Chongqing Changan Automobile Company Limited
2022 Semi-annual Report Financial Statements
August 2022
The Financial Statements
I. Auditing Report
No audit on the semi-annual financial report.
II. Financial statements
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account 2022.6.30 2022.1.1
Current assets:
Cash 53,421,783,239.85 51,976,242,149.37
Trading financial assets 305,967,574.57 195,798,300.00
Notes receivable 21,178,905,132.66 24,267,633,416.65
Accounts receivable 3,597,002,110.54 1,675,427,534.87
Prepayments 3,863,981,393.89 3,241,248,831.28
Other receivables 509,614,847.86 632,122,942.37
Including: dividends receivable 255,356,145.11
Inventories 7,024,925,792.62 6,852,874,420.59
Contract assets 1,036,757,897.63 1,151,292,247.36
Other current assets 782,671,443.74 1,147,798,871.42
Total current assets 91,721,609,433.36 91,140,438,713.91
Non-current assets:
Long-term equity investments 17,304,612,282.75 13,245,374,860.55
Investment in other equity instruments 701,409,600.00 701,409,600.00
Investment properties 6,536,070.82 6,649,426.60
Fixed assets 20,513,654,898.34 21,325,959,850.16
Construction in progress 1,130,381,106.58 1,460,176,539.43
Right-of-use asset 50,017,632.80 66,313,062.98
Intangible assets 4,365,838,896.35 4,385,997,657.67
Development expenditure 551,480,202.86 727,568,248.78
Goodwill 9,804,394.00 48,883,188.37
Long-term deferred expenses 21,707,099.51 15,032,814.19
Deferred tax assets 2,435,308,963.54 2,280,819,516.99
Total non-current assets 47,090,751,147.55 44,264,184,765.72
TOTAL ASSETS 138,812,360,580.91 135,404,623,479.63
Current liabilities:
Short-term loans 46,166,500.00 19,000,000.00
Notes payable 26,921,406,502.22 24,292,268,371.12
Accounts payable 23,994,999,761.80 23,650,604,870.98
Contract liability 4,956,070,974.92 9,840,509,514.39
2
Payroll payable 3,326,799,792.65 2,566,570,928.52
Taxes payable 707,493,157.04 1,121,313,397.52
Other payables 5,116,328,239.99 4,562,626,344.69
Non-current liabilities within one year 887,576,604.11 533,839,583.57
Other current liabilities 5,462,299,176.16 5,680,959,029.22
Total current liabilities 71,419,140,708.89 72,267,692,040.01
Non-current liabilities:
Long-term loans 40,000,000.00 600,000,000.00
Lease liability 28,202,020.25 38,679,735.59
Long-term payables 631,003,313.51 825,473,490.08
Long-term payroll payable 36,636,829.52 39,103,000.00
Estimated liabilities 4,280,005,759.73 3,839,015,677.84
Deferred Revenue 499,479,412.93 924,749,731.12
Deferred tax liabilities 219,704,466.04 217,441,992.37
Other non current liabilities 843,750,617.87 786,227,868.42
Total non-current liabilities 6,578,782,419.85 7,270,691,495.42
Total liabilities 77,997,923,128.74 79,538,383,535.43
Owners’ equity (or Shareholders’ equity):
Share capital 9,921,799,422.00 7,632,153,402.00
Capital reserves 8,342,424,351.08 9,776,193,360.38
Less: treasury shares 655,812,327.60 655,812,327.60
Other comprehensive income 69,564,124.34 69,442,469.53
Special reserves 49,147,155.48 27,988,260.61
Surplus reserves 2,982,292,413.67 2,982,292,413.67
Retained earnings 39,979,444,469.37 35,900,674,525.13
Equity attributable to owners 60,688,859,608.34 55,732,932,103.72
Minority interests 125,577,843.83 133,307,840.48
Total Owners’ equity (or Shareholders’ equity) 60,814,437,452.17 55,866,239,944.20
Liabilities and owners' equity (or shareholders'
138,812,360,580.91 135,404,623,479.63
equity) in total
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
Account 2022.6.30 2022.1.1
Current assets:
Cash 44,526,884,736.20 41,917,770,676.45
Trading financial assets 305,967,574.57 195,798,300.00
Notes receivable 19,281,640,756.74 21,500,746,660.99
Accounts receivable 7,313,681,453.36 7,931,510,606.59
Prepayments 3,354,924,945.47 2,935,068,191.78
Other receivables 395,603,079.15 1,756,623,581.93
Including: dividends receivable 255,356,145.11 -
Inventories 3,808,502,003.65 4,137,987,048.19
Contract assets 549,523,080.93 635,112,994.60
Other current assets 140,555,294.49 21,082,615.46
3
Total current assets 79,677,282,924.56 81,031,700,675.99
Non-current assets:
Long-term equity investments 19,822,504,132.39 17,660,819,978.70
Investment in other equity instruments 691,156,200.00 691,156,200.00
Fixed assets 15,162,124,350.57 16,001,089,813.79
Construction in progress 654,797,708.06 475,209,255.90
Right-of-use asset 43,061,415.97 53,789,648.12
Intangible assets 3,123,873,620.38 3,205,472,940.52
Development expenditure 567,105,376.03 422,291,074.50
Long-term deferred expenses 19,041,553.35 12,065,475.24
Deferred tax assets 2,033,945,656.36 1,893,957,371.71
Total non-current assets 42,117,610,013.11 40,415,851,758.48
TOTAL ASSETS 121,794,892,937.67 121,447,552,434.47
Current liabilities:
Notes payable 22,566,103,314.88 19,118,739,562.85
Accounts payable 17,431,485,816.58 20,181,845,700.58
Contract liability 3,846,513,444.50 8,446,500,016.04
Payroll payable 2,939,028,593.14 2,074,732,440.77
Taxes payable 551,456,570.67 784,928,251.22
Other payables 4,564,570,374.41 4,330,506,737.23
Non-current liabilities within one year 674,264,461.90 374,210,756.73
Other current liabilities 4,885,358,872.53 4,955,516,106.11
Total current liabilities 57,458,781,448.61 60,266,979,571.53
Non-current liabilities:
Long-term loans 40,000,000.00 600,000,000.00
Lease liability 20,496,001.72 30,751,928.99
Long-term payables 156,022,915.60 120,409,242.99
Long-term payroll payable 19,776,760.32 21,995,000.00
Estimated liabilities 3,536,358,417.91 3,050,701,028.41
Deferred Revenue 150,000,000.00 150,000,000.00
Deferred tax liabilities 182,484,595.31 178,583,323.79
Other non current liabilities 772,610,007.20 715,087,257.75
Total non-current liabilities 4,877,748,698.06 4,867,527,781.93
Total liabilities 62,336,530,146.67 65,134,507,353.46
Owners’ equity (or Shareholders’ equity):
Share capital 9,921,799,422.00 7,632,153,402.00
Capital reserves 7,859,296,325.61 9,293,065,334.91
Less: treasury shares 655,812,327.60 655,812,327.60
Other comprehensive income 166,197,564.29 166,051,336.11
Special reserves 16,551,301.25 7,552,984.45
Surplus reserves 2,982,292,413.67 2,982,292,413.67
Retained earnings 39,168,038,091.78 36,887,741,937.47
Total Owners’ equity (or Shareholders’ equity) 59,458,362,791.00 56,313,045,081.01
Liabilities and owners' equity (or shareholders'
121,794,892,937.67 121,447,552,434.47
equity) in total
4
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 56,573,568,393.71 56,784,631,899.07
Less: Operating cost 45,360,090,482.20 48,086,677,229.21
Tax and surcharges 1,946,300,231.77 2,087,694,667.07
Operating expenses 2,285,329,821.77 2,146,115,312.19
General and administrative expenses 2,184,034,305.10 2,217,147,044.50
Research and development expenses 1,932,294,144.67 1,495,583,362.16
Financial expenses (437,998,348.99) (233,776,490.65)
Interest expense 17,892,411.14 26,372,186.29
Interest income 438,428,075.90 281,294,223.92
Add: Other income 186,910,289.65 106,783,041.12
Investment income 2,354,040,073.27 327,872,465.08
Including: Investment income from associates and joint
78,821,605.75 250,708,951.37
venture
Gains from changes in fair value 26,136,888.77 15,734,698.73
Credit impairment loss (10,774,686.62) (3,486,242.35)
Asset impairment loss (241,827,585.46) (195,687,107.11)
Gain on disposal of assets 68,244,082.28 601,066,861.33
2.Operating profit 5,686,246,819.08 1,837,474,491.39
Add: Non-operating income 54,366,637.51 40,983,845.94
Less: Non-operating expenses 4,870,215.23 14,103,602.29
3.Total profit 5,735,743,241.36 1,864,354,735.04
Less: Income tax expense (103,280,125.74) 59,373,446.09
4.Net profit 5,839,023,367.10 1,804,981,288.95
Classification by going concern
Net profit from continuing operations 5,839,023,367.10 1,804,981,288.95
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 5,857,626,135.78 1,729,245,208.60
Minority interests (18,602,768.68) 75,736,080.35
5.Other comprehensive income, net of tax 121,654.81 21,820,284.63
Net after-tax net of other comprehensive income
121,654.81 21,820,284.63
attributable to the parent company owner
Other comprehensive income that will be
121,654.81 21,820,284.63
reclassified into profit or loss
Other comprehensive income that can be
146,228.18
transferred to profit or loss under the equity method
Foreign currency financial statement translation
(24,573.37) 21,820,284.63
difference
6.Total comprehensive income 5,839,145,021.91 1,826,801,573.58
Total comprehensive income attributable to owners 5,857,747,790.59 1,751,065,493.23
Total comprehensive income attributable to minority
(18,602,768.68) 75,736,080.35
interest
5
7.Earnings per share
Basic earnings per share 0.60 0.17
Diluted earnings per share 0.59 0.17
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
4. Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 50,290,300,571.12 52,828,405,180.72
Less: Operating cost 40,914,984,492.63 45,513,544,394.59
Tax and surcharges 1,434,768,916.69 1,525,114,802.32
Operating expenses 1,475,590,737.64 1,736,500,574.77
General and administrative expenses 1,915,207,107.81 1,878,247,754.81
Research and development expenses 1,851,660,640.99 1,298,099,887.53
Financial expenses (342,363,432.16) (204,613,231.91)
Interest expense 13,595,854.23 21,764,130.34
Interest income 365,385,141.66 236,842,142.30
Add: Other income 54,300,000.00
Investment income 986,054,122.33 428,119,303.94
Including: Investment income from associates and
(92,372,274.55) 349,815,853.13
joint venture
Gains from changes in fair value 26,136,888.77 (17,151,300.00)
Credit impairment loss (286,476.97) (2,086,388.91)
Asset impairment loss (128,723,015.24) (213,509,747.87)
Gain on disposal of assets 42,691,501.37 4,920,912.69
2.Operating profit 4,020,625,127.78 1,281,803,778.46
Add: Non-operating income 25,372,227.33 11,549,617.96
Less: Non-operating expenses 2,696,319.99 10,500,438.13
3.Total profit 4,043,301,035.12 1,282,852,958.29
Less: Income tax expense (136,087,013.13) (103,215,762.03)
4.Net profit 4,179,388,048.25 1,386,068,720.32
Net profit from continuing operations 4,179,388,048.25 1,386,068,720.32
Net profit from discontinued operations
5.Other comprehensive income, net of tax 146,228.18
Other comprehensive income to be reclassified into
146,228.18
profit or loss
Other comprehensive income that can be
146,228.18
transferred to profit or loss under the equity method
6.Total comprehensive income 4,179,534,276.43 1,386,068,720.32
5. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 61,813,960,686.95 63,916,698,589.71
Refunds of taxes 896,338,589.28 479,978,596.74
6
Cash received relating to other operating activities 1,401,417,655.54 1,798,083,078.94
Subtotal of cash inflows 64,111,716,931.77 66,194,760,265.39
Cash paid for goods and services 46,918,151,331.30 37,506,989,506.50
Cash paid to and on behalf of employees 3,773,793,442.65 3,273,064,979.18
Cash paid for all types of taxes 4,028,962,242.26 4,360,350,113.07
Cash paid relating to other operating activities 3,538,573,495.36 3,355,528,796.27
Subtotal of cash outflows 58,259,480,511.57 48,495,933,395.02
Net cash flows from operating activities 5,852,236,420.20 17,698,826,870.37
2.Cashflows from investing activities:
Cash received from investment recovery 14,839,200.00
Cash received from investment income 381,628,412.00 10,806,875.00
Net cash received from disposal of fixed assets, intangible
280,603,391.85 47,111,653.89
assets and other long-term assets
Cash received relating to other investing activities - 300,000,000.00
Subtotal of cash inflows 677,071,003.85 357,918,528.89
Cash paid for acquisition of fixed assets, intangible assets and
783,516,340.12 1,022,801,871.76
other long-term assets
Cash paid for acquisition of investments 1,461,640,640.00 1,000,000.00
Cash paid relating to other investing activities 815,126,333.76
Subtotal of cash outflows 3,060,283,313.88 1,023,801,871.76
Net cash flows from investing activities (2,383,212,310.03) (665,883,342.87)
3.Cash flows from financing activities:
Absorb cash received from investment 507,461,364.00
Cash received from borrowing 68,070,000.00 20,000,000.00
Cash received relating to other financing activities 715,239,432.26 312,220,372.75
Subtotal of cash inflows 783,309,432.26 839,681,736.75
Cash repayments of borrowings 300,903,500.00 146,000,000.00
Cash paid for distribution of dividends or profits and interest
1,797,127,172.44 1,690,977,626.11
expenses
Cash paid relating to other financing activities 699,230,692.02 418,592,802.69
Subtotal of cash outflows 2,797,261,364.46 2,255,570,428.80
Net cash flows from financing activities (2,013,951,932.20) (1,415,888,692.05)
4.Effect of changes in exchange rate on cash 59,278,475.19 (3,619,293.07)
5.Net increase in cash and cash equivalents 1,514,350,653.16 15,613,435,542.38
Add: Opening balance of cash and cash equivalents 49,517,916,834.99 30,655,968,057.63
6.Closing balance of cash and cash equivalents 51,032,267,488.15 46,269,403,600.01
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 51,488,841,934.67 55,145,607,987.10
Cash received relating to other operating activities 46,609,602.87 -
Cash received relating to other operating activities 676,108,022.43 1,092,865,948.69
Subtotal of cash inflows 52,211,559,559.97 56,238,473,935.79
Cash paid for goods and services 38,192,576,888.27 31,953,727,307.50
Cash paid to and on behalf of employees 2,615,212,696.17 2,404,181,310.34
7
Cash paid for all types of taxes 2,892,112,750.99 3,332,896,561.58
Cash paid relating to other operating activities 2,383,343,811.11 2,779,051,429.05
Subtotal of cash outflows 46,083,246,146.54 40,469,856,608.47
Net cash flows from operating activities 6,128,313,413.43 15,768,617,327.32
2.Cashflows from investing activities:
Cash received from investment recovery 14,839,200.00 -
Cash received from return on investments 381,628,412.00 12,015,208.33
Net cash received from disposal of fixed assets, intangible
255,368,088.61 7,594,323.89
assets and other long-term assets
Other cash received relating to investing activities - 500,000,000.00
Subtotal of cash inflows 651,835,700.61 519,609,532.22
Cash paid for acquisition of fixed assets, intangible assets and
633,161,880.29 883,493,763.31
other long-term assets
Cash paid for acquisition of investments 1,461,640,640.00 1,000,000.00
Subtotal of cash outflows 2,094,802,520.29 884,493,763.31
Net cash flows from investing activities (1,442,966,819.68) (364,884,231.09)
3.Cash flows from financing activities:
Absorb cash received from investment - 507,461,364.00
Cash received from borrowings 40,000,000.00 -
Subtotal of cash inflows 40,000,000.00 507,461,364.00
Cash paid for debt repayment 300,000,000.00 100,000,000.00
Cash paid for distribution of dividends or profits and interest
1,795,680,672.36 1,689,755,862.22
expenses
Cash paid relating to other financing activities 12,551,861.64 31,241,289.74
Subtotal of cash outflows 2,108,232,534.00 1,820,997,151.96
Net cash flows from financing activities (2,068,232,534.00) (1,313,535,787.96)
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents 2,617,114,059.75 14,090,197,308.27
Add: Opening balance of cash and cash equivalents 41,889,838,553.29 25,190,870,784.06
6.Closing balance of cash and cash equivalents 44,506,952,613.04 39,281,068,092.33
8
7. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Equity attributable to owners
Items Other Minority
Less: Treasury Special Surplus Retained Total equity
Share capital Capital reserves comprehensiv interest
shares reserve reserve earnings
e income
I. At end of last year 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 133,307,840.48 55,866,239,944.20
II. At beginning of year 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 133,307,840.48 55,866,239,944.20
III. Changes during the year 2,289,646,020.00 (1,433,769,009.30) 121,654.81 21,158,894.87 4,078,769,944.24 (7,729,996.65) 4,948,197,507.97
1.Total comprehensive
121,654.81 5,857,626,135.78 (18,602,768.68) 5,839,145,021.91
income
2. Capital contributed by
owners and capital 855,877,010.70 855,877,010.70
decreases
(1) The amount of share-
based payment included in 192,310,900.00 192,310,900.00
owner's equity
(2) Others 663,566,110.70 663,566,110.70
3. Distribution of profit (1,778,856,191.54) (1,778,856,191.54)
Distribution to owners (1,778,856,191.54) (1,778,856,191.54)
4.Internal carry forward of
2,289,646,020.00 (2,289,646,020.00)
owner's equity
Capital reserve
converted into capital (or 2,289,646,020.00 (2,289,646,020.00)
share capital)
5. Special reserves 21,158,894.87 21,158,894.87
(1) Pick-up in current
46,183,489.83 46,183,489.83
period
(2) Used in current
(25,024,594.96) (25,024,594.96)
period
6.Others 10,872,772.03 10,872,772.03
9
IV. At end of current period 9,921,799,422.00 8,342,424,351.08 655,812,327.60 69,564,124.34 49,147,155.48 2,982,292,413.67 39,979,444,469.37 125,577,843.83 60,814,437,452.17
Prior period
In RMB Yuan
Prior period
Equity attributable to owners
Items Less: Other Minority
Special Total equity
Share capital Capital reserves Treasury comprehensiv Surplus reserve Retained earnings interest
reserve
shares e income
I. At end of last year 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 70,114,229.66 53,480,307,465.75
II. At beginning of year 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 70,114,229.66 53,480,307,465.75
III. Changes during the
76,195,400.00 538,440,967.78 21,820,284.63 36,025,649.05 63,001,848.06 75,736,080.35 811,220,229.87
year
1.Total comprehensive
21,820,284.63 1,729,245,208.60 75,736,080.35 1,826,801,573.58
income
2. Capital contributed by
owners and capital 76,195,400.00 538,440,967.78 614,636,367.78
decreases
The amount of
share-based payment
76,195,400.00 538,440,967.78 614,636,367.78
included in owner's
equity
3. Distribution of profit (1,666,243,360.54) (1,666,243,360.54)
Distribution to
(1,666,243,360.54) (1,666,243,360.54)
owners
4. Special reserves 36,025,649.05 36,025,649.05
(1) Pick-up in
61,973,559.99 61,973,559.99
current period
(2) Used in current
(25,947,910.94) (25,947,910.94)
period
IV. At end of current
5,439,591,574.00 11,469,222,886.42 100,241,005.41 76,873,092.46 2,681,698,087.00 34,378,050,740.32 145,850,310.01 54,291,527,695.62
period
10
8. Statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Items Other
Less: Treasury
Share capital Capital reserves comprehensive Special reserve Surplus reserve Retained earnings Total equity
shares
income
I. At end of last year 7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
II. At beginning of year 7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
III. Changes during the
2,289,646,020.00 (1,433,769,009.30) 146,228.18 8,998,316.80 2,280,296,154.31 3,145,317,709.99
year
1.Total comprehensive
146,228.18 4,179,388,048.25 4,179,534,276.43
income
2. Capital contributed by
owners and capital 855,877,010.70 855,877,010.70
decreases
(1) The amount of
share-based payment 192,310,900.00 192,310,900.00
included in owner's equity
(2) Others 663,566,110.70 663,566,110.70
3. Distribution of profit (1,778,856,191.54) (1,778,856,191.54)
Distribution to owners (1,778,856,191.54) (1,778,856,191.54)
4.Internal carry forward of
2,289,646,020.00 (2,289,646,020.00)
owner's equity
Capital reserve
converted into capital (or 2,289,646,020.00 (2,289,646,020.00)
share capital)
5. Special reserves 8,998,316.80 8,998,316.80
(1) Pick-up in current
30,492,980.10 30,492,980.10
period
(2) Used in current
(21,494,663.30) (21,494,663.30)
period
6.Disposal of subsidiaries (120,235,702.40) (120,235,702.40)
IV. At end of current period 9,921,799,422.00 7,859,296,325.61 655,812,327.60 166,197,564.29 16,551,301.25 2,982,292,413.67 39,168,038,091.78 59,458,362,791.00
11
Prior period
In RMB Yuan
Prior period
Items Less: Other
Share capital Capital reserves Treasury comprehensive Special reserve Surplus reserve Retained earnings Total equity
shares income
I. At end of last year 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
II. At beginning of year 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
III. Changes during the
76,195,400.00 538,440,967.78 8,974,402.20 (280,174,640.22) 343,436,129.76
year
1.Total comprehensive
1,386,068,720.32 1,386,068,720.32
income
2. Capital contributed by
owners and capital 76,195,400.00 538,440,967.78 614,636,367.78
decreases
The amount of
share-based payment
76,195,400.00 538,440,967.78 614,636,367.78
included in owner's
equity
3. Distribution of profit (1,666,243,360.54) (1,666,243,360.54)
Distribution to
(1,666,243,360.54) (1,666,243,360.54)
owners
4. Special reserves 8,974,402.20 8,974,402.20
(1) Pick-up in
26,035,435.80 26,035,435.80
current period
(2) Used in current
(17,061,033.60) (17,061,033.60)
period
IV. At end of current
5,439,591,574.00 10,979,337,870.30 159,954,052.00 16,479,840.77 2,681,698,087.00 35,568,461,717.73 54,845,523,141.80
period
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III. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a company limited by shares registered
in Chongqing, People’s Republic of China. It was established on 31 October 1996 with an indefinite business period. The ordinary A
shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the Shenzhen
Stock Exchange. The company is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China, and its office address
is T2 Building, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing, China.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,
2022, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “China
Changan”) and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. held a total of ordinary shares of the company
2,063,588,975 shares with an equity ratio of 20.80%. China South Industries Group Co., Ltd. (hereinafter referred to as “China South
Group”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries International Holdings (Hong Kong)
Company Limited, hold 1,921,622,884 ordinary shares of the company, with a 19.37% shareholding ratio. China Changan and China
South Group holds ordinary shares 3,985,211,859 in total with a shareholding ratio of 40.17%.
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.
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 VIII.
IV. 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.
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies and accounting
estimates, mainly reflected in provision of accounts receivables, inventory valuation, depreciation of fixed assets, intangible assets
amortization, condition of capitalization of research and development expense and revenue recognition and measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the company on 30 June 2022 and the financial results and
the cash flows in the half year of 2022 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
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Business combinations are classified into business combinations involving entities under common control and business combinations
involving entities not under common control.
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.
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.
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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.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term, highly
liquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency
amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate
quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions
and exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition of
fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost
remain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional
currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange
rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current
income or other comprehensive income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies are
translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance
sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling
at the transaction dates; income and expense in income statement are translated into Renminbi average exchange rate of the period in
which the transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion,
the spot exchange rate on the date of cash flow shall be adopted for conversion); total difference between translated assets and translated
liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation
difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the
settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing
on the transaction month during which the cash flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt this
exchange rate for conversion, the spot exchange rate on the date of cash flow shall be adopted for conversion). The amount of the effect
on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement.
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:
15
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially
all the risks and rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a
new liability, and the difference between the respective carrying amounts is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular way
purchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulation
or convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the
Group’s business model for managing them: financial assets at fair value through profit or loss, financial assets at amortized cost and
financial assets at fair value through other comprehensive income. All affected related financial assets will be reclassified only if the
Group changes its business model for managing financial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale of
goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical
expedient of not adjusting the effect of a significant financing component due within one year, are initially measured at the transaction
price.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss, and transaction
costs relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within a
business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are recognized in
profit or loss when the asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. Interest income is recognized using the effective interest method. The interest income, impairment
losses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in other
comprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycled
to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated at
fair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly recovered
as part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other comprehensive
income,
and no provision for impairment is made. When the financial asset is derecognized, the accumulated gains or losses previously included
in other comprehensive income are transferred from other comprehensive income to retained earnings.
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.
16
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, other financial
liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss,
and transaction costs relating to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fair
value with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit or
loss are recognized in profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented in other
comprehensive income with no subsequent reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial assets, measured at amortized cost and
contract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components, the Group uses a simplified measurement
method to measure the loss provision based on the expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group assesses on each balance sheet date
whether its credit risk has not increased significantly since initial recognition, it is in the first stage. The Group measures the loss
provision based on the amount equivalent to the expected credit loss in the next 12 months, and calculates the interest income based
on the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yet
suffered credit impairment, it is in the second at this stage, the Group measures the loss provision based on the amount equivalent to
the expected credit loss for the entire duration, and calculates the interest income based on the book balance and the actual interest rate;
If credit impairment occurs after initial recognition, it is in the third stage. The amount of expected credit losses is measured over the
entire duration of the loss allowance, and interest income is calculated based on amortized cost and effective interest rate. For financial
instruments with low credit risk on the balance sheet date, the Group assumes that their credit risk has not increased significantly since
initial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group has
considered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable and
other receivables based on the ageing combination.
Please refer to Note VII,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.
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
17
retained control, it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial asset
and recognizes an associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-value
consumables.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costs
incurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination of
actual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizable
value, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for the inventory have
disappeared and made the net realizable value higher than their book value, the amount of the write-down should be reversed, to the
extent of the amount of the provision for the inventory, and the reversed amount should be recognized in the income statement for the
current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according
to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision for
loss on decline in value of inventories should be made by category.
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.
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.
18
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.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall
be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement of
the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would be
required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the
equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other comprehensive
income and profit distribution, the investing party shall be transferred to the income statement for the current period. If the remaining
equities still be measured under the equity method, accumulative change previously recorded in other comprehensive income shall be
transferred to current profit or loss, in measurement on the same basis as the invested entity had directly disposed of the assets or
liabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement on
settlement of the equity investment on the disposal proportion.
12. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land use
right which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an
investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate are
likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be included
in the current profits and losses upon occurrence.
The Group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under
straight-line method.
13. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the
cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be
included in the cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall be derecognized.
Otherwise, such expenditure shall be recognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price,
relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such as delivery
and handling costs, installation costs and other surcharges.
Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation rates
19
for each category of fixed assets are as follows:
Category Deprecation period Residual rate (%) Yearly deprecation rate (%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the
end of each year and makes adjustments if necessary.
14. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessary
construction expenditure incurred during the construction period, borrowing costs that should be capitalized before the construction
reaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
15. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costs
include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the
arrangement of borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized,
otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of
property, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of
sale.
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized
in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred
on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or
any investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by
applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over
and above the amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than procedures
necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, the
capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and
charged to the income statement of the current period, till the construction or manufacture of the assets resumes.
16. Right-of-use assets
The Group's right-of-use assets are mainly buildings.
At the commencement date of the lease period, the Group recognizes its right to use the leased assets during the lease period as a right-
of-use asset, including: the initial measured amount of the lease liability; the amount of lease payments paid on or before the start date
of the lease period, in addition, the relevant amount of lease incentive should be deducted; Initial direct expenses incurred by the lessee;
the estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where the leased assets are
located, or restoring the leased assets to the state agreed in the lease terms. the Group adopts the average age method to depreciate the
20
assets of the right of use. If it can be reasonably determined that the ownership of the leased asset is obtained at the expiration of the
lease term, the Group adopts depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine
that the ownership of the leased asset can be obtained at the expiration of the lease term, the Group adopts depreciation within the
shorter of the lease term and the remaining service life of the leased asset.
When the Group remeasures the lease liability according to the present value of the changed lease payment and adjusts the book value
of the right of use asset, if the carrying amount of the right-of-use assets has been reduced to zero but the lease liabilities still need to
be further reduced, the Group will include the remaining amount in the profit or loss of the current period.
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and
the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in
a business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economic
benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period over
which the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
Patent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect
to self-developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assets separately.
As to the purchased properties, if the reasonable allocation of outlays cannot be made between land and buildings, all assets purchased
will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the
estimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortization
method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its
carrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with an
indefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events and
circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has
finite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish
intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for
intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the
products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible
assets will be used internally; (d) it is able to finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures of the
intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensed
in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has been determined, in
which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval
21
of management. The expenditures incurred before project-determination stage is charged to the current income, otherwise it is recorded
as development cost.
19. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, contract assets, deferred income taxes, and
financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists that
an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwill arising
from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the end of every
year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not ready for its
intended use is tested for impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected
to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the
recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs.
Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows
from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to the
recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the
current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on a reasonable
basis, to related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the related sets of asset
groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the
synergies of the business combination and shall not be larger than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication of
impairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment,
i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any.
Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (including
the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable
amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of the
impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset
groups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the
goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
20. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paid
and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expected
beneficial period and are presented at actual expenditure net of accumulated amortization.
21. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for services
provided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post-
employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the family member
of deceased employee and other beneficiaries are also employee compensation.
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)
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The employees of the Group participate in pension insurance, which is managed by local government and the relevant expenditure, is
recognized, when incurred, in the costs of relevant assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. The
benefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit
actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognized immediately in the consolidated statement of financial
position with a corresponding debit or credit to retained profits through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that the
Group recognizes restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the following
changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function:
service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; net
interest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when the
Group recognizes restructuring costs involving the payment of termination benefits.
22. Lease liabilities
At the commencement date of the lease period, the Group recognizes the present value of the outstanding lease payments as a lease
liability, excluding short-term leases and leases of low-value assets. When calculating the present value of the lease payment, the Group
uses the lease implied rate as the discount rate, and if the lease implied interest rate cannot be determined, the lessee incremental
borrowing rate is used as the discount rate. The Group calculates the interest expense of the lease liability in each period of the lease
term according to the fixed periodic interest rate and records it into the current profit and loss, unless otherwise specified, it is included
into the cost of relevant assets. Variable lease payments that are not included in the measurement of lease liabilities are included in the
profit or loss of the current period when actually incurred, unless otherwise specified to be included in the cost of the underlying assets.
After the commencement date of the lease period, the Group remeasures the lease liability against the present value of the changed
lease payment amount when there is a change in the amount of substantial fixed payments, a change in the amount expected to pay due
to the residual value of the guarantee, a change in the index or ratio used to determine the amount of the lease payment, the assessment
of the purchase option, the renewal option or the option to terminate the lease.
23. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied,
except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under common
control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of
relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of money
relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective
evidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted according to the best
estimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control are
measured at fair value upon initial recognition. After initial recognition, the balance of the amount recognized according to the estimated
liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognition
23
principle is subsequently measured at the higher of the two.
24. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-
settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments as
consideration for settlement.
An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity
instruments granted to the employees. If such equity-settled share-based payment could vest immediately, related costs or expenses at
an amount equal to the fair value on the grant date are recognized, with a corresponding increase in capital reserves; if such equity-
settled share-based payment could not vest until the completion of services for a vesting period, or until the achievement of a specified
performance condition, the Group at each balance sheet date during the vesting period recognizes the services received for the current
period as related costs and expenses, with a corresponding increase in capital reserves, at an amount equal to the fair value of the equity
instruments at the grant date, based on the best estimate of the number of equity instruments expected to vest. The fair value is
determined using the closing price of the company's shares on the grant date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not been met, no expense is
recognized. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whether
the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an expense is recognized as if the terms had not
been modified. In addition, an expense is recognized for any modification that increases the total fair value of the share-based
payment or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not
yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of
either the Group or the employee are not met. However, if a new award is substituted for the cancelled award and is designated as a
replacement on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award.
25. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtains control
of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods,
transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods, the
Group usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators, which
include: a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transfer of legal
title to goods, the transfer of physical possession of goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customer
obtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract,
and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performance
obligation performed within a period, and recognizes the revenue according to the performance progress, unless the performance
progress cannot be reasonably determined. In accordance with the output method, the Group determines the progress of the performance
of the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined,
if the cost incurred by the Group is expected to be compensated, the revenue will be recognized according to the amount of the cost
incurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming variable consideration. The Group
determines the best estimate of the variable consideration based on the expected value or the most likely amount, but the transaction
24
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 V, 23. For the service quality assurance that provides a separate service in addition to the established standards
to ensure that the goods sold meet the established standards, the Group regards it as a single performance obligation, based on the
stand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion, part of the transaction
price is allocated to service quality assurance, and revenue is recognized when the customer obtains control of the service. When
assessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet the established
standards, the Group considers whether the quality assurance is a legal requirement, the quality assurance period, and the nature of the
Group's commitment to perform tasks.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to independently
determine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods to
the customers, so the Group is the main responsible person, and recognize revenue based on the total consideration received or
receivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to be
charged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable to
other related parties, or based on the established commission amount or proportions, etc.
26. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations
and customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to customers, and this right depends on
factors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the contract assets of the Group refer to Note
III, 9.
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable from
customers, such as the payment received by companies before the transfer of promised goods or services.
27. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached to
the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants are
accounted for at fair value. If there is no reliable fair value available, the grants are accounted for a nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall
be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall
be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct
the long-term assets shall be recognized as the government grant related to assets.
The Group uses the net method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income
and shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant cost
expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged to
the profit and loss account in the current period or used to write down the relevant cost.
25
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.
28. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the income
statement for the current period, except to the extent that the tax arises from a business combination or if it relates to a transaction or
event which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to be paid (or recovered)
according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, and
temporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for tax
purposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability
in a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time of
the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in jointly-
controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, to
the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets and
deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheet
date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot
be generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it is probable
that sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable that sufficient
taxable income can be generated, the amount of such reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred tax liabilities are listed at the net amount
after offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred tax
assets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on the
same taxable subject or different taxpaying subjects However, in the future, during each period when the significant deferred tax assets
and deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and current income tax
liabilities with net amount or obtain assets and pay off debts at the same time.
29. Leases
Identification of leases
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At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout the
period of use, the customer has both of the right to obtain substantially all of the economic benefits from use of the identified asset and
the right to direct the use of the identified asset.
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use an underlying asset. If the Group has
an option to extend the lease, that is, the Group has the right to extend the lease, and is reasonably certain to exercise that option, the
lease term also includes periods covered by an option to extend the lease. If the Group has an option to terminate the lease, that is,
the Group has the right to terminate the lease, but is reasonably certain not to exercise that option, the lease term includes periods
covered by an option to terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension option,
purchase option, or not to exercise a termination option, upon the occurrence of either a significant event or a significant change in the
circumstances that is within the control of the Group and affects whether the Group is reasonably certain to exercise an option not
previously included in its determination of the lease term.
As lessee
The Group's general accounting treatment as a lessee is provided in Notes III, 16 and 22.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12 months or less, and does not contains
any purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value asset
lease.
As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying
asset, except that a lease is classified as an operating lease at the inception date.
The Group recording the operating lease as a lessor
Rental income under an operating lease is recognized on a straight-line basis over the lease term, through profit or loss. Variable lease
payments that are not included in the measurement of lease receivables are charged to profit or loss as incurred.
The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering any
prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease.
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An operating lease is a
lease other than a finance lease.
30. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
31. 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.
32. 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.
27
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.
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.
33. 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:
(1) 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 arangement 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.
(2) 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.
28
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:
(1) Impairment of financial instruments and contract assets
The Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets. 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) Lessee Incremental Borrowing Rate
For leases for which the interest rate implicit in the lease cannot be determined, the Group uses the lessee's incremental borrowing rate
as the discount rate to calculate the present value of lease payments. When determining the incremental borrowing rate, the Group
takes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economic
environment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business to
obtain the applicable incremental borrowing rate.
29
34. Changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable √ Not applicable
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
VI. 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 construction tax - 5% or 7% of the turnover tax paid is calculated and paid.
Educational surcharge - 3% of the actual turnover tax paid is calculated and paid.
Local educational surcharge - 2% of the turnover tax actually paid is calculated and paid.
Corporate income tax - Corporate income tax is paid at 15%, 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 (2021-2023), and the Company’s subsidiaries including Hebei Changan Automobile
Company Limited (2020-2022), Baoding Changan Bus Manufacturing Company Limited (2020-2022).
According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the Western
Region jointly issued by the Ministry of Finance, the State Administration of Taxation and the National Development and Reform
Commission, from January 1, 2021 to December 31, 2030, enterprise income tax will be levied at a reduced rate of 15% for encouraged
industrial enterprises located in the western region. Chongqing Changan Automobile International Sales Service Co., Ltd., Chongqing
Changan Special Purpose Vehicle Co., Ltd., Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing Lingyao
Automobile Co., Ltd. and Chongqing Chehemei Technology Co., Ltd., subsidiaries of the Company, meet the above requirements and
are subject to corporate income tax calculated at a 15% corporate income tax rate.
According to the Announcement on Enterprise Income Tax Policies on Promoting the High-quality Development of the Integrated
Circuit Industry and the Software Industry jointly issued by the Ministry of Finance, the State Administration of Taxation, the
Development and Reform Commission and the Ministry of Industry and Information Technology, software enterprises encouraged by
the state are exempt from enterprise income tax from the first to second year from the year of profit, and from the third to the fifth year,
the statutory tax rate of 25% is halved. Chongqing Changan Automobile Software Technology Co., Ltd., a subsidiary of the Company,
meets the above conditions, and this year is the third profit year and the statutory tax rate of 25% is halved.
VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
Item Ending balance Beginning balance
Cash 6,321.16 36,881.35
30
Cash at bank 51,032,261,166.99 49,517,879,953.64
Other cash 2,389,515,751.70 2,458,325,314.38
Total 53,421,783,239.85 51,976,242,149.37
As at 30 June 2022, the book value of restricted cash and cash equivalents is RMB 1,451,938,642.9, which was mainly restricted for
the issuance of acceptance bill (December 31, 2021: RMB 2,458,325,314.38).
As at 30 June 2022, the cash at bank oversea is equivalent to RMB 235,680,963.02 (December 31, 2021: RMB 300,347,944.86).
As of June 30, 2022, the monetary capital deposited by the group in the financial company of the related party was RMB
27,362,815,259.42 (December 31, 2021: RMB 31,652,980,551.77). See note XII and 5 for details.
The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank call
deposits and time deposits can be withdrawn at any time according to the group's cash demand, and interest income is obtained
according to the corresponding bank deposit interest rate.
2. Transactional financial assets
In RMB Yuan
Item Ending balance Beginning balance
Equity instrument investment 302,911,174.57 177,902,700.00
Others 3,056,400.00 17,895,600.00
Total 305,967,574.57 195,798,300.00
As of June 30, 2022, the trading financial assets measured at fair value are 33.63 million ordinary shares of Southwest Securities Co.,
Ltd. held by the group (December 31, 2021: 33.63 million shares), and 26.05 million restricted shares held by the group in China
Automobile Research automobile testing ground Co., Ltd. (December 31, 2021: Nil).
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Item Ending balance Beginning balance
Commercial acceptance bill 15,064,718,344.41 17,187,270,560.03
Bank acceptance bill 6,114,186,788.25 7,080,362,856.62
Total 21,178,905,132.66 24,267,633,416.65
(2)Notes receivable pledged
In RMB Yuan
Item Pledged amount
Commercial acceptance bill 6,334,050,284.91
Bank acceptance bill 1,924,405,539.88
Total 8,258,455,824.79
As of June 30, 2022, the bills receivable of the above amount had been pledged for issuing bills payable.
(3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period
In RMB Yuan
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Commercial acceptance bill 1,836,816,065.23 -
Bank acceptance bill 17,900,000.00 -
31
Total 1,854,716,065.23 -
(4)At the end of the period, the company transferred the bills to accounts receivable due to the drawer's non performance
As at 30 June 2022, there was no note receivables converted to accounts receivable due to the inability of the drawer to perform the
contract. (As at 31 December 2021: Nil)
4. Accounts receivable
(1)Aging analysis of the accounts receivable
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 3,520,437,677.86 1,605,244,476.97
1 to 2 years 45,103,667.98 28,484,908.94
2 to 3 years 99,726,316.58 116,846,682.50
Over 3 years 152,921,931.80 140,125,844.08
Total 3,818,189,594.22 1,890,701,912.49
Less: Provision (221,187,483.68) (215,274,377.62)
Total 3,597,002,110.54 1,675,427,534.87
(2)The movements in provision for impairment of accounts receivable are as follows:
In RMB Yuan
Change amount in the current period
Category Beginning balance Withdrawal or Ending balance
Provision Write-off
reversal
2022.6.30 215,274,377.62 14,793,773.74 3,880,667.68 5,000,000.00 221,187,483.68
2021.12.31 189,491,038.22 31,121,598.40 3,933,948.00 1,404,311.00 215,274,377.62
(3)Analysis of accounts receivable by category
In RMB Yuan
Ending balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 2,984,570,203.17 78.17 154,440,110.83 5.17 2,830,130,092.34
Accounts receivable analyzed as
833,619,391.05 21.83 66,747,372.85 8.01 766,872,018.20
groups for provision
Total 3,818,189,594.22 100.00 221,187,483.68 5.79 3,597,002,110.54
Beginning balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 1,116,005,410.48 59.03 161,822,950.43 14.50 954,182,460.05
Accounts receivable analyzed as
774,696,502.01 40.97 53,451,427.19 6.90 721,245,074.82
groups for provision
Total 1,890,701,912.49 100.00 215,274,377.62 11.39 1,675,427,534.87
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
In RMB Yuan
32
Ending balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 638,311,708.75 0.11 678,498.74
1 to 2 years 6,032,150.00 8.61 519,124.72
2 to 3 years 67,434,401.51 17.55 11,832,231.58
Over 3 years 121,841,130.79 44.09 53,717,517.81
Total 833,619,391.05 8.01 66,747,372.85
Beginning balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 572,882,251.72 0.13 759,937.11
1 to 2 years 28,352,246.25 8.57 2,429,794.47
2 to 3 years 92,634,562.67 12.47 11,548,535.79
Over 3 years 80,827,441.37 47.90 38,713,159.82
Total 774,696,502.01 6.90 53,451,427.19
(5) Accounts receivable with top five ending balances collected by debtors
As at June 30, 2022, accounts receivable from Top 5 clients amounted to RMB 2,159,307,798.64, accounted for 56.55% of the total
accounts receivable (December 31, 2021: RMB 924,920,983.66, accounted for 48.92% of the total amount).
(6) Accounts receivable derecognized due to transfer of financial assets
As of June 30, 2022, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31, 2021:
Nil).
5. Prepayments
In RMB Yuan
Ending balance Beginning balance
Aging
Amount % Amount %
Within 1 year 3,849,485,631.49 99.62 3,223,697,503.44 99.46
1 to 2 years 10,246,950.08 0.27 12,192,890.74 0.38
2 to 3 years 1,748,527.01 0.05 3,934,439.12 0.12
Over 3 years 2,500,285.31 0.06 1,423,997.98 0.04
Total 3,863,981,393.89 100.00 3,241,248,831.28 100.00
As at 30 June 2022, the total amount of the top five prepayments was RMB 1,474,271,190.88, accounting for 38.15% of the total
amount of prepayments (2021: RMB 1,151,298,912.20, accounting for 35.52%).
6. Other receivables
In RMB Yuan
Item Ending balance Beginning balance
Dividend receivable 255,356,145.11
Other receivables 254,258,702.75 632,122,942.37
Total 509,614,847.86 632,122,942.37
(1)Dividend receivable
33
In RMB Yuan
Project (or investee) Ending balance Beginning balance
Weaponry Group Finance Co., Ltd 143,737,428.00
China Ordnance Equipment Group Finance Leasing Co., Ltd 411,666.67
Guolian automobile power battery Research Institute Co., Ltd 73,034.00
Chang'an Auto Finance Co., Ltd 66,943,616.44
Chang'an Mazda Engine Co., Ltd 41,500,000.00
Southwest Securities Co., Ltd 2,690,400.00
Total 255,356,145.11
(2)Other receivables
1) Aging analysis of other receivables
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 178,523,769.16 617,564,020.74
1 to 2 years 64,284,604.28 1,762,913.64
2 to 3 years 1,981,904.94 2,737,081.98
Over 3 years 16,796,244.89 17,525,165.97
Total 261,586,523.27 639,589,182.33
Less: Provision (7,327,820.52) (7,466,239.96)
Total 254,258,702.75 632,122,942.37
2) Other receivables are classified by nature
In RMB Yuan
Nature Ending balance Beginning balance
Subsidies for new energy vehicles 50,998,795.00 409,468,872.96
Bond 18,205,007.69 84,465,512.53
Petty cash 37,717,721.77 23,921,846.41
Other 147,337,178.29 114,266,710.47
Total 254,258,702.75 632,122,942.37
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected
credit losses for the entire duration
In RMB Yuan
Change amount in the current period
Beginning
Category Withdrawal or Ending balance
balance Provision Write-off Other
reversal
2022.6.30 7,466,239.96 64,762.57 203,182.01 7,327,820.52
2021.12.31 11,821,252.79 68,455.17 4,205,241.00 218,227.00 7,466,239.96
4) Other receivables with top five ending balances collected by debtors
In RMB Yuan
Proportion in Ending
ending balance of balance of
Name Nature Ending balance Aging
other receivables bad debt
(%) provision
Subsidies for new
First 50,998,795.00 Within 1 year 19.50
energy vehicles
34
Second Disposal of assets 48,350,040.00 1 to 2 years 18.48
Third Bond 15,900,000.00 Within 1 year 6.08
Fourth Electricity fee 10,815,169.74 Within 1 year 4.13
Fifth Gas fee 6,143,019.88 Within 1 year 2.35
Total 132,207,024.62 - 50.54
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2022, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2021: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
Ending balance Beginning balance
Provision for Provision for
impairment of impairment of
inventories or inventories or
Item provision for provision for
Balance Net value Balance Net value
impairment of impairment of
contract contract
performance performance
costs costs
Raw materials 1,251,525,114.27 276,722,893.12 974,802,221.15 814,952,436.64 313,721,126.17 501,231,310.47
Work in transit 107,432,641.94 - 107,432,641.94 355,550,319.54 - 355,550,319.54
Work in
2,609,892,441.73 60,788,411.49 2,549,104,030.24 2,759,775,787.47 72,995,707.72 2,686,780,079.75
progress
Commodity
3,438,230,207.70 76,638,247.43 3,361,591,960.27 3,420,908,192.91 166,294,516.69 3,254,613,676.22
stock
Revolving
- - - 29,535,580.80 - 29,535,580.80
materials
Spare parts 31,994,939.02 - 31,994,939.02 25,163,453.81 - 25,163,453.81
Total 7,439,075,344.66 414,149,552.04 7,024,925,792.62 7,405,885,771.17 553,011,350.58 6,852,874,420.59
(2) Provision for inventory
In RMB Yuan
Increase Decrease
Item Beginning balance Ending balance
Provision Other Reversal Write-off
Raw materials 313,721,126.17 10,874,321.00 82,454.04 47,790,100.01 276,722,893.12
Work in
72,995,707.72 48,387,421.87 320,089.45 60,274,628.65 60,788,411.49
progress
Commodity
166,294,516.69 17,364,083.57 4,091,297.35 102,929,055.48 76,638,247.43
stock
Total 553,011,350.58 76,625,826.44 4,493,840.84 210,993,784.14 414,149,552.04
8. Contract assets
In RMB Yuan
Ending balance Beginning balance
Item Provision for Provision for
Balance Net value Balance Net value
impairment impairment
Contract
1,208,077,390.13 171,319,492.50 1,036,757,897.63 1,320,954,229.34 169,661,981.98 1,151,292,247.36
assets
Total 1,208,077,390.13 171,319,492.50 1,036,757,897.63 1,320,954,229.34 169,661,981.98 1,151,292,247.36
35
Current contract assets provision for impairment：
In RMB Yuan
Beginning balance Provision Turn back Resale Ending balance
2022.6.30 169,661,981.98 1,807,510.52 150,000.00 - 171,319,492.50
2021.12.31 134,148,932.88 49,094,830.06 7,431,781.00 6,149,999.96 169,661,981.98
9. Other current assets
In RMB Yuan
Item Ending balance Beginning balance
Accrual input tax 633,540,441.95 1,140,996,871.24
Prepaid taxes 139,504,217.70 3,078,565.10
Others 9,626,784.09 3,723,435.08
Total 782,671,443.74 1,147,798,871.42
36
10. Long-term equity investments
In RMB Yuan
Increase / decrease
Other Provision
Investment Declaration of
Investee Beginning balance comprehensive Ending balance ending
Addition income under cash dividends or balance
income
equity method profits
adjustment
I. Joint Venture
Changan Ford Automobile Co., Ltd. 2,934,876,043.99 522,860,908.17 3,457,736,952.16
Changan Mazda Automobile Co., Ltd. 1,867,086,106.67 236,050,510.98 (381,500,000.00) 1,721,636,617.65
Changan Mazda Engine Co., Ltd. 835,121,564.38 15,784,275.65 (41,500,000.00) 809,405,840.03
Nanchang Jiangling Holding Co., Ltd. 1,630,596,420.97 88,264,113.54 1,718,860,534.51
Subtotal 7,267,680,136.01 862,959,808.34 (423,000,000.00) 7,707,639,944.35
II. Associates
Chongqing Changan Kuayue Automobile Co.,
242,792,196.86 (20,594,524.55) 222,197,672.31
Ltd.
Changan Automobile Financing Co.,Ltd 2,520,349,332.44 152,764,747.43 (66,943,616.44) 2,606,170,463.43
Hainan Anxinxing Information Technology Co.,
368,900.00 (368,900.00)
Ltd. (note 1)
Nanjing Chelai Travel Technology Co., Ltd. 866,888.90 (97,213.22) 769,675.68
Hunan Guoxin Semiconductor Technology Co.,
25,285,116.95 (552,714.09) 24,732,402.86
Ltd.
Nanjing Leading Equity Investment
2,424,143,949.52 (42,899.72) 2,424,101,049.80
Management Co., Ltd. (Limited Partnership)
Nanjing Leading Equity Investment Partnership 1,133,065.60 (9,266.61) 1,123,798.99
Chongqing Changan New Energy Vehicles
425,266,071.28 2,023,566,110.70 (730,298,424.67) 1,718,533,757.31
Technology Co., Ltd.
Zhongqi Chuangzhi Technology Co., Ltd. 190,534,997.15 (9,012,542.48) 181,522,454.67
Chongqing Changxin Zhiqi Private Equity
Investment Fund Partnership (Limited 25,007,587.62 (5,754.39) 25,001,833.23
Partnership)
Anhe (Chongqing) Equity Investment Fund
2,199,216.74 (222,996.33) 1,976,220.41
Management Co., Ltd.
37
Hangzhou Chelizi Intelligent Technology Co.,
9,456,236.58 (559,728.73) 8,896,507.85
Ltd.
Master Changan Automobile Co., Ltd. 40,167,274.82 (2,584,892.67) 37,582,382.15
Jiangling Holding Co., Ltd. 70,492,790.08 (41,202,595.77) 29,290,194.31
AVATR. Co., Ltd. (note 2) 2,446,278,194.01 (131,350,496.79) 146,228.18 2,315,073,925.40
Chongqing Changan Kuayue Automobile Sales
Co., Ltd. (note 1)
Beijing Fang’an cresent taxi Co., Ltd. (note 1)
Chongqing Wutong Chelian Technology Co.,
Ltd. (note 1)
Subtotal 5,977,694,724.54 4,470,213,204.71 (784,138,202.59) 146,228.18 (66,943,616.44) 9,596,972,338.40
Total 13,245,374,860.55 4,470,213,204.71 78,821,605.75 146,228.18 (489,943,616.44) 17,304,612,282.75
Note 1: On 2022 June 30, the Group of Chongqing Changan Kuayue Automobile Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd., Chongqing Wutong Chelian Technology Co., Ltd. and Hainan
Anxinxing Information 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 March 2022, AVATR. Co., Ltd., a subsidiary of the company, completed capital increase and share expansion and introduced new investors. After the capital increase was completed,
AVATR. Co., Ltd. changed from a subsidiary to an associate enterprise.
38
11. Investment in other equity instruments
In RMB Yuan
Accumulative Reason for being
changes in fair designated
value included in as fair value
Item Fair value Dividends Income
other through other
comprehensive comprehensive
income income
Unlisted equity
Corun Hybrid Power Technology Co. Ltd 5,959,600.00 205,959,600.00
instruments
China South Industry Group Finance Co., Unlisted equity
174,979,200.00 332,000,000.00 143,737,428.00
Ltd. instruments
Guoqi (Beijing) Intelligent Network
Unlisted equity
Association Automotive Research Institute 100,000.00 50,100,000.00
instruments
Co., Ltd.
Guoqi Automobile Power Cell Research Unlisted equity
6,700,000.00 46,700,000.00 73,034.00
Co., Ltd. instruments
China South Industry Group Financial Unlisted equity
12,098,000.00 42,650,000.00 411,666.67
Leasing Co., Ltd. instruments
Unlisted equity
Zhong Fa Lian Investment Co., Ltd. 21,000,000.00
instruments
CAERI(Beijing) automobile Lightweight
Technology Research Unlisted equity
3,000,000.00
instruments
Institution Co., Ltd.
Unlisted equity
Sichuan Glass Co., Ltd.
instruments
Total 199,836,800.00 701,409,600.00 144,222,128.67
12. Investment property
Cost Model
In RMB Yuan
Item Buildings Total
I. Original cost
1. Opening balance 10,050,100.00 10,050,100.00
2. Increase in current period
3. Decrease in current period
4. Ending balance 10,050,100.00 10,050,100.00
II. Accumulated depreciationand amortization
1. Opening balance 3,400,673.40 3,400,673.40
2. Increase in current period 113,355.78 113,355.78
3. Decrease in current period
4. Ending balance 3,514,029.18 3,514,029.18
III. Net Value
1. Ending 6,536,070.82 6,536,070.82
2. Beginning 6,649,426.60 6,649,426.60
The investment property is rented to third parties in the form of operating lease.
As at 30 June 2022, there was no investment property without property certificate (As at 31 December 2021: Nil).
39
13. Fixed assets
(1) Details of fixed assets
In RMB Yuan
Item Buildings Machinery Vehicles Other Equipment Total
I. Original cost
Beginning 9,881,301,151.22 26,013,931,324.85 1,421,170,657.53 9,442,094,973.15 46,758,498,106.75
Purchase 1,027,877.86 24,462,217.92 27,079,122.51 52,569,218.29
Transfer from
Construction in 3,092,478.77 130,267,336.64 452,607,358.73 380,740,958.65 966,708,132.79
progress
Disposal 37,092,534.12 39,875,006.43 88,671,767.66 68,810,766.15 234,450,074.36
Government grants 45,824,900.00 86,596,292.00 132,421,192.00
Other decrease 12,196,144.18 7,082,213.50 433,482.76 8,540,318.14 28,252,158.58
Ending 9,836,132,829.55 26,075,878,759.48 1,698,076,473.84 9,772,563,970.02 47,382,652,032.89
II.Accumulated
depreciation
Beginning 2,830,770,398.43 14,770,986,696.00 537,352,883.68 4,988,689,213.76 23,127,799,191.87
Accrual 187,735,732.35 886,707,955.54 99,288,960.32 261,948,492.69 1,435,681,140.90
Disposal 26,061,113.31 35,323,317.76 64,225,749.84 16,129,740.61 141,739,921.52
Other decrease 205,021.23 993,150.09 1,198,171.32
Ending 2,992,445,017.47 15,622,371,333.78 572,211,072.93 5,233,514,815.75 24,420,542,239.93
III.Impairment
Provision
Beginning 99,421,052.16 1,772,417,722.74 99,933,602.55 332,966,687.27 2,304,739,064.72
Accrual 123,779,668.17 318,225.48 41,020,062.45 165,117,956.10
Disposal 147,418.54 677,471.46 16,391,541.84 4,185,694.36 21,402,126.20
Ending 99,273,633.62 1,895,519,919.45 83,860,286.19 369,801,055.36 2,448,454,894.62
IV. Net Value
Ending 6,744,414,178.46 8,557,987,506.25 1,042,005,114.72 4,169,248,098.91 20,513,654,898.34
Beginning 6,951,109,700.63 9,470,526,906.11 783,884,171.30 4,120,439,072.12 21,325,959,850.16
(2) Fixed assets that are temporarily unused
On June 30, 2022, the fixed assets with a book value of RMB 125,476,018.72 (December 31, 2021: RMB 150,232,534.30) were tem
porarily idle due to product upgrading and other reasons.
(3) The fixed assets which are rented out under operating leases
In RMB Yuan
Item Ending
Buildings 293,881,396.48
Machinery 47,076,051.90
Vehicles 1,007,156,364.29
Other Equipment 4,084,478.11
40
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Ending balance Beginning balance
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus
production 153,198,664.88 153,198,664.88 110,892,336.09 110,892,336.09
equipment
Car production
285,522,690.10 21,313,648.08 264,209,042.02 304,941,771.34 21,313,648.08 283,628,123.26
equipment
Engine plant 163,363,062.61 163,363,062.61 127,069,581.90 127,069,581.90
Vehicle
research 17,612,321.21 17,612,321.21 27,661,450.64 27,661,450.64
institution
Car production
Project of
22,273,791.97 22,273,791.97 13,073,052.88 13,073,052.88
Hefei
Changan
Light vehicle
20,953,663.84 20,953,663.84 20,953,663.84 20,953,663.84
project
Others 511,656,556.17 22,885,996.12 488,770,560.05 927,276,352.74 50,378,021.92 876,898,330.82
Total 1,174,580,750.78 44,199,644.20 1,130,381,106.58 1,531,868,209.43 71,691,670.00 1,460,176,539.43
41
(2) Movements of significant construction in progress
In RMB Yuan
The project
investments’ Progress of
Beginning Transferred to
Item Budget Addition Other deduction Ending balance proportion construction Source of funds
balance fixed assets
of budget (%)
(%)
Mini-bus
production 1,093,490,000.00 110,892,336.09 76,807,358.31 34,431,295.01 69,734.51 153,198,664.88 78.00 78.00 Self-funded
equipment
Car production Self-raised and
3,650,155,000.00 283,628,123.26 6,581,219.57 26,000,300.81 264,209,042.02 76.00 76.00 additional
equipment issuance
Self-raised and
Engine plant 4,659,071,200.00 127,069,581.90 57,103,331.39 20,809,850.68 163,363,062.61 77.00 77.00 additional
issuance
Vehicle research
2,099,060,000.00 27,661,450.64 18,263,706.59 28,312,836.02 17,612,321.21 86.00 86.00 Self-funded
institution
Car production Self-raised and
project of 3,949,800,000.00 13,073,052.88 9,200,739.09 22,273,791.97 87.00 87.00 additional
Hefei Changan issuance
Light vehicle
520,083,400.00 20,953,663.84 20,953,663.84 68.00 68.00 Self-funded
project
Car-sharing
721,192,899.46 451,943,328.88 45,371,719.67 223,877,850.91 Self-funded
project
Others 155,705,431.36 619,556,531.14 405,210,521.39 105,158,731.97 264,892,709.14 Self-funded
Total 1,460,176,539.43 787,512,886.09 966,708,132.79 150,600,186.15 1,130,381,106.58
42
(3) The movement of impairment for construction in progress is as follows:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
June 30, 2022 71,691,670.00 27,492,025.80 44,199,644.20
December 31, 2021 71,352,959.12 558,034.00 219,323.12 71,691,670.00
15. Right-of-use assets
In RMB Yuan
Item Buildings Total
I. Original cost
1. Beginning 92,864,546.90 92,864,546.90
2. Purchase 77,438,068.15 77,438,068.15
3. Disposal 2,689,483.42 2,689,483.42
4. Other deduction 78,792,400.21 78,792,400.21
5. Ending 88,820,731.42 88,820,731.42
II. Accumulated depreciation
1. Beginning 26,551,483.92 26,551,483.92
2. Purchase 16,605,322.98 16,605,322.98
3. Disposal 582,721.40 582,721.40
4. Other deduction 3,770,986.88 3,770,986.88
5. Ending 38,803,098.62 38,803,098.62
III. Carrying amount
1. Ending 50,017,632.80 50,017,632.80
2. Beginning 66,313,062.98 66,313,062.98
16. Intangible assets
(1) Details of intangible assets
In RMB Yuan
Non-patent Software use Trademark use
Item Land use rights Patent Total
technology rights rights
I. Original cost
Beginning 2,284,655,025.60 6,643,349,368.90 785,360,545.01 211,864,157.55 9,925,229,097.06
Purchase 85,556,571.30 2,950,592.78 7,057,273.61 95,564,437.69
Internal
research and 441,434,828.55 441,434,828.55
development
Disposal 46,688,334.00 46,688,334.00
Ending 2,237,966,691.60 85,556,571.30 7,087,734,790.23 792,417,818.62 211,864,157.55 10,415,540,029.30
II.
Accumulated
amortization
Beginning 440,258,024.63 3,969,781,572.32 671,428,815.01 211,786,800.00 5,293,255,211.96
43
Accrual 25,049,708.12 2,851,885.71 481,902,072.11 18,236,655.74 77,357.55 528,117,679.23
Disposal 20,568,118.91 - - - 20,568,118.91
Ending 444,739,613.84 2,851,885.71 4,451,683,644.43 689,665,470.75 211,864,157.55 5,800,804,772.28
III. Impairment
provision
Beginning 222,358,304.26 23,617,923.17 245,976,227.43
Accrual 2,920,133.24 2,920,133.24
Ending 225,278,437.50 23,617,923.17 248,896,360.67
IV 、 Carrying
amount
Ending 1,793,227,077.76 82,704,685.59 2,410,772,708.30 79,134,424.70 4,365,838,896.35
Beginning 1,844,397,000.97 2,451,209,492.32 90,313,806.83 77,357.55 4,385,997,657.67
As of June 30, 2022, intangible assets formed through internal research and development accounted for 55.22% of the year-end book
value of intangible assets (December 31, 2021: 55.89%).
As of June 30, 2022, there is no land use rights that have not completed the land use right certificate (December 31, 2021: Nil).
17. Development expenditure
In RMB Yuan
Deduction
Addition
Beginning Internal Charged to
Item Recognized as income Other Ending balance
balance research and
development intangible assets Statement of the deduction
current year
Automobile
727,568,248.78 602,999,114.43 441,434,828.55 86,143,252.73 251,509,079.07 551,480,202.86
Development
Total 727,568,248.78 602,999,114.43 441,434,828.55 86,143,252.73 251,509,079.07 551,480,202.86
18. Development expenditure
(1) Original book value of goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Hebei Changan Automobile Co., Ltd 9,804,394.00 9,804,394.00
Nanjing Changan Automobile Co., Ltd
AVATR. Co., Ltd 39,078,794.37 39,078,794.37
Total 48,883,188.37 39,078,794.37 9,804,394.00
Note: The deduction of goodwill of AVATR. Co., Ltd in the current period is due to the impact of changes in the scope of consolidation
caused by the loss of control.
(2) Provision for goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Nanjing Changan Automobile Co., Ltd. 73,465,335.00 73,465,335.00
Total 73,465,335.00 73,465,335.00
44
19. Long-term deferred expenses
In RMB Yuan
Item Beginning balance Addition Deduction Other deduction Ending balance
Long-term
15,032,814.19 8,501,069.16 1,826,783.84 21,707,099.51
deferred expenses
Total 15,032,814.19 8,501,069.16 1,826,783.84 21,707,099.51
20. Deferred tax assets and liabilities
(1) Deferred income tax assets that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Assets provision 2,871,396,575.12 430,709,486.27 2,777,356,777.37 416,729,166.66
Accrued expenses and
6,989,431,192.52 1,048,414,678.88 6,824,636,821.50 1,034,344,964.94
contingent liabilities
Unpaid tech development
expense and advertisement 571,216,316.77 85,682,447.52 371,602,577.37 55,740,386.60
expense
Deferred income 2,938,710,999.31 440,806,649.89 2,897,724,045.52 434,658,606.83
Unpaid salary and bonus and
2,864,638,006.49 429,695,700.98 2,252,471,662.68 339,346,391.96
others
Total 16,235,393,090.21 2,435,308,963.54 15,123,791,884.44 2,280,819,516.99
(2) Deferred income tax liabilities that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of financial assets 392,235,421.84 58,835,313.28 366,226,945.07 54,934,041.76
Fair value adjustment of business
214,453,003.57 32,167,950.54 223,598,108.60 33,539,716.29
combination not under common control
Long-term equity investment 824,671,946.85 123,700,792.03 824,671,946.85 123,700,792.03
Other 33,336,067.93 5,000,410.19 35,116,281.93 5,267,442.29
Total 1,464,696,440.19 219,704,466.04 1,449,613,282.45 217,441,992.37
(3) Details of unrecognized deferred tax assets
In RMB Yuan
Item Ending balance Beginning balance
The deductible temporary difference 1,772,143,525.42 2,557,584,132.14
The deductible tax loss 4,693,437,982.83 7,599,963,296.27
Total 6,465,581,508.25 10,157,547,428.41
45
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.
(4) Maturity period for unrecognized deductible tax losses:
In RMB Yuan
Year Ending balance Beginning balance
2022 160,009,422.55 186,827,208.01
2023 651,217,805.08 719,486,343.29
2024 642,608,818.28 644,243,430.69
2025 662,132,493.46 804,477,322.53
2026 177,704,323.94 191,081,327.12
2027 and beyond 2,399,765,119.52 5,053,847,664.63
Total 4,693,437,982.83 7,599,963,296.27
21. Short-term loans
In RMB Yuan
Item Ending balance Beginning balance
Mortgage loans 19,000,000.00 19,000,000.00
Guaranteed loan 27,166,500.00
Total 46,166,500.00 19,000,000.00
As at 30 June 2022, there was no overdue short-term loan (as at 31 December 2021: Nil).
22. Notes payable
In RMB Yuan
Item Ending balance Beginning balance
Commercial acceptance bill 3,438,819,091.41 5,419,108,409.88
Bank acceptance bill 23,482,587,410.81 18,873,159,961.24
Total 26,921,406,502.22 24,292,268,371.12
As at 30 June 2022, there were no significant accounts payable aged over one year (as at 31 December 2021: Nil).
23. Accounts payable
In RMB Yuan
Item Ending balance Beginning balance
Accounts payable 23,994,999,761.80 23,650,604,870.98
Total 23,994,999,761.80 23,650,604,870.98
As at 30 June 2022, there were no significant accounts payable aged over one year (as at 31 December 2021: Nil).
46
24. Contract liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance payment 4,267,583,038.93 9,274,445,050.60
Advance service payment 688,487,935.99 566,064,463.79
Total 4,956,070,974.92 9,840,509,514.39
25. Payroll payable
(1) Payroll payable
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Short term salary
2,474,414,390.26 4,166,290,955.51 3,428,026,533.58 3,212,678,812.19
benefits
Defined contribution
89,216,538.26 295,145,597.47 271,516,773.31 112,845,362.42
plans
Early retirement
2,940,000.00 - 1,664,381.96 1,275,618.04
benefits
Total 2,566,570,928.52 4,461,436,552.98 3,701,207,688.85 3,326,799,792.65
(2) Short term salary benefits：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Salary, bonus, allowance
2,051,402,711.53 3,545,065,703.78 2,739,493,804.21 2,856,974,611.10
and subsidy
2. Employee benefit 50,630,435.22 143,683,960.45 192,022,028.36 2,292,367.31
3. Social insurance 33,522,353.03 226,556,597.67 206,451,388.46 53,627,562.24
Medical insurance 21,021,344.24 206,179,667.73 186,302,126.78 40,898,885.19
Industrial injury
11,118,683.26 20,113,506.84 18,503,897.89 12,728,292.21
insurance
Maternity insurance 1,382,325.53 263,423.10 1,645,363.79 384.84
4. Housing accumulation
82,772,742.30 120,578,347.77 138,180,124.15 65,170,965.92
fund
5. Labor fund and employee
256,086,148.18 118,762,733.07 146,235,575.63 228,613,305.62
education fund
6. Others 11,643,612.77 5,643,612.77 6,000,000.00
Total 2,474,414,390.26 4,166,290,955.51 3,428,026,533.58 3,212,678,812.19
(3) Defined contribution plans：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Basic retirement 79,483,988.05 285,176,572.20 262,988,606.04 101,671,954.21
47
security
2. Unemployment
9,732,550.21 9,969,025.27 8,528,167.27 11,173,408.21
insurance
Total 89,216,538.26 295,145,597.47 271,516,773.31 112,845,362.42
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.
26. Taxes payable
In RMB Yuan
Item Ending balance Beginning balance
Value-added tax 283,161,424.83 226,203,631.00
Consumption tax 313,679,284.06 677,686,833.74
Corporate income tax 21,973,424.89 105,632,071.69
City maintenance and construction tax 62,868,525.34 40,480,950.08
Others 25,810,497.92 71,309,911.01
Total 707,493,157.04 1,121,313,397.52
27. Other payables
In RMB Yuan
Item Ending balance Beginning balance
Purchase and construction of fixed assets,
828,054,799.13 949,561,307.22
intangible assets and engineering deposits
New energy subsidy collection and payment 807,637,855.00 169,127,065.00
Customer and supplier margin 755,711,023.28 614,910,836.94
Treasury stock repurchase 655,812,327.60 655,812,327.60
Advertisement fees 435,181,058.99 890,826,555.71
Storage fees and freight 381,651,926.24 159,463,618.29
Maintenance fees 206,984,685.67 212,946,188.78
Advanced receipt of land and plant disposal fees 140,000,000.00
Capital increase from third parties received in
253,750,000.00
advance by subsidiaries
Equity disposal payment 89,444,954.88 61,787,880.00
Others 815,849,609.20 594,440,565.15
Total 5,116,328,239.99 4,562,626,344.69
28. Non-current liability within 1 year
In RMB Yuan
Item Ending balance Beginning balance
Long-term loan within 1 year 654,300,000.00 354,300,000.00
Long-term payables within 1 year 213,312,142.21 154,593,759.05
48
Lease liabilities within 1 year 19,964,461.90 24,945,824.52
Total 887,576,604.11 533,839,583.57
29. Other current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Accrued commercial discount payable 3,260,659,595.98 3,367,324,452.66
Accrued transportation fee 805,314,435.84 729,390,155.06
Accrued market development expense 564,309,358.38 808,031,552.57
Accrued technology royalty 402,214,421.99 342,675,110.58
Accrued integrated services fee 79,555,300.00 79,555,300.00
Accrued labor service fee 76,656,610.57 63,197,022.32
Accrued utilities 41,279,074.15 48,068,943.51
Accrued negative points for fuel
- 33,239,495.00
consumption
Others 232,310,379.25 209,476,997.52
Total 5,462,299,176.16 5,680,959,029.22
30. Long-term Loan
In RMB Yuan
Item Ending balance Beginning balance
Credit loan 694,300,000.00 954,300,000.00
Deduction: Loan within 1 year 654,300,000.00 354,300,000.00
Net Long-term Loan 40,000,000.00 600,000,000.00
As at June 30, 2022, the interest rates of the above loans were 1.00%-3.00% (as at 31 December 2021: 1.00%-3.00%).
As at June 30, 2022, there is no overdue long-term loans (as at 31 December 2021: Nil).
31. Lease liabilities
In RMB Yuan
Item Ending balance Beginning balance
Lease liabilities 48,166,482.15 63,625,560.11
Less：Lease liabilities within 1 year 19,964,461.90 24,945,824.52
Net lease liabilities 28,202,020.25 38,679,735.59
32. Long-term payables
In RMB Yuan
Item Ending balance Beginning balance
Long-term payables 467,780,397.91 642,513,537.69
49
Special payables 163,222,915.60 182,959,952.39
Total 631,003,313.51 825,473,490.08
(1) Long-term payables:
In RMB Yuan
Item Ending balance Beginning balance
Purchase of fixed assets 681,092,540.12 797,107,296.74
Less：Long-term payables within 1 year 213,312,142.21 154,593,759.05
Total 467,780,397.91 642,513,537.69
(2) Special payables:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Land relocation compensation 55,350,709.40 55,350,709.40
of Nanjing
changan
Intelligent manufacturing 82,777,201.36 35,740,700.00 11,318,391.82 107,199,509.54
project
Lightweight design of 18,903,766.50 2,800,000.00 4,801,572.92 16,902,193.58
automobile structure
Others 25,928,275.13 16,140,816.00 2,947,878.65 39,121,212.48
Total 182,959,952.39 54,681,516.00 74,418,552.79 163,222,915.60
33. Long-term payroll payable
In RMB Yuan
Item Ending balance Beginning balance
Net obligation of defined benefit plan 27,665,760.32 30,917,000.00
Early retirement 8,971,069.20 8,186,000.00
Total 36,636,829.52 39,103,000.00
34. Contingent liabilities
In RMB Yuan
Item Ending balance Beginning balance
Warranty 3,770,948,830.71 3,295,272,783.50
Contingent liabilities of contract
509,056,929.02 543,742,894.34
performance
Total 4,280,005,759.73 3,839,015,677.84
50
35. Deferred income
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Government grants related to
224,903,605.46 121,411,192.00 132,421,192.00 213,893,605.46
assets
Government grants related to
699,846,125.66 10,531,250.00 424,791,568.19 285,585,807.47
gains
Total 924,749,731.12 131,942,442.00 557,212,760.19 499,479,412.93
Details of government grants are as follows:
In RMB Yuan
Liability Beginning balance Addition Deduction Ending balance
Related to assets: 224,903,605.46 121,411,192.00 132,421,192.00 213,893,605.46
Production and
158,141,323.00 121,411,192.00 121,411,192.00 158,141,323.00
construction subsidies
Other government
66,762,282.46 11,010,000.00 55,752,282.46
subsidies
Related to gains: 699,846,125.66 10,531,250.00 424,791,568.19 285,585,807.47
R&D technology
569,842,539.65 359,884,872.76 209,957,666.89
subsidies
Other government
130,003,586.01 10,531,250.00 64,906,695.43 75,628,140.58
subsidies
Total 924,749,731.12 131,942,442.00 557,212,760.19 499,479,412.93
36. Other non-current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance service payment 1,532,238,553.86 1,352,292,332.21
Deduction: Advance service payment
688,487,935.99 566,064,463.79
within 1 year
Net other non-current liabilities 843,750,617.87 786,227,868.42
37. Share capital
In RMB Yuan
Changes（+，-）
Beginning
Additional Stock Provident fund Ending balance
balance Others
issued dividend transfer
I. Shares with sales
519,818,865.00 155,945,659.00 675,764,524.00
restrictions
1. State-owned legal
396,393,645.00 118,918,093.00 515,311,738.00
person shares
2. Other domestic shares 122,490,320.00 36,747,096.00 159,237,416.00
Including: Domestic legal
person shares
Domestic natural person 122,490,320.00 36,747,096.00 159,237,416.00
51
shares
3. Foreign shares 934,900.00 280,470.00 1,215,370.00
Including: Foreign legal
person shares
Foreign natural person
934,900.00 280,470.00 1,215,370.00
shares
II. Shares without sales
7,112,334,537.00 2,133,700,361.00 9,246,034,898.00
restrictions
1.Ordinary shares
5,849,553,939.00 1,754,866,182.00 7,604,420,121.00
denominated in RMB
2. Domestic listed foreign
1,262,780,598.00 378,834,179.00 1,641,614,777.00
shares
III. Total shares 7,632,153,402.00 2,289,646,020.00 9,921,799,422.00
According to the 2021 profit distribution and provident fund transfer plan, the capital reserve will be converted to 3 shares for every
10 shares. After the conversion, the total share capital will increase by RMB 2,289,646,020 and the capital reserve will decrease by
RMB 2,289,646,020.
38. Capital reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Share premium 8,774,823,352.59 2,289,646,020.00 6,485,177,332.59
Share-based payments 268,539,867.92 192,310,900.00 460,850,767.92
Capital reserve
transferred arising from 44,496,899.00 44,496,899.00
the old standards
reserve of equity
17,015,985.20 17,015,985.20
investments
Others 671,317,255.67 663,566,110.70 1,334,883,366.37
Total 9,776,193,360.38 855,877,010.70 2,289,646,020.00 8,342,424,351.08
In 2022, the increase in other capital reserves amounting to RMB 663,566,110.70 was due to the capital increase of the minority
shareholders of Chongqing Changan New Energy Vehicle Technology Co., Ltd., an associate company of the Company.
39. Treasury stock
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Treasury stock 655,812,327.60 655,812,327.60
Total 655,812,327.60 655,812,327.60
52
40. Other comprehensive income
In RMB Yuan
Amount for this reporting period
Deduct: other Amount
Deduct: amounts comprehensiv attributa
transferred to e income in ble to
Beginning income statement the previous minority
Item Deduct: Ending balance
balance Amount which were period and Amount attributable interests
Income
before tax recognized in other transferred to to owners
tax
comprehensive retained
income in prior earnings in
period the current
period
I. Other comprehensive income that cannot be
transferred to profit or loss under the equity 166,196,226.11 166,196,226.11 166,196,226.11
method
Change in net liability or assets from
(297,000.00) (297,000.00) (297,000.00)
defined benefit plan
Other comprehensive income that
cannot be transferred to profit or loss under the (3,368,053.89) (3,368,053.89) (3,368,053.89)
equity method
Changes in the fair value of other
169,861,280.00 169,861,280.00 169,861,280.00
equity instrument investments
II. Other comprehensive income will be
reclassified to profit or loss in subsequent (96,753,756.58) 121,654.81 (96,632,101.77) (96,632,101.77)
period
Other comprehensive income that can
be transferred to profit or loss under the equity 146,228.18 146,228.18 146,228.18
method
Foreign currency translation difference (96,753,756.58) (24,573.37) (96,778,329.95) (96,778,329.95)
Total 69,442,469.53 121,654.81 69,564,124.34 69,564,124.34
53
41. Special reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Safety fund 27,988,260.61 46,183,489.83 25,024,594.96 49,147,155.48
Total 27,988,260.61 46,183,489.83 25,024,594.96 49,147,155.48
42. Surplus reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Statutory surplus 2,982,292,413.67 2,982,292,413.67
Total 2,982,292,413.67 2,982,292,413.67
43. Retained earnings
In RMB Yuan
Item Current period Prior period
Retained earnings at beginning of the year 35,900,674,525.13 34,315,048,892.26
Add: Profits attributable to parent company for the
5,857,626,135.78 1,729,245,208.60
current year
Less: Ordinary share dividend of cash 1,778,856,191.54 1,666,243,360.54
Retained earnings at the end of year 39,979,444,469.37 34,378,050,740.32
44. Operating revenue and cost
In RMB Yuan
Amount for this period Amount for prior period
Item
Revenue Cost Revenue Cost
Main business 55,281,269,652.99 44,486,900,457.55 55,859,466,497.39 47,581,200,934.60
Other business 1,292,298,740.72 873,190,024.65 925,165,401.68 505,476,294.61
Total 56,573,568,393.71 45,360,090,482.20 56,784,631,899.07 48,086,677,229.21
45. Tax and surcharges
In RMB Yuan
Item Amount for this period Amount for prior period
Consumption tax 1,469,234,309.60 1,599,192,250.70
City maintenance and construction tax 194,046,087.99 196,961,006.14
Educational surcharge 133,244,356.31 134,489,938.43
Others 149,775,477.87 157,051,471.80
Total 1,946,300,231.77 2,087,694,667.07
54
46. Operating expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Sales service fee 1,151,982,258.69 871,026,270.21
Promotion, advertising fee 552,426,701.41 791,462,570.10
Payroll and welfare 297,621,384.05 240,101,135.80
Transportation and storage fees 205,973,233.78 168,961,271.58
Travelling expenses 30,218,731.48 30,394,898.13
Package expenses 28,619,986.39 14,493,447.37
Others 18,487,525.97 29,675,719.00
Total 2,285,329,821.77 2,146,115,312.19
47. General and administrative expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1,766,803,412.30 1,216,671,339.99
Depreciation and amortization 110,312,454.37 117,765,985.28
Traffic expenses and travelling expenses 21,235,281.45 27,865,566.05
Negative points for fuel consumption - 636,271,194.34
Others 285,683,156.98 218,572,958.84
Total 2,184,034,305.10 2,217,147,044.50
48. Research and development expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 819,010,682.93 592,150,357.04
Depreciation and amortization 614,117,321.15 607,589,508.63
Subcontract fee 272,218,189.13 147,374,115.88
Material fee 112,662,406.81 70,981,081.39
Travelling research fee 20,043,210.47 12,194,021.56
Test fee 17,479,289.63 35,455,478.77
Others 76,763,044.55 29,838,798.89
Total 1,932,294,144.67 1,495,583,362.16
49. Financial income
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 438,428,075.90 281,294,223.92
Less: Foreign exchange gain or loss (40,733,323.13) 8,533,687.86
Interest expense 17,892,411.14 26,372,186.29
Others 23,270,638.90 12,611,859.12
Total 437,998,348.99 233,776,490.65
55
50. Other income
Government subsidies related to daily activities
In RMB Yuan
Item Amount for this period Amount for prior period
Production and construction subsidies 186,910,289.65 106,783,041.12
51. Investment income
In RMB Yuan
Item Amount for this period Amount for prior period
Long-term equity investment losses accounted for by the equity
78,821,605.75 250,708,951.37
method
The investment income of financial asset held for trading during
2,690,400.00
its holding period
Dividend income from remaining investments in other equity
144,222,128.67 70,204,197.65
instruments
Gains from the remeasurement of the remaining equity at fair
2,128,305,938.85
value after the loss of control
Interest income from entrusted loan 6,959,316.06
Total 2,354,040,073.27 327,872,465.08
52. Fair value change
In RMB Yuan
Source of income from changes in fair value Amount for this period Amount for prior period
Financial assets held for trading 26,136,888.77 15,734,698.73
Total 26,136,888.77 15,734,698.73
53. Impairment loss of credit
In RMB Yuan
Item Amount for this period Amount for prior period
Bad debt for account receivable 10,913,106.06 3,471,684.54
Bad debt for other receivables (138,419.44) 14,557.81
Total 10,774,686.62 3,486,242.35
54. Impairment loss on assets
In RMB Yuan
Item Amount for this period Amount for prior period
Impairment of inventory 72,131,985.60 75,510,749.47
Impairment of fixed assets 165,117,956.10 133,683,760.35
Impairment of intangible assets 2,920,133.24 6,685,373.29
56
Impairment of contract assets 1,657,510.52 (20,192,776.00)
Total 241,827,585.46 195,687,107.11
55. Gain on disposal of assets
In RMB Yuan
Item Amount for this period Amount for prior period
Gain on disposal of fixed-assets 60,093,947.79 119,487,419.99
Gain on disposal of intangible assets 8,150,134.49 481,579,441.34
Total 68,244,082.28 601,066,861.33
56. Non-operating income
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Fines, penalties and others 54,366,637.51 40,983,845.94 54,366,637.51
Total 54,366,637.51 40,983,845.94 54,366,637.51
57. Non-operating expenses
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Donation 10,500,000.00
Vehicle reward 1,711,728.00 1,711,728.00
Fines and penalties 1,327,232.91 559.05 1,327,232.91
Others 1,831,254.32 3,603,043.24 1,831,254.32
Total 4,870,215.23 14,103,602.29 4,870,215.23
58. Income tax expense
(1) Table of income tax expense
In RMB Yuan
Item Amount for this period Amount for prior period
Current income tax expense 48,946,847.14 188,574,027.41
Deferred income tax expense (152,226,972.88) (129,200,581.32)
Total (103,280,125.74) 59,373,446.09
57
(2) The relationship between profit before tax and income tax expense
In RMB Yuan
Item Amount for this period
Tax at the applicable tax rate 5,735,743,241.36
Tax at the applicable tax rate 860,361,486.20
Impact of different tax rates of subsidiaries -26,497,167.12
Adjustments to current income tax of previous period -7,652,635.70
Non-taxable income -409,245,890.83
Non-deductible costs, expenses and losses 7,931,779.52
Usage previous deductible losses -431,737,260.12
Unrecognized deductible temporary differences and deductible losses -3,568,697.46
Profit or loss attributable to joint ventures and associates -11,823,240.86
Additional deduction -81,048,499.38
Income tax expense (103,280,125.74)
59. Other comprehensive income
Please refer to notes V, 40.
60. Notes to cash flow statement
(1) Items of cash received relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 438,428,075.90 287,599,749.93
Government grants 401,800,087.37 973,828,265.22
Others 561,189,492.27 536,655,063.79
Total 1,401,417,655.54 1,798,083,078.94
(2) Items of cash paid relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Selling expense 1,980,235,740.95 1,705,305,653.87
Administrative expense 569,553,555.35 833,833,985.36
Research and development expenses 609,764,742.34 579,603,711.64
Others 379,019,456.72 236,785,445.40
Total 3,538,573,495.36 3,355,528,796.27
(3) Items of cash received relating to other investing activities
In RMB Yuan
58
Item Amount for this period Amount for prior period
Entrusted loan received 300,000,000.00
Total 300,000,000.00
(4) Items of cash paid relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Cash transferred out from the loss of
815,126,333.76
control of the subsidiary
Total 815,126,333.76
(5) Items of cash received relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Withdraw for deposit of bill 715,239,432.26 312,220,372.75
Total 715,239,432.26 312,220,372.75
(6) Items of cash paid relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Payment for deposit of bill 669,560,830.95 418,351,512.95
Others 29,669,861.07 241,289.74
Total 699,230,692.02 418,592,802.69
61. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information Amount for this period Amount for prior period
1. Cash flows from operating activities calculated by adjusting the
net profit
Net profit 5,839,023,367.10 1,804,981,288.95
Add: Impairment provision for assets 252,602,272.08 199,173,349.46
Depreciation of fixed assets 1,435,681,140.90 1,515,838,567.70
Right-of-use assets depreciation 16,605,322.98 12,224,609.69
Amortization of intangible assets 528,117,679.23 545,011,292.13
Amortization of long-term deferred expense 1,826,783.84 2,670,879.81
Increase in deferred income (139,049,041.50) 438,381,053.36
Disposal income on fixed assets, intangible assets and
(68,244,082.28) (601,066,861.33)
others
Income of fair value movement (26,136,888.77) (15,734,698.73)
59
Financial expense 17,892,411.14 26,372,186.29
Investment income (2,354,040,073.27) (327,872,465.08)
Increase in deferred tax assets (154,489,446.55) (126,334,690.62)
Decrease in deferred tax liabilities 2,262,473.67 (2,865,890.70)
Decrease in inventory (244,183,357.63) 1,878,025,569.26
Decrease in operating payables 1,273,807,337.63 (206,172,573.97)
Increase in operating payables (722,465,767.08) 12,441,654,173.66
Share-based payments cost 192,310,900.00 107,618,400.00
Others 715,388.71 6,922,680.49
Net cash flows from operating activities 5,852,236,420.20 17,698,826,870.37
2．Movement of cash and cash equivalents:
Ending balance of cash 51,032,267,488.15 46,269,403,600.01
Less: beginning balance of cash 49,517,916,834.99 30,655,968,057.63
Increase in cash and cash equivalents 1,514,350,653.16 15,613,435,542.38
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash
Including: Cash 6,321.16 36,881.35
Bank deposits that can be
51,032,261,166.99 49,517,879,953.64
readily used
II. Ending balance of cash and cash
51,032,267,488.15 49,517,916,834.99
equivalents
62. The assets with ownership or right restricted
In RMB Yuan
Item Ending balance Explanation
Cash and cash equivalents 2,389,515,751.70 Acceptance bill deposit
Note receivables 8,258,455,824.79 Pledge for issuing bills payable
Fixed assets 32,955,152.32 Collateral to obtain working capital
Intangible assets 17,033,287.44 Collateral to obtain working capital
Total 10,697,960,016.25
63. Foreign Monetary Item
In RMB Yuan
Item Original Currency Exchange Rate Translated to RMB
Cash
Including: USD 70,006,606.27 6.7114 469,842,337.32
GBP 27,395,650.46 7.0084 191,999,676.68
EUR 7,877,112.64 8.1365 64,092,127.00
JPY 160,087,076.00 0.0491 7,860,275.43
RUB 88,621,924.78 0.1285 11,387,917.33
60
BRL 572,874.98 1.2825 734,712.16
THB 4,436,622.85 0.1906 845,620.32
INR 2,411,981.46 0.0852 205,500.82
AED 1.44 1.8275 2.63
Accounts receivable
Including: USD 62,765,596.93 6.7114 421,245,027.24
EUR 81,481,822.52 7.0084 571,057,204.95
GBP 5,805,891.60 8.1365 47,239,637.00
Other receivables
Including: USD 93,933.61 6.7114 630,426.03
EUR 13,240,524.98 7.0084 92,794,895.27
GBP 334,950.32 8.1365 2,725,323.28
JPY 12,208,320.00 0.0491 599,428.51
Accounts Payable
Including: USD 4,883.96 6.7114 32,778.21
EUR 16,652,197.69 7.0084 116,705,262.29
GBP 109,663.79 8.1365 892,279.43
Other Payables
Including: USD 119,620.00 6.7114 802,817.67
GBP 313,751.00 8.1365 2,552,835.01
64. Government grants
The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows:
In RMB Yuan
Amount for this period Amount for prior period
Government grants related to assets 132,421,192.00 143,531,402.87
Write down: Fixed assets 132,421,192.00 143,531,402.87
Intangible assets
Government grants related to income 177,846,131.22 255,909,824.92
Write down: Operating cost 73,489,574.95 78,668,498.38
Operating expenses 964,950.11 370,369.44
General and administrative expenses 10,761,122.82 9,492,897.61
Research and development expenses 92,433,583.34 167,378,059.49
Financial income 196,900.00
For other government grants, refer to notes V, 35 and 50.
VIII. The change of consolidation scope
1. Business combination not under the Same Control
□ Applicable √ Not Applicable
2. Combination under the same control
□ Applicable √ Not Applicable
61
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary company
through multiple transactions
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
Nature of Registered capital (ten The total shareholding ratio
Company name Registered place
business thousand yuan) of the Group
Chongqing Xingzhi Technology
Chongqing Sale 4,900.00 100%
Co., Ltd.
(2) Subsidiary clearing during the reporting period
AVATR. Co., Ltd has changed from the company's holding subsidiary to an associate, and is no longer included in the company's
consolidated financial statements. The equity method is used for subsequent accounting, which has a significant impact on the company.
For details, please refer to www.cninfo.com.cn (Announcement No.: 2022-29).
IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows：
Registered Total proportion of
Main operating shareholders (%)
Company name Registered place Nature of business capital (ten
place
thousand) Direct Indirect
I. The subsidiary formed by establishment or investment
Chongqing Changan International
Chongqing Chongqing Sales 1,376.00 100.00 -
Automobile Sales Co., Ltd.
Chongqing Changan Vehicle
Networking Technology Co., Chongqing Chongqing Lease 8,850.00 100.00 -
Ltd.
Chongqing Changan Special
Automobile Sales Co., Ltd Chongqing Chongqing Sales 2,000.00 50.00 -
(Note 1)
Chongqing Changan Automobile
Chongqing Chongqing Sales 3,000.00 99.00 1.00
Supporting Service Co., Ltd.
Chongqing Changan New Energy
Chongqing Chongqing R&D 2,900.00 100.00 -
Automobile Co. Ltd.
Chongqing Changan Europe
Turin, Italy Turin, Italy R&D EUR 1,738 100.00 -
Design Academy Co., Ltd.
Changan United Kingdom R&D Nottingham, United Nottingham, United
R&D GBP 2,639 100.00 -
Center Co., Ltd. Kingdom Kingdom
Beijing Changan R&D Center
Beijing Beijing R&D 100.00 100.00 -
Co., Ltd.
Changan Japan Designing Center
Habin Habin R&D JYP1,000 100.00 -
Co.,Ltd
62
Changan United States R&D
Troy, United states Troy, United states R&D USD154 100.00 -
Center Co., Ltd.
Changan Automobile Russia Co., RUB
Moscow, Russia Moscow, Russia Sales 100.00 -
Ltd. 220,382
Changan Brazil Holdings Limited St. Paul, Brazil St. Paul, Brazil Sales BRL 100 99.00 1.00
Changan Automobile Changan Automobile Changan Automobile
Changan Automobile Investment Investment Investment Investment
23,789.00 100.00
(Shenzhen) Co., Ltd. (Shenzhen) Co., (Shenzhen) Co., (Shenzhen) Co.,
Ltd. Ltd. Ltd.
Nanjing Changan New Energy
Automobile Sales & Service Nanjing Nanjing Sales 5,000.00 100.00 -
Co., Ltd.
Chongqing Anyi Automotive
Chongqing Chongqing Sales 200.00 100.00 -
Technology Service Co., Ltd.
Xiamen Changan New Energy
Automobile Sales & Service Xiamen Xiamen Sales 200.00 100.00 -
Co., Ltd.
Guangzhou Changan New Energy
Automobile Sales & Service Guangzhou Guangzhou Sales 400.00 100.00 -
Co., Ltd.
Chongqing Chehemei Technology
Chongqing Chongqing Sales 1,000.00 100.00
Co., Ltd.
Chongqing Changan Kaicheng
Automobile Technology Co., Chongqing Chongqing Sales 100,000.00 83.64
Ltd.
Chongqing Changan Automobile
Chongqing Chongqing R&D 9,900.00 100.00
Software Technology Co., Ltd.
Chongqing Chehemei Technology
Chongqing Chongqing Sales 4,900.00 100.00
Co., Ltd.
II. The subsidiary formed by business combination not under common control
Nanjing Changan Automobile
Nanjing Nanjing Manufacturing 60,181.00 84.73 -
Co., Ltd.(Note 2)
Chongqing Lingyao Automobile
Chongqing Chongqing Manufacturing 133,764.00 100.00 -
Co., Ltd.
III. The subsidiary formed by business combination under common control
Hefei Changan Automobile
Hefei Hefei Manufacturing 227,500.00 100.00 -
Co.,Ltd.
Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company that
the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled
by the Company, so it is included in the scope of consolidated financial statements.
Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co., Ltd., the difference between proportion of
voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.
As at June 30, 2022, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
(1) Significant joint ventures or associates
Registered Registered Total proportion of Accounting
Company name Nature of business
place capital (ten shareholders (%) treatment
63
Main thousand)
operating Direct Inderect
place
I. Joint ventures
Changan Ford Manufacture and sale
Chongqing Chongqing USD24,100 50.00 - Equity
Automobile Co., Ltd. ofautomobiles, and components
Changan Mazda Manufacture and sale
Nanjing Nanjing USD11,097 47.50 - Equity
Automobile Co., Ltd. ofautomobiles, and components
Changan Mazda
Manufacture and sale
Engine Co., Ltd. Nanjing Nanjing USD20,996 50.00 - Equity
ofautomobiles, and components
(Note 1)
Jiangling Investment Manufacture and sale
Nanchang Nanchang 100,000 50.00 - Equity
Co., Ltd. ofautomobiles, and components
II. Associates
Chongqing Changan Develop, product and sale of
Kuayue Automobile Chongqing Chongqing automobile and components; import 6,533.00 34.30 - Equity
Co., Ltd. and export goods.
Sale of Changan Kuayue’ s
Chongqing Changan
automobile and agricultural cars and
Kuayue Automobile Chongqing Chongqing 300.00 34.30 - Equity
components. Technical advisory
Sales Co., Ltd.
services for automobile
Chongqing Changan
New Energy
Chongqing Chongqing Sales 32,810.83 40.6559 - Equity
Automobile
Technology Co., Ltd.
Beijing Fang’an Taxi
Beijing Beijing For the car loan business 2,897.96 22.24 - Equity
Co., Ltd.
Provide car loan; provide vehicle
loans and operating equipment loans
Chongqing Auto to car dealers, including the
Chongqing Chongqing 476,843.10 28.66 - Equity
Finance Co., ltd. construction loans of exhibition
hall,spare parts loans and
maintenance equipment loans, etc.
Hainan Anxinxing Software and hardware technology
Chengmai Chengmai
Information development, technical consulting, 3,000.00 30.00 - Equity
County County
Technology Co., Ltd. auto parts sales
Car sales, leasing, software
Nanjing Chelai Travel
Nanjing Nanjing technology development, technical 10,000.00 10.00 - Equity
Technology Co., Ltd.
services
Technology development
Hunan Guoxin
consulting, technical services,
Semiconductor Zhuzhou Zhuzhou 50,000.00 25.00 - Equity
technology transfer in the field of
Technology Co., Ltd.
power semiconductors
Beijing Wutong Technology development, technical
Chelian Technology Beijing Beijing consulting, technical services, 56,055.88 - 27.05 Equity
Co., Ltd. technology transfer
Anhe (Chongqing)
Equity Investment
Chongqing Chongqing Equity investment management 1,260.00 - 23.81 Equity
Fund Management
Co., Ltd.
Hangzhou Chelizi
Intelligent Hangzhou Hangzhou Car travel service 630.00 - 20.00 Equity
Technology Co., Ltd.
Pakistan Master Lahore, Lahore, Manufacture and sale
PKR75,000 30.00 Equity
Motors Co., Ltd. Pakistan Pakistan ofautomobiles, and components
Jiangling Holding Manufacture and sale
Nanchang Nanchang 200,000.00 25.00 - Equity
Co., Ltd. ofautomobiles, and components
Nanjing Leading
Equity investment and related
Equity Investment Nanjing Nanjing 976,000.00 16.39 - Equity
services
Partnership
Nanjing Leading
Equity Investment Private equity investment fund
Nanjing Nanjing 1,000.00 15.00 - Equity
Management Co., management and related services
Ltd.
Zhongqi Chuangzhi
Nanjing Nanjing R&D 1,600,000.00 3.125 - Equity
Technology Co., Ltd.
Chongqing Changxin Chongqing Chongqing Equity Investment 50,200.00 49.80 - Equity
64
Zhiqi Private Equity
Investment Fund
Partnership (Limited
Partnership)
AVATR. Co., Ltd Nanjing Nanjing R&D 117,224.26 39.018 Equity
(2) Key financial information of significant joint ventures
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.
In RMB Yuan
Beginning balance/Amount for prior
Ending balance/Amount for this period
period
Current assets 14,444,919,999.92 13,985,198,069.48
Including: cash and cash
4,673,625,631.71 5,495,088,974.00
equivalent
Non-current assets 25,978,566,147.38 26,699,638,720.51
40,423,486,147.30 40,684,836,789.99
Total assets 25,000,894,365.01 28,816,791,001.00
Non-current liabilities 8,398,429,884.54 5,889,087,187.00
Total liabilities 33,399,324,249.55 34,705,878,188.00
Minority interests - -
Equity attributable to owners 7,024,161,897.75 5,978,958,603.00
Net asset owned according to share
3,512,080,948.88 2,989,479,301.50
proportion
Adjustment (54,343,996.72) (54,603,257.51)
Book value of investment 3,457,736,952.16 2,934,876,043.99
Operating income 23,377,802,470.94 26,114,465,788.42
Financial expenses 228,432,281.92 252,032,973.23
Income tax expense 158,336,533.41 59,987,347.20
Net profit 1,045,203,295.40 726,486,736.96
(3) The financial status of the less important joint ventures and associates
In RMB Yuan
Ending balance Beginning balance
Joint venture:
Total book value of the investment 4,249,902,992.19 4,332,804,092.02
Total amount calculated by shareholding
proportion
--Net profit 340,098,900.17 374,325,525.72
--Other comprehensive income
--Total comprehensive income 340,098,900.17 374,325,525.72
Associates:
Total book value of the investment 9,596,972,338.40 5,977,694,724.54
Total amount calculated by shareholding
65
proportion
--Net profit (784,138,202.60) (486,569,024.38)
--Other comprehensive income 146,228.18
--Total comprehensive income (783,991,974.42) (486,569,024.38)
(4) Excessive losses incurred by joint ventures or associates
As at 30 June 2022, 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., Chongqing Wutong Chelian Technology Co., Ltd and Hainan Anxinxing Information
Technology Co., Ltd. When extra loss occurs, the Group writes down the long-term investment to zero without recognizing the extra
loss.
X. 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
In RMB Yuan
Financial assets Financial assets
measured at fair value measured at fair value
Financial assets
and whose changes and whose changes are
2022.6.30 measured at amortized Total
are recorded in the recorded in Other
cost
current profit and loss comprehensive income
(standard required) (specified)
Cash 53,421,783,239.85 53,421,783,239.85
Financial assets for
305,967,574.57 305,967,574.57
trading
Notes receivable 21,178,905,132.66 21,178,905,132.66
Accounts receivable 3,597,002,110.54 3,597,002,110.54
Other receivables 509,614,847.86 509,614,847.86
Other current assets 9,626,784.09 9,626,784.09
Investment in other
701,409,600.00 701,409,600.00
equity instrument
Total 305,967,574.57 78,716,932,115.00 701,409,600.00 79,724,309,289.57
In RMB Yuan
Financial assets
Financial assets measured
measured at fair value
Financial assets at fair value and whose
and whose changes are
2021.12.31 measured at amortized changes are recorded in Total
recorded in the current
cost Other comprehensive
profit and loss
income (specified)
(standard required)
Cash 51,976,242,149.37 51,976,242,149.37
Financial assets for
195,798,300.00 195,798,300.00
trading
Notes receivable 24,267,633,416.65 24,267,633,416.65
Accounts receivable 1,675,427,534.87 1,675,427,534.87
Other receivables 632,122,942.37 632,122,942.37
Other current assets 3,723,435.08 3,723,435.08
66
Investment in other
701,409,600.00 701,409,600.00
equity instrument
Total 195,798,300.00 78,555,149,478.34 701,409,600.00 79,452,357,378.34
Financial liabilities
In RMB Yuan
2022.6.30 2021.12.31
Short-term loans 46,166,500.00 19,000,000.00
Notes payable 26,921,406,502.22 24,292,268,371.12
Accounts payable 23,994,999,761.80 23,650,604,870.98
Other payables 5,116,328,239.99 4,562,626,344.69
Non-current liabilities due within 1 year 887,576,604.11 533,839,583.57
Long-term loan 40,000,000.00 600,000,000.00
Lease liabilities 28,202,020.25 38,679,735.59
Long-term payables 467,780,397.91 642,513,537.69
Total 57,502,460,026.28 54,339,532,443.64
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2022, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable
is RMB 1,854,716,065.23 (December 31, 2021: RMB 2,391,567,055.84). On June 30, 2022, its maturity date is 1 to 6 months.
According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has the right
to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks and
rewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the related accounts
payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. The
Group believes that continued involvement in fair value is not significant.
In the first half of 2022, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in the
proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.
Endorsements occur roughly and evenly during the year.
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, lease liabilities, 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
67
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 2021, 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. 56.55% of the
Group's accounts receivable (December 31, 2021: 48.92%) 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.
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.
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:
68
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.
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.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2022, 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.
In 30 June, 2022, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other than
the units' functional currency. 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 June 30, 2022, the Group's listed equity instrument
investment (Note VII 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.
In RMB Yuan
Carrying amount of equity Change in fair Increase/(decrease) in
investments value equity
2022.6.30
Shanghai- Equity investment included in financial
assets at 12,873,724.
302,911,174.57 5%
92
fair value through profit or loss
Shanghai- Equity investment included in financial
assets at (12,873,72
302,911,174.57 -5%
4.92)
fair value through profit or loss
2021.12.31
Shanghai- Equity investment included in financial
assets at
177,902,700.00 5% 7,560,864.75
69
fair value through profit or loss
Shanghai- Equity investment included in financial
assets at (7,560,864.
177,902,700.00 -5% 75)
fair 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 2021 and 30, June 2022.
The Group’s leverage ratio on the balance sheet date is as follows:
June 30, 2022 December 31, 2021
Leverage ratio 56.19% 58.74%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2022
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets
Equity instrument investment 133,511,100.00 169,400,074.57 302,911,174.57
Derivative financial assets 3,056,400.00 3,056,400.00
Other equity instruments 701,409,600.00 701,409,600.00
Total 133,511,100.00 169,400,074.57 704,466,000.00 1,007,377,174.57
December 31, 2021
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets
Equity instrument investment 177,902,700.00 177,902,700.00
Derivative financial assets 17,895,600.00 17,895,600.00
Other equity instruments 701,409,600.00 701,409,600.00
Total 177,902,700.00 719,305,200.00 897,207,900.00
70
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.
Long-term loans and long-term payables 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 2021,
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
Comparable transaction value multiplier / Post-tax
2022.6.30 701,409,600.00 Market approach/ Income approach
discount rate
Comparable transaction value multiplier / Post-tax
2021.12.31 701,409,600.00 Market approach/ Income approach
discount rate
Financial asset held for trading-Others
2022.6.30 3,056,400.00 Expected yield as per the contract Expected yield contained in the contract
2021.12.31 17,895,600.00 Expected yield as per the contract Expected yield contained in the contract
XII. Related party relationships and transactions
1. Parent company of the Company
Proportion of Proportion of
Place of
Parent company Nature of the business Registered capital shares in the voting rights in the
registration
Company (%) company (%)
China Changan Manufacture and sale of
Automobile Group Beijing automobiles, engine, and 6,092,273,400.00 20.80% 20.80%
Co ,Ltd. components
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（1）. Stake in other entities.
71
3. Joint ventures and associates
See Joint ventures and associates in IX（3） Stake in other entities.
4. Other related parties
Related parties Relationship
Chongqing Tsingshan Industrial Co., Ltd. Controlled by the same ultimate holding company
Anhui Wanyou Automobile Sales Service Co., Ltd. Controlled by the same ultimate holding company
Bazhong Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Auto Sales and Service co.,Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Auto Trade Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Guizhou Wanyou Auto Sales and Service 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
Jiangsu Wanyou Automobile Sales Service Co., Ltd. Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co., Ltd. Controlled by the same ultimate holding company
Panzhihua Wanyou Auto Sales & Service 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
Wanyou Automobile Investment 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
Yunnan Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Financial Leasing Co., Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co., Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co., Ltd. Controlled by the same ultimate holding company
Chongqing Anfu Automobile 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
Chongqing Wanyou Economic Development Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Controlled by the same ultimate holding company
China South Industry Group Finance Co., Ltd. Controlled by the same ultimate holding company
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co., Ltd. Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Controlled by the same ultimate holding company
Yunnan Xiyi Industries Co., Ltd. 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
Chongqing Dajiang Jiexin Forging Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
Chongqing construction industry (Group) Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co., Ltd. Controlled by the same ultimate holding company
72
Related parties Relationship
Chongqing Shangfang Automobile Fittings Co., Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Transmission Sales Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changfeng Jiquan Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Chang'an industry (Group) Co., Ltd Controlled by the same ultimate holding company
Chongqing Changan Property Management Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Intelligent Industrial Technology Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Pingshan Tk Carburetor Co., Ltd. Controlled by the same ultimate holding company
Longchang Shanchuan Precision Welded Tube Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changrong Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Yihong Engineering Plastic Products Co., Ltd. Controlled by the same ultimate holding company
Yunnan Wanxing Auto Sales Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan transmission branch of China Chang'an Automobile Controlled by the same ultimate holding company
Group Co., Ltd
Hunan Tianyan Machinery Co., Ltd Controlled by the same ultimate holding company
Chongqing Changan Minsheng Dingjie Logistics Co.,Ltd. Controlled by the same ultimate holding company
Southwest Ordnance Industry Chongqing Environmental Protection Controlled by the same ultimate holding company
Research Institute Co., Ltd.
China Ordnance News Agency Controlled by the same ultimate holding company
Chongqing Wanyou Advertising Co.,Ltd. Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry Co., Ltd. Controlled by the same ultimate holding company
Chongqing Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changjiang Electrician Industry Group Co.,Ltd. Controlled by the same ultimate holding company
Guangxi Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Ya'an Changan Affordable Housing Construction Co., Ltd. Controlled by the same ultimate holding company
SIAMC Management Co., Ltd. Controlled by the same ultimate holding company
Hunan Tianyan Machinery Co., Ltd Participated by the Ultimate holding company
CDGM Tanaka Environmental Catalyst Co.,Ltd. Participated by the Ultimate holding company
Hafei Motor 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
South Tianhe Chassis System Co., Ltd. Participated by the Ultimate holding company
South Inter Air-conditioner Co.,Ltd. Participated by the Ultimate holding company
Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. Participated by the Ultimate holding company
Chongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Participated by the Ultimate holding company
Chongqing Nexteer Steering System Co.,Ltd. Participated by the Ultimate holding company
Beijing Zhongbing Insurance Brokerage Co., Ltd. Participated by the Ultimate holding company
Lear Chang'an (Chongqing) Automotive System Co., Ltd Participated by the Ultimate holding company
United Automotive Electronics (Chongqing) Co., Ltd Participated by the Ultimate holding company
Nattiefu transmission system (Chongqing) Co., Ltd Participated by the Ultimate holding company
Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd Participated by the Ultimate holding company
Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd Participated by the Ultimate holding company
73
Related parties Relationship
Chongqing Dajiang Tongyang Plastics Co., 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
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Participated by the Ultimate holding company
Beijing Wutong Chelian Technology Co., Ltd. Companies in which the company participates
Nanjing LingHang Technology Co., Ltd. Companies in which the company participates
Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. Companies in which the company participates
5. Related-party transaction
(1) Transactions of goods and services
Goods purchased and services received
In RMB Yuan
Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction exceeds amount
amount the
transaction
amount
Procurement of No
Changan Ford Automobile Co., Ltd. 33,177.65 1,921,855.70 186,186.55
parts
Jiangling Holdings Co., Ltd. Accept labor 585,345.00 - Yes 737,706.14
Changan Auto Finance Co., Ltd. Accept labor 154,563,517.61 123,988,448.87 Yes 8,153,781.57
Hangzhou Chelizi Intelligent Procurement of No
- 3,750,000.00 -
Technology Co., Ltd. parts
Purchasing parts No
Chongqing Changan New Energy
and accepting 716,672,719.94 3,011,467,834.39 82,033,905.11
Vehicles Technology Co., Ltd.
labor services
Purchasing parts No
Beijing Wutong Chelian Technology
and accepting 67,885,814.09 199,395,069.81 38,062,628.50
Co., Ltd.
labor services
China Changan Automobile Group No
Accept labor - 180,000.00 60,000.00
Co., Ltd.
Chongqing Qingshan transmission No
Procurement of
branch of China Chang'an Automobile - 928,269.34 -
parts
Group Co., Ltd.
Anhui Wanyou Automobile Sales No
Accept labor 2,284,126.26 3,758,297.12 626,024.86
Service Co., Ltd.
Bazhong Wanyou Auto Sales & No
Accept labor - 111,000.00 73,330.36
Service Co., Ltd.
Chengdu Huachuan Electric Procurement of No
201,518,601.15 805,483,679.59 227,227,857.41
Equipment Co., Ltd. parts
Chengdu Ningjiang Zhaohe Procurement of No
7,248,464.81 148,609,447.22 39,951,396.48
Automobile Components Co., Ltd. parts
Chengdu Wanyou Trading Co., Ltd. Accept labor 22,527.44 58,417.52 No 12,164.16
Chengdu Wanyou Auto Sales and Yes
Accept labor 368,483.54 281,414.61 -
Service co.,Ltd.
Chengdu Wanyou Auto Trade Service No
Accept labor 5,421,148.49 11,584,348.61 3,584,234.21
Co., Ltd.
74
Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction exceeds amount
amount the
transaction
amount
Chengdu Wanyou Xiangyu Auto Sales No
Accept labor 6,376,107.26 15,596,129.17 5,262,969.51
and Service Co., Ltd.
Guizhou Wanyou Auto Sales and No
Accept labor 6,881,968.71 20,824,040.79 6,240,583.45
Service Co., Ltd.
Purchasing parts No
Harbin Dongan Auto Engine Co., Ltd. and accepting 263,267,944.07 1,231,859,413.46 417,231,892.67
labor services
Purchasing parts No
Harbin Dongan Automotive Engine
and accepting 653,853,009.25 2,527,626,318.31 855,901,689.16
Manufacturing Co., Ltd.
labor services
Procurement of No
Hunan Tianyan Machinery Co., Ltd 2,617,013.13 124,012,774.49 52,452,744.77
parts
Jiangsu Wanyou Automobile Sales No
Accept labor 2,015,418.16 3,553,700.27 651,038.61
Service Co., Ltd.
Luzhou Wanyou Automobile Service No
Accept labor 307,508.81 1,079,823.97 380,083.72
Co., Ltd.
Procurement of No
Southern Fojiya Auto Parts Co., Ltd. 252,639,803.32 1,000,969,656.80 280,222,308.44
parts
Procurement of No
South Tianhe Chassis System Co., Ltd. 459,025,340.96 1,950,314,552.53 486,779,984.60
parts
Procurement of No
South Inter Air-conditioner Co.,Ltd. 202,161,276.20 863,478,799.74 200,511,859.90
parts
Panzhihua Wanyou Auto Sales & No
Accept labor 257,324.00 771,827.92 263,159.87
Service Co., Ltd.
Purchasing parts No
Sichuan Jian'an Industrial Co.,Ltd. and accepting 534,985,354.14 1,645,997,268.09 483,719,852.19
labor services
Sichuan Ningjiang Shanchuan Procurement of No
159,762,835.80 560,841,224.45 171,000,224.81
Machinery Co, Ltd. parts
Ya'an Wanyou Auto Sales and Service No
Accept labor 846,681.30 2,612,656.06 908,456.37
Co., Ltd.
Yunnan Wanyou Auto Sales and No
Accept labor 13,728,699.67 31,476,537.76 10,743,446.13
Service Co., Ltd.
Yunnan Wanxing Auto Sales Service No
Accept labor 92,971.05 1,839,395.79 132,323.01
Co., Ltd.
China Changan Automobile Group No
Accept labor - 1,794,366.59 951,991.17
Hefei Investment Co., Ltd.
China Changan Automobile Group No
Accept labor 692,160.09 3,014,067.66 111,409.95
Tianjin Sales Co., Ltd.
Purchasing parts No
Chongqing Tsingshan Industrial Co.,
and accepting 3,637,088,928.81 11,430,694,983.63 2,700,637,434.06
Ltd.
labor services
Chongqing Wanyou Ducheng Auto No
Accept labor 2,584,670.89 5,504,274.33 1,721,447.53
Sales Service Co., Ltd.
Chongqing Wanyou Xingjian Auto No
Accept labor 716,753.30 3,916,714.79 1,092,633.98
Sales & Service Co., Ltd.
Purchasing parts No
Chongqing Wanyou Economic
and accepting 40,779,608.17 1,009,788,555.92 369,796,951.53
Development Co., Ltd.
labor services
Chongqing Wanyou Zunda Procurement of Yes
114.95 - -
Automobile Sales & Service Co., Ltd. parts
75
Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction exceeds amount
amount the
transaction
amount
Chongqing Chang'an Minsheng Boyu No
Logistics cost - 71,441.28 -
Logistics Co., Ltd.
Purchasing parts No
Chongqing Changan Minsheng
and accepting 1,760,470,945.02 6,545,621,081.26 1,388,787,441.14
Logistics Co. Ltd.
labor services
Beijing Beiji Mechanical and Procurement of Yes
18,410.18 6,092.98 2,086.86
Electrical Industry Co., Ltd. parts
Chengdu Jialing Huaxi Optical & Procurement of No
1,538,164.71 17,353,897.32 6,216,741.79
Precision Machinery Co., Ltd. parts
Purchasing parts No
Chengdu Lingchuan Vehicle Oil Tank
and accepting 18,148,367.15 67,178,945.71 17,816,531.05
Co., Ltd.
labor services
Procurement of No
Chengdu Wanyou Filter Co., Ltd. 76,561,417.56 252,486,835.70 84,479,587.54
parts
Hubei Huazhong Marelli Automobile Procurement of No
473,880,131.14 2,221,189,276.10 465,100,075.04
Lighting Co., Ltd. parts
Hubei Xiaogan Huazhong Automobile Procurement of No
51,876,744.41 202,976,991.90 61,893,517.73
Light Co., Ltd. parts
Procurement of No
Yunnan Xiyi Industries Co., Ltd. 53,637,731.83 204,846,321.43 59,269,771.21
parts
China South Industries Group No
Accept labor - 42,000.00 -
Information Center Co., Ltd.
Chongqing Dajiang Jiexin Forging Procurement of No
1,845,245.27 10,924,319.90 3,022,294.47
Co., Ltd. parts
Chongqing Dajiang Yuqiang Plastic Procurement of No
344,226.01 77,509,963.48 88,514,947.10
Co., Ltd. parts
Chongqing Jianshe Automobile Air- Procurement of No
38,555,506.77 306,037,760.69 105,174,591.95
conditioner Co., Ltd. parts
Chongqing construction industry Procurement of No
726,973.62 7,075,684.69 780,297.42
(Group) Co., Ltd parts
Chongqing Construction Tongda Procurement of No
16,331,004.84 84,644,649.65 19,335,699.51
Industrial Co., Ltd. parts
Chongqing Nexteer Steering System Procurement of No
400,416,384.73 1,701,967,636.08 378,981,317.38
Co.,Ltd. parts
Chongqing Shangfang Automobile Procurement of No
52,075,600.58 198,487,628.70 51,123,910.13
Fittings Co., Ltd. parts
Chongqing Qingshan Transmission Procurement of No
18,687,536.60 36,131,038.29 10,226,693.15
Sales Co., Ltd. parts
Chongqing Yihong Engineering Procurement of No
14,407,672.87 45,640,634.47 8,668,811.99
Plastic Products Co., Ltd. parts
Chongqing Changfeng Jiquan Procurement of No
- 10,881.36 -
Machinery Co., Ltd. parts
Chongqing Chang'an industry (Group) No
Accept labor 6,341,330.87 196,627,170.00 4,811,062.11
Co., Ltd
Chongqing Changan Property No
Accept labor 1,928,927.46 6,265,367.91 1,911,249.38
Management Co., Ltd.
Purchasing parts No
Beijing Zhongbing Insurance
and accepting 45,762.00 285,274.84 5,554.42
Brokerage Co., Ltd.
labor services
Lear Chang'an (Chongqing) Procurement of No
229,595,709.77 1,000,861,210.19 297,535,098.14
Automotive System Co., Ltd parts
76
Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction exceeds amount
amount the
transaction
amount
United Automotive Electronics Purchasing parts No
(Chongqing) Co., Ltd and accepting 411,241,559.03 958,944,741.07 237,298,829.56
labor services
Nattiefu transmission system Procurement of No
210,241,479.79 715,778,771.46 192,065,903.94
(Chongqing) Co., Ltd parts
Nanjing LingHang Technology Co., Purchasing parts No
Ltd. and accepting 304,110.83 600,000.00 -
labor services
Tiannak Lingchuan (Chongqing) Purchasing parts No
exhaust system Co., Ltd and accepting 30,942,900.59 80,962,093.44 29,000,980.23
labor services
Changan Laisi (Chongqing) robot Procurement of No
- 34,390,957.65 601,568.93
intelligent equipment Co., Ltd parts
Chongqing Dajiang Tongyang Procurement of No
191,978,923.57 541,885,026.38 4,831,358.42
Plastics Co., Ltd. parts
Chongqing Dajiang Guoli Precision Procurement of No
167,524,798.04 635,843,953.00 135,836,367.95
Machinery Manufacturing Co., Ltd. parts
Dajiang Yapp Automotive Systems Procurement of No
167,401,222.48 714,950,383.10 176,074,670.02
Co., Ltd. parts
Chongqing Hanon Jianshe No
Procurement of
Automotive Thermal Systems Co., 71,943,120.72 348,601,720.25 117,174,891.64
parts
Ltd.
Chongqing Lingchuan Auto Parts Procurement of No
67,077,513.30 205,879,742.29 61,042,625.94
Manufacturing Technology Co., Ltd. parts
Chongqing Chang'an Intelligent No
Industrial Technology Service Co., Accept labor 513,085.15 955,650.00 -
Ltd
Chongqing Changan Minsheng Procurement of No
- 183,402.83 -
Dingjie Logistics Co.,Ltd. parts
Chongqing Pingshan Tk Carburetor Procurement of No
113,625.19 384,399.00 -
Co., Ltd. parts
Longchang Shanchuan Precision Procurement of No
16,006,962.03 55,926,791.60 -
Welded Tube Co., Ltd. parts
Chongqing Changrong Machinery Procurement of No
105,095,477.66 431,805,778.38 108,378,855.15
Co., Ltd. parts
Chongqing Wutong Chelian Yes
Accept labor 18,867,924.00 - -
Technology Co., Ltd.
Southwest Ordnance Industry Yes
Procurement of
Chongqing Environmental Protection 643,025.04 - -
parts
Research Institute Co., Ltd.
Chongqing Yihong Engineering Procurement of Yes
495,852.05 - -
Plastic Products Co., Ltd. parts
China Ordnance News Agency Accept labor 8,235.84 - Yes -
Chongqing Wanyou Advertising Procurement of Yes
144,000.00 - -
Co.,Ltd. parts
Ald Fortune Auto Leasing & Renting Procurement of Yes
2,081,065.28 - -
(Shanghai) Co., Ltd. parts
Total: 12,077,344,092.00 44,660,420,679.68 10,563,387,032.07
Goods sold and services offered
In RMB Yuan
77
Related parties Nature of the transaction Current amount Prior-period Amount
Changan Ford Automobile Co., Ltd. Sales of materials and parts 1,977,509.38 1,855,571.93
Jiangling Holdings Co., Ltd. Training fee 384,888.69 -
Changan Automobile Finacing Co., Ltd. Financial service fee 233,886,141.47 235,922,452.68
Hainan Anxinxing Information
warehouse service charge 28,301.89 180,405.38
Technology Co., Ltd.
Chongqing Changan Kuayue Automobile
Sales of engines 35,175,120.00 25,113,180.83
Co., Ltd.
Chongqing Changan Kuayue Automobile
Selling parts 84,044.68 -
Sales Co., Ltd.
Chongqing Changan New Energy Sales of complete vehicles and
941,495,311.87 1,507,513,718.25
Vehicles Technology Co., Ltd. parts
Anhui Wanyou Automobile Sales Service Sales of complete vehicles and
101,714,909.87 94,893,670.51
Co., Ltd. parts
Chengdu Huachuan Electric Equipment
Training fee - 51,886.79
Co., Ltd.
Chengdu Wanyou Trading Co., Ltd. Sales of materials and parts 8,176.99 -
Chengdu Wanyou Auto Sales and Service Sales of complete vehicles and
472,725.21 34,563.77
Co.,Ltd. parts
Chengdu Wanyou Auto Trade Service Sales of complete vehicles and
312,041,141.75 316,249,425.28
Co., Ltd. parts
Chengdu Wanyou Xiangyu Auto Sales Sales of complete vehicles and
699,738,917.76 794,544,935.13
and Service Co., Ltd. parts
Guizhou Wanyou Auto Sales and Service Sales of complete vehicles and
501,259,585.12 588,046,422.66
Co., Ltd. parts
Harbin Dongan Auto Engine Co., Ltd. Sales of materials and parts,
1,173.00 15,930.30
maintenance services
Harbin Dongan Automotive Engine
Sales of materials and parts 24,251,252.09 31,522,892.41
Manufacturing Co., Ltd.
Jiangsu Wanyou Automobile Sales Sales of complete vehicles and
105,718,270.77 104,011,720.99
Service Co., Ltd. parts
Luzhou Wanyou Automobile Service Co.,
Sales of materials and parts 450,709.55 519,692.06
Ltd.
Panzhihua Wanyou Auto Sales & Service
Sales of materials and parts 383,700.50 263,050.52
Co., Ltd.
Sichuan Ningjiang Shanchuan Machinery
Training fee - 51,886.79
Co, Ltd.
Wanyou Automobile Investment Co., Ltd. Sales of complete vehicles 327,743,125.35 349,917,081.21
Ya'an Wanyou Auto Sales and Service Sales of complete vehicles and
889,767.43 655,115.77
Co., Ltd. parts
Yunnan Wanyou Auto Sales and Service Sales of complete vehicles and
546,916,400.91 671,843,881.62
Co., Ltd. parts
Yunnan Wanxing Auto Sales Service Co., Sales of complete vehicles and
18,951,586.08 46,605,045.84
Ltd. parts
China South Industries Group Financial
service charge 7,077,169.81 47,547.17
Leasing Co., Ltd.
China Changan Automobile Group Hefei Sales of complete vehicles and
- 41,156,064.45
Investment Co., Ltd. parts
China Changan Automobile Group Sales of complete vehicles and
113,428,610.55 137,135,092.41
Tianjin Sales Co., Ltd. parts
Chongqing Anfu Automobile Co., Ltd. Sales of complete vehicles and
7,775,221.22 6,189,380.58
parts
Chongqing Tsingshan Industrial Co., Ltd. Sales of materials and parts 72,087,696.68 35,512,076.07
78
Related parties Nature of the transaction Current amount Prior-period Amount
Chongqing Wanyou Ducheng Auto Sales
Sales of materials and parts 1,472,801.11 1,161,570.19
Service Co., Ltd.
Chongqing Wanyou Xingjian Auto Sales
Sales of materials and parts 853,360.20 697,236.79
& Service Co., Ltd.
Chongqing Wanyou Economic Sales of complete vehicles and
924,172,360.80 1,049,808,179.31
Development Co., Ltd. parts
Chongqing Wanyou Zunda Automobile
Sales of materials and parts 319,697,765.86 206,745,318.62
Sales & Service Co., Ltd.
Chongqing Chang'an Minsheng Boyu Sales of complete vehicles and
23,716.98 85,818,614.19
Logistics Co., Ltd. training expenses
Chongqing Changan Minsheng Logistics Sales of materials and parts,
1,018,913.85 928,663.27
Co. Ltd. utilities
China South Industry Group Finance Co.,
Others 550,714.07 -
Ltd.
Chengdu Lingchuan Vehicle Oil Tank
Sales of materials and parts 938,416.81 938,476.80
Co., Ltd.
Yunnan Xiyi Industries Co., Ltd. Sales of materials and parts 663,752.00 2,746,914.24
China South Industries Group
service charge 44,333.22 84,853.12
Commercial Factoring Co., Ltd.
Chongqing Dajiang Yuqiang Plastic Co.,
Sales of materials and parts 131,400.00 -716,798.50
Ltd.
Chongqing Jianshe Automobile Air-
testing expenses 11,946.90 -
conditioner Co., Ltd.
Chongqing construction industry (Group)
Sales of materials and parts 193,218.11 171,959.13
Co., Ltd
Chongqing Nexteer Steering System
Sales of materials and parts 1,552,230.09 -
Co.,Ltd.
Nanjing LingHang Technology Co., Ltd. operating charges 1,873,252.38 -
Ald Fortune Auto Leasing & Renting
operating charges 13,010,318.55 -
(Shanghai) Co., Ltd.
Tiannak Lingchuan (Chongqing) exhaust
Sales of materials and parts 2,651,092.85 6,228,241.00
system Co., Ltd
Chongqing Dajiang Tongyang Plastics
Sales of materials and parts 533,842.98 1,181,692.00
Co., Ltd.
Chongqing Dajiang Guoli Precision Outsourcing processing, sales
14,217,387.85 10,746.64
Machinery Manufacturing Co., Ltd. materials and parts
Chongqing Lingchuan Auto Parts
Sales of materials and parts 1,214,708.00 9,518,232.82
Manufacturing Technology Co., Ltd.
Avita Technology (Chongqing) Co., Ltd. Technical commissions 52,471,011.00 -
Pakistan Master Automobile Co., Ltd. Sales of complete vehicles and
686,073,063.37 -
parts
Total: 6,077,311,065.60 6,355,176,591.02
(2) Related-party leasing
Rent assets to related parties
In RMB Yuan
Lessee Type of leased assets Report period Amount Same period of last
period Amount
South Inter Air-conditioner Co.,Ltd. Vehicle 67,752.21 -
79
Chongqing Changan Industries Group
Building 3,397,373.71 3,283,373.71
Co. Ltd.
Nanjing LingHang Technology Co.,
Vehicle 63,932,417.73 45,919,893.28
Ltd.
Ald Fortune Auto Leasing & Renting
Vehicle 2,696,360.42 -
(Shanghai) Co., Ltd.
Chongqing Changan New Energy Building, land and battery
10,675,075.50 9,829,396.15
Vehicles Technology Co., Ltd. Workshop
Chongqing Changan Minsheng
Building 354,900.63 356,642.49
Logistics Co. Ltd.
Chongqing Wanyou Economic
Building and land 321,100.92 321,100.92
Development Co., Ltd.
Total 81,444,981.12 59,710,406.55
Rent assets from related parties
In RMB Yuan
Rent paid
Lessor Type of leased assets Same period of last period
Report period Amount
Amount
Chongqing Chang'an Minsheng
Land 1,730,062.80 251,047.99
Logistics Co., Ltd
(3) Other related transactions
Integrated service charges
In RMB Yuan
Related parties Nature of the transaction Report period Amount Same period of last
period Amount
Payment of land rental fees 3,091,095.90 8,592,223.08
Payment of building rental fees 1,197,968.00 1,197,968.00
Changan Industries (Group) Co. Ltd
Payment of utilities 27,574,790.98 34,902,256.18
Others 513,677.67 1,234,867.44
Total 32,377,532.55 45,927,314.70
Purchase of project materials
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Chang'an Minsheng Logistics Co., Ltd 8,150.95 1,266,884.27
Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd 7,830,088.50 5,616,000.00
Total 7,838,239.45 6,882,884.27
Staff expenses for technical supporting
80
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chang'an Mazda Automobile Co., Ltd 222,474.38 5,349,433.96
Changan Ford Motor Co., Ltd 7,943,502.33 8,106,439.00
Changan Mazda Engine Co., Ltd. 242,821.56 -
Hainan Anxinxing Information Technology Co., Ltd. 634,354.87 -
Chongqing Chang'an New Energy Vehicle Technology Co., Ltd - 1,223,495.73
Chongqing Shangfang Auto Parts Co., Ltd - 53,900.00
Total 9,043,153.14 14,733,268.69
Techonology development service charges
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Tsingshan Industrial Co., Ltd. - 2,558,531.66
Collection of trademark use rights fees
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Kuayue Automobile Co., Ltd. 270,188.68 -
Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 16,862,815,259.42 19,652,980,551.77
Changan Automobile Finance Co., Ltd 10,500,000,000.00 12,000,000,000.00
Total 27,362,815,259.42 31,652,980,551.77
In 2022, the annual interest rate of deposits deposited with related parties is 0.35% - 2.25%, and the term is 0-12 months.
Borrowing
Short-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 140,466,500.00 73,300,000.00
81
Interest income of deferred payment
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Wanyou Automobile Investment Co., Ltd - 15,340.71
Chengdu Wanyou Xiangyu Automobile Sales Service
- 50,616.82
Co., Ltd
Chengdu Wanyou Automobile Trade Service Co., Ltd - 58,781.86
Yunnan Wanyou Automobile Sales Service Co., Ltd - 31,071.82
Guizhou Wanyou Automobile Sales Service Co., Ltd - 70,417.82
Anhui Wanyou Automobile Sales Service Co., Ltd - 1,862.83
Jiangsu Wanyou Automobile Sales Service Co., Ltd - 199.12
Chongqing Wanyou Economic Development Co., Ltd 6,588.40 21,953.77
China Changan Automobile Group Hefei Investment
- -
Co., Ltd
China Changan Automobile Group Tianjin Sales Co.,
2,489.29 -
Ltd.
Total 9,077.69 250,244.75
6. Payment and receivables of related parties
(1) Payment receivables of related listed companies
In RMB Yuan
Ending balance Beginning balance
Items Related parties Provision Provision
Book balance for bad- Book balance for bad-
debts debts
Notes Chongqing Chang'an Kuayue Vehicle Co.,
- - 13,841,516.24 -
receivable Ltd
Notes Chongqing Changan Kuayue Automobile
1,850,000.00 - 1,450,000.00 -
receivable Sales Co., Ltd.
Notes Chongqing Changan New Energy Vehicles
875,195,214.16 - 1,707,657,373.40 -
receivable Technology Co., Ltd.
Notes Harbin Dongan Automotive Engine
23,354,574.52 - 9,132,765.60 -
receivable Manufacturing Co., Ltd.
Notes Wanyou Automobile Investment Co., Ltd.
1,417,640,000.00 - 2,175,240,000.00 -
receivable
Notes Chongqing Changan Minsheng Logistics
- - 1,895,178.03 -
receivable Co. Ltd.
Notes Chongqing Wanyou Economic
15,000,000.00 - 25,500,000.00 -
receivable Development Co., Ltd.
Notes Chengdu Wanyou Auto Trade Service Co.,
9,700,000.00 - 24,800,000.00 -
receivable Ltd.
Notes Yunnan Wanyou Auto Sales and Service
24,000,000.00 - 47,000,000.00 -
receivable Co., Ltd.
82
Ending balance Beginning balance
Items Related parties Provision Provision
Book balance for bad- Book balance for bad-
debts debts
Notes Guizhou Wanyou Auto Sales and Service
3,950,000.00 - 5,500,000.00 -
receivable Co., Ltd.
Notes
Chongqing Tsingshan Industrial Co., Ltd. 38,121,507.00 - 7,995,373.20 -
receivable
Subtotal 2,408,811,295.68 - 4,020,012,206.47 -
Account
Changan Ford Automobile Co., Ltd. 1,197,831.91 - 27,571,894.33 -
receivable
Account
Chang'an Mazda Automobile Co., Ltd 10,664,563.95 - 10,443,141.10 -
receivable
Account Chongqing Chang'an Kuayue Vehicle Co.,
39,757,144.90 - 31,600,512.92 -
receivable Ltd
Account Chongqing Changan Kuayue Automobile
- - 128,646.00 -
receivable Sales Co., Ltd.
Account
Changan Auto Finance Co., Ltd. 56,057,800.00 - 27,000,000.00 -
receivable
Account
Beijing Fang’an cresent taxi Co., Ltd. 38,600,000.00 - 38,600,000.00 -
receivable
Account
Jiangling Holdings Co., Ltd. 39,202,448.16 - 43,263,418.79 -
receivable
Account Chongqing Changan New Energy Vehicles
1,677,622,417.76 - 664,390,126.60 -
receivable Technology Co., Ltd.
Account Harbin Dongan Automotive Engine
2,114,270.93 - 21,179,345.59 -
receivable Manufacturing Co., Ltd.
Account Chongqing Chang'an industry (Group)
3,640,174.57 - 192,632.17 -
receivable Co., Ltd
Account Chongqing Changan Minsheng Logistics
16,394,639.72 - 32,259,206.05 -
receivable Co. Ltd.
Account China South Industries Group
1,841.34 - 1,841.34 -
receivable Commercial Factoring Co., Ltd.
Account Tiannak Lingchuan (Chongqing) exhaust
0.03 - 0.03 -
receivable system Co., Ltd
Account
Chongqing Tsingshan Industrial Co., Ltd. 17,242,386.53 - 15,547,355.69 -
receivable
Account
Nanjing LingHang Technology Co., Ltd. 19,626,985.18 - 16,622,454.93 -
receivable
Account
Pakistan Master Automobile Co., Ltd. 54,883,729.42 - 70,424,616.57 -
receivable
Account Ald Fortune Auto Leasing & Renting
3,046,887.28 - - -
receivable (Shanghai) Co., Ltd.
Account Chongqing Nexteer Steering System
1,754,020.00 - - -
receivable Co.,Ltd.
Account Avita Technology (Chongqing) Co., Ltd. 40,037,966.09 - -
receivable
Subtotal 2,021,845,107.77 - 999,225,192.11 -
Other Chongqing Changan New Energy
- - 25,935,000.00 -
receivable Vehicles Technology Co., Ltd.
Other Chongqing Changxin Zhiqi Private Equity
receivable Investment Fund Partnership (Limited - - 26,670,000.00 -
Partnership)
Other Hafei Automobile Co., Ltd
1,500,000.00 - 1,500,000.00 -
receivable
83
Ending balance Beginning balance
Items Related parties Provision Provision
Book balance for bad- Book balance for bad-
debts debts
Other Chongqing Chang'an industry (Group)
1,157,446.69 - 1,157,446.69 -
receivable Co., Ltd
Other Chongqing Changan Minsheng Logistics
- - 596,131.62 -
receivable Co. Ltd.
Other
Nanjing LingHang Technology Co., Ltd. - - 1,027,352.32 -
receivable
Other China South Industry Group Finance Co.,
143,925,948.49 - - -
receivable Ltd.
Other
Changan Mazda Engine Co., Ltd. 41,500,000.00 - - -
receivable
Other
Changan Auto Finance Co., Ltd. 66,943,616.44 - - -
receivable
Other China South Industries Group Financial
411,666.67 - - -
receivable Leasing Co., Ltd.
Subtotal 255,438,678.29 - 56,885,930.63 -
Advanced Chongqing Changan New Energy Vehicles
7,436,914.50 - 5,660,917.50 -
payment Technology Co., Ltd.
Advanced Beijing Wutong Chelian Technology Co.,
13,221,118.24 - 21,982,556.75 -
payment Ltd.
Advanced Chongqing Nexteer Steering System
50,000,000.00 - 50,000,000.00 -
payment Co.,Ltd.
Advanced
Chongqing Tsingshan Industrial Co., Ltd. 180,000,000.00 - 180,000,000.00 -
payment
Advanced Chongqing Shangfang Automobile
800,000.00 - - -
payment Fittings Co., Ltd.
Subtotal 251,458,032.74 - 257,643,474.25 -
(2) Accounts payable to related parties of listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Chongqing Changan New Energy Vehicles
Notes payable 73,653,575.22 100,200,000.00
Technology Co., Ltd.
Notes payable South Inter Air-conditioner Co.,Ltd. 154,858,407.08 76,300,000.00
Notes payable South Tianhe Chassis System Co., Ltd. 30,657,216.00 33,896,189.65
Notes payable Harbin Dongan Auto Engine Co., Ltd. 84,212,389.38 144,790,000.00
Notes payable Harbin Dongan Automotive Engine Manufacturing
317,309,734.51 449,050,000.00
Co., Ltd.
Notes payable Chengdu Ningjiang Zhaohe Automobile Components
2,486,725.66 29,530,000.00
Co., Ltd.
Notes payable Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 60,891,849.56 71,204,039.75
Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 127,360,601.45 293,970,489.20
Notes payable Chongqing Changan Construction Co., Ltd. - 2,417,746.00
Notes payable Chongqing Shangfang Automobile Fittings Co., Ltd. 47,265,458.94 40,747,850.00
Notes payable Chongqing Yihong Engineering Plastic Products Co.,
424,778.76 7,990,000.00
Ltd.
Notes payable Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 23,964,601.77 15,230,000.00
84
Items Related parties Ending balance Beginning balance
Chongqing Jianshe Automobile Air-conditioner Co.,
Notes payable 32,477,876.11 57,320,000.00
Ltd.
Notes payable Chengdu Wanyou Filter Co., Ltd. 26,495,575.22 34,230,000.00
Chengdu Jialing Huaxi Optical & Precision
Notes payable 2,115,044.25 4,420,000.00
Machinery Co., Ltd.
Notes payable Chongqing Dajiang Jiexin Forging Co., Ltd. 1,469,026.55 2,230,000.00
Notes payable Chongqing Nexteer Steering System Co.,Ltd. 397,106,194.69 345,500,000.00
Notes payable Southern Fojiya Auto Parts Co., Ltd. 47,407,079.65 27,690,000.00
Notes payable Chongqing Construction Tongda Industrial Co., Ltd. 13,920,353.98 12,789,350.84
Hubei Huazhong Marelli Automobile Lighting Co.,
Notes payable 195,194,690.27 115,860,000.00
Ltd.
Notes payable Hunan Tianyan Machinery Co., Ltd. - 45,800,000.00
Tiannak Lingchuan (Chongqing) exhaust system Co.,
Notes payable 16,132,743.36 9,110,000.00
Ltd
Notes payable Dajiang Yapp Automotive Systems Co., Ltd. 175,796,460.18 172,180,000.00
Chongqing Hanon Jianshe Automotive Thermal
Notes payable 60,973,451.33 83,160,000.00
Systems Co., Ltd.
Notes payable Nattiefu transmission system (Chongqing) Co., Ltd 118,628,318.58 76,420,000.00
Notes payable Chongqing Tsingshan Industrial Co., Ltd. 1,469,914,925.37 997,630,000.00
Notes payable Chongqing Dajiang Tongyang Plastics Co., Ltd. 231,237,035.40 72,710,000.00
Chongqing Lingchuan Auto Parts Manufacturing
Notes payable 52,238,938.05 50,210,000.00
Technology Co., Ltd.
Changan Reis (Chongqing) Robotic Intelligent
Notes payable 2,332,739.20 16,298,837.60
Equipment Co., Ltd.
Longchang Shanchuan Precision Welded Tube Co.,
Notes payable 3,168,141.59 700,000.00
Ltd.
Notes payable Sichuan Jian'an Industrial Co.,Ltd. 188,739.00 -
Notes payable Hunan Tianyan Machinery Co., Ltd 2,761,061.95 -
Chongqing Dajiang Guoli Precision Machinery
Notes payable 750,000.00 -
Manufacturing Co., Ltd.
Subtotal 3,773,393,733.06 3,389,584,503.04
Account
Changan Ford Automobile Co., Ltd. 1,876,397.28 1,943,909.28
payable
Account
Chongqing Chang'an Kuayue Vehicle Co., Ltd 1,382.56 5,271,250.56
payable
Account
Jiangling Holdings Co., Ltd. - 37,578,608.85
payable
Account Chongqing Changan New Energy Vehicles
569,161,014.38 45,785,722.56
payable Technology Co., Ltd.
Account
Beijing Wutong Chelian Technology Co., Ltd. 1,890,124.42 5,798,358.99
payable
Account
Sichuan Jian'an Industrial Co.,Ltd. 77,788,415.77 114,453,923.31
payable
Account
South Inter Air-conditioner Co.,Ltd. 73,709,692.40 156,165,656.54
payable
Account
South Tianhe Chassis System Co., Ltd. 100,903,509.05 218,042,109.95
payable
Account
Hafei Automobile Co., Ltd 585,059.89 949,114.25
payable
Account
Harbin Dongan Auto Engine Co., Ltd. 80,984,236.14 155,019,007.24
payable
85
Items Related parties Ending balance Beginning balance
Account Harbin Dongan Automotive Engine Manufacturing
61,479,413.92 79,164,395.58
payable Co., Ltd.
Account
Chengdu Huachuan Electric Equipment Co., Ltd. 37,181,494.47 42,505,846.09
payable
Account Chengdu Ningjiang Zhaohe Automobile Components
2,216,025.30 8,406,255.55
payable Co., Ltd.
Account
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 20,879,087.61 24,528,900.28
payable
Account
Chongqing Chang'an industry (Group) Co., Ltd 230,300.45 601,702.05
payable
Account
Chongqing Changan Minsheng Logistics Co. Ltd. 15,738,483.05 26,921,418.99
payable
Account
Chongqing Shangfang Automobile Fittings Co., Ltd. 13,992,129.08 26,347,971.01
payable
Account
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 8,136,111.93 16,297,923.33
payable
Account Chongqing Yihong Engineering Plastic Products Co.,
8,402,004.46 1,278,419.64
payable Ltd.
Account
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 14,894,483.07 22,108,475.58
payable
Account
Yunnan Xiyi Industries Co., Ltd. 11,932,179.26 1,815,316.79
payable
Account Chongqing Jianshe Automobile Air-conditioner Co.,
14,076,145.30 22,265,092.41
payable Ltd.
Account
Chongqing Wanyou Economic Development Co., Ltd. 5,873,696.66 3,256,626.28
payable
Account
Chengdu Wanyou Filter Co., Ltd. 24,009,421.78 14,085,492.47
payable
Account
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 4,817,919.08 4,627,147.80
payable
Account
Chongqing Changrong Machinery Co., Ltd. 42,596,502.91 48,459,589.80
payable
Account Chengdu Jialing Huaxi Optical & Precision
223,713.10 1,137,544.54
payable Machinery Co., Ltd.
Account
Chongqing Dajiang Jiexin Forging Co., Ltd. 202,240.50 103,404.61
payable
Account
Chongqing Jialing Yimin Special Equipment Co., Ltd. 92,474.78 104,496.50
payable
Account
Chongqing Nexteer Steering System Co.,Ltd. 244,007,757.31 303,819,542.94
payable
Account
Southern Fojiya Auto Parts Co., Ltd. 77,443,544.95 111,176,628.27
payable
Account Chongqing Wanyou Xingjian Auto Sales & Service
20,842.80 20,842.80
payable Co., Ltd.
Account
Chongqing Xiyi automobile connecting rod Co., Ltd 34,001.89 38,422.14
payable
Account
Chongqing Construction Tongda Industrial Co., Ltd. 9,123,901.09 16,219,154.70
payable
Account Hubei Huazhong Marelli Automobile Lighting Co.,
109,758,388.95 276,099,169.78
payable Ltd.
Account
Hunan Tyen Machinery Co., Ltd. - 2,083,314.54
payable
Account Tiannak Lingchuan (Chongqing) exhaust system Co.,
- 8,304,368.73
payable Ltd
86
Items Related parties Ending balance Beginning balance
Account Chongqing Dajiang Guoli Precision Machinery
5,077,519.43 14,889,297.76
payable Manufacturing Co., Ltd.
Account
Dajiang Yapp Automotive Systems Co., Ltd. 106,359,451.72 130,308,165.60
payable
Account
United Automotive Electronics (Chongqing) Co., Ltd 73,333,178.48 43,729,758.05
payable
Account Chongqing Hanon Jianshe Automotive Thermal
26,538,929.09 22,651,086.10
payable Systems Co., Ltd.
Account Lear Chang'an (Chongqing) Automotive System Co.,
47,581.98 59,478,481.96
payable Ltd
Account
Nattiefu transmission system (Chongqing) Co., Ltd 54,552,553.70 67,131,433.77
payable
Account
Chongqing Tsingshan Industrial Co., Ltd. 491,172,400.35 289,136,235.05
payable
Account
Chongqing Dajiang Tongyang Plastics Co., Ltd. 55,435,639.23 122,247,111.17
payable
Account Chongqing Lingchuan Auto Parts Manufacturing
32,841,577.74 23,129,987.81
payable Technology Co., Ltd.
Account Changan Reis (Chongqing) Robotic Intelligent
14,909,734.42 129,036.87
payable Equipment Co., Ltd.
Account Chengdu Wanyou Xiangyu Auto Sales and Service
1,544.70
payable Co., Ltd.
Account
Guizhou Wanyou Auto Sales and Service Co., Ltd. -
payable
Account Chongqing Jianshe Mechanical & Electrical
41,828.24 47,265.91
payable Equipment Co., Ltd.
Account Longchang Shanchuan Precision Welded Tube Co.,
2,617,874.56 2,359,553.08
payable Ltd.
Account
CDGM Tanaka Environmental Catalyst Co.,Ltd. - 83,175.03
payable
Account
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 56,251.08 56,251.08
payable
Account
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 1,850,577.35
payable
Account
China Changan Automobile Group Co., Ltd. - 14,756.94
payable
Account
Chongqing Qingshan Transmission Sales Co., Ltd. 9,814,025.62 10,260,951.97
payable
Account Beijing Beiji Mechanical and Electrical Industry Co.,
10,471.18 29,268.25
payable Ltd.
Account
Chengdu Lingchuan Special Industry Co., Ltd. 317,173.63 325,142.83
payable
Account
Chongqing Automobile Air-conditioner Co., Ltd. 205,041.51 205,041.51
payable
Account
Chongqing Pingshan Tk Carburetor Co., Ltd. 12,590.46 70,083.18
payable
Account
Chongqing Jianshe Industry (Group) Co., Ltd. 723,638.35 857,195.55
payable
Account
Hangzhou Chelizi Intelligent Technology Co., Ltd. 12,350.00 12,350.00
payable
Account Chongqing Changjiang Electrician Industry Group
8,995.09 -
payable Co.,Ltd.
Account Chongqing Changan Minsheng Dingjie Logistics
5,005.12 -
payable Co.,Ltd.
87
Items Related parties Ending balance Beginning balance
Account Southwest Ordnance Industry Chongqing
726,118.30 -
payable Environmental Protection Research Institute Co., Ltd.
Account
Hunan Tianyan Machinery Co., Ltd 938,809.93 -
payable
Account Nanchang Jiangling Group Tianren Auto Parts Co.,
40,473.56 -
payable Ltd.
Subtotal 2,510,061,308.36 2,591,788,876.25
Contract
Changan Mazda Engine Co., Ltd. 3,256,185.92 3,060,368.00
liabilities
Contract
Chongqing Anfu Automobile Co., Ltd. - 73,268.00
liabilities
Contract
Hafei Automobile Co., Ltd 670,500.00 670,500.00
liabilities
Contract China Changan Automobile Group Tianjin Sales Co.,
28,700,026.13 37,209,408.83
liabilities Ltd.
Contract
Wanyou Automobile Investment Co., Ltd. 19,883,325.74 68,334,467.34
liabilities
Contract
Chongqing Shangfang Automobile Fittings Co., Ltd. 12,979.98 12,979.98
liabilities
Contract
Chongqing Wanyou Economic Development Co., Ltd. 127,296,062.70 269,281,235.61
liabilities
Contract
Chengdu Wanyou Auto Trade Service Co., Ltd. 10,551,862.75 51,006,262.19
liabilities
Contract
Yunnan Wanyou Auto Sales and Service Co., Ltd. 45,547,345.95 101,043,742.82
liabilities
Contract
Guizhou Wanyou Auto Sales and Service Co., Ltd. 43,657,174.14 133,567,022.54
liabilities
Contract Chengdu Wanyou Xiangyu Auto Sales and Service
82,528,018.07 118,480,778.11
liabilities Co., Ltd.
Contract
Yunnan Wanxing Auto Sales Service Co., Ltd. - 15,033,974.67
liabilities
Contract
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 25,444.47 17,855.01
liabilities
Contract
Ya'an Wanyou Auto Sales and Service Co., Ltd. 59,061.55 23,611.57
liabilities
Contract Chongqing Wanyou Ducheng Auto Sales Service Co.,
91,454.74 21,566.76
liabilities Ltd.
Contract Chongqing Wanyou Xingjian Auto Sales & Service
81,681.75 68,346.03
liabilities Co., Ltd.
Contract
Luzhou Wanyou Automobile Service Co., Ltd. 33,250.36 50,528.84
liabilities
Contract
Chengdu Wanyou Auto Sales and Service co.,Ltd. 70,485.86 30,005.78
liabilities
Contract
Bazhong Wanyou Auto Sales & Service Co., Ltd. 50,426.48 50,426.48
liabilities
Contract China Changan Automobile Group Hefei Investment
10,273.00 10,273.00
liabilities Co., Ltd.
Contract Chongqing Hanon Jianshe Automotive Thermal
- 147,080.20
liabilities Systems Co., Ltd.
Contract
Jiangling Holdings Co., Ltd. - 6,854,200.00
liabilities
Contract
Anhui Wanyou Automobile Sales Service Co., Ltd. 12,059,637.03 36,775,197.75
liabilities
88
Items Related parties Ending balance Beginning balance
Contract
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 17,289,631.06 41,137,071.23
liabilities
Contract Chongqing Chang'an Minsheng Boyu Logistics Co.,
593,181.33 2,646,426.62
liabilities Ltd.
Contract
Guangxi Wanyou Auto Sales and Service Co., Ltd. - 302.40
liabilities
Contract Chongqing Wanyou Zunda Automobile Sales &
12,497,423.10 22,362,432.39
liabilities Service Co., Ltd.
Contract Ya'an Changan Affordable Housing Construction Co.,
- 10,000.00
liabilities Ltd.
Contract
Chongqing Chang'an industry (Group) Co., Ltd 114,000.00 -
liabilities
Contract
Pakistan Master Automobile Co., Ltd. 13,261,676.93 -
liabilities
Contract
Chengdu Wanyou Trading Co., Ltd. 11,564.00 -
liabilities
Contract
Chongqing Changan Minsheng Logistics Co. Ltd. 37,040.33 -
liabilities
Contract Nanchang Jiangling Group Tianren Auto Parts Co.,
liabilities Ltd.
6,854,200.00 -
Subtotal 425,243,913.37 907,979,332.15
Other
Chongqing Chang'an Kuayue Vehicle Co., Ltd 163,007,855.00 163,007,855.00
payables
Other
Jiangling Holdings Co., Ltd. - 1,182,839.61
payables
Other Chongqing Changan New Energy Vehicles
699,271,551.58 28,204,667.10
payables Technology Co., Ltd.
Other
Sichuan Jian'an Industrial Co.,Ltd. 62,545.95 709,839.37
payables
Other
Chongqing Anfu Automobile Co., Ltd. 100,000.00 200,000.00
payables
Other
South Inter Air-conditioner Co.,Ltd. - 425,490.20
payables
Other
South Tianhe Chassis System Co., Ltd. 553,186.42 606,242.21
payables
Other
Harbin Dongan Auto Engine Co., Ltd. - 4,839.23
payables
Other Harbin Dongan Automotive Engine Manufacturing
1,180,233.02 1,258,466.14
payables Co., Ltd.
Other
Chengdu Huachuan Electric Equipment Co., Ltd. - 356,673.20
payables
Other
Chongqing Chang'an industry (Group) Co., Ltd 899,884.90 2,010,787.85
payables
Other
Chongqing Changan Minsheng Logistics Co. Ltd. 415,254,444.97 123,243,509.52
payables
Other
Chongqing Changan Construction Co., Ltd. 26,375,786.10 26,391,448.08
payables
Other
Chongqing Changan Property Management Co., Ltd. 1,450,735.65 1,587,169.00
payables
Other
Chongqing Shangfang Automobile Fittings Co., Ltd. 22,600.00 3,390.00
payables
Other
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. - 1,349.36
payables
89
Items Related parties Ending balance Beginning balance
Other
Yunnan Xiyi Industries Co., Ltd. - 25,130.48
payables
Other
Chongqing Wanyou Economic Development Co., Ltd. 122,799.84 245,798.56
payables
Other
Chengdu Wanyou Auto Trade Service Co., Ltd. 69,894.53 1,296,988.78
payables
Other
Chengdu Wanyou Filter Co., Ltd. 153,622.59 143,553.10
payables
Other
Yunnan Wanyou Auto Sales and Service Co., Ltd. 136,272.10 3,756,167.26
payables
Other
Guizhou Wanyou Auto Sales and Service Co., Ltd. 71,521.60 828,912.03
payables
Other
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 13,141.40 24,646.80
payables
Other
Ya'an Wanyou Auto Sales and Service Co., Ltd. 8,309.50 733,079.80
payables
Other Chongqing Wanyou Ducheng Auto Sales Service Co.,
- 42,215.90
payables Ltd.
Other
Luzhou Wanyou Automobile Service Co., Ltd. 5,399.80 4,401.62
payables
Other
Chengdu Wanyou Auto Sales and Service co.,Ltd. - 350,000.00
payables
Other
Chongqing Construction Tongda Industrial Co., Ltd. - 21,164.90
payables
Other Hubei Huazhong Marelli Automobile Lighting Co.,
- 530,196.00
payables Ltd.
Other
Hunan Tyen Machinery Co., Ltd. - 951,324.40
payables
Other
United Automotive Electronics (Chongqing) Co., Ltd 317,527.48 263,423.01
payables
Other
Nattiefu transmission system (Chongqing) Co., Ltd 1,072,449.10 89,857.60
payables
Other
Chongqing Tsingshan Industrial Co., Ltd. 1,721,008.08 565,792.16
payables
Other
Chongqing Dajiang Tongyang Plastics Co., Ltd. - 1,067,850.00
payables
Other Chongqing Lingchuan Auto Parts Manufacturing
56,239.83 332,961.91
payables Technology Co., Ltd.
Other Changan Reis (Chongqing) Robotic Intelligent
517,902.06 18,027,403.31
payables Equipment Co., Ltd.
Other Chengdu Wanyou Xiangyu Auto Sales and Service
- 5,204,000.00
payables Co., Ltd.
Other
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 548.00 504,400.00
payables
Other Chongqing Chang'an Intelligent Industrial
1,101,001.00 1,507,567.09
payables Technology Service Co., Ltd
Other
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. - 50,000.00
payables
Other
China Changan Automobile Group Co., Ltd. 1,000.00 1,000.00
payables
Other
Chengdu Wanyou Trading Co., Ltd. 1,795.00 12,333.20
payables
Other Ald Fortune Auto Leasing & Renting (Shanghai) Co.,
9,000,000.00 1,500,000.00
payables Ltd.
90
Items Related parties Ending balance Beginning balance
Other
SIAMC Management Co., Ltd. - 253,750,000.00
payables
Other Chongqing Wanyou Zunda Automobile Sales &
950,000.00 -
payables Service Co., Ltd.
Other
Hunan Tianyan Machinery Co., Ltd 695,176.00 -
payables
Other
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 10,227.70 -
payables
Other
Chongqing Nexteer Steering System Co.,Ltd. 316,400.00 -
payables
Other Chongqing Dajiang Guoli Precision Machinery
423,750.00 -
payables Manufacturing Co., Ltd.
Subtotal 1,324,944,809.20 641,024,733.78
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
Total amount of equity instruments granted by the 0.00
company in the current period
Total amount of equity instruments exercised by the 0.00
company in the current period
Total amount of various equity instruments expired 0.00
in the current period of the company
The scope of exercise price of stock options issued
by the company at the end of the period and the No
remaining term of the contract
Restricted shares were granted for the first time in February 2021, the grant
The scope of exercise price of other equity price was 6.66 yuan/share (before adjustment), and the remaining term is 44
instruments issued at the end of the period and the months;
remaining term of the contract Restricted shares were reserved for grant in November 2021, the grant price was
9.93 yuan/share (before adjustment), and the remaining term is 54 months
2. Equity settled share based payment
√ Applicable □ Non-applicable
In RMB Yuan
Determination method of fair value of equity
Market price method model calculation
instruments on the grant date
Basis for determining the number of exercisable Based on the best estimate of the number of exercisable equity instruments, the
equity instruments relevant expenses and costs are calculated according to the fair value of the
equity instruments on the grant date
Reasons for significant differences between the
No
current estimate and the previous estimate
Cumulative amount of equity settled share based 460,850,767.92
payment included in capital reserve
Total recognized expenses of equity settled share 192,310,900.00
based payment in the current period
91
3. Cash settled share based payment
□ Applicable √ Not applicable
4. Modification and termination of share based payment
□ Applicable √ Not applicable
5. Other
□ Applicable √ Not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Contracted, but not provided for
Items 2022.6.30 2021.12.31
Capital commitments 8,259,320,378.94 9,188,776,086.05
Investment commitments 1,319,000,000.00 1,509,000,000.00
Total 9,578,320,378.94 10,697,776,086.05
2. Contingencies
By June 30, 2022, no material contingencies needed to be disclosed.
XV. Events after the balance sheet date
None
XVI. Other important events
1. Segment information
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.
92
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.
2. Lease arrangements
(1) As lessor
The Group leases buildings, machinery and equipment and vehicles for a lease term of 1-15 years, forming an operating lease.
Details for investment property and operating leased fixed assets refer to note VII 12 and 13.
The income related to operating leases are listed as follows:
In RMB Yuan
Report period Amount
Leasehold Income 145,340,699.18
According to the lease contract signed with the lessee, the minimum lease collection amount of irrevocable lease is as follows:
In RMB Yuan
Ending balance
Less than 1 year (including 1 year) 426,395,931.18
1 to 2 years (including 2 years) 700,674,461.93
2 to 3 years (including 3 years) 512,269,235.96
3 to 4 years (including 3 years) 124,012,765.96
4 to 5 years (including 3 years) 8,836,477.17
Over 5 years 27,684,118.42
Total 1,799,872,990.62
(2) As lessee
In RMB Yuan
Report period Amount
Interest expense of lease liabilities 1,957,921.01
Short term lease expenses with simplified treatment included in current profit and loss 27,691,557.40
Lease expense of low value assets with simplified treatment included in current profit and loss 1,334,969.44
Total cash outflow related to leasing 64,511,685.33
The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term of
houses and buildings is usually 1-5 years, and that of other equipment is usually 2-5 years.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Aging analysis of accounts receivable is as follow:
In RMB Yuan
93
Account receivable age Ending balance Beginning balance
Less than 1 year (including 1 year) 6,254,482,878.15 6,741,369,355.22
1 to 2 years (including 2 years) 818,651,527.87 353,774,325.51
2 to 3 years (including 3 years) 19,917,931.12 227,529,170.91
Over 3 years 323,296,410.52 711,074,867.37
Total 7,416,348,747.66 8,033,747,719.01
Minus：Provision (102,667,294.30) (102,237,112.42)
7,313,681,453.36 7,931,510,606.59
(2) Movements of provision for accounts receivable are as follows:
In RMB Yuan
Report period Amount
Items Beginning balance Write- Ending balance
Accrual Reversal Others
off
2022.6.30 102,237,112.42 1,613,021.49 1,182,839.61 102,667,294.30
2021.12.31 93,484,241.66 8,752,870.76 102,237,112.42
The amount of bad debt provision recovered or reversed in the current period:
In RMB Yuan
Company name Reversal amount Reversal way
Jiangling Holdings Co., Ltd. 1,182,839.61 Recover money
Total 1,182,839.61
(3) Disclosure of accounts receivable
In RMB Yuan
Ending balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit
expected loss and provision for bad 6,954,854,852.70 93.78 76,456,236.54 1.10 6,878,398,616.16
debts
Assess bad debt provision for
expected credit expected loss
461,493,894.96 6.22 26,211,057.76 5.68 435,282,837.20
according to credit risk characteristics
combination
Total 7,416,348,747.66 100.00 102,667,294.30 1.38 7,313,681,453.36
Beginning balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit
expected loss and provision for bad 7,844,348,937.41 97.64 77,639,076.15 0.99 7,766,709,861.26
debts
Assess bad debt provision for
expected credit expected loss 189,398,781.60 2.36 24,598,036.27 12.99 164,800,745.33
according to credit risk
94
characteristics combination
Total 8,033,747,719.01 100.00 102,237,112.42 1.27 7,931,510,606.59
2. Other receivables
In RMB Yuan
Items Ending balance Beginning balance
Dividends receivable 255,356,145.11
Other receivables 140,246,934.04 1,756,623,581.93
Total 395,603,079.15 1,756,623,581.93
(1) Dividends receivable
In RMB Yuan
Items ( or invested units ) Ending balance Beginning balance
China South Industry Group Finance Co., Ltd. 143,737,428.00
China South Industries Group Financial Leasing
411,666.67
Co., Ltd.
China Automotive Power Battery Research Institute
73,034.00
Co., Ltd.
Changan Auto Finance Co., Ltd. 66,943,616.44
Changan Mazda Engine Co., Ltd. 41,500,000.00
Southwest Securities Co.,Ltd. 2,690,400.00
Total 255,356,145.11
(2) Other receivables
1) Aging analysis of other receivables is as follows:
In RMB Yuan
Account receivable age Ending balance Beginning balance
Within 1 year 115,234,097.54 1,745,128,693.03
1 to 2 years 15,575,042.47 1,413,046.51
2 to 3 years 219,332.85 497,065.04
Over 3 years 16,293,996.23 16,804,017.31
Total 147,322,469.09 1,763,842,821.89
Minus：Provision (7,075,535.05) (7,219,239.96)
140,246,934.04 1,756,623,581.93
2) Analysis of other receivables by nature is as follows:
In RMB Yuan
Items Ending balance Beginning balance
Energy-saving and new energy subsidy 358,470,077.96
95
Prepaid equity investment 526,670,000.00
Petty cash 37,672,721.77 21,998,665.75
Disposal income of assets 3,984,842.15
Internal transactions 46,193,815.58 791,370,940.07
Others 56,380,396.69 54,129,056.00
Total 140,246,934.04 1,756,623,581.93
3) 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:
In RMB Yuan
Report period Amount
Beginning
Items Write- Ending balance
balance Accrual Reversal Others
off
2022.6.30 7,219,239.96 59,477.10 203,182.01 7,075,535.05
2021.12.31 7,154,284.79 64,955.17 7,219,239.96
Among them, the amount of bad debt provision reversed or recovered in the current period is important:
In RMB Yuan
Company name Reversal amount Reversal way
Jiangling Holdings Co., Ltd. 203,182.01 Recover money
Total 203,182.01
4) Top five debtors of other receivables are as follows:
In RMB Yuan
Ending
Proportion of total
Items Nature of payment Ending balance Aging balance of
other receivables (%)
provision
First place Internal transactions 20,677,497.16 Within 1 year 14.04
Second place Electricity expense 10,815,169.74 Within 1 year 7.34
Third place Gas costs 6,143,019.88 Within 1 year 4.17
Fourth place Margin 3,213,301.80 1 to 2 years 2.18
Extended insurance
Fifth place 3,000,000.00 Within 1 year 2.04
premiums
Total 43,848,988.58 29.76
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2022, the Group had no other receivables derecognized as financial asset transfers (December 31, 2021: None).
96
3. Long-term equity investment
（1） Investment in subsidiaries
In RMB Yuan
Changes during report period
Provisio Ending Balance of
Investee Opening Balance reduce Ending Balance
n for provision
Addition invest Other reduction
impairm
ment
ent
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 422,533,259.00
Chongqing Changan International Automobile
13,068,581.00 13,068,581.00
Sales Co., Ltd.
Chongqing Changan Automobile Supporting
29,700,000.00 29,700,000.00
Service Co., Ltd.
Chongqing Changan Special Automobile Co.,
2,500,000.00 2,500,000.00
Ltd.
Chongqing Changan Europe Design Academy
155,469,913.50 155,469,913.50
Co., Ltd.
Chongqing Changan New Energy Automobile
- 49,194,195.00
Co. Ltd.
Changan United Kingdom R&D Center Co.,
250,093,850.95 250,093,850.95
Ltd.
Chongqing Changan Connected Car
88,500,000.00 88,500,000.00
Technology Co., Ltd.
Beijing Changan R&D Center Co., Ltd. 1,000,000.00 1,000,000.00
Changan United States R&D Center Co., Ltd. 10,243,460.00 10,243,460.00
Changan Japan Designing Center Co.,Ltd. 1,396,370.15 1,396,370.15
Hefei Changan Automobile Co.,Ltd. 1,535,367,765.23 1,535,367,765.23
Changan Automobile Russia Co., Ltd. 251,242,589.15 251,242,589.15
Chongqing Changan Lingyao Automobile Co.,
594,949,059.30 594,949,059.30
Ltd.
Changan Brazil Holdings Limited 2,584,556.97 2,584,556.97
Changan Automobile Investment (Shenzhen) 235,248,871.00 2,640,640.00 237,889,511.00
97
Co., Ltd.
Chongqing Anyi Automobile Technical Service
2,000,000.00 2,000,000.00
Co., Ltd.
Guangzhou Changan New Energy Automobile
4,000,000.00 4,000,000.00
Co. Ltd.
Xiamen Changan New Energy Automobile Co.
2,000,000.00 2,000,000.00
Ltd.
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00 10,000,000.00
Nanjing Changan New Energy Automobile
50,000,000.00 50,000,000.00
Sales & Service Co., Ltd.
Chongqing Changan Automobile Software
99,000,000.00 99,000,000.00
Technology Co., Ltd.
Chongqing Changan Kaicheng Automobile
977,793,971.55 977,793,971.55
Technology Co., Ltd.
Avatr Technology (Chongqing) Co., Ltd. 153,841,669.77 （153,841,669.77）
Chongqing Xingzhi Technology Co., Ltd. (Note
1)
Total 4,892,533,917.57 2,640,640.00 （153,841,669.77） 4,741,332,887.80 49,194,195.00
Note 1: In May 2022, Chongqing Xingzhi Technology Co., Ltd. was added as a subsidiary.
（2） Investment in associates and joint ventures
In RMB Yuan
Changes during report period
Opening Investment Ending
Investee Other Other Provision
Balance reduce income/loss Dividend of Balance
Addition comprehensive changes in for Others
investment under equity cash declared
income equity impairment
method
1. Joint ventures
Changan Ford Automobile
2,934,876,043.99 522,860,908.17 3,457,736,952.16
Co., Ltd.
Changan Mazda Automobile
1,867,086,106.67 236,050,510.98 (381,500,000.00) 1,721,636,617.65
Co., Ltd.
Changan Mazda Engine Co.,
835,121,564.38 15,784,275.65 (41,500,000.00) 809,405,840.03
Ltd.
98
Nanchang Jiangling
1,630,596,420.97 88,264,113.54 1,718,860,534.51
Investment Co., Ltd.
Subtotal 7,267,680,136.01 862,959,808.34 (423,000,000.00) 7,707,639,944.35
2. Associates
Jiangling Holding Co., Ltd. 70,492,790.08 (41,202,595.77) 29,290,194.31
Chongqing Changan
Kuayue Automobile Co., 242,792,196.86 (20,594,524.55) 222,197,672.31
Ltd.
Changan Automobile
2,520,349,332.44 152,764,747.43 (66,943,616.44) 2,606,170,463.43
Finacing Co., Ltd.
Chongqing Changan New
Energy Vehicles Technology - 1,360,000,000.00 (953,589,718.33) 663,566,110.70 1,069,976,392.37
Co., Ltd.
Avatr Technology
871,119,835.57 (82,620,701.16) 146,228.18 788,645,362.59
(Chongqing) Co., Ltd.
Hainan Anxinxing
Information Technology - 368,900.00 (368,900.00)
Co., Ltd.
Nanjing Chelai Travel
866,888.90 (97,213.22) 769,675.68
Technology Co., Ltd.
Coresing Semiconductor
25,285,116.95 (552,714.09) 24,732,402.86
Technology Co., Ltd.
Nanjing Leading Equity
Investment Management 1,133,065.60 (9,266.61) 1,123,798.99
Co., Ltd.
Nanjing Leading Equity
Investment Partnership 2,424,143,949.52 (42,899.72) 2,424,101,049.80
(Limited Partnership)
Zhongqi Chuangzhi
190,534,997.15 (9,012,542.48) 181,522,454.67
Technology Co., Ltd.
Chongqing Changxin Zhiqi
Private Equity Investment
25,007,587.62 (5,754.39) 25,001,833.23
Fund Partnership (Limited
Partnership)
Subtotal 5,500,605,925.12 2,231,488,735.57 (955,332,082.89) 146,228.18 663,566,110.70 (66,943,616.44) 7,373,531,300.24
Total 12,768,286,061.13 2,231,488,735.57 (92,372,274.55) 146,228.18 663,566,110.70 (489,943,616.44) 15,081,171,244.59
99
4. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Items
Revenue Cost Revenue Cost
Main business 47,015,290,808.29 39,177,855,123.67 49,511,486,065.29 43,920,794,847.39
Other business 3,275,009,762.83 1,737,129,368.96 3,316,919,115.43 1,592,749,547.20
Total 50,290,300,571.12 40,914,984,492.63 52,828,405,180.72 45,513,544,394.59
5. Investment income
In RMB Yuan
Items Current amount Prior-period amount
Long-term equity investment losses
594,000,000.00
accounted for by the cost method
Long-term equity investment losses
(92,372,274.55) 349,815,853.13
accounted for by the equity method
The investment income of financial asset held for trading during its
2,690,400.00
holding period
Dividend income from remaining investments in
144,222,128.67 70,204,197.65
other equity instruments
Gains from the remeasurement of the remaining equity at fair value after
337,513,868.21
the loss of control
Interest income from entrusted loan 8,099,253.16
Total 986,054,122.33 428,119,303.94
Long-term equity investment income under equity method
In RMB Yuan
Investee Current amount Prior-period amount
Changan Ford Automobile Co., Ltd. 522,860,908.17 362,952,450.03
Changan Mazda Engine Co., Ltd. 15,784,275.65 15,721,810.83
Hainan Anxinxing Information Technology Co., Ltd. (368,900.00) (1,009,343.24)
Nanjing Chelai Travel Technology Co., Ltd. (97,213.22) (134,310.36)
Jiangling Holding Co., Ltd. (41,202,595.77) (48,302,837.53)
Changan Mazda Automobile Co., Ltd. 236,050,510.98 280,357,717.64
Chongqing Changan Kuayue Automobile Co., Ltd. (20,594,524.55) 4,994,618.02
Changan Automobile Finacing Co., Ltd. 152,764,747.43 129,697,153.59
Avatr Technology (Chongqing) Co., Ltd. (82,620,701.16)
Coresing Semiconductor Technology Co., Ltd. (552,714.09) (514,689.73)
Nanchang Jiangling Investment Co., Ltd. 88,264,113.54 78,245,997.25
Chongqing Changan New Energy Vehicles Technology Co., (953,589,718.33) (471,341,755.14)
Ltd.
Nanjing Leading Equity Investment Partnership (Limited (42,899.72) (33,139.50)
Partnership)
Nanjing Leading Equity Investment Management Co., Ltd. (9,266.61) (64,190.89)
Zhongqi Chuangzhi Technology Co., Ltd. (9,012,542.48) (753,627.84)
Chongqing Changxin Zhiqi Private Equity Investment Fund (5,754.39)
Partnership (Limited Partnership)
Total (92,372,274.55) 349,815,853.13
100
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
√ Applicable □ Non-applicable
In RMB Yuan
Items Amount explanation
Profit and loss of non-current assets disposition 68,244,082.28
Government subsidies counted in current profit and loss (except the
government subsidies which are closely related with business events, 525,001,514.96
and given certain amount according to national standards)
Interest on late payment of funds charged to non-financial enterprises 12,993,036.40
In addition to the effective hedging business related to the company's
normal business operations, the fair value changes in gains and losses 26,136,888.77
arising from holding trading financial assets
Gains from the remeasurement of the remaining equity at fair value
2,128,305,938.85
after the loss of control
Other non-operating income and expenses other than the above 49,496,422.28
Minus:Income tax impact 37,348,447.66
Minority shareholders' equity impact (after tax) 15,317,119.44
Total 2,757,512,316.44 --
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the
Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies Offering
Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
2. Return on equity and earnings per share
Weighted average Earnings per share
Profit in report period return on equity
（%） Basic EPS(yuan/share) Diluted EPS(yuan/share)
Net profit belonging to the Company’s common
10.06 0.60 0.59
stockholders
Net profit belonging to the Company’s common
stockholders after deducting non-recurring profit 5.33 0.31 0.31
and loss
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for information
disclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings per
share (revised in 2010) of the CSRC.
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad
have adjusted the data differences, identify the name of the auditing institution abroad.
None
101
4. Others
□ Applicable √ Not applicable
102
