2009 First Quarter Report of
Chongqing Changan Automobile Company Limited
§1 Important Notes
1.1 The Board of Directors, the Supervisory Committee and directors, supervisors and senior management of
Chongqing Changan Automobile Company Limited (hereinafter referred to as “the Company”) warrant that this
report does not contain any false or misleading statements or omit any material facts and all information
set forth
herein are true, accurate and complete.
1.2 None of the directors, supervisors, senior management demonstrated uncertainty or disagreement about
the truthfulness, accuracy, and completeness of this quarterly report.
1.3 The financial statements of this quarter have not been audited.
1.4 Chairman Mr. Xu Liuping, General Manager Mr. Zhang Baolin, Chief Accountants Mr. Cui Yunjiang
and Mr. Ni Erke guarantee the truthfulness and completeness of the financial statements of the quarter
report.
1.5 The report shall be presented in both Chinese and English, and should there be any conflicting
understanding of the text, the Chinese version shall prevail.
§2 Company Profile
2.1 Main accounting data and financial indicators
In RMB Yuan
Ended this report term Ended previous year Changed by (%)
Gross Assets 16,384,304,298.56 15,367,824,844.54 6.61%
Owners’ Equity Attributable to the Parent
Company 7,625,664,952.41 7,596,524,812.96 0.38%
Share capital 2,334,022,848.00 2,334,022,848.00 0.00%
Net asset per share attributable to the
owners of the parent company 3.27 3.25 0.62%
This report term Same period last year Changed by (%)
Turnover 4,876,765,898.57 3,999,264,844.55 21.94%
Net profit attributable to the owners of
parent company 28,340,139.95 267,596,690.77 -89.41%
Cash flow generated by business
operation, net 424,538,157.55 -584,916,403.13 172.58%
Net Cash flow per share generated by
business operation 0.18 -0.25 172.58%
Basic gains per share 0.01 0.11 -90.91%
Diluted gains per share 0.01 0.11 -90.91%
Net earnings / asset 0.37% 3.52% -3.15%
Net earnings / capital ratio after
deducting of non-recurring gain/loss 0.37% 3.34% -2.97%2
Non-recurring gain and loss items
Amount of the period
from the beginning of
year to the end of report
term
Gain/loss of non-current assets -63,911.34
Other non-business income and expenditures other than the above -21,616.19
Influenced amount of minority shareholders’ equity -73,089.98
Influenced amount of income tax -1,666.07
Total -160,283.58
Reconciliation description under the PRC accounting standards and International Financial Reporting
Standards
Mar.31,2009 2009 First
Accountant difference adjustment list Quarter
Net assets Net profits
Workout accountant according to the enterprise accounting rule and syatem under the PRC 7,625,664,952
28,340,140
Adjustment of according to international accounting rules
1.Reduce corporation income tax on the basis of purchasing national equipments -94,828,085 2,559,862
2.Payment to currency shareholders of A share cash opposite price -71,284,065
Workout accountant according to the international finance report rules 7,459,552,803 30,900,002
2.2 Total number of shareholders at the end of the report period and statement on shares held by
the top ten tradable shareholders
Unit: share
Total shareholders number 249,519
Top ten shareholders of stock without limited sale
Name of shareholders
Total number of shares without
condition of limited sale Share type
CHINA SOUTH INDUSTRY AUTOMOBILE
COMPANY LIMITED 116,701,143 RMB Ordinary share
MIRAE ASSET CHINA SOLOMON EQUITY
INVESTMENT TRUST 1 30,915,738 Domestic listed foreign shares
BONJOUR CHINA FUND 2 25,073,762 Domestic listed foreign shares
China Constuction Bank－FullGoal Tianbo the theme of
innovative Securities Investment Fund 12,057,626 RMB Ordinary share
Agricul Bank Of China－FullGoal Tianrui Favorable
Regions Selected Mixed Open-ended
Securities Investment Fund
10,511,390 RMB Ordinary share
MIRAEASSET CHINA SOLOMON EQUITY
INVESTMENT TRUST NO.2 9,725,595 Domestic listed foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG)
LIMITED 9,220,967 Domestic listed foreign shares
GAO-LING FUND,L.P. 8,492,071 Domestic listed foreign shares
INDUSTRIAL AND COMMERCIAL BANK OF CHINA
–RONGTONG SHENZHENG YIBAI ZHISHU
SECURITIES INVESTMENT FUND
6,788,892 RMB Ordinary share
HOLY TIME GROUP LIMITED 6,250,290 Domestic listed foreign shares3
§3 Important Matters
3.1 Significant changes in major accounting data, financial highlight and reason of these changes.
√Applicable □Not Applicable
Balance Sheet Items Mar. 31th 2009 Jan. 1th 2009 Changes
Notes receivable 3,092,070,203.08 1,934,083,074.98 59.87%
Intangible assets 218,371,237.59 114,867,134.54 90.11%
Account payable 3,523,830,635.01 2,275,651,448.09 54.85%
Tax payable 243,607,256.71 58,456,822.80 316.73%
Other account payable 245,714,912.39 367,301,503.09 -33.10%
Non-current liability due in 1 year 560,306,617.27 345,932,573.07 61.97%
Income Statement Items Jan-Mar 2009 Jan-Mar 2008 Changes
Sales expense 505,720,687.36 355,625,537.02 42.21%
Financial expenses 2,178,697.80 13,563,516.56 -83.94%
Investment gain -11,645,835.18 308,136,358.70 -103.78%
Gross profit 12,818,111.48 258,023,135.28 -95.03%
Income tax expenses -14,915,195.19 -5,173,729.91 -188.29%
Net profit attributable to the
owners of parent company 28,340,139.95 267,596,690.77 -89.41%
Cash Flow Statement Items Jan-Mar 2009 Jan-Mar 2008 Changes
Cash flow generated by business
operation, net 424,538,157.55 -584,916,403.13 172.58%
Net cash flow generated by
investment -275,268,809.28 -799,609,663.07 65.57%
Net cash flow generated by
financing 49,748,584.34 1,028,932,827.78 -95.17%
Net increase of cash and cash
equivalents 199,017,932.61 -355,593,238.42 155.97%
Notes receivable grows by 59.87 percent over the beginning of the year, mainly due to increased sales
volume during the reporting
period; intangible assets grows by 90.11% over the beginning of the year, mainly due to New Technology R &
D costs transferred into
the intangible assets RMB112.36 million yuan; the accounts payable grows by 54.85 percent over the
beginning of the year, mainly due
to production expansion and the procurement volume increase during the reporting period; taxes and fees
grow by 316.73% over the
beginning of the year, mainly attributable to the parent company contribution increase during the reporting
period; other payables
reduce by 33.10% than the beginning of the year mainly due to the freight payment increase of the parent
company during the
reporting period; non-current liabilities due within one year increases by 61.97% than the beginning of the
year mainly due to pre-used
transportation costs for good sales during the reporting period.
Sales cost rises by 42.21 percent than the same period last year, mainly due to increased freight costs for
increased sales during the
reporting period; the financial cost reduces by 83.94 percent year-on-year, mainly because interest rates
of bank loans significantly
decreases compared to the same period last year; the investment income reduces by 103.78%than that the same
period last year, mainly
due to a significant decrease in investment income from the joint venture; income tax reduces by 188.29%
than that the same period
last year during the reporting period mainly because provision for deferred income tax assets increase than
that in the same period last
year; net profit attributable to the parent company’s owner decreases by 89.41 percent year-on-year mainly
due to a substantial
decrease in investment income of the company.
Net cash flow generated from operating activities increases by 172.58 percent year-on-year mainly because
received cash resulting
form services rendering increases during sales; net cash flow generated from investment activities
increases by 65.57% year-on-year
mainly because the parent company invests more capital into Changan Ford Mazda Automobile and Jiangling
Holdings and the cash
outflow grows than that the same period last year; net cash flow generated from fund-raising activities
reduces by 95.17%
year-on-year, mainly due to no new or additional bank loans during the reporting period; the net increase
in cash and cash equivalents
is 155.97 percent year-on-year, mainly because net cash flow generated from operating activities has
substantial increase during the
reporting period.
3.2 The progress and influence of significant events and the analysis and explanation on resolving proposal
□Applicable √Not Applicable4
3.3 The fulfillment of the commitment made by the Company, shareholders and the actual controller
√Applicable □Not Applicable
Commitments Content of commitments Implementation
Commitments made
when share merger
reform
(1) To comply with laws, rules and regulations,
and perform legal duty of commitment.
(2) Since the non-circulated shares are entitled to
be circulated, at least they can’t be dealt with or
transferred within 24 months. At the expiration of
24 months, the shareholders of non-circulated
shares can sell the shares in stock exchange in
amount of no more than 5% of total within 12
months, and no more than 10% of total within 24
months.
(3) After the reform of non-tradable shares, the
Company performs the scheme of incentive
share awards for the managements according to
relative government regulation.
The controlling shareholder of the Company,
China South Industry Automobile Co., Ltd. since
the reform program being implementation, strictly
compliance with the share-trading reform
commitments made by it. The Company
management has yet launch an equity incentive
plan. According to the "Statement on Changan
Automobile Co., Ltd. share structure reform of
the relevant commitments and the
implementation of that" issued by the Company’s
controlling shareholder, China South Industry
Automobile Co., Ltd., incentive plan will be
studied and implement timely according to
SASAC’s provisions."
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the period
from
the beginning of the year to the end of the next report period compared with the same period of the last
year
according to prediction, as well as explanations on the reasons
□Applicable √Not Applicable
3.5 Other significant events need to be explained
3.5.1 Securities investment
□Applicable √Not Applicable
3.5.2 Interviews and visits in the reporting period
√Applicable □Not Applicable
Time/date Place Way Visitors Main content involved and material
provided
2009.1.16 Meeting Room,
Changan Headquarters On-Site Survey UBS Automotive Industry Development and
Company’s Business
2009.2.16 Meeting Room,
Changan Headquarters On-Site Survey GF SECURITIES CO.,LTD Automotive Industry Development and
Company’s Business
2009.2.20 Meeting Room,
Changan Headquarters On-Site Survey Ziff Brothers Investment Automotive Industry Development and
Company’s Business
2009.2.23 Meeting Room,
Changan Headquarters On-Site Survey UBS Automotive Industry Development and
Company’s Business
2009.2.23 Meeting Room,
Changan Headquarters On-Site Survey Marsico Capital Management Automotive Industry Development and
Company’s Business
2009.3.3 Meeting Room,
Changan Headquarters On-Site Survey Citic Securities Automotive Industry Development and
Company’s Business
2009.3.4 Meeting Room,
Changan Headquarters On-Site Survey Piper Jaffery Asia Securities LTD Automotive Industry Development and
Company’s Business
2009.3.4 Meeting Room,
Changan Headquarters On-Site Survey Ping An SECURITIES CO.,LTD Automotive Industry Development and
Company’s Business
2009.3.12 Meeting Room,
Changan Headquarters On-Site Survey
Lian He SECURITIES CO.,LTD、
SGAM Fund Management Co.,
Ltd、AIG-Huatai Fund Management
Co.,Ltd.
Automotive Industry Development and
Company’s Business
2009.3.17 Meeting Room,
Changan Headquarters On-Site Survey Blackstone Automotive Industry Development and
Company’s Business
2009.3.18 Meeting Room,
Changan Headquarters On-Site Survey Goldman Sachs Automotive Industry Development and
Company’s Business
2009.3.25 Meeting Room,
Changan Headquarters On-Site Survey Marvin & Palmer Automotive Industry Development and
Company’s Business
3.5.3 Statement on other significant issues
□Applicable √Not Applicable5
§4. Attachment
4.1 Balance Sheet
Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD. Mar.31th 2009 in RMB yuan
Items ConsoliAdta ttehde end Poaf rteenrmt c ompany ConsoliBdeagteindn ing Poaf rteenrmt c ompany
Current asset:
Monetary fund 1,823,182,091.54 1,026,514,136.83 1,624,164,158.93 1,166,965,437.50
Settlement provision
Outgoing call loan
Trading financial assets
Notes receivable 3,092,070,203.08 2,026,868,126.19 1,934,083,074.98 1,257,028,330.15
Account receivable 311,770,642.34 866,388,758.86 398,665,913.84 959,777,772.64
Prepayment 222,663,804.75 204,483,119.99 264,265,866.41 202,933,850.32
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 86,285,830.28 164,297,002.85 94,522,595.69 166,274,867.13
Repurchasing of financial assets
Inventories 1,325,191,922.99 640,510,160.84 1,662,215,300.65 867,644,236.84
Non-current asset due in 1 year
Other current asset 25,550.70 29,913.95
Total of current asset 6,861,190,045.68 4,929,061,305.56 5,977,946,824.45 4,620,624,494.58
Non-current assets
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 4,544,443,548.08 5,448,568,486.72 4,556,089,383.26 5,459,914,321.90
Property investment 68,044,824.60 68,646,801.42
Fixed assets 3,291,285,370.67 2,777,023,273.07 3,333,111,102.01 2,805,942,755.49
Construction in process 982,663,801.06 927,020,648.19 851,287,528.26 805,436,096.76
Engineering material 2,119,602.12 2,119,602.12 3,147,070.12 3,147,070.12
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 218,371,237.59 140,129,754.63 114,867,134.54 34,930,695.07
R&D expense 227,436,746.04 226,557,493.45 308,158,911.20 308,158,911.20
Goodwill 9,804,394.00 9,804,394.00
Long-term prepaid expenses 3,942,706.24 1,395,620.00 5,232,237.70 1,440,640.00
Differed income tax asset 175,002,022.48 115,499,041.27 139,533,457.58 97,843,264.45
Other non-current asset
Total of non-current assets 9,523,114,252.88 9,638,313,919.45 9,389,878,020.09 9,516,813,754.996
Total of assets 16,384,304,298.56 14,567,375,225.01 15,367,824,844.54 14,137,438,249.57
Current liabilities
Short-term loans 885,121,147.80 625,241,709.80 1,093,749,195.04 875241709.8
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities 9,773,408.00 9,773,408.00
Notes payable 1,626,393,385.83 1,576,393,385.83 2,196,879,136.98 2,117,879,136.98
Account payable 3,523,830,635.01 2,148,401,384.71 2,275,651,448.09 1,327,279,900.55
Prepayment received 815,715,994.61 326,331,285.01 909,476,064.71 383,616,593.07
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 113,238,102.01 92,229,531.99 110,874,454.46 85,737,760.45
Tax payable 243,607,256.71 231,825,918.31 58,456,822.80 138,292,988.92
Interest payable 1,110,000.00 1,110,000.00 1,200,000.00 1,200,000.00
Dividend payable 83,148.19 83,148.19
Other account payable 245,714,912.39 139,682,892.78 367,301,503.09 259,745,444.43
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 560,306,617.27 391,605,338.76 345,932,573.07 224,241,972.26
Other current liability
Total of current liability 8,024,894,607.82 5,532,821,447.19 7,369,377,754.43 5,413,235,506.46
Non-current liabilities
Long-term borrowings 292,000,000.00 250,000,000.00
Bond payable
Long-term payable
Special payable 37,375,533.61 37,375,533.61 37,939,992.97 37,939,992.97
Expected liabilities 254,928,206.53 170,124,919.01 213,392,484.92 156,363,110.75
Differed income tax liability
Other non-recurring liabilities 37,951,032.21 26,185,032.21 38,493,000.00 26,727,000.00
Total of non-current liabilities 622,254,772.35 483,685,484.83 289,825,477.89 221,030,103.72
Total of liability 8,647,149,380.17 6,016,506,932.02 7,659,203,232.32 5,634,265,610.18
Owners’ equity (or shareholders’ equity)
Practical capital collected (or share capital) 2,334,022,848.00 2,334,022,848.00 2,334,022,848.00
2,334,022,848.00
Capital reserves 1,500,060,947.64 1,676,328,688.83 1,499,260,947.64 1,675,528,688.83
Less: Shares in stock
Surplus reserves 1,042,968,947.56 1,042,968,948.06 1,042,968,948.06 1,042,968,948.06
Common risk provision
Attributable profit 2,748,612,209.21 3,497,547,808.10 2,720,272,069.26 3,450,652,154.50
Different of foreign currency translation
Total of owner’s equity belong to the parent company 7,625,664,952.41 8,550,868,292.99 7,596,524,812.96
8,503,172,639.39
Minor shareholders’ equity 111,489,965.98 112,096,799.26
Total of owners’ equity 7,737,154,918.39 8,550,868,292.99 7,708,621,612.22 8,503,172,639.39
Total of liabilities and owners’ equity 16,384,304,298.56 14,567,375,225.01 15,367,824,844.54
14,137,438,249.577
4.2 Income Statement of the report term
Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Mar 2009 in RMB yuan
Items ConsolidaCteudrr ent Ptearrmen t company ConsSoalimdaet epde riodP laarset nyte caor mpany
I. Total business income 4,876,765,898.57 3,077,226,928.25 3,999,264,844.55 2,629,984,336.82
Incl. Business income 4,876,765,898.57 3,077,226,928.25 3,999,264,844.55 2,629,984,336.82
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 4,852,216,424.38 3,036,417,433.54 4,054,882,932.78 2,666,045,882.15
Incl. Business cost 3,978,357,334.90 2,483,834,128.94 3,311,834,575.97 2,126,548,807.17
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 98,970,758.33 67,725,015.59 111,670,869.21 76,521,438.00
Sales expense 505,720,687.36 275,031,048.83 355,625,537.02 221,657,618.14
Administrative expense 252,716,438.60 204,895,617.63 245,250,856.85 219,212,306.30
Financial expenses 2,178,697.80 -9,687,606.67 13,563,516.56 5,168,135.37
Asset impairment loss 14,272,507.39 14,619,229.22 16937577.17 16937577.17
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss) -11,645,835.18 -11,645,835.18 308,136,358.70 308,136,358.70
Incl. Investment gains from affiliates -11,645,835.18 -11,645,835.18 308,136,358.70 308,136,358.70
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 12,903,639.01 29,163,659.53 252,518,270.47 272,074,813.37
Plus: Non business income 557,233.89 76,217.25 6,360,340.99 5,892,054.64
Less: Non-business expenses 642,761.42 855,476.18 493779.72
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 12,818,111.48 29,239,876.78 258,023,135.28 277,473,088.29
Less: Income tax expenses -14,915,195.19 -17,655,776.82 -5,173,729.91 -10260547.87
V. Net profit (“-“ for net loss) 27,733,306.67 46,895,653.60 263,196,865.19 287,733,636.16
Net profit attributable to the owners of parent company 28,340,139.95 46,895,653.60 267,596,690.77
287,733,636.16
Minor shareholders’ equity -606,833.28 -4,399,825.58
VI. Earnings per share:
(I) Basic earnings per share 0.01 0.02 0.11 0.12
(II) Diluted earnings per share 0.01 0.02 0.11 0.128
4.3 Cash Flow Statement from the beginning of year to the end of report term.
Prepared by: Prepared by: CHONGQING CHANGAN AUTOMOBILE CO., LTD.. Jan-Mar 2009 in RMB yuan
Items ConsolidaCteudrrentP taerremn t company ConsSoalimdaet epde riodP laarsetn yt ecaorm pany
I. Net cash flow from business operation
Cash received from sales of products and providing of
services 3,023,029,539.41 2,299,073,293.75 2,410,914,911.88 1,545,983,501.87
Net increase of customer deposits and capital kept for
brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 17,350,843.26 35,871,719.06 5820000
Other cash received from business operation 17,161,941.49 4,836,734.18 83,862,901.42 8,923,542.01
Sub-total of cash inflow from business activities 3,057,542,324.16 2,303,910,027.93 2,530,649,532.36
1,560,727,043.88
Cash paid for purchasing of merchandise and services 1,828,326,994.50 1,562,939,360.40 2,252,691,617.79
1,477,594,141.35
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 189,381,642.75 153,715,411.84 174,658,438.90 148,495,375.35
Taxes paid 269,669,286.47 179,151,738.66 281,013,062.45 217,115,589.88
Other cash paid for business activities 345,626,242.89 287,946,210.95 407,202,816.35 304,069,936.22
Sub-total of cash outflow from business activities 2,633,004,166.61 2,183,752,721.85 3,115,565,935.49
2,147,275,042.80
Cash flow generated by business operation, net 424,538,157.55 120,157,306.08 -584,916,403.13 -
586,547,998.92
II. Cash flow generated by investing
Cash received from investment retrieving 265843.01 265843.01
Cash received as investment gains
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets 280,881.84 67,008.54 120,143.41 3,768.80
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received 90,000.00 8493618.27
Sub-total of cash inflow due to investment activities 370,881.84 67,008.54 8,879,604.69 269,611.81
Cash paid for construction of fixed assets, intangible assets
and other long-term assets 273,743,320.97 248,764,800.14 101,278,467.76 94,216,531.45
Cash paid as investment 1,896,370.15 1,896,370.15 707210800 707210800
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 275,639,691.12 250,661,170.29 808,489,267.76
801,427,331.45
Net cash flow generated by investment -275,268,809.28 -250,594,161.75 -799,609,663.07 -801,157,719.649
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 457,807,992.00 250,000,000.00 1,774,000,000.00 1620000000
Cash received from bond placing
Other financing-related cash received 1390637.52
Subtotal of cash inflow from financing activities 459,198,629.52 250,000,000.00 1,774,000,000.00
1,620,000,000.00
Cash to repay debts 398,645,859.80 250,000,000.00 707,046,234.78 500,000,000.00
Cash paid as dividend, profit, or interests 10,601,234.94 10,014,445.00 38,020,937.44 32,735,347.50
Incl. Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 202950.44
Subtotal of cash outflow due to financing activities 409,450,045.18 260,014,445.00 745,067,172.22
532,735,347.50
Net cash flow generated by financing 49,748,584.34 -10,014,445.00 1,028,932,827.78 1,087,264,652.50
IV. Influence of exchange rate alternation on cash and cash
equivalents
V. Net increase of cash and cash equivalents 199,017,932.61 -140,451,300.67 -355,593,238.42 -300,441,066.06
Plus: Balance of cash and cash equivalents at the beginning
of term 1,614,390,750.93 1,166,965,437.50 1,583,706,500.04 1,169,325,053.21
VI. Balance of cash and cash equivalents at the end of term 1,813,408,683.54 1,026,514,136.83
1,228,113,261.62 868,883,987.15
4.4 Auditors’Report Auditing Opinion: Unaudited
