Chongqing Changan Automobile
Company Limited
2020 Annual Report
April, 2021
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executives
of our company hereby guarantee that no false or misleading statement or major omission was made
to the materials in this report and that they will assume all the responsibilities, individually and jointly,
for the trueness, accuracy and completeness of the contents of this report.
The Chairman of the Board Zhu Huarong, the Chief Financial Officer Zhang Deyong and the
responsible person of the accounting institution (Accountant in charge) Chen Jianfeng hereby declare
that the Financial Statements enclosed in this annual report are true, accurate and complete.
Except the following directors, all the directors attended the board meeting for reviewing the
annual report.
The name of the directors absent Positions Reasons for the absence Name of the consignee
Tan Xiaogang Director Business trip Zhou Zhiping
Liu Jipeng Independent director Business trip Pang Yong
Tan Xiaosheng Independent director Business trip Li Qingwen
The prospective description regarding future business plan and development strategy in this
report does not constitute virtual commitment. The investors shall pay attention to the risk.
The preplan profit distribution of the Company deliberated and approved by the Board is: Based
on the total share capital of 5,439,591,574 shares, a cash dividend of RMB 3.06 (tax included) will
be distributed to all shareholders for every 10 shares, and 4 shares will be converted from the capital
reserve for every 10 shares.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 4
Chapter 3 Analysis of Main Business ........................................................................ 9
Chapter 4 Business Discussion and Analysis ........................................................... 13
Chapter 5 Important Matters .................................................................................... 40
Chapter 6 Changes in the shareholding of the company and shareholders .............. 55
Chapter 7 Information about Directors, Supervisors, Senior Management and
Employees ................................................................................................................... 63
Chapter 8 Corporate Governance ............................................................................. 78
Chapter 9 Corporate Bonds ...................................................................................... 84
Chapter 10 Auditor’s Report .................................................................................... 85
Chapter 11 Documents for Future Reference ......................................................... 255
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Definitions
Items Definitions
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Co., Ltd., the Company’s actual controller
China Changan Automobile Group Co., Ltd., old name: China South
China Changan Refers to
Industries automobile Co., Ltd., a subsidiary company of South Industries
Chongqing Changan Industry (Group) Co., Ltd., old name: Changan
Changan Industry Refers to
Automobile (Group) Co., Ltd., a subsidiary company of South Industries
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co., Ltd., a
International Company Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co., Ltd., a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., Ltd., a JV of the Company
CME Refers to Changan Mazda Engine Co., Ltd., a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the Company
Changan Finance Refers to Changan Automobile Finacing Co., Ltd., an associate of the Company
China South Industries Group Finance Co., Ltd., a subsidiary company of
South Industries Finance Refers to
South Industries
United Prosperity (Hong Kong)Investment Co., Ltd., a subsidiary
UPI Refers to
company of China Changan
Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company
Hafei Group Refers to
of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd., an associate of
CMAL Refers to
China Changan
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile 、Changan B Stock Code 000625、200625
Listed on Shenzhen Stock Exchange
Company in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Company Limited
English
Legal representative Zhu Huarong
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the
400023
registered address
Office address No. 260, East Jianxin Road, Jiangbei District, Chongqing
Post code of the office
400023
address
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Li Jun
No. 260, East Jianxin Road, Jiangbei
Contact address
District, Chongqing
TEL: 023-67594008
FAX: 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Newspaper selected by the Company for China Securities Journal, Securities Times, Securities Daily, Shanghai
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Chongqing Changan Automobile Company Limited 2020 Annual Report
information disclosure Securities News, Hong Kong Commercial Daily
Website selected by CSRC for publishing
www.cninfo.com.cn
this annual report
The place where this annual report is
Secretary's Office of Board of Directors
prepared and kept
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Not applicable
company's listing
In Dec. 2005, according to the restructuring program on automobile business, the
Company’s actual controller, China South Industries Group Corporation made
transferring of all state-owned shares of the Company as part of funding for China South
Industries Automobile Company Limited. In March 2006, all shares held by Changan
Group have been transferred to China South Industries Automobile Company Limited.
All previous changes of dominant
China South Industries Automobile Company Limited became the majority shareholder
stockholders
of the Company, and Changan Group holds zero share since then.
In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Company Limited”, changed its name to “China
Changan Automobile Group Co., Ltd.”. With the change of its name, no change occurred
in its property, ownership and control relation of the Company.
V. Other Relevant Information
The accounting firm employed by the Company:
Name of the accounting firm Ernst & Young Hua Ming LLP (Special Ordinary Partner)
Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng
Address of the accounting firm
District, Beijing, China
Name of the certified public
Qiao Chun, Hu Yan
accountant for signature
The recommendation agency engaged by the Company executing the persistent supervision responsibilities in the
reporting period
√ Applicable □Not applicable
Name of sponsor Continuous supervision
Sponsor name Sponsor's office address
representative period
CITIC Securities 21st Floor, CITIC Securities Building, No. 48 He Yang, Chen October 26, 2020-December
Co., Ltd. Liangmaqiao Road, Chaoyang District, Beijing Shumian 31, 2021
The financial consultant engaged by the Company performing the duties of persistent supervision and guidance in
the reporting period
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Chongqing Changan Automobile Company Limited 2020 Annual Report
□ Applicable √ Not applicable
VI. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement of previous years accounting data due to changes in accounting
policies or accounting errors?
□Yes √ No
Increase/decrease
2020 2019 on a y-o-y basis 2018
(%)
Operating revenue
84,565,544,146.58 70,595,245,133.28 19.79% 66,298,270,389.77
(Yuan)
Net profit belonging
to shareholders of the
3,324,251,164.16 -2,646,719,356.53 225.60% 680,728,392.03
listed company
(Yuan)
Net profit belonging
to shareholders of the
listed company after
-3,249,984,527.77 -4,762,446,597.61 31.76% -3,165,070,272.21
deduction of non-
recurring profit and
loss (Yuan)
Net cash flow arising
from operating 10,675,953,479.24 3,881,748,238.39 175.03% -3,887,475,302.44
activities (Yuan)
Basic earnings per
0.68 -0.55 223.64% 0.14
share (Yuan/Share)
Diluted earnings per
Not applicable Not applicable Not applicable Not applicable
share (Yuan/Share)
Return on equity Up 12.99
7.13% -5.86% 1.45%
(ROE) (%) Points
Increase/decrease of
the end of current
End of 2020 End of 2019 year compared with End of 2018
that of the
previous year (%)
Total assets (Yuan) 120,915,805,349.52 97,617,053,590.38 23.87% 93,488,854,098.95
Net assets belonging
to shareholders of the
53,410,193,236.09 44,028,312,743.66 21.31% 46,244,958,676.52
listed company
(Yuan)
The lower of the company’s net profit before and after deduction of non-recurring gains and losses in the most recent three fiscal years
is negative, and the audit report of the most recent year shows that the company’s ability to continue operations is uncertain
□Yes √ No
The lower of the net profit before and after non-recurring gains and losses is negative
√Yes □ No
Item 2020 2019 Notes
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Company's operating income
Operating revenue (Yuan) 84,565,544,146.58 70,595,245,133.28
(before deduction)
Operating revenue deduction Business income not related to
113,349,438.04 55,177,961.32
amount (yuan) the main business
Amount after deduction of Company's operating income
84,452,194,708.54 70,540,067,171.96
operating revenue (yuan) (after deduction)
VII. The differences between domestic and international accounting standards
(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial
reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference.
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable √ Not applicable
No difference.
(3). Explanation of reasons for differences in accounting data under domestic and foreign accounting standards
□ Applicable √ Not applicable
VIII. Key financial indicators for the quarter
Unit: Yuan
First Quarter Second Quarter Third Quarter Forth Quarter
Business income 11,564,077,463.34 21,217,580,015.76 23,059,924,854.44 28,723,961,813.04
Net profit attributable to shareholders of listing
631,077,888.63 1,971,088,514.05 883,806,569.75 -161,721,808.27
Corporation
Net profit attributable to shareholders of the listing
Corporation after deducting non-recurring gains and -1,793,324,817.62 -823,563,483.85 519,048,534.49 -1,152,144,760.79
losses
Net cash flows from operating activities 4,155,344,266.52 2,757,242,427.08 106,853,186.71 3,656,513,598.93
Whether or not the above mentioned financial indicators and the total number of the company has disclosed the major difference
between quarterly reports and semi-annual report
□ Yes √ No
IX. Non-recurring items and amounts
√ Applicable □Not applicable
Unit: Yuan
Item 2020 2019 2018
Non-recurring items and amounts(including accrued reversal assets
29,465,046.07 56,658,864.17 8,561,074.73
impairment part)
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Government subsidies included in the profit and loss of the current
period (Except closely related to business operations, in accordance
797,901,407.24 1,537,625,620.93 2,873,192,102.56
with the national unified standard quota or quantitative enjoyment of
government subsidies)
The investment cost of the enterprise to obtain subsidiaries and joint
ventures which is less than the fair value of the identifiable net assets - - 1,020,821,274.01
of the investee when the investment is obtained
In addition to the effective hedging business related to the company's
normal business operations, the fair value of gains and losses from 2,035,390,665.86 889,154,888.69 -
changes in fair value
Gains and losses on entrusted loans 13,768,160.42 6,771,226.43 -
Losses arising from business combinations not under common control -6,937,641.07 - -
Investment income from disposal of long-term equity investments 1,398,196,002.13 - -
Gains from the remeasurement of the remaining equity at fair value
2,246,681,836.54
after the loss of control
Except the above other operating income and expenses -27,519,486.75 -135,258,766.14 48,285,737.46
Interest on deferred payment of funds received by non financial
17,795,918.37 28,553,488.65 29,303,167.73
enterprises
Reduction: the impact of income tax -91,514,483.25 250,459,302.04 82,007,701.31
Impact of minority shareholders' equity (after tax) 22,020,700.13 17,318,779.61 52,356,990.94
Total 6,574,235,691.93 2,115,727,241.08 3,845,798,664.24
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 – non-
recurring gains and losses “Public offering of securities information disclosure of the company's information disclosure announcement
No. 1 – non-recurring gains and losses” defined non-recurring items ,and Public offering of securities information disclosure of the
company's information disclosure announcement No. 1 - non-recurring gains and losses “The items listed in the non-recurring items
defined as recurring items shall be explained .
□ Applicable √ Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information disclosure
of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gains and losses
to define a case of recurring profit or loss.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 3 Analysis of Main Business
I．The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□ Yes √ No
During the reporting period, the company's main business is the R&D, manufacturing and sale of cars, the R&D and production
of automobile engine products. Besides, the company integrates advantageous resources to actively develop travel services, new retail
and carry out multi-dimensional industrial layout.
Changan automobile always adheres to the mission of "leading the car civilization for the benefit of human life", and the concept
of "energy conservation, environmental protection, scientific and technological intelligence", vigorously develops new energy and
smart cars, guides the automobile civilization by the use of scientific and technological innovation, and provides customers with high
quality products and services. After years of development, the company owns many famous brands such as Changan passenger car,
Oushang automobile, Kaicheng automobile, Changan Ford, Changan Mazda and so on. Up to now, the company has successfully
launched a series of classic brands such as CS series, Eado series, UNI，Oushang series, and Shenqi series; a series of famous JV
products such as all new Focus, Escort, Escape, Edge，Explorer，Adventurer，Axela, CX-5, CX-8, CX-30 and so on. At the same
time, we have launched new energy vehicles such as Eado EV, new Benben EV and CS15EV, which are admired by the market and
loved by the consumers.
During the reporting period, major changes have taken place in industrial policies and major regulations. The specific
circumstances of the changes and their impact on the company are as follows:
1. industrial policy (new energy)
(1) Policy on financial subsidies
On December 31,2020, the Ministry of Finance and other four ministries and departments issued the notice on further improving
the financial subsidy policy for the promotion and application of new energy vehicles, which clarifies the financial subsidy policy for
new energy vehicles in 2021 and will be implemented since January 1st, 2021. Firstly, as for the subsidy standards, the implementation
of the 2020 subsidy policy (financial construction [2020] No. 86) is clear-cut: New Energy vehicle subsidy standards in non-public
Transport Sector decreased by 20% on the basis of the 2020 standard; New Energy vehicle subsidy standards in public Transport Sector
decreased by 10% on the basis of the 2020 standard. New Energy subsidy income of Chang'an automobile in 2020 amounted to 67
million yuan. Secondly, in terms of technical indicators, the policy maintained the same threshold of technical indicators such as energy
density, driving range and energy consumption of the power battery system while the technical threshold requirements such as driving
range and energy consumption of plug-in hybrid electric vehicle (including add-program) are adjusted. The technical difficulty after
adjustment is consistent with the technical difficulty under NEDC working condition. In addition, special emphasis has been placed on
the safety responsibility of new energy vehicles and the prevention of disorderly expansion of production capacity.
Technical indicators of financial subsidies for new energy vehicle remain stable, the amount of subsidies reduced to some extent,
and it is conducive to the continuity of the company's products and improve the profitability of vehicles.
(2) New Energy Vehicle Points
On June 15, 2020, the Ministry of Industry and Information Technology published the decision on revising the regulations on the
concurrent management of the average fuel consumption of passenger vehicle enterprises and the new energy vehicle points, which
specifies that the new energy vehicle points of the 2021、2022、2023 are 14% , 16% and 18% respectively with the increasing proportion.
At the same time, the new energy points for single unit will be reduced by 20% to 40%.
New Energy points policy requires the vehicle companies to produce more new energy vehicles. Otherwise, they need to purchase
the points to meet the point requirements, both of which will create greater financial pressure on the company, and affect the company's
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Chongqing Changan Automobile Company Limited 2020 Annual Report
current profit level.
2. Major Regulatory Requirements (fuel standards, emission requirements, electric vehicles, etc.)
(1) Fuel Standards and emission requirements
China's motor vehicle emission standards system has drawn on the practices of the European Union, taking into account the
specific development of relevant industries in China as well as environmental and management requirements, and is implemented step
by step. Since 2000, China began to implement the first national standard, until now the sixth national emission standards (GB 18352.6-
2016) have been fully implemented in light vehicles.
As shown in the table below:
All the company's products have already met the sixth national emission standards.
(2) The standards for electric vehicles
In 2020, two mandatory standards in the field of new energy vehicles, GB 18384-2020 safety requirements for electric vehicles
and GB 38031-2020 safety requirements for power storage batteries for electric vehicles, were issued in 2020 and imposed on January
1, 2021. The GB 18384-2020 safety requirements for electric vehicles (EVS), replacing the original GB/T 18384-2015, safety
requirements series standards for use, specify the requirements, functional safety requirements and test methods for personal electric
shock protection in normal use. Several relevant safety requirements are added or deleted in the GB 18384-2020 safety requirements
and the corresponding test methods are clarified. Some of the mandatory standards have been implemented, and the new thermal
runaway alarm requirements have been added. GB 38031-2020 safety requirements for power storage batteries of new energy vehicles
specifies the safety requirements and test methods for power storage batteries, battery packs or systems.
The above change enables enterprises to increase R&D investment in Battery Safety Application Research, big data monitoring,
on-board alarm, thermal runaway suppression and so on. At the same time, due to the increase of safety control components and strength
requirements, the vehicle cost will also increase correspondingly, but the safety and reliability of the vehicle has been greatly improved.
II. Major changes in assets
1、 Major changes in assets
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
In 2020, Chang'an automobile firmly set the direction of its third innovation and entrepreneurship program, issued its innovation
and entrepreneurship plan 3.0, accelerated the landing of the "Beidou Tianshu" plan and the "Shangri-la" plan, and initiated a new
chapter of development in all respects. In 2020, the Company spent 4.142 billion yuan on product and technology projects development
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Chongqing Changan Automobile Company Limited 2020 Annual Report
to build the industry's leading R & D strength.
Constantly build classic products. UNI-T, Eado PLUS, CS55PLUS blue whale version, Reaton CC blue whale version,
CS75PLUS 2020 version , CS75PLUS 2021 version , Oushang X5, Keshang EV, Benben E-Star, CS55 pure electric version, NE15TG-
AA and other products were launched on time. The CS75 series, the Eado series, CS55 PLUS, CS35 PLUS were sold 267 thousand
units, 175 thousand units, 110 thousand units, and 95 thousand units respectively. The sales number of UNI-T and Oushang X5
amounted to 69,000 and 40,000 cars in 2020.
Constant improvement of key capabilities. The Company completes the first domestic L3 mass production technology release,
and continues to enhance the core technical capacity of autopilot. The first launch of sight bright screen, lip recognition and other
functions evolves into "Voice+Video" intelligent interactive iteration. The new electronic and electrical architecture completes the
integration of the body area controller and the cockpit area controller. The first carbon fiber-aluminum alloy hybrid body has been
successfully trial-produced and rolled off the line. The first high-performance pure electric four-wheel drive SUV has been successfully
trial-produced and rolled off the line, and the self-designed control software of fuel cell system breaks through the key technology and
lays a foundation for the following industrial application. The gene technology of pleasant driving quality is applied in UNI-T vehicle
body posture control, dynamic torque control and so on. Chang'an new energy seven-in-one electric drive system (XTDM16) won the
first high efficiency ratio a-class product certification of electric vehicle drive motor system issued by China Automotive Research and
Development Corporation and will be the first launch of the next generation digital vehicle. Chang'an automobile "PM0.1" composite
anti-bacterial and anti-toxic high-efficiency filter acquires the "CATARC CN95" certification issued by the China Automobile
technology Research Center Certification Center, and becomes the highest level of certification of automobile air conditioning filter
products, which sets a new benchmark for healthy cars. Chang'an blue whale 2.0T prototype longitudinal engine has successfully
ignited at the Company’s global R & D Centre, marking the smooth starting of the Chang'an blue whale 2.0 era.
Adhere to the guidance of scientific and technological innovation. The first Chinese automobile multimedia international
standard ITU-T f.749.3 Automobile multimedia network use cases and requirements participated and led by Changan Automobile was
officially released after global publicity. The core of the standard adopts the network deep integration technology of "5g+satellite,
integration of heaven and earth" which is independently innovated by China, breaking the long-term monopoly of Europe, America,
Japan and South Korea in the field of automobile electronics, marking the beginning of China's multimedia integration technology to
the world. Among them, the project of research and industrial application of advanced technology and manufacturing technology of
typical lightweight automobile parts won the first prize of Chongqing Science and technology progress award, and the project of
research and development and application of key technologies of Changan intelligent automobile platform won the second prize of
automobile industry science and technology Progress Award. In 2020, 1091 patents have been applied, including 400 invention patents.
As of 2020, 1474 valid invention patents have been obtained. In depth cooperation with Huawei and CATL, the Company jointly build
"intelligent networked electric vehicle platform". Chang'an vehicle software platform is constructed guided by the intelligent strategy
of "Beidou Tianshu" of Chang'an Automobile and the research and development of vehicle software platform is highly focused.
Chang'an software center is settled in Xiantao data valley. Changan blue whale NE1.5T high pressure direct injection engine has carried
out the limit operation test of no less than 200+ hours, successfully challenged the Guinness world record, and won the honorary title
of "China heart" 2020 top ten engines in 2020.
The brand potential is steadily improving. Firstly, define the brand structure of the four major businesses, and release version
3.0 of the company's brand management principles. Clarify the brand positioning of Chang'an Automobile, promote the landing of core
values, refresh the brand visual image in Beijing auto show, promote the "1361" brand upward operation system, accelerate the landing
of digital system; initially build brand value and visual system of Oushang and Kaicheng brands. Secondly, create brand labels such as
Chang'an design and power, realize the coordinated development of double sequence division; actively respond to the epidemic
situation, carry out communication transformation, and build a new brand experience platform with live broadcast as the origin and
public relations as the traction. Thirdly, return to the central media, launch the plan brand day activities with CCTV-2, release fashion
blockbusters with new image of senior executives, realize all-round image rejuvenation, create a breakthrough new mode of cooperation
between media and enterprises, and empower the brand of Changan Automobile. Fourthly, build enterprise content matrix and
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Chongqing Changan Automobile Company Limited 2020 Annual Report
specialization, achieve continuous improvement of communication form and content quality, and realize the brand upward.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 4 Business Discussion and Analysis
I. Overview
2020 is a very unusual year in the history of new China. The international situation is grim and complicated. The task of reform
and development and stability in China is arduous and heavy. The COVID-19 epidemic has brought serious impact to the development
of the economy and society. However, under the strong leadership of the Party Central Committee, China became the only major
economy to achieve economic growth in the world this year. The three major battles have made decisive achievements, scientific and
technological innovation has made significant progress, and important breakthroughs have been achieved in reform and opening up,
and people's livelihood has been effectively guaranteed.
Affected by the epidemic situation, China's automobile market suffered a setback in early 2020. However, with the continuous
improvement of the national epidemic prevention and control situation, the orderly promotion of resumption of work and production,
the continuous recovery of consumer confidence, the continuous recovery of domestic automobile market from April, the automobile
enterprises’ production and operation improved and the V-shaped reversal trend went throughout the year. In 2020, the cumulative
production and sales of China's automobile market reached 25.525 million and 25.311 million respectively, with a year-on-year decrease
of 2.0% and 1.9% respectively. The sales of passenger cars decreased by 6.0% year-on-year to 20.178 million; the sales of commercial
vehicles were 5.133 million driven by the upgrading of emission standards and new infrastructure, up 18.7% year-on-year. The new
energy vehicle market has entered a new stage of development after experiencing the pain of subsidization. The sales of pure electric
passenger cars are 1.246 million, a year-on-year growth of 14.6% with the proportion of personal consumption and the proportion of
non-restricted cities increasing significantly. At the same time, the epidemic also accelerated the reshuffle of the industry. The sales
volume of the top ten enterprise groups in the narrow sense of passenger car sales in the whole year totaled 18.81 million, accounting
for 94.5% of the total automobile sales, up 0.3% over the same period of last year.
In 2020, the sales volume of passenger car market still showed a year-on-year decline, but the second half of the year recovered
better than expected under the promotion of consumer stimulus policies and the rise of automobile demand after the epidemic. The
market share of China's brand passenger cars continued to decline under the pressure of joint venture brand prices, but the decline rate
narrowed by 1.1% compared with the previous year. Among the joint venture brands, the share of Japanese and American brands
increased by 1.8% and 0.8% respectively, while that of Korean brands decreased by 1.3%. The performance of various segments of
passenger car market is different. In 2020, the sale number of sedans is 9.275 million, a year-on-year decrease of 9.9%. The top ten
brands in sales volume are mainly Japanese and European brands, accounting for 34.0% of the total sales volume of car. The overall
performance of SUV market is better than that of passenger car industry by 6.6% on a year-on-year basis, and the sales volume exceeds
that of sedans for the first time. The top ten SUVs in sales volume are mainly Chinese brands, European brands and Japanese brands,
among which CS75 has a higher growth rate, with a year-on-year growth rate of nearly 40%. Japanese brands are outstanding with four
brands in the top ten.
With the gradual maturity of the new energy vehicle industry chain, the improvement of consumers' understanding and
acceptance of new energy vehicles, the rich and diversified new energy vehicle products provided by backbone enterprises and the
gradual improvement of new energy use environment, the new energy vehicle market in 2020 will go out of the downturn after the
decline of subsidies in 2019 and enter a new growth stage. New energy vehicles are recognized by more and more consumers. The
proportion of individual consumption of new energy has increased to nearly 70%, and the proportion of non-restricted cities has reached
60%. From the perspective of vehicle type structure, the new energy market will be polarized in 2020, that is, the share of high-end
and micro power will increase rapidly, and the total share of the two will reach 46.2%. The top 10 in terms of sales volume are the new
forces of car making and the micro electric products of Chinese brands. [the above data / information comes from China automobile
industry production and marketing Express (China Automobile Industry Association) and its industry information release]
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Chongqing Changan Automobile Company Limited 2020 Annual Report
In 2020, Chang'an Automobile will not forget its original intention and stick to its strategic transformation. It sold 2.04 million
vehicles in 2020 with a year-on-year growth of 14.0%. Changan Automobile adheres to technology leading, strives to break through
the core technology, and is committed to creating classic products that satisfy users. Since its launch in June, UNI-T as the first high-
end product of UNI was sold more than 10,000 cars a month, which is in short supply; CS75plus has sold more than 15000 cars a
month for nine consecutive months, boosting the annual sales of CS75 series to exceed 267 thousand cars; Eado plus has sold more
than 10,000 cars a month since its launch at the end of March, which ranked the first compact car of Chinese brands; CS55plus has
stable monthly sales driven by blue whale in 10,000 units; CS35 series cumulative sales reached one million, ranking in the forefront
of small SUV. Oushang X7 entered the mainstream passenger car competition circle, with annual sales exceeding 80,000 units; Oushang
X5, built on MPA's exclusive SUV platform, sold more than 10000 units in the first month of its launch; Lincoln adventurer continued
to sell well after its launch, and ranked fifth in the segment market in 2020, strongly supporting Lincoln brand to become the fastest
growing luxury SUV brand in 2020.
Production and sales of China's auto industry in 2020
2020 Accumulative 2020 Accumulative
y-o-y increase y-o-y increase
production production
（%） （%）
（ten thousand） （ten thousand）
Automobile 2522.5 -2.0 2531.1 -1.9
Passenger cars 1999.4 -6.5 2017.8 -6.0
Sedan 918.9 -10.0 927.5 -9.9
MPV 101.1 -26.8 105.4 -23.8
SUV 939.8 0.1 946.1 0.7
Cross-passenger car 39.5 -1.7 38.8 -2.9
Commercial car 523.1 20.0 513.3 18.7
New energy cars 136.6 7.5 136.7 10.9
New energy Passenger cars 124.7 11.3 124.6 14.6
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Chongqing Changan Automobile Company Limited 2020 Annual Report
EV 99.1 9.4 100.0 16.1
The above data comes from China automobile industry production and marketing express (China Automobile Industry Association)
and its industry information release.
In 2020, around the overall strategy of "quick contraction, provincial payment, transformation direction, ecological construction,
reserve, anti-scrag, stabilize the team and security", Changan automobile overcome the difficulties such as economic downturn and
industry decline caused by COVID-19 and other factors, quickly promote the resumption of production and recovery, seize
opportunities and take advantage of the trend, and the growth of production and business is going against the trend, ushering in a new
round of rising channels, and firm transformation results are emerging.
1.Make every effort to prevent and control the COVID-19, and promptly organize the resumption of work and production
Since the outbreak of the COVID-19, Changan automobile put the people first and life first, act with confidence and speed, carry
out scientific prevention and control, implement precise measures, and take solid steps to prevent and control all epidemics after the
resumption of domestic workers to achieve "0" infection, and the Company achieved significant results in the epidemic prevention and
control. In the face of the epidemic, Chang'an automobile actively carried out the social responsibility of listed companies, donating
10 million yuan for the prevention and control of the epidemic at the first time; in the early days of the epidemic, there was an extreme
shortage of face masks worldwide, Chang'an automobile has taken the initiative to purchase nearly 700,000 face masks for some
medical institutions and government units. In 28 days, a face mask production line was set up to produce 12.13 million face masks,
with a total donation of 3 million face masks. The Company has produced 11,000 vehicles for medical care and provided 9,863
additional jobs and grass-roots staff per capita income increased by 1,280 yuan.
In order to effectively co-ordinate the prevention and control of the epidemic and the development of the enterprise economy,
Chang'an automobile has persisted in "grasping both ways and not erring on both sides" , "pulling, robbing and forcing" to carry out
the entire industrial chain to produce and save itself, respond quickly to production demand, and actively coordinate the production of
materials, the cooperation pulls more than 5000 partners from the industrial chain to resume work, production and market. With the
improving situation of national epidemic prevention and control, Chang'an automobile has seized the opportunity of post-epidemic
market recovery and regained its momentum. In 2020, the designed production capacity of 2.05 million vehicles reached 60% of usage,
and the sales volume has been increasing for the ninth consecutive month since April, compared with the same period last year. The
year-on-year market share increased by 1.1% and the cumulative sales increased by 15.9%, showing a better development trend.
2. Continue to strengthen the strategic landing, the steady implementation of reform and adjustment
Chang 'an automobile firmly deepened the transformation strategy, with "customer-oriented, firm reform, innovative marketing,
ultimate efficiency" as the key, the Company in 2020 firmly pushed forward "the third start-up plan for innovation and
entrepreneurship" , seriously planned the "14th five-year plan" and the Vision for 2030. The Company has conducted in-depth
discussions on building a new development pattern, generating new development momentum, stimulating new development vitality
and creating new competitive advantages, completing the third start-up stage 4.0 and the company's "14th five-year" strategic plan,
clarified the new connotation of the intelligent low-carbon travel technology company, and emphasized the new development idea of
the transition to the new automobile and the new ecology, at the same time optimize the strategic structure, corporate form and other
content so as to make the transformation objectives more specific and the logic more clear for the company's sustainable high-quality
development direction. The Company will continue to deepen strategic cooperation and jointly build high-end smart car brands and
high-tech and high-end products with Huawei and CATL. The Company will join hands with leading companies in various fields, such
as the China Automobile Center and the Sinopharm Group, to complement each other's strengths, to carry out all-round and deep-level
cooperation and jointly promote the enterprise to become stronger, better and bigger.
Major reform projects have been steadily implemented such as Changan Peugeot Citroen Automobile and Oushang automobile;
light vehicle reform has completed the establishment of joint venture. The Company continued to deepen organizational change, set up
software technology enterprise and UNI innovation operation center, promoted the top-level structure change of "small headquarters +
business group + sharing platform + incubation center", built a matrix organization mode of "customer-oriented and product-oriented",
15
Chongqing Changan Automobile Company Limited 2020 Annual Report
and set up product CEO to improve product development efficiency and profitability. The Company strengthened the construction of
talent team, built a talent supply system of market-oriented employment and contract management, and introduced mature talents in
software, new energy, intelligence and other aspects through multiple channels. Strengthen the incentive constraints, fully implement
the project follow-up investment mechanism, establish the incentive mechanism for incubating innovative business, and help the
development of new business. The company should comprehensively carry out the "digital business project", promote the company's
digital transformation, release the four major operation process architecture and working mechanism, and build a decision-making
system with products as the main line; promote the construction of CADDM platform, transparent research, production, supply and
marketing management; carry out the "data analysis competition", and create a digital cultural atmosphere for all staff.
3. Adhere to the bottom line thinking, business quality continuing to improve
While effectively doing a good job in epidemic prevention and control, Changan Automobile fully implemented the "16 character"
policy, and made overall efforts to improve the operation quality. The Company continued to deepen the work of "increasing revenue,
reducing cost, saving expenditure, controlling investment, reducing inventory, financing, cashing in and reforming". In the past three
years, the Company shut down 1.09 million backward vehicle capacity and 0.5 million engine capacity, and further optimized the
product and capacity structure. The average price of the independent brand continued to rise with significant results in cost reduction
and cost saving, and the overall business quality continued to improve. In the face of the adverse impact of the epidemic on the whole
industry and the complex and changeable international relations on the supply guarantee of enterprises, Chang'an Automobile deeply
studied and judged the current and future domestic and international situation and enterprise operation status, and made the overall
plans to formulate the overall response strategy of "fast contraction, save expenditure; grab resources , be sustainable; change direction,
build ecology; stabilize team, and ensure safety" so as to ensure the normal production and operation order to the maximum extent, a
working group was set up to sort out and screen the materials that may have supply guarantee risks one by one, formulate targeted
solutions, reserve key parts materials in advance, formulate alternative schemes and other means, and formulate medium and long-term
supply guarantee schemes to ensure the safety of the industrial chain supply chain full and stable.
4. Product innovation achieving the initial results, the brand achieving new results
The Company strengthened the creation of classic products and the Eado plus was well recognized by the market with the pre-
sale orders exceeding ten thousand for 16 days, and the occupation of the forefront of the market segment. Uni-T, as the first high-end
product of UNI series, is officially launched, and shaped an interesting future mass producer of science and technology; UNI-K, as the
second product of UNI series, made a wonderful appearance in Guangzhou International Auto Show 2020. Changan Automobile's high-
end product series Vision-V was officially released at Beijing auto show, depicting the innovative form of future cars and the pleasant
experience of travel for users. Oushang X5, built on MPa's exclusive SUV platform, had a vehicle engine system comparable to the
mainstream medium and high-end models; Oushang X7 EV- the first intelligent pure electric SUV, and Oushang Keshan EV-the first
pure electric high-end business travel MPV were officially released, marking that Chang'an Oushang officially entered the pure electric
era. Represented by CS55plus blue whale and Ruicheng CC blue whale, Chang'an "blue whale family" models are recognized by more
and more users with the annual cumulative sales of more than 0.9 million vehicles, setting a new market benchmark for China's
automobile power technology. Changan Ford explorers entered the mainstream joint venture medium and large-scale SUV circuit;
Lincoln adventurer's sales quickly ranked in the forefront of the segment market after listing, competing with the first-line luxury
brands. Chang'an Mazda CX-30, a new generation of SUV for travel, was launched on the market, further enriching Mazda's product
line in China.
With clear brand upward path, the Company released group brand management principle 3.0, clarified the four business brand
structure and strategic direction, promoted the new and upward development of products and people, clarified the brand positioning of
"technology Chang'an intelligent partner" of passenger cars, and the brand positioning of "walking with a better life" of Oushang
automobile. The Company renewed the brand visual image, flattened the monochrome logo more in line with the new trend of youth
and digital. The brand-new brand exclusive font "Chang'an gravitation body" was officially unveiled, and through the font design, the
brand's "sense of technology with temperature" and "sense of partner care" were conveyed. 57% of the users of UNI-T, a new series
product, are grabbed from a joint venture brand; UNI-K real cars showed up at Guangzhou auto show, receiving the attention far more
16
Chongqing Changan Automobile Company Limited 2020 Annual Report
than UNI-T and CS75plus over the same period. Through the innovation of communication forms, such as live broadcasting activities
on the market, public welfare live broadcasting with goods, and "together" film and television implantation, the company can achieve
a win-win situation of brand value penetration and user flow, and directly reach the new generation of consumers. "Ten thousand people
we media" cloud live broadcasting had an average of 3000 per day, with a total of more than 0.42 million live broadcasting, and the
number of communicators exceeded 4.4 billion. The Company promoted the continuous improvement of brand potential, planned a
series of activities of Chang'an Automobile Brand day, created hot topics such as "Chang'an Automobile ark structure", and carried out
multi-directional communication through mainstream media, so as to make the company's brand potential rise.
List of products listed in 2020
Date of listing Model name Model features
Eado plus, a quality sedan Evolver, leading the new style of contemporary sedan.
The new generation of sports modeling: new high-value dual modeling front face with
star pupil eye LED light group, set fashion and dynamic in one; humanized care type central
control layout, super fiber zero sitting seat, star night piano keys, red and black two-color
interior, collision with a fashionable and dynamic exquisite cockpit.
International quality blue whale power: equipped with blue whale NE 1.4T high pressure
direct injection engine, the peak power is 116kw, the peak torque 260Nm, the surging power is
on the verge; the low fuel consumption of 5.9L per 100 km with 190 km more per tank of oil;
March,2020 Eado PLUS meeting the national 6th emission standards, fuel saving and environmental protection.
Embracing intelligent luxury driving cabin: adopting integrated dual 10.25 inch high-
definition large screen, in-call intelligent interactive system, PAB early warning auxiliary
braking system, pause and go full speed adaptive cruise, 360 ° look around dash cam to make
life more comfortable.
Intelligent health management system: through the "material selection and production
control system", strictly controlling the odor and VOC, equipped with "pm 0.1 filter guard +
healthy fresh air purification system" and self-drying air conditioning function, to create a
healthy, environmentally friendly and comfortable driving environment for users.
CS55PLUS blue whale is another fashionable and personalized SUV for young people in
the compact SUV market under the international R&D pattern of Changan Automobile.
Style design: CS55PLUS blue whale version, with a new family design, stimulates the
visual impact of lava explosion. Equipped with Obsidian gradual change grille, fierce battle
unbounded LED high and low light integrated headlamp, 18 inch edge shadow wheel hub, laser
sword through LED tail lamp, the first to catch the eye; technology care for central control
layout, hot blood gushes for driving and control; CS55PLUS blue whale version with both
CS55PLUS
cutting edge and momentum, making the eye-catching style further.
August,2020 Blue Whale
Blue whale power: CS55PLUS blue whale version is equipped with blue whale NE1.5T
Version
high-pressure direct injection engine, which interprets the leading R&D concept of "strength,
quiet and clean" with a number of global first launches and global leading technologies. The
maximum rated power is 132kw, and the maximum torque of 300Nm can be output at
1250rpm, which gives consideration to power performance, energy saving and environmental
protection.
Intelligent interaction: CS55PLUS blue whale version is equipped with IFLYTEK 2.0
system, which makes the system operation more fluent. 360° HD panoramic image, 360° dash
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Chongqing Changan Automobile Company Limited 2020 Annual Report
cam, intelligent voice interaction for every trip.
Quality technology: CS55PLUS blue whale version, from the advanced wisdom factory,
with wisdom to creating first-class quality. Through a series of high standard and rigorous tests
covering active and passive safety, high standard vehicle quality is ensured.
Safety defense: CS55PLUS blue whale version, equipped with high-strength energy
absorbing body, 6 airbags configuration, TPMS intelligent tire pressure monitoring, etc., to
fully protect the body safety and help you cross the border.
Comfortable driving: the whole system is equipped with fresh air system, PM0.1filter,
enhanced four-wheel independent suspension system, Nexteer electronic power steering
system, CS55PLUS blue whale version, not afraid of bumpy road, just enjoy the road ahead.
CS75 plus is based on the concept of Changan performance family. Through the upgrade
of platform architecture and power system, it comprehensively considers the balance of various
performances under the scenario of users, and is positioned as the car of A+class SUV
tomorrow. With advanced product strength, it can meet the user's future car demand.
Design: CS75 plus is designed by a European design team composed of more than 200
foreign designers from 24 countries. It adopts the design concept of Yuyue, with tension front
face, dynamic posture and coordinated color, making the whole car full of future design style.
Wisdom: the high matching vehicles are equipped with the intelligent functions of
CS75PLUS APA5.0, mobile phone bluetooth key and so on. The AT model of Changan, equipped with the
September,2020
2021 Version intelligent system of the Indus vehicle, is developed by Changan and Tencent Integrate
Tencent's ecological resources and become a truly intelligent Internet vehicle.
Power: it is equipped with the classic power combination "blue whale 1.5TGDI + Aisin
6AT" and the gold power combination "blue whale 2.0 TGDI + Aisin 8AT". Both engines have
won the title of "top ten engines of China heart", and the transmission is the latest generation
of Aisin transmission.
Safety: CS75 plus has won 6 outstanding achievements in C-NCAP five-star safety and China
Insurance Research Institute collision. It is equipped with 6 airbags and 38.3% high strength
steel, leading the level of the same class.
UNI-T meets the diversified needs of the young generation of consumers through its new
design, powerful intelligent vehicle system, new blue whale power and platform architecture,
and L3 level automatic driving technology.
Lattice gravity: UNI-T grille adopts parametric design, based on the geometric application
of multivariate function, accurately arranges 150 diamond elements; abandons complex body
lines, sculptures light and shadow changes with simple and elegant "pure surface"; hidden door
handle and body surface are integrated; the original V-shaped spoiler is one of the symbolic
June, 2020 UNI-T designs of UNI-T, whose inspiration comes from aerodynamics A new swept wing design.
Smart gravity: the integrated dual 10.3 inch screen design is adopted to provide AI active
services such as exclusive greeting for getting on, bright screen for sight, distraction reminder
for getting off the highway, and advanced technology configuration such as L3 level automatic
driving in the future. In addition, it is equipped with incall vehicle remote control system and
IACC integrated adaptive cruise system for intelligent assistance and easy travel.
Racing gravity: the blue whale NE1.5T high pressure direct injection engine carried by
UNI-T coming from the blue whale NE power platform, the first modular engine development
18
Chongqing Changan Automobile Company Limited 2020 Annual Report
platform in China. Its maximum power is 132kw (180hp), 1250rpm (1250-3500rpm) can
output the maximum torque up to 300N.m, so that the turbine hysteresis is reduced to not be
perceived by the driver, and the fuel consumption per 100 km is 6.3L, meeting the national 6B
emission, taking into account the power performance, energy saving and environmental
protection. Equipped with a new blue whale 7-speed wet dual clutch transmission, quick
response, no sense switching, calmly cope with various working conditions. The
comprehensive transmission efficiency is as high as 94.3%, and the surging power has no
damage to output.
Safety and health: PM0.1 filtering system is equipped in the whole system to
comprehensively filter virus; steel strength is up to 1500MPa, and high strength steel and above
account for 61%, making the body of steel; meanwhile, AEB automatic emergency braking
auxiliary system, LDW lane departure warning and other active intelligent safety systems are
equipped to provide all-round safety protection.
Oushang X5 is a brand new strategic model of Oushang automobile. It has four super
product forces: super sense design, super moving force, super sense intelligence, super sense
space, and refreshes the new benchmark of sport SUV.
Oushang X5 is the first SUV to show the beauty of light and shadow with the brand-new
"shaping light" aesthetic design. Inspired by light, Oushang X5 creates the most wonderful
light and shadow flow with the new body shape by designing the dynamic body surface. It has
the lowest center of mass height of 630 mm and the widest body of 1860 mm. It perfectly
presents the body surface of wide body and low prone motion posture, and makes light and
shadow flow’s form and spirit, speed and power are displayed incisively and vividly.
Oushang X5 is equipped with blue whale NE 1.5T high-pressure direct injection engine,
blue whale 7-speed wet dual clutch transmission and racing sports chassis adjustment. The
November,2020 Oushang X5
maximum power is 132kw, the maximum torque is 300Nm, and it has 180 powerful
horsepower. At the same time, starting response time is only 360ms, acceleration speed 0-
60km/h is only 3.63s, surging new power with speed and power, completely release the
dynamic.
Cool and fun with the latest generation of smart power. Onstyle3.0 intelligent ecosystem
caters to the needs and characteristics of modern young people's car life, brings them a new
experience of fast, smart, simple and pleasant, and comes with FOTA auto upgrade function.
There are also intelligent systems such as face recognition, remote vehicle control, the car KTV,
track mode, etc. through intelligence and technology. Oushang X5 is born for young people. It
is dedicated to become the first high gloss car for contemporary young people with dynamic
appearance and sports soul in mind.
The 2021 Oushang X7 is a popular urban SUV. It is sincerely recommended by 100
thousand old car owners to continue its popularity. With the "three good" label of "good
looking, good driving, good fuel saving", it will bring more comfortable and intelligent driving
experience for the enterprising family of the popular generation. The 2021 Oushang X7 adopts
December,2020 Oushang X7
the design concept of "natural aesthetics" in appearance design, and is recognized by the
international CMF Design Award; 2780mm super long wheelbase brings super comfortable
riding space and 140mm comfortable leg space in the second row at the same time; open
Onstyle intelligent Internet connected vehicle system is equipped with internal and external
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Chongqing Changan Automobile Company Limited 2020 Annual Report
dual camera face recognition system, supporting APA 5.0 one click automatic parking,
combined with Huawei hicar, realizes the full scene experience with mobile phone as the core;
Oushang X7 is equipped with bluecore 1.5TGDI aluminum engine + blue whale 7-speed wet
dual clutch transmission power combination, 8 million km rigorous test verification, shift
sensitive and smooth, more fuel-efficient; car height strong steel accounted for 75%, plus front
airbag + front side airbag combination, can maximize the protection of driving safety. PM0.1
high efficiency anti-virus filter is equipped with wake-up LED light group and 3000lm
millisecond level lighting, which brings safe and intimate driving experience; flexible
subframe can absorb and attenuate vibration and noise from road surface, and upgrade NVH
performance in an all-round way.
5. Accelerate the promotion of "Beidou Tianshu" and "Shangri La" plans, technology leading product innovation
Accelerate the implementation of "Beidou Tianshu" plan, establish software technology company, build vehicle software platform,
and deeply cultivate software to define vehicle. The second "Beidou Tianshu" achievement conference was held, and the Tianshu
science and technology project cooperation agreement was signed with Chongqing Municipality government, focusing on the
development of automatic driving platform above L4 level, the development of automatic driving vehicle, and the commercial operation
of automatic driving, so as to realize the mass production and large-scale commercial operation of driving platform after 2025. The
first mass production experience of L3 level automatic driving in China has been completed; the industry's first line of sight bright
screen, automatic ventilation of smoking, lip recognition, etc. have promoted the evolution of intelligent interaction from "voice based"
to "voice + video". The company participated in and led the formulation of the first international standard of China's automobile
multimedia, which marked the beginning of China's multimedia integration technology to the world.
The Company further promoted the "Shangri La" plan, completed the reform of the mixed ownership of Chang'an new energy,
and introduced the four party strategic investors. The company have mastered 17 core technologies including seven in one electric
drive assembly, pure electric platform EPA1、EPA2 and safety battery. Changan new energy's first smart power exchange demonstration
station, built with CATL, Aodong, State Grid, iron tower and other power exchange alliance partners, was officially opened to the
public and put into demonstration operation. It took only 30 seconds to replace the power battery once. The successful launch of blue
whale 2.0T longitudinal B prototype indicates that the research and development of Chang'an blue whale 2.0T longitudinal engine has
achieved phased results, which will further boost the light vehicle project to achieve cost reduction.
The Company focused on customers and developed high-quality products. UNI and classic series support each other while forming
a performance division. Classic products are added and popular products are overlapped; UNI series of high-end products shaped
interesting future mass producers of science and technology. The architecture of Chang'an ark has entered the application verification
stage, covering all A0-C models. Blue whale NE 1.5T engine won the title of "China heart" top ten engines in 2020, and successfully
challenged the Guinness world record of "longest live video" with full load operation. The Company focused on new technology
development, it won 10 awards in the 2020 "China automobile industry science and Technology Award", ranking first among
automobile enterprises; CS75 plus won the CCTV annual best intelligent connected vehicle Award; UNI won the "Horizon Cup" annual
intelligent SUV award of China's intelligent car, and won the first place in the 2020 "i-vista automatic driving challenge" automatic
parking and No.1 of independent brand of car in the automatic braking.
6. Build marketing system and improve customer experience
At the end of the reporting period, the company had 1617 cooperative distributors. The Company focused on customers, built a
collaborative marketing system of product planning, brand promotion and marketing tactics, and promoted the four efficiency changes
of "contact, making deal, customer acquisition and collaboration". By strengthening the channel carrying capacity, Chang'an passenger
car built new UNI service center, experience store and other channels with the channel point coverage rate significantly improved;
Oushang has implemented the differentiated store building strategy, and the prefecture level city coverage rate exceeded 70%.
Accelerate the digital transformation of marketing, operate UNI planet public domain platform and Chang'an gravity private domain
20
Chongqing Changan Automobile Company Limited 2020 Annual Report
APP, and directly connect to the three values of "marketing, users and ecology"; Oushang automobile uses Oushang style APP to realize
dealers' direct connection to customers and their orders.
In order to provide 19 million users with pleasant experience and temperature, Changan Automobile adhered to the service concept
of "fast, direct, accurate and interactive", started the "No.1 Project" - customer service project, unswervingly implemented the "five
promises", and transformed from serving customers to operating customers. The company carried out 28 operations such as "inventory,
channel upgrade, loan approval" to quickly respond to customer needs, improved customer experience and met customers' diversified
needs at the same time. The Company conducted the service product planning work, created professional, convenient, active and
pleasant service products, listened to the voice of customers, set up a team of chief experience officer, interacted with the company's
senior executives online. The Company launched the Online Changan encyclopedia sharing interactive platform for users to solve the
problems in the process of using the car with online a month cumulative customer visits more than 400 thousand. Customer satisfaction
continued to improve, in the report on customer satisfaction evaluation of 20 brand automobile 4S stores released by China Consumer
Association, Chang'an Automobile won the first place in service satisfaction of its own brand 4S stores with a high score of 84.2.
7. Continuously deepen joint venture and cooperation, and steadily improve business quality
The Company unswervingly pushed forward the "revitalization plan" of Changan Ford, focus on "two leading items, five major
improvements", and through a series of measures such as strengthening operation monitoring, increasing new product launch, and
implementing the optimization of marketing system, the Company promoted the steady improvement of Changan Ford's business
quality. Changan Ford gradually stabilized and picked up its sales volume, and achieved a year-on-year outperformance over the
industry in terms of annual sales volume, with a sales volume of 253 thousand vehicles, a year-on-year increase of 37.7%, accounting
for the market share increasing by 0.41% year-on-year, rising to the 12th place in the sales ranking of joint venture narrow sense
passenger car enterprises. Four brand-new models, including Ford Explorer and Lincoln adventurer were successfully launched, and
they achieved high attention and top sales in the market segments. Among them, Ford Explorer went on the market in July, and its
cumulative sales exceeded 10000 in three months. From October to December, its market share in the market segments was more than
20%, and its annual sales volume ranked third in the market segments.
Chang'an Mazda continued to create characteristic products and adhere to value marketing. The next generation Mazda 3 Axela X
ignition honor and Mazda CX-30 X ignition honor are officially listed; the next generation Mazda3 Axela has won six excellent
evaluations in the C-IASI collision test of China Insurance Research Institute, showing super safety strength. Chang'an Mazda defined
the future product plan, launched the next generation product project, implemented the digital marketing reform with innovative and
rich marketing ideas and forms, and continued to provide users with favorite products, technologies and service experience.
8. Actively build supporting system to meet the production demand of core parts
The Company actively promoted the continuous optimization and improvement of the supporting system through going out and
inviting in and opening up the supply chain channels, established a supplier library covering the whole industry so as to meet the
company's differentiated needs. At the same time, the Company optimized the supplier performance evaluation, so that the fittest can
be eliminated, and the supplier system can be activated, so as to strengthen the competition, reduce the procurement cost, and provide
support for the long-term operation of the enterprise. Different procurement strategies were formulated for different products: the
Company actively promoted the centralized procurement of bulk materials, integrated common brand businesses such as passenger
cars, Oushang and Kaicheng, centralized procurement volume, unified bidding points, and reduced the procurement costs; the Company
coordinated R&D, procurement and production, and actively promote platform and modular work. In the next five years, the value of
platform and modular parts will account for a large proportion through scale efficiency, the status of parts was reduced by 50%, and
the cost was reduced by 30%.
The Company actively promoted the strategic cooperation with suppliers according to the characteristics of product categories and
the company's development needs, worked with suppliers to give full play to their respective advantages, achieved resource sharing,
cost optimization, partnership depth cooperation, and established Chang'an supplier community with Chang'an characteristics. Based
on "mutual respect, value creation and benefit sharing", the Company encouraged suppliers to tap the potential of cost reduction and
jointly promote vave to achieve the situation of cost reduction, achievement sharing and benefit win-win.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
CS75 series, the main model of Changan Automobile, adopted a combination of self-made production and external procurement.
Key parts, such as blue whale direct injection engine, are independently researched and developed by Changan Automobile, which can
effectively control the cost and enhance the quality control of key parts through self-made. In cooperation with international first-class
parts enterprises, the Company purchased Aisin 8AT and 6AT transmissions and Chongqing Qingshan Industrial Co., Ltd 7-speed wet
dual clutch transmission, Berg Warner AWD all wheel drive system, and Wutong car link TINNOVE intelligent system. External
procurement integrated industry resources, selected suitable suppliers, made CS75 be safer and more intelligent, maximized enterprise
benefits, and provided support for continuous improvement of company performance.
II. Analysis of Main Business
1、Overview
Whether it is the same as the summary in the business discussion and analysis.
√ Yes □ No
2、Income and cost
（1）Composition of the operating revenue
Unit :Yuan
2020 2019
Share of Increase/decrease
Share of
operating on a y-o-y basis
Sum Sum operating
income (%)
income (%)
（%）
Operating revenue 84,565,544,146.58 100.00% 70,595,245,133.28 100.00% 19.79%
Industry
Automobile 84,565,544,146.58 100.00% 70,595,245,133.28 100.00% 19.79%
Products
Vehicles 82,795,178,990.48 97.91% 69,392,923,811.93 98.30% 19.31%
Provision of
labor services 1,770,365,156.10 2.09% 1,202,321,321.35 1.70% 47.25%
and others
Area
China 80,532,222,529.71 95.23% 67,531,869,212.59 95.66% 19.25%
Overseas 4,033,321,616.87 4.77% 3,063,375,920.69 4.34% 31.66%
（2）Accounted for more than 10% of the company's operating income or operating profit of the industry,
products or area
√ Applicable □ Not applicable
22
Chongqing Changan Automobile Company Limited 2020 Annual Report
Unit : Yuan
Increase/decre
Increase/decrease
ase on a year- Increase/decrease
Gross on a year-on-year
Operating Revenue Operating Cost on-year basis on a year-on-year
margin basis Operating
Operating Cost basis gross margin
Revenue (%)
(%)
Industry
Automobile 84,565,544,146.58 72,473,471,726.85 14.30% 19.79% 20.32% Down 0.38 points
Products
Sales of products 82,795,178,990.48 71,490,822,214.20 13.65% 19.31% 19.79% Down 0.35 points
The company's statistics scope of main business in the reporting period was adjusted, and the company has adjusted its main business
data last year according to the scope in the reporting period.
□Applicable √ Not applicable
（3）Is the income from sales in kind greater than the service income
√ Yes □ No Unit：One set
Increase/decrease on a
Industry Item 2020 2019
year-on-year basis (%)
Sales volume 2,003,663 1,759,916 13.85%
China 1,921,209 1,690,163 13.67%
Overseas 82,454 67,753 21.70%
Production volume 2,033,160 1,797,026 13.14%
Automobile Industry
China 1,950,706 1,729,273 12.80%
Overseas 82,454 67,753 21.70%
Stock volume 86,837 58,371 48.77%
Market share（%） 7.92% 6.81% Up 1.11 points
Note：The above sales volume and production volume are consistent with the date from the Company and its subsidiaries and JVs.
The analysis over market share is based on the data from China Automobile Industry Association. Changan PSA Peugeot Citroen
Automobile Co., Ltd. has been excluded from the data for 2019.
Notes to the year-on-year change of the relevant data by over 30%
√ Applicable □ Not applicable
Since the second half of 2020, the shortage of automotive chips has swept the world. As the new year approaches, the risk of chip
shortages has intensified. Changan Automobile has proactively stocked up to meet the needs of the Spring Festival peak season. At the
end of December, the scale of corporate inventories has increased year-on-year.
Production and operation of new energy vehicles
Unit：One set
Product Category Capacity status Production volume Sales volume
New energy passenger car 700 thousand 30,671 34,926
23
Chongqing Changan Automobile Company Limited 2020 Annual Report
New Energy Commercial Vehicle 170 thousand 2,422 2,187
Note：The above sales volume and production volume are consistent with the date from the Company and its subsidiaries and JVs.
The production capacity of new energy vehicles is in line with that of fuel vehicles.
（4）The company has signed a major sales contract as of the time of the fulfillment of this report
□ Applicable √ Not applicable
（5）Cost
Unit: Ten Thousand Yuan
2020 2019
Industry Ratio in Ratio in Increase/decrease on a
Item
classification Amount operation cost Amount operation cost year-on-year basis (%)
(%) (%)
Product Sale 7,149,082 98.64% 5,967,922 99.08% 19.79%
Automobile Provision of
labor
Production 98,265 1.36% 55,337 0.92% 77.58%
services and
others
Total 7,247,347 100.00% 6,023,259 100.00% 20.32%
（6）Notes to the change of the consolidated scope in the reporting year
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a new subsidiary, Chongqing Changan Automobile Software
Technology Co., Ltd., co-established Chongqing Changan Kaicheng Automobile Technology Co., Ltd. with Chongqing Linkong
Development Investment Group Co., Ltd., accounting for 83.64% of the equity, acquired Changan Weilai New Energy Automobile
Technology Co., Ltd., and a total of three companies were included in the scope of the consolidated statement. Chongqing Changan
New Energy Automobile Technology Co., Ltd. introduced strategic investors and its shareholding ratio was reduced to 48.95%. It was
no longer included in the scope of consolidation, and subsequent measurement was carried out according to the equity method.
（7）Significant change or adjustment of the business, products or services in the reporting period
□ Applicable √ Not applicable
（8）Main Customers and principal suppliers
Main Customers
Total sales amount to top 5 customers (RMB) 7,255,859,946.45
Proportion of sales to top 5 customers in the annual sales (%) 8.58%
Proportion of sales amount of the related party in the top 5 customers（%） 4.52%
24
Chongqing Changan Automobile Company Limited 2020 Annual Report
Top 5 customers
Unit : Yuan
Serial No. company Sales value proportion in total sales（%）
1 First 1,754,076,224.00 2.07%
2 Second 1,681,023,197.66 1.99%
3 Third 1,624,459,884.38 1.92%
4 Fourth 1,149,704,763.57 1.36%
5 Fifth 1,046,595,876.84 1.24%
total 7,255,859,946.45 8.58%
Other descriptions of major customers
□ Applicable √ Not applicable
Principal suppliers
Total purchase amount to top 5 suppliers (RMB) 10,409,278,935.75
Proportion of purchase to top 5 suppliers in the annual purchase (%) 14.56%
Proportion of purchase amount of the related party in the top 5 suppliers（%） 8.38%
Top 5 suppliers
Unit : Yuan
Serial No. Company name Purchase value Proportion in the total purchase(%)
1 First 3,684,739,124.13 5.15%
2 Second 2,310,795,366.63 3.23%
3 Third 1,516,055,918.29 2.12%
4 Fourth 1,526,698,062.32 2.14%
5 Fifth 1,370,990,464.38 1.92%
Total 10,409,278,935.75 14.56%
Other descriptions of major suppliers
□ Applicable √ Not applicable
3、Expenses
Unit: Ten Thousand Yuan
increase/decrease
Item 2020 2019 Description of major changes
（%）
Selling expense 3,413,296,854.70 4,591,170,885.94 -25.66%
Management New energy points and employee
4,273,555,030.82 2,265,231,518.65 88.66%
expense compensation increase
Financial expense -210,224,449.63 -190,849,511.73 -10.15%
25
Chongqing Changan Automobile Company Limited 2020 Annual Report
R&D expense 3,153,888,007.29 3,169,063,761.13 -0.48%
4、Research and Development Expenditure
√Applicable □ Not applicable
In 2020, Changan Automobile invested 4.142 billion yuan in product and technology project development, and continued to
build industry-leading research and development strength.
R&D investment Table
2020 2019 Changes in ratio
Labor Number 6,636 7,829 -15.24%
Proportion of labor in the Company 16.47% 21. 30% Down 4.83 pionts
Investment value (yuan) 4,141,752,049.28 4,478,435,313.28 -7.52%
Proportion of investment in the
4.90% 6.34% Down 1.44 pionts
revenue
Capitalization (yuan) 987,864,041.99 1,309,371,552.15 -24.55%
Proportion of capitalization in R&D
23.85% 29.24% Down 5.39 pionts
investment
Note: In 2020, Chongqing Changan New Energy Automobile Technology Co., Ltd. was not included in this report.
Significant Change of the proportion of R&D investment in the revenue
□ Applicable √ Not applicable
Significant change of the proportion of capitalization in the R&D investment
□ Applicable √ Not applicable
5、Cash Flow
Unit: Yuan
Item Increase/decrease
2020 2019
（%）
Subtotal of cash inflows from operating activities 89,514,237,309.63 75,201,286,289.37 19.03%
Subtotal of cash outflows from operating activities 78,838,283,830.39 71,319,538,050.98 10.54%
Net cash flows from operating activities 10,675,953,479.24 3,881,748,238.39 175.03%
Subtotal of cash inflows from investing activities 6,821,367,307.44 2,291,173,505.54 197.72%
Subtotal of cash outflows from investing activities 3,216,664,440.15 6,085,786,845.19 -47.14%
Net cash flows from investing activities 3,604,702,867.29 -3,794,613,339.65 195.00%
Subtotal of cash inflows from financing activities 8,600,917,401.42 337,719,805.56 2446.76%
Subtotal of cash outflows from financing activities 1,553,526,997.52 738,294,133.17 110.42%
26
Chongqing Changan Automobile Company Limited 2020 Annual Report
Net cash flows from financing activities 7,047,390,403.90 -400,574,327.61 1859.32%
Net increase in cash and cash equivalents 21,295,493,382.74 -287,678,939.91 7502.52%
Notes to the year-on-year change of the relevant data by over 30%
√ Applicable □ Not applicable
In 2020, the “net cash flow from operating activities” increased by RMB 6.794 billion from the previous year, mainly due to the
significant increase in “cash received from the sale of goods and the provision of labor services” compared with the previous year; the
“net cash flow from investment activities” was higher than the previous year. The annual increase of 7.399 billion yuan was mainly
due to the substantial increase in "cash received from investment income" over the previous year; and "cash paid for the purchase and
construction of fixed assets, intangible assets and other long-term assets" and "cash paid for investment" "Substantially decreased from
the previous year; "Net cash flow from financing activities" increased by 7.448 billion yuan from the previous year, mainly due to the
"cash received from absorbing investments" and "cash received from borrowings" significantly compared to the previous year increase.
Notes to the significant difference between cash flow from operating activities and net profit in the reporting year
√ Applicable □ Not applicable
As for the significant difference between cash flow from operating activities and net profit in the reporting period, refer to the
item “Supplementary Information of the Cash Flow Statement” in the Financial Statements Note 56.
III. Analysis of non principal business
□ Applicable √ Not applicable
IV. Assets and liability
1、The significant changes of the assets
Unit: Yuan
Dec.31,2020 Dec.31,2019
Ratio in Ratio in Increase/
Item instructions
Amount total assets Amount total assets decrease (%)
（%） （%）
Net cash flow from operating
activities increased, net cash
Cash 32,001,775,600.07 26.47% 10,066,171,353.48 10.31% 16.16% flow from investing activities
increased, net cash flow from
financing activities increased
Mainly due to the changes in
the scope of consolidation in
the current period, the
accounts receivable in the
Notes receivable 2,141,197,139.45 1.77% 838,314,076.82 0.86% 0.91%
original consolidation scope
were turned into accounts
receivable outside the
consolidation scope
Inventory 5,967,516,230.57 4.94% 3,375,441,488.37 3.46% 1.48% In order to cope with the peak
27
Chongqing Changan Automobile Company Limited 2020 Annual Report
sales season before the Spring
Festival, increase inventory
reserves in advance
Investment property 6,876,138.16 0.01% 7,102,849.72 0.01% 0.00%
Long-term equity
12,109,089,795.67 10.01% 11,008,336,989.09 11.28% -1.27%
investments
Fixed assets 26,436,757,696.96 21.86% 26,939,490,554.19 27.60% -5.74%
During the reporting period,
Construction in
1,048,036,148.70 0.87% 1,729,803,028.43 1.77% -0.90% the project was converted to
progress
fixed assets
During the epidemic, the
company obtained special
Short-term loans 578,000,000.00 0.48% 229,580,000.00 0.24% 0.24% loans from financial
institutions to deal with
uncertain risks
Caused by the company's new
Long-term loans 955,300,000.00 0.79% 55,300,000.00 0.06% 0.73%
special loan
2、Assets and liabilities measured by fair value
Unit: Yuan
Profit and loss from Accumulated Impairment
Amount
Amount at year changes in fair fair value provisions in Amount sold in the Amount at year
purchased in the
Item beginning value in the current changes included the reporting current period end
current period
period in equity period
Financial assets
Transactional
-
financial 2,419,476,200.00 2,035,390,665.86 204,254,400.00
4,250,612,465.86
assets
Equity
instrument 734,506,100.00 -39,516,100.00 -3,000,000.00 691,990,000.00
investment
Subtotal of
-
financial 3,153,982,300.00 2,035,390,665.86 -39,516,100.00 896,244,400.00
4,253,612,465.86
assets
Others - - - - -
-
Total 3,153,982,300.00 2,035,390,665.86 -39,516,100.00 896,244,400.00
4,253,612,465.86
Financial
- - - - - -
liabilities
28
Chongqing Changan Automobile Company Limited 2020 Annual Report
Whether the measurement attributes of main assets in the reporting period have significantly changed
□ Yes √ No
3、Property rights limits by the end of report period
Item Book value at the end of this year Limited Reason
Cash 1,345,807,542.44 Used to open the acceptance deposit
Notes receivable and
7,320,550,460.00 Notes receivable pledge to issue notes payable
accounts receivable
Obtain liquidity borrowings and obtain commercial
Intangible assets 17,661,564.48
acceptance bills
Obtain liquidity borrowings and obtain commercial
Fixed assets 22,953,779.68
acceptance bills
Total 8,706,973,346.60
V. Analysis of Investment
1、General information
√ Applicable □ Not applicable
External investment
Investment Amount in
the report period Investment Amount in 2017（RMB） Variance rate
（RMB）
3,790,000,000 1,800,000,000 110.56%
Particulars of investees
Proportion in the
Company Name Principal business
investees’ equity (%
Licensed items: technology import and export; import and export agency; import
and export of goods (items that are subject to approval in accordance with the
law can only be carried out after the approval of the relevant departments, and
the specific business items are subject to the approval results)
General projects: technical services, technology development, technical
Zhongqi Chuangzhi consultation, technical exchanges, technology transfer, technology promotion;
3.125%
Technology Co., Ltd. industrial design services; software development; industrial automatic control
system device manufacturing; industrial automatic control system device sales;
mechanical parts and components sales; electric power Sales of electronic
components; sales of electronic products; research and development of auto
parts; retail of auto parts; wholesale of auto parts; sales of new energy vehicle
production and testing equipment; sales of new energy vehicles; motor vehicle
29
Chongqing Changan Automobile Company Limited 2020 Annual Report
modification services; integrated circuit manufacturing; electronic components
Device manufacturing; engineering and technical research and experimental
development; electrical signal equipment manufacturing; sales of new catalytic
materials and additives; research and development of electronic special
materials; battery sales; battery manufacturing (except for items subject to
approval according to law, independent of business license Carry out business
activities)
Licensed items: car rental, technology import and export, import and export of
goods (items that are subject to approval in accordance with the law can only be
carried out after the approval of the relevant departments, and the specific
business projects are subject to the approval documents or licenses of the relevant
departments)
General items: new automobile sales, automobile parts wholesale, automobile
parts and accessories manufacturing, new energy automobile sales, new energy
automobile electrical accessories sales, automobile parts research and
development, technical services, technical development, technical consultation,
Chongqing Changan
technical exchanges, Technology transfer, technology promotion, engineering
Kaicheng Automobile 83.64%
and technology research and experimental development, software development,
Technology Co., Ltd.
information consulting services (not including licensing information consulting
services), mold manufacturing, mold sales, domestic cargo transportation
agency, energy saving management services, energy recovery system research
and development, New energy prime mover equipment manufacturing,
emerging energy technology research and development, Internet sales (except
for the sale of commodities that require licenses), old automobile sales,
automobile spare parts retail, motor vehicle repair and maintenance (except for
items subject to legal approval, business operations License to carry out
business activities independently according to law)
Changan brand series cars, other passenger cars, light trucks, special vehicles
and (pure electric) new energy vehicles; design, manufacturing, product sales
Hefei Changan
and after-sales service of auto parts; warehousing (except dangerous goods) 100%
Automobile Co., Ltd.
services, house leasing; technology Consultation and services (should be subject
to administrative permission and shall not operate without permission).
Note: The above are investment projects approved by the board of directors during the reporting period. For specific information, please
refer to the "Announcement on Related Party Transactions of T3 Technology Platform Companies" (Announcement Number: 2020-
06), "Announcement on Resolutions of the First Meeting of the Eighth Session of the Board of Directors" (Announcement Number:
2020-56), and "The Eighth Session Announcement of Resolutions of the Fourth Meeting of the Board of Directors (Announcement
No.: 2020-76).
2、Major equity investment in the reporting period
□ Applicable √ Not applicable
30
Chongqing Changan Automobile Company Limited 2020 Annual Report
3、Major non-equity investment in the reporting period
Please refer to Notes V to Financial Statement Item 13” Construction in progress”.
4、Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
Number of Percentage Number of Percentage
Book value at
Securiti Securities Initial shares held at of shares shares held at of shares Reporting period
Securities the end of the Accounting Source of
es short investment the beginning held at the the end of the held at the profit and loss
code period account shares
variety name cost（Yuan） of the period beginning of period end of the （Yuan）
（Yuan）
（Share） the period （Share） period
Southwest Transactional Initial
Stock 600369 50,000,000 35,500,000 0.63% 33,630,000 0.51% 180,929,400.00 10,891,844.22
Securities financial assets investment
Transactional Initial
Stock 300750 CATL 1,000,000,821 22,999,575 1.06% 0 0 0.00 1,989,583,062.47
financial assets investment
Total 1,050,000,821 58,499,575 -- 33,630,000 -- 180,929,400.00 2,000,474,906.69 -- --
(2) Derivative Investments
□ Applicable √ Not applicable
5、Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: ten thousand yuan
The total
The total Cumulative Proportion The total Amount of
amount of The total The purpose
amount of total amount of total amount of funds raised
funds raised amount of and destination
Year of Recruitment Total funds funds raised of funds raised funds after being
in the funds raised of the raised
Raising method raised during the raised for funds for raised has idle for
current has been funds not yet
reporting change of cumulative not been more than
period has used used
period purpose changes used two years
been used
Non-public Deposited in a
2020 offering of 598,608.41 325,207.93 325,207.93 0 0 0% 273,400.48 special account 0
shares for raised funds
Total -- 598,608.41 325,207.93 325,207.93 0 0 0% 273,400.48 -- 0
Description of the overall use of raised funds
The board of directors of the company believes that the company has disclosed the storage and actual use of the company’s raised funds in a
timely, true, accurate and complete manner in accordance with the "Guidelines for the Standardized Operation of Listed Companies on the Shenzhen
31
Chongqing Changan Automobile Company Limited 2020 Annual Report
Stock Exchange" and relevant format guidelines. Violations of fund management. The company has faithfully fulfilled its obligation to disclose the
investment direction and progress of the raised funds.
(2) Promise of raised funds
√ Applicable □ Not applicable
Unit: ten thousand yuan
Total funds raised 598,608.41 Total funds raised this year 325,207.93
The total amount of funds raised during the reporting
Not applicable
period
The total amount of funds raised has been invested 325,207.93
Proportion of total raised funds for cumulative
Not applicable
changes
Whether
Total the Reasons
Cumulative Investment Whether
committed Commitment feasibility for not
Whether Adjusted investment progress as the project Whether it
Commitment to investment investment Amount Benefits of the reaching
the project total amount as of the end has reached meets the
investment of raised amount as of invested realized this project the
has been investme of the end of the the expected
projects funds the end of the this year year has planned
changed nt of the period% (3) intended return
period (1) changed constructi
(Note 1) period (2) = (2)/(1) usable state
significant on period
ly
H series fifth
phase, NE1
series first phase
engine Not Not Not
No 141,568.38 141,568.38 141,568.38 41,447.94 41,447.94 29% No No
production applicable applicable applicable
capacity
construction
project
Crash
Laboratory
Capacity Not Not Not
No 11,505.75 11,505.75 11,505.75 567.96 567.96 5% No No
Upgrade applicable applicable applicable
Construction
Project
CD569
production line Not Not Not
No 15,576.22 15,576.22 15,576.22 57.08 57.08 0% No No
construction applicable applicable applicable
project
Hefei Changan
Automobile Co.,
Not Not Not
Ltd. adjustment No 249,958.06 249,958.06 249,958.06 103,134.95 103,134.95 41% No No
applicable applicable applicable
and upgrade
project
Supplementary Not Not Not
No 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 100% No No
working capital applicable applicable applicable
Total 598,608.41 598,608.41 598,608.41 325,207.93 325,207.93 54% - - - - -
The situation
and reasons
for not
reaching the
planned
progress or There was no such situation during the reporting period.
expected
benefits
(divided into
specific
projects)
Description of
major changes
in the There was no such situation during the reporting period.
feasibility of
the project
Preliminary
investment
On November 18, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved the "Proposal on the Use
and
of Raised Funds to Replace Early Investment in Own Funds", and agreed to use raised funds of RMB 1,378,818,553.05 to replace pre-invested investment
replacement
projects. Self-funded. The replacement of the raised funds has been verified by the Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special
of raised funds
report issued by Ernst & Young Hua Ming Certified Public Accountants (special general partnership).
investment
projects
Temporarily
supplement
liquidity with There was no such situation during the reporting period.
idle raised
funds
32
Chongqing Changan Automobile Company Limited 2020 Annual Report
Cash
management
of idle raised
funds and There was no such situation during the reporting period.
investment in
related
products
Permanently
supplement
working
capital with There was no such situation during the reporting period.
over-raised
funds or return
bank loans
The amount of
funds raised
and the reason The fundraising project is still in progress, and the raised funds have not been used up yet.
for its
formation
Other use of
There was no such situation during the reporting period.
raised funds
Note 1: The actual net proceeds raised by the company is RMB 5,986,084,079.35, which is lower than the total planned investment
amount of the raised funds disclosed in the issuance plan. According to the issuance plan, the part of the funds raised from the issuance
that cannot meet the funding needs of the project will be solved by the company's self-raised funds.
(3) Changes in raised funds
□Applicable √ Not applicable
VI. Selling of major assets and major equity
1、Selling of major assets
□Applicable √ Not applicable
There is no selling of major assets.
2、Selling of major equity
√ Applicable □Not applicable
On December 3, 2019, Chongqing Changan New Energy Vehicle Technology Co., Ltd. (hereinafter referred to as "new energy
technology company"), a wholly-owned subsidiary of Changan Automobile, introduced four strategic investors. After the capital
increase is completed, the company's share of the new energy technology company's equity has dropped from 100% to 48.9546%. For
details, please refer to the “Announcement on the Public Investment Increase of the Wholly-owned Subsidiary Subsidiary Company
and the Company’s Abandonment of Priority Subscription of Capital Contributions to Capital Increase and Capital Increase”
( Announcement number: 2019-67). On January 13, 2020, the matter was reviewed and approved by the first extraordinary general
meeting of shareholders in 2020 (Announcement No. 2020-04). On January 20, 2020, new energy technology company completed the
industrial and commercial change registration. For details, please refer to the "Announcement on the Progress of the Wholly-owned
Subsidiary Subsidiary's Capital Increase by Public Listing and the Company's Abandonment of Capital Increase and Share Priority
Subscription of Investment Rights" (Announcement Number : 2020-04).
On December 30, 2019, Changan Automobile and Shenzhen Qianhai Ruizhi Investment Co., Ltd. (hereinafter referred to as
"Qianhai Ruizhi") signed the "Equity Transfer Agreement" and transferred all the 50% equity of Changan PSA to Qianhai Ruizhi. For
details, please refer to the "Announcement on the Sale of Equity Interests in Joint Ventures" (Announcement No. 2020-02). On January
13, 2020, the matter was reviewed and approved by the first extraordinary general meeting of shareholders in 2020 (Announcement
No. 2020-04). On May 21, 2020, the company completed the industrial and commercial change registration. For details, please refer
33
Chongqing Changan Automobile Company Limited 2020 Annual Report
to the "Announcement on the Progress of the Sale of Equity in Joint Ventures" (Announcement Number: 2020-42).
VII. Analysis of main holding companies and equity companies
√ Applicable □Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10% of net profits
Unit: ten thousand yuan
Main
Registered Equity Total
Name Main businesses operating Net profit
capital held assets
income
Zhenjiang Demao Hairun Equity Engaged in non-securities equity
Investment Fund Partnership (Limited 150,001 100% investment activities and related 135 - 199,097
Partnership) consulting business
Chongqing Changan Auto Union
8,850 100% Lease 130,139 9,297 -38,369
Technology Co., Ltd.
Changan Mazda Automobile Co. Ltd 11,097USD 50% Produce and sell auto and parts 1,134,653 1,726,463 147,568
Investment management,
Nanchang Jiangling Investment Co., Ltd. 100,000 50% industrial investment and asset 465,069 - -107,202
management
Chongqing Changan New Energy
20,223 48.95% Produce and sell auto and parts 568,443 214,791 -116,190
Automobile Technology Co., Ltd.
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a new subsidiary, Chongqing Changan Automobile Software Technology
Co., Ltd., co-established Chongqing Changan Kaicheng Automobile Technology Co., Ltd. with Chongqing Linkong Development
Investment Group Co., Ltd., accounting for 83.64% of the equity, acquired Changan Weilai New Energy Automobile Technology Co.,
Ltd., and a total of three companies were included in the scope of the consolidated statement. Chongqing Changan New Energy
Automobile Technology Co., Ltd. introduced strategic investors and its shareholding ratio was reduced to 48.95%. It was no longer
included in the scope of consolidation, and subsequent measurement was carried out according to the equity method.
Acquisition and disposal of
On the overall production and operation
Name subsidiaries during the reporting
and performance impact
period
Chongqing Changan Automobile Software
Newly established No major influence
Technology Co., Ltd.
Changan Weilai New Energy Automobile Business combination not under
No major influence
Technology Co., Ltd. common control
Chongqing Changan Kaicheng Automobile
Newly established No major influence
Technology Co., Ltd.
Chongqing Changan New Energy Automobile
Dilution of equity Major influence
Technology Co., Ltd.
34
Chongqing Changan Automobile Company Limited 2020 Annual Report
VIII. Structural main business under the company control
□Applicable √Not applicable
IX. The company's future development prospect
1. Industry pattern and trend
(1) New era: the global automobile industry undergoing profound changes, and the new era breeding new opportunities.
Macro environment: the world is facing a great change that has not happened in a century. The fourth industrial revolution
promotes the transformation of global economic growth momentum, with an average annual growth rate of 2.5% in the next five years.
China held the Fifth Plenary Session of the 19th CPC Central Committee to start a new journey of building a modern socialist country
in an all-round way, with an average annual economic growth of 5.2% in the next five years.
Policy orientation: guide the automobile industry to "zero emission" transformation. The government should improve the
consumption environment, encourage car sales in the countryside, trade in old cars for new ones, and use new energy, so as to stabilize
the sustained and good development trend of the industry. The government will accelerate the construction of standards, infrastructure
and systems.
Industry trend: new technologies such as electrification, intellectualization and digitization accelerated the innovation and
integration. New energy has entered a period of rapid development, automatic driving L3 has entered a period of popularization, and
L4 has gradually entered into commercial operation. Global auto companies are restructuring their business: product function, customer
ecology and business model. Global auto sales grow by 3% annually, and China's first market position is more consolidated, with an
average annual growth of more than 3-4%.
Consumption characteristics: the third and fourth tier cities will be the main contribution of new car increment in the future. New
energy, special vehicles, second-hand cars and other markets have great potential for growth. The additional replacement contributed
more than 50% to the sales of new cars. China has entered the third consumer society, and its consumption values are moving towards
quality, high-end and personalized characer.
(2) New pattern: China's auto industry speeding up the reshuffle and reshaping the competition pattern
The survival of the fittest is accelerated, Matthew effect is highlighted, and leading enterprises of independent brands rise. The
stable share of independent brands can be maintained at about 30%. With the expansion of competition and cooperation fields brought
by industrial transformation, enterprises need to build core competitiveness, strengthen cooperation, integrate global cross-border and
peer high-quality resources to become an efficient way to enhance competitiveness. The overseas expansion of Chinese automobile
enterprises is the only way to become stronger. The 2022 is the turning point of joint venture development, and the cooperation pattern
will be reconstructed.
(3) New strategy: brand upward and four modernizations transformation being the theme of Chinese brand transformation
The strategic transformation of major Chinese brands tends to be the same, focusing on five aspects: stronger autonomy, brand
upward, digital transformation, ecological cooperation and overseas expansion. The planning of domestic automobile enterprises has
changed from scale expansion to focus on development quality.
2. Company development strategy
The company adheres to the new development concept, persist in innovation driven, adhere to open cooperation, adhere to the
transformation and development, and guide the development of China's national automobile brand with the development of high quality.
Strengthen the direction of the third entrpereneurship, and accelerate the transformation to an intelligent low-carbon travel technology
company by strengthening the main business, fast transformation, seizing the market and building the ecology. Strengthen
manufacturing advantages, speed up the improvement of scientific and technological capabilities, take science and technology as the
means, and "intelligent, electric" as the characteristics, promote the development of the company to the sharing industry and ecological
35
Chongqing Changan Automobile Company Limited 2020 Annual Report
industry, and form a "new automobile + new ecological" industrial company.
3. Business plan
The business objective of the board of directors of the company in 2021 is to produce and sell more than 2.15 million vehicles. In
order to achieve the above goals, the company takes "firm transformation, innovative breakthrough, digital drive, quality improvement
and efficiency" as the key, focuses on revenue, cost and profit, strengthens marketing traction and pays close attention to business
quality. The Company will focus on the following work: firstly, pay close attention to the implementation of strategy to transform to
intelligent low-carbon travel technology company; secondly, promote the innovation and breakthrough to drive transformation and
upgrading; thirdly, pay attention to income growth, consolidate the foundation and do incremental reform to promote high-quality
development; fourthly, strive for cost breakthrough to achieve cost reduction in the whole region and promote quality and efficiency
improvement; fifthly, improve efficiency to build "efficiency" as the core of the organization; Sixthly, build the ability to create
differentiated competitive advantage; seventhly, strengthen brand promotion and cultural innovation to form a strong Chinese brand
image and strong IP; eighthly, strengthen basic guarantees and lead high-quality development.
4. Capital expenditure plan of the company in 2021
In order to achieve the strategic objectives of the company, it is estimated that the investment plan of the company and its
controlling subsidiaries will be 3.56 billion yuan in 2021, including 2.27 billion yuan in fixed assets and 1.29 billion yuan in equity
investment. Fixed assets investment has continuously focused on new products and R&D capacity construction, increased investment
in high-end new energy products, and continuously improved core R&D capabilities such as intelligence and modeling and digital
operation capabilities. Equity investment mainly supports the development of middle and high-end brands, strengthens the R&D and
operation investment of high-level automatic driving technology, and continues to layout travel and industrial ecological development.
The company will study and formulate various channels' fund-raising plan and fund use plan according to the project progress and the
operation and financing environment, so as to improve the efficiency of fund use and reduce the cost of funds.
5. Possible risks
Firstly, the risk of COVID-19.
COVID-19 sporadic risk has not yet been completely eliminated, and for a longer period of time, our country needs to maintain
internal anti rebound and external input control measures. Once sporadic epidemic occurs, travel control will be strictly implemented
in medium and high-risk areas, and there may be local impact on customer collection at sales terminals.
Countermeasures: firstly, speed up the process of new marketing layout, increase online promotion and service, strengthen user
contacts, and strive to control the market impact to the minimum; secondly, strengthen the service experience of users in the whole
process of car purchase and use by strengthening auto finance and other post market services.
Secondly, the risk of macroeconomic growth falling short of expectations.
On the one hand, China's economic development is still in the stage of structural adjustment, transformation and upgrading, and
economic growth is still facing downward pressure. On the other hand, the world economy will still face uncertainties and risks in
2021. Firstly, the vaccine can not be popularized globally within this year, and the effectiveness of the vaccine still needs to be further
verified; secondly, the hidden danger of financial crisis caused by the huge debts of many countries still exists. After the outbreak of
the epidemic, many countries generally adopted large-scale loose monetary policy and financial rescue measures, which led to the rise
of global public debt, limited the policy room for maneuver, and weakened the ability to deal with the crisis; thirdly, Global trade
protectionism may continue to affect the recovery of the world economy. Western populism and protectionism will not disappear in a
short time. Trade frictions may still cause tension in international economic and trade relations and inhibit market confidence and
economic recovery momentum. As an alternative consumption, automobile has a strong correlation with the macroeconomic situation,
residents' employment and income expectations. If the macroeconomic growth is less than expected, it may lead to the lack of consumer
confidence.
Countermeasures: strengthen the research on the macroeconomic situation. The company has formed a research and judgment
mechanism of daily, weekly, monthly and quarterly information tracking and strategic environment. On the basis of fully studying and
36
Chongqing Changan Automobile Company Limited 2020 Annual Report
judging the situation, the company has made a good plan to deal with the challenges of the external environment, timely adjusted its
business strategy, and made scientific response.
Thirdly, the risk of increasing competition in the industry.
On the one hand, after the conclusion of RCEP and China-EU investment agreement, foreign brands may accelerate China's market
layout and intensify market competition. On the other hand, the products of domestic emerging automobile manufacturers are
accelerating to go on the market, while the weak brands are being eliminated in the competition, the enterprise integration and
reorganization are speeding up, and the change of products and brands is speeding up.
Countermeasures: on the one hand, strengthen technological innovation, accelerate product upgrading and new product
introduction, and enhance product competitiveness; on the other hand, focus on improving organizational efficiency, accelerate the
pace of reform, vigorously promote organizational mechanism reform, fully stimulate personnel vitality and organizational efficiency,
process efficiency, improve operational efficiency, and accelerate the implementation of the company's third innovation and
entrepreneurship strategy.
Fourthly, the risk of supply chain.
First, the impact of global COVID-19 on the automobile industry chain can not be completely eliminated in the short term. During
the epidemic period, investment in global manufacturing industry declined. After production gradually recovered, there was a capacity
gap in some parts. For example, the shortage of auto chips since the end of last year will continue in phases. Second, due to the long
automobile industry chain and wide regional distribution, the global division of labor and cooperation has been affected by the epidemic
situation, and the production efficiency of some parts enterprises has declined. In addition, the sporadic epidemic in China may involve
auto parts gathering areas, which also poses potential risks to the production and supply guarantee of vehicle enterprises.
Countermeasures: first, optimize the production organization mode to ensure the normal production operation; second, strengthen
the cooperation, sharing and symbiosis relationship among enterprises in the industrial chain, increase the reserve of risk components
in time; third, continuously promote the backup alternatives of some key core components.
X. Registration form for reception, research, communication, interview ， etc. during the
reporting period
Type of
Date Manner Reception Index
Object
For details, see the January 16, 2020 Shenzhen stock exchange interactive
On-Site
2020.01.14 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 14, 2020 investor
Survey
relations activities record sheet
For details, see the January 21, 2020 Shenzhen stock exchange interactive
On-Site
2020.01.21 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: January 21, 2020 investor
Survey
relations activities record sheet
"Panorama
For details, see the May 6, 2020 Shenzhen stock exchange interactive
Roadshow
2020.04.30 All investors (http://irm.cninfo.com.cn) on the Changan Automobile: April 30, 2020 investor
World"
relations activities record sheet
Webcast
For details, see the May 9, 2020 Shenzhen stock exchange interactive
Telephone
2020.05.07 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 7, 2020 investor
conference
relations activities record sheet
Telephone For details, see the May 9, 2020 Shenzhen stock exchange interactive
2020.05.08 Institution
conference (http://irm.cninfo.com.cn) on the Changan Automobile: May 8, 2020 investor
37
Chongqing Changan Automobile Company Limited 2020 Annual Report
relations activities record sheet
For details, see the May 14, 2020 Shenzhen stock exchange interactive
Telephone
2020.05.12 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor
conference
relations activities record sheet(1)
For details, see the May 14, 2020 Shenzhen stock exchange interactive
On-Site
2020.05.12 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor
Survey
relations activities record sheet(2)
For details, see the June 28, 2020 Shenzhen stock exchange interactive
On-Site
2020.06.24 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 24, 2020 investor
Survey
relations activities record sheet
For details, see the July 17, 2020 Shenzhen stock exchange interactive
Telephone
2020.07.14 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: July 14, 2020 investor
conference
relations activities record sheet
For details, see the July 17, 2020 Shenzhen stock exchange interactive
Telephone
2020.07.15 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: July 15, 2020 investor
conference
relations activities record sheet
For details, see the July 17, 2020 Shenzhen stock exchange interactive
Telephone
2020.07.16 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: July 16, 2020 investor
conference
relations activities record sheet
For details, see the July 21, 2020 Shenzhen stock exchange interactive
On-Site
2020.07.17 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: July 17, 2020 investor
Survey
relations activities record sheet
For details, see the September 2, 2020 Shenzhen stock exchange interactive
On-Site
2020.08.31 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: August 31, 2020 investor
Survey
relations activities record sheet
For details, see the September 3, 2020 Shenzhen stock exchange interactive
On-Site
2020.09.01 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: September 1, 2020
Survey
investor relations activities record sheet
For details, see the October 20, 2020 Shenzhen stock exchange interactive
On-Site
2020.10.16 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: October 16, 2020 investor
Survey
relations activities record sheet
For details, see the November 6, 2020 Shenzhen stock exchange interactive
On-Site
2020.11.03 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: November 3, 2020
Survey
investor relations activities record sheet (1)
For details, see the November 6, 2020 Shenzhen stock exchange interactive
On-Site
2020.11.03 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: November 3, 2020
Survey
investor relations activities record sheet (2)
For details, see the November 9, 2020 Shenzhen stock exchange interactive
On-Site
2020.11.06 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: November 6, 2020
Survey
investor relations activities record sheet
For details, see the December 7, 2020 Shenzhen stock exchange interactive
On-Site
2020.12.03 Institution (http://irm.cninfo.com.cn) on the Changan Automobile: December 3, 2020
Survey
investor relations activities record sheet
On-Site For details, see the December 9, 2020 Shenzhen stock exchange interactive
2020.12.07 Institution
Survey (http://irm.cninfo.com.cn) on the Changan Automobile: December 7, 2020
38
Chongqing Changan Automobile Company Limited 2020 Annual Report
investor relations activities record sheet
Reception Times 20
Number of Agencies 302
Number of Individuals 0
Number of other entities 0
Whether to disclose undisclosed important
No
information
39
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 5 Important Matters
Ⅰ. Company common stock profit distribution and capital reserves converting into share capital
During the reporting period, the common stock profit distribution policy, especially the formulation, implementation or
the adjustment situation of cash dividend policy.
√ applicable □ not applicable
According to the China Securities Regulatory Commission requirements, in combination with the practical situation of the
company, the Company has rectified the “Articles of Association” and clarified about the distributable profit caliber, dividend
distribution way, principle, form, cash dividend conditions and proportion, stock dividend condition, plans to set up and review
procedures, the implementation, the conditions of distribution policy adjustment, and decision-making procedures, etc, to strengthen
the supervision function of independent directors in the profit distribution plan, policy adjustment, and strengthen the guarantee system
of the dividend return for investors. For details of the company’s specific distribution policy, please refer to the Articles of Association.
Company’s reported profit distribution plan and equity shares in line with the relevant provisions of the Articles of Association and
relevant provisions.
Special Statement for Cash Dividend Policy
Whether comply with the company's articles of association or requirements of
Yes
resolutions of the shareholders' general meeting:
Whether the standard of distribution and the proportion is clear: Yes
Whether the related decision-making process and mechanism is complete: Yes
Whether the independent directors play a proper role: Yes
Whether the small and medium-sized shareholders have the chance to fully express
Yes
their views and demands, whether the legitimate rights and interests get fully protected:
Whether cash dividend policy is adjusted or changed, whether the conditions and
Not Applicable
procedures are compliant and transparent:
For the last three years (including the reporting period), the company profit distribution draft or plan, and draft or plan
that the capital reserves converting into share capital
2018 annual profit distribution plan is: Based on the existing total shares of 4,802,648,511, distribute cash of RMB 0.18 yuan
(including tax) to all the shareholders every 10 shares.
In 2019, the preplan profit distribution of the Company deliberated and approved by the Board is: no profit distribution and no
conversion of capital reserve into share capital.
In 2020, the preplan profit distribution of the Company deliberated and approved by the Board is: Based on the total share
capital of 5,439,591,574 shares, a cash dividend of RMB 3.06 (tax included) will be distributed to all shareholders for every 10
shares, and 4 shares will be converted from the capital reserve for every 10 shares.
Share out Cash Bonus Table for last three years
Unit: Yuan
Net profit attributable to The net profit ratio (%)
Cash dividend amount (tax
Year shareholders of listed attributable to shareholders of
included)
companies in dividends annual listed companies in
40
Chongqing Changan Automobile Company Limited 2020 Annual Report
consolidated statements consolidated statements
2020 1,664,515,021.64 3,324,251,164.16 50.07%
2019 - -2,646,719,356.53 -
2018 86,447,673.20 680,728,392.03 12.70%
Ⅱ. Preplan of profit allocation and capital reserve converting into share equity during the
reporting period
For every 10 shares to send bonus shares -
For every 10 shares dividend number (RMB) (tax included) 3.06
Number of transfers for every 10 shares (shares) 4
The equity base of distribution plan(shares) 5,439,591,574
Total cash dividends (yuan) (tax included) 1,664,515,021.64
Distributable profits (yuan) 35,848,636,357.95
Proportion (%) of cash dividends to total profit distribution 100%
Cash dividend policy：
Others
Detailed statement of profit allocation or plan that capital accumulation fund turn to be added
The fifteenth meeting of the eighth session of the company's board of directors reviewed and approved the "Proposal on the
2020 Profit Distribution Plan", which still needs to be submitted to the company's 2020 annual general meeting of shareholders for
deliberation.The matter complies with the company's articles of association, the relevant decision-making procedures and
mechanisms are complete, and the legitimate rights and interests of small and medium investors are fully protected. Independent
directors perform their duties and express their opinions.
III. Commitments Fulfillment Condition
1、The company’s actual controllers, shareholders, related parties, acquirers, and the company and other
commitments that have been fulfilled by the relevant parties during the reporting period and have not yet
been fulfilled as of the end of the reporting period.
Commitment Commitment period for
Commitments Commitment content Performance
entity time commitment
In order to avoid and eventually
solve the possible competition or
China potential competitors, better The Harbin Hefei Automobile
Other small Changan maintain the interests of investors, Industry Group Co at present is still
September,
shareholders Automobile the company controlling running at a loss, The conditions
2010
commitment Group Co., shareholder China Changan made have not yet reached the profitable
Ltd. the commitment: In two for two consecutive years.
consecutive years profit of Harbin
Hf Automobile Industry Group Co,
41
Chongqing Changan Automobile Company Limited 2020 Annual Report
With the continuous development
ability and management level is
improved significantly. Under such
condition, the enterprise will be
affiliated into the company.
Southern
Industrial
Asset October 2020 36 months Normal performance
Management The shares of Changan Auto
Co., Ltd. subscribed through this issuance
China South will not be transferred in any way
Industries within 36 months after the end of
October 2020 36 months Normal performance
Group Co., this issuance, including but not
Ltd. limited to public transfer through
the securities market or through
China
agreement.
Changan
Automobile October 2020 36 months Normal performance
Group Co.,
Ltd.
China
Southern
Fund October 2020 6 months Normal performance
Commitments Management The company agrees not to
made during IPO Co., Ltd. transfer the shares subscribed for
or refinancing China this time within six months from
Galaxy the date of the end of this issuance
October 2020 6 months Normal performance
Securities of Changan Automobile (referring
Co., Ltd. to the date when the shares of this
issuance are listed). The company
JPMorgan
entrusts the board of directors of
Chase Bank,
Changan Automobile to apply to October 2020 6 months Normal performance
National
the Shenzhen Branch of China
Association
Securities Depository and Clearing
Guotai Junan
Co., Ltd. to lock up the above-
Securities October 2020 6 months Normal performance
mentioned subscription shares of
Co., Ltd.
the company to ensure that the
Caitong above-mentioned shares held by
Fund the company will not be
October 2020 6 months Normal performance
Management transferred within six months from
Co., Ltd. the end of the issuance.
Wells Fargo
Fund October 2020 6 months Normal performance
Management
42
Chongqing Changan Automobile Company Limited 2020 Annual Report
Co., Ltd.
Guosen
Securities October 2020 6 months Normal performance
Co., Ltd.
Chuangjin
Hexin Fund
October 2020 6 months Normal performance
Management
Co., Ltd.
Invesco
Great Wall
Fund October 2020 6 months Normal performance
Management
Co., Ltd.
Six months
before the
Southern 1. The company promises to issuance to
Industrial strictly abide by the "Securities six months
Asset Law" on the purchase and sale of August 2020 Normal performance
after the
Management listed company stocks, from six
completion
Co., Ltd. months before the issuance to six of the
months after the completion of the issuance
issuance, not through centralized
Six months
bidding transactions, block
before the
transactions, etc. Directly or
China South issuance to
indirectly buy and sell Changan
Industries six months
Automobile stocks. August 2020 Normal performance
Group Co., after the
2. If the company violates the
Ltd. completion
aforesaid commitment to buy and
of the
sell the shares of Changan
issuance
Automobile Company, it shall
belong to Changan Automobile for Six months
the proceeds from the illegal before the
China
trading of shares of Changan issuance to
Changan
six months
Automobile Automobile Company, and shall August 2020 Normal performance
after the
Group Co., be willing to bear corresponding
legal liabilities. completion
Ltd.
of the
issuance
Whether the
promise is Yes
fulfilled on time
2、The assets of the company or project include the earnings forecast, and during the report period, the profit
forecast still existed, the company assets or projects achieve the profit forecast and explain the reasons
43
Chongqing Changan Automobile Company Limited 2020 Annual Report
□Applicable √Not-applicable
IV. The non-operating fund occupation situation of the controlling shareholders and their
affiliates to the listed companies
□Applicable √Not-applicable
During the reporting period there does not exist non-operating fund of the listed company occupied by the controlling shareholder
and its affiliated parties.
V. The board of directors, supervisors, and independent directors (if applicable) explaining the
"non standard audit report" from the accounting firm during the reporting period
□Applicable √Not-applicable
Certified public accountants do not issue "non-standard audit report" for the current report.
VI. Explaining the change with last year's financial statements, accounting policies, accounting
estimate and accounting methods
√Applicable □ Not-applicable
For details, please refer to “31. Accounting Policies and Changes in Accounting Estimates” of the “Significant Accounting Policies
and Accounting Estimates” in Note 3 to the Financial Statements in the “2020 Annual Report of the Company”.
VII. During the reporting period, big accounting errors correction and the need for trace
restatement
□Applicable √Not-applicable
During the reporting period, no significant accounting errors correction and no need for trace restatement.
VIII. Compared with financial report for last year, the explanation to the scope change of
consolidated statements
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a new subsidiary, Chongqing Changan Automobile Software Technology
Co., Ltd., co-established Chongqing Changan Kaicheng Automobile Technology Co., Ltd. with Chongqing Linkong Development
Investment Group Co., Ltd., accounting for 83.64% of the equity, acquired Changan Weilai New Energy Automobile Technology Co.,
Ltd., and a total of three companies were included in the scope of the consolidated statement. Chongqing Changan New Energy
Automobile Technology Co., Ltd. introduced strategic investors and its shareholding ratio was reduced to 48.95%. It was no longer
included in the scope of consolidation, and subsequent measurement was carried out according to the equity method.
IX. The appointment, dismissal of the accounting firm
The appointment of the accounting firm
The name of the domestic accounting firm Ernst & Young Hua Ming LLP
44
Chongqing Changan Automobile Company Limited 2020 Annual Report
Domestic accounting firms payment (ten thousand
386
Yuan)
A continuous years of domestic accounting firms
14
audit service
Domestic accounting firm of Certified Public
Qiao Chun, Hu Yan
Accountants name
Whether to change the accounting firms
□Applicable √Not-applicable
Employ audit of internal control accounting firms, financial adviser or sponsor
√Applicable □Not-applicable
Through the approval from the company's 2019 annual shareholders' meeting, the company hired Ernst &Young Huaming certified
public accountants (special ordinary partnership) as the company's 2020 annual internal control audit certified public accountants. In
2020 the internal control audit fee paid for the internal control auditing services provided by Ernst &Young Huaming certified public
accountants (special ordinary partnership) is RMB 1.166 million yuan.
X. After the disclosure of the annual report, the Company faces the suspension and termination
of the listing
□Applicable √Not-applicable
XI. Bankruptcy restructuring related matters
□Applicable √Not-applicable
During the report period no bankruptcy restructure related matters occur.
XII. Crucial litigation and arbitration events
□Applicable √Not-applicable
During the reporting period the company has no crucial litigation and arbitration events.
XIII．Punishment and rectification
□Applicable √Not-applicable
During the reporting period there’s no punishment and rectification.
XIV. The integrity of company and its controlling shareholder, actual controller
□Applicable √Not-applicable
XV. Company equity incentive plan, the implementation of the employee stock ownership plan
or other staff incentives.
√Applicable □Not-applicable
On July 13, 2020, the company held the second meeting of the eighth session of the board of directors, and reviewed and approved
45
Chongqing Changan Automobile Company Limited 2020 Annual Report
3 proposals related to the restricted stock incentive plan. For details, please refer to the "Announcement on Resolutions of the Second
Meeting of the Eighth Board of Directors" ( Announcement number: 2020-63).
On February 1, 2021, the company held the eleventh meeting of the eighth session of the board of directors, and reviewed and
approved two proposals related to the revision of the restricted stock incentive plan. For details, please refer to the "Resolutions of the
Eleventh Meeting of the Eighth Board of Directors" Announcement (Announcement Number: 2021-05).
On February 18, 2021, the company held the first extraordinary general meeting of shareholders in 2021, and reviewed and
approved 3 proposals related to the restricted stock incentive plan. For details, please refer to the "Announcement on Resolutions of
the First Extraordinary General Meeting of 2021" (Announcement) Number: 2021-13).
On February 22, 2021, the company held the twelfth meeting of the eighth session of the board of directors, at which it reviewed
and approved the "Proposal on Adjusting the List of Restricted A Shares Incentive Plan and the Number of Incentives Granted" and
"Regarding the Restriction of A Shares" The Proposal for the First Grant of Restricted Stocks to Incentives of the Stock Incentive Plan.
For details, please refer to the "Announcement on Resolutions of the Twelfth Meeting of the Eighth Board of Directors" (Announcement
Number: 2021-14).
On March 5, 2021, the shares granted by equity incentives is listed for circulation. For details, please refer to the "Announcement
on Completion of Registration for the First Grant of A Share Restricted Stock Incentive Plan" (Announcement No.: 2021-20).
XVI. Significant related party transactions
1、Related transactions related to day-to-day operation
For details, please refer to Note 9 "Related Party Relationships and Transactions" in the Financial Statements.
2、Assets or equity acquisition, sales related transactions
√Applicable □Not-applicable
For details, please refer to Note 9 "Related Party Relationships and Transactions" in the Financial Statements.
3、Related transactions of common investment
√Applicable □Not-applicable
On January 17, 2020, Changan Automobile signed an agreement with China First Automobile Co., Ltd., Dongfeng Motor Group
Co., Ltd., China South Industries Group Co., Ltd., and Nanjing Jiangning Economic Development Technology Development Co., Ltd.
to jointly initiate the establishment of China Automobile Chuangzhi Technology Co., Ltd., with a registered capital of 16 billion yuan,
of which Changan Automobile invested 500 million yuan, holding 3.125% of the shares. For details, please refer to the "Announcement
on Related Party Transactions of T3 Technology Platform Companies" (Announcement No.: 2020-06).
4、Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 9 "Related Party Relationships and Transactions" in the Financial Statements.
Whether there is any non-business related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
46
Chongqing Changan Automobile Company Limited 2020 Annual Report
5、Other significant related transactions
√applicable □ not applicable
Related queries in disclosure website of interim report of related transactions
Temporary
Name of temporary announcement announcement Temporary announcement site name
date
Announcement on related party transactions regarding the
April 28, 2020 http://www.cninfo.com.cn
subscription of non-publicly issued A shares by related parties
Announcement on expected daily related transactions in 2020 April 30, 2020 http://www.cninfo.com.cn
Announcement on related-party transactions on entrusted loans to
June 23, 2020 http://www.cninfo.com.cn
Jiangling Holdings for one year
Announcement on related party transactions regarding the provision
of financial services by China South Industry Group Finance Co.,Ltd August 31, 2020 http://www.cninfo.com.cn
(Note 1)
Announcement on related party transactions regarding the provision
of financial services by Changan Automobile Fiannce Co.,Ltd (Note August 31, 2020 http://www.cninfo.com.cn
2)
Note 1：Changan Automobile has signed a Financial Service Agreement with China South Industry Group Finance Co.,Ltd and
strictly implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with " Administrative
Measures for Financial Companies of Enterprise Groups" issued by CBRC, Changan Automobile reviewed China South Industry
Group Finance Co.,Ltd and issued a risk assessment report.(For details, please refer to " A report on risk assessment of China South
Industry Group Finance Co.,Ltd " disclosed on http://www.cninfo.com.cn on Feb., 23rd 2021)
In 2020, China South Industry Group Finance Co.,Ltd provided the following services for the company:
①Provide the maximum deposit balance of not more than 10.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum credit total of 12 billion yuan and related credit services, the credit rate provided by the finance Company for
Changan Automobile should not be higher than that of other domestic financial institutions over the same period;
③Provide the maximum credit total of 18 billion auto financial services and other financial services, and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards.
Note 2：Changan Automobile has signed a Financial Service Agreement with Changan Automobile Fiannce Co.,Ltd and strictly
implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with "Administrative Measures
for Motor Financing Companies" issued by CBRC, Changan Automobile reviewed Changan auto finance and issued a risk assessment
report.(For details, please refer to " A report on risk assessment of Changan Automobile Finance" disclosed on
http://www.cninfo.com.cn on Feb., 23rd 2021)
In 2020, Changan auto Finance provided the following services for the company:
①Provide the maximum deposit balance of not more than 7.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum of 3 billion yuan in auto finance personal consumer credit discount service , and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards;
③Provide the maximum credit total of 6 billion auto financial services and other financial services, and set the prices for financial
47
Chongqing Changan Automobile Company Limited 2020 Annual Report
services in accordance with the standards not higher than market fair prices or national standards.
XVII. Major contract and its performance
1、Trusteeship, contracting, leasing matters
（1）Trusteeship
□Applicable √ Not-applicable
Information about Trusteeship
There is no Trusteeship during the reporting period.
（2）contracting
□Applicable √ Not-applicable
Information about contracting
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Information about leasing
Related party rental situation can be found in the note nine of financial statements 5 (2) related party relationships and transactions.
Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□Applicable √ Not-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2、Major guarantee
□Applicable √ Not-applicable
There’s no major guarantee during the report period.
3、 Entrust others for cash assets management
(1) Entrust financial situation
□Applicable √ Not-applicable
There’s no entrusting situation during the reporting period.
(2) Entrusted loans situation
√ Applicable □ Not applicable
On June 22, 2020, the first meeting of the eighth session of the company’s board of directors reviewed and approved the "Proposal
48
Chongqing Changan Automobile Company Limited 2020 Annual Report
on the Extension of the Entrusted Loan to Jiangling Holdings for One Year", and agreed to extend the entrusted loan of 300 million
yuan to the joint venture Jiangling Holdings Co., Ltd. for one year. For details, please refer to the "Announcement on Related-Party
Transactions on the Extension of Entrusted Loans to Jiangling Holdings for One Year" (Announcement No.: 2020-57).
4、Major contracts for daily operations
□Applicable √ Not-applicable
5、Other major contract
□Applicable √ Not-applicable
There’s no other major contract during the reporting period.
XVIII. Social responsibility
1、Performance of social responsibilities
The full text of the company's social responsibility report has been published on the website of www.cninfo.com.cn on the same
day as the company's annual report.
2、Fulfillment of social responsibility for targeted poverty alleviation
√ Applicable □ Not applicable
2020, The Company coordinated the entire company, contributed its poverty relief efforts by overcoming the COVID-19 impact
on poverty alleviation, scientifically and efficiently carrying out the work of precision poverty alleviation.
（1）Fixed Poverty Alleviation Programs in 2020
——The company donated RMB 4.5 million to Luxi County.
In terms of educational poverty alleviation projects: firstly, the upgrading and reconstruction project of Zuma Primary school in
Xiangyang Township of Luxi County, with an investment of 1.5 million yuan, was used to improve the facilities of Zuma primary
school in Xiangyang Township. The construction contents included teaching building, hardening of school roads, basketball court, etc.
Secondly, the skills training project for rural new vocational farmers in Luxi County, with an investment of 500,000 yuan, provided
skills training for 100 farmers with employment intention and ability (no less than 50 poverty-stricken households with filing card),
and the training content is mainly welder and electrician skills. Through "help each othet " training, let them master one skill and
increase their income by transferring labor force.
On the health poverty alleviation projects: support the allocation project of negative pressure ambulance in Luxi County with an
investment of 390,000 yuan. 2 negative pressure ambulances according to the relevant procurement requirements were purchased for
the usage by Luxi County People's Hospital and Luxi County traditional Chinese medicine hospital. Through the allocation of negative
pressure ambulance, we can improve the prevention and control ability of infectious diseases in Luxi County, and enhance the
emergency response ability of sudden infectious diseases.
On the livelihood poverty alleviation projects: firstly, Luxi County dynamic monitoring prevention and control poverty return
fund, with an investment of 1.51 million yuan, was mainly used for poor households, marginal households, monitoring households and
other difficult groups. The implementation of the project can consolidate the achievements of poverty alleviation in Luxi County,
improve the quality of poverty alleviation, and prevent the returning to poverty and the increase of poverty population. Secondly, Luxi
49
Chongqing Changan Automobile Company Limited 2020 Annual Report
County emergency rescue vehicle configuration project invested 600,000 yuan to purchase fire engines. In accordance with the relevant
procurement requirements, four small emergency rescue water tankers were purchased for fire fighting operations, and the property
rights of the assets were owned by the fire rescue brigade of Luxi County. The implementation of the project can effectively avoid the
occurrence of poverty caused by disaster.
——6 million yuan donated to Yanshan County for poverty alleviation
On the industrial development poverty alleviation project: Panlong Township black feather silky fowl house dehumidification
equipment purchase project invested 2.36 million yuan, which was organized and implemented by Panlong Township People's
government. The cooperative development mode of "government + cooperative + industry + Post (poor households)" was adopted, and
the government invested the assistance funds into Yunyan breeding professional cooperative of Yanshan County to implement the
purchase of black feather silky fowl house dehumidification equipment. The term of cooperation is 60 months. The cooperative
voluntarily takes the farm and its property as the risk mortgage of cooperative funds, and pays 180,000 yuan of cooperative income
every 12 months. The cooperative income is mainly used for public welfare post labor remuneration and public welfare undertakings,
so as to consolidate the achievements of poverty alleviation.
On the education poverty alleviation project: firstly, all schools in Ameng town implemented the campus ancillary projects, with
an investment of 1.1 million, a wall of 200 metres , a retaining wall of 900 m, a hardening of 1200 ㎡ of activity site, 90 ㎡ of new
toilet bath room, 18 ㎡ of duty room and the gate. We should improve the conditions for running schools and make them meet the
requirements of balanced development of compulsory education. Secondly, the construction project of shower halls in Yanshan County
Campus, with an investment of 2 million, was used to implement 15 bathrooms (540 square meters in total) with solar energy and
shower equipment. The implementation of the project has met the needs of 15 rural schools, improved school conditions and promoted
the healthy growth of rural students.
On the health poverty alleviation project: Yanshan County negative pressure ambulance project, with an investment of 540,000
yuan, purchased two Chang'an RuiXing M90 negative pressure ambulances, equipped with transfer ventilator and defibrillator on the
basis of standard configuration. The status of no negative pressure ambulance in Yanshan County can be changed, which is conducive
to the transshipment of infectious diseases, especially the current epidemic prevention and control of COVID-19.
——Poverty alleviation the Company donated 300,000 yuan to Pengshui County, Chongqing
According to the spirit of the notice of Chongqing development and Reform Commission poverty alleviation group leading group
office on printing and distributing the key points of Counterpart Assistance in Pengshui County in 2020 ( [2020] No.1), Chang'an
Automobile invested 300,000 yuan of Counterpart Assistance Fund in Pengshui County, Chongqing, after the deliberation and approval
of the president's office meeting of Chang'an Automobile on May 20, 2020.
——Poverty alleviation the Company donated 200,000 yuan to Chongqing Youyang County
According to the spirit of the notice of Chongqing Jiangbei District Counterpart Assistance leading group office on 2020 Jiangbei
Youyang counterpart assistance work plan (Jiangbei counterpart Office [2020] No. 2), Chang'an Automobile invested 200,000 yuan in
Youyang County for the construction project of 7 groups of hot springs and 5 groups of Dagou Bianmin road in gantian village, Muye
Township, Youyang County.
(2) Poverty alleviation through consumption in 2020
Chang'an Automobile and the people's daily client completed the first network wide public welfare live broadcasting with goods
activities in Luxi and Yanshan counties of Yunnan Province, with the theme of "poverty alleviation, love and innovation". The total
number of viewers reached 34.1 million, the number of praise exceeded 10 million, and the sales of live broadcasting with goods
reached 1.33493 million yuan.
According to the arrangement of the local government, the company's subsidiaries, all employees, enterprises and institutions,
social organizations, cadres and employees, and social caring people affiliated to the Chang'an Automobile ecosystem were extensively
mobilized to purchase more than 1.1 million yuan of agricultural and sideline products from Pengshui and Youyang counties in
Chongqing, promoting the poor people to increase their income; more than 5,000 people were registered as members of Chongqing
50
Chongqing Changan Automobile Company Limited 2020 Annual Report
poverty alleviation Museum of China social poverty alleviation network and participated in poverty alleviation through consumption.
The Company actively responded to the call, and organized employees to carry out cultural and tourism consumption poverty alleviation
activities in Pengshui.
Changan Automobile Statistics on Poverty Alleviation in 2020
Indicator Unit Quantity / Details
Ⅰ. Total —— ——
1.funds 10 thousand RMB 1100
2. Material 10 thousand RMB 0
Ⅱ. Subdivision —— ——
1. Industrial poverty alleviation —— 236
1.1 Industrial poverty 1)The purchase project of dehumidification equipment for Heiyu black chicken
——
alleviation project brooding house in Panlong township of Yanshan County: 236
2. Education poverty alleviation —— 510
1)The University of Ameng town, Yanshan County, carried out the campus
affiliated project:110
2.1 Project and investment of
2)Yanshan County Campus Love bathhouse construction project: 200
improving educational resources 10 thousand RMB
3) Project of upgrading in Zuma primary school in Xiangyang Township of
in poor areas
Luxi County: 150
4)4) Luxi County Rural New Vocational farmers skills training project: 50
3. Medical and health poverty
—— 93
alleviation
1)Configuration project of negative pressure ambulance in Luxi County: 39
3.1 Medical and health
10 thousand RMB 2)Configuration project of negative pressure ambulance in Yanshan County:
resources invested in poverty areas
54
4. Other projects - people's
—— 261
livelihood poverty alleviation
1)Luxi County dynamic monitoring prevention and control of poverty Fund:
151
2) Luxi County emergency rescue vehicle configuration project: 60
4.1 Amount of investment 10 thousand RMB
3) Pengshui County: 30
4)Group 7 hot spring and group 5 Dagou Bianmin road construction project
of gantian village, Muye Township, Youyang County: 20
(3) Effective link work plan between strengthening and expanding the achievements of poverty alleviation and Rural
Revitalization in 2021
In 2021, the company will take a higher position to make overall arrangement, vigorously promote and innovate ideas, do a good
job in consolidating and expanding the achievements of poverty alleviation, effectively link up with rural revitalization, create a
characteristic poverty alleviation mode of "one machine, two wings", earnestly fulfill its social responsibility, and make new
contributions to the comprehensive construction of a socialist modern country.
——Target task
According to the 2021 work plan, 11.5 million yuan (including 1 million yuan from Chang'an Mazda Automobile Co., Ltd.) will
be invested in poverty alleviation in Luxi County and Yanshan County of Yunnan Province, and 500,000 yuan will be invested in
consumption poverty alleviation plan.
51
Chongqing Changan Automobile Company Limited 2020 Annual Report
According to the key points of the poverty alleviation group of Chongqing development and Reform Commission, 300,000 yuan
of aid donation plan and 500,000 yuan of consumption poverty alleviation guidance plan were invested in Pengshui County, Chongqing.
According to the work plan of Counterpart Assistance in Jiangbei District, it is planned to invest 800,000 yuan in Youyang County,
Chongqing.
——Key work
It is planned to invest 12.6 million yuan in poverty alleviation funds to realize rural industrial prosperity, ecological livability and
affluence, and comprehensively promote rural revitalization.
Innovate the poverty alleviation mode, and introduce the e-commerce of agricultural products in designated poverty alleviation
areas into the PMS platform of customer service company. Passenger car marketing division and sales company of Oushang Automobile
Division issued policies to encourage dealers to purchase characteristic agricultural products on PMS platform of customer service
company as new car gift and feedback gift to carry out promotional activities. It not only enriches the promotion resources, but also
promotes the sales of characteristic agricultural products in designated poverty alleviation areas, helps the poverty alleviation regional
characteristic agricultural and sideline products to the whole country, forms a long-term mechanism, and consolidates and expands the
achievements of poverty alleviation.
Deepen the cooperation between schools and enterprises, give full play to the advantages of automobile industry, set up "Chang'an
Automobile class" in poverty areas with skill training as the starting point, carry out automobile training base construction, automobile
professional teacher training and other projects, spare no effort to build a state-level automobile training demonstration base, and plan
to recruit 100 students, so as to train one person, get employment one, and get rid of poverty one, and truly stimulate the inner motivation.
3、Fulfill the social responsibility of the environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√Yes □No
Basic status
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonia
nitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc in strict accordance with the "environmental protection law of
the people's Republic of China" and national and local emission standards, and there was no illegal emission incident or administrative
penalty incident by local ecological and environmental authorities.Waste water mainly comes from the treatment of surface treatment
wastewater, spray painting wastewater and oil containing wastewater before the coating workshop, which is discharged after
physicochemical and biochemical treatment. The exhaust gas is mainly painted waste gas and flue gas. The exhaust gas of the spray
paint is absorbed, concentrated and burned, and the exhaust gas of the oven is discharged after burning. Two sulfur oxide and nitrogen
oxide are mainly from the waste gas from the clean energy of natural gas. All of the exhaust gases from energy and natural gas
combustion are organized emissions. The company's headquarters and subsidiaries have a sound environmental management system,
which has passed the environmental management system certification.
Pollution discharge information
During the reporting period, there were 403 pollutant outlets and 19 water pollutant outlets. The emission standards were strictly
implemented according to the national sewage comprehensive discharge standard, the water pollutant discharge standard in Beijing,
the national standard for the comprehensive emission of air pollutants, the standard for the emission of air pollutants on the surface of
automobile manufacturing in Chongqing, the standard for the comprehensive emission of air pollutants, and the vehicle Manufacturing
industry (painting process) air pollutant emission standard in Beijing, national industrial enterprise boundary environmental noise
emission standard and so on. The total emission of major pollutants: 868.697tons of chemical oxygen, 75.0146 tons of ammonia
nitrogen, 201.836 tons of sulfur dioxide, 255.144 tons of nitrogen oxides and quantitative volatile organic compounds 4070.796 tons.
52
Chongqing Changan Automobile Company Limited 2020 Annual Report
All the pollutants in the company are discharged, and there is no excess total emission.
Solid wastes are separately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag,
phosphated residue and waste solvent, etc. The units with hazardous waste business qualification are entrusted to dispose hazardous
wastes. The general industrial solid wastes and household garbage are disposed by the units with qualification according to the
requirement of the local government. The waste electrical and electronic products are disassembled by the units with qualification and
are safely disposed by the units with hazardous waste business qualification. During the reporting period, 12,365 tons of hazardous
waste and 115,496 tons of general industrial solid waste were disposed.
Construction and operation of pollution prevention facilities
During the reporting period, the main waste gas prevention and control facilities include foundry dust removal and deodorization
facilities in engine factories, welding dust removal facilities in vehicle factories and treatment facilities for coating volatile organic
waste gas; together with wastewater treatment facilities, they are included in preventive maintenance management of equipment, with
account books, operation instructions, preventive maintenance rules, preventive maintenance plans and implementation records, and
equipment spot inspection records, operating records and so on. The facilities are running normally. The key pollutant discharge units
are all equipped with automatic wastewater monitoring facilities and entrusted the tripartite company to operate and maintain the
facilities.
Administrative licensing of environmental impact assessment and other environmental protection for construction projects
In accordance with the regulations of the State Council on environmental protection and management of construction projects, the
People's Republic of China Environmental Impact Assessment Law, the regulations on environmental protection in Chongqing, and
the Interim Measures for the construction project completion of environmental protection and acceptance by the Ministry of
environmental protection of the state, the environmental impact assessment and completion ring of the new, modified and expanded
projects are required and strictly enforce the environmental impact assessment system and the "Three Simultaneity" system.
During the reporting period, the EIA approval of CD569 production line project, DCT shell self-made project, DCT shell self-
made phase II project, mask production line and other projects has been obtained, and the environmental protection acceptance of NE1
phase I production line project (phase I), emission laboratory project and mask production line project has been completed.
Emergency preparedness and exercise of emergency environmental events
During the reporting period, each base prepared (revised) emergency resource investigation report, environmental risk assessment
report, emergency plan for environmental emergencies and on-site disposal plan according to the requirements of laws and regulations;
each base prepared emergency drill plan according to the requirements of laws and regulations, and carried out 20 factory level
emergency drills and 384 workshop level emergency drills as planned, continuously improving the practicability of emergency plan
and the emergency department of employees. Each base continued to carry out the investigation and rectification of environmental
emergencies, and prevent the occurrence of environmental emergencies. No environmental emergency occurred during the reporting
period.
Programming and implementation of self-monitoring of the environment
In 2020, Key sewage units of Changan Automobile: Liangjiang Factory, Jiangbei Engine Factory, Yubei Factory, Beijing Changan,
Hefei Changan, Chongqing LingYao Automobile, Nanjing Chang'an, Chongqing Chang'an Kaicheng Automobile Technology (Hebei
Chang'an and Baoding Changan Bus). All the key sewage made self-monitoring schemes, and self-monitoring has been carried out,
and information disclosure has been carried out according to the requirements of the local ecological environment department.
Others
During the reporting period, all bases carried out the declaration of national sewage permits in accordance with regulations and
obtained national sewage permits. Jiangbei Engine Factory, Nanjing Chang'an, Chongqing LingYao Automobile have carried out good
environmental protection, while the others are all environmental integrity enterprises.
53
Chongqing Changan Automobile Company Limited 2020 Annual Report
XIX. Other important events
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of the annual
report.
XX. Important matters of the Company's subsidiary
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of the annual
report.
54
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 6 Changes in the shareholding of the company and
shareholders
I. Change in shareholdings
1、Change in shareholdings
Unit: One share
Balance before current Addition and deduction（+，-） during
Balance after current change
change change
Ratio Additional Stock Provident Ratio
Quantity other Quantity
(%) issued dividend fund transfer (%)
Non-circulated shares 18,900 0.00% 560,747,663 560,766,563 10.46%
1、State-owned legal
0 0.00% 283,138,318 283,138,318 5.28%
person shares
2、Other domestic
18,900 0.00% 244,899,065 244,917,965 4.57%
holdings
Among them:
shareholding by 0 0.00% 244,899,065 244,899,065 4.57%
domestic legal persons
Senior management
18,900 0.00% 18,900 0.00%
personnel shares
3、Foreign
0 0.00% 32,710,280 32,710,280 0.61%
shareholding
Circulated shares 4,802,629,611 100.00% 4,802,629,611 89.54%
1、Domestic listed
3,900,643,469 81.22% 3,900,643,469 72.72%
RMB shares
2、Domestic listed
901,986,142 18.78% 901,986,142 16.82%
foreign shares
Total shares 4,802,648,511 100.00% 560,747,663 5,363,396,174 100.00%
Reason of stock changes
√ applicable □ not applicable
The company's 2020 non-public issuance of A shares will be completed in October 2020 (for details, please refer to the "Non-
public Issuance of A Shares" disclosed on www.cninfo.com.cn on October 22, 2020. Share Issuance Status Report and Listing
Announcement (Summary)), the number of shares in the non-public offering is 560,747,663 shares. After the issuance, the total number
of shares of the company will be changed from 4,802,648,511 shares to 5,363,396,174 shares.
Approval of stock changes
√ applicable □ not applicable
1. The internal decision-making procedures for issuance and performance
The company held the 64th meeting of the seventh board of directors and the 2019 annual general meeting of shareholders on
55
Chongqing Changan Automobile Company Limited 2020 Annual Report
April 27, 2020 and May 22, 2020, respectively, to deliberate and pass the "Proposal on the Company's Non-public Issuance of A Shares",
etc. 13 Motions. The third meeting of the eighth session of the board of directors and the third extraordinary general meeting of
shareholders in 2020 were held on July 24, 2020 and August 10, 2020, respectively, to deliberate and approve the "Regarding the
adjustment of the company’s 2020 non-public issuance of A shares. -The issuance of 5 proposals including the "Proposal on the Validity
Period of Resolutions of the General Meeting of Shareholders".
2. The review process of the issuance regulatory authority
On June 9, 2020, the company received the "China Securities Regulatory Commission Administrative License Application
Acceptance Form" issued by the China Securities Regulatory Commission; on September 7, 2020, the application for non-public
issuance of shares was approved by the China Securities Regulatory Commission’s Issuance Review Committee; On September 18,
2020, the company received the "Approval of Chongqing Changan Automobile Co., Ltd. Non-public Issuance of Shares" issued by the
China Securities Regulatory Commission (Zheng Jian Xu Xu [2020] No. 2256), which approved the company's non-public issuance of
no more than 1,440,794,553 shares New shares.
Ownership transfer of stock change
√ applicable □ not applicable
The company's non-public offering of 560,747,663 shares in 2020 will be listed on the Shenzhen Stock Exchange on October 26,
2020.
Progress in the implementation of stock repurchase
□ applicable √ not applicable
Progress in the implementation of the reduction of stock by means of centralized bidding
□ applicable √ not applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share and diluted
earnings per share, the net assets per share belonging to the common shareholder of the company
√ applicable □ not applicable
Due to the non-public offering of shares in 2020, the total share capital increased by 560,747,663 shares (accounting for 10.46%
of the total share capital after the issuance). At the same time, the issuance price is higher than the net assets per share, so the basic
earnings per share for the most recent year and the most recent period will be increased. As a result, the net assets per share attributable
to the company’s common shareholders have risen, and the overall impact on the company’s financial indicators is relatively small.
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose.
□ applicable √ not applicable
2、Change in Non-circulated shares
√ Available □Not-available
Unit：one share
Non-circulated Non-circulated
Name of Decrease during the Increase during the Reason for non- Date for the
shares held at the shares held at the
shareholders reporting period reporting period circulated shares circulated shares
year-beginning year-end
China South
Non-public issuance of
Industries Group 2,764,486 2,764,486 2023-10-26
A shares in 2020
Co., Ltd.
China Changan 93,457,944 93,457,944 Non-public issuance of 2023-10-26
56
Chongqing Changan Automobile Company Limited 2020 Annual Report
Automobile Co., A shares in 2020
Ltd.
Southern Non-public issuance of
Industrial Asset A shares in 2020
186,915,888 186,915,888 2023-10-26
Management Co.,
Ltd.
China Southern Non-public issuance of
Fund A shares in 2020
147,289,719 147,289,719 2021-04-26
Management Co.,
Ltd.
China Galaxy Non-public issuance of
Securities Co., 38,317,757 38,317,757 A shares in 2020 2021-04-26
Ltd.
JPMorgan Chase Non-public issuance of
Bank, National 32,710,280 32,710,280 A shares in 2020 2021-04-26
Association
Guotai Junan Non-public issuance of
Securities Co., 14,018,691 14,018,691 A shares in 2020 2021-04-26
Ltd.
Caitong Fund Non-public issuance of
Management Co., 10,990,654 10,990,654 A shares in 2020 2021-04-26
Ltd.
Wells Fargo Fund Non-public issuance of
Management Co., 10,319,626 10,319,626 A shares in 2020 2021-04-26
Ltd.
Guosen Securities Non-public issuance of
10,280,373 10,280,373 2021-04-26
Co., Ltd. A shares in 2020
Chuangjin Hexin Non-public issuance of
Fund A shares in 2020
9,345,794 9,345,794 2021-04-26
Management Co.,
Ltd.
Invesco Great Non-public issuance of
Wall Fund A shares in 2020
4,336,451 4,336,451 2021-04-26
Management Co.,
Ltd.
Executive lock 6 months after
Zhu Huarong 18,900 - - 18,900
stocks the retirement
Total 18,900 - 560,747,663 560,766,563 -- --
II. Issuing and listing of securities
1、Securities issuance (excluding preferred stocks) during the reporting period
√ applicable □ not applicable
The name of the Issue price (or Number of Transaction
Issue date Issue number Listing date
stock and its interest rate) approved listing termination
57
Chongqing Changan Automobile Company Limited 2020 Annual Report
derivative transactions date
securities
Stocks
The company's
non-public
2020-10-26 10.70 yuan/share 560,747,663 2020-10-26 560,747,663
offering of shares
in 2020
Explanation of securities issuance (excluding preferred shares) during the reporting period
The company's non-public offering of 560,747,663 shares in 2020 will be listed on the Shenzhen Stock Exchange on October 26,
2020.
2、Changes in the total number of shares of the Company and changes in the structure of the shareholders and in the structure
of the Company's assets and liabilities
√ applicable □ not applicable
1.Matters concerning non-public issuance of stocks
During the reporting period, due to the company’s non-public issuance of stocks, the net amount of funds raised was RMB
5,986,871,772.65. The company’s net assets will increase and the debt-to-asset ratio will decrease accordingly. The structure is more
reasonable.
2. Free transfer matters
On April 18, 2020, the company disclosed the "Indicative Announcement Concerning the Gratuitous Transfer of 0.71% of the
Company's Equity by the Actual Controller" (Announcement Number: 2020-18). The company’s actual controller, Weapon Equipment
Group, has signed a free transfer agreement with China Electronics Technology Investment Holdings Co., Ltd. (hereinafter referred to
as "China Electronics Technology Investment Holdings") to transfer the 34,232,588 shares of Changan Automobile it holds, which is
the company’s total issued shares. 0.71% of the share capital will be transferred to CLP Investment and Control for free.
On May 29, 2020, the company disclosed the "Announcement on Obtaining the Approval of the State-owned Assets Supervision
and Administration Commission of the State Council for the Gratuitous Transfer of the Company's Equity by the Actual Controller"
(Announcement No.: 2020-45). On June 19, 2020, the company disclosed the "Announcement on Completion of Transfer Registration
for the Gratuitous Transfer of State-Owned Equity of the Actual Controller" (Announcement No.: 2020-54), confirming that the above-
mentioned freely transferred shares have completed the transfer and registration procedures, and the date of transfer It is June 18, 2020.
3、Existing internal staff shares
□ Available √ Non available
III. Shareholders and actual controllers situation
1、The number of shareholders of the company and the stock
Unit: one share
Number of
Number of
Number of preferred
ordinary
preferred shareholders
Number of shareholders
shareholders with resumed
ordinary at the
351,846 381,802 with resumed 0 voting rights 0
shareholders at month-end
voting rights at the
the period-end prior to
at the period- month-end
the disclosure
end prior to the
of this Report
disclosure of
58
Chongqing Changan Automobile Company Limited 2020 Annual Report
this Report
Holding more than 5% of the shareholders, or top 10 shareholders situation
Non- Pledged/ Frozen
Percentage increases and
circulated Circulated cases
Nature of of total Shares held at decreases
Name of shareholders shares held shares held at
Shareholders shares the year-end during the
at the year- the year-end Share status amount
（%） report period
end
China Changan State-owned legal No pledge or
19.05% 1,021,502,890 93,457,944 93,457,944 928,044,946
Automobile Co., Ltd. person shares freeze
China South Industries State-owned legal No pledge or
18.72% 1,003,844,571 -31,468,102 2,764,486 1,001,080,085
Group Co., Ltd. person shares freeze
domestic general No pledge or
China securities
legal person 4.37% 234,265,333 - - 234,265,333 freeze
finance Co, Ltd
shares
Southern Industrial No pledge or
State-owned legal
Asset Management 3.48% 186,915,888 186,915,888 186,915,888 - freeze
person shares
Co., Ltd.
Hong Kong Central No pledge or
foreign legal
Clearing Company 3.45% 184,875,179 67,178,451 - 184,875,179 freeze
person shares
Limited
United Prosperity No pledge or
(Hongkong) foreign legal freeze
2.87% 154,120,237 - - 154,120,237
Investment Co., person shares
Limited
domestic general No pledge or
Central Huijin
legal person 1.03% 55,393,100 - - 55,393,100 freeze
Investment Ltd.
shares
domestic general No pledge or
China Galaxy
legal person 0.71% 38,317,757 38,315,357 38,317,757 - freeze
Securities Co., Ltd.
shares
JPMORGAN CHASE foreign legal No pledge or
BANK,NATIONAL person shares 0.61% 32,710,378 32,710,243 32,710,280 98 freeze
ASSOCIATION
CHINA INT'L foreign legal No pledge or
CAPITAL CORP person shares freeze
0.53% 28,319,474 21,973,069 - 28,319,474
HONG KONG
SECURITIES LTD
Among the top 10 shareholders, China South Industries Group Co., Ltd., With its wholly-owned subsidiary,
Southern Industrial Asset Management Co., Ltd., the actual controller; China Changan Automobile Group Co.,
Explanation on the relationship and
Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment
the action alike of above shareholders
Co., Limited. belong to the concerted actor regulated by “Disclosure Administration of Shares Change
Information of The Listed Company”.
The ten largest circulated shareholders
Name of shareholders Shares at the year end Shares type
59
Chongqing Changan Automobile Company Limited 2020 Annual Report
Type Amount
China Changan Automobile Co., Ltd. 1,001,080,085 RMB ordinary shares 1,001,080,085
China South Industries Group Co., Ltd. 928,044,946 RMB ordinary shares 928,044,946
China securities finance Co, Ltd 234,265,333 RMB ordinary shares 234,265,333
Hong Kong Central Clearing Company Limited 184,875,179 RMB ordinary shares 184,875,179
United Prosperity (Hongkong) Investment Co., Limited 154,120,237 Domestic listed foreign shares 154,120,237
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
CHINA INT'L CAPITAL CORP HONG KONG
28,319,474 Domestic listed foreign shares 28,319,474
SECURITIES LTD
CAPE ANN GLOBAL DEVELOPING MARKETS
27,629,760 Domestic listed foreign shares 27,629,760
FUND
GUOTAI JUNAN SECURITIES(HONGKONG)
26,727,436 Domestic listed foreign shares 26,727,436
LIMITED
DRAGON BILLION SELECT MASTER FUND 24,203,339 Domestic listed foreign shares 24,203,339
Among the top 10 shareholders, China South Industries Group Co., Ltd., With its wholly-
owned subsidiary, Southern Industrial Asset Management Co., Ltd.,the actual controller;
The top 10 shareholders to sell circulated shares, and the
China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly
infinite tradable relationship between shareholders and
owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the
top 10 shareholders or concerted action
concerted actor regulated by “Disclosure Administration of Shares Change Information of
The Listed Company”.
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase
transactions during the report period
□Available √Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchase transactions
during the reporting period。
2、The controlling shareholder of the company.
Nature of the controlling shareholder: the central state-owned
Type of the controlling shareholder: legal person
Legal Date of
Name Organization code Business scope and major products:
/Representative establishment
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,
CHINA CHANGAN information and communication equipment;
Dec 26th, 911100007109339
AUTOMOBILE Zhou Zhiping technical development, technical transfer, technical
2005 484
GROUP CO., LTD consultation, technical training, and other technical
service relative with the operation mentioned above;
imports and exports; merge and acquisition and
consultation of assets restructuring ； Operating
telecommunications services; acting as an agent for
bookkeeping.
60
Chongqing Changan Automobile Company Limited 2020 Annual Report
The controlling equity
and equity during the
reporting period, the To the reporting period, the holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock code
controlling shareholder 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698), Chongqing Changan Minsheng APLL
of listed companies in Logistics Co., Ltd(stock code 01292.HK)
other domestic and
foreign markets
The change of controlling shareholder during the reporting period
□Available √ Not- available
No changes in controlling shareholder during the reporting period.
3、The actual controller of the company and those acting in concert
Nature of the ultimate controller: the central state-owned asset management institution
Type of the ultimate controller: legal person
Legal Date of Organization
Name Business scope and major products:
/Representative establishment code
investment and management of state-owned assets;
manufacturing of guns and firearms; engineering
China South Industries 91110000710926
Xu Xianping 29 Jun.,1999 prospecting, designing, construction, contracting,
Group Corp. 043F
construction supervision; equipment installation,
etc.
The controlling equity
To the reporting period, direct or indirect holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock
and equity during the
code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co., Ltd. (stock
reporting period, the
code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); Chongqing Jianshe Automotive
controlling shareholder
Systems Co., Ltd. (stock code 200054); China Optical Group Co., Ltd. (stock code 002189); Yunnan West
of listed companies in
Instrument industrial Co., Ltd. (stock code 002265); Chongqing Changan Minsheng logistics Limited (stock
other domestic and
code 01292.HK).
foreign markets
The change of the ultimate controller during the reporting period
□Available √ Not- available
No changes in the ultimate controller during the reporting period.
Relationship among the Company and its controlling shareholders:
61
Chongqing Changan Automobile Company Limited 2020 Annual Report
Actual control people control the company through trust or other asset management method.
□Available √Not available
4、Other legal shareholders with over 10% holding
□Available √ Not available
5、 Reduced shareholdings of controlling shareholders, actual controllers, restructuring parties and other
committing parties
□Available √ Not available
62
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 7 Information about Directors, Supervisors, Senior
Management and Employees
Ⅰ. Share ownership changes of directors, supervisors and senior management
decrease
share
increased d share
Shares held number
Term share number
at at the
Name Position As state Gender Age Term start date Termination number in in this
beginning end
date this issue issue
（stock） （stock
（stock） （stock
）
）
Chairman,
Zhu Huarong Secretary of the present M 55 2020-06-22 2023-06-22 25,200 - - 25,200
Party Committee
Tan
Director present M 57 2020-06-22 2023-06-22
Xiaogang
Zhou
Director present M 50 2020-06-22 2023-06-22
Zhiping
Zhang Bo Director present M 42 2021-02-18 2023-06-22
Liu Gang Director present M 54 2021-02-18 2023-06-22
Director, President,
Deputy Secretary
Wang Jun present M 48 2020-06-22 2023-06-22
of the Party
Committee
Zhang Director, The chief
present M 46 2020-06-22 2023-06-22
Deyong accountant
independent
Liu Jipeng present M 64 2020-06-22 2023-06-22
director
independent
Li Qingwen present M 65 2020-06-22 2023-06-22
director
Chen independent
present M 75 2020-06-22 2023-06-22
Quanshi director
Ren independent
present M 64 2020-06-22 2023-06-22
Xiaochang director
independent
Pang Yong present M 51 2020-06-22 2023-06-22
director
63
Chongqing Changan Automobile Company Limited 2020 Annual Report
Tan independent
present M 50 2020-06-22 2023-06-22
Xiaosheng director
independent
Wei Xinjiang present M 51 2020-06-22 2023-06-22
director
Cao independent
present M 49 2020-06-22 2023-06-22
Xingquan director
Chairman of the
Yan Ming present M 55 2020-06-22 2023-06-22
supervisory
Sun Dahong Supervisor present M 54 2020-06-22 2023-06-22
Zhao Jun Supervisor present M 59 2020-06-22 2023-06-22
Employee
Wang Yanhui present F 54 2020-06-19 2023-06-22
Supervisor
Employee
Luo Yan present F 46 2020-06-19 2023-06-22
Supervisor
Deputy Secretary
Yuan
of the Party present M 52 2020-07-13 2023-06-22
Mingxue
Committee
Deputy Vice
Liu Bo present M 54 2020-07-13 2023-06-22
Director
Deputy Vice
He Chaobing present M 53 2020-07-13 2023-06-22
Director
Deputy Vice
Li Wei present M 54 2020-07-13 2023-06-22
Director
Commission for
Hua
Discipline present M 53 2020-07-13 2023-06-22
Zhanbiao
Inspection
Deputy Vice
Tan Benhong present M 45 2020-07-13 2023-06-22
Director
Deputy Vice
Ye Pei present M 45 2020-07-13 2023-06-22
Director
Deputy Vice
Zhao Fei present M 46 2020-07-13 2023-06-22
Director
Chen Wei Vice President present M 48 2020-07-13 2023-06-22
Li Mingcai Vice President present M 39 2020-07-13 2023-06-22
Li Jun Board Sectary present F 51 2020-07-13 2023-06-22
Zhang Chairman of the Departure
M 58 2017-09-22 2020-06-05
Baolin board
Zhang Deputy Vice Departure F 54 2016-03-23 2020-07-13
64
Chongqing Changan Automobile Company Limited 2020 Annual Report
Jingjing Director
Liu Deputy Vice Departure
M 55 2020-07-13 2020-10-22
Zhengjun Director
Zhang Departure
Director M 54 2018-05-18 2020-06-22
Dongjun
Lv Laisheng Director Departure M 46 2020-06-22 2020-11-13
Zhao Huixia Supervisor Departure M 60 2016-03-23 2020-06-22
Total 25,200 - - 25,200
Ⅱ. Personnel Changes of directors, supervisors and senior management
Name Duties Type Date Reason
Zhu Huarong Director ,Chairman Election June 22th, 2020 Appointment due to work
Tan Xiaogang Director Election June 22th, 2020 Appointment due to work
Lv Laisheng Director Election June 22th, 2020 Appointment due to work
Zhou Zhiping Director Election June 22th, 2020 Appointment due to work
Zhang Bo Director Election June 22th, 2021 Appointment due to work
Liu Gang Director Election Feb 18th, 2021 Appointment due to work
Wang Jun Director Election Feb 18th, 2020 Appointment due to work
Zhang Deyong Director Election June 22th, 2020 Appointment due to work
Liu Jipeng independent director Election June 22th, 2020 Appointment due to work
Li Qingwen independent director Election June 22th, 2020 Appointment due to work
Chen Quanshi independent director Election June 22th, 2020 Appointment due to work
Ren Xiaochang independent director Election June 22th, 2020 Appointment due to work
Pang Yong independent director Election June 22th, 2020 Appointment due to work
Tan Xiaosheng independent director Election June 22th, 2020 Appointment due to work
Wei Xinjiang independent director Election June 22th, 2020 Appointment due to work
Cao Xingquan independent director Election June 22th, 2020 Appointment due to work
Yan Ming Supervisory board chairman Election June 22th, 2020 Appointment due to work
Sun Dahong Supervisor Election June 22th, 2020 Appointment due to work
Zhao Jun Supervisor Election June 22th, 2020 Appointment due to work
Wang Yanhui Employee Supervisor Election June 19th, 2020 Appointment due to work
Luo Yan Employee Supervisor Election June 19th, 2020 Appointment due to work
Zhu Huarong President, Party Secretary recruitment July 13th, 2020 Appointment due to work
Wang Jun President recruitment Oct 15th, 2020 Appointment due to work
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Deputy Secretary of the Party
Wang Jun Committee (Identified as a senior recruitment July 13th, 2020 Appointment due to work
manager)
Yuan Mingxue Executive Vice President recruitment July 13th, 2020 Appointment due to work
Liu Bo Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
He Chaobing Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Li Wei Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Secretary of the Commission for
Hua Zhanbiao Discipline Inspection (identified as a recruitment July 13th, 2020 Appointment due to work
senior manager)
Tan Benhong Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Liu Zhengjun Deputy Vice Director recruitment July 13th, 2020 Appointment due to work
Zhang Deyong The chief accountant recruitment July 13th, 2020 Appointment due to work
Ye Pei Vice President recruitment July 13th, 2020 Appointment due to work
Zhao Fei Vice President recruitment July 13th, 2020 Appointment due to work
Chen Wei Vice President recruitment July 13th, 2020 Appointment due to work
Li Mingcai Vice President recruitment July 13th, 2020 Appointment due to work
Li Jun Board Sectary recruitment July 13th, 2020 Appointment due to work
Deputy Secretary of the Party
Yuan Mingxue Committee (Identified as a senior recruitment March 30, 2021 Appointment due to work
manager)
Ye Pei Deputy Vice Director recruitment March 30, 2021 Appointment due to work
Zhao Fei Deputy Vice Director recruitment March 30, 2021 Appointment due to work
Zhang Baolin Chairman Departure June 5th, 2020 Job change
Zhang Dongjun Director Departure June 22th, 2020 General election
Zhao Huixia Supervisor Departure June 22th, 2020 General election
Zhang Jingjing Deputy Vice Director Departure Oct 15th, 2020 General election
Zhu Huarong President Departure Oct 22th, 2020 Job change
Liu zhengjun Deputy Vice Director Departure June 13th, 2020 Job change
Lv Laisheng Director Departure Nov 13th, 2020 Job change
Yuan Mingxue Executive Vice President Departure March 30, 2021 Job change
Ye Pei Vice President Departure March 30, 2021 Job change
Zhao Fei Vice President Departure March 30, 2021 Job change
Ⅲ. Employment
Professional Background, Main Work Experience and Main Duties and Responsibilities of present directors, supervisors and senior
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Chongqing Changan Automobile Company Limited 2020 Annual Report
managers
1、Directors
Mr. Zhu Huarong, Director, Chairman and Secretary of the party committee. He was born in 1965, master graduate student, senior
engineer. Currently he is the president assistant of South Industries Group, the director of China Changan Automobile Group and the
director. He was vice director of Changan Technology Department, the chief engineer of Changan Automobile Manufacture Factory,
president assistant of Changan Automobile (Group) Co., Ltd. and director of technical center, director of science and technology
committee, vice President of Changan Automobile (Group) Co., Ltd and the leader of engineering research division., vice President
and secretary of party committee of Chongqing Changan Automobile, the vice secretary of party committee of China Changan
Automobile Group, president of Changan Automobile.
Mr. Tan Xiaogang, Director. He was born in 1963, the master’s degree, researcher-level senior engineer. Currently, he is the
director of Development & Planning Department of China South Industries Group. He used to be the Vice Director, executive Vice
Director of Workshop No. 343, deputy Secretary of the Yuanling County CPC Committee in Hunan Province, director, executive
deputy general manager, and general manager of Hunan Yunjian Co. Ltd, Chariman, the Secretary of the Party Committee of Hunan
Yunjian Group, and vice director of Development & Planning Department of China South Industries Group.
Mr. Zhou Zhiping, Director. Born in 1971, the doctor graduate, senior engineer. He is currently the employee director, director of
the Audit and Risk Management Department (Office of the Supervisory Board) of China South Industries Group Corporation, chairman,
president and party secretary of China Changan Automobile Group. He was deputy director of Motor sector of development and
planning department of China South Industries Group Corp, manager and director of long-term planning sector of development and
planning department of China South Industries Group Corporation, deputy director and director of capital operation Department of
China South Industries Group Corp, the general manager of the southern industrial asset management Ltd, the secretary of party
committee and the labor union chairman of Changan Automobile.
Mr. Zhang Bo, director. Born in 1978, master's degree, senior accountant. He is currently the Director of the Finance Department
of China South Industries Group Co., Ltd. Served as the Deputy Director and Deputy Director of the Finance Division of the Finance
Department (General Division) of the China South Industries Group Corporation, Investigator and Deputy Director of the Finance
Department of the Finance Department of China South Industries Group Corporation, Director and Chief Accountant of Chongqing
Wangjiang Industry Co., Ltd., Deputy Director of the Finance Department of China South Industries Group Co., Ltd. (in charge of
work).
Mr. Liu Gang, director. Born in 1966, bachelor's degree, senior engineer. He is currently the director of the Science and Technology
Quality Network Information Department of China South Industries Group Co., Ltd. Served as Deputy Director and Director of the
Research Department of the 58th Research Institute of China Ordnance Industry, Deputy Director and Director of the 58th Research
Institute of China Ordnance Industry, Deputy Director of the Southwest Region Department of China Ordnance Equipment Group
Corporation, and Vice President of China Ordnance Equipment Research Institute Director, Director of the Science and Technology
Quality Department (Information Department) and Director of the Science and Technology and Information Department of China
South Industries Group Corporation.
Mr. Wang Jun, Director, President and Deputy Secretary of the Party Committee. Born in 1972, master's degree, senior engineer.
Served as Deputy Director and Director of the Scientific Research Management Division of the Company’s Technology Center,
Director of the Science and Technology Management Division of the Science and Technology Quality Department, Deputy Director
and Director of the Product Planning Division of the Automotive Engineering Research Institute, Manager of the Product Management
Division of the Marketing Department of Changan Automobile Sales Co., Ltd. Director, Deputy Minister and Minister of the Product
Planning Division of the Marketing Department, Assistant to the President of Changan Automobile and General Manager of Changan
Automobile Sales Co., Ltd., Secretary of the Party Committee, Deputy General Manager and General Manager of the Commercial
Vehicle Division, Executive Vice President of Changan Automobile, and Integrated Management of Two Industrializations
Representative, chairman of the labor union, president of Chang'an Automobile University.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Mr. Zhang Deyong, director, the chief accountant, born in 1975, MPAcc, senior accountant. He was the Deputy Director, Director,
Assistant to the Director of the Finance Division of China Institute of Weaponry and Equipment Group, Deputy Director of the Finance
Department of China Weaponry and Equipment Group Corporation Member, deputy director of the financial department of China
Weapon Equipment Group Corporation (on duty), director, chief accountant and member of the party committee of Chongqing Changan
Industry Group Co., Ltd., executive vice president of Changan Automobile.
Mr. Liu Jipeng, independent director. He was born in 1956, master degree. He has the certificates of Phase II Professor, Senior
Fellow, Senior Economist and Certified Public Accountant and currently serves as Dean and Phase II Professor of Business School of
China University of Political Science and Law. He is currently the dean, second-level professor, and doctoral supervisor of the Capital
Finance Research Institute of China University of Political Science and Law; the chief expert of major projects of the National Social
Science Fund; Legal adviser to the State-owned Assets Supervision and Administration Commission of the State Council; the vice
Chairman of China Enterprise Reform and Development Research Association; Deputy director of the independent board of directors
of the China listed companies Association; Member of Legal Advisory Committee of Shenzhen Stock Exchange. He is a famous expert
on joint-stock systems and corporate issues, specializing in the combination of joint-stock systems, collectivization, and
internationalization theory and practice. He has published more than 400 articles on newspapers and magazines domestic and abroad,
such as People’s Daily and Economic Research Journal and received more than 800 interviews by domestic and overseas newspaper
and magazines. In the last 20 years, he has managed the shareholding system reform, corporate strategy, acquisition and reorganization,
financing scheme design for over 300 companies, such as National Electricity Company, Aviation Industry Corporation of China,
Chinalco, Haier Group, Hainan Airlines, Wanxiang Group, Li-ning Sproting Goods Co, Tianjin Development Zone Head Office. These
enterprises cover more than 20 provinces and cities, including various industries. He is called “the first person in stock reform” by
media.
Mr. Li Qingwen, independent director. He was born in 1956, master degree. He is currently the dean of the Automobile Evaluation
Institute, dean o of Beijing invisible unicorn information technology institute and vice chairman of the China Automobile Talent
Research Association. He once served as chairman of China Energy Automobile Communications Group, president of China
Automobile Newspaper, president of China Energy Newspaper, director and deputy director of the General Office of Heilongjiang
Provincial People's Government, and secretary of Hailin Municipal Committee of Heilongjiang Province. Since 1998, his works with
a total of over one million words in automotive research, monographs, reviews, and interviews have been published.
Mr. Chen Quanshi, independent director, born in 1945, bachelor's degree. He is currently a professor and director of the
Department of Automotive Engineering of Tsinghua University and honorary director of the Electric Vehicle Branch of the China
Automobile Engineering Society. He once served as director of the Electric Vehicle Research Office, vice president of the School of
Mechanical Engineering of Tsinghua University, head of the Department of Automotive Engineering, and director of the Automobile
Research Institute. To undertake the topic of "Fuel Cell City Passenger Vehicle Technology Research" in the major national "863"
electric vehicle projects, national energy conservation and new energy vehicle 863 major projects; He won the first prize for scientific
and technological progress in Beijing in 2009 and the second prize for national invention(ranked second). He published a monograph
"Fuel Cell Electric Vehicle"(first author) 2004, Tsinghua University Press; Editor-in-Chief of Advanced Electric Vehicle Technology
(First Author) the first edition of 2007 (won the second prize of the National Machinery Industry Science and Technology Progress
Award).
Mr. Ren Xiaochang, independent director, was born in 1956, bachelor's degree. He served as the chairman and general manager
of China Automobile Engineering Research Institute, the group expert of the 12th Five-Year plan national key science and technology
special (EV) projects, and the committee member of the second national strategic emerging industry development expert advisory
committee. He is the expert of the Chinese machinery industry science and technology, the special subsidy expert of the State Council
and the evaluation expert of the national science and technology award, the member of the academic committee of China Academy of
international engineering. Its main research and scientific research projects have won the awards such as provincial and ministerial
level and scientific and technological progress awards, including 3 second-level awards and 3 third-level awards.
Mr. Pang Yong, independent director, born in 1969, master’s degree. Currently, he is the chairman and CEO of IDEO, and adjunct
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Chongqing Changan Automobile Company Limited 2020 Annual Report
professor of Jilin University, the vice president of the China Federation of Industry and Commerce Automobile Dealers, the vice
president of the China-Europe Alumni Automobile Industry Association, a member of the Jiusan Society, and a member of Alxa SEE.
As a senior expert in the Chinese automobile industry, an advocate of the lean operation model of China's automobile marketing,
focusing on digital services for the implementation of the new four modernizations in the automotive industry, he led team to build a
data- and technology-driven channel dealer competitiveness database and evaluation system "AD-CAS", based on the solution + SaaS
platform to enable the implementation of a new model of automobile retail. Enthusiastic for public welfare, there are special scholarship
programs for students in Tsinghua University, Jilin University, Beijing University of Aeronautics and Astronautics, and Tongji
University.
Mr. Tan Xiaosheng, independent director, born in 1970, bachelor. Founder, chairman, senior engineer of Beijing Cyber Yingjie
Technology Co., Ltd., founder of Zhengqi College. Served as the technical president and chief security officer of 360 Group.In 2020,
he was awarded the title of the first batch of network security innovation and entrepreneurial instructors from the Cyber Security
Industry Development Center of the Ministry of Industry and Information Technology, and a cyber security expert from the Cyber
Security Bureau of the Ministry of Public Security. In 2018, he was awarded the title of Excellent Network Security Talent by the China
Internet Development Foundation, and is a director and deputy secretary-general of the China Computer Federation (CCF). In 2012,
he was awarded the title of Zhongguancun High-end Leading Talent, and a member of the Safety Science and Engineering Professional
Teaching Committee of the Ministry of Education. Worked successively in Xi'an Jiaotong University, Peking University Founder,
Shenzhen Hyundai, Shenzhen Haoxin, 3721, Yahoo China, MySpace China, 360 Group, engaged in anti-virus system under DOS
operating system, disk copy software, Chinese character operating system, large-scale management information System research and
development, leading the telecommunication business support system, search engine, big data/cloud computing platform system,
network security research, network security product development team.
Mr. Wei Xinjiang, independent director, was born in 1969, PHD, researcher. He is currently the Deputy General Manager of the
Development Planning Department of China Life Pension Insurance Co., Ltd. and senior researcher of China life financial research
institute. He was engaged in teaching and scientific research for 13 years at the International Investment Department of the Chinese
Academy of Finance and the Institute of Finance and economics of foreign trade and Economy University. He studied at Holland
business school, the University of Birmingham, the European Commission and the United Nations Hague International Court of justice
for 3 years. He is the expert in international business, overseas M & A, operation of capital market and so on. It has rich research on
finance, insurance, overseas investment, and comprehensive finance and so on. He also served as a part-time professor and postgraduate
instructor of School of Finance and Finance of Renmin University of China, the School of International Business and Economics of
the University of International Business and Economics and the Holland business school. He has published nearly 160 papers in
international and domestic journals, and 8 books, such as the fraud and anti-fraud of automobile insurance, the comparative study of
the anti-monopoly policies between the United States and the EU, and the analysis of the accounting statements and investment value
of the enterprises.
Mr. Cao Xingquan, independent director, born in 1971, doctor of law. He is currently a professor at the School of Civil and
Commercial Law of Southwest University of Political Science and Law, and a doctoral tutor in the direction of civil and commercial
law. He has 20 years of civil and commercial law teaching and research experience, including 17 years of teaching at Southwest
University of Political Science and Law. He is a lecturer in the National fine course "Business Law" and the National Resource sharing
course "Business Law". He focuses on the study of commercial law, company law, securities law, and insurance law. He has presided
over or participated in more than 20 various scientific research topics, published more than 60 academic papers, published more than
10 academic works and participated in teaching materials; He is the executive director and director of the China Law Conference Law,
Insurance Law, and Securities Law Research Association; He once served as vice president of the Fourth Division of the Chongqing
First Intermediate People's Court Civil Trial; Member of Chongqing People's Procuratorate Expert Committee on Civil Administration
Supervision; He has participated in many national and local legislative consultations, engaged in a large number of professional
consultations, special lectures, and legal services in enterprise restructuring, capital operations, and corporate governance, and
concurrently served as an arbitrator in arbitration institutions in Shenzhen, Chongqing, and Zunyi.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
2、Supervisors
Mr. Yan Ming, Chairman of the Supervisory Board, born in 1965, Master of Law, Senior Political Engineer. He is currently the
senior professional of the Audit and Risk Department of China South Industries Co., Ltd., Chairman of the Weaponry Equipment Group
Finance Co., Ltd. Baoding Tianwei Group Co., Ltd. He served as Deputy Minister and Minister of Organization Department of Jialing
Industrial Co., Ltd.; United Front Department Minister, Party School Executive Vice President, Director of Human Resources
Development Management Office of Jialing Industrial Co., Ltd.; Deputy Party Secretary and Disciplinary Committee Secretary of
Jialing Industry Co., Ltd..; Deputy Director of Human Resources Department of China South Industries (Exchange); Deputy Director
and Director of the Party Group Work Department(Supervision Department) of China South Industries Co., Ltd., Deputy Chairman of
the Party Group Discipline Inspection Unit, Member, Deputy Secretary, Member and Secretary of the CPC Ordnance Group directly
under the Committee; Director of the Supervision Department of China South Industries and deputy leader of the Party Group
Discipline Inspection Unit; Audit and Risk Department Inspector of China South Industries; Chairman of the Supervisory Board of
Baoding Tianwei Group Co., Ltd., Zhonghui Fortis(Shenzhen) Co., Ltd., Southern Industrial Assets Management Co., Ltd.,Weaponry
Equipment Group Finance Co., Ltd.
Mr. Sun Dahong, Supervisor. He was born in 1966, master degree, senior economist. Currently, he is the vice director of the legal
department. He used to be the vice director of legal division under the general office in China South Industries Group, vice director
and director of Legal Advisor Division in China South Industries Group, and director of Legal Affairs Division of general office,deputy
director of general office and the chief of Secrets Agency in South Industries Group.
Mr. Zhao Jun, supervisor. Born in 1961, bachelor degree, senior engineer. He is currently the Intermediate Specialist of the Audit
and Risk Management Department (Office of Supervisory Affairs) of China South Industries Group Co., Ltd., and the Chairman of the
Supervisory Board of Southern Industrial Asset Management Co., Ltd. Served as Deputy Director and Director of the Operation
Department of the Economic and Trade Bureau of China South Industries Corporation, Director of the Economic Operation Department
of the Economic Operation Department of China South Industries Group Corporation, Deputy General Manager of Beijing Beiji
Mechanical and Electrical Industry Co., Ltd., China South Industries Group Corporation Director of the Economic Operation
Department, Director of the Office of Directors Affairs, Director of the Capital Operation Department, Chief Accountant, Director of
the Board of Directors, Secretary of the Party Committee, Secretary of the Disciplinary Committee, Chairman of the Labor Union of
Beijing Beiji Mechanical and Electrical Industry Co., Ltd., Audit and Risk Department of China South Industries Group Corporation
deputy director.
Ms. Wang Yanhui, employee supervisor. She was born in 1966, bachelor's degree, senior engineer. She is currently the project
director of the commissioned development business of Changan Automobile. She used to be the deputy director of science and
technology management division, director of science and technology management division, deputy director of science and technology
and project management department, director of science and technology and project management department, Secretary of Party branch,
executive vice chairman of science and Technology Association, director of comprehensive planning department, press spokesman of
the company, and project director of strategic planning department.
Ms. Luo Yan, staff supervisor. She was born in 1974, bachelor degree, assistant economist. Currently, she is the chief of salary &
performance section of HR department. She used to be the maintenance electricians, engineering measurer person, labor technology
fixed member, schemer in workshop No.232 of No.3 plant, chief of welfare section of Salary Division of HR Department, and chief of
welfare office III.
3、Senior Management other than Directors and Supervisors
Mr.Yuan Mingxue, Deputy Secretary of the Party Committee, Chairman of the Labor Union, President of Chang'an Automobile
University. Born in 1968, master’s degree, senior engineer, he used to be the Vice Director and Director of the General Manager’s
Office, Director of the Quality Control Department, Assistant to President, and Vice President of Changan Automobile (Group) CO.,
LTD, the Deputy Executive President and the Secretary of CPC of Chognqing Changan Suzuki Auto. Co., Ltd, vice president and the
major executive vice president of the Company.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Mr. Liu Bo, Executive Vice President and Head of Automobile Engineering General Institute, born in 1966, Master's degree,
Senior Researcher-level Engineer. He used to serve as the Vice Director of Workshop No.71 of Jiangling Machinery Plant, the Vice
Director of Engine Research Division under Company Technology Department, the Vice Director of the Technical Center, the Vice
Director, Executive vice Director of Automobile Engineering Institute, Assistant to the President and the Director of Project
Supervision Office of the Company, the Director of the Project Administration Department, President of Changan Automobile
Engineering Research Institute.
Mr. He Chaobing, Secretary of the party committee of auchan automotive division,Executive Vice President and Director of
Operations Management Committee, born in 1967, master's degree, Senior engineer. A former director of fourth development center
and Vice President of Automobile Engineering Research Institute, Deputy director of commercial vehicle business management
department, President assistant and general manager of the Beijing Changan Automobile Co., Ltd, President assistant and director of
purchase department, President assistant and vice general manager of the commercial vehicle division, Executive vice president and
party secretary of changan Ford Motor Co., Ltd.
Mr. Li Wei, Executive Vice President. Born in 1966, master's degree, senior engineer. Served as the director of the Changan
Company's Test and Inspection Institute, the director of the Test Institute of the Automobile Research Institute, the director of the Body
Design Institute, the director of the Beijing Research Institute, the assistant to the president of Changan Automobile and the executive
vice president and party secretary of the Changan Automobile Engineering Research Institute, General Manager and Secretary of the
Party Committee of Chongqing Changan New Energy Automobile Technology Co., Ltd.
Mr. Hua Dubiao, Secretary of the Commission for Discipline Inspection and Director of the Office of the Inspection Work Leading
Group. Born in 1967, bachelor degree, senior accountant. Served as Deputy Director of the Company’s Audit Department, Deputy
Director of the Audit and Supervision Department, Director of the Audit Department, Director of the Audit and Supervision Department,
Deputy Secretary of the Party Branch, Deputy Secretary of the Company’s Disciplinary Committee, Assistant President of the Company
and Director of the Finance Department, and Secretary of the Party Branch, General Manager of Chongqing Changan Auto Union
Technology Co., Ltd.
Mr. Tan Benhong, the executive vice president. Born in 1975, master’s degree, engineer. He was the deputy director of the Changan
company Automobile Technology Department, the product technology manager of the Nanjing factory of Changan Ford Automobile
Co., Ltd., the deputy director of the reception office and the secretarial reception department of the Changan Company office, the
director of the technical Planning Institute of the Automobile Engineering Research Institute, the deputy chief engineer of the
Automobile Engineering Research Institute and the director of the Institute of technical planning and research, the Vice president of
the General Academy of automobile engineering research, Dean of Beijing Research Institute, the department head of market
department, brand public relations, product planning department, and vice deputy President and Secretary of the Party committee of
the Research Institute, the spokesman of company news, and the director of the Institute of styling design.
Mr. Ye Pei, the executive vice president and general manager and the secretary of the party committee of the passenger car
marketing department, Secretary of the party committee, deputy director of the passenger car operation management committee, born
in 1975, master's degree, engineer. He once served as the deputy chief of the Jiangling Engine Branch General Administration Division,
deputy chief of the quality division, deputy director of the quality management department, assistant general manager of Nanjing
Changan Automobile Co., Ltd., deputy minister of quality and director of the quality evaluation and improvement department. Director
of Market Quality Office, deputy director of the company's office, general manager of Nanjing Changan Automobile Co., Ltd.,
Secretary of the party committee, Deputy general manager of commercial vehicle business department and manufacturing logistics
Department of commercial vehicle business department, Secretary of the party branch, assistant to the general manager of the company,
Secretary of the strategic planning department, Secretary of the party branch, general manager and party secretary of the car sales
department, vice president of Changan Automobile.
Mr. Zhao Fei, the executive vice president and executive vice president of Changan Ford, Secretary of the party committee, born
in 1974, master's degree, senior engineer. He used to be the technical director and technical quality manager of the engine Department
of Changan Ford Mazda Automobile Co., Ltd.; Engine Director of Changan Ford Mazda Automobile Co., Ltd..; Institute Director of
71
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chang 'an Automobile Research Institute Engine Technology; Deputy director of Chang 'an Engine 4 Factory; China Chang'an Group's
deputy general manager of science and technology development department; Director and General Manager of Harbin Dongan
Automobile Engine Manufacturing Co. Ltd.. Party secretary and chairman of Harbin Dongan automobile engine manufacturing Co.,
Ltd., assistant to President and minister of strategic planning, party branch secretary, vice president of Changan Automobile.
Mr. Chen Wei, Vice President and Director of Safety Production of the company, Deputy Director of the European Business
Management Committee, Secretary of the Party Committee of Lingyao Automobile. Born in 1972, undergraduate, engineer. He once
served as secretary of the Youth League Committee of Chang 'an Automobile Manufacturing Plant, director of the factory office, deputy
director, director, and party committee secretary; Vice President of Personnel and Secretary of Discipline Committee of Changan Ford
Co., Ltd.; Chang 'an Automobile Manufacturing and Logistics Department Minister, Party Branch Secretary, Director of the OTD
Project of the company, General Manager of Beijing Chang' an Automobile Company, Secretary of the Party Committee, and Director
of the Beijing Research Institute Construction Project.
Mr. Li Mingcai, vice president and General Manager of International Sales Company, General Counsel of the Company, and
Representative of Managers of Integration of Industrialization and Industrialization. Born in 1981, master's degree. He used to be the
acting manager and manager of the sales department of Chongqing Changan Automobile International Sales Service Co., Ltd.. Changan
Automobile Overseas Business Development Department Assistant General Manager and Sales Regional Manager, Deputy General
Manager of Overseas Business Development Department, General Manager of International Sales Company, Deputy General Manager
of Changan Automobile Overseas Business Development Department, Director of Russian JV Project, Brazilian Project Manager,
general manager of overseas business department.
Ms. Li Jun, the Secretary of BOD and the Vice Director of Capital Operation Department, was born in 1969, MBA, senior
accountant. She used to be the Vice Director of Security Investment Office, Director of Capital Operation Office of the Financial
Department, Director of the BOD Office, Vice director of the finance department of the Company.
Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether get
Name of shareholders’ Position in shareholders’ work allowance in
Name Term start date Term end date
work unit unit shareholders’ work
unit
China South Industries the Assistant President of China
Zhu Huarong Group Corp、China South Industries Group Corp, N
Changan the director of China Changan
the employee director, director
of the Audit and Risk
Management Department
China South Industries (Office of the Supervisory Y, Receiving the
Zhou Zhiping Group Corp、China Board) of China South Payment allowance
Changan Industries Group Corporation, in China Changan
chairman, president and party
secretary of China Changan
Automobile Group
China South Industries Director of the Strategic
Tan Xiaogang Y
Group Corp Development
Zhang Bo China South Industries Director of Finance Department Y
72
Chongqing Changan Automobile Company Limited 2020 Annual Report
Group Corp
Director of Information
China South Industries
Liu Gang Department of Science and Y
Group Corp
Technology Quality Network
China South Industries Audit and Risk Department
Yan Ming Y
Group Corp Senior Specialist
Audit and Risk Management
China South Industries Department (Office of
Zhao Jun Y
Group Corp Supervisors Affairs)
Intermediate Specialist
China South Industries Deputy Director of Legal
Sun Dahong Y
Group Corp Department
Employment in other work unit
√Applicable □ Not applicable
Whether get
Term start Term end
Name Name of other work units Position in other work units allowance in
date date
other work unit
Dean of Capital Finance Research Institute, China
University of Political Science and Law, second-level
professor, doctoral supervisor; chief expert of major
projects of the National Social Science Fund; legal
China University of counsel of the State-owned Assets Supervision and
Liu Jipeng Political Science and Administration Commission of the State Council; vice Y
Law chairman of China Enterprise Reform and
Development Research Association; independent of
China Association of Listed Companies Deputy
Director of the Board Committee; Member of the Legal
Advisory Committee of the Shenzhen Stock Exchange
the dean of the Automobile Evaluation Institute, dean o
China Energy&
of Beijing invisible unicorn information technology
Li Qingwen Automobile Media Y
institute and vice chairman of the China Automobile
Group
Talent Research Association
Founder, Chairman, Senior Engineer, Beijing Cyber
Beijing Saiboyingjie
Tan Xiaosheng Yingjie Technology Co., Ltd., Founder of Zhengqi Y
Technology Co., Ltd
College
Chairman and CEO of IDEO , adjunct professor of
Jilin University, the vice president of the China
Federation of Industry and Commerce Automobile
Pang Yong IDEO Y
Dealers, the vice president of the China-Europe Alumni
Automobile Industry Association, a member of the
Jiusan Society, and a member of Alxa SEE.
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Deputy General Manager of Development Planning
China Life Insurance Department of China Life Pension Insurance Co., Ltd.,
Wei Xinjiang Y
(Group) Senior Researcher of China Life Financial Research
Institute
a professor and director of the Department of
Automotive Engineering of Tsinghua University,
Chen Quanshi Tsinghua University director of the Electric Vehicle Research Office, and Y
honorary director of the Electric Vehicle Branch of the
China Automobile Engineering Society.
a professor at the School of Civil and Commercial Law
of Southwest University of Political Science and Law,
Cao Xingquan Southwest University Y
and a doctoral tutor in the direction of civil and
commercial law
Position in other
This table only shows the main office performance and position of independent directors.
work unit
Securities regulatory agency’s punishment to the current and former directors, supervisors and senior
management during the reporting period in recent three years.
□Applicable √Not applicable
Ⅳ. Remuneration of directors, supervisors and senior management
Payment decision-making process, determination basis, the actual payment of directors, supervisors and senior managers
Decision-making process: The annual remuneration of the company's directors, supervisors, and senior executives, except for
independent directors, is issued in accordance with the relevant remuneration management regulations and standards of China South
Industries Group Corporation and based on the achievement of performance targets. Payment of company independent directors is
prescribed by the board of directors and submitted to the board of directors of the company, and approved by the shareholders' general
meeting.
The basis: the senior management evaluation is divided into annual appraisal, mid-term assessment, term-change assessment and
"look back" examination. Annual appraisal is to evaluate the business performance which senior management is in charge of, and the
employee representatives and part of the units give to democratic appraisal or special evaluation on senior management, the assessment
results will feedback to themselves in time on the problems existing in their work and relevant suggestions for improvement, which
will be rectified in the coming new year. At the same time the assessment results will be linked with the annual performance award.
Mid-term assessment is mainly to evaluate the business performance which senior management is in charge of, assessment results are
related to the targeted training, position promotion, post communication, etc; term-change assessment is that the employee
representative gives democratic evaluation on all the senior management and does special visit to part of unit, and the assessment
results are related to the targeted training, position promotion, post communication training and post appointment of the senior
management; new office head "look back" examination is mainly to look back the adjusted team, understand the working status of the
new team in time, check the configuration effect of the new group, promote the new group into role as soon as possible, and reduce the
risk of personnel employment.
Actual payments: Senior management staff will be paid a monthly basic salary, and annual performance awards and special awards
will be cashed out in a lump sum in the current period based on the annual assessment. In 2020, directors, supervisors and senior
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Chongqing Changan Automobile Company Limited 2020 Annual Report
executives who receive remuneration from the company will receive a total of 27.8058 million yuan in remuneration payable from the
company.
Payment of directors, supervisors and senior managers got from the company during the reporting period
Total earning from
Name Position Gender age status the
company(yuan)
Chairman, Secretary of the Party
Zhu Huarong M 55 Present 2,028,522
Committee
Director, President, Deputy Secretary
Wang Jun M 48 Present 1,477,221
of the Party Committee
Zhou Zhiping Director M 50 Present -
Liu Gang Director M 54 Present -
Tan Xiaogang Director M 57 Present -
Zhang Bo Director M 42 Present -
Zhang Deyong Director, Chief accountant M 46 Present 1,901,256
Liu Jipeng Independent Director M 64 Present 120,000
Li Qingwen Independent Director M 65 Present 120,000
Chen Quanshi Independent Director M 75 Present 120,000
Ren Xiaochang Independent Director M 64 Present 120,000
Pang Yong Independent Director M 51 Present 120,000
Tan Xiaosheng Independent Director M 50 Present 120,000
Wei Xinjiang Independent Director M 51 Present 120,000
Cao Xingquan Independent Director M 49 Present 120,000
Yan Ming Chairman of the supervisory M 55 Present -
Sun Dahong Supervisor M 54 Departure -
Zhao Huixia Supervisor M 60 Present -
Wang Yanhui Employee Supervisor F 54 Present 984,878
Luo Yan Employee Supervisor F 46 Present 314,536
Deputy Secretary of the Party
Yuan Mingxue M 52 Present 1,919,865
Committee
Liu Bo Executive vice president M 54 Present 1,728,522
He Chaobing Executive vice president M 53 Present 1,440,522
Zhang Jingjing Executive vice president F 54 Departure 1,710,341
Li Wei Executive vice president M 54 Present 1,428,522
Hua Zhanbiao Commission for Discipline Inspection M 53 Present 1,428,522
Tan Benhong Executive vice president M 45 Present 1,464,522
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Liu Zhengjun Executive vice president M 55 Departure 1,731,248
Ye Pei Executive vice president M 45 Present 2,018,755
Zhao Fei Executive vice president M 46 Present 1,411,155
Chen Wei vice president M 48 Present 1,452,522
Li Mingcai vice president M 39 Present 1,464,522
Li Jun the Secretary of BOD F 51 Present 940,371
Total -- -- -- -- 27,805,802
Stock-ownership incentive awarded to directors, supervisors and senior managers during the reporting period
□ Applicable √ Not applicable
Ⅴ. Core technology team or key technical personnel changes during the reporting period (not
the directors, supervisors and senior management)
During the reporting period, the company's core technical team and key technical personnel remained stable.
Ⅵ. The Employees of the Company
1. The number of employees, professional composition and education level
Number of employees in the parent company(persons) 27,835
Number of employees in major subsidiaries(persons) 12,463
Total number of active employees(persons) 40,298
Total number of current salaried employees(persons) 40,298
Number of retired employees whose parent company and major subsidiary
6,509
bear the costs(persons)
Professional composition
Professional component categories Professional Composition(persons)
Production personnel 25,984
Sales staff 1,708
Technicians 8,054
Finance staff 379
Administrators 402
Managers 3,771
Total 40,298
Educational Background
Type of education Number（persons）
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Chongqing Changan Automobile Company Limited 2020 Annual Report
PHD 100
Postgraduate 1,961
Bachelor degree 11,402
University specialty 9,353
Secondary school, high school and corresponding education 15,358
Secondary and below 2,124
Total 40,298
2. Compensation policy
The company continues to deepen the reform of the distribution system, improve the market-based distribution mechanism,
adhere to the performance-oriented, remuneration and benefit linkage mechanism, and comprehensively carry out labor cost-linked
operation management, which forces business departments to improve operating quality, promote efficiency, benefit improvement and
value creation. The company continues to establish and improve the medium and long-term incentive and restraint mechanism, closely
binding the medium and long-term operations of the core and backbone companies, and support the company's strategic development.
3. Training plan
The company’s employee training will focus on Changan Automobile’s third entrepreneurship-the strategic deployment of
innovation and entrepreneurship, with “firm transformation, innovation, breakthrough digital drive, quality improvement and efficiency
improvement” as the key, focusing on the training of six key capabilities, and doing a good job in the annual education of all employees
in the L sequence. The training will fully integrate and utilize social resources, solidly promote training projects at all levels, create a
new type of talent team that supports the strategy, and promote the company's transformation into a smart low-carbon travel technology
company
4. Outsourcing of services
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 8 Corporate Governance
I. The basic situation of corporate governance
In strict accordance with the requirements of the Company Law, the Securities Law and the relevant laws and
regulations of the CSRC, the Company continuously improved the corporate governance structure and promoted the
standard operation of the Company. The actual situation of the corporate governance of the Company is in line with
the relevant requirements of the CSRC normative documents on corporate governance.
The company has established an effective internal control system over the financial report. According to
company’s operation and management characteristics, the company strictly implemented the "Enterprise Accounting
Standards", improved the basic accounting management, established a sound financial system, optimized accounting
and statements preparation process, strengthened the financial supervision, conducted the in-depth implementation
of financial management, established the management foundation work, accounting and finance management
authorization, the monetary fund management, financing, purchasing and payment, fixed assets, projects under
construction, accounting policy, accounting estimate, consolidated financial statements, cost management, inventory
management, financial analysis and other financial management system to ensure the quality of accounting
information and the safety of the Company property. According to internal control deficiencies identified standards
of the financial report, there is no internal control defects over financial reporting in the report period. The full text
of the internal control self-evaluation report is published on http://www.cninfo.com.cn on April 20, 2021.
Whether there are differences between corporate governance and the related requirements of "company law"
and China CSRC.
□yes √no
There is no difference between corporate governance and the related requirements of "company law" and China
CSRC.
Ⅱ. Independent completion situation in terms of business, personnel, assets,
organization and finance which is relative to the controlling shareholders
The company and the controlling shareholders are fully independent in terms of business, assets, personnel,
organization and finance.
Ⅲ. Competition situation
In December 2009, according to the national “Automobile Industry Adjustment and Revitalization Plan”
regarding promoting auto enterprise merger restructuring and further optimization of state-owned economy strategy
layout requirements, the actual controller of the company China South Industries Group Corporation and China
Aviation Industry Group Company proceeded industry restructuring, China Aviation Industry Group Company
transferred 100% equity of Jiangxi Changhe Automobile Co., LTD free. (hereinafter referred to as "Changhe
Automobile") and 100% stake of Harbin Hafei Automobile Industry Group co., LTD. (hereinafter referred to as
"Haqi group") into the company's controlling shareholder China Changan Automobile Group Co., LTD. (hereinafter
referred to as "China Changan").This above-mentioned behavior led to competition between the company and
78
Chongqing Changan Automobile Company Limited 2020 Annual Report
subordinate enterprise of China Changan, the controlling shareholder. To finally solve the possible competition and
better maintain the interests of company’s investors, the company’s controlling shareholder China Changan
commitment:⒈When Jiangxi Changhe Automobile Co., Ltd. and Harbin Hafei Automobile Industry Group Co.,
LTD. can make profits for two successive years with sustainable development ability and improved management
level, it’s proposed to affiliate the two companies into Changan automobile. In October 28, 2013, the controlling
shareholder of China Changan transferred Jiangxi Changhe Automobile Co. Ltd. to Jiangxi provincial state owned
enterprise assets (Holdings) Limited, China Changan proposed Jiangxi Changhe Automobile Co. Ltd. injected
commitment matter was removed. In order to solve the possible horizontal competition between Hafei Automobile
Co., Ltd. and the company, on January 25, 2019, Haqi Group, a subsidiary of the company's controlling shareholder
China Changan, transferred 38% of the shares of Hafei Automobile Co., Ltd. to Harbin Yungu Automobile. Industrial
Development Co., Ltd., Haqi Group has lost control of Hafei Automobile Co., Ltd.
IV. Annual shareholders meeting and interim shareholders meeting during the
reporting period
1、Shareholders meeting during the reporting period
Investors'
Meeting Opening Disclosure
Type participation Disclosure Index
Session Time Time
ratio
2020 First
http//www.cninfo.com.cn 2020 First Interim Shareholders
Interim Jan. 13,
Interim 44.572% Jan. 14, 2020 Meeting Resolution Announcement(Announcement Number:
Shareholders 2020
2020-04)
Meeting
2019 Annual
May. 22, http//www.cninfo.com.cn 2019 Annual Shareholders Meeting
Shareholders 59.488% May. 23, 2020
Annual 2020 Resolution Announcement(Announcement Number: 2020-44)
Meeting
2020 Second
http//www.cninfo.com.cn 2020 Second Interim Shareholders
Interim June. 22,
Interim 46.695% June. 23, 2020 Meeting Resolution Announcement(Announcement Number:
Shareholders 2020
2020-55)
Meeting
2020 Third
http//www.cninfo.com.cn 2020 Third Interim Shareholders
Interim August. 10, August. 11,
Interim 16.823% Meeting Resolution Announcement(Announcement Number:
Shareholders 2020 2020
2020-74)
Meeting
2020 Fourth
http//www.cninfo.com.cn 2020 Fourth Interim Shareholders
Interim September. October. 9,
Interim 20.783% Meeting Resolution Announcement(Announcement Number:
Shareholders 30, 2020 2020
2020-85)
Meeting
2、Preferred shareholders’ request to hold the interim shareholders meeting with restoration
of voting rights
□Applicable √ Non-applicable
V. Duties performed by independent directors during the reporting period.
1、Independent directors attend board of directors and the shareholders meeting
Independent directors attend board of directors and the shareholders meeting
Names of Times of Times of Times of Times of Times of Whether absent
independent attending the
board of directors presence attendance by entrust absence from the meeting
directors
during the report
79
Chongqing Changan Automobile Company Limited 2020 Annual Report
period communication attendance for two
mode consecutive times
Liu Jipeng 17 2 15 N
Li Qingwen 17 2 15 N
Chen Quanshi 17 1 15 1 N
Ren Xiaochang 17 2 15 N
Pang Yong 17 2 15 N
Tan Xiaosheng 17 2 15 N
Wei Xinjiang 17 1 15 1 N
Cao Xingquan 17 2 15 N
Times for independent directors
3
attending the shareholders meeting
The explanation on absence in two consecutive board of directors meetings
□Applicable √ Non-applicable
2、Independent directors express disagreement to company related matters
Whether independent directors express disagreement to company related matters.
□ Yes √ No
Independent directors did not express disagreement to company related matters during the reporting period.
3、Other explanation on the fulfillment of responsibility of independent directors
Whether the suggestions of Independent directors are adopted or not
√Yes □No
Explanation on whether the suggestions of Independent directors are adopted or not
During the reporting period, the company adopted the proposals of independent directors on the equity acquisition
and related transactions and other aspects.
VI. Duty performance of specialized committees of the board of directors during
the report period
1、Audit Committee
The audit committee under the board of directors consists of one non-independent directors and two
independent directors. The chairman of the committee is Mr. Liu Jipeng, who is an independent director. During the
reporting period, the audit committee held 6 meetings and performed the following duties:
1) Review the overall audit plan and related audit requirements for 2019;
2) Review the financial and accounting statements prepared by the company, and will maintain close
communication with the auditors, urge the accounting firm to submit audit reports within the agreed time limit;
review and agree on the 2020 Action Plan of the Audit and Legal Department;
3) After the Ernst & Young Hua Ming issued 2019 annual audit report, the audit committee reviewed the 2019
annual financial statements (AUDIT) and major adjustments related to accounting firms, concluded the audit work
of the Ernst & Young Hua Ming. The audit committee considered that Ernst & Young Hua Ming had professional
competence, worked diligently, maintained their independence in audit, and completed 2019 annual audit task on
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Chongqing Changan Automobile Company Limited 2020 Annual Report
time. The audit committee voted and made resolutions on company's annual financial report, and agreed to submit
the 2019 financial report to the board of directors for approval; Review the proposal on Recruitment of 2020 Annual
Financial Report Auditor and Recruitment of 2020 Annual Internal Control Report Auditor, and agreed to submit the
proposal to the board of directors for approval of continuing to hire Ernst & Young Hua Ming as the company's 2020
annual financial report auditor and 2020 Annual internal control report auditor; Review the internal control audit
report of 2019, internal control self-evaluation report of 2019 and audit work report of the first quarter of 2020.
4) Review the report on audit and inspection in the half year of 2020;
5) Review the internal control report of the third quarter of 2020;
6) Review the overall audit plan and relevant audit requirements for 2020.
2、Compensation and Review Committee
The compensation and review committee under the board of directors consists of 3 independent directors. The
chairman of the committee is Mr. Chen Quanshi. During the reporting period, the committee held 3 meetings and
performed the following duties:
1)Review and agree to the "Bill on the Cancellation of Some Stock Options of the Company".
2)Review and agree to the motion of the company's A-share restricted stock incentive plan (Draft) and its
abstract, the motion of the company's A-share restricted stock incentive plan implementation assessment
management measures, and the motion of requesting the general meeting of shareholders to authorize the board of
directors to handle matters related to equity incentive;
3) Review and agree to the motion on the annual salary distribution plan for deputy management performance
in 2019.
3、Compensation and Review Committee
The strategy and investment committee under the board of directors consists of three non-independent directors
and one independent director. The chairman is Mr.Zhu Huarong. During the reporting period, the strategy and
investment committee held 6 meetings and performed the following duties:
1) Review and approve the proposal on participating in T3 technology platform company;
2) Review and agree to the motion on the company's investment plan in 2020, the motion on the company's
financing plan in 2020, the motion on the bill pool business, and the motion on the company's forward foreign
exchange purchase transaction;
3) Review and agree to 11 proposals related to non-public offering of A-shares, including the proposal on the
company's compliance with the conditions for non-public offering of A-shares;
4) Review and agree to the financial statements of 2019 and financial budget of 2020;
5) Review and agree to the proposal on the disposal of trading financial assets at the right time;
6) Review and agree to the proposal on forward foreign exchange settlement of subsidiaries of the company.
Ⅶ. The work of the board of supervisors
The board of supervisors found whether the company was at risk or not in the supervision during the report
period
□ Yes √ No
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Chongqing Changan Automobile Company Limited 2020 Annual Report
The Board of Supervisors supervised and inspected the legal compliance of the company's financial situation,
"three important and one big" decisions, business management activities, and implementation of major strategies.
The Supervisory Board has no objection to the supervision matters during the reporting period.
Ⅷ. The evaluation and incentive of senior management
For details, please refer to Section 7 of this year's report. "IV. Remuneration of directors, supervisors, and senior
management."
Ⅸ. Internal Control
1、Significant Deficiency of Internal Control found during the report period
□ Yes √ No
2、Self-assessment report of internal control
Disclosure date of self-assessment report of internal control April. 20, 2021
Disclosure index of self-assessment report of internal control http://www.cninfo.com.cn
proportion of total asset in the assessment accounting for the total asset in the financial statement 95.97%
proportion of revenue in the assessment accounting for the revenue in the financial statement 98.18%
Deficiency Definition Standard
Type Financial Report Non Financial Report
1.Lack democratic decision-making procedure or
1. Fraud behavior of the directors, supervisors
violation of democratic decision-making procedure
and senior management.
2. The company has corrected the published 2.Violate national laws and regulations and get
financial report, the significant wrong report due punished
to fraud and mistakes, the significant mistakes in 3.Great loss of middle and senior management and
qualitative standard the financial report found by certified public senior technical personnel
accountants, but not found by the company’s 4.Frequent media negative news with a large range
internal control. 5.Signifant business lacks regulation control or
3. The supervision of audit committee on the regulation system becomes ineffective
company’s external financial report and internal
6.The significant deficiencies of internal control is
control of financial report is not effective.
not corrected
The amount of misstatement of the financial Determine the internal control deficiencies in
quantitative standard statements falls within the following ranges: financial reporting by reference to the quantitative
Wrong report ≥ 1% of total asset criteria.
Financial Report Major 0
Defects
Non-financial reporting
significant number of 0
defects
Financial Reporting Key 0
Number of defects
Non-financial reporting
Number of important 0
defects
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Ⅹ. Internal control audit report
√Applicable □Not applicable
deliberations in the internal control audit report
The audit opinion of the internal control audit report compiled by Ernst & Young Hua Ming Accounting Firm:
Chongqing Changan Automobile Co., Ltd keeps the effective financial report internal control on significant aspects
from Dec.31st, 2020, according to “Basic Norms of Enterprise Internal Control” and other related regulations.
Disclosure date of audit report of
April.20, 2021
internal control
Disclosure index of audit report of Internal control audit report will be published on
internal control http://www.cninfo.com.cn on April.20, 2021
type of opinion on internal control audit
standard and unqualified opinion
report
Whether there is huge deficiency in the
No
non-financial report
Whether the accounting firm issued non-standard internal control audit report or not?
□ Yes √ No
Whether the internal control audit report issued by the Accounting Firm agreed with the self-assessment
report of the board of directors or not?
√ Yes □ No
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 9 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange
and fails to be fully paid up or not due on maturity until the approval of the annual
report ?
□ Yes √ No
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Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 10 Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited
85
Chongqing Changan Automobile Company Limited 2020 Annual Report
Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited:
Opinion
We have audited the accompanying financial statements of Chongqing Changan Automobile
Company Limited, which comprise the consolidated and the company balance sheet as at 31
December 2020, and the consolidated and the company income statements, the statements
of changes in equity and the cash flow statements for the year then ended and notes to the
financial statements.
In our opinion, the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly, in all material respects, the consolidated and the Company’s
financial position as at 31 December 2020, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting
Standards for Business Enterprises (“ASBEs”).
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with China Code of Ethics for Certified Public Accountants (the
“Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that
context.
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Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial statements.
Key audit matter How our audit addressed the key audit
matter
Provision for warranties
According to after-sales maintenance contracts or With regard to the warranty provisions
related national laws and regulations, Chongqing audited by us:
Changan Automobile Company Limited provides
warranties on automobile and undertakes to repair We understood and evaluated
or replace items that fail to perform satisfactorily the process of the warranty
based on certain pre-determined conditions. In provisions. In addition, we tested
addition, in order to maintain the quality and safety the key controls and application
of the sold vehicle, Chongqing Changan Automobile controls over the process of the
Company Limited also promotes a recall based on warranty provisions.
needs. Chongqing Changan Automobile Company
Limited should estimate and recognize the warranty We assessed the reasonableness
costs and the corresponding liabilities. and evaluated the major
assumptions of management’s
Provisions for warranties granted by Chongqing warranty provision models. We
Changan Automobile Company Limited for the tested the samples of payment of
vehicles sold are recognized based on sales volume the warranty provisions and tested
and past experience of the cost of repair and the mathematical accuracy of
replacement, and labor cost, which involves a calculations therein by re-
number of assumptions and judgments. Extra performing the calculations
recalls are recognized based on the vehicles regarding the balance of the
involved and the estimated average cost of repair provisions.
and replacement, and labor cost, which involves a
number of assumptions and judgments. Any We reviewed the adequacy of
increase or decrease in the provision would have a disclosures in the financial
significant impact on the financial statements. statements.
Refer to Note III 21, 30 and Note V 27 of the
consolidated financial statements for the
disclosures of the provision for warranties.
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Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
Key audit matter How our audit addressed the key audit
matter
Capitalization of internal development costs
The research and development activities With regard to the capitalization of internal
launched by Chongqing Changan Automobile development costs audited by us:
Company Limited mainly include technology
development, product process design and We understood, evaluated and
product manufacturing process design. validated the key controls over the
Management capitalized the costs on capitalization of internal development
development projects met the criteria set out in costs.
the accounting standard for capitalization.
We assessed the criteria set by the
The expenditures in development stage are management related to the
capitalized that should meet all the conditions capitalization of the costs under
including technically feasible, use or sale development stage. We assessed
intention, market, finance, resources, and etc. the accuracy of the start point and the
The judgment should be made according to stop point for capitalization of internal
every project and agreed by all related development costs. We also tested
departments. In addition, for projects that samples of projects to review the
have been capitalized in the past, the judgment feasibility reports and other reports for
whether the expenditures in development can important stages.
be continuing capitalized should be made
according the latest progress and future We reviewed the adequacy of
expectations of the project. The judgment disclosures in the financial statements.
made by the management would have a
significant impact on the financial statements.
Refer to Note III 17, 30 and Note V 16 of the
consolidated financial statements for the
disclosures of capitalization of internal
development costs.
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Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Other informantion
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises
the information included in the annual report, other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs, and for designing, implementing and maintaining
such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting, unless the management
either intends to liquidate the Company or to cease operations or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
89
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Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
generally considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation including the disclosures, structure and content of the
financial statements, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
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Ernst & Young Hua Ming Shen Zi (2021) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Qiao Chun
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
(Engagement partner)
Hu Yan
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 17 April 2021
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Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020/12/31 2019/12/31
Current assets
Cash 1 32,001,775,600.07 10,066,171,353.48
Financial assets held for trading 2 204,254,400.00 2,419,476,200.00
Notes receivable 3 28,371,541,054.75 26,805,635,587.19
Accounts receivable 4 2,141,197,139.45 838,314,076.82
Prepayments 5 460,703,603.80 623,801,896.07
Other receivables 6 723,919,037.36 3,731,755,992.46
Inventories 7 5,967,516,230.57 3,375,441,488.37
Contract assets 8 1,450,031,414.61 -
Other current assets 9 1,568,711,870.61 1,746,120,128.04
Total current assets 72,889,650,351.22 49,606,716,722.43
Non-current assets
Long-term equity investments 10 12,109,089,795.67 11,008,336,989.09
Other equity instrument
11 691,990,000.00 734,506,100.00
investment
Investment property 12 6,876,138.16 7,102,849.72
Fixed assets 13 26,436,757,696.96 26,939,490,554.19
Construction in progress 14 1,048,036,148.70 1,729,803,028.43
Intangible assets 15 4,946,035,052.46 5,209,619,313.49
Development expenditure 16 596,577,787.95 814,745,464.20
Goodwill 17 48,883,188.37 9,804,394.00
Long-term deferred expenses 18 10,642,512.51 14,327,639.90
Deferred tax assets 19 2,131,266,677.52 1,542,600,534.93
Total non-current assets 48,026,154,998.30 48,010,336,867.95
TOTAL ASSETS 120,915,805,349.52 97,617,053,590.38
The notes form an integral part of the financial statements.
92
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020/12/31 2019/12/31
Current liabilities
Short-term loans 20 578,000,000.00 229,580,000.00
Notes payable 21 17,574,014,553.46 13,430,543,294.23
Accounts payable 22 23,118,793,794.42 18,905,725,271.50
Contract liabilities 23 4,471,158,190.75
Advances from customers 23 - 2,315,641,685.78
Payroll payable 24 2,015,868,366.57 1,046,335,781.91
Taxes payable 25 1,292,001,263.86 889,092,442.80
Other payables 26 4,475,215,625.98 4,809,918,141.45
Contingent liabilities 27 3,125,170,942.46 3,352,580,839.28
Non-current liabilities due within
29 100,000,000.00 -
one year
Other current liabilities 28 5,842,758,104.08 4,253,942,761.77
Total current liabilities 62,592,980,841.58 49,233,360,218.72
Non-current liabilities
Long-term loans 29 955,300,000.00 55,300,000.00
Special payable 30 261,260,928.70 857,356,423.71
Long term payroll payable 31 41,634,000.00 45,932,000.00
Deferred income 32 3,469,017,384.88 3,194,291,079.21
Deferred tax liabilities 19 115,304,728.61 296,742,890.29
Total non-current liabilities 4,842,517,042.19 4,449,622,393.21
Total liabilities 67,435,497,883.77 53,682,982,611.93
The notes form an integral part of the financial statements.
93
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020/12/31 2019/12/31
Owners’ equity
Share capital 33 5,363,396,174.00 4,802,648,511.00
Capital reserves 34 10,930,781,918.64 5,366,097,594.66
Other Comprehensive Income 35 78,420,720.78 139,994,580.19
Special reserves 36 40,847,443.41 47,076,242.71
Surplus reserves 37 2,681,698,087.00 2,401,324,255.50
Retained earnings 38 34,315,048,892.26 31,271,171,559.60
Equity attributable to owners 53,410,193,236.09 44,028,312,743.66
Minority interests 70,114,229.66 (94,241,765.21)
Total equity 53,480,307,465.75 43,934,070,978.45
TOTAL LIABILITIES
AND OWNERS’ EQUITY 120,915,805,349.52 97,617,053,590.38
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
The notes form an integral part of the financial statements.
94
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020 2019
Operating revenue 39 84,565,544,146.58 70,595,245,133.28
Less: Operating cost 39 72,473,471,726.85 60,232,585,428.08
Tax and surcharges 40 3,228,273,573.84 2,488,057,067.83
Operating expenses 41 3,413,296,854.70 4,591,170,885.94
General and administrative 42
4,273,555,030.82 2,265,231,518.65
expenses
Research and development 43
3,153,888,007.29 3,169,063,761.13
expenses
Financial income 44 (210,224,449.63 ) (190,849,511.73 )
Interest expense 46,672,055.34 40,109,729.93
Interest income 341,543,220.81 245,520,358.56
Add: Other incomes 45 797,901,407.24 1,537,625,620.93
Investment income or loss 46 3,153,614,176.97 (2,109,369,113.31 )
Including: Investment
loss from associates and joint
venture (566,732,463.22 ) (2,158,815,891.20 )
Earnings from fair value
changes 47 2,035,390,665.86 889,154,888.69
Credit impairment loss 48 (107,743,059.89 ) (125,657,732.02)
Impairment loss 59 (1,517,807,107.17 ) (395,506,650.22 )
Gain on disposal of assets 50 29,465,046.07 ） 56,658,864.17
Operating profit/ (loss) 2,624,104,531.79 (2,107,108,138.38 )
Add: Non-operating income 51 61,938,556.89 49,703,849.18
Less: Non-operating expenses 52 89,458,043.64 184,962,615.32
Total profit/ (loss) 2,596,585,045.04 (2,242,366,904.52 )
Less: Income tax expense 53 (691,893,597.66 ) 406,764,986.36
Net profit/(loss) 3,288,478,642.70 (2,649,131,890.88 )
Classification by going concern
Net profit/(loss) from
3,288,478,642.70 (2,649,131,890.88)
continuing operations
Classification by ownership
attribution
Net profit/(loss) attributable to
3,324,251,164.16 (2,646,719,356.53 )
owners
Minority interests (35,772,521.46) (2,412,534.35 )
The notes form an integral part of the financial statements.
95
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020 2019
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners, 35 (61,573,859.41 ) 69,977,399.20
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods
Change in net liability or
assets from defined
benefit plan (207,000.00 ) 254,000.00
Changes in fair value of
other equity investment (33,588,685.00 ) 63,584,845.00
(33,795,685.00 ) 63,838,845.00
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Foreign currency reserve (27,778,174.41 ) 6,138,554.20
(27,778,174.41 ) 6,138,554.20
Total comprehensive income
attributable to minority
interests, net of tax - -
Total comprehensive income 3,226,904,783.29 (2,579,154,491.68 )
Total comprehensive income
attributable to owners 3,262,677,304.75 (2,576,741,957.33 )
Total comprehensive income
attributable to minority (35,772,521.46 ) (2,412,534.35 )
interest
Earnings per share 54
Basic earnings per share 0.68 (0.55 )
Diluted earnings per share Not Applicable Not Applicable
The notes form an integral part of the financial statements.
96
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2020
Equity attributable to owners
Other
Capital Special Surplus Retained
Share capital comprehensive Subtotal Minority interest Total equity
reserves reserves reserves earnings
income
At 31 December 2019 4,802,648,511.00 5,366,097,594.66 139,994,580.19 47,076,242.71 2,401,324,255.50 31,271,171,559.60 44,028,312,743.66 (94,241,765.21 ） 43,934,070,978.45
Changes during the year:
Total comprehensive income - - (61,573,859.41 ) - - 3,324,251,164.16 3,262,677,304.75 (35,772,521.46 ) 3,226,904,783.29
Capital contributed by owners and
capital decreases
1.Ordinary shares invested by
shareholders 560,747,663.00 5,426,124,109.65 - - - - 5,986,871,772.65 - 5,986,871,772.65
2.Acquisition of minority
shareholders - (1,175,706.59 ) - - - - (1,175,706.59 ) (11,074,002.41 ) (12,249,709.00 )
3.Others - 139,735,920.92 - - - - 139,735,920.92 210,264,079.08 350,000,000.00
Distribution of profit
1.Distribution to owners - - - - 280,373,831.50 (280,373,831.50 ) - - -
Special reserves
1.Provided - - - 75,056,248.96 - - 75,056,248.96 816,634.51 75,872,883.47
2.Ultilized - - - (81,285,048.26 ) - - (81,285,048.26 ) (481,014.92 ) (81,766,063.18 )
Acquire subsidiaries - - - - - - - 602,820.07 602,820.07
At 31 December 2020 5,363,396,174.00 10,930,781,918.64 78,420,720.78 40,847,443.41 2,681,698,087.00 34,315,048,892.26 53,410,193,236.09 70,114,229.66 53,480,307,465.75
The notes form an integral part of the financial statements.
97
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2019
Equity attributable to owners
Other
Capital Special Surplus Retained
Share capital comprehensive Subtotal Minority interest Total equity
reserves reserves reserves earnings
income
At 31 December 2018 4,802,648,511.00 5,057,242,440.17 235,509,930.44 41,222,369.10 2,401,324,255.50 33,707,011,170.31 46,244,958,676.52 (92,036,723.19 ) 46,152,921,953.33
Changes in accounting standard - - (165,492,749.45 ) - - 297,351,209.45 131,858,460.00 - 131,858,460.00
At 1 January 2019 4,802,648,511.00 5,057,242,440.17 70,017,180.99 41,222,369.10 2,401,324,255.50 34,004,362,379.76 46,376,817,136.52 (92,036,723.19 ) 46,284,780,413.33
Changes during the year:
Total comprehensive income - - 69,977,399.20 - - (2,646,719,356.53 ) (2,576,741,957.33 ) (2,412,534.35 ) (2,579,154,491.68 )
Capital contributed by owners and
capital decreases
1.The amount of share-
based payments recorded - (23,961,900.00 ) - - - - (23,961,900.00 ) - (23,961,900.00 )
in owners’ equity
2.Others - 332,817,054.49 - - - - 332,817,054.49 - 332,817,054.49
Distribution of profit
1.Distribution to owners - - - - - (86,471,463.63 ) (86,471,463.63 ) - (86,471,463.63 )
Special reserves
1.Provided - - - 79,135,417.54 - - 79,135,417.54 1,097,065.37 80,232,482.91
2.Ultilized - - - (73,281,543.93 ) - - (73,281,543.93 ) (889,573.04 ) (74,171,116.97 )
At 31 December 2019 4,802,648,511.00 5,366,097,594.66 139,994,580.19 47,076,242.71 2,401,324,255.50 31,271,171,559.60 44,028,312,743.66 (94,241,765.21 ) ) 43,934,070,978.45
The notes form an integral part of the financial statements.
98
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020 2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from sale of goods
or rendering of services 87,031,938,095.61 70,578,207,834.29
Refunds of taxes 444,012,154.77 603,916,897.39
Cash received relating to other
operating activities 55 2,038,287,059.25 4,019,161,557.69
Subtotal of cash inflows 89,514,237,309.63 75,201,286,289.37
Cash paid for goods and services 63,468,931,047.14 55,704,810,280.08
Cash paid to and on behalf of employees 6,048,636,349.99 5,633,184,648.81
Cash paid for all types of taxes 4,803,725,415.52 2,955,141,047.76
Cash paid relating to other
operating activities 55 4,516,991,017.74 7,026,402,074.33
Subtotal of cash outflows 78,838,283,830.39 71,319,538,050.98
Net cash flows from operating
activities 56 10,675,953,479.24 3,881,748,238.39
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 5,040,464,165.86 831,429,574.25
Cash received from return
on investment 1,100,783,602.42 1,386,844,687.60
Net cash received from disposal of
fixed assets, intangible assets
and other long-term assets 599,808,833.61 72,899,243.69
Cash received relating to other
investing activities 55 80,310,705.55 -
Subtotal of cash inflows 6,821,367,307.44 2,291,173,505.54
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 2,960,046,781.42 4,783,722,428.46
Cash paid for acquisition of
investments 152,201,597.00 1,002,064,416.73
Other cash disbursed in connection with
55 104,416,061.73 300,000,000.00
investment activities
Subtotal of cash outflows 3,216,664,440.15 6,085,786,845.19
Net cash flows from investing activities 3,604,702,867.29 (3,794,613,339.65 )
The notes form an integral part of the financial statements.
99
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes V 2020 2019
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing equity
6,342,679,154.12 -
investments
Including: cash received by the
subsidiary from absorbing
minority shareholders'
investment 4,620,000.00 -
Cash received from borrowings 2,223,525,472.30 304,880,000.00
Cash received relating to
other financing activities 55 34,712,775.00 32,839,805.56
Sub-total of cash inflows 8,600,917,401.42 337,719,805.56
Cash repayments of borrowings 875,105,472.30 216,594,120.00
Cash paid for distribution of dividends
or profits and interest
expenses 45,485,683.50 126,540,808.63
Cash paid relating to
other financing activities 55 632,935,841.72 395,159,204.54
Sub-total of cash outflows 1,553,526,997.52 738,294,133.17
Net cash flows from financing activities 7,047,390,403.90 (400,574,327.61)
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH (32,553,367.69 ) 25,760,488.96
NET INCREASE IN CASH
AND CASH EQUIVALENTS 21,295,493,382.74 (287,678,939.91)
Add: Opening balance of
cash and cash equivalents 9,360,474,674.89 9,648,153,614.80
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 56 30,655,968,057.63 9,360,474,674.89
The notes form an integral part of the financial statements.
100
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2020
(Expressed in Renminbi Yuan)
Notes
2020/12/31 2019/12/31
XIV
Current assets
Cash 25,238,014,025.38 6,563,020,335.56
Financial assets held
for trading 180,929,400.00 184,245,000.00
Notes receivable 27,248,111,565.13 25,837,326,483.09
Accounts receivable 1 5,464,541,185.63 5,094,270,365.72
Prepayments 294,088,044.01 403,105,316.24
Other receivables 2 1,990,616,778.83 2,597,314,344.40
Inventories 4,332,579,774.46 1,735,570,691.28
Contract assets 941,046,613.60 -
Other current assets 322,467,261.74 798,430,035.62
Total current assets 66,012,394,648.78 43,213,282,571.91
Non-current assets
Long-term equity investments 3 15,911,304,527.87 16,052,319,271.82
Other equity instrument
investment 681,630,000.00 724,309,400.00
Fixed assets 19,757,553,675.99 20,301,231,002.41
Construction in progress 586,144,839.34 1,545,211,000.22
Intangible assets 3,653,199,216.48 4,030,438,649.57
Development expenditure 555,569,523.02 431,774,377.27
Long-term deferred expenses 7,470,626.86 9,719,259.84
Deferred tax assets 1,803,491,965.40 1,318,884,054.48
Total non-current assets 42,956,364,374.96 44,413,887,015.61
TOTAL ASSETS 108,968,759,023.74 87,627,169,587.52
The notes form an integral part of the financial statements.
101
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2020
(Expressed in Renminbi Yuan)
2020/12/31 2019/12/31
Current liabilities
Short term loans 510,000,000.00 29,580,000.00
Notes payable 14,600,240,612.86 11,983,445,725.06
Accounts payable 18,770,044,628.44 15,601,432,751.74
Contract liabilities 3,885,522,883.33 -
Advances from customers - 1,870,992,349.08
Payroll payable 1,604,474,120.45 641,340,149.30
Taxes payable 1,045,768,022.62 453,619,905.66
Other payables 3,166,636,684.63 4,301,257,819.04
Contingent liabilities 2,196,924,682.57 2,413,434,397.36
Non-current liabilities due within
-
one year 100,000,000.00
Other current liabilities 5,235,294,795.79 3,400,065,879.02
Total current liabilities 51,114,906,430.69 40,695,168,976.26
Non-current liabilities
Long term loans 955,300,000.00 55,300,000.00
Long term payable 187,142,303.66 285,768,478.89
Long term payroll payable 21,657,000.00 22,747,000.00
Deferred income 2,112,507,625.97 2,135,615,106.85
Deferred tax liabilities 75,158,651.38 81,775,341.60
Total non-current liabilities 3,351,765,581.01 2,581,205,927.34
Total liabilities 54,466,672,011.70 43,276,374,903.60
Owner’s equity
Share capital 5,363,396,174.00 4,802,648,511.00
Capital reserves 10,440,896,902.52 5,014,772,792.87
Other comprehensive income 159,954,052.00 259,380,413.58
Special reserves 7,505,438.57 19,917,658.63
Surplus reserves 2,681,698,087.00 2,401,324,255.50
Retained earnings 35,848,636,357.95 31,852,751,052.34
Total owner’s equity 54,502,087,012.04 44,350,794,683.92
TOTAL LIABILITIES
AND OWNERS’ EQUITY 108,968,759,023.74 87,627,169,587.52
The notes form an integral part of the financial statements.
102
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes
2020 2019
XIV
Operating revenue 4 81,557,686,002.18 64,952,750,206.63
Less: Operating cost 4 71,325,749,326.52 56,966,369,777.83
Tax and surcharges 2,076,319,015.77 1,763,695,806.32
Operating expenses 2,676,426,234.73 3,173,277,654.38
General and administrative
expenses 3,508,937,049.67 1,433,878,532.92
Research and development 2,833,804,608.42 2,659,328,815.49
expenses
Financial income (240,206,881.20) (159,213,197.04)
Interest income 30,585,489.75 22,298,902.58
Interest expense 283,501,457.93 194,548,964.11
Add: Other income 219,840,648.40 765,866,705.17
Investment income/(loss) 5 5,645,410,110.30 (2,023,549,132.39)
Including: Investment income
from associates
and from joint venture (345,896,085.57) (2,081,317,451.25)
Earnings from fair value
8,051,845.07 60,705,000.00
changes
Impairment of credit (74,210,826.52) (121,430,481.42)
Impairment loss (960,333,823.74) (303,604,164.62)
Gain/(loss) on disposal of assets (12,218,555.20) 45,709,560.34
Operating profit 4,203,196,046.58 (2,460,889,696.19)
Add: Non-operating income 43,045,534.64 32,324,558.40
Less: Non-operating expenses 88,772,476.11 165,234,410.53
Total profit 4,157,469,105.11 (2,593,799,548.32)
Less: Income tax expense (473,687,949.10) 234,818,079.03
Net profit 4,631,157,054.21 (2,828,617,627.35)
Classification by going concern
Net profit from continuing
operations 4,631,157,054.21 (2,828,617,627.35)
The notes form an integral part of the financial statements.
103
Chongqing Changan Automobile Company Limited
INCOME STATEMENT (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Notes
2020 2019
XIV
Other comprehensive income,
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods:
Change in net liability or
assets from defined
benefit plan (52,000.00) 216,000.00
Changes in fair value of
other equity investment (33,727,490.00) 63,321,260.00
(33,779,490.00) 63,537,260.00
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Reclassification of financial assets
recognized in other
comprehensive income
amounts (65,646,871.58) -
Total comprehensive income 4,531,730,692.63 (2,765,080,367.35)
The notes form an integral part of the financial statements.
104
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Other
Share capital Capital reserves Special reserves Surplus reserves Retained earnings Total owner’s equity
comprehensive income
Balance at the end of the previous year and balance at the
4,802,648,511.00 5,014,772,792.87 259,380,413.58 19,917,658.63 2,401,324,255.50 31,852,751,052.34 44,350,794,683.92
beginning of the current year
Changes during the year:
Total comprehensive income - - (99,426,361.58 ) - - 4,631,157,054.21 4,531,730,692.63
Capital contributed by owners and capital decreases
1.Ordinary shares invested by shareholders 560,747,663.00 5,426,124,109.65 - - - - 5,986,871,772.65
Distribution of profit
1.Distribution to owners - - - - 280,373,831.50 (280,373,831.50) -
Special reserves
1.Provided - - - 47,093,693.47 - - 47,093,693.47
2.Ultilized - - - (59,505,913.53) - - (59,505,913.53)
Disposal subsidiaries - - - - - (354,897,917.10) (354,897,917.10)
At 31 December 2020 5,363,396,174.00 10,440,896,902.52 159,954,052.00 7,505,438.57 2,681,698,087.00 35,848,636,357.95 54,502,087,012.04
The notes form an integral part of the financial statements.
105
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Other
Share capital Capital reserves Special reserves Surplus reserves Retained earnings Total owner’s equity
comprehensive income
At 31 December 2018 4,802,648,511.00 4,705,917,638.38 149,525,803.58 19,835,367.61 2,401,324,255.50 34,682,279,143.32 46,761,530,719.39
Changes in accounting standard - - 46,317,350.00 - - 85,561,000.00 131,878,350.00
At 1 January 2019 4,802,648,511.00 4,705,917,638.38 195,843,153.58 19,835,367.61 2,401,324,255.50 34,767,840,143.32 46,893,409,069.39
Changes during the year:
Total comprehensive income - - 63,537,260.00 - - (2,828,617,627.35) (2,765,080,367.35)
Capital contributed by owners and capital decreases
1.The amount of share-based
- (23,961,900.00 ) - - - - (23,961,900.00)
payments recorded in owners’ equity
2.Others - 332,817,054.49 - - - - 332,817,054.49
Distribution of profit
1.Distribution to owners - - - - - (86,471,463.63) (86,471,463.63)
Special reserves
1.Provided - - - 49,268,965.50 - - 49,268,965.50
2.Ultilized - - - (49,186,674.48) - - (49,186,674.48)
4,802,648,511.00 5,014,772,792.87 259,380,413.58 19,917,658.63 2,401,324,255.50 31,852,751,052.34 44,350,794,683.92
At 31 December 2019
106
The notes form an integral part of the financial statements.
107
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2020 2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from sale of goods
or rendering of services 76,182,140,798.10 63,365,386,343.87
Cash received relating to other
operating activities 649,216,551.28 2,494,240,256.21
Subtotal of cash inflows 76,831,357,349.38 65,859,626,600.08
Cash paid for goods and services 56,827,422,505.14 50,430,826,053.22
Cash paid to and on behalf of
employees 4,447,227,440.62 3,965,479,429.67
Cash paid for all types of taxes 2,531,097,548.18 1,889,492,304.51
Cash paid relating to other
operating activities 4,442,718,068.09 6,407,581,336.30
Subtotal of cash outflows 68,248,465,562.03 62,693,379,123.70
Net cash flows from operating
activities 8,582,891,787.35 3,166,247,476.38
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from recovery
of investment 5,032,818,905.43 831,300,000.00
Cash received from return
on investment 1,706,242,444.17 1,395,166,228.50
Net cash received from disposal
of fixed assets, intangible assets
and other
long-term assets 4,999,947.95 60,445,420.20
Cash received relating to other
investing activities 16,388,900.00 -
Subtotal of cash inflows 6,760,450,197.55 2,286,911,648.70
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 1,884,767,686.71 4,021,334,954.67
Cash paid for acquisition of
investments 2,268,598,581.00 1,855,926,872.55
Cash paid relating to other
investing activities - 300,000,000.00
Subtotal of cash outflows 4,153,366,267.71 6,177,261,827.22
Net cash flows from investing activities 2,607,083,929.84 (3,890,350,178.52)
The notes form an integral part of the financial statements.
108
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2020 2019
CASH FLOWS FROM
FINANCING ACTIVITIES
Cash received from absorbing equity
5,988,059,154.12 -
investments
Cash received from borrowings 2,039,580,000.00 84,880,000.00
Sub-total of cash inflows 8,027,639,154.12 84,880,000.00
Cash repayments of borrowings 559,160,000.00 -
Cash paid for distribution of dividends
or profits and for
interest expenses 29,417,041.35 108,729,981.28
Cash paid relating to other financing
activities 1,187,381.47 -
Sub-total of cash outflows 589,764,422.82 108,729,981.28
Net cash flows from financing activities 7,437,874,731.30 (23,849,981.28 )
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH - -
NET INCREASE IN CASH
AND CASH EQUIVALENTS 18,627,850,448.49 (747,952,683.42 )
Add: Cash and cash equivalents at
beginning of year 6,563,020,335.57 7,310,973,018.99
CASH AND CASH EQUIVLANT
AT END OF YEAR 25,190,870,784.06 6,563,020,335.57
The notes form an integral part of the financial statements.
109
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a
company limited by shares registered in Chongqing, People’s Republic of China. It was
established on 31 October 1996 with an indefinite business period. The ordinary A shares of
Renminbi issued by the company and the B shares of domestically listed foreign shares have been
listed on the Shenzhen Stock Exchange. The company is headquartered at 260 Jianxin East Road,
Jiangbei District, Chongqing, China.
In September 2020, with the approval of the China Securities Regulatory Commission, the
company non-public issued 560,747,663 A-shares to 12 specific investors, including China South
Industries Group Co., Ltd. (hereinafter referred to as " China South Group "), China Changan
Automobile Group Co., Ltd. (hereinafter referred to as "China Changan") and South Industry
Assets Management Co., Ltd.(hereinafter referred to as "Southern Assets"), etc. After the
completion of the additional issuance, the total share capital increased to RMB 5,363,396,174.00.
Until December 31, 2020, the company’s controlling shareholder China Changan and its wholly-
owned subsidiary Zhonghui Futong (Hong Kong) Investment Company Limited held a total of
ordinary shares of the company 1,175,623,127 shares with an equity ratio of 21.92%. China
Changan’s parent company China South Group and its wholly-owned subsidiary South Assets and
South Industries International Holdings (Hong Kong) Company Ltd. hold 1,193,305,773 ordinary
shares of the company, with a 22.25% shareholding ratio. China Changan and China South Group
hold ordinary shares 2,368,928,900 in total with a shareholding ratio of 44.17%.
The Company and its subsidiaries collectively refer to as “the Group”, and its main business
activities are: the manufacturing and sales of automobiles (including cars), automobile engine
products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and
China South Group respectively.
According to the Articles of Association, the financial statements, which has been approved by
the board of directors on 17 April 2021, was submitted to general meeting of shareholders for
approval.
The scope of consolidation in the consolidated financial statement is determined based on
control. For the consolidation scope of this year, please refer to Note VII.
110
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
II BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for
Business Enterprises-Basic Standard and the specific standards issued and modified
subsequently, and the implementation guidance, interpretations and other relevant provisions
issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business
Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for
certain financial instruments. If the assets are impaired, the corresponding provisions should be
made accordingly.
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the
specific accounting policies and accounting estimates, mainly reflected in provision of accounts
receivables, inventory valuation, depreciation of fixed assets, intangible assets amortization,
condition of capitalization of research and development expense and revenue recognition and
measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 31
December 2020 and the financial results and the cash flows for the year then ended in accordance
with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated,
the unit of the currency is Yuan. Each entity in the Group determines its own functional currency
in accordance with the operating circumstances. At the end of the reporting period, the foreign
currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
Business combinations are classified into business combinations involving entities under
common control and business combinations involving entities not under common control.
111
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
4. Business combination (continued)
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory. For a business combination
involving entities under common control, the party which, on the combination date, obtains
control of another entity participating in the combination is the acquiring party, while that other
entity participating in the combination is a party being acquired. Combination date is the date on
which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving
entities under common control shall be measured at their carrying amounts at the combination
date as recorded by the party being acquired. The difference between the carrying amount of the
net assets obtained and the carrying amount of the consideration paid for the combination (or
the aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If
the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination
in which all of the combining entities are not ultimately controlled by the same party or parties
both before and after the combination. For a business combination involving entities not under
common control, the party that, on the acquisition date, obtains control of another entity
participating in the combination is the acquirer, while that other entity participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains
control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities
acquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognized and measured at cost, being the excess of the aggregate of the
fair value of the consideration transferred (or the fair value of the equity securities issued) and
any fair value of the Group’s previously held equity interest in the acquiree over the Group’s
interest in the fair value of the acquiree’s net identifiable assets. After initial recognition,
goodwill is measured at cost less any accumulated impairment losses. Where the aggregate of
the fair value of the consideration transferred (or the fair value of the equity securities issued) and
any fair value of the Group’s previously held equity interest in the acquiree is lower than the
Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses
the measurement of the fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities and the fair value of the consideration transferred (or the fair value of the equity
securities issued), together with the fair value of the Group’s previously held equity interest in the
acquiree. If after that reassessment, the aggregate of the fair value of the consideration
transferred (or the fair value of the equity securities issued) and the Group’s previously held equity
interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net
identifiable assets, the Group recognize the remaining difference in profit or loss.
112
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the
Company and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity
that is controlled by the Company (such as an enterprise, a deemed separate entity, or a
structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the
subsidiaries are prepared for the same reporting period as the Company, using consistent
accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows
relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the
subsidiary belong to minorities, the exceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under
common control, the operating results and cash flows of the acquiree should be included in the
consolidated financial statements, from the day that the Group gains control, till the Group
ceases the control of it. While preparing the consolidated financial statements, the acquirer
should adjust the subsidiary’s financial statements, on the basis of the fair values of the
identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under
common control, the operating results and cash flows of the acquiree should be included in the
consolidated financial statements from the beginning of the period in which the combination
occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control
elements, then the Group should reassess whether it has taken control of the investee.
6 Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation
refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed
and assumed by the joint ventures. Joint ventures refer to those joint venture arrangements, only
the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint
operation and conduct accounting treatment in accordance with relevant accounting standards
for business enterprises: assets it solely holds and its share of jointly-held assets based on its
percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its
percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from
sale of output from the joint operation based on its percentage; and separate costs and costs for
the joint operation based on its percentage.
113
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash
equivalents are short-term, highly liquid investments held by the Group, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional
currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency,
by applying to the foreign currency amount at the spot exchange rate on the transaction dates.
Foreign currency monetary items are translated using the spot exchange rate quoted by the
People’s Bank of China at the balance sheet date. The exchange gains or losses arising from
occurrence of transactions and exchange of currencies, except for those relating to foreign
currency borrowings specifically for construction and acquisition of fixed assets capitalized, are
dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at
historical cost remain to be translated at the spot exchange rate prevailing on the transaction
date, and the amount denominated in the functional currency should not be changed. Non-
monetary foreign currency items measured at fair value should be translated at the spot
exchange rate prevailing on the date when the fair values are determined. The exchange
difference thus resulted should be charged to the current income or other comprehensive income
account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries
presented in foreign currencies are translated into Renminbi as follows: asset and liability
accounts are translated into Renminbi at exchange rates ruling at the balance sheet date;
shareholders’ equity accounts other than retained profits are translated into Renminbi at the
applicable exchange rates ruling at the transaction dates; income and expense in income
statement are translated into Renminbi 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 subsidiaries is charged to the
current liquidation profit and loss in proportion to the settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using
the average exchange rate prevailing on the transaction month during which the cash flows occur.
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.
114
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to
the contractual provision of the instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated balance
sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has
assumed an obligation to pay the received cash flows in full without material delay to a third party
under a “pass-through” arrangement; and either (a) has transferred substantially all the risks and
rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled, or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and a recognition of a new liability, and the difference between the respective carrying amounts
is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade
date accounting. Regular way purchases or sales are purchases or sales of financial assets that
require delivery within the period generally established by regulation or convention in the
marketplace. The trade date is the date that the Group committed to purchase or sell a financial
asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them:
financial assets at fair value through profit or loss, financial assets at amortized cost and financial
assets at fair value through other comprehensive income. All affected related financial assets will
be reclassified only if the Group changes its business model for managing financial assets.
115
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Classification and measurement of financial assets (Continued)
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes
receivable arising from the sale of goods or rendering of services that do not contain significant
financing components or for which the Group has applied the practical expedient of not adjusting
the effect of a significant financing component due within one year, are initially measured at the
transaction price.
For financial assets at fair value through profit or loss, relevant transaction costs are directly
recognized in profit or loss, and transaction costs relating to other financial assets are included in
the initial recognition amounts.
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are met:
the financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows; the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. Financial assets at amortized cost are subsequently measured using the
effective interest method. Gains and losses are recognized in profit or loss when the asset is
derecognized, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both
of the following conditions are met: the financial asset is held within a business model with the
objective of both holding to collect contractual cash flows and selling; the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. Interest income is recognized using the
effective interest method. The interest income, impairment losses and foreign exchange
revaluation are recognized in profit or loss. The remaining fair value changes are recognized in
other comprehensive income. Upon derecognition, the cumulative fair value change recognized
in other comprehensive income is recycled to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading
as equity investments designated at fair value through other comprehensive income. Only the
relevant dividend income (excluding the dividend income explicitly recovered as part of the
investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included
in other comprehensive income, and no provision for impairment is made. When the financial
asset is derecognized, the accumulated gains or losses previously included in other
comprehensive income are transferred from other comprehensive income to retained earnings.
116
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Classification and measurement of financial assets (Continued)
Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortized cost and
financial assets at fair value through other comprehensive income are classified as financial
assets at fair value through profit or loss. Such financial assets are subsequently measured at fair
value with net changes in fair value recognized in profit or loss.
Classification and measurement of financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are directly recognized in profit or loss, and transaction costs relating
to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading are subsequently measured at fair value with net changes in
fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through
profit or loss are recognised in profit or loss, except for the gains or losses arising from the Group’s
own credit risk which are presented in other comprehensive income with no subsequent
reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method.
117
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Impairment of financial assets
On the basis of expected credit losses, the Group performs impairment treatment on financial
assets measured at amortized cost and equity instrument investments measured at fair value and
whose changes are included in other comprehensive income, and reserves for loss are recognized.
For receivables and contract assets that do not contain significant financing components, the
Group uses a simplified measurement method to measure the loss provision vased on the
expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group
assesses on each balance sheet date whether its credit risk has not increased significantly since
initial recognition, it is in the first stage. The Group measures the loss provision based on the
amount equivalent to the expected credit loss in the next 12 months, and calculates the interest
income based on the book balance and the actual interest rate; if the credit risk has increased
significantly since initial recognition but has not yet suffered credit impairment, it is in the second
at this stage, the Group measures the loss provision based on the amount equivalent to the
expected credit loss for the entire duration, and calculates the interest income based on the book
balance and the actual interest rate; If credit impairment occurs after initial recognition, it is in
the third stage. The amount of expected credit losses is measured over the entire duration of the
loss allowance, and interest income is calculated based on amortized cost and effective interest
rate. For financial instruments with low credit risk on the balance sheet date, the Group assumes
that their credit risk has not increased significantly since initial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items
and portfolios. The Group has considered the credit risk characteristics of different customers and
evaluated the expected credit losses of accounts receivable and other receivables based on the
ageing combination.
Please refer to Note VIII.3 for the disclosure of the Group’s judgment criteria for significant
increase in credit risk, the definition of credit impairment assets that have occurred, and
assumptions about the expected credit loss measurement.
When the Group no longer reasonably expects to be able to fully or partially recover the
contractual cash flows of financial assets, the Group directly writes down the book balance of the
financial asset.
118
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts; and there is
an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset,
the Group derecognizes the financial asset; and if the Group retains substantially all the risks and
rewards of the financial asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of
the financial asset, the Group determines whether it has retained control of the financial asset. In
this case: (i) if the Group has not retained control, it derecognizes the financial asset and
recognize separately as assets or liabilities any rights and obligations created not retained in the
transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an
associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned
processing materials, low-value consumables and spare parts.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase,
costs of conversion and other costs incurred in bringing the inventory to its present location and
condition. Weighted average method is assigned to the determination of actual costs of
inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If
the cost is higher than the net realizable value, provision for the inventory should be made
through profit or loss. If factors that resulted in the provision for the inventory have disappeared
and made the net realizable value higher than their book value, the amount of the write-down
should be reversed, to the extent of the amount of the provision for the inventory, and the
reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale. The
impairment provision should be made on a basis of each item of inventories according to the
difference between cost and net realizable value. For large numbers of inventories at relatively
low unit prices, the provision for loss on decline in value of inventories should be made by
category.
119
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
11. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a
long-term equity investment acquired through a business combination under common control,
the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at combination date. The
difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. Any other
comprehensive income previously recognized shall be accounted for on the same basis as would
have been required if the investee had directly disposed of the related assets or liabilities. The
portion recognized based on changes in the investee’s equity (other than net profit or loss, other
comprehensive income and profit appropriation) is charged to profit or loss upon disposal of such
long-term equity investment. For those partially disposed equity investments, gains or losses
upon disposal are proportionately recognized in profit or loss when they still constitute long-
term equity investments after the disposal and are fully charged to profit or loss when they are
reclassified to financial instruments after the disposal. For business combination involving
entities not under common control, the initial investment cost should be the cost of acquisition
(for step acquisitions not under common control, the initial investment cost is the sum of the
carrying amount of the equity investment in the acquiree held before the acquisition date and
the additional investment cost paid on the acquisition date), which is the sum of the fair value of
assets transferred, liabilities incurred or assumed and equity instruments issued. If the equity
investments in the acquiree involve other comprehensive income prior to the acquisition date,
when disposing of the investments, the relevant other comprehensive income will be accounted
for on the same basis as would have been required if the investee had directly disposed of the
related assets or liabilities. The portion recognized based on changes in the investee’s equity
(other than net profit or loss, other comprehensive income and profit appropriation) is charged
to profit or loss upon disposal of such long-term equity investment. The initial investment cost
of a long-term equity investment acquired otherwise than through a business combination shall
be determined as follows: for a long-term equity investment acquired by paying cash, the initial
investment cost shall be the actual purchase price has been paid plus those costs, taxes and other
necessary expenditures directly attributable to the acquisition of the long-term equity
investment; for those acquired by the issue of equity securities, the initial investment cost shall
be the fair value of the equity securities issued.
120
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
11. Long-term equity investments (continued)
The Company adopted cost method to account for long-term investments in the subsidiaries in
the separate financial statements of the Company. Control is the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial
investment. The cost of long-term equity investment should be adjusted in case of additional
investment or disinvestments. When cash dividends or profits are declared by the invested
enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has
jointly control, or significant influence on the investee enterprise. Joint control is the
contractually agreed sharing of control over an economic activity, and exists only when the
strategic financial and operating decisions relating to the activity require the unanimous consent
of the parties sharing control (the ventures). Significant influence is the power to participate in
the financial and operating policy decisions of an economic activity but is not control or joint
control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds
the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the
acquisition date, the difference is accounted for as an initial cost. As to the initial investment cost
is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date, the difference shall be charged to the income statement for the
current period, and the cost of the long-term equity investment shall be adjusted accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee
enterprise for the current period as a gain or loss on investment, and also increases or decreases
the carrying amount of the investment. When recognizing its share in the net profit or loss of the
investee entities, the Group should, based on the fair values of the identifiable assets of the
investee entity when the investment is acquired, in accordance with the Group’s accounting
policies and periods, after eliminating the portion of the profits or losses, arising from internal
transactions with joint ventures and associates, attributable to the investing entity according to
the share ratio (but losses arising from internal transactions that belong to losses on the
impairment of assets, should be recognized in full), recognize the net profit of the investee entity
after making appropriate adjustments. The book value of the investment is reduced to the extent
that the Group’s share of the profit or cash dividend declared to be distributed by the investee
enterprise. However, the share of net loss is only recognized to the extent that the book value of
the investment is reduced to zero, except to the extent that the Group has incurred obligations
to assume additional losses. The Group shall adjust the carrying amount of the long-term equity
investment for other changes in owners’ equity of the investee enterprise (other than net profits
or losses), and include the corresponding adjustments in equity, which should be realized through
profit or loss in subsequent settlement of the respective long-term investment.
121
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
11. Long-term equity investments (continued)
On settlement of a long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in the income statement for the current
period. As to other comprehensive income recognized based on measurement of the original
equity investment by employing the equity method, accounting treatment shall be made on the
same basis as would be required if the invested entity had directly disposed of the assets or
liabilities related thereto when measurement by employing the equity method is terminated. As
to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the
income statement for the current period. If the remaining equities still be measured under the
equity method, accumulative change previously recorded in other comprehensive income shall
be transferred to current profit or loss, in measurement on the same basis as the invested entity
had directly disposed of the assets or liabilities related thereto. The income or loss recorded in
the equity directly should been transferred to the current income statement on settlement of the
equity investment on the disposal proportion.
122
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
12. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both,
including rented land use right, land use right which is held and prepared for transfer after
appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The
follow-up expenses pertinent to an investment property shall be included in the cost of the
investment property, if the economic benefits pertinent to this real estate are likely to flow into
the enterprise, and, the cost of the investment property can be reliably measured. Otherwise,
they should be included in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property.
The buildings are depreciated under straight-line method.
13. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the
asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent
expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the
cost of the fixed asset, and the book value of the component of the fixed asset that is replaced
shall be derecognized. Otherwise, such expenditure shall be recognized in the income statement
in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed
asset comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use, such as delivery and handling costs,
installation costs and other surcharges.
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:
Yearly deprecation
Category Deprecation period Residual rate (%)
rate (%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at the end of each year and makes adjustments if necessary.
123
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
14. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the
construction, including all necessary construction expenditure incurred during the construction
period, borrowing costs that should be capitalized before the construction reaches the condition
for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
15. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the
borrowing of the funds. Borrowing costs include interest, amortization of discounts or premiums
related to borrowings, ancillary costs incurred in connection with the arrangement of borrowings,
and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized, otherwise the borrowing costs are expensed in the period
during which they are incurred. A qualifying asset is an asset (an item of property, plant and
equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for
its intended use of sale.
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence
when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary
to prepare the qualifying asset for its intended use or sale have been done. And subsequent
borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting
period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized
is the actual interest expense incurred on that borrowing for the period less any bank interest
earned form depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized
on such borrowings is determined by applying a weighted average interest rate to the weighted
average of the excess amounts of cumulative expenditure on the asset over and above the
amounts of specific-purpose borrowings.
124
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
15. Borrowing costs (continued)
During the construction or manufacture of assets that are qualified for capitalization, if abnormal
discontinuance, other than procedures necessary for their reaching the expected useful
conditions, happens, and the duration of the discontinuance is over three months, the
capitalization of the borrowing costs is suspended. Borrowing costs incurred during the
discontinuance are recognized as expense and charged to the income statement of the current
period, till the construction or manufacture of the assets resumes.
16. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible
assets are initially measured at cost. The cost of intangible assets acquired in a business
combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial
period expected to generate economic benefits. An intangible asset shall be regarded as having
an indefinite useful life when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
Land use rights that are purchased or acquired through the payment of land use fees are
accounted for as intangible assets. With respect to self-developed properties, the corresponding
land use right and buildings should be recorded as intangible and fixed assets separately. As to
the purchased properties, if the reasonable allocation of outlays cannot be made between land
and buildings, all assets purchased will be recorded as fixed assets. The cost of a finite useful life
intangible asset is amortized using the straight-line method during the estimated useful life. For
an intangible asset with a finite useful life, the Group reviews the estimated useful life and
amortization method at least at the end of each year and adjusts if necessary.
125
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
16. Intangible assets (continued)
The Group should test an intangible asset with an indefinite useful life for impairment by
comparing its recoverable amount with its carrying amount annually, whenever there is an
indication that the intangible asset may be impaired. An intangible asset with an indefinite useful
life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to
determine whether events and circumstances continue to support an indefinite useful life
assessment for that asset. If there are indicators that the intangible asset has finite useful life, the
accounting treatment would be in accordance with the intangible asset with finite useful life.
17. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research
expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a)
it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and
use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate
economic benefits shall be proved, including being able to prove that there is a potential market
for the products manufactured by applying the intangible assets or there is a potential market for
the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the
development of the intangible assets, and able to use or sell the intangible assets, with the
support of sufficient technologies, financial resources and other resources; and (e) the
development expenditures of the intangible assets can be reliably measured. Expenses incurred
that don’t meet the above requirements unanimously should be expensed in the income
statement of the reporting period.
The Group discriminates between research and development stage with the condition that the
project research has been determined, in which the relevant research complete all the
fractionalization of products measurements and final product scheme under final approval of
management. The expenditures incurred before project-determination stage is charged to the
current income, otherwise it is recorded as development cost.
126
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
18. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory,
contract assets and assets related to contract costs, deferred income taxes, and financial assets,
using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may
be impaired. If any indication exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a business
combination and an intangible asset with an indefinite useful life are tested for impairment at
least at the end of every year, irrespective of whether there is any indication that the asset may
be impaired. An intangible asset which is not ready for its intended use is tested for impairment
at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present
value of the future cash flow expected to be derived from the asset. The Group estimates the
recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount
of the individual asset, the Group determines the recoverable amount of the asset group to which
the asset belongs. Identification of an asset group is based on whether major cash flows
generated by the asset group are independent of the cash flows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the
carrying amount is reduced to the recoverable amount. The impairment of asset is provided for
and the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to
allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each
of the related asset groups or related sets of asset groups is a group or set of asset group that is
able to benefit from the synergies of the business combination and shall not be larger than a
reportable segment determined by the Group.
127
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
18. Impairment of assets (continued)
When an impairment test is conducted on an asset group or a set of asset groups that contains
goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the
set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines
and compares the recoverable amount with the related carrying amount and then recognize
impairment loss if any. Thereafter, the Group tests the asset group or set of asset groups including
goodwill for impairment, the carrying amount (including the portion of the carrying amount of
goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable
amount. If the carrying amount of the asset group or set of asset groups is higher than its
recoverable amount, the amount of the impairment loss is firstly eliminated by and amortized to
the book value of the goodwill included in the asset group or set of asset groups, and then
eliminated by the book value of other assets according to the proportion of the book values of
assets other than the goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
19. 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.
20. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to
their employees in exchange for services provided by the employees or termination of labor
relation. Employee compensation includes short-term compensation and post-employment
benefits. The benefits offered by enterprises to the spouse, children, the dependents of the
employee, the family member of deceased employee and other beneficiaries are also employee
compensation.
128
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
20. Employee benefits (continued)
Short-term employee salaries
During the accounting period of employee rendering service, the actual employees salaries and
are charged to the statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local
government and the relevant expenditure, is recognized, when incurred, in the costs of relevant
assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a
separately administered fund. The benefits are unfunded. The cost of providing benefits under
the defined benefit plan is determined using the projected unit credit actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the
consolidated statement of financial position with a corresponding debit or credit to retained
profits through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment
or curtailment; and the date that the Group recognises restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Group recognises the following changes in the net defined benefit obligation under
administrative expenses in the consolidated statement of profit or loss by function: service costs
comprising current service costs, past-service costs, gains and losses on curtailments and non-
routine settlements;net interest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises restructuring costs involving the payment
of termination benefits.
129
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
21. Provisions
An obligation related to a contingency shall be recognised by the Group as a provision when all
of the following conditions are satisfied, except for contingent considerations and contingent
liabilities assumed in a business combination not involving entities under common control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle
the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the
expenditure necessary for the performance of relevant present obligations, with comprehensive
consideration given to factors such as the risks, uncertainty and time value of money relating to
contingencies. The book value of the contingent liabilities should be reviewed at each balance
sheet date. If there is objective evidence showing that the book value cannot reflect the present
best estimate, the book value should be adjusted according to the best estimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities
not under common control are measured at fair value upon initial recognition. After initial
recognition, the balance of the amount recognized according to the estimated liabilities and the
amount initially recognized after deducting the accumulated amortization determined by the
revenue recognition principle is subsequently measured at the higher of the two.
22. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is
recognized when the customer obtains control of the relevant goods or services. Obtaining
control over related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the
performance obligation to transfer of goods, transportation services and free maintenance. The
Group allocates the transaction price to each individual performance obligation in accordance
with the relative proportion of the stand-alone selling price of the goods or services promised by
each individual performance obligation on the date of contract commencement. Regarding the
performance obligations of the transferred goods, the Group usually recognizes revenue at the
point when the performance obligations are fulfilled based on the following indicators, which
include: a present right to payment for goods, the transfer of significant risks and rewards of
ownership of goods, the transfer of legal title to goods, the transfer of physical possession of
goods, the customer’s acceptance of goods.
22. Revenue from contracts with customers (continued)
Provide service contract
The performance obligations of the service provision contract between the Group and the
130
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
customer are due to the fact that the customer obtains and consumes the economic benefits
brought by the performance of the group at the same time the group performs the contract, and
the group has the right to accumulate the economic benefits during the entire contract period.
The Group regards it as a performance obligation performed within a period, and recognizes the
revenue according to the performance progress, unless the performance progress cannot be
reasonably determined. In accordance with the output method, the Group determines the
progress of the performance of the service provided based on the completed or delivered
products. When the performance progress cannot be reasonably determined, if the cost incurred
by the Group is expected to be compensated, the revenue will be recognized according to the
amount of the cost incurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming
variable consideration. The Group determines the best estimate of the variable consideration
based on the expected value or the most likely amount, but the transaction price including the
variable consideration does not exceed the amount that the accumulated recognized revenue
will most likely not be materially reversed when the relevant uncertainty is eliminated.
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality
assurance for the goods sold. For guarantee quality assurance to ensure that the products sold
meet the established standards, the Group conducts accounting treatment in accordance with
Note III, 21. For the service quality assurance that provides a separate service in addition to the
established standards to ensure that the goods sold meet the established standards, the Group
regards it as a single performance obligation, based on the stand-alone selling price of the quality
assurance of the goods and services provided. In a relative proportion, part of the transaction
price is allocated to service quality assurance, and revenue is recognized when the customer
obtains control of the service. When assessing whether the quality assurance provides a separate
service in addition to ensuring that the products sold meet the established standards, the Group
considers whether the quality assurance is a legal requirement, the quality assurance period, and
the nature of the group's commitment to perform tasks.
131
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
22. Revenue from contracts with customers (continued)
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the
Group has the right to independently determine the price of the goods or services traded, that is,
the Group can control the relevant goods before transferring the goods to the customers, so the
Group is the main responsible person, and recognize revenue based on the total consideration
received or receivable. Otherwise, the Group acts as an agent and recognizes revenue based on
the amount of commission or fees expected to be charged. This amount should be based on the
net amount of the total consideration received or receivable minus the price payable to other
related parties, or based on the established commission amount or proportions, etc.
23. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The group offsets the
contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to
customers, and this right depends on factors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the
contract assets of the Group refer to Note III, 9.
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the
consideration received or receivable from customers, such as the payment received by
companies before the transfer of promised goods or services
132
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
24. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will
comply with any conditions attached to the grant and the grant will be received. Monetary grants
are accounted for at received or receivable amount. Non-monetary grants are accounted for at
fair value. If there is no reliable fair value available, the grants are accounted for a nominal amount.
A government grant which is specified by the government documents to be used to purchase and
construct the long-term assets shall be recognized as the government grant related to assets. A
government grant which is not specified by the government documents shall be judged based on
the basic conditions to obtain the government grant. The one whose basic condition was to
purchase and construct the long-term assets shall be recognized as the government grant related
to assets.
The Group uses the gross method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses
shall be recognized as deferred income and shall be charged to the current profit or loss or be
used to write down the relevant loss, during the recognition of the relevant cost expenses or
losses; or used as compensation for relevant expenses or losses already incurred by enterprises
shall be directly charged to the profit and loss account in the current period or used to write down
the relevant cost.
The government grants related to assets shall be used to write down the book value of the
relevant assets or be recognized as deferred income. The government grants related to assets,
recognized as deferred income, shall be charged to the profit and loss reasonably and
systematically in stages over the useful lives of the relevant assets. The government grants
measured at nominal amount shall be directly charged to the current profit and loss. The
remaining book value of the government grants related to assets should be charged to the profit
and loss account in the current period when the relative assets sold, transferred, disposed or
damaged.
133
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
25. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period, except to the extent that the
tax arises from a business combination or if it relates to a transaction or event which is recognized
directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts, and temporary differences between the carrying amounts
and the tax bases of items, the tax bases of which can be determined for tax purposes, but which
have not been recognized as assets and liabilities, deferred taxes are provided using the liability
method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or
the initial recognition of an asset or liability in a transaction which contains both of the
following characteristics: the transaction is not a business combination and at the time of
the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in jointly-controlled enterprises, where the timing of the reversal
of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
134
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
25. Income taxes (continued)
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from
the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are only recognized to the
extent that it is probable that the temporary differences will reverse in the foreseeable
future and taxable profit will be available against which the temporary differences can be
utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled, according
to the requirements of tax laws. The measurement of deferred tax assets and deferred tax
liabilities reflects the tax consequences that would follow from the manner in which the Group
expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is
probable that sufficient taxable income cannot be generated to use the tax benefits of deferred
tax assets, the book value of deferred tax assets should be reduced. When it is probable that
sufficient taxable income can be generated, the amount of such reduction should be reversed.
When it is probable that sufficient taxable income can be generated, the amount of such
reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred
tax liabilities are listed at the net amount after offset: the legal right to settle the current income
tax assets and current income tax liabilities at the net amount; the deferred tax assets and
deferred tax liabilities are related to the income tax levied by the same tax collection and
management department on the same taxable subject or different taxpaying subjects However,
in the future, during each period when the significant deferred tax assets and deferred tax
liabilities are reversed, the tax payer involved intends to settle the current income tax assets and
current income tax liabilities with net amount or obtain assets and pay off debts at the same time.
135
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
26. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to
ownership of an asset. An operating lease is a lease other than a finance lease.
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. The contingent rents shall be recorded in the profits and losses
of the period in which they actually arise.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a
straight-line basis over the lease term. The contingent rents shall be recorded in the profits and
losses of the period in which they actually arise.
27. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting
of stockholders.
28. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or
income statement, while be recognized as special reserve. When using safety fund, it shall be
distinguished whether it will form fixed assets or not. The expenditure shall write down the
special reserve; the capital expenditure shall be recognized as fixed assets when meet the
expected conditions for use, and write down the special reserve while recognizing accumulated
depreciation with the same amount.
29. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either in the principal market for the asset or liability, or in the absence of a
principal market, in the most advantageous market for the asset or liability. The principal or the
most advantageous market must be accessible by the Group. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
136
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
29. Fair value measurement (continued)
The Group measures equity investments at fair value at the end of each reporting period. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes
place in the principal market for the asset or liability or in the most advantageous market for the
asset or liability when a principal market is absent. The principal or the most advantageous
market must be accessible to by the Group. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data and other supporting information are available to measure fair value, giving
priority to the use of relevant observable inputs, and using unobservable inputs only when
observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by
reassessing categorization at the end of each reporting period.
137
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates
and assumptions that affect the amounts and disclosures 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
In the process of applying the Group’s accounting policies, management has made the following
judgments which have significant effect on the financial statements:
138
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Business model
The classification of financial assets at initial recognition depends on the business model of the
Group’s management of financial assets. When judging the business model, the Group considers
the methods including enterprise evaluation and reporting of financial asset performance to key
management personnel, risks affecting financial asset performance and its anagement method
and the way in which related business managers get paid. When evaluating whether to take
contract cash flow as the goal, the Group needs to analyze and judge the reasons, time, frequency
and value of the sale of financial assets before the due date.
Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow
characteristics of the financial assets. It is necessary to determine whether the contractual cash
flow is only for the payment of principal and interest based on outstanding principal, including
correction of the time value of money during the evaluation, it is necessary to determine whether
there is a significant difference compared to the benchmark cash flow. For financial assets that
include prepayment characteristics, it is necessary to determine whether the fair value of the
prepayment characteristics is very small, etc.
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 financial instruments
The Group uses the expected credit loss model to assess the impairment of financial instruments.
The application of the expected credit loss model requires significant judgments and estimates.
All reasonable and valid information must be considered, including forward-looking information.
In making these judgments and estimates, the Group infers the expected changes in the credit
risk of the debtor based on historical repayment data combined with economic policies,
macroeconomic indicators, industry risks and other factors. Different estimates may affect the
provision for impairment losses. The provision for impairment losses may not be equal to the
actual amount of future impairment losses.
139
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
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 present 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.
Fair value of unlisted equity investments
For unlisted equity instrument investments, several valuation models are used to estimate the
fair value. This requires the Group to make estimates of unobservable market parameters such as
price-to-book ration, discount rate, sustainable growth rate, asset price index, etc., and is
therefore uncertain.
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. Factors that influence
estimation of related warranty claim include: 1) renewal of laws and regulations; 2) quality
promotion of Group products; 3) change of parts and labour cost. In general, the Group records
warranty based on selling volume and estimated compensatory unit warranty cost, deduction
multi-agreed compensation from suppliers. As at balance sheet day, the Group launches
retrospective analysis on warranty carrying amount in consideration of accrual warranty payment
during relative warranty period, and recent trends of product renovation and replacement, and
further adjustment if necessary. Any increase or decrease in the provision would affect profit or
loss in future years.
140
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Uncertainty of accounting estimates (continued)
Depreciation and amortization
The Group’s management determines the estimated useful lives and residual value 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.
31. Changes in accounting policies and estimates
Changes in accounting policies
New revenue standard
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises
No. 14-Revenue" (referred to as the "New Revenue Standards"). The Group began accounting
treatment in accordance with the newly revised standards from January 1, 2020. According to the
convergence regulations, the comparable period information will not be adjusted. The difference
between the implementation of the new standards and the current standards on the first day will
be retrospectively adjusted for retained earnings at the beginning of the reporting period.
The new revenue standard establishes a new revenue recognition model for regulating revenue
generated from contracts with customers. According to the new revenue standards, the method
of recognizing revenue should reflect the entity's transfer of goods or services to customers, and
the amount of revenue should reflect the amount of consideration that the entity expects to be
entitled to because of the transfer of these goods or services to customers. At the same time, the
new revenue standard also regulates the judgments and estimates required for each link of
revenue recognition.
141
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
31. Changes in accounting policies and estimates (continued)
Changes in accounting policies (continued)
The impacts of the implementation of the new revenue standard on the 2020 financial
statements are as follows:
Assumption based on
Statement amount influences
original standard
Consolidated balance sheet
Other receivables 723,919,037.36 2,173,950,451.97 (1,450,031,414.61)
Contract assets 1,450,031,414.61 - 1,450,031,414.61
Advances from customers - 3,779,593,859.42 (3,779,593,859.42)
Contract liabilities 4,471,158,190.75 - 4,471,158,190.75
Accrued expenses 5,842,758,104.08 5,850,330,954.08 (7,572,850.00)
Contingent liabilities 3,125,170,942.46 3,651,955,144.45 (526,784,201.99)
Deferred income 3,469,017,384.88 3,626,224,664.22 (157,207,279.34)
19,082,055,074.14 19,082,055,074.14 -
Consolidated income statement
Operating revenue 84,565,544,146.58 85,520,191,499.26 (954,647,352.68)
Operating expense 72,473,471,726.85 70,577,149,304.69 1,896,322,422.16
Selling expense 3,413,296,854.70 6,264,266,629.54 (2,850,969,774.84)
160,452,312,728.13 162,361,607,433.49 -
142
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
31. Changes in accounting policies and estimates (continued)
Changes in accounting policies (continued)
The impacts of the implementation of the new revenue standard on the 2020 financial
statements are as follows: (continued)
Company balance sheet
Assumption based on
Statement amount Influences
original standard
Company balance sheet
Other receivables 1,990,616,778.83 2,931,663,392.43 (941,046,613.60 )
Contract assets 941,046,613.60 - 941,046,613.60
Advances from customers - 3,305,994,526.82 (3,305,994,526.82 )
Contract liabilities 3,885,522,883.33 - 3,885,522,883.33
Accrued expense 5,235,294,795.79 5,242,867,645.79 (7,572,850.00 )
Contingent liabilities 2,196,924,682.57 2,723,708,884.56 (526,784,201.99 )
Deferred income 2,112,507,625.97 2,157,678,930.49 (45,171,304.52 )
16,361,913,380.09 16,361,913,380.09 -
Company income statement
Operating revenue 81,557,686,002.18 82,423,906,188.52 (866,220,186.34 )
Operating expense 71,325,749,326.52 69,761,208,670.26 1,564,540,656.26
Selling expense 2,676,426,234.73 5,107,187,077.33 (2,430,760,842.60 )
155,559,861,563.43 157,292,301,936.11 -
The Group sells the entire vehicle business. Before January 1, 2020, the Group regards it as a sales
product. On January 1, 2020, the Group analyzed that the business specifically includes transfer
of goods, transportation services, and free maintenance service commitments, because
customers can benefit from the above-mentioned goods or service pledges individually or from
the use of other easily available resources, and the above-mentioned goods or service pledges
can be separately distinguished from other goods or service pledges, respectively constitute a
single performance obligation. Due to the implementation of the new revenue standard, the
Group and the company will reclassify the advance receipts received from customers before
fulfilling the contract performance obligations from items such as advance receipts to contract
liabilities.
143
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
31. Changes in accounting policies and estimates (continued)
Changes in accounting policies (continued)
New revenue standard (continued)
The main effects of retrospective adjustments caused by the changes in the accounting policies
of the above new revenue standard on the financial statements are as follows:
Listed based on original The influence of new revenue Listed based on new
standard standard standard
Remeasure
Book value Reclassification Book value
ment
2019/12/31 2020/01/01
The Group
Advances from
2,315,641,685.78 (2,315,641,685.78 ) - -
customers
Contract liabilities - 2,940,466,751.09 - 2,940,466,751.09
Other receivables 3,731,755,992.46 (2,998,531,577.48 ) - 733,224,414.98
Contract Assets - 2,998,531,577.48 - 2,998,531,577.48
Contingent liabilities 3,352,580,839.28 (499,237,150.28 ) - 2,853,343,689.00
Deferred income 3,194,291,079.21 (125,587,915.03 ) - 3,068,703,164.18
The company
Advances from
1,870,992,349.08 (1,870,992,349.08 ) - -
customers
Contract liabilities - 2,412,342,550.41 - 2,412,342,550.41
Other receivables 2,597,314,344.40 (1,415,538,410.60 ) - 1,181,775,933.80
Contract Assets - 1,415,538,410.60 - 1,415,538,410.60
Contingent liabilities 2,413,434,397.36 (499,237,150.28) - 1,914,197,247.08
Deferred income 2,135,615,106.85 (42,113,051.05 ) - 2,093,502,055.80
144
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
31. Changes in accounting policies and estimates (continued)
Changes in accounting policies (continued)
New revenue standard (continued)
Related party disclosure scope
According to the requirements of the "Accounting Standards for Business Interpretation No. 13",
from January 1, 2020, the following parties that were not previously regarded as related parties
are regarded as related parties: other members of the company's corporate group (including
parent companies and subsidiaries) ) Joint ventures and their subsidiaries or associates and their
subsidiaries. This accounting policy change has affected the judgment of related parties and the
disclosure of related party transactions, and the comparative data will not be adjusted
retrospectively in accordance with the convergence regulations.
Changes in the presentation of financial statements
According to the “Questions and Answers on the Implementation of Accounting Standards for
Business Enterprises” issued by the Ministry of Finance in December 2020, the Group reclassified
the impairment losses of contract assets that were originally included in the “credit impairment
losses” in the income statement to “asset impairment losses”. The impact of this accounting
policy change has no impact on the merger and the company's net profit and owners' equity.
145
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
IV TAXES
1. Main taxes and tax rates
Value added tax (“VAT”) - The income from the sale of goods and the income from the provision
of services are calculated at the tax rates of 13% and 6%, respectively,
and the VAT is calculated on the basis of the difference after deducting
the input tax that is allowed to be deducted in the current period.
Consumption tax - Consumption tax is calculated at 1%, 3% or 5% of taxable income.
City maintenance and 5% or 7% of the turnover tax paid is calculated and paid.
-
construction tax
Educational surcharge - 3% of the actual turnover tax paid is calculated and paid.
Local educational 2% of the turnover tax actually paid is calculated and paid.
-
surcharge
Corporate income tax - Corporate income tax is paid at 15%, 20% or 25% of taxable income.
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax
preferential policies, the following companies of the group are identified as high-tech enterprises and
are subjected to the preferential corporate income tax rate of 15% within the prescribed period: the
company (2018-2020), and the Company’s subsidiaries including Hefei Changan Automobile Company
Limited (2019-2021), Hebei Changan Automobile Company Limited (2020-2023), Baoding Changan
Bus Manufacturing Company Limited (2020-2023), Chongqing Changan Connected Car Technology
Co., Ltd. (2019-2021).
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western
Regions 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 and engaged in encouraged business would be entitled to a preferential CIT rate of
15%. The Company’s subsidiaries, including Changan International Corporation, Chongqing Changan
Special Vehicle Co., Ltd., Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing
Changan Lingyao Automobile Co., Ltd., Chongqing Chehemei Technology Co., Ltd. and Chongqing
Changan Automobile Software Technology Co., Ltd. are qualified to the requirement and are
subjected to the preferential tax rate of 15%.
146
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
V NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash
2020 2019
Cash 52,569.13 18,280.08
Cash at bank 30,655,915,488.50 9,360,456,394.81
Other cash 1,345,807,542.44 705,696,678.59
Total 32,001,775,600.07 10,066,171,353.48
As at 31 December 2020, the book value of restricted cash was RMB1,345,807,542.44, which was
mainly restricted for the issuance of acceptance bill (As at 31 December 2019:
RMB705,696,678.59).
As at 31 December 2020, the cash at bank overseas is equivalent to RMB220,217,500.18 (As at 31
December 2019: RMB159,973,528.25).
Cash at banks earns interest at floating rates based on daily bank deposit rates. The 7-day bank
notice deposits and fixed deposits can be withdrawn at any time according to the cash
requirements of the Group, and interest income is obtained according to the corresponding bank
deposit rates.
2. Financial assets held for trading
2020 2019
Equity instrument investment 180,929,400.00 2,419,476,200.00
Derivative financial assets 23,325,000.00 -
Total 204,254,400.00 2,419,476,200.00
As of December 31, 2020, the equity instrument investment was 33.63 million ordinary shares of
Southwest Securities Co., Ltd. held by the group without selling restrictions (December 31, 2019:
35.5 million shares), and the derivative financial assets derived from the US dollar forward
contract signed by the group.
3. Notes receivable
(1) Classification of notes receivable
2020 2019
Commercial acceptance bill 11,456,829,106.12 7,475,629,607.72
Bank acceptance bill 16,914,711,948.63 19,330,005,979.47
Total 28,371,541,054.75 26,805,635,587.19
3. Notes receivable (continued)
147
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
(2) Pledged notes receivable
2020 2019
Commercial acceptance bill 1,707,332,200.00 365,040,070.00
Bank acceptance bill 5,613,218,260.00 2,760,059,280.00
Total 7,320,550,460.00 3,125,099,350.00
As at 31 December 2020 and 2019, notes receivable with above carrying amount were pledged to
issue notes payable.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period
are as follow:
2020 2019
Derecognition Un- Derecognition Un-
derecogniti derecogniti
on on
Commercial acceptance bill 270,434,540.00 - 662,937,930.00 -
Bank acceptance bill 4,823,033,140.36 - 1,937,078,894.54 -
Total 5,093,467,680.36 - 2,600,016,824.54 -
(4) As at 31 December 2020, note receivables converted to accounts receivable due to the
inability of the drawer to perform the contract were RMB999,460.00. (As at 31 December
2019: Nil.)
4. Accounts receivable
(1) Aging analysis of the accounts receivable as at 31 December 2020 is as follows:
Aging 2020 2019
Within 1 year 1,801,562,183.50 678,737,828.90
1 to 2 years 371,018,064.79 141,612,978.25
2 to 3 years 60,086,826.22 33,700,863.10
Over 3 years 98,021,103.16 68,414,880.58
Total 2,330,688,177.67 922,466,550.83
Less: Provision (189,491,038.22) (84,152,474.01)
2,141,197,139.45 838,314,076.82
(2) The movements in provision for impairment of accounts receivable are as follows:
Beginning Addition Deduction
Ending balance
balance Provision Reversal Write-off
2020 84,152,474.01 105,402,877.08 28,657.87 35,655.00 189,491,038.22
2019 90,614,319.90 13,362,617.00 6,450,000.00 13,374,462.89 84,152,474.01
148
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
4. Accounts receivable (continued)
(3) Analysis of accounts receivable by category as at 31 December 2020 is as follows:
2020
Item
Balance Provision
Amount (%) Amount (%)
Individually analyzed for provision 1,739,103,610.26 74.62 129,549,853.46 7.45
Provision based on the combination of
591,584,567.41 25.38 59,941,184.76 10.13
credit risk characteristics
Total 2,330,688,177.67 100.00 189,491,038.22 8.13
2019
Item
Balance Provision
Amount (%) Amount (%)
Individually analyzed for provision 216,876,810.50 23.51 49,267,460.68 22.72
Provision based on the combination of
705,589,740.33 76.49 34,885,013.33 4.94
credit risk characteristics
Total 922,466,550.83 100.00 84,152,474.01 9.12
(4) The Group’s accounts receivable was analyzed for provision by expected credit loss model
2020 2019
Estimated face Expected Expected credit Face balance Provisio Provision for
value for default credit loss loss for the entire n ratio bad debt
rate (%) duration (%)
Within 1 year 380,624,542.70 0.43 1,629,902.59 601,963,326.69 0.80 4,799,025.50
1 to 2 years 114,659,032.16 12.32 14,121,441.41 56,368,999.03 7.54 4,250,219.24
2 to 3 years
52,003,007.12 40.07 20,836,462.37 20,043,284.25 31.23 6,258,614.71
Over 3 years
44,297,985.43 52.72 23,353,378.39 27,214,130.36 71.94 19,577,153.88
Total 591,584,567.41 10.13 59,941,184.76 705,589,740.33 4.94 34,885,013.33
149
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
4. Accounts receivable (continued)
(5) As at 31 December 2020, accounts receivable from Top 5 clients amounted to
RMB1,427,737,884.48, accounted for 61.26% of the total accounts receivable (2019 ：
RMB191,520,443.31，accounted for 20.76% of the total amount).
(6) There were no accounts receivable derecognized due to transfer of financial assets during
2020 (2019: Nil).
5. Prepayments
(1) Aging analysis of the prepayments is as follows:
2020 2019
Aging Percentage
Amount Percentage (%) Amount
(%)
Within 1 year 399,060,385.64 86.61 427,508,750.42 68.53
1 to 2 years 25,223,574.66 5.48 190,277,683.92 30.50
2 to 3 years 36,342,451.32 7.89 4,480,529.56 0.72
Over 3 years 77,192.18 0.02 1,534,932.17 0.25
Total 460,703,603.80 100.00 623,801,896.07 100.00
(2) As at 31 December 2020, prepayments to Top 5 suppliers amounted to RMB346,863,258.58,
which accounted for 75.29% of the total prepayments (2019: RMB465,836,148.17, which
accounted for 74.68% of the total amount).
150
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Other receivables
(1) Aging analysis of other receivables as at 31 December 2020 is as follows:
2020 2019
Within 1 year 331,458,596.48 1,627,799,420.78
1 to 2 years 129,964,617.73 1,667,806,094.07
2 to 3 years 194,978,317.34 503,954,545.01
Over 3 years 79,338,758.60 57,790,016.71
Total 735,740,290.15 3,857,350,076.57
Provision (11,821,252.79) (125,594,084.11)
723,919,037.36 3,731,755,992.46
(2) Other receivables are classified by nature as follows:
Nature 2020 2019
New energy subsidy 517,224,182.80 3,462,221,902.09
Reserve 18,868,220.28 41,810,604.18
Margin 4,075,233.90 13,965,172.56
Other 183,751,400.38 213,758,313.63
Total 723,919,037.36 3,731,755,992.46
151
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
(3) For other receivables, the changes in the provision for bad debts based on 12-month
expected credit losses and the entire duration of expected credit losses are as follows:
2020
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Opening balance 291,182.01 111,686,526.12 13,616,375.98 125,594,084.11
Impact of applying the
new revenue standard - (111,066,213.00) (1,572,800.00) (112,639,013.00)
Balance at the beginning
of the year adjusted in
accordance with the new
income standards 291,182.01 620,313.12 12,043,575.98 12,955,071.11
Changes due to the
opening balance
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - (534,931.90) 534,931.90 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Provision - - 4,323,884.00 4,323,884.00
Reversal (21,912.55) (43,298.66) (1,889,832.11) (1,955,043.32)
Transfer - - - -
Write-off - - (3,502,659.00) (3,502,659.00)
Closing balance 269,269.46 42,082.56 11,509,900.77 11,821,252.79
152
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
(3) For other receivables, the changes in the provision for bad debts based on 12-month
expected credit losses and the entire duration of expected credit losses are as follows: (continued)
2019
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Opening balance 688,784.69 473,328.51 6,686,050.38 7,848,163.58
Changes due to
the opening balance
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 (150,000.00) (348,425.91) 498,425.91 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Provision 135,958.46 111,637,659.12 7,431,094.18 119,204,711.76
Reversal (383,561.14) (76,035.60) - (459,596.74)
Transfer - - - -
Write-off - - (999,194.49) (999,194.49)
Closing balance 291,182.01 111,686,526.12 13,616,375.98 125,594,084.11
153
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
(4) at 31 December 2020, top five debtors of other receivables are as follows:
2020
Proportion
of total
Debtors Amount Nature Aging other Provision
receivables
(%)
New energy
First 404,133,442.00 Within 1year 54.93 -
subsidy
New energy
Second 113,090,740.80 Within 1year 15.37 -
subsidy
Commission
Third 124,312,677.99 processing 2-3years 16.90 -
payments
Subsidy
Fourth 6,750,000.00 Within 1year 0.92 -
payment
Fifth 4,205,240.91 Steel models 0-2 years 0.57 4,205,240.91
Total 652,492,101.70 88.69 4,205,240.91
2019
Proportion
of total
Debtors Amount Nature Aging other Provision
receivables
(%)
New energy
First 1,770,677,411.60 0-4 years 45.90 111,066,213.00
subsidy
New energy
Second 1,071,115,340.00 Within 1year 27.77 -
subsidy
New energy
Third 430,588,852.51 0-5years 11.16 1,572,800.00
subsidy
New energy
Fourth 131,582,160.00 Within 1year 3.41 -
subsidy
Commission
Fifth 124,312,677.94 1-2years 3.22 -
processing
Total 3,528,276,442.05 91.47 112,639,013.00
(5) For the year ended 2020, there is no accounts receivable derecognized due to transfer of
financial assets. (2019: Nil).
154
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
7. Inventories
(1) Classification of inventories
2020 2019
Item
Balance Provision Net value Balance Provision Net value
Raw materials 774,157,630.94 361,595,043.64 412,562,587.30 843,669,443.37 350,525,510.02 493,143,933.35
Material in
221,894,049.90 - 221,894,049.90 293,575,861.15 - 293,575,861.15
transit
Work in
870,386,230.20 74,926,608.94 795,459,621.26 657,730,109.07 28,324,925.14 629,405,183.93
progress
Finish goods 4,703,486,357.31 214,237,621.88 4,489,248,735.43 1,958,389,227.87 83,956,153.45 1,874,433,074.42
Consigned
processing 18,085,079.75 - 18,085,079.75 51,101,639.03 - 51,101,639.03
material
Consumables 30,266,156.93 - 30,266,156.93 33,781,796.49 - 33,781,796.49
Total 6,618,275,505.03 650,759,274.46 5,967,516,230.57 3,838,248,076.98 462,806,588.61 3,375,441,488.37
(2) Provision for inventories
2020
Type Beginning Provision Reversal Written off Ending balance
balance
Raw
350,525,510.02 94,085,337.27 82,618.04 82,933,185.61 361,595,043.64
materials
Work in
28,324,925.14 60,682,147.02 - 14,080,463.22 74,926,608.94
progress
Finish goods 83,956,153.45 171,283,419.92 1,661.31 41,000,290.18 214,237,621.88
Total 462,806,588.61 326,050,904.21 84,279.35 138,013,939.01 650,759,274.46
2019
Type Beginning Provision Reversal Written off Ending balance
balance
Raw
181,897,353.27 176,755,422.47 4,166.69 8,123,099.03 350,525,510.02
materials
Work in
35,473,526.73 2,744,458.87 - 9,893,060.46 28,324,925.14
progress
Finish goods 76,519,657.33 45,220,725.83 6,155.48 37,778,074.23 83,956,153.45
Total 293,890,537.33 224,720,607.17 10,322.17 55,794,233.72 462,806,588.61
155
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
7. Inventories (continued)
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and
makes provision of the difference. Net realizable value is the estimated by selling price in the
ordinary course of business deduct estimated costs in further production to sell and estimated
necessary distribution expense and tax expense. The reversal of inventory provisions is due to
price rebound of previous impaired inventories by net realizable value test, while written off
inventory provisions are due to selling off of previous impaired inventories in current year.
8. Contract assets
2020
Item
Book balance Impairment Book value
Contract assets 1,584,180,347.49 134,148,932.88 1,450,031,414.61
The provision for impairment of contract assets based on expected credit losses throughout the
duration of the contract in 2020
Balance at the Balance at the
Changes in end of year
end of the beginning of the Provision Reverse Write off
accounting policies balance
previous year year
- 112,639,013.00 112,639,013.00 50,796,386.88 29,286,467.00 - 134,148,932.88
9. Other current assets
2020 2019
Input VAT to be deducted 847,632,683.61 1,428,518,317.99
Prepaid taxes and fees (Note 2) 402,351,805.17 -
Entrusted loan (Note 1) 300,000,000.00 300,000,000.00
Others 18,727,381.83 17,601,810.05
Total 1,568,711,870.61 1,746,120,128.04
Note 1: On December 31, 2020, the entrusted loan is the amount lent by the Group to the
company’s associate Jiangling Holdings Co., Ltd. through the Chongqing Branch of China
Everbright Bank Co., Ltd. It will expire on June 24, 2021. The annual interest rate is 4.35%.
Note 2: On December 31, 2020, the prepayment of taxes and fees was mainly due to the
prepayment of value-added tax and corporate income tax related to the sale of some land and
factories by the Group.
156
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
10. Long-term equity investments
2020
Investment income Other Ending
Cash dividends Ending balance
Investee Beginning balance Addition under equity equity Other Deduction Provision balance of
declared of book value
method variation provision
Joint Venture
Changan Ford Automobile Co., Ltd. 1,782,823,327.91 - 8,710,167.26 - - - - 1,791,533,495.17 -
Changan Mazda Automobile Co., Ltd. 2,177,010,905.02 - 723,987,717.26 - (905,000,000.00) - - 1,995,998,622.28 -
Changan Mazda Engine Co., Ltd. 830,272,340.69 - 39,596,915.75 - (37,000,000.00) - - 832,869,256.44 -
Changan PSA Automobiles Co., Ltd.(note 4) 346,038,983.87 - (114,234,986.00) - - (231,803,997.87) - - -
Changan Weilai New Energy Co., Ltd.(note 3) (12,871,719.42) - (18,666,611.81) - - 31,538,331.23 - - -
Nanchang Jiangling Holding Co., Ltd. 2,081,815,165.31 - (536,007,531.47) - - - - 1,545,807,633.84 -
Subtotal 7,205,089,003.38 - 103,385,670.99 - (942,000,000.00) (200,265,666.64) - 6,166,209,007.73 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 192,005,274.10 - 45,730,860.11 - - - - 237,736,134.21 -
Chongqing Changan Kuayue Automobile Sales Co., - - - - - - - -
Ltd. (note1) -
Beijing Fang’an cresent taxi Co., Ltd. (note1) - - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,195,040,654.44 - 207,337,580.14 - (64,528,859.83) - - 2,337,849,374.75 -
Hainan Anxinxing Information Technology Co., Ltd. 3,560,384.10 - (1,244,331.18) - - - - 2,316,052.92 -
Nanjing Chelai Travel Technology Co., Ltd. 1,474,945.09 - (282,339.82) - - - - 1,192,605.27 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,152,447.20 - 221,362.27 - - - - 25,373,809.47 -
Beijing Wutong Chelian Technology Co., Ltd. (note1) 4,094,510.40 50,198,870.93 (54,293,381.33) - - - - - -
Anhe (Chongqing) Equity Investment Fund 406,125.00 (827,553.39) - - - - 1,518,177.47 -
Management Co., Ltd. 1,939,605.86
Hangzhou Chelizi Intelligent Technology Co., Ltd. 7,527,572.23 - 2,165,392.69 - - - - 9,692,964.92 -
Nanjing Leading Equity Investment Management - 64,418,284.31 - - - - 999,636,607.63 -
Co., Ltd. (Limited Partnership) 935,218,323.32
Nanjing Leading Equity Investment Partnership 1,445,415.69 - (183,235.30) - - - - 1,262,180.39 -
Pakistan Master Automobile Co., Ltd. 36,795,899.66 - (3,245,798.19) - - - - 33,550,101.47 -
Jiangling Holding Co., Ltd. 398,992,953.62 - (197,256,309.37) - - - - 201,736,644.25 -
Chongqing Changan New Energy Vehicles 2,723,674,800.34 (732,658,665.15) - - - - 1,991,016,135.19 -
Technology Co., Ltd.(note 2) -
Zhongqi Chuangzhi Technology Co., Ltd. - 100,000,000.00 - - - - - 100,000,000.00 -
Subtotal 3,803,247,985.71 2,874,279,796.27 (670,118,134.21) - (64,528,859.83) - - 5,942,880,787.94 -
Total 11,008,336,989.09 2,874,279,796.27 (566,732,463.22) - (1,006,528,859.83) (200,265,666.64) - 12,109,089,795.67 -
157
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
10. Long-term equity investments(continued)
Note 1: On 2020 December 31, the Group of Chongqing Changan Kuayue Automobile Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd. and Beijing Wutong
Chelian Technology Co., Ltd. did not have the obligation to undertake extra losses, so the excess loss when it occurs, only the long-term equity
investment was written down to zero. The excess losses related to the investment in the above three companies were not recognized.
Note 2: In January 2020, the Group introduced investors to increase capital in Chongqing Changan New Energy Vehicles Technology Co., Ltd. After the
capital increase, Chongqing Changan New Energy Vehicles Technology Co., Ltd. changed from a subsidiary to an associate.
Note 3: In May 2020, the Group increased its capital in Changan Weilai New Energy Automobile Technology Co., Ltd. After the capital increase, Changan
Weilai New Energy Automobile Technology Co., Ltd. changed from a joint venture to a subsidiary.
Note 4: In April 2020, the Group sold its 50% equity interest in Changan PSA Automobile Co., Ltd. After the transaction is completed, the Group no longer
holds any equity in Changan PSA Automobile Co., Ltd.
158
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
10. Long-term equity investments(continued)
2019
Investment income Ending
Other equity Cash dividends Ending balance
Investee Beginning balance Addition under equity Other Deduction Provision balance of
variation declared of provision
method book value
Joint Venture
Jiangling Holding Co., Ltd. (note 2) 2,493,754,915.53 - (221,583,996.94) - - (2,272,170,918.59) - - -
Changan Ford Automobile Co., Ltd. 3,709,784,507.11 - (1,926,961,179.20) - - - - 1,782,823,327.91 -
Changan Mazda Automobile Co., Ltd. 2,472,626,663.41 - 929,384,241.61 - (1,225,000,000.00) - - 2,177,010,905.02 -
Changan Mazda Engine Co., Ltd. 827,803,757.96 - 39,968,582.73 - (37,500,000.00) - - 830,272,340.69 -
Changan PSA Automobiles Co., Ltd. 1,456,519,068.74 - (1,110,480,084.87) - - - - 346,038,983.87 -
Changan Weilai New Energy
Automobile Technology Co., Ltd. 44,065,513.91 - (56,937,233.33) - - - - (12,871,719.42) -
Nanchang Jiangling Holding Co., Ltd. - 2,063,742,852.91 18,072,312.40 - - - - 2,081,815,165.31 -
Subtotal 11,004,554,426.66 2,063,742,852.91 (2,328,537,357.60) - (1,262,500,000.00) (2,272,170,918.59) - 7,205,089,003.38 -
Associates
Chongqing Changan Kuayue Automobile
Co., Ltd. 116,588,234.97 - 75,417,039.13 - - - - 192,005,274.10 -
Chongqing Changan Kuayue Automobile
Sales Co., Ltd. (note1) - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd.
(note1) - - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,030,617,157.41 - 239,321,406.72 - (74,897,909.69) - - 2,195,040,654.44 -
Hainan Anxinxing Information
Technology Co., Ltd. 5,536,555.21 - (1,976,171.11) - - - - 3,560,384.10 -
Nanjing Chelai Travel Technology Co.,
Ltd. 1,813,616.14 - (338,671.05) - - - - 1,474,945.09 -
Hunan Guoxin Semiconductor
Technology Co., Ltd. 25,000,000.00 - 152,447.20 - - - - 25,152,447.20 -
Beijing Wutong Chelian Technology Co.,
Ltd. 85,856,852.57 - (81,762,342.17) - - - - 4,094,510.40 -
Anhe (Chongqing) Equity Investment
Fund Management Co., Ltd. 2,500,000.00 - (560,394.14) - - - - 1,939,605.86 -
Hangzhou Chelizi Intelligent Technology
Co., Ltd. 2,703,275.87 - 4,824,296.36 - - - - 7,527,572.23 -
Nanjing Leading Equity Investment
Partnership(Limited Partnership) - 858,267,717.00 76,950,606.32 - - - - 935,218,323.32 -
Nanjing Leading Equity Investment
Management Co., Ltd. - 1,500,000.00 (54,584.31) - - - - 1,445,415.69 -
Pakistan Master Automobile Co., Ltd. - 36,795,899.66 - - - - - 36,795,899.66 -
Jiangling Holding Co., Ltd. (Note 2) - 208,428,065.68 (142,252,166.55) 332,817,054.49 - - - 398,992,953.62 -
Subtotal 2,270,615,692.17 1,104,991,682.34 169,721,466.40 332,817,054.49 (74,897,909.69) - - 3,803,247,985.71 -
Total 13,275,170,118.83 3,168,734,535.25 (2,158,815,891.20) 332,817,054.49 (1,337,397,909.69) (2,272,170,918.59) - 11,008,336,989.09 -
11. Investment in other equity instruments
2020
159
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Accumulative changes in fair Fair value Dividends Income Reason for being designated
value included in other as fair value through other
comprehensive income comprehensive income
Corun Hybrid Power Technology Co. Ltd 8,090,000.00 208,090,000.00 - Unlisted equity instruments
China South Industry Group Finance Co., Ltd. 160,099,200.00 317,120,000.00 23,884,391.86 Unlisted equity instruments
Guoqi (Beijing) Intelligent Network Association Automotive Research
Institute Co., Ltd. 3,900,000.00 53,900,000.00 - Unlisted equity instruments
Guoqi Automobile Power Cell Research Co., Ltd. 13,680,000.00 53,680,000.00 - Unlisted equity instruments
China South Industry Group Financial Leasing Co., Ltd. (note2) 4,648,000.00 35,200,000.00 - Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 1,470,000.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co., Ltd. - 3,000,000.00 - Unlisted equity instruments
Sichuan Glass Co., Ltd. - - - Unlisted equity instruments
Total 190,417,200.00 691,990,000.00 25,354,391.86
Note 1: In 2020, Chongqing Ante trading Co., Ltd completed the cancellation, and the Group recovered the investment in these equity instruments.
Note 2: In May 2020, United Prosperity Investment (ShenZhen) Co., Ltd. changed its name to China South Industry Group Financial Leasing Co., Ltd.
160
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
11. Investment in other equity instruments(continued)
2019
Accumulative changes in fair value Fair value Dividends Income Reason for being designated
included in other comprehensive as fair value through other
income comprehensive income
Corun Hybrid Power Technology Co. Ltd 4,820,300.00 204,820,300.00 - Unlisted equity instruments
China South Industry Group Finance Co., Ltd. 158,945,000.00 315,965,800.00 38,343,163.30 Unlisted equity instruments
Guoqi (Beijing) Intelligent Network Association Automotive Unlisted equity instruments
Research Institute Co., Ltd. 50,000,000.00 100,000,000.00 -
Guoqi Automobile Power Cell Research Co., Ltd. 12,538,500.00 52,538,500.00 - Unlisted equity instruments
United Prosperity Investment (ShenZhen) Co., Ltd 3,629,500.00 34,181,500.00 - Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 - Unlisted equity instruments
Chongqing Ante trading Co., Ltd(note 1) - 3,000,000.00 - Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research Unlisted equity instruments
Institution Co., Ltd. - 3,000,000.00 -
Sichuan Glass Co., Ltd. - - - Unlisted equity instruments
Total 229,933,300.00 734,506,100.00 38,343,163.30
161
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
12. Investment property
Cost Model
Item Buildings
2020 2019
Original cost
Beginning and Ending 10,050,100.00 10,050,100.00
balance
Accumulated depreciation
and amortization
Beginning 2,947,250.28 2,720,538.72
Accrual 226,711.56 226,711.56
Ending 3,173,961.84 2,947,250.28
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 6,876,138.16 7,102,849.72
Beginning 7,102,849.72 7,329,561.28
The investment property is rented to third parties in the form of operating lease.
As at 31 December 2020, there is no investment property without property certificate (As at 31
December 2019: Nil).
162
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
13. Fixed assets
(1) Details of fixed assets
2020
Item Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 11,144,160,050.01 25,623,584,497.53 1,355,868,955.84 8,286,664,834.75 46,410,278,338.13
Purchase 3,782,255.92 10,233,771.87 716,168.53 712,526.80 15,444,723.12
Transfer from
Construction in
progress 1,627,629,987.71 995,605,904.96 358,185,689.31 956,035,182.68 3,937,456,764.66
Other addition - 797,980.55 433,482.76 1,277,742.96 2,509,206.27
Other deduction - 501,642.49 - 28,817,283.39 29,318,925.88
Disposal 5,762,657.18 238,939,328.14 282,022,974.05 106,295,085.12 633,020,044.49
Ending 12,769,809,636.46 26,390,781,184.28 1,433,181,322.39 9,109,577,918.68 49,703,350,061.81
Accumulated
depreciation
Beginning 2,515,402,360.27 11,496,523,762.29 629,232,960.52 3,969,233,358.51 18,610,392,441.59
Accrual 426,238,876.06 2,001,832,540.31 224,120,391.54 625,582,568.77 3,277,774,376.68
Other addition - 151,492.51 104,035.84 289,523.48 545,051.83
Other deduction - 101,641.45 - 5,787,985.65 5,889,627.10
Disposal 2,548,389.23 72,346,228.79 201,387,475.67 53,292,079.12 329,574,172.81
Ending 2,939,092,847.10 13,426,059,924.87 652,069,912.23 4,536,025,385.99 21,553,248,070.19
Impairment
provision
Beginning 85,592,184.71 631,047,449.99 36,761,889.19 106,993,818.46 860,395,342.35
Accrual 15,087,215.95 716,207,552.01 112,398,091.07 174,235,148.81 1,017,928,007.84
Disposal - 91,414,911.14 25,119,945.65 48,444,198.74 164,979,055.53
Ending 100,679,400.66 1,255,840,090.86 124,040,034.61 232,784,768.53 1,713,344,294.66
Carrying amount
Ending 9,730,037,388.70 11,708,881,168.55 657,071,375.55 4,340,767,764.16 26,436,757,696.96
Beginning 8,543,165,505.03 13,496,013,285.25 689,874,106.13 4,210,437,657.78 26,939,490,554.19
163
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(1) Details of fixed assets (continued)
2019
Item Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9,889,579,515.34 21,927,380,270.82 1,213,223,699.56 7,644,065,328.46 40,674,248,814.18
Purchase 10,051,085.36 10,383,228.89 923,091.00 17,745,714.28 39,103,119.53
Transfer from
Construction in
progress 1,255,128,220.82 5,381,232,681.61 155,920,892.72 1,165,455,499.85 7,957,737,295.00
Disposal 10,598,771.51 1,695,411,683.79 14,198,727.44 540,601,707.84 2,260,810,890.58
Ending 11,144,160,050.01 25,623,584,497.53 1,355,868,955.84 8,286,664,834.75 46,410,278,338.13
Accumulated
depreciation
Beginning 2,147,206,657.32 11,026,127,942.23 405,520,581.39 3,773,744,928.55 17,352,600,109.49
Accrual 372,877,646.57 1,796,628,985.33 236,791,742.00 609,619,331.30 3,015,917,705.20
Disposal 4,681,943.62 1,326,233,165.27 13,079,362.87 414,130,901.34 1,758,125,373.10
Ending 2,515,402,360.27 11,496,523,762.29 629,232,960.52 3,969,233,358.51 18,610,392,441.59
Impairment
provision
Beginning 82,452,249.51 895,917,567.96 36,271,972.06 145,952,856.85 1,160,594,646.38
Accrual 3,249,811.61 83,337,033.15 919,442.01 35,466,815.08 122,973,101.85
Disposal 109,876.41 348,207,151.12 429,524.88 74,425,853.47 423,172,405.88
Ending 85,592,184.71 631,047,449.99 36,761,889.19 106,993,818.46 860,395,342.35
Carrying
amount
Ending 8,543,165,505.03 13,496,013,285.25 689,874,106.13 4,210,437,657.78 26,939,490,554.19
Beginning 7,659,920,608.51 10,005,334,760.63 771,431,146.11 3,724,367,543.06 22,161,054,058.31
(2) Fixed assets that are temporarily unused
On December 31, 2020, fixed assets with a book value of approximately RMB 135,900,346.33
(December 31, 2019: book value of approximately RMB 38,803,959.77) were temporarily idle due
to product planning and other reasons.
(3) The book value of fixed assets which are rented out under operating leases is as follow:
Item 2020 2019
Buildings 172,080,235.67 74,985,870.88
Machinery 31,896,067.26 9,443,408.12
164
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(4) Fixed assets without property certificate as at 31 December 2020 are as follow:
Reason for incomplete certificate of
Item Carrying amount
title
Assembly workshop 787,042,105.81 Under processing
R&D Center 758,592,108.08 Under processing
Painting workshop 587,526,470.84 Under processing
Welding workshop 514,927,690.13 Under processing
Yuzui Auto City 235,107,029.57 Under processing
Stamping Workshop 208,974,780.42 Under processing
H plant Phase IV 143,466,732.14 Under processing
Other plants 118,567,180.28 Under processing
Other supporting facilities 116,845,557.39 Under processing
New energy battery production
69,700,148.90 Under processing
plant
S series machine plant 59,686,333.17 Under processing
Engine workshop 59,671,609.69 Under processing
No.2 factory building, No.2
33,525,809.96 Under processing
public station building
EA Phase I Foundry Workshop 31,734,419.89 Under processing
Emission Capability Laboratory 23,760,281.88 Under processing
Staff cafeteria 22,751,911.75 Under processing
Office building 17,498,065.47 Under processing
Vehicle capability Lab 6,833,126.87 Under processing
Buildings in testing projects of
4,492,797.04 Under processing
Dianjiang
Technology center workshop 4,136,776.66 Under processing
165
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
14. Construction in progress
(1) Details of construction in progress
2020 2019
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus production
17,743,577.36 - 17,743,577.36 59,110,263.16 - 59,110,263.16
equipment
Car production equipment 88,814,216.88 - 88,814,216.88 104,070,401.86 - 104,070,401.86
Engine plant 146,394,397.19 - 146,394,397.19 880,128,770.64 - 880,128,770.64
Vehicle research institution 38,021,494.37 - 38,021,494.37 40,087,119.45 - 40,087,119.45
Vehicle moulds 241,611,437.44 21,532,971.11 220,078,466.33 284,573,714.88 - 284,573,714.88
Car production Project of
336,334.75 - 336,334.75 6,491,703.97 - 6,491,703.97
Hefei Changan
Others 586,467,649.83 49,819,988.01 536,647,661.82 404,739,782.47 49,398,728.00 355,341,054.47
Total 1,119,389,107.82 71,352,959.12 1,048,036,148.70 1,779,201,756.43 49,398,728.00 1,729,803,028.43
166
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2020
The project
Budget Other investments’ Progress of
Project Beginning balance Addition Transfer to fixed assets Source of funds Ending balance
(RMB0,000) deduction proportion of construction
budget
Mini-bus production
539,977.00 59,110,263.16 139,253,474.77 - 180,620,160.57 80% 80% Self-funded 17,743,577.36
equipment
Self-raised and
Car production equipment 773,144.00 104,070,401.86 221,519,672.72 - 236,775,857.70 33% 33% additional issuance
88,814,216.88
Self-raised and
Engine plant 983,766.00 880,128,770.64 612,968,962.61 - 1,346,703,336.06 98% 98% additional issuance
146,394,397.19
Vehicle research
276,363.00 40,087,119.45 223,477,230.09 - 225,542,855.17 90% 90% Self-funded 38,021,494.37
institution
Vehicle moulds 268,991.20 284,573,714.88 275,966,240.96 - 340,461,489.51 94% 94% Self-funded 220,078,466.33
Car production project of Self-raised and
459,601.00 6,491,703.97 756,193,521.41 - 762,348,890.63 85% 85% additional issuance
336,334.75
Hefei Changan
Others 355,341,054.47 1,026,929,366.45 618,584.08 845,004,175.02 536,647,661.82
Total 1,729,803,028.43 3,256,308,469.01 618,584.08 3,937,456,764.66 1,048,036,148.70
167
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2019：
The project
Budget Progress of
Project Beginning balance Addition Transfer to fixed assets investments’ Source of funds Ending balance
(RMB0,000) construction
proportion of budget
Mini-bus production
539,977.00 815,889,070.57 669,970,155.04 1,426,748,962.45 77% 77% Self-raised 59,110,263.16
equipment
Yuzui motor city project 564,027.00 51,962,876.25 127,147,462.86 139,562,709.92 80% 80% Self-raised 39,547,629.19
Car production equipment 735,202.00 181,137,313.03 280,561,074.87 357,627,986.04 31% 31% Self-raised 104,070,401.86
Engine plant 942,516.00 1,458,726,257.58 1,375,360,914.30 1,953,958,401.24 95% 95% Self-raised 880,128,770.64
Vehicle research institution 251,830.00 854,570,879.08 315,087,543.90 1,129,571,303.53 90% 90% Self-raised 40,087,119.45
Vehicle moulds 242,050.00 420,284,566.37 165,308,918.23 301,019,769.72 93% 93% Self-raised 284,573,714.88
Light vehicle technical Self-raised
transformation project 143,776.00 83,207,252.58 109,955,391.66 127,768,361.65 46% 46% 65,394,282.59
of Baoding Changan Bus
Beijing vehicle construction Self-raised
513,262.53 98,585,664.59 54,616,917.35 92,895,275.85 73% 73% 60,307,306.09
project
Car production project of Self-raised
389,601.00 872,832,482.14 996,304,527.39 1,862,645,305.56 76% 76% 6,491,703.97
Hefei Changan
Others 546,647,668.56 209,383,387.08 565,939,219.04 Self-raised 190,091,836.60
Total 5,383,844,030.75 4,303,696,292.68 7,957,737,295.00 1,729,803,028.43
168
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
15. Intangible assets
2020
Software use Trademark use Non-patent
Item Land use rights Total
rights rights technology
Original cost
Beginning 2,753,082,390.28 705,159,803.48 211,784,400.00 6,820,364,590.14 10,490,391,183.90
Purchase 183,379,766.56 27,638,917.08 - 84,000.00 211,102,683.64
Internal - - - 813,240,999.00 813,240,999.00
research and
development
Other additions - 388,564.73 - - 388,564.73
Other deduction - - - 68,815,550.21 68,815,550.21
Disposal - 360,323.10 - - 360,323.10
Ending 2,936,462,156.84 732,826,962.19 211,784,400.00 7,564,874,038.93 11,445,947,557.96
Accumulated
amortization
Beginning 461,981,506.33 564,665,067.35 188,453,466.62 3,788,586,893.37 5,003,686,933.67
Accrual 60,286,821.32 54,937,693.57 17,500,000.00 959,903,041.03 1,092,627,555.92
Other additions - 100,148.02 - - 100,148.02
Other deduction - - - 3,678,080.32 3,678,080.32
Disposal - 357,312.00 - - 357,312.00
Ending 522,268,327.65 619,345,596.94 205,953,466.62 4,744,811,854.08 6,092,379,245.29
Impairment
provision
Beginning - 23,617,923.17 - 253,467,013.57 277,084,936.74
Accrual - - - 130,448,323.47 130,448,323.47
Ending - 23,617,923.17 - 383,915,337.04 407,533,260.21
Carrying
amount
Ending 2,414,193,829.19 89,863,442.08 5,830,933.38 2,436,146,847.81 4,946,035,052.46
Beginning 2,291,100,883.95 116,876,812.96 23,330,933.38 2,778,310,683.20 5,209,619,313.49
169
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
15. Intangible assets(continued)
2019
Trademark use Non-patent
Item Land use rights Software use rights Total
rights technology
Original cost
Beginning 2,753,082,390.28 632,418,610.26 211,784,400.00 5,628,937,137.87 9,226,222,538.41
Purchase - 72,741,193.22 - - 72,741,193.22
Internal
research and - - - 1,191,538,130.67 1,191,538,130.67
development
Disposal - - - 110,678.40 110,678.40
Ending 2,753,082,390.28 705,159,803.48 211,784,400.00 6,820,364,590.14 10,490,391,183.90
Accumulated
amortization
Beginning 403,454,284.03 510,503,061.87 170,953,466.62 2,893,723,166.60 3,978,633,979.12
Accrual 58,527,222.30 54,162,005.48 17,500,000.00 894,872,734.70 1,025,061,962.48
Disposal - - - 9,007.93 9,007.93
Ending 461,981,506.33 564,665,067.35 188,453,466.62 3,788,586,893.37 5,003,686,933.67
Impairment
provision
Beginning - 23,617,923.17 - 205,727,083.32 229,345,006.49
Accrual - - - 47,739,930.25 47,739,930.25
Ending - 23,617,923.17 - 253,467,013.57 277,084,936.74
Carrying
amount
Ending 2,291,100,883.95 116,876,812.96 23,330,933.38 2,778,310,683.20 5,209,619,313.49
Beginning 2,349,628,106.25 98,297,625.22 40,830,933.38 2,529,486,887.95 5,018,243,552.80
As of December 31, 2020, intangible assets formed through internal research and development
accounted for 49.25% of the year-end book value of intangible assets (December 31, 2019:
53.33%).
As of December 31, 2020, the book value of land use rights that have not completed the land use
right certificate was RMB 181,350,887.85 (December 31, 2019: Nil).
16. Development expenditure
2020
Addition Deduction
Charged to
Beginning Internal research Recognized as income
Item Ending balance
balance and intangible Statement of Other deduction
development assets the current
year
Automobile
814,745,464.20 987,864,041.99 813,240,999.00 169,848,928.41 222,941,790.83 596,577,787.95
Development
2019
Addition Deduction
Beginning Charged to income
Item Internal research and Recognized as intangible Ending balance
balance Statement of the
development assets
current year
Automobile
789,597,615.60 1,309,371,552.15 1,191,538,130.67 92,685,572.88 814,745,464.20
Development
170
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
17. Goodwill
2020
Beginning
Investee Addition Deduction Ending balance
balance
Hebei Changan
9,804,394.00 - - 9,804,394.00
Automobile Co., Ltd.
Nanjing Changan
- - - -
Automobile Co., Ltd.
Changan Weilai New
Energy Automobile - 39,078,794.37 - 39,078,794.37
Technology Co., Ltd.
Total 9,804,394.00 39,078,794.37 - 48,883,188.37
2019
Beginning
Investee Addition Deduction Ending balance
balance
Hebei Changan
9,804,394.00 - - 9,804,394.00
Automobile Co., Ltd.
Nanjing Changan
- - - -
Automobile Co., Ltd.
Total 9,804,394.00 - - 9,804,394.00
Movement of provision for goodwill is as follow:
2020 and 2019
Beginning
Investee Addition Deduction Ending balance
balance
Nanjing Changan
73,465,335.00 - - 73,465,335.00
Automobile Co., Ltd.
Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., provision for related
goodwill has been fully accrued and amounted to RMB73,465,335.00.
18. Long-term deferred expenses
Item Beginning Addition Amortization Ending
balance balance
2020 14,327,639.90 2,068,879.75 5,754,007.14 10,642,512.51
2019 17,104,601.67 3,991,609.29 6,768,571.06 14,327,639.90
171
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
19. Deferred tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities that are not offset:
Item 2020 2019
Deductible Deductible
Deferred tax Deferred tax Deferred tax
temporary temporary
assets： assets assets
differences differences
Assets provision 2,269,403,109.47 340,410,466.42 1,096,277,037.39 164,441,555.61
Accrued expenses
and contingent 7,445,862,452.35 1,116,879,367.85 5,787,629,284.18 868,144,392.63
liabilities
Unpaid tech
development
expense and 847,106,263.84 127,040,348.39 356,768,621.37 53,515,293.21
advertisement
expense
Deferred income 2,844,260,662.36 426,639,099.35 2,737,366,931.07 410,605,039.66
Unpaid salary and
801,812,028.91 120,297,395.51 305,961,692.44 45,894,253.82
bonus and others
Total 14,208,444,516.93 2,131,266,677.52 10,284,003,566.45 1,542,600,534.93
Item 2020 2019
Taxable Taxable
Deferred tax Deferred tax Deferred tax
temporary temporary
liabilities： liabilities liabilities
differences differences
Available-for-sale
financial assets on
the changes in fair 383,159,045.10 57,473,856.77 1,626,528,679.00 243,979,301.85
value recorded in
capital reserve
Fair value
adjustment of
business
243,865,514.87 36,579,827.23 274,831,525.87 41,224,728.88
combination not
under common
control
Other 141,673,630.78 21,251,044.61 76,925,730.40 11,538,859.56
Total 768,698,190.75 115,304,728.61 1,978,285,935.27 296,742,890.29
Unrecognized deductible temporary differences and tax losses of unrecognized are as follows:
Item 2020 2019
The deductible temporary
2,819,701,163.81 2,819,674,898.01
difference
The deductible tax loss 4,237,027,432.33 8,045,254,649.13
Total 7,056,728,596.14 10,864,929,547.14
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the
above deductible loss, no deferred tax assets have been recognized accordingly.
172
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
19. Deferred tax assets and liabilities (continued)
Maturity period for unrecognized deductible tax losses:
Year 2020 2019
2020 - 114,124,498.57
2021 35,367,098.10 35,368,427.70
2022 190,021,844.24 200,696,545.78
2023 719,486,343.29 962,591,126.51
2024 767,913,990.65 668,059,432.50
2025 and beyond 2,524,238,156.05 6,064,414,618.07
Total 4,237,027,432.33 8,045,254,649.13
20. Short-term loans
Classification of short-term loans：
Item 2020 2019
Mortgage loans 48,000,000.00 50,000,000.00
guaranteed loan 530,000,000.00 179,580,000.00
Total 578,000,000.00 229,580,000.00
As at 31 December 2020, the interest rates of the above loans were1.60%-5.20% (as at 31
December 2019: 3.91%-5.20%).
As at 31 December 2020, there is no overdue short-term loan (as at 31 December 2019: Nil).
In 2020, the Group used land use rights with a book value of RMB 17,661,564.48 and fixed assets
with a book value of RMB 22,953,779.68 as collateral to obtain a working capital mortgage loan
of RMB 48,000,000.00 from the China South Industries Group Finance Co., Ltd. (2019: The Group
used land use rights with a book value of RMB 18,080,415.84 and fixed assets with a book value
of RMB 24,200,714.44 to obtain a liquidity mortgage loan of RMB 50,000,000.00 from the China
South Industries Group Finance Co., Ltd.).
21. Notes payable
Item 2020 2019
Commercial acceptance bill 4,562,217,151.91 2,551,863,471.51
Bank acceptance bill 13,011,797,401.55 10,878,679,822.72
Total 17,574,014,553.46 13,430,543,294.23
As at 31 December 2020, there is no overdue unpaid notes payable (as at 31 December 2019: Nil)
173
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
22. Accounts payable
2020 2019
Accounts payable 23,118,793,794.42 18,905,725,271.50
As at 31 December 2020, there is no significant accounts payable aged over one year (as at 31
December 2019: Nil).
23. Contract liabilities/Advances from customers
2020
Item 2020
Contract liabilities
Advance payment 3,779,593,859.42
Advance service payment 691,564,331.33
Total 4,471,158,190.75
2019
Item 2019
Advances from customers
Advance payment 2,315,641,685.78
24. Payroll payable
2020
Item Beginning Addition Deduction Ending
Short term salary
972,606,354.60 6,737,651,651.49 5,789,564,740.62 1,920,693,265.47
benefits
Defined contribution
68,484,427.31 347,393,568.42 324,797,894.63 91,080,101.10
plans
Early retirement
5,245,000.00 4,246,951.86 5,396,951.86 4,095,000.00
benefits
Total 1,046,335,781.91 7,089,292,171.77 6,119,759,587.11 2,015,868,366.57
2019
Item Beginning Addition Deduction Ending
Short term salary
1,271,461,842.35 4,902,928,307.23 5,201,783,794.98 972,606,354.60
benefits
Defined contribution
84,410,435.21 493,073,936.79 508,999,944.69 68,484,427.31
plans
Early retirement
7,123,000.00 8,925,762.83 10,803,762.83 5,245,000.00
benefits
Total 1,362,995,277.56 5,404,928,006.85 5,721,587,502.50 1,046,335,781.91
174
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
24. Payroll payable (continued)
Short term salary benefits：
2020
Item Beginning Addition Deduction Ending
Salary, bonus,
allowance 777,811,109.08 5,592,280,564.92 4,794,404,461.84 1,575,687,212.16
and subsidy
Employee benefit 11,657,039.54 317,688,040.15 278,893,211.36 50,451,868.33
Social insurance 11,380,417.43 304,903,209.37 286,237,969.44 30,045,657.36
Medical
1,520,154.30 279,890,193.81 262,090,668.80 19,319,679.31
insurance
Industrial injury
8,620,121.14 24,401,854.30 23,633,194.98 9,388,780.46
insurance
Maternity
1,240,141.99 611,161.26 514,105.66 1,337,197.59
insurance
Housing
2,797,302.45 376,304,300.74 304,469,566.82 74,632,036.37
accumulation fund
Labor fund and
employee 168,960,486.10 146,475,536.31 125,559,531.16 189,876,491.25
education fund
Total 972,606,354.60 6,737,651,651.49 5,789,564,740.62 1,920,693,265.47
2019
Item Beginning Addition Deduction Ending
Salary, bonus,
allowance 1,077,447,577.69 3,939,344,440.24 4,238,980,908.85 777,811,109.08
and subsidy
Employee benefit 45,611,590.61 230,351,764.50 264,306,315.57 11,657,039.54
Social insurance 3,379,369.66 325,520,272.55 317,519,224.78 11,380,417.43
Medical
532,854.88 284,975,364.87 283,988,065.45 1,520,154.30
insurance
Industrial injury
1,437,746.05 36,669,991.37 29,487,616.28 8,620,121.14
insurance
Maternity
1,408,768.73 3,874,916.31 4,043,543.05 1,240,141.99
insurance
Housing
9,422,677.58 290,581,751.15 297,207,126.28 2,797,302.45
accumulation fund
Labor fund and
employee 135,600,626.81 117,130,078.79 83,770,219.50 168,960,486.10
education fund
Total 1,271,461,842.35 4,902,928,307.23 5,201,783,794.98 972,606,354.60
175
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
24. Payroll payable (continued)
Defined contribution plans：
2020
Item Beginning Addition Deduction Ending
Basic retirement
61,036,996.88 336,307,315.34 315,115,429.86 82,228,882.36
security
Unemployment
7,447,430.43 11,086,253.08 9,682,464.77 8,851,218.74
insurance
Total 68,484,427.31 347,393,568.42 324,797,894.63 91,080,101.10
2019
Item Beginning Addition Deduction Ending
Basic retirement
76,517,169.90 477,667,218.04 493,147,391.06 61,036,996.88
security
Unemployment
7,893,265.31 15,406,718.75 15,852,553.63 7,447,430.43
insurance
Total 84,410,435.21 493,073,936.79 508,999,944.69 68,484,427.31
The salary, bonus, allowance and subsidy, employee benefits and other social insurances
mentioned above are paid in time according to related laws and regulations and sets of the Group.
25. Taxes payable
Item 2020 2019
Value-added tax 441,502,809.12 84,852,296.03
Consumption tax 730,908,794.38 629,406,972.37
Corporate income tax 60,154,873.22 120,351,092.86
City maintenance and
construction tax and 35,664,425.85 34,455,756.66
education surcharge
Others 23,770,361.29 20,026,324.88
Total 1,292,001,263.86 889,092,442.80
176
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
26. Other payables
Item 2020 2019
Purchase and construction of fixed
assets, intangible assets and engineering 1,627,340,431.42 2,091,437,803.04
deposits
Advanced receipt of land and plant
1,000,000,000.00 -
disposal fees
Advertisement fees 642,353,999.96 405,752,873.43
Maintenance fees 213,623,566.01 158,503,895.70
Customer and supplier margin 190,379,159.39 284,705,119.28
Storage fees and freight 120,627,263.12 247,969,064.86
Advanced receipt of equity transfer - 831,300,000.00
Others 680,891,206.08 790,249,385.14
Total 4,475,215,625.98 4,809,918,141.45
27. Contingent liabilities
2020
2019. Changes in 2020.
Item Addition Deduction Other deduction Ending
12.31 accounting policies 1.1
Warrant
y 2,762,766,347.50 (499,237,150.28) 2,263,529,197.22 1,118,651,818.06 724,142,611.51 102,338,997.54 2,555,699,406.23
Supplier
compens
ation 589,814,491.78 - 589,814,491.78 45,679,606.87 66,022,562.42 - 569,471,536.23
Total 3,352,580,839.28 (499,237,150.28) 2,853,343,689.00 1,164,331,424.93 790,165,173.93 102,338,997.54 3,125,170,942.46
2019
Item Beginning Addition Deduction Ending
Warranty 2,610,780,818.12 781,546,593.88 629,561,064.50 2,762,766,347.50
Supplier
634,541,926.00 - 44,727,434.22 589,814,491.78
compensation
Total 3,245,322,744.12 781,546,593.88 674,288,498.72 3,352,580,839.28
177
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
28. Other current liabilities
Item 2020 2019
Accrued commercial discount
3,661,553,908.15 3,028,296,317.93
payable
Accrued transportation fee 646,608,569.79 501,351,278.96
Accrued market development
475,834,141.44 355,903,653.68
expense
Accrued utilities 25,513,787.11 25,777,106.11
Accrued labor service fee 56,717,786.02 39,493,497.48
Accrued technology royalty 78,382,904.18 101,005,700.82
Accrued lease fee 82,867,604.56 83,111,810.66
Accrued negative points for fuel
674,762,264.15 -
consumption
Others 140,517,138.68 119,003,396.13
Total 5,842,758,104.08 4,253,942,761.77
29. Long-term Loan
Item 2020 2019
Credit loan 1,055,300,000.00 55,300,000.00
Deduction: Loan within 1 year 100,000,000.00 -
Net long-term borrowings 955,300,000.00 55,300,000.00
As at 31 December 2020, the interest rates of the above loans were 1.00%-3.00% (as at 31
December 2019: 1.00%).
As at 31 December 2020, there is no overdue long-term loans (as at 31 December 2019: Nil).
178
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
30. Long-term payables
2020 2019
Special payables 261,260,928.70 857,356,423.71
Special payables:
2020
Item Beginning Addition Deduction Other deduction Ending
Land relocation
compensation of 555,350,709.40 - 500,000,000.00 - 55,350,709.40
Nanjing changan
Intelligent
manufacturing 167,757,531.08 129,500,264.00 165,392,557.11 - 131,865,237.97
project
Lightweight design of
48,960,118.00 1,997,500.00 44,043,149.51 - 6,914,468.49
automobile structure
Others 85,288,065.23 29,079,748.00 45,237,300.39 2,000,000.00 67,130,512.84
Total 857,356,423.71 160,577,512.00 754,673,007.01 2,000,000.00 261,260,928.70
2019
Item Beginning Addition Deduction Ending
Changan automobile E class Gasoline
engine cylinder block, cylinder head 22,984,695.64 - 22,984,695.64 -
production line project
Land relocation compensation of
55,350,709.40 500,000,000.00 - 555,350,709.40
Nanjing changan
Intelligent manufacturing
104,783,625.98 67,802,899.55 4,828,994.45 167,757,531.08
project
Lightweight design of
52,890,838.71 21,360,000.00 25,290,720.71 48,960,118.00
automobile structure
Others 67,580,954.96 77,982,460.32 60,275,350.05 85,288,065.23
Total 303,590,824.69 667,145,359.87 113,379,760.85 857,356,423.71
31. Long-term payroll payable
Item 2020 2019
Net obligation of defined
30,832,000.00 31,965,000.00
benefit plan
Early retirement 10,802,000.00 13,967,000.00
Total 41,634,000.00 45,932,000.00
179
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
31. Long-term payroll payable (continued)
In addition to basic retirement security and unemployment insurance, which are managed by
local government, the Group offers different kinds of overall pension and annual compensation
to some retired employees until their death. The group provides subsidies to former military
personnel who participated in specific wars and offers large medical treatment insurance for all
retired personnel. The group also offered early-retired salary, social insurances and housing
accumulation fund with different standards until their formal retirement (Male: Age 60; Female:
Age 50 or 55). These amounts of social insurances and housing accumulation fund are based on
cost base and statutory proportion.
The present value of the defined benefits plans is valued by expected cumulative welfare units
determination, which was ensured by Aon Hewitt China at 31 December 2020.
The related plans recognized in the profit and loss of the defined benefit plan are as follows:
2020 2019
Service costs- current period 45,000.00 43,000.00
Net interest 1,000,000.00 1,050,000.00
Net post-employment benefit costs 1,045,000.00 1,093,000.00
Recorded in general administrative expenses 1,045,000.00 1,093,000.00
Movement of present value of defined benefits plan is as follows:
Defined Benefit Plan Obligation
2020 2019
Beginning balance 31,965,000.00 33,534,000.00
Charged to income Statement of the current period
Service costs- current period 45,000.00 43,000.00
Interest expense, net 1,000,000.00 1,050,000.00
Actuarial losses charged to other comprehensive 207,000.00
(254,000.00)
income
Benefits Payment (2,385,000.00) (2,408,000.00)
Ending balance 30,832,000.00 31,965,000.00
180
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
32. Deferred income
2020
Changes in
Item 2019.12.31 2020.1.1 Addition Deduction 2020.12.31
accounting policies
Government
grants related 2,858,873,083.08 - 2,858,873,083.08 387,053,262.98 385,555,108.94 2,860,371,237.12
to assets
Government
grants related 209,830,081.10 - 209,830,081.10 553,180,000.00 154,363,933.34 608,646,147.76
to gains
Others
125,587,915.03 (125,587,915.03) - - - -
Total 3,194,291,079.21 (125,587,915.03) 3,068,703,164.18 940,233,262.98 539,919,042.28 3,469,017,384.88
2019
Item 2019.1.1 Addition Deduction 2020.12.31
Government grants related
2,871,932,225.37 224,667,080.00 237,726,222.29 2,858,873,083.08
to assets
Government grants related
673,754,999.84 703,273,000.00 1,167,197,918.74 209,830,081.10
to gains
Others 137,621,309.52 25,771,589.42 37,804,983.91 125,587,915.03
Total 3,683,308,534.73 953,711,669.42 1,442,729,124.94 3,194,291,079.21
As at 31 December 2020, details of liabilities related to government grants are as follows:
Item 2020.1.1 Addition Recognized in other 2020.12.31
income
Related to assets: 2,858,873,083.08 387,053,262.98 385,555,108.94 2,860,371,237.12
Production and
1,927,840,212.16 156,916,000.00 157,326,208.19 1,927,430,003.97
construction subsidies
R&D technology
550,362,176.88 143,478,662.98 51,743,710.12 642,097,129.74
subsidies
Other government
380,670,694.04 86,658,600.00 176,485,190.63 290,844,103.41
subsidies
Related to gains 209,830,081.10 553,180,000.00 154,363,933.34 608,646,147.76
R&D technology
204,560,206.76 300,000,000.00 152,012,644.80 352,547,561.96
subsidies
Other government
5,269,874.34 253,180,000.00 2,351,288.54 256,098,585.80
subsidies
Total 3,068,703,164.18 940,233,262.98 539,919,042.28 3,469,017,384.88
181
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
32. Deferred income (continued)
As at 31 December 2019, details of liability related to government grants are as follows：
Item 2020.1.1 Addition Recognized in Other deduction 2020.12.31
other income
Related to assets: 2,871,932,225.37 224,667,080.00 237,726,222.29 - 2,858,873,083.08
Production and
construction 1,934,513,955.92 123,792,000.00 130,465,743.76 - 1,927,840,212.16
subsidies
R&D technology
558,282,025.11 30,500,000.00 38,419,848.23 - 550,362,176.88
subsidies
Other
government 379,136,244.34 70,375,080.00 68,840,630.30 - 380,670,694.04
subsidies
Related to gains: 673,754,999.84 703,273,000.00 467,197,918.74 700,000,000.00 209,830,081.10
R&D technology
71,456,238.68 600,000,000.00 466,896,031.92 - 204,560,206.76
subsidies
Other
government 602,298,761.16 103,273,000.00 301,886.82 700,000,000.00 5,269,874.34
subsidies
Total 3,545,687,225.21 927,940,080.00 704,924,141.03 700,000,000.00 3,068,703,164.18
182
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
33. Share capital
2020
movement
Transfer of reserve to
31 December 2019 Issuance of shares Stock dividend Others Sub-total 31 December 2020
common shares
I. Restricted shares
Shares held by state-owned legal
1 - 283,138,318.00 - - - 283,138,318.00 283,138,318.00
persons
2 Other domestic shareholdings - 244,899,065.00 - - - 244,899,065.00 244,899,065.00
3 Foreign shareholdings - 32,710,280.00 - - - 32,710,280.00 32,710,280.00
Shares held by domestic natural
4 18,900.00 - - - - - 18,900.00
person
Total of restricted shares 18,900.00 560,747,663.00 - - - 560,747,663.00 560,766,563.00
II. Unrestricted shares
1RMB ordinary shares 3,900,643,469.00 - - - - - 3,900,643,469.00
Foreign-funded shares listed
2 901,986,142.00 - - - - - 901,986,142.00
domestically
Total of unrestricted shares 4,802,629,611.00 - - - - - 4,802,629,611.00
III. Total shares 4,802,648,511.00 560,747,663.00 - - - 560,747,663.00 5,363,396,174.00
183
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
33. Share capital (continued)
2019
movement
Transfer of
31 December Issuance of Stock 31 December
reserve to Others Sub-total
2018 shares dividend 2019
common shares
I. Restricted shares
Shares held by state-owned legal
1 139,762,403.00 - - - (139,762,403.00) (139,762,403.00) -
persons
Shares held by domestic natural
2 18,900.00 - - - - - 18,900.00
person
Total of restricted shares 139,781,303.00 - - - (139,762,403.00) (139,762,403.00) 18,900.00
II. Unrestricted shares
1RMB ordinary shares 3,760,881,066.00 - - - 139,762,403.00 139,762,403.00 3,900,643,469.00
Foreign-funded shares listed
2 901,986,142.00 - - - - - 901,986,142.00
domestically
Total of unrestricted shares 4,662,867,208.00 - - - 139,762,403.00 139,762,403.00 4,802,629,611.00
III. Total shares 4,802,648,511.00 - - - - - 4,802,648,511.00
184
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
34. Capital reserves
2020
Item Beginning Addition Deduction Ending
Share premium 4,938,329,830.94 5,426,124,109.65 - 10,364,453,940.59
Capital reserve
transferred arising from 44,496,899.00 - - 44,496,899.00
the old standards
Restricted capital reserve
17,015,985.20 - - 17,015,985.20
of equity investments
Others (Note 1) 366,254,879.52 139,735,920.92 1,175,706.59 504,815,093.85
Total 5,366,097,594.66 5,565,860,030.57 1,175,706.59 10,930,781,918.64
Note 1: In 2020, the increase in other capital reserves amounting to RMB 139,735,920.92 was due
to the capital increase of the minority shareholders of Chongqing Changan Kaicheng Automobile
Technology Co., Ltd., a non-wholly-owned subsidiary of the company, and the decrease in other
capital reserves amounting to RMB 1,175,706.59 was due to the capital increase. The company
purchased the minority shareholders' equity of Hebei Changan Automobile Co., Ltd.
2019
Item Beginning Addition Deduction Ending
Share premium 4,938,329,830.94 - - 4,938,329,830.94
Share-based payment 23,961,900.00 - 23,961,900.00 -
Capital reserve
transferred arising from 44,496,899.00 - - 44,496,899.00
the old standards
Restricted capital reserve
17,015,985.20 - - 17,015,985.20
of equity investments
Others 33,437,825.03 332,817,054.49 - 366,254,879.52
Total 5,057,242,440.17 332,817,054.49 23,961,900.00 5,366,097,594.66
185
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
35. Other comprehensive income
Accumulated other comprehensive income in consolidated balance sheet attributable to parent
company is as follows:
2019.12.31 Movement 2020.12.31
Re-measurement of changes in
1,429,000.00 (207,000.00) 1,222,000.00
defined benefit plans
Other comprehensive income that
cannot be transferred to profit or (2,088,068.00) - (2,088,068.00)
loss under the equity method
Changes in the fair value of other
equity instrument investments 195,443,305.00 (33,588,685.00) 161,854,620.00
Translation difference of foreign
(54,789,656.81) (27,778,174.41) (82,567,831.22)
currency financial statements
Total 139,994,580.19 (61,573,859.41) 78,420,720.78
Item 2018.12.31 2019 accounting 2019.1.1 Movement 2019.12.31
policy changes
Re-measurement of
changes in defined 1,175,000.00 - 1,175,000.00 254,000.00 1,429,000.00
benefit plans
Other comprehensive
income that cannot be
transferred to profit or (2,088,068.00) - (2,088,068.00) - (2,088,068.00)
loss under the equity
method
Changes in the fair value
of other equity
297,351,209.45 (165,492,749.45) 131,858,460.00 63,584,845.00 195,443,305.00
instrument
investments
Translation difference of
foreign currency (60,928,211.01) - (60,928,211.01) 6,138,554.20 (54,789,656.81)
financial statements
Total 235,509,930.44 (165,492,749.45) 70,017,180.99 69,977,399.20 139,994,580.19
Current occurrence amount of other comprehensive income in consolidated income statement
attributable to parent company:
2020
Amount before tax Deduct: amounts Deduct: Income tax Amount Amount
transferred to income attributable to attributable to
statement which were owners minority
recognized in other interests
comprehensive income
in prior period
Other comprehensive income not
to be reclassified to profit or loss
in subsequent period
Change in net liability or assets from
207,000.00 - - 207,000.00 -
defined benefit plan
Fair value change of Investment in
39,516,100.00 - 5,927,415.00 33,588,685.00 -
other equity instruments
Subtotal 39,723,100.00 - 5,927,415.00 33,795,685.00 -
Other comprehensive income will
be reclassified to profit or loss in
subsequent period
Foreign currency translation
27,778,174.41 - - 27,778,174.41 -
difference
Subtotal 27,778,174.41 - - 27,778,174.41 -
Total 67,501,274.41 - 5,927,415.00 61,573,859.41 -
186
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
35. Other comprehensive income (continued)
2019
Amount before tax Deduct: amounts Deduct: Income tax Amount Amount
transferred to income attributable to attributable
statement which were owners to minority
recognized in other interests
comprehensive income in
prior period
Other comprehensive income not
to be reclassified to profit or loss
in subsequent period
Change in net liability or assets from
254,000.00 - - 254,000.00 -
defined benefit plan
Fair value change of Investment in
74,805,700.00 - 11,220,855.00 63,584,845.00 -
other equity instruments
Subtotal 75,059,700.00 - 11,220,855.00 63,838,845.00 -
Other comprehensive income will
be reclassified to profit or loss in
subsequent period
Foreign currency translation
6,138,554.20 - - 6,138,554.20 -
difference
Subtotal 6,138,554.20 - - 6,138,554.20 -
Total 81,198,254.20 - 11,220,855.00 69,977,399.20 -
36. Special reserves
2020
Item Beginning Addition Deduction Ending
Safety fund 47,076,242.71 75,056,248.96 81,285,048.26 40,847,443.41
2019
Item Beginning Addition Deduction Ending
Safety fund 41,222,369.10 79,135,417.54 73,281,543.93 47,076,242.71
The Group accrued safety fund according to the circular of (Cai Qi [2012] No. 16) issued by the Ministry of Finance and the State Administration
of work safety on 14 February 2012.
187
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
37 Surplus reserves
2020
Item Beginning Addition Deduction Ending
Statutory surplus 2,401,324,255.50 280,373,831.50 - 2,681,698,087.00
2019
Item Beginning Addition Deduction Ending
Statutory surplus 2,401,324,255.50 - - 2,401,324,255.50
The Company appropriated statutory surplus reserves based on profit after tax. When statutory
surplus reserves account for 50% of paid-in capital, no further surplus reserve will be appropriated.
38. Retained earnings
Item 2020 2019
Retained earnings at beginning of the year 31,271,171,559.60 33,707,011,170.31
Adjustment - 297,351,209.45
Retained earnings after adjustment 31,271,171,559.60 34,004,362,379.76
Add: Profits attributable to parent company
3,324,251,164.16 (2,646,719,356.53)
for the current year
Less: Appropriation to statutory surplus
280,373,831.50 -
reserves
Less: Ordinary share dividend of cash - 86,471,463.63
Retained earnings at the end of year 34,315,048,892.26 31,271,171,559.60
According to the decision of the fifteenth meeting of the eighth session of the company’s board
of directors, the 2020 profit distribution plan is: based on the total share capital of 5,439,591,574
shares on the date of announcement, to distribute cash of RMB3.06 (including tax) for every 10
shares to all shareholders, totaling the distribution cash RMB 1,664,515,021.64 (tax included), and
the capital reserve will be converted to 4 shares for every 10 shares. After the conversion, the total
share capital will be changed to 7,615,428,203 shares. The above plan is yet to be reviewed and
approved by the company's general meeting of shareholders.
39. Operating revenue and cost
Item 2020 2019
Revenue Cost Revenue Cost
Main business 82,944,092,566.82 71,505,612,191.84 69,315,716,509.29 59,445,831,613.01
Other business 1,621,451,579.76 967,859,535.01 1,279,528,623.99 786,753,815.07
Total 84,565,544,146.58 72,473,471,726.85 70,595,245,133.28 60,232,585,428.08
Operating revenue listed as follows:
Item 2020 2019
Sale of goods 82,795,178,990.48 69,392,923,811.93
Provide labor and other services 1,770,365,156.10 1,202,321,321.35
Total 84,565,544,146.58 70,595,245,133.28
188
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
39. Operating revenue and cost (continued)
The breakdown of operating revenue generated from contracts with customers is as follows:
Item 2020
Revenue recognition time
Recognize revenue at a certain point in time 83,994,052,692.32
Recognize revenue within a certain period of time 571,491,454.26
Total 84,565,544,146.58
The income recognized in the current year and included in the book value of contract liabilities at
the beginning of the year is as follows:
Item 2020
Sales of goods 2,315,641,685.78
Provision of services and others 138,296,090.10
Total 2,453,937,775.88
The estimated time when the total transaction price that has not been fulfilled (or partially fulfilled)
performance obligations allocated to the end of the year is recognized as revenue is as follows:
Item 2020
Within 1 year 3,933,781,216.77
More than 1 year 537,376,973.98
Total 4,471,158,190.75
40. Tax and surcharges
Item 2020 2019
Consumption tax 2,524,467,098.37 1,998,619,440.93
City maintenance and
257,640,935.66 160,739,584.91
construction tax
Educational surcharge 190,517,078.15 118,587,412.13
Others 255,648,461.66 210,110,629.86
Total 3,228,273,573.84 2,488,057,067.83
189
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
41. Operating expenses
Item 2020 2019
Payroll and welfare 472,740,938.97 420,884,406.19
Promotion, advertising fee 2,565,795,656.38
2,224,959,385.19
and Sales service fee
Transportation and storage fees 231,401,208.99 1,796,397,367.83
Travelling expenses 65,224,349.32 89,905,543.70
Package expenses 15,020,690.68 8,979,853.46
Consulting fee 7,974,664.26 9,278,821.91
Training fee 12,005,918.53 28,185,324.64
Others 43,133,427.57 12,580,183.02
Total 3,413,296,854.70 4,591,170,885.94
42. General and administrative expenses
Item 2020 2019
Payroll and welfare 2,673,763,574.52 1,360,795,649.37
Administrative expenses 298,175,266.20 314,648,478.13
Depreciation and amortization 266,028,419.76 276,550,788.64
Miscellaneous service charges 74,107,526.22 60,861,235.59
Traffic expenses 38,609,198.85 39,399,677.23
Travelling expenses 13,777,623.02 24,604,006.43
Negative points for fuel
consumption 738,036,573.58 -
Others 171,056,848.67 188,371,683.26
Total 4,273,555,030.82 2,265,231,518.65
43. Research and development expenses
Item 2020 2019
Payroll and welfare 1,085,597,553.81 1,079,128,106.16
Material fee 173,917,059.32 223,007,996.05
Subcontract fee 326,554,128.18 321,189,407.67
Survey and traffic expenses 75,341,701.46 81,309,580.38
Test fee 154,511,546.94 187,139,269.95
Depreciation and amortization 1,243,446,193.51 1,129,018,488.23
Others 94,519,824.07 148,270,912.69
Total 3,153,888,007.29 3,169,063,761.13
44. Financial income
Item 2020 2019
Interest income 341,543,220.81 245,520,358.56
Less: Foreign exchange gain or loss 47,017,013.03 (8,130,682.63)
Interest expense 46,672,055.34 40,109,729.93
Others 37,629,702.81 22,691,799.53
Total 210,224,449.63 190,849,511.73
190
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
45. Other income
Amount recognized in 2020
Item 2020 2019 as non-recurring profit and
loss
Other income 797,901,407.24 1,537,625,620.93 797,901,407.24
Government subsidies related to daily activities are as follows:
Item 2020 2019
Related to gains: 412,346,298.30 1,299,899,398.64
R&D technology subsidies 101,578,276.00 496,981,504.00
Production and construction
137,903,518.45 313,061,513.87
subsidies
Other government subsidies 18,500,570.51 22,658,462.03
Amortization of deferred
154,363,933.34 467,197,918.74
income-income
Related to assets: 385,555,108.94 237,726,222.29
Amortization of deferred
385,555,108.94 237,726,222.29
Income-Assets
Total 797,901,407.24 1,537,625,620.93
191
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
46. Investment income/(loss)
Item 2020 2019
Long-term equity investment losses
(566,732,463.22) (2,158,815,891.20)
accounted for by the equity method
Losses arising from business combination not
(6,937,641.07) -
under common control
The investment income of financial asset held
2,840,290.34 4,332,388.16
for trading during its holding period
Dividend income from remaining investments
25,354,391.86 38,343,163.30
in other equity instruments
Investment income from disposal of long-
1,438,639,602.10 -
term equity investments
Gains from the remeasurement of the
remaining equity at fair value after the loss of 2,246,681,836.54 -
control
Interest income from entrusted loan 13,768,160.42 6,771,226.43
Total 3,153,614,176.97 (2,109,369,113.31)
47. Fair value change
Item 2020 2019
Equity instrument investment 2,000,217,365.86 889,154,888.69
Derivative financial assets 35,173,300.00 -
Total 2,035,390,665.86 889,154,888.69
48. Impairment loss of credit
Item 2020 2019
Bad debt for account receivable 105,374,219.21 6,912,617.00
Bad debt for other receivables 2,368,840.68 118,745,115.02
Total 107,743,059.89 125,657,732.02
49. Impairment loss on assets
Item 2020 2019
Impairment of inventory 325,966,624.86 224,710,285.00
Impairment of fixed assets 1,017,928,007.84 122,973,101.85
Impairment of intangible assets 130,448,323.47 47,739,930.25
Impairment of construction in progress 21,954,231.12 83,333.12
Impairment of contract assets 21,509,919.88 -
Total 1,517,807,107.17 395,506,650.22
50. Gain on disposal of assets
Amount recognized in
Item 2020 2019 2020 as non-recurring
profit and loss
Gain on disposal of fixed-
29,465,046.07 56,658,864.17 29,465,046.07
assets
192
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
51. Non-operating income
Amount recognized in
Item 2020 2019 2020 as non-recurring
profit and loss
Fines, penalties and others 61,938,556.89 49,703,849.18 61,938,556.89
52. Non-operating expenses
Amount recognized in 2020
Item 2020 2019 as non-recurring profit and
loss
Donation 17,300,950.00 30,198,295.92 17,300,950.00
Fines and 69,135,425.39 81,475,589.37 69,135,425.39
penalties
Others 3,021,668.25 73,288,730.03 3,021,668.25
Total 89,458,043.64 184,962,615.32 89,458,043.64
53. Income tax expense
Item 2020 2019
Current income tax expense 72,283,291.61 166,789,357.70
Deferred income tax expense (764,176,889.27) 239,975,628.66
Total (691,893,597.66) 406,764,986.36
The relationship between income tax expense and profit/(loss) before tax is as follows:
Item 2020 2019
Profit/(loss) before tax 2,596,585,045.04 (2,242,366,904.52)
Tax at the applicable tax rate 389,487,756.76 (336,355,035.69)
Impact of different tax rates of subsidiaries (23,809,703.40) (46,985,923.84)
Adjustments to current income tax of
(50,457,750.46) 14,818,867.16
previous period
Profit or loss attributable to joint ventures
100,558,727.83 343,593,516.87
and associates
Non-taxable income (452,046,612.16) (6,647,240.42)
Non-deductible tax expense 9,866,001.00 8,783,277.80
Usage previous deductible losses (714,292,371.18) (66,761,248.99)
Unrecognized deductible temporary
268,065,428.20 722,485,517.59
differences and deductible losses
Additional deduction arising from research
(219,265,074.25) (226,166,744.12)
and development expense
Tax expense under actual tax rate of the
(691,893,597.66) 406,764,986.36
Group
193
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
54. Earnings per share (“EPS”)
The basic EPS is calculated by dividing the net profit of the current period attributable to the
ordinary shareholders of the Company by the weighted average number of outstanding ordinary
shares.
The Company has no dilutive potential ordinary shares.
Item 2020 2019
Earnings
Net profit attributable to ordinary
3,324,251,164.16 (2,646,719,356.53)
shareholders
Shares
Weighted average ordinary shares 4,904,043,979.00 4,802,648,511.00
Note: In 2020, the company non-publicly issued 560,747,663 shares. Therefore, the number of
ordinary shares issued in 2020 will increase from 4,802,648,511 shares to 5,363,396,174
shares. The company calculates the basic earnings per share for 2020 on this basis.
55. Notes to cash flow statement
(1) Items of cash received relating to other operating activities are as follows:
Item 2020 2019
Interest income 341,543,220.81 245,520,358.56
Government grants related to
1,358,793,139.94 2,427,786,919.77
operating activities
Others 337,950,698.50 1,345,854,279.36
Total 2,038,287,059.25 4,019,161,557.69
(2) Items of cash paid relating to other operating activities are as follows:
Item 2020 2019
Selling expense 2,907,979,028.67 4,243,108,756.85
Administrative expense 595,726,462.97 701,218,540.63
Research and development
650,927,200.65 737,909,170.70
expenses
Refund of government subsidies - 700,000,000.00
Others 362,358,325.45 644,165,606.15
Total 4,516,991,017.74 7,026,402,074.33
194
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
55. Notes to cash flow statement (continued)
(3) Items of cash received relating to other investing activities are as follows:
Item 2020 2019
Net cash received from business
63,921,805.55 -
combinations
Capital occupation fee for equity
16,388,900.00 -
transfer
Total 80,310,705.55 -
(4) items of cash received relating to other investing activities are as follows:
Item 2020 2019
Cash transferred out from the loss
104,416,061.73 -
of control of the subsidiary
Entrusted Loan - 300,000,000.00
Total 104,416,061.73 300,000,000.00
(5) Items of cash received relating to other financing activities are as follows:
Item 2020 2019
Withdraw for deposit of bill 34,712,775.00 32,839,805.56
(6) Items of cash paid relating to other financing activities are as follows:
Item 2020 2019
Payment for deposit of bill 619,498,751.25 395,159,204.54
Acquisition of minority
12,249,709.00 -
shareholders' equity
Others 1,187,381.47 -
Total 632,935,841.72 395,159,204.54
195
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
56. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Supplementary information 2020 2019
1．Cash flows from operating
activities calculated by adjusting the
net profit
Net profit/(loss) 3,288,478,642.70 (2,649,131,890.88)
Add: impairment provision for assets 1,625,550,167.06 521,164,382.24
Depreciation of fixed assets 3,277,774,376.68 3,015,917,705.20
Depreciation and amortization of
investment property 226,711.56 226,711.56
Amortization of intangible assets 1,092,627,555.92 1,025,061,962.48
Amortization of long-term deferred
expense 5,754,007.14 6,768,571.06
Increase in deferred income 400,314,220.70 (489,017,455.52)
Disposal loss on fixed assets,
intangible assets and others long-term
assets (29,465,046.07) (56,658,864.17)
Loss of abandonment of fixed assets (15,036,905.39) 61,599,450.00
Income of fair value movement (2,035,390,665.86) (889,154,888.69)
Financial expense 30,283,155.34 40,109,729.93
Investment income (3,153,614,176.97) 2,109,369,113.31
Decrease in deferred tax assets (588,666,142.59) 112,953,903.96
Decrease in inventory (3,384,304,795.07) 1,317,268,683.80
Deferred income tax liabilities
Decreased (175,510,746.68) 127,021,724.70
Increase in operating receivables (3,375,612,982.71) (6,933,919,137.79)
Increase in operating payables 13,720,446,966.40 6,610,407,218.35
Others (7,900,862.92) (48,238,681.15)
Net cash flows from operating
activities 10,675,953,479.24 3,881,748,238.39
2．Movement of cash and cash
equivalents
Ending balance of cash 30,655,968,057.63 9,360,474,674.89
Less: beginning balance of cash 9,360,474,674.89 9,648,153,614.80
Decrease in cash and cash equivalents 21,295,493,382.74 (287,678,939.91)
196
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
56. Supplementary information of cash flow statement (continued)
(2) Endorsement of bills:
Item 2020 2019
Endorsed bank acceptance
received by sales and providing 9,857,912,334.04 3,292,638,946.70
service
(3) Cash and cash equivalents
Item 2020 2019
I. Cash
Including: Cash on hand 52,569.13 18,280.08
Bank deposits that can be readily used 30,655,915,488.50 9,360,456,394.81
II. Cash equivalents - -
III. Ending balance of cash and cash
30,655,968,057.63 9,360,474,674.89
equivalents
Note: The restricted cash and cash equivalents of the Group are not included in the cash and cash
equivalents.
57. The assets with ownership or right restricted
Item 2020 2019 Notes
Cash and cash equivalents 1,345,807,542.44 705,696,678.59 Note 1
Notes receivable and accounts
7,320,550,460.00 3,125,099,350.00 Note 2
receivable
Intangible assets 17,661,564.48 18,080,415.84 Note 3
Fixed assets 22,953,779.68 24,200,714.44 Note 3
Note 1: As of December 31, 2020, and December 31, 2019, the cash with restricted ownership
of the Group were mainly used for the issuance of acceptance bills.
Note 2: As of December 31, 2020, the Group's notes receivable with a book value of RMB
7,320,550,460.00 have been pledged for the issuance of notes payable (December 31,
2019: RMB 3,125,099,350.00).
Note 3: As of December 31, 2020, the Group’s land use rights with a book value of RMB
17,661,564.48 and fixed assets with a book value of RMB 22,953,779.68 have been
mortgaged to the Weapon Equipment Group Finance Co., Ltd. to obtain a current
capital loan of RMB 48,000,000.00 . The amortization amount of the above land use
rights in 2020 is RMB 418,851.36, and the depreciation amount of the above fixed assets
in 2020 is RMB 1,246,934.76.
197
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
58. Foreign Monetary Item
Item 2020 2019
Original Currency Exchang Translated to RMB Original Currency Exchange Translated to RMB
e Rate Rate
Cash
USD 21,483,168.61 6.5249 140,175,526.85 12,051,146.32 6.9762 84,071,206.96
GBP 4,066,951.80 8.8903 36,156,421.59 2,705,025.17 9.1501 24,751,250.81
EUR 7,424,040.68 8.0250 59,577,926.46 3,335,742.03 7.8155 26,070,491.84
JPY 152,166,150.48 0.0632 9,616,900.71 128,999,237.00 0.0641 8,267,045.10
SUR 1,115,202,784.
0.0877 97,803,284.17 746,523,266.53 0.1129 84,257,705.03
15
BRL 572,816.92 1.2563 719,629.90 571,845.63 1.7378 993,754.73
Accounts
receivable
USD 12,537,939.36 6.5249 81,808,800.53 20,851,192.18 6.9762 145,462,086.89
SUR 230,799,878.57 0.0877 20,241,149.35 - 0.1129 -
Other
receivables
USD 30,144.60 6.5249 196,690.50 2,102,288.89 6.9762 14,665,987.75
JPY 14,802,218.99 0.0632 935,500.24 17,101,991.07 0.0641 1,095,998.20
EUR 907,595.17 8.0250 7,283,451.24 1,710,130.00 7.8155 13,365,521.02
GBP 736,839.36 8.8903 6,550,722.96 1,312,803.70 9.1501 12,012,285.14
Accounts
Payable
USD - 6.5249 - 528,062.06 6.9762 3,683,866.54
JPY 10,281,275.00 0.0632 649,776.58 10,747,095.93 0.0641 688,738.39
EUR 1,835,735.94 8.0250 14,731,780.92 960,196.00 7.8155 7,504,411.84
GBP 193,751.55 8.8903 1,722,509.40 462,384.83 9.1501 4,230,867.43
SUR 226,057,035.01 0.0877 19,825,201.97 - 0.1129 -
Other
Payables
USD 31,839.33 6.5249 207,748.44 5,502,387.24 6.9762 38,385,753.86
GBP 166,491.56 8.8903 1,480,159.92 178,041.96 9.1501 1,629,101.74
198
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
VI Changes in the scope of consolidation
1. Business combination not under common control
The company originally held 50% of the equity of Changan Weilai New Energy Co., Ltd.
(hereinafter referred to as "Changan Weilai"), and was able to exercise joint control over it,
accounting for it under the equity method. During the year, the company acquired a 45.38%
equity interest in Changan Weilai with cash of RMB 90,000,001.00, and the purchase date was
May 31, 2020. After the completion of the acquisition, the company held a total of 95.38% of the
equity of Changan Weilai.
The goodwill arising from the merger was RMB 39,078,794.37. Changan Wei’s net loss from the
date of purchase to the end of the year was RMB 98,349,164.08, and the net cash inflow was RMB
47,225,153.06.
2. Disposal of subsidiaries
The group's total The group's
Registered The reasons for not
Company name Business nature shareholding total voting
place being a subsidiary
ratio (%) rights (%)
Chongqing Changan New
Production and sales
Energy Vehicles Technology Chongqing New investors lead to
of new energy 48.95% 48.95%
Co., Ltd.(“ New Energy dilution of equity
vehicles and parts
Technology”)
According to the company and Chongqing Changxin Equity Investment Fund Partnership (Limited
Partnership), Nanjing Runke Industry Investment Co., Ltd., Chongqing Liangjiang New Area For
Business Management Partnership (Limited Partnership) and Chongqing Nanfang Industrial
Equity Investment Fund Partnership (Limited Partnership) (hereinafter collectively referred to as
the "investor") signed in January 2020 a capital increase agreement, the investor will increase the
capital of the company's wholly-owned subsidiary New Energy Technology by RMB
2,840,000,000.00. After the capital increase is completed, the investors hold a total of 51.05% of
the equity in New Energy Technology, the company’s equity in New Energy Technology has
dropped to 48.95%, and the New Energy Technology has been changed from a subsidiary of the
company to an associated company. Since the completion date of the capital increase (January
21, 2020), the Group will no longer incorporate new energy technology into the scope of
consolidation.
199
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Disposal of subsidiaries (continued)
The relevant financial information of New Energy Technology are listed as follows:
Item 2020.1.21 2019.12.31
Book value Book value
Current assets 2,164,329,019.08 2,076,322,906.26
Non-current assets 312,127,143.58 313,681,265.71
Current liabilities 1,895,124,201.32 1,774,027,393.40
Non-current liabilities 104,338,997.54 102,187,361.53
Net assets 476,992,963.80 513,789,417.04
Fair value of remaining
equity 2,723,674,800.34
Disposal income 2,246,681,836.54
The operating results of New Energy Technology from January 1, 2020 to the completion date of
the capital increase are listed below:
Item 2020.1.1-2020.1.21
Operating income 123,654,831.27
Operating cost 153,495,233.77
Net loss 64,659,825.75
200
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
VII Shares in other entities
1. Shares in subsidiaries
The subsidiaries of the Company are as follows：
Company name Main operating Registered place Nature Registered Total proportion
place of capital (0,000) of shareholders
business (%)
direct indirect
I. The subsidiary formed by establish or investment
Hebei Changan Automobile Co., Manufac
Ltd. (note 4) Dingzhou Dingzhou turing 46,469 - 95.62
Chongqing Changan International
Automobile Sales Co., Ltd. Chongqing Chongqing sales 1,376 100.00
Chongqing Changan Connected
Car Technology Co., Ltd. Chongqing Chongqing Lease 8,850 100.00 1.00
Chongqing Changan Special
Automobile Co., Ltd (note 2) Chongqing Chongqing Sales 2,000 50.00
Chongqing Changan Automobile
Supporting Service Co., Ltd. Chongqing Chongqing sales 3,000 99.00
Chongqing Changan New Energy
Automobile Co. Ltd. Chongqing Chongqing R&D 2,900 100.00
Chongqing Changan Europe
Design Academy Co., Ltd. Turin, Italy Turin, Italy R&D EUR1,738 100.00
Changan United Kingdom R&D Nottingham, Nottingham,
Center Co., Ltd. United Kingdom United Kingdom R&D GBP2,639 100.00 -
Beijing Changan R&D Center Co.,
Ltd. Beijing Beijing R&D 100 100.00 -
Changan Japan Designing Center
Co.,Ltd. Yokohama, Japan Yokohama, Japan R&D JPY1,000 100.00 -
Changan United States R&D Troy, United Detriot, United
Center Co., Ltd. states states R&D USD154 100.00 -
Changan Automobile Russia Co.,
Ltd. Moscow, Russia Moscow, Russia Sales RUB220,382 100.00 -
Changan Brazil Holdings Limited St. Paul, Brazil St. Paul, Brazil Sales BRL100 100.00 -
Changan automobile investment
(Shenzhen) Co., Ltd. Shenzhen Shenzhen Sales 23,525 100.00
Hangzhou Changan Yixing
Technology Co., Ltd. Hangzhou Hangzhou Lease 500 100.00 -
Hefei Changan Yixing Technology
Co., Ltd. Hefei Hefei Lease 500 100.00 -
Nanjing Changan Connected Car
Technology Co., Ltd. Nanjing Nanjing Lease 500 100.00 -
Nanjing Changan New Energy
Automobile Sales & Service Co.,
Ltd. Nanjing Nanjing Sales 5,000 100.00
Fuqing Changan New Energy
Automobile Co. Ltd. Nanjing Nanjing Sales 200 100.00 -
Xiamen Changan New Energy
Automobile Co. Ltd. Xiamen Xiamen Sales 200 100.00 -
Guangzhou Changan New Energy
Automobile Co. Ltd. Guangzhou Guangzhou Sales 400 100.00 -
Chongqing Chehemei Technology
Co., Ltd. Chongqing Chongqing Sales 1,000 100 -
Chongqing Changan Kaicheng
Automobile Technology Co.,
Ltd. (note 4) Chongqing Chongqing R&D 100,000 83.64
Chongqing Changan Automobile
Software Technology Co., Ltd. Chongqing Chongqing Sales 9,900 100.00 -
201
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
1. Shares in subsidiaries (continued)
Company name Main operating Registered place Nature of Registered Total proportion of
place business capital shareholders (%)
(0,000) direct indirect
II. subsidiaries acquired through business combinations not under common control
Nanjing Changan Automobile Co., Manufact
Ltd.(note1) Nanjing Nanjing uring 60,181 84.73 -
Chongqing Changan Lingyao Manufact
Automobile Co., Ltd.(note3) Chongqing Chongqing uring 133,764 100.00 -
Zhenjiang Demao Hairun Equity
Investment Fund Partnership finance
(Limited Partnership) Zhenjiang Zhenjiang 150,001 100.00 -
Changan Weilai New Energy
Automobile Technology Co., R&D
Ltd. Nanjing Nanjing 28,800 95.38 -
III. The subsidiary formed by business combination under common control
Hebei Baoding Changan Bus Co., Manufact
Ltd. (note 4) Dingzhou Dingzhou uring 3,000 - 100.00
Hefei Changan Automobile Manufact
Co.,Ltd. Hefei Hefei uring 227,500 100.00 -
Note 1: The proportion of the company's voting rights in Nanjing Changan Automobile Co., Ltd.
is 91.53%. The reason for the inconsistency between the shareholding ratio and the
proportion of voting rights is that some minority shareholders entrust the company to
exercise their voting rights.
Note 2: The remaining shareholders of Chongqing Changan Special Purpose Vehicle Co., Ltd.
have signed the "Concerted Acting Persons Agreement" with the company, all agreeing
to vote in accordance with the company's voting intentions, so the company can exercise
control over it, so it is included in the scope of consolidated financial report.
Note 3: The original Chongqing Changan Suzuki Automobile Co., Ltd. was renamed Chongqing
Lingyao Automobile Co., Ltd. in December 2020.
Note 4: In 2020, the company cooperated with Chongqing Linkong Development and Investment
Group Co., Ltd. to jointly establish Chongqing Changan Kaicheng Automobile
Technology Co., Ltd. with a registered capital of 1 billion yuan and the equity accounts
for 83.64% by using the equity, cash and part of the assets of Hebei Changan Automobile
Co., Ltd. and Baoding Changan Bus Manufacturing Co., Ltd.
As at 31 December 2020, the Group has no subsidiaries with important minority interests.
202
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates
Main Total proportion of
Registered Registered Accounting
Company name operating Nature of business shareholders (%)
place capital (0,000) treatment
place direct indirect
I. Joint ventures
Manufacture and sale o
Changan Ford The equity
Chongqing Chongqing f automobiles, and co USD24,100 50.00 -
Automobile Co., Ltd. method
mponents
Manufacture and sale of
Changan Mazda The equity
Nanjing Nanjing automobiles, and USD11,097 50.00 -
Automobile Co., Ltd. method
components
Manufacture and sale of
Changan Mazda Engine The equity
Nanjing Nanjing automobiles, and USD20,966 50.00 -
Co., Ltd.(Note) method
components
Management of
Nanchang Jiangling The equity
Nanchang Nanchang investment, industry and 100,000 50.00 -
Investment Co., Ltd. method
assets
II. Associates
Develop, product and
Chongqing Changan
sale of automobile and The equity
Kuayue Automobile Co., Chongqing Chongqing 6,533 34.30 -
components; import and method
Ltd.
export goods.
Sale of Changan Kuayue’
s automobile and
Chongqing Changan
agricultural cars and The equity
Kuayue Automobile Chongqing Chongqing 300 34.30 -
components. Technical method
Sales Co., Ltd.
advisory services for
automobile
Chongqing Changan Production and sales of
The equity
New Energy Vehicles Chongqing Chongqing new energy vehicles and 20,223 48.95
method
Technology Co., Ltd. parts
Beijing Fang’an cresent The equity
Beijing Beijing Regional taxi operation 2,698 22.24 -
taxi Co., Ltd. method
Provide car loan; provide
vehicle loans and
operating equipment
loans to car dealers,
Changan Automobile including the The equity
Chongqing Chongqing 476,843 28.66 -
Finacing Co., Ltd. construction loans of method
exhibition hall,spare
parts loans and
maintenance equipment
loans, etc.
Software and hardware
Hainan Anxinxing technology
The equity
Information Technology Chengmai Chengmai development, technical 3,000 30.00 -
method
Co., Ltd. consulting, auto parts
sales
Car sales, leasing,
Nanjing Chelai Travel software technology The equity
Nanjing Nanjing 10,000 10.00 -
Technology Co., Ltd. development, technical method
services
Technology development
Hunan Guoxin consulting, technical
The equity
Semiconductor Zhuzhou Zhuzhou services, technology 50,000 25.00 -
method
Technology Co., Ltd. transfer in the field of
power semiconductors
Technology
development, technical
Beijing Wutong Chelian The equity
Beijing Beijing consulting, technical 39,799 - 49.00
Technology Co., Ltd. method
services, technology
transfer
Anhe (Chongqing)
Equity investment The equity
Equity Investment Fund Chongqing Chongqing 1,000 - 25.00
management method
Management Co., Ltd.
Hangzhou Chelizi
The equity
Intelligent Technology Hangzhou Hangzhou Car travel service 630 - 20.00
method
Co., Ltd.
203
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates (continued)
Main Total proportion of
Registered Registered Accounting
Company name operating Nature of business shareholders (%)
place capital (0,000) treatment
place direct indirect
II. Associatess
Pakistan Master The equity
Pakistan Pakistan Car travel service BRL75,000 - 30.00
Automobile Co., Ltd. method
Production and sales of
Jiangling Holding Co., The equity
Nanchang Nanchang automobiles and auto 200,000 25.00 -
Ltd. method
parts
Equity investment,
venture capital;
investment in non-
Nanjing Leading Equity publicly traded equity
The equity
Investment Partnership Nanjing Nanjing such as non-listed 976,000 16.39 -
method
(Limited Partnership) companies 'equity, listed
companies' non-publicly
issued equity, and related
services.
Entrusted with the
management of private
Nanjing Leading Equity
equity investment funds, The equity
Investment Nanjing Nanjing 1,000 15.00 -
engaged in equity method
Management Co., Ltd.)
investment management
and related services
Zhongqi Chuangzhi The equity
Nanjing Nanjing R&D 1,600,000 3.125
Technology Co., Ltd. method
204
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates (continued)
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great
influence in the share of profit and loss in joint venture and associates, the Group adopts equity
method to deal with the investment to it.
The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the
information has been adjusted to eliminate the difference of the accounting policies.
2020 2019
Current assets 14,624,244,894.00 15,855,818,973.00
Of which: cash and 6,755,423,262.00 6,147,195,270.00
cash equivalent
Non-current assets 28,801,167,167.00 31,865,453,438.00
Total assets 43,425,412,061.00 47,721,272,411.00
Current liabilities 31,412,152,044.00 33,821,313,974.00
Non-current liabilities 8,318,215,122.00 10,133,779,777.00
Total liabilities 39,730,367,166.00 43,955,093,751.00
Minority interests - 84,802,769.00
Equity attributable to 3,695,044,895.00 3,681,375,891.00
owners
Net asset owned according 1,847,522,447.50 1,840,687,945.50
to share proportion
Adjustment (55,988,952.33) (57,864,617.59)
Book value of investment 1,791,533,495.17 1,782,823,327.91
Operating revenue 49,248,182,245.00 28,096,027,801.00
Financial expenses- 90,144,727.00 64,059,181.00
interest income
Financial expenses- 796,370,449.00 713,200,770.00
interest expense
Income tax expense 165,666,598.00 (954,312,779.00)
Net profit/(loss) 15,753,435.00 (3,850,695,209.00)
Dividend - -
205
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates (continued)
The table below shows the financial status of the less important joint ventures and associates:
2020 2019
Joint venture
Total book value of the
investment 4,374,675,512.56 5,422,265,675.47
Total amount calculated by
shareholding proportion
Net profit/(loss) 94,675,503.73 (401,576,178.40)
Other comprehensive
income - -
Total comprehensive
income 94,675,503.73 (401,576,178.40)
Associates
Total book value of the
investment 5,942,880,787.94 3,803,247,985.71
Total amount calculated by
shareholding proportion
Net profit (670,118,134.21) 169,721,466.40
Other comprehensive
income - -
Total comprehensive
income (670,118,134.21) 169,721,466.40
As at 31 December 2020, since the Group has no obligation to undertake the extra loss of
Chongqing Changan Kuayue Automobile Sales Co., Ltd, Beijing Fang’an cresent taxi Co., Ltd. and
Beijing Wutong Chelian Technology Co., Ltd. When extra loss occurs, the Group writes down the
long-term investment to zero without recognizing the extra loss.
206
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
VIII Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
Financial assets
Financial assets
measured at fair
measured at fair
value and whose
value and whose Financial assets
changes are
2020 changes are recorded measured at
recorded in Other
Total
in the current profit amortized cost
comprehensive
and loss (standard
income
required)
(specified)
Cash - 32,001,775,600.07 - 32,001,775,600.07
Financial assets for
trading 204,254,400.00 - - 204,254,400.00
Notes receivable - 28,371,541,054.75 - 28,371,541,054.75
Accounts receivable - 2,141,197,139.45 - 2,141,197,139.45
Other receivables - 723,919,037.36 - 723,919,037.36
Other current assets - 317,063,888.99 - 317,063,888.99
Investment in other
equity instrument - - 691,990,000.00 691,990,000.00
Total 204,254,400.00 63,555,496,720.62 691,990,000.00 64,451,741,120.62
Financial assets
Financial assets
measured at fair
measured at fair
value and whose
value and whose Financial assets
changes are
2019 changes are recorded measured at
recorded in Other
Total
in the current profit amortized cost
comprehensive
and loss (standard
income
required)
(specified)
Cash - 10,066,171,353.48 - 10,066,171,353.48
Financial assets for
trading 2,419,476,200.00 - - 2,419,476,200.00
Notes receivable - 26,805,635,587.19 - 26,805,635,587.19
Accounts receivable - 838,314,076.82 - 838,314,076.82
Other receivables - 3,731,755,992.46 - 3,731,755,992.46
Other current assets - 317,546,789.66 - 317,546,789.66
Investment in other
equity instrument - - 734,506,100.00 734,506,100.00
Total 2,419,476,200.00 41,759,423,799.61 734,506,100.00 44,913,406,099.61
207
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
1. Classification of financial instruments (continued)
Financial liabilities
Item 2020 2019
Short-term loans 578,000,000.00 229,580,000.00
Notes payable 17,574,014,553.46 13,430,543,294.23
Accounts payable 23,118,793,794.42 18,905,725,271.50
Other payables 4,475,215,625.98 4,809,918,141.45
Long-term loan 955,300,000.00 55,300,000.00
Non-current liabilities 100,000,000.00
-
due within one year
Total 46,801,323,973.86 37,431,066,707.18
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at 31 December 2020, the Group has endorsed acceptance bill with a carrying amount of
RMB5,093,467,680.36 (31 December 2019: RMB1,894,125,685.18) to suppliers to settle the
accounts payable. The maturities of the notes are between 1 to 6 months. According to the
relevant provisions of the "law of negotiable instruments", if the banks refuse the payment, the
holder has the right of recourse to the Group (the "continuing involvement"). The Group holds the
view that almost all the risks and rewards concerned have been transferred; therefore, the book
value of the accounts payable should be derecognized. The maximum loss and the undiscounted
cash flow of the continuing involvement and repurchase is equal to its book value, the Group
regards the fair value of the continuing involvement is not significant.
In 2020, the Group didn’t recognize profit or loss on the transferring date. No revenue or expense
should be recognized in accordance with the continuing involvement in the current period. The
indorsement occurred flatly in this period.
208
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit
risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and price risk).
The main financial instruments of the Group include monetary funds, equity investments, loans,
bills receivable, accounts receivable, bills payable, accounts payable, etc. The risks associated with
these financial instruments and the risk management strategies adopted by the Group to reduce
these risks are described below.
The Group has formulated risk management policies to identify and analyze the risks faced by the
Group, set appropriate risk acceptance levels and design corresponding internal control
procedures to monitor the Group's risk levels. The Group will periodically re-examine these risk
management policies and related internal control systems to adapt to changes in market
conditions or the Group ’s operating activities. The internal audit department also regularly and
irregularly checks whether the implementation of the internal control system complies with the
risk management policy.
Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's
policy, a credit review is required for all customers who require credit transactions. In addition, the
Group continuously monitors the balance of accounts receivable to ensure that the Group does
not face significant bad debt risk. For transactions that are not settled with the relevant business
unit's bookkeeping standard currency, the Group does not provide credit transaction conditions
unless specifically approved by the Group's credit control department.
Since the counterparties of monetary funds and bank acceptance receivables are reputable banks
with higher credit ratings, these financial instruments have lower credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise
accounts receivable, other receivables, dividend receivables and certain derivatives financial
instruments, the Group’s exposure to credit risk arising from default of the counterparty, with a
maximum exposure equal to the carrying amount of these instruments, listed as book value of
financial assets in consolidated financial statements. In 2020, there was no credit risk arising from
financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for
collateral. Credit risk is centralized and managed according to customers. As at the balance sheet
date, the Group has a specific concentration of credit risks. 61.26% of the Group's accounts
receivable (December 31, 2019: 20.76%) originated from the top five customers with the balance
of accounts receivable. The Group does not hold any collateral or other credit enhancements for
the balance of accounts receivable.
209
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Credit risk (continued)
2020
Judgment criteria for significant increase in credit risk
The group evaluates on each balance sheet date whether the credit risk of the relevant financial
instruments has increased significantly since the initial recognition. In determining whether credit
risk has increased significantly since the initial recognition, the group considers that reasonable
and evidence-based information can be obtained without unnecessary additional cost or effort,
including qualitative and quantitative analysis based on the group's historical data, external credit
risk ratings and forward-looking information. Based on a single financial instrument or a portfolio
of financial instruments with similar credit risk characteristics, the group compares the default
risk of financial instruments on the balance sheet date with the default risk on the initial
confirmation date to determine the change of default risk of financial instruments during their
expected duration.
When one or more of the following quantitative or qualitative criteria are triggered, the group
believes that the credit risk of financial instruments has significantly increased:
the quantitative criterion is that the default probability of the remaining duration on the report
date increases by more than a certain percentage compared with the initial confirmation;
qualitative criteria mainly include material adverse changes in the operating or financial
situation of the debtor, early warning customer list, etc.;
Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs, the group adopts a definition standard
consistent with the internal credit risk management objectives for relevant financial instruments,
and considers both quantitative and qualitative indicators. The group mainly takes the following
factors into consideration when evaluating whether the debtor has credit impairment:
significant financial difficulties of the issuer or debtor;
debtor breaches the contract, such as default or overdue payment of interest or principal;
the creditor gives the debtor concessions that the debtor would not have made under any other
circumstances for economic or contractual reasons related to the debtor's financial difficulties;
the debtor is likely to go bankrupt or undergo other financial restructuring;
the financial difficulties of the issuer or debtor result in the disappearance of an active market
for the financial asset;
purchase or source a financial asset at a substantial discount that reflects the fact that a credit
loss has occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events, but
not by events that can be identified separately.
210
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments(continued)
Credit risk (continued)
A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit
impairment has occurred, the group measures the impairment provision for different assets with
the expected credit loss of 12 months or the whole duration respectively. The key parameters of
expected credit loss measurement include default probability, default loss rate and default risk
exposure. The group takes into account the quantitative analysis and forward-looking information
of historical statistical data (such as counterparty rating, guarantee method and types of
collateral, repayment method, etc.) to establish default probability, default loss rate and default
risk exposure models.
The relevant definition is as follows:
probability of default is the probability that the debtor will not be able to meet its repayment
obligations in the next 12 months or throughout the remaining period. The default probability of
the group is adjusted based on the results of the historical credit loss model and forward-looking
information is added to reflect the default probability of the debtor in the current macroeconomic
environment.
the default loss rate refers to the group's expectation of the extent of losses from default risk
exposure. Default loss rates also vary depending on the type of counterparty, the type and priority
of recourse, and the collateral. The default loss rate is the percentage of the risk exposure loss at
the time of default, calculated on the basis of the next 12 months or the whole duration;
default exposure is the amount that should be paid to the group at the time of default over the
next 12 months or throughout the remaining duration.
The assessment of a significant increase in credit risk and the calculation of expected credit losses
involve forward-looking information. Through the analysis of historical data, the group identifies
the key economic indicators that affect the credit risks and expected credit losses of each business
type.
211
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Credit risk (continued)
2020
Balance of book value
Expected credit loss in 12
months Expected credit loss for the entire duration
Stage I Stage 2 Stage 3 Simplified
measurement
Cash 32,001,775,600.07 - - -
Financial assets for trading 204,254,400.00 - - -
Notes receivable 28,371,541,054.75 - - -
Accounts Receivable - - - 2,330,688,177.67
Other receivables 720,859,859.96 3,370,529.42 11,509,900.77 -
Other current assets 317,063,888.99 - - -
Investment in other equity
instrument 691,990,000.00 - - -
2019
Balance of book value
Expected credit loss in 12
months Expected credit loss for the entire duration
Stage I Stage 2 Stage 3 Simplified
measurement
Cash 10,066,171,353.48 - - -
Financial assets for trading 2,419,476,200.00 - - -
Notes receivable 26,805,635,587.19 - - -
Accounts Receivable - - - 922,466,550.83
Other receivables 2,205,778,389.26 1,637,955,311.33 13,616,375.98 -
Other current assets 317,546,789.66 - - -
Investment in other equity
instrument 734,506,100.00 - - -
212
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The
instrument takes into consideration the maturity date of financial instruments plus estimated
cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and
sufficient cash to support operating capital through financing functions by the use of bank loans,
debentures, etc.
The table below summarizes the maturity profile of the Group’s financial liabilities based on the
non-discounted cash flow of the contracts:
2020
Within 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Total
Short-term loans 12,546,250.00 10,676,250.00 564,836,250.00 - 588,058,750.00
Notes payable 2,597,962,425.69 5,595,973,525.17 9,380,078,602.60 - 17,574,014,553.46
Accounts payable 4,135,448,636.97 4,144,650,073.61 14,838,695,083.84 - 23,118,793,794.42
Other payable 2,265,809,851.66 281,948,093.43 1,927,457,680.89 - 4,475,215,625.98
Long-term loan - 6,888,250.00 20,664,750.00 996,353,000.00 1,023,906,000.00
Non-current
liabilities due - 750,000.00 100,750,000.00 - 101,500,000.00
within one year
Total 9,011,767,164.32 10,040,886,192.21 26,832,482,367.33 996,353,000.00 46,881,488,723.86
2019
Within 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Total
Short-term loans 10,873,355.54 11,662,192.77 225,320,407.33 - 247,855,955.64
Notes payable 2,199,933,553.00 4,009,043,006.46 7,221,566,734.77 - 13,430,543,294.23
Accounts payable 5,035,073,542.16 2,771,766,385.97 11,098,885,343.37 - 18,905,725,271.50
Other payable 2,617,278,106.27 863,614,813.37 1,329,025,221.81 - 4,809,918,141.45
Long-term loan 46,967.12 90,904.11 415,128.77 56,915,063.01 57,468,063.01
Total 9,863,205,524.09 7,656,177,302.68 19,875,212,836.05 56,915,063.01 37,451,510,725.83
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation.
As at 31 December 2020, the Group’s loans are bearing fixed interest rate and the Group is not
hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from
operating activities where transactions are settled in currencies other than the units' functional
currency and net investment to offshore subsidiary.
213
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Market risk(continued)
In 2020, the Group only has transactional currency exposures of 3.63% (2019: 4.97%) of its total
revenue that is valued in currencies other than the units' functional currency. Since most of the
Group’s businesses are operated in China mainland, the estimated influence of fluctuation of
foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging
to reduce the risk.
Equity instruments investment price risk
The price risk of equity instrument investment refers to the risk that the fair value of equity
securities is reduced due to changes in the level of stock indexes and changes in the value of
individual securities. On December 31, 2020, the Group's listed equity instrument investment
(Note V. 2) was listed on the Shanghai Stock Exchange and measured on the basis of market
quotes on the balance sheet date. The following table illustrates the sensitivity of the Group’s net
profit and loss to every 5% change in the fair value of equity instrument investments (based on
the book value at the balance sheet date) under the assumption that all other variables remain
constant.
2020
Equity instrument Carrying amount of Change in Increase/ Increase/(decrease) in
investment equity investments fair value (decrease) in net equity
profit
Shanghai- Equity
investment included in
financial assets at fair
180,929,400.00 5% 7,689,499.50 7,689,499.50
value through profit or
loss
Shanghai- Equity
investment included in
financial assets at fair
180,929,400.00 (5%) (7,689,499.50) (7,689,499.50)
value through profit or
loss
214
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Market risk(continued)
Equity instruments investment price risk (continued)
2019
Equity instrument Carrying amount of Change in Increase/ Increase/(decrease) in
investment equity investments fair value (decrease) in net equity
profit
Shanghai- Equity
investment included in
financial assets at fair 184,245,000.00 5% 7,830,412.50 7,830,412.50
value through profit or
loss
Shanghai- Equity
investment included in
financial assets at fair 184,245,000.00 (5%) (7,830,412.50) (7,830,412.50)
value through profit or
loss
Shenzhen- Equity
investment included in
financial assets at fair 2,235,231,200.00 5% 94,997,326.00 94,997,326.00
value through profit or
loss
Shenzhen- Equity
investment included in
financial assets at fair 2,235,231,200.00 (5%) (94,997,326.00) (94,997,326.00)
value through profit or
loss
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous
operation and maintain healthy capital ratios in order to support business development, and to
maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and
the risk feature of the assets. To maintain or adjust the capital structure, the Group can rectify
dividend distribution, return capital to shareholders or issue new shares. The Group is not subject
to external mandatory capital requirements constraints. The goal, principle and procedure of
capital management stay the same in 2019 and 2020.
The Group’s leverage ratio on the balance sheet date is as follows:
31 December 2020 31 December 2019
Leverage ratio 55.77% 54.99%
215
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
IX Disclosure of fair value
1. Assets and liabilities measured at fair value
2020
Input measured at fair value
Important but
Quoted price in active Important and
unobservable
market observable input(The Total
input (The third
(The first level) second level）
level)
Transactional financial
assets-equity
180,929,400.00 - - 180,929,400.00
instrument
investment
Transactional financial
assets-derivative - 23,325,000.00 - 23,325,000.00
financial assets
Investment in other
- - 691,990,000.00 691,990,000.00
equity instruments
Total 180,929,400.00 23,325,000.00 691,990,000.00 896,244,400.00
2019
Input measured at fair value
Important but
Quoted price in active Important and
unobservable
market observable input(The Total
input (The third
(The first level) second level）
level)
Transactional financial
assets-equity
instrument
investment 184,245,000.00 2,235,231,200.00 - 2,419,476,200.00
Investment in other
equity instrument - - 734,506,100.00 734,506,100.00
Total 184,245,000.00 2,235,231,200.00 734,506,100.00 3,153,982,300.00
2. Fair value estimation
Management has assessed and concluded accounts, including cash, notes receivable, accounts
receivable, other receivables, other payables, notes payable and accounts payable and so on,
whose fair value equals to book value because of its short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be
exchanged for or by which a liability could be incurred or settled by knowledge, willing parties in
a current arm’s-length transaction, other than liquidation or unwilling sales. Methods and
hypothesis followed are used for determining fair value.
216
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Fair value estimation (continued)
Long-term loans and short-term loans use discounted cash flow method to determine its fair
value, with discount rate in accordance with market return of other financial instruments based
on similar terms, credit risks and remaining terms. As at 31 December 2020, the default risk of
long-term loans and short-term loans were considered immaterial.
The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions,
and their fair value is determined at the quoted market price. The Group's unlisted equity
instruments use a series of valuation models to estimate the fair value, and the assumptions used
are not supported by observable market prices or interest rates. The Group mainly refers to the
evaluation reports of independent qualified professional appraisers. The Group believes that the
fair value and its changes estimated by valuation techniques are reasonable and are also the most
appropriate value on the balance sheet date.
The Group entered into a derivative financial instrument contract with the bank. The Group's
derivative financial instruments are foreign exchange forward contracts, which are measured
using valuation techniques similar to the present value method. The observable input value of the
market covered by the model is the forward exchange rate. The book value of a foreign exchange
forward contract is the same as the fair value.
3. Unobservable input
The following is an overview of the important unobservable input value of the third level fair value
measurement:
Fair value Valuation techniques Non-observable input value
Investment in other
equity instrument
2020 691,990,000.00 Comparable transaction
Market approach/ Income
value multiplier / Post-tax
2019 734,506,100.00 approach
discount rate
217
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
X Related party relationships and transactions
1. The holding company
Proportion
Proportion of
Holding Place of Nature of the of shares in
Registered capital voting rights in
company registration business the
the company
Company
Automobile and
Changan
its engines, spare
Automobile
Beijing 6,092,273,400.00 parts 21.92% 21.92%
Company
manufacturing,
Limited
marketing
The ultimate holding company is China South Industries Group Corporation.
2. Subsidiaries
Refer to Note VII 1 for details of the Group’s subsidiaries.
3. Joint ventures and associates
Refer to Note VII 2 for details of the Group’s joint ventures and associates.
218
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
4. Other related parties
Related parties Relationship
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changrong Machinery Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changfeng Jiquan Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co., Ltd. Controlled by the same ultimate holding company
Yunnan Xiyi Industries Co., Ltd. Controlled by the same ultimate holding company
Chongqing Shangfang Automobile Fittings Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
China South Industry Group Finance Co., Ltd; Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co., Ltd. Controlled by the same ultimate holding company
Chongqing Yihong Engineering Plastic Products Co., Ltd. Controlled by the same ultimate holding company
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Controlled by the same ultimate holding company
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Jiexin Forging Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co., Ltd. Controlled by the same ultimate holding company
Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Industries Group Co. Ltd. Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automobile Lighting Co., Controlled by the same ultimate holding company
China South Industries Group Commercial Factoring Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Information Center Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Financial Leasing Co., Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Transmission Sales Co., Ltd. Controlled by the same ultimate holding company
219
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Related parties Relationship
Chongqing Jianshe Industry (Group) Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Property Management Co., Ltd. Controlled by the same ultimate holding company
Sichuan Jian'an Industrial Co.,Ltd. Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Automoblf Sales & Survice Corporation Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co., Ltd. Controlled by the same ultimate holding company
Chongqing Anfu Automobile Co., Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co., Ltd. Controlled by the same ultimate holding company
Harbin Dongan Auto Engine Co., Ltd. Controlled by the same ultimate holding company
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Controlled by the same ultimate holding company
Wanyou Automobile Investment Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Auto Trade Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Economic Development Co., Ltd Controlled by the same ultimate holding company
Yunnan Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Nanning Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Yunnan Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Ya'an Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu wanyou auto Sales and service co.,Ltd Controlled by the same ultimate holding company
Bazhong Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Harbin Botong Auto Parts Co.,Ltd. Controlled by the same ultimate holding company
220
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Related parties Relationship
China Changan Automobile Group Hefei Investment Co., Ltd. Controlled by the same ultimate holding company
Guizhou Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Tsingshan Industrial Co., Ltd.(Formerly China Changan Automobile Group. – Chongqing
Controlled by the same ultimate holding company
Tsingshan Transmission Branch)
Guangxi Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Liangshan Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Real Estate Development Co., Ltd. Controlled by the same ultimate holding company
Harbin Hafei Automobile Industry Group Co.,Ltd. Participated by the Ultimate holding company
Chongqing Nexteer Steering System Co.,Ltd. Participated by the Ultimate holding company
South Inter Air-conditioner Co.,Ltd. Participated by the Ultimate holding company
South Tianhe Chassis System Co., Ltd. Participated by the Ultimate holding company
Chongqing Changan Minsheng Logistics Co. Ltd Participated by the Ultimate holding company
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Participated by the Ultimate holding company
Southern Fojiya Auto Parts Co., Ltd. Participated by the Ultimate holding company
Hunan Tyen Machinery Co., Ltd. Participated by the Ultimate holding company
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Participated by the Ultimate holding company
Dajiang Yapp Automotive Systems Co., Ltd. Participated by the Ultimate holding company
United Automotive Electronis Systems (Chongqing) Co., Ltd. Participated by the Ultimate holding company
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Tongyang Plastics Co., Ltd. Participated by the Ultimate holding company
Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. Participated by the Ultimate holding company
Lear Changan (Chongqing) Automotive System Co., Ltd. Participated by the Ultimate holding company
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. Participated by the Ultimate holding company
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Participated by the Ultimate holding company
Nanjing LingHang Technology Co., Ltd. Companies in which the company participates
Hangzhou Lingxing Yuexiang Auto Service Co.,Ltd. Companies in which the company participates
Chongqing Lingxing Yuexiang Auto Service Co.,Ltd. Companies in which the company participates
Nanjing Lingxing Yuexiang Auto Service Co.,Ltd. Companies in which the company participates
221
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
222
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties
(1) Transactions of goods and services
Purchases of goods and services from related parties
Related parties Nature of the transaction 2020 2019
Chongqing Tsingshan Industrial Co., Ltd. Purchase of spare parts 3,684,739,124.13 1,445,693,679.11
Purchase of spare parts and transportation
Chongqing Changan Minsheng Logistics Co. Ltd
fee 2,321,661,536.69 1,842,826,345.72
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Purchase of spare parts and accept service 1,178,198,495.66 855,905,264.99
Purchase of complete vehicles, spare parts
Chongqing Changan New Energy Vehicles Technology Co., Ltd 1,097,592,882.15 -
and accept service
Chongqing Wanyou Economic Development Co., Ltd Purchase of spare parts and accept service 976,443,727.86 449,900,979.95
Harbin Dongan Auto Engine Co., Ltd. Purchase of spare parts 932,157,154.17 863,253,483.29
Hubei Huazhong Marelli Automobile Lighting Co., Purchase of spare parts and accept service 924,861,149.84 342,062,024.70
Chongqing Nexteer Steering System Co.,Ltd. Purchase of spare parts 739,702,972.57 645,365,956.45
South Tianhe Chassis System Co., Ltd. Purchase of spare parts 726,774,574.11 423,553,043.17
Sichuan Jian'an Industrial Co.,Ltd. Purchase of spare parts 628,825,753.65 669,897,166.50
Southern Fojiya Auto Parts Co., Ltd. Accept service 491,923,455.98 362,451,567.62
South Inter Air-conditioner Co.,Ltd. Purchase of spare parts 426,702,939.90 343,160,145.30
Chengdu Huachuan Electric Equipment Co., Ltd. Purchase of spare parts 355,932,699.49 285,653,390.76
Lear Changan (Chongqing) Automotive System Co., Ltd. Purchase of spare parts 334,723,824.17 -
Dajiang Yapp Automotive Systems Co., Ltd. Purchase of spare parts 265,670,263.73 -
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Purchase of spare parts 247,355,461.90 -
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. Purchase of spare parts 242,321,598.09 -
United Automotive Electronis Systems (Chongqing) Co., Ltd. Purchase of spare parts 222,951,286.10 -
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Purchase of spare parts 180,146,080.98 103,655,325.91
Chongqing Changrong Machinery Co., Ltd. Purchase of spare parts 172,791,601.30 52,501,322.75
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Purchase of spare parts 158,286,387.38 151,818,323.38
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Purchase of spare parts 145,011,197.99 -
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Purchase of spare parts 144,053,301.47 104,933,521.74
Chengdu Wanyou Filter Co., Ltd. Purchase of spare parts 113,437,940.80 102,999,118.76
Hunan Tyen Machinery Co., Ltd. Purchase of spare parts 106,381,211.46 -
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Purchase of spare parts 92,051,383.78 104,848,894.36
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Purchase of spare parts 89,517,947.06 88,918,096.09
223
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Related parties Nature of the transaction 2020 2019
Yunnan Xiyi Industries Co., Ltd. Purchase of spare parts 83,142,186.90 74,537,241.94
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. Purchase of spare parts 65,711,704.15 -
Chongqing Shangfang Automobile Fittings Co., Ltd. Purchase of spare parts 47,085,555.46 31,151,137.10
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Purchase of spare parts 46,023,003.13 -
Beijing Phoenix Auto Intelligence Co., Ltd. Purchase of spare parts 40,112,533.75 -
Chongqing Construction Tongda Industrial Co., Ltd. Purchase of spare parts 35,482,658.54 25,843,605.06
Chongqing Dajiang Tongyang Plastics Co., Ltd. Purchase of spare parts 25,446,765.92 -
Chengdu Lingchuan Special Industry Co., Ltd. Purchase of spare parts 23,320,009.34 37,573,006.18
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Purchase of spare parts 15,506,135.12 23,453,388.49
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Purchase of spare parts 12,054,907.93 11,994,195.12
Chongqing Qingshan Transmission Sales Co., Ltd. Purchase of spare parts 10,194,400.54 8,394,479.56
Shenzhen Baoneng Automobile Co., Ltd. (formerly Changan PSA
Accept service 9,871,953.03 79,147,833.93
Automobiles Co., Ltd.)
Chongqing Changan Industries Group Co. Ltd. Purchase of spare parts and accept service 9,049,155.57 1,684,045.48
Guizhou Wanyou Auto Sales and Service Co., Ltd. Accept service 5,741,965.89 1,152,962.38
Yunnan Wanyou Auto Sales and Service Co., Ltd. Accept service 5,253,274.07 1,333,771.44
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Accept service 5,244,419.54 406,108.89
Purchase of spare parts and accept
Changan Ford Automobile Co., Ltd.
processing services 5,058,945.34 2,590,337.26
Chongqing Dajiang Jiexin Forging Co., Ltd. Purchase of spare parts and accept service 4,674,122.53 2,962,328.84
Chongqing Changan Construction Co., Ltd. Accept service 4,349,278.97 -
Chongqing Changan Property Management Co., Ltd. Accept service 4,017,497.13 3,768,639.91
Chongqing Yihong Engineering Plastic Products Co., Ltd. Purchase of spare parts 3,955,965.29 6,403,252.19
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Accept service 2,381,398.33 465,125.25
Chongqing Jianshe Industry (Group) Co., Ltd. Purchase of spare parts 2,330,777.03 -
China Changan Automobile Group Hefei Investment Co., Ltd. Sales of the vehicle 2,330,132.81 -
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Accept service 1,680,689.78 291,142.59
Hangzhou cherry intelligent technology co. LTD Provide labor services 1,616,404.78 -
Ya'an Wanyou Auto Sales and Service Co., Ltd. Accept service 1,393,713.98 169,973.58
Chengdu Wanyou Auto Trade Service Co., Ltd Accept service 917,270.50 758,199.25
Luzhou Wanyou Automobile Service Co., Ltd. Accept service 680,474.95 75,239.09
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Accept service 442,345.13 103,757.84
Bazhong Wanyou Auto Sales & Service Co., Ltd. Accept service 430,168.54 23,222.34
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Accept service 303,166.85 708,967.98
Yunnan Xiangyu Auto Sales and Service Co., Ltd. Accept service 183,484.32 162,564.53
Chongqing Anfu Automobile Co., Ltd. Sales of the vehicle 96,637.17 -
224
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Related parties Nature of the transaction 2020 2019
China Changan Automobile Group Tianjin Sales Co., Ltd. Accept service 69,937.47 29,492.96
Chengdu Wanyou Trading Co., Ltd. Accept service 20,445.13 39,638.09
Chongqing Changfeng Jiquan Machinery Co., Ltd. Purchase of spare parts - 784,396.13
Harbin Botong Auto Parts Co.,Ltd. Accept service - 110,662.34
Liangshan Wanyou Auto Sales & Service Co., Ltd. Accept service - 106,207.55
Nanning Wanyou Auto Sales and Service Co., Ltd. Accept service - 77,083.32
Guangxi Wanyou Auto Sales and Service Co., Ltd. Accept service - 45,265.47
Total 17,476,389,437.32 9,555,744,922.63
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
225
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Sales of goods and services to related parties
Relate parties Nature of the transaction 2020 2019
Chongqing Wanyou Economic Development Co., Ltd Sales of vehicles and parts 1,624,459,884.38 1,294,526,146.64
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Sales of the vehicle 1,149,704,763.57 1,020,942,159.56
Yunnan Wanyou Auto Sales and Service Co., Ltd. Sales of vehicles and parts 1,046,431,806.05 857,858,507.32
Chongqing Changan New Energy Vehicles Technology Co., Ltd Sales of vehicle parts and services 996,717,165.22 -
Guizhou Wanyou Auto Sales and Service Co., Ltd. Sales of vehicles and parts 789,666,169.97 705,328,475.27
Wanyou Automobile Investment Co., Ltd. Sales of the vehicle 512,772,048.97 402,904,992.87
Changan Automobile Finacing Co., Ltd. Provide labor services 388,230,602.82 237,043,345.19
Chengdu Wanyou Auto Trade Service Co., Ltd Sales of vehicles and parts 368,099,617.03 368,874,409.70
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Selling parts 307,433,336.52 327,870,483.51
China Changan Automobile Group Tianjin Sales Co., Ltd. Sales of vehicles and parts 216,834,369.66 134,375,668.38
China Changan Automobile Group Hefei Investment Co., Ltd. Sales of vehicles and parts 201,590,656.88 123,295,447.31
Pakistan Master Automobile Co., Ltd. Sales of the vehicle 132,463,965.62 -
Yunnan Xiangyu Auto Sales and Service Co., Ltd. Sales of vehicles and parts 102,560,313.23 103,061,523.82
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Selling parts and services 76,937,131.10 39,397,590.22
Chongqing Changan Kuayue Automobile Co., Ltd. Provide labor services 20,607,490.36 8,689,641.51
Chongqing Anfu Automobile Co., Ltd. Sales of vehicles and parts 17,553,603.64 52,601,392.41
Chongqing Tsingshan Industrial Co., Ltd. Selling parts 15,461,598.83 1,689,138.05
Changan Ford Automobile Co., Ltd. Selling parts and services 9,247,644.96 46,055,323.95
Changan Mazda automobile co. LTD Selling parts 4,903,862.68 6,202,916.90
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Selling parts 3,355,064.92 3,670,059.16
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Selling parts 1,387,972.19 267,771.57
Chongqing Changan Minsheng Logistics Co. Ltd Selling parts and services 1,264,779.06 14,366,909.02
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Selling parts 1,264,570.81 263,101.81
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Selling parts 1,161,406.50 1,133,135.13
Ya'an Wanyou Auto Sales and Service Co., Ltd. Selling parts 747,337.96 150,981.02
Luzhou Wanyou Automobile Service Co., Ltd. Selling parts 732,648.64 42,972.66
China South Industries Group Information Center Co., Ltd. Provide labor services 407,547.17 -
Changan Mazda Engine Co., Ltd. Selling parts 384,329.60 495,283.02
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Selling parts 358,849.20 28,976.04
Bazhong Wanyou Auto Sales & Service Co., Ltd. Selling parts and services 344,935.41 98,333.88
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Provide labor services 305,799.06 -
Chengdu wanyou auto Sales and service co.,Ltd Sales of the vehicle 196,660.99 954,788.63
Hainan Anxinxing Information Technology Co., Ltd Provide labor services 161,934.70 -
226
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Relate parties Nature of the transaction 2020 2019
Yunnan Xiyi Industries Co., Ltd. Selling parts 155,086.64 142,800.00
Chongqing Wanyou Automoblf Sales & Survice Corporation Sales of the vehicle 70,010.29 -
China South Industries Group Financial Leasing Co., Ltd. Provide labor services 61,981.14 -
Harbin Dongan Auto Engine Co., Ltd. Selling parts 39,300.77 6,787,846.16
Beijing Phoenix Auto Intelligence Co., Ltd. Selling parts 30,876.11 -
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. Provide labor services 24,424.78 -
Chongqing Changan Industries Group Co. Ltd. Provide labor services 16,867.92 368,958.17
Chengdu Huachuan Electric Equipment Co., Ltd. Selling parts and services 11,245.28 175,702.23
Chengdu Wanyou Filter Co., Ltd. Provide labor services 9,693.44 76,460.18
Guangxi Wanyou Auto Sales and Service Co., Ltd. Sales of vehicles and parts 8,937.17 35,978,961.30
Sichuan Jian'an Industrial Co.,Ltd. Provide labor services 5,622.64 -
Chongqing Yihong Engineering Plastic Products Co., Ltd. Provide labor services 5,622.64 -
China South Industries Group Commercial Factoring Co., Ltd. Provide labor services 822.91 -
Southern Fojiya Auto Parts Co., Ltd. Provide labor services 28.32 -
South Inter Air-conditioner Co.,Ltd. Provide labor services 14.87 123,160.99
Chongqing Lingxing Yuexiang Auto Service Co.,Ltd. Sales of vehicles and parts - 639,500,000.00
Nanjing Lingxing Yuexiang Auto Service Co.,Ltd. Sales of the vehicle - 337,067,431.56
Hangzhou Lingxing Yuexiang Auto Service Co.,Ltd. Sales of vehicles and parts - 255,800,000.00
Nanning Wanyou Auto Sales and Service Co., Ltd. Sales of the vehicle - 22,459,166.57
Changan weilai new energy automobile technology co. LTD Provide labor services - 16,395,084.70
China South Industry Group Finance Co., Ltd; Provide labor services - 1,260,010.87
Jiangling Holding Co., Ltd. Selling parts and services - 1,178,613.60
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Selling parts and services - 897,104.41
South Tianhe Chassis System Co., Ltd. Provide labor services - 246,184.37
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Selling parts - 244,592.80
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Provide labor services - 217,873.93
Chongqing Changan Construction Co., Ltd. Provide labor services - 169,692.36
Chongqing Changrong Machinery Co., Ltd. Provide labor services - 124,339.62
Chongqing Construction Tongda Industrial Co., Ltd. Selling parts and services - 124,302.65
Nanjing Chelai Travel Technology Co., Ltd. Sales of the vehicle - 50,442.48
Chongqing Shangfang Automobile Fittings Co., Ltd. Selling parts - 20,037.74
Chengdu Wanyou Trading Co., Ltd. Selling parts and services - 7,079.65
Total 7,994,190,402.62 7,071,605,320.89
The price of the Group’s sales to related parties is based on contracts agreed by all parties.
227
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
Other major related-party transactions
The price of the Group’s other major related-party transactions is based on contracts agreed by
all parties.
Expenses of integrated service charges
Related parties 2020 2019
Chongqing Changan Industries Group Co. Ltd. 121,164,234.07 137,191,301.82
Purchase of project materials
Related parties 2020 2019
Chongqing Changan Construction Co., Ltd. 159,193,193.63 279,388,409.46
Changan Reis (Chongqing) Robotic Intelligent Equipment Co.,
16,090,656.48 -
Ltd.
Chongqing Changan Industries Group Co. Ltd. 17,522.13 -
Total 175,301,372.24 279,388,409.46
Staff expenses for technical supporting
Related parties 2020 2019
Changan Ford Automobile Co., Ltd. 32,917,981.18 37,143,811.11
Changan Mazda automobile co. Ltd 23,664,359.18 25,699,005.55
Chongqing Changan New Energy Vehicles Technology Co., Ltd 23,565,604.40 -
Changan Mazda Engine Co., Ltd. 12,367,325.14 17,126,423.37
Chongqing Changan Kuayue Automobile Co., Ltd. 3,384,053.69 1,840,505.42
Chongqing Tsingshan Industrial Co., Ltd. 2,202,660.23 -
Hainan Anxinxing Information Technology Co., Ltd 602,542.27 1,894,649.63
Jiangling Holding Co., Ltd. - 1,484,296.87
Changan weilai new energy automobile technology co. Ltd - 201,715.20
Shenzhen Baoneng Automobile Co., Ltd. - 242,271.06
Total 98,704,526.09 85,632,678.21
228
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
Deferred interest income from funds
Related parties 2020 2019
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 1,603,276.97 1,200,347.55
Guizhou Wanyou Auto Sales and Service Co., Ltd. 897,380.12 788,602.82
Chengdu Wanyou Auto Trade Service Co., Ltd 237,946.02 224,380.52
Yunnan Wanyou Auto Sales and Service Co., Ltd. 223,230.97 510,690.26
Chongqing Wanyou Economic Development Co., Ltd 220,335.39 685,932.17
Wanyou Automobile Investment Co., Ltd. 90,990.28 207,022.94
China Changan Automobile Group Hefei Investment Co., Ltd. 21,053.98 -
Yunnan Xiangyu Auto Sales and Service Co., Ltd. 2,322.12 76,081.41
Guangxi Wanyou Auto Sales and Service Co., Ltd. - 191,681.80
China Changan Automobile Group Tianjin Sales Co., Ltd. - 56,330.02
Nanning Wanyou Auto Sales and Service Co., Ltd. - 41,829.76
Total 3,296,535.85 3,982,899.25
(2) Lease between related parties
As lessor
Type of leased assets 2020 2019
Chongqing Changan Industries
Group Co. Ltd. Building 6,566,747.42 6,566,747.42
Chongqing Changan New Energy
Vehicles Technology Co., Ltd Vehicle and equipment 4,197,176.80 -
Chongqing Changan Minsheng
Logistics Co. Ltd Building 2,032,149.73 1,760,438.60
Hangzhou cherry intelligent
technology co. LTD Vehicle 1,045,398.23 6,861,386.18
Chongqing Wanyou Economic
Development Co., Ltd Building 333,333.34 -
Nanjing LingHang Technology
Co., Ltd. Vehicle 301,115.04 -
Jiangling Holding Co., Ltd. Equipment - 1,889,756.40
Total 14,475,920.56 17,078,328.60
As lessee
Name of Lessor Types of leased assets 2020 2019
Chongqing Changan Minsheng
Logistics Co. Ltd Warehouse 14,087,019.20 7,887,394.19
Chongqing Changan Real
Estate Development Co., Ltd. Office building and garage - 1,152,601.90
Total 14,087,019.20 9,039,996.09
229
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(3) Deposits and loan interest from related parties
Interest income
Related party Type of 2020 2019
transaction
China South Industry Group Finance Deposit interest
Co., Ltd. income 89,163,517.54 68,795,616.81
Changan Automobile Financing Deposit Interest
Co.,Ltd income 45,267,500.00 31,600,000.00
Entrusted loan
Jiangling Holding Co., Ltd.
interest income 13,768,160.42 6,771,226.43
Total 148,199,177.96 107,166,843.24
Interest expense
Related party Type of 2020 2019
transaction
China South Industry Group Finance Loan interest
Co., Ltd. expense 13,734,247.21 9,425,222.23
(4) Other related party transaction
Item 2020 2019
Compensation of key management personal 27,805,802.00 10,460,906.41
6. Amounts due from/to related parties
Notes receivable
Related party 2020 2019
Wanyou Automobile Investment Co., Ltd. 1,504,200,000.00 2,602,280,000.00
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 13,328,173.30 9,190,280.17
Chongqing Tsingshan Industrial Co., Ltd. 734,400.00 -
Chengdu Wanyou Auto Trade Service Co., Ltd - 9,500,000.00
Chongqing Wanyou Economic Development Co., Ltd - 8,000,000.00
Guizhou Wanyou Auto Sales and Service Co., Ltd. - 3,500,000.00
Total 1,518,262,573.30 2,632,470,280.17
230
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Accounts receivable
Related party 2020 2019
Chongqing Changan New Energy Vehicles Technology Co., Ltd 1,228,074,856.50 -
Pakistan Master Automobile Co., Ltd. 82,290,540.22 -
Changan Automobile Finacing Co., Ltd. 54,885,984.97 -
Jiangling Holding Co., Ltd. 39,964,487.77 40,768,788.17
Chongqing Changan Minsheng Logistics Co. Ltd 31,376,144.03 31,516,680.23
Changan Ford Automobile Co., Ltd. 9,727,086.90 19,811,465.27
Chongqing Tsingshan Industrial Co., Ltd. 8,611,202.87 1,737,782.37
Chongqing Changan Kuayue Automobile Co., Ltd. 7,978,148.98 11,194,267.89
Changan Mazda automobile co. LTD 5,435,063.14 5,775,176.73
Yunnan Wanyou Auto Sales and Service Co., Ltd. 1,707,391.53 -
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 845,087.33 9,855,355.88
Chongqing Changan Industries Group Co. Ltd. 701,659.69 719,539.69
Hainan Anxinxing Information Technology Co., Ltd 602,542.27 555,058.16
Nanjing LingHang Technology Co., Ltd. 340,260.00 -
Changan Mazda Engine Co., Ltd. 156,000.00 5,042,050.65
Guangxi Wanyou Auto Sales and Service Co., Ltd. 997.60 997.60
Harbin Dongan Auto Engine Co., Ltd. 180.00 -
Changan weilai new energy automobile technology co. LTD - 16,596,799.90
Nanning Wanyou Auto Sales and Service Co., Ltd. - 13,398.00
Chongqing Wanyou Economic Development Co., Ltd - 50.00
Total 1,472,697,633.80 143,587,410.54
Prepayments
Related party 2020 2019
Chongqing Changan New Energy Vehicles Technology Co.,
24,243,930.61 -
Ltd
Shenzhen Baoneng Automobile Co., Ltd. - 8,826,473.38
Total 24,243,930.61 8,826,473.38
Other receivables
Related party 2020 2019
Changan Ford Automobile Co., Ltd. 124,312,677.99 124,312,677.99
Harbin Hafei Automobile Industry Group Co., Ltd. 1,500,000.00 1,500,000.00
Chongqing Changan Industries Group Co. Ltd. 1,157,446.69 1,157,446.69
Chongqing Changan Minsheng Logistics Co. Ltd 53.44 2,000.00
Changan weilai new energy automobile technology co. LTD - 28,480,000.00
Changan Mazda automobile co. LTD - 8,505,710.03
Total 126,970,178.12 163,957,834.71
Other current assets
Related parties 2020 2019
Jiangling Holding Co., Ltd. 300,000,000.00 300,000,000.00
231
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Notes payable
Related parties 2020 2019
Chongqing Tsingshan Industrial Co., Ltd. 916,880,000.00 2,340,000.00
Harbin Dongan Auto Engine Co., Ltd. 544,530,000.00 456,350,000.00
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 352,810,000.00 215,280,000.00
Chongqing Changan Minsheng Logistics Co. Ltd 324,235,180.29 208,474,669.94
Chongqing Nexteer Steering System Co.,Ltd. 312,130,000.00 74,380,000.00
Chongqing Changan New Energy Vehicles Technology Co., 123,346,500.00 -
Ltd
Dajiang Yapp Automotive Systems Co., Ltd. 114,770,000.00 -
South Inter Air-conditioner Co.,Ltd. 94,190,000.00 23,620,000.00
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 65,391,200.00 53,810,000.00
Chongqing Hanon Jianshe Automotive Thermal Systems Co., 56,980,000.00 -
Ltd.
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 53,170,000.00 33,330,000.00
Hunan Tyen Machinery Co., Ltd. 51,370,000.00 -
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 42,045,906.61 20,130,000.00
Chongqing Changan Construction Co., Ltd. 38,994,143.00 121,867,838.20
Hubei Huazhong Marelli Automobile Lighting Co., 31,870,000.00 20,220,000.00
Southern Fojiya Auto Parts Co., Ltd. 30,780,000.00 10,430,000.00
Chengdu Wanyou Filter Co., Ltd. 28,600,000.00 21,280,000.00
Chengdu Ningjiang Zhaohe Automobile Components Co., 28,230,000.00 33,410,000.00
Ltd. South Industries Group Commercial Factoring Co., Ltd.
China 27,249,816.78 -
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 26,147,000.00 10,780,000.00
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. 23,860,000.00 -
Chongqing Shangfang Automobile Fittings Co., Ltd. 18,890,000.00 4,290,000.00
Sichuan Jian'an Industrial Co.,Ltd. 12,140,000.00 9,040,000.00
Tenneco Lingchuan (Chongqing) Exhaust System Company 11,930,000.00 -
Ltd.
Chongqing Construction Tongda Industrial Co., Ltd. 10,900,000.00 1,830,000.00
Chongqing Dajiang Guoli Precision Machinery 8,353,982.41 -
Manufacturing Co.,Huaxi Optical & Precision Machinery Co.,
Chengdu Jialing Ltd. 5,000,000.00 5,990,000.00
Ltd. Reis (Chongqing) Robotic Intelligent Equipment 3,786,991.22 -
Co., Ltd. Yihong Engineering Plastic Products Co., Ltd.
Chongqing 1,680,000.00 -
Chengdu Huachuan Electric Equipment Co., Ltd. 1,640,000.00 5,250,000.00
Chongqing Dajiang Jiexin Forging Co., Ltd. 1,600,000.00 990,000.00
South Tianhe Chassis System Co., Ltd. 1,499,287.93 -
Chongqing Changan Industries Group Co. Ltd. 300,927.73 -
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 300,000.00 -
Chongqing Wanyou Economic Development Co., Ltd - 85,000,000.00
Chengdu Lingchuan Special Industry Co., Ltd. - 11,750,000.00
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 6,530,000.00
Total 3,365,600,935.97 1,436,372,508.14
232
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Accounts payable
Related parties 2020 2019
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd 987,249,301.69 -
Chongqing Tsingshan Industrial Co., Ltd. 368,373,870.72 394,961,436.10
Chongqing Nexteer Steering System Co.,Ltd. 364,038,471.33 275,441,045.49
Hubei Huazhong Marelli Automobile Lighting Co., 271,361,040.92 124,726,255.34
Harbin Dongan Auto Engine Co., Ltd. 234,873,913.36 203,956,811.46
South Tianhe Chassis System Co., Ltd. 202,699,198.08 113,131,244.68
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 191,107,786.37 228,154,563.74
Southern Fojiya Auto Parts Co., Ltd. 152,146,995.28 90,040,708.53
Dajiang Yapp Automotive Systems Co., Ltd. 136,564,042.17 -
Chongqing Wanyou Economic Development Co., Ltd 127,374,868.86 75,873,758.78
South Inter Air-conditioner Co.,Ltd. 114,805,252.76 166,469,317.60
Chongqing Hanon Jianshe Automotive Thermal Systems Co.,
Ltd. 53,945,823.59 -
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. 53,653,386.24 -
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 51,429,508.22 43,490,517.76
Hunan Tyen Machinery Co., Ltd. 50,453,258.24 -
Sichuan Jian'an Industrial Co.,Ltd. 50,389,382.79 92,109,316.98
Chongqing Changrong Machinery Co., Ltd. 48,567,677.78 34,631,661.73
Beijing Phoenix Auto Intelligence Co., Ltd. 47,721,286.97 -
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 43,541,607.75 36,717,236.76
Jiangling Holding Co., Ltd. 37,532,873.73 54,252,872.36
Chengdu Wanyou Filter Co., Ltd. 30,381,478.06 14,735,390.09
Chengdu Ningjiang Zhaohe Automobile Components Co.,
Ltd. 29,379,141.06 49,157,712.35
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 23,952,436.29 16,125,402.98
Lear Changan (Chongqing) Automotive System Co., Ltd. 21,514,578.32 -
Chongqing Construction Tongda Industrial Co., Ltd. 18,670,315.51 13,392,905.91
Chongqing Shangfang Automobile Fittings Co., Ltd. 17,656,884.93 9,623,137.04
Chongqing Lingchuan Auto Parts Manufacturing Technology
Co., Ltd. 16,059,572.01 -
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 13,521,751.49 9,726,316.79
Chongqing Dajiang Guoli Precision Machinery
Manufacturing Co., Ltd. 10,018,647.24 -
Chengdu Huachuan Electric Equipment Co., Ltd. 8,868,392.58 37,881,398.09
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 7,442,927.94 2,314,165.15
Chongqing Changan Minsheng Logistics Co. Ltd 7,310,129.55 77,014,716.44
Chongqing Qingshan Transmission Sales Co., Ltd. 6,290,936.01 6,000,654.43
Chongqing Changan Kuayue Automobile Co., Ltd. 5,293,918.44 47,749.88
Tenneco Lingchuan (Chongqing) Exhaust System Company
Ltd. 4,232,993.94 -
Changan Ford Automobile Co., Ltd. 4,032,752.22 5,890.05
Chongqing Dajiang Tongyang Plastics Co., Ltd. 3,947,873.64 -
Related parties 2020 2019
Chengdu Jialing Huaxi Optical & Precision Machinery Co., 1,891,153.38 2,296,210.05
233
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Ltd.
Chongqing Yihong Engineering Plastic Products Co., Ltd. 1,864,973.67 2,483,796.69
United Automotive Electronis Systems (Chongqing) Co., Ltd. 1,505,015.86 -
Yunnan Xiyi Industries Co., Ltd. 1,423,406.29 10,260,364.91
Chongqing Dajiang Jiexin Forging Co., Ltd. 1,313,966.45 407,750.93
Chongqing Changan Industries Group Co. Ltd. 1,014,734.86 1,091,699.47
Harbin Hafei Automobile Industry Group Co.,Ltd. 949,114.25 661,117.68
Chongqing Jianshe Industry (Group) Co., Ltd. 671,241.27 -
Hangzhou cherry intelligent technology co. LTD 655,287.41 10,300.00
Chengdu Lingchuan Special Industry Co., Ltd. 620,006.72 11,517,508.37
Chongqing Automobile Air-conditioner Co., Ltd. 205,041.51 205,041.51
Chongqing Jialing Yimin Special Equipment Co., Ltd. 104,496.50 104,496.50
Chengdu Guangming Tianzhong Environmental Protection
Technology Co., Ltd 83,175.03 83,175.03
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 56,251.08 4,267,143.49
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. 38,422.14 44,233.62
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. 37,211.40 -
Chongqing Changfeng Jiquan Machinery Co., Ltd. 34,113.46 771,021.74
Shenzhen Baoneng Automobile Co., Ltd. - 111,598,972.21
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. - 6,129.88
Total 3,828,871,887.36 2,315,791,148.59
234
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Contract liabilities/Advances from customers
Related parties 2020 2019
Chongqing Wanyou Economic Development Co., Ltd 136,922,319.01 142,137,256.41
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 72,155,192.54 65,138,573.75
Guizhou Wanyou Auto Sales and Service Co., Ltd. 58,030,319.57 52,269,285.08
Chengdu Wanyou Auto Trade Service Co., Ltd 35,971,849.65 39,526,387.91
Wanyou Automobile Investment Co., Ltd. 31,469,102.13 69,383,313.74
China Changan Automobile Group Tianjin Sales Co., Ltd. 27,823,192.54 2,144,856.26
China Changan Automobile Group Hefei Investment Co., 26,160,180.06 4,033,352.74
Ltd.
Chongqing Wanyou Zunda Automobile Sales & Service Co., 8,387,067.42 755,716.55
Ltd.
Jiangling Holding Co., Ltd. 6,854,200.00 6,854,200.00
Pakistan Master Automobile Co., Ltd. 6,141,961.92 -
Yunnan Wanyou Auto Sales and Service Co., Ltd. 4,100,481.79 42,896,658.83
Changan Mazda Engine Co., Ltd. 3,232,425.34 -
Yunnan Xiangyu Auto Sales and Service Co., Ltd. 1,402,879.67 5,542,733.67
Harbin Hafei Automobile Industry Group Co.,Ltd. 670,500.00 670,500.00
Chongqing Anfu Automobile Co., Ltd. 492,268.00 1,507,840.00
Bazhong Wanyou Auto Sales & Service Co., Ltd. 50,426.48 50,000.00
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. 48,381.98 -
Hainan Anxinxing Information Technology Co., Ltd 40,775.60 -
Chongqing Hanon Jianshe Automotive Thermal Systems 15,752.76 -
Co., Ltd. Wanyou Auto Sales & Service Co., Ltd.
Panzhihua 14,218.43 -
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. 13,806.65 -
Chongqing Shangfang Automobile Fittings Co., Ltd. 3,980.00 3,980.00
China South Industries Group Commercial Factoring Co., 3,639.52 -
Ltd.
Luzhou Wanyou Automobile Service Co., Ltd. 2.67 -
Chongqing Tsingshan Industrial Co., Ltd. 1.57 -
Chengdu wanyou auto Sales and service co.,Ltd - 1,489,422.47
Guangxi Wanyou Auto Sales and Service Co., Ltd. - 1,405,317.17
Changan Automobile Finacing Co., Ltd. - 41,300.00
Chongqing Changan Minsheng Logistics Co. Ltd - 259.00
Total 420,004,925.30 435,850,953.58
235
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Other payables
Related parties 2020 2019
Chongqing Changan Kuayue Automobile Co., Ltd. 160,487,855.00 64,412,855.00
Chongqing Changan Minsheng Logistics Co. Ltd 121,088,638.71 191,519,531.45
Chongqing Changan New Energy Vehicles Technology Co., 36,316,848.55 -
Ltd
Changan Reis (Chongqing) Robotic Intelligent Equipment 12,128,160.74 -
Co., Ltd. Tsingshan Industrial Co., Ltd.
Chongqing 8,634,212.55 -
Chongqing Changan Construction Co., Ltd. 6,988,672.23 2,356,505.24
Changan Ford Automobile Co., Ltd. 5,303,266.52 1,461,694.00
United Automotive Electronis Systems (Chongqing) Co., 1,870,640.08 -
Ltd.
Chongqing Changan Industries Group Co. Ltd. 1,812,834.47 4,770,656.96
Chongqing Changan Property Management Co., Ltd. 1,466,516.00 1,655,478.59
Chengdu Lingchuan Special Industry Co., Ltd. 791,056.30 26,343.16
Chongqing Dajiang Guoli Precision Machinery 624,370.54 -
Manufacturing Co., Ltd.
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. 468,761.43 -
Chengdu Wanyou Filter Co., Ltd. 452,863.89 121,303.84
Harbin Dongan Automotive Engine Manufacturing Co., 381,252.08 304,924.09
Ltd.
Chongqing Wanyou Economic Development Co., Ltd 269,950.17 415,466.55
Southern Fojiya Auto Parts Co., Ltd. 260,755.41 -
Chengdu Huachuan Electric Equipment Co., Ltd. 253,402.50 51,037.08
Chengdu Wanyou Auto Trade Service Co., Ltd 208,688.90 58,295.80
South Tianhe Chassis System Co., Ltd. 206,361.95 65,122.43
South Inter Air-conditioner Co.,Ltd. 192,165.58 190,324.96
Chongqing Wanyou Zunda Automobile Sales & Service Co., 150,000.00 -
Ltd.
Chongqing Shangfang Automobile Fittings Co., Ltd. 109,671.82 -
Chongqing Anfu Automobile Co., Ltd. 100,000.00 300,000.00
Changan Automobile Company Limited 90,000.00 -
Chongqing Changrong Machinery Co., Ltd. 84,901.15 299,999.63
Chongqing Nexteer Steering System Co.,Ltd. 79,552.00 307,910.00
Yunnan Wanyou Auto Sales and Service Co., Ltd. 56,370.87 108,223.30
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 50,000.00 50,000.00
Sichuan Jian'an Industrial Co.,Ltd. 49,913.90 579,179.33
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 40,594.89 8,324.53
Chongqing Hanon Jianshe Automotive Thermal Systems 27,387.18 -
Co., Ltd. Wanyou Auto Sales & Service Co., Ltd.
Panzhihua 20,360.82 16,219.40
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 13,560.00 10,951.72
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 10,975.69 -
Guizhou Wanyou Auto Sales and Service Co., Ltd. 9,011.83 5,016.48
Dajiang Yapp Automotive Systems Co., Ltd. 8,588.36 -
Yunnan Xiyi Industries Co., Ltd. 5,306.34 -
Ya'an Wanyou Auto Sales and Service Co., Ltd. 4,927.58 12,267.46
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 4,079.47 -
Luzhou Wanyou Automobile Service Co., Ltd. 4,050.22 3,770.68
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. 2,539.14 5,889.92
China Changan Automobile Group Tianjin Sales Co., Ltd. 1,178.52 100,000.00
Chengdu Wanyou Trading Co., Ltd. 46.00 1,176.14
Hubei Huazhong Marelli Automobile Lighting Co., - 389,785.41
Changan Mazda Engine Co., Ltd. - 144,115.79
236
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Related parties 2020 2019
Nanning Wanyou Auto Sales and Service Co., Ltd. - 120,520.60
Harbin Dongan Auto Engine Co., Ltd. - 67,239.90
Guangxi Wanyou Auto Sales and Service Co., Ltd. - 48,424.07
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. - 20,493.00
Bazhong Wanyou Auto Sales & Service Co., Ltd. - 2,683.74
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 800.00
Total 361,130,289.38 270,012,530.25
237
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
7. Cash deposited in related party
Related party 2020 2019
China South Industry Group Finance Co., Ltd. 10,772,951,856.71 5,352,685,473.98
Changan Automobile Financing Co.,Ltd 7,500,000,000.00 1,200,000,000.00
Total 18,272,951,856.71 6,552,685,473.98
In 2020, deposit rates in related party are 0.35% to 3.915%, deposit terms are 0 to 12 months. (in
2019, deposit rate was 0.35% to 3.915%, terms are 0 to 12 months.)
8. Loans from related parties
Short-term loans
2020
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry
Group Finance Co.,
Ltd. Credit loan 150,000,000.00 640,000,000.00 260,000,000.00 530,000,000.00
China South Industry
Group Finance Co.,
Ltd. Mortgage loan 50,000,000.00 48,000,000.00 50,000,000.00 48,000,000.00
China South
Industries Group
Corporation Entrusted loan 29,580,000.00 29,580,000.00 59,160,000.00 -
Total 229,580,000.00 717,580,000.00 369,160,000.00 578,000,000.00
2019
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry
Group Finance Co.,
Ltd. Credit loan 150,000,000.00 150,000,000.00 150,000,000.00 150,000,000.00
China South Industry
Group Finance Co.,
Ltd. Mortgage loan 40,000,000.00 70,000,000.00 60,000,000.00 50,000,000.00
China South
Industries Group
Corporation
Entrusted loan - 29,580,000.00 - 29,580,000.00
Total 190,000,000.00 249,580,000.00 210,000,000.00 229,580,000.00
Refer to Note V 20 for the details of the interest rates of the short-term loan.
Long-term loans
2020
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry
Group Finance Co.,
Ltd. Credit loan 55,300,000.00 - - 55,300,000.00
2019
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry
Group Finance Co.,
Ltd. Credit loan - 55,300,000.00 - 55,300,000.00
Refer to Note V 29 for the details of the interest rates of the long-term loan.
238
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
XI Contingencies and commitments
1. Commitments
Contracted, but not provided for
Item 2020 2019
Capital commitments 6,528,056,670.16 10,095,165,498.37
Investment commitments 649,060,000.00 500,000,000.00
2. Contingencies
As at 31 December 2020, no material contingencies needed to be disclosed.
239
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
XII Events after the balance sheet date
1. The dividends after balance sheet date
Profits or dividends to be allocated Refer to Note V 38.
2. Other events after the balance sheet date
In February 2021, with the approval of the board of directors and the interim general meeting of
shareholders, the company granted 76,195,400 restricted A-shares at a price of 6.66 yuan to 1,247
directors, managers and core technology (business) key personnel on February 22, 2021. After the
completion of this grant, the total number of shares of the company has increased to
5,439,591,574 shares. The shareholding ratio of China South Industries Group Corporation, the
company’s ultimate holding company has dropped from 44.17% to 43.55%. But China South
Industries Group Corporation and its subsidiaries still hold 2,368,928,900 shares of the company
and remain the actual controller of the company.
In March 2021, the company's actual controller, China South Industries Group Corporation,
transferred its 200 million A-share tradable shares of the company to its wholly-owned subsidiary,
Chongqing Nanfang Industrial Equity Investment Fund Partnership(L.P.), for free. After the
completion of the free transfer of shares, the number of shares and shareholding ratio of the
company held by China South Industries Group and its subsidiaries will remain unchanged, and
China South Industries Group will remain the actual controller of the company.
In April 2021, the board of directors of the company approved the proposal of equity participant
on the establishment of Chongqing Smart Automobile Equity Investment Partnership (L.P.), and
hope to develop new automotive energy and intelligent network business with the help of the
industry fund. The company intends to invest RMB 250 million as a limited partner, accounting for
49.80%. As of the date of this report, the above investments have not been completed.
XIII Other important event
1. Lease arrangements
According to the lease contracts signed with the lessor, the minimum lease payments under non-
cancellable leases are as follows:
Item 2020 2019
Less than 1 year (including 1 year) 66,292,964.80 19,806,931.61
1 to 2 years (including 2 years) 16,899,911.68 1,265,530.79
2 to 3 years (including 3 years) 15,032,931.97 219,481.62
Over 3 years 12,117,770.89 18,290.13
Total 110,343,579.34 21,310,234.15
240
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Segment report
The Group identifies operating segments based on the internal organization structure,
managerial requirements and internal reporting system, and identifies reportable segments
based on operating segments and discloses segment information by operating segment.
An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by the Company’s management to make
decisions about resources to be allocated to the segment and assess its performance; and
(3) the Group can obtain relevant accounting information such as its financial position,
operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions, they
can be aggregated into a single operating segment.
The revenue and profit of the Group mainly consist of the automobile manufacturing and
domestic sales. The Group’s principal assets are in China. The operating performance of the Group
has been evaluated as a whole by the management. So the segment report has not been prepared
for this year.
241
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
XIV Notes to the Company’s financial statements
1. Accounts Receivable
(1) Aging analysis of accounts receivable as at 31 December 2020 is as follows:
Aging 2020 2019
Within 1 year 3,773,918,017.07 3,555,684,864.42
1 to 2 years 554,825,636.86 822,210,403.02
2 to 3 years 532,765,988.27 482,665,541.27
Over 3 years 696,515,785.09 256,419,059.60
Total 5,558,025,427.29 5,116,979,868.31
Provision (93,484,241.66) (22,709,502.59)
5,464,541,185.63 5,094,270,365.72
(2) Movements of provision for accounts receivable are as follows:
Reduction Ending Balance
Beginning Addition
Resale
2020 22,709,502.59 70,774,739.07 - 93,484,241.66
2019 15,559,782.05 7,149,720.54 - 22,709,502.59
(3) Analysis of the accounts receivable by category as at 31 December 2020 is as follows:
2020
Item Balance Provision
Amount % Amount %
Individually analyzed provision 5,428,359,709.78 97.67 77,639,076.15 1.43
Provision for bad debts based
on credit risk characteristics 129,665,717.51 2.33 15,845,165.51 12.22
Total 5,558,025,427.29 100.00 93,484,241.66 1.68
2019
Item Balance Provision
Amount % Amount %
Individually analyzed provision 4,991,086,298.96 97.54 - -
Provision for bad debts based
on credit risk characteristics 125,893,569.35 2.46 22,709,502.59 18.04
Total 5,116,979,868.31 100.00 22,709,502.59 0.44
1. Accounts Receivable (continued)
242
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
(4) Accounts receivable was analyzed for provision by expected credit loss model:
2020 2019
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1
year 90,538,481.62 0.40 361,940.43 90,224,930.90 2.49 2,248,850.09
1 to 2 years 3,695,660.30 4.14 152,979.49 26.00 22.04 5.73
2 to 3 years 26.00 7.15 1.86 18,843,871.50 32.27 6,080,101.72
Over 3
years 35,431,549.59 43.27 15,330,243.73 16,824,740.95 85.47 14,380,545.05
Total 129,665,717.51 12.22 15,845,165.51 125,893,569.35 18.04 22,709,502.59
(5) As at 31 December 2020, accounts receivable from top 5 clients amounted to
RMB4,296,350,189.29, accounted for 77.30% of the total amount (2019 ：
RMB4,011,467,403.94, accounted for 78.40% of the total amount).
(6) There are no accounts receivable derecognized due to transference of financial assets
during 2020 (2019: Nil).
243
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Other receivables
(1) Aging analysis of other receivables as at 31 December 2020 is as follows:
Aging 2020 2019
Within 1 year 1,853,275,788.49 1,082,612,634.77
1 to 2 years 4,330,562.67 1,239,218,612.29
2 to 3 years 125,479,863.46 366,133,362.21
Over 3 years 14,684,849.00 24,134,145.47
Total 1,997,771,063.62 2,712,098,754.74
Provision (7,154,284.79) (114,784,410.34)
1,990,616,778.83 2,597,314,344.40
(2) Analysis of other receivables by nature is as follows:
Nature 2020 2019
Internal transactions 1,200,000,000.00 640,557,716.20
Energy-saving and new energy
subsidy 404,133,442.00 1,659,611,198.60
Prepaid equity investment 95,380,000.00 28,480,000.00
Pretty cash 15,906,758.91 36,352,884.22
Disposal income of assets 3,984,842.15 23,424,046.17
Others 271,211,735.77 208,888,499.21
Total 1,990,616,778.83 2,597,314,344.40
(3) In 2020, the changes in the provision for bad debts for other receivables based on the 12-
month expected credit loss and the expected credit loss for the entire duration are as
follows
2020
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired financia
l assets (Lifetime ECLs
)
Opening balance 291,182.01 111,643,227.46 2,850,000.87 114,784,410.34
Impact of applying the new revenue
standards - (111,066,213.00) - (111,066,213.00)
Balance at the beginning of the year
adjusted in accordance with the new
revenue standards 291,182.01 577,014.46 2,850,000.87 3,718,197.34
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - (534,931.90) 534,931.90 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Provision - - 3,458,000.00 3,458,000.00
Reversal (21,912.55) - - (21,912.55)
Transfer - - - -
Write-off - - - -
Other changes - - - -
Closing balance 269,269.46 42,082.56 6,842,932.77 7,154,284.79
244
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
2. Other receivables (continued)
(3) In 2020, the changes in the provision for bad debts for other receivables based on the 12-
month expected credit loss and the expected credit loss for the entire duration are as
follows: (continued)
2019
Stage 1 Stage 2 Stage 3 Total
12-month ECLs Lifetime ECLs Credit-impaired
financial assets
(Lifetime ECLs)
Opening balance 155,223.55 348,425.91 99,781.94 603,431.40
Changes due to
the opening balance
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - (348,425.91) 348,425.91 -
- Turn back Stage 2 - - - -
- Turn back Stage 1 - - - -
Provision 135,958.46 111,643,227.46 2,501,574.96 114,280,760.88
Reversal - - - -
Transfer - - (99,781.94) (99,781.94)
Write-off - - - -
Closing balance 291,182.01 111,643,227.46 2,850,000.87 114,784,410.34
(4) As at 31 December 2020, top five debtors of other receivables are as follows:
Proportion of
Ending balance of
Debtors Amount Aging total other
provision
receivables (%)
First 1,007,240,280.41 Within 1year 50.42 -
Second 404,133,442.00 Within 1year 20.23 -
Third 283,228,629.27 Within 1year 14.18 -
Forth 124,312,677.99 2-3years 6.22 -
Fifth 95,380,000.00 Within 1year 4.77 -
Total 1,914,295,029.67 95.82 -
(5) As of December 31, 2020, the company had no other receivables that were derecognized as
a transfer of financial assets (December 31, 2019: Nil).
245
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Long-term investments
2020
Investment
Other Dividend of cash Provision for Ending Balance of Ending Balance
Investee Opening Balance Addition income/loss under Other deduction
addition declared impairment book value of provision
equity method
Joint ventures
Changan Ford Automobile Co., Ltd. 1,782,823,327.91 - - 8,710,167.26 - - - 1,791,533,495.17 -
Changan Mazda Automobile Co., Ltd. 2,177,010,905.02 - - 723,987,717.26 (905,000,000.00) - - 1,995,998,622.28 -
Changan Mazda Engine Co., Ltd. 830,272,340.69 - - 39,596,915.75 (37,000,000.00) - - 832,869,256.44 -
Changan PSA Automobiles Co., Ltd. 346,038,983.87 - - (114,234,986.00) - (231,803,997.87) - - -
Changan Weilai New Energy Co., Ltd. (12,871,719.42) - - (18,666,611.81) - 31,538,331.23 - - -
Nanchang Jiangling Holding Co., Ltd. 2,081,815,165.31 - - (536,007,531.47) - - - 1,545,807,633.84 -
Subtotal 7,205,089,003.38 - - 103,385,670.99 (942,000,000.00) (200,265,666.64) - 6,166,209,007.73 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 192,005,274.10 - - 45,730,860.11 - - - 237,736,134.21 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. - - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd. - - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,195,040,654.44 - - 207,337,580.14 (64,528,859.83) - - 2,337,849,374.75 -
Hainan Anxinxing Information Technology Co., Ltd. 3,560,384.10 - - (1,244,331.18) - - - 2,316,052.92 -
Nanjing Chelai Travel Technology Co., Ltd. 1,474,945.09 - - (282,339.82) - - - 1,192,605.27 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,152,447.20 - - 221,362.27 - - - 25,373,809.47
Nanjing Leading Equity Investment Partnership (Limited
Partnership) 935,218,323.32 - - 64,418,284.31 - - - 999,636,607.63 -
Nanjing Leading Equity Investment Management Co., Ltd. 1,445,415.69 - - (183,235.30) - - - 1,262,180.39 -
Jiangling Holding Co., Ltd. 398,992,953.62 - - (197,256,309.37) - - - 201,736,644.25 -
Chongqing Changan New Energy Vehicles Technology Co., Ltd. - 1,610,180,234.77 - (568,023,627.72) - - - 1,042,156,607.05 -
Zhongqi Chuangzhi Technology Co., Ltd. - 100,000,000.00 - - - - - 100,000,000.00 -
Subtotal 3,752,890,397.56 1,710,180,234.77 - (449,281,756.56) (64,528,859.83) - - 4,949,260,015.94 -
246
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Subsidiaries
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 - - - - - - 422,533,259.00 -
Hebei Changan Automobile Co., Ltd. 438,223,236.00 12,249,709.00 - - - (450,472,945.00) - - -
Chongqing Changan Automobile International Sales Service
Co., Ltd. 13,068,581.00 - - - - - - 13,068,581.00 -
Chongqing Changan Auto Customer Service Co., Ltd. 29,700,000.00 - - - - - - 29,700,000.00 -
Chongqing Changan Connected Car Technology Co., Ltd. 88,500,000.00 - - - - - - 88,500,000.00 -
Chongqing Changan Special Purpose Vehicle Co., Ltd. 2,500,000.00 - - - - - - 2,500,000.00 -
Chongqing Changan European Design Center Co., Ltd. 155,469,913.50 - - - - - - 155,469,913.50 -
Chongqing Changan New Energy Automobile Co., Ltd. - - - - - - - - (49,194,195.00)
Changan Automobile UK R & D Center Co., Ltd. 250,093,850.95 - - - - - - 250,093,850.95 -
Beijing Changan Automotive Engineering Technology Research
Co., Ltd. 1,000,000.00 - - - - - - 1,000,000.00 -
Changan Japan Design Center Co., Ltd. 1,396,370.15 - - - - - - 1,396,370.15 -
Changan American R & D Center Co., Ltd. 10,243,460.00 - - - - - - 10,243,460.00 -
Baoding Changan Bus Manufacturing Co., Ltd. 176,002,613.18 - - - - (176,002,613.18) - - -
Hefei Changan Automobile Co., Ltd. 35,367,765.23 1,500,000,000.00 - - - - - 1,535,367,765.23 -
Changan Automobile Russia Co., Ltd. 251,242,589.15 - - - - - - 251,242,589.15 -
Changan Brazil Holdings Limited 2,584,556.97 - - - - - - 2,584,556.97 -
Changan Automobile Investment (Shenzhen) Co., Ltd. 184,800,000.00 50,448,871.00 - - - - - 235,248,871.00 -
Nanjing Changan New Energy Automobile Sales Service Co.,
Ltd. 50,000,000.00 - - - - - - 50,000,000.00 -
Fuzhou Fuqing Changan New Energy Automobile Sales Co.,
Ltd. 2,000,000.00 - - - - - - 2,000,000.00 -
Xiamen Changan New Energy Automobile Sales Service Co.,
Ltd. 2,000,000.00 - - - - - - 2,000,000.00 -
Guangzhou Changan New Energy Automobile Sales Service
Co., Ltd. 4,000,000.00 - - - - - - 4,000,000.00 -
Chongqing Changan New Energy Automobile Technology Co.,
Ltd. 1,238,742,571.54 - - - - (1,238,742,571.54) - - -
Chongqing Lingyao Automobile Co., Ltd. (note 1) 594,949,059.30 - - - - - - 594,949,059.30 -
Zhenjiang Demao Hairun Equity Investment Fund Partnership
(Limited Partnership) 1,129,922,044.91 - - - - (1,129,922,044.91) - - -
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00 - - - - - - 10,000,000.00 -
Chongqing Changan Kaicheng Automobile Technology Co., Ltd - 976,475,558.18 - - - - - 976,475,558.18 -
Chongqing Changan Automobile Software Technology Co., Ltd. - 99,000,000.00 - - - - - 99,000,000.00 -
Changan Weilai New Energy Co., Ltd. - - 58,461,669.77 - - - - 58,461,669.77 -
Subtotal 5,094,339,870.88 2,638,174,138.18 58,461,669.77 - - (2,995,140,174.63) - 4,795,835,504.20 (49,194,195.00)
Total 16,052,319,271.82 4,348,354,372.95 58,461,669.77 (345,896,085.57) (1,006,528,859.83) (3,195,405,841.27) - 15,911,304,527.87 (49,194,195.00)
Note 1: Changan Suzuki Automobile Co., Ltd. was renamed Chongqing Lingyao Automobile Co., Ltd. in December 2020.
247
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
3. Long-term investments (continued)
2019
Investment Other
Dividend of cash Provision for Ending Balance of Ending Balance of
Investee Opening Balance Addition income/loss under comprehensive Other deduction
declared impairment book value provision
equity method income
Joint ventures
Jiangling Holding Co., Ltd. 2,493,754,915.53 - (221,583,996.94) - - (2,272,170,918.59) - - -
Changan Ford Automobile Co., Ltd. 3,709,784,507.11 - (1,926,961,179.20) - - - - 1,782,823,327.91 -
Changan Mazda Automobile Co., Ltd. 2,472,626,663.41 - 929,384,241.61 - (1,225,000,000.00) - - 2,177,010,905.02 -
Changan Mazda Engine Co., Ltd. 827,803,757.96 - 39,968,582.73 - (37,500,000.00) - - 830,272,340.69 -
Changan PSA
Automobiles Co., Ltd. 1,456,519,068.74 - (1,110,480,084.87) - - - - 346,038,983.87 -
Changan Weilai New Energy Automobile Technology Co., Ltd. 44,065,513.91 - (56,937,233.33) - - - - (12,871,719.42) -
Nanchang Jiangling Investment Co., Ltd - 2,063,742,852.91 18,072,312.40 - - - - 2,081,815,165.31 -
Subtotal 11,004,554,426.66 2,063,742,852.91 (2,328,537,357.60) - (1,262,500,000.00) (2,272,170,918.59) - 7,205,089,003.38 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 116,588,234.97 - 75,417,039.13 - - - - 192,005,274.10 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. - - - - - - - -
Beijing Fangan Xinyue Taxi Co., Ltd. - - - - - - - - -
Changan Auto Finance Co., Ltd. 2,030,617,157.41 - 239,321,406.72 - (74,897,909.69) 2,195,040,654.44 -
Hainan Anxinxing Information Technology Co., Ltd. 5,536,555.21 - (1,976,171.11) - - - - 3,560,384.10 -
Nanjing Chelai Travel Technology Co., Ltd. 1,813,616.14 - (338,671.05) - - - - 1,474,945.09 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,000,000.00 - 152,447.20 - - - - 25,152,447.20 -
Nanjing Leading Equity Investment Partnership - 858,267,717.00 76,950,606.32 - - - - 935,218,323.32 -
Nenjing Leading Equity Investment Management Co., Ltd - 1,500,000.00 (54,584.31) - - - - 1,445,415.69 -
Jiangling Holding Co., Ltd - 208,428,065.68 (142,252,166.55) 332,817,054.49 - - - 398,992,953.62 -
Subtotal 2,179,555,563.73 1,068,195,782.68 247,219,906.35 332,817,054.49 (74,897,909.69) - - 3,752,890,397.56 -
248
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
Subsidiaries
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 - - - - - - 422,533,259.00 -
Hebei Changan Automobile Co., Ltd. 438,223,236.00 - - - - - - 438,223,236.00 -
Chongqing Changan Automobile International Sales Service Co.,
Ltd. 13,068,581.00 - - - - - - 13,068,581.00 -
Chongqing Changan Auto Customer Service Co., Ltd. 29,700,000.00 - - - - - - 29,700,000.00 -
Chongqing Changan Connected Car Technology Co., Ltd. 88,500,000.00 - - - - - - 88,500,000.00 -
Chongqing Changan Special Purpose Vehicle Co., Ltd. 2,500,000.00 - - - - - - 2,500,000.00 -
Chongqing Changan European Design Center Co., Ltd. 155,469,913.50 - - - - - - 155,469,913.50 -
Chongqing Changan New Energy Automobile Co., Ltd. 49,194,195.00 - - - - - (49,194,195.00) - (49,194,195.00)
Changan Automobile UK R & D Center Co., Ltd. 236,387,395.40 13,706,455.55 - - - - - 250,093,850.95 -
Beijing Changan Automotive Engineering Technology Research
Co., Ltd. 1,000,000.00 - - - - - - 1,000,000.00 -
Changan Japan Design Center Co., Ltd. 1,396,370.15 - - - - - - 1,396,370.15 -
Changan American R & D Center Co., Ltd. 10,243,460.00 - - - - - - 10,243,460.00 -
Baoding Changan Bus Manufacturing Co., Ltd. 176,002,613.18 - - - - - - 176,002,613.18 -
Hefei Changan Automobile Co., Ltd. 35,367,765.23 - - - - - - 35,367,765.23 -
Changan Automobile Russia Co., Ltd. 1,242,589.15 250,000,000.00 - - - - - 251,242,589.15 -
Changan Brazil Holdings Limited 2,584,556.97 - - - - - - 2,584,556.97 -
Changan Automobile Investment (Shenzhen) Co., Ltd. 148,000,000.00 36,800,000.00 - - - - - 184,800,000.00 -
Nanjing Changan New Energy Automobile Sales Service Co.,
Ltd. 50,000,000.00 - - - - - - 50,000,000.00 -
Fuzhou Fuqing Changan New Energy Automobile Sales Co., Ltd. 2,000,000.00 - - - - - - 2,000,000.00 -
Xiamen Changan New Energy Automobile Sales Service Co., Ltd. 2,000,000.00 - - - - - - 2,000,000.00 -
Guangzhou Changan New Energy Automobile Sales Service Co.,
Ltd. 4,000,000.00 - - - - - - 4,000,000.00 -
Chongqing Changan New Energy Automobile Technology Co.,
Ltd. 1,238,742,571.54 - - - - - - 1,238,742,571.54 -
Chongqing Lingyao Automobile Co., Ltd 594,949,059.30 - - - - - - 594,949,059.30 -
Zhenjiang Demao Hairun Equity Investment Fund Partnership
(Limited Partnership) 1,129,922,044.91 - - - - - - 1,129,922,044.91 -
Chongqing Chehemei Technology Co., Ltd. - 10,000,000.00 - - - - - 10,000,000.00 -
Subtotal 4,833,027,610.33 310,506,455.55 - - - - (49,194,195.00) 5,094,339,870.88 (49,194,195.00)
Total 18,017,137,600.72 3,442,445,091.14 (2,081,317,451.25) 332,817,054.49 (1,337,397,909.69) (2,272,170,918.59) (49,194,195.00) 16,052,319,271.82 (49,194,195.00)
249
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
4. Operating revenue and cost
(1) Operating revenue, operating cost
2020 2019
Item
Revenue Cost Revenue Cost
Primary
Operation 75,931,849,406.50 68,332,071,603.98 62,405,086,095.26 55,655,630,963.93
Other Operation 5,625,836,595.68 2,993,677,722.54 2,547,664,111.37 1,310,738,813.90
Total 81,557,686,002.18 71,325,749,326.52 64,952,750,206.63 56,966,369,777.83
(2) Revenue listed by products are as follows:
Item 2020 2019
Sales of goods 79,379,498,536.38 63,131,407,265.60
Outsourcing processing 2,178,187,465.80 1,821,342,941.03
Total 81,557,686,002.18 64,952,750,206.63
(3) The breakdown of operating revenue generated from contracts with customers is as follows:
Item 2020
Revenue recognition time
Recognize revenue at a certain point in time 81,012,587,344.24
Recognize revenue within a certain period of time 545,098,657.94
Total 81,557,686,002.18
(4) The income recognized in the current year and included in the book value of contract liabilities at
the beginning of the year is as follows:
Item 2020
Sales of goods 1,870,992,349.08
Provision of services and others 125,961,836.94
Total 1,996,954,186.02
(5) The estimated time when the total transaction price that has not been fulfilled (or partially fulfilled)
performance obligations allocated to the end of the year is recognized as revenue is as follows:
Item 2020
Within 1 year 3,443,376,487.95
More than 1 year 442,146,395.38
Total 3,885,522,883.33
250
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Investment income/loss
(1) Details of investment income
Item 2020 2019
Long-term equity investment losses
accounted for by the equity method 608,962,802.11 3,266,790.63
Losses arising from business combination
not under common control (345,896,085.57) (2,081,317,451.25)
The investment income of financial asset
held for trading during its holding period 2,840,290.34 1,065,597.53
Dividend income from remaining
investments in other equity instruments 25,354,391.86 38,343,163.30
Investment income from disposal of long-
term equity investments 4,605,700,631.17 -
Gains from the remeasurement of the
remaining equity at fair value after the
loss of control 726,335,580.33 -
Interest income from entrusted loan 22,112,500.06 15,092,767.40
Total 5,645,410,110.30 (2,023,549,132.39)
251
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan)
5. Investment income (continued)
(2) Long-term equity investment income under equity method
Reason for the
Investee 2020 2019
fluctuation
Changan Ford Automobile Co., Decrease in profit due to
Ltd. 8,710,167.26 (1,926,961,179.20) sales decline
Changan Mazda Automobile Decrease in profit due to
Co., Ltd. 723,987,717.26 929,384,241.61 sales gross profit decline
Changan Mazda Engine Co., Ltd. 39,596,915.75 39,968,582.73
Jiangling Holding Co., Ltd. (197,256,309.37) (363,836,163.49) The loss due to low sales
Changan PSA Automobiles Co.,
Ltd. (114,234,986.00) (1,110,480,084.87) Disposal in the year
Nanchang Jiangling Investment
Co., Ltd (536,007,531.47) 18,072,312.40 Increase in loss
Chongqing Changan Kuayue Decrease in profit due to
Automobile Co.,Ltd. 45,730,860.11 75,417,039.13 sales decline
Changan Automobile Financing
Co.,Ltd 207,337,580.14 239,321,406.72
Changan Weilai New Energy
Automobile Technology Co., Early establishment,
Ltd. (18,666,611.81) (56,937,233.33) operating loss
Hainan Anxinxing Information
Technology Co., Ltd. (1,244,331.18) (1,976,171.11)
Nanjing Chelai Travel
Technology Co., Ltd. (282,339.82) (338,671.05)
Nanjing Leading Equity
Investment Partnership
(Limited Partnership) 64,418,284.31 76,950,606.32
Nanjing Leading Equity
Investment Management Co.,
Ltd. (183,235.30) (54,584.31)
Hunan Guoxin Semiconductor
Technology Co., Ltd. 221,362.27 152,447.20
Chongqing Changan New
Energy Vehicles Technology Early establishment,
Co., Ltd. (568,023,627.72) - operating loss
Total (345,896,085.57) (2,081,317,451.25)
252
Chongqing Changan Automobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan) Supplementary information
1. Schedule of non-recurring profit and loss
Item 2020
Non-current asset disposal gains and losses (including the write-off
29,465,046.07
portion of the asset impairment provision)
Government subsidies included in the current profit and loss (closely
related to the business of the enterprise, except for government
797,901,407.24
subsidies that are fixed or quantified according to the national unified
standard)
Interest on late payment of funds charged to non-financial enterprises 17,795,918.37
In addition to the effective hedging business related to the company's
normal business operations, the fair value changes in gains and losses 2,035,390,665.86
arising from holding trading financial assets
Gains and losses from entrusted loans 13,768,160.42
Losses arising from business combinations not under common control (6,937,641.07)
Investment income from disposal of long-term equity investments 1,398,196,002.13
Gains from the remeasurement of the remaining equity at fair value
2,246,681,836.54
after the loss of control
Other non-operating income and expenses other than the above (27,519,486.75)
Income tax impact 91,514,483.25
Minority shareholders' equity impact (after tax) (22,020,700.13)
Total 6,574,235,691.93
The Group disclosed non-recurring profit and loss items in accordance with the regulations issued by China
Security Regulation Commission, No 1 Regulation of Information Disclosure of Public Companies-Non-
recurring Profit and Loss
2. Return on equity and earnings per share
2020
Weighted average Earnings per share
Profit return on equity (%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
shareholders 7.13 0.68 not applicable
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring
profit and loss (6.97) (0.66) not applicable
2019
Weighted average Earnings per share
Profit return on equity (%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
shareholders (5.86) (0.55) not applicable
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring
profit and loss (10.54) (0.99) not applicable
253
Chongqing Changan Automobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2020
(Expressed in Renminbi Yuan) Supplementary information
2. Return on equity and earnings per share (continued)
In accordance with the regulations issued by China Security Regulation Commission, Regulation of
Information Disclosure of Public Companies—the Calculation and Disclosure of Return of Net Assets and
Earning per Share (2010 Revision), the Group disclosed the return of net assets and earnings per share in
the reporting period.
254
Chongqing Changan Automobile Company Limited 2020 Annual Report
Chapter 11 Documents for Future Reference
1. Financial reports with signatures and stamps of the legal representative, the chief accountant and the chief
of accounting organization.
2. The original copy of audit report with the stamp of the CPA firm and the signature and stamp of the
Certified Public Accountant.
3. All the original documents and manuscripts of the Company which has been disclosed in the reporting
period in the newspapers designated by China Securities Regulatory Commission.
Annual reports disclosed in other securities markets.
Chairman of the Board: General Manager:
Mr. Zhu Huarong Mr. Wang Jun
Chongqing Changan Automobile Co., Ltd.
20 April, 2021
255
