent Water Quality Requirements
nitrogen 1.31 set by Guoyuangang Sewage 1.00 1.11 —
（NH3-N） Treatment Plant in Chongqing
Non-
Chongqing
Changan
methane total 2.8 3.24 — —
hydrocarbons Emission Standards of Air Pollutants
Automobile
Co., Ltd. Nitrogen Outlets for Industrial Kiln and Furnace（DB
Organized 17.96 3.03 — —
(Jiangbei Exhaust gas oxides
emissions
37 around the 50/659-2016);
Engine Plant, Particulate factory Integrated Emission Standards of Air
matter
7.93 Pollutants（DB 50/418-2016)
16.71 — —
Plant No. 2）
Sulfur
dioxide
3 1.94 — —
During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in 2023,
and a total of 8,000.86 tons of hazardous waste was generated in this period. 7,995.46 tons were legally utilized and disposed of by manufacturers
Soil —
with hazardous waste operation permits or exemption certificates, produced 555.86 tons of general industrial solid waste and 555.86 tons of
utilization and disposal.
COD An outlet for 29.75 6.28 25.76 —
Ammonia Integrated Wastewater Discharge
workshop 3.34 0.52 3.48 —
nitrogen Standard（GB8978-1996); The Inlet
Intermittent facilities, and
Wastewater 3 Water Quality Requirements set by
Total nickel emissions two main 0.14 0 0.029 —
outlets for Guoyuangang Sewage Treatment
Total zinc 0.092 Plant in Chongqing 0.009 — —
Phosphate the Plant 0.09 0.02 0.13 —
Particulate
3.98 8.92 38.03 —
Chongqing matter
Emission standard of Air Pollutants
Lingyao Volatile
for Surface Coating of
Automobile organic 3.54 7.43 111.4 —
Automobile Manufacturing Industry
Co., Ltd. compounds Outlets
Organized （DB 50/577-2015);
Exhaust gas Toluene + 40 around the
emissions 0.91 Integrated Emission Standards of Air 0.76 6.46 —
xylene Plant
Pollutants（DB 50/418-2016);
Sulfur 3L（Not
Emission Standards of Air Pollutants 0 7.12 —
dioxide detected）
for Boiler（DB 50/658-2016)
Nitrogen
11.92 0.56 16.26 —
oxides
During the reporting period, Chongqing Lingyao Automobile Co., Ltd. (Changan Suzuki) was included in the List of Key Pollutant Discharge
Soil —
Units in Chongqing in 2023, and a total of 2,113.83 tons of hazardous waste was generated in this period, 2,113.83 tons were legally utilized and
60
Chongqing Changan Automobile Company Limited 2023 Annual Report
disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 15,992.23 tons of general industrial solid
waste and 15,992.23 tons of utilization and disposal.
COD An outlet for 48.1 15.55 63.68 —
Ammonia workshop
Intermittent 3.7 Integrated Discharge Standard of 1.19 3.81 —
Wastewater nitrogen 2 facilities, and
emissions Water Pollutants (DB11/307-2013)
Total nickel a main outlet 0.06 0.001 0.01 —
Phosphate for the Plant 1.92 0.53 — —
Chongqing Nitrogen
Changan 10.88 0.41 3.18 —
oxides
Automobile Emission standard of Air Pollutants
Volatile
Co., Ltd. for Surface Coating of
organic Outlets 2.79 6.15 458.76 —
Beijing Automobile Manufacturing Industry
Exhaust gas compounds Organized 52 around the
Changan (DB11/1227-2015);
Sulfur emissions Plant Integrated Emission Standards of Air
Automobile 2.93 4.09 — —
dioxide
Company Pollutants（DB11/501-2017）
Particulate
1.87 4.12 — —
matter
During the reporting period, Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company was included in the List of Key
Pollutant Discharge units in Beijing in 2023, and a total of 618.18 tons of hazardous waste was generated in this period, 618.18 tons were legally
Soil —
utilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 8,730.23 tons of general
industrial solid waste and 8,730.23 tons of utilization and disposal.
COD 38.18 27.10 169.55 —
Total
Two outlets 12.70 9.57 43.98 —
nitrogen Integrated Wastewater Discharge
for workshop
Total nickel Intermittent 0.008 Standard（GB8978-1996); 0.01 0.09 —
Wastewater 3 facilities, and
Total emissions The Pipe Standards set by Hefei
a main outlet 0.25 0.12 — —
phosphorus for the Plant West Group Sewage Treatment Plant
Hefei Ammonia
Changan 1.92 0.42 16.96 —
nitrogen
Automobile Emission Control Standard for
Co., Ltd Outlets Industrial Enterprises Volatile
Organized
VOCs 74 around the 5.21 19.03 65.03 —
Exhaust gas emissions Organic Compounds of Tianjin
Plant
（DB12/524-2020）
During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2023, and
a total of 2,278.01 tons of hazardous waste was generated in this period, 2,275.06 tons were legally utilized and disposed of by manufacturers with
Soil —
hazardous waste operation permits or exemption certificates, produced 32,460.93 tons of general industrial solid waste and 32,460.93 tons of
utilization and disposal.
COD 34.04 1.71 13.336 —
Total
3.64 0.12 14.24 —
nitrogen An outlet for Integrated Wastewater Discharge
Total nickel workshop 0.085 Standard（GB8978-1996); 0.001 0.06
Intermittent
Nanjing Wastewater Total 2 facilities, and The Pipe Standards set by Nanjing
emissions 0.38 0.01 0.08 —
Changan phosphorus a main outlet Lishui Qinyuan Sewage Treatment
Automobile Ammonia for the Plant Co., Ltd.
Co., Ltd. nitrogen 1.32 0.04 0.26 —
(The old （NH3-N）
factory has NOx 33 Emission standard of Air Pollutants 0.66 — —
been for Surface Coating of
Particulate
discontinued 0.99 Automobile Manufacturing Industry 0.94 — —
matter
on June 10th, Organized Outlets (DB32/2862 – 2016);
2023) VOCs 6 3.179 3.95 38.48 —
Exhaust gas emissions around the Integrated Emission Standards of Air
Plant Pollutants (GB 16297 - 1996);
SO2 3 Emission Standards of Air Pollutants 0.08 — —
for Boiler (GB13271-2014)
Soil — —
COD 34.25 3.74 43.08 —
Total
4.69 Integrated Wastewater Discharge 0.54 1.20 —
nitrogen
An outlet for Standard（GB8978-1996);
Total Intermittent
Wastewater 1 workshop 1.1 The Pipe Standards set by Nanjing 0.14 0.39 —
phosphorus emissions
facilities Lishui Qinyuan Sewage Treatment
Ammonia
Co., Ltd.
nitrogen 0.81 0.10 0.86 —
Nanjing （NH3-N）
Changan NOx 16 Emission standard of Air Pollutants 0.27 — —
Automobile Particulate for Surface Coating of
Co., Ltd. 15 Automobile Manufacturing Industry 2.30 — —
matter
(The new Organized Outlets (DB32/2862 – 2016);
VOCs 6 9.67 14.05 31.57 —
factory) Exhaust gas emissions around the Integrated Emission Standards of Air
Plant Pollutants (GB 16297 - 1996);
SO2 0 Emission Standards of Air Pollutants 0.00 — —
for Boiler (GB13271-2014)
During the reporting period, Nanjing Changan Automobile Co., Ltd.(The new factory) was included in the List of Key Pollutant Discharge Units in
Nanjing in 2023, and a total of 1,277.49 tons of hazardous waste was generated in this period, 1,264.58 tons were legally utilized and disposed of
Soil —
by manufacturers with hazardous waste operation permits or exemption certificates, produced 728.52 tons of general industrial solid waste and
728.52 tons of utilization and disposal.(Including the old factory of Nanjing Changan Automobile Co., Ltd)
Ammonia
2.5612 0.12 4.8 —
nitrogen
COD An outlet for 79.018 Integrated wastewater discharge 7.53 63.71 —
workshop standard（GB8978-1996);
Total Intermittent
Wastewater 2 facilities, and 9.88 The Influent Water Quality 0.92 7.32 —
nitrogen emissions
a main outlet Requirements Set by Gezhouba
Total for the Plant
Hebei 1.858 Water Dingzhou Branch 0.14 0.92
phosphorus
Changan
Automobile Total nickel 0.059 0.002 0.03 —
Co., Ltd Sulfur Integrated Emission Standards of Air
3 0.19 30.01 —
dioxide Pollutants GB16297-1996;
Non-methane Outlets Emission Standards of Air Pollutants
Organized
total 51 around the 11.61 for Industrial Kiln and Furnace 18.23 570.34 —
Exhaust gas emissions
hydrocarbons plant DB1640-2012;
Particulate Emission Control Standards for
3.53 Volatile Organic Compounds by 4.70 53.4 —
matter
61
Chongqing Changan Automobile Company Limited 2023 Annual Report
Industrial Enterprises
Nitrogen DB13/2322-2016;
14 Emission Standards of Air Pollutants 3.78 31.47 —
oxides
for Boiler（DB13/5161-2020)
During the reporting period,Hebei Changan Automobile Co., Ltd was included in the List of Key Pollutant Discharge Units in Dingzhou In 2023,
with a total of 738.30 tons of hazardous waste generated in this period, of which 695.81 tons have been legally utilized and disposed of by
Soil —
suppliers with hazardous waste operation permits, produced 8,067.69 tons of general industrial solid waste and 8,067.69 tons of utilization and
disposal.
COD A workshop 133.95 11.44 72.71 —
Ammonia facility 6.7575 Integrated Wastewater Discharge 0.54 4.14 —
nitrogen discharge
Hebei Standard（GB8978-1996);
Total Intermittent outlet, and
Changan Wastewater 2 14.74 The Influent Water Quality 1.33 5.51 —
nitrogen emissions one factory
Automobile total Requirements Set by Gezhouba
Total
Co., Ltd. No. discharge 1.853 Water Dingzhou Branch 0.003 1
phosphorus
2 Plant (The outlet
pollutant Nickel 0.16 0.005 0.06 —
discharge Sulfur Integrated Emission Standards of Air
3 3.95 88.23 —
permit will dioxide Pollutants GB16297-1996;
be merged Nitrogen Emission Standards of Air Pollutants
3 for Industrial Kiln and Furnace 6.82 33.75 —
with the oxides
same plant in Particulate Outlets DB1640-2012;
Organized 5 Emission Control Standards for 12.52 850.8 —
December matter 94 around the
Exhaust gas emissions Volatile Organic Compounds by
2023, and the plant
original Volatile Industrial Enterprises
license will organic 6.7 DB13/2322-2016; 42.29 880.62 —
be cancelled compounds Emission Standards of Air Pollutants
at the same for Boiler（DB13/5161-2020)
time) During the reporting period, Campus NO.2 of Chongqing Changan Kaicheng Automobile Technology Co., Ltd. (formerly known as Changan Bus)
was included in the List of Key Pollutant Discharge Units in Dingzhou in 2023. A total of 890.16 tons of hazardous waste were generated in this
Soil —
period, and 896.32 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits , produced 12,062.49 tons of
general industrial solid waste and 12,062.49 tons of utilization and disposal.
All pollutants are discharged to the standard, and there is no discharge exceeding the standard and the total amount. For details
of the name, distribution and pollutant discharge of each discharge outlet, please refer to the "Environmental Information Disclosure
Information System in accordance with the Law" of the province or city where it is located, and the public website is detailed in the
following table.
Enterprise environmental information
The name of the organization disclosure system in accordance with Public website
the law
Yubei Plant, Liangjiang Plant, Enterprise environmental information
Jiangbei Engine Plant, disclosure system in accordance with http://183.66.66.47:10001/eps/index/enterprise-search
Chongqing Lingyao the law（Chongqing）
Enterprise environmental information
Beijing Changan Automobile
disclosure system in accordance with https://hjxxpl.bevoice.com.cn:8002/home
Company
the law（Beijing）
Enterprise environmental information
Hefei Changan Automobile
disclosure system in accordance with http://112.27.211.30:18900/st_yfpl_html/dist/#/home
Co., Ltd
the law（Anhui）
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/w
Enterprise environmental information
Nanjing Changan Automobile disclosure system in accordance with eb/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.c
Co., Ltd n:18181/spsarchive-webapp/web/sps/views/yfpl/views/yfpl
the law（Jiangsu）
HomeNew/index.js
Enterprise environmental information
Hebei Changan Automobile
disclosure system in accordance with http://121.29.48.71:8080/#/guide
Co., Ltd
the law（Hebei）
Treatment of pollutants
Pollutant type Main processing technology Processing method
Venturi wet paint mist treatment+zeolite rotary adsorption
Spraying VOCs exhaust Deal with by oneself or
concentration+TNV incineration; Activated carbon adsorption;
gas themselves
Low temperature plasma
Deal with by oneself or
Drying VOCs exhaust gas TNV or RTO incineration
themselves
Deal with by oneself or
Other VOCs exhaust gas Activated carbon adsorption
themselves
Exhaust gas
Test exhaust gas (nitrogen Deal with by oneself or
Automotive three-way catalytic converter
oxide) themselves
Deal with by oneself or
Foundry dust Bag type dust removal
themselves
Deal with by oneself or
Foundry stench Alkali adsorption or biosorption
themselves
Refueling mist Mechanical filtration Deal with by oneself or
62
Chongqing Changan Automobile Company Limited 2023 Annual Report
themselves
Self processing or
Phosphating waste gas Coagulation sedimentation
outsourcing operations
Self processing or
Wastewater Oily wastewater Oil separation+air flotation
outsourcing operations
Comprehensive Self processing or
Coagulation sedimentation+aerobic biochemistry
wastewater outsourcing operations
Outsourcing utilization
Waste solvent Utilization or incineration
and disposal
Outsourcing utilization
Wet metal chips Utilize
and disposal
Aluminum ash, packaging Outsourcing utilization
Utilize
drum and disposal
Solid waste
Wastewater treatment Outsourcing utilization
Landfill
sludge and disposal
Recyclable general Outsourcing utilization
Utilize
industrial solid waste and disposal
Outsourcing utilization
Others Incineration or landfill
and disposal
Deal with by oneself or
Noise Mechanical noise Damping and sound insulation
themselves
In 2023, a set of activated carbon adsorption facilities will be added to the exhaust gas of Nanjing Chang'an Hazardous Waste
Room, Hefei Chang'an Point Replenishment Wax, Wastewater Treatment Station, Liangjiang Factory's laundry room, tooling
cleaning room, and Yubei Plant's No. 1 and No. 2 wastewater treatment stations, while welding and grinding wet dust removal
facilities will be added to the first plant of Liangjiang Plant, four lithium bromide refrigeration units in Plant No. 3 will be renovated
for low-nitrogen combustion, and four lithium bromide refrigeration units will be converted to electric refrigeration. Pollution control
facilities are included in the preventive maintenance management of equipment like production equipment, and there are ledgers,
operating procedures or work instructions, preventive maintenance procedures, preventive maintenance plans and implementation
records, equipment spot checks, dosing, slag removal, consumables replacement and other operation records, and the facilities are
operating normally. The key pollutant discharging units are equipped with automatic monitoring facilities for wastewater and waste
gas in accordance with the requirements of the local ecological and environmental authorities, and entrust the operation and
maintenance of the third-party professional companies, and the facilities are operating normally. In 2023, there will be no non-normal
operation of pollution control facilities..
Contingency Plan for environmental emergencies
The manufacturing sites, as required, carries out risk assessment of environmental emergencies, emergency resource surveys,
formulated or revised contingency plans for environmental emergencies, prepared on-site response plans for units with environmental
risk, and continuously carried out hidden danger investigation and treatment. In 2023, 3 manufacturing sites completed the revision
and filing of contingency plan for environmental emergencies, as shown in the following table:
Unit Contingency Plan File Code Filing Authority
Chongqing Municipal
Chongqing Changan Automobile Co., Ltd. Jiangbei
Jiangbei Engine Plant Bureau of Ecology and
Engine Plant No. 2 Plant Emergency Plan for 500128-2023-030-L
No. 2 Plant Environment, Liangjiang
Environmental Emergencies
New District Bureau
Nanjing Changan Automobile Co., Ltd. Nanjing Lishui District
Nanjing Changan (Development Zone Factory) Emergency Plan for 3201242023062L Ecological Environment
Environmental Emergencies Bureau
Hefei High-tech Zone
Hefei Changan Automobile Co., Ltd. emergency plan
Hefei Changan 340171-2023-043M Ecological Environment
for environmental emergencies
Branch
All bases formulate emergency drill plans in accordance with the requirements of laws and regulations, and carry out emergency
drills as planned, so as to continuously improve the practicality of emergency plans and the emergency handling ability of employees.
No environmental emergencies occurred in 2023.
Environmental self-monitoring plan
In 2023, key units responsible for pollution discharge of the company prepared self-monitoring plans and carried out
self-monitoring in accordance with the requirements of laws and regulations, and disclosed monitoring information on
self-monitoring data release platforms of various provinces as required by local ecological environment authorities. See the following
table for the public websites.
Environmental Self-Monitoring Plan
Units Website
Disclosure Platform
63
Chongqing Changan Automobile Company Limited 2023 Annual Report
Yubei Plant, Liangjiang Plant, Jiangbei Key Pollution Source Monitoring Data http://119.84.149.34:20003/publish2/d
Engine Plant, Chongqing Lingyao Release Platform ataSearchPub/entList.aspx
National Pollutant Discharge Permit http://xxgk.bevoice.com.cn/monitor-pu
Beijing Changan Automobile Company
Management Information Platform b/index.do
Anhui Province Discharge Units
https://wryjc.cnemc.cn/gkpt/mainZxjc/
Hefei Changan Automobile Co., Ltd Self-Monitoring Information Disclosure
340000
Platform
http://ywxt.sthjt.jiangsu.gov.cn:18181/
Jiangsu Province Enterprise "Environmental spsarchive-webapp/web/viewRunner.ht
Nanjing Changan Automobile Co., Ltd. Protection Facebook" information disclosure ml?viewId=http://218.94.78.91:18181/
platform spsarchive-webapp/web/sps/views/yfpl
/views/home/index.js
Hebei Provincial Pollutant Discharge Unit
https://wryjc.cnemc.cn/gkpt/mainZxjc/
Hebei Changan Automobile Co., Ltd Self-monitoring Information Disclosure
130000
Platform
Investment in environmental treatment and protection and payment of environmental protection tax
The company’s environmental protection investment mainly includes: the construction of environmental protection facilities,
operation and maintenance of environmental protection facilities, solid waste transportation and disposal (hazardous waste included),
sewage treatment, monitoring, revision of contingency plans, purchase of emergency materials, environmental protection tax, etc.
The company paid environmental protection tax of RMB 1,467,600 in 2023.
Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □Not applicable
In 2023, Changan continued to promote the goal of “reaching carbon peak by 2027 and carbon neutrality by 2045”.
Changan has taken solid efforts in energy-saving and carbon-reducing measures in manufacturing, achieving a 2.36%
year-on-year reduction in carbon emission per vehicle and a 6.25% year-on-year reduction in carbon emissions per engine. We took
in-depth measures to reduce carbon emission in the manufacturing process and tap potential. We have launched a total of 79 carbon
reduction initiatives from various dimensions including energy efficiency optimization, process improvement, lean start-stop,
scheduling optimization, achieving carbon reduction of 15,000 tons. We vigorously promoted energy structure reform. Bases in Yuzui
of Chongqing, Hefei province and Hebei province have built photovoltaic power stations totaling about 79MW, generated and
consumed green and clean energy by ourselves, with a total consumption of 57.6 million kWh of green power throughout the year,
realizing carbon reduction of 50,000 tons. Changan actively participated in market-based green power trading, responding to the call
of local policies to purchase green power of 3 million kWh, realizing carbon reduction of 0.2 million tons.
Changan carried out low-carbon technology research and application development in various technical fields of products,
breaking through and mastering more than 100 core technologies, reducing its average carbon emission intensity per vehicle by 6.5%
year-on-year. Among them: (A) In the field of new energy, the independent CTP battery has realized mass production. CTV battery
has completed the industrialization sample test. The integration rate of the whole package is more than 76%, and the self-developed
an electrodeless power battery control technology has improved the instantaneous power of charging and discharging by up to 20%.
(B) In the field of new power, breakthroughs were made in more than 20 core technologies, such as hydrogen fuel engine, ultra-high
thermal efficiency engine, power domain controller, hybrid motor controller, etc. The independent hybrid electric drive realized mass
production, adopting the 10-layer Hairpin flat-wire oil-cooled motor with a power density of 7kW/kg and the highest assembly
efficiency of 95%, which was awarded “Heart of China” 2023 Top 10 Engines and Hybrid Systems. We developed HE series hybrid
exclusive engines, with the highest thermal efficiency exceeding 44%; We developed Changan Automobile’s second-generation
hydrogen fuel engine, realizing zero-carbon and near-zero emissions, and won the “Top 10 Achievement Transformation Award of
the Engineer Excellence Competition”. (C) In the field of new materials, Changan has established the ability to independently
account for the carbon emissions of its products, and has completed 15 research studies on the application of low-carbon material
technologies, which have been carried and applied in a number of vehicle models, realizing a carbon reduction of about 2% for a
single vehicle model. Changan is committed to creating low-carbon products. DEEPAL SL03 is equipped with an ultra-integrated
electric drive, integrating a number of low-carbon technologies such as low wind resistance, light weight and low voltage power
consumption. The carbon emission value of the whole vehicle is lower than that of the industry by more than 10%, and it has been.
Administrative penalties imposed for environmental reasons during the reporting period are shown below
None.
64
Chongqing Changan Automobile Company Limited 2023 Annual Report
Other environmental protection-related information
1. Environmental credit evaluation
In 2023, Yubei Factory, 3 bases of Liangjiang Factory, 2 bases of Jiangbei Engine, Chongqing Lingyao rated as Chongqing 2022
Environmental Integrity Enterprise, Mold Division rated as Yubei District Environmental Integrity Enterprise, Hefei Chang'an rated
as Anhui Province Environmental Integrity Enterprise, and Nanjing Changan rated as Jiangsu Province General Trustworthy
Enterprise.
2. Green supply management information
Changan has actively leveraged its industry influence to form a partnership of mutual trust, shared responsibility, and shared
benefits and build a new supply chain system of open cooperation, win-win benefits, and sustainable development. Chongqing
Changan has been shortlisted as a “ National Green Supply Chain Management Enterprise ” and “ National Green Design
Demonstration Enterprise”. Currently it has 18 green design products and 2 green factories (Yubei Factory and Liangjiang Factory)
and has been shortlisted as a “Pilot Enterprise of Extended Producer Responsibility for Automobiles”.
We promoted green design and production, eliminated high energy-consuming equipment, and established green supply chain
management and green corporate dynamic management. We piloted the collection of supplier product carbon emission data and
collaborative carbon reduction. Through the access certification - Changan Business Partner Code of Conduct, Changan clarified the
obligations and responsibilities in terms of human rights and working conditions, business ethics, conflict of interest, environmental
protection, and conflict minerals, etc. Through the management of VOC control, prohibited substances, special supply requirements
and green procurement evaluation, we worked with suppliers to improve our environmental performance and encourage them to save
energy and reduce emissions and develop in a green and low-carbon way; We have implemented the management of IATF16949
quality management system certificate and ISO14001 environmental certification management, of which 98.4% of the suppliers have
passed the IATF16949, 95.1% have passed the ISO14001, and 20% of the suppliers have been qualified as Green Factories and
Green Supply Chain Management Enterprises.
For the management of hazardous substances, the collection and control of automotive material data, energy consumption, and
other information is realized by completing systematic data declaration through CAMDS and realizing comprehensive analysis and
data accounting through the ELV compliance system.
Check China Automotive Green Dismantling System (http://www.cagds.org.cn) for Changan outlets for recycling scrapped
vehicles. Companies to recycle or use dismantled vehicles can also log in on the CAGDS website or CAGDS system to see the
manual of M1 passenger car dismantling. Users can check relevant information on the M1 vehicle disassembly manual through the
WeChat mini program “Vehicle Disassembly Manual Identity Analysis Tool”.
Power battery recycling service outlets can be checked on Changan Automobile Official Website (https://www.changan.com.cn).
II. Social Responsibility
The full text of the company's 2023 environmental, social and governance (ESG) report has been published on the same day as
the company's annual report on http://www.cninfo.com.cn.
III. The Company Consolidated and Expanded the Achievements of Poverty Alleviation and
Rural Revitalization
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era, Changan comprehensively
implemented the spirit of the 20th CPC National Congress, as well as that of the opinions of the CPC Central Committee and the
State Council on comprehensively advancing the revitalization of the countryside, conscientiously implemented the government's
work arrangements, adhered to the general tone of seeking progress while maintaining a steady growth, and focused on “guarding the
bottom line, focusing on development, and promoting revitalization”. Highlighting annual tasks, targeted initiatives and practical
orientation, Changan did a good job of targeted assistance in a solid and orderly manner, continuously improved the quality and
effectiveness of assistance, and effectively carried out its political and social responsibilities, contributing Changan's strengths to the
comprehensive promotion of rural revitalization.
1. Strengthen organizational leadership
We held 6 meetings among senior company leaders to study and arrange key work. We held 12 thematic working sessions on
rural revitalization and targeted support to decide on key programs, study the plans, line out measures, and speed up the work.
Changan's leadership visited Youyang County of Chongqing for research and guidance, promoting targeted assistance projects in an
orderly manner.
2. Guarantee funds for assistance
Changan had pooled 10.6 million yuan for assistance, including 4.6 million yuan for Luxi County in Yunnan, and 6 million yuan
for Yanshan County in Yunnan to support the comprehensive revitalization of rural industries, talents, culture, ecology, and
organization in these two counties. Our purpose is to drive the development of rural industries, improve the local ecosystem, make
local culture more civilized, and improve people’s well-being with more effective governance.
65
Chongqing Changan Automobile Company Limited 2023 Annual Report
3. Promote industrial assistance
Carrying out the government’s overall plan on the implementation of rural revitalization, Changan continued to do a good job in
helping the Youyang Tea Oil Project, and helped build a long-term mechanism of scientific management system with the core of
improving the operation and management ability. First, we boosted marketing and channels, and through the company’s sales
network, we helped Chongqing Youzhou Tea Oil Technology Co., Ltd. to realize sales of 32.12 million yuan. Second, we enhanced
the brand and corporate image, carried out the Changan Automobile cross-border new public welfare activity themed “bring new
benefit with love and share a better life”, and held a signing ceremony for sustainable development cooperation activities which
Xinhua News Agency, Xinhua Net, Global Times, Guangming Daily and other media attended and reported. Changan helped
Youyang Tea Oil make its debut with a high-end national oil brand image in the independent zone of Shanghai, Chongqing, Chengdu,
Guangzhou international auto shows, engaging in cross-border new public welfare to expand its influence and setting an example for
enterprises to assume their social responsibility. Third, we improved the business management system, adding 91 new business
management system documents, upgrading and refining a more scientific and applicable management system of Youyang Tea Oil,
helping Youzhou Oil Tea Technology Company to build a long-term mechanism of scientific management system. Fourth, we carried
out carbon sink methodology research, established the oil tea tree carbon sink measurement model, parameter system and
measurement standards, and built the oil tea tree carbon sink assessment methodology system.
4. Implement consumer support
Focusing on promoting the stable sales of supported products, Changan encouraged all business units and employees to buy
agricultural products from the targeted supported areas, and actively participated in “ Spring Action for Consumption Support
through SOEs under Central Government ” and “ Week of Consumption for Rural Area Products through SOEs under Central
Government ” , with a total consumption support of 2.095 million yuan. Among them,1.478 million yuan was consumed in two
counties in Yunnan and 617,000 yuan in other regions. Changan has taken practical actions to promote the development of industries
in poverty-stricken areas and stabilize the income of poverty-stricken people.
5. Promote employment assistance
Leveraging its advantages as an automobile manufacturer, Changan has made skill training the focus and set up 2 “Changan
Automobile Classes”in Luxi County and Yanshan County in Yunnan Province, and Youyang County in Chongqing. We carried out 2
expert lectures on campus and 2 rounds of recruitment at targeted areas. A total of 406 students were recruited, turning employment
assistance into concrete actions and helping increase the income of people from rural areas.
6. Summarize and disseminate
Under the title of “From Giving Fish to Teaching ‘Fishing’- Changan Automobile Promoted the Implementation of Rural
Revitalization and Achieved Results”, Changan submitted the case to the Association of Listed Companies in China to publicize and
promote its effective and distinctive practice activities in rural revitalization, and was awarded the “Outstanding Practice Case of
Listed Companies in Rural Revitalization”.
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Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 6 Important Matters
I. Undertaking performance
1. Undertakings completed during the reporting period and yet to be performed as of the end of the
reporting period of the company’s actual controllers, shareholders, related-parties, acquirers, and the
company’s related parties of the undertakings.
√ Applicable □Not applicable
Type of
Undertakings Undertaking party Description Date Duration Performance
undertaking
The shares of Changan Automobile
China South Industries Group subscribed through this offering
Undertakings Co., Ltd.; China Changan Sales shall not be transferred in any way
October, 36 Fulfillment
made at the IPO Automobile Group Co., Ltd.; restrictions within 36 months after the offering,
2020 Months completed
or refinancing Southern Industry Asset for shares including but not limited to public
Management Co., Ltd. transfer through the securities
market or by agreement.
China South Industries Group From November 7th, 2023, within 6
Co., Ltd.; China Changan Sales months, the company will not
Other Novemb In normal
Automobile Group Co., Ltd.; restrictions reduce its holdings through 6 Months
commitments er 2023 progress
Southern Industry Asset for shares centralized bidding or bulk trading
Management Co., Ltd. in the secondary market.
Whether the
promise is
Yes
fulfilled as
scheduled
2. Explanation on whether assets or projects reach the earnings forecast and reasons when there is earning
forecast for asset or projects and the reporting period is within the forecast period.
□ Applicable √ Not applicable
II. Non-operating funds the listed company occupied by controlling shareholders and their
related parties
□ Applicable √ Not applicable
During the reporting period, there was no non-operating funds of the listed company occupied by the controlling shareholder
and related parties.
III. Irregular external guarantee
□ Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest “Non-standard Audit Report”
□ Applicable √ Not applicable
67
Chongqing Changan Automobile Company Limited 2023 Annual Report
V. Explanation of the “Non-Standard Audit Report” issued by the accounting firm during the
reporting period by the BOD, BOS and independent directors (if any)
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies, accounting estimates and remedies for
significant accounting errors
√ Applicable □ Not applicable
Please refer to "(31) Changes in Significant Accounting Policies and Accounting Estimates" in Note 3 to the financial
statements for details.
VII. Explanation of changes in the consolidated statement scope compared to the last annual
report
√ Applicable □ Not applicable
During the reporting period, the company has acquired the equity of Deepal Automotive Technology Co., Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership), with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.
VIII. Appointment and dismissal of the accounting firm
The appointed accounting firm
The name of the domestic accounting firm Lixin Certified Public Accountants (Special General Partnership)
Payment (RMB: 10,000) 324.90(Excluding tax)
Years of audit services 1
Names of Certified Public Accountants Zhu Yuqin, Wang Kai
Years of services provided by Certified Public Accountants 1
Whether to re-appoint the accounting firms
√Yes □ No
Whether to hire a new accounting firm during the audit period
□Yes √ No
Does the replacement of accounting firm follow the approval process
√Yes □ No
Detailed explanation of the situation regarding the change of appointment or change of accounting firm
Considering that Ernst & Young Huaming LLP (Special General Partnership) has served the company continuously for more
than 10 years, which does not comply with the provisions of Article 12 of the Management Measures for the Selection and
Appointment of Accounting Firms by State owned Enterprises and Listed Companies, which stipulates that the continuous
appointment period shall not exceed 10 years, the proposal to appoint Lixin Certified Public Accountants (Special General
Partnership) as the company's audit institution for the year 2023 has been reviewed and approved by the third meeting of the ninth
board of directors and the second extraordinary general meeting of shareholders in 2023, providing financial audit and internal
control audit services.
Description of the internal control accounting firms, financial adviser or sponsor
√Applicable □ Not applicable
After the third meeting of the ninth board of directors and the second extraordinary general meeting of shareholders in 2023, the
company has successively reviewed and approved the proposal on the appointment of auditors for the 2023 financial report and
internal control report. The company has hired Lixin Certified Public Accountants (Special General Partnership) as the auditor for the
2023 internal control report. The company paid an internal control audit fee of RMB 949,800 (excluding tax) for the internal control
audit services provided by Lixin Certified Public Accountants (Special General Partnership) in 2023.
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
68
Chongqing Changan Automobile Company Limited 2023 Annual Report
X. Bankruptcy and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.
XI. Crucial litigation and arbitration
□ Applicable √ Not applicable
During the reporting period, the company has no crucial litigation and arbitration.
XII. Punishment and rectification
□ Applicable √ Not applicable
During the reporting period there’s no punishment and rectification..
XIII. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
XIV. Significant related-party transactions
1. Related-party transactions related to daily operation
For details, please refer to Note 12 “Related Party Relationships and Transactions” under the Chapter 10.
2. Related-party transactions of acquisition or sales of assets or equity
□ Applicable √ Not applicable
3. Related-party transactions of common foreign investment
□ Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" under the Chapter 10.
Whether there is any non-business related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
Amount incurred in the current
Maximum period
Beginning
daily deposit Total Ending balance
Related party Relationship Interest rate balance (RMB: Total deposit
limit (RMB: withdrawal (RMB: 10,000)
10,000) amount (RMB:
10,000) amount (RMB:
10,000)
10,000)
China South A company
Industries controlled by
2,000,000 0.35%-2.1% 1,986,295 23,579,401 23,573,094 1,992,602
Group Finance the actual
Co., Ltd. controller of
69
Chongqing Changan Automobile Company Limited 2023 Annual Report
Changan
Automobile
A company
Changan controlled by
Automobile the actual
1,500,000 1.85%-2.25% 1,495,000 1,499,000 1,495,000 1,499,000
Financing Co., controller of
Ltd. Changan
Automobile
Loan
Amount incurred in the current
period
Beginning
Loan amount Total Ending balance
Related party Relationship Interest rate balance (RMB: Total amount
(RMB: 10,000) repayment (RMB: 10,000)
10,000) of loan (RMB:
amount (RMB:
10,000)
10,000)
A company
China South controlled by
Industries the actual
50,000 1%-4.75% 6,900 6,000 5,300 7,600
Group Finance controller of
Co., Ltd. Changan
Automobile
Credit granting or other financial business
Total amount (RMB: Actual amount incurred
Related party Relationship Business
10,000) (RMB: 10,000)
A company controlled by
China South Industries
the actual controller of Credit granting 1,150,000 379,908
Group Finance Co., Ltd.
Changan Automobile
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
√ Applicable □Not applicable
Interim announcement of major related-party transactions on the website
Interim
Interim announcement Wsebsite
announcement date
Announcement of Expected Related-party Transactions in the Ordinary Course of
April 18th, 2023 http://www.cninfo.com.cn
2023
XV. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□ Applicable √ Not applicable
Custody information
There is no custody during the reporting period.
（2）Contracting
□ Applicable √ Not applicable
Contracting information
There is no contracting during the reporting period.
70
Chongqing Changan Automobile Company Limited 2023 Annual Report
（3）Leasing
√ Applicable □Not applicable
Leasing information
Leasing of related parties can be found in Item 5 (2) of Note 12 of Financial Statements “Related Party and Related
Transactions”.
Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.
□ Applicable √ Not applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reporting
period.
2. Guarantee
□ Applicable √ Not applicable
There’s no guarantee during the report period.
3. Entrustment of cash asset management
(1) Entrust wealth management
□ Applicable √ Not applicable
There’s no entrusting wealth management during the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
There is no entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.
XVI. Other important events
√ Applicable □ Not applicable
During the reporting period, the company has completed the acquisition of a portion of equity in Deepal Automobile. The
company's shareholding in Deepal Automobile has increased from 40.66% to 51.00%, and will be included in the company's
consolidated financial statements starting from February 2023. For specific details, please refer to the "Progress Announcement on
Acquiring Partial Equity of Changan New Energy" (Announcement No. 2023-05) disclosed by the company on February 18, 2023 on
the Juchao Information Network (www.cninfo. com. cn).
XVII. Important matters of the Company’s subsidiary
□ Applicable √ Not applicable
71
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 7 Share Changes and Shareholder Information
Ⅰ. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before change Changes（+，-） After change
Additional Stock Provident fund
Quantity Ratio Other Subtotal Quantity Ratio
issued dividend transfer
Shares with sales restrictions 675,775,474 6.81% -570,969,575 -570,969,575 104,805,899 1.06%
1. State-owned legal person
515,311,738 5.19% -515,311,738 -515,311,738 0 0.00%
shares
2. Other domestic shares 159,248,366 1.61% -55,055,477 -55,055,477 104,192,889 1.05%
Including: domestic legal
person shares
domestic natural person
159,248,366 1.61% -55,055,477 -55,055,477 104,192,889 1.05%
shares
3. Foreign shares 1,215,370 0.01% -602,360 -602,360 613,010 0.01%
Including: foreign legal
persons shares
foreign natural person
1,215,370 0.01% -602,360 -602,360 613,010 0.01%
shares
Shares without sales
9,246,023,948 93.19% 566,459,186 566,459,186 9,812,483,134 98.94%
restrictions
1.Ordinary shares
7,604,409,171 76.64% 566,459,186 566,459,186 8,170,868,357 82.39%
denominated in RMB
2. Domestic listed foreign
1,641,614,777 16.55% 1,641,614,777 16.55%
shares
Total shares 9,921,799,422 100.00% -4,510,389 -4,510,389 9,917,289,033 100.00%
Reasons for share change
√ Applicable □ Not applicable
(1) A-share restricted stock incentive plan lifting restricted shares for listing and circulation
On March 6th, 2023, the company lifted its restricted shares and listed them for circulation, with a total of 44,275,061 shares.
For specific details, please refer to the "Notice on the First Release of Restricted Shares from the Restricted Stock Incentive Plan for
A-shares". On January 2nd, 2024, the company lifted the restrictions on the sale of 7,366,678 shares, which were listed for
circulation. The registration of the lifting of restrictions and changes was completed after the market closed on December 29th, 2023.
For specific details, please refer to the "Notice on the lifting of restrictions on the sale of A-share restricted stock incentive plans".
The above-mentioned incentive targets for lifting restrictions include some directors and senior management personnel of the
company, and the stocks obtained will be locked in accordance with relevant laws and regulations.
(2) Partial cancellation of restricted stock repurchases in A-shares
On June 20th and December 5th, 2023, the company completed the repurchase and cancellation of 2,476,422 shares and
2,033,967 shares of restricted stocks that had been granted to some of the original incentive objects but had not yet been released
from restrictions. For specific details, please refer to the Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Stocks. The total share capital of the company was reduced from 9,921,799,422 shares to 9,917,289,033 shares.
(3) Non public offering of restricted shares for listing and circulation
On November 7th, 2023, the company's non-public offering of restricted shares was listed and circulated, with a total of
515,311,738 shares. For specific details, please refer to the "Notice on the Listing and Circulation of Restricted Shares by Non Public
Development Banks".
(4) Other reasons for changes
Other changes in the company's limited sale shares are due to changes in lock up shares of directors, supervisors, and senior
executives, as well as changes in lock up shares of departing executives.
Approval of share change
√ Applicable □ Not applicable
(1) A-share restricted stock incentive plan lifting restricted shares for listing and circulation
Approved by the 52nd meeting of the 8th Board of Directors, the 21st meeting of the 8th Board of Supervisors, the 12th meeting
of the 9th Board of Directors, and the 4th meeting of the 9th Board of Supervisors on February 17 and December 8, 2023,
respectively.
72
Chongqing Changan Automobile Company Limited 2023 Annual Report
(2) Partial cancellation of restricted stock repurchases in A-shares
The first repurchase cancellation issue was reviewed and approved by the 43rd meeting of the 8th Board of Directors and the
18th meeting of the 8th Board of Supervisors of the company on August 2nd, 2022, and by the 3rd extraordinary general meeting of
shareholders of the company on August 18th, 2022. The second repurchase cancellation matter was reviewed and approved by the
third meeting of the ninth board of directors and the second meeting of the ninth supervisory board on August 30th, 2023, and by the
second extraordinary general meeting of shareholders of the company on September 15th, 2023.
(3) Non public offering of restricted shares for listing and circulation
After verification and confirmation by the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation
Shenzhen Branch, the non-public offering of restricted shares was listed and circulated on November 7th, 2023.
Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per
share in the latest year and the latest period, and net assets per share attributable to ordinary shareholders
of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.80 yuan, and at the end, RMB 1.15 yuan; the
diluted earnings per share at the beginning of the reporting period was RMB 0.78 yuan, and at the end was RMB 1.13 yuan; the net
assets per share attributable to ordinary shareholders at the beginning were RMB 6.34 yuan, and at the end, RMB 7.25 yuan.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Number of
Number of Number of
Increase shares with
restricted restricted
during the sales restriction Reasons for Date of removal of sales
Name of shareholders shares at the shares at the
reporting removed during restrictions restriction
beginning of end of the
period the reporting
the period period
period
Southern Industry Asset Non-public issuance
340,186,916 340,186,916 0 November 7th, 2023
Management Co., Ltd. of A shares in 2020
China Changan
Non-public issuance
Automobile Group Co., 170,093,458 170,093,458 0 November 7th, 2023
of A shares in 2020
Ltd.
China South Industries Non-public issuance
5,031,364 5,031,364 0 November 7th, 2023
Group Co., Ltd. of A shares in 2020
On March 6th, 2023, 44,275,061
shares were listed and circulated.
On January 2, 2024, 7,366,678
shares were listed and outstanding.
The restricted shares granted for
the first time and reserved to the
incentive recipients will also be
released in two batches, with each
A-share restricted stock 160,418,388 -4,510,389 51,641,739 104,266,260 Equity incentive batch of restricted shares being
restricted for a period of 36
months and 48 months
respectively from the date of
completion of the corresponding
grant registration, and the
proportion of the restricted shares
granted to the incentive recipients
will be 33% and 34% respectively.
Lock-in shares of
directors, supervisors,
senior executives and Lift the sale restriction according
Other shareholders 45,348 505,241 10,950 539,639
outgoing executives in to the relevant rules
addition to restricted
stocks
Total 675,775,474 -4,005,148 566,964,427 104,805,899 -- --
Note: Among the A-share restricted shares, the "increase in the number of restricted shares in the current period" refers to the
repurchase and cancellation of a total of 4,510,389 shares.
73
Chongqing Changan Automobile Company Limited 2023 Annual Report
II. Issuing and listing of securities
1. Securities issuance (excluding preference shares) during the reporting period
□ Applicable √ Not applicable
2. Changes in the company’s total shares and shareholding structure, and changes in the company's asset
and liability structure
√ Applicable □ Not applicable
Please see Chapter 7, I, 1, “Reasons for share change” for the changes in the total number of ordinary shares and shareholder
structure of the Company during the reporting period.
At the beginning of the reporting period, the total assets were RMB 146,049,068,075.25; the total liabilities were RMB
83,099,751,390.43, and the asset-liability ratio was 56.90%. At the end of the period, the total assets were RMB 190,171,127,138.27,
the total liabilities were RMB 115,487,870,299.24, and the asset-liability ratio was 60.73%.
3. Existing employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding
Unit: share(s)
Number of
Number of
shareholders Number of shareholders
ordinary
holding preference holding preference shares
shareholders at
At the end of the report period, the shares with with restored voting
451,892 the month-end 453,758 0 0
total number of shareholders restored voting rights at the month-end
prior to the
rights at the end of prior to the disclosure
disclosure date
the reporting date of this Report
of this Report
period
Shareholders holding more than 5% of the shares, or top 10 shareholders (Excludes shares lent through refinancing)
Increase/ Condition of
Number of Number of Number of
decrease shares (pledged,
Percentag shares held as of shares held shares held
Name Nature during the labeled or frozen)
e the end of the with sales without sales
Reporting Amoun
reporting period restrictions restrictions Status
Period t
China Changan Automobile Group State-owned legal
17.98% 1,783,090,143 0 1,783,090,143
Co., Ltd. person
China South Industries Group Co., State-owned legal
14.23% 1,410,747,155 0 1,410,747,155
Ltd. person
Southern Industry Asset Management State-owned legal
4.60% 456,253,257 -49,990,000 456,253,257
Co., Ltd. person
Domestic general
China Securities Finance Co., Ltd. 4.30% 426,362,905 0 426,362,905
legal person
United Prosperity Investment Co., Ltd. Foreign legal person 2.83% 280,498,832 0 280,498,832
Not
Hong Kong Securities Clearing Co.,
Foreign legal person 2.37% 235,386,954 92,260,045 235,386,954 pledged,
Ltd.
labeled or
China Merchants Securities (HK) Co.,
Foreign legal person 0.54% 53,627,322 13,721,703 53,627,322 frozen
Ltd.
GUOTAI JUNAN SECURITIES
Foreign legal person 0.46% 46,075,641 3,393,226 46,075,641
（HONG KONG） LIMITED
Shen Yanjun Domestic natural
0.35% 35,003,248 35,003,248 35,003,248
persons
Industrial and Commercial Bank of
Funds, wealth
China Co., Ltd. - Huatai Pinebridge
management 0.35% 34,286,544 17,407,430 34,286,544
CSI 300 ETF Securities Investment
products, etc
Fund
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
Description of the related party relationship or acting in wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
concert among the above shareholders China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
Investment Co., Ltd. are parties acting in concert by “Measures for the Administration of Takeover of
74
Chongqing Changan Automobile Company Limited 2023 Annual Report
Listed Companies”.
Description of the above-mentioned shareholders
entrusting/being entrusted with voting rights and waiver of None
voting rights
Shareholdings of the top 10 ordinary shareholders of unrestricted shares
Number of shares without sales Shares type
Shareholders restrictions at the end of the
Type Number
reporting period
China Changan Automobile Group Co., Ltd. 1,783,090,143 RMB ordinary shares 1,783,090,143
China South Industries Group Co., Ltd. 1,410,747,155 RMB ordinary shares 1,410,747,155
Southern Industry Asset Management Co., Ltd. 456,253,257 RMB ordinary shares 456,253,257
China Securities Finance Co., Ltd. 426,362,905 RMB ordinary shares 426,362,905
United Prosperity Investment Co., Ltd. 280,498,832 Domestic listed foreign shares 280,498,832
Hong Kong Securities Clearing Co., Ltd. 235,386,954 RMB ordinary shares 235,386,954
China Merchants Securities (HK) Co., Ltd. 53,627,322 Domestic listed foreign shares 53,627,322
GUOTAI JUNAN SECURITIES（HONG KONG）
46,075,641 Domestic listed foreign shares 46,075,641
LIMITED
Shen Yanjun 35,003,248 RMB ordinary shares 35,003,248
Industrial and Commercial Bank of China Co., Ltd. - Huatai
34,286,544 RMB ordinary shares 34,286,544
Pinebridge CSI 300 ETF Securities Investment Fund
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
Description of the related relationship or acting in concert
wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
among the top 10 shareholders of unrestricted circulating
China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
shares, and between the top 10 shareholders of unrestricted
Investment Co., Ltd. are parties acting in concert as stipulated in the “Measures for the Administration
tradable shares and the top 10 shareholders
of Takeover of Listed Companies”.
Description of the participation of the top 10 ordinary Shareholder Shen Yanjun holds 35,003,248 shares of the Company through the customer credit
shareholders in margin trading business transaction guarantee securities account of GF Securities Co., Ltd.
The top 10 shareholders participated in the refinancing business and lent shares
√ Applicable □ Not applicable
Unit: share(s)
The top 10 shareholders participated in the refinancing of loaned shares
The shares lent at the At the end of the period,
Initial ordinary account Ordinary account and
beginning of the period the shares were loaned
and credit account credit account holdings at
were refinanced and have and have not been
holdings the end of the period
not been returned returned
Shareholder Name
Proportion Proportion Proportion Proportion
Total of total Total of total Total of total Total of total
quantity share quantity share quantity share quantity share
capital capital capital capital
Industrial and Commercial
Bank of China Co., Ltd. -
Huatai Pinebridge CSI 300 16,879,114 0.17% 3,443,400 0.03% 34,286,544 0.35% 2,795,700 0.03%
ETF Securities Investment
Fund
The top 10 shareholders changed from the previous period
√ Applicable □ Not applicable
Unit: share(s)
Changes in the top 10 shareholders compared to the end of the previous period
The number of shares held in the
The number of shares lent at shareholders' ordinary account, credit
the end of the period and has account and refinancing loans at the
New not yet been returned end of the period and not yet
Shareholder Name entry/ returned
Exit Proportion of
Total Proportion of total
total share Total quantity
quantity share capital
capital
New
Shen Yanjun 35,003,248 0.35%
entry
Industrial and Commercial Bank of China Co., Ltd. - Huatai New
2,795,700 0.03% 37,082,244 0.37%
Pinebridge CSI 300 ETF Securities Investment Fund entry
China Construction Bank Corporation - China Energy
Exit 8,848,656 0.09%
Innovation Equity Securities Investment Fund
Taiping Life Insurance Company Limited Exit 23,834,736 0.24%
Whether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions
agreed on the repurchase transactions during the report period
75
Chongqing Changan Automobile Company Limited 2023 Annual Report
□ Yes √ No
The top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions did not
agree on the repurchase transactions during the reporting period.
2. The company's controlling shareholder
Nature of the controlling shareholder: the central state-owned
Type of the controlling shareholder: legal person
Date of
Name Legal /Representative Organization code Business scope and major products:
establishment
Design, development, manufacturing and sales of car,
motorcycle and engine and parts; sales of optical products,
electronic and optoelectronic products, night vision
China Changan device, information and communication equipment;
December
Automobile Group Co., Zhao Fei 911100007109339484 technical development, transfer, consultation, technical
26th, 2005
Ltd. training, and other technical service related to the
operation mentioned above; imports and exports; merge
and acquisition and asset restructuring consultation;
telecommunications services and agency bookkeeping.
Equity of other domestic
and overseas listed As of the end of the reporting period, controlling shares of listed companies: Harbin Dongan Auto Engine Co., Ltd.
companies where he has (stock code 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698), Chongqing Changan Minsheng APLL
controlled and participated Logistics Co., Ltd (stock code 01292.HK)
during the reporting period
The change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
No changes in controlling shareholder during the reporting period.
3. The actual controller and its parties acting in concert
Nature of the actual controller: the central state-owned asset management institution
Type of the actual controller: legal person
Date of
Name Legal Representative Organization code Businesses
establishment
Investment and management of state-owned assets,
operation and management, R&D, manufacturing,
guarantee and services of vehicles, electrical equipment,
optoelectronic information products and equipment,
China South Industries
Xu Xianping Jun 29th,1999 91110000710926043F mechanical equipment, engineering and construction
Group Corp.
machinery, chemical materials (except hazardous
chemicals), fire-fighting equipment, medical and
environmental protection equipment, metal and non-metal
materials and products.
As of the end of the reporting period, directly or indirectly controlling the listed company: Harbin Dongan Automotive
Other domestic and Power Co., Ltd. (stock code 600178); Baoding Tianwei Baobian Electric Co., Ltd. (stock code 600550); Jiangling
overseas listed companies Automobile Co., Ltd. (stock code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); Chongqing
controlled by the actual Construction Automotive Systems Co., Ltd. (stock code 200054); China Optics Group Co., Ltd. (stock code 002189);
controller during the report Construction Industry Group (Yunnan) Co., Ltd. (stock code 002265); Chongqing Chang'an Minsheng Logistics Co.,
period Ltd. (stock code 01292); Hubei Huaqiang Technology Co., Ltd. (stock code 688151); Anhui Great Wall Military
Industry Co., Ltd. (stock code 601606).
The change of the actual controller during the reporting period
□ Applicable √ Not applicable
No changes in the actual controller during the reporting period.
The equity and control relationship between the company and the actual controller:
76
Chongqing Changan Automobile Company Limited 2023 Annual Report
Actual controlling through trust or other asset management.
□ Applicable √ Not applicable
4. Pledged shares held by controlling shareholder or the largest shareholder and its parties acting in
concert account for 80% of the shares.
□ Applicable √ Not applicable
5. Other corporate shareholders holding over 10% shares.
□ Applicable √ Not applicable
6. Shareholding restriction and reduction of controlling shareholder, actual controller, restructuring party
and other commitment entities
□ Applicable √ Not applicable
IV. Share repurchase during the reporting period
Share repurchase
□ Applicable √ Not applicable
Reducing repurchased shares by centralized bidding
□ Applicable √ Not applicable
77
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 8 Preference Shares
□ Applicable √ Not applicable
There was no preferred share in the Company in the reporting period.
78
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 9 Bonds
√Applicable □ Not applicable
I. Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting Period
II. Corporate Bonds
√Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: 10000 RMB
Abbrevi Bond Date of Value Maturi Bonds Interes Trading
Bond Name Way of redemption
ation Code issue date ty balance t rate place
Single interest is
Chongqing Changan calculated on an annual
Automobile Co., Ltd. basis, excluding
publicly issued science Dece Dece Dece compound interest. The
22 Shenzhen
and technology 148147. mber mber mber interest is paid once a
Changan 100,000 3.00% Stock
innovation corporate SZ 19th, 20th, 20th, year, and the principal is
K1 Exchange
bonds to professional 2022 2022 2027 repaid once due. The
investors in 2022 last interest is paid with
( Phase I ) the payment of the
principal.
This bond is issued to professional institutional investors who open A-share securities
Appropriate arrangement of the investors (if
accounts in Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.
any)
(excluding purchasers prohibited by laws and regulations).
Applicable trading mechanism Centralized bidding trade and block trading
Risk of termination of listing transactions (if
None
any) and countermeasures
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection
Clause
□Applicable √ Not applicable
3. Intermediary
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
Chongqing Lead underwriter 22nd Floor, CITIC Securities
Hu Yan,
Changan and bond trustee: Building, No. 48 Jiang Haotian,
Qiao Chun, 010-60837490
Automobile CITIC Securities Liangmaqiao Road, Jiang jiarong
Yuan Yong
Co., Ltd. Co., Ltd. Chaoyang District, Beijing
79
Chongqing Changan Automobile Company Limited 2023 Annual Report
publicly issued Joint lead 27th and 28th Floors, Block
science and underwriter: China 2, Guomao Building, No. 1 Qi Qin, Yan
010-65051166
technology International Capital Jianguomenwai Street, Runan, Li Cong
innovation Corporation Limited Chaoyang District, Beijing
corporate Floor 8-10, Building A,
Law Firm: Beijing
bonds to Rongchao Business Center,
ZhongLun Law Xu Zhigang 0755-33256902
professional 6003 Yitian Road, Futian
Firm
investors in District, Shenzhen
2022 (Phase Accounting firm: 17th Floor, Ernst & Young
I) Ernst & Young Hua Tower, Oriental Plaza, No. 1
Qiao Chun, Yuan
Ming LLP (Special East Chang An Avenue, Dong 023-62736177
Yong
General Cheng District, Beijing,
Partnership) China
17th Floor, PICC
Rating agency: Property&Casualty Insurance
Sun Changzheng,
United Credit Building, No. 2 010-85679696
Li Jingyun
Rating Co., Ltd. Jianguomenwai Street,
Chaoyang District, Beijing
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
4. List of the Usage of the Raised Funds
Unit: 10000 RMB
Whether is consistent
Rectification of
Operation of with the usage, using
Unused raised funds for
Bond Total amount Amount spent special account plan and other
amount violation
for raised funds agreements stipulated in
operation
the raising specification
Chongqing Changan
Automobile Co., Ltd. Relevant special
publicly issued accounts for
No illegal use
science and raised funds are
100,000 100,000 0 of raised Yes
technology innovation used normally
funds
corporate bonds to according to
professional investors regulations
in 2022 ( Phase I )
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as
well as Influence on Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
80
Chongqing Changan Automobile Company Limited 2023 Annual Report
IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V. Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI. Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII. Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: 10,000 RMB
Items 31 December 2023 31 December 2022 Increase/decrease
Current ratio 1.27 1.35 -5.93%
Debt/asset ratio 60.73% 56.90% 3.83%
Quick ratio 1.14 1.28 -10.94%
31 December 2023 31 December 2022 Increase/decrease
Net profit after deducting
378,184.67 325,479.01 16.19%
non-recurring profit or loss
Debt/EBITDA ratio 13.76% 14.01% -0.25%
Interest cover (times) 147.61 137.44 7.40%
Cash-to-interest cover (times) 302.50 116.39 159.90%
EBITDA-to-interest cover
241.90 239.17 1.14%
(times)
Loan repayment rate 100% 100% 0
Interest coverage 100% 100% 0
81
Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 10 Auditor’s Report
Xin Kuai Shi Bao Zi【2024】 No. ZG11157
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited
82
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report
Xin Kuai Shi Bao Zi【2024】 No. ZG11157
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited:
Opinion
We have audited the accompanying financial statements of Chongqing Changan
Automobile Company Limited, which comprise the consolidated and the company balance
sheet as at 31 December 2023, and the consolidated and the company income statements,
the statements of changes in equity and the cash flow statements for the year then ended
and notes to the financial statements.
In our opinion, the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly, in all material respects, the consolidated and the
Company’s financial position as at 31 December 2023, and the consolidated and the
Company’s financial performance and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises (“ASBEs”).
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 are independent of the
Company in accordance with China Code of Ethics for Certified Public Accountants (the
“Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in
that context.
83
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial statements.
Key audit matter How our audit addressed the key
audit matter
Non-controlling interest business combination
n the current fiscal year, Chongqing Changan With regard to the warranty
Automobile Co., Ltd. (hereinafter referred to as provisions audited by us:
'Changan Automobile') concluded the acquisition of
a 10.34% equity interest in Shenlan Automobile Acquire and scrutinize pertinent
Technology Co., Ltd. (hereinafter referred to as transaction documents, including
'Shenlan Automobile'), boosting its ownership to equity transfer agreements and
51%. Changan Automobile has treated this board resolutions, and engage in
acquisition as a non-controlling business discussions with management
combination for accounting purposes.The regarding the determination of the
management commissioned independent external acquisition date.
appraisers to evaluate the fair value of identifiable
net assets. On the acquisition date, Changan Secure and evaluate the equity
Automobile revalued the original equity held at fair acquisition appraisal report,
value, resulting in the recognition of investment assessing the qualifications,
income totaling RMB 5,021,482,128.74. professional competency, and
Additionally, goodwill amounting to RMB independence of third-party
1,800,926,049.16 was recognized due to the appraisal institutions involved.
merger cost surpassing the fair value of identifiable
net assets acquired. Given the substantial impact of Engage internal evaluation experts
Shenlan Automobile's identifiable net assets' fair to assess the methodologies and
value on Changan Automobile's consolidated critical assumptions utilized in
financial statements and the significant determining fair value.
management judgment involved, we have
identified this as a key audit matter. Examine management's
accounting treatment of the
business combination to verify
adherence to accounting
standards, along with assessing the
sufficiency of related disclosures in
the notes to the consolidated
financial statements.
84
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Key audit matters (continued)
Key audit matter How our audit addressed the key audit
matter
Operating Revenue confirmation
Chongqing Changan Automobile Co., Ltd. With regard to the capitalization of
(hereinafter referred to as 'Changan internal development costs audited by us:
Automobile') derives its primary revenue from
automobiles, automobile components, related Assess and test the efficacy of internal
products, and other outputs. In 2023, Changan controls pertaining to the design and
Automobile recorded operating revenue of RMB execution of operating revenue.
1512.98 billion, representing a year-on-year
growth rate of 24.78%. Given that revenue Secure key sales contracts, scrutinize
serves as a pivotal performance indicator for contract terms concerning control
Changan Automobile, there exists inherent risk transfer and revenue recognition, and
associated with potential management verify adherence to the company's
manipulation of revenue recognition timing to accounting policies.
meet specific goals or expectations.
Consequently, we identify revenue recognition Perform analytical review procedures,
as a critical audit focus area. analyzing changes in various revenue
categories and gross margins to
ascertain the reasonableness of
fluctuations.
Conduct thorough examinations
of revenue recognition,
scrutinizing supporting
documentation such as delivery
orders, logistics documents, and
sales invoices.
Select samples for transactions
occurring post-balance sheet
date, review supporting
documentation like delivery
orders and logistics documents,
and assess the appropriateness
of revenue recording within the
relevant accounting period.
Investigate for significant
revenue reversals or substantial
returns post-reporting period.
85
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Other information
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises
the information included in the annual report, 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.
Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs, and for designing, implementing and maintaining
such internal control as the 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 the financial statements, the Management is responsible for assessing the
Company’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 the management
either intends to liquidate the Company or to cease operations or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
86
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the 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 generally 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.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
(1) 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.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the 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 the Company’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 the
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 the Company to cease to
continue as a going concern.
(5) 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.
87
Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company 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 those charged with governance 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 those charged with governance 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.
From the matters communicated with those charged with governance, 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.
ZhuYu Qin
BDO China Shu Lun Pan Certified Public
Accountants LLP Chinese Certified Public Accountant
(Engagement partner)
Wang Kai
Chinese Certified Public Accountant
Shanghai the PRC 16 April 2024
88
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2023
(Expressed in RenminbiYuan)
Assets Notes V 2023/12/31 2022/12/31
Current assets
Cash 1 64,871,042,747.88 53,530,183,827.34
Financial assets held for trading 2 167,519,347.29 280,315,571.09
Notes receivable 3 37,658,391,214.01 35,849,660,652.96
Accounts receivable 4 2,411,796,419.07 3,068,414,415.29
Prepayments 5 287,711,010.62 749,572,262.00
Other receivables 6 894,268,431.82 1,261,157,951.14
Inventories 7 13,465,847,696.93 5,823,307,512.90
Contract assets 8 1,442,876,966.30 458,389,187.10
Other current assets 9 9,735,453,361.32 1,054,779,668.19
Total current assets 130,934,907,195.24 102,075,781,048.01
Non-current assets
Long-term
equity investments 10 13,787,391,985.47 14,406,662,456.28
Other equity instrument
investment 11 504,190,082.71 489,950,000.00
Investment property 12 6,196,003.48 6,422,715.04
Fixed assets 13 19,994,084,908.14 19,346,764,691.44
Construction in progress 14 1,914,345,359.83 1,387,898,218.64
Right-of-use assets 15 209,480,676.04 100,813,386.01
Intangible assets 16 15,045,563,649.79 4,446,385,255.68
Development expenditure VI 2,241,820,556.70 723,211,177.47
Goodwill 17 1,810,730,443.16 9,804,394.00
Long-term deferred expenses 18 24,162,220.06 26,375,422.17
Deferred tax assets 19 3,248,254,057.65 3,028,999,310.51
Other non-current assets 20 450,000,000.00
Total non-current assets 59,236,219,943.03 43,973,287,027.24
TOTAL ASSETS 190,171,127,138.27 146,049,068,075.25
The notes form an integral part of the financial statements.
89
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023/12/31 2022/12/31
Current liabilities
Short-term loans 22 30,039,416.74 29,000,000.00
Notes payable 23 37,456,669,928.07 22,072,793,864.83
Account payable 24 38,289,947,321.45 29,449,664,138.75
Receipts in advance 25 686,755.00
Contract liabilities 26 7,923,792,852.77 5,655,256,792.66
Payroll payable 27 2,750,661,337.26 2,807,158,489.85
Tax payable 28 1,928,723,907.38 1,749,946,082.32
Other payables 29 5,880,882,512.97 6,082,766,424.67
Non-current liabilities due within
one year 30 80,077,042.88 885,723,901.34
Other current liabilities 31 8,897,936,399.92 6,627,044,667.62
Total current liabilities 103,239,417,474.44 75,359,354,362.04
Non-current liabilities
Long-term loans 32 72,000,000.00 36,000,000.00
Bonds payable 33 999,607,547.16 999,528,301.88
Lease Liabilities 34 134,254,398.07 60,205,397.98
Long-term account payable 35 952,446,118.57 553,518,750.12
Long term payroll payable 36 30,414,000.00 35,013,000.00
Accrued liabilities 37 6,277,041,416.79 4,589,299,321.49
Deferred income 38 718,840,543.52 347,568,549.62
Deferred tax liabilities 19 1,566,074,982.00 237,036,741.16
Other non-current liabilities 39 1,497,773,818.69 882,226,966.14
Total non-current liabilities 12,248,452,824.80 7,740,397,028.39
Total liabilities 115,487,870,299.24 83,099,751,390.43
The notes form an integral part of the financial statements.
90
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023/12/31 2022/12/31
Owners’ equity
Share capital 40 9,917,289,033.00 9,921,799,422.00
Capital reserves 41 8,251,287,637.70 8,532,806,685.77
Less: treasury shares 42 382,277,095.96 627,060,416.52
Other
comprehensive Income 43 118,318,784.04 98,841,615.42
Special reserves 44 54,323,330.34 24,090,898.05
Surplus reserves 45 4,276,245,864.64 3,528,165,002.27
Retained earnings 46 49,617,932,431.73 41,379,965,149.07
Equity attributable to owners 71,853,119,985.49 62,858,608,356.06
Minority interests 2,830,136,853.54 90,708,328.76
Total equity 74,683,256,839.03 62,949,316,684.82
TOTAL LIABILITIES
AND OWNERS’ EQUITY 190,171,127,138.27 146,049,068,075.25
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
The notes form an integral part of the financial statements.
91
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
Operating revenue 47 151,297,706,646.97 121,252,864,085.40
Less: Operating cost 47 123,522,656,353.72 96,409,610,873.76
Tax and surcharges 48 4,758,426,281.70 4,101,847,822.50
Operating expenses 49 7,645,205,592.88 5,138,270,162.95
General and administrative
expenses 50 4,097,537,529.67 3,532,458,198.76
Research and development
expenses 51 5,979,844,653.23 4,315,444,864.76
Financial income 52 -897,343,739.80 -1,017,305,743.08
Interest expense 52 65,658,308.92 48,683,490.36
Interest income 52 1,172,272,116.20 1,014,346,758.69
Add: Other incomes 53 1,644,319,505.04 529,819,888.31
Investment income/(loss) 54 3,050,413,045.10 -768,957,070.79
Including: Investment
income/(loss)
from associates and joint
venture 54 -2,201,515,632.81 -3,060,648,491.82
Earnings from fair value
changes 55 -19,061,189.53 3,570,229.29
Impairment loss of credit 56 -46,742,115.91 -32,242,010.27
Impairment loss on assets 57 -813,828,346.53 -945,853,716.20
Gain on disposal of assets 58 440,995,737.23 74,862,481.00
Operating profit 10,447,476,610.97 7,633,737,707.09
Add: Non-operating income 59 169,793,538.35 128,910,416.79
Less: Non-operating expenses 60 28,073,391.83 54,391,039.79
Total profit 10,589,196,757.49 7,708,257,084.09
Less: Income tax expense 61 1,087,297,716.52 -36,769,018.51
Net profit 9,501,899,040.97 7,745,026,102.60
Classification by going concern
Net profit from
continuing operations 9,501,899,040.97 7,745,026,102.60
Classification by ownership
attribution
Net profit attributable
to owners 11,327,463,013.15 7,798,785,367.38
Minority interests -1,825,563,972.18 -53,759,264.78
The notes form an integral part of the financial statements.
92
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax 19,477,168.62 34,464,805.89
Other comprehensive income not to be
reclassified to profit or loss in
subsequent periods
Change in net liability or assets from
defined benefit plan 540,000.00 112,000.00
Other comprehensive income under
the equity method cannot be converted
into profit or loss -1,454,051.91 602,832.07
Changes in fair value of other equity
investment 12,104,070.30 -4,675,000.00
11,190,018.39 -3,960,167.93
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods:
Other comprehensive income under
the equity method to be converted into
profit or loss -75,815.98
Foreign currency reserve 8,287,150.23 38,500,789.80
8,287,150.23 38,424,973.82
Total comprehensive income
attributable to minority interests, net of
tax (1,916.69
Total comprehensive income 9,521,376,209.59 7,779,488,991.80
Including:
Total comprehensive income
11,346,940,181.77 7,833,250,173.27
attributable to owners
Total comprehensive income
attributable to minority interest -1,825,563,972.18 -53,761,181.47
Earnings per share
Basic earnings per share 62 1.15 0.80
Diluted earnings per share 62 1.13 0.78
The notes form an integral part of the financial statements.
93
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2022 9,921,799,422.00 8,532,806,685.77 627,060,416.52 98,841,615.42 24,090,898.05 3,528,165,002.27 41,379,965,149.07 62,858,608,356.06 90,708,328.76 62,949,316,684.82
Changes during the year:
Total comprehensive income 19,477,168.62 11,327,463,013.15 11,346,940,181.77 -1,825,563,972.18 9,521,376,209.59
Capital contributed by owners and
capital decreases -4,510,389.00 -281,519,048.07 -218,038,971.73 -67,990,465.34 4,557,548,599.34 4,489,558,134.00
1. Ordinary shares
contribution from owners -4,510,389.00 -4,510,389.00 35,190,000.00 30,679,611.00
2.Amount of share-based
payments included in
shareholders' equity 348,509,207.00 348,509,207.00 348,509,207.00
3.Others -630,028,255.07 -218,038,971.73 -411,989,283.34 4,522,358,599.34 4,110,369,316.00
Distribution of profit -26,744,348.83 748,080,862.37 -3,089,495,730.49 -2,341,414,868.12 -150,000.00 -2,314,820,519.29
1.Surplus reserve 748,080,862.37 -748,080,862.37
2.Distribution to owners -26,744,348.83 -2,341,414,868.12 -2,341,414,868.12 -150,000.00 -2,314,820,519.29
Internal transfer of shareholder
equity
1.Capital reserve converted
into share capital
2.Other comprehensive income
converted to retained earnings
Special reserves 30,232,432.29 30,232,432.29 7,593,897.62 37,826,329.91
1.Provided 126,209,917.06 126,209,917.06 9,354,725.09 135,564,642.15
2.Ultilized -95,977,484.77 -95,977,484.77 -1,760,827.47 -97,738,312.24)
Disposal of subsidiaries -
At 31 December 2023 9,917,289,033.00 8,251,287,637.70 382,277,095.96 118,318,784.04 54,323,330.34 4,276,245,864.64 49,617,932,431.73 71,853,119,985.49 2,830,136,853.54 74,683,256,839.03
The notes form an integral part of the financial statements.
94
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2021 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 55,732,932,103.72 133,307,840.48 55,866,239,944.20
Add: Changes in accounting
policies 15,440.88 152,935.82 168,376.70 168,376.70
Opening balance for the year 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,307,854.55 35,900,827,460.95 55,733,100,480.42 133,307,840.48 55,866,408,320.90
Total comprehensive income 34,464,805.89 7,798,785,367.38 7,833,250,173.27 -53,761,181.47 7,779,488,991.80
Capital contributed by owners and
capital decreases 1,046,259,345.39 1,046,259,345.39 1,046,259,345.39
1.Amount of share-based
payments included in
shareholders' equity 380,209,900.00 380,209,900.00 380,209,900.00
2.Others 666,049,445.39 666,049,445.39 666,049,445.39
Distribution of profit -28,751,911.08 545,857,147.72 -2,324,713,339.26 -1,750,104,280.46 -1,750,104,280.46
1.Surplus reserve 545,857,147.72 -545,857,147.72
2.Distribution to owners -28,751,911.08 -1,778,856,191.54 -1,750,104,280.46 -1,750,104,280.46
3.Others
Internal transfer of shareholder
equity 2,289,646,020.00 -2,289,646,020.00 -5,065,660.00 5,065,660.00
1.Capital reserve converted
into share capital
2。Others -5,065,660.00 5,065,660.00
Special reserves -3,897,362.56 -3,897,362.56 286,981.06 -3,610,381.50
1.Provided 104,696,987.95 104,696,987.95 3,726,050.64 108,423,038.59
2.Ultilized -108,594,350.51 -108,594,350.51 -3,439,069.58 -112,033,420.09
Other 10,874,688.69 10,874,688.69
At 31 December 2022 9,921,799,422.00 8,532,806,685.77 627,060,416.52 98,841,615.42 24,090,898.05 3,528,165,002.27 41,379,965,149.07 62,858,608,356.06 90,708,328.76 62,949,316,684.82
The notes form an integral part of the financial statements.
95
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 168,499,172,064.84 122,619,321,871.95
Refunds of taxes 2,225,768,807.06 2,134,224,529.98
Cash received relating to other
operating activities 63 3,358,313,435.61 2,441,682,594.87
Subtotal of cash inflows 174,083,254,307.51 127,195,228,996.80
Cash paid for goods and services 120,590,933,831.95 97,369,979,246.46
Cash paid to and on behalf of
employees 11,126,200,718.40 9,188,241,321.99
Cash paid for all types of taxes 11,570,501,390.34 8,604,964,741.08
Cash paid relating to other
operating activities 63 10,934,152,129.26 6,365,696,828.75
Subtotal of cash outflows 154,221,788,069.95 121,528,882,138.28
Net cash flows from operating
activities 63 19,861,466,237.56 5,666,346,858.52
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 131,461,810.72 131,455,724.43
Cash received from return
on investment 344,832,879.75 1,750,853,747.11
Net cash received from disposal of
fixed assets, intangible assets
and other long-term assets 296,034,699.57 609,907,900.54
Cash received relating to other
investing activities 63 6,216,944,276.29 -
Subtotal of cash inflows 6,989,273,666.33 2,492,217,372.08
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 2,824,057,426.66 1,405,004,336.97
Cash paid for investment 2,373,361,769.00 3,226,058,570.32
Other cash disbursed
in connection with
investment activities 63 8,000,000,000.00 815,126,333.76
Subtotal of cash outflows 13,197,419,195.66 5,446,189,241.05
Net cash flows from investing
activities -6,208,145,529.33 -2,953,971,868.97)
The notes form an integral part of the financial statements.
96
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments 35,190,000.00-
Including: cash received by the
subsidiary from absorbing
minority shareholders' investment
Cash received from borrowings 120,000,000.00 1,086,598,301.88
Cash received relating to
other financing activities 63 863,425,006.28 1,705,726,148.77
Sub-total of cash inflows 1,018,615,006.28 2,792,324,450.65
Cash repayments of borrowings 683,000,000.00 391,370,000.00
Cash paid for distribution of
dividends or profits and
interest expenses 2,380,851,402.08 1,803,960,937.04
Cash paid relating to
other financing activities 63 83,072,569.73 372,563,245.60
Sub-total of cash outflows 3,146,923,971.81 2,567,894,182.64
Net cash flows from financing activities
-2,128,308,965.53 224,430,268.01
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH -90,488,889.33 36,712,955.19)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 11,434,522,853.37 2,973,518,212.75
Add: Opening balance of
cash and cash equivalents 52,491,435,047.74 49,517,916,834.99
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 63 63,925,957,901.11 52,491,435,047.74
The notes form an integral part of the financial statements.
97
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2023
(Expressed in RenminbiYuan)
Notes
2023/12/31 2022/12/31
XVII
Current assets
Cash 44,029,520,088.62 44,742,705,933.76
Financial assets held
for trading 160,744,733.27 251,165,128.80
Notes receivable 33,788,748,503.90 32,497,209,409.96
Accounts receivable 1 8,579,504,025.23 5,538,504,821.82
Prepayments 112,547,088.73 519,014,279.72
Other receivables 2 237,247,787.26 859,026,748.64
Inventories 5,615,873,258.35 2,872,390,838.54
Contract assets 128,498,871.61 221,555,444.48
Other current assets 5,522,797,370.57 199,954,784.05
Total current assets 98,175,481,727.54 87,701,527,389.77
Non-current assets
Long-term equity investments 3 19,435,450,021.37 17,385,137,116.25
Other equity instrument
investment 504,190,082.71 489,950,000.00
Fixed assets 13,453,515,476.81 14,214,227,798.06
Construction in progress 1,407,521,918.44 895,860,965.16
Right-of-use assets 168,093,468.85 78,806,182.57
Intangible assets 3,312,017,680.07 3,299,143,861.49
Development expenditure 2,017,011,508.06 616,814,902.46
Long-term deferred expenses 21,709,036.17 24,406,892.18
Deferred tax assets 2,774,652,958.37 2,631,463,197.21
Other non-current assets 450,000,000.00
Total non-current assets 43,544,162,150.85 39,635,810,915.38
TOTAL ASSETS 141,719,643,878.39 127,337,338,305.15
The notes form an integral part of the financial statements.
98
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes
2023/12/31 2022/12/31
XVII
Current liabilities
Notes payable 25,950,782,831.24 18,728,133,049.99
Accounts payable 23,842,258,668.42 21,488,548,997.96
Contract liabilities 4,606,921,633.17 3,997,514,972.13
Payroll payable 1,919,102,689.66 2,436,938,973.59
Taxes payable 1,300,178,990.13 1,376,448,691.45
Other payables 3,236,371,408.79 5,425,776,798.83
Non-current liabilities due
within one year 56,170,742.39 635,180,849.52
Other current liabilities 6,286,218,965.50 5,932,680,982.04
Total current liabilities 67,198,005,929.30 60,021,223,315.51
Non-current liabilities
Long term loans 72,000,000.00 36,000,000.00
Bonds Payable 999,607,547.16 999,528,301.88
Lease Liabilities 117,490,288.82 45,437,270.79
Long term payable 120,081,551.85 144,571,302.45
Long term payroll payable 17,659,000.00 20,565,000.00
Contingent liabilities 4,402,025,046.54 3,936,444,965.49
Deferred income 603,864,707.08 150,000,000.00
Deferred tax liabilities 197,625,245.62 195,053,909.31
Other non-current liabilities 1,287,646,146.69 844,435,549.31
Total non-current liabilities 7,817,999,533.76 6,372,036,299.23
Total liabilities 75,016,005,463.06 66,393,259,614.74
Owner’s equity
Share capital 9,917,289,033.00 9,921,799,422.00
Capital reserves 8,406,226,198.82 8,047,195,325.61
Less: treasury shares 382,277,095.96 627,060,416.52
Other comprehensive income 169,049,829.02 157,416,810.63
Special reserves 19,514,786.95 10,285,640.79
Surplus reserves 4,276,245,864.64 3,528,165,002.27
Retained earnings 44,297,589,798.86 39,906,276,905.63
Total owner’s equity 66,703,638,415.33 60,944,078,690.41
TOTAL LIABILITIES
AND OWNERS’ EQUITY 141,719,643,878.39 127,337,338,305.15
The notes form an integral part of the financial statements.
99
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes
XVII 2023/12/31 2022/12/31
Operating revenue 4 118,698,033,782.77 106,665,145,289.28
Less: Operating cost 4 98,509,854,086.30 86,241,479,807.95
Tax and surcharges 2,918,130,753.90 2,941,819,015.41
Operating expenses 3,539,037,793.87 3,664,889,410.65
General and administrative
expenses 2,766,449,647.21 2,913,302,431.16
Research and development
expenses 3,822,529,677.53 4,234,015,352.11
Financial income -809,080,245.53 -825,576,954.93
Interest expense 40,655,362.11 26,032,591.55
Interest income 865,820,973.86 868,071,769.55
Add: Other incomes 1,564,577,278.73 283,581,332.54
Investment income 5 -1,224,231,437.03 -1,923,078,565.61
Including: Investment
Income/(loss) from
associates and
joint venture -2,157,754,465.24 -3,075,237,898.94
Income/(loss) from fair value
changes 41,019,998.59 -25,580,213.00
Credit impairment loss 10,927,568.37 -15,475,196.02
Impairment loss -477,092,984.70 -659,679,327.77
Gain/(loss) on disposal of
assets 397,686,430.93 33,996,713.38
Operating profit 8,263,998,924.38 5,188,980,970.45
Add: Non-operating income 111,413,858.23 50,112,744.21
Less: Non-operating expenses 22,524,889.94 25,461,278.69
Total profit 8,352,887,892.67 5,213,632,435.97
Less: Income tax expense 872,079,268.95 -244,939,041.24
Net profit 7,480,808,623.72 5,458,571,477.21
Classification by going concern
Net profit from
continuing operations 7,480,808,623.72 5,458,571,477.21
The notes form an integral part of the financial statements.
100
Chongqing Changan Automobile Company Limited
INCOME STATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes
XVII 2023/12/31 2022/12/31
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods
Change in net liability or
assets from defined
benefit plan 983,000.00 141,000.00
Other comprehensive income
under the equity method
cannot be converted into
profit or loss -1,454,051.91 602,832.07
Changes in fair value of
other equity investment 12,104,070.30 -4,675,000.00
11,633,018.39 -3,931,167.93
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods
Reclassification of financial
assets recognized in other
comprehensive income
Amounts under equity
method 70,412.45
Total comprehensive income 7,492,441,642.11 5,454,710,721.73
The notes form an integral part of the financial statements.
101
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2022 9,921,799,422.00 8,047,195,325.61 627,060,416.52 157,416,810.63 10,285,640.79 3,528,165,002.27 39,906,276,905.63 60,944,078,690.41
Add: Changes in accounting
policies
Changes during the year:
Total comprehensive income 11,633,018.39 7,480,808,623.72 7,492,441,642.11
Capital contributed by owners and capital
decreases -4,510,389.00 354,030,873.21 -218,038,971.73 567,559,455.94
1. Ordinary shares contribution from
owners -4,510,389.00 -4,510,389.00
2.Amount of share-based payments
included in shareholders' equity 348,509,207.00 348,509,207.00
3.Others 5,521,666.21 -218,038,971.73 223,560,637.94
Distribution of profit -26,744,348.83 748,080,862.37 -3,089,495,730.49 -2,314,670,519.29
1.Surplus reserve 748,080,862.37 -748,080,862.37
2.Distribution to owners -26,744,348.83 -2,341,414,868.12 -2,314,670,519.29
Internal transfer of shareholder equity
1.Capital reserve converted into share
capital
2.Other comprehensive earnings converted
to retained earnings
Special reserves 9,229,146.16 9,229,146.16
1.Provided 65,743,690.42 65,743,690.42
2.Ultilized -56,514,544.26 -56,514,544.26
Disposition of subsidiaries 5,000,000.00 5,000,000.00
At 31 December 2023 9,917,289,033.00 8,406,226,198.82 382,277,095.96 169,049,829.02 19,514,786.95 4,276,245,864.64 44,297,589,798.86 66,703,638,415.33
The notes form an integral part of the financial statements.
102
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2021 7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
Add: Changes in accounting
policies 15,440.88 138,967.94 154,408.82
Changes during the year:
Total comprehensive income -3,860,755.48 5,458,571,477.21 5,454,710,721.73
Capital contributed by owners and capital
decreases 1,043,776,010.70 1,043,776,010.70
1.Amount of share-based payments
included in shareholders' equity 380,209,900.00 380,209,900.00
2.Others 663,566,110.70 663,566,110.70
Distribution of profit -28,751,911.08 545,845,221.86 -2,324,713,339.26 -1,750,104,280.46
1.Surplus reserve 545,845,221.86 -545,845,221.86
2.Distribution to owners -28,751,911.08 -1,778,856,191.54 -1,750,104,280.46
Internal transfer of shareholder equity 2,289,646,020.00 -2,289,646,020.00 -4,773,770.00 4,773,770.00
1.Capital reserve converted into share
capital 2,289,646,020.00 -2,289,646,020.00
2. Other comprehensive income transferred
to retained earnings -4,773,770.00 4,773,770.00
Special reserves 2,732,656.34 2,732,656.34
1.Provided 61,019,966.31 61,019,966.31
2.Ultilized -58,287,309.97 -58,287,309.97
Disposition of subsidiaries -120,235,907.73 -120,235,907.73
At 31 December 2022 9,921,799,422.00 8,047,195,325.61 627,060,416.52 157,416,810.63 10,285,640.79 3,528,165,002.27 39,906,276,905.63 60,944,078,690.41
The notes form an integral part of the financial statements.
103
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023 2022
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 121,118,712,751.06 101,043,628,683.39
Refunds of taxes 30,303,650.49 215,500,668.27
Cash received relating to other
operating activities 3,109,565,404.95 2,041,143,114.40
Subtotal of cash inflows 124,258,581,806.50 103,300,272,466.06
Cash paid for goods and services 90,035,055,033.05 80,159,943,881.88
Cash paid to and on behalf of
employees 6,959,713,091.69 6,388,175,996.37
Cash paid for all types of taxes 5,715,167,820.29 5,761,670,921.49
Cash paid relating to other
operating activities 8,188,283,938.48 4,922,708,175.82
Subtotal of cash outflows 110,898,219,883.51 97,232,498,975.56
Net cash flows from operating
activities 13,360,361,922.99 6,067,773,490.50
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 131,461,810.72 121,799,633.86
Cash received from return
on investment 324,982,879.75 1,809,926,134.11
Net cash received from disposal of
fixed assets, intangible assets
and other long-term assets 10,480,609.45 554,362,304.63
Cash received relating to other
investing activities -
Subtotal of cash inflows 466,925,299.92 2,486,088,072.60
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 2,008,243,647.99 1,064,936,821.33
Cash paid for investment 4,026,183,368.63 3,506,058,570.32
Cash paid relating to other
investing activities 5,500,000,000.00
Subtotal of cash outflows 11,534,427,016.62 4,570,995,391.65
Net cash flows from investing
activities -11,067,501,716.70 -2,084,907,319.05
The notes form an integral part of the financial statements.
104
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023 2022
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments -
Cash received from borrowings 40,000,000.00 1,039,528,301.88
Sub-total of cash inflows 40,000,000.00 1,039,528,301.88
Cash repayments of borrowings 604,000,000.00 354,300,000.00
Cash paid for distribution of
dividends or profits and
interest expenses 2,375,052,447.79 1,802,234,067.67
Cash paid relating to
other financing activities 62,453,603.64 23,280,631.67
Sub-total of cash outflows 3,041,506,051.43 2,179,814,699.34
Net cash flows from financing activities -3,001,506,051.43 -1,140,286,397.46
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH -
NET INCREASE IN CASH
AND CASH EQUIVALENTS -708,645,845.14 2,842,579,773.99
Add: Opening balance of
cash and cash equivalents 44,732,418,327.28 41,889,838,553.29
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 44,023,772,482.14 44,732,418,327.28
The notes form an integral part of the financial statements.
105
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
I CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is
a company limited by shares registered in Chongqing, People’s Republic of China. It was
established on 31 October 1996 with an indefinite business period. The ordinary A shares of
Renminbi issued by the company and the B shares of domestically listed foreign shares have
been listed on the Shenzhen Stock Exchange. The company is headquartered at 260 Jianxin East
Road, Jiangbei District, Chongqing, China, and its office address is T2 Building, No. 2, Financial
City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing, China.On 31 December 2023,
the total share capital of the company was RMB9,917,289,033.
The company and its subsidiaries collectively refer to as “the Group”, and its main business
activities are the manufacturing and sales of automobiles (including cars), automobile engine
products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and
China South Group respectively.
According to the Articles of Association, the financial statements, which has been approved by
the board of directors, was submitted to general meeting of shareholders for approval.
106
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
II BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for
Business Enterprises-Basic Standard and the specific standards issued and modified
subsequently, and the implementation guidance, interpretations and other relevant provisions
issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business
Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for
certain financial instruments. If the assets are impaired, the corresponding provisions should be
made accordingly.
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the Group formulated the
specific accounting policies and accounting estimates, mainly reflected in provision of accounts
receivables, inventory valuation, depreciation of fixed assets, intangible assets amortization,
condition of capitalization of research and development expense and revenue recognition and
measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the company on 31
December 2023 and the financial results and the cash flows for the year then ended in
accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated,
the unit of the currency is Yuan. Each entity in the Group determines its own functional currency
in accordance with the operating circumstances. At the end of the reporting period, the foreign
currency financial statements are translated into the reporting currency of the Company of
RMB.
4. Business combination
Business combinations are classified into business combinations involving entities under
common control and business combinations involving entities not under common control.
107
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Business combination (continued)
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory. For a business combination
involving entities under common control, the party which, on the combination date, obtains
control of another entity participating in the combination is the acquiring party, while that other
entity participating in the combination is a party being acquired. Combination date is the date
on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination
involving entities under common control shall be measured at their carrying amounts at the
combination date as recorded by the party being acquired. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination (or the aggregate face value of shares issued as consideration) shall be adjusted to
capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall
be adjusted against retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination
in which all of the combining entities are not ultimately controlled by the same party or parties
both before and after the combination. For a business combination involving entities not under
common control, the party that, on the acquisition date, obtains control of another entity
participating in the combination is the acquirer, while that other entity participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities
acquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognized and measured at cost, being the excess of the aggregate of the
fair value of the consideration transferred (or the fair value of the equity securities issued) and
any fair value of the Group’s previously held equity interest in the acquiree over the Group’s
interest in the fair value of the acquiree’s net identifiable assets. After initial recognition,
goodwill is measured at cost less any accumulated impairment losses. Where the aggregate of
the fair value of the consideration transferred (or the fair value of the equity securities issued)
and any fair value of the Group’s previously held equity interest in the acquiree is lower than the
Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses
the measurement of the fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities and the fair value of the consideration transferred (or the fair value of the equity
securities issued), together with the fair value of the Group’s previously held equity interest in
the acquiree. If after that reassessment, the aggregate of the fair value of the consideration
transferred (or the fair value of the equity securities issued) and the Group’s previously held
equity interest in the acquiree is still lower than the Group’s interest in the fair value of the
acquiree’s net identifiable assets, the Group recognize the remaining difference in profit or loss.
108
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of
the Company and all of its subsidiaries, is determined on the basis of control. A subsidiary is an
entity that is controlled by the Company (such as an enterprise, a deemed separate entity, or a
structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the
subsidiaries are prepared for the same reporting period as the Company, using consistent
accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash
flows relating to transactions between members of the Group are eliminated in full on
consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the
subsidiary belong to minorities, the exceeded part will still deduct the equity belong to
minorities.
With respect to subsidiaries acquired through business combinations involving entities not
under common control, the operating results and cash flows of the acquiree should be included
in the consolidated financial statements, from the day that the Group gains control, till the
Group ceases the control of it. While preparing the consolidated financial statements, the
acquirer should adjust the subsidiary’s financial statements, on the basis of the fair values of the
identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under
common control, the operating results and cash flows of the acquiree should be included in the
consolidated financial statements from the beginning of the period in which the combination
occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more
control elements, then the Group should reassess whether it has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation
refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed
and assumed by the joint ventures. Joint ventures refer to those joint venture arrangements,
only the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint
operation and conduct accounting treatment in accordance with relevant accounting standards
for business enterprises: assets it solely holds and its share of jointly-held assets based on its
percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its
percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from
sale of output from the joint operation based on its percentage; and separate costs and costs
for the joint operation based on its percentage.
109
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time;
Cash equivalents are short-term, highly liquid investments held by the Group, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional
currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency,
by applying to the foreign currency amount at the spot exchange rate on the transaction dates.
Foreign currency monetary items are translated using the spot exchange rate quoted by the
People’s Bank of China at the balance sheet date. The exchange gains or losses arising from
occurrence of transactions and exchange of currencies, except for those relating to foreign
currency borrowings specifically for construction and acquisition of fixed assets capitalized, are
dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at
historical cost remain to be translated at the spot exchange rate prevailing on the transaction
date, and the amount denominated in the functional currency should not be changed.
Non-monetary foreign currency items measured at fair value should be translated at the spot
exchange rate prevailing on the date when the fair values are determined. The exchange
difference thus resulted should be charged to the current income or other comprehensive
income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries
presented in foreign currencies are translated into Renminbi as follows: asset and liability
accounts are translated into Renminbi at exchange rates ruling at the balance sheet date;
shareholders’ equity accounts other than retained profits are translated into Renminbi at the
applicable exchange rates ruling at the transaction dates; income and expense in income
statement are translated into Renminbi average exchange rate of the period in which the
transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this
exchange rate for conversion, the spot exchange rate on the date of cash flow shall be adopted
for conversion); total difference between translated assets and translated liabilities and
shareholders’ equity is separately listed as “foreign currency exchange differences” below
retained profits. The translation difference arising from the settlement of oversea subsidiaries is
charged to the current liquidation profit and loss in proportion to the settlement ratio of the
assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated
using the average exchange rate prevailing on the transaction month during which the cash
flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange
rate for conversion, the spot exchange rate on the date of cash flow shall be adopted for
conversion). The amount of the effect on the cash arising from the change in the exchange rate
should be separately presented as an adjustment item in the cash flow statement.
110
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. 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.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party
to the contractual provision of the instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated balance
sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has
assumed an obligation to pay the received cash flows in full without material delay to a third
party under a “pass-through” arrangement; and either (a) has transferred substantially all the
risks and rewards of the financial asset, or (b) has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled, or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and a recognition of a new liability, and the difference between the respective carrying amounts
is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using
trade date accounting. Regular way purchases or sales are purchases or sales of financial assets
that require delivery within the period generally established by regulation or convention in the
marketplace. The trade date is the date that the Group committed to purchase or sell a financial
asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them:
financial assets at fair value through profit or loss, financial assets at amortized cost and
financial assets at fair value through other comprehensive income. All affected related financial
assets will be reclassified only if the Group changes its business model for managing financial
assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or
notes receivable arising from the sale of goods or rendering of services that do not contain
significant financing components or for which the Group has applied the practical expedient of
not adjusting the effect of a significant financing component due within one year, are initially
measured at the transaction price.
111
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments(continued)
Classification and measurement of financial assets(continued)
For financial assets at fair value through profit or loss, relevant transaction costs are directly
recognized in profit or loss, and transaction costs relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are
met: the financial asset is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows; the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. Financial assets at amortized cost are subsequently measured
using the effective interest method. Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if
both of the following conditions are met: the financial asset is held within a business model with
the objective of both holding to collect contractual cash flows and selling; the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Interest income is recognized using
the effective interest method. The interest income, impairment losses and foreign exchange
revaluation are recognized in profit or loss. The remaining fair value changes are recognized in
other comprehensive income. Upon derecognition, the cumulative fair value change recognized
in other comprehensive income is recycled to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading
as equity investments designated at fair value through other comprehensive income. Only the
relevant dividend income (excluding the dividend income explicitly recovered as part of the
investment cost) is recognized in profit or loss. Subsequent changes in the fair value are
included in other comprehensive income,
and no provision for impairment is made. When the financial asset is derecognized, the
accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income to retained earnings.
112
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
Classification and measurement of financial assets (continued)
Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortized cost and
financial assets at fair value through other comprehensive income are classified as financial
assets at fair value through profit or loss. Such financial assets are subsequently measured at
fair value with net changes in fair value recognized in profit or loss.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are directly recognized in profit or loss, and transaction costs relating
to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading are subsequently measured at fair value with net changes in
fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value
through profit or loss are recognized in profit or loss, except for the gains or losses arising from
the Group’s own credit risk which are presented in other comprehensive income with no
subsequent reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method.
113
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial
assets, measured at amortized cost and contract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components, the
Group uses a simplified measurement method to measure the loss provision based on the
expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the
Group assesses on each balance sheet date whether its credit risk has not increased significantly
since initial recognition, it is in the first stage. The Group measures the loss provision based on
the amount equivalent to the expected credit loss in the next 12 months, and calculates the
interest income based on the book balance and the actual interest rate; if the credit risk has
increased significantly since initial recognition but has not yet suffered credit impairment, it is in
the second at this stage, the Group measures the loss provision based on the amount equivalent
to the expected credit loss for the entire duration, and calculates the interest income based on
the book balance and the actual interest rate; If credit impairment occurs after initial
recognition, it is in the third stage. The amount of expected credit losses is measured over the
entire duration of the loss allowance, and interest income is calculated based on amortized cost
and effective interest rate. For financial instruments with low credit risk on the balance sheet
date, the Group assumes that their credit risk has not increased significantly since initial
recognition.
The Group assesses the expected credit losses of financial instruments based on individual
items and portfolios. The Group has considered the credit risk characteristics of different
customers and evaluated the expected credit losses of accounts receivable and other
receivables based on the ageing combination.
When the Group no longer reasonably expects to be able to fully or partially recover the
contractual cash flows of financial assets, the Group directly writes down the book balance of
the financial asset.
114
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts; and there
is an intention to settle on a net basis, or to realize the assets and settle the liabilities
simultaneously.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset,
the Group derecognizes the financial asset; and if the Group retains substantially all the risks
and rewards of the financial asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of
the financial asset, the Group determines whether it has retained control of the financial asset.
In this case: (i) if the Group has not retained control, it derecognizes the financial asset and
recognize separately as assets or liabilities any rights and obligations created not retained in the
transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an
associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned
processing materials, low-value consumables.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase,
costs of conversion and other costs incurred in bringing the inventory to its present location and
condition. Weighted average method is assigned to the determination of actual costs of
inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If
the cost is higher than the net realizable value, provision for the inventory should be made
through profit or loss. If factors that resulted in the provision for the inventory have disappeared
and made the net realizable value higher than their book value, the amount of the write-down
should be reversed, to the extent of the amount of the provision for the inventory, and the
reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale. The
impairment provision should be made on a basis of each item of inventories according to the
difference between cost and net realizable value. For large numbers of inventories at relatively
low unit prices, the provision for loss on decline in value of inventories should be made by
category.
115
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and
associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a
long-term equity investment acquired through a business combination under common control,
the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at combination date. The
difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. Any other
comprehensive income previously recognized shall be accounted for on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities.
The portion recognized based on changes in the investee’s equity (other than net profit or loss,
other comprehensive income and profit appropriation) is charged to profit or loss upon disposal
of such long-term equity investment. For those partially disposed equity investments, gains or
losses upon disposal are proportionately recognized in profit or loss when they still constitute
long-term equity investments after the disposal and are fully charged to profit or loss when
they are reclassified to financial instruments after the disposal. For business combination
involving entities not under common control, the initial investment cost should be the cost of
acquisition (for step acquisitions not under common control, the initial investment cost is the
sum of the carrying amount of the equity investment in the acquiree held before the
acquisition date and the additional investment cost paid on the acquisition date), which is the
sum of the fair value of assets transferred, liabilities incurred or assumed and equity
instruments issued. If the equity investments in the acquiree involve other comprehensive
income prior to the acquisition date, when disposing of the investments, the relevant other
comprehensive income will be accounted for on the same basis as would have been required if
the investee had directly disposed of the related assets or liabilities. The portion recognized
based on changes in the investee’s equity (other than net profit or loss, other comprehensive
income and profit appropriation) is charged to profit or loss upon disposal of such long-term
equity investment. The initial investment cost of a long-term equity investment acquired
otherwise than through a business combination shall be determined as follows: for a long-term
equity investment acquired by paying cash, the initial investment cost shall be the actual
purchase price has been paid plus those costs, taxes and other necessary expenditures directly
attributable to the acquisition of the long-term equity investment; for those acquired by the
issue of equity securities, the initial investment cost shall be the fair value of the equity
securities issued.
116
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments (continued)
The Company adopted cost method to account for long-term investments in the subsidiaries in
the separate financial statements of the Company. Control is the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial
investment. The cost of long-term equity investment should be adjusted in case of additional
investment or disinvestments. When cash dividends or profits are declared by the invested
enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has
jointly control, or significant influence on the investee enterprise. Joint control is the
contractually agreed sharing of control over an economic activity, and exists only when the
strategic financial and operating decisions relating to the activity require the unanimous
consent of the parties sharing control (the ventures). Significant influence is the power to
participate in the financial and operating policy decisions of an economic activity but is not
control or joint control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment
exceeds the investing enterprise’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date, the difference is accounted for as an initial cost. As to the initial
investment cost is less than the investing enterprise’s interest in the fair values of the investee’s
identifiable net assets at the acquisition date, the difference shall be charged to the income
statement for the current period, and the cost of the long-term equity investment shall be
adjusted accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee
enterprise for the current period as a gain or loss on investment, and also increases or decreases
the carrying amount of the investment. When recognizing its share in the net profit or loss of
the investee entities, the Group should, based on the fair values of the identifiable assets of the
investee entity when the investment is acquired, in accordance with the Group’s accounting
policies and periods, after eliminating the portion of the profits or losses, arising from internal
transactions with joint ventures and associates, attributable to the investing entity according to
the share ratio (but losses arising from internal transactions that belong to losses on the
impairment of assets, should be recognized in full), recognize the net profit of the investee
entity after making appropriate adjustments. The book value of the investment is reduced to
the extent that the Group’s share of the profit or cash dividend declared to be distributed by the
investee enterprise. However, the share of net loss is only recognized to the extent that the
book value of the investment is reduced to zero, except to the extent that the Group has
incurred obligations to assume additional losses. The Group shall adjust the carrying amount of
the long-term equity investment for other changes in owners’ equity of the investee enterprise
(other than net profits or losses), and include the corresponding adjustments in equity, which
should be realized through profit or loss in subsequent settlement of the respective long-term
investment.
117
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments (continued)
On settlement of a long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in the income statement for the current
period. As to other comprehensive income recognized based on measurement of the original
equity investment by employing the equity method, accounting treatment shall be made on the
same basis as would be required if the invested entity had directly disposed of the assets or
liabilities related thereto when measurement by employing the equity method is terminated. As
to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the
income statement for the current period. If the remaining equities still be measured under the
equity method, accumulative change previously recorded in other comprehensive income shall
be transferred to current profit or loss, in measurement on the same basis as the invested entity
had directly disposed of the assets or liabilities related thereto. The income or loss recorded in
the equity directly should been transferred to the current income statement on settlement of
the equity investment on the disposal proportion.
12. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both,
including rented land use right, land use right which is held and prepared for transfer after
appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The
follow-up expenses pertinent to an investment property shall be included in the cost of the
investment property, if the economic benefits pertinent to this real estate are likely to flow into
the enterprise, and, the cost of the investment property can be reliably measured. Otherwise,
they should be included in the current profits and losses upon occurrence.
The Group adopts the cost method to make follow-up measurement to the investment property.
The buildings are depreciated under straight-line method.
13. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the
asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent
expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the
cost of the fixed asset, and the book value of the component of the fixed asset that is replaced
shall be derecognized. Otherwise, such expenditure shall be recognized in the income
statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed
asset comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use, such as delivery and handling costs,
installation costs and other surcharges.
118
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual
values and annual depreciation rates for each category of fixed assets are as follows:
Category Deprecation period Residual rate (%) Yearly deprecation
rate (%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at the end of each year and makes adjustments if
necessary.
14. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the
construction, including all necessary construction expenditure incurred during the construction
period, borrowing costs that should be capitalized before the construction reaches the
condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended
use.
15. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the
borrowing of the funds. Borrowing costs include interest, amortization of discounts or
premiums related to borrowings, ancillary costs incurred in connection with the arrangement of
borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized, otherwise the borrowing costs are expensed in the period
during which they are incurred. A qualifying asset is an asset (an item of property, plant and
equipment and inventory etc.) that necessarily takes a substantial period of time to get ready
for its intended use of sale.
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence
when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in
progress.
119
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
15. Borrowing costs (continued)
Capitalization of borrowing costs shall be ceased when substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale have been done. And
subsequent borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting
period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned form depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be
capitalized on such borrowings is determined by applying a weighted average interest rate to
the weighted average of the excess amounts of cumulative expenditure on the asset over and
above the amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if
abnormal discontinuance, other than procedures necessary for their reaching the expected
useful conditions, happens, and the duration of the discontinuance is over three months, the
capitalization of the borrowing costs is suspended. Borrowing costs incurred during the
discontinuance are recognized as expense and charged to the income statement of the current
period, till the construction or manufacture of the assets resumes.
16. Right-of-use assets
The Group's right-of-use assets are mainly buildings.
At the commencement date of the lease period, the Group recognizes its right to use the leased
assets during the lease period as a right-of-use asset, including: the initial measured amount of
the lease liability; the amount of lease payments paid on or before the start date of the lease
period, in addition, the relevant amount of lease incentive should be deducted; Initial direct
expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and
removing the leased assets, restoring the site where the leased assets are located, or restoring
the leased assets to the state agreed in the lease terms. the Group adopts the average age
method to depreciate the assets of the right of use. If it can be reasonably determined that the
ownership of the leased asset is obtained at the expiration of the lease term, the Group adopts
depreciation within the remaining service life of the leased asset. If it is impossible to
reasonably determine that the ownership of the leased asset can be obtained at the expiration
of the lease term, the Group adopts depreciation within the shorter of the lease term and the
remaining service life of the leased asset.
When the Group remeasures the lease liability according to the present value of the changed
lease payment and adjusts the book value of the right of use asset, if the carrying amount of the
right-of-use assets has been reduced to zero but the lease liabilities still need to be further
reduced, the Group will include the remaining amount in the profit or loss of the current period.
120
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably.
Intangible assets are initially measured at cost. The cost of intangible assets acquired in a
business combination is the fair value as at the date of acquisition, if the fair value can be
reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial
period expected to generate economic benefits. An intangible asset shall be regarded as having
an indefinite useful life when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 to 11 years
Patent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are
accounted for as intangible assets. With respect to self-developed properties, the
corresponding land use right and buildings should be recorded as intangible and fixed assets
separately. As to the purchased properties, if the reasonable allocation of outlays cannot be
made between land and buildings, all assets purchased will be recorded as fixed assets. The cost
of a finite useful life intangible asset is amortized using the straight-line method during the
estimated useful life. For an intangible asset with a finite useful life, the Group reviews the
estimated useful life and amortization method at least at the end of each year and adjusts if
necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by
comparing its recoverable amount with its carrying amount annually, whenever there is an
indication that the intangible asset may be impaired. An intangible asset with an indefinite
useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period
to determine whether events and circumstances continue to support an indefinite useful life
assessment for that asset. If there are indicators that the intangible asset has finite useful life,
the accounting treatment would be in accordance with the intangible asset with finite useful
life.
121
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research
expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a)
it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and
use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate
economic benefits shall be proved, including being able to prove that there is a potential market
for the products manufactured by applying the intangible assets or there is a potential market
for the intangible assets itself or the intangible assets will be used internally; (d) it is able to
finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources; and (e) the
development expenditures of the intangible assets can be reliably measured. Expenses incurred
that don’t meet the above requirements unanimously should be expensed in the income
statement of the reporting period.
The Group discriminates between research and development stage with the condition that the
project research has been determined, in which the relevant research complete all the
fractionalization of products measurements and final product scheme under final approval of
management. The expenditures incurred before project-determination stage is charged to the
current income, otherwise it is recorded as development cost.
19. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory,
contract assets, deferred income taxes, and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may
be impaired. If any indication exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a
business combination and an intangible asset with an indefinite useful life are tested for
impairment at least at the end of every year, irrespective of whether there is any indication that
the asset may be impaired. An intangible asset which is not ready for its intended use is tested
for impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the
present value of the future cash flow expected to be derived from the asset. The Group
estimates the recoverable amount on an individual basis. If it is not possible to estimate the
recoverable amount of the individual asset, the Group determines the recoverable amount of
the asset group to which the asset belongs. Identification of an asset group is based on whether
major cash flows generated by the asset group are independent of the cash flows from other
assets or asset groups.
122
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
19. Impairment of assets (continued)
When the recoverable amount of an asset or asset group is less than its carrying amount, the
carrying amount is reduced to the recoverable amount. The impairment of asset is provided for
and the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to
allocate to the related asset groups, it is allocated to each of the related sets of asset groups.
Each of the related asset groups or related sets of asset groups is a group or set of asset group
that is able to benefit from the synergies of the business combination and shall not be larger
than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains
goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the
set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it
determines and compares the recoverable amount with the related carrying amount and then
recognize impairment loss if any. Thereafter, the Group tests the asset group or set of asset
groups including goodwill for impairment, the carrying amount (including the portion of the
carrying amount of goodwill allocated) of the related asset group or set of asset groups is
compared to its recoverable amount. If the carrying amount of the asset group or set of asset
groups is higher than its recoverable amount, the amount of the impairment loss is firstly
eliminated by and amortized to the book value of the goodwill included in the asset group or set
of asset groups, and then eliminated by the book value of other assets according to the
proportion of the book values of assets other than the goodwill in the asset group or set of asset
groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
20. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and
other expenses, which have been paid and should be deferred in the following years. Long-term
deferred expenses are amortized on the straight-line basis over the expected beneficial period
and are presented at actual expenditure net of accumulated amortization.
21. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to
their employees in exchange for services provided by the employees or termination of labor
relation. Employee compensation includes short-term compensation and post-employment
benefits. The benefits offered by enterprises to the spouse, children, the dependents of the
employee, the family member of deceased employee and other beneficiaries are also employee
compensation.
123
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
21. Employee benefits (continued)
Short-term employee salaries
During the accounting period of employee rendering service, the actual employees salaries and
are charged to the statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local
government and the relevant expenditure, is recognized, when incurred, in the costs of relevant
assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a
separately administered fund. The benefits are unfunded. The cost of providing benefits under
the defined benefit plan is determined using the projected unit credit actuarial valuation
method.
Remeasurements arising from defined benefit pension plans are recognized immediately in the
consolidated statement of financial position with a corresponding debit or credit to retained
profits through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss at the earlier of: the date of the plan
amendment or curtailment; and the date that the Group recognizes restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. The Group recognizes the following changes in the net defined benefit obligation under
administrative expenses in the consolidated statement of profit or loss by function: service
costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; net interest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw
the offer of those benefits and when the Group recognizes restructuring costs involving the
payment of termination benefits.
124
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
22. Lease liabilities
At the commencement date of the lease period, the Group recognizes the present value of the
outstanding lease payments as a lease liability, excluding short-term leases and leases of
low-value assets. When calculating the present value of the lease payment, the Group uses the
lease implied rate as the discount rate, and if the lease implied interest rate cannot be
determined, the lessee incremental borrowing rate is used as the discount rate. The Group
calculates the interest expense of the lease liability in each period of the lease term according to
the fixed periodic interest rate and records it into the current profit and loss, unless otherwise
specified, it is included into the cost of relevant assets. Variable lease payments that are not
included in the measurement of lease liabilities are included in the profit or loss of the current
period when actually incurred, unless otherwise specified to be included in the cost of the
underlying assets.
After the commencement date of the lease period, the Group remeasures the lease liability
against the present value of the changed lease payment amount when there is a change in the
amount of substantial fixed payments, a change in the amount expected to pay due to the
residual value of the guarantee, a change in the index or ratio used to determine the amount of
the lease payment, the assessment of the purchase option, the renewal option or the option to
terminate the lease.
23. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all
of the following conditions are satisfied, except for contingent considerations and contingent
liabilities assumed in a business combination not involving entities under common control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to
settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the
expenditure necessary for the performance of relevant present obligations, with comprehensive
consideration given to factors such as the risks, uncertainty and time value of money relating to
contingencies. The book value of the contingent liabilities should be reviewed at each balance
sheet date. If there is objective evidence showing that the book value cannot reflect the present
best estimate, the book value should be adjusted according to the best estimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities
not under common control are measured at fair value upon initial recognition. After initial
recognition, the balance of the amount recognized according to the estimated liabilities and the
amount initially recognized after deducting the accumulated amortization determined by the
revenue recognition principle is subsequently measured at the higher of the two.
125
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
24. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a
cash-settled share-based payment. An equity-settled share-based payment is a transaction in
which the Group receives services and uses shares or other equity instruments as consideration
for settlement.
An equity-settled share-based payment in exchange for services received from employees is
measured at the fair value of the equity instruments granted to the employees. If such
equity-settled share-based payment could vest immediately, related costs or expenses at an
amount equal to the fair value on the grant date are recognized, with a corresponding increase
in capital reserves; if such equity-settled share-based payment could not vest until the
completion of services for a vesting period, or until the achievement of a specified performance
condition, the Group at each balance sheet date during the vesting period recognizes the
services received for the current period as related costs and expenses, with a corresponding
increase in capital reserves, at an amount equal to the fair value of the equity instruments at the
grant date, based on the best estimate of the number of equity instruments expected to vest.
The fair value is determined using the closing price of the company's shares on the grant date.
For awards that do not ultimately vest because non-market performance and/or service
conditions have not been met, no expense is recognized. Where awards include a market or
non-vesting condition, the transactions are treated as vesting irrespective of whether the
market or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an
expense is recognized as if the terms had not been modified. In addition, an expense is
recognized for any modification that increases the total fair value of the share-based payment
or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the
date of cancellation, and any expense not yet recognized for the award is recognized
immediately. This includes any award where non-vesting conditions within the control of
either the Group or the employee are not met. However, if a new award is substituted for the
cancelled award and is designated as a replacement on the date that it is granted, the cancelled
and new awards are treated as if they were a modification of the original award.
126
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
25. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is
recognized when the customer obtains control of the relevant goods or services. Obtaining
control over related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the
performance obligation to transfer of goods, transportation services and free maintenance.
The Group allocates the transaction price to each individual performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services
promised by each individual performance obligation on the date of contract commencement.
Regarding the performance obligations of the transferred goods, the Group usually recognizes
revenue at the point when the performance obligations are fulfilled based on the following
indicators, which include: a present right to payment for goods, the transfer of significant risks
and rewards of ownership of goods, the transfer of legal title to goods, the transfer of physical
possession of goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the
customer are due to the fact that the customer obtains and consumes the economic benefits
brought by the performance of the Group at the same time the Group performs the contract,
and the Group has the right to accumulate the economic benefits during the entire contract
period. The Group regards it as a performance obligation performed within a period, and
recognizes the revenue according to the performance progress, unless the performance
progress cannot be reasonably determined. In accordance with the output method, the Group
determines the progress of the performance of the service provided based on the completed or
delivered products. When the performance progress cannot be reasonably determined, if the
cost incurred by the Group is expected to be compensated, the revenue will be recognized
according to the amount of the cost incurred until the performance progress can be reasonably
determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming
variable consideration. The Group determines the best estimate of the variable consideration
based on the expected value or the most likely amount, but the transaction price including the
variable consideration does not exceed the amount that the accumulated recognized revenue
will most likely not be materially reversed when the relevant uncertainty is eliminated.
127
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
25. Revenue from contracts with customers (continued)
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality
assurance for the goods sold. For guarantee quality assurance to ensure that the products sold
meet the established standards, the Group conducts accounting treatment in accordance with
Note III, 23. For the service quality assurance that provides a separate service in addition to the
established standards to ensure that the goods sold meet the established standards, the Group
regards it as a single performance obligation, based on the stand-alone selling price of the
quality assurance of the goods and services provided. In a relative proportion, part of the
transaction price is allocated to service quality assurance, and revenue is recognized when the
customer obtains control of the service. When assessing whether the quality assurance provides
a separate service in addition to ensuring that the products sold meet the established standards,
the Group considers whether the quality assurance is a legal requirement, the quality assurance
period, and the nature of the Group's commitment to perform tasks.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the
Group has the right to independently determine the price of the goods or services traded, that
is, the Group can control the relevant goods before transferring the goods to the customers, so
the Group is the main responsible person, and recognize revenue based on the total
consideration received or receivable. Otherwise, the Group acts as an agent and recognizes
revenue based on the amount of commission or fees expected to be charged. This amount
should be based on the net amount of the total consideration received or receivable minus the
price payable to other related parties, or based on the established commission amount or
proportions, etc.
26. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Group offsets the
contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to
customers, and this right depends on factors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the
contract assets of the Group refer to Note III, 9.
128
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
26. Contract assets and contract liabilities (continued)
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the
consideration received or receivable from customers, such as the payment received by
companies before the transfer of promised goods or services.
27. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will
comply with any conditions attached to the grant and the grant will be received. Monetary
grants are accounted for at received or receivable amount. Non-monetary grants are accounted
for at fair value. If there is no reliable fair value available, the grants are accounted for a nominal
amount.
A government grant which is specified by the government documents to be used to purchase
and construct the long-term assets shall be recognized as the government grant related to
assets. A government grant which is not specified by the government documents shall be
judged based on the basic conditions to obtain the government grant. The one whose basic
condition was to purchase and construct the long-term assets shall be recognized as the
government grant related to assets.
The Group uses the net method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses
shall be recognized as deferred income and shall be charged to the current profit or loss or be
used to write down the relevant loss, during the recognition of the relevant cost expenses or
losses; or used as compensation for relevant expenses or losses already incurred by enterprises
shall be directly charged to the profit and loss account in the current period or used to write
down the relevant cost.
The government grants related to assets shall be used to write down the book value of the
relevant assets or be recognized as deferred income. The government grants related to assets,
recognized as deferred income, shall be charged to the profit and loss reasonably and
systematically in stages over the useful lives of the relevant assets. The government grants
measured at nominal amount shall be directly charged to the current profit and loss. The
remaining book value of the government grants related to assets should be charged to the
profit and loss account in the current period when the relative assets sold, transferred, disposed
or damaged.
129
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
28. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period, except to the extent that
the tax arises from a business combination or if it relates to a transaction or event which is
recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts, and temporary differences between the carrying amounts
and the tax bases of items, the tax bases of which can be determined for tax purposes, but
which have not been recognized as assets and liabilities, deferred taxes are provided using the
liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill
or the initial recognition of an asset or liability in a transaction which contains both of the
following characteristics: the transaction is not a business combination and at the time of
the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in jointly-controlled enterprises, where the timing of the reversal
of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from
the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, deferred tax assets are only
recognized to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary
differences can be utilized.
130
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
28. Income taxes (continued)
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled, according
to the requirements of tax laws. The measurement of deferred tax assets and deferred tax
liabilities reflects the tax consequences that would follow from the manner in which the Group
expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is
probable that sufficient taxable income cannot be generated to use the tax benefits of deferred
tax assets, the book value of deferred tax assets should be reduced. When it is probable that
sufficient taxable income can be generated, the amount of such reduction should be reversed.
When it is probable that sufficient taxable income can be generated, the amount of such
reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred
tax liabilities are listed at the net amount after offset: the legal right to settle the current
income tax assets and current income tax liabilities at the net amount; the deferred tax assets
and deferred tax liabilities are related to the income tax levied by the same tax collection and
management department on the same taxable subject or different taxpaying subjects However,
in the future, during each period when the significant deferred tax assets and deferred tax
liabilities are reversed, the tax payer involved intends to settle the current income tax assets
and current income tax liabilities with net amount or obtain assets and pay off debts at the
same time.
29. Leases
Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. 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. To assess whether a
contract conveys the right to control the use of an identified asset for a period of time, the
Group assesses whether, throughout the period of use, the customer has both of the right to
obtain substantially all of the economic benefits from use of the identified asset and the right to
direct the use of the identified asset.
131
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Leases (continued)
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use
an underlying asset. If the Group has an option to extend the lease, that is, the Group has the
right to extend the lease, and is reasonably certain to exercise that option, the lease term also
includes periods covered by an option to extend the lease. If the Group has an option to
terminate the lease, that is, the Group has the right to terminate the lease, but is reasonably
certain not to exercise that option, the lease term includes periods covered by an option to
terminate the lease. The Group reassesses whether it is reasonably certain to exercise an
extension option, purchase option, or not to exercise a termination option, upon the occurrence
of either a significant event or a significant change in the circumstances that is within the
control of the Group and affects whether the Group is reasonably certain to exercise an option
not previously included in its determination of the lease term.
As lessee
The Group's general accounting treatment as a lessee is provided in Notes III, 16 and 22.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of
12 months or less, and does not contains any purchase option as a short-term lease; and a lease
with a lower value of a single leased asset is recognized as a low value asset lease.
As 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, except that a lease is classified as an operating
lease at the inception date.
The Group recording the operating lease as a lessor
Rental income under an operating lease is recognized on a straight-line basis over the lease
term, through profit or loss. Variable lease payments that are not included in the measurement
of lease receivables are charged to profit or loss as incurred.
132
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Leases (continued)
The Group accounts for a modification to an operating lease as a new lease from the effective
date of the modification, considering any prepaid or accrued lease payments relating to the
original lease as part of the lease payments for the new lease.
A finance lease is a lease that transfers in substance all the risks and rewards incident to
ownership of an asset. An operating lease is a lease other than a finance lease.
30. Methods for Determining Importance and Selection Criteria
Items Importance Criteria
The net assets of subsidiaries account for more than 5%
Important non wholly-owned of the company's consolidated net assets or the net profit
subsidiaries accounts for more than 10% of the company's
consolidated net profit
Investment gains and losses under the equity method for
Important joint ventures long-term equity investments account for more than 10%
of the company's consolidated net profit
The individual write off amount accounts for more than
Important accounts
5% of the total bad debt provision for various accounts
receivable write off
receivable, or the amount exceeds 15 million yuan
Significant amount of bad
The single recovery or reversal amount accounts for more
debt provision reversal or
than 5% of the total bad debt reserves of various
recovery for accounts
receivables, or the amount exceeds 15 million yuan
receivable
The individual amount accounts for more than 5% of the
Important prepayments with
total prepaid accounts or the amount exceeds 15 million
an aging of over 1 year
yuan
Important accounts payable The individual amount accounts for more than 5% of the
with an aging of over 1 year or total amount of various accounts payable or the amount
overdue exceeds 15 million yuan
Significant other payables The individual amount accounts for more than 5% of the
with an aging of over 1 year or total amount of other accounts payable or the amount
overdue exceeds 15 million yuan
The ending balance of the project is more than 50 million
Important ongoing projects
yuan
31. Changes in significant accounting policies and accounting estimates
1. Changes in significant accounting policies
Implementation of Accounting Standards for Business Enterprises Interpretation No. 16 in
relation to the Accounting Treatment for Deferred Income Tax Related to Assets and Liabilities
Arising from a Single Transaction to Which the Initial Recognition Exemption Does Not Apply.
On 30 November 2022, the Ministry of Finance issued the Accounting Standards for Business
Enterprises Interpretation No. 16 (Cai Kuai [2022] No. 31, hereinafter referred to as
“Interpretation No. 16”), pursuant to which, the requirements of the Accounting Treatment for
Deferred Income Tax Related to Assets and Liabilities Arising from a Single Transaction to
133
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Which the Initial Recognition Exemption Does Not Apply have come into effect on 1 January
2023.
Interpretation No. 16 stipulates that, where the exemption from the initial recognition of
deferred income tax liabilities and deferred income tax assets does not apply to a single
transaction (including lease transactions in which the lessee initially recognises a lease liability
at the commencement date of the lease term and individual transactions such as those in
which an estimated liability is recognised and included in the cost of the underlying asset due
to the existence of an obligation to dispose of fixed assets) that is not a business combination
and
that affects neither the accounting profit nor taxable income (or deductible losses) at the time
of its occurrence, and that results in the creation of an equivalent amount of taxable temporary
differences and deductible temporary differences as a result of the initial recognition of the
assets and liabilities, an enterprise shall recognise a deferred income tax liability and deferred
income tax asset, respectively, at the time of the occurrence of the transaction in accordance
with the relevant provisions of Accounting Standards for Business Enterprises No. 18 – Income
Taxes and other relevant regulations.
For taxable temporary differences and deductible temporary differences arising from a single
transaction to which the requirement applies that occurs between the beginning of the earliest
period for which the requirement applies in the financial statements of the first application of
the requirement and the date of application, and for lease liabilities and right-of-use assets
recognized as a result of a single transaction to which the requirement applies and for
estimated liabilities associated with disposal obligations and corresponding underlying assets
recognised at the beginning of the earliest period for which the requirement applies, the
enterprise shall make adjustments in accordance with the requirement.
The Company has implemented this stipulation since 1 January 2023, the major impacts of the
implementation of this stipulation are as follows:
Item 2022/1/1
Consolidation Company
Deferred income tax assets 168,376.70 154,408.82
Surplus reserves 15,440.88 15,440.88
Retained earnings 152,935.82 138,967.94
Item Consolidation Company
2023.12.31/2023 2022.12.31/2022 2023.12.31/2023 2022.12.31/2022
Deferred income tax assets 716,511.81 512,123.33 552,669.86 273,667.46
Surplus reserves 55,266.98 27,366.74 55,266.98 27,366.74
Retained earnings 660,939.30 475,283.62 497,402.88 246,300.72
Minority shareholder equity 305.53 9,472.97
Income tax expenses -204,388.48 -343,746.63 -279,002.40 -119,258.64
Minority interest -9,167.44 9,472.97
134
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
IV TAXES
1. Main taxes and tax rates
Tax rate
Tax Category Taxable Basis
（%）
Taxable basis is calculated based on the sales of goods
and taxable services as determined by tax laws. Output
Value added tax (“VAT”) tax is calculated based on this taxable basis. After 6、7、9、13
deducting the input tax allowed for the current period,
the difference is the payable value-added tax.
Consumption Tax Payment is made according to taxable sales revenue. 1、3、5
Urban Maintenance and Payment is based on the actual payment of value-added
5、7
Construction Tax tax and consumption tax.
Corporate Income Tax
Payment is determined by taxable income. 15-41
(CIT)
Payment is based on the actual payment of value-added
Education Surcharge 3
tax and consumption tax.
Payment is based on the actual payment of value-added
Local Education Surcharge 2
tax and consumption tax.
2. Tax benefits
1.In accordance with relevant regulations governing the identification of national
high-tech enterprises and associated tax incentives, the company and its
subsidiaries listed below have been recognized as high-tech enterprises. They are
entitled to enjoy a preferential enterprise income tax rate of 15% during the
specified periods: the company (from 2021 to 2023), Hebei Chanagan Automobile
Co., Ltd. (from 2023 to 2025), and Shenlan Automobile Technology Co., Ltd. (from
2023 to 2025).
2.As per the joint announcement by the Ministry of Finance the State
Administration of Taxation, and the National Development and Reform Commission,
outlined in Announcement No. 23 of 2020, a corporate income tax rate of 15% is
applicable to encouraged industries in the western regions from January 1, 2021, to
December 31, 2030. Subsidiaries of the company, namely Chongqing Changan
Automobile International Sales Service Co., Ltd., Chongqing Changan Special
Purpose Vehicle Co., Ltd., Chongqing Changan Automobile Customer Service Co.,
Ltd., Chongqing Changan Automobile Software Technology Co., Ltd., Chongqing
Changan Technology Co., Ltd., Chongqing Lingyao Automobile Co., Ltd., and
Chongqing Chehumei Technology Co., Ltd., fulfill the criteria and are subject to a
corporate income tax rate of 15%.
3.Pursuant to Announcement No. 12 of 2023 issued by the Ministry of Finance and
the State Administration of Taxation, which aims to further support the
development of small and micro-enterprises and individual businesses through tax
policies, small and micro-profit enterprises are eligible for a 25% reduction in
135
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
taxable income, resulting in a corporate income tax rate of 20%. The subsidiaries of
the company, including Chongqing Xingzhi Technology Co., Ltd., Guangzhou
Changan New Energy Automobile Sales Service Co., Ltd., Nanjing Changan New
Energy Automobile Sales Service Co., Ltd., Xiamen Changan New Energy
Automobile Sales Service Co., Ltd., Shenlan Automobile Nanjing Research Institute
Co., Ltd., and Shenlan Automobile Marketing Service (Shenzhen) Co., Ltd., have
been identified as small and micro-profit enterprises and are entitled to this tax
preferential policy.
4.As outlined in Announcement No. 43 of 2023 issued by the Ministry of Finance and
the State Administration of Taxation regarding the value-added tax incremental
deduction policy for advanced manufacturing enterprises, eligible enterprises are
permitted to deduct 5% of the current deductible input tax amount to offset the
payable value-added tax from January 1, 2023, to December 31, 2027. The company
and Hebei Changan Automobile Co., Ltd. fulfill the specified conditions in 2023 and
qualify for this incremental deduction policy.
136
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
V NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash
2023 2022
Cash 35,257.05 32,155.77
Cash at bank 29,493,854,273.50 17,642,961,747.50
Cash deposited by the Group
34,916,021,247.02 34,812,952,043.78
in the finance company
Other cash 461,131,970.31 1,074,237,880.29
Total 64,871,042,747.88 53,530,183,827.34
Note： the cash deposited by the Group in the finance company (related party) refer to note
XII,7.
2. Financial assets held for trading
2023 2022
Equity instrument investment 160,744,733.27 251,165,128.80
Others 6,774,614.02 29,150,442.29
Total 167,519,347.29 280,315,571.09
137
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Notes receivable
(1) Classification of notes receivable
2023 2022
Commercial acceptance bill 9,069,703,846.26 10,010,938,909.34
Bank acceptance bill 28,588,687,367.75 25,838,721,743.62
Total 37,658,391,214.01 35,849,660,652.96
(2) Pledged notes receivable
2023
Commercial acceptance bill 398,491,314.59
Bank acceptance bill 6,910,927,744.28
Total 7,309,419,058.87
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period
are as follow:
2023
Derecognition Un-derecognition
Commercial acceptance bill 120,000.00 -
Bank acceptance bill 4,376,220,432.46 -
Total 4,376,340,432.46 -
(4) As at 31 December 2023, there was no note receivables converted to accounts receivable
due to the inability of the drawer to perform the contract. (As at 31 December 2022: Nil
comments)
4. Accounts receivable
(1) Aging analysis of the accounts receivable on 31 December 2023 is as follows:
2023 2022
Within 1 year 2,455,130,606.98 2,905,353,787.00
138
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
1 to 2 years 9,231,834.37 176,712,124.08
2 to 3 years 436,370.13 25,732,015.24
Over 3 years 196,256,136.33 201,045,330.53
Total 2,661,054,947.81 3,308,843,256.85
Less: Provision 249,258,528.74 (240,428,841.56)
2,411,796,419.07 3,068,414,415.29
(2) The movements in provision for impairment of accounts receivable are as
follows:
Beginning balance Accrual Reversal Write-off Others Ending balance
2,023.00 240,428,841.56 70,843,141.92 22,674,151.02 39,339,303.72 249,258,528.74
2,022.00 215,274,377.62 35,457,297.58 4,945,346.85 5,357,486.79 240,428,841.56
(3) Analysis of accounts receivable by category as at 31 December 2023 is as follows:
2023
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 1,155,752,310.55 43.43 139,066,311.49 12.03
Provision based on the combination
of credit risk characteristics 1,505,302,637.26 56.57 110,192,217.25 7.32
Total 2,661,054,947.81 100.00 249,258,528.74
2022
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 2,059,626,543.23 62.25 152,800,930.19 7.42
Provision based on the combination
of credit risk characteristics 1,249,216,713.62 37.75 87,627,911.37 7.01
Total 3,308,843,256.85 100.00 240,428,841.56
139
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Accounts receivable (continued)
(4) The Group’s accounts receivable was analyzed for provision by expected credit
loss model
2023 2022
Estimated face Expected Expected credit Face balance Provision Provision for bad
value for default credit loss loss for the entire ratio (%) debt
rate (%) duration
Within 1 year 1,362,056,874.81 0.40 5,437,718.64 1,031,532,359.36 0.41 4,211,660.35
1 to 2 years 7,237,418.29 5.15 372,562.67 30,724,065.06 7.24 2,225,905.84
2 to 3 years 25,707,148.00 16.02 4,118,732.53
Over 3 years 136,008,344.16 76.75 104,381,935.94 161,253,141.20 47.80 77,071,612.65
Total 1,505,302,637.26 110,192,217.25 1,249,216,713.62 87,627,911.37
(5) As at 31 December 2023, accounts receivable from Top 5 clients amounted to
RMB1,244,068,823.70, accounted for46.75%.
(6) There were no accounts receivable derecognized due to transfer of financial assets
during 2023 (2022: Nil).
5. Prepayments
(1) Aging analysis of the prepayments is as follows:
2023 2022
Aging Amount Percentage Amount Percentage
(%) (%)
Within 1 year 281,522,043.69 97.86 523,061,724.51 69.78
1 to 2 years 1,248,976.74 0.43 217,460,711.49 29.01
2 to 3 years 128,513.87 0.04 8,858,465.69 1.18
Over 3 years 4,811,476.32 1.67 191,360.31 0.03
Total 287,711,010.62 100.00 749,572,262.00 100.00
(2) As at 31 December 2023, prepayments to Top 5 suppliers amounted to RMB
191,960,998.58 , which accounted for 66.72% of the total prepayments.
140
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Other receivables
(1) Aging analysis of other receivables as at 31 December 2022 is as follows:
2023 2022
Within 1 year 832,441,463.15 1,192,972,701.51
1 to 2 years 7,857,497.78 57,855,077.50
2 to 3 years 50,952,225.85 1,364,188.70
Over 3 years 10,686,669.55 18,062,282.93
Total 901,937,856.33 1,270,254,250.64
Less: Provision 7,669,424.51 9,096,299.50
894,268,431.82 1,261,157,951.14
(2) Other receivables are classified by nature as follows:
2023 2022
New energy subsidy 586,119,720.60 667,729,527.63
Investment 95,100,000.00 399,486,432.52
Reserve 74,416,322.72 63,922,920.44
Margin 15,176,743.46 16,618,938.83
Other 131,125,069.55 122,496,431.22
Total 901,937,856.33 1,270,254,250.64
(3) For other receivables, the changes in the provision for bad debts based on 12-month
expected credit losses and the entire duration of expected credit losses are as follows:
Beginning Provision Reversal Write-off Ending balance
balance
2023 9,096,299.50 202,326.32 1,629,201.31 7,669,424.51
2022 7,466,239.96 1,886,641.46 156,581.92 9,096,299.50
141
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Other receivables (continued)
(4) at 31 December 2023, top five debtors of other receivables are as follows:
As at 31 December 2023, prepayments to Top 5 suppliers amounted to RMB731,970,247.60 ,
which accounted for81.16% of the total prepayments.
(5) For the year ended 2023, there were no accounts receivable derecognized due to transfer
of financial assets. (2022: Nil).
142
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
7. Inventories
(1) Classification of inventories
2023 2022
Balance Provision Net value Balance Provision Net value
Raw materials 748,776,600.96 378,040,520.19 370,736,080.77 1,230,104,093.50 439,269,923.99 790,834,169.51
Material in
transit 81,586,613.21 - 81,586,613.21 130,255,961.90 - 130,255,961.90
Work in
progress 1,291,990,811.53 63,870,083.00 1,228,120,728.53 1,719,902,124.07 53,609,953.08 1,666,292,170.99
Finish goods 11,890,690,577.52 202,418,376.89 11,688,272,200.63 3,264,190,903.27 87,522,918.36 3,176,667,984.91
Consigned
processing
material 27,617,777.37 - 27,617,777.37 26,582,772.70 - 26,582,772.70
Consumables 69,514,296.42 - 69,514,296.42 32,674,452.89 - 32,674,452.89
Total 14,110,176,677.01 644,328,980.08 13,465,847,696.93 6,403,710,308.33 580,402,795.43 5,823,307,512.90
(2) Provision for inventories
2023
Beginning balance Provision Reduction Ending balance
Raw
439,269,923.99 117,361,725.77 178,591,129.57 378,040,520.19
materials
Work in
53,609,953.08 29,043,469.64 18,783,339.72 63,870,083.00
progress
Finish
87,522,918.36 284,024,928.17 169,129,469.64 202,418,376.89
goods
Total 580,402,795.43 430,430,123.58 366,503,938.93 644,328,980.08
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and
makes provision of the difference. Net realizable value is the estimated by selling price in the
ordinary course of business deduct estimated costs in further production to sell and estimated
necessary distribution expense and tax expense. The reversal of inventory provisions is due to
price rebound of previous impaired inventories by net realizable value test, while written off
inventory provisions are due to selling off of previous impaired inventories in current year.
143
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
8. Contract assets
2023
Book balance Impairment Book value
Contract assets 2,104,221,673.68 661,344,707.38 1,442,876,966.30
2022
Book balance Impairment Book value
Contract assets 747,871,586.89 289,482,399.79 458,389,187.10
The movement of impairment for contract assets is as follows:：
Balance at the beginning of the Provision Reverse Merger increase in this end of year balance
year period
2023 289,482,399.79 251,154,505.60 14,748,375.00 135,456,176.99 661,344,707.38
2022 169,661,981.98 129,619,022.81 9,798,605.00 289,482,399.79
9. Other current assets
2023 2022
Input VAT to be deducted 1,393,763,691.38 1,140,996,871.24
Prepaid taxes and fees 336,795,620.72 3,078,565.10
Time deposits and others 8,004,894,049.22 3,723,435.08
Total 9,735,453,361.32 1,147,798,871.42
144
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
10. Long-term equity investments
Beginning balance Addition Investment Other comprehensive Other equity Cash dividends d Others Ending balance Ending
Income/(loss) under income variation eclared balance of
equity method provision
Joint Venture
Changan Ford Automobile Co., Ltd. 712,459,351.85 - -712,459,351.85 - - -
Changan Mazda Automobile Co., Ltd. 1,433,304,456.32 - -555,064,964.19 - - 878,239,492.13 -
Changan Mazda Engine Co., Ltd. 824,042,049.05 - 10,463,657.35 - - -29,500,000.00 805,005,706.40 -
Nanchang Jiangling Holding Co., Ltd. 1,810,629,644.86 - 297,030,927.25 -1,454,051.91 - - 2,106,206,520.20 -
Subtotal 4,780,435,502.08 - -960,029,731.44 -1,454,051.91 - -29,500,000.00 3,789,451,718.73 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 209,768,936.34 - 18,996,315.30 - - - 228,765,251.64 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note1) - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd. (note1) - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,778,898,410.33 - 350,378,027.17 - - -87,883,463.64 3,041,392,973.86 -
Nanjing Chelai Travel Technology Co., Ltd. 624,773.31 - -39,948.66 - - - 584,824.65 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,452,425.26 - 3,049,806.83 - - - 28,502,232.09 -
Nanjing Leading Equity Investment Management Co., Ltd. (Limited
Partnership) 2,570,421,464.70 - 75,371,861.99 - - - - 2,645,793,326.69 -
Nanjing Leading Equity Investment Partnership 1,112,210.69 - -4,810.57 - - - - 1,107,400.12 -
DEEPAL Automotive Technology Co., Ltd. 940,490,937.99 -60,118,846.57 - - -880,372,091.42- -
Changan Power Battery Co., Ltd 392,000,000.00 -49,934,527.28 342,065,472.72
Time FAW Power Battery Co., Ltd 43,994,598.72 -20,000,000.00 252,012,401.15 276,006,999.87
Chongqing Wutong Chelian Technology Co., Ltd 4,514,124.67 75,267,178.90 79,781,303.57
Chongqing Changxian Intelligent Technology Co., Ltd 102,000,000.00 3,033,367.07 105,033,367.07
Changan Ford New Energy Vehicle Co., Ltd 100,000,000.00 -32,286,335.07 67,713,664.93
Chongqing Anda Semiconductor Co., Ltd 45,000,000.00 9,157.18 45,009,157.18
Western Car Network (Chongqing) Co., Ltd 2,500,000.00 205,079.57 2,478,830.95 5,183,910.52
Zhongqi Chuangzhi Technology Co., Ltd. 168,492,790.78 300,000,000.00 -19,977,570.24 - - - - 448,515,220.54 -
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) 170,440,054.08 37,711,000.00 -3,632,657.70 - - - - 204,518,396.38 -
Anhe Chongqing Dingfeng Auto Contractual Private Equity
Investment Fund 61,568,706.08 123,646.33 - - - - 61,692,352.41 -
Avatr Technology (Chongqing) Co., Ltd. 2,644,535,940.48 1,229,820,000.00 -1,584,167,346.90 5,521,666.21 - - 2,295,710,259.79 -
Chongqing Changan Innovation private Equity Investment Fund
Partnership (Limited Partnership) 1,000,844.59 69,230,769.00 -127,139.60 - - - - 70,104,473.99 -
Anhe (Chongqing) Stock Right Investment Fund Management
Co.,Ltd. 5,150,787.41 656,221.13 - 163,807.32 - - 5,970,815.86 -
Hangzhou Chelizi Intelligent Technology Co., Ltd. 3,020,026.80 - -1,908,363.60 - - - 1,111,663.20 -
Master Changan Automobile Limited 45,248,645.36 - 8,946,469.63 - -10,817,915.33 - - 43,377,199.66 -
Subtotal 9,626,226,954.20 2,278,261,769.00 -1,242,918,870.60 -5,132,441.80 -107,883,463.64 -550,613,680.42 9,997,940,266.74 -
Total 14,406,662,456.28 2,278,261,769.00 -2,202,948,602.04 -1,454,051.91 -5,132,441.80 -137,383,463.64 -550,613,680.42 13,787,391,985.47 -
145
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Investment in other equity instruments
2023
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
China South Industry Group Finance Co., Ltd 178,519,200.00 335,540,000.00 180,656,814.04 Unlisted equity instruments
National Innovation Center of Intelligent and connected Vehicles 33,000,000.00 83,000,000.00 Unlisted equity instruments
Guolian Automobile Power Battery Research Institute Co.,Ltd. -410,000.00 39,590,000.00 Unlisted equity instruments
China South Industries Financial Leasing Co., Ltd. -2,252,000.00 28,300,000.00 Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. -6,198,141.28 14,801,858.72 25,385,760.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co., Ltd. -41,776.01 2,958,223.99 - Unlisted equity instruments
Total 202,617,282.71 489,950,000.00 206,042,574.04
2022
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
China South Industry Group Finance Co., Ltd 181,979,200.00 339,000,000.00 143,737,363.49 Unlisted equity instruments
National Innovation Center of Intelligent and connected Vehicles 2,700,000.00 52,700,000.00 73,034.00 Unlisted equity instruments
Guolian Automobile Power Battery Research Institute Co.,Ltd. - 40,000,000.00 - Unlisted equity instruments
China South Industries Financial Leasing Co., Ltd. 3,698,000.00 34,250,000.00 411,666.67 Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 15,866,100.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co., Ltd. - 3,000,000.00 - Unlisted equity instruments
Total 188,377,200.00 489,950,000.00 160,088,164.16
146
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
12. Investment property
Cost Model
Buildings 2023 2022
Original cost
Beginning and Ending balance 10,050,100.00 10,050,100.00
Accumulated depreciation and amortization
Beginning 3,627,384.96 3,400,673.40
Accrual 226,711.56 226,711.56
Ending 3,854,096.52 3,627,384.96
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 6,196,003.48 6,422,715.04
Beginning 6,422,715.04 6,649,426.60
The investment property is rented to third parties in the form of operating lease.
As at 31 December 2023, there was no investment property without property certificate (As at 31
December 2022: Nil).
147
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets
(1) Details of fixed assets
2023
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
Purchase 706,533,581.95 9,802,052.35 1,517,311.38 202,294,796.54 920,147,742.22
Transfer from
Construction in
progress 164,306,817.76 1,901,912,764.41 26,182,833.90 837,640,602.21 2,930,043,018.28
Business
- 482,696,122.52 97,376.64 84,273,275.42 567,066,774.58
combination
Fluctuations in
8,399,878.58 7,007,646.12 - 119,299.03 15,526,823.73
exchange
Government
58,261,221.88 8,275,601.20 107,400,577.29 173,937,400.37
grants
Disposal 305,015,534.29 547,606,412.85 333,562,325.80 94,407,055.10 1,280,591,328.04
Fluctuations in
exchange - 431,263.94 - - 431,263.94
Ending 10,402,849,881.70 28,090,256,805.16 1,669,155,485.79 10,398,235,511.86 50,560,497,684.51
Accumulated depreciation
Beginning 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Accrual 344,055,307.70 1,923,757,726.39 187,760,095.93 536,345,748.31 2,991,918,878.33
Business
88,123,493.69 11,806.91 30,208,499.83 118,343,800.43
combination -
Fluctuations in
781,002.33 2,262,440.79 119,299.03 3,162,742.15
exchange -
Disposal 216,272,376.70 497,096,573.15 129,579,029.84 82,279,152.31 925,227,132.00
Fluctuations in
exchange - 389,601.60 - - 389,601.60
Ending 3,252,045,432.73 17,904,036,679.47 770,934,918.45 5,827,737,532.10 27,754,754,562.75
Impairment provision
Beginning 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Accrual 1,194,531.79 175,982,243.03 584,361.62 75,443,557.21 253,204,693.65
Disposal 35,744,034.56 46,577,150.36 24,996,448.83 3,191,597.45 110,509,231.20
Ending 63,168,825.18 2,319,193,144.50 33,357,247.40 395,938,996.54 2,811,658,213.62
Carrying amount
Ending 7,087,635,623.79 7,867,026,981.19 864,863,319.94 4,174,558,983.22 19,994,084,908.14
Beginning 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
148
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
(1) Details of fixed assets (continued)
2022
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9,881,301,151.22 26,013,931,324.85 1,421,170,657.53 9,442,094,973.15 46,758,498,106.75
Purchase 1,265,124.39 3,890,620.93 1,608,965.83 10,537,259.44 17,301,970.59
Transfer from
Construction in
progress 15,846,963.74 576,973,067.51 670,805,017.81 373,187,890.97 1,636,812,940.03
Government
grants 16,984,544.50 146,643,567.32 - 24,611,126.55 188,239,238.37
Disposal 52,803,557.15 153,014,327.54 109,955,267.54 316,751,699.72 632,524,851.95
Other deduction - - 433,482.76 8,742,126.24 9,175,609.00
Ending 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
Accumulated depreciation
Beginning 2,830,770,398.43 14,770,986,696.00 537,352,883.68 4,988,689,213.76 23,127,799,191.87
Accrual 319,496,770.54 1,708,030,839.79 228,535,233.82 580,979,774.97 2,837,042,619.12
Disposal 26,785,669.57 91,638,342.44 52,941,050.82 225,100,138.35 396,465,201.18
Other deduction - - 205,021.23 1,225,713.14 1,430,734.37
Ending 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Impairment provision
Beginning 99,421,052.16 1,772,417,722.74 99,933,602.55 332,966,687.27 2,304,739,064.72
Accrual 858,451.71 465,342,187.03 763,786.28 6,436,099.39 473,400,524.41
Disposal 2,561,175.92 47,971,857.94 42,928,054.22 15,715,749.88 109,176,837.96
Ending 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Carrying amount
Ending 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
Beginning 6,951,109,700.63 9,470,526,906.11 783,884,171.30 4,120,439,072.12 21,325,959,850.16
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9,881,301,151.22 26,013,931,324.85 1,421,170,657.53 9,442,094,973.15 46,758,498,106.75
Purchase 1,265,124.39 3,890,620.93 1,608,965.83 10,537,259.44 17,301,970.59
Transfer from
Construction in
progress 15,846,963.74 576,973,067.51 670,805,017.81 373,187,890.97 1,636,812,940.03
Government
grants 16,984,544.50 146,643,567.32 - 24,611,126.55 188,239,238.37
Disposal 52,803,557.15 153,014,327.54 109,955,267.54 316,751,699.72 632,524,851.95
Other deduction - - 433,482.76 8,742,126.24 9,175,609.00
Ending 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
Accumulated depreciation
Beginning 2,830,770,398.43 14,770,986,696.00 537,352,883.68 4,988,689,213.76 23,127,799,191.87
Accrual 319,496,770.54 1,708,030,839.79 228,535,233.82 580,979,774.97 2,837,042,619.12
Disposal 26,785,669.57 91,638,342.44 52,941,050.82 225,100,138.35 396,465,201.18
Other deduction - - 205,021.23 1,225,713.14 1,430,734.37
149
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Ending 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Impairment provision
Beginning 99,421,052.16 1,772,417,722.74 99,933,602.55 332,966,687.27 2,304,739,064.72
Accrual 858,451.71 465,342,187.03 763,786.28 6,436,099.39 473,400,524.41
Disposal 2,561,175.92 47,971,857.94 42,928,054.22 15,715,749.88 109,176,837.96
Ending 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Carrying amount
Ending 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
Beginning 6,951,109,700.63 9,470,526,906.11 783,884,171.30 4,120,439,072.12 21,325,959,850.16
(2) Fixed assets that are temporarily unused
On December 31, 2023, fixed assets with a book value of approximately RMB 187,074,047.38
(December 31, 2022: book value of approximately RMB 191,192,253.37 ) were temporarily idle
due to product planning and other reasons.
150
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(3) The fixed assets which are rented out under operating leases is as follow:
2023
Buildings Machinery Vehicles Total
Original cost
Beginning 2,488,884,425.25 4,895,655,978.57 1,690,556,607.27 9,075,097,011.09
Addition 1,118,879,622.96 142,830,539.29 83,293,181.80 1,345,003,344.05
Deduction 1,138,575,772.16 15,597,434.48 260,746,586.25 1,414,919,792.89
Ending 2,469,188,276.05 5,022,889,083.38 1,513,103,202.82 9,005,180,562.25
Accumulated depreciation
Beginning 1,173,475,939.45 3,173,259,755.76 548,224,825.54 4,894,960,520.75
Addition 218,745,523.15 269,118,109.09 181,048,474.00 668,912,106.24
Deduction 597,521,948.03 5,568,968.41 121,431,708.83 724,522,625.27
Ending 794,699,514.57 3,436,808,896.44 607,841,590.71 4,839,350,001.72
Impairment provision
Beginning 14,371,205.80 402,165,577.72 - 416,536,783.52
Addition - 62,855,567.23 52,616.94 62,908,184.17
Deduction 400,000.00 2,443,894.07 - 2,843,894.07
13,971,205.80 462,577,250.88 52,616.94 476,601,073.62
Carrying amount
Ending 1,660,517,555.68 1,123,502,936.06 905,208,995.17 3,689,229,486.91
Beginning 1,301,037,280.00 1,320,230,645.09 1,142,331,781.73 3,763,599,706.82
151
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
(3) The fixed assets which are rented out under operating leases is as follow:
2022
Buildings Machinery Vehicles Total
Original cost
Beginning 407,385,917.78 193,922,403.14 1,142,516,412.19 1,743,824,733.11
Addition 2,106,368,074.56 4,818,277,154.51 655,644,459.59 7,580,289,688.66
Deduction 24,869,567.09 116,543,579.08 107,604,264.51 249,017,410.68
Ending 2,488,884,425.25 4,895,655,978.57 1,690,556,607.27 9,075,097,011.09
Accumulated depreciation
Beginning 98,821,531.20 68,789,989.43 438,775,091.17 606,386,611.80
Addition 1,078,562,000.71 3,157,041,669.93 193,774,365.75 4,429,378,036.39
Deduction 3,907,592.46 52,571,903.60 84,324,631.38 140,804,127.44
Ending 1,173,475,939.45 3,173,259,755.76 548,224,825.54 4,894,960,520.75
Impairment provision
Beginning 13,971,205.80 63,528,839.55 - 77,500,045.35
Addition 400,000.00 338,636,738.17 - 339,036,738.17
14,371,205.80 402,165,577.72 - 416,536,783.52
Carrying amount
Ending 1,301,037,280.00 1,320,230,645.09 1,142,331,781.73 3,763,599,706.82
Beginning 294,593,180.78 61,603,574.16 703,741,321.02 1,059,938,075.96
（4） As at December 31, 2023, the Company has no fixed assets that has not been issued with
property certificates
152
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress
(1) Details of construction in progress
Item 2023 2022
Balance Provision Carrying amount Balance Provision Carrying amount
Constraction project 750,986,351.54 - 750,986,351.54 142,449,903.88 - 142,449,903.88
Production line
construction and
technical innovation
project 626,139,410.60 - 626,139,410.60 709,221,196.20 - 709,221,196.20
Engine plant 204,550,269.22 20,921,684.06 183,628,585.16 30,761,643.22 20,921,684.06 9,839,959.16
Environmental
relocation project 59,586,596.48 - 59,586,596.48 306,134,604.02 - 306,134,604.02
Others 302,845,555.72 8,841,139.67 294,004,416.05 245,063,849.66 24,811,294.28 220,252,555.38
Total 1,944,108,183.56 29,762,823.73 1,914,345,359.83 1,433,631,196.98 45,732,978.34 1,387,898,218.64
The movement of impairment for construction in progress is as follows:
Beginning balance Provision Write-off Ending balance
2023 45,732,978.34 5,343,493.61 21,313,648.22 29,762,823.73
2022 71,691,670.00 1,533,334.00 27,492,025.66 45,732,978.34
153
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2023
Budget Beginning balance Addition Transfer to fixed Ending balance The project Progress of Source of funds
(RMB0,000) assets investments’ construction
proportion of
budget
Constraction project 831,204.00 142,449,903.88 737,732,863.28 129,196,415.62 750,986,351.54 49.23% 49.23% Self-funded
Production line
Self-rasied and
construction and technical 683,360.77 709,221,196.20 1,505,740,539.45 1,588,822,325.05 626,139,410.60 46.52% 46.52%
additional issuance
innovation project
Engine plant 44,276.00 30,761,643.22 198,149,011.67 24,360,385.67 204,550,269.22 51.07% 51.07% Self-funded
Environmental relocation Self-rasied and
182,476.00 306,134,604.02 251,932,293.60 498,480,301.14 59,586,596.48 75.93% 75.93%
project additional issuance
Others 245,063,849.66 746,965,296.86 689,183,590.80 302,845,555.72
Total 1,433,631,196.98 3,440,520,004.86 2,930,043,018.28 1,944,108,183.56
154
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2022：(continued)
Budget Beginning balance Addition Other deduction Transfer to fixed assets The project Progress of Source of funds Ending balance
(RMB0,000) investments’ construction
proportion of
budget
Mini-bus production
137,470.00 110,892,336.09 191,447,800.99 - 227,314,759.26 62% 62% Self-funded 75,025,377.82
equipment
Car production Self-raised and additional
360,738.00 283,628,123.26 282,894,772.61 120,121,061.17 226,106,906.06 35% 35% 220,294,928.64
equipment issuance
Self-raised and additional
485,216.00 127,069,581.90 507,405,858.99 - 129,916,781.84 63% 63% 504,558,659.05
Engine plant issuance
Vehicle research
209,906.00 27,661,450.64 36,536,296.38 - 46,457,644.52 75% 75% Self-funded 17,740,102.50
institution
Car production project of Self-raised and additional
394,980.00 13,073,052.88 80,152,211.39 - 37,361,748.01 88% 88% 55,863,516.26
Hefei Changan issuance
Light vehicle project 65,828.00 20,953,663.84 58,492,273.87 - 65,904,728.84 44% 44% Self-funded 13,541,208.87
Car-sharing project 721,192,899.46 19,868,623.27 64,969,026.54 666,460,917.58 9,631,578.61
Others 155,705,431.36 572,826,869.45 - 237,289,453.92 491,242,846.89
Total 1,460,176,539.43 1,749,624,706.95 185,090,087.71 1,636,812,940.03 1,387,898,218.64
155
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
15. Right-of-use assets
2023
Buildings Buildings
2023 2022
Cost
Beginning 152,893,426.61 92,864,546.90
Addition 186,945,842.28 141,510,763.34
Disposal 1,500,158.70 2,689,483.42
Other deduction 78,792,400.21
Ending 338,339,110.19 152,893,426.61
Accumulated depreciation
Beginning 52,080,040.60 26,551,483.92
Accrual 78,278,552.25 29,882,264.96
Disposal 1,500,158.70 582,721.40
Other deduction 3,770,986.88
Ending 128,858,434.15 52,080,040.60
Carrying amount
Ending 209,480,676.04 100,813,386.01
Beginning 100,813,386.01 66,313,062.98
156
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
16. Intangible assets
2023
Land use rights Software use Trademark use Non-patent Patent Total
rights rights technology technology
Original cost
Beginning 2,237,966,691.60 845,391,055.17 211,864,157.55 7,695,744,860.28 85,556,571.30 11,076,523,335.90
Purchase 100,195,305.27 34,751,882.26 46,276.23 5,936,930.14 24,943.40 139,344,264.55
Internal
research and
development - - 2,018,394,526.72 - 2,018,394,526.72
Business combination 2,866,725.32 2,412,758,750.00 8,724,451,355.13 11,140,076,830.45
Fluctuations
in exchange 840,010.76 840,010.76
Government
grants - 1,611,072.75 - - - 1,611,072.75
Disposal 526,361.41 - - 6,000.00 - 532,361.41
Ending 2,337,635,635.46 882,238,600.76 2,624,669,183.78 18,444,521,672.27 85,581,514.70 24,374,646,606.97
Accumulated amortization
Beginning 468,031,897.59 726,462,315.72 211,791,516.98 4,904,544,443.73 7,129,714.27 6,317,959,888.29
Accrual 46,046,280.63 33,239,628.48 221,185,346.46 1,923,283,524.17 8,556,280.71 2,232,311,060.45
Business combination 1,531,371.38 279,188,219.15 280,719,590.53
Fluctuations
in exchange 797,371.30 797,371.30
Disposal 197,871.96 - 1,450.00 - 199,321.96
Ending 513,880,306.26 762,030,686.88 432,976,863.44 7,107,014,737.05 15,685,994.98 8,831,588,588.61
Impairment provision
Beginning - 23,617,923.17 - 288,560,268.76 - 312,178,191.93
Accrual - - 19,916,416.63 50,676,624.03 - 70,593,040.66
Business combination - - 114,723,135.98 - 114,723,135.98
Ending - 23,617,923.17 19,916,416.63 - 453,960,028.77 - 497,494,368.57
Carrying amount
Ending 1,823,755,329.20 96,589,990.67 2,171,775,903.71 10,883,546,906.45 69,895,519.72 15,045,563,649.79
Beginning 1,769,934,794.01 95,310,816.28 72,640.57 2,502,640,147.79 78,426,857.03 4,446,385,255.68
157
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
17. Goodwill
2023
Beginning Addition Deduction Ending balance
balance
Hebei Changan Automobile Co., Ltd. 9,804,394.00 - - 9,804,394.00
Nanjing Changan Automobile Co., Ltd. - - - -
DEEPAL Automotive Technology Co., Ltd. - 1,800,926,049.16 1,800,926,049.16
Total 9,804,394.00 1,800,926,049.16 1,810,730,443.16
The movement of provision for goodwill is as follow:
2023 and 2022
Beginning balance Addition Deduction Ending balance
Nanjing Changan Automobile Co., Ltd. 73,465,335.00 - - 73,465,335.00
Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., provision for related
goodwill has been fully accrued and amounted to RMB73,465,335.00.
18. Long-term deferred expenses
Beginning balance Addition Deduction Ending balance
2023 26,375,422.17 1,357,462.16 3,570,664.27 24,162,220.06
2022 15,032,814.19 15,184,585.04 3,841,977.06 26,375,422.17
19. Deferred tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities that are not offset:
2023 2022
Deferred tax assets Deductible Deferred tax assets Deductible Deferred tax assets
temporary temporary
differences differences
Assets provision 3,326,010,289.07 505,667,423.10 3,278,951,051.51 491,238,489.39
Accrued expenses and
contingent liabilities 9,745,432,595.40 1,478,634,793.00 8,585,308,052.56 1,298,584,169.65
Unpaid tech development
expense and advertisement
expense 108,882,829.52 16,332,424.43 372,397,166.51 55,859,574.98
Deferred income 3,143,730,047.41 516,280,314.00 2,699,509,959.27 457,007,113.15
Unpaid salary and bonus and
others 5,069,078,308.78 762,158,961.20 4,933,440,721.02 741,142,942.18
Total 21,393,134,070.18 3,279,073,915.73 19,869,606,950.87 3,043,832,289.35
2023 2022
Deferred tax liabilities： Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
158
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Available-for-sale financial
assets on the changes in
fair value recorded in
capital reserve 271,136,632.22 40,670,494.83 358,180,218.36 53,727,032.75
Fair value adjustment of
business combination not
under common control 9,077,843,422.40 1,361,676,513.36 204,733,319.00 30,709,997.85
Long-term equity
investment 1,053,139,619.28 157,970,942.89 971,329,619.28 145,699,442.89
Other 234,662,947.30 36,576,889.00 133,866,716.92 21,733,246.50
Total 10,636,782,621.20 1,596,894,840.08 1,668,109,873.56 251,869,720.00
Deferred income tax assets and deferred income tax liabilities that are offset:
2023 2022
Items： Offset amount Balance of deferred Offset amount Balance of deferred
between deferred income tax assets or between deferred income tax assets or
income tax assets liabilities after income tax assets liabilities after
and liabilities offsetting and liabilities offsetting
Deferred tax assets 30,819,858.08 3,248,254,057.65 14,832,978.84 3,028,999,310.51
Deferred Tax Liability 30,819,858.08 1,566,074,982.00 14,832,978.84 237,036,741.16
Unrecognized deductible temporary differences and tax losses of unrecognized are as follows:
2023 2022
The deductible temporary difference 1,764,330,466.02 1,785,535,297.97
The deductible tax loss 10,207,352,860.58 3,908,340,793.95
Total 11,971,683,326.60 5,693,876,091.92
159
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
20. Deferred tax assets and liabilities (continued)
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize
the above deductible loss, no deferred tax assets have been recognized accordingly.
Maturity period for unrecognized deductible tax losses:
2023 2022
2023 719,486,343.29
2024 1,026,714,782.44 644,243,430.69
2025 1,484,227,541.07 669,056,651.63
2026 2,622,637,735.99 172,527,777.26
2027 2,162,063,388.55 14,762,188.38
2028 and beyond 2,911,709,412.53 1,688,264,402.70
Total 10,207,352,860.58 3,908,340,793.95
20. Other non current assets
2023 2022
Advance payment for engineering 450,000,000.00
Total 450,000,000.00
21. The assets with ownership or right restricted
2023 2022
Cash and cash equivalents 945,084,846.77 1,038,748,779.60
Note receivables 7,309,419,058.87 6,340,255,963.00
Intangible assets 42,203,917.80
Fixed assets 20,942,566.80
8,254,503,905.64 7,442,151,227.20
22. Short-term loans
Classification of short-term loans：
2023 2022
Credit loans 30,039,416.74
Mortgage loans 29,000,000.00
Total 30,039,416.74 29,000,000.00
As at 31 December 2023, the interest rates of the above loans were3.90%-4.50% (as at 31
160
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
December 2022: 4.60%-4.75%).
As at 31 December 2023, there was no overdue short-term loan (as at 31 December 2022: Nil).
23. Notes payable
2023 2022
Commercial acceptance bill 2,943,672,886.95 5,001,155,687.84
Bank acceptance bill 34,512,997,041.12 17,071,638,176.99
Total 37,456,669,928.07 22,072,793,864.83
As at 31 December 2023, there is no overdue unpaid notes payable (as at 31 December 2022: Nil)
24. Accounts payable
2023 2022
Accounts payable 38,289,947,321.45 29,449,664,138.75
As at 31 December 2023, there were no significant accounts payable aged over one year (as at 31
December 2022: Nil).
25. Advance payment
2023 2022
unearned rent 686,755.00
26. Contract liabilities/Advances from customers
2023 2022
Advance payment 6,780,177,101.71 4,808,762,223.46
Advance service payment 1,143,615,751.06 846,494,569.20
Total 7,923,792,852.77 5,655,256,792.66
161
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
27. Payroll payable
2023
Beginning Addition Deduction Ending balance
balance
Short term salary benefits 2,716,484,740.12 10,526,154,931.41 10,597,058,347.32 2,645,581,324.21
Defined contribution plans 88,857,749.73 914,289,145.67 915,891,050.74 87,255,844.66
Early retirement benefits 1,816,000.00 24,175,889.85 8,167,721.46 17,824,168.39
Total 2,807,158,489.85 11,464,619,966.93 11,521,117,119.52 2,750,661,337.26
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Short term salary benefits 2,474,414,390.26 8,829,988,102.78 8,546,570,667.33 41,347,085.59 2,716,484,740.12
Defined contribution plans 89,216,538.26 667,430,841.13 665,797,989.33 1,991,640.33 88,857,749.73
Early retirement benefits 2,940,000.00 2,323,630.24 3,447,630.24 - 1,816,000.00
Total 2,566,570,928.52 9,499,742,574.15 9,215,816,286.90 43,338,725.92 2,807,158,489.85
27. Payroll payable (continued)
Short term salary benefits：
2023
Beginning Addition Deduction Ending balance
balance
Salary, bonus, allowance
and subsidy 2,221,656,081.04 8,452,204,683.00 8,502,894,778.05 2,170,965,985.99
Employee benefit 50,756,371.68 382,215,686.12 412,846,663.88 20,125,393.92
Social insurance
Medical insurance 21,350,192.95 533,438,605.38 534,604,800.89 20,183,997.44
Industrial injury
insurance 11,102,522.24 59,402,870.38 59,750,558.36 10,754,834.26
Maternity insurance 1,395,744.99 2,761,057.26 2,232,733.92 1,924,068.33
Others 24,783,404.93 24,783,404.93
Housing accumulation fund 83,944,161.72 570,666,608.11 631,689,858.47 22,920,911.36
Labor fund and employee
education fund 326,279,665.50 500,682,016.23 428,255,548.82 398,706,132.91
162
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Total 2,716,484,740.12 10,526,154,931.41 10,597,058,347.32 2,645,581,324.21
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Salary, bonus, allowance
and subsidy 2,051,402,711.53 7,146,292,092.31 6,945,040,964.14 30,997,758.66 2,221,656,081.04
Employee benefit 50,630,435.22 386,349,815.91 386,037,939.85 185,939.60 50,756,371.68
Social insurance
Medical insurance 21,021,344.24 395,967,753.79 394,480,490.19 1,158,414.89 21,350,192.95
Industrial injury
insurance 11,118,683.26 40,723,587.86 40,684,896.28 54,852.60 11,102,522.24
Maternity insurance 1,382,325.53 1,172,637.29 1,159,217.83 - 1,395,744.99
Housing accumulation
fund 82,772,742.30 491,467,767.44 488,154,268.15 2,142,079.87 83,944,161.72
Labor fund and employee
education fund 256,086,148.18 368,014,448.18 291,012,890.89 6,808,039.97 326,279,665.50
Total 2,474,414,390.26 8,829,988,102.78 8,546,570,667.33 41,347,085.59 2,716,484,740.12
27. Payroll payable (continued)
Defined contribution plans：
2023
Beginning Addition Deduction Ending balance
balance
Basic retirement
security 79,031,084.59 885,375,217.34 886,518,169.93 77,888,132.00
Unemployment
insurance 9,826,665.14 28,913,928.33 29,372,880.81 9,367,712.66
Total 88,857,749.73 914,289,145.67 915,891,050.74 87,255,844.66
2022
Beginning Addition Deduction Other Ending balance
balance Deduction
Basic retirement 79,483,988.05 646,286,750.65 644,976,261.42 1,763,392.69 79,031,084.59
163
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
security
Unemployment
insurance 9,732,550.21 21,144,090.48 20,821,727.91 228,247.64 9,826,665.14
Total 89,216,538.26 667,430,841.13 665,797,989.33 1,991,640.33 88,857,749.73
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned
above are paid in time according to related laws and regulations and sets of the Group.
28. Taxes payable
2023 2022
Value-added tax 366,815,941.84 655,162,944.40
Consumption tax 307,949,880.80 378,822,293.63
Corporate income tax 1,136,075,075.53 550,250,134.24
City maintenance and construction tax and 51,726,243.42 106,797,577.85
education surcharge
Others 66,156,765.79 58,913,132.20
Total 1,928,723,907.38 1,749,946,082.32
164
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Other payables
2023 2022
Purchase and construction of fixed assets, intangible
1,550,681,604.04 1,190,478,260.12
assets and engineering deposits
Customer and supplier margin 874,043,416.71 839,653,876.07
Advanced receipt of land and plant disposal fees 150,000,000.00 635,268,035.18
Treasury stock repurchase 382,277,095.96 627,060,416.52
Advertisement fees 648,229,494.43 505,569,065.16
Storage fees and freight 488,072,948.00 382,409,902.25
Maintenance fees 295,480,247.86 278,765,596.52
Capital increase from third parties received in advance
138,398,550.00 697,956,559.00
by subsidiaries
Others 1,353,699,155.97 925,604,713.85
Total 5,880,882,512.97 4,562,626,344.69
30. Non-current liability within 1 year
2023 2022
Long-term loan within 1 year 4,000,000.00 604,000,000.00
Defined benefit plans that expire within 1 year 1,190,000.00
Long-term payables within 1 year 244,429,325.65
Lease liabilities within 1 year 74,887,042.88 37,294,575.69
80,077,042.88 885,723,901.34
165
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
31. Other current liabilities
2023 2022
Accrued commercial discount payable 5,277,859,952.56 3,837,216,057.38
Accrued market development expense 1,229,871,896.85 1,004,950,610.70
Accrued transportation fee 428,540,512.92 728,264,657.72
Accrued technology royalty 712,779,170.48 534,463,454.23
Accrued labor service fee 52,021,714.94 107,051,967.02
Accrued negative points for fuel consumption 76,611,049.98 59,308,609.28
Others 1,120,252,102.19 355,789,311.29
Total 8,897,936,399.92 6,627,044,667.62
32. Long-term Loan
2023 2022
Net long-term borrowings 72,000,000.00 36,000,000.00
As at 31 December 2023, the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).
As at 31 December 2023, there is no overdue long-term loans (as at 31 December 2022: Nil).
33. Bonds Payable
2023 2022
Corporate Bonds 999,607,547.16 999,528,301.88
In December 2023, the Company publicly issued technology innovation corporate bonds (Phase I) to professional investors,
with a face value of RMB1,000,000,000.00, a coupon rate of 3%, simple interest payable annually, the interest payment
date is December 20 of each year from 2023 to 2027, and the final redemption date is December 20, 2027.
34. Lease liabilities
2023 2022
Lease liabilities 209,141,440.95 97,499,973.67
Less：Lease liabilities within 1 year 74,887,042.88 37,294,575.69
134,254,398.07 60,205,397.98
166
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
35. Long-term payables
2023 2022
Long-term payables 804,264,787.97 408,939,511.34
Special payables 148,181,330.60 144,579,238.78
Total 952,446,118.57 553,518,750.12
Long-term payables:
2023 2022
Accounts payable for construction projects on
behalf of others 804,264,787.97
Purchase of fixed assets 653,368,836.99
Less：Long-term payables within 1 year 244,429,325.65
Total 804,264,787.97 408,939,511.34
Special payables:
2023
Beginning Addition Deduction Ending
Intelligent manufacturing project 54,122,972.00 106,346,500.00 81,350,954.74 79,118,517.26
Lightweight design of automobile structure 14,410,557.94 7,640,605.31 6,769,952.63
Others 76,045,708.84 53,178,952.56 66,931,800.69 62,292,860.71
Total 144,579,238.78 159,525,452.56 155,923,360.74 148,181,330.60
2022
Beginning Addition Deduction Ending
Land relocation compensation of Nanjing
changan 55,350,709.40 - 55,350,709.40 -
Intelligent manufacturing project 82,777,201.36 6,169,200.00 34,823,429.36 54,122,972.00
Lightweight design of automobile structure 18,903,766.50 4,900,000.00 9,393,208.56 14,410,557.94
Others 25,928,275.13 71,133,518.47 21,016,084.76 76,045,708.84
Total 182,959,952.39 82,202,718.47 120,583,432.08 144,579,238.78
167
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
36. Long-term payroll payable
2023 2022
Net obligation of defined benefit plan 26,880,000.00 29,227,000.00
Early retirement 3,534,000.00 5,786,000.00
Total 30,414,000.00 35,013,000.00
In addition to basic retirement security and unemployment insurance, which are managed by local
government, the Group offers different kinds of overall pension and annual compensation to some
retired employees until their death. The Group provides subsidies to former military personnel who
participated in specific wars and offers large medical treatment insurance for all retired personnel. The
Group also offered early-retired salary, social insurances and housing accumulation fund with different
standards until their formal retirement (Male: Age 60; Female: Age 50 or 55). These amounts of social
insurances and housing accumulation fund are based on cost base and statutory proportion.
The present value of the defined benefits plans is valued by expected cumulative welfare units
determination, which was ensured by Aon Enterprise Solutions Shanghai Co Ltd. at 31 December 2023.
The related plans recognized in the profit and loss of the defined benefit plan are as follows:
2023 2022
Service costs- current period 57,000.00 56,000.00
Net interest -940,000.00 818,000.00
Net post-employment benefit costs -908,000.00 874,000.00
Recorded in general administrative expenses -908,000.00 874,000.00
Movement of present value of defined benefits plan is as follows:
Defined Benefit Plan Obligation
2023 2022
Beginning balance 29,227,000.00 30,917,000.00
Charged to income Statement of the current period
Service costs- current period 313,000.00 56,000.00
Interest expense, net -940,000.00 818,000.00
Actuarial losses charged to other
comprehensive income -540,000.00 -112,000.00
Benefits Payment -899,000.00 -2,452,000.00
Ending balance 26,880,000.00 29,227,000.00
168
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
37. Accrued liabilities
2023
Beginning Addition Deduction Ending
Warranty 4,152,001,660.31 2,893,224,624.23 1,068,664,474.45 5,976,561,810.09
Contingent liabilities of
contract performance 437,297,661.18 51,551,251.31 188,369,305.79 300,479,606.70
Total 4,589,299,321.49 2,944,775,875.54 1,257,033,780.24 6,277,041,416.79
2022
Beginning Addition Deduction Ending
Warranty 3,295,272,783.50 1,595,486,879.87 738,758,003.06 4,152,001,660.31
Contingent liabilities of
contract performance 543,742,894.34 26,346,680.32 132,791,913.48 437,297,661.18
Total 3,839,015,677.84 1,621,833,560.19 871,549,916.54 4,589,299,321.49
38. Deferred income
2023
2022.12.31 Addition Deduction Other deduction 2023.12.31
Government grants
related to assets 166,416,924.2 619,538,720.00 175,548,473.12 248,266,726.10
Government grants
related to gains 181,151,625.42 - 72,718,252.98 108,433,372.44
347,568,549.62 619,538,720.00 248,266,726.10 718,840,543.52
2022
2021.12.31 Addition Deduction Other deduction 2022.12.31
Government grants
related to assets 224,903,605.46 129,752,557.11 188,239,238.37 - 166,416,924.2
Government grants
related to gains 699,846,125.66 - 299,235,506.09 219,458,994.15 181,151,625.42
924,749,731.12 129,752,557.11 487,474,744.46 219,458,994.15 347,568,549.62
As at 31 December 2023, details of liabilities related to government grants are as follows:
2022.12.31 Addition Deduction 2023.12.31
169
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Related to assets: 166,416,924.20 619,538,720.00 175,548,473.12 610,407,171.08
Production and
construction 166,416,924.20 619,538,720.00 175,548,473.12 610,407,171.08
subsidies
Related to gains: 181,151,625.42 72,718,252.98 108,433,372.44
R&D technology
121,750,757.27 44,099,593.29 77,651,163.98
subsidies
Other government
59,400,868.15 28,618,659.83 59,400,868.15
subsidies
Total 347,568,549.62 619,538,720.00 248,266,726.10 718,840,543.52
39. Other non-current liabilities
2023 2022
Advance service payment 1,497,773,818.69 882,226,966.14
170
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
40. Share capital
2023
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1 Shares held by state-owned legal
persons 515,311,738.00 - - 515,311,738.00
2 Other domestic
shareholdings 159,248,366.00 - - 159,248,366.00
Including：
shares held by
domestic legal persons - - - -
shares held by
domestic natural persons 159,248,366.00 - - 159,248,366.00
3 Foreign shareholdings 1,215,370.00 - - 1,215,370.00
Total of restricted shares 675,775,474.00 - - 675,775,474.00
II. Unrestricted shares
1 RMB ordinary shares 7,604,409,171.00 - - 4,510,389.00 4,510,389.00 7,599,898,782.00
2 Foreign-funded shares listed
domestically 1,641,614,777.00 - - 1,641,614,777.00
Total of unrestricted shares 9,246,023,948.00 - - 4,510,389.00 4,510,389.00 9,241,513,559.00
III. Total shares 9,921,799,422.00 - - 9,917,289,033.00
171
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1 Shares held by state-owned legal
persons 396,393,645.00 - - 118,918,093.00 - 118,918,093.00 515,311,738.00
2 Other domestic
shareholdings 122,490,320.00 - - 36,747,096.00 10,950.00 36,758,046.00 159,248,366.00
Including：
shares held by
domestic legal persons - - - - - - -
shares held by
domestic natural persons 122,490,320.00 - - 36,747,096.00 10,950.00 36,758,046.00 159,248,366.00
3 Foreign shareholdings 934,900.00 - - 280,470.00 - 280,470.00 1,215,370.00
Total of restricted shares 519,818,865.00 - - 155,945,659.00 10,950.00 155,956,609.00 675,775,474.00
II. Unrestricted shares
1 RMB ordinary shares 5,849,553,939.00 - - 1,754,866,182.00 (10,950.00 ) 1,754,855,232.00 7,604,409,171.00
2 Foreign-funded shares listed
domestically 1,262,780,598.00 - - 378,834,179.00 - 378,834,179.00 1,641,614,777.00
Total of unrestricted shares 7,112,334,537.00 - - 2,133,700,361.00 (10,950.00 ) 2,133,689,411.00 9,246,023,948.00
III. Total shares 7,632,153,402.00 - - 2,289,646,020.00 - 2,289,646,020.00 9,921,799,422.00
172
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
41. Capital reserves
2023
Beginning Addition Deduction Ending
Share premium 6,485,177,332.59 333,258,382.40 14,067,193.00 6,804,368,521.99
Share-based payments 648,749,767.92 362,576,400.00 333,258,382.40 678,067,785.52
Capital reserve
transferred arising
from the old
standards 44,496,899.00 - - 44,496,899.00
Restricted capital
reserve of equity
investments 17,015,985.20 - - 17,015,985.20
Others (Note 1) 1,337,366,701.06 33,537,855.64 663,566,110.70 707,338,445.99
Total 8,532,806,685.77 729,372,638.03 1,010,891,686.10 8,251,287,637.70
2022
Beginning Addition Deduction Ending
Share premium 8,774,823,352.59 - 2,289,646,020.00 6,485,177,332.59
Share-based payments 268,539,867.92 380,209,900.00 - 648,749,767.92
Capital reserve
transferred arising
from the old
standards 44,496,899.00 - - 44,496,899.00
Restricted capital
reserve of equity
investments 17,015,985.20 - - 17,015,985.20
Others (Note 1) 671,317,255.67 666,049,445.39 - 1,337,366,701.06
Total 9,776,193,360.38 1,046,259,345.39 2,289,646,020.00 8,532,806,685.77
42. Treasury stock
2023
Beginning Addition Deduction Ending
Treasury stock 627,060,416.52 - 244,783,320.56 382,277,095.96
2022
Beginning Addition Deduction Ending
Treasury stock 655,812,327.60 - 28,751,911.08 627,060,416.52
173
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
43. Other comprehensive income
Accumulated other comprehensive income in consolidated balance sheet attributable to parent
company is as follows:
2023
2022.12.31 Movement 2023.12.31
Re-measurement of changes in defined
benefit plans -185,000.00 540,000.00 355,000.00
Other comprehensive income that cannot be
transferred to profit or loss under the
equity method -2,765,221.82 -1,454,051.91 -4,219,273.73
Other comprehensive income on convertible
gains and losses under the equity method 75,815.98 -75,815.98
Changes in the fair value of other equity
instrument investments 160,120,620.00 12,104,070.30 172,224,690.30
Translation difference of foreign currency
financial statements -58,252,966.78 8,287,150.23 -50,041,632.53
Total 98,841,615.42 19,477,168.62 118,318,784.04
2022
2021.12.31 Movement 2022.12.31
Re-measurement of changes in defined
benefit plans (297,000.00) 112,000.00 (185,000.00 )
Other comprehensive income that cannot be
transferred to profit or loss under the
equity method (3,368,053.89) 602,832.07 (2,765,221.82 )
Other comprehensive income on convertible
gains and losses under the equity method - (75,815.98) (75,815.98 )
Changes in the fair value of other equity
instrument investments 169,861,280.00 (9,740,660.00) 160,120,620.00
Translation difference of foreign currency
financial statements (96,753,756.58) 38,500,789.80 (58,252,966.78 )
Total 69,442,469.53 29,399,145.89 98,841,615.42
174
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
41. Other comprehensive income (continued)
Current occurrence amount of other comprehensive income in consolidated income statement attributable to parent company:
2023
Amount before tax Deduct: amounts Deduct: amounts Deduct: Income Amount attributable to Amount attributable
transferred to income transferred to tax owners to minority interests
statement which were retained earnings
recognized in other which were
comprehensive income recognized in other
in prior period comprehensive
income in prior
period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan 540,000.00 - - - 540,000.00 -
Other comprehensive income that cannot be transferred to profit or loss under the equity
method -1,454,051.91 - - - -1,454,051.91 -
Fair value change of Investment in other
equity instruments 14,240,082.71 - 2,136,012.41 12,104,070.30 -
Subtotal 13,326,030.80 - 2,136,012.41 11,190,018.39 -
Other comprehensive income will be reclassified to profit or loss in subsequent period -
Other comprehensive income which can convert to gain and loss under the equity method
Foreign currency translation difference 8,287,150.23 - 8,287,150.23
Subtotal 8,287,150.23 - 8,287,150.23
Total 21,613,181.03 ) 2,136,012.41 19,477,168.62
175
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Amount before tax Deduct: amounts Deduct: amounts Deduct: Income Amount attributable to Amount attributable
transferred to income transferred to tax owners to minority interests
statement which were retained earnings
recognized in other which were
comprehensive income recognized in other
in prior period comprehensive
income in prior
period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan (112,000.00 ) - - - (112,000.00 ) -
Other comprehensive income that cannot be transferred to profit or loss under the equity
method (602,832.07 ) - - - (602,832.07 ) -
Fair value change of Investment in other
equity instruments 5,500,000.00 - (5,065,660.00 ) 825,000.00 9,740,660.00 -
Subtotal 4,785,167.93 - (5,065,660.00 ) 825,000.00 9,025,827.93 -
Other comprehensive income will be reclassified to profit or loss in subsequent period -
Other comprehensive income which can convert to gain and loss under the equity method 75,815.98 - - - 75,815.98 -
Foreign currency translation difference (37,775,975.99 ) 722,897.12 - - (38,500,789.80 ) 1,916.69
Subtotal (37,700,160.01 ) 722,897.12 - - (38,424,973.82 ) 1,916.69
Total (32,914,992.08 ) 722,897.12 (5,065,660.00 ) 825,000.00 (29,399,145.89 ) 1,916.69
176
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
44. Special reserves
2023
Beginning Addition Deduction Ending
Safety fund 24,090,898.05 126,209,917.06 95,977,484.77 54,323,330.34
2022
Beginning Addition Deduction Ending
Safety fund 27,988,260.61 104,696,987.95 108,594,350.51 24,090,898.05
45. Surplus reserves
2023
Beginning Addition Deduction Ending
Statutory surplus 3,528,137,635.53 748,080,862.37 - 4,276,245,864.64
2022
Beginning Addition Deduction Ending
Statutory surplus 2,982,292,413.67 545,845,221.86 - 3,528,137,635.53
177
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
46. Retained earnings
2023 2022
Retained earnings at beginning of the year 41,379,965,149.07 35,900,674,525.13
Adjusting the total undistributed profits at the beginning
of the year (increase+, decrease -) 152,935.82
Add: Profits attributable to parent company for the
current year 11,327,463,013.15 7,798,785,367.38
Add: Other comprehensive income transferred to
retained earnings 5,065,660.00
Less: Appropriation to statutory surplus reserves 748,080,862.37 545,857,147.72
Less: Ordinary share dividend of cash 2,341,414,868.12 1,778,856,191.54
Retained earnings at the end of year 49,617,932,431.73 41,379,965,149.07
47. Operating revenue and cost
2023 2022
Revenue Cost Revenue Cost
Main business 148,183,136,224.90 121,653,251,310.51 117,565,143,198.95 94,573,428,488.62
Other business 3,114,570,422.07 1,869,405,043.21 3,687,720,886.45 1,836,182,385.14
Total 151,297,706,646.97 123,522,656,353.72 121,252,864,085.40 96,409,610,873.76
Operating revenue listed as follows:
2023 2022
Revenue generated from customer contracts 150,837,473,020.25 120,838,238,851.66
Provide labor and other services 460,233,626.72 414,625,233.74
Total 151,297,706,646.97 121,252,864,085.40
The breakdown of operating revenue generated from contracts with customers is as follows:
178
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
45. Operating revenue and cost (continued)
Revenue generated from customer contracts：
2023 2022
Revenue recognition time
Recognize revenue at a certain point in
time 149,806,264,812.48 120,203,760,630.11
Recognize revenue within a certain period
of time 1,031,208,207.77 634,478,221.55
Total 150,837,473,020.25 120,838,238,851.66
The income recognized in the current year and included in the book value of contract liabilities
at the beginning of the year is as follows:
2023 2022
Sales of goods 145,303,581,062.21 114,066,406,439.25
Provision of services and others 5,533,891,958.04 6,771,832,412.41
Total 150,837,473,020.25 120,838,238,851.66
The estimated time when the total transaction price that has not been fulfilled (or partially
fulfilled) performance obligations allocated to the end of the year is recognized as revenue is as
follows:
2023 2022
Domestic 130,301,011,943.81 107,426,791,857.44
overseas 20,536,461,076.44 13,411,446,994.22
Total 150,837,473,020.25 120,838,238,851.66
48. Tax and surcharges
2023 2022
Consumption tax 3,689,083,562.44 3,022,759,216.21
City maintenance and construction tax 416,207,782.33 454,863,299.03
Educational surcharge 180,693,475.51 229,702,527.01
Others 472,441,461.42 394,522,780.25
Total 4,758,426,281.70 4,101,847,822.50
179
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
49. Operating expenses
2023 2022
Sales service fee 3,435,342,406.81 2,132,352,506.82
Promotion, advertising fee 2,685,049,398.19 1,760,645,464.70
Payroll and welfare 754,840,131.95 718,415,703.07
Transportation and storage fees 426,167,063.06 296,302,707.75
Travelling expenses 128,037,954.91 71,192,697.52
Package expenses 34,279,133.27 42,180,208.06
Consulting fee 25,208,016.75 31,870,498.85
Training fee 37,558,797.59 27,499,082.32
Others 118,722,690.35 57,811,293.86
Total 7,645,205,592.88 5,138,270,162.95
50. General and administrative expenses
2023 2022
Payroll and welfare 2,510,857,635.06 2,361,704,245.03
Share-based payments 362,576,400.00 380,209,900.00
Administrative expenses 533,464,030.04 342,662,496.31
Depreciation and amortization 506,232,270.50 209,021,291.13
Traffic expenses 50,337,862.88 54,685,498.40
Travelling expenses 31,365,995.19 7,465,840.51
Others 102,703,336.00 176,708,927.38
Total 4,097,537,529.67 3,532,458,198.76
51. Research and development expenses
2023 2022
Payroll and welfare 1,751,875,403.13 1,744,089,751.78
Depreciation and amortization 2,235,391,711.61 1,221,653,901.00
Subcontract fee 844,870,793.73 580,052,391.93
Material fee 617,867,191.88 192,475,951.44
Test fee 186,414,711.98 109,549,382.65
Others 343,424,840.90 467,623,485.96
Total 5,979,844,653.23 4,315,444,864.76
180
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
52. Financial income
2023 2022
Interest income 1,172,272,116.20 1,014,346,758.69
Less: Foreign exchange gain or loss 169,367,527.65 -79,104,476.10
Interest expense 65,658,308.92 48,683,490.36
Others 39,902,539.83 27,462,001.35
Total -897,343,739.80 -1,017,305,743.08
53. Other income
2023 2022 Amount recognized in
2021 as non-recurring
profit and loss
Government subsidies related to
daily activities 1,644,319,505.04 529,819,888.31 1,644,319,505.04
Government subsidies related to daily activities are as follows:
2023 2022
Production and construction subsidies 935,787,265.00 385,172,523.26
Other government subsidies 708,532,240.04 144,647,365.05
1,644,319,505.04 529,819,888.31
54. Investment income
2023 2022
Long-term equity investment income/(loss)
accounted for by the equity method -2,201,515,632.81 -3,060,648,491.82
The investment income of financial asset
held for trading during its holding period 1,406,842.07 3,289,610.51
Dividend income from remaining investments
in other equity instruments 206,042,574.04 160,088,164.16
Investment income from disposal of
long-term equity investments 1.00
Investment income obtained from the
disposal of trading financial assets 18,106,159.85
Business combination 5,021,482,128.74
Gains from the remeasurement of the
remaining equity at fair value
after the loss of control 2,128,313,646.36
Others 4,890,972.21 -
Total 3,050,413,045.10 -768,957,070.79
181
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
55. Fair value change
2023 2022
Financial assets held for trading -19,061,189.53 3,570,229.29
56. Impairment loss of credit
2023 2022
Bad debt for account receivable 48,168,990.90 30,511,950.73
Bad debt for other receivables -1,426,874.99 1,730,059.54)
Total 46,742,115.91 32,242,010.27
57. Impairment loss on assets
2023 2022
Impairment of inventory 248,550,585.56 284,897,475.48
Impairment of contract assets 236,406,130.60 119,820,417.81
Impairment of fixed assets 252,935,096.10 473,400,524.41
Impairment of intangible assets 70,593,040.66 66,201,964.50
Impairment of construction in progress 5,343,493.61 1,533,334.00
Total 813,828,346.53 945,853,716.20
58. Gain on disposal of assets
Amount recognized
in 2023 as
non-recurring profit
2023 2022 and loss
Gain on disposal of intangible assets 431,533,750.49 74,862,481.00 431,533,750.49
Gain on disposal of fixed-assets 9,461,986.74 9,461,986.74
Total 440,995,737.23 74,862,481.00 440,995,737.23
182
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
59. Non-operating income
Amount recognized
in 2023 as
non-recurring profit
2023 2022 and loss
Fines, penalties and others 169,793,538.35 128,910,416.79 169,793,538.35
60. Non-operating expenses
Amount recognized in
2023 as non-recurring
2023 2022 profit and loss
Donation 23,663,690.00 19,172,451.80 23,663,690.00
Fines and penalties 4,073,147.35 1,168,042.33 4,073,147.35
Others 336,554.48 34,050,545.66 336,554.48
Total 28,073,391.83 54,391,039.79 28,073,391.83
183
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
61. Income tax expense
2023 2022
Current income tax expense 1,450,814,903.31 689,928,709.52
Deferred income tax expense -363,517,186.79 -726,353,981.40
Total 1,087,297,716.52 -36,425,271.88
The relationship between income tax expense and profit/(loss) before tax is as follows:
2023
Profit before tax 10,589,196,757.49
Tax at the applicable tax rate 1,588,379,513.62
Impact of different tax rates of subsidiaries 55,937,616.85
Adjustments to current income tax of previous period -16,714,286.64
Non-taxable income 183,906,215.55
Non-deductible tax expense 1,905,984.77
Usage previous deductible losses -67,491,591.34
Unrecognized deductible temporary differences and
deductible losses 77,420,652.42
Additional deduction arising from research and
development expense -749,436,146.91
Others 13,389,758.20
Tax expense under actual tax rate of the Group 1,087,297,716.52
184
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
62. Earnings per share (“EPS”)
2023 2022
Basic EPS
Going concern 1.15 0.80
Diluted EPS
Going concern 1.13 0.78
The basic EPS is calculated by dividing the net profit of the current period attributable to the
ordinary shareholders of the Company by the weighted average number of outstanding ordinary
shares.
The numerator of diluted earnings per share is determined based on the current net profit
attributable to the ordinary shareholders of the company after adjusting the following factors:
(1) the interest of diluted potential ordinary shares that have been recognized as expenses in the
current period; (2) The proceeds or expenses that will be incurred upon conversion of diluted
potential ordinary shares; (3) the income tax impact related to the above adjustment.
The denominator of diluted earnings per share is equal to the sum of the following two items: (1)
the weighted average number of ordinary shares issued by the parent company in the basic
earnings per share; (2) the weighted average number of ordinary shares increased by assuming
the conversion of diluted potential ordinary shares into ordinary shares.
When calculating the weighted average number of ordinary shares increased by the conversion
of diluted potential ordinary shares into issued ordinary shares, the diluted potential ordinary
shares issued in previous periods are assumed to be converted at the beginning of the current
period; Diluted potential ordinary shares issued in the current period are assumed to be
converted on the issuance date. In 2023, the restricted stock incentive plan implemented by the
company diluted earnings per share.
63. Notes to cash flow statement
(1) Items of cash received relating to other operating activities are as follows:
2023 2022
Interest income 1,172,272,116.20 1,014,346,758.69
Government grants 1,841,460,063.44 711,835,358.28
Others 344,581,255.97 715,500,477.90
Total 3,358,313,435.61 2,441,682,594.87
185
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
62. Notes to cash flow statement (continued)
(2) Items of cash paid relating to other operating activities are as follows:
2023 2022
Selling expense 6,878,810,680.77 4,057,275,191.41
Administrative expense 717,871,224.11 594,849,261.20
Research and development expenses 1,992,577,538.50 951,048,522.32
Others 1,344,892,685.88 762,523,853.82
Total 10,934,152,129.26 6,365,696,828.75
(3) Items of cash received relating to other investing activities are as follows:
2023 2022
Business Combination 6,216,944,276.29
Total 6,216,944,276.29
(4) Items of cash received relating to other investing activities are as follows:
2023 2022
Fixed deposit 8,000,000,000.00
Cash transferred out from the loss of
control of the subsidiary 815,126,333.76
(5) Items of cash received relating to other financing activities are as follows:
2023 2022
Withdraw for deposit of bill 863,425,006.28 1,705,726,148.77
(6) Items of cash paid relating to other financing activities are as follows:
2023 2022
Payment for deposit of bill 17,925,527.40 328,638,801.53
Repurchase restricted share
Others 65,147,042.33 43,924,444.07
Total 83,072,569.73 372,563,245.60
186
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
64. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Cash flows from operating activities calculated by adjusting the net profit:
2023 2022
Net profit 9,501,899,040.97 7,745,026,102.60
Add: Impairment provision for assets 860,570,462.44 978,095,726.47
Depreciation of fixed assets 2,991,918,878.33 2,837,042,619.12
Right-of-use assets depreciation 70,896,183.37 29,882,264.96
Depreciation and amortization of investment
property 226,711.56 226,711.56
Amortization of intangible assets 2,232,311,060.45 1,045,661,359.97
Amortization of long-term deferred expense 3,570,664.27 3,841,977.06
Disposal income on fixed assets, intangible
assets and others
long-term assets -440,995,737.23 -74,862,481.00
Loss/(income) of abandonment of fixed assets 4,891.17
Income of fair value movement 19,061,189.53 -3,570,229.29
Financial expense 156,147,198.25 8,976,404.49
Investment income/(loss) -3,050,413,045.10 768,957,070.79
Increase in deferred tax assets -219,254,747.14 -748,011,416.82
Increase/(decrease) in inventory -7,706,466,368.68 744,669,432.21
Deferred income tax liabilities Increased/(decreased) -144,262,439.65 21,313,688.79
Increase/(decrease) in operating receivables -1,687,114,693.11 -10,855,537,441.91
Increase in operating payables 17,273,366,988.13 3,164,635,069.52
Net cash flows from operating activities 19,861,466,237.56 5,666,346,858.52
Movement of cash and cash equivalents:
Ending balance of cash 63,925,957,901.11 52,491,435,047.74
Less: beginning balance of cash 52,491,435,047.74 49,517,916,834.99
Increase in cash and cash equivalents 11,434,522,853.37 2,973,518,212.75
187
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
64. Supplementary information of cash flow statement (continued)
(2) Net cash paid for acquiring subsidiaries in this period:
2023 2022
Net cash received from subsidiaries -6,216,944,276.29
(3) Cash and cash equivalents
2023 2022
Cash
Including: Cash 35,257.05 32,155.77
Bank deposits that can be readily used 63,902,699,987.48 52,455,913,791.28
Other cash and cash equivalents that can be
23,222,656.58 35,489,100.69
readily used
Cash equivalents
Ending balance of cash and cash equivalents 63,925,957,901.11 52,491,435,047.74
Note: The restricted cash and cash equivalents of the Group are not included in the cash and
cash equivalents.
65. Foreign Monetary Item
2023
Exchange Translated to
Original Currency
Rate RMB
Cash 775,543,757.76
USD 27,673,169.85 7.0827 196,000,760.10
EUR 10,732,881.24 7.8592 84,351,860.24
GBP 4,076,378.88 9.0411 36,854,949.09
RUB 4,115,101,447.98 0.0803 330,442,646.27
THB 586,060,854.78 0.2074 121,549,021.28
JPY 126,384,876.00 0.0502 6,344,520.78
Accounts receivable 227,291,127.63
USD 32,091,028.51 7.0827 227,291,127.63
Other receivables 53,011,478.72
GBP 1,340,852.36 9.0411 12,122,780.27
EUR 5,027,057.30 7.8592 39,508,648.73
USD 100,559.00 7.0827 712,229.23
JPY 13,303,197.00 0.0502 667,820.49
Accounts Payable 134,371,726.09
RUB 1,246,829,072.52 0.0803 100,120,374.52
JPY 20,714,693.00 0.0502 1,039,877.59
EUR 4,199,560.51 7.8592 33,005,185.96
USD 3,830.58 7.0827 27,130.85
GBP 19,815.86 9.0411 179,157.17
Other Payables 2,321,563.33
188
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
USD 27,470.66 7.0827 194,566.44
EUR 235,258.64 9.0411 2,126,996.89
66. Lease arrangements
(1) As lessor
The income related to operating leases are listed as follows:
2023 2022
Leasehold Income 460,233,626.72 414,625,233.74
According to the lease contract signed with the lessee, the minimum lease collection
amount of irrevocable lease is as follows:
2023 2022
Less than 1 year (including 1 year) 388,255,072.48 485,069,034.35
1 to 2 years (including 2 years) 260,689,384.89 393,916,228.04
2 to 3 years (including 3 years) 130,967,274.89 258,908,078.26
3 to 4 years (including 3 years) 34,577,303.73 116,180,073.26
4 to 5 years (including 3 years) 26,810,816.32 33,175,628.20
Over 5 years 1,506,050.47 25,435,140.79
842,805,902.78 1,312,684,182.90
(2) As lessee
2023 2022
Interest expense of lease liabilities 9,034,012.98 3,315,624.26
Short term lease expenses with simplified treatment
included in current profit and loss 78,849,902.44 68,405,663.80
Lease expense of low value assets with simplified
treatment included in current profit and loss 920,517.27 3,208,292.72
Total cash outflow related to leasing 98,885,795.36 96,132,331.89
VI Research and development expenses
2023 2022
Employee Benefits 3,556,084,891.96 2,183,744,717.61
Depreciation and amortization 2,237,878,184.31 1,221,653,901.00
189
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Outsourcing fees 1,216,189,214.55 1,038,910,329.94
Material costs 749,129,534.46 215,645,999.38
Test fee 557,428,126.11 446,674,285.17
Others 690,840,581.50 571,178,735.26
Total 9,007,550,532.89 5,677,807,968.36
2023
Beginning balance Addition Addition Deduction Ending balance
Internal research and Business Other
development combination Recognized as intangible assets deduction
Automobile
Development 723,211,177.47 568,748,628.02 3,027,705,879.66 2,018,394,526.72 59,450,601.737 2,241,820,556.70
2022
Beginning balance Addition Deduction Ending balance
Internal research Recognized as Charged to income Other deduction
and development intangible assets Statement of the
current year
Automobile
Development 727,568,248.78 1,362,363,103.60 1,052,395,491.38 62,815,604.46 251,509,079.07 723,211,177.47
190
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
VIIChanges in the scope of consolidation
1. Mergers of enterprises not under the same control that occurred in this period
Equity
Time of acquis Equity Purcha Basis for Income of the purchased party from Net profit of the purchased party from Cash flow of the purchased party from
equity Cost of equity ition acquisition se determining the the purchase date to the end of the the purchase date to the end of the the purchase date to the end of the
acquisition acquisition ratio method date purchase date period period period
DEEPAL Automotive
Technology Co., 2023.2
Ltd. 2023.2.1 1,331,621,441.70 10.34 Cash .1 Acquiring control 25,882,512,213.36 -2,998,926,405.37 1,365,253,450.96
191
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
1. Mergers of enterprises not under the same control that occurred in this period
(Continued)
DEEPAL Automotive
Technology Co., Ltd.
Merge costs
—Cash 1,331,621,441.70
—Fair value of equity held before the purchase date on
the purchase date 5,248,006,233.55
Merge costs 6,579,627,675.25
decrease：Fair value share of identifiable net assets
acquired 4,778,701,626.09
Goodwill/merger cost less than the fair value share of
identifiable net assets acquired 1,800,926,049.16
The identifiable assets and liabilities of the purchased party on the purchase date:
Fair value Book value
Inventories 2,755,821,424.92 2,673,407,113.72
Fixed assets 448,453,376.58 436,567,361.38
Intangible assets 10,744,634,103.94 1,028,650,075.89
Other Current Assets 14,267,576,307.83 14,258,892,818.92
Other Non-Current Asset 1,592,032,100.39 1,593,696,147.48
Asset 29,808,517,313.66 19,991,213,517.39
current liabilities 18,995,437,442.81 18,995,437,442.81
Non current liabilities 1,485,143,844.91 13,850,798.81
liabilities 20,480,581,287.72 19,009,288,241.62
Net assets 9,327,936,025.94 981,925,275.77
192
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
VIII Shares in other entities
1. Shares in subsidiaries
The subsidiaries of the Company are as follows：
Company name Main Registered Nature of Registered Total proportion of
operating place business capital shareholders (%)
place (0,000)
direct indirect
I.The subsidiary formed by establish or investment
Chongqing Changan International Automobile Sales Co.,
Ltd. Chongqing Chongqing Sales 118,275.64 100.00 -
Chongqing Changan Connected Car Technology Co., Ltd. Chongqing Chongqing Lease 8,850.00 100.00 -
Chongqing Changan Special Automobile Co., Ltd.(note 2) Chongqing Chongqing Sales 2,000.00 50.00 -
Chongqing Changan Automobile Supporting Service Co., Ltd. Chongqing Chongqing Sales 3,000.00 99.00 1.00
Chongqing Changan New Energy Automobile Co. Ltd. Chongqing Chongqing R&D 2,900.00 100.00 -
Chongqing Changan Europe Design Academy Co., Ltd. Turin, Italy Turin, Italy R&D EUR1,738 100.00 -
Nottingham, Nottingham,
Changan United Kingdom R&D Center Co., Ltd. United United
Kingdom Kingdom R&D GBP2,639 100.00 -
Beijing Changan R&D Center Co., Ltd. Beijing Beijing R&D 100.00 100.00 -
Yokohama, Yokohama,
Changan Japan Designing Center Co.,Ltd.
Japan Japan R&D JPY1,000 100.00 -
Troy, United Detriot,
Changan United States R&D Center Co., Ltd.
states United states R&D USD154 100.00 -
Moscow,
Changan Automobile Russia Co., Ltd.
Moscow, Russia Russia Sales SUR220,382 100.00 -
Changan Automobile Investment (Shenzhen) Co., Ltd. Shenzhen Shenzhen Sales 23,789.00 100.00 -
Nanjing Changan New Energy Automobile Sales & Service Co.,
Ltd. Nanjing Nanjing Sales 5,000.00 100.00 -
Chongqing Anyi Automobile Technical Service Co., Ltd. Chongqing Chongqing Sales 200.00 100.00 -
Xiamen Changan New Energy Automobile Co. Ltd. Xiamen Xiamen Sales 200.00 100.00 -
Guangzhou Changan New Energy Automobile Co. Ltd. Guangzhou Guangzhou Sales 400.00 100.00 -
Chongqing Chehemei Technology Co., Ltd. Chongqing Chongqing Sales 1,000.00 100.00 -
Chongqing Changan Kaicheng Automobile Technology Co.,
Ltd. Chongqing Chongqing Sales 100,000.00 83.64 -
Chongqing Changan Automobile Software Technology Co.,
Ltd. Chongqing Chongqing R&D 9,900.00 100.00 -
Chongqing Xingzhi Technology Co., Ltd. Chongqing Chongqing Sales 4,900.00 100.00 -
Chongqing Changan Technology Co., Ltd. Chongqing Chongqing R&D 9,000.00 100.00 -
Chongqing ChanganXing Technology Co., Ltd. Chongqing Chongqing R&D 2,000.00 100.00 -
Nanjing Changan Automobile Co., Ltd. (note 1) Nanjing Nanjing Manufacturing 60,181.00 84.73 -
Chongqing Changan Lingyao Automobile Co., Ltd. Chongqing Chongqing Manufacturing 133,764.00 100.00 -
Manufacturing
DEEPAL Automotive Technology Co., Ltd Chongqing Chongqing 32,810.83 51,oo
Hefei Changan Automobile Co.,Ltd. Hefei Hefei Manufacturing 227,500.00 100.00 -
Note 1: The proportion of the company's voting rights in Nanjing Changan Automobile Co., Ltd. is 91.53%. The
reason for the inconsistency between the shareholding ratio and the proportion of voting rights is that
some minority shareholders entrust the company to exercise their voting rights.
Note 2: The remaining shareholders of Chongqing Changan Special Purpose Vehicle Co., Ltd. have signed the
"Concerted Acting Persons Agreement" with the company, all agreeing to vote in accordance with the
company's voting intentions, so the company can exercise control over it, so it is included in the scope
of consolidated financial report.
2. Important non wholly-owned subsidiaries
Closing balance of
Minority shareholder Profit and loss attributable to minority minority shareholders'
subsidiary shareholding ratio shareholders in the current period equity
DEEPAL Automotive
Technology Co., Ltd 49% -1,466,822,887.69 -963,121,538.83
193
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Main financial information of important non wholly-owned subsidiaries
2023
subsidiary current assets Non current assets assets current liabilities Non current liabilities liabilities
DEEPAL Automotive Technology Co., Ltd 19,532,107,979.29 3,335,776,374.16 22,867,884,353.45 23,372,178,834.61 1,464,812,108.74 24,836,990,943.35
2022
subsidiary current assets Non current assets assets current liabilities Non current liabilities liabilities
DEEPAL Automotive Technology Co., Ltd 17,304,462,820.64 3,031,817,521.55 20,336,280,342.19 18,443,264,762.77 802,998,605.97 19,246,263,368.74
2023
subsidiary Operating income Net profit Total comprehensive income Cash flow from operating activities
DEEPAL Automotive Technology Co., Ltd 25,882,512,213.36 -2,998,926,405.37 -2,998,926,405.37 3,338,314,121.63
2022
subsidiary Operating income Net profit Total comprehensive income Cash flow from operating activities
DEEPAL Automotive Technology Co., Ltd 15,677,573,297.11 -3,196,559,864.14 -3,196,559,864.14 5,685,083,425.27
194
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Important joint ventures or associates
Total proportion of
Main operating Registered shareholders (%) Accounting treatment methods for investments in joint Is it strategic for our
subsidiary Nature of business
place place ventures or joint ventures company's activities
direct indirect
Avatr Technology research and
(Chongqing) Co., Ltd. Chongqing Chongqing development 40.9939 Equity method Yes
5. Main financial information of important joint ventures
2023 2022
Avatr Technology (Chongqing) Co., Ltd. Avatr Technology (Chongqing) Co., Ltd.
current assets 10,513,768,163.43 4,119,117,631.56
Non current assets 2,130,278,114.28 1,080,940,094.70
assets 12,644,046,277.71 5,200,057,726.26
current liabilities 9,864,279,866.61 2,344,911,952.16
Non current liabilities 685,987,794.52 82,076,507.58
liabilities 10,550,267,661.13 2,426,988,459.74
Minority shareholder equity
Equity attributable to shareholders of the parent company 2,093,778,616.58 2,773,069,266.52
Net asset share calculated based on shareholding ratio 858,321,512.30 1,136,789,242.05
Adjustment matters 1,437,388,747.49 1,507,746,698.43
Book value of equity investment in joint ventures 2,295,710,259.79 2,644,535,940.48
Net profit -3,692,504,949.03 -2,015,302,440.74
Total comprehensive income -3,692,504,949.03 -2,015,302,440.74
195
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. The table below shows the financial status of the less important joint ventures and associates:
2023 2022
Joint venture
Total book value of the investment 3,789,451,718.73 4,780,435,502.08
Total amount calculated by
shareholding proportion
Net profit -960,029,731.44 -967,472,466.00
Other comprehensive income -1,454,051.91 602,832.07
Total comprehensive income -961,483,783.35 -966,869,633.93
Associates
Total book value of the investment 7,702,230,006.95 6,981,691,013.72
Total amount calculated by
shareholding proportion
Net profit 341,248,476.30 -1,154,049,730.76
Other comprehensive income
Total comprehensive income 341,248,476.30 -1,154,049,730.76
As at 31 December 2023, since the Group has no obligation to undertake the extra loss of
Chongqing Changan Kuayue Automobile Sales Co., Ltd, Jiangling Motors Co., Ltd and
Changan Ford Automobile Co., Ltd. When extra loss occurs, the Group writes down the
long-term investment to zero without recognizing the extra loss.
IX Government grants
（1） Types, amounts, and reporting items of government subsidies
1. Government subsidies included in current profit and loss
Government subsidies related to assets
Offsetting the book value of related
Projects for
Items presented in the Government assets
offsetting
balance sheet subsidy balance Previous period
Current amount related assets
amount
Offsetting fixed
assets/
Deferred income 610,407,171.08 175,548,473.12 188,239,238.37
intangible
assets
Total 610,407,171.08 175,548,473.12 188,239,238.37
grants related to income
The amount of offsetting related cost and expense losses
Items to offset related cost
and expense losses Current amount Previous period amount
Operating cost 170,360,460.12 87,580,801.54
Operating expenses 46,703,658.08 4,958,904.12
General and administrative
13,512,686.32 62,862,742.73
expenses
196
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
The amount of offsetting related cost and expense losses
Items to offset related cost
and expense losses Current amount Previous period amount
Research and development
86,393,841.24 179,583,821.24
expenses
Total 316,970,645.76 334,986,269.63
197
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2.Debt projects involving government subsidies
Last year's year-end Newly added subsidy Projects for offsetting Current period offset
Liability items Closing balance Related to assets / returns
balance amount in this period related assets cost expense amount
Deferred income 166,416,924.20 619,538,720.00 175,548,473.12 610,407,171.08 Related to assets
Deferred income 181,151,625.42 72,718,252.98 108,433,372.44 Related to returns
198
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
X Risks associated with financial instruments
（1） Various risks arising from financial instruments
Our company faces various financial risks in the process of operation, including credit risk,
liquidity risk, and market risk (including exchange rate risk, interest rate risk, and other price
risk). The above financial risks and the risk management policies adopted by our company to
reduce these risks are as follows:
The overall goal of our company's risk management is to develop risk management policies that
minimize risks as much as possible without excessively affecting the company's competitiveness
and adaptability.
1. Credit risk
Credit risk refers to the risk of financial losses incurred by the company due to the counterparty's
failure to fulfill contractual obligations.
The credit risk of our company mainly arises from monetary funds, notes receivable, accounts
receivable, accounts receivable financing, other receivables, as well as debt instrument
investments measured at fair value with changes recognized in current profit and loss that are
not included in the impairment assessment scope.
Our company's monetary funds are mainly deposited in state-owned banks with good
reputation and high credit ratings, as well as other large and medium-sized listed banks. We
believe that there is no significant credit risk and there will be almost no significant losses
caused by bank defaults.
In addition, our company has established relevant policies to control credit risk exposure for
notes receivable, accounts receivable, accounts receivable financing, contract assets, and other
receivables. Our company evaluates the credit qualifications of customers based on their
financial status, the possibility of obtaining guarantees from third parties, credit records, and
other factors such as current market conditions, and sets corresponding credit periods. Our
company will regularly monitor customer credit records. For customers with poor credit records,
we will use written reminders, shorten or cancel credit periods, etc. to ensure that our overall
credit risk is within a controllable range.
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when a company fulfills its obligation to
settle by delivering cash or other financial assets.
Our company's policy is to ensure sufficient cash to repay maturing debts. Liquidity risk is
centrally controlled by the finance department of our company. The finance department ensures
that the company has sufficient funds to repay debts under all reasonable forecasts by
monitoring cash balances, readily available securities, and rolling forecasts of cash flows for the
next 12 months. Simultaneously, continuously monitor whether the company complies with the
provisions of the loan agreement and obtain commitments from major financial institutions to
provide sufficient standby funds to meet short-term and long-term funding needs.
The various financial liabilities of our company are presented as undiscounted contract cash
flows at maturity as follows:
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
Short-term
30,862,587.57 30,862,587.57 30,039,416.74
loans
Notes
37,456,669,928.07 37,456,669,928.07 37,456,669,928.07
payable
Accounts
38,289,947,321.45 38,289,947,321.45 38,289,947,321.45
payable
Other
5,592,483,962.97 5,592,483,962.97 5,880,882,512.97
payables
Non-current 85,021,520.17 85,021,520.17 80,077,042.88
199
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
liabilities
due within 1
year
Long-term
772,666.67 36,462,000.00 36,076,000.00 73,310,666.67 72,000,000.00
loan
Lease
58,380,494.01 86,883,614.74 145,264,108.75 134,254,398.07
liabilities
Long-term
970,485,209.92 970,485,209.92 804,264,787.97
payables
Bonds
30,000,000.00 30,000,000.00 1,060,000,000.00 1,120,000,000.00 999,607,547.16
payable
Total 81,485,757,986.90 124,842,494.01 1,182,959,614.74 970,485,209.92 83,764,045,305.57 83,747,742,955.31
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
Short-term
29,621,345.00 29,621,345.00 29,000,000.00
loans
Notes payable 22,072,793,864.83 22,072,793,864.83 22,072,793,864.83
Accounts
29,449,664,138.75 29,449,664,138.75 29,449,664,138.75
payable
Other payables 4,749,541,830.49 4,749,541,830.49 6,082,766,424.67
Non-current
liabilities due 907,011,961.68 907,011,961.68 885,723,901.34
within 1 year
Long-term loan 360,000.00 36,090,000.00 36,450,000.00 36,000,000.00
Lease
28,446,270.64 36,466,546.80 64,912,817.44 60,205,397.98
liabilities
Long-term
195,656,936.33 229,263,541.66 424,920,477.99 408,939,511.34
payables
Bonds payable 30,000,000.00 30,000,000.00 1,090,000,000.00 1,150,000,000.00 999,528,301.88
Total 57,238,633,140.75 254,463,206.97 1,391,820,088.46 58,884,916,436.18 60,024,621,540.79
3. Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair value or
future cash flows of financial instruments due to market price changes, including exchange rate
risk, interest rate risk, and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in market interest rates.
Fixed interest rate and floating interest rate interest bearing financial instruments expose the
company to fair value interest rate risk and cash flow interest rate risk, respectively. Our
company determines the ratio of fixed and floating rate instruments based on the market
environment, and maintains an appropriate combination of fixed and floating rate instruments
through regular review and supervision. When necessary, our company will use interest rate
swap tools to hedge interest rate risk.
Our company's revenue and operating cash flow are generally not affected by fluctuations in
market interest rates. As of December 31, 2023, all bank loans and payable bonds of our
company bear interest at a fixed rate. Our company currently does not hedge interest rate risk.
(2) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments due to changes in foreign exchange rates.
Our company continuously monitors the scale of foreign currency transactions and foreign
currency assets and liabilities to minimize the foreign exchange risks we face. In addition, the
company may also sign forward foreign exchange contracts or currency swap contracts to avoid
exchange rate risks. In this period and the previous period, our company did not sign any
forward foreign exchange contracts or currency swap contracts.
The exchange rate risk faced by our company mainly comes from financial assets and liabilities
200
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
denominated in US dollars. The amount of foreign currency financial assets and foreign currency
financial liabilities converted into RMB is listed below:
2023.12.31 2022.12.31
Item Other foreign Other foreign
Dollar Total Dollar Total
currencies currencies
Cash 196,000,760.10 579,542,997.66 775,543,757.76 391,277,812.22 111,466,597.50 502,744,409.72
Accounts
227,291,127.63 227,291,127.63 281,485,439.30 281,485,439.30
receivable
Other
712,229.23 52,299,249.49 53,011,478.72 222,592.10 17,185,394.43 17,407,986.53
receivables
Account
27,130.85 134,344,595.24 134,371,726.09 415,271.94 23,599,339.69 24,014,611.63
payable
Other
194,566.44 2,126,996.89 2,321,563.33 8,187,604.86 1,755,928.37 9,943,533.23
payables
Total 424,225,814.25 768,313,839.28 1,192,539,653.53 681,588,720.42 154,007,259.99 835,595,980.41
As of December 31, 2023, with all other variables remaining unchanged, if the RMB appreciates
or depreciates by 5% against the US dollar, the company will increase or decrease its net profit
by RMB 18,029,597.10.
The management believes that 5% reasonably reflects the reasonable range of possible
changes in the Chinese yuan against the US dollar in the next year.
(3) Other price risks
Other price risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to market price changes other than exchange rate and interest rate risks.
Our company's other price risks mainly arise from various equity instrument investments, and
there is a risk of price fluctuations in equity instruments.
As of December 31, 2023, with all other variables remaining unchanged, if the value of equity
instruments increases or decreases by 5%, the company will increase or decrease its net profit
by RMB 6,831,651.16. The management believes that 5% reflects a reasonable range of possible
changes in the value of equity instruments in the next year.
XI Disclosure of fair value
1. Assets and liabilities measured at fair value
2023
Input measured at fair value
Quoted price in Important and Important but Total
active market observable input unobservable input
(The first level) (The second (The third level)
level）
Financial asset held for trading
Equity instrument investment 160,744,733.27 - 160,744,733.27
Others - 6,774,614.02 - 6,774,614.02
Investment in other equity
instruments - - 504,190,082.71 504,190,082.71
Total 160,744,733.27 6,774,614.02 504,190,082.71 671,709,430.00
2022
Input measured at fair value
201
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Quoted price in Important and Important but Total
active market observable input unobservable input
(The first level) (The second (The third level)
level）
Financial asset held for trading
Equity instrument investment 126,112,500.00 125,052,628.80 - 251,165,128.80
Others - 29,150,442.29 - 29,150,442.29
Investment in other equity
instruments - - 489,950,000.00 489,950,000.00
Total 126,112,500.00 154,203,071.09 489,950,000.00 770,265,571.09
2. Unobservable input
The following is an overview of the important unobservable input value of the third level fair
value measurement:
Fair value Valuation techniques Non-observable input value
Investment in other equity instrument
Comparable transaction value
2023 504,190,082.71 Market approach multiplier / Post-tax discount rate
Comparable transaction value
2022 489,950,000.00 Market approach multiplier / Post-tax discount rate
202
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
XII Related party relationships and transactions
1. The holding company
Holding company Place of Nature of the business Registered capital Proportion of Proportion of
registration shares in the voting rights in
Company the company
Automobile and its
engines, spare parts
China Changan Automobile Group manufacturing,
Co., Ltd. Beijing marketing 6,092,273,400.00 20.81% 20.81%
The ultimate holding company is China South Industries Group Corporation.
2. Subsidiaries
Refer to Note VIII. Interests in Other Entities for details of the Group’s subsidiaries.
3. Joint ventures and associates
Refer to Note VIII. Interests in Other Entities for details of the Group’s important joint ventures
and associates.
203
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Other related parties
Related parties Relationship
Chongqing Changfeng Jiquan Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Chang'an Construction Engineering Co., Ltd Controlled by the same ultimate holding company
Chongqing Chang'an Industrial (Group) Co., Ltd Controlled by the same ultimate holding company
Chongqing Yihong Defense Technology Co., Ltd Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Economic Development Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Ducheng Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Chengxing Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Chang'an Property Management Co., Ltd Controlled by the same ultimate holding company
Chongqing Qingshan Transmission Sales Co., Ltd Controlled by the same ultimate holding company
Chongqing Shangfang Automotive Parts Co., Ltd Controlled by the same ultimate holding company
Chongqing Qingshan Industrial Co., Ltd Controlled by the same ultimate holding company
Chongqing Automotive Air Conditioner Co., Ltd Controlled by the same ultimate holding company
Chongqing Pingshan Taikai Carburetor Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Electromechanical Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Industry (Group) Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Transmission Technology Co., Ltd Controlled by the same ultimate holding company
Related parties Relationship
204
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Construction Automotive Air Conditioner Co., Ltd Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co., Ltd Controlled by the same ultimate holding company
Chongqing Fuji Supply Chain Management Co., Ltd Controlled by the same ultimate holding company
Chongqing Dajiang Xinda Vehicle Co., Ltd Controlled by the same ultimate holding company
Chongqing Dajiang Jiexin Forging Co., Ltd Controlled by the same ultimate holding company
Chongqing Anfu Automobile Marketing Co., Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co., Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co., Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Commercial Factoring Co., Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Financial Leasing Co., Ltd Controlled by the same ultimate holding company
Chang'an Automobile Finance Co., Ltd Controlled by the same ultimate holding company
Yunnan Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Yunnan Wanxing Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Ya'an Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co., Ltd Controlled by the same ultimate holding company
Wanyou Automobile Investment Co., Ltd Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co., Ltd Controlled by the same ultimate holding company
Sichuan Jian'an Industry Co., Ltd Controlled by the same ultimate holding company
Panzhihua Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co., Ltd Controlled by the same ultimate holding company
Longchang Shanchuan Machinery Co., Ltd Controlled by the same ultimate holding company
Jiangsu Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Construction Industry Group (Yunnan) Co., Ltd Controlled by the same ultimate holding company
Related parties Relationship
205
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Hubei Xiaogan Huazhong Car Lamp Co., Ltd Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automotive Lighting Co., Ltd Controlled by the same ultimate holding company
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd Controlled by the same ultimate holding company
Harbin Dong'an Automotive Power Co., Ltd Controlled by the same ultimate holding company
Guizhou Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Guangxi Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Dali Wanfu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Auto Trade Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co., Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry Co., Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Automotive Fuel Tank Co., Ltd Controlled by the same ultimate holding company
Chengdu Jialing Huaxi Optics and Precision Machinery Co., Ltd Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co., Ltd Controlled by the same ultimate holding company
Chenzhi (Chongqing) Brake System Co., Ltd Controlled by the same ultimate holding company
Weapon Equipment Group Finance Co., Ltd Controlled by the same ultimate holding company
Beijing Beiji Electromechanical Industry Co., Ltd Controlled by the same ultimate holding company
Beijing North Changfu Automobile Sales Co., Ltd Controlled by the same ultimate holding company
Bazhong Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Anhui Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chenzhi (Chengdu) Intelligent Suspension Co., Ltd Controlled by the same ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd Controlled by the same ultimate holding company
Related parties Relationship
206
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Chang'an Minsheng Logistics Co., Ltd Controlled by the same ultimate holding company
Hunan Tianyan Machinery Co., Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Human Resources Development Center Controlled by the same ultimate holding company
China Ordnance Newspaper Controlled by the same ultimate holding company
Southern Yingte Air Conditioning Co., Ltd Controlled by the same ultimate holding company
Southern Faurecia Automotive Parts Co., Ltd Controlled by the same ultimate holding company
Hunan Tianyan Machinery Co., Ltd Controlled by the same ultimate holding company
Beijing Zhongbing Insurance Brokerage Co., Ltd Controlled by the same ultimate holding company
Chongqing Naishite Steering System Co., Ltd Participated by the Ultimate holding company
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co., Ltd Participated by the Ultimate holding company
Chongqing Jianshe Hanang Automotive Thermal Management System Co., Ltd Participated by the Ultimate holding company
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd Participated by the Ultimate holding company
Chongqing Dajiang Yapu Automotive Parts Co., Ltd Participated by the Ultimate holding company
Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd Participated by the Ultimate holding company
Chongqing Dajiang Dongyang Plastic Products Co., Ltd Participated by the Ultimate holding company
United Automotive Electronics (Chongqing) Co., Ltd Participated by the Ultimate holding company
Li Er Chang'an (Chongqing) Automotive Systems Co., Ltd Participated by the Ultimate holding company
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co., Ltd Participated by the Ultimate holding company
Tiannake Lingchuan (Chongqing) Exhaust System Co., Ltd Participated by the Ultimate holding company
Nanjing Tiefu Transmission System (Chongqing) Co., Ltd Participated by the Ultimate holding company
Hafei Automobile Co., Ltd Participated by the Ultimate holding company
207
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties
(1) Transactions of goods and services
Purchases of goods and services from related parties
Related parties Nature of the transaction 2023 2022
Chongqing Qingshan Industrial Co., Ltd Purchase of spare parts and accept service 7,909,257,881.61 5,929,105,477.16
Chongqing Chang'an Minsheng Logistics Co., Ltd Purchase of spare parts and accept service 5,165,658,104.43 3,463,898,449.23
Jiangling Holdings Limited Purchase of spare parts and accept service 2,501,907,444.50 138,548,818.43
Sichuan Jian'an Industry Co., Ltd Purchase of spare parts and accept service 1,189,789,519.57 797,061,806.68
Chenzhi (Chongqing) Brake System Co., Ltd Purchase of spare parts and accept service 1,169,593,423.84 850,217,286.61
Hubei Huazhong Marelli Automotive Lighting Co., Ltd Purchase of spare parts and accept service 1,123,367,388.13 1,000,676,703.53
Chongqing Naishite Steering System Co., Ltd Purchase of spare parts and accept service 1,057,076,294.06 831,405,194.98
United Automotive Electronics (Chongqing) Co., Ltd Purchase of spare parts and accept service 1,010,229,555.68 822,043,773.13
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd Purchase of spare parts and accept service 821,839,603.40 1,059,383,069.06
SouthernYingte Air Conditioning Co., Ltd Purchase of spare parts and accept service 802,270,183.24 417,113,793.15
Southern Faurecia Automotive Parts Co., Ltd Purchase of spare parts and accept service 706,168,677.33 474,902,181.20
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd Purchase of spare parts 688,149,261.93 29,580,684.02
Shenlan Automotive Technology Co., Ltd Purchase of spare parts and accept service 666,172,597.14 4,693,770,740.03
Chongqing Dajiang Dongyang Plastic Products Co., Ltd Purchase of spare parts and accept service 618,976,091.63 390,094,811.70
Chongqing Dajiang National Precision Machinery Manufacturing Co., Purchase of spare parts and accept service 496,995,640.59 353,842,435.47
Ltd
Chengdu Huachuan Electric Equipment Co., Ltd Purchase of spare parts and accept service 461,695,054.62 433,491,184.42
Chongqing DajiangYapu Automotive Parts Co., Ltd Purchase of spare parts 452,268,436.90 367,878,744.52
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
208
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Sichuan Ningjiang Shanchuan Machinery Co., Ltd Purchase of spare parts and accept service 432,815,652.22 236,368,439.32
Harbin Dong'an Automotive Power Co., Ltd Purchase of spare parts and accept service 395,901,799.55 510,666,022.83 Harbin Dong'an Automotive Po
Natiefu Transmission System (Chongqing) Co., Ltd Purchase of spare parts and accept service 389,817,223.54 349,384,726.01
Chongqing wutong Chelian Technology Co., Ltd Purchase of spare parts and accept service 343,192,676.83 162,264,149.40
Li Er Chang'an (Chongqing) Automotive Systems Co., Ltd Purchase of spare parts 336,686,106.50 398,441,173.61
Chongqing Construction Transmission Technology Co., Ltd Purchase of spare parts and accept service 280,512,432.69 188,542,642.58
Chongqing Lingchuan Automotive Parts Manufacturing Technology Purchase of spare parts 213,630,757.24 136,745,996.51
Co., Ltd
Chang'an Automobile Finance Co., Ltd Accept service 203,900,716.83
Chongqing Jianshe Hanang Automotive Thermal Management System Purchase of spare parts 174,129,034.27 151,002,052.30
Co., Ltd
Hunan Tianyan Machinery Co., Ltd Purchase of spare parts 143,867,189.64
Hubei Xiaogan Huazhong Car Lamp Co., Ltd Purchase of spare parts and accept service 137,367,855.66 100,374,013.64
Chengdu Wanyou Filter Co., Ltd Purchase of spare parts and accept service 131,715,230.00 131,651,417.70
Chongqing Shangshang Automotive Parts Co., Ltd Purchase of spare parts 129,114,128.66 84,981,815.82
Era Chang'an Power Battery Co., Ltd Purchase of spare parts 95,181,872.65
Chongqing Changxian Intelligent Technology Co., Ltd Purchase of spare parts and accept service 93,604,392.49
ChongqingYihong Defense Technology Co., Ltd Purchase of spare parts 75,489,406.20 36,665,517.10
5. Major transactions between the Group and its related parties (continued)
209
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Tiannake Lingchuan (Chongqing) Exhaust System Co., Ltd Purchase of spare parts and accept service 75,305,544.57 67,353,980.86
Chongqing Qingshan Transmission Sales Co., Ltd Purchase of spare parts 67,569,783.88 32,926,122.52
Beijing Wutong Chelian Technology Co., Ltd Purchase of spare parts and accept service 66,771,769.32 104,475,718.53
Chongqing Construction Automotive Air Conditioner Co., Ltd Purchase of spare parts 55,811,393.01 60,528,242.94
Chongqing Wanyou Economic Development Co., Ltd Purchase of spare parts and accept service 53,578,718.07 66,255,194.45
Chongqing Construction Tongda Industrial Co., Ltd Purchase of spare parts and accept service 52,480,106.10 25,814,511.10
Chengdu Lingchuan Automotive Fuel Tank Co., Ltd Purchase of spare parts 49,988,528.24 33,992,791.02
Jiangsu Wanyou Automobile Sales and Service Co., Ltd Accept service 47,556,715.66 7,102,848.68
Avita (Chongqing) Automobile Sales and Service Co., Ltd Purchase of spare parts 42,227,013.92
Yunnan Wanyou Automobile Sales and Service Co., Ltd Accept service 39,341,743.95 25,188,983.36
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Purchase of spare parts and accept service 32,444,290.19 12,062,273.95
Guizhou Wanyou Automobile Sales and Service Co., Ltd Accept service 25,147,910.62 13,511,730.91
Longchang Shanchuan Machinery Co., Ltd Purchase of spare parts 24,200,356.23 27,909,131.44
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd Accept service 15,950,070.92 2,946,005.80
Chongqing Chang'an Property Management Co., Ltd Accept service 15,428,001.25 4,134,339.52
Chongqing Chang'an Industrial (Group) Co., Ltd Accept service 13,270,362.89 12,292,136.25
Chengdu Wanyou Auto Trade Service Co., Ltd Accept service 11,285,463.97 9,348,028.62
China Changan Automobile Group Tianjin Sales Co., Ltd Accept service 9,516,199.15 1,371,694.94
210
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Anhui Wanyou Automobile Sales and Service Co., Ltd Accept service 8,013,949.98 5,293,300.68
Construction Industry Group (Yunnan) Co., Ltd Purchase of spare parts 7,389,085.00 107,396,789.80
Chongqing Wanyou Ducheng Automobile Sales and Service Co., Ltd Accept service 6,717,354.59 4,101,094.51
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd Accept service 3,832,530.21 1,423,274.77
Chongqing Wanyou Chengxing Automobile Sales and Service Co., Ltd Accept service 3,773,979.88
Chang'an Mazda Automobile Co., Ltd Accept service 3,645,821.90
Chang'an Mazda Engine Co., Ltd Accept service 3,237,665.14
China Changan Automobile Group Co., Ltd Accept service 3,001,862.66
Ya'an Wanyou Automobile Sales and Service Co., Ltd Purchase of spare parts and accept service 2,761,315.77 1,946,181.65
Chengdu Wanyou Automobile Sales and Service Co., Ltd accept service 2,176,652.22 678,453.32
Chongqing Dajiang Jiexin Forging Co., Ltd Purchase of spare parts 1,404,946.66 3,078,583.33
Luzhou Wanyou Automobile Service Co., Ltd accept service 1,343,676.63 509,671.25
Chengdu Jialing Huaxi Optics and Precision Machinery Co., Ltd Purchase of spare parts 931,742.59 2,786,069.10
Panzhihua Wanyou Automobile Sales and Service Co., Ltd accept service 672,314.14 451,213.56
Avita Technology (Chongqing) Co., Ltd Purchase of spare parts 517,327.44
Zhongqi Chuangzhi Technology Co., Ltd accept service 480,000.00 320,000.00
Southwest Ordnance Industry Chongqing Environmental Protection accept service 445,897.62 2,049,165.81
Research Institute Co., Ltd
211
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Chenzhi (Chengdu) Intelligent Suspension Co., Ltd Purchase of spare parts 329,060.27 10,745,694.02
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd Purchase of spare parts 284,403.78 459,367.27
Beijing Zhongbing Insurance Brokerage Co., Ltd Purchase of spare parts and accept service 226,367.35 226,434.19
Beijing Beiji Electromechanical Industry Co., Ltd Purchase of spare parts 181,057.41 38,462.43
Chengdu Wanyou Trading Co., Ltd accept service 109,105.05 55,017.09
China Ordnance Equipment Group Commercial Factoring Co., Ltd accept service 93,693.30
Shanghai Jiaxing Automotive Service Co., Ltd accept service 80,043.15
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd Purchase of spare parts and accept service 76,401.73 12,900.95
Nanjing Lingxing Technology Co., Ltd Purchase of spare parts and accept service 59,006.16 348,114.07
China Ordnance Equipment Group Human Resources Development accept service 23,113.20
Center
China Ordnance Newspaper Purchase of spare parts and accept service 22,467.73
Nanjing Chelai Chuxing Technology Co., Ltd accept service 15,222.66
Changan Ford Motor Co., Ltd Purchase of spare parts 203.40 35,475.70
Hunan Tianyan Machinery Co., Ltd Purchase of spare parts and accept service 2,092,525.14
Chongqing Construction Industry (Group) Co., Ltd Purchase of spare parts 1,197,461.49
Chongqing Pingshan Taikai Carburetor Co., Ltd Purchase of spare parts 170,426.18
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd Purchase of spare parts 127,433.63
212
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Yunnan Wanxing Automobile Sales and Service Co., Ltd accept service 76,719.72
China Ordnance Equipment Group Co., Ltd accept service 22,339.62
Chongqing Chang'an Industrial (Group) Co., Ltd Pay comprehensive service fee 86,759,331.24 72,388,391.31
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd Procurement of engineering materials 2,049,697.68
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co., Ltd Procurement of engineering materials 1,756,066.31 14,202,332.81
Chongqing Chang'an Minsheng Logistics Co., Ltd Procurement of engineering materials 13,862.82
Sichuan Jian'an Industry Co., Ltd Procurement of engineering materials 44.14
213
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties
Related parties Nature of the transaction 2023 2022
Avita Technology (Chongqing) Co., Ltd Sales of vehicle parts and services 3,005,944,066.62 714,145,977.09
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd Selling parts and services 2,615,879,134.66 1,476,308,931.64
Chongqing Wanyou Economic Development Co., Ltd Sales of vehicle parts and services 1,767,117,262.72 1,684,301,990.87
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 1,737,535,522.44 1,284,359,479.27
Jiangsu Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 1,328,878,775.22 470,683,276.14
Guizhou Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 1,311,607,201.25 884,848,504.37
Yunnan Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 1,105,265,913.83 1,142,270,993.20
Chengdu Wanyou Auto Trade Service Co., Ltd Sales of vehicle parts and services 597,327,672.80 549,991,470.85
Wanyou Automobile Investment Co., Ltd Selling vehicles and services 584,399,985.39 598,010,950.82
Chongqing Fuji Supply Chain Management Co., Ltd Selling vehicles 538,716,791.96
Chang'an Automobile Finance Co., Ltd Provide labor services 354,417,122.66 490,826,007.07
Anhui Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 306,169,916.41 260,352,341.97
China Changan Automobile Group Tianjin Sales Co., Ltd Sales of vehicle parts and services 304,080,496.29 247,493,153.78
Chang'an Mazda Automobile Co., Ltd Sales of vehicle parts and services 288,828,348.49 64,329,600.00
Master Changan Automobile Co., Ltd Sales of vehicle parts and services 279,656,730.41 924,463,919.88
Shenlan Automotive Technology Co., Ltd Sales of vehicle parts and services 111,103,766.19 2,609,084,124.78
Chongqing Chang'an Kuayue Vehicle Co., Ltd Selling parts and services 93,017,748.87 77,335,639.06
Chongqing Anfu Automobile Marketing Co., Ltd Sales of vehicle parts and services 58,386,460.13 27,875,221.32
214
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing Qingshan Industrial Co., Ltd Sales of vehicle parts and services 31,157,207.00 158,523,290.48
China Ordnance Equipment Group Financial Leasing Co., Ltd Provide labor services 25,691,328.80 48,064,780.21
Changan Ford Motor Co., Ltd Selling partsand services 9,082,666.28 179,318,692.12
Chang'an Mazda Engine Co., Ltd Selling partsand services 4,748,723.27
Chongqing Wanyou Ducheng Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 3,605,914.02 2,714,289.11
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd Selling parts 3,358,934.35 28,271,075.57
Chongqing Chang'an Industrial (Group) Co., Ltd Provide labor services 3,283,373.72
Chongqing Chang'an Minsheng Logistics Co., Ltd Selling parts and services 3,088,120.79 2,148,551.67
Ya'an Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 2,547,798.92 3,074,292.53
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 2,366,433.23 1,575,307.62
Weapon Equipment Group Finance Co., Ltd Provide labor services 2,065,012.08 1,852,079.79
Nanjing Lingxing Technology Co., Ltd Provide labor services 1,947,663.55 1,871,703.43
Chengdu Wanyou Automobile Sales and Service Co., Ltd Sales of vehicle parts and services 1,731,121.33 934,370.23
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd Provide labor services 1,656,676.95
Southern Yingte Air Conditioning Co., Ltd Provide labor services 1,651,787.03 2,943.40
Chongqing Shangshang Automotive Parts Co., Ltd Provide labor services 1,252,080.34
Jiangling Holdings Limited Selling parts and services 1,243,519.20 397,278.07
215
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing wutong Chelian Technology Co., Ltd Provide labor services 1,096,933.00 11,320.75
Luzhou Wanyou Automobile Service Co., Ltd Sales of vehicle parts and services 1,009,690.18 820,143.92
Chongqing Naishite Steering System Co., Ltd Selling parts and services 995,304.99
Chongqing Chang'an Kuayue Vehicle Marketing Co., Ltd Selling parts 704,862.14 281,930.93
Panzhihua Wanyou Automobile Sales and Service Co., Ltd Selling parts and services 671,997.23 712,145.73
Sichuan Ningjiang Shanchuan Machinery Co., Ltd Provide labor services 632,600.17 13,329.40
Southern Faurecia Automotive Parts Co., Ltd Provide labor services 498,120.79
China Ordnance Equipment Group
Commercial Factoring Co., Ltd Provide labor services 358,584.46 106,858.13
China Changan Automobile Group Hefei Investment Co., Ltd Selling vehicles 230,752.22 2,169,330.09
Sichuan Jian'an Industry Co., Ltd Provide labor services 228,618.74
Chenzhi (Chongqing) Brake System Co., Ltd Provide labor services 214,511.78
Chongqing Construction Transmission Technology Co., Ltd Selling parts and services 187,996.19
Hunan Tianyan Machinery Co., Ltd Provide labor services 169,811.32
Chengdu Wanyou Trading Co., Ltd Selling parts and services 167,458.36 25,171.68
Chengdu Huachuan Electric Equipment Co., Ltd Selling vehicles and services 164,961.79
Chongqing Dajiang National Precision Machinery Manufacturing Co., Selling parts and services 114,266.17 37,118,575.61
Ltd
216
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
China Changan Automobile Group Co., Ltd Provide labor services 85,080.76 84,905.66
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd Selling parts 79,500.96
Dali Wanfu Automobile Sales and Service Co., Ltd Selling parts 59,084.14
Nanjing Tiefu Transmission System (Chongqing) Co., Ltd Provide labor services 52,739.15
Chongqing Lingchuan Automotive Parts Manufacturing Technology Selling parts and services 32,454.14 1,866,175.08
Co., Ltd
Chongqing Wanyou Chengxing Automobile Sales and Service Co., Ltd Provide labor services 18,983.24
Chongqing Dajiang Dongyang Plastic Products Co., Ltd Selling parts and services 18,867.92 750,186.19
Chongqing Construction Automotive Air Conditioner Co., Ltd Selling parts and services 8,490.57 11,946.90
Hubei Huazhong Marelli Automotive Lighting Co., Ltd Provide labor services 1,313.00
Chongqing Construction Tongda Industrial Co., Ltd Provide labor services 1,070.21
Hubei Xiaogan Huazhong Car Lamp Co., Ltd Provide labor services 340.99
Zhongqi Chuangzhi Technology Co., Ltd Provide labor services 0.94
Yunnan Wanxing Automobile Sales and Service Co., Ltd Selling vehicles and parts 18,948,851.57
Tiannake Lingchuan (Chongqing) Exhaust System Co., Ltd Selling parts 4,244,013.23
Chengdu Lingchuan Automotive Fuel Tank Co., Ltd Selling parts 1,480,056.13
Construction Industry Group (Yunnan) Co., Ltd Selling parts 1,365,240.00
Chongqing Construction Industry (Group) Co., Ltd Selling parts 253,525.27
217
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Li Er Chang'an (Chongqing) Automotive Systems Co., Ltd Selling parts and services 147,535.15
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd Selling parts 131,400.00
Hainan Anxinxing Information Technology Co., Ltd Provide labor services 28,301.89
Harbin Dong'an Automotive Power Co., Ltd Provide labor services 1,173.00
Changan Ford Motor Co., Ltd Provide personnel technical support 22,556,634.55 26,618,313.54
Chang'an Mazda Automobile Co., Ltd Provide personnel technical support 19,654,432.21 20,766,828.90
Jiangling Holdings Limited Provide personnel technical support 16,029,196.23 1,465,987.40
Chang'an Mazda Engine Co., Ltd Provide personnel technical support 13,114,270.22 13,623,103.29
Chongqing Chang'an Kuayue Vehicle Co., Ltd Provide personnel technical support 3,633,857.52 2,724,505.28
Jiangling Automobile Co., Ltd Provide personnel technical support 2,003,201.96 1,158,831.59
Chongqing Chang'an Minsheng Logistics Co., Ltd Provide personnel technical support 1,271,925.14
Time FAW Power Battery Co., Ltd Provide personnel technical support 1,234,091.00
Avita Technology (Chongqing) Co., Ltd Provide personnel technical support 682,780.43
Chongqing Anda Semiconductor Co., Ltd Provide personnel technical support 291,666.67
Chongqing wutong Chelian Technology Co., Ltd Provide personnel technical support 208,063.02
China Changan Automobile Group Co., Ltd Provide personnel technical support 169,811.32
Weapon Equipment Group Finance Co., Ltd Provide personnel technical support 143,990.86
Chongqing Shangshang Automotive Parts Co., Ltd Provide personnel technical support 115,392.25
218
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing Construction Transmission Technology Co., Ltd Provide personnel technical support 27,872.04
Chongqing Naishite Steering System Co., Ltd Provide personnel technical support 18,026.66
Chongqing Dajiang National Precision Machinery Manufacturing Co., Provide personnel technical support
2,520.00
Ltd
Shenlan Automotive Technology Co., Ltd Provide personnel technical support 87,739,303.52
Hainan Anxinxing Information Technology Co., Ltd Provide personnel technical support 634,354.87
Yunnan Wanyou Automobile Sales and Service Co., Ltd Interest income from delayed payment of 374,716.09 297,408.89
funds
Chengdu Wanyou Auto Trade Service Co., Ltd Interest income from delayed payment of 54,859.95 109,002.02
funds
Chongqing Wanyou Economic Development Co., Ltd Interest income from delayed payment of 14,602.59 66,581.59
funds
China Changan Automobile Group Tianjin Sales Co., Ltd Interest income from delayed payment of 7,601.77 21,429.12
funds
Jiangsu Wanyou Automobile Sales and Service Co., Ltd Interest income from delayed payment of 1,380.53 32,918.60
funds
Anhui Wanyou Automobile Sales and Service Co., Ltd Interest income from delayed payment of 42,256.63
funds
219
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued
Related parties Nature of the transaction 2023 2022
Wanyou Automobile Investment Co., Ltd Interest income from delayed payment of 19,690.27
funds
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Interest income from delayed payment of 9,988.50
funds
Chongqing Chang'an Minsheng Logistics Co., Ltd Interest income from delayed payment of 4,584.91
funds
Guizhou Wanyou Automobile Sales and Service Co., Ltd Interest income from delayed payment of 3,686.97
funds
220
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(2) Lease between related parties
As lessor
Tenant Name Type of
2023 2022
leased assets
Shanghai Jiaxing Automotive Service Co., Ltd Vehicle 45,796,707.70 28,781,100.74
Shenlan Automotive Technology Co., Ltd Building and equipment 27,782,737.08 129,219,487.60
Chongqing Chang'an Industrial (Group) Co., Ltd Building 3,283,373.72 6,667,632.38
Nanjing Lingxing Technology Co., Ltd Vehicle 2,605,067.26 89,060,494.43
Chongqing Wanyou Economic Development Co., Ltd Building and land 660,932.72 642,201.84
Chongqing Chang'an Minsheng Logistics Co., Ltd Building and land 541,948.47 703,167.61
Avita Technology (Chongqing) Co., Ltd Vehicle 364,393.81
SouthernYingte Air Conditioning Co., Ltd Vehicle 48,849.56 67,752.21
Chongqing Chang'an Real Estate Development Co., Ltd Vehicle 24,424.78
221
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between the Group and its related parties (continued)
(2) Lease between related parties (continued)
As lessee
Name of lessor Type of 2023 2022
leased assets Simplified Variable lease Simplified Variable lease
rental fees for payments not Interest Increased rental fees for payments not Interest Increas
short-term included in the Rent paid expenses usage short-term included in the expenses ed
leases and measurement of on lease rights leases and low measurement Rent paid on lease usage
low value lease liabilities liabilities assets value asset of lease liabilities rights
asset leases assumed leases liabilities assumed assets
Chongqing Chang'anWarehouse 21,347,779.20 21,845,685.75
Minsheng Logistics Co., 27,741,456.55 17,233,282.09
Ltd
Chongqing Chang'anLand 3,245,650.70
Property Management 5,955,322.40
Co., Ltd
5. Major transactions between the Group and its related parties (continued)
(3) Key management personnel compensation
Projects 2023 2022
Key management personnel compensation 34,385,715.00 29,192,727.00
(4) Other related-party transactions
Deposit and loan matters with Ordnance Equipment Group Finance Co., Ltd.:
222
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Related parties Related party transaction content 2023.12.31/2023.1-12
Weapon Equipment Group Finance Co., Ltd bank deposit 19,926,021,247.02
Weapon Equipment Group Finance Co., Ltd Collecting interest 210,297,724.70
Weapon Equipment Group Finance Co., Ltd Commercial acceptance bill 3,865,904,188.47
Weapon Equipment Group Finance Co., Ltd Long term loans 76,000,000.00
Weapon Equipment Group Finance Co., Ltd Payment of interest and handling fees 6,065,040.06
Deposit and loan matters with Changan Automobile Finance Co., Ltd.:
Related parties Related party transaction content 2023.12.31/2023.1-12
Chang'an Automobile Finance Co., Ltd bank deposit 14,990,000,000.00
Chang'an Automobile Finance Co., Ltd Collecting interest 287,218,750.00
6. Amounts due from/to related parties
(1) Accounts receivables
Entry name Related parties 2023 2022
Accounts receivable
Avita Technology (Chongqing) Co., Ltd 674,602,846.19 320,592,883.29
Chang'an Mazda Automobile Co., Ltd 177,061,948.01 72,378,357.38
Chongqing Chang'an Kuayue Vehicle Co., Ltd 23,099,903.46 39,592,219.39
Chang'an Automobile Finance Co., Ltd 21,019,909.48 68,199,053.80
Maaster Changan Automobile Co., Ltd 16,553,872.36 37,958,837.25
223
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chang'an Mazda Engine Co., Ltd 15,886,858.18 3,494,661.85
Chongqing Fuji Supply Chain Management Co., Ltd 13,934,855.12
Changan Ford Motor Co., Ltd 9,976,923.10 195,582,372.52
Jiangling Holdings Limited 9,791,503.74 83,513,666.55
Chongqing Chang'an Industrial (Group) Co., Ltd 7,139,838.45 3,626,628.57
Jiangsu Wanyou Automobile Sales and Service Co., Ltd 6,117,845.18
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
China Ordnance Equipment Group Financial Leasing Co., Ltd 5,186,975.56 9,734,968.89
Shanghai Jiaxing Automotive Service Co., Ltd 4,300,560.00 5,181,800.00
Chongqing Chang'an Minsheng Logistics Co., Ltd 3,269,852.16 688,099.86
Chongqing wutong Chelian Technology Co., Ltd 1,210,700.00
Chenzhi (Chengdu) Intelligent Suspension Co., Ltd 497,845.97
Nanjing Lingxing Technology Co., Ltd 321,563.47 4,209,516.65
Chongqing Anfu Automobile Marketing Co., Ltd 278,200.00
Yunnan Wanyou Automobile Sales and Service Co., Ltd 121,200.00
Chongqing Chang'an Kuayue Vehicle Marketing Co., Ltd 26,019.30 31,861.79
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd 368.00 127,548.00
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd 0.02 147,532.81
224
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Shenlan Automotive Technology Co., Ltd 3,623,354,650.53
Chongqing Qingshan Industrial Co., Ltd 29,579,405.37
Jiangling Automobile Co., Ltd 1,176,831.13
Guizhou Wanyou Automobile Sales and Service Co., Ltd 63,900.00
China Ordnance Equipment Group Commercial Factoring Co., Ltd 1,841.34
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
Notes receivable Wanyou Automobile Investment Co., Ltd 2,618,900,000.00 3,047,690,000.00
Avita Technology (Chongqing) Co., Ltd 1,162,667,212.07 121,822,864.29
Chongqing Fuji Supply Chain Management Co., Ltd 70,015,971.00
Yunnan Wanyou Automobile Sales and Service Co., Ltd 46,000,000.00 43,000,000.00
Chongqing Qingshan Industrial Co., Ltd 48,163,692.11 40,463,588.91
Chongqing Chang'an Kuayue Vehicle Co., Ltd 37,033,400.00
Chongqing Wanyou Economic Development Co., Ltd 31,000,000.00 20,250,000.00
Chengdu Wanyou Auto Trade Service Co., Ltd 22,500,000.00 22,500,000.00
Guizhou Wanyou Automobile Sales and Service Co., Ltd 14,200,000.00 7,300,000.00
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd 272,292.05 3,029,467.77
Shenlan Automotive Technology Co., Ltd 1,011,838,777.69
Prepayments
225
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Wutong Chelian Technology Co., Ltd 12,438,660.30
Shenlan Automotive Technology Co., Ltd 10,397,480.50
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
Other receivables
Chongqing Changyu Private Equity Investment Fund Partnership Enterprise
69,600,000.00
(Limited Partnership)
Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership Enterprise
25,500,000.00
(Limited Partnership)
Jiangling Holdings Limited 70.00
Weapon Equipment Group Finance Co., Ltd 859,049.92
Chongqing Chang'an Minsheng Logistics Co., Ltd 436.57
226
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2) Accounts payables
Entry name Related parties 2023 2022
Accounts payable Jiangling Holdings Limited 1,354,996,530.62 1,116,408,615.48
Chongqing Qingshan Industrial Co., Ltd 1,161,486,369.43 153,454,423.03
Chongqing Naishite Steering System Co., Ltd 460,868,914.97 278,876,988.05
Hubei Huazhong Marelli Automotive Lighting Co., Ltd 304,497,612.19 236,096,916.60
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd 288,969,832.65 32,759,347.97
Southern Yingte Air Conditioning Co., Ltd 218,167,579.17 87,495,633.58
Sichuan Ningjiang Shanchuan Machinery Co., Ltd 217,032,427.38 11,108,409.24
Sichuan Jian'an Industry Co., Ltd 209,471,637.23 40,868,455.07
Chongqing Dajiang Yapu Automotive Parts Co., Ltd 188,849,804.56 152,806,662.74
United Automotive Electronics (Chongqing) Co., Ltd 175,204,866.08 72,864,235.98
Chongqing Dajiang Dongyang Plastic Products Co., Ltd 160,704,720.85 86,558,622.08
Chenzhi (Chongqing) Brake System Co., Ltd 146,361,112.11 142,620,012.97
Chengdu Huachuan Electric Equipment Co., Ltd 133,533,197.37 41,958,250.19
Southern Faurecia Automotive Parts Co., Ltd 133,412,554.27 79,576,674.87
Nanjing Tiefu Transmission System (Chongqing) Co., Ltd 131,979,852.57 49,148,122.03
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd 112,601,705.64 99,563,867.81
Era Chang'an Power Battery Co., Ltd 95,181,872.65
Harbin Dong'an Automotive Power Co., Ltd 82,269,854.10 103,616,123.17
227
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd 80,230,007.07 6,417,935.77
Hunan Tianyan Machinery Co., Ltd 62,751,647.18 143,359.78
Chongqing Construction Transmission Technology Co., Ltd 53,190,098.24 18,773,538.36
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co., Ltd 44,644,512.83 25,869,763.88
Chongqing Shangshang Automotive Parts Co., Ltd 32,922,573.42 13,575,599.30
Hubei Xiaogan Huazhong Car Lamp Co., Ltd 30,315,072.22 19,359,970.66
Chengdu Wanyou Filter Co., Ltd 23,915,398.04 14,115,700.51
Chongqing Yihong Defense Technology Co., Ltd 22,446,756.72 4,247,025.85
Chongqing Construction Tongda Industrial Co., Ltd 21,293,902.87 11,268,342.31
Chengdu Lingchuan Automotive Fuel Tank Co., Ltd 18,306,736.20 8,056,699.53
Chongqing Construction Automotive Air Conditioner Co., Ltd 15,466,830.30 10,360,465.69
Chongqing Chang'an Minsheng Logistics Co., Ltd 12,682,710.95 12,696,301.88
Chongqing Qingshan Transmission Sales Co., Ltd 11,834,165.78 10,199,151.11
Chongqing Wanyou Economic Development Co., Ltd 7,393,900.62 757,763.87
Chongqing Jianshe Hanang Automotive Thermal Management System Co., Ltd 5,633,908.16 2,388,277.76
Longchang Shanchuan Machinery Co., Ltd 4,292,608.83 1,759,775.48
Chongqing wutong Chelian Technology Co., Ltd 3,636,473.60
228
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd 3,588,068.59 496,894.20
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Wutong Chelian Technology Co., Ltd 1,781,815.70 4,301,349.18
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd 1,443,978.00
Chenzhi (Chengdu) Intelligent Suspension Co., Ltd 1,220,521.72 1,358,424.58
China Changan Automobile Group Co., Ltd 1,040,003.18
Avita Technology (Chongqing) Co., Ltd 914,385.00
Chongqing Chang'an Industrial (Group) Co., Ltd 601,675.65 236,355.17
Avita (Chongqing) Automobile Sales and Service Co., Ltd 587,070.80
Chongqing Construction Industry (Group) Co., Ltd 575,587.79
Chongqing Dajiang Jiexin Forging Co., Ltd 421,518.30 312,203.77
Construction Industry Group (Yunnan) Co., Ltd 327,412.94 4,210,156.64
Chengdu Jialing Huaxi Optics and Precision Machinery Co., Ltd 242,083.74 559,576.76
Beijing Beiji Electromechanical Industry Co., Ltd 141,911.64 3,165.30
Chongqing Jialing Yimin Special Equipment Co., Ltd 104,496.50 104,496.50
Chengdu Lingchuan Special Industry Co., Ltd 101,585.16 220,175.48
Tiannake Lingchuan (Chongqing) Exhaust System Co., Ltd 93,157.04 5,380,229.34
Chongqing Construction Electromechanical Co., Ltd 47,265.91 47,265.91
229
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Li Er Chang'an (Chongqing) Automotive Systems Co., Ltd 41,271.92 109,342,564.03
Chongqing Xiyi Automobile Connecting Rod Co., Ltd 38,422.14 38,422.14
Shanghai Jiaxing Automotive Service Co., Ltd 32,771.36
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd 20,842.80 20,842.80
Hangzhou Chelizi Intelligent Technology Co., Ltd 12,350.00 12,350.00
Hafei Automobile Co., Ltd 344.04 344.04
Shenlan Automotive Technology Co., Ltd 822,638,571.39
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co., Ltd 8,537,490.14
Changan Ford Motor Co., Ltd 1,878,695.33
Southwest Ordnance Industry Chongqing Environmental Protection Research
963,651.26
Institute Co., Ltd
Chongqing Automotive Air Conditioner Co., Ltd 205,041.51
Chongqing Dajiang Xinda Vehicle Co., Ltd 56,251.08
Chongqing Chang'an Kuayue Vehicle Co., Ltd 1,382.56
Chongqing Changfeng Jiquan Machinery Co., Ltd 1,340.91
Chengdu Wanyou Auto Trade Service Co., Ltd 250.00
Notes payable
Chongqing Qingshan Industrial Co., Ltd 1,723,679,349.53 1,078,658,254.05
230
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Jiangling Holdings Limited 1,047,608,994.41 59,248,188.59
Chongqing Chang'an Minsheng Logistics Co., Ltd 443,503,065.10 300,858,223.58
Chongqing Naishite Steering System Co., Ltd 403,879,297.14 327,738,252.79
Southern Yingte Air Conditioning Co., Ltd 243,848,518.33 130,650,474.98
Chongqing Dajiang Dongyang Plastic Products Co., Ltd 241,360,000.00 145,840,000.00
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd 234,620,000.00 197,280,000.00
Chongqing Dajiang Yapu Automotive Parts Co., Ltd 215,540,000.00 175,450,000.00
Nanjing Tiefu Transmission System (Chongqing) Co., Ltd 122,855,842.38 98,250,000.00
Hubei Huazhong Marelli Automotive Lighting Co., Ltd 122,400,000.00 139,690,000.00
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co., Ltd 113,510,000.00 80,530,000.00
Southern Faurecia Automotive Parts Co., Ltd 107,251,528.51 36,370,000.00
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd 102,880,000.00 560,000.00
Hunan Tianyan Machinery Co., Ltd 97,750,000.00 630,000.00
Sichuan Ningjiang Shanchuan Machinery Co., Ltd 80,902,422.85 60,759,442.02
Chongqing Jianshe Hanang Automotive Thermal Management System Co., Ltd 77,160,000.00 82,600,000.00
231
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chenzhi (Chongqing) Brake System Co., Ltd 73,980,457.72 118,961,825.13
Chengdu Wanyou Filter Co., Ltd 51,120,000.00 34,373,849.84
Tiannake Lingchuan (Chongqing) Exhaust System Co., Ltd 44,930,000.00 32,530,000.00
Chongqing Shangshang Automotive Parts Co., Ltd 41,023,156.32 33,869,017.86
Hubei Xiaogan Huazhong Car Lamp Co., Ltd 35,788,907.01 15,650,000.00
Chongqing Yihong Defense Technology Co., Ltd 26,870,000.00 19,560,000.00
Chongqing Construction Tongda Industrial Co., Ltd 15,579,467.79 10,640,000.00
Chongqing Construction Automotive Air Conditioner Co., Ltd 14,260,000.00 20,050,000.00
Harbin Dong'an Automotive Power Co., Ltd 11,090,000.00 59,090,000.00
Southwest Ordnance Industry Chongqing Environmental Protection Research 10,355,405.72
Institute Co., Ltd
Longchang Shanchuan Machinery Co., Ltd 6,670,000.00 6,140,145.72
Chongqing Construction Transmission Technology Co., Ltd 5,667,059.25 1,314,548.20
Sichuan Jian'an Industry Co., Ltd 4,757,300.00
Chengdu Lingchuan Automotive Fuel Tank Co., Ltd 2,640,000.00
Chongqing Dajiang Jiexin Forging Co., Ltd 340,000.00 1,090,000.00
Shenlan Automotive Technology Co., Ltd 293,766,946.00
Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd 7,765,999.95
Chengdu Jialing Huaxi Optics and Precision Machinery Co., Ltd 950,000.00
232
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Other payables
Chongqing Chang'an Minsheng Logistics Co., Ltd 500,998,344.99 392,075,910.69
Chongqing Qingshan Industrial Co., Ltd 18,225,258.51 7,868,918.85
Jiangsu Wanyou Automobile Sales and Service Co., Ltd 12,433,698.10 4,970,000.00
Shanghai Jiaxing Automotive Service Co., Ltd 10,098,882.10
Chongqing Wanyou Economic Development Co., Ltd 9,733,185.00 7,660,147.80
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd 9,558,725.84 7,732,620.00
Yunnan Wanyou Automobile Sales and Service Co., Ltd 7,847,297.00 10,068,122.20
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co., Ltd 7,439,420.93 917,118.52
Chongqing Chang'an Construction Engineering Co., Ltd 7,120,158.39 26,391,448.08
Southwest Ordnance Industry Chongqing Environmental Protection Research
6,567,229.16
Institute Co., Ltd
China Changan Automobile Group Tianjin Sales Co., Ltd 4,967,547.10 3,729,000.00
Guizhou Wanyou Automobile Sales and Service Co., Ltd 4,854,300.00 4,007,517.20
Chongqing Chang'an Property Management Co., Ltd 4,291,910.22 1,935,184.57
Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd 4,000,701.62 4,404,413.09
233
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Southern Yingte Air Conditioning Co., Ltd 3,885,605.94 1,567,432.39
Chengdu Wanyou Automobile Sales and Service Co., Ltd 3,200,000.00 790,000.00
Southern Faurecia Automotive Parts Co., Ltd 2,292,829.98
Ya'an Wanyou Automobile Sales and Service Co., Ltd 2,100,513.14 2,063,900.00
Chengdu Wanyou Auto Trade Service Co., Ltd 2,041,261.84 3,607,415.80
Sichuan Jian'an Industry Co., Ltd 1,670,420.64 2,101,400.49
Chongqing Naishite Steering System Co., Ltd 1,238,092.98
Chengdu Wanyou Filter Co., Ltd 939,532.50 1,266,573.71
Anhui Wanyou Automobile Sales and Service Co., Ltd 938,180.00 1,475,600.00
Chongqing Chang'an Industrial (Group) Co., Ltd 875,856.10 2,960,859.38
Changan Ford Motor Co., Ltd 752,549.61
Chongqing Wanyou Ducheng Automobile Sales and Service Co., Ltd 737,780.00 1,096,014.24
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co., Ltd 681,921.10 219,898.32
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd 441,740.00 400,000.00
Hubei Huazhong Marelli Automotive Lighting Co., Ltd 411,875.16
Chengdu Huachuan Electric Equipment Co., Ltd 237,375.50 173,206.40
234
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd 229,627.31
Luzhou Wanyou Automobile Service Co., Ltd 221,800.00 129,140.00
Chongqing Shangshang Automotive Parts Co., Ltd 215,604.00 1,113,793.54
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd 213,235.41
Beijing North Changfu Automobile Sales Co., Ltd 200,000.00
United Automotive Electronics (Chongqing) Co., Ltd 159,089.20 3,439,700.00
Chongqing Wanyou Chengxing Automobile Sales and Service Co., Ltd 120,000.00
Chongqing Dajiang Xinda Vehicle Co., Ltd 100,000.00 150,000.00
Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd 99,087.65
Nanjing Tiefu Transmission System (Chongqing) Co., Ltd 89,598.75
Chongqing Construction Transmission Technology Co., Ltd 88,358.88
Sichuan Ningjiang Shanchuan Machinery Co., Ltd 84,283.54
Chenzhi (Chongqing) Brake System Co., Ltd 81,873.02 293,868.55
China Ordnance Newspaper 44,850.00
Hunan Tianyan Machinery Co., Ltd 21,696.00 1,235,044.80
Chongqing Dajiang Yapu Automotive Parts Co., Ltd 17,514.74 10,855.59
235
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Harbin Dong'an Automotive Engine Manufacturing Co., Ltd 12,665.04 203,155.92
Dali Wanfu Automobile Sales and Service Co., Ltd 1,691.00
Chongqing Construction Tongda Industrial Co., Ltd 1,343.94 33,787.00
Chongqing Yihong Defense Technology Co., Ltd 159.91
Shenlan Automotive Technology Co., Ltd 113,039,584.99
Chongqing Dajiang Dongyang Plastic Products Co., Ltd 1,423,800.00
Chongqing Anfu Automobile Marketing Co., Ltd 200,000.00
Construction Industry Group (Yunnan) Co., Ltd 148,030.00
China Changan Automobile Group Hefei Investment Co., Ltd 106,890.47
Harbin Dong'an Automotive Power Co., Ltd 106,468.60
Jiangling Holdings Limited 47,703.40
Hubei Xiaogan Huazhong Car Lamp Co., Ltd 27,828.32
Chengdu Wanyou Trading Co., Ltd 11,391.20
Panzhihua Wanyou Automobile Sales and Service Co., Ltd 4,550.30
China Changan Automobile Group Co., Ltd 1,000.00
236
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Contract liabilities
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd 110,584,225.04 64,279,954.50
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd 89,057,725.73 74,694,999.66
Guizhou Wanyou Automobile Sales and Service Co., Ltd 68,070,242.12 96,702,773.24
Chongqing Wanyou Economic Development Co., Ltd 62,975,674.47 124,667,991.83
Yunnan Wanyou Automobile Sales and Service Co., Ltd 55,836,423.36 49,769,852.59
Jiangsu Wanyou Automobile Sales and Service Co., Ltd 26,589,072.67 58,420,002.39
Wanyou Automobile Investment Co., Ltd 23,183,182.96 47,689,212.74
Chengdu Wanyou Auto Trade Service Co., Ltd 16,498,448.61 18,393,074.44
Anhui Wanyou Automobile Sales and Service Co., Ltd 9,994,433.27 12,540,522.24
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd 9,803,782.94
China Changan Automobile Group Tianjin Sales Co., Ltd 8,118,237.92 33,057,138.53
Maaster Changan Automobile Co., Ltd 6,452,463.66 5,213,676.57
Avita Technology (Chongqing) Co., Ltd 970,882.61 5,832,549.46
Chang'an Automobile Finance Co., Ltd 606,371.68 685,200.00
237
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Hafei Automobile Co., Ltd 417,648.22 471,942.49
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Chengdu Wanyou Automobile Sales and Service Co., Ltd 345,372.38 101,869.64
Chongqing Chang'an Minsheng Logistics Co., Ltd 271,047.12 416,441.17
Chongqing Wanyou Ducheng Automobile Sales and Service Co., Ltd 207,654.20 373,179.91
Ya'an Wanyou Automobile Sales and Service Co., Ltd 112,302.96 75,083.25
Chongqing Wanyou Xingjian Automobile Sales and Service Co., Ltd 66,275.60 155,719.35
Luzhou Wanyou Automobile Service Co., Ltd 54,775.96 91,342.25
Dali Wanfu Automobile Sales and Service Co., Ltd 46,416.87 3,486.06
Bazhong Wanyou Automobile Sales and Service Co., Ltd 44,625.20 50,426.48
Panzhihua Wanyou Automobile Sales and Service Co., Ltd 32,689.44 16,305.41
Chengdu Wanyou Trading Co., Ltd 15,049.38 18,900.00
China Changan Automobile Group Hefei Investment Co., Ltd 9,091.15 10,273.00
Chongqing Shangshang Automotive Parts Co., Ltd 3,522.12 12,979.98
Yunnan Wanxing Automobile Sales and Service Co., Ltd 87.61 6,816.00
Changan Ford Motor Co., Ltd 0.32 493,954.43
Jiangling Holdings Limited 6,854,200.00
238
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Anfu Automobile Marketing Co., Ltd 149,000.00
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name
Related parties 2023 2022
Guangxi Wanyou Automobile Sales and Service Co., Ltd 302.40
239
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
XIII Share-based payments
Granting objects All equity instruments unlocked in this period All equity instruments that have expired in this period
Quantity (10000 shares) amount Quantity (10000 shares) amount
employees 51,641,739.00 199,366,029.42 4,510,389.00 18,591,901.33
Equity-settled share payments are as follows:
2023 2022
Accumulated amount of equity-settled
share-based payments included in capital
reserve 1,011,326,167.92 648,749,767.92
Equity-settled share-based payments recognized
as expenses 362,576,400.00 380,209,900.00
XIV Contingencies and commitments
1. Commitments
Contracted, but not provided for
2023 2022
Capital commitments 11,619,677,925.31 11,675,534,857.57
Investment commitments 1,132,500,000.00 1,782,940,000.00
Total 12,752,177,925.31 13,458,474,857.57
XV Events after the balance sheet date
1. The dividends after balance sheet date
The profit distribution plan for 2023 is based on the total share capital of 9,917,289,033 shares, a
cash dividend of 3.43 yuan (including tax) will be distributed to all shareholders for every 10
shares, without converting the reserve fund into share capital.
XVI Other important event
Capital management:
2023 2022
liabilities 115,487,870,299.24 83,099,751,390.43
Less: Cash and cash equivalents 63,925,957,901.11 52,491,435,047.74
240
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Adjusted net liabilities 51,561,912,398.13 30,608,316,342.69
Owner's equity 74,683,256,839.03 62,949,316,684.82
Adjusted debt/capital ratio 69.04% 48.62%
XVII Notes to the Company’s financial statements
1. Accounts Receivable
(1) Aging analysis of accounts receivable as at 31 December 2023 is as follows:
2023 2022
Less than 1 year (including 1 year) 7,757,039,345.74 4,445,068,297,55
1 to 2 years (including 2 years) 4,629,777,82 997,705,973,80
2 to 3 years (including 3 years) 713,934,590.78
Over 3 years 172,295,427.89 213.599,440.84
8,647.899,142,23 5,656,373,712.19
Less：Provision (68,395,117.00) (117,868,890.37)
8,579,504,025.23 5,538,504,821.82
(2) Analysis of the accounts receivable by category as at 31 December 2023 is as follows:
2023
Balance Provision
Amount % Amount %
Individually analyzed provision 8,521,036,971.35 98.53 37,652,846.20 0.44
Provision for bad debts based on credit risk
characteristics 126,862,170.88 1.47 30,742,270.80 24.23
Total 8,647,899,142.23 100.00 68,395,117.00
2022
Balance Provision
Amount % Amount %
Individually analyzed provision 5,137,221,177.03 90.82 76,252,846.20 1.48
Provision for bad debts based on credit risk
characteristics 519,152,535.16 9.18 41,616,044.17 8.02
Total 5,656,373,712.19 100.00 117,868,890.37
(3) Accounts receivable was analyzed for provision by expected credit loss model:
241
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023 2022
Balance amount % Provision Balance amount % Provision
Within 1 year 92,354,390.53 0.23 212,524.43 452,608,491.21 0.89 4,009,679.22
1 to 2 years 2,924,698.66 4.54 132,902.58 30,625,665.06 7.23 2,214,135.18
2 to 3 years - - - - - -
Over 3 years 31,583,081.69 96.24 30,396,843.79 35,918,378.89 98.54 35,392,229.77
Total 126,862,170.88 30,742,270.80 519,152,535.16 41,616,044.17
(4) Movements of provision for accounts receivable are as follows:
Beginning balance Provision Write-off Ending balance
2023 117,868,890.37 10,873,773.37 38,600,000.00 68,395,117.00
2022 102,237,112.42 17,018,007.91 1,386,229.96- 117,868,890.37
(5) As at 31 December 2023, accounts receivable from top 5 clients amounted to RMB
6,094,777,237.45, accounted for 70.48% of the total amount.
2. Other receivables
sports event 2023 2022
Other receivables 237,247,787.26 859,026,748.64
237,247,787.26 859,026,748.64
total
(1) Aging analysis of other receivables as at 31 December 2023 is as follows:
2023 2022
Within 1 year 231,794,668.72 842,446,117.27
1 to 2 years 3,543,202.13 7,116,112.63
2 to 3 years 1,987,846.67 1,226,346.51
Over 3 years 6,930,932.77 15,300,830.26
244,256,650.29 866,089,406.67
Less：Provision (7,008,863.03) (7,062,658.03)
Total 237,247,787.26 859,026,748.64
(2) Disclosure of bad debt accrual method by category:
2023
Balance Provision
Amount % Amount %
242
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Individually analyzed provision 173,323,245.26 70.96 6,842932.77 3.95
Provision for bad debts based on credit risk
characteristics 70,933,405.03 29.04 165,930.26 0.23
Total 244,256,650.29 100.00 7,008,863.03
2022
Balance Provision
Amount % Amount %
Individually analyzed provision 777,670,023.39 89.79 6,842,932.77 0.88
Provision for bad debts based on credit risk
characteristics 88,419,383.28 10.21 219,725.26 0.25
Total 866,089,406.67 100.00 7,062,658.03
Accounts receivable was analyzed for provision by expected credit loss model:
2023
Balance amount % Provision
Within 1 year 65,487,628.14 0.03 16,272.65
1 to 2 years 3,483,169.23 0.52 18,256.09
2 to 3 years 1,874,607.66 3.62 67,913.39
Over 3 years 88,000.00 72.15 63,488.13
Total 70,933,405.03 165,930.26
(3) Provision for bad debts
Phase I Phase II Phase III
Expected credit
Expected credit
Expected credit losses for the
provision for bad debts losses over lifetime add up the total
losses for the entire duration
(credit impairment
next 12 months (no credit
incurred)
impairment)
Prior year-end balance 219,725.26 6,842,932.77 7,062,658.03
Balance at the end of the
previous year for the
current period
--Transfer to Phase II
--Transferred to phase III
--Transfer back to phase
II
--Return to phase I
Provision for the current
period
Reversal during the
53,795.00 53,795.00
period
Write-offs during the
period
243
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Phase I Phase II Phase III
Expected credit
Expected credit
Expected credit losses for the
provision for bad debts losses over lifetime add up the total
losses for the entire duration
(credit impairment
next 12 months (no credit
incurred)
impairment)
Write-offs during the
period
Other changes
Closing balance 165,930.26 6,842,932.77 7,008,863.03
The movement in the carrying amount of other receivables is shown below:
Phase I Phase II Phase III
Expected credit Expected credit
Expected credit losses losses for the losses over
Carrying amount add up the total
for the next 12 entire duration lifetime (credit
months (no credit impairment
impairment) incurred)
Prior year-end
859,246,473.90 6,842,932.77 866,089,406.67
balance
Balance at the end
of the previous year
for the current
period
--Transfer to Phase
II
--Transferred to
phase III
--Transfer back to
phase II
--Return to phase I
Additions during the
5,814,416,518.24 5,814,416,518.24
period
Derecognition
6,436,249,274.62 6,436,249,274.62
during the period
Other changes
Closing balance 237,413,717.52 6,842,932.77 244,256,650.29
(4) Movements of provision for accounts receivable are as follows:
Beginning balance Provision Reversal Ending balance
2023 7,062,658.03 53,795.00- 7,008,863.033
2022 7,219,239.96 - 156,581.93 7,062,658.03
244
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(5) Analysis of other receivables by nature is as follows:
2023 2022
Prepaid equity investment 109,286,581.45 399,486,432.52
Energy-saving and new energy subsidy 31,782,936.00 338,394,118.63
Pretty cash 69,048,305.62 63,139,873.12
Internal transactions 25,410,795.04 32,946,539.47
Others 8,728,032.18 32,122,442.93
Total 244,256,650.29 866,089,406.67
(6) Other receivables with the top five closing balances aggregated by party owed，As at 31
December 2023, the top five closing balances of other receivables totalled RMB
154,619,333.48, representing 63.30% of the total closing balance of other receivables.
245
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Long-term investments
(1) Investments in subsidiaries
Increase/decrease during the period
Impairment provision
Provision for Closing balance of
investee Prior year-end balance Prior year-end Reduced Closing balance
Additional investments impairment for the rest provision for impairment
balance investment
the period
Hefei Chang'an Automobile Co.,Ltd. 1,535,367,765.23 1,535,367,765.23
Chongqing Changan Automobile International Sales
203,068,581.00 979,000,000.00 1,182,068,581.00
& Service Co.,Ltd.
Chongqing Chang'an Kaicheng Automotive
977,793,971.55 977,793,971.55
Technology Co.,Ltd
Chongqing Suzuyo Automobile Co.,Ltd. 594,949,059.30 594,949,059.30
Nanjing Chang'an Automobile Co.,Ltd. 422,183,259.00 422,183,259.00
Chang'an Automobile Russia Co.,Ltd. 251,242,589.15 251,242,589.15
Changan Automobile UK R&D Centre LLP 250,093,850.95 250,093,850.95
Changan Automobile Investment (Shenzhen)
237,889,511.00 237,889,511.00
Co.,Ltd.
Chongqing Chang'an European Design Centre
155,469,913.50 155,469,913.50
Co.,Ltd.
Chongqing Chang'an Automobile Software
99,000,000.00 99,000,000.00
Technology Co.,Ltd.
Chongqing Chang'an Technology Co.,Ltd. 90,000,000.00 90,000,000.00
246
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Impairment provision
Provision for Closing balance of
investee Prior year-end balance Prior year-end Reduced Closing balance
Additional investments impairment for the rest provision for impairment
balance investment
the period
Chongqing Chang'an Auto Link Technology Co.,Ltd. 88,500,000.00 88,500,000.00
Nanjing Changan New Energy Vehicle Sales &
50,000,000.00 50,000,000.00
Service Co.,Ltd.
Chongqing Zhilai Dadao New Energy Co.,Ltd. 49,194,195.00 49,194,195.00 49,194,195.00 49,194,195.00
Chongqing Changan Automobile Customer Service
29,700,000.00 29,700,000.00
Co.,Ltd
Chongqing Chang'anhang Automobile Co.,Ltd. 20,000,000.00 20,000,000.00
Deep Blue Automotive Technology Co.,Ltd. 1,655,606,604.29 1,655,606,604.29
Chang'an American R&D Centre Co.,Ltd. 10,243,460.00 10,243,460.00
Chongqing Chehemei Technology Co.,Ltd. 10,000,000.00 10,000,000.00
Guangzhou Changan New Energy Vehicle Sales &
4,000,000.00 4,000,000.00
Service Co.,Ltd.
Chongqing Chang'an Special Purpose Vehicle
2,500,000.00 2,500,000.00
Co.,Ltd.
Xiamen Changan New Energy Vehicle Sales &
2,000,000.00 2,000,000.00
Service Co.,Ltd.
Chongqing Anyi Automobile Technical Service
2,000,000.00 2,000,000.00
Co.,Ltd.
Chang'an Japan Design Centre Co.,Ltd. 1,396,370.15 1,396,370.15
Beijing Chang'an Automobile Engineering &
1,000,000.00 1,000,000.00
Technology Research Co.,Ltd.
Hebei Changan Automobile Co.,Ltd 350,000.00 350,000.00
Chang'an Automobile Southeast Asia Co.,Ltd. 3.00 3.00
247
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Impairment provision
Provision for Closing balance of
investee Prior year-end balance Prior year-end Reduced Closing balance
Additional investments impairment for the rest provision for impairment
balance investment
the period
Changan Automotive Parts (Thailand) Co.,Ltd. 3.00 3.00
Changan Automobile Sales (Thailand) Co.,Ltd.
3.00 3.00
Total 5,067,942,525.83 49,194,195.00 999,000,009.00 1,655,606,604.29 7,722,549,139.12 49,194,195.00
248
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(2) Investments in associates, joint ventures
Increase/decrease during the period
Closing
Impairment balance
Redu make
provision Gains and losses on Adjustments of
Prior year-end ced Declaration of provisio
investee Prior Additional investments to other Other changes Closing balance provision
balance inves cash dividends or n for the rest
year-end investments recognised under comprehensiv in equity for
tmen profits impair
balance the equity method e income impairme
t ment
nt
1. Joint ventures
Nanchang Jiangling Investment
1,810,629,644.86 297,030,927.25 (1,454,051.91) 2,106,206,520.20
Co.,Ltd.
Chang'an Mazda Motor Corporation 1,433,304,456.32 (555,064,964.19) 878,239,492.13
Changan Mazda Engine Co.,Ltd. 824,042,049.05 10,463,657.35 (29,500,000.00) 805,005,706.40
Changan Ford Motor Company, Ltd. 712,459,351.85 (712,459,351.85)
Subtotal 4,780,435,502.08 (960,029,731.44) (1,454,051.91) (29,500,000.00) 3,789,451,718.73
2. Associated enterprises
Changan Automobile Finance
2,778,898,410.33 350,378,027.17 (87,883,463.64) 3,041,392,973.86
Co.,Ltd.
Nanjing Link Equity Investment
2,570,421,464.70 75,371,861.99 2,645,793,326.69
Partnership (Limited Partnership)
CAC Chuangzhi Technology Co.,Ltd. 168,492,790.78 300,000,000.00 (19,977,570.24) 448,515,220.54
Chongqing Chang'an Crossing
209,768,936.34 18,996,315.30 228,765,251.64
Vehicle Co.,Ltd.
Chongqing Changxin Zhiqi Private
Equity Investment Fund Partnership 170,440,054.08 37,711,000.00 (3,632,657.70) 204,518,396.38
(Limited Partnership)
Times Changan Power Battery
152,000,000.00 (19,362,367.72) 132,637,632.28
Co.,Ltd.
Chongqing Longline Intelligent
102,000,000.00 1,217,635.38 103,217,635.38
Technology Co.,Ltd.
Chongqing Chang'an Innovation
Private Equity Investment Fund 1,000,844.59 69,230,769.00 (127,139.60) 70,104,473.99
Partnership (Limited Partnership)
Changan Ford New Energy Vehicle
100,000,000.00 (32,286,335.07) 67,713,664.93
Co.,Ltd.
Anhe Chongqing Dingfeng
Automobile Contractual Private 61,568,706.08 123,646.33 61,692,352.41
Equity Fund
249
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Closing
Impairment balance
Redu make
provision Gains and losses on Adjustments of
Prior year-end ced Declaration of provisio
investee Prior Additional investments to other Other changes Closing balance provision
balance inves cash dividends or n for the rest
year-end investments recognised under comprehensiv in equity for
tmen profits impair
balance the equity method e income impairme
t ment
nt
Hunan Guoxin Semiconductor
25,452,425.26 3,049,806.83 28,502,232.09
Technology Co.,Ltd.
Nanjing Link Equity Investment
1,112,210.69 (4,810.57) 1,107,400.12
Management Co.,Ltd.
Nanjing Chelai Travelling
624,773.31 (39,948.66) 584,824.65
Technology Co.,Ltd.
Avita Technology (Chongqing)
1,228,287,241.13 1,229,820,000.00 (1,525,530,933.78) 5,521,666.21 938,097,973.56
Co.,Ltd.
Deep Blue Automotive Technology
Co.,Ltd. 369,885,426.05 1,331,621,441.70 (45,900,263.46) (1,655,606,604.29)
Subtotal
7,585,953,283.34 3,322,383,210.70 (1,197,724,733.80) 5,521,666.21 (87,883,463.64) (1,655,606,604.29) 7,972,643,358.52
Total 12,366,388,785.42 3,322,383,210.70 (2,157,754,465.24) (1,454,051.91) 5,521,666.21 (117,383,463.64) (1,655,606,604.29) 11,762,095,077.25
250
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Operating revenue and cost
2023 2022
Revenue Cost Revenue Cost
Primary Operation 111,283,143,529.64 95,058,222,527.07 99,659,461,376.20 83,039,189,231.43
Other Operation 7,414,890,253.13 3,451,631,559.23 7,005,683,913.08 3,202,290,576.52
Total 118,698,033,782.77 98,509,854,086.30 106,665,145,289.28 86,241,479,807.95
5. Investment income/loss
2023 2022
Long-term equity investment income
accounted for by the cost method 722,850,000.00 653,072,387.00
Long-term equity investment income/(loss)
accounted for by the equity method (2,157,754,465.24) (3,075,237,898.94)
The investment income of financial asset held for trading
during its holding period 1,406,842.07 3,289,610.51
Dividend income from remaining investments in
other equity instruments 206,042,574.04 160,088,164.16
Investment income from disposal of long-term equity
investments 1.00 (1,805,399.76)
Gains from the remeasurement of the remaining equity at
fair value after the loss of control 337,514,571.42
Others 3,223,611.10 -
Total (1,224,231,437.03) (1,923,078,565.61)
251
Chongqing Changan Automobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan) Supplementary information
XVIII Notes to the Company’s financial statements
1. Schedule of non-recurring profit and loss
2023
Non-current asset disposal gains and losses (including the write-off portion of the
asset impairment provision) 441,000,628.40
Government subsidies included in the current profit and loss (closely related to the
business of the enterprise, except for government subsidies that
are fixed or quantified according to the national unified standard) 1,463,381,979.58
Interest on late payment of funds charged to non-financial enterprises 66,074,620.29
In addition to the effective hedging business related to the company's normal
business operations, the fair value changes in gains and losses
arising from holding trading financial assets -955,029.68
Reversal of impairment provision for accounts receivable that are tested separately
for impairment 21,286,713.50
Other non-operating income and expenses other than the above 141,715,255.35
Business combination 5,021,482,128.74
Other 673,232,447.45
Income tax impact -255,466,128.30
Minority shareholders' equity impact (after tax) -26,136,331.29
Total 7,545,616,284.04
2. Return on equity and earnings per share
2023
Weighted average Earnings per share
return on equity
Basic EPS Diluted EPS
(%)
Net profit attributable to the Company’s ordinary
shareholders 16.55 1.15 1.13
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring profit and
loss 5.53 0.38 0.38
252
