Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Semi-annual Report 2012
I. Important notes
The Board of Directors& Supervisors of Chongqing Changan Automobile Co., Ltd. (hereinafter
referred to as “the Company”) , the directors, supervisors and senior management guarantee that the
information contained in the report is free of false records, misguiding statements or significant
omissions, and assume individual and joint liabilities for the truthfulness, accuracy and integrity of
the report.
Directors absent from the meeting.
Name of the Director Reasons for the absence Name of the consignee
Xv Liuping On Business
Zou Wenchao On Business
Lian Gang On Business
The semi-annual financial report hasn't audited by accounting firm.
Chairman Mr. Xu Liuping, Chief Accountant Mr. Cui Yunjiang, and the Chief of Accountant department Mr. Hua
Zhanbiao guarantee: the truthfulness and completeness of the financial statements of this semi-annual report.
The report shall be presented in both Chinese and English, and should there be any conflicting understanding of
the text, the Chinese version shall prevail.
Definition
Changan Auto., the
meaning Chongqing Changan Automobile Company Limited
Company
South Industries meaning China South Industries Group Corp. Company’s actual controller
China Changan, old name: China South Industries automobile Co., Ltd., a subsidiary company
China Changan meaning
of South Industries
Chongqing Changan Industry(Group) Co., Ltd., old name: Changan Automobile Co., Ltd.,
Changan Industry meaning Changan Automobile (Group) Co., Ltd., a subsidiary company of South Industries, the
controlling shareholder of the Company before December, 2005
Nanjing Changan meaning Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company
Hebei Changan meaning Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company
International Company meaning Chongqing Changan Automobile International Sale Service Co., Ltd.
CFMA meaning Changan Ford Mazda Automobile Co.,，a JV of the Company
CFME meaning Changan Ford Mazda Engine Co., a JV of the Company
Changan Suzuki meaning Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
Jiangling holding meaning Jiangling Holding Co., a JV of the Company
Hafei Group meaning Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of China Changan
Changhe Auto. meaning Changhe Automobile Co., Ltd. , a subsidiary company of China Changan
1
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a subsidiary company of Changan
CMAL meaning
Industry
Financial Co. of CSGC meaning Financial Co. of China South Industries Group Corporation
ZhongHui fortis investment co., LTD., a subsidiary of China Changan
Zhonghui Futong meaning
II. General Introduction of the Company
（一） Company information
A share code 000625 B share code 200625
A-share referred to as Changan Auto B-share referred to as Changan B
Listed securities exchange Shenzheng securities exchang
The company’s legal Chinese
重庆长安汽车股份有限公司
Name
Abbreviations of company’s
legal Chinese Name
The company’s legal English
Chongqing Changan Automobile Company Limited
Name
Abbreviations of company’s
legal English Name
The company legal
Xu Liuping
representative
registered address No.260 Jianxin Donglu, Jiangbei District of Chongqing
Post code of registered
400023
address
Office address No.260 Jianxin Donglu, Jiangbei District of Chongqing
Post code of office address 400023
International Internet web site http://www.changan.com.cn
mailbox cazqc@changan.com.cn
（二）Contacts
representative of securities
The secretary of the board of directors
transaction
Name Cui Yunjiang、Li Jun
No.260 Jianxin Donglu, Jiangbei District of
Address
Chongqing
Tel. ０２３-６７５９４００８，６７５９４００９
Fax ０２３-６７８６６０５５
e-mail cazqc@changan.com.cn
（三）Information disclosure and designated location
newspaper names selected by the company to China's Stock Certificate Report, Securities Times,
disclose information Hong Kong Commercial Daily
website designated by China securities regulatory
www.cninfo.com.cn
commission to publish the semi-annual report
The designated location of the semi-annual report Office of company’s board of directors
2
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
III. Extracts of Major Accounting and Operating Data
(I)Major accounting data and financial indicators
Do the financial statements in the report period before have trace adjustment?
□ Yes √ No □ Not applied
Main accounting data
Increase or decrease from
Main accounting data Report period(Jan.-Jun.) The same period as last year
last year (%)
Total income(Yuan) 14,044,230,553.84 14,537,115,839.90 -3.39%
Sale Profit (Yuan) 385,772,591.11 1,014,014,773.28 -61.96%
Total profit(Yuan) 507,906,091.24 1,119,500,684.54 -54.63%
Net profit attributed to listed company
570,029,439.95 1,040,060,233.01 -45.19%
shareholder(Yuan)
Net profit attributed to listed company
shareholder except unusual loss and 450,325,986.54 953,093,407.91 -52.75%
profit(Yuan)
Net cash flows from operating
675,456,384.06 2,378,405,526.54 -71.6%
activities(Yuan)
Increase or decrease from
End of this report period End of last year
last year (%)
Total assets(Yuan) 39,510,428,966.48 36,532,118,115.54 8.15%
Owner’s equity (for shareholder ‘s
equity )(Yuan) 14,870,530,172.47 14,739,231,462.02 0.89%
Shares（Share） 4,662,886,108.00 4,834,482,546.00 -3.55%
Main financial indicators
Increase or decrease from
Main financial indicatiors Report period(Jan.-Jun.) The same period as last year
last year (%)
Basic earnings per share（Yuan/share） 0.12 0.22 -45.45%
Diluted earning per share（Yuan/share） 0.12 0.22 -45.45%
After deducting non-recurring gains and
0.09 0.20 -55%
losses basic earnings per share (yuan/share)
Fully diluted return on equity (%) 3.83% 6.88% -3.05%
Return rate on net assets（%） 2.6% 7.42% -4.82%
After deducting non-recurring gains and
3.03% 6.3% -3.27%
losses fully diluted return on equity（%）
After deducting non-recurring gains and
losses weighted average return on equity 2.05% 6.8% -4.75%
（%）
Net cash flow from operating activities per
0.14 0.49 -71.43%
share（Yuan/share）
Increase or decrease from
The end of report period Period end of last year
end of last year (%)
Net asset attributable to shareholder of
3.19 3.05 4.59%
listed Company (yuan/share)
Asset liability ratio (%) 62.62% 59.9% 2.72%
3
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
（II）The difference between accounting data under accounting standards for both at home
and abroad
1. Difference between net profit and net asset in the financial report according to international
accounting standards and the Chinese accounting standards
□ applied √ not applied
2. Difference between net profit and net asset in the financial report according to overseas
accounting standards and the Chinese accounting standards
□ applied √ not applied
3. Subsidiary projects having big differences
□ applied √ not applied
4. Description on difference of accounting data according to accounting standards for both at home and
abroad
□ applied √ not applied
(III) Deduction from non-recurring profit and loss project and cash
√ applied □ not applied
Project Amount（Yuan） Remarks
Gain/loss of non-current assets -933,879.22
The government subsidies included in the current
Mainly is 100 million yuan of 2012 r&d
profits and losses (except closely related to enterprise
104,918,471.02 subsidy funds allocated by Chongqing
business, quota in accordance with unified state's
Finance Bureau.
standard or quantitative government subsidies)
Other non-business income and expenditures other than the above 18,148,908.33
Influenced amount of miniority shareholders’equity -948,371.14
Influenced amount of income tax -1,481,675.59
Total 119,703,453.41 --
Description about that define projects non-recurring gains and losses as project recurring gains and losses, according to
"other gain-and-loss projects fitting the definition of non-recurring gains and losses" and the company's nomal business
properties and specialities..
Project Amount（Yuan） Definition
No 0 Not applied
IV Change in shareholdings
(I) Change in shareholdings
1. Table of change in shareholdings
4
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
□ applied √ not applied
Balance before current Balance after current
Addition and deduction（+，-） during change
change change
Additio Additio
Quantit Additional
Quantity Ratio nal Ratio Quantity Ratio nal
y issued
issued issued
Ⅰ.Non-circulated shares 373,375,588 7.72% 373,375,588 8.01%
1、State-owned shares
2、State-owned legal person
373,358,342 7.72% 373,358,342 8.01%
shares
3、Other domestic holding
shares
including: domestic
non-state legal person
shares
Domestic natural person
shares
4、Foreign-hold shares
including: foreign legal
person shares
foreign natural person
shares
5 、 share of senior
17,246 0% 17,246 0%
management
Ⅱ.Circulated shares 4,461,106,958 92.28% -171,596,438 -171,596,438 4,289,510,520 91.99%
1 、 Domestic listed RMB
3,387,524,378 70.07% 3,387,524,378 72.65%
shares
2、Domestic listed foreign
1,073,582,580 22.21% -171,596,438 -171,596,438 901,986,142 19.34%
shares
3、 Oversea listed foreign
shares
4、Others
Ⅲ.Total shares 4,834,482,546 100% -171,596,438 -171,596,438 4,662,886,108 100%
Share change approval:
On December 21, 2011, the company held the first 2011 extraordinary shareholders' general meeting, and repurchasing of
domestically-listed foreign shares (B shares) has been discussed and approved: agreed that within 6 months upon this buyback been
approved, the company will buyback not more than 269.859 million domestically-listed foreign shares with company’s own money
not more than HK $610 million, with the highest buy-back price not higher than HK $3.76 per share. Shares repurchased will be
canceled according to the law.
On March 2, 2012, the application of using no more than hk $610 million to repurchase the company's partly domestically-listed
foreign shares was approved by Chongqing Foreign Exchange Management Department under State Administration of Foreign
Exchange.
On March 30, 2012, the company completed the share buyback cancellation in the Shenzhen Branch of China Securities Depository
and Clearing Co., LTD. The company's total share capital became 4662886108 shares.
2. Listing schedule of non-circulated shares:
□ applied √ not applied
5
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(II) Issuing and Listing of Shares coupons
1. All previous securities issuance in the first three years
□ applied √ not applied
Stock and its Price Amount allowed to trade expiry
derivative Issuing date Amount Launch Date
（Yuan/share） listed transactions date
securities name
Share type
A share 2011-1-11 9.74 360,166,022 2011-1-28 360,166,022.00
Company convertible bonds, separation trading convertible bonds, corporate bonds class
corporate debt 2012-4-23 1,980,000,000 2012-6-1 1,980,000,000.00
Authority card type
All the securities issuance instructions for the first three years
(1) Issue aditional A shares
Approved by the China Securities Regulatory Commission (file no.[2010]1819), on January 11, 2011, the Company issued to the
public for a number of 360166022 shares of A shares, the issurance price is 9.74 yuan per share. The publically issued A shares have
listed on the Shenzhen Stock Exchange since January 28, 2011.
(2) Issue corporate bonds
The 26th meeting of the fifth meeting of the board of directors on January 16, 2012 6 and the first time extraordinary shareholders
meeting on February 3, 2012 passed the related bill of issuing corporate bonds.
On March 26, 2012 the company received the Reply on Approving Chongqing Changan Automobile Co., LTD. to Pulish Corporate
Bonds to the Public by the China Securities Regulatory Commission (Securities Regulatory Permission 【 2012 】 388), which
approved the company to issue coportate bonds whose face value is no more than 1.98 billion yuan to the public.
By April 26 of 2012, the company has completed the relevant issue work of bonds, raise funds of 1.98 billion yuan, whose fixed rate
are all 5 year. Bonds coupon rate is 5.30%.
2.Total number of the corporate shares, the structure change, and the liabilities structure
changes of corporate assets.
□ applied √ not applied
3.The existing internal staff share situation.
□ applied √ not applied
（Ⅲ）Shareholders and actual controllers situation
1.Total number of shareholders by the end of report period
The total number of shareholders by the end of report period is 223497 households.
2.The ten largest shareholders information
Unit： Share
The ten largest shareholders information:
Name of shareholders Percentage Non-circulated Pledged/ Frozen cases
Nature of Shares held at the
of total shares held at the
Shareholders year-end Share status amount
shares year-end
State-owned
No pledge or
China Changan Automobile Co., Ltd. legal person 44.93% 2,094,817,480.00 373,358,342.00
frozen
shares
domestic
Agricultural Bank of China- Fullgoal No pledge or
non-state legal 1.82% 84,872,349.00
Tianrui Strong Area Hybrid Fund frozen
person shares
foreign legal No pledge or
ZhongHui Fortis Investment Co., Ltd 1.78% 82,849,911.00
person shares frozen
Beijing North Jingji InvestmentState-owned 1.58% 73,800,000.00 No pledge or
6
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Consultant CompanyLimited legal person frozen
shares
State-owned
China South Industries Group Finance No pledge or
legal person 1.35% 63,000,000.00
CompanyLimited frozen
shares
foreign legal No pledge or
BONJOUR CHINA FUND 2 0.64% 29,822,717.00
person shares frozen
domestic
Bank Of China－E Fund SSE100ETF No pledge or
non-state legal 0.61% 28,280,316.00
Fund frozen
person shares
Industrial and Commercial Bank of
Chin－securities investment fund domestic
No pledge or
non-state legal 0.52% 24,346,741.00
of Chinese bank sustained growth person shares frozen
stock type
China Merchants Bank co., LTD. domestic
No pledge or
-securities investment fund of rich non-state legal 0.51% 23,961,506.00
frozen
TRW robust optimized stock type person shares
JPMBLSA RE FTIF TEMPLETON foreign legal No pledge or
0.48% 22,591,823.00
CHINA FUND GTI 5497 person shares frozen
Explanation of shareholders
The ten largest circulated shareholders
Shares at the year Type and amount of shares
Names of shareholders
end type amount
CHINA CHANGAN AUTOMOBILE COMPANY LIMITED 1,721,459,138.00 A share 1,721,459,138.00
Agricultural Bank of China- Fullgoal Tianrui Strong Area Hybrid
84,872,349.00 A share 84,872,349.00
Fund
ZhongHui Fortis Investment Co., Ltd 82,849,911.00 B share 82,849,911.00
Beijing North Jingji Investment Consultant CompanyLimited 73,800,000.00 A share 73,800,000.00
China South Industries Group Finance CompanyLimited 63,000,000.00 A share 63,000,000.00
BONJOUR CHINA FUND 2 29,822,717.00 B share 29,822,717.00
Bank Of China－E Fund SSE100ETF Fund 28,280,316.00 A share 28,280,316.00
Industrial and Commercial Bank of Chin－securities investment fund
24,346,741.00 A share 24,346,741.00
of Chinese bank sustained growth stock type
China Merchants Bank co., LTD. -securities investment fund of rich
23,961,506.00 A share 23,961,506.00
TRW robust optimized stock type
JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 22,591,823.00 B share 22,591,823.00
Among the largest ten share holders, CHINA CHANGAN AUTOMOBILE
COMPANY LIMITED, Beijing North Jingji Investment Consultant
Company Limited and China South Industries Group Finance
Explanation on the relationship and the action alike of
CompanyLimited are controlled by one final controlling shareholder China
above shareholders
South Industrries Group, who agreed to act alike as stipulated in
Administrative Measures on Information Disclosure Concerning Changes in
Shareholdings of Listed Companies.
3.The controlling shareholder or actual controller situation
（1）Change of controlling shareholders or actual controllers
□ appied √ not applied
（2）Specific introduction of the controlling shareholders or actual controllers
If there is a new actual control people?
□ Yes √ No □ Not applied
7
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Name of actual controller The South Group
Type of actual controller State-owned Assets Supervision and Administration Commission
Specification
① The controlling shareholder
Controlling shareholder: CHINA CHANGAN AUTOMOBILE GROUP CO., LTD.
Legal representative: Xu Liuping
Date of establishment: Dec 26th, 2005
Organization code: 710933394-8
Registered capital: RMB 4,582,373,700 yuan
Business scope and major products:design, development, manufacture and sales of automobile &motorcycle, automobile
&motorcycle engine, automotive and motor cycle components& parts; sales of optical products, electronic and
photoelectron products, night-time vision device, information and communication equipment; technical development,
technical transfer, technical consultation, technical training, and other technical service relative with the operation
mentioned above; imports and exports; merge and acquisition and consultation of assets restructuring.
②The controlling shareholder of the Company
The controlling shareholder of the Company: South Industries Group Corp.
Legal representative: Xu Bin
Date of establishment: June 29, 1999
Organization code: 71092492-9
Registered capital: RMB 12,645,210,000 yuan
Business scope and major products: investment and management of state-owned assets; manufacturing of guns and
firearms; engineering prospecting, designing, construction, contracting, construction supervision; equipment installation,
etc.South Industries Group Corp. is a State-owned Key Enterprise set up under the approval of the State Council, and
directly managed by SASAC of the State Council.
(3)Relationship among the Company and its controlling shareholders:
8
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
State-owned Assets Supervision and
Administration Commission of the State
Council
100%
China South Industries Group Corp
100%
China Changan Automobile Company Limited
44.93%
Chongqing Changan Automobile Co., Ltd.
（4）The actual control people control company through trust or other asset management mode.
□ applied √ not applied
4.Other legal person shareholder holding more than ten percent shares.
□ applied √ not applied
（Ⅳ）Convertible bonds situation
□ applied √ not applied
V. Directors, Supervisors, Senior Management
9
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Change in shares holding of Directors, supervisors and senior management
Among them: Stock Whether
Current Current
Initial Final holding options receive salary
increasing decreasing
Gend share share restricted quantity Reason for from
Name Position Age Starting time End time number of number of
er amount amount shares held at the change shareholder's
shares shares
(shares) (shares) quantity end(shares) unit or other
(shares) (shares)
(shares) related unit
Xu Liuping Chairman M. 48 May 24, 2012 2015-05-24 Yes
Director, Deputy Secretary May 24, 2012 2015-05-24
of the Party committee, 50 No
Zhang Baolin General manager M.
Zou Wenchao Director M. 49 May 24, 2012 2015-05-24 yes
Director, Deputy General May 24, 2012 2015-05-24
Zhu Huarong M 46 no
Manager
Wang Kun Director M 37 May 24, 2012 2015-05-24 yes
Lian Gang Director M. 52 May 24, 2012 2015-05-24 yes
Director, Deputy Secretary May 24, 2012
Wang of the Party committee, 54 2015-05-24 17,246 17,246 Not applied no
Chongsheng Deputy General Manager M.
Director, Deputy General May 24, 2012
Ma Jun 53 2015-05-24 no
Manager M.
Director, Deputy General May 24, 2012
Cui Yunjiang M 49 2015-05-24 no
Manager, Board Secretary
Ma Junpo Director M. 47 May 24, 2012 2015-05-24 yes
10
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Ouyang May 24, 2012
54 2015-05-24 no
Minggao Independent Director M.
Dong Yang Independent Director M. 56 May 24, 2012 2015-05-24 no
May 24, 2012 no
Chen Zhong Independent Director 56 2015-05-24
M.
Wang M. May 24, 2012 no
Independent Director 54 2015-05-24
Zhixiong
Peng M. May 24, 2012 no
Independent Director 49 2015-05-24
Shaobing
Chairman of supervisory M. May 24, 2012
Yang Jian 48 2015-05-24 yes
board
Cai Yong Supervisor M. 39 May 24, 2012 2015-05-24 no
Liang Supervisor M. May 24, 2012 no
40 2015-05-24
Guangzhong
Chen Lingtao Supervisor F 43 May 24, 2012 2015-05-24 no
Liu Hong Supervisor M 42 May 24,2012 2015-05-24 no
Yuan Supervisor M May 24,2012 no
43 2015-05-24
Xueming
Wang Lijun Supervisor F 42 May 24,2012 2015-05-24 no
Huang Deputy M May 24,2012 no
44 2015-05-24
Zhongqiang
Song Jia Deputy M 47 May 24,2012 2015-05-24 no
Ren Qiang Deputy M 52 May 24,2012 2015-05-24 5,749 5,749 Not applied no
11
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Luo Deputy M May 24,2012 no
49 2015-05-24
Minggang
Du Yi Deputy M 45 May 24,2012 2015-05-24 no
Gong Bing Deputy M 43 May 24,2012 2015-05-24 no
Wang Jun Deputy M 40 May 24,2012 2015-05-24 no
Liu Bo Deputy M 46 May 24,2012 2015-05-24 no
Li Jun Board Secretar F 43 May 24,2012 2015-05-24 no
合计 -- -- -- -- -- 22,995 22,995 -- --
The equity incentive situation of directors, supervisors, and senior management awarded during the report period.
□ applied √ not applied
12
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(II) Situation of jobs
Jobs taken in shareholding parties
√ Applicable □ Not applicable
Take
renamerations
Name Name of the shareholder Job taken Job started Job ended form the
shareholding
position
China Changan Chairman and Secretary of
Xu Liuping Yes
Automobile Group CPC committee
China Changan
Zou Wenchao Director and President Yes
Automobile Group
China Changan
Zhang Baolin Director No
Automobile Group
China Changan Deputy Secretary of CPC
Zhu Huarong No
Automobile Group committee
China Changan Deputy Secretary of CPC
Yang Jian Yes
Automobile Group committee
China Changan
Lian Gang Vice President Yes
Automobile Group
China Changan Director,
Wang Kun Yes
Automobile Group Chief accountant
Assistant to the President and
China Changan
Ma Junpo General manager of strategy Yes
Automobile Group
department
Particulars about jobs taken
Jobs taken in other parties
√ Applicable □ Not applicable
Take
renamerations
Name Name of the parties Positions Job started Job Ended form the
shareholding
position
A member of the board of
Ouyang Minggao Tsinghua University governors, vice director of Yes
Academic Committee
China Association of Executive vice president, the
Dong Yang Yes
Automobile Secretary-General
13
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Manufacturers
New China Fund
Chen Zhong Chairman Yes
Management Co., Ltd.
Beijing JUN HE LAW
Wang Zhixiong Copartner Yes
OFFICES
Accounting College of
Peng Shaobing Southwestern University Dean of College Yes
of Finance and Economics
Particulars about This table only lists the independent director’s main job and duties.
III) Annual Remunerations of the Directors, Supervisors and Senior Executives
Decision making
The annual remuneration of directors, supervisors, senior management personnel except independent
procedures for
directors will be paid in accordance with the regulations of the salary management and grade standards
remunerations of
specified by China South Industries Group Co. The remuneration for the independent directors shall be
the Directors,
proposed by the Remuneration and Assessment Committee of the Board and approved by the Board and
Supervisors and
Shareholders Meeting.
Senior Executives
The assessment of the senior executives of the Company is divided into annual assessment, midterm
assessment, expiration assessment and “looking back" assessment. The annual assessment for senior
executives is business performance evaluation, staff representatives and some departments will carry
out democratic evaluation and special assessment for senior executives, the assessment results will be
timely fed back with pointing out of the existing problems shortcoming and the suggestions for
Basis for
improvement, which will be helpful to improve their work in their new year, at the same time their
remunerations of
annual work performance is summarized according to the result of the assessment. The midterm
the Directors,
assessment is mainly for appraising the status of the fulfillment of the duties of senior executives and
Supervisors and
the result is relating to targeted training, promotion, post exchange training, etc; expiration assessment
Senior Executives
is mainly for democratic assessment appraised by employee representatives and some departments, the
assessment result is relating to targeted training, promotion, post exchange training, appointment and
dismissal, etc; newly appointed chief leader " looking back" appraisal is to " look back" after the chief
leader being adjusted, to timely understand the work status of the new team, to check out new team
configuration effect, to accelerate the new team, and to reduce the employment risk.
Actual payment to
Basic salary will be paid to the senior executives monthly, annual performance award will be paid
directors,
one-off at a certain proportion based on the annual appraisal result, the remaining payment will be
supervisors and
postponed according to the business situation of the company.
executives
(IV) Alternation of Directors, Supervisors, and Senior Executives
Name Jobs taken Changed Date of change Cause of change
New election the board of supervisors
Yuan Mingxue Supervisor New appointment 2012-05-24
14
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Liang New election the board of supervisors
Supervisor New appointment 2012-05-24
Guangzhong
New election the board of supervisors
Zhang Jingjing Supervisor Resign 2012-05-24
New election the board of supervisors
Shi Jinggang Supervisor Resign 2012-05-24
（V）The Employees
Number of employees in position 14,780
Retired employees on the Companys expense 3,144
Composition of professions
Categories of professions Number of persons
Production 5,876
Sales & Marketing 841
Technicians 5,756
Finance & Accounting 209
Executive 2,098
Education background
Categories of education Number of persons
Post doctor degree 2
Doctor’s degree 61
Master’s degree 675
Bachelor’s degree 6,994
College diploma 2,618
High school and below 4,430
VI. Board of Directors’ Report
(I) Business Analysis
In the first half of 2012, the company continued to promote leading business plan, taking " combat, development, lean management"
as the key, strived to work hard in research and development capabilities, product structural adjustment, quality improvement, and
has obtained some results. Honor, Eado, YueXiang V3 have been successfully launched, Raeton, YueXiangV5, CS35, M201, EA12,
15
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
D18T projects have been continuing to advance, key projects S301, C202, A301, S series engines have been accelerating to develop;
R & D efficiency has been promoted. Sales of Taurustar, Honor, Eado, CX20 has been rising, bicycle profitability has been
continuing to increase. The quarter sales recovered good and the operating performance has been growing quarter-on-quarter.
During the reporting period, because of fatigue and weakness of the macroscopical economy, industry slowdown, sales dropping of
independent brands, especially medium and small displacement automobile and other unfavorable factors, the company and its
subsidiary, and JVs produced 855900 vehicles in total, decline of 7.97% year-on-year; sales of 891900 vehicles, decline of 5.79%
year-on-year. Sales of mini cars are 329800 units, down 8.85% year-on-year. In the Chinese car market, the company has about
9.19% market share, sales continued to rank Top 4 in China auto industry.
Whether the actual performance is exceeding or lower than the forcasting or business plan released previously by 20% or over.
√ Applicable □ Not applicable
Business performance of main subsidiaries or affiliates:
No. Item 2012-06-30 2012-01-01 Change
1 Accounts receivable 691,973,911.09 505,707,438.05 36.83%
2 Other receivables 303,525,409.80 117,398,622.23 158.54%
3 Construction in progress 4,696,464,552.90 2,795,536,908.98 68.00%
4 Taxes payable -114,883,802.62 -189,619,697.33 -39.41%
5 Bonds payable 1,960,410,400.00 0.00 -
6 Other current liabilities 1,635,650,110.21 1,294,435,509.96 26.36%
Income statement items 2012-01-06 2011-01-06 Change
7 Marketing expenses 1,296,244,787.45 1,016,579,465.35 27.51%
8 Financial expenses -8,913,423.40 -84,132,888.64 -89.41%
9 Investment income 732,741,472.73 1,040,648,180.63 -29.59%
10 Total profit 507,906,091.24 1,119,500,684.54 -54.63%
11 Income tax expense -42,861,009.89 84,760,560.93 -150.57%
Net profit attributable to shareholders
12 570,029,439.95 1,040,060,233.01 -45.19%
of the listed company (yuan)
Cash Flow Statement 2012-01-06 2011-01-06 Change
Net cash flow generated by business
13 675,456,384.06 2,378,405,526.54 -71.60%
operation,
14 Cash flow generated by investing -2,624,428,076.52 -1,872,927,035.45 -40.12%
15 Net cash flow generated by financing 1,316,105,192.96 3,321,166,674.81 -60.37%
Net increase of cash and cash
16 -632,145,640.94 3,827,965,500.51 -116.51%
equivalents
As of the end of the reporting period, the company's total assets are 39.5 billion yuan, increased by 8.15% than the beginning of the
year, and the total liabilities is 24.7 billion yuan, increased by 13.05% than the beginning of the year, and the asset-liability ratio is
62.64%, up by 2.74% than the beginning of the year, which are caused by debt financing of 1.98 billion Yuan. In the asset structure,
16
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
monetary funds accounted for 10.73%, 2.61% lower than the beginning of the year, mainly because the financing raised by newly
issuance of additional A shares has been invested into the projects; stock accounted for 9.17%, 2.71% lower than the beginning of the
year, mainly caused by the slowdown of the auto industry and strict control in stock; engineering accounted for 11.89%, increased by
4.23% than the beginning of the year, mainly because of the investment in the construction of Yuzui base engine project, auto testing
proving ground project and Beijing Changan sedan project.
During the reporting period, the increase of the marketing expenses is because of the increase of the product marketing and
promotion expenses; substantial increase of the financial expenses is mainly because of the increase of the bonds payable interest
payments and the decrease of the bank deposit interest income; the decrease of the investment income is mainly caused by decrease
of our joint ventures CFMA and JMC holding net profit; the substantial decrease of company total profit and net profit attributable to
the parent and the owners of the company is mainly caused by sales decline, costs increase and reduction of the investment income
from the joint ventures; the decrease of the tax expense is mainly because of the deficit of the parent company in the first half year
and the confirmation of deferred income tax assets.
During the reporting period, net increase of cash and cash equivalent is -632 million yuan, down 116.51% year-on-year. The net cash
flow generated from operating activities is 675 million yuan, down 71.6% year-on-year, the main reason is the decrease of cash
received from car sales; net cash flow generated from investment activities is -2.664 billion yuan, outflow of 7.52 million yuan more
than the same period, the main reason is the investment for the construction of Yuzui base engine project, auto testing proving ground
project and Beijing Changan sedan project; net cash flow generated from financing activities is 1.316 billion yuan, decrease of
16.37% year-on-year, mainly because financing amount of additional issuance of A share is more than the amount of debt financing
from distribution firm.
Business performance of main subsidiaries or affiliates:
During the reporting period, because the investment income decreased by 264 million yuan from the joint venture CFMA, the
performance of the company has been greatly affected
All risky factors that could influence the realizing of development strategies and business targets:
The global economic recovery is slow, the domestic economic development is unbalanced, uncoordinated and not sustainable,
economy growth is with downward pressure, various potential risks and contradictions are increasing; the domestic automobile
market is slowing down, for OEMs, their few years’ expansion production capacity has gradually released, industry competition
became more intensely; International auto giants are trying their hard to explore the Chinese market, the independent brand car
enterprises operating pressure is further increasing; the uncertainty of related policy, bring more business risks to automobile
enterprises.
1、Main business and operation
(1) Statement of main businesse segments on
In Yuan
Main business in industry
On industry or Turnover Operation cost Gross profit Increase/decrease Increase/decrease Increase/decrease of
product ratio % of turnover over of operation cost gross profit ratio over
the same period of over the same the same period of
last year (%) period of last year last year (%)
(%)
Vehicle
14,044,230,554 11,823,250,311 15.81% -3.39% -5.42% Increase 1.81%
manufacturing
Products
17
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
On industry or Turnover Operation cost Gross profit Increase/decrease Increase/decrease Increase/decrease of
product ratio % of turnover over of operation cost gross profit ratio over
the same period of over the same the same period of
last year (%) period of last year last year (%)
(%)
Whole
13,573,434,667 11,465,723,137 15.53% -2.63% -4.50% Increase 1.66%
vehicles
Others 470,795,887 357,527,174 24.06% -21.17% -27.74% Increase 6.90%
Statement of main businesse segments on industries and products
□ Applicable √ Not applicable
Statement of significant change of gross profit over the same period of previous year
□ Applicable √ Not applicable
(2) Business segments on territories
In Yuan
Regions Turnover Change of turnover YoY (%)
Domestic 13,906,032,325.00 -2.57%
Foreign 138,198,229.10 -47.73%
(3) Major change in the primary business or its structure
□ Applicable √ Not applicable
(4) Statement on major change in primary business profitability (gross profit ratio)
□ Applicable √ Not applicable
(5) Analyze of major change in profit composition
□ Applicable √ Not applicable
（6）The nature of business, main products or services and net profit of the share holding companies which
contributed more than 10% net profit
√ Applicable □ Not applicable
In Yuan
Name Main products Business income net profit
Mondeo, New Focus, Classic Focus, new
CFMA Fiesta, Mazda 3, Mazda 2, S-MAX, S40, S80, 24,469,989,984.39 1,093,140,279.29
Volvo car
Jiangling Control Landwind MPV and Sedan 674,317,645.03 262,429,641.51
（7）Management problems and difficulties
First, marketing service is still the bottleneck, big gap between sales progress and annual goal; second, market and customer oriented
fast response not fast enough. Facing these problems and difficulties, the company will closely follow the country’s policies of
promoting consumption and stable growth, taking doubling the efficiency as the main, to strengthen the management, improve the
sales, strengthen the strategic planning, improve quality, ensure new product progress, control the raw materials, lower energy prices,
strictly control the cost, and comprehensively enhance the management quality.
18
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(II) Company investment
1. Overall application of finance raised
[V]Applicable; [] Not applicable
In RMB10 thousand
Total of proceeds 344,558.69
Total of proceeds invested in the report
74,065
term
Total of proceeds invested 336,312
Total of proceeds changed to other use in
0
the report term
Accumulated proceeds changed to other
0
use
% of accumulated proceeds changed to
0
other use
Statement on overall application of finance raised
As of June 30, 2012, 3363120940.01 yuan of finance raised has been used in fund-raising projects. 2622473385.90 yuan has been
invested before 31 December 2011, 740647554.11 has been invested between Jan. 2012 and Jun. 2012. There’s no illegal use of
finance raised during the reporting period.
During the reporting period, corporate bond has been issued to the public and raised funds of 1.98yuan. This period of all bonds is 5
years with fixed interest rate. The bond coupon rate is 5.30%, the use of funds is as a complement to the production and operating
activities cash flow.
19
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
2. Situations of projects to be financed by the proceeds
√Applicable; [] Not applicable
In RMB10 thousand
Total of Total Amount Accumulated Investment Date when the Gains in the Gains as Major
If investment proceeds to be investment after invested this investment at progress at end project become report term expected change in
Project promised to be invested by project changed invested as adjustment report term end of report of report useable as feasibility
the proceeds (including proposed term (2) term(%)(3)＝ proposed
partially (2)/(1)
Project set by the prospectus
Expanding Project of Automobile Not applicable
No 164,319 164,319 28,816 161,064 98.02% 2012/1/31 9,090 No
Production line Note2
Small displacement engine Not applicable
No 197,911 197,911 45,249 175,248 88.55% 2012/6/30 9,686 No
industry upgrading Project Note3
Subtotal of investment promised - 362,230 362,230 74,065 336,312 - 18,776- -
Investment project of premium
surplus
- - - - - - - - - - -
Repaying of bank loans (if any) - - - - - - -- -- -- --
Used as current capital (if any) - - - - - - -- -- -- --
Subtotal of premium proceeds - - - - - - -- -- -- --
Total - 362,230 362,230 74,065 336,312- - 18,776- -
Reason or situation that not on schedule (on specificNote 2: in the intention abstract on issuance of additional A shares, the company stated that after the SOP of the production line capacity expansion
20
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
project) project of the annual production capacity in total can be 220000 mini buses, annual sales income of 11.31422 billion yuan and total profit of
339760000 yuan can be realized. At present, the project has not yet started the production. From Jan. 2012 to Jun. 2012, the company’s raised project
automobile production lines has produced and sold 58671 Taurustar and 24760 Horner, and sales revenue of 2.88948 billion yuan and total profit of
90.9 million yuan has been achieved.
Note 3: in the intention abstract on issuance of additional A shares, the company stated that after the SOP of small displacement engine upgrading
project, newly increased annual production capacity of CC series engine would be 120000 units, newly increased annual production capacity of CB
series engine would be 300000 units, and annual sales income of 4034760000 yuan and total profit of 262080000 yuan can be realized.At present,
the project has not yet started the production, From Jan. 2012 to Jun. 2012, the company’s raised project engine production line has produced and
sell 61,21 engines, and sales revenue of 654.53 million yuan and total profit of 96.86 million yuan has been achieved.
Statement on major change in feasibility No
Amount, usage and progress of premium surplus Not applicable
Change of location of project to invest Not applicable
Adjustment on implementation of project invested Not applicable
Pre-investment and replacement by proceeds Not applicable
Idle proceed used as working capital Not applicable
Surplus of investment and causation Not applicable
Application plan of retained fund from financing not used finance raised is saved in company’s special account for finance raised
Problem or situation in using of proceeds and
No
disclosing
Note 1: the net amount of the company’s actual finance raised is 3445586919.48 yuan, lower than the total planned investment amount stated in the intention abstract for the fund-raising projects.
According to intention abstract, the rest funds will be resolved by the company.
21
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
3. Altering of projects financed by proceeds
□ Applicable √ Not applicable
4. Major projects invested by non-financing capital
√Applicable □Not applicable
In RMB10 thousand
First announcement Amount of
Project Name Progress of the project Project income
date of disclosure money
The project has not yet been
Auto proving ground project 2010-2-11 119,642
81% completed.
The project has not yet been
Beijing sedan project 2010-11-23 432,742
86% completed.
Total 552,384 -- --
Major projects invested by non-financing capital
Among the above investment projects, Beijing passenger car construction project phase one has been completed;
foundation and roadbed earthwork of auto proving ground project have been basically completed, road pile preloading has
been completed, 99% of bridge engineering (including No.1, 2, 3, 4 bridges) has been finished, 70% of water supply and
drainage engineering has been completed, 30% of headquarters building in comprehensive service area has been completed.
(III) Revising of business plan of the second half of year by the Board
□ Applicable √ Not applicable
(IV) Prediction of business performance for Jan-Sept 2012
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
□ Applicable √ Not applicable
(V) Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the
current report period
□ Applicable √ Not applicable
(VI) Statement of the Board on the variation and treatment of events that involved in the
“non-standard auditors’ report” issued by the CPA on previous fiscal year
□ Applicable √ Not applicable
(VII) Results of disccusion by the Board on the causation and impact of change in accounting
policies and estimations or correction of material accounting errors
□ Applicable √ Not applicable
(VIII) Making and implementation of cash dividend policies
Implementation profit distribution policy is strictly in accordance with the “Articles of Association ", and cash dividend policy
planning and implementation are in line with the “Articles of Association” and the requirements of the resolution decided by the
general meeting of shareholders.
On July 27, 2012, in the third meeting of sixth Board of Director, profit distribution policy specified in “Articles of Association " had
been revised, and had been submitted to the third provisional shareholders meeting in 2012 for approval. This revision stressed the
return consciousness; improved the company's profit distribution policy especially the cash dividend policy. The revised cash
22
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
dividend policy is more complete and clear, standards and the proportion of dividends are clear, decision-making process and
mechanism are complete, responsibilities of independent directors are clear and can play its right role, medium and small
shareholders can fully express their opinions and demands, the legitimate rights and interests of small shareholders are protected. It is
better to protect the investors especially the medium and small investors' legitimate rights and interests.
(IX) Profit distribution or capitalizing of common reserves
□ Applicable √ Not applicable
(X) Situation of positive retained profit at end of 2011 but no cash dividend was proposed
□ Applicable √ Not applicable
（XI）Other issues to be disclosed
On December 21, 2011, the company held the first 2011 extraordinary shareholders' general meeting, and repurchasing of
domestically-listed foreign shares (B shares) has been discussed and approved: agreed that within 6 months upon this buyback been
approved, the company will buyback not more than 269.859 million domestically-listed foreign shares with company’s own money
not more than HK $610 million, with the highest buy-back price not higher than HK $3.76 per share. Shares repurchased will be
canceled according to the law.
On March 2, 2012, the application of using no more than hk $610 million to repurchase the company's partly domestically-listed
foreign shares was approved by Chongqing Foreign Exchange Management Department under State Administration of Foreign
Exchange.
On March 12, 2012, the company officially implemented buy-back. As of March 20, 2012, accumulative total of company B shares
buy-back volume is 171596438 shares which is 3.55% of the total capital, the highest price for the purchase was HK $3.68 / share,
the lowest price was HK $3.29 / share, the amount is HK $609998194.10 (including tax ) in total. According to the buy-back
proposal, the use of funds for repurchasing amount has reached the maximum limit of HK $610000000, so buy-back program has
been completed, and buy-back period expired in advance.
On March 30, 2012, the company completed the share buyback cancellation in the Shenzhen Branch of China Securities Depository
and Clearing Co., LTD. The company's total share capital became 4662886108 shares.
（XII）Change in liability and credit situation, and cash arrangement for repaying of debts
(This form is only for PLCs which issued convertible bonds.)
□ Applicable √ Not applicable
VII. Significant Events
（I）General situation of administration
The Company has been following with the Company Law, Securities Law, and Administration Rules of PLCs, as well as those
regulations and documents, kept improving its administration practice. A number of internal regulations and criteria have been
established focusing on internal control including: the Articles of Association, Rules of Shareholders Meeting, Rules of Board
Meeting, Rules of Supervisory Meeting, General Manager Working Criteria, and Internal Control System. A mature administration
structure including the shareholders meeting, board of directors, supervisory committee and executive level was established. In
23
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
accordance with the Administration Standard of Public Limited
(II) Prepared in the previous period, during the reporting period the profit distribution plan， fund 转增股本
plans or issue new shares scheme implementation Provident
□ available √ non-available
(III) Major litigation and arbitration matters
□ available √ non-available
There was no major litigation, arbitration during this period
(IV) Bankruptcy reorganization matters related
□ available √ non-available
(V) The company holds the other listing Corporation shares, shares of financial companies equity
case
1、Securities investment
□ available √ non-available
2、Holders of other listing Corporation ownership situation
□ available √ non-available
Account for
Reporting During the
Intinial the The final
Securities Securities period reporting Accounting
investment proportion of book value Source of stock
code referred to as income period, changes subjects
cost(yuan) company (yuan)
(yuan) in equity (yuan)
shares（%）
Available The Southwest
Southwest for sale Securities
600369 50,000,000 0.76% 179,967,500 0 48,732,625
Securities financial backdoor
assets listing
The new
Available
merged with
600015 Hua xia bank 8,149,714 0.11% 81,709,480 0 -9,604,320 for sale
Changan bus
financial
cast
Total 58,149,714 -- 261,676,980 0 39,128,305 -- --
3、Hold unlisted financial enterprise equity case
□ available √ non-available
24
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Account for During the
Reporting
Intinial holding the The final reporting
period Accounting Source of
name investment quantities(s proportion of book value period,
income subjects stock
cost hare) company (yuan) changes in
(yuan)
shares（%） equity (yuan)
China South
Long term equity Investme
Group financial 80,000,000 5.33% 80,000,000 0.00 0.00
investment nt
company
Toatl 80,000,000 -- 80,000,000 0.00 0.00 -- --
4、The sale of other listing Corporation shares
□ available √ non-available
（Ⅵ）Asset transactions
1. purchase of assets
□ available √ non-available
2.Sale of assets
□ available √ non-available
3.Exchange of assets
□ available √ non-available
4. Enterprise merger
□ available √ non-available
5. Since the assets reorganization report or buying and selling assets after the publication of the
notice, The matters of progress and the reporting period the operating results and financial position
of influence
□ available √ non-available
（Ⅶ）The major shareholder of the company and the concerted action person during the reporting
period proposed or implemented stock increases holds plan description
√ available □ non-available
25
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
In May 29, 2012 the company received notice of The controlling shareholder of China Changan and its wholly-owned
subsidiary company named Zhonghuifutong holdings as following
1. Overholder: Zhonghuifutong Investment Co.Ltd, it is China's Changan in Hongkong set up a wholly-owned subsidiary
company.
2. The purpose and plan of holdings: The purpose of China Changan through the holdings of shares of the company's is based on
the company's future sustained and stable development of confidence, And plans through share holdings to share profit. For the first
time since the holdings within 12 months ,China Changan plans through the Zhonghuifu increases holds this corporation stock ratio
does not exceed 2% of the total share capital of the company
3. The holdings of the implementation of the plan: From 26th, Mar,2012, China Changan through Zhonghuifu holdings of the
company's shares;29th , May,2012, The Zhonghuifui cumulative increases holds this corporation stock ratio reached the company
issued shares of 1%, in the same day, Zhong Huifu through Continue to holdings of shares of the company in proportion to the
company 1.78% of the issued sharesbetween 26th, Mar,2012 to 29th , May 2012, China Changan through Zhonghuifu through the
Shenzhen Stock Exchange trading system to centralized bidding holdings of the company shares to total 82849911 shares, The
proportion of increase is 1.78%
Before this time increases holds, China Changan hold in the company 2094817480 shares, Companies accounted for 44.93%
of the issued shares, The Zhonghuifutong did not hold shares of the company, after this time increasing holding, China Changan and
The concerted action person in the company Zhonghuifutong together hold 2177667391 shares, Companies accounted for 46.70% of
the issued shares. China Changan and the Zhonghuifutong promised holdings in the period does not reduce the shares of the
company.
4. By the 29th, May,2012, Zhonghuifutong Total holdings of the company shares to total 82849911 shares,, Companies
accounted for 1.78% of the issued shares, China Changan holdings of this plan have been implemented.
5. China Changan and the Zhonghuifutong commitment within the statutory time limit does not reduce the shares of the
company
（Ⅷ）Company equity incentive implementation and its impact
□ available √ non-available
（Ⅸ）Major related transactions
1.Daily operation and the related transaction
□ available √ non-available
2. Asset acquisition, sale of related party transactions
□ available √ non-available
3. Common foreign investment in material associated transactions
□ available √ non-available
4. Relationship between creditor's rights and liabilities
The presence of non-operating related credits and liabilities
26
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
□ available √ non-available
5. Other major affiliated transactions
In May 25, 2012, the 2011 Annual General Meeting of shareholders to consider the adoption of 《On the ordnance equipment
group finance company signed < Financial Services Agreement > Motion"》。According to the agreement, the financial department of
China South Group will provide maximum deposit balance of not more than 2000000000 yuan deposit service within 2012 , the
maximum credit amount is 2000000000 yuan of credit and credit services
By the end of June,2012, The company in financial company deposit balance of 1332000000 yuan, without the loan, Not exceed
the "financial services agreement" the relevant provisions. The company in financial company deposit safety and good fluidity, No
financial company due to lack of delayed payment of cash.
（Ⅹ）Major contracts and its implementation
1. Bring profit to the company this period profit total is more than 10% (including 10%) hosting,
Contracting, leasing matters
（1）Depository
□ available √ non-available
（2）Contracting
□ available √ non-available
（3）leasing matters
□ available √ non-available
2. Security situation
□ available √ non-available
3. Commissioned by the financial situation
□ available √ non-available
（Ⅺ）Distribution firm debt explanation
√ available □ non-available
The January 16, 2012 meeting of the fifth session of the twenty-six meeting of the board of directors and held in February 3,
2012 2012 the first provisional shareholders meeting to consider, on the distribution firm bonds related to motion The company
received the China Securities Regulatory Commission <> ]([2012] securities license No. 388) permitted company issued publicly to the society value of not more than 1980000000 yuan
of corporate bonds.
27
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
By 26th ,Apr,2012, The company has completed the relevant bond issue, 1980000000 yuan fund-raising, This period the bond
for all the fixed rate of 5 years duration varieties.Bond coupon rate of 5.30%
（Ⅻ）Commitments to fulfill condition
1. The company or the shareholders holding 5% or more shareholders during the reporting period or
lasting to the report period commitments
√available □non-available
The
Commitment Item Item Time Period Action
promise
1.Will abide by the laws, regulations By the end of reporting
and rules, to perform the legal term, Limited
obligations.2. Held by the original conditions of the sale of
non-tradable shares from obtaining the shares of the company
right to list and trade date, At least 24 held by the shareholders
months is not publicly traded or of China Changan
transferred, The 24 months after the 2094817480 shares, The
expiration of the term of, Non-tradable 1721459138 conditions
shareholders stock exchange through for the unlimited sale of
China the sale of shares, The sale of shares shares, The remaining
The commitments of stock reform
Changan of the company accounted for the 373358342 shares for
proportion of the total number of the limited conditions of
within 12 months and not more than the sale of shares,
five percent, In 24 months of no more According to the
than ten percent,3. Company in the commitments to the
shares changed after the completion of management equity
According to the national related incentive plan
management systems and methods for implemented after the
implementing the management equity lifting of restrictions on
incentive plan sale.
In order to avoid and eventually solve
the possible competition or potential
competitors, Better maintain the
interests of investors, the company
controlling shareholder China
Other small shareholders China Changan commitment:1 In two Yet to fulfill the
commitment Changan consecutive years profit of Jiangxi conditions
Changhe Auto.CO.Ltd and Harbin Hf
Automobile Industry Group Co, With
the continuous development ability
and management level is improved
significantly under the condition of,
28
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Proposed that two enterprises into the
company,2. ]In Changan Peugeot
Citroen Automobile Company Limited
built and put into operation, Proposal
will hold its joint venture company
equity in all transferred to the
company.
Whether the promise fulfilled in a
non-available
timely manner
The unfinished fulfil the specific
reason and plan the next step
Whether leads to competition and
the problem of related party yes
transaction commitment
Commitment to the settlement
no
period
Solution way Acquisition of assets
Commitments Yet to fulfill the conditions
2.The assets of the company or project has a profit forecast, And the report period is the period of
profit forecast, Company assets or projects to achieve the profit forecast and the reason to explain
√ available □ non-available
See the company to raise funds to use case descriptions.
（十三）Other comprehensive income breakdown
Unit:Yuan
Item This term last term
1.Available for sale financial assets generated profit (loss) amount of money 44,526,740.00 14,555,000.00
Less: financial assets available for selling the influence to income tax 5,398,435.00 2,183,250.00
Early into the other comprehensive income current into the profit and loss of
the net
Sub-total 39,128,305.00 12,371,750.00
2. According to the equity method of accounting in the investment unit of other
comprehensive income in the share
Less: According to the equity method of accounting in the investment unit of
other comprehensive income tax influence
Early into the other comprehensive income current into the profit and loss of
the net
29
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Sub-Total
3. A cash flow hedging tools produce profit (or loss) amount of money
cash flow hedging tools produce the influence to income tax
Early into the other comprehensive income current into the profit and loss of
the net
Turn as a hedged item initial confirmation amount amount of adjustment
Sub-Total
4. Translation of foreign currency financial statement balance
Disposal of overseas business current into profit and loss of the net
Sub-Total
5. Others
Other credited to other comprehensive income generated by the impact of
income tax
The other included in other comprehensive income or loss of the current into
the net
sub-total
Total 39,128,305.00 12,371,750.00
（十四）During the reporting period the reception research, communication, interviews and other
activities registration form
Date Location manner Reception object Content discussed and material offered
Meeting Room, On-Site Automotive Industry Development and
2012.1.16 CITIC Securities
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.2.14 HuaAn Funds
Changan Headquarters Survey Company’s Business
E Fund Management、Fortune SG Fund
Meeting Room, On-Site Automotive Industry Development and
2012.2.16 Management、Shenyin & Wanguo
Changan Headquarters Survey Company’s Business
Securities
Meeting Room, On-Site Automotive Industry Development and
2012.2.21 Shenyin & Wanguo Securities
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.2.29 CSC
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.3.1 Orient Securities
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site China Alpha Investment Management Automotive Industry Development and
2012.3.14
Changan Headquarters Survey Limited Company’s Business
30
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Meeting Room, On-Site Automotive Industry Development and
2012.4.10 HuaChuang Securities
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.2 China Great Wall Securities Co.Ltd.
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.9 Nomura International HK
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.9 UBS Securities Co.
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.11 CSC、Dacheng Fund
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.16 Morgan Stanley
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.5.17 Korea Investment & Securities Co.Ltd.
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.6.13 Taikang Asset Management Co.
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.6.19 Everright Securities
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.6.21 Founder Securities Co.
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.6.27 BOC International (China) Limited
Changan Headquarters Survey Company’s Business
Meeting Room, On-Site Automotive Industry Development and
2012.6.28 Credit Suisse
Changan Headquarters Survey Company’s Business
（十五）The appointment, dismissal of the accounting firm
Wether Semi-annual report have been audited or not
□ Yes √ No □ non-available
Whether the accounting firms to hire
□□ Yes √ No □ non-available
（十六）Listing Corporation and its directors, supervisors, senior managers, shareholders, The
actual controller and the purchaser punishment and rectification
□ available √ non-available
31
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
（十七）Other important matters Explain
√ available □ non-available
In December 21, 2011, the company held in 2011 the first provisional shareholders meeting, Considered and adopted by buying
part of domestic listed foreign shares (B) shares related matters: The company agreed to from the general meeting of shareholders
through the share buyback resolution within 6 months from the date of decision, With no more than HK $610000000 of its own funds,
The repurchase price is not more than 3.76 dollars / share, repurchase up to more than 269859000 shares of domestic listed foreign
shares (b), To repurchase the shares will be canceled in accordance with the law
In March 12, 2012, the company officially implemented repurchase. By 20th, Mar,2012, Company a total volume of 171596438
shares B shares buy-back, To account for the company total capital ratio was 3.55%, Buying the highest at $3.68 / share, the lowest
price of HK $3.29 / share. Total amount paid HK $609998194.10 (including tax). According to the buy-back program, the use of
funds to repurchase amount has reached a maximum limit of $610000000, Buy-back program completed, and regards as the deadline
expires repurchase
In30th, Mar.2012, The company has been finished in the China Securities Depository Shenzhen branch and Clearing
Corporation Limited for completion of share buy-back write-off, The company's total share capital of 4662886108 shares change.
These relevant elements are disclosed in "China Securities News", "Securities Times" and （http://www.cninfo.com.cn）of the
relevant notice.
（十八）The company bond guarantors profitability. Condition of assets and credit status of a
significant change in the situation
(this form is only applicable to distribution firm convertible bonds of listing Corporation to fill in)
□ available √ non-available
（十九）Information disclosure index.
Published in the newspaper and Publish Internet sites
Item Issue Date
page for and search path
Changan Automotive in 2011 China Securities News", "Securities
2012-1-14 http://www.cninfo.com.cn/
December production. Times", "Hongkong Commercial Daily
The resolution of the board of China Securities News", "Securities http://www.cninfo.com.cn/
directors Bulletin (five twenty-six Times", "Hongkong Commercial Daily 2012-1-18
times)
About holding 2012 the first China Securities News", "Securities http://www.cninfo.com.cn/
provisional shareholders meeting Times", "Hongkong Commercial Daily 2012-1-18
notice
China Securities News", "Securities http://www.cninfo.com.cn/
The 2011 Annual Performance Trailer 2012-1-20
Times", "Hongkong Commercial Daily
2012 the first provisional shareholders China Securities News", "Securities http://www.cninfo.com.cn/
2012-2-4
meeting notice resolution Times", "Hongkong Commercial Daily
Changan Automotive in 2012 Jan. China Securities News", "Securities http://www.cninfo.com.cn/
2012-2-11
production. Times", "Hongkong Commercial Daily
32
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
The resolution of the board of China Securities News", "Securities http://www.cninfo.com.cn/
directors Bulletin (five twenty-seven Times", "Hongkong Commercial Daily 2012-2-18
times)
The 2012 Changan auto B shares China Securities News", "Securities http://www.cninfo.com.cn/
2012-3-3
repurchase Report Times", "Hongkong Commercial Daily
On the distribution firm bonds granted China Securities News", "Securities http://www.cninfo.com.cn/
by China Securities Regulatory Times", "Hongkong Commercial Daily 2012-3-8
Commission approval notice
Changan Automotive in 2012 Feb. China Securities News", "Securities http://www.cninfo.com.cn/
2012-3-10
production. Times", "Hongkong Commercial Daily
On the part of B shares repurchase China Securities News", "Securities http://www.cninfo.com.cn/
announcement implementation Times", "Hongkong Commercial Daily 2012-3-13
progress
On the part of B shares repurchase China Securities News", "Securities http://www.cninfo.com.cn/
announcement implementation Times", "Hongkong Commercial Daily 2012-3-20
progress
On the part of B shares repurchase China Securities News", "Securities http://www.cninfo.com.cn/
2012-3-28
announcement implementation progress Times", "Hongkong Commercial Daily
Distribution firm bond was the China China Securities News", "Securities http://www.cninfo.com.cn/
Securities Regulatory Commission Times", "Hongkong Commercial Daily 2012-3-28
approval notice
Changan automobile repurchase China Securities News", "Securities http://www.cninfo.com.cn/
program completed and share change Times", "Hongkong Commercial Daily 2012-3-31
report
Changan Automotive in 2012 Mar. China Securities News", "Securities http://www.cninfo.com.cn/
2012-4-10
production. Times", "Hongkong Commercial Daily
The 2011 Annual Performance China Securities News", "Securities http://www.cninfo.com.cn/
2012-4-14
Bulletin; 2012 1 quarterly Trailer Times", "Hongkong Commercial Daily
Corporate bond issuance China Securities News", "Securities http://www.cninfo.com.cn/
2012-4-19
announcement Times", "Hongkong Commercial Daily
Corporate bond issuing interest rate China Securities News", "Securities http://www.cninfo.com.cn/
2012-4-23
announcement Times", "Hongkong Commercial Daily
The resolution of the board of China Securities News", "Securities http://www.cninfo.com.cn/
directors Bulletin (five session Times", "Hongkong Commercial Daily
twenty-eight times), the resolution of
the supervisor Bulletin(five session
2012-4-26
one-fivetime)
The 2011 Annual Report and
summary ,Corporate bond issuance
results announcement
33
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
On the convening of the 2011 annual
shareholders meeting notice etc.
China Securities News", "Securities http://www.cninfo.com.cn/
In 2012 a quarterly report 2012-4-27
Times", "Hongkong Commercial Daily
China Securities News", "Securities http://www.cninfo.com.cn/
Changan car sales in April production 2012-5-12
Times", "Hongkong Commercial Daily
The 2011 Annual General Meeting of China Securities News", "Securities http://www.cninfo.com.cn/
2012-5-26
shareholders resolution notice Times", "Hongkong Commercial Daily
On the shareholder and the concerted China Securities News", "Securities http://www.cninfo.com.cn/
action person holdings notice Times", "Hongkong Commercial Daily
2012-5-31
Corporate Bonds Listing
Announcements
The resolution of the board of China Securities News", "Securities http://www.cninfo.com.cn/
directors Bulletin (six session A Times", "Hongkong Commercial Daily
resolution of the board of supervisors
2012-6-2
Bulletin (six session)
On the convening of second in 2012
shareholders meeting notice
China Securities News", "Securities http://www.cninfo.com.cn/
Changan car sales in May production 2012-6-9
Times", "Hongkong Commercial Daily
In 2012 second the provisional China Securities News", "Securities http://www.cninfo.com.cn/
shareholders meeting notice Times", "Hongkong Commercial Daily 2012-6-27
resolution
VIII、Financial Statements
(I) Audited Report
Was the semi-annual report audited?
□ Yes √ No □ N/A
(II) Financial Statements
Consolidated financial statement?
√ Yes □ No □ N/A
Unless otherwise stated, the unit of the currency is RMB Yuan in the financial statements.
The unit of the currency is RMB Yuan in notes to financial statements.
34
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
1. Consolidated Balance Sheet
The Company: Chongqing Changan Automobile Company Limited
Unit: Yuan
Account Notes VII Ending Balance Opening Balance
Current assets:
Cash 1 4,239,054,165.83 4,871,199,806.77
Deposit Reservation for
Balance
Funds loaned to other financial
institutions
Financial assets held
2 0.00 1,525,799.63
for trading
Notes receivable 3 6,596,220,273.45 5,691,518,013.21
Accounts receivable 5 691,973,911.09 505,707,438.05
Prepayments 7 266,694,484.56 320,623,972.68
Premiums receivable
Reinsurance receivable
Reinsurance reserve receivable
Interest receivable 0.00 0.00
Dividend receivable 4 450,030.00 450,030.00
Other receivables 6 303,525,409.80 117,398,622.23
Reverse repurchase agreements
Inventories 8 3,623,113,376.09 4,143,618,347.47
Non-current assets
0.00 0.00
within one year
Other current assets 9 555,653.62 7,463,166.98
Total current assets 15,721,587,304.44 15,659,505,197.02
Non-current assets:
Entrustment loans and
advances
Available-for-sale
10 269,656,220.00 225,129,480.00
financial assets
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 12 8,138,290,047.27 7,407,367,574.54
35
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Investment properties 13 60,059,909.95 61,350,378.25
Fixed assets 14 7,665,775,309.02 7,542,137,587.89
Construction in progress 15 4,696,464,552.90 2,795,536,908.98
Construction materials 16 795,898.75 795,898.75
Liquidation of fixed assets 17 5,112,404.35 17,688.00
Productive biological assets
Oil and gas asset
Intangible assets 18 1,821,670,049.65 1,822,099,425.28
Development expenditure 508,383,437.72 426,379,528.16
Goodwill 19 9,804,394.00 9,804,394.00
Long-term deferred expenses 20 10,428,954.72 2,069,156.74
Deferred tax assets 21 602,400,483.71 579,924,897.93
Other non-current assets 0.00 0.00
Total non-current assets 23,788,841,662.04 20,872,612,918.52
TOTAL ASSETS 39,510,428,966.48 36,532,118,115.54
Current liabilities:
Short-term loans 23 848,400,000.00 976,890,000.00
Due to The People’s Bank of
China
Placements of deposits from
other financial institutions
Funds borrowed from other
financial institutions
Financial liabilities held
0.00 0.00
for trading
Notes payable 24 7,490,780,333.14 6,671,345,457.57
Accounts payable 25 5,840,932,941.54 5,946,877,115.16
Advances from customers 26 2,853,018,290.03 3,105,626,115.15
Repurchase agreements
Commission payable
Payroll payable 27 250,581,641.15 278,808,694.00
Taxes payable 28 -114,883,802.62 -189,619,697.33
Interest payables 29 21,918,587.78 1,485,285.83
Dividend payables 30 79,742.80 79,742.80
Other payables 31 1,705,751,524.43 1,677,747,135.32
36
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Reinsurance payable
Reinsurance reserve payable
Commission of security trading
Commission of underwriting
Non-current liabilities
0.00 0.00
within one year
Other current liabilities 33 1,635,650,110.21 1,294,435,509.96
Total current liabilities 20,532,229,368.46 19,763,675,358.46
Non-current liabilities:
Long-term loans 0.00 0.00
Bonds payable 34 1,960,410,400.00 0.00
Long-term payables
Special payables 35 139,346,341.26 113,474,486.52
Provisions 32 609,665,716.59 589,154,705.34
Deferred tax liabilities 21 42,477,662.06 37,079,227.06
Other non-current liabilities 36 1,465,637,333.48 1,380,108,565.16
Total non-current liabilities 4,217,537,453.39 2,119,816,984.08
Total liabilities 24,749,766,821.85 21,883,492,342.54
Owners’ equity
(or Shareholders’ equity):
Paid up capital (or Share
37 4,662,886,108.00 4,834,482,546.00
capital)
Capital reserves 38 3,120,041,450.42 3,406,243,605.93
Less: Treasury shares 0.00 0.00
Special reserves 0.00
Surplus reserves 39 1,279,333,001.49 1,279,333,001.49
General reserve
Retained earnings 40 5,808,269,612.56 5,238,240,172.61
Foreign currency reserve 0.00 -19,067,864.01
Equity attributable to owners 14,870,530,172.47 14,739,231,462.02
Minority interests -109,868,027.84 -90,605,689.02
Total Owners’ equity
14,760,662,144.63 14,648,625,773.00
(or Shareholders’ equity)
TOTAL LIABILITIES AND
39,510,428,966.48 36,532,118,115.54
OWNERS’ EQUITY( OR
37
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
SHAREHOLDERS’ EQUITY)
Legal Representative: Xu Liuping Financial Controller: Cui Yunjiang Financial Manager: Hua Dubiao
2. Balance Statement
Unit: Yuan
Account Notes IX Ending Balance Opening Balance
Current assets:
Cash 3,040,122,671.26 3,748,480,642.89
Financial assets held
0.00 0.00
for trading
Notes receivable 5,300,300,120.03 4,629,815,917.34
Accounts receivable 1 744,190,257.20 709,962,322.23
Prepayments 299,588,254.81 275,607,524.99
Interest receivable 0.00 0.00
Dividend receivable 450,030.00 450,030.00
Other receivables 2 301,087,483.77 155,166,949.83
Inventories 2,436,214,655.81 2,509,720,521.60
Non-current assets
0.00 0.00
within one year
Other current assets 553,403.62 0.00
Total current assets 12,122,506,876.50 12,029,203,908.88
Non-current assets:
Available-for-sale
200,752,500.00 143,420,000.00
financial assets
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 3 9,429,977,460.00 8,699,054,987.27
Investment properties 0.00 0.00
Fixed assets 6,534,457,228.17 6,411,720,208.04
Construction in progress 4,293,476,904.91 2,521,725,163.27
Construction materials 795,898.75 795,898.75
Liquidation of fixed assets 0.00 0.00
Productive biological assets
Oil and gas asset
38
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Intangible assets 1,697,063,577.92 1,677,524,545.00
Development expenditure 503,129,896.14 426,140,086.24
Goodwill 0.00 0.00
Long-term deferred expenses 810,360.00 900,400.00
Deferred tax assets 496,073,247.47 441,652,853.36
Other non-current assets 0.00 0.00
Total non-current assets 23,156,537,073.36 20,322,934,141.93
TOTAL ASSETS 35,279,043,949.86 32,352,138,050.81
Current liabilities:
Short-term loans 818,400,000.00 896,890,000.00
Financial liabilities held
0.00 0.00
for trading
Notes payable 6,016,656,694.67 5,330,352,103.56
Accounts payable 3,786,637,138.93 4,001,734,598.60
Advances from customers 2,220,794,187.18 2,186,573,040.05
Payroll payable 209,735,062.86 222,376,277.25
Taxes payable 41,163,481.87 5,941,651.42
Interest payable 21,918,587.78 1,485,285.83
Dividend payable 0.00 0.00
Other payables 1,296,177,422.24 1,326,244,785.79
Non-current liabilities
0.00 0.00
within one year
Other current liabilities 1,008,761,627.97 727,112,996.22
Total current liabilities 15,420,244,203.50 14,698,710,738.72
Non-current liabilities:
Long-term loans 0.00 0.00
Bonds payable 1,960,410,400.00 0.00
Long-term payables
Special payables 76,163,492.70 76,030,162.60
Provisions 330,804,227.55 269,786,181.12
Deferred tax liabilities 26,680,875.00 18,081,000.00
Other non-current liabilities 1,367,605,299.33 1,279,411,554.31
Total non-current liabilities 3,761,664,294.58 1,643,308,898.03
Total liabilities 19,181,908,498.08 16,342,019,636.75
39
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Owners’ equity
(or Shareholders’ equity):
Paid up capital (or Share
4,662,886,108.00 4,834,482,546.00
capital)
Capital reserves 3,387,544,017.87 3,664,141,853.38
Less: Treasury shares 0.00 0.00
Special reserves
Surplus reserves 1,279,333,001.49 1,279,333,001.49
General reserve
Retained earnings 6,767,372,324.42 6,232,161,013.19
Foreign currency reserve
Equity attributable to owners 16,097,135,451.78 16,010,118,414.06
TOTAL LIABILITIES AND
OWNERS’ EQUITY( OR 35,279,043,949.86 32,352,138,050.81
SHAREHOLDERS’ EQUITY)
3. Consolidated Income Statement
Unit: Yuan
Account Notes VII Current Period Prior Period
I. Total operating revenue 14,044,230,553.84 14,537,115,839.90
Including: operating revenue 41 14,044,230,553.84 14,537,115,839.90
Interest income
Earned premium
Fee and commission
income
II. Total operating cost 14,389,673,635.83 14,563,749,247.25
Including: Operating cost 41 11,823,250,311.18 12,501,134,402.12
Interest expenses
Fee and commission
expenses
Surrender value
Compensation expenses
Net insurance contract
reserve
Policy dividend
expenses
40
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Reinsurance expenses
Business tax and
42 337,172,173.45 275,167,193.78
surcharges
Operating expenses 1,296,244,787.45 1,016,579,465.35
General and
administrative 950,910,384.65 849,054,595.79
expenses
Financial expenses -8,913,423.40 -84,132,888.64
Impairment loss on
45 -8,990,597.50 5,946,478.85
assets
Add: Profit and loss from fair
value changes 43 -1,525,799.63 0.00
(‘-‘ represent loss)
Investment income
44 732,741,472.73 1,040,648,180.63
(‘-‘ represent loss)
Including: Investment
income from
730,922,472.73 1,034,648,180.63
associates and from
joint venture
Net foreign exchange
differences(‘-’ means
loss)
III. Operating profit (‘-’ represent
385,772,591.11 1,014,014,773.28
loss)
Add: Non-operating income 46 126,141,497.58 119,360,985.64
Less: Non-operating expenses 47 4,007,997.45 13,875,074.38
Including: loss on
disposal of non-current 1,795,479.91 1,658,981.64
assets
IV. Total profit(‘-’ represent loss) 507,906,091.24 1,119,500,684.54
Less: Income tax expense 48 -42,861,009.89 84,760,560.93
V. Net profit (‘-’ represent net
550,767,101.13 1,034,740,123.61
loss)
Including: The net profit of the
combined parties before
business combination
Net profit attributable to
570,029,439.95 1,040,060,233.01
owners
41
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Minority interests -19,262,338.82 -5,320,109.40
VI. Earnings per share: -- --
I) Basic earnings per share 49 0.12 0.22
II) Diluted earnings per
49 0.12 0.22
share
VII. Other comprehensive income 50 39,128,305.00 12,371,750.00
VIII. Total comprehensive income 589,895,406.13 1,047,111,873.61
Total comprehensive income
609,157,744.95 1,052,431,983.01
attributable to owners
Total comprehensive income
attributable to minority -19,262,338.82 -5,320,109.40
interest
Legal Representative: Xu Liuping Financial controller: Cui Yunjiang Chief Accountant: Hua Dubiao
4. Income Statement
Unit: Yuan
Account Notes IX Current Period Prior Perid
I. Operating revenue 4 10,195,146,626.54 11,068,721,114.58
Less: Operating cost 4 8,423,068,569.27 9,438,912,603.93
Business tax and
262,584,913.22 200,828,940.57
surcharges
Operating expenses 905,421,113.11 608,706,396.24
General and
977,471,354.72 840,177,215.73
administrative expenses
Financial expenses -2,141,478.55 -83,986,020.85
Impairment loss on assets -8,990,597.50 5,946,478.85
Add: Profit and loss from fair
value Changes (‘-’ 0.00 0.00
represent loss)
Investment income (‘-’
5 730,922,472.73 1,029,384,263.96
represent loss)
Including: Investment
income from
730,922,472.73 1,034,648,180.63
associates and from
joint venture
II. Operating profit (‘-’ represent 368,655,225.00 1,087,519,764.07
42
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
loss)
Add: Non-operating income 113,574,947.98 105,446,779.38
Less: Non-operating expenses 1,439,255.86 11,296,243.31
Including: loss on
disposal of non-current 384,310.03 10,552.97
assets
III. Total profit(‘-’ represent loss) 480,790,917.12 1,181,670,300.14
Less: Non-operating expenses -54,420,394.11 62,218,864.23
IV. Net profit (‘-’ represent net
535,211,311.23 1,119,451,435.91
loss)
V. Earnings per share: -- --
I) Basic earnings per share 0.12 0.22
II) Diluted earnings per
0.12 0.22
share
VI. Other comprehensive income 48,732,625.00 12,371,750.00
VII. Total comprehensive income 583,943,936.23 1,131,823,185.91
5. Consolidated cash flow statement
Unit: Yuan
Account Current Period Prior Perid
I. CASH FLOWS FROM
OPERATING ACTIVITIES:
Cash received from sale of goods
12,206,885,218.22 15,049,576,722.73
or rendering of services
Net increase in customer deposits
and placements of deposits from
other financial institutions
Net increase in amounts due to the
Central Bank
Net decrease in funds loaned to
other financial institutions
Cash receipts from primary
insurance contract
Net cash receipts from reinsurance
agreement
Net increase in saving from
incident and investment deposit
43
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Net increase in disposal of
financial assets held for trading
Cash receipts from interest and fee
and commission income
Net increase in funds borrowed
from other financial institutions
Net increase in repurchase
agreements
Refunds of taxes 31,847,565.16 80,755,109.66
Cash received relating to other
264,137,754.81 281,467,088.44
operating activities
Sub-total of cash inflows 12,502,870,538.19 15,411,798,920.83
Cash paid for goods and services 8,323,289,867.18 9,372,501,842.27
Net increase in loans and advances
Net increase in amounts due from
the Central Bank and
placements of deposits with
other financial institutions
Cash payments for primary
insurance contract
Cash payments for interest and fee
and commission expenses
Cash payments for policy dividend
Cash paid to and on behalf of
1,146,939,343.07 825,972,937.06
employees
Cash paid for all types of taxes 715,659,964.73 1,019,084,870.77
Cash paid relating to other
1,641,524,979.15 1,815,833,744.19
operating activities
Sub-total of cash outflows 11,827,414,154.13 13,033,393,394.29
Net cash flows from operating activities 675,456,384.06 2,378,405,526.54
II. CASH FLOWS FROM
INVESTING ACTIVITIES:
Cash received from disposal of
0.00 0.00
investments
Cash received from return on
1,819,000.00 6,000,000.00
investments
Net cash received from disposal of
676,086.03 3,738,720.05
fixed assets, intangible assets
44
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
and other long-term assets
Cash and cash equivalents of
subsidiary receipts upon a 0.00 0.00
acquisition
Cash received relating to other
122,160,218.00 471,474,054.00
investing activities
Sub-total of cash inflows 124,655,304.03 481,212,774.05
Cash paid for acquisition of fixed
assets, intangible assets and 2,737,816,643.55 1,859,838,889.50
other long-term assets
Cash paid for acquisition of
9,000,000.00 5,317,720.00
investments
Net increase in pledged loan
Cash paid for acquisition of
subsidiary and other business 0.00 0.00
units
Cash paid relating to other
2,266,737.00 488,983,200.00
investing activities
Sub-total of cash outflows 2,749,083,380.55 2,354,139,809.50
Net cash flows from investing activities -2,624,428,076.52 -1,872,927,035.45
III. CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
0.00 3,447,489,389.48
investment
Including: cash received from
absorbing investment from 0.00 0.00
minority interest of subsidiary
Cash received from borrowings 714,521,483.81 488,983,200.00
Cash received from issuing bond 1,960,700,000.00 0.00
Cash received relating to other
12,263,973.25 4,330,100.57
financing activities
Sub-total of cash inflows 2,687,485,457.06 3,940,802,690.05
Cash repayments of borrowings 843,011,483.81 616,558,000.00
Cash paid for distribution of
dividends or profits and interest 30,911,876.87 1,429,611.10
expenses
Including: cash paid for dividends
0.00 0.00
or profits and interest expenses
45
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
to minority interest of subsidiary
Cash paid relating to other
497,456,903.42 1,648,404.14
financing activities
Sub-total of cash outflows 1,371,380,264.10 619,636,015.24
Net cash flows from financing activities 1,316,105,192.96 3,321,166,674.81
IV. EFFECT OF CHANGES IN
EXCHANGE RATE ON 720,858.56 1,320,334.61
CASH
V. NET INCREASE IN CASH AND
-632,145,640.94 3,827,965,500.51
CASH EQUIVALENTS
Add: Opening balance of cash and
4,871,199,806.77 4,391,990,049.72
cash equivalents
VI. CLOSING BALANCE OF CASH
4,239,054,165.83 8,219,955,550.23
AND CASH EQUIVLANT
6. Cash flow statement
Unit: Yuan
Account Current Period Prior Perid
I. CASH FLOWS FROM
OPERATING ACTIVITIES:
Cash received from sale of goods
9,173,972,007.12 12,428,465,566.48
or rendering of services
Refunds of taxes 0.00 39,404,000.00
Cash received relating to other
245,237,375.66 256,477,663.60
operating activities
Sub-total of cash inflows 9,419,209,382.78 12,724,347,230.08
Cash paid for goods and services 6,193,024,218.07 8,243,641,271.81
Cash paid to and on behalf of
860,946,817.68 670,199,987.44
employees
Cash paid for all types of taxes 486,431,106.65 732,784,268.78
Cash paid relating to other
1,393,212,452.00 1,614,190,772.91
operating activities
Sub-total of cash outflows 8,933,614,594.40 11,260,816,300.94
Net cash flows from operating activities 485,594,788.38 1,463,530,929.14
II. CASH FLOWS FROM
INVESTING ACTIVITIES:
Cash received from disposal of 0.00 0.00
46
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
investments
Cash received from return on
0.00 6,000,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets 48,191.45 22,490.62
and other long-term assets
Cash received from disposal of
subsidiary and other business 0.00 0.00
units
Cash received relating to other
100,166,381.00 461,360,730.00
investing activities
Sub-total of cash inflows 100,214,572.45 467,383,220.62
Cash paid for acquisition of fixed
assets, intangible assets and 2,643,411,934.03 1,794,209,253.54
other long-term assets
Cash paid for acquisition of
9,000,000.00 5,317,720.00
investments
Cash paid for acquisition of
subsidiary and other business 0.00 0.00
units
Cash paid relating to other
272,900.00 488,983,200.00
investing activities
Sub-total of cash outflows 2,652,684,834.03 2,288,510,173.54
Net cash flows from investing activities -2,552,470,261.58 -1,821,126,952.92
III. CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
0.00 3,445,586,919.48
investment
Cash received from borrowings 684,521,483.81 488,983,200.00
Cash received from issuing bond 1,960,700,000.00 0.00
Cash received relating to other
0.00 1,933,678.86
financing activities
Sub-total of cash inflows 2,645,221,483.81 3,936,503,798.34
Cash repayments of borrowings 763,011,483.81 510,558,000.00
Cash paid for distribution of
dividends or profits and interest 26,765,599.92 261,333.33
expenses
Cash paid relating to other 496,926,898.51 1,181,039.00
47
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
financing activities
Sub-total of cash outflows 1,286,703,982.24 512,000,372.33
Net cash flows from financing activities 1,358,517,501.57 3,424,503,426.01
IV. EFFECT OF CHANGES IN
EXCHANGE RATE ON 0.00 0.00
CASH
V. NET INCREASE IN CASH AND
-708,357,971.63 3,066,907,402.23
CASH EQUIVALENTS
Add: Opening balance of cash and
3,748,480,642.89 3,087,748,588.31
cash equivalents
VI. CLOSING BALANCE OF CASH
3,040,122,671.26 6,154,655,990.54
AND CASH EQUIVLANT
7. Consolidated statement of changes in shareholders’ equity
Current period
Unit: Yuan
Current period
Equity attributable to owners
Items Minority Total
Less: Retaine
Share Capital Special Surplus General
Treasur d Others interest equity
capital reserves reserves reserves reserves
y shares earnings
4,834,4 1,279,3
3,406,24 5,238,24 -19,067, -90,605,6 14,648,625
I. At end of last year 82,546. 0.00 0.00 33,001. 0.00
3,605.93 0,172.61 864.01 89.02 ,773.00
00 49
Add: Accounting policy
0.00
changes
Amendment of prior
0.00
error
Others 0.00
4,834,4 1,279,3
3,406,24 5,238,24 -19,067, -90,605,6 14,648,625
II. At beginning of year 82,546. 0.00 0.00 33,001. 0.00
3,605.93 0,172.61 864.01 89.02 ,773.00
00 49
-171,59
III. Changes during the year -286,20 570,029, 19,067,8 -19,262,3 112,036,37
6,438.0 0.00 0.00 0.00 0.00
(‘－” means less) 2,155.51 439.95 64.01 38.82 1.63
0
570,029, -19,262,3 550,767,10
I) Net profit
439.95 38.82 1.13
II) Other comprehensive 39,128,3 19,067,8 58,196,169
48
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
income 05.00 64.01 .01
39,128,3 570,029, 19,067,8 -19,262,3 608,963,27
Subtotal of I) and II) 0.00 0.00 0.00 0.00 0.00
05.00 439.95 64.01 38.82 0.14
-171,59
III) Input by investors and -325,33 -496,926,8
6,438.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decrease in capital 0,460.51 98.51
0
-171,59
-325,33 -496,926,8
1．Capital input by investors 6,438.0
0,460.51 98.51
0
2．Equity-settled share-based
payment
3．Others
IV) Distribution of profits
1．Pick-up of surplus reserves
2．Pick-up of general reserves
3．Distribution to owners
4．Others
V) Internal transfer of shares
1．Capital reserves transfer to
share capital
2．Capital increase from surplus
reserve
3．The deficit covered by
surplus reserve
4．Others
VI) Special reserve
1．Pick-up in current period
2．Used in current period
VII) Others
4,662,8 1,279,3
3,120,04 5,808,26 -109,868, 14,760,662
IV. At end of year 86,108. 0.00 0.00 33,001. 0.00 0.00
1,450.42 9,612.56 027.84 ,144.63
00 49
Prior period
Unit: Yuan
Current period
Items
Equity attributable to owners Equity
49
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Less: Retaine attributable
Share Capital Special Surplus General
Treasur d Others to owners
capital reserves reserves reserves reserves
y shares earnings
2,325,6 1,167,01
1,538,17 5,594,69 -41,959,5 10,583,582
I. At end of last year 57,615. 1,424.0
8,253.07 5,154.55 98.57 ,848.05
00 0
Add: Business
combination
98,089,6 77,121,3 175,210,93
involving entities
35.53 01.03 6.56
under common
control
Add: Accounting policy
0.00
changes
Amendment of prior
0.00
error
Others 0.00
2,325,6 1,167,01
1,636,26 5,671,81 -41,959,5 10,758,793
II. At beginning of year 57,615. 0.00 0.00 1,424.0 0.00 0.00
7,888.60 6,455.58 98.57 ,784.61
00 0
2,508,8
III. Changes during the year 1,769,97 112,321, -433,57 -19,067, -48,646,0 3,889,831,
24,931. 0.00 0.00 0.00
(‘－” means less) 5,717.33 577.49 6,282.97 864.01 90.45 988.39
00
I) Net profit 0.00
II) Other comprehensive -39,610, 967,940, -19,067, -42,291,3 866,971,12
income 329.30 639.48 864.01 26.15 0.02
-39,610, 967,940, -19,067, -42,291,3 866,971,12
Subtotal of I) and II) 0.00 0.00 0.00 0.00 0.00
329.30 639.48 864.01 26.15 0.02
III) Input by investors and 360,166 3,086,62 -6,354,76 3,440,436,
0.00 0.00 0.00 0.00 0.00 0.00
decrease in capital ,022.00 5,501.63 4.30 759.33
360,166 3,085,42 -6,354,76 3,439,231,
1．Capital input by investors
,022.00 0,737.33 4.30 995.03
2．Equity-settled share-based
0.00
payment
1,204,76 1,204,764.
3．Others
4.30 30
1,074,3 -1,401,5
112,321, -214,865,8
IV) Distribution of profits 29,454. 0.00 0.00 0.00 0.00 16,922.4 0.00 0.00
577.49 90.96
00 5
1．Pick-up of surplus reserves 112,321, -112,32 0.00
50
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
577.49 1,577.49
2．Pick-up of general reserves 0.00
1,074,3 -1,289,1
-214,865,8
3．Distribution to owners 29,454. 95,344.9
90.96
00 6
4．Others 0.00
1,074,3 -1,277,0
-202,710,0
V) Internal transfer of shares 29,455. 39,455.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00
00.00
00 0
1,074,3 -1,074,3
1．Capital reserves transfer to
29,455. 29,455.0 0.00
share capital
00 0
2．Capital increase from surplus
0.00
reserve
3．The deficit covered by
0.00
surplus reserve
-202,71 -202,710,0
4．Others
0,000.00 00.00
VI) Special reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Pick-up in current period 0.00
2．Used in current period 0.00
VII) Others 0.00
4,834,4 1,279,3
3,406,24 5,238,24 -19,067, -90,605,6 14,648,625
VI) At end of year 82,546. 0.00 0.00 33,001. 0.00
3,605.93 0,172.61 864.01 89.02 ,773.00
00 49
8. Statement of changes in shareholders’ equity
Current period
Unit: Yuan
Current period
Less:
Items Share Capital Special Surplus General Retained Total
Treasury
capital reserves reserves reserves reserves earnings equity
shares
4,834,482, 3,664,141, 1,279,333, 6,232,161, 16,010,118
I. At end of last year 0.00 0.00 0.00
546.00 853.38 001.49 013.19 ,414.06
Add: Accounting policy
0.00
changes
Amendment of prior 0.00
51
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
error
Others 0.00
4,834,482, 3,664,141, 1,279,333, 6,232,161, 16,010,118
II. At beginning of year 0.00 0.00 0.00
546.00 853.38 001.49 013.19 ,414.06
III. Changes during the year -171,596,4 -276,597,8 535,211,31 87,017,037
0.00 0.00 0.00 0.00
(‘－” means less) 38.00 35.51 1.23 .72
535,211,31 535,211,31
I) Net profit
1.23 1.23
II) Other comprehensive 48,732,625 48,732,625
income .00 .00
48,732,625 535,211,31 583,943,93
Subtotal of I) and II) 0.00 0.00 0.00 0.00 0.00
.00 1.23 6.23
III) Input by investors and -171,596,4 -325,330,4 -496,926,8
0.00 0.00 0.00 0.00 0.00
decrease in capital 38.00 60.51 98.51
-171,596,4 -325,330,4 -496,926,8
1．Capital input by investors
38.00 60.51 98.51
2．Equity-settled share-based
0.00
payment
3．Others
IV) Distribution of profits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Pick-up of surplus reserves 0.00
2．Pick-up of general reserves 0.00
3．Distribution to owners 0.00
4．Others 0.00
V) Internal transfer of shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Capital reserves transfer to
0.00
share capital
2．Capital increase from surplus
0.00
reserve
3．The deficit covered by surplus
0.00
reserve
4．Others 0.00
VI) Special reserve
1．Pick-up in current period 0.00
2．Used in current period 0.00
VII) Others 0.00
IV. At end of year 4,662,886, 3,387,544, 0.00 0.00 1,279,333, 0.00 6,767,372, 16,097,135
52
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
108.00 017.87 001.49 324.42 ,451.78
Prior period
Unit: Yuan
Prior period
Less:
Items Share Capital Special Surplus General Retained Total
Treasury
capital reserves reserves reserves reserves earnings equity
shares
2,325,657, 1,708,273, 1,167,011, 6,510,462, 11,711,404
I. At end of last year
615.00 332.86 424.00 160.73 ,532.59
Add: Accounting policy
0.00
changes
Amendment of prior
0.00
error
Others 0.00
2,325,657, 1,708,273, 1,167,011, 6,510,462, 11,711,404
II. At beginning of year 0.00 0.00 0.00
615.00 332.86 424.00 160.73 ,532.59
III. Changes during the year 2,508,824, 1,955,868, 112,321,57 -278,301,1 4,298,713,
0.00 0.00 0.00
(‘－” means less) 931.00 520.52 7.49 47.54 881.47
1,123,215, 1,123,215,
I) Net profit
774.91 774.91
II) Other comprehensive -28,515,37 -28,515,37
income 5.00 5.00
-28,515,37 1,123,215, 1,094,700,
Subtotal of I) and II) 0.00 0.00 0.00 0.00 0.00
5.00 774.91 399.91
III) Input by investors and 360,166,02 3,085,420, 3,445,586,
0.00 0.00 0.00 0.00 0.00
decrease in capital 2.00 737.33 759.33
360,166,02 3,085,420, 3,445,586,
1．Capital input by investors
2.00 737.33 759.33
2．Equity-settled share-based
0.00
payment
3．Others 0.00
1,074,329, 112,321,57 -1,401,516, -214,865,5
IV) Distribution of profits 0.00 0.00 0.00 0.00
454.00 7.49 922.45 90.96
112,321,57 -112,321,5
1．Pick-up of surplus reserves 0.00
7.49 77.49
2．Pick-up of general reserves 0.00
3．Distribution to owners 1,074,329, -1,289,195, -214,865,5
53
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
454.00 344.96 90.96
4．Others 0.00
1,074,329, -1,101,036, -26,707,38
V) Internal transfer of shares 0.00 0.00 0.00 0.00 0.00
455.00 841.81 6.81
1．Capital reserves transfer to 1,074,329, -1,074,329,
0.00
share capital 455.00 455.00
2．Capital increase from surplus
0.00
reserve
3．The deficit covered by surplus
0.00
reserve
-26,707,38 -26,707,38
4．Others
6.81 6.81
VI) Special reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Pick-up in current period 0.00
2．Used in current period 0.00
VII) Others 0.00
4,834,482, 3,664,141, 1,279,333, 6,232,161, 16,010,118
IV. At end of year 0.00 0.00 0.00
546.00 853.38 001.49 013.19 ,414.06
(III)Corporate information
Chongqing Changan Automobile Company Limited (hereafter referred to as the ‘Company”) was established by
China Changan Automobile Group (hereafter referred to as the ‘Changan Group”) as the individual originator on
31 October 1996. The company was set up using the group’s net asset relating to the operation of mini cars and
engines, the shares its owned in Chongqing Changan Suzuki company limited (506,190,000 shares) and the fund
raising from the issuance of 250,000,000 foreign capital stock (B shares), with total share capital of
RMB756,190,000. The Legal Representative’s Operating License issued by Chongqing Industrial and
Commercial Administrative Bureau is Yu-Jing No. 28546236-3.
With the approval of China securities regulatory commission, the company initially floated on share market on 19
May 1997 by issuing120,000,000 common shares(A share) to the public. The offering increased the total share
capital to RMB876,190,000
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the original
876,190,000 shares. The issuance was made from capital common reserve and increased the total share capital to
RMB1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares holding by existing shareholder which
increased the total share capital from RMB1,226,666,000 to RMB1,471,999,200.
On 26 August 2004, with the approval of China securities regulatory commission, the Company offered
54
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
148,850,000 common shares (A share) to the market which increased the total share capital to
RMB1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the ‘South Group”), the
ultimate parent company, used the common share (850,399,200 shares) owned by its subsidiary of Changan Group,
as part of the investment to established China South industries Motor Company (hereafter referred to as ”South
Industries Motor”). The share occupied 52.466% of the Company’s total share capital. Therefore, South industries
Motor became the parent company of Chongqing Changan. On 30 March 2006, the transfer of share (850,399,200
shares) was registered by Shenzhen branch of China Securities Depository and Clearing Corporation limited.
On May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the shareholders at the
implementation date of reformation of non-tradable shares for their non-tradable shares according to the ”Reply of
the problems related the reformation of non-tradable shares of Chongqing Changan Automobile Co., Ltd.”
(2006[442] Guo Zi Chan Quan) issued by the State-owned Assets Supervision and Administration Commission of
State Council and the related shareholder’s meeting. After the reformation of non-tradable shares, South Industries
Motor occupied 45.548% of equity through 738,255,200 common shares.
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders which increased
the total share capital from RMB1,620,849,200 to RMB1,945,019,040 .
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders. The total
issuance of 389,003,808 shares was made from common reserve in capital. After this issuance, total share capital
increased to RMB2,334,022,848.
On 3 March 2009, the secondary temporary shareholder meeting was held. The meeting passed the board
resolution about ‘the reacquisition of foreign capital stock listed in China’. For the buyback period ended on 3
March 2010, the company repurchased 8,365,233 shares in total, equal to 0.3584% of total capital. On 17 March
2010, the company cancelled the share and the share capital decreased to RMB2,325,657,615.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South industries Motor,
the parent company changed its name as China Changan Automobile Industry (Group) Co., Ltd. (hereafter refer to
as the ‘China Changan”).
With the approval of China securities regulatory commission on 14 January 2011, the Company issued
360,166,022 common shares (A share), which increased the total share capital to RMB2,685,823,637. After the
completion of the issuance, China Changan hold 1,163,787,489 shares of the Company's common stock, and the
held equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10 shares from
common reserve in capital to existing shareholders. After this issuance, the total share capital has been increased
to RMB4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The meeting passed the board resolution
about ‘the repurchase of foreign capital stock listed in China’. As at 20 March 2012, the repurchase proposal had
55
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
been finished before the due date because the repurchase fund had been used to the up limitation of HKD0.61
billion. The Company repurchased 171,596,438 shares in total, equal to 3.55% of total capital. On 20 March 2012,
the Company completed the cancellation in China Securities Depository and Clearing Corporation Limited
Shenzhen Branch and the total shares decreased to 4,662,886,108 shares.
On 20 March 2012, the Company obtained a new business license with registration number of 500000000005061.
The Company and its subsidiary (hereafter referred to as the ‘Group”) mainly focus on the manufacturing and
sales of automobile (including cars), automobile engines, spare parts.
According to the Articles of Association, the financial statements, which has been approved by the board of
directors on 29 August 2012, was submitted to general meeting of shareholders for approval.
(IV) Summary of significant accounting policies, estimations and accounting error
1. Basis of preparation
The financial statements have been prepared in accordance with Accounting Standards for Business
Enterprises-Basic Standard and 38 specific standards issued in February 2006, 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 Group maintains its accounting records on an accrual basis. Except for certain financial instruments, assets
are recorded at actual cost when they are acquired. If the assets are impaired, the corresponding provisions should
be made accordingly. The assets are recorded at assessed value by State-owned Assets Supervision and
Administration Commission of the State Council, which are invested into the Group in the reforming period.
2. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 30 June 2012 and the
financial results and the cash flows for the semi-year then ended in accordance with Accounting Standards for
Business Enterprises.
3. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year. Interim accounting
periods represent monthly, quarterly and semi-yearly accounting period.
4. 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
56
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
translated into the reporting currency of the Company of RMB.
5. Business combinations
(1) 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 that, 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 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.
(2) 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.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and
the fair value of the acquirer’s previously held equity interest in the acquiree exceeds the acquirer’s interest in the
fair value of the acquiree’s identifiable net assets, the difference shall be recognized as goodwill and measured at
cost less any accumulated impairment losses. Where the sum of the fair value of the consideration transferred (or the
fair value of the issued equity securities) and the fair value of the acquirer’s previously held equity interest in the
acquiree is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference
shall be accounted for according to the following requirements: (i) the acquirer shall reassess the measurement of
the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the fair
value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of the
acquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the sum of the fair value of
the consideration transferred (or the fair value of the issued equity securities) and the fair value of the acquirer’s
previously held equity interest in the acquiree is still less than the acquirer’s interest in the fair values of the
acquiree’s identifiable net assets, the acquirer shall recognize the remaining difference immediately in the income
statement for the current period.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
6. Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control, and includes the
financial statements of the Company and its subsidiaries. A subsidiary is an enterprise or entity that is controlled by
the Group.
Consolidated financial statements are prepared using uniform reporting dates and accounting policies. All
significant intercompany transactions, balances, unrealized profit and dividends within the Group are eliminated 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. The changes of the equity belong to
minorities without loss of control is regarded as capital transaction.
With respect to subsidiary 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 subsidiary 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.
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 Company, 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
(1) Foreign currency transactions
The Company 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 as at 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
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
difference thus resulted should be charged to the current income or capital surplus account of the current period.
(2) Foreign currency financial statements translation
When preparing consolidated financial statements, the financial statements of the subsidiary 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; items in income statement
other than profit appropriation statement are translated into Renminbi at spot exchange rates on transaction
occurrence; 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 subsidiary 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 subsidiary should be translated using the average
exchange rate prevailing on the transaction month during which the cash flows occur. 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.
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.
(1) Classification of financial instruments
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair value
through profit or loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, and
the derivatives designated as effective hedging instrument. The classification of financial assets is determined on
initial recognition. The Group’s financial liabilities are, on initial recognition, classified into the following
categories: financial liabilities at fair value through profit or loss, other financial liabilities, and the derivatives
designated as effective hedging instrument. The classification of financial liabilities is determined on initial
recognition.
(2) Recognition and measurement of financial instruments
Recognition of financial instruments
The Group recognizes a financial asset or a financial liability on its balance sheet, when the Group becomes a party
to the contractual provision of the instrument.
Measurement of financial assets
A financial asset is recognized initially at fair value. In the case of financial assets at fair value through profit or loss,
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
relevant transaction costs are directly charged to the profit and loss of the current period; transaction costs relating to
financial assets of other categories are included in the amount initially recognized.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated
upon initial recognition as at fair value through profit or loss. A financial asset held for trading is the financial asset
that meets one of the following conditions: the financial asset is acquired for the purpose of selling it in a short term;
the financial asset is a part of a group of identifiable financial instruments that are collectively managed, and there is
objective evidence indicating that the enterprise recently manages this group for the purpose of short-term profits;
the financial asset is a derivative, except for a derivative that is designated as effective hedging instrument, or a
financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price from an active market) whose fair value cannot be reliably measured. For such
kind of financial assets, fair values are adopted for subsequent measurement. All the realized or unrealized gains or
losses on these financial assets are recognized in profit or loss for the current period. Dividend or interest income
related to financial assets at fair value through profit or loss is recognized in profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are
subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition, impairment or amortization are recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. Such kind of financial assets are subsequently measured at amortized cost using the effective
interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or
loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale
or are not classified as the above financial assets. After initial recognition, available-for-sale financial assets are
measured at fair value. The premium/discount is amortized using effective interest method and recognized as
interest income or expense. A gain or loss arising from a change in the fair value of an available-for-sale financial
asset is recognized in other comprehensive income as a component of capital reserve, except for impairment losses
and foreign exchange gains and losses resulted from monetary financial assets, until the financial asset is
derecognized or determined to be impaired, at which time the accumulated gain or loss previously recognized in
capital reserve is removed from capital reserve and recognized in profit or loss for the current period. Interests and
dividends relating to an available-for-sale financial asset are recognized in profit or loss for the current period.
Measurement of financial liabilities
For financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit
or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial
recognition amounts.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
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 those
designated as at fair value through profit or loss. A financial liability held for trading is the financial liability that
meets one of the following conditions: the financial liability is assumed for the purpose of repurchasing it in a short
term; the financial liability is a part of a group of identifiable financial instruments that are collectively managed,
and there is objective evidence indicating that the enterprise recently manages this group for the purpose of
short-term profits; the financial liability is a derivative, except for a derivative that is designated and effective
hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery
of an unquoted equity instrument (without a quoted price form an active market) whose fair value cannot be reliably
measured. For such kind of financial liabilities, fair values are adopted for subsequent measurement. All the realized
or unrealized gains or losses on these financial liabilities are recognized in profit or loss for the current period.
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the effective interest
method.
Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is
entered into and are subsequently revaluated at fair value. Derivatives are carried as assets when the fair value is
positive and as liabilities when the fair value is negative. An investment in equity instruments do not have a quoted
market price in an active market, or derivatives linked to such equity instruments, is measured at cost because its fair
value cannot be measured reliably.
Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are
directly recognized in the income statement.
(3) Transfer of financial assets and measurement
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) it 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.
The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets)
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
when the following conditions are met:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the 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 asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When buy or sell financial instruments under a normal way, financial instruments are recognized or derecognized
according to the transaction date accounting. A normal way to buy or sell financial instruments refers to, according
to the contract terms, receive or deliver financial instruments within the period as required by legal regulation or
generally accepted guidelines. Transaction date refers to the date when the Group committed to buy or sell financial
instruments.
(4) Derecognition of financial liabilities
If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financial
liability is derecognized. If an existing financial liability is replaced by the same creditor, with a new financial
liability that has substantially different terms, or if the terms of an existing financial liability are substantially
revised, such replacement or revision is accounted for as the derecognition of the original liability and the
recognition of a new liability, and the difference thus resulted is recognized in profit or loss for the current period.
(5) Fair value of financial instruments
If there is an active market for a financial asset or financial liability, the Group determines the fair value by using the
quoted prices. If no active market exits for a financial instrument, the Group establishes fair value by using a
valuation technique. Valuation techniques include using recent arm’s length market transactions between
knowledgeable, willing parties’ reference to the current fair value of another instrument that is substantially the
same, discounted cash flow analysis and option pricing models.
(6) Impairment of financial assets (accounts receivable excluded)
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is objective evidence
that the financial asset is impaired, the Group makes provision for the impairment loss. Objective evidence that a
financial asset is impaired is evidence arising from one or more events that occurred after the initial recognition of
the asset and that event has an impact on the estimated future cash flows of the financial asset which can be reliably
estimated.
Financial assets carried at amortized cost
If objective evidence shows that the financial assets carried at amortized cost are impaired, the carrying amount of
the financial asset shall be reduced to the present value of the estimated future cash flow (excluding future credit
losses that have not been incurred). The amount of reduction is recognized as an impairment loss in the income
statement. Present value of estimated future cash flow is discounted at the financial asset’s original effective interest
rate and includes the value of any related collateral.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
If a financial asset is individually significant, the Group assesses the asset individually for impairment, and
recognizes the amount of impairment in the income statement if there is objective evidence of impairment. For a
financial asset that is not individually significant, the Group can include the asset in a group of financial assets with
similar credit risk characteristics and collectively assess them for impairment. For financial assets that are not
impaired upon individual tests (including financial assets that are individually significant or insignificant),
impairment tests should be conducted on them again by including them in the group of financial assets. Assets for
which an impairment loss is individually recognized will not be included in a collective assessment of impairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized cost, there is
objective evidence of a recovery in value of the financial asset which can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is reversed and
recognized in the income statement. However, the reversal shall not result in a carrying amount of the financial asset
that exceeds what the amortized cost would have been had the impairment not been recognized at the date the
impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in fair value that had
been recognized directly in capital reserve are removed from equity and recognized in the income statement. The
amount of the cumulative loss that is removed from capital reserves and recognized in the income statement (net of
any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset
previously recognized in the income statement.
If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the
increase can be related objectively to an event occurring after the impairment was recognized in the income
statement, the previously recognized impairment loss shall be reversed with the amount of the reversal recognized in
the income statement. Impairment losses recognized in the income statement for a debt instrument investment shall
not be reversed through profit or loss.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference between the present
value discounted at the prevailing rate of return of similar financial assets and the book value of the financial asset
are provided as a provision. The impairment loss recognized cannot be reversed.
For long-term equity investments, which are accounted for according to the cost method set out by Accounting
Standards for Business Enterprises No. 2 – Long-term Equity Investments and has no quoted market price in active
markets, and whose fair values cannot be reliably measured, their impairment should also be treated in accordance
with the above principle.
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision
Criterion for individually significant items and analyzed individually for Accounts receivable balance greater than RMB15
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
provision million due from non-related parties
A provision of the difference between recoverable
Method for individually significant items and analyzed individually for
amount and book value is recognized based on
provision
individually analysis
(2) Accounts receivable analyzed by classification for provision
Classification Provision method Criterion for classification
Making provision according to aging Accounts receivable other than individually significant
Group 1
analysis items due from non-related parties
Group 2 Other Methods Accounts receivable due from related parties
Within group, the provision analyzed according to aging analysis:
Accounts receivable provision
Aging Other receivables provision percentage (%)
percentage (%)
Within 1 year
Within 6 months 0% 0%
6 to 12 months 5% 5%
1 to 2 years 10% 10%
2 to 3 years 30% 30%
Above 3 years
3 to 4 years 50% 50%
4 to 5 years 80% 80%
Above 5 years 100% 100%
Within group, the provision analyzed according to other methods:
Group name Method description
A provision of the difference between recoverable amount and book value is
Accounts receivable due from related parties
recognized based on individually analysis.
(3) Accounts receivable which is individually insignificant but analyzed individually for provision
Criterion for individually analysis for provision:
When there is objective evidence that the receivable is impaired and the future recoverable possibility is little, the
provision will be recognized individually.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Method for provision:
A provision of the difference between recoverable amount and book value is recognized.
11. Inventory
(1) Classification of inventory
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials,
and low-value consumables and spare parts.
(2) Measurement of issued inventory
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
packaging materials and low-value consumables.
(3) Net realizable value of inventory and inventory provision
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.
(4) Counting method of inventory
The Group applies a perpetual counting method of inventory.
(5) Amortization of packaging materials and low-value consumables
The Group applies one-off writing off method in amortization of packaging materials and low-value consumables.
12. Long-term equity investments
(1) Initial recognition and measurement
The long-term investments are initially recorded at cost on acquisition. Long-term investments acquired from
business combination under common control shall be initially measured at the carrying value of the held interest of
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
the party being acquired. Long-term investments acquired from business combination not under common control
shall be initially measured at the cost (or, the sum of the cost and the carrying value of the previously held equity
interest in the acquire for the business combination achieved by stages), which include the fair value of the
consideration paid, the liabilities beard and the issued equity instrument. Long-term investments acquired not from
business combination are initially measured at 1)the consideration together with the cost necessary incurred; 2) the
fair value of the equity instruments; and 3) the consideration agreed in the investment agreement by the investors,
otherwise the agreed consideration were not fair.
The Group adopted cost method to account for long-term equity investments, when the Group has not control of the
investee enterprise, or does not have jointly control or significant influence on the investee enterprise, the fair value
of which cannot be reliably measured due to the fact they are not quoted in an active market. The Company adopted
cost method to account for long-term investments in the subsidiary 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. Profit or cash
dividends declared by the invested enterprise are recognized as investment income for the current period, except the
declared but unpaid cash dividends and interests included in the initial cost. The Group should assess the
impairment of the long-term investments according with the impairment policy of assets.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or
significant influence on the investee companies. 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 venturers). 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
between them 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.
(2) Subsequent measurement and recognition of investment income or loss
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
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
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.
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. 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,
(3) Criterion of jointly control and significant influence on the investee companies
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 investee companies jointly controlled by investors are joint 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. The investee companies significantly influenced by
investors are associates.
(4) Impairment of long-term equity investment
Please refer to Notes IV, 27 for the details of the impairment testing for subsidiary, jointly-venture and associates.
Please refer to Notes IV, 9 for the impairment testing for long-term investment that the fair value of which cannot be
reliably measured due to the fact they are not quoted in an active market.
13. 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 pattern to make follow-up measurement to the investment property. The buildings are
depreciated under straight-line method. The land use rights are amortized under straight-line method within its
useful life.
Please refer to Notes IV, 27 for the details of the impairment testing for investment property which are measured in
cost pattern.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
14. Fixed assets
(1) Recognition of fixed assets
A fixed asset 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 in 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.
(2) Depreciation method of fixed assets
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 Depreciation period Residual rate (%) Yearly depreciation rate (%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery 10 to 20 years 3% 4.85%-9.70%
Vehicles 8 to 12 years 3% 8.08%-12.10%
Others 6 to 21 years 3% 4.62%-16.17%
(3) Impairment of fixed assets
Please refer to Notes IV, 27 for the methods of testing and accruing fixed assets impairment.
(4) Others
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.
15. Construction in progress
(1) Measurement of 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.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(2) Recognition of transfer
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
(3) Impairment of construction in progress
Please refer to Notes IV, 27 for the methods of testing and accruing construction in progress impairment.
16. Borrowing cost
(1) Capitalization of 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 in 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 are 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.
(2) Capitalization period
Capitalization of borrowing costs shall cease when substantially all the activities necessary to prepare the qualifying
asset for its intended use or sale. And subsequent borrowing costs are recognized in the income statement.
(3) Suspend of capitalization
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.
(4) Measurement of capitalization
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be
determined as follows:
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
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.
17. Intangible assets
(1) Recognition of intangible assets
An intangible asset 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.
(2) The useful lives of the intangible assets are as follow:
Category Useful life Basis
Land use rights 25 to 61 years Land use rights certification
Software 2 years Software update cycle
Trademark 15 years Law regulation
Non-patent technology 5 years Products life cycle
(3) Criterion of intangible assets with indefinite useful life
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 Group has no intangible asset with indefinite useful life
(4) Impairment of intangible assets
Please refer to Notes IV, 27 for the methods of testing and accruing intangible assets.
(5) Classification of internal research and development expenditures stages
The Group classified the internal research and development expenditures as follows: research expenditures and
development cost.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that meet all the conditions of (a) it is feasible technically 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.
(6) Accounting treatment of research and development expenditures
The Company discriminates between research and development stage with the condition that the project research
comes into project-determination stage, in which the relevant research complete all the fractionalization of products
measurements and final product scheme under final approval of management. The expenditures incurred in and
before project-determination stage is charged to the current income, otherwise it is recorded as development cost.
18. 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.
19. Contingent liabilities
(1) Recognition of contingent liabilities
Except contingent liability recognized in a business combination, the Group recognizes an contingent liability when
the obligation arising from a contingency meets the following conditions:
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.
(2) Measurement of contingent liabilities
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.
71
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
20. Buy back of shares
The expenses or consideration paid for buy-back of capital instruments is a deduction of total owner’s equity. The
issue, buy-back, sell or write-off of capital instruments are not recognized as profit or loss.。
21. Revenue
(1) Recognition of revenue generated from sales of goods and rendering of services
Revenue is recognized only when an inflow of economic benefits is probable, the amount of which can be reliably
measured, and all of the following conditions are qualified.
Revenue from the sale of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group
retains neither continuing management involvement to the degree usually associated with ownership nor effective
control over the goods sold; and the amount of revenue can be measured reliably. The proceeds earned from sales of
goods are determined based on the amount received or receivable as stipulated in the contract or agreement,
otherwise the amount is not fair; If the amount received or receivable as stipulated in the contract or agreement is
collected in a defer method, it includes the financing elements and should be determined according to the fair value
of the amount received or receivable as stipulated in the contract or agreement.
Revenue from the rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance
sheet date, revenue associated with the transaction is recognized using the percentage of completion method, or
otherwise, the revenue is recognized to the extent of costs incurred that are expected to be recoverable. The
outcome of a transaction involving rendering of services can be estimated reliably when all of the following
conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the associated
economic benefits will flow to the Group; the stage of completion of the transaction can be measured reliably; and
the costs incurred and to be incurred for the transaction can be measured reliably. The Group determines the stage
of completion of a transaction involving the rendering of services by using the proportion of services performed to
date to the total services to be performed. The total amount of revenue earned from rendering service are
determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise the
amount is not fair.
(2) Recognition of revenue generated from assignment of rights to use assets
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others and the applicable
effective interest rate.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over
72
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
the lease term.
22. Government grants
(1) Classification of government grants
Government grants include the grants relating to assets and grants relating to income.
(2) Accounting treatment of 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 at nominal amount.
A grant relating to income, which as compensation for future costs, is recognized as deferred income initially, and as
income when the related cost incurs. The grant as compensation for costs already incurred should be recognized as
income for the current period. A grant relating to assets is recognized as deferred income initially, and as income
evenly among the useful life of the related assets. The grant accounted for at nominal amount is recognized as
income for the current period.
23. Deferred tax assets and liabilities
(1) Recognition of deferred tax assets
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 subsidiary, 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.
(2) Recognition of deferred tax liabilities
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.
73
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
2) in respect of taxable temporary differences associated with investments in subsidiary, 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.
24. Leases
Accounting treatment of operating leases
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and
either included in the cost of another related asset or charged to the income statement for the current period.
25. Changes of Significant accounting judgments and estimates
Is there any change of significant accounting policies and accounting estimates in current period?
□ Yes √ No □ Not applicable
(1) Changes of significant accounting policies
Is there any change of significant accounting policies in current period?
□ Yes √ No □ Not applicable
(2) Changes of significant accounting estimates
Is there any change of significant accounting estimates in current period?
□ Yes √ No □ Not applicable
26. Correction of prior periods accounting errors
Is there any accounting error of prior periods found in current period?
□ Yes √ No □ Not applicable
(1) Retrospective restatement method
Is there any error of prior periods found in current period which should be retrospectively restated?
□ Yes √ No □ Not applicable
(2) Prospective application method
Is there any error of prior periods found in current period which should be prospectively restated?
□ Yes √ No □ Not applicable
74
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
27. Other significant accounting judgments and estimates
Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes,
financial assets, and long-term equity investment which is measured by employing the cost method, for which
there is no offer in the active market and of which the fair value cannot be reliably measured, 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 with an indefinite useful life 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 largely independent of the cash flows from
other assets or asset groups.
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 an 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.
75
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
Significant accounting judgments and estimates
The preparation of the Company's financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the balance sheet date. However, uncertainty about these assumptions and estimates could
result in outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities
affected in the future.
Judgments
When applying the accounting policies of the Group, except for accounting estimates, management will make
accounting judgments which have significant effects on the financial statements:
The Group makes a judgment on whether there is any indicator of possible assets impairment on the balance sheet
date at least. If there is indicator of possible assets impairment, the assets concerned should be subject to impairment
test based on the estimated recoverable amount. The recoverable amount shall be determined in light of the higher
one of the net amount of the fair value of the assets minus the disposal expenses and the current value of the
expected future cash flow of the assets. When making an estimate of the present value of the future cash flow of an
asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with the appropriate
discount rate selected to reflect the present value of the future cash flows.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated
uncertainty, which may result in the significant adjustments to the book value of the subsequent accounting period,
are as the following:
Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets other than financial
assets may be impaired. If there is any sign of possible assets impairment, the assets concerned should be subject to
impairment test. When the carrying amount of an asset or the relevant assets group exceeds its recoverable amount
which is the higher one of the net amount of the fair value of the asset minus the disposal expenses and the current
value of the expected future cash flow of the asset, the asset is considered impaired. The fair value minus the
disposal expenses is determined by reference to the recent market transactions price or observed market price less
any directly attributable expenditure for disposing. When making an estimate of the present value of the future cash
flow of an asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with the
appropriate discount rate selected to reflect the present value of the future cash flows.
Impairment of goodwill
Goodwill is subject to the impairment test yearly at least, which brings the estimates of the use value of the assets
group that is allocated in goodwill. When making an estimate of the use value of the assets concerning goodwill, the
Group should estimate the future cash flows of the assets group concerned, with the appropriate discount rate to
76
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
reflect the present value of the cash flows.
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable, the impairment test
should be conducted individually. Where there is evidence that indicates impairment, the loss should be recognized
with the respective provision accrued, equaling to the difference between the present value of the future cash flows
and the book value of receivables. For other receivables concerned, management should accrue the general
provisions, along with the receivables individually tested while no impairment incurred, taking in account the
collectability.
Development expenditures
When determining the capitalization amount, management should make assumptions such as the expected cash
flows of the assets related, the applicable discount rate and expected benefit period.
Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and
deductible temporary differences to the extent of the amount of the taxable income which it is most likely to obtain
and which can be deducted from the deductible temporary differences. Enormous accounting judgments, as well as
the tax planning are compulsory for management to estimate the time and amount of prospective taxable profits and
thus determine the appropriate amount of the deferred tax assets concerned.
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform
satisfactorily based on certain pre-determined conditions. Management estimates the related warranty claims based
on historical warranty claim information including level of repairs and returns as well as recent trends that might
suggest that past cost information may differ from future claims. Factors that could impact the estimated claim
information include the success of the Group’s quality controls, as well as parts and labour costs. Any increase or
decrease in the provision would affect profit or loss in future years.
Depreciation and amortization
The Group’s management determines the estimated useful lives of fixed assets and intangible assets. This estimate is
based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and
functions. Management will increase the depreciation and amortization charges where useful lives are less than
previously estimated.
(V)Taxes
1. The major categories of taxes and surcharges
Categories of taxes and surcharges Basis of tax Tax rate
The invoiced value of sales of goods and
rendering of services, and is payable by
Value added tax (‘VAT”) 17%
the purchaser. The Group is required to
pay the VAT it collects to the tax
77
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
authority, but may deduct the VAT it has
paid on eligible purchases.
Consumption tax Taxable sales 1%-5%
Business tax Taxable sales 5%
City maintenance and construction tax The turnover taxes paid 7%
Educational surcharge The turnover taxes paid 3%
Local educational surcharge The turnover taxes paid 2%
Corporate income tax Taxable income 15% or 25%
2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions
(Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration and
the National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in the Western
Region in encouraged business would be entitled to a preferential EIT rate of 15%. The above-mentioned
enterprises encouraged industries shall satisfy two criteria of enterprises whose principal business are in accordance
with Catalogue of Encouraged Industries in the Western Region, and the revenue should account for more than 70%
of the total revenue. Although the Catalogue of Encouraged Industries in Western Region has not been issued, from
the management’s opinion, the major operations of the Company and Changan Special Sales were qualified as
encouraged industries in previous year and there are no changes in the scope of business operations for both
companies in the period from January to June 2012. The corporate income tax of the Company and Changan
Special Sales were currently accrued at the rate of 15% in 2012.
78
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(VI). Consolidation scope
1. Subsidiary
(1) The subsidiary formed by establish or investment
Currency unit: Yuan
Amount of
Total Total minority
Registered Actual proportion proportio Consoli interest
Name of Type of Registered Nature of Type of
capital Scope of business investment of n of dated or Minority interest deducted the
Subsidiary company place business currency
(0,000) (0,000) shareholder voting not equity
s (%) rights (%) belong to
minorities
Hebei Changan
Manufactor Manufacture and selling
Automobile Co., Co., Ltd Dingzhou 46,469 RMB 43,764 94.07% 94.07% Yes
y cars and spare parts
Ltd
Chongqing
Seller and agent of
Changan
Chongqin import / export services
International Co., Ltd Sales 1,376 1,307 95% 95% Yes
g RMB of commodities and
Automobile Sales
techniques
Co., Ltd
Chongqing
Changan Chongqin Seller of cars and spare
Co., Ltd Sales 4,850 RMB 4,850 100% 100% Yes
Automobile Sales g parts
Co., Ltd
Chongqing Co., Ltd Chongqin Sales 500 RMB Seller and repairer of 250 50% 50% Yes
79
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Changan Special g special cars and spare
Automobile sales parts
Co., Ltd
Chongqing
Changan
Chongqin Seller of cars and spare
Automobile Co., Ltd Sales 3,000 RMB 3,000 100% 100% Yes
g parts
supporting service
Co., Ltd.
Chongqing
Changan new Developer, Manufacturer
Chongqin
Engergy Co., Ltd R&D 2,900 RMB and seller of new-energy 1,885 65% 65% Yes
g
Automobile Co. cars
Ltd
Chongqing
Changan Europe Turin, Research and
Co., Ltd R&D 1460 Euro 97 100% 100% Yes
Design Academy Italy development of vehicles
Co., Ltd.
Engine project planning,
Changan United project management,
Nottingha
Kingdom R&D feasibility studies,
Co., Ltd m, United R&D 10 GDP 98 100% 100% Yes
Center Co., preliminary research and
Kingdom
Ltd. other cutting-edge
technology
Beijing Changan Engineering and
R&D Center Co., Co., Ltd Beijing R&D 100 RMB technology research and 100 100% 100% Yes
Ltd. development
Ha’erbin Changan Research and
Co., Ltd Ha’erbing R&D 100 RMB 100 100% 100% Yes
R&D Center Co., development of cars and
80
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Ltd. spare parts
Jiangxi Changan Research and
Jingdezhe
R&D Center Co., Co., Ltd R&D 200 RMB development of cars and 200 100% 100% Yes
n
Ltd spare parts
Shanghai Changan Research and
R&D Center Co., Co., Ltd Shanghai R&D 100 RMB development of cars and 100 100% 100% Yes
Ltd. spare parts
Engine project planning,
project management,
Changan Japan
Yokohama feasibility studies,
Designing Center Co., Ltd R&D 2000 JPY 139 100% 100% Yes
, Japan preliminary research and
Co.,Ltd.
other cutting-edge
technology
Engine project planning,
Changan United project management,
Troy,
States R&D feasibility studies,
Co., Ltd United R&D 20 USD 132 100% 100% Yes
Center Co., preliminary research and
states
Ltd. other cutting-edge
technology
(2) The subsidiary formed by business combination under common control
Currency unit: Yuan
Amount of
Total Total
minority
Type of Registered Actual proportion proportio Consolid
Name of Registere Nature of Type of interest
compan capital Scope of business investment of n of ated or Minority interest
Subsidiary d place business currency deducted the
y (0,000) (0,000) shareholde voting not
equity
rs (%) rights
belong to
81
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(%) minorities
Chongqing
Changan Co., Seller of cars and spare
PRC Sales 850 RMB 850 100% 100% Yes
Automobile Ltd parts
sales subsidiary
Manufacture and selling
cars, trucks, vans,
Hebei Baoding
Co., electric vehicles, special
Changan Bus PRC Manufactory 3,000 RMB 20,271 100% 100% Yes
Ltd vehicles, spare parts,
Co., Ltd.
molds and non-standard
machineries
(3) The subsidiary formed by business combination not under common control
Currency unit: Yuan
Amount of
Total
Total minority
proportio
Type of Registered Actual proportion Consolid interest
Name of Registere Nature of Type of n of
compa capital Scope of business investment of ated or Minority interest deducted the
Subsidiary d place business currency voting
ny (0,000) (0,000) shareholder not equity
rights
s (%) belong to
(%)
minorities
Nanjing
Changan Co., Manufacture and selling
Nanjing Manufactory 60,181 RMB 41,381 82.47% 91.53% Yes
Automobile Co., Ltd cars and spare parts
Ltd
2. Special purpose entity or entity controlled by entrusted or lessee
□Available √ Not Available
82
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
3. Changes in consolidation scope
Changes in consolidation scope:
□Available √ Not Available
(VII) Notes to the consolidated financial statements
1. Cash and cash equivalents
Unit: Yuan
Item Ending Balance Opening Balance
Cash 21,745.39 70,542.82
Cash in bank 3,865,645,877.05 4,238,640,169.67
Other cash 373,386,543.39 632,489,094.28
Total 4,239,054,165.83 4,871,199,806.77
2. Financial assets held for trading
Unit: Yuan
Item Ending Fair Value Opening Fair Value
Bond investment for trading
Equity investment for trading
Financial assets at fair value through profit or loss
Derivative financial assets
Hedging Instrument
Others 0.00 1,525,799.63
Total 0.00 1,525,799.63
3. Notes receivable
(1) Classification of notes receivable
Unit: Yuan
Item Ending Balance Opening Balance
Commercial 2,035,164,596.50 1,321,304,176.50
Bank 4,561,055,676.95 4,370,213,836.71
Total 6,596,220,273.45 5,691,518,013.21
(2) Notes endorsed but not terminated
Unit: Yuan
83
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Drawer Issuing Date Expiration Date Amount Remark
Chengdu Wanyou Economic
January 19 2012 July 19 2012 14,800,000.00
Technological Development Co., Ltd
Wuhan Changyuan Automobile Sales
January 13 2012 July 13 2012 13,000,000.00
and Services Co., Ltd.
Nanjing Changan Automobile Co., Ltd April 9 2012 October 9 2012 12,000,000.00
Nanjing Changan Automobile Co., Ltd June 11 2012 December 11 2012 10,000,000.00
Nanjing Changan Automobile Co., Ltd June 11 2012 December 11 2012 10,000,000.00
Total -- -- 59,800,000.00 --
4. Dividend receivable
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
Within 1 year 0.00 0.00 0.00 0.00
Including:
Over 1 year 450,030.00 0.00 0.00 450,030.00
Including: -- -- -- --
Chongqing HelpGo Information
450,030.00 450,030.00
Technology Co., Ltd
Total 450,030.00 0.00 0.00 450,030.00
Notes: Chongqing HelpGo Information Technology Co., Ltd was in liquidation and is not impairment.
5. Account receivable
(1) A type analysis of the accounts receivable as at the balance sheet date is as follows:
Unit: Yuan
Ending Balance Opening Balance
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed 0.00 0.00 0.00 0.00
individually for provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
301,894,31 42,470,038. 200,567,4 41,007,836.8
receivable analyzed for 40.28% 14.07% 35.73% 20.45%
2.68 14 43.69 4
provision according to
84
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
aging analysis
Group 2. Accounts
432,549,63 346,147,8
receivable from related 57.72% 0.00 0% 61.65% 0.00 0%
6.55 31.20
parties
734,443,94 42,470,038. 546,715,2 41,007,836.8
Group subtotal 98% 5.78% 97.38% 7.50%
9.23 14 74.89 4
individually insignificant
14,980,150. 14,980,150. 14,735,09 14,735,095.2
items but analyzed 2% 100% 2.62% 100%
61 61 5.25 5
individually for provision
749,424,09 57,450,188. 561,450,3 55,742,932.0
Total -- -- -- --
9.84 75 70.14 9
Individually significant items and analyzed individually for provision
□ Applicable √ Not applicable
Within groups, accounts receivable analyzed for provision according to aging analysis：
√Applicable □ Not applicable
Unit: Yuan
Ending Balance Opening Balance
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Including: -- -- -- -- -- --
0-6 months 205,755,574.04 68.15% - 104,795,109.94 52.24% -
6-12 months 16,367,412.52 5.43% 818,370.63 19,951,832.20 9.95% 997,591.61
Within 1 year
222,122,986.56 73.58% 818,370.63 124,746,942.14 62.19% 997,591.61
subtotal
1 to 2 years 37,269,084.05 12.35% 3,726,908.40 35,720,754.21 17.81% 3,572,075.42
2 to 3 years 5,039,600.56 1.67% 1,511,880.17 3,081,910.30 1.54% 924,573.09
Over 3 years 37,462,641.51 12.40% 36,412,878.94 37,017,837.04 18.46% 35,513,596.72
3 to 4 years 1,396,722.35 0.46% 698,361.18 2,982,062.64 1.49% 1,491,031.32
4 to 5years 1,757,006.97 0.58% 1,405,605.58 66,045.00 0.03% 52,836.00
Over 5 years 34,308,912.19 11.36% 34,308,912.18 33,969,729.40 16.94% 33,969,729.40
Total 301,894,312.68 -- 42,470,038.14 200,567,443.69 -- 41,007,836.84
Within Groups, other receivables analyzed for provision according to proportion of balance:
□ Applicable √ Not applicable
Within Groups, accounts receivable analyzed for provision with other methods:
√Applicable □ Not applicable
85
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Unit: Yuan
Group Balance Provision
Provision for accounts receivable from
432,549,636.55 0.00
related parities
Total 432,549,636.55 0.00
Individually insignificant items but analyzed individually for provision:
√Applicable □ Not applicable
Unit: Yuan
Provision
Details of accounts receivable Balance Provision Reason for provision
Percentage
KARAKORAMMOTORS(P Loss contact with customer and unlikely
7,719,759.43 7,719,759.43 100%
VT)LTD to be recover
AUTOHAUSGOBELNORTH The customer close to bankruptcy and
6,119,941.70 6,119,941.70 100%
CLIFF(PTY)LTD unlikely to be recover
WASANATRADINGLANKA The customer broke its capital chain due
(PVT)LTD 515,739.59 515,739.59 100% to the civil unrest and unlikely to be
recover
Others Full provision for small amount
624,709.89 624,709.89 100%
receivables which has a long aging
Total 14,980,150.61 14,980,150.61 100% --
(2) Account receivable due from shareholders that hold 5% or more of the Parent Company’s voting shares
□Applicable √ Not applicable
(3) Top five debtors of accounts receivable are as follows:
Unit: Yuan
Relationship with Proportion of total accounts
Debtors Amount Aging
the Group receivable (%)
Hafei Automobile Co., Ltd. Related parties 195,876,213.86 Within 1 year 26.14%
Chengdu Wanyou Economic Related parties
Technological Development Co., 59,707,458.64 Within 6 months 7.97%
Ltd
Changan Ford Mazda Automobile Related parties
28,279,727.29 Within 2 years 3.77%
Co., Ltd
Changan Automobile Sales
Not-related 12,744,900.53 Within 6 months 1.69%
Western Co., Ltd.
AUTOHAUS GOBEL Not-related 12,479,572.67 Within 3 years 1.67%
86
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
NORTHCLIFF (PTY) LTD
Total -- 309,087,872.99 -- 41.24%
(4) Accounts receivable from related parties is as follows：
Unit: Yuan
Proportion of total accounts
Debtors Relationship with the Group Amount
receivable (%)
Changan Ford Mazda Automobile Co., Ltd Joint venture 28,279,727.29 3.77%
Changan Ford Mazda Automobile Co., Ltd
Joint venture 1,156,660.06 0.15%
– Nanjing Branch
Chongqing Changan Suzuki Automobile
Joint venture 3,417,945.11 0.46%
Co., Ltd
Jiangling Holding Co., Ltd Joint venture 6,622,974.08 0.88%
Chongqing Changan Kuayue Automobile
Associate 1,554,609.70 0.21%
Co., Ltd
Controlled by the same ultimate
Changan Industries Group Co., Ltd 2,782,358.51 0.37%
holding company
China Changan Automobile Co., Ltd - Controlled by the same parent
10,020.75 0%
Jian’an Automobile Bridge Branch company
Controlled by the same parent
Hafei Automobile Co., Ltd. 195,876,213.86 26.14%
company
Controlled by the same parent
Jiangxi Changhe Automobile Co., Ltd 54,383.35 0.01%
company
Controlled by the same parent
Hefei Changhe Automobile Co., Ltd 2,337,000.00 0.31%
company
Controlled by the same parent
Chongqing Anfu Automobile Co., Ltd 1,070,236.97 0.14%
company
Controlled by the same ultimate
Yunnan Xiyi Industries Co., Ltd 58,000.00 0.01%
holding company
Chengdu Wanyou Economic Technological Controlled by the same ultimate
59,707,458.64 7.97%
Development Co., Ltd holding company
合计 -- 302,927,588.32 40.42%
6. Other receivables
(1) A type analysis of the other receivables as at the balance sheet date is as follows:
Unit: Yuan
87
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Ending Balance Opening Balance
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed 149,674,912. 24,199,000.0 69,283,000.0
44.27% 16.17% 45.7% 24,199,000.00 34.93%
individually for 92 0 0
provision
Other receivables analyzed as groups for provision
Group 1. Other
receivables analyzed for 181,209,226. 74,654,304.0
53.59% 3,159,729.97 1.74% 49.24% 2,800,133.80 3.75%
provision according to 85 2
aging analysis
Group 2. Other
receivable from related 460,452.01 0.30%
parties
Group subtotal 181,209,226. 75,114,756.0
53.59% 3,159,729.97 1.74% 49.54% 2,800,133.80 3.73%
85 3
Individually insignificant
items but analyzed
7,225,076.35 2.14% 7,225,076.35 100% 7,212,226.65 4.76% 7,212,226.65 100%
individually for
provision
Total 338,109,216. 34,583,806.3 151,609,982.
-- -- -- 34,211,360.45 --
12 2 68
Individually significant items and analyzed individually for provision:
√ Applicable □ Not applicable
Content Balance Provision % Remark
Nanjing Yinkun property
24,199,000.00 24,199,000.00 100% Over 3 years
agent Co., Ltd
Guarantee for customs and
125,475,912.92
VAT duties
Total 149,674,912.92 24,199,000.00 -- --
Unit: Yuan
Ending Balance Opening Balance
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
88
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Including:
0-6 months 158,668,100.58 87.56% 0.00 67,118,160.86 89.91% 0.00
6-12 months 10,562,798.00 5.83% 528,139.90 2,962,061.00 3.97% 148,103.05
Within 1 year subtotal 169,230,898.58 93.39% 528,139.90 70,080,221.86 93.88% 148,103.05
1 to 2 years 8,842,379.54 4.88% 372,517.61 1,828,459.53 2.45% 182,845.96
2 to 3 years 763,789.40 0.42% 213,070.38 381,910.60 0.51% 114,573.18
Over 3 years 2,372,159.33 1.31% 2,046,002.08 2,363,712.03 3.16% 2,354,611.61
3 to 4 years 18,200.85 0.02% 9,100.43
4 to 5years 18,200.85 0.01% 9,100.43
Over 5 years 2,353,958.48 1.3% 2,036,901.65 2,345,511.18 3.14% 2,345,511.18
Total 181,209,226.85 -- 3,159,729.97 74,654,304.02 -- 2,800,133.80
Within Groups, other receivables analyzed for provision according to proportion of balance:
□ Applicable √ Not applicable
Within Groups, other receivable analyzed for provision with other methods:
□ Applicable √ Not applicable
As at balance sheet date, individually insignificant items but analyzed individually for provision
√ Applicable □ Not applicable
Unit: Yuan
Provision Reason for provision
Details of other receivables Balance Provision
Percentage (%)
Nanjing Changan Industrial Park whose aging is too long and
4,855,532.43 4,855,532.43 100%
Management Committee unlikely to recover
Nanjing Dongchi Automotive Industry whose aging is too long and
1,884,213.22 1,884,213.22 100%
(Group) Co., Ltd. unlikely to recover
Nanjing Qinyuan Vocational Technical Not able to fulfill the payment and
5,000.00 5,000.00 100%
School unlikely to recover
Heibei National Defense Vocational whose aging is too long and
467,481.00 467,481.00 100%
Technical School unlikely to recover
Total 7,212,226.65 7,225,076.35 100% --
(2) Other receivable due from shareholders that hold 5% or more of the Parent Company’s voting shares:
□ Applicable √ Not applicable
(3) Individually significant other receivable are as follows:
Unit: Yuan
Debtors Amount Nature and content Proportion of total other
89
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
receivables (%)
Chongqing Customs District PRC 125,475,912.92 Deposit for tariff 37.11%
Total: 125,475,912.92 -- 37.11%
(4) Top five debtors of other receivables are as follows:
Unit: Yuan
Relationship with Proportion of total other
Debtors Amount Aging
the Group receivables (%)
Chongqing Customs District PRC Not-related 125,475,912.92 Within 6 months 37.11%
Nanjing Yinkun Real Estate Agent
Not-related 24,199,000.00 Over 3 years 7.16%
Co., Ltd.
Beijing Fangan taxi Co., Ltd Not-related 6,000,000.00 Within 6 months 1.77%
Nanjing Kejian Machinery Co., Ltd. Not-related 5,094,317.71 Within 6 months 1.51%
Management Committee of Nanjing
Not-related 4,855,532.43 Within 1 year 1.44%
Changan Industry Zone
Total: -- 165,624,763.06 -- 48.99%
7. Prepayments
(1) An aged analysis of the prepayments as at the balance sheet date is as follows:
Unit: Yuan
Ending Balance Opening Balance
Aging Amount Percentage Amount Percentage
(%) (%)
Within 1 year 263,552,135.55 98.82% 254,821,023.55 79.48%
1 to 2 years 2,230,203.08 0.84% 65,711,395.93 20.49%
2 to 3 years 870,745.93 0.33% 91,553.20 0.03%
Over 3 years 41,400.00 0.02%
Total 266,694,484.56 -- 320,623,972.68 --
(2) Top five debtors of prepayments are as follows:
Unit: Yuan
Relationship with the
Debtors Amount Reason for outstanding
Group
Chongqing Baojing Steel Processing Goods not received
Not- related 131,253,598.62
and Distribution Co., Ltd.
90
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chongqing Bao Steel Car Spares Co., Goods not received
Not- related 72,489,870.00
Ltd. company limited
Beijing Bao Steel North Trade Co., Ltd. Not- related 21,771,064.45 Goods not received
Hebei Machinery Import and Export Not- related 17,992,592.66 Goods not received
Tianjin Ben Steel Trade Co., Ltd. Not- related 13,405,799.93 Goods not received
Total -- 256,912,925.66 --
(3) Prepayment balance due from shareholders that hold 5% or more of the Company’s voting shares:
□ Applicable √ Not applicable
8. Inventory
(1) Classification of inventory
Unit: Yuan
Ending Balance Opening Balance
Item
Balance Provision Net value Balance Provision Net value
Raw materials 287,333,912.86 85,629,185.66 201,704,727.20 504,484,450.06 79,345,153.65 425,139,296.41
Work in progress 297,450,079.78 5,327,422.78 292,122,657.00 333,294,975.51 1,866,763.48 331,428,212.03
Commodity stock 2,834,862,896.45 10,418,903.56 2,824,443,992.89 3,151,425,486.26 31,865,894.90 3,119,559,591.36
Material in transit 149,284,473.69 149,284,473.69 136,723,770.46 136,723,770.46
Consigned
188,700.85 188,700.85
processing material
Consumables 155,544,284.29 155,544,284.29 127,324,685.44 127,324,685.44
Spare parts 13,241.02 13,241.02 3,254,090.92 3,254,090.92
Total 3,724,488,888.09 101,375,512.00 3,623,113,376.09 4,256,696,159.50 113,077,812.03 4,143,618,347.47
(2) Provision for inventory
Unit: Yuan
Deduction
Type Opening Balance Provision Ending Balance
Reversal Reversal
Raw materials 79,345,153.65 6,284,032.01 85,629,185.66
Work in progress 1,866,763.48 3,460,659.30 5,327,422.78
Commodity stock 31,865,894.90 1,001,491.78 21,816,483.12 632,000.00 10,418,903.56
Total 113,077,812.03 10,746,183.09 21,816,483.12 632,000.00 101,375,512.00
91
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(3) Provision details
Proportion of reversal amount to the
Type Provision basis Provision reversal basis
inventory balance
cost higher than realizable net
Raw materials
value
Commodity stock provision basis disappear 0.77%
cost higher than realizable net
Work in progress
value
9. Other current assets
Unit: Yuan
Item Ending Balance Opening Balance
Accrual input tax, etc 555,653.62 7,463,166.98
Total 555,653.62 7,463,166.98
10. Available-for-sale financial assets
Unit: Yuan
Item Ending fair value Opening fair value
Available-for-sale bonds
Available-for-sale equity interests 269,656,220.00 225,129,480.00
Others
Total 269,656,220.00 225,129,480.00
The available-for-sale equity interests is the 17.75 million restricted outstanding shares of Southwest Securities
Co., Ltd and 7.28 million shares of HuaXia Bank.
92
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
11. Investment in joint ventures and associates
Unit: Yuan
Shareh
Registe Legal olding Voting
Registered Curren Total assets at Total liabilities at Total net assets Total operating
Investee Corporate type red represent Nature of the business percent percentage Total net profits
capital cy end end at end income
place ative age (%)
(%)
I. Joint ventures
Chongqing
Changan Manufacture and sale of
Chong Xu
Suzuki Co., Ltd. automobiles, and 19,000 USD 51% 51%5,437,710,589.732,697,454,372.302,740,256,217.435,769,213,270.90 102,703,005.75
qing Liuping
Automobile components
Co., Ltd
Jiangling Manufacture and sale of
Nancha Xu
Holding Co., Co., Ltd. automobiles, and 200,000 CNY 50% 50%5,253,175,479.621,976,336,495.043,276,838,984.58 674,317,645.03 262,429,641.51
ng Liuping
Ltd components
Changan
Manufacture and sale of
Ford Mazda Chong Xu
Co., Ltd. automobiles, and 35,144 USD 50% 50% 23,961,806,848.00 14,778,637,940.00 9,183,168,908.00 24,469,989,984.39 1,093,140,279.29
Automobile qing Liuping
components
Co., Ltd
Changan
Ford Mazda Nanjin Xu Manufacture and sale of
Co., Ltd. 17,270 USD 50% 50% 2,893,501,073.33 2,191,479,717.75 702,021,355.58 1,323,030,974.22 12,112,850.24
Engine Co., g Liuping engines, and components
Ltd
二、Associates
93
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Develop, product, and sale
of computer software and
Chongqing
hardware, provide advice
HelpGo
Chong and training related to
Information Co., Ltd. Ma Jun 2,100 CNY 21.43% 21.43% 60,217,772.12 15,599,206.59 44,618,565.53 2,529,958.20 -6,813,255.44
qing computer application
Technology
technology, design and
Co., Ltd
maintain computer network
system
Chongqing
Xiyi
Chong Develop, manufactory, sale
Automobile Co., Ltd. Yang Bo 1,900 CNY 40% 40% 35,588,893.52 15,406,343.73 20,182,549.79 21,975,180.61 1,266,219.41
qing of linkage rod
Linkage Rod
Co., Ltd
Chongqing
Changan Develop, product and sale of
Chong Luo
Kuayue Co., Ltd. automobile and components; 6,533 CNY 34.3% 34.3% 846,717,712.39 619,719,825.54 226,997,886.85 572,109,942.33 1,538,806.24
qing Zhilong
Automobile import and export goods
Co., Ltd
Chongqing
Sale of Changan Kuayue’ s
Changan
automobile and agricultural
Kuayue Chong Luo
Co., Ltd. cars and components. 300 CNY 34.3% 34.3% 187,194,493.90 182,965,276.95 4,229,216.95 507,661,503.90 239,192.73
Automobile qing Zhilong
Technical advisory services
Sales Co.,
for automobile
Ltd
12. Long-term equity investments
Unit: Yuan
94
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Acco Explanation for the
Shareholdi
untin Voting difference between Current
Addition/ ng Current
Investee g Initial amount Beginning Ending percentage shareholding Impairment cash
(deduction) percentage provision
meth (%) percentage and dividends
(%)
od voting percentage
I. Joint ventures
Chongqing Changan Suzuki 239,905,266.00
1,372,612,641.40 51,674,154.43 1,424,286,795.83 51.00 51.00 N/A - - -
Automobile Co., Ltd Equity
Jiangling Holding Co., Ltd Equity 1,000,000,000.00 1,492,969,790.10 131,214,820.76 1,624,184,610.86 50.00 50.00 N/A - - -
Changan Ford Mazda Automobile Co., Equity 1,395,110,717.00
4,011,538,873.50 542,930,665.30 4,554,469,538.80 50.00 50.00 N/A - - -
Ltd
Changan Ford Mazda Engine Co., Ltd Equity 557,292,960.00 343,195,182.39 6,056,425.12 349,251,607.51 50.00 50.00 N/A - - -
II. Associates
Chongqing HelpGo Information Equity 4,500,000.00
11,776,292.44 -1,460,080.64 10,316,211.80 21.43 21.43 N/A - - -
Technology Co., Ltd
Chongqing Xiyi Automobile Linkage Equity 4,000,000.00
7,664,634.71 506,487.76 8,171,122.47 40.00 40.00 N/A - - -
Rod Co., Ltd
Chongqing Changan Kuayue Equity 61,800,885.00
61,800,885.00 61,800,885.00 34.30 34.30 N/A - - -
Automobile Co., Ltd
Chongqing Changan Kuayue Equity 1.00
1.00 1.00 34.30 34.30 N/A - - -
Automobile Sales Co., Ltd
III. Others
China South Industry Group Finance 80,000,000.00
80,000,000.00 80,000,000.00 5.33 5.33 N/A - - -
Co., Ltd Cost
95
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chongqing Ante Import and Export 3,000,000.00
3,000,000.00 3,000,000.00 10.00 10.00 N/A - - -
Co., Ltd Cost
Sichuan Glass Co., Ltd Cost 1,809,274.00 1,809,274.00 1,809,274.00 0.64 0.64 N/A - - -
Zhong Fa Lian Investment Co., Ltd Cost 6,000,000.00 21,000,000.00 21,000,000.00 10.00 10.00 N/A - - -
Total － 3,353,419,103.00 7,407,367,574.54 730,922,472.73 8,138,290,047.27 -- -- -- - - -
96
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
13. Investment property
（1）Investment property measured through cost method
√ Applicable □ Not applicable
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
I. Original cost 84,210,075.73 0.00 0.00 84,210,075.73
1. Buildings 37,521,741.65 0.00 0.00 37,521,741.65
2.Land use right 46,688,334.08 0.00 0.00 46,688,334.08
II. Accumulated
depreciation and 22,859,697.48 1,290,468.30 0.00 24,150,165.78
amortization
1. Buildings 12,008,921.83 824,035.86 0.00 12,832,957.69
2.Land use right 10,850,775.65 466,432.44 0.00 11,317,208.09
III. Net Value 61,350,378.25 0.00 0.00 60,059,909.95
1. Buildings 25,512,819.82 24,688,783.96
2.Land use right 35,837,558.43 35,371,125.99
IV. Impairment
0.00 0.00 0.00 0.00
Provision
1. Buildings 0.00 0.00
2.Land use right 0.00 0.00
V. Book Value 61,350,378.25 0.00 0.00 60,059,909.95
1. Buildings 25,512,819.82 24,688,783.96
2.Land use right 35,837,558.43 35,371,125.99
Unit: Yuan
Current period
Depreciation and amortization for current period 1,290,468.30
Impairment provision accrued for current period 0.00
（2）Investment property measured through fair value pattern
□ Applicable √ Not applicable
97
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
14. Fixed assets
(1) Details of fixed assets
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
I. Original cost: 11,239,242,277.59 538,061,319.06 37,293,187.04 11,740,010,409.61
Including: Buildings 2,491,847,341.14 29,787,467.20 14,805,200.09 2,506,829,608.25
Machinery 6,492,143,885.80 264,494,955.99 18,634,722.81 6,738,004,118.98
Vehicles 68,411,425.64 4,599,818.81 964,448.63 72,046,795.82
Other Equipments 2,186,839,625.01 239,179,077.06 2,888,815.51 2,423,129,886.56
-- Opening Balance Addition Accrued Deduction Ending Balance
II. Accumulated
3,381,635,446.79 0.00 396,442,514.35 19,312,103.46 3,758,765,857.68
depreciation:
Including: Buildings 383,489,547.96 43,665,621.78 362,496.37 426,792,673.37
Machinery 2,175,657,007.65 188,226,713.58 9,405,669.14 2,354,478,052.09
Vehicles 28,818,814.67 4,038,768.25 721,967.27 32,135,615.65
Other Equipments 793,670,076.51 160,511,410.74 8,821,970.68 945,359,516.57
-- Opening Balance -- Ending Balance
III. Net Value: 7,857,606,830.80 -- 7,981,244,551.93
Including: Buildings 2,108,357,793.18 -- 2,080,036,934.88
Machinery 4,316,486,878.15 -- 4,383,526,066.89
Vehicles 39,592,610.97 -- 39,911,180.17
Other Equipments 1,393,169,548.50 -- 1,477,770,369.99
IV. Impairment Provision: 315,469,242.91 -- 315,469,242.91
Including: Buildings -- 0.00
Machinery 306,665,047.71 -- 306,665,047.71
Vehicles --
Other Equipments 8,804,195.20 -- 8,804,195.20
V. Book Value: 7,542,137,587.89 -- 7,665,775,309.02
Including: Buildings 2,108,357,793.18 -- 2,080,036,934.88
Machinery 4,009,821,830.44 -- 4,076,861,019.18
Vehicles 39,592,610.97 -- 39,911,180.17
Other Equipments 1,384,365,353.30 -- 1,468,966,174.79
During current period, the depreciation of fixed assets is RMB 396,442,514.35; during current period, the fixed assets amounted to
RMB 538,061,319.06 have been transferred from construction in progress.
98
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(2) Fixed assets rent in by finance lease
□ Applicable √ Not applicable
(3) Fixed assets rent out by operation lease
□ Applicable √ Not applicable
15. Construction in progress
(1) Details of construction in progress
Unit: Yuan
Ending Balance Opening Balance
Item
Balance Provision Balance Provision Balance Provision
Mini-bus production
3,009,595.76 3,009,595.76 3,229,748.52 3,229,748.52
equipment
Changan industrial garden
14,983,407.51 14,983,407.51 99,207,943.92 99,207,943.92
project
Engine production 1,752,344,525.61 1,752,344,525.61 676,224,425.42 676,224,425.42
Sedan production equipment 97,560,400.05 97,560,400.05 96,863,650.79 96,863,650.79
Vehicle research institution 189,810,210.52 189,810,210.52 238,530,573.53 238,530,573.53
Car moulds 306,679,008.26 306,679,008.26 173,514,613.60 173,514,613.60
Yuzui motor city project 227,758,289.40 227,758,289.40 61,729,037.54 61,729,037.54
Plant for vehicle test project 535,207,986.02 535,207,986.02 417,378,969.64 417,378,969.64
Hebei Changan new district
53,541,358.98 53,541,358.98 0.00 0.00
construction project
Hebei M201 bus production
190,389,481.48 190,389,481.48 101,201,173.86 101,201,173.86
plant project
Beijing vehicle construction
1,063,971,739.82 1,063,971,739.82 655,945,083.74 655,945,083.74
project
Others 261,208,549.49 261,208,549.49 271,711,688.42 271,711,688.42
Total 4,696,464,552.90 0.00 4,696,464,552.90 2,795,536,908.98 0.00 2,795,536,908.98
99
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(2) Significant movements of construction in progress
Unit: Yuan
Including:
Accumulated Current Source
Transfer to fixed Other Current
Project Budget Opening Balance Addition capitalized capitalizatio of Ending Balance
assets deduction capitalized
interest n rate funds
interest
Mini-bus production equipment 992,700,000.00 3,229,748.52 4,841,981.17 5,062,133.93 412,957.05 0.00 0% Raised 3,009,595.76
Yuzui motor city project 4,304,930,000.00 61,729,037.54 218,996,535.85 52,967,283.99 0.00 0% Raised 227,758,289.40
Changan industrial garden
1,490,310,000.00 99,207,943.92 19,943,614.65 0.00 0% Raised
project 5,980,968.14 90,205,504.55 14,983,407.51
Sedan production equipment 653,080,000.00 96,863,650.79 18,929,900.00 18,233,150.74 505,924.12 0.00 0% Raised 97,560,400.05
Engine production 4,383,080,000.00 676,224,425.42 1,146,686,489.27 70,230,078.07 336,311.01 12,926,342.81 0.00 0% Raised 1,752,344,525.61
Vehicle research institution 616,600,000.00 238,530,573.53 27,902,616.11 76,622,979.12 863,669.92 0.00 0% Raised 189,810,210.52
Car moulds 396,910,000.00 173,514,613.60 196,414,609.93 63,250,215.27 3,397,900.43 0.00 0% Raised 306,679,008.26
Hebei M201 bus production
313,700,000.00 101,201,173.88 0.00 0.00 0% Raised
plant project 92,713,457.16 3,525,149.56 190,389,481.48
Hebei Changan new district
528,700,000.00
construction project 63,940,804.38 10,399,445.40 53,541,358.98
Plant for vehicle test project 1,200,000,000.00 417,378,969.64 117,855,683.05 26,666.67 0.00 0.00 0% Raised 535,207,986.02
Beijing vehicle construction
2,550,805,000.00 655,945,083.74 0.00 0.00 0% Raised
project 412,043,301.90 4,016,645.82 1,063,971,739.82
38,955,819.
Others 271,711,688.42 226,664,970.33 198,212,290.11 0.00 0.00 0% Raised 261,208,549.49
15
100
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
39,292,130.
Total 17,430,815,000.00 2,795,536,909.00 2,532,971,317.29 592,751,543.23 38,050,408.98 0.00 -- -- 4,696,464,552.90
16
101
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
16. Construction materials
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
Specific materials 795,898.75 795,898.75
Total 795,898.75 0.00 0.00 795,898.75
17. Liquidation of fixed assets
Unit: Yuan
Item Opening Balance Ending Balance Reason of Liquidation
Office equipment 17,688.00 5,112,404.35 Scrapped
Total 17,688.00 5,112,404.35 --
18. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
I. Original cost 2,211,127,833.78 130,814,201.55 0.00 2,341,942,035.33
Land use rights 1,259,708,056.02 0.00 0.00 1,259,708,056.02
Software use rights 158,164,125.63 6,498,679.25 0.00 164,662,804.88
Trademark use rights 211,770,000.00 0.00 0.00 211,770,000.00
Non-patent technology 581,485,652.13 124,315,522.30 0.00 705,801,174.43
II. Accumulated amortization 382,328,408.50 131,243,577.18 0.00 513,571,985.68
Land use rights 46,373,015.58 15,347,637.19 0.00 61,720,652.77
Software use rights 94,079,259.78 26,911,127.60 0.00 120,990,387.38
Trademark use rights 40,061,278.54 9,975,666.66 0.00 50,036,945.20
Non-patent technology 201,814,854.60 79,009,145.73 0.00 280,824,000.33
III. Net Value 1,828,799,425.28 0.00 0.00 1,828,370,049.65
Land use rights 1,213,335,040.44 1,197,987,403.25
Software use rights 64,084,865.85 43,672,417.50
Trademark use rights 171,708,721.46 161,733,054.80
Non-patent technology 379,670,797.53 424,977,174.10
IV. Impairment Provision 6,700,000.00 0.00 0.00 6,700,000.00
Land use rights 6,700,000.00 6,700,000.00
Software use rights
Trademark use rights
102
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Non-patent technology
V. Book Value 1,822,099,425.28 0.00 0.00 1,821,670,049.65
Land use rights 1,206,635,040.44 1,191,287,403.25
Software use rights 64,084,865.85 43,672,417.50
Trademark use rights 171,708,721.46 161,733,054.80
Non-patent technology 379,670,797.53 424,977,174.10
During current period, the amortization of intangible assets is RMB 131,243,577.18 yuan.
(2) Development expenditure
Unit: Yuan
Deduction
Charged to income
Item Opening Balance Addition Recognized as Ending Balance
Statement of the
intangible assets
Current period
Automobile
426,379,528.16 498,007,019.31 285,188,908.20 130,814,201.55 508,383,437.72
Development
Total 426,379,528.16 498,007,019.31 285,188,908.20 130,814,201.55 508,383,437.72
19. Goodwill
Unit: Yuan
Impairment
Investee Opening Balance Addition Deduction Ending Balance
provision
Hebei Changan Automobile Co.,
9,804,394.00 9,804,394.00
Ltd.
Nanjing Changan Automobile
73,465,335.00 73,465,335.00 73,465,335.00
Co., Ltd.
Total 83,269,729.00 0.00 0.00 83,269,729.00 73,465,335.00
20. Long-term deferred expenses
Unit: Yuan
Opening Other Reason for other
Item Addition Amortization Ending Balance
Balance deduction deduction
Improvement on
leasing buildings, 2,069,156.74 8,655,911.36 296,113.38 0.00 10,428,954.72
etc
Total 2,069,156.74 8,655,911.36 296,113.38 0.00 10,428,954.72 --
103
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
21. Deferred tax assets and liabilities
Deferred tax assets and liabilities are listed separately.
√ Applicable □ Not applicable
Recognized deferred tax assets and liabilities
Unit: Yuan
Item Ending Balance Opening Balance
Deferred tax assets:
Provision for the impairment of assets 54,201,094.61 65,663,301.01
Start-up cost
Unused tax losses
Accrued expenses and contingent liabilities 279,659,653.85 239,346,491.35
Unpaid tech development expense and
22,122,172.68 17,009,906.01
advertisement expense
Other current liabilities – special payable 219,733,930.14 198,080,933.15
Unpaid salary and bonus and others 26,683,632.43 59,824,266.41
Subtotal 602,400,483.71 579,924,897.93
Deferred tax liabilities:
Fair value assessment of the financial asset held
for trading and derivative instrument
Available-for-sale financial assets on the changes
42,477,662.06 37,079,227.06
in fair value
Subtotal 42,477,662.06 37,079,227.06
22. Provision for the impairment of assets
Unit: Yuan
Deduction
Item Opening Balance Addition Ending Balance
Reversal Reversal
I. Bad debt provision 89,954,292.54 2,079,702.53 0.00 0.00 92,033,995.07
II. Provision for obsolete
113,077,812.03 10,746,183.09 21,816,483.12 632,000.00 101,375,512.00
inventory
III. Provision for the impairment
of financial asset available 0.00 0.00 0.00 0.00
for sale
IV. Provision for the impairment
of held-to-maturity 0.00 0.00 0.00 0.00
instrument
V. Provision for the impairment 0.00 0.00
104
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
of long-term equity
investment
VI. Provision for the impairment
0.00 0.00 0.00 0.00 0.00
of investment property
VII. Provision for the impairment
315,469,242.91 0.00 0.00 0.00 315,469,242.91
of fixed assets
VIII. Provision for the impairment
0.00 0.00 0.00 0.00
of construction materials
IX. Provision for the impairment
0.00 0.00 0.00 0.00 0.00
of construction in progress
X. Provision for the impairment
0.00 0.00 0.00 0.00
of biological assets
Including: Provision for the
impairment of ripened productive 0.00 0.00 0.00 0.00
biological assets
XI. Provision for the impairment
0.00 0.00
of oil and gas assets
XII. Provision for the impairment
6,700,000.00 0.00 0.00 0.00 6,700,000.00
of intangible assets
XIII. Provision for the impairment
73,465,335.00 0.00 0.00 0.00 73,465,335.00
of goodwil
XIV. Others 0.00 0.00 0.00 0.00
Total 598,666,682.48 12,825,885.62 21,816,483.12 632,000.00 589,044,084.98
23. Short-term loans
Unit: Yuan
Item Ending Balance Opening Balance
Pledge loans 80,000,000.00
Mortgage loans 0.00
Guaranteed loans
Credit loans 848,400,000.00 896,890,000.00
Total 848,400,000.00 976,890,000.00
24. Notes payable
Unit: Yuan
Type Ending Balance Opening Balance
Commercial acceptance bill 272,800,000.00
Bank acceptance bill 7,217,980,333.14 6,671,345,457.57
105
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Total 7,490,780,333.14 6,671,345,457.57
25. Accounts payable
(1) Accounts payable
Unit: Yuan
Item Ending Balance Opening Balance
Accounts payable 5,840,932,941.54 5,946,877,115.16
Total 5,840,932,941.54 5,946,877,115.16
(2) Account payable due to shareholders that hold 5% or more of the Parent Company’s voting
shares:
□ Applicable √ Not applicable
26. Advances from customers
(1) Advances from customers
Unit: Yuan
Item Ending Balance Opening Balance
Advances from customers 2,853,018,290.03 3,105,626,115.15
Total 2,853,018,290.03 3,105,626,115.15
(2) Advances from customers due to shareholders that hold 5% or more of the Parent Company’s
voting shares
□ Applicable √ Not applicable
27. Payroll payable
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
I. Salary, bonus, allowance and
180,631,806.23 848,973,443.98 904,356,841.80 125,248,408.41
subsidy
II. Employee benefit 269,198.56 35,083,985.84 34,068,894.49 1,284,289.91
III. Social insurance 68,167,488.60 169,909,405.54 152,122,545.10 85,954,349.04
Social insurance 68,167,488.60 169,909,405.54 152,122,545.10 85,954,349.04
IV. Housing accumulation fund 24,541,053.40 60,319,777.44 60,342,791.79 24,518,039.05
V. Fire fringe
VI. Others 5,199,147.21 21,548,534.07 13,171,126.54 13,576,554.74
106
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Labor fund and employee
5,199,147.21 21,548,534.07 13,171,126.54 13,576,554.74
education fund
Total 278,808,694.00 1,135,835,146.87 1,164,062,199.72 250,581,641.15
28. Taxes payable
Unit: Yuan
Item Ending Balance Opening Balance
Value-added tax -227,779,287.52 -438,348,406.47
Consumption tax 149,480,817.18 146,371,397.20
Business tax 363,983.23 227,581.31
Corporate income tax -45,618,480.48 90,016,244.47
Individual Income tax 748,485.51 1,800,604.83
City maintenance and construction tax 4,879,810.61 3,137,207.61
Education additional expenses 3,504,889.00 2,108,212.84
Others -464,020.15 5,067,460.88
Total -114,883,802.62 -189,619,697.33
29. Interest payable
Unit: Yuan
Item Ending Balance Opening Balance
Long-term loan interest
Bond interest 20,113,500.00
Short-term loan interest 1,805,087.78 1,485,285.83
Total 21,918,587.78 1,485,285.83
30. Dividend payable
Unit: Yuan
Item Ending Balance Opening Balance
Hebei Changan Minority interests 79,742.80 79,742.80
Total 79,742.80 79,742.80
31. Other payables
(1) Details of other payables
Unit: Yuan
Item Ending Balance Opening Balance
Dealer earnest money 149,185,484.86 148,062,447.87
107
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Warranty 14,565,459.28 73,503,617.89
Repair fees 40,334,728.00 114,333,956.68
Advertisement fees 49,157,892.99 54,805,209.31
Sales bonus 22,171,789.83 64,017,941.14
Warehousing and transport fees 348,037,220.43 239,357,064.79
Loans temporarily 55,061,680.96 45,867,754.69
Project funds 866,872,799.54 772,543,854.45
Others 160,364,468.54 165,255,288.50
Total 1,705,751,524.43 1,677,747,135.32
(2) Other payable due to shareholders that hold 5% or more of the Parent Company’s voting
□ Applicable √ Not applicable
32. Contingent liabilities
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
Warranty 589,154,705.34 229,607,105.73 209,096,094.48 609,665,716.59
Total 589,154,705.34 229,607,105.73 209,096,094.48 609,665,716.59
33. Other current liabilities
Unit: Yuan
Item Ending Balance Opening Balance
Commercial discount payable, etc 1,635,650,110.21 1,294,435,509.96
Total 1,635,650,110.21 1,294,435,509.96
34. Bond payable
Unit: Yuan
Bond Per Value Issuing Date Period Issuing amount Ending Balance
12 Changan
1,980,000,000.00 April 23 2012 5 years 1,960,410,400.00 1,960,410,400.00
Bond
The balance of bond payable is net raised funds. The interest accrued for current period of RMB20,113,500.00 was recorded
as interest payable.
35. Special payables
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
Project 863 27,682,405.12 13,855,580.00 16,949,885.93 24,588,099.19
Test on key technology of hybrid electric 828,912.36 0.00 828,912.36 0.00
108
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
vehicles
Development of Hydrogen
32,236.14 0.00 30,444.30 1,791.84
internal-combustion engine
Development of technology on
0.10 0.00 0.00 0.10
trans-region platform
New Vehicle product 2,595,134.82 0.00 2,595,134.82 0.00
Automobile product chain sharing
4,460,605.54 0.00 2,262,507.03 2,198,098.51
platform
Lightweight design of automotive
1,484,851.36 5,714,559.30 7,199,410.66
structures
Gasoline Engine Development 3,920,000.00 0.00 47,724.53 3,872,275.47
Development and industrialization of
the embedded software platform for 6,416,087.01 0.00 517,876.04 5,898,210.97
automotive electronic controllers
Changan automobile E class Gasoline
engine cylinder block, cylinder head 23,230,000.00 0.00 0.00 23,230,000.00
production line projec
Land relocation compensation 29,550,709.40 20,000,000.00 0.00 49,550,709.40
Others 13,273,544.67 14,568,614.52 5,034,414.07 22,807,745.12
Total 113,474,486.52 54,138,753.82 28,266,899.08 139,346,341.26
36. Other non-current liabilities
Unit: Yuan
Item Ending Balance Opening Balance
Deferred income, etc 1,465,637,333.48 1,380,108,565.16
Total 1,465,637,333.48 1,380,108,565.16
37. Share capital
Unit: Yuan
Current movement (+/-)
Opening Transfer of Ending
Issuance of
Balance Stock dividend reserve to Others Subtotal Balance
shares
common shares
Total Shares 4,834,482,546 0 0 0 -171,596,438 -171,596,438 4,662,886,108
The above capital reduction has been verified by Daxin Certified Public Accountants , and the related capital reduction
reports Daxinyanzi [2012]No.1-0055 have been issued.
38. Capital reserves
Unit: Yuan
109
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Item Opening Balance Addition Deduction Ending Balance
Share premium 3,144,341,824.65 325,330,460.51 2,819,011,364.14
Others 261,901,781.28 39,128,305.00 301,030,086.28
Total 3,406,243,605.93 39,128,305.00 325,330,460.51 3,120,041,450.42
39. Surplus reserves
Unit: Yuan
Item Opening Balance Addition Deduction Ending Balance
Statutory surplus 1,279,333,001.49 1,279,333,001.49
Discretionary surplus
Reserve fund
Venture expansion fund
Others
Total 1,279,333,001.49 0.00 0.00 1,279,333,001.49
40. Retained earnings
Unit: Yuan
Item Amount Proportion
Retained earnings at beginning of year before
--
adjustments
Total adjustments for beginning retained
--
earnings(add:+/less:-)
Retained earnings at beginning of year after
5,238,240,172.61 --
adjustments
Add: Net profit belong to parent company 570,029,439.95 --
Less: Appropriation to statutory surplus
reserves
Appropriation to discretionary surplus
reserves
Appropriation to general reserves
Ordinary share dividend
Ordinary shares dividend transfer to share
capital
Retained earnings at the end of year 5,808,269,612.56 --
110
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
41. Operating revenue and cost
(1) Operating revenue and cost
Unit: Yuan
Item Current period Prior period
Operating revenue 13,573,434,667.31 13,939,874,001.11
Other operating revenue 470,795,886.53 597,241,838.79
Operating cost 11,823,250,311.18 12,501,134,402.12
(2) Top five customers of operating revenue are as follows:
Unit: Yuan
Customer Operating revenue Proportion of total operating revenue (%)
Southwest Industries Corporation 695,836,302.51 4.95%
Chengdu Wanyou Economic Technological
456,815,058.31 3.25%
Development Co., Ltd
Wuhan Changyuan Automobile Sales and
332,942,372.75 2.37%
Services Co., Ltd.
Chengdu Wanyou Economic Technological
319,881,902.08 2.28%
Development Co., Ltd
Guangdong automobile sales Co., Ltd. 253,570,312.79 1.81%
Total 2,059,045,948.44 14.66%
42. Business tax and surcharges
Unit: Yuan
Item Current Period Prior Period
Consumption tax 4,423,689.55 2,122,961.34
Business tax 283,860,037.68 232,776,464.55
City maintenance and construction tax 32,132,896.76 26,742,631.84
Education additional expenses 16,455,688.69 13,525,136.05
Resource tax
Others 299,860.77 0.00
Total 337,172,173.45 275,167,193.78
43. Profit and loss from fair value changes
Unit: Yuan
Resource of fair value changes Current Period Prior Period
111
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Financial assets held for trading -1,525,799.63 0.00
Total -1,525,799.63 0.00
44. Investment income
(1) Details of investment income
Unit: Yuan
Item Current Period Prior Period
Long-term equity investment income under cost method 6,000,000.00
Long-term equity investment income under equity method 730,922,472.73 1,034,648,180.63
Long-term equity investment income through disposal
Investment income on financial assets held-for-trading at fair
value through holding
Investment income on financial assets held-to-maturity at fair
value through holding
Investment income on financial assets available-for-sale at
fair value through holding
Investment income on financial assets held-for-trading
through disposal
Investment income on financial assets held-to-maturity at fair
value through maturity
Investment income on financial assets available-for-sale
through sale
Others 1,819,000.00
Total 732,741,472.73 1,040,648,180.63
(2) Long-term equity investment income under cost method
Unit: Yuan
Investee Current Period Prior Period
China South Industry Group Finance Co., Ltd 6,000,000.00
Total 6,000,000.00
(3) Long-term equity investment income under equity method
Unit: Yuan
Investee Current Period Prior Period
Changan Ford Mazda Automobile Co., Ltd 542,930,665.30 806,626,269.62
Chongqing Changan Suzuki Automobile Co., Ltd 51,674,154.43 37,703,351.31
112
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Jiangling Holding Co., Ltd 131,214,820.76 180,715,161.29
Changan Ford Mazda Engine Co., Ltd 6,056,425.12 9,292,810.27
Chongqing HelpGo Information Technology Co., Ltd -1,460,080.64 -234,166.99
Chongqing Xiyi Automobile Linkage Rod Co., Ltd 506,487.76 544,755.13
Total 730,922,472.73 1,034,648,180.63
45. Impairment of assets
Unit: Yuan
Item Current Period Prior Period
I. Bad debt provision 2,079,702.53 2,221,590.17
II. Provision for obsolete inventory -11,070,300.03 3,724,888.68
III. Provision for the impairment of financial asset available
for sale
IV. Provision for the impairment of held-to-maturity
instrument
V. Provision for the impairment of long-term equity
investment
VI. Provision for the impairment of investment property
VII. Provision for the impairment of fixed assets
VIII. Provision for the impairment of construction materials
IX. Provision for the impairment of construction in progress
X. Provision for the impairment of biological assets
XI. Provision for the impairment of oil and gas assets
XII. Provision for the impairment of intangible assets
XIII. Provision for the impairment of goodwil
XIV. Others
Total -8,990,597.50 5,946,478.85
46. Non-operating income
(1) Details of non-operating income
Unit: Yuan
Item Current Period Prior Period
Gain on the disposal of non-current assets 656,029.56 17,108,789.82
Including: Gain on the disposal of fixed assets 656,029.56 17,108,789.82
Gain on the disposal of intangible assets 0.00
Gain on debt restructuring 0.00
113
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Gain on non-monetary assets exchange 0.00
Received donation 0.00
Government grants 104,918,471.02 92,228,137.66
Others 20,566,997.00 10,024,058.16
Total 126,141,497.58 119,360,985.64
(2) Detail of government grants
Unit: Yuan
Item Current Period Prior Period
Drawback of import tariff to the Company 99,994.25 39,404,000.00
Government grants for technology research expenses to the Company 100,000,000.00 44,887,500.00
Subsidy for technology innovation and industrialization 3,514,976.77 3,536,408.34
Others 1,303,500.00 4,400,229.32
Total 104,918,471.02 92,228,137.66
47. Non-operating expenses
Unit: Yuan
Item Current Period Prior Period
Loss on the disposal of non-current assets 1,795,479.91 1,658,981.64
Including: Loss on the disposal of fixed assets 1,795,479.91 1,658,981.64
Loss on the disposal of intangible assets 0 0
Loss on debt restructuring 0 0
Loss on non-monetary assets exchange 0 0
Donation 337,900.00 629,340.00
Others 1,874,617.54 11,586,752.74
Total 4,007,997.45 13,875,074.38
48. Income tax expense
Unit: Yuan
Item Current Period Prior Period
Current income tax expense 11,401,384.22 140,585,889.05
Deferred income tax expense -54,262,394.11 -55,825,328.12
Total -42,861,009.89 84,760,560.93
49. Earnings per share
The basic EPS is calculated by dividing the net profit of the current period attributable to the ordinary
114
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
shareholders of the Company by the weighted average number of outstanding ordinary shares.
The Company has no dilutive potential common stock
50. Other comprehensive income
Unit: Yuan
Item Current Period Prior Period
1. Profits (loss) generated from available for sale financial assets 44,526,740.00 14,555,000.00
Less: Available for sale financial assets arising from income tax effect 5,398,435.00 2,183,250.00
Net gain or loss previously recognised in other comprehensive income
- -
transferred to profit or loss during the period
Subtotal 39,128,305.00 12,371,750.00
2. Profits (loss) generated from Share of the changes in owners‘ equity
of an associate
Less: Share of the changes in owners‘ equity of an associate arising
from income tax effect
Net gain (loss) previously recognised in other comprehensive income
transferred to profit or loss during the period
Subtotal
3. Profits (loss) generated from cash flow hedging instrument
Less: cash flow hedging instrument arising from income tax effect
Net gain (loss) previously recognised in other comprehensive income
transferred to profit or loss during the period
Adjustment for transform to hedging:
Subtotal
4. Foreign currency reserve
Less: Net gain (loss) generated from disposal of off-shore business
Subtotal
5.Others
Less: Others arising from income tax effect
Net gain or loss previously recognised in other comprehensive income
transferred to profit or loss during the period
Subtotal
Total 39,128,305.00 12,371,750.00
51. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: Yuan
115
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Supplementary information Current Period Prior Period
1．Cash flows from operating activities calculated by
-- --
adjusting the net profit:
Net profit 550,767,101.13 1,034,740,123.61
Add: impairment provision for assets -8,990,597.50 5,946,478.85
Depreciation of fixed assets, oil and gas assets, biological
334,522,812.77 247,133,395.59
assets
Amortization of intangible assets 121,115,500.29 78,762,459.21
Amortization of long-term deferred expense 1,451,840.96 1,840,447.20
Disposal loss(gain) of fixed assets, intangible assets and
2,097,141.92 -8,409,365.28
others long-term assets
Loss (gain) on retirement of fixed assets 1,444.99 0.00
Loss(gain) from fair value changes 1,525,799.63 0.00
Financial expense(income) -8,913,423.40 -84,132,888.64
Investment loss(gain) -732,741,472.73 -1,040,648,180.63
Decrease(increase) in deferred tax assets -22,475,585.79 -38,016,659.94
Increase(decrease) in deferred tax liabilities 2,183,250.00
Decrease(increase) in inventory 520,504,971.38 -1,690,700,132.33
Decrease(increase) in operating receivables -1,223,166,032.73 2,459,112,765.03
Increase(decrease) in operating payables 1,242,647,344.43 1,705,667,076.59
Others -102,890,461.29 -295,073,242.72
Net cash flows from operating activities 675,456,384.06 2,378,405,526.54
2．Significant investment activities and financing activities
-- --
not dealt with cash:
Liabilities transfer to capital
Convertible bonds maturity in 1 year
Fixed assets acquired through finance lease
3．Movement of cash and cash equivalents: -- --
Ending balance of cash 4,239,054,165.83 8,219,955,550.23
Less: beginning balance of cash 4,871,199,806.77 4,391,990,049.72
Add: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Increase in cash and cash equivalents -632,145,640.94 3,827,965,500.51
(2) Cash and cash equivalents
Unit: Yuan
116
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Item Ending Balance Opening Balance
I. Cash 4,239,054,165.83 4,871,199,806.77
Including: Cash on hand 21,745.39 70,542.82
Bank deposits that can be readily used 3,865,645,877.05 4,238,640,169.67
Other monetary assets that can be readily used 373,386,543.39 632,489,094.28
Deposits with the Central Bank can be readily used
Placements of deposits with other financial institutions
Funds loaned from other financial institutions
II. Cash equivalent
Including: bond investment matured within 3 months
III. Ending balance of cash and cash equivalents 4,239,054,165.83 4,871,199,806.77
117
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(VIII)Related party relationships and transactions
1. Parent company
Unit: Yuan
Place of Legal Proportion of Voting
Relationsh Corporate Ultimate holding Organization
Parent registratio representa Nature of the business Registered capital Currency shares in the percentage in the
ip type company code
n tive Company (%) Company (%)
Design, develop, manufacture
and sale of automobiles,
engine, motorbike and
components; sale of optical
product, electronical product,
China vision equipment, information
Changan Holding Company and communication China South
Xu
Automobil shareholde limited by Beijing equipment; technology 45,823,737,000,000.00CNY 44.93% 44.93% Industries Group 710933394-8
Liuping
e Group r shares development, transfer, Corporation
Co ,Ltd consulting, training and
service relating to above
business; import and export;
consulting on assets
combination and assets
restructuring
2. Subsidiaries
Please refer to Notes (VI) consolidation scope for the information of the subsidiaries.
118
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
3. Joint ventures and associates
Please refer to Notes (VII).11 long-term investments in joint ventures and associates for the information of joint ventures and associates.
119
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
4. Other related parties
Other related parties Relationship Organization code
China South Industries Group Corporation Ultimate holding company 71092492-9
China Changan Automobile Co., Ltd - Jian’an Automobile
Branch of parent 79184573-8
Bridge Branch
China Changan Automobile Co., Ltd – Chongqing Tsingshan
Branch of parent 79350521-9
Transmission Branch
Controlled by the same parent
South Tianhe Chassis System Co., Ltd 77487491-6
company
Controlled by the same parent
South Inter Air-conditioner Co, .Ltd 62192592-X
company
Controlled by the same parent
Chongqing Changfeng Jiquan Machinery Co., Ltd 74745528-1
company
Controlled by the same parent
Chongqing Automobile Air-conditioner Co., Ltd 20304827-4
company
Controlled by the same parent
Hafei Automobile Co., Ltd. 60716197-8
company
Controlled by the same parent
Dongan Auto Engine Co., Ltd. 71201745-X
company
Controlled by the same parent
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 71201711-8
company
Controlled by the same parent
Jiangxi Changhe Automobile Co., Ltd 67799358-5
company
Controlled by the same parent
Hefei Changhe Automobile Co., Ltd 66143118-2
company
Controlled by the same parent
Chongqing Anfu Automobile Co., Ltd 73657088-2
company
Controlled by the same parent
Chengdu Ningxing Automobile Spring Co., Ltd. 72343715-0
company
Controlled by the same parent
China Changan Automobile Group Tianjin Sales Co., Ltd 56610492-5
company
China Changan Automobile Group Chongqing Guangda Sales Controlled by the same parent
55204911-X
Co., Ltd. company
Controlled by the same parent
Chengdu Huachuan Electric Equipment Co., Ltd 73021809-5
company
Chengdu Ningjiang Zhaohe Automobile Components Co., Controlled by the same parent
20224398-3
Ltd company
120
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Controlled by the same ultimate
Sichuan Ningjiang Shanchuan Machinery Co, Ltd 78914008-5
holding company
Controlled by the same ultimate
Chongqing Changan Construction Co., Ltd 20281750-9
holding company
Controlled by the same ultimate
Chongqing Changan Min Sheng Logistics Co., Ltd. 70942619-9
holding company
Controlled by the same ultimate
Sichuan Hongguang Machinery and Electrics Co., Ltd 62170388-4
holding company
Controlled by the same ultimate
Beijing Beiji Mechanical and Electrical Industry Co., Ltd 10110292-X
holding company
Controlled by the same ultimate
China South Industry Group Finance Co., Ltd 71093365-7
holding company
Controlled by the same ultimate
Changan Industries Group Co., Ltd 20281485-4
holding company
Controlled by the same ultimate
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd 72807819-3
holding company
Controlled by the same ultimate
Chengdu Lingchuan Special Industry Co., Ltd 66302209-1
holding company
Chengdu Wanyou Economic Technological Development Controlled by the same ultimate
20196934-4
Co., Ltd holding company
Controlled by the same ultimate
Chengdu Wanyou Filter Co., Ltd 62170342-X
holding company
Controlled by the same ultimate
Hubei Xiaogan Huazhong Automobile Light Co., Ltd 71466819-2
holding company
Controlled by the same ultimate
Southwest Industries Corporation 20281049-0
holding company
Controlled by the same ultimate
Yunnan Xiyi Industries Co., Ltd 21652160-6
holding company
Controlled by the same ultimate
Chongqing Changrong Machinery Co., Ltd 70946451-5
holding company
Controlled by the same ultimate
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd 70943915-X
holding company
Controlled by the same ultimate
Chongqing Dajiang Yuqiang Plastic Co., Ltd 62190601-6
holding company
Controlled by the same ultimate
Chongqing Jianshe Automobile Air-conditioner Co., Ltd 75925214-X
holding company
Controlled by the same ultimate
Chongqing Qingshan Sales Co., Ltd 20314556-8
holding company
121
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Controlled by the same ultimate
Chongqing Shangfang Automobile Fittings Co., Ltd 75008974500
holding company
Controlled by the same ultimate
Chongqing Wanbing Material Co., Ltd 75005068-0
holding company
Chengdu Wanyou Economic Technological Development Controlled by the same ultimate
20286206-3
Co., Ltd holding company
Controlled by the same ultimate
Chongqing Wanyou Auto Sales and Service Corporation 20280671-5
holding company
Controlled by the same ultimate
Chongqing Yihong Engineering Plastic Products Co., Ltd 62190975-1
holding company
Controlled by the same ultimate
Guangxi Wanyou Auto Sales and Service Co., Ltd 75978537-6
holding company
Controlled by the same ultimate
Guizhou Wanyou Auto Sales and Service Co., Ltd 70960979-6
holding company
Controlled by the same ultimate
Yunnan Wanyou Auto Sales and Service Co., Ltd 70970600-0
holding company
Controlled by the same ultimate
Nanning Wanyou Auto Sales and Service Co., Ltd 55940430-5
holding company
Controlled by the same ultimate
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd 55357636-8
holding company
Longchang Shanchuan Shock-absorbing Works Industries Controlled by the same ultimate
68994618-8
Co., Ltd holding company
5. Transactions between the Group and its related parties
(1) Purchases of goods and services from related parties
Unit: Yuan
Procedure for Current Period Prior Period
making a price
Proportion Proportion
Nature of the and decision of
Related parties of similar of similar
transaction transactions Amount Amount
transaction transactio
between
s (%) ns (%)
related parties
Changan Ford Mazda Automobile Co., Purchase of Based on
Ltd spare parts agreement 58,107,062.92 0.49% 143,708,419.31 1.15%
Chongqing Changan Suzuki Automobile Purchase of Based on
Co., Ltd spare parts agreement 2,111,219.18 0.02% 3,424,770.26 0.03%
Chongqing Changan Kuayue Purchase of Based on
Automobile Co., Ltd spare parts agreement 24,828,595.27 0.21% 17,425,321.66 0.14%
122
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chongqing Xiyi Automobile Linkage Purchase of Based on
Rod Co., Ltd spare parts agreement 21,295,497.74 0.18% 25,363,825.97 0.20%
Purchase of Based on
Changan Industries Group Co., Ltd
spare parts agreement 29,229,904.83 0.25% 36,851,521.97 0.29%
Chongqing Changan Min Sheng Transportation Based on
Logistics Co., Ltd. fee agreement 572,708,365.49 4.85% 602,201,113.95 4.82%
Chongqing Changan Construction Co., Based on
Accept service
Ltd agreement 254,875.00 0.00% 698,639.00 0.01%
Sichuan Hongguang Machinery and Purchase of Based on
Electrics Co., Ltd spare parts agreement 46,116,893.50 0.39% 57,331,466.49 0.46%
China Changan Automobile Co., Ltd –
Purchase of Based on
Chongqing Tsingshan Transmission 469,224,522.08 3.98% 695,373,144.19 5.56%
spare parts agreement
Branch
China Changan Automobile Co., Ltd - Purchase of Based on
360,206,096.75 3.05% 390,104,134.59 3.12%
Jian’an Automobile Bridge Branch spare parts agreement
Purchase of Based on
South Inter Air-conditioner Co, .Ltd 25,601,787.06 0.22% 13,575,044.44 0.11%
spare parts agreement
Sichuan Ningjiang Shanchuan Purchase of Based on
43,627,451.85 0.37% 71,990,053.85 0.58%
Machinery Co, Ltd spare parts agreement
Longchang Shanchuan Shock-absorbing Purchase of Based on
49,904,472.90 0.42% 51,322,319.21 0.41%
Vehicles Parts Co., Ltd spare parts agreement
Chengdu Huachuan Electric Equipment Purchase of Based on
113,554,256.07 0.96% 161,631,167.99 1.29%
Co., Ltd spare parts agreement
Chongqing Changfeng Jiquan Purchase of Based on
9,393,628.24 0.08% 9,323,177.37 0.07%
Machinery Co., Ltd spare parts agreement
Chongqing Automobile Air-conditioner Purchase of Based on
140,370.31 0.00% 16,533,671.66 0.13%
Co., Ltd spare parts agreement
Purchase of Based on
South Tianhe Chassis System Co., Ltd 190,944,451.90 1.62% 212,157,462.35 1.70%
spare parts agreement
Purchase of cars Based on
Hafei Automobile Co., Ltd. 28,792,155.90 0.24% 509,872,735.00 4.08%
and spare parts agreement
Chengdu Ningjiang Zhaohe Automobile Purchase of Based on
Components Co., Ltd spare parts agreement 348,203.39 0.00% 0.00%
Harbin Dongan Automotive Engine Purchase of Based on
Manufacturing Co., Ltd. spare parts agreement 97,600,181.15 0.83% 0.00%
Hubei Xiaogan Huazhong Automobile Purchase of Based on
Light Co., Ltd spare parts agreement 32,051,820.14 0.27% 48,687,909.55 0.39%
Chongqing Changrong Machinery Co., Purchase of Based on
Ltd spare parts agreement 76,006,980.04 0.64% 102,062,693.86 0.82%
123
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chengdu Lingchuan Special Industry Purchase of Based on
Co., Ltd spare parts agreement 56,549,260.54 0.48% 155,747,632.09 1.25%
Chengdu Lingchuan Vehicle Oil Tank Purchase of Based on
Co., Ltd spare parts agreement 39,261,139.96 0.33% 41,927,948.39 0.34%
Purchase of Based on
Yunnan Xiyi Industries Co., Ltd
spare parts agreement 14,384,704.34 0.12% 22,102,417.56 0.18%
Chongqing Shangfang Automobile Purchase of Based on
Fittings Co., Ltd spare parts agreement 60,815,483.32 0.52% 66,501,954.62 0.53%
Chongqing Dajiang Xinda Vehicles Purchase of Based on
Shares Co., Ltd spare parts agreement 5,667,942.59 0.05% 48,112,821.92 0.38%
Chongqing Dajiang Yuqiang Plastic Co., Purchase of Based on
Ltd spare parts agreement 65,476.00 0.00% 70,214.32 0.00%
Chongqing Jianshe Automobile Purchase of Based on
Air-conditioner Co., Ltd spare parts agreement 48,603,434.49 0.41% 72,235,507.50 0.58%
Chengdu Wanyou Economic Purchase of Based on
Technological Development Co., Ltd spare parts agreement 29,434,105.52 0.25% 93,233,829.47 0.75%
Purchase of Based on
Chengdu Wanyou Filter Co., Ltd
spare parts agreement 17,514,684.98 0.15% 17,563,659.64 0.14%
Chongqing Yihong Engineering Plastic Purchase of Based on
Products Co., Ltd spare parts agreement 4,334,393.97 0.04% 5,563,393.96 0.04%
Chengdu Ningxing Automobile Spring Purchase of Based on
Co., Ltd. spare parts agreement 2,939,455.76 0.02% 0.00%
Beijing Beiji Mechanical and Electrical Purchase of Based on
Industry Co., Ltd spare parts agreement 100,368.72 0.00% 1,543,654.98 0.01%
Purchase of Based on
Chongqing Qingshan Sales Co., Ltd
spare parts agreement 7,349,178.64 0.06% 9,489,500.66 0.08%
Total 2,539,068,420.54 21.50% 3,703,731,127.78 29.64%
(2) Sales of goods and services to related parties
Unit: Yuan
Procedure for Current Period Prior Period
making a price
Proportion Proportion
Nature of the and decision of
Related parties of similar of similar
transaction transactions Amount Amount
transaction transaction
between
s (%) s (%)
related parties
Changan Ford Mazda Automobile Co., Sale of spare Based on
82,100,711.34 0.58% 244,122,005.56 1.68%
Ltd parts agreement
124
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Chongqing Changan Suzuki Automobile Sale of spare Based on
256.41 0.00% 386,780.00 0.00%
Co., Ltd parts agreement
Chongqing Changan Kuayue Sale of spare Based on
1,314,188.03 0.01% 29,329,666.05 0.20%
Automobile Co., Ltd parts agreement
Sale of spare Based on
Changan Industries Group Co., Ltd 176,131.72 0.00% 25,248.12 0.00%
parts agreement
Chongqing Changan Min Sheng Based on
Sale of cars 70,612.56 0.00% 132,105.62 0.00%
Logistics Co., Ltd. agreement
Sichuan Hongguang Machinery and Based on
Maintenance 26,768,435.64 0.19% 39,893,856.03 0.27%
Electrics Co., Ltd agreement
China Changan Automobile Co., Ltd –
Based on
Chongqing Tsingshan Transmission Maintenance 1,671,766.91 0.01% 1,451,379.12 0.01%
agreement
Branch
China Changan Automobile Co., Ltd - Based on
Maintenance 1,686,446.20 0.01% 1,099,476.86 0.01%
Jian’an Automobile Bridge Branch agreement
Sale of spare Based on
South Inter Air-conditioner Co, .Ltd 311,946.50 0.00% 43,071.47 0.00%
parts agreement
Sichuan Ningjiang Shanchuan Based on
Maintenance 1,421,973.65 0.01% 7,004,407.58 0.05%
Machinery Co, Ltd agreement
Longchang Shanchuan Shock-absorbing Based on
Maintenance 616,668.46 0.00% 813,935.48 0.01%
Vehicles Parts Co., Ltd agreement
Chongqing Automobile Air-conditioner Based on
Maintenance 0.00% 460,337.19 0.00%
Co., Ltd agreement
Chongqing Xiyi Automobile Linkage Based on
Maintenance 0.00% 1,988.89 0.00%
Rod Co., Ltd agreement
Based on
Chengdu Wanyou Filter Co., Ltd Maintenance 0.00% 5,674.62 0.00%
agreement
Sale of spare Based on
Jiangling Holding Co., Ltd 2,444,600.55 0.01% 7,379,365.23 0.05%
parts, service agreement
Chongqing Yihong Engineering Plastic Based on
Maintenance 0.00% 5,282.05 0.00%
Products Co., Ltd agreement
Chengdu Huachuan Electric Equipment Based on
Maintenance 2,303,833.47 0.02% 2,048,456.74 0.01%
Co., Ltd agreement
Chongqing Changfeng Jiquan Based on
Maintenance 324,866.89 0.00% 26,559.17 0.00%
Machinery Co., Ltd agreement
Based on
South Tianhe Chassis System Co., Ltd Maintenance 2,091,955.81 0.01% 2,001,634.37 0.01%
agreement
Sale of spare Based on
Hafei Automobile Co., Ltd. 14,049,512.82 0.10% 76,652,471.33 0.53%
parts, service agreement
125
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Based on
Hefei Changhe Automobile Co., Ltd Service 1,527,500.00 0.01% 0.00%
agreement
Sale of cars, Based on
Chongqing Anfu Automobile Co., Ltd 974,358.97 0.01% 3,274,062.45 0.02%
spare parts agreement
China Changan Automobile Group Sale of cars, Based on
45,734,411.98 0.33% 118,319,871.91 0.81%
Chongqing Guangda Sales Co., Ltd. spare parts agreement
China Changan Automobile Group Sale of cars, Based on
12,237,635.04 0.09% 0.00%
Tianjin Sales Co., Ltd spare parts agreement
Hubei Xiaogan Huazhong Automobile Based on
Maintenance 594,962.69 0.00% 115,686.58 0.00%
Light Co., Ltd agreement
Chongqing Changrong Machinery Co., Based on
Maintenance 1,702,018.85 0.01% 1,094,583.49 0.01%
Ltd agreement
Chengdu Lingchuan Special Industry Based on
Maintenance 30,174,291.55 0.21% 83,907,578.78 0.58%
Co., Ltd agreement
Chengdu Lingchuan Vehicle Oil Tank Based on
Maintenance 28,602,728.76 0.20% 37,993,835.68 0.26%
Co., Ltd agreement
Based on
Yunnan Xiyi Industries Co., Ltd Maintenance 57,391.45 0.00% 0.00%
agreement
Chongqing Shangfang Automobile Based on
Maintenance 6,067,720.44 0.04% 331,119.03 0.00%
Fittings Co., Ltd agreement
Chongqing Jianshe Automobile Based on
Maintenance 41,771.79 0.00% 953,857.68 0.01%
Air-conditioner Co., Ltd agreement
Sale of cars, Based on
Southwest Industries Corporation 698,307,568.89 4.97% 583,163,302.76 4.01%
spare parts agreement
Chongqing Wanyou Economic Sale of cars, Based on
371,152,976.69 2.64% 254,231,554.60 1.75%
Development Co., Ltd spare parts agreement
Guangxi Wanyou Auto Sales and Service Sale of cars, Based on
56,898,808.93 0.41% 26,236,496.14 0.18%
Co., Ltd spare parts agreement
Nanning Wanyou Auto Sales and Service Sale of cars, Based on
21,437,164.10 0.15% 18,614,522.71 0.13%
Co., Ltd spare parts agreement
Chengdu Wanyou Economic Sale of cars, Based on
491,656,396.80 3.50% 470,554,908.71 3.24%
Technological Development Co., Ltd spare parts agreement
Chengdu Wanyou Xiangyu Auto Sales Sale of cars, Based on
202,947,172.65 1.45% 167,988,476.61 1.16%
and Service Co., Ltd spare parts agreement
Yunnan Wanyou Auto Sales and Service Sale of cars, Based on
190,672,115.91 1.36% 241,174,006.59 1.66%
Co., Ltd spare parts agreement
Guizhou Wanyou Auto Sales and Service Sale of cars, Based on
255,736,494.96 1.82% 301,670,980.95 2.08%
Co., Ltd spare parts agreement
126
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Foshan Wanyou Auto Sales and Service Sale of cars, Based on
0.00% 120,664.68 0.00%
Co., Ltd spare parts agreement
Total: 2,553,877,397.41 18.15%2,722,629,210.83 18.73%
(3) Lease between related parties
Rental assets from related parties
Unit: Yuan
Current
Type of Status of The basis
Amount of period
Leaser Lessee leased leased Starting date Expiring date for rental
leased assets recognized
assets assets pricing
rental
Chongqing China
Changan Changan
Based on
Min Sheng Automobile Storeroom Normal 1,025,648.00 2012.01.01 2012.04.30. 829,546.08
agreement
Logistics Group
Co., Ltd. Co ,Ltd
Chongqing China
Office
Changan Changan
building Based on
Real Estate Automobile Normal 4,766,928.00 2012.01.01. 2012.12.31 2,367,114.00
and agreement
Developmen Group
garage
t Co., Ltd Co ,Ltd
127
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
(4) Other related-party transactions
Payment of integrated service charges
Related party Nature of the Current Period Prior Period
transaction
Amount Proportion of similar transactions Amount Proportion of similar transactions
(%) (%)
Payment of land rental 10.07 7,824,102.51 5.29
fees 11,765,565.90
Payment of building 13.79 16,401,668.90 11.08
Changan Industries rental fees 16,116,276.30
Group Co. Ltd. Payment of utilities 81,492,035.41 69.72 111,879,937.35 75.59
Payment of fire 1.17 5,576,032.98 3.77
fighting fees 1,370,000.00
Others 6,140,144.30 5.25 6,333,551.38 4.28
Total： 116,884,021.91 100.00 148,015,293.12 100.00
Purchase of construction materials
Current Period Prior Period
Related party Amount Proportion of similar transactions Amount Proportion of similar transactions
(%) (%)
Chongqing Changan Construction Co., Ltd 149,804,395.00 5.91 362,877,228.45 20.44
Chongqing HelpGo Information Technology 4,511,350.33 0.25
0.00
Co., Ltd
Chongqing Changan Min Sheng Logistics Co., 4,837,202.40 7,888,695.29 0.44
0.19
Ltd.
128
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Changan Industries Group Co. Ltd. 913,733.00 0.04 304,476.00 0.02
Total 155,555,330.40 6.14 375,581,750.07 21.15
Payment of expense for development and maintenance of information system
Current Period Prior Period
Related party Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Chongqing HelpGo Information Technology Co., Ltd 113,620.00 100.00
Staff expenses for technical supporting
Current Period Prior Period
Related party Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Changan Ford Mazda Automobile Co., Ltd 2,395,840.00 43.64 1,948,010.02 100.00
Chongqing Changan Suzuki Automobile Co., Ltd 2,969,565.00 54.08
Changan Industries Group Co., Ltd 125,162.08 2.28
Total 5,490,567.08 100.00 1,948,010.02 100.00
Technical royalty fee
Current Period Prior Period
Related party Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Hafei Automobile Co., Ltd. 43,649,500.00 99.93 46,600.00 31.01
129
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Jiangxi Changhe Automobile Co., Ltd 103,650.00 68.99
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 32,000.00 0.07
Total： 43,681,500.00 100.00 150,250.00 100.00
130
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
6. Amounts due from/to related parties
Amounts due from related parties
Unit: Yuan
Account Related party Ending balance Opening balance
Notes receivable Chongqing Changan Kuayue Automobile Co., Ltd 12,370,000.00
Notes receivable Changan Industries Group Co., Ltd 1,475,676.00
Notes receivable Hafei Automobile Co., Ltd. 90,000,000.00
Notes receivable Jiangxi Changhe Automobile Co., Ltd 7,700,000.00
China Changan Automobile Group Chongqing Guangda Sales
Notes receivable 11,700,000.00
Co., Ltd.
Notes receivable China Changan Automobile Group Tianjin Sales Co., Ltd 6,000,000.00
Notes receivable Southwest Industries Corporation 3,500,000.00 288,000,000.00
Notes receivable Chongqing Wanyou Economic Development Co., Ltd 279,570,000.00 207,700,000.00
Notes receivable Guangxi Wanyou Auto Sales and Service Co., Ltd 31,150,000.00 8,500,000.00
Notes receivable Nanning Wanyou Auto Sales and Service Co., Ltd 10,400,000.00
Chengdu Wanyou Economic Technological Development
Notes receivable 150,200,000.00 203,086,968.03
Co., Ltd
Notes receivable Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd 157,000,000.00 61,000,000.00
Notes receivable Yunnan Wanyou Auto Sales and Service Co., Ltd 550,300,000.00 200,353,970.00
Notes receivable Guizhou Wanyou Auto Sales and Service Co., Ltd 185,630,000.00 136,950,000.00
Notes receivable
1,454,825,676.00 1,147,760,938.03
subtotal
Accounts
Changan Ford Mazda Automobile Co., Ltd 28,279,727.29 47,247,914.76
receivable
Accounts
Changan Ford Mazda Engine Co., Ltd.- Nanjing Branch 1,156,660.06 13,279,638.01
receivable
Accounts
Chongqing Changan Suzuki Automobile Co., Ltd 3,417,945.11 23,352,773.93
receivable
Accounts
Jiangling Holding Co., Ltd 6,622,974.08 7,115,280.75
receivable
Accounts
Chongqing Changan Kuayue Automobile Co., Ltd 1,554,609.70 457,009.70
receivable
Accounts
Changan Industries Group Co., Ltd 2,782,358.51 2,578,195.20
receivable
Accounts China Changan Automobile Co., Ltd - Jian’an Automobile 10,020.75
131
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
receivable Bridge Branch
Accounts
Hafei Automobile Co., Ltd. 195,876,213.86 226,069,113.86
receivable
Accounts
Jiangxi Changhe Automobile Co., Ltd 54,383.35 8,062,860.00
receivable
Accounts
Jiangxi Changhe Suzuki Automobile Co., Ltd 15,954,383.50
receivable
Accounts
Hefei Changhe Automobile Co., Ltd 2,337,000.00 960,052.00
receivable
Accounts
Chongqing Anfu Automobile Co., Ltd 1,070,236.97 1,070,236.97
receivable
Accounts
Yunnan Xiyi Industries Co., Ltd 58,000.00
receivable
Accounts Chengdu Wanyou Economic Technological Development
59,707,458.64
receivable Co., Ltd
Accounts
Guizhou Wanyou Auto Sales and Service Co., Ltd 372.52
receivable
Accounts
receivable 302,927,588.32 346,147,831.20
subtotal:
Other receivable Chongqing Changan Min Sheng Logistics Co., Ltd. 460,452.00
Other receivable
460,452.00
subtotal:
Prepayment Chongqing Changan Suzuki Automobile Co., Ltd 641,515.41 411,641.85
Prepayment
641,515.41 411,641.85
subtotal:
Amount due to related parties
Unit: Yuan
Account Related party Ending balance Opening balance
Notes payable Chongqing Changan Kuayue Automobile Co., Ltd 29,840,000.00 18,029,597.00
Notes payable Chongqing Xiyi Automobile Linkage Rod Co., Ltd 12,270,000.00 8,420,000.00
Notes payable Chongqing Changan Min Sheng Logistics Co., Ltd. 9,620,886.27 83,984,175.42
Notes payable Chongqing Changan Construction Co., Ltd 67,309,438.00 127,811,430.55
Notes payable Sichuan Hongguang Machinery and Electrics Co., Ltd 19,690,000.00 14,110,000.00
China Changan Automobile Co., Ltd - Jian’an Automobile
Notes payable 74,828,736.35 188,110,372.07
Bridge Branch
132
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Notes payable South Inter Air-conditioner Co, .Ltd 26,253,294.69 12,392,933.33
Notes payable Sichuan Ningjiang Shanchuan Machinery Co, Ltd 20,670,000.00 26,680,000.00
Longchang Shanchuan Shock-absorbing Vehicles Parts Co.,
Notes payable 26,750,000.00 27,560,225.00
Ltd
Notes payable Chengdu Huachuan Electric Equipment Co., Ltd 31,570,000.00 56,968,999.28
Notes payable Chongqing Changfeng Jiquan Machinery Co., Ltd 1,380,000.00 3,500,000.00
Notes payable Chongqing Automobile Air-conditioner Co., Ltd 220,000.00 7,888,882.00
Notes payable South Tianhe Chassis System Co., Ltd 173,190,000.00 143,946,779.64
Chengdu Ningjiang Zhaohe Automobile Components Co.,
Notes payable 1,590,000.00 2,380,000.00
Ltd
Notes payable Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 89,920,000.00
Notes payable Hubei Xiaogan Huazhong Automobile Light Co., Ltd 23,776,438.70 29,403,181.59
Notes payable Chongqing Changrong Machinery Co., Ltd 42,784,678.29 25,708,700.19
Notes payable Chengdu Lingchuan Special Industry Co., Ltd 27,723,403.71 54,533,628.42
Notes payable Chengdu Lingchuan Vehicle Oil Tank Co., Ltd 850,000.00 3,741,906.00
Notes payable Yunnan Xiyi Industries Co., Ltd 14,570,000.00 21,030,000.00
Notes payable Chongqing Shangfang Automobile Fittings Co., Ltd 36,380,000.00 38,650,000.00
Notes payable Chongqing Dajiang Xinda Vehicles Shares Co., Ltd 3,380,000.00 22,071,440.00
Notes payable Chongqing Jianshe Automobile Air-conditioner Co., Ltd 28,170,000.00 47,153,289.00
Notes payable Chengdu Wanyou Filter Co., Ltd 10,760,000.00 11,640,262.00
Notes payable Chongqing Yihong Engineering Plastic Products Co., Ltd 2,580,000.00 5,413,781.00
Notes payable Chengdu Ningxing Automobile Spring Co., Ltd. 3,160,000.00
Notes payable
779,236,876.01 981,129,582.49
subtotal
Accounts payable Changan Ford Mazda Automobile Co., Ltd 4,330,010.98 19,360,871.82
Accounts payable Chongqing Changan Kuayue Automobile Co., Ltd 6,242,099.06 7,188,070.25
Accounts payable Chongqing Xiyi Automobile Linkage Rod Co., Ltd 3,680,117.60 3,276,385.24
Accounts payable Changan Industries Group Co., Ltd 2,754,888.71 10,678,119.63
Accounts payable Chongqing Changan Min Sheng Logistics Co., Ltd. 60,511,434.11 60,894,850.77
Accounts payable Chongqing Changan Construction Co., Ltd 45,419,555.55
Accounts payable Sichuan Hongguang Machinery and Electrics Co., Ltd 6,049,646.37 3,106,950.68
China Changan Automobile Co., Ltd – Chongqing Tsingshan
Accounts payable 12,218,566.27 6,509,537.07
Transmission Branch
China Changan Automobile Co., Ltd - Jian’an Automobile
Accounts payable 126,781,367.56 43,273,901.53
Bridge Branch
133
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Accounts payable South Inter Air-conditioner Co, .Ltd 13,375,951.22 13,626,900.59
Accounts payable Sichuan Ningjiang Shanchuan Machinery Co, Ltd 13,130,543.75 6,950,783.49
Longchang Shanchuan Shock-absorbing Vehicles Parts Co.,
Accounts payable 15,270,648.17 21,630,415.60
Ltd
Accounts payable Chengdu Huachuan Electric Equipment Co., Ltd 29,885,817.32 13,242,761.80
Accounts payable Chongqing Changfeng Jiquan Machinery Co., Ltd 2,517,569.42 224,163.26
Accounts payable Chongqing Automobile Air-conditioner Co., Ltd 205,041.51 1,407,497.49
Accounts payable South Tianhe Chassis System Co., Ltd 74,201,381.51 109,317,550.12
Accounts payable Hafei Automobile Co., Ltd. 33,388,131.74
Accounts payable Jiangxi Changhe Suzuki Automobile Co., Ltd 5,434,910.00
Chengdu Ningjiang Zhaohe Automobile Components Co.,
Accounts payable 2,305,106.38 3,655,993.14
Ltd
Accounts payable Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 20,703,717.40 4,797,604.40
Accounts payable Hubei Xiaogan Huazhong Automobile Light Co., Ltd 15,666,531.79 11,345,297.28
Accounts payable Chongqing Changrong Machinery Co., Ltd 23,927,253.65 16,126,873.09
Accounts payable Chengdu Lingchuan Special Industry Co., Ltd 23,890,036.03 28,452,815.27
Accounts payable Chengdu Lingchuan Vehicle Oil Tank Co., Ltd 7,536,354.61 7,955,301.86
Accounts payable Yunnan Xiyi Industries Co., Ltd 6,951,285.36 4,763,329.28
Accounts payable Chongqing Shangfang Automobile Fittings Co., Ltd 23,527,469.12 32,170,010.80
Accounts payable Chongqing Dajiang Xinda Vehicles Shares Co., Ltd 3,400,865.27 149,372.44
Accounts payable Chongqing Dajiang Yuqiang Plastic Co., Ltd 214,458.45 169,862.32
Accounts payable Chongqing Jianshe Automobile Air-conditioner Co., Ltd 30,240,641.94 7,696,553.29
Accounts payable Chongqing Wanyou Economic Development Co., Ltd 17,754,787.80 10,320,503.54
Accounts payable Chengdu Wanyou Filter Co., Ltd 14,602,280.35 8,489,786.57
Accounts payable Chongqing Yihong Engineering Plastic Products Co., Ltd 3,213,183.95 2,117,579.03
Accounts payable Chengdu Ningxing Automobile Spring Co., Ltd. 1,578,803.31 1,299,640.07
Accounts payable Beijing Beiji Mechanical and Electrical Industry Co., Ltd 136,287.50 157,467.56
Accounts payable Chongqing Qingshan Sales Co., Ltd 5,303,519.83
Accounts payable
605,495,798.04 511,211,214.83
subtotal
Advances from
Changan Ford Mazda Engine Co., Ltd 1,475,695.70 1,475,695.70
customers
Advances from
Jiangling Holding Co., Ltd-Lufeng Branch 426,180.75
customers
Advances from
Changan Industries Group Co., Ltd 401,425.70
customers
134
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Advances from
Chongqing Changan Min Sheng Logistics Co., Ltd. 312,188.70 290,876.84
customers
Advances from China Changan Automobile Group Chongqing Guangda Sales
330,143.99 6,227,986.50
customers Co., Ltd.
Advances from
China Changan Automobile Group Tianjin Sales Co., Ltd 134,729.00 123,062.00
customers
Advances from
Southwest Industries Corporation 54,219,404.10 17,462,486.31
customers
Advances from
Chongqing Wanyou Economic Development Co., Ltd 15,856,280.35 13,269,752.74
customers
Advances from
Guangxi Wanyou Auto Sales and Service Co., Ltd 769,408.50 1,809,544.42
customers
Advances from
Nanning Wanyou Auto Sales and Service Co., Ltd 764,238.98 413,470.98
customers
Advances from Chengdu Wanyou Economic Technological Development
1,553,441.91 110,587,256.09
customers Co., Ltd
Advances from
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd 1,746,015.07 2,194,207.07
customers
Advances from
Yunnan Wanyou Auto Sales and Service Co., Ltd 565,187.92 12,255,509.17
customers
Advances from
Guizhou Wanyou Auto Sales and Service Co., Ltd 17,589,481.06 17,754,797.97
customers
Advances from
customers 95,742,396.03 184,266,071.49
subtotal
Other payable Chongqing Changan Kuayue Automobile Co., Ltd 11,316,912.58
Other payable Changan Industries Group Co., Ltd 169,105.00 70,697,197.25
Other payable Chongqing Changan Min Sheng Logistics Co., Ltd. 271,488,945.92 189,351,358.72
Other payable Chongqing Changan Construction Co., Ltd 72,490,876.45 18,044,973.45
China Changan Automobile Co., Ltd – Chongqing Tsingshan
Other payable 494,269.85
Transmission Branch
Other payable Hafei Automobile Co., Ltd. 1,274,233.00 27,161,478.07
Other payable Jiangxi Changhe Automobile Co., Ltd 1,006,000.00
China Changan Automobile Group Chongqing Guangda Sales
Other payable 47,862.37
Co., Ltd.
Other payable China Changan Automobile Group Tianjin Sales Co., Ltd 10,610.00
Other payable Chongqing Shangfang Automobile Fittings Co., Ltd 51,854.20
Other payable Chongqing Wanyou Economic Development Co., Ltd 3,275,538.05
135
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Other payable Guangxi Wanyou Auto Sales and Service Co., Ltd 56,798.52 177,856.43
Other payable Nanning Wanyou Auto Sales and Service Co., Ltd 120,991.96
Chengdu Wanyou Economic Technological Development
Other payable 1,602,227.24
Co., Ltd
Other payable Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd 1,105,344.87
Other payable Chengdu Wanyou Filter Co., Ltd 120,000.00
Other payable Yunnan Wanyou Auto Sales and Service Co., Ltd 429,767.21 2,634,599.27
Other payable Guizhou Wanyou Auto Sales and Service Co., Ltd 1,123,417.66
Other payable Chongqing HelpGo Information Technology Co., Ltd 10,388,323.08
Other payable
345,909,726.10 338,730,815.05
subtotal
Cash deposited in related parties
Unit: Yuan
Ending Balance Opening Balance
Proportion of similar Proportion of similar transactions
Related party Amount Amount
transactions (%) (%)
China South Industry
Group Finance Co., 1,331,512,029.13 31.41% 888,243,770.21 18.23%
Ltd
Short-term loans
Unit: Yuan
Ending Balance Opening Balance
Proportion of similar Proportion of similar transactions
Related party Amount Amount
transactions (%) (%)
China South Industry
Group Finance Co., 80,000,000.00 8.19%
Ltd
(IX) Notes to the Company’s financial statements
1 Accounts receivable
(1) Accounts receivable
Unit: Yuan
Ending Balance Opening Balance
Item
Balance Provision Balance Provision
136
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed
individually for provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable analyzed for
113,728,257.25 14.5% 39,501,602.09 34.73% 71,222,391.43 9.52% 37,794,345.43 53.07%
provision according to
aging analysis
Group 2. Accounts
85.45
receivable from related 669,963,602.04 0.00 0% 676,534,276.23 90.43%
%
parties
Group subtotal 99.95
783,691,859.29 39,501,602.09 5.04% 747,756,667.66 99.95% 37,794,345.43 5.05%
%
individually insignificant
items but analyzed 379,654.53 0.05% 379,654.53 100% 379,654.53 0.05% 379,654.53 100%
individually for provision
Total 784,071,513.82 -- 39,881,256.62 -- 748,136,322.19 -- 38,173,999.96 --
Individually significant items and analyzed individually for provision
□Applicable √ Not applicable
Within groups, accounts receivable analyzed for provision according to aging analysis：
√Applicable □ Not applicable
Unit: Yuan
Ending Balance Opening Balance
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Including: -- -- -- -- -- --
0 – 6 months 44,139,675.44 38.81% 0.00 9,495,549.04 13.33% 0.00
6 – 12 months 11,216,061.80 9.86% 560,803.09 3,303,077.20 4.64% 165,153.86
Within 1 year subtotal: 55,355,737.24 48.67% 560,803.09 12,798,626.24 17.97% 165,153.86
1 to 2 years 18,033,253.01 15.86% 1,803,325.30 20,127,224.21 28.26% 2,012,722.42
2 to 3 years 3,229,600.56 2.84% 968,880.17 2,069,759.30 2.91% 620,927.79
Over 3 years 37,109,666.44 32.63% 36,168,593.53 36,226,781.68 50.86% 34,995,541.36
3 to 4 years 1,179,343.03 1.04% 589,671.52 2,436,062.64 3.42% 1,218,031.32
4 to 5years 1,757,006.97 1.54% 1,405,605.58 66,045.00 0.09% 52,836.00
137
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Over 5 years 34,173,316.44 30.05% 34,173,316.43 33,724,674.04 47.35% 33,724,674.04
Total 113,728,257.25 -- 39,501,602.09 71,222,391.43 -- 37,794,345.43
Within Groups, other receivables analyzed for provision according to proportion of balance:
□Applicable √ Not applicable
Within Groups, accounts receivable analyzed for provision with other methods:
√Applicable □ Not applicable
Unit: Yuan
Group Balance Provision
Provision for accounts receivable from
669,963,602.04
related parities
Total 669,963,602.04 0.00
Individually insignificant items but analyzed individually for provision:
√Applicable □ Not applicable
Unit: Yuan
Details of accounts Provision Reason for provision
Balance Provision
receivable Percentage
Full provision for small
Trade receivable 379,654.53 379,654.53 100% amount receivables which have
long aging
Total 379,654.53 379,654.53 100% --
(2) Account receivable due from shareholders that hold 5% or more of the Company’s voting shares
□Applicable √ Not applicable
(3) Top five debtors of accounts receivable are as follows:
Unit: Yuan
Proportion of total accounts
Debtors Relationship with the Group Amount
receivable (%)
Changan Ford Mazda Automobile Co., Ltd Joint venture 28,279,727.29 3.61%
Changan Ford Mazda Automobile Co., Ltd –
Joint venture 1,156,660.06 0.15%
Nanjing Branch
Chongqing Changan Suzuki Automobile Co., Ltd Joint venture 3,417,945.11 0.41%
Jiangling Holding Co., Ltd Joint venture 6,622,974.08 0.84%
Chongqing Changan Kuayue Automobile Co., Ltd Associate 1,554,609.70 0.20%
138
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Controlled by the same
Changan Industries Group Co., Ltd 2,782,358.51 0.35%
ultimate holding company
China Changan Automobile Co., Ltd - Jian’an Controlled by the same
10,020.75 0.00%
Automobile Bridge Branch parent company
Controlled by the same
Hafei Automobile Co., Ltd. 195,876,213.86 24.97%
parent company
Controlled by the same
Jiangxi Changhe Automobile Co., Ltd 54,383.35 0.01%
parent company
Controlled by the same
Hefei Changhe Automobile Co., Ltd 2,337,000.00 0.31%
parent company
Controlled by the same
Chongqing Anfu Automobile Co., Ltd 1,070,236.97 0.14%
parent company
Controlled by the same
Yunnan Xiyi Industries Co., Ltd 58,000.00 0.01%
ultimate holding company
Chengdu Wanyou Economic Technological Controlled by the same
37,933,460.41 4.84%
Development Co., Ltd ultimate holding company
Total: -- 281,153,590.09 35.86%
2 Other receivable
(1) Other receivable
Unit: Yuan
Ending Balance Opening Balance
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
41.24 28.54
items and analyzed 125,475,912.92 0% 45,084,000.00
% %
individually for provision
Other receivables analyzed as groups for provision
Group 1. Other receivables
18.49 25.45
analyzed for provision 17,035,110.31 5.6% 3,150,629.54 40,188,514.02 2,778,183.67 6.91%
% %
according to aging analysis
Group subtotal 18.49 25.45
17,035,110.31 5.6% 3,150,629.54 40,188,514.02 2,778,183.67 6.91%
% %
Individually insignificant
53.16 46.01
items but analyzed 161,727,090.08 72,672,619.48
% %
individually for provision
Total 304,238,113.31 -- 3,150,629.54 -- 157,945,133.50 -- 2,778,183.67 --
139
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Individually significant items and analyzed individually for provision:
□Applicable √ Not applicable
Within Groups, other receivables analyzed for provision according to aging analysis:
√Applicable □ Not applicable
Unit: Yuan
Ending Balance Opening Balance
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Including: -- -- -- -- -- --
Within 6 months 0.00 0% 0.00 32,799,068.71 81.62% 0.00
6 – 12 months 10,562,798.00 62.01% 528,139.90 2,962,061.00 7.37% 148,103.05
Within 1 year
10,562,798.00 62.01% 528,139.90 35,761,129.71 88.99% 148,103.05
subtotal
1 to 2 years 3,725,176.06 21.87% 372,517.61 1,699,962.53 4.23% 169,996.25
2 to 3 years 710,234.60 4.17% 213,070.38 381,910.60 0.94% 114,573.19
Over 3 years 2,036,901.65 11.96% 2,036,901.65 2,345,511.18 5.84% 2,345,511.18
3 to 4 years 0%
4 to 5years 0%
Over 5 years 2,036,901.65 11.96% 2,036,901.65 2,345,511.18 5.84% 2,345,511.18
Total 17,035,110.31 -- 3,150,629.54 40,188,514.02 -- 2,778,183.67
Within Groups, other receivables analyzed for provision according to proportion of balance:
□Applicable √ Not applicable
Within Groups, other receivable analyzed for provision with other methods:
□Applicable √ Not applicable
(2) Other receivable due from shareholders that hold 5% or more of the Company’s voting shares:
□Applicable □ Not applicable
(3) Individually significant other receivable are as follows:
Unit: Yuan
Proportion of total other
Debtors Amount Nature and content
receivables (%)
Congqing Customs District PRC 125,475,912.92 Deposit for tariff 41.24%
140
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Total: 125,475,912.92 -- 41.24%
(4) Top five debtors of other receivables are as follows:
Unit: Yuan
Proportion of
Relationship with
Debtors Amount Aging total other
the Group
receivables (%)
Within 6
Congqing Customs District PRC Not-related 125,475,912.92 41.24%
months
Chongqing Changan International Automobile Sales Within 6
Subsidiary 50,000,000.00 16.43%
Co., Ltd months
Within 6
Beijing Fangan taxi Co., Ltd.
6,000,000.00 months 1.98%
Guoqi (Beijing) Automobile Light Eeight Technology Within 6
Research Institute Co., Ltd. 3,000,000.00 months 0.99%
Small amount purchase suppliers Not-related 1,547,432.00 Within 1 year 0.51%
Total: -- 186,023,344.92 -- 61.15%
(5) The receivable from related parties is as follow:
Unit: Yuan
Relationship with Proportion of total other
Debtors Amount
the Group receivables (%)
Chongqing Changan International Automobile Sales
Subsidiary 50,000,000.00 16.43%
Co., Ltd
Total: -- 50,000,000.00 16.43%
141
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
3 Long-term equity investments
Unit: Yuan
Explanation for
Acco the difference
Sharehol
untin Voting between Current
Addition/(deduct ding Current
Investee g Initial amount Opening balance Ending balance percentage shareholding Impairment cash
ion) percenta provision
meth (%) percentage and dividends
ge (%)
od voting
percentage
I. Joint ventures
Chongqing Changan Suzuki Automobile Co., Equity 239,905,266.00 1,372,612,641.40 51,674,154.43 51.00 51.00 N/A
Ltd 1,424,286,795.83
Jiangling Holding Co., Ltd Equity 1,000,000,000.00 1,492,969,790.10 131,214,820.76 1,624,184,610.86 50.00 50.00 N/A
Changan Ford Mazda Automobile Co., Ltd Equity 1,395,110,717.00 4,011,538,873.50 542,930,665.30 4,554,469,538.80 50.00 50.00 N/A
Changan Ford Mazda Engine Co., Ltd Equity 557,292,960.00 343,195,182.39 6,056,425.12 349,251,607.51 50.00 50.00 N/A
II. Associates N/A
Chongqing HelpGo Information Technology Equity 4,500,000.00 11,776,292.44 -1,460,080.64 21.43 21.43 N/A
Co., Ltd 10,316,211.80
Chongqing Xiyi Automobile Linkage Rod Co., Equity 4,000,000.00 7,664,634.71 506,487.76 40.00 40.00 N/A
Ltd 8,171,122.47
Chongqing Changan Kuayue Automobile Co., Equity 61,800,885.00 61,800,885.00 34.30 34.30 N/A
Ltd 61,800,885.00
Chongqing Changan Kuayue Automobile Sales Equity 1.00 1.00 34.30 34.30 N/A
Co., Ltd 1.00
142
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
III. Subsidiaries
Nanjing Changan Automobile Co., Ltd. Cost 413,805,259.00 413,805,259.00 413,805,259.00 82.47 91.53 Voting rights en
trusted by mino
rity interests
Hebei Changan Automobile Co., Ltd Cost 432,485,236.00 437,635,236.00 437,635,236.00 94.07 95.62 Voting rights en
trusted by mino
rity interests
Chongqing Changan International Automobile Cost 13,068,580.00 13,068,580.00 13,068,580.00 95.00 95.00 N/A
Sales Co., Ltd
Chongqing Changan Automobile supporting Cost 29,700,000.00 29,700,000.00 29,700,000.00 99.00 99.00 N/A
service Co., Ltd.
Chongqing Changan Automobile Sales Co., Cost 48,500,000.00 48,500,000.00 48,500,000.00 100.00 100.00 N/A
Ltd
Chongqing Changan Automobile sales Cost 13,550,000.00 8,050,000.00 8,050,000.00 90-100.00 90-100.00 N/A
subsidiaries
Chongqing Changan Special Automobile sales Cost 2,500,000.00 2,500,000.00 2,500,000.00 50.00 50.00 N/A
Co., Ltd
Chongqing Changan Europe Design Academy Cost 974,020.00 134,879,700.00 134,879,700.00 100.00 100.00 N/A
Co., Ltd
Chongqing Changan new Engergy Automobile Cost 18,850,000.00 18,850,000.00 18,850,000.00 65.00 65.00 N/A
Co. Ltd
Changan United Kingdom R&D Center Co., Cost 981,934.40 981,934.40 981,934.40 100.00 100.00 N/A
Ltd.
Beijing Changan R&D Center Co., Ltd. Cost 1,000,000.00 1,000,000.00 1,000,000.00 100.00 100.00 N/A
Ha’erbin Changan R&D Center Co., Ltd. Cost 1,000,000.00 1,000,000.00 1,000,000.00 100.00 100.00 N/A
Jiangxi Changan R&D Center Co., Ltd. Cost 2,000,000.00 2,000,000.00 2,000,000.00 100.00 100.00 N/A
143
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Shanghai Changan R&D Center Co., Ltd. Cost 1,000,000.00 1,000,000.00 1,000,000.00 100.00 100.00 N/A
Changan Japan Designing Center Co., Ltd. Cost 1,396,370.15 1,396,370.15 1,396,370.15 100.00 100.00 N/A
Changan United States R&D Center Co., Cost 1,317,720.00 1,317,720.00 1,317,720.00 100.00 100.00 N/A
Ltd.
Hebei Baoding Changan Bus Co., Ltd. Cost - 176,002,613.18 176,002,613.18 100.00 100.00 N/A
IV. Others
China South Industry Group Finance Co., Ltd Cost 80,000,000.00 80,000,000.00 80,000,000.00 5.33 5.33 N/A
Chongqing Ante Import and Export Co., Ltd Cost 3,000,000.00 3,000,000.00 3,000,000.00 10.00 10.00 N/A
Sichuan Glass Co., Ltd Cost 1,809,274.00 1,809,274.00 1,809,274.00 0.64 0.64 N/A
Zhong Fa Lian Investment Co., Ltd Cost 6,000,000.00 21,000,000.00 21,000,000.00 10.00 10.00 N/A
Total -－ 4,335,548,222.55 8,699,054,987.27 730,922,472.73 9,429,977,460.00
144
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
4 Operating revenue and cost
(1) Operating revenue and cost
Unit: Yuan
Item Current Period Prior Period
Operating revenue 9,620,016,730.02 10,379,906,091.86
Other operating revenue 575,129,896.52 688,815,022.72
Operating cost 8,423,068,569.27 9,438,912,603.93
(2) Top five customers of operating revenue are as follows:
Unit: Yuan
Customer Operating revenue Proportion of total operating revenue (%)
Nanjing Changan Automobile Co., Ltd. 579,429,858.06 5.68%
Hebei Changan Automobile Co., Ltd. 406,277,111.11 3.99%
Southwest Industries Corporation 353,730,438.21 3.47%
Chongqing Wanyou Economic
284,442,449.79 2.79%
Development Co., Ltd
Chengdu Wanyou Economic Technological
274,695,064.31 2.69%
Development Co., Ltd
Total 1,898,574,921.48 18.62%
5 Investment income
(1) Details of investment income
Unit: Yuan
Item Current Period Prior Period
Long-term equity investment income under cost method -5,263,916.67
Long-term equity investment income under equity method 730,922,472.73 1,034,648,180.63
Long-term equity investment income through disposal
Investment income on financial assets held-for-trading at fair
value through holding
Investment income on financial assets held-to-maturity at fair
value through holding
Investment income on financial assets available-for-sale at
145
Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
fair value through holding
Investment income on financial assets held-for-trading
through disposal
Investment income on financial assets held-to-maturity at fair
value through maturity
Investment income on financial assets available-for-sale
through sale
Others
Total 730,922,472.73 1,029,384,263.96
(2) Long-term equity investment income under cost method
Unit: Yuan
Investee Current Period Prior Period
Changan Ford Mazda Automobile Co., Ltd 542,930,665.30 806,626,269.62
Chongqing Changan Suzuki Automobile Co., Ltd 51,674,154.43 37,703,351.31
Jiangling Holding Co., Ltd 131,214,820.76 180,715,161.29
Changan Ford Mazda Engine Co., Ltd 6,056,425.12 9,292,810.27
Chongqing HelpGo Information Technology Co., Ltd -1,460,080.64 -234,166.99
Chongqing Xiyi Automobile Linkage Rod Co., Ltd 506,487.76 544,755.13
Total 730,922,472.73 1,034,648,180.63
6 Supplementary information of cash flow statement
Unit: Yuan
Supplementary information Current Period Prior Period
1．Cash flows from operating activities calculated by adjusting the net
-- --
profit:
Net profit 535,211,311.23 1,119,451,435.91
Add: impairment provision for assets -8,990,597.50 5,946,478.85
Depreciation of fixed assets, oil and gas assets, biological assets 281,039,909.64 215,273,396.90
Amortization of intangible assets 111,154,358.39 64,245,162.87
Amortization of long-term deferred expense 90,040.00 678,106.00
Disposal loss(gain) of fixed assets, intangible assets and others long-term
205,545.70 -12,632,714.36
assets
Loss (gain) on retirement of fixed assets
Loss(gain) from fair value changes
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
Financial expense(income) -2,141,478.55 -83,986,020.85
Investment loss(gain) -730,922,472.73 -1,029,384,263.96
Decrease(increase) in deferred tax assets -54,420,394.11 -55,825,328.12
Increase(decrease) in deferred tax liabilities 2,183,250.00
Decrease(increase) in inventory 73,505,865.79 -1,209,830,205.82
Decrease(increase) in operating receivables -874,613,401.42 1,371,989,670.93
Increase(decrease) in operating payables 1,155,476,101.94 1,211,191,379.53
Others -135,769,418.74
Net cash flows from operating activities 485,594,788.38 1,463,530,929.14
2．Significant investment activities and financing activities not dealt with
-- --
cash:
Liabilities transfer to capital
Convertible bonds maturity in 1 year
Fixed assets acquired through finance lease
3．Movement of cash and cash equivalents: -- --
Ending balance of cash 3,040,122,671.26 6,154,655,990.54
Less: beginning balance of cash 3,748,480,642.89 3,087,748,588.31
Add: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Increase in cash and cash equivalents -708,357,971.63 3,066,907,402.23
(X)Supplementary information to financial statements
1 Return on equity and earnings per share
Unit: Yuan
Weighted average return on Earnings per share
Current profit
equity (%) Basic EPS Diluted EPS
Net profit attributable to the Company’s
2.6% 0.12 0.12
ordinary shareholders
Net profit attributable to the Company’s
ordinary shareholders after deducting 2.05% 0.09 0.09
non-recurring profit and loss
2 The major fluctuation and related explanation of the Group’s financial statements
(1) The accounts receivable increased by 36.83% was mainly due to extend credit period of distributors.
(2) The other receivable increased by 158.54% was mainly due advance relating to construction in progress
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
increased.
(3) The construction in progress increased by 68% was mainly due to investment on Yuzui motor city project,
Plant for vehicle test project and Beijing vehicle construction project.
(4) The tax payable decreased by 39.41% was mainly due the deductible value-added tax increased during current
period.
(5) The bond payable was mainly due to the Company issued bond for financing during current period.
(6) The other current liabilities increased by 26.36% was mainly due to the accrued advertisement fee and
transportation fee increased.
(7) The operating expenses increased by 27.51% was mainly due to promotion fee increased.
(8) The finance expenses increased significant was mainly due to bond interest increased and interest income.
(9) The investment income decreased by 29.59% was mainly due to net profit of joint venture such as Changan
Ford Mazda Automobile Co., Ltd and Jiangling Holding Co., Ltd.
(10)The profit and net profit attributable to owners decreased significant was mainly due that the sale of
automobile declined, expenses increased and investment income from joint ventures decreased.
(11)The income tax expense decreased was mainly due the parent company operating loss for current period and
reorganization of defer tax assets.
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Chongqing Changan Automobile Company Limited Financial Statement for First half year 2012
IX. List of Reference Documents
List of Reference Documents
I. Semi-Year Financial statements bearing the signatures of the Legal Representative
II. Financial statements bearing the signatures and stamps of the Legal Representative, Chief accountant and
officer-in-charge of the accounting institution;
III. Board resolution and written confirmed document signed by directors and senior executives;
IV. Written resolution of audit opinion of board of supervisors;
V. Original copies of all documents and notices disclosed on the China Securities, Securities Times, and Hong
Kong Commercial Daily by the Company during the report period;
Above reference documents will be provided by company when China's Securities Regulatory Commission and
Shenzhen Stock Exchange require to or Shareholders claim for review according to laws and Articles of
Association.
Chairman of Board of Directors: Xu Liuping
The date the financial statements are authorized for issue by Board of Directors: 2012.08.29
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