Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Chongqing Jianshe Vehicle System Co., Ltd.
The Semi-Annual Financial Report 2023
2023-058
July 29,2023
1
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd.
June 30, 2023
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 99,426,658.94 179,954,522.99
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Note receivable
Account receivable 110,746,751.72 113,710,214.72
Financing of receivables 32,933,299.86 17,548,591.75
Prepayments 4,963,265.02 4,024,366.02
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 2,560,300.89 1,720,044.17
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 141,736,916.92 131,860,572.93
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 2,362,443.87 1,468,399.16
Total of current assets 394,729,637.22 450,286,711.74
2
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 214,081,345.90 210,112,321.04
Other equity instruments investment
Other non-current financial assets
Real estate investment
Fixed assets 199,107,729.27 202,039,143.80
Construction in progress 869,819.59 989,429.96
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 10,911,937.90 11,801,504.95
Development expenses
Goodwill
Long-germ expenses to be amortized 46,931.59 70,280.65
Deferred income tax asset 5,752,057.03 5,752,057.03
Other non-current asset 12,733,820.00 15,860,120.00
Total of non-current assets 443,503,641.28 446,624,857.43
Total of assets 838,233,278.50 896,911,569.17
Current liabilities
Short-term loans 472,393,500.00 546,603,500.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable 65,698,705.89 30,379,988.94
Account payable 199,092,992.50 171,190,476.10
Advance receipts
Contract liabilities 1,867,398.72 3,441,205.38
Selling of repurchased financial assets
Deposit taking and interbank deposit
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 6,138,715.52 8,529,392.78
Tax payable 15,469,010.48 16,649,704.07
Other account payable 7,738,104.48 7,566,872.62
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability 242,761.83 447,356.63
Total of current liability 768,641,189.42 784,808,496.52
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability 836,659.99 1,011,787.97
Other non-current liabilities
Total non-current liabilities 836,659.99 1,011,787.97
Total of liability 769,477,849.41 785,820,284.49
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,565,294.29 958,565,294.29
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Less：Shares in stock
Other comprehensive income 9,800.00 9,800.00
Special reserve 4,209,491.59 3,234,669.03
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -1,139,090,156.79 -1,095,779,478.64
Total of owner’s equity belong to the
68,755,429.09 111,091,284.68
parent company
Minority shareholders’ equity
Total of owners’ equity 68,755,429.09 111,091,284.68
Total of liabilities and owners’ equity 838,233,278.50 896,911,569.17
Legal Representative: Yan Xuechuan
Person in charge of accounting：Tan Mingxian
Person in charge of Accounting institute: Niu Yanli
2.Parent Company Balance Sheet
In RMB
Items June 30,2023 January 1,2023
Current asset：
Monetary fund 4,931,958.09 19,632,308.54
Transactional financial assets
Derivative financial assets
Note receivable
Account receivable 3,058,314.52 3,266,890.00
Financing of receivables 10,000,000.00
Prepayments 3,529,816.33 2,931,781.98
Other account receivable 1,534,570.26 1,345,740.08
Including：Interest receivable
Dividend receivable
Inventories 5,149,089.16 3,992,120.63
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 26,885.79
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Total of current assets 28,203,748.36 31,195,727.02
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 413,126,789.85 409,157,764.99
Other equity instruments investment
Other non-current financial assets
Real estate investment
Fixed assets 26,170,555.82 27,476,448.18
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
Intangible assets
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset
Total of non-current assets 439,297,345.67 436,634,213.17
Total of assets 467,501,094.03 467,829,940.19
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 167,532,633.34 148,575,684.59
Advance receipts
Contract liabilities 141,666.71 177,064.96
Employees’ wage payable 2,211,726.86 4,008,918.72
Tax payable 15,221,145.96 15,529,178.05
Other account payable 267,448,532.51 273,461,451.21
Including：Interest payable
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Dividend payable
Liabilities held for sales
Non-current liability due within 1 year
Other current liability 18,416.67 23,018.42
Total of current liability 452,574,122.05 441,775,315.95
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to staff
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities
Total of liability 452,574,122.05 441,775,315.95
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,565,294.29 958,565,294.29
Less：Shares in stock
Other comprehensive income 9,800.00 9,800.00
Special reserve 386,358.58 430,254.50
Surplus reserves 125,686,000.00 125,686,000.00
Retained profit -1,189,095,480.89 -1,178,011,724.55
Total of owners’ equity 14,926,971.98 26,054,624.24
Total of liabilities and owners’ equity 467,501,094.03 467,829,940.19
3.Consolidated Income statement
In RMB
7
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
The first half year of The first half year of
Items
2023 2022
I. Income from the key business 216,587,683.76 239,131,462.84
Incl：Business income 216,587,683.76 239,131,462.84
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 265,270,904.95 272,184,553.54
Incl：Business cost 203,988,171.59 225,259,680.42
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 2,546,726.54 2,261,872.48
Sales expense 5,490,937.61 6,906,460.34
Administrative expense 26,532,673.41 14,591,203.14
R & D costs 16,634,871.51 14,748,476.51
Financial expenses 10,077,524.29 8,416,860.65
Including：Interest expense
Interest income
Add: Other income 810,385.63 1,201,869.22
Investment gain（“-”for loss） 3,969,024.86 4,372,958.10
Incl: investment gains from affiliates 3,969,024.86 4,372,958.10
Financial assets measured at amortized cost cease to be recognized as
income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss 350,176.04 715,809.13
Impairment loss of assets
Assets disposal income -10,025.19 39,860,952.30
III. Operational profit（“-”for loss） -43,563,659.85 13,098,498.05
Add ：Non-operational income 79,114.42 135,599.04
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Less: Non-operating expense 1,260.70 2,505.21
IV. Total profit(“-”for loss) -43,485,806.13 13,231,591.88
Less：Income tax expenses -175,127.98 -174,346.34
V. Net profit -43,310,678.15 13,405,938.22
(I) Classification by business continuity
1.Net continuing operating profit
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of parent company -43,310,678.15 13,405,938.22
2.Minority shareholders’ equity
VI. Net after-tax of other comprehensive income
Net of profit of other comprehensive income attributable to owners of the pa
rent company.
（I）Other comprehensive income items that will not be reclassified into
gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be
reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments
4. Changes in the fair value of the company’s credit risks
5.Other
（II）
Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be recl
assified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial
assets
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income -43,310,678.15 13,405,938.22
Total comprehensive income attributable to the owner of the parent company -43,310,678.15 13,405,938.22
Total comprehensive income attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share -0.3628 0.1123
(II)Diluted earnings per share -0.3628 0.1123
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Legal Representative: Yan Xuechuan
Person in charge of accounting：Tan Mingxian
Person in charge of Accounting institute: Niu Yanli
4. Income statement of the Parent Company
In RMB
The first half year of The first half year of
Items
2023 2022
I. Income from the key business 148,499,345.80 125,487,819.44
Incl：Business cost 149,841,973.33 130,134,806.19
Business tax and surcharge 179,155.52 495,071.45
Sales expense 125,227.70 256,487.53
Administrative expense 13,787,886.30 10,556,202.46
R & D expense 16,340.21 2,289.66
Financial expenses -230,052.52 -1,015,970.20
Including：Interest expenses
Interest income
Add：Other income 178,401.73 990,023.53
Investment gain（“-”for loss） 3,969,024.86 4,372,958.10
Including: investment gains from affiliates 3,969,024.86 4,372,958.10
Financial assets measured at amortized cost cease to be recognized as
income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income -10,025.19 39,860,952.30
II. Operational profit（“-”for loss） -11,083,783.34 30,282,866.28
Add ：Non-operational income 27.00 134,098.64
Less：Non -operational expenses
III. Total profit(“-”for loss) -11,083,756.34 30,416,964.92
Less：Income tax expenses
IV. Net profit -11,083,756.34 30,416,964.92
1.Net continuing operating profit
2.Termination of operating net profit
V. Net after-tax of other comprehensive income
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
（I）Other comprehensive income items that will not be reclassified into
gains/losses in the subsequent accounting period
1.Re-
measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be
reclassified into profit or loss.
3. Changes in the fair value of investments in other equity instruments
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or loss
1.Other comprehensive income under the equity method investee can be recl
assified into profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial
assets
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income -11,083,756.34 30,416,964.92
VII. Earnings per share
（I）Basic earnings per share -0.0928 0.2548
(II)Diluted earnings per share -0.0928 0.2548
5. Consolidated Cash flow statement
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 203,092,659.05 252,642,976.71
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest, commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Tax returned 10,136,478.36 5,307,251.13
Other cash received from business operation 5,917,839.52 7,927,046.37
Sub-total of cash inflow 219,146,976.93 265,877,274.21
Cash paid for purchasing of merchandise and services 126,711,212.44 158,466,557.60
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee and commission
Cash paid to staffs or paid for staffs 57,457,823.61 52,504,825.00
Taxes paid 4,701,205.62 10,932,898.90
Other cash paid for business activities 9,497,956.90 12,583,760.21
Sub-total of cash outflow from business activities 198,368,198.57 234,488,041.71
Net cash generated from /used in operating activities 20,778,778.36 31,389,232.50
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed assets, intangible assets, and
153,507,597.36
other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 153,507,597.36
Cash paid for construction of fixed assets, intangible assets and other
7,239,847.82 13,442,460.82
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 7,239,847.82 13,442,460.82
Net cash flow generated by investment -7,239,847.82 140,065,136.54
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment from minor shareholders
Cash received as loans 185,103,500.00 276,613,500.00
Other financing –related cash received 17,155,373.08
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Sub-total of cash inflow from financing activities 185,103,500.00 293,768,873.08
Cash to repay debts 259,345,494.44 296,633,093.75
Cash paid as dividend, profit, or interests 10,766,950.79 10,014,809.88
Including: Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities 33,887,860.42 117,442,081.48
Sub-total of cash outflow due to financing activities 304,000,305.65 424,089,985.11
Net cash flow generated by financing -118,896,805.65 -130,321,112.03
IV. Influence of exchange rate alternation on cash and cash equivalents
V.Net increase of cash and cash equivalents -105,357,875.11 41,133,257.01
Add: balance of cash and cash equivalents at the beginning of term 169,994,534.05 23,738,523.19
VI ..Balance of cash and cash equivalents at the end of term 64,636,658.94 64,871,780.20
6. Cash Flow Statement of the Parent Company
In RMB
Items The first half year of 2023 The first half year of 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 71,061,734.13 85,003,841.61
Tax returned
Other cash received from business operation 3,978,253.50 3,302,253.86
Sub-total of cash inflow 75,039,987.63 88,306,095.47
Cash paid for purchasing of merchandise and services 65,877,005.28 86,622,159.34
Cash paid to staffs or paid for staffs 19,438,260.09 16,094,142.66
Taxes paid 927,147.23 8,593,040.69
Other cash paid for business activities 4,269,454.36 4,070,068.57
Sub-total of cash outflow from business activities 90,511,866.96 115,379,411.26
Net cash generated from /used in operating activities -15,471,879.33 -27,073,315.79
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed assets, intangible assets, and
153,507,597.36
other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 153,507,597.36
Cash paid for construction of fixed assets, intangible assets and other
299,160.00 964,947.74
long-term assets
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 299,160.00 964,947.74
Net cash flow generated by investment -299,160.00 152,542,649.62
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing –related ash received 224,103,500.00 189,943,500.00
Sub-total of cash inflow from financing activities 224,103,500.00 189,943,500.00
Cash to repay debts
Cash paid as dividend, profit, or interests
Other cash paid for financing activities 223,032,811.12 293,920,000.00
Sub-total of cash outflow due to financing activities 223,032,811.12 293,920,000.00
Net cash flow generated by financing 1,070,688.88 -103,976,500.00
IV. Influence of exchange rate alternation on cash and cash equivalents
V.Net increase of cash and cash equivalents -14,700,350.45 21,492,833.83
Add: balance of cash and cash equivalents at the beginning of term 19,632,308.54 2,146,167.36
VI ..Balance of cash and cash equivalents at the end of term 4,931,958.09 23,639,001.19
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
The first half year of 2023
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Comm Minor
Items Less: Other Total of
Pref on Ot shareh
Share Capital Shares Comprehe Specialized Surplus Retained owners’
erre Sust Ot risk he Subtotal olders’
Capital reserves in nsive reserve reserves profit equity
d aina he provis r equity
stock Income
stoc ble r ion
k debt
I.Balance at -
119,375,00 958,565,294 3,234,669.0 125,686,000.0 111,091,284 111,091,284
the end of 9,800.00 1,095,779,478
last year 0.00 .29 3 0 .68 .68
.64
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II.Balance at -
the 119,375,00 958,565,294 3,234,669.0 125,686,000.0 111,091,284 111,091,284
9,800.00 1,095,779,478
beginning of 0.00 .29 3 0 .68 .68
current year .64
III.Changed - -
-
in the current 974,822.56 42,335,855. 42,335,855.
year 43,310,678.15
59 59
（1）Total - -
-
comprehensi 43,310,678. 43,310,678.
ve income 43,310,678.15
15 15
（II）
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
（III）Profit
allotment
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
3．Allotmen
t to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
16
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
974,822.56 974,822.56 974,822.56
reserves
1. Provided 1,383,189.9 1,383,189.9 1,383,189.9
this year 6 6 6
2．Used this
-408,367.40 -408,367.40 -408,367.40
term
（VI）Other
IV. Balance -
119,375,00 958,565,294 4,209,491.5 125,686,000.0 68,755,429. 68,755,429.
at the end of 9,800.00 1,139,090,156
this term 0.00 .29 9 0 09 09
.79
Amount in last year
In RMB
The first half year of 2022
Items Owner’s equity Attributable to the Parent Company Minor Total of
Share Other Equity Capital Less: Other Specialized Surplus Comm Retained Ot shareh owners’
Subtotal olders’ equity
Capital instrument reserves Shares Comprehe reserve reserves on profit he
17
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Pref in nsive risk r equity
erre Sust Ot stock Income provis
d aina he ion
stoc ble r
k debt
I.Balance at -
119,375,00 958,565,294 1,713,882.5 125,686,000.0 149,303,592 149,303,592
the end of 9,800.00 1,056,046,383
last year 0.00 .29 0 0 .84 .84
.95
Add: Change
of
accounti
ng
policy
Correcting of
previous
errors
Merger of
entities under
common
control
Other
II.Balance at -
the 119,375,00 958,565,294 1,713,882.5 125,686,000.0 149,303,592 149,303,592
9,800.00 1,056,046,383
beginning of 0.00 .29 0 0 .84 .84
current year .95
III.Changed
14,287,971. 14,287,971.
in the current 882,033.30 13,405,938.22
year 52 52
（1）Total
13,405,938. 13,405,938.
comprehensi 13,405,938.22
ve income 22 22
（II）
Investment
or decreasing
of capital by
owners
1．Ordinary
Shares invest
ed by shareh
olders
2．Holders o
f other equity
instruments i
18
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
nvested capit
al
3．Amount
of shares
paid and
accounted as
owners’
equity
4．Other
（III）Profit
allotment
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
3．Allotmen
t to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3．Making
up losses by
surplus
reserves.
4.Change
19
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
amount of
defined
benefit plans
that carry
forward
Retained
earnings
5．Other
comprehensi
ve income
carry-over
retained
earnings
6．Other
(V). Special
882,033.30 882,033.30 882,033.30
reserves
1. Provided 1,388,392.1 1,388,392.1 1,388,392.1
this year 2 2 2
2．Used this
-506,358.82 -506,358.82 -506,358.82
term
（VI）Other
IV. Balance -
119,375,00 958,565,294 2,595,915.8 125,686,000.0 163,591,564 163,591,564
at the end of 9,800.00 1,042,640,445
this term 0.00 .29 0 0 .36 .36
.73
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
The first half year of 2023
Other Equity instrument Le
ss:
Sh
Other
Items ar
Share Sust Capital Comprehe Specialized Total of owners’
Preferre Othe es Surplus reserves Retained profit Other
capital aina reserves nsive reserve equity
d stock r in
ble Income
st
debt oc
k
I.Balance at the end of last 119,375,0 958,565,294 9,800.00 430,254.50 125,686,000.00 -1,178,011,724.55 26,054,624.24
20
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
year 00.00 .29
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 119,375,0 958,565,294
9,800.00 430,254.50 125,686,000.00 -1,178,011,724.55 26,054,624.24
of current year 00.00 .29
III.Changed in the current
-43,895.92 -11,083,756.34 -11,127,652.26
year
（I）Total comprehensive
-11,083,756.34 -11,083,756.34
income
(II) Investment or
decreasing of capital by
owners
1．Ordinary Shares investe
d by shareholders
2．Holders of other equity
instruments invested capital
3.Amount of shares paid
and accounted as owners’
equity
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
2．Allotment to the owners
(or shareholders)
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans that
21
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
carry forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
6．Other
(V) Special reserves -43,895.92 -43,895.92
1. Provided this year 23,097.66 23,097.66
2．Used this term -66,993.58 -66,993.58
（VI）Other
IV. Balance at the end of 119,375,0 958,565,294
9,800.00 386,358.58 125,686,000.00 -1,189,095,480.89 14,926,971.98
this term 00.00 .29
Amount in last year
In RMB
The first half year of 2022
Other Equity Le
instrument ss:
Sh
Other
Items ar
Share Sust Ot Capital Comprehe Specialized Othe Total of owners’
es Surplus reserves Retained profit
Capital Preferre reserves nsive reserve r equity
aina he in
d stock Income
ble r st
debt oc
k
I.Balance at the end of last 119,375,0 958,565,294.2
9,800.00 612,361.09 125,686,000.00 -1,196,622,075.22 7,626,380.16
year 00.00 9
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 119,375,0 958,565,294.2
9,800.00 612,361.09 125,686,000.00 -1,196,622,075.22 7,626,380.16
of current year 00.00 9
III.Changed in the current
-68,211.78 30,416,964.92 30,348,753.14
year
（I）Total comprehensive
30,416,964.92 30,416,964.92
income
(II) Investment or
decreasing of capital by
22
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
owners
1．Ordinary Shares investe
d by shareholders
2．Holders of other equity
instruments invested capital
3.Amount of shares paid
and accounted as owners’
equity
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
2．Allotment to the owners
(or shareholders)
3．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3．Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans that
carry forward
Retained earnings
5．Other comprehensive
income carry-over retained
earnings
6．Other
(V) Special reserves -68,211.78 -68,211.78
1. Provided this year 59,280.36 59,280.36
2．Used this term -127,492.14 -127,492.14
（VI）Other
IV. Balance at the end of 119,375,0 958,565,294.2
9,800.00 544,149.31 125,686,000.00 -1,166,205,110.30 37,975,133.30
this term 00.00 9
23
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
III．Basic Information of the Company
Chongqing Jianshe Vehicle System Co.,Ltd. (hereinafter referred to as the "Company", "Company" or
"Chongqing Jianshe")，the company’s original name is Chongqing Jianshe Motorcycle Co.,Ltd.，was jointly set
up in July 1995 by the Construction Industry (Group) Co., Ltd. and China North Industries Shenzhen Corporation.
The Business License of the Enterprise: No. 915000007474824231. The Company was listed in July 1995 at the
Shenzhen Stock Exchange. The Company is engaged in the manufacturing industry.
On December 27, 2017, the company issued an announcement that it has completed the relevant business
registration procedures for the change in Chinese, obtained the notice of approval for change of registration of
Chongqing administration of industry and commerce (Chongqing Industrial and commercial registration of
changes [2017] No.1206-1)，got an issue of a business license and approval rear of implementing the Shenzhen
stock exchange. The name of the company was changed from " Chongqing Jianshe Motorcycle Co., Ltd." to "
Chongqing Jianshe Vehicle System Co.,Ltd.". Abbreviation of the company was changed from "Jianmo B" to
"Jianshe B", and the securities code of the company was unchanged at 200054.
On October 22, 2018, Chongqing Jianshe mechanical and electrical co., LTD., the controlling shareholder of
the company, signed the "Equity transfer Agreement for State-owned listed companies" with China South
Industries Group Corporation (hereinafter referred to as "GSGC"). The Chongqing Jianshe mechanical and
electrical co., LTD. transferred 84,906,250 shares of its state-owned legal person shares to the GSGC, it accounts
for 71.13% of the Chongqing Jianshe 's total share capital.
On December 21, 2018, the company received the " Confirmation of registration of securities transfer "
issued by the Shenzhen Branch of China Securities Registration and Clearing Co., Ltd., and the registration
procedures for the transfer of shares under this agreement have been completed in the Shenzhen branch of China
Securities Registration and settlement Co., Ltd. After the completion of this agreement transfer, Chongqing
Jianshe mechanical and electrical co., LTD., would no longer hold shares of the company. GSGC was became the
controlling shareholder of the company, the proportion of shareholding is 71.13%, and the nature of the shares is
State-owned legal person shares.
The ultimate controller of the Company is the State-owned Assets Supervision and Administration
Commission (SASAC).
As at June 30, 2023, the Company issued 119,375,000 shares in total and had the registered capital of
119,375,000. The registration place: NO.1, JIANSHE ROAD HUAXI INDUSTRY PARK, BANAN DISTRICT,
CHONGQING; the headquarters address: Banan District, Chongqing Municipality. Legal representative: Yan
Xuechuan. The main business activities: research and development, processing, manufacturing and related
technical services of Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related
technical services of tooling (except for those subject to national special provisions) ; R & D, production and sales
of motorcycle engines; research , development and processing of mechanical and electrical products, home
appliances, bicycles, environmental protection product; imports, wholesale, retail, commission agency (except
auction) of similar products of these products.
The disclosure of the financial report was approved by the Board of Directors on July 27, 2023.
The scope consolidated financial statements of the first half year of 2023 has reduced 2 subsidiary， Compared
with the previous year, the Company's consolidation scope has not changed.
The company and Chongqing Jianshe Automobile A/C Co., Ltd., its important subsidiary, mainly engaged in
the manufacture, sale of air conditioners and accessories, air conditioning and spare parts maintenance.
24
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
IV. Basis for the Preparation of financial statements
1.Basis for Preparation
According to actually occurred transactions and events, the Company conducts the recognition and
measurement in accordance with the Accounting Standards for Business Enterprises - Basic Standards and
all the specific accounting standards for enterprise, Application Guidance to the Accounting Standards for
Business Enterprises, the interpretation of the Accounting Standards for Business Enterprises and other
relevant provisions (hereinafter referred to as the “Accounting Standards for Business Enterprises”). On this
basis, the Company prepares the financial statements in combination with the disclosure provisions of the
Rules for the Compilation and Submission of Information Disclosure by Companies Offering Securities to
the Public No. 15 - General Requirements for Financial Reports (revised in 2014) issued by the China
Securities Regulatory Commission.
2. Going Concern
The Company was on a going concern basis in 12 months as of the end of the current reporting period and was not
affected by any material event having impact on the going concern.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
None
1. Statement on compliance with accounting standards for business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises, and truly and completely reflect relevant information of the Company during the
reporting period, such as financial position, operation results and cash flows.
2 .Accounting period
The Company’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year from
January 1 to December 31 as one accounting year.
3.Operating cycle
The normal operating cycle refers to the period from the assets used for processing after purchased by the
company to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company,
and which is as the division criterion for the liquidity of assets and liabilities.
4.Functional currency
The functional currency is Renminbi.
25
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
5. Accounting treatments of the combination of enterprises under common control and the combination of
enterprises not under the common control
Business combination refers to the transactions or items with one reporting entity formed by the combination of
two or more separate enterprises. The business combination shall be divided into the business combination under
common control and the business combination under non-common control.
（1）Business combination under common control
The business combination under common control refers to the business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that
control is not transitory. Of which, the combining party is that acquiring the control right to other combining
enterprises at combining date, and the combining date means the date that the combining party actually acquires
the control right of the combined party. The acquisition date means the date that the acquirer actually obtains the
control right of the acquiree.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the
combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Combination of enterprises not under the common control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree.
For the business combination under non-common control, the merger costs include the assets paid for
obtaining the control right of acquiree by the acquirer, the liabilities occurred or borne and the fair value of equity
securities issued, the intermediary fees for audit, legalservices, evaluation and consultation when the business
combination issued, and other management costs shall be recorded into the current profits and losses when
occurred. The transaction costs of equity securities or debt securities issued for the merger consideration by the
acquirer shall be included into the initially recognized amount of the equity securities or the debt securities. The
contingent consideration involved shall be recorded into the merger cost as per the fair value at the acquisition
date. Within 12 months after the acquisition date, the combining business reputation should be adjusted
correspondingly if the contingent consideration is required to adjust because of new or further evidence for the
existed situation on the acquisition date. The merger cost issued by the acquirer and the identifiable net assets
acquired in the combination are measured as per the fair value on the acquisition date. The difference of the
merger cost less the fair value shares of identifiable net assets obtained by the acquiree during the merger on the
acquisition date, is recognized as the business reputation. While the merger cost is less than the fair value shares
of identifiable net assets obtained by the acquiree during the merger, all the measurement on the identifiable
assets, the liabilities, the fair value of liabilities and the merger cost obtained by the acquiree should firstly be
26
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
rechecked, and the difference shall be recorded into the current profits and costs if the merger cost is still less than
the fair value shares of identifiable net assets obtained by the acquiree during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses. For the business combination under non-common control realized step-by-step
through multiple transactions, the multiple transactions shall be judged if belong to “the package deal” according
to the “Notice on Issuance of Interpretation of Accounting Standards for Business Enterprises from Ministry of
Finance” (Finance and Accounting [2012] No.19) and the judgment standards on “the package deal” in Article
51st of “Accounting Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see
Note 3.6 (2)).
For the package deal, please refer to above description of this section and Note 3.14 “Long-term Equity
Investment” to conduction the accounting treatment. For the non-package deal, the relevant accounting treatment
should be respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased
party held before the purchase date and the new investment cost at the purchase date shall be as the initial
investment cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree
held before the acquisition date, the investment and the relevant other comprehensive incomes shall be disposed
through the accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the
acquiree (Namely, the rest is transferred into the current investment incomes with the exception of the
corresponding shares of changes caused by the net liabilities or the net assets of the defined benefit plans re-
measured by the acquiree as per the equity method). In the consolidated financial statements, the equity of the
acquiree held before the acquisition date shall be measured again as per the fair value of the equity on the
acquisition date, and the difference between the fair value and the book value is recorded into the current
investment income.
For the other comprehensive incomes involved in the equity of the acquire held before the acquisition date,
the relevant other comprehensive incomes shall be disposed through the accounting treatment on the same basis of
the direct disposal of the relevant assets or liabilities by the acquire (Namely, the rest is transferred into the current
investment incomes on the acquisition date, with the exception of the corresponding shares of changes caused by
the net liabilities or the net assets of the defined benefit plans re-measured by the acquire as per the equity
method).
6. Preparation of consolidated financial statements
（1）Consolidation scope
The scope of consolidation for the Company’s consolidated financial statements is determined on the basis of
control, and all its subsidiaries (including the independent subject that is under control of the Company) are
included in the consolidated financial statements.
（2）Procedures for consolidation
The Company prepares the consolidated financial statements based on financial statements of itself and its
subsidiaries and according to other relevant information. Upon the preparation of consolidated financial
statements, the Company shall take the enterprise group as a whole accounting entity, and reflects the overall
financial position, operating results and cash flows of the enterprise group in accordance with relevant
27
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
requirements for recognition, measurement and presentation as stated in the Accounting Standards for Business
Enterprises as well as uniform accounting policies.
All the subsidiaries within the scope of consolidation for the consolidated financial statements adopt the same
accounting policies and accounting periods as those of the Company. If the accounting policies or accounting
periods of a subsidiary are different from those of the Company, the consolidated financial statements of the
subsidiary, upon preparation, will be adjusted according to the accounting policies and accounting periods of the
Company.
When preparing the consolidated financial statements, the impacts of the Company and its subsidiaries or the
internal transactions between the subsidiaries on the consolidated balance sheet, consolidated income statement,
consolidated statement of cash flows and consolidated statement of changes in shareholders' equity shall be offset.
If assessments for the same transaction from the enterprise group's consolidated financial statements and the
Company or its subsidiaries as the accounting entity are not the same, such transaction will be adjusted from the
enterprise group.
The share of owners' equity, current net profit or loss and current comprehensive income of subsidiaries
attributable to minority owners are respectively and separately presented under the owner's equity in the
consolidated balance sheet, the net profit in the consolidated income statement, and the total comprehensive
income in the consolidated income statement. If the current loss shared by a minority shareholder of a
subsidiary exceeds the balances arising from the shares enjoyed by the minority shareholder in the owners'
equity of the subsidiary at the beginning of the period, minority equity will be written down accordingly.
For the subsidiaries acquired through business combination under common control, adjustment to their financial
statements is made based on the book values of its assets and liabilities (including goodwill formed in the
acquisition of these subsidiaries by the ultimate controller) as presented in the financial statements of the ultimate
controller.
For the subsidiaries acquired through business combination not under common control, adjustments to their
financial statements are made based on the fair values of net identifiable assets on the acquisition date
(1) Increase of subsidiaries or business
During the reporting period, where the Company acquired subsidiaries or business from the business combination
under common control, the beginning balance in the consolidated balance sheet is adjusted; the revenue, expenses
and profits of the newly acquired subsidiaries or business from the beginning of the period for business
combination to the end of the reporting period are included in the consolidated income statement; the cash flows
of the same for the aforesaid period are included in the consolidated statement of cash flows. Relevant items in the
comparative financial statements of the subsidiaries are adjusted accordingly, as if the reporting entity after the
business combination exists as of the time when the ultimate controller has the control.
Where control can be exercised on the investee under common control for additional investment or other reasons,
adjustment is made as if all parties involved in the combination exist at the beginning of the control by the
ultimate controller. Equity investments held before the control over the combined party is obtained, the related
profits or losses, other comprehensive income as well as other changes in net assets recognized from the later
between the date when the original equity is obtained and the date when the acquirer and the acquiree are under
common control to the combination date will respectively write down the beginning retained earnings or the
current profit or loss during the period for comparing financial statements.
28
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
During the reporting period, if the Company acquired subsidiaries or business from the business combination not
under common control, the beginning balance in the consolidated balance sheet will not be adjusted. The revenue,
expenses and profits of the newly acquired subsidiaries or business from the acquisition date to the end of the
reporting period will be included in the consolidated income statement; the cash flows of the same for the
aforesaid period will be included in the consolidated statement of cash flows.
Where the Company can control the investee not under common control for additional investments, it shall
re-measure equity of the acquiree held before the acquisition date at the fair value of such equity on the
acquisition date and include the difference between the fair value and book value in the current investment
income. Where equity of the acquiree held before the acquisition date involves in other comprehensive
income accounted for under equity method and other changes in owners' equity other than net profit or loss,
other comprehensive income and profit distribution, the relevant other comprehensive income and other
changes in owners' equity shall be transferred to the investment income in the year which the acquisition date
falls in, except for other comprehensive income from changes arising from re-measurement of net liabilities
or net assets of defined benefit plan by the investee.
(2) Disposal of subsidiaries or business
1) General treatment methods
During the reporting period, where the Company disposes a subsidiary or business, the revenues, expenses
and profits of the subsidiary or business from the beginning period to the disposal date shall be included in
the consolidated cash flow statement; cash flows of the subsidiary or the business from the beginning period
to the disposal date shall be included in the consolidated cash flow statement.
29
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
When the Company losses the control over the investee due to disposal of partial equity investment or other
reasons, the remaining equity investment after the disposal should be remeasured by the Company at the fair
value thereof on the date of losing the control. The difference between the sum of the equity disposal
consideration and the fair value of the remaining equity and the sum of the share calculated at the original
shareholding ratio in net assets enjoyed in the original subsidiary and continuously calculated from the
acquisition date or combination date and the goodwill will be included in the investment income for the
period where the control is lost. Other comprehensive incomes associated with the equity investments of the
original subsidiary, or the changes in owners' equity other than net profit or loss, other comprehensive
income and profit distribution, shall be transferred into investment income of the period when control is lost,
except for other comprehensive income from the change in net liability or net asset due to the investor's re-
measurement of defined benefit plan.
2) Disposal of subsidiaries by stages
If the control is lost due to disposal of the equity investments in subsidiaries through multiple transactions by
stages, and the terms, conditions and economic impact of the transactions related to the disposal of equity
investments in subsidiaries meet one or more of the following circumstances, it usually indicates that
multiple transactions will be subject to accounting processing as a package deal:
A.The transactions are concluded at the same time or under the consideration of mutual effect;
B.These transactions as a whole can reach a complete business result;
C.The occurrence of a transaction depends on that of other transaction or more; and/or
D .Single transaction is uneconomical but it is economical when considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong
to a package deal, accounting treatment shall be made by the Company on the transactions as a transaction to
dispose subsidiaries and lose the control; however, the difference between each disposal cost and net asset
share in the subsidiaries corresponding to each disposal of investments before loss of the control should be
recognized as other comprehensive income in the consolidated financial statements and should be transferred
into the current profit or loss at the loss of the control.
If the disposal of equity investment in subsidiaries and other transactions until the control loses are not
package transactions, before the control loses, related policies governing the partial disposal of equity
investments in subsidiaries without losing control will apply; when the control loses, general accounting
method for the disposal of subsidiaries will govern.
30
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(3) Purchase of minority equity of subsidiaries
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the
difference between the long-term equity investment acquired by the Company for the purchase of minority
interest and the share of net assets calculated constantly from the acquisition date (or combination date)
according to the newly increased shareholding ratio. If the share premium is insufficient to offset, retained
earnings will be adjusted.
(4) Partial disposal of equity investments in subsidiaries without losing control
The equity premium of capital reserves in the consolidated balance sheet will be adjusted according to the
difference between the disposal price obtained for partial disposal of long-term equity investments in
subsidiaries in the case of not lose control and the share of net assets of subsidiaries calculated from the
acquisition date or the combination date corresponding to the disposal of long-term equity investments; if the
equity premium of capital reserves is insufficient, the retained earnings will be adjusted.
7. Classification of joint venture arrangements and accounting treatment methods of joint operation
1. Classification of joint venture arrangements
According to the structure, legal form, terms of joint arrangement, other relevant facts and circumstances, the
Company divides the joint venture arrangements into joint operation and joint ventures.
Joint venture arrangements that have not been reached through separate entities are classified as joint
operations; joint venture arrangements that have been reached through separate entities are generally
classified as joint ventures; however, there is conclusive evidence that the joint venture arrangements that
meet any of the following conditions and comply with the relevant laws and regulations shall be classified as
joint operations:
The legal form of the joint venture arrangement indicates that the joint venturer has rights and obligations for
the relevant assets and liabilities respectively in the arrangement;
The contract terms of the joint venture arrangement indicates that the joint venturer has rights and
obligations for the relevant assets and liabilities respectively in the arrangement;
Other relevant facts and circumstances indicate that the joint venturer has rights and obligations for the
relevant assets and liabilities respectively in the arrangement, and if the joint venturer enjoys almost all the
outputs related to the joint venture arrangement, the settlement of the liabilities in the arrangement continues
to depend on the support from the joint venturer.
2.Accounting treatment methods of joint operation
The Company recognizes 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:
(1) Assets it solely holds and its share of jointly-held assets based on its percentage;
(2) Liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage;
(3) Revenues from sale of output enjoyed by it from the joint operation;
31
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(4) Revenues from sale of output from the joint operation based on its percentage; and
(5) Separate costs and costs for the joint operation based on its percentage.
Where the Company, invests assets in or sells assets to the joint operation (excluding the assets constituting
business), before such assets are sold to a third party via the joint operation, the Company shall only recognize the
part in the profits and losses arising from such transaction attributable to other party to the joint operation. If the
assets invested or sold meet the asset impairment losses stipulated in the Accounting Standards for Business
Enterprises No. 8 – Impairment of Assets, the Company shall confirm the losses in full.
Where the Company, purchases assets from the joint operation (excluding the assets constituting business), before
such assets are sold to a third party, the Company shall only recognize the part in the profits and losses arising
from such transaction attributable to other party to the joint operation. If the assets purchased meet the asset
impairment losses stipulated in the Accounting Standards for Business Enterprises No. 8 – Impairment of Assets,
the Company shall recognize the losses according the shares it shall assumed.
Where the Company does not enjoy joint control to the joint operation, if it enjoys the related assets of the joint
operation and assumes the related liabilities, accounting treatment shall be subject to the above principles;
otherwise, accounting treatment shall be carried out according to the relevant accounting standards for business
enterprises.
8.Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to cash on hand and deposits
of that are readily available for payment. And the term “cash equivalents” refers to short-term (maturing within
three months from acquisition) and highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of change in value.
9. Foreign currency transactions and translation of foreign currency statements
At the initial recognition, foreign currency transactions are translated into RMB for recording purpose using
the current average exchange rate at the spot rate on the transaction date.
The foreign currency monetary items on the balance sheet date are translated at the spot exchange rate on the
balance sheet date. The exchange differences arising therefrom, except for the exchange difference from
foreign currency special loans related to the acquisition and construction of assets that meet the capitalization
conditions treated in accordance with the capitalization principle of borrowing expenses, are included in the
current profit or loss. The foreign currency non-currency items calculated on historical cost basis are still
translated at spot rate on the date of transaction, not changing the amount of its recording currency.
Foreign currency non-monetary items measured at fair value shall be translated into RMB at the spot
exchange rates on the day when the fair value is determined. The difference between the functional currency
and previous functional currency after translation is taken as fair value changes (including fluctuation in
exchange rate) and included in the current profit or loss or recognized as other comprehensive income.
10.Financial instruments
32
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
A financial instrument refers to a contract that concludes the financial assets of one party and the financial
liabilities or equity instruments of another party. Related financial assets or financial liabilities are recognized
when the company becomes a party to a financial instrument contract.
Financial assets and financial liabilities are measured at fair values at the initial recognition: (i) for the
financial assets and financial liabilities measured at fair values with variations recorded into the current profits and
losses, related transaction expenses are directly recorded into the current profits and losses;(ii) for other kinds of
financial assets and financial liabilities, related transaction expenses are included in the initial recognition
amounts. Furthermore, subsequent measurements of financial assets and liabilities are decided by their own
classifications.
A financial asset or financial liability that qualified with one of the following conditions are indicating its
transactional purposes: (i) the purpose of acquiring relevant financial assets or assuming relevant financial
liabilities is mainly made for the purpose of selling or repurchasing in the near future; (ii) the initial confirmation
is a part of the identifiable portfolio of financial instruments under centralized management, and there is objective
evidence that the short-term profit model actually exists in the near future;(iii) where it is defined as the derivative
instrument, but conforms to the financial guarantee contract definition and is designated as an effective hedging
instrument of the derivative instruments.
（1）Debt Instruments
Debt instruments refer to the instruments that conform to the definition of financial liabilities from the
perspective of the issuers. The classifications and subsequent measurements of debt instruments depends on the
company's business models for financial assets management and the contractual cash flow characteristics of
financial assets. Where it fails to pass the cash flow characteristic test, direct classification as a financial asset
measured at fair values shall be adopted with variations to be recorded into the current profits and losses; where it
succeed to pass the cash flow characteristic test, its classification shall be determined on the business model of
financial assets management, and its qualification as a financial asset measured at fair values, of which variations
shall be recorded into the current profit and loss.
1) To be measured at amortized costs.
The company's business models for the management of such financial assets are aimed at the collection of the
contract cash flows, of which the characteristics of the contract cash flow shall be consistent with the benchmark
lending arrangement, that is, the cash flows generated at a certain date are referred to the payment of the principal
and the interest based on the outstanding principal amount only while the financial assets are not designated to be
measured at fair values, but their variations are recorded into the current profits and losses. However, the company
recognizes interest incomes for such financial assets in accordance with the effective interest rate methods. The
profits or losses of such financial assets due to the termination of recognition together with the losses as a result of
the impairment are directly recorded into the current profits and losses.
2) To be measured at fair values with its variations included in other comprehensive incomes.
The company's business model for managing such financial assets is both to receive the contract cash flows
and to sell, of which the characteristics of the contract cash flows shall be consistent with the benchmark lending
arrangements, that is, the cash flow generated at acertain date is only the payment of the principal and the interest
based on the outstanding principal amount while the financial assets are not designated to be measured at fair
values, but their variations are recorded into the current profits and losses. However, such financial assets are
measured at fair values and their variations are included in other comprehensive incomes, but impairment losses
or gains, exchange gains & losses and interest incomes calculated according to the actual interest rate method are
included in the current profits and losses. Furthermore, variations in fair values accumulated into other
comprehensive incomes will be carried forward to the current profits and losses when the recognition of such
financial assets is terminated. Such financial assets are listed as other lending investments.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
3) To be measured at fair values with variations booked into the current profits and losses.
Debt instruments held by the company that are not divided into those measured at amortized costs and those
measured at fair values with their variations recorded in other comprehensive incomes are measured at fair values
and their variations are recorded into the current profits and losses, of which those classified as financial assets are
measured at fair values with variations recorded into current profits and losses are listed as transactional financial
assets or other non-current financial assets.
（2）Equity Instruments
An equity instrument is one that is analyzed from the perspective of the issuers in accordance with the
definition of an equity instrument. Equity instrument investments is measured at fair values with variations
recorded into current profits and losses, which are listed as transactional financial assets, except that the
management of the company that is specified to be measured at fair values with variations recorded into other
comprehensive incomes. Items designated to be measured at fair values with variations included in the
comprehensive incomes are listed as the investments of other equity instruments, of which related changes in fair
values shall not be carried forward to the current profits and losses, and such designation shall not be revoked
once made. However, related dividend gains are booked into the current profits and losses, and no impairment
provision is included in the other equity instruments. When terminate recognition, the accumulated gains or losses
as previously recorded in other comprehensive incomes are transferred from other comprehensive incomes and
recorded in retained earnings.
（3）Financial Liabilities
Financial liabilities are classified as financial liabilities and other financial liabilities which are measured at
fair values with variations to be recorded into the current profits and losses at the initial recognition.
Financial liabilities measured at fair values with variations recorded into the current profits and losses
includes trading financial liabilities and financial liabilities that are specified to be measured at fair values with
variations booked into the current profit and loss. Financial liabilities can be designated as financial liabilities to
be measured at fair values at the initial measurement with their variations recorded into the current profits and
losses upon the any of the following conditions:
The designation can eliminate or significantly reduce the accounting mismatches;
The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities is managed and
evaluated on the basis of fair values, and reported to key management within the company thereafter according to
the risk management or investment strategies stated in the official written documents. Such designation shall not
be revoked once made.
For financial liabilities designated to be measured at fair values with variations recorded in the current profits
and losses, variations in fair values caused by changes in the company's own credit risks shall be recorded in other
comprehensive incomes, while variations of other fair values are booked into the current profits and losses.
Furthermore, when terminate the recognition of such financial liabilities, the accumulated gains or losses as
previously recorded in other comprehensive incomes are transferred from other comprehensive incomes and
recorded in retained earnings.
Other financial liabilities of the company mainly include short-term loans, long-term loans and the like. For
such financial liabilities, effective interest methods are adopted with subsequent measurement to be made
according to the amortized costs.
（4）Termination Recognition of Financial Assets and Financial Liabilities
A financial asset shall be terminated upon one of the following circumstances:
1) The contractual right to receive the cash flow of the financial assets is terminated;
2) The financial asset with almost all the risks and rewards from the ownership of the financial assets have
been transferred to the transferee;
3) Although the company has neither transferred nor retained nearly all the risks and rewards in the ownership
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
of the financial asset, the financial assets of the company have been transferred and have relinquished control of
the financial assets.
Where the current obligations of a financial liability (or any part thereof) have been discharged, the company
ceases to recognize such financial liability (or any part thereof).
（5）Impairment of Financial Instruments
The company carries out impairment accounting treatment to the financial instruments based on expected
credit losses and confirms loss provisions. Expected credit loss refers to the weighted average credit losses of
financial instruments by the risks of defaults, and credit losses refer to the difference between all contract cash
flow receivable under the contract as well as all cash flows expected to be collected that discounted at the original
real interest rates, that is, the present values of all cash shortfalls.
Measuring methods of the company's expected credit losses on financial instruments reflects the following
factors: unbiased probability weighted averages as determined by a range of possible outcomes; the time value of
money; reasonable and informed information about past events, current conditions and future economic conditions
available up to the balance sheet date without unnecessary additional costs or efforts. The company determines the
expected credit losses of relevant financial instruments in the following manners:
1) For financial assets, the credit losses are the present values of the difference between the contract cash
flows and the expected cash flows payable by the company;
2) For leasing receivables, the credit losses are the present values of the difference between the contract cash
flows and the expected cash flows payable by the company;
3) For any uncommitted loan commitment, the credit losses are the present values of the difference between
the contract cash flows payable by the company and the cash flows expected to be collected if the loan
commitment holder withdraws corresponding loans. The company's estimations on the expected credit losses of
the loan commitment are consistent with its expectations on the utilization of the loan commitments;
4) In the case of a financial guarantee contract, the credit losses are the present values of the difference
between the amount the company expects to receive from the contract holders, debtors or any other party, and the
amount of money the company expects to pay to the contract holder in respect of the credit losses incurred by the
contract holder;
5) In the case of a financial asset whose credit impairment has occurred on the date as indicated by the
balance sheets but is not purchased or originated, the credit losses are referred to the difference between the book
balance of the financial assets and the present values of the estimated future cash flow discounted at the original
real interest rates.
Three stages are adopted to identify expected credit losses by assessing whether its credit risks have increased
significantly since its initial recognition together with considerations to the reasonable and evidence-based
information (including forward-looking information) on each balance sheet date. In the case that the credit risk
has not increased significantly since the initial confirmation, the expected credit losses are defined as the first
stage, and the loss provisions are measured according to the expected credit losses of the financial instruments
within the next 12 months; where the credit risk has increased significantly since the initial confirmation but no
credit impairment has occurred, the expected credit losses are defined as the first stage, and the loss provisions are
made according to the expected credit losses of the financial instruments for the entire duration; in the event that a
credit impairment has occurred since the initial recognition, the expected credit losses are defined as the third
stage, and the loss provisions are measured in accordance with the expected credit losses of the financial
instruments throughout its duration. For financial instruments of the first and second stages, the interest income
shall be calculated according to the book balance and the actual interest rates; for financial instruments of the third
stage, the interest income shall be determined according to its amortized costs and the real interest rates.
For purchased or originated financial assets with credit impairment, only the cumulative variations in the
expected credit losses during the entire period (up to the date as indicated by balance sheet) after the initial
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
recognition are recognized as loss provisions, and its interest gains are determined according to the amortized
costs of financial assets and the real interest rates as adjusted by credit.
An increase or reversal of the loss provisions is recorded as an impairment loss or gain of the current period.
For debt instruments as held at fair values with variations recorded into other comprehensive incomes, impairment
losses or gains are recorded into the current profits and losses, and other comprehensive incomes is adjusted
synchronously.
A. Provisions of the company for the losses are measured on the expected credit losses for the entire duration
The company divides notes and accounts receivable into several combinations and calculates the expected
credit losses with reference to the combination based on the characteristics of credit risks.
For notes receivable by portfolios, the expected credit losses are calculated by the default risk exposures and
the expected credit loss rates of the entire duration with reference to company's historical credit loss experience,
and the combination with the current situation and the forecast of future economic conditions. Determining basis
of the portfolios is as follows:
Portfolio A of notes receivable trade acceptances
Portfolio B of notes receivable bank acceptances
For accounts receivable by portfolios, a comparison table of the expected credit loss rates is prepared between
the age of accounts receivable and the entire duration to calculate the expected credit losses with reference to
company's historical credit loss experience, and the combination with the current situation and the forecast of
future economic conditions. Determining basis of the portfolios is as follows:
Portfolio A of accounts receivable vintage analysis
Portfolio B of accounts receivable specific identification
The company divides other receivables and long-term receivables into several portfolios according to the
characteristics of credit risks and calculates the expected credit losses on the basis of such portfolios when
individual other receivables and long-term receivables fails to obtain the information to assess the expected credit
losses at a reasonable cost. Determining basis of the portfolios is as follows:
Portfolio A of other receivables deposits and securities receivable
Portfolio B of other receivables advanced money receivable
Portfolio A of long-term receivables lease receivables
For lease receivables by portfolios, the expected credit losses are calculated by the default risk exposures and
the expected credit loss rates of the entire duration with reference to company's historical credit loss experience,
and the combination with the current situation and the forecast of future economic conditions. For other
receivables and long-term receivables divided into combinations other than lease receivables, the expected credit
losses are calculated by the default risk exposure and the expected credit loss rates for the next 12 months or the
entire duration.
（6）Derivatives and Embedded Derivatives
Derivatives of the company's mainly include forward contracts, futures contracts and swap contracts.
Derivatives are initially measured at the fair values at the execution dates of the derivative trading contracts, and
are subsequently measured at their fair values thereafter. The gains or losses arising from the variations in the fair
values of the company's derivatives are directly recorded into the current profits and losses.
Embedded derivative refers to the derivatives that are embedded in the non-derivative instruments (i.e., the
master contracts), which constitutes the hybrid contracts with the master contracts. Where the master contracts
contained inside the hybrid contract are assets regulated by the Standards for Financial Instruments, the company
does not split the embedded derivatives from the hybrid contracts, and instead, the hybrid contracts are applied as
a whole to relevant provisions of the financial instrument criterion on the classification of financial assets.
In the case that the master contracts contained in the hybrid contracts are not assets under the financial
instrument criterion but meet the following conditions, the company splits the embedded derivative from the
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
master contracts and settle as separate derivatives:
1) The economic characteristics and risks of the embedded derivative instruments are not closely related to
the economic characteristics and risks of the master contracts.
2) Separate instruments with terms associated with embedded derivatives are conforming to the definition of
derivatives;
3) The hybrid contracts are not measured at fair values and its variations are recorded into the current profits
and losses for accounting settlements.
（7）Offsets of Financial Assets and Liabilities
When the company is legally entitled to offset the recognized financial assets and financial liabilities, and
such right is currently enforceable, and when the company plans to settle such financial assets and pay off the
financial liabilities on a net basis or liquidate the financial assets and liabilities, the amount of financial assets and
financial liabilities offset against each other are stated in the balance sheets. In addition, financial assets and
financial liabilities are shown separately in the balance sheets and are not offset against each other.
（8）The Fair Values Determination of Financial Instruments
For financial instruments with active markets, the fair values of assets are determined by the price the market
participant who would have to pay to receive or transfer a liability from the sale of such asset in an orderly
transaction on the measurement date. Where there are financial instruments without active markets, the fair values
is determined by valuation methodologies. In the valuations, the input values consistent with the characteristics of
the assets or liabilities as considered by the market participants in the transaction of the relevant assets or
liabilities, together with relevant observable input values as preferred reference are adopted by the company
through the valuation techniques that are applicable in the current situation and are supported by sufficient data
and other information available. An un-observable input value is adopted when relevant observable input values
cannot be obtained or is not feasible to obtain
11.Notes receivable
See the Note 3.10.6 "Impairment of financial instruments" for the determination method and accounting
treatment method adopted by the Company for the expected credit loss of notes receivable.
If the Company fails to assess the sufficient evidence for expected credit loss at the reasonable cost for any
individual financial instrument, the Company should, by reference to the historical experience in credit loss
and in light of the current conditions and the judgment on the future economic conditions, divide notes
receivable into several portfolios based on the credit risk characteristics, to calculate the expected credit loss
on the basis of portfolio. Portfolios are determined based on:
Basis for portfolio
Portfolio name Provision method
determination
The provision for bad debts is made with reference to historical credit loss
Portfolio of risk-free bank experience, in combination with current conditions and expectations of
acceptance bill future economic conditions.
Based on the historical experience in credit loss and in light of the current
situation and the prediction of future economic position, preparing the
comparison table of expected credit loss ratios over aging and the whole
By acceptance unit
Commercial acceptance bills rating duration of these notes receivable to calculate the expected credit loss.
12.Accounts receivable
For accounts receivable, whether or not they contain significant financing components, the Company always
measures the loss reserves according to the amount equivalent to the expected credit loss in the whole
duration. The increase or reversal of loss reserves thus arising there from shall be included in the current
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
profit or loss as the impairment loss or profit.
The Company determines expected credit loss on a single basis for accounts receivable for which there is
objective evidence that credit impairment has occurred and for which there is a reasonable assessment of
expected credit loss individually.
The Company combines the accounts receivable according to similar credit risk characteristics (aging), and
based on all reasonable and supportable information (including forward-looking information), makes
provision for the bad debts of accounts receivable according to the aging and lifetime expected credit loss
comparison table.
See the Note 3.10.6 "Impairment of financial instruments" for the determination method and accounting
treatment method adopted by the Company for the expected credit loss of accounts receivable.
13.Receivables financing
Notes receivable classified as measured at fair value through other comprehensive income with maturities
within one year (inclusive) from the date of initial recognition are presented as receivables financing; and
those with maturities of more than one year from the date of initial recognition are presented as other
creditor's right investments. See the Note (XI) for its relevant accounting policies.
14.Other receivables
See the Note 3.10.6 "Impairment of financial instruments" for the determination method and accounting
treatment method adopted by the Company for the expected credit loss of other receivables.
If the Company fails to assess the sufficient evidence for expected credit loss at the reasonable cost for any
individual financial instrument, the Company should, by reference to the historical experience in credit loss
and in light of the current conditions and the judgment on the future economic conditions, divide other
receivable into several portfolios based on the credit risk characteristics, to calculate the expected credit loss
on the basis of portfolio. Portfolios are determined based on:
Basis for portfolio
Portfolio name Provision method
determination
The provision for bad debts is made with reference to
historical credit loss experience, in combination with
Portfolio 1: Receivables from related parties current conditions and expectations of future economic
within the scope of consolidation conditions.
Based on the historical experience in credit loss and in
light of the current situation and the prediction of future
economic position, preparing the comparison table of
expected credit loss ratios over aging and the whole
Portfolio 2 (Aging portfolio) Nature of payment duration to calculate the expected credit loss.
15. Inventories
（1）Classification of inventories
Inventories are classified into: raw materials, work in progress, finished goods, turnover materials, low-value
consumables, packaging materials, etc.
（2）Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by
their actual cost when they are obtained. raw materials, works in progress, finished goods, etc. shall be measured
with the weighted average method when they are being sent out. Low-value consumption goods shall be written
off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be
recorded into cost according to the predicted usage times.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
（3）Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make
the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
（4）Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
16.Contract assets
If the Company enjoys the right to charge consideration as it has transferred goods to relevant customer, and
the right depends on other factors except for the time lapses, such right will be recognized as the contract
asset. The unconditional right (only depending on the time lapses) to charge consideration from the customer,
possessed by the Company, is separately presented as receivables.
See the Note 3.10.6 "Impairment of financial instruments" for the determination method and accounting
treatment method adopted by the Company for the expected credit loss of contract assets.
17.Contract cost
18.Held for sale
1.Recognition criteria for classification as held for sale
The Company recognizes non-current assets or disposal groups that meet both of the following conditions as
components held for sale:
(1)According to the general practice for selling such kind of asset or disposed asset portfolio in the similar
transaction, the asset or portfolio can be immediately sold in the prevailing circumstance;
(2)The sale of the asset or portfolio is very likely to happen, which means that the Company has made a
resolution for one selling plan and had acquired decided purchase commitment, and it is estimated that the
sale will be completed within one year.
The determined purchase commitment refers to the legally binding purchase agreement signed by and
between the Company and other parties. The agreement covers significant clauses in aspects such as
transaction price and time and sufficiently severe breaches and penalty, making slim possibility for the
agreement being re-adjusted or canceled.
2.Accounting method for held for sale
If the Company does not provide depreciation or amortization for non-current assets or disposal groups held
for sale and the book value is higher than the net amount of fair value less disposal expenses, the Company
shall write down the book value to the net amount of fair value less disposal expenses, and the written down
amount shall be recognized as an asset impairment loss and included in the current profit or loss, while
providing for the impairment of assets held for sale.
For non-current assets or disposal groups that are classified as held for sale on the acquisition date are
measured at the lower of the initial measurement amount assuming they are not classified as held for sale or
the net fair value less disposal expenses.
The above principles apply to all non-current assets, except for investment real estate that is subsequently
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
measured using the fair value model, biological assets that are measured using the net of fair value less
disposal costs, assets formed from staff emoluments, deferred income tax assets, financial assets that are
governed by the relevant accounting standards for financial instruments, and rights arising from insurance
contracts that are governed by the relevant accounting standards for insurance contracts.
19. creditor's right investments
20.Other creditor's right investments
21. Long-term receivables
22. Long-term equity investments
1. Determination of initial investment cost
(1) For the specific accounting policies for long-term equity investments acquired through business
combination, see the Note 3.5 "Accounting treatment methods for business combinations under common
control and not under common control".
(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from cash payment, the initial investment cost is the actually paid
purchasing cost. The initial investment cost includes expenses, taxes and other necessary expenses directly
related to obtaining the long-term equity investment;
For the long-term equity investment acquired from issuing equity securities, the initial investment cost is the
fair value of the issued equity securities; transaction expenses on the issue or acquisition of the own equity
instruments are deducted from the equity if they are directly attributable to the equity transaction.
On the premise that non-monetary asset trade is of commercial nature and the fair value of the asset traded in
or out can be measured reliably, the initial cost of a long-term equity investment traded in with non-monetary
asset should be determined based on the fair value of the asset traded out, unless any unambiguous evidence
indicates that the fair value of the asset traded in is more reliable; as to the non-monetary asset trade not
meeting the aforesaid premise, the book value of the asset traded out and relevant taxes and surcharges
payable should be recognized as the initial cost of the long-term equity investment.
The initial investment cost of the long-term equity investment acquired through the debt restructuring is
determined based on the fair value thereof.
2.Subsequent measurement and recognition of gains and losses
(1) Cost method
For the long-term equity investments where the Company may have the control over investees, the cost
method is adopted for accounting, the measurement is made based on the initial investment cost and the cost
is adjusted via the additional investment or the divestment.
Except for the actual price paid for acquisition of investment or the cash dividends or profits contained in the
consideration and declared but not yet distributed, the Company recognizes the current investment income
based on the cash dividends or profits enjoyed by the Company and declared to be distributed by the
investee.
(2) Equity method
The Company accounts for the long-term equity investments in associates and joint ventures by the equity
method; some equity investments in associates therein indirectly held via the risk investment organization,
mutual fund, trust company or the similar entity including the investment-linked insurance fund are
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
measured at fair through the profit or loss.
If the initial investment cost of any long-term equity investment is in excess of the share of fair value of the
net identifiable assets in the investee when the investment is made, the difference will not be adjusted to the
initial cost of long-term equity investment; if the cost of initial investment is in short of the share of the fair
value of the net identifiable assets in the investee when the investment is made, the difference will be
included in the current profit or loss.
After the acquisition of the long-term equity investment, the Company should, based on its attributable share
of the net profit or loss and other comprehensive income realized by the investee, respectively recognize the
investment income and other comprehensive income, and simultaneously adjust the book value of the long-
term equity investment; and should, in the light of the profits or cash dividends the investee declares to
distribute, calculate the attributable part and accordingly reduce the book value of the long-term equity
investment. As to any change in owners' equity of the investee other than net profit or loss, other
comprehensive income and profit distribution, the Company should adjust the book value of the long-term
equity investment and include such change in the owners' equity.
The Company should, based on the fair values of the investee's various identifiable assets at the time when
relevant investment is made, recognize its share of the investee's net profits or losses, after adjusting the
investee's net profit. The Company calculates its attributable share in the profit or loss from the unrealized
internal transactions between the Company and its associates or joint ventures based on its attributable
percentage and offset such share, and determines the investment income on that basis.
When the Company confirms that it should share losses incurred in the investee, treatment should be done in
following sequence: first, writing down the book value of long-term equity investments. Secondly, where the
book value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent
of book value of other long-term equities which form net investment in the investee in substance and the
book value of long-term receivables shall be reduced. Finally, after all the above treatments, if the Company
is still responsible for any additional liability in accordance with the provisions stipulated in the investment
contracts or agreements, the Company will recognize an estimated liability based on its expected obligations,
and include the estimated liability in the current investment loss.
Where the investee realizes profit during the following period, the Company make treatment for the profit
after deducting such profit with the unrecognized loss-sharing amount in the order inverse to that mentioned
above, i.e. writing off the recognized book balance of estimated liabilities and reversing the book value of
other long-term equity substantially constituting the net investment in the investee and the book value of
long-term equity investment, and recognizing the investment income after such reversal.
3.Conversion of the accounting method for long-term equity investments
(1) Conversion from the measurement at fair value to the accounting by the equity method
Where the equity investment originally held by the Company, having no control or common control over or
the significant impact on the investee and subject to the accounting treatment made according to the
standards for recognition and measurement of financial instruments may have the significant influence on or
the common control over the investee on account of additional investment and other reasons but cannot
control the investee, the sum of fair value of originally held equity investment determined according to the
Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial
Instruments and the cost of newly-added investment should be taken as the initial investment cost of such
equity investment calculated by the equity method.
The difference between the initial investment cost calculated by the equity method and the share calculated
in the new shareholding ratio determined after the additional investment and enjoyed in the fair value of the
investee's net identifiable assets on the date of additional investment (the latter is higher) should be used to
adjust the book value of the long-term equity investment and included in the non-operating revenue for the
current period.
(2) Conversion from the measurement at fair value or accounting by the equity method to the accounting by
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
the cost method
Where the equity investment originally held by the Company, having no control or common control over or
the significant impact on the investee and subject to the accounting treatment made according to the
standards for recognition and measurement of financial instruments, or the long-term equity investment
originally held by the Company in associates and joint ventures may control the investee not under common
control on account of such reasons as additional investment, at the preparation of the individual financial
statements, the initial investment cost of such investment under the accounting by the cost method should be
recognized at the sum of the book value of originally held equity investment and the cost of the newly-added
investment.
For other comprehensive income that is recognized from the equity investment held before the acquisition
date by using the equity method, the accounting treatment should be made on the basis the same as that for
the direct disposal of related assets or liabilities by the investee at the disposal of such equity investment.
Where the equity investments held before the acquisition date are subject to the accounting treatment made
according to the Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of
Financial Instruments, the accumulated changes in fair value originally included in other comprehensive
income should be transferred in the current profit or loss when the accounting therefor is made by the cost
method.
(3) Conversion from accounting by the equity method to the measurement at fair value
In case the Company loses the common control over or the significant influence on the investee due to the
disposal of part of equity investments or other reasons, the remaining equity after the disposal should be
accounted for according to the Accounting Standards for Business Enterprises No. 22 -- Recognition and
Measurement of Financial Instruments, and the difference between the fair value and the book value on the
date of the loss of common control or significant influence should be included in the current profit or loss.
As to other comprehensive income recognized based on measurement of the original equity investment under
the equity method, accounting treatment shall be made on the same basis as would be required if the investee
had directly disposed of the assets or liabilities related thereto when measurement under the equity method is
terminated.
(4) Conversion from the cost method to the equity method
In case the Company loses the control over the investee due to the disposal of part of equity investment and
other reasons, in the preparation of the individual financial statements, if the remaining equity has the
common control over or significant influence on the investee, the accounting by the equity method should be
made, and the adjustment should be made as if the remaining equity had been accounted for by the equity
method at acquisition.
(5) Conversion from the cost method to the measurement at fair value
In case the Company loses the control over the investee due to the disposal of part of equity investments or
other reasons, in the preparation of individual financial statements, the remaining equity after disposal fails
to have the common control over or the significant influence on the investee, the accounting treatment should
be made according to the Accounting Standards for Business Enterprises No. 22 -- Recognition and
Measurement of Financial Instruments, and the difference between the fair value and the book value thereof
on the date of the loss of control should be included in the current profit or loss.
4.Disposal of long-term equity investments
For the disposal of long-term equity investments, the difference between the book value and the actual price
thereof should be included in the current profit or loss. Where a long-term equity investment is accounted for
under the equity method, accounting treatment should be made on the part that is originally included in other
comprehensive income according to corresponding ratio by using the same basis for the investee to directly
dispose of the relevant assets or liabilities when the investments are disposed of.
In case the terms, conditions and economic impact of the transactions related to the disposal of equity
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
investments in subsidiaries meet one or more of the following circumstances, multiple transactions should be
taken as a package deal for accounting treatment:
(1) The transactions are concluded at the same time or under the consideration of mutual effect;
(2) These transactions as a whole can reach a complete business result;
(3) The occurrence of a transaction depends on that of other transaction or more; and/or
(4) A single transaction is uneconomical but it is economical when considered together with other
transactions.
Where the control over the original subsidiaries is lost due to the disposal of part of equity investments or
other reasons, not belonging to a package deal, relevant accounting treatment should be made respectively
for the individual financial statements and the consolidated financial statements:
(1) In the individual financial statements, for disposal of equity, the difference between book value and the
actual purchase price should be included in the current profit and loss. The remaining equity after the
disposal that can exercise common control or exert significant influence over the investee shall be accounted
for in the equity method, and such remaining equity shall be adjusted as if it had been accounted for in the
equity method since the time of acquisition; the remaining equity after disposal that cannot exercise common
control or exert significant influence over the investee shall be subject to accounting treatment according to
the relevant provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, and the difference between the fair value on the date when the
control is lost and the book value shall be included into the current profit or loss.
(2) In the consolidated financial statements, for various transactions before loss of the control over the
subsidiaries, the difference between the proceeds from disposal and the share of net assets of subsidiaries
enjoyed the Company (continuously calculated from the acquisition date or the combination date)
corresponding to the disposal of long-term equity investments, shall be charged against capital reserves
(share premium); when the capital reserves is insufficient to offset, the retained earnings shall be adjusted.
When the Company losses the control over the subsidiaries, the remaining equity will be re-measured at its
fair value on the date of loss of the control. The difference of total amount of the consideration from disposal
of equities plus the fair value of the remaining equities less the shares calculated at the original shareholding
ratio in net asset of the original subsidiary which are continuously calculated as of the acquisition date is
included in the investment income of the period at the loss of control and at the same time offset the
goodwill. Other comprehensive income associated with the equity investments of the original subsidiary, is
transferred into investment income of the period when control is lost.
Where the transactions of disposal of equity investments in subsidiaries until the loss of control over belong
to a package of transactions, and the transactions will be accounted for as a transaction of disposal of equity
investments in subsidiaries until the loss of control; individual financial statements and consolidated
financial statements will be respectively accounted for:
(1) In the individual financial statements, the difference between each disposal cost and book value of long-
term equity investments corresponding to each disposal of equity before loss of the control should be
recognized as other comprehensive income and should be transferred into the current profit or loss on the
loss of the control.
(2) In the consolidated financial statements, the difference between each disposal cost and net asset share in
the subsidiaries corresponding to each disposal of investments before loss of the control should be
recognized as other comprehensive income and should be transferred into the current profit or loss on the
loss of the control.
5.Judgment criteria for joint control and significant influence
If the Company jointly controls an arrangement with other participants in accordance with the relevant
agreement, and the decision-making of activities having a significant impact on the return on the
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
arrangements is required to be unanimously agreed by participants sharing control, which is deemed that the
Company and other participants jointly control an arrangement, such arrangement belongs to joint venture
arrangement.
If joint venture arrangements are made by a separate entity, the Company is entitled to the net assets of such
separate body according to relevant agreement, such separate entity is joint venture and measured at the
equity method. If the Company is not entitled to the net assets of such separate entity according to relevant
agreement, such separate entity is joint venture and the Company confirms the projects relating to share in
interest of joint operation, and conduct accounting treatment in accordance with the related provisions of the
Accounting Standards for Business Enterprises.
Significant influence refers to the power of the investor to participate in making decisions on the financial
and operating policies of the investee, but not the power to control, or jointly control, the formulation of such
policies with other parties. Through one or more of the following circumstances, and comprehensively
considering all the facts and circumstances, the Company judges that it has a significant impact on the
investee: (1) representatives in the board of directors or similar organ of power of the investee; (2) the
process of preparing financial and operating policies the investee; (3) significant transactions with the
investee;(4) managers dispatched to the investee; (5) key technical information provided to the investee.
23.Investment properties
Investment properties refer to the properties that are held for the purposes of earning rental income, capital
appreciation, or for combination thereof, including land use rights that have been leased out; land use rights
which are held and to be leased out after appreciation and structures leased. Furthermore, as for the
unoccupied constructions which are held for operating lease, if the board of directors (or similar institution)
makes a written resolution which clearly states that the aforesaid construction is used for operating lease and
the intent for holding such construction will not change in the short-term future, such construction will be
presented as investment property.
The costs of the investment property of the Company shall be taken as its entry value, and the cost of an
investment property by acquisition consists of the acquisition price, relevant taxes, and other expenses
directly relegated to the asset; the cost of a self-built investment property composes of the necessary
expenses for building the asset to the hoped condition for use.
The Company's investment properties are subsequently measured at cost model, and the depreciation or
amortization will be withdrawn according to relevant regulations on fixed assets and intangible assets.
When an investment property is changed for self-use, upon change, the investment property shall be
converted into fixed assets or intangible assets. When the self-use property is changed to earn rentals or for
capital appreciation, upon change, fixed assets or intangible assets shall be converted into investment
property. In case of the conversion, the book value of such investment property before the conversion is
regarded as the entry value of the same after the conversion.
When an investment property is being disposed or permanently withdrawn from use and no future economic
benefits are expected from the disposal, the investment property shall be derecognized. The difference of the
revenue from disposal of investment properties such as sales, transfer, retirement or damage deducting their
book value and related taxes should be included into the current profit or loss.
24.Fixed assets
1.Recognition criteria of fixed assets
Fixed assets are tangible assets that are held for the purpose of producing goods, providing services, leasing
or operating management, and having a life span of more than one fiscal year. Fixed assets are recognized
when they simultaneously meet the following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2) The costs of the fixed assets can be measured reliably.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
2.Initial measurement of fixed assets
The fixed assets of the Company shall be initially measured at cost.
(1) Specifically, the costs of fixed assets externally purchased include purchase price, import duties and
other related taxes and surcharges, and any other expenditures for making the assets reach working condition
for their intended use.
(2) The costs of self-built fixed assets consist of necessary expenditures incurred before preparing the asset
to reach the condition for its intended use;
(3) For fixed assets invested by an investor, the initial cost is the value stipulated in the investment contract
or agreement unless the value stipulated in the contract or agreement is unfair;
(4) If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of the financing
nature, the cost of the fixed asset shall be determined on the basis of the current value of the purchase price.
The difference between the cost actually paid and the present value of purchase price will be capitalized and
included into the current profit or loss in the credit period.
3.Subsequent measurement and disposal of fixed assets
(1) Depreciation of fixed assets
The depreciation of fixed assets shall, within estimated useful lives, be made at their book-entry values less
estimated net residual value. For the fixed assets with provision for impairment made, the amount of
depreciation will be determined according to the book value after deduction of the provision for
impairment and the remaining useful life in the future. No provision for fixed assets which are fully
depreciated and remain in use.
The Company determines the useful life and estimated net residual value of a fixed asset according to its
nature and using status, and reviews the useful life, estimated net residual value and depreciation method of
the fixed assets at the end of the year. If there is any difference between the reviewing results and the original
estimated data, the Company will make some adjustments accordingly.
(2) Subsequent expenditure of fixed assets
If the subsequent disbursement relevant to a fixed asset meets the recognition criteria on the fixed asset, it is
included in the cost of fixed asset; otherwise, it is included in the current profit or loss.
（3）Disposal of fixed assets
When fixed assets are disposed of or are expected to fail to generate economic benefits after the use or
disposal, the fixed assets shall be derecognized. The incomes from sales, transfer, scrapping or damages of
fixed assets after deducting their book values and relevant taxes and surcharges are included in the current
profit or loss.
（2）Depreciation method
Annual depreciation
Type Depreciation method Depreciation life (year) Residual value rate (%)
rate (%)
Buildings and
25-35 3 2.77-3.88
constructions Straight-line method
Machinery equipment Straight-line method 7-15 3 6.47-13.86
Transportation Straight-line
8-10 3 9.70-12.13
equipment depreciation
Other equipment Straight-line method 5-10 3 9.70-19.40
（3）Recognition basis, pricing and depreciation method of fixed assets by finance lease
25.Construction in progress
1.Initial measurement of construction in progress
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
The Company's self-built construction on progress is valued at the actual cost which consists of all necessary
expenditures incurred before the assets for such construction reaching to the predetermined serviceable
condition, including all types of necessary expenditures incurred during the construction period, the
capitalized borrowing costs incurred prior to the time when the construction is brought to the expected
conditions for use and other relevant costs, etc.
2.Criteria and timing for conversion of the construction in progress into the fixed assets
For construction in progress, the book-entry values of the fixed assets are stated at total expenditures
incurred before such assets reach the working condition for their intended use. Where the construction in
progress has reached the predetermined serviceable condition but the completion of settlement has not been
handled, the estimated construction value shall be transferred into the fixed assets based on construction
budget, cost or actual cost of construction, etc. as of the day reaching the predetermined serviceable
condition, and the depreciation of fixed assets shall be made according to the Company's policy on fixed
assets depreciation; when the completion of settlement is finished, the original estimated value shall be
adjusted at the actual cost, but the depreciation already withdrawn shall not be adjusted.
26.Borrowing costs
1.Recognition principles of capitalization of borrowing costs
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs;
other borrowing costs should be recognized as costs according to the amount incurred and be included into
the current profit or loss.
Assets eligible for capitalization refer to fixed assets, investment properties, inventories and other assets
which may reach their intended use or sale status only after long-time acquisition and construction or
production activities.
Borrowing costs are capitalized when they simultaneously meet the following conditions:
(1) Asset expenditures, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for
capitalization, have already been incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to prepare the assets for
their intended use or sale have already been started.
2.Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization,
excluding the period of capitalization suspension of borrowing costs.
Capitalization of borrowing costs should be ceased when the acquired and constructed or produced assets
eligible for capitalization have reached their intended use or sale status.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be
ceased.
If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or
sold externally until overall completion, the capitalization of borrowing costs should be ceased at the time of
overall completion of the said assets.
3.Period of capitalization suspension of borrowing costs
If the acquisition, construction or production activities of assets eligible for capitalization are abnormally
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should
be suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets
eligible for capitalization to reach the working conditions for their intended use or sale, the borrowing costs
continue to be capitalized. Borrowing costs incurred during the interruption are recognized as the current
profit or loss and continue to be capitalized until the acquisition, construction or production of the assets
restarts.
4.Calculation method of capitalization amount of borrowing costs
The special borrowings’ interest expenses (excluding the interest income from unused borrowings deposited
in the bank or the investment income from the temporary investment) and auxiliary expenses, before the
acquired and constructed or produced assets meeting with the capitalization conditions are eligible for the
intended use, shall be capitalized.
The interest amount of general borrowings to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special
borrowings by the capitalization rate of used general borrowings. The capitalization rate is calculated by
weighted average interest rate of general borrowings.
Where there are discounts or premiums on borrowings, amounts of discounts or premiums should be
amortized in each accounting period by the effective interest method, and the amount of interest for each
accounting period should be adjusted.
27. Biological assets
28. Oil-gas assets
29. Assets of the right to use
The Company initially measures the right-of-use assets at cost. Such costs include:
The initial measurement amount of lease liabilities;
In case of any lease incentives, relevant amount of the lease incentives enjoyed shall be deducted from the
lease payment paid on or before the commencement date of the lease term;
The initial direct costs incurred by the Company;
The costs incurred of the Company for demolishing and removing leased assets, restoring the site where the
leased assets are located, or restoring the leased assets to the state agreed in the lease term, excluding the
costs incurred for the production of inventories.
After the commencement date of the lease term, the Company carries out subsequent measurement of right-
of-use asset using the cost method.
If there is a reasonable assurance that the ownership of leased assets can be acquired when the lease term
expires, the Company makes the provision during the remaining useful life for the leased assets. If there is no
reasonable assurance that the ownership of the leased assets can be acquired when the lease term expires, the
Company makes the provision over the lease term or the remaining useful life for the leased assets,
whichever is shorter. For the right-of-use assets with provision for impairment made, the depreciation will be
made according to the book value after deduction of the provision for impairment and by reference to the
above principle.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
30. Intangible assets
（1）Pricing method, useful life and impairment test
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
（2）Research and development expenses
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
The development expenditures shall be capitalized when they satisfy the following conditions simultaneously: It is
feasible technically to finish intangible assets for use or sale; Having the intention to complete the intangible asset
and use or sell it; 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 for the intangible assets will be used
internally; 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; Expenditures attributable to
the development phase of the intangible assets can be measured reliably. Development expenditures that do not
meet the above conditions are included in the profits and losses of the current period.
After meeting the above conditions, the corresponding projects of the company study their technical feasibility
and economic feasibility, and enter the development stage after the formation of the project.
31.Impairment of long-term assets
The Company assesses whether there is any indication that long-term assets may be impaired on the balance sheet
date. If any indication shows the impairment of long-term assets, the Company shall, on the basis of single item
assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of
the group assets on the basis of the asset group to which the asset belongs.
The recoverable amount of assets is the higher of their fair values less costs to sell and the present values of the
future cash flows expected to be derived from the assets.
The measurement results of recoverable amount show that, if the recoverable amounts of assets are lower than
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
their book values, the book values of the assets shall be written down to their recoverable amounts. The write-
down amount is recognized as asset impairment losses and included in the current profit or loss, while the
provisions for asset impairment are made accordingly. Losses from asset impairment shall not be reversed in
subsequent accounting periods once recognized.
After asset impairment losses are recognized, the depletion or amortization charges for the impaired assets shall be
accordingly adjusted in future periods to amortize their adjusted book value of assets (less their estimated net
residual values) over their remaining useful lives on a systematic basis.
An impairment test shall be conducted each year for the goodwill from business combination and intangible assets
with indefinite useful lives whether there is any indication of impairment.
During impairment test of goodwill, the book value of goodwill shall be amortized to asset group or asset group
combination anticipated to benefit from the synergistic effect of business combination. When making an
impairment test on the relevant asset groups or combination of asset groups containing goodwill, if any indication
shows that the asset groups or combinations of asset groups may be impaired, the Company shall first conduct an
impairment test on the asset groups or combinations of assets groups not containing goodwill, calculate the
recoverable amount and compare it with the relevant book value to recognize the corresponding impairment loss.
Then the Company shall conduct an impairment test on the assets groups or combinations of assets groups
containing goodwill, and compare the book value of these assets groups or combinations of assets groups
(including the book value of the goodwill apportioned thereto) with the recoverable amount. Where the
recoverable amount of the relevant assets groups or combinations of assets groups is lower than the book value
thereof, the Company shall recognize the impairment loss of the goodwill.
32.Long-term deferred expenses
Long-term deferred expenses of the Company are measured at the actual costs and amortized evenly over the
estimated beneficial period. If an item of long-term deferred expense cannot bring any benefit in future accounting
periods, the amortized value thereof shall all be transferred to the current profit or loss.
33.Contract liabilities
The obligation of transferring goods to customers for the consideration received or receivable from
customers shall be presented as contract liabilities.
34.Employee compensation
(1)Accounting treatment of short-term remuneration
Employee compensation refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefit.
Short-term compensation includes payroll, bonus, allowances and subsidies, employee welfare, medical insurance,
injury insurance and birth insurance, housing fund, labor union and employee training expenditures, non-monetary
benefits and other short-term rewards. It recognizes as liabilities the actual short-term compensation incurred
during the accounting period that the employees provide their services and records in current profit and loss or the
relevant asset costs. Non-monetary benefits are measured at the fair value.
（2）Accounting treatment of benefits paid after departure
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Post-service benefits mainly include defined contribution plan and defined benefit plan. The defined contribution
plan mainly includes basic pension, unemployment insurance etc. The corresponding contributions are recorded in
the relevant asset costs or current profit and loss when incurred.
When terminating labor relations before expiration of contract, or layoffs with compensations, and the Company
cannot terminate the labor relations unilaterally or reduce the demission welfare, remuneration and liabilities
produced from the demission welfare should be determined and included in current profits and losses when
determining the costs of demission welfare and recombination. However, demission welfare not fully paid within
12 months after annual Reporting Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above demission
welfare. The Company would record the salary and the social security insurance fees paid and so on from the
employee’s service terminative date to normal retirement date into current profits and losses (demission welfare)
under the condition that they meet the recognition conditions of Retained Earnings.
The inside employee retirement plan is treated by adopting the same principle with the above demission welfare.
The Company would recorded the salary and the social security insurance fees paid and so on from the
employee’s service terminative date to normal retirement date into current profits and losses (demission welfare)
under the condition that they meet the recognition conditions of Retained Earnings.
（3）Accounting treatment of dismissal welfare
Dismissal benefits refer to the compensation for terminating the labor relation with the employees prior to
the expired date of the labor contract or for encouraging the employees to voluntarily accept the layoff paid
by the Group to the employees. The dismissal benefits should be recognized as liabilities and recorded into
the current profit or loss on an earlier date when the Company is unable to unilaterally withdraw the plan on
the cancellation of labor relationship or the layoff proposal and when the Group recognizes the cost related to
restructuring concerning payment of dismissal benefits.
The Company offers the early retirement benefits to employees who accept the arrangement of internal early
retirement. Early retirement benefits refer to salaries to and social insurance premiums and others paid for
employees who have not been in the state-specified retirement age, but are willing to quit their jobs approved
by the Company's management. The Company will pay the early retirement benefits to early retired
employees as of the day the early retirement arrangement begins till they are in the normal retirement age.
For the early retirement benefits, the Company conducts the accounting treatment by comparing with the
dismissal benefits. If the former conforms to the recognition criteria related to dismissal benefits, the
Company recognizes salaries paid to and social insurance premiums paid for early retired employees as of
day they stop providing services till the day they are qualified for enjoying the normal retirement as
liabilities, and includes them in the current profit or loss all at once. Differences caused by changes in
actuarial assumptions and adjustment on benefit standards relating to early retirement benefits are included
in the current profit or loss when they occur.
（4）Other long-term employee benefits
35. Lease liabilities
The Company initially measures the Lease liabilities at the present value of the lease payments that have not
been paid on the lease commencement date. When calculating the present value of minimum lease payment,
the Company adopts the implicit rate of lease as the discount rate, but if the implicit rate of lease cannot be
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
reasonably determined, the Company’s incremental borrowing rate will be adopted as the discount rate.
Lease payments include:
1For fixed payments and substantial fixed payments after deducting the relevant amount of the lease
incentive;
Variable lease payments depending on the index or ratio;
Exercise price of purchase option, provided that the Company reasonably determines that it will exercise the
option;
Payment needs to be paid for executing the lease termination option, provided that it is reflected that the
Company will execute the lease termination option during the lease term.
The payments expected to be payable based on the residual value of the guarantee provided by the Company;
The Company calculates the interest expense of the lease liability in each period during the lease term
according to the fixed discount rate, and records it into the current profit or loss or the related asset costs.
The variable lease payments not included in the measurement of lease liabilities shall be included in the
current profit or loss or the related asset costs when they actually occur.
36. Estimated Liabilities
1.Recognition criteria for estimated liabilities
Where the obligation related to contingency meets all the following conditions simultaneously, it may be
recognized as estimated liabilities by the Company:
This obligation is a present obligation of the Company;
The performance of this obligation may very probably lead to the flow of economic interests out of the
Company; and
The amount of the obligation can be measured reliably.
2.Measurement method of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for
the performance of relevant present obligations.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with
respect to contingencies, uncertainties and the time value of money. If the time value of money is significant,
the best estimates shall be determined after discount of relevant future cash outflows.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper
and lower limits within the range.
37.Share-based Payment
38 . Other financial instruments such as preferred shares and perpetual capital securities
39.Revenues
The Company’s revenue mainly comes from the following business:
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(1) Key client 1
(2) Client obtaining the goods after payment
(3) Post-sales client
Different business models of similar businesses lead to differences in revenue recognition accounting
policies.
40.Government grants
1.Type
Government grants refer to the monetary or non-monetary assets obtained by the Company from the government
for free. Government subsidies are divided into government subsidies related to assets and government subsidies
related to income according to the nature of assistance objects specified in relevant government documents.
Asset-related government grants refer to government subsidies obtained by the Company for forming long-term
assets by acquisition, construction or other manners. Income-related government grants refer to government grants
excluding the asset-related government grants.
2.Recognition of government grants
Where there is strong evidence showing that at the end of the period, the Company is able to conform to
conditions related to the financial support policy, and it is estimated that the Company may receive the financial
support funds, the government grant is recognized when the amount receivable is confirming. Beyond that, the
government grant is recognized when it is actually received.
If government grants are monetary assets, they shall be measured at the amount received or receivable. If
government grants are non-monetary assets, they shall be measured at its fair value; and if the fair value cannot be
obtained in a reliable way, they shall be measured at a nominal amount (RMB 1). Government grants measured at
nominal amount are included in the current profit or loss.
3.Accounting treatment methods
The Company determines whether a particular type of government grant business should be accounted for under
the gross method or the net method based on the substance of the economic business. Normally, the Company
uses only one method for the same or similar government grant business and applies the method consistently to
such business.
Asset-related government grants should be used to offset the book value of relevant assets or recognized as
deferred income. Asset-related government grants are recognized as deferred income and included in profit or loss
by stages under reasonable and systematic methods within the useful life of the assets constructed or purchased;
If income-related government grants are used to compensate the enterprise’s relevant expenses or losses in future
periods, such government grants should be recognized as deferred income, and shall be included into current
profit or loss or offset relevant costs during the period of recognizing relevant costs or losses; if income-related
government grants are used to compensate the enterprise’s relevant expenses or losses incurred, such income-
related government grants are directly included into the current profit or loss or offset relevant costs upon
acquisition.
Government grants relevant to routine activities of the Company are included in other income or used to offset
relevant costs. Government grants irrelevant to routine activities of the Company are included in the non-
operating revenue and expenditure.
If the government grants in connection with the interest subsidies of policy-based preferential loans are received,
the related borrowing costs will be offset; if a policy-based preferential loan rate is obtained from a lending bank,
the amount of the borrowing actually received is used as the recorded value of the borrowings, and the related
borrowing costs are calculated in accordance with the loan principal and the policy-based preferential loan rate.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
If the recognized government grants need to be returned, the carrying value of the assets is adjusted if the book
value of the relevant assets is offset upon initial recognition; if there is a balance of relevant deferred income, the
book value of the relevant deferred income is offset and the excess part is recognized in the current profit or loss;
if there is no relevant deferred income, it is recognized directly in the current profit or loss.
41.Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on differences
(temporary differences) between tax base and book value of the assets and liabilities. On the balance sheet date,
the deferred income tax assets and deferred income tax liabilities shall be measured at the tax rate applicable to
the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
1.Recognition basis of deferred income tax assets
The Company recognizes the deferred income tax assets arising from deductible temporary differences to the
extent of the amount of the taxable income which may be obtained and used to deduct the deductible temporary
differences, deductible losses and tax credits that can be carried forward to subsequent periods. However, in
transactions having the following features at the same time, the deferred income tax assets occurring due to the
initial recognition of assets or liabilities shall not be recognized: (1) the transaction is not a business combination;
(2) the transaction, when occurring, affects neither accounting profit nor taxable income or deductible loss.
For the deductible temporary differences arising from investments in associates and joint ventures, the deferred
income tax assets will be accordingly recognized when meeting the following conditions at the same time: the
temporary differences may be reversed in the foreseeable future and they can be used to offset the taxable income
of deductible temporary differences in the future.
2.Recognition basis of deferred income tax liabilities
The Company recognized outstanding taxable temporary differences for current or prior periods as deferred
income tax liabilities. They exclude:
(1) Temporary differences arising from initial recognition of goodwill;
(2) Transactions or matters arising from non-business combinations, which do not affect either the accounting
profit or the taxable or deductible temporary differences formed by the taxable income (or deductible losses).
(3) For taxable temporary differences related to the investments in subsidiaries and associates, the time of their
reversal can be controlled and they are not likely to be reversed in the foreseeable future.
42.Operational leasing
（1）.Accounting treatment of operating lease
The Company will transfer substantially all the risks and rewards of ownership of an asset lease are recognized as
a finance lease. Other forms of lease besides financial leasing are considered as operating leasing.
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
53
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
（2）Accounting treatment of financing lease
43. Other significant accounting policies and estimates
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
Implementation of the Interpretation No. 15 of the Accounting Standards for Business Enterprises has no
impact on the Company.
On December 31,2021, the Ministry of Finance issued the Interpretation No.15 of Accounting Standards for
Business Enterprises (CK [2021] No.35, the "Interpretation No.15"), wherein the “accounting treatment of the
external sales of products or by-products produced by an enterprise before the fixed assets reach their intended
serviceable condition or in the research and development process (‘trial operation sales’)”and “judgment on the
loss contract”, shall be implemented as of January 1, 2022.
Implementation of the Interpretation No. 15 of the Accounting Standards for Business Enterprises has no impact
on the Company.
Implementation of the Interpretation No. 16 of the Accounting Standards for Business Enterprises on the
Company
On December 13,2022, the Ministry of Finance has issued the Interpretation No.16 of Accounting Standards for
Business Enterprises (CK [2022] No.31, the "Interpretation No.16"). In the three accounting treatments,
accounting for deferred income taxes related to assets and liabilities arising from a single transaction for which no
exemption from initial recognition applies shall be implemented as of January 1, 2023, which allowed to be
implemented in advance by the enterprise since the issue year; the Company has not implemented the relevant
accounting in advance in this year; “accounting treatment for the income tax effects of dividends related to
financial instruments classified as equity instruments by the issuer and “accounting treatment for modifying cash-
settled share-based payment to equity-settled share-based payment” shall be implemented as of the date of
promulgation.
Implementation of the Interpretation No. 16 of the Accounting Standards for Business Enterprises has no impact
on the Company.
(2)Change of main accounting policies
□ Applicable √ Applicable
（3）The information of the adjusting items related to the financial statements at the beginning of the year
of first implementation due to the first implementation of new accounting standards from 2023.
□ Applicable √ Applicable
54
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
45.Other
VI. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
VAT Income should be taxed 13%、9%、6%
City maintenance and construction tax Levied based on the taxable income 7%
Enterprise income tax Levied based on the taxable income 25%、15%
Education surcharges Levied based on the taxable income 3%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
Chongqing Jianshe Vehicle System Co., Ltd. 25%
Chongqing Jianshe Automobile A/C Co., Ltd. 15%
Chongqing Pingshan TK Carburetor Co., Ltd. 15%
2.Preferential tax treatment
Chongqing Jianshe Automobile A/C Co., Ltd., a subsidiary of the Company, was certified as a high-tech
enterprise on November 28, 2022 and obtained a high-tech enterprise qualification certificate with certificate
No. GR202251102508, which is valid for three years and is subject to a reduced income tax rate of 15% for
the calculation of enterprise income tax from 2022 to 2024.
According to the Circular of the Ministry of Finance, the General Administration of Customs and the State
Taxation Administration on Issues concerning Tax Policies for In-depth Implementation of Western
Development Strategies (CS [2011] No.58), from January 1, 2011 to December 31, 2020, the enterprise
income tax on enterprises established in western areas and engaging in industries encouraged by the State is
levied at a reduced tax rate of 15%; According to the Announcement on Continuing the Western
Development Enterprise Income Tax Policy (Announcement of the Ministry of Finance, the State Taxation
Administration and the National Development and Reform Commission [2020] No.23), from January 1,
2021 to December 31, 2030, the enterprise income tax on encouraged enterprises in western areas shall be
levied at 15%. The enterprise income tax of the Company’s subsidiary Chongqing Pingshan TK Carburetor
Co., Ltd. was 15% in 2022.
The Company’s export tax refund applies to the policy for tax exemption, offset and refund at tax refund rate
of 13%.
3.Other
None
55
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Bank deposits 64,636,658.94 169,994,534.05
Other monetary funds 34,790,000.00 9,959,988.94
Total 99,426,658.94 179,954,522.99
Total amount of money limited to use,
34,790,000.00
such as mortgage, pledge or freeze
2. Transactional financial assets
3. Derivative financial assets
4. Note receivable
(1) Notes receivable listed by category
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
（6） The actual write-off accounts receivable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Proporti Proporti Proporti Proporti
Amount Amount value Amount Amount value
on % on % on % on %
56
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Accrual of
bad debt
27,688,6 27,688,6 28,054,5 28,054,5
provision 19.10% 100.00% 0.00 18.92% 100.00%
by single 27.26 27.26 49.77 49.77
item
Including
：
Accrual of
bad debt
117,292, 6,545,58 110,746, 120,240, 6,529,84 113,710,
provision 80.90% 5.58% 81.08% 5.43%
by 339.25 7.53 751.72 055.78 1.06 214.72
portfolio
Including
：
144,980, 34,234,2 110,746, 148,294, 34,584,3 113,710,
Total 23.61% 100.00% 23.32%
966.51 14.79 751.72 605.55 90.83 214.72
131,619, 34,868,0 96,751,4 184,917, 35,583,8 149,333,
Total 26.49% 19.24%
471.19 19.53 51.66 114.30 28.66 285.64
Accrual of bad debt provision by single item:27,688,627.26
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Unable to
Chongqing Huansu Auto Parts Co.,Ltd. 12,723,992.31 12,723,992.31 100.00%
recover
Chongqing Bisu Yunbo Power Technology Unable to
5,217,475.35 5,217,475.35 100.00%
Co.,Ltd. recover
Unable to
Hafei Automobile co., Ltd. 3,999,944.43 3,999,944.43 100.00%
recover
Hangzhou Fuyang Instrument Factory Co., Unable to
2,681,594.66 2,681,594.66 100.00%
Ltd. recover
Unable to
Chongqing Kaite Power Technology Co.,Ltd. 1,481,654.59 1,481,654.59 100.00%
recover
Hubei Meiyang Automobile Industry Co., Unable to
1,225,666.00 1,225,666.00 100.00%
Ltd. recover
Unable to
Guangqi Jiao Auto Co.,Ltd. 75,821.20 75,821.20 100.00%
recover
Unable to
Guangqi Jiao Auto Co.,Ltd. 67,998.51 67,998.51 100.00%
recover
Unable to
Beiqi Heibao( Weihai) Auto Co., Ltd. 51,021.77 51,021.77 100.00%
recover
Unable to
Dongying Jiao Auto Co.,Ltd. 48,579.85 48,579.85 100.00%
recover
Unable to
Suchuan Yema Automobile Co., Ltd. 12,157.93 12,157.93 100.00%
recover
Unable to
Dongfeng Xiaokang Auto Co., Ltd. 102,720.66 102,720.66 100.00%
recover
Total 27,688,627.26 27,688,627.26
Accrual of bad debt provision by portfolio:6,545,587.53
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
57
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Within 1 year（Including 1 year） 111,655,809.17
1-2 years 444,283.79
2-3 years 23,921.09
Over 3 years 32,856,952.46
3-4 years 14,225.78
4-5 years 1,288,174.18
Over 5 years 31,554,552.50
Total 144,980,966.51
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or
Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt provision
28,054,549.77 365,922.51 27,688,627.26
by single item
Accrual of bad debt provision
6,529,841.06 52,490.86 36,744.39 6,545,587.53
by portfolio
Total 34,584,390.83 52,490.86 402,666.90 34,234,214.79
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Amount Way
Hubei Meiyang Automobile Industry Co., Ltd. 183,145.40 Cash
Jiangxi Zhicheng Auto Co., Ltd. Jingdezhen Branch 182,777.11 Cash
Total 365,922.51
(3) The actual write-off accounts receivable
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Proportion of Amount of
Amount of
Company Name total accounts ending balance
ending balance
receivable % for bad debts
PSA Company 49,293,085.11 34.00%
Chongqing Huansu Auto Parts Co.,Ltd. 12,723,992.31 8.78% 12,723,992.31
Great Wall Motor Co., Ltd. Chongqing
10,605,076.18 7.31%
Procurement branch
Chengdu Henggao Machine Electric Co.,
6,849,752.48 4.72%
Ltd.
Chongqing Changan Auto 5,295,805.67 3.65%
58
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Total 84,767,711.75 58.46%
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
6. Financing of receivables
In RMB
Items Closing balance Opening balance
Notes receivable 32,933,299.86 17,548,591.75
Total 32,933,299.86 17,548,591.75
Changes in the current period of receivables financing and fair value
□ Applicable √ Not applicable
Relevant information of the financing provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to the general
model of expected credit loss:
□ Applicable √ Not applicable
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 4,516,354.19 91.00% 3,577,455.19 88.89%
1-2 years 90,007.50 1.81% 90,007.50 2.24%
2-3 years 127,554.40 2.57% 127,554.40 3.17%
Over 3 years 229,348.93 4.62% 229,348.93 5.70%
Total 4,963,265.02 4,024,366.02
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name Closing balance Proportion
Chongqing Jiantao Aluminium Co.,
1,001,000.00 20.17
Ltd.
Huayang Trade (Shanghai)Co., Ltd. 426,000.00 8.58
Suzhou Ruichang Electromechanical
359,400.00 7.24
Engineering Co., Ltd.
Shenyang Huatai Mould Co., Ltd. 334,480.00 6.74
Ningbo Dongda Auto Part Co., Ltd. 290,000.00 5.84
Total 2,410,880.00 48.57
59
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
8. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 2,560,300.89 1,720,044.17
Total 2,560,300.89 1,720,044.17
（1）Interest receivable
1) Category of interest receivable
2) Significant overdue interest
3）Bad-debt provision
□ Applicable √Not applicable
(2)Dividend receivable
1) Dividend receivable
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
□ Applicable √ Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash and borrowings with small amount 534,036.14 284,542.01
Current Account 8,289,317.15 7,698,554.56
Total 8,823,353.29 7,983,096.57
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit Expected credit loss Total
for the entire duration
losses over the next over life (no credit
(credit impairment
12 months impairment)
occurred)
Balance as at January 1, 2023 3,731,873.16 2,531,179.24 6,263,052.40
Balance as at January 1, 2023 in
current
Balance as at June 30,2023 3,731,873.16 2,531,179.24 6,263,052.40
60
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
1-2 years 2,570,300.89
2-3 years 1,223,146.45
Over 3 years 5,029,905.95
3-4 years 255,723.62
Over 5 years 4,774,182.33
Total 8,823,353.29
3) Accounts receivable withdraw, reversed or collected during the reporting period
4) The actual write-off accounts receivable
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable
Shenzhen Jianshe Motorcycle Current Over 5
3,013,664.00 34.16% 3,013,664.00
Co.,Ltd. account years
Chongqing Jianshe Lijue Current
1,478,870.07 2-4 years 16.76% 1,478,870.07
Industry Co., Ltd. account
Ningbo Jianshe Chongqing Current Over 5
692,035.31 7.84% 692,035.31
Office account years
Current Over 5
Temporary supplier 390,655.08 4.43% 390,655.08
account years
Ningbo Jianshe Motorcycle Current Over 5
329,628.73 3.74% 329,628.73
Co., Ltd. account years
Total 5,904,853.19 66.92% 5,904,853.19
6) Accounts receivable involved with government subsidies
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
9. Inventories
Whether the company need to comply with the disclosure requirements of the real estate industry
No
（1）Category of Inventory
In RMB
61
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw
22,147,611.91 22,147,611.91 23,279,997.14 23,279,997.14
materials
Goods in
14,005,533.58 42,930.77 13,962,602.81 9,357,445.63 42,930.77 9,314,514.86
progress
Stock
104,701,965.98 2,170,864.12 102,531,101.86 98,610,353.14 2,170,864.12 96,439,489.02
goods
Turnover
4,389,620.39 1,294,020.05 3,095,600.34 4,120,591.96 1,294,020.05 2,826,571.91
materials
Total 145,244,731.86 3,507,814.94 141,736,916.92 135,368,387.87 3,507,814.94 131,860,572.93
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Closing balance
Withdra Reverse or
Other Other
wal write-off
Goods in
42,930.77 42,930.77
progress
Stock goods 2,170,864.12 2,170,864.12
Turnover
1,294,020.05 1,294,020.05
materials
Total 3,507,814.94 3,507,814.94
(3)Description of The closing balance of inventories contain the amount of borrowing costs capitalized
（4）Description of amortization amount of contract performance cost in the current period
10.Contact assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
11. Assets divided as held-to-sold
12. Non-current assets due within 1 year
13. Other current assets
In RMB
Items Closing balance Opening balance
Overpaid VAT 2,362,443.87 1,468,399.16
Total 2,362,443.87 1,468,399.16
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
14.Creditor's rights investment
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
63
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivable
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Withdra
balance of
Opening Decreas Profits and losses Other Cash bonus wal of
Investees Changes Closing balance impairme
balance Additional e in on investments comprehe or profits impairm
in other Other nt
investment investm Recognized under nsive announced ent
equity provision
ent the equity method income to issue provisio
n
I. Joint ventures
Chongqing Jianshe Hanon
Automobile heat
210,112,321.04 3,969,024.86 214,081,345.90
management system co.,
Ltd.
Subtotal 210,112,321.04 3,969,024.86 214,081,345.90
II. Associates
Total 210,112,321.04 3,969,024.86 214,081,345.90
64
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
18. Other equity instruments investment
19.Other non-current assets
20. Investment property
(1) Investment property adopted the cost measurement mode
□Applicable √Not applicable
(2) Investment property adopted fair value measurement mode
□ Applicable √Not applicable
(3) Details of investment property failed to accomplish certification of property
21. Fixed assets
In RMB
Items Closing balance Opening balance
Fixed assets 199,107,729.27 202,039,143.80
Total 199,107,729.27 202,039,143.80
65
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
（1）List of fixed assets
In RMB
House,
Items Machinery equipment Transportations Other equipment Office equipment Total
Building
I. Original book value：
1. Opening balance 103,844,073.80 625,135,240.34 5,898,095.03 3,326,022.05 17,127,717.39 755,331,148.61
2.Increased amount of the period 440,366.98 9,012,631.09 0.00 0.00 225,088.48 9,678,086.55
（1）Purchase 440,366.98 8,943,604.54 0.00 0.00 225,088.48 9,609,060.00
（2）Transfer of project under Construction 0.00 69,026.55 0.00 0.00 0.00 69,026.55
（3）Increased from enterprise merger 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
3.Decreased amount of the period 0.00 0.00 0.00 0.00 359,734.08 359,734.08
（1）Disposal or scrap 0.00 0.00 0.00 0.00 359,734.08 359,734.08
0.00 0.00 0.00 0.00 0.00 0.00
4.Closing balance 104,284,440.78 634,147,871.43 5,898,095.03 3,326,022.05 16,993,071.79 764,649,501.08
II. Accumulative depreciation
1.Opening balance 57,311,359.61 462,125,881.01 5,148,029.86 3,064,213.78 15,596,958.44 543,246,442.70
2.Increased amount of the period 1,609,944.52 10,702,765.99 49,736.55 32,188.30 204,138.77 12,598,774.13
（1）Withdrawal 1,609,944.52 10,702,765.99 49,736.55 32,188.30 204,138.77 12,598,774.13
0.00 0.00 0.00 0.00 0.00 0.00
3.Decreased amount of the period 0.00 0.00 0.00 0.00 349,007.13 349,007.13
（1）Disposal or scrap 0.00 0.00 0.00 0.00 349,007.13 349,007.13
0.00 0.00 0.00 0.00 0.00 0.00
4.Closing balance 58,921,304.13 472,828,647.00 5,197,766.41 3,096,402.08 15,452,090.08 555,496,209.70
III. Impairment provision 0.00 0.00 0.00 0.00 0.00 0.00
1. Opening balance 0.00 10,045,562.11 0.00 0.00 0.00 10,045,562.11
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
2.Increased amount of the period 0.00 0.00 0.00 0.00 0.00 0.00
（1）Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
3.Decreased amount of the period 0.00 0.00 0.00 0.00 0.00 0.00
（1）Disposal or scrap 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
4.Closing balance 0.00 10,045,562.11 0.00 0.00 0.00 10,045,562.11
IV. Book Value 0.00 0.00 0.00 0.00 0.00 0.00
1.Closing book value 45,363,136.65 151,273,662.32 700,328.62 229,619.97 1,540,981.71 199,107,729.27
2.Opening book value 46,532,714.19 152,963,797.22 750,065.17 261,808.27 1,530,758.95 202,039,143.80
67
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(2) List of temporarily idle fixed assets
(3) Fixed assets leased out from operation lease
(4) Details of fixed assets failed to accomplish certification of property
（5）Liquidation of fixed assets
22. Construction in progress
In RMB
Items Closing balance Opening balance
Construction in progress 869,819.59 989,429.96
Total 869,819.59 989,429.96
(1) List of construction in progress
In RMB
Closing balance Opening balance
Items
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Production line
555,697.91 555,697.91 524,783.95 524,783.95
project
Mould to be
transferred to 314,121.68 314,121.68 395,619.46 395,619.46
fixed assets
Comprehensive
performance 69,026.55 69,026.55
test-bed
Total 869,819.59 869,819.59 989,429.96 989,429.96
(2) Changes of significant construction in progress
(3) List of the withdrawal of the impairment provision of the construction in progress
（4）Engineering material
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
68
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
26. Intangible assets
(1) Information
In RMB
Items Land use right Patent Non-patents Software Total
I. Total original book value
1. Opening balance 21,224,143.33 2,691,549.96 3,933,749.40 27,849,442.69
2. Increase in the reporting period
（1）Purchase
（2）Internal R&D
（3）Increase from enterprise combination
3.Decrease in the reporting period
（1）Disposal
4.Closing balance 21,224,143.33 2,691,549.96 3,933,749.40 27,849,442.69
II. Total accrued amortization
1.Opening balance 12,863,535.82 1,108,285.29 2,076,116.63 16,047,937.74
2.Increased in the reporting period 350,709.40 237,489.71 301,367.94 889,567.05
（1）Withdrawal 350,709.40 237,489.71 301,367.94 889,567.05
3.Decrease in the reporting period
（1）Disposal
69
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
4.Closing balance 13,214,245.22 1,345,775.00 2,377,484.57 16,937,504.79
III. Impairment provision
1.Opening balance
2.Increases in the reporting period
（1）Withdrawal
3.Decrease in the reporting period
（1）Disposal
4.Closing balance
IV. Book value
1.Book value of the period-end 8,009,898.11 1,345,774.96 1,556,264.83 10,911,937.90
2.Book value of the period-begin 8,360,607.51 1,583,264.67 1,857,632.77 11,801,504.95
70
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(2) Details of fixed assets failed to accomplish certification of land use right
27. R&D expenses
28. Goodwill
（1） Goodwill Book original
（2）Goodwill Impairment provision
29. Long-term unamortized expenses
In RMB
Amortization
Items Opening balance Increase Decrease Closing balance
amount
SlidDworks2018
Three years 70,280.65 23,349.06 46,931.59
Service charge
Total 70,280.65 23,349.06 46,931.59
30. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Closing balance Opening balance
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
38,046,113.58 5,706,917.04 4,522,840.65 678,426.10
provision
Credit impairment
33,873,448.97 5,073,630.93
provision
Total 38,046,113.58 5,706,917.04 38,396,289.62 5,752,057.03
(2) Deferred income tax liabilities had not been off-set
In RMB
Closing balance Opening balance
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Estimated added
value of assets not
under the same 2,580,500.91 645,125.23 3,281,012.83 820,253.21
control
Tax deduction for
depreciation of fixed 1,276,898.41 191,534.76 1,276,898.41 191,534.76
assets
Total 3,857,399.32 836,659.99 4,557,911.24 1,011,787.97
71
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
End balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Items deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
5,752,057.03 5,752,057.03
assets
Deferred income tax
836,659.99 1,011,787.97
liabilities
(4)Details of income tax assets not recognized
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
31 .Other non-current assets
In RMB
Balance in year-end Balance in year-begin
Book balance Provision Book value Book balance Provision Book value
Items
for for
devaluatio devaluatio
n n
Advance
12,733,820.00 12,733,820.00 15,860,120.00 15,860,120.00
equipment
Total 12,733,820.00 12,733,820.00 15,860,120.00 15,860,120.00
32. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Items Closing balance Opening balance
Guaranteed borrowings 119,103,500.00 135,103,500.00
Credit borrowings 353,290,000.00 411,500,000.00
Total 472,393,500.00 546,603,500.00
(2) List of the short-term borrowings overdue but not return
33. Transactional financial liabilities
34. Derivative financial liability
35.Note payable
In RMB
Items Closing balance Opening balance
Bank acceptance bill 65,698,705.89 30,379,988.94
Total 65,698,705.89 30,379,988.94
72
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
36. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Within 1 year 195,828,433.20 167,925,916.80
1-2 years 1,002,926.50 1,002,926.50
2-3 years 936,903.59 936,903.59
Over 3 years 1,324,729.21 1,324,729.21
Total 199,092,992.50 171,190,476.10
(2) Note of the accounts payable aging over one year
37. Advance from customers
(1) List of advance from customers
(2) Significant advance from customers aging over one year
38.Contract liabilities
In RMB
Items Closing balance Opening balance
Sales payment for manufacturing
1,867,398.72 3,441,205.38
products is received in advance
Total 1,867,398.72 3,441,205.38
39. Payroll payable
(1) List of Payroll payable
In RMB
Items Opening balance Increase Decrease Closing balance
Short-term
5,443,402.41 47,673,525.03 49,179,013.59 3,937,913.85
compensation
Post-employment
benefits - defined 3,085,990.37 5,261,740.06 6,146,928.76 2,200,801.67
contribution plans
Total 8,529,392.78 52,935,265.09 55,325,942.35 6,138,715.52
（2）Presentation of short-term compensation
In RMB
Items Opening balance Increase Decrease Closing balance
(1) Salary, bonus, allowance and
2,264,517.88 34,408,017.81 35,934,876.81 737,658.88
subsidy
73
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(2) Employee benefits 3,075,132.79 3,075,132.79
(3) Social insurance expenses 1,233,775.80 5,168,166.27 5,197,326.64 1,204,615.43
Including: medical insurance premium 1,164,912.31 4,812,359.94 4,830,884.80 1,146,387.45
Work-related injury insurance premium 68,863.49 355,806.33 366,441.84 58,227.98
(4) Housing fund 477,137.46 3,953,695.00 3,993,442.00 437,390.46
(5) Labor union expenditures and
1,467,971.27 1,068,513.16 978,235.35 1,558,249.08
employee education expenses
Total 5,443,402.41 47,673,525.03 49,179,013.59 3,937,913.85
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
Basic endowment
2,738,319.74 5,099,663.52 5,974,461.68 1,863,521.58
insurance premium
Unemployment
347,670.63 162,076.54 172,467.08 337,280.09
insurance premium
Total 3,085,990.37 5,261,740.06 6,146,928.76 2,200,801.67
40. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 430,952.95 896,389.23
Individual income tax 344,061.20 969,485.81
Urban maintenance and construction tax 3,129,991.42 3,182,393.81
property tax 3,727,900.64 3,727,900.64
Land use tax 1,808,215.20 1,808,215.20
Other 6,027,889.07 6,065,319.38
Total 15,469,010.48 16,649,704.07
41.Other account payable
In RMB
Items Closing balance Opening balance
Other account payable 7,738,104.48 7,566,872.62
Total 7,738,104.48 7,566,872.62
74
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
（1) Interest payable
(2) Dividends payable
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Cash deposit 859,120.26 863,901.85
Work-related injury payment 2,298,920.31 3,806,031.38
Other 4,580,063.91 2,896,939.39
Total 7,738,104.48 7,566,872.62
（2）Significant other payables for over 1 year
42. Liabilities classified as holding for sale
43. Non-current liabilities due within 1 year
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Taxes to be written off 242,761.83 447,356.63
Total 242,761.83 447,356.63
45. Long-term borrowing
(1) Category of long-term loan
75
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
46. Bonds payable
(1) Bonds payable
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
47. Lease liability
48. Long-term payable
（2）Special payable
49. Long term payroll payable
(1) List of long term payroll payable
(2) Changes of defined benefit plans
50. Accrued liabilities
51. Deferred income
52. Other non-current liabilities
53. Share capital
In RMB
Increase ("+") /decrease ("-") for the current year
Share
Opening balance Share Closing balance
Issuance of converted Sub-
donati Others
new shares from public total
on
reserve funds
Total shares 119,375,000.00 119,375,000.00
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
76
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
55. Capital reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 702,032,741.07 702,032,741.07
Other capital reserves 256,532,553.22 256,532,553.22
Total 958,565,294.29 958,565,294.29
56. Treasury stock
57. Other comprehensive income
In RMB
Occurred current term
Less：
Less：
Amount
Prior
transferred
period
into profit
included in
and loss in
Opening Amount other After-tax After-tax Closing
Items the current Less：
balance incurred composite attribute to attribute to balance
period that Income tax
before income the parent minority
income tax recognied expenses company shareholder
transfer to
into other
retained
comprehen
income in
sive
the current
income in
period
prior period
1. Other
comprehen
sive
income that
cannot be 9,800.00 9,800.00
reclassified
in the loss
and gain in
the future
Share of
other
combined
income of
invested
units that
cannot be 9,800.00 9,800.00
reclassified
into profit
or loss
under the
equity
method
Total of
other
comprehen 9,800.00 9,800.00
sive
income
77
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
58. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Safety in production
3,234,669.03 1,383,189.96 408,367.40 4,209,491.59
expenses
Total 3,234,669.03 1,383,189.96 408,367.40 4,209,491.59
59. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
56,724,000.00 56,724,000.00
reserves
Discretionary surplus
68,962,000.00 68,962,000.00
reserves
Total 125,686,000.00 125,686,000.00
60. Retained profits
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Adjust the undistributed profits before and at the
-1,095,779,478.64 -1,056,046,383.95
end of the period
Opening balance of retained profits after
-1,095,779,478.64 -1,056,046,383.95
adjustments
Add: Net profit attributable to owners of the Parent
-43,310,678.15 13,405,938.22
company
Closing retained profits -1,139,090,156.79 -1,042,640,445.73
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
61. Operating income and operating costs
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Income Cost Income Cost
Main business 215,091,241.85 203,268,422.15 232,565,591.25 219,733,002.10
Other business 1,496,441.91 719,749.44 6,565,871.59 5,526,678.32
Total 216,587,683.76 203,988,171.59 239,131,462.84 225,259,680.42
78
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Information related to performance obligations
According to the contract, the company delivers the goods to the agreed place or the third-party logistics company.
Each month, the customer issues a notice of account according to the actual consumption of the production. The
sales clerk issues an invoice according to the customer's notice of account, combined with the customer's
consumption, contract unit price, notice of account, etc. As the time point of control transfer, the sales revenue is
recognized. The credit period given by the company to customers is determined according to the credit risk of
customers, and there is no significant financing component.
Information related to the transaction price apportioned to the residual performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was 1,867,398.72 Yuan at the period-end, among which RMB 1,867,398.72 Yuan was
expected to be recognized in 2023.
62.Taxes and surcharges
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Urban maintenance and construction tax 775,611.04 245,959.40
Educational surtax 553,895.55 143,725.97
House tax 289,175.34 478,172.10
Land royalties 538,182.60 793,990.27
vehicle ship royalties 4,020.00 1,560.00
Stamp duty 216,591.67 251,669.70
Other 169,250.34 346,795.04
Total 2,546,726.54 2,261,872.48
63. Selling expenses
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Repair cost 1,092,626.29 1,611,009.58
Transportation cost 79,977.51 86,409.23
Payroll Payable 3,159,579.47 3,594,883.83
Storage fee 264,418.16 506,651.05
Travel expenses 265,203.60 304,574.01
Sales service charge 79,794.66 139,057.96
Office expenses 55,793.43 39,298.63
Depreciation costs 8,418.24 22,937.66
Insurance expenses 485,126.25 601,638.39
Total 5,490,937.61 6,906,460.34
79
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
64. Administrative expenses
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Payroll Payable 17,497,009.35 4,379,995.60
Depreciation costs 1,902,323.31 1,645,374.54
Repair charges 862,196.50 2,294,828.04
Office expenses 417,798.58 351,766.45
Agency fee 708,881.91 709,223.40
Travel expenses 218,965.26 87,611.87
Amortization of intangible assets 755,303.31 755,303.31
Board of directors' expenses 159,810.97 92,548.84
Business entertainment 209,169.94 193,361.38
Sewage charge 776,302.26 746,227.70
Lawsuit fee 2,415.96 94,339.62
Insurance expenses 3,022,496.06 3,240,622.39
Total 26,532,673.41 14,591,203.14
65. R&D Expense
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Material cost 1,120,796.15 747,734.04
Payroll Payable 13,024,193.94 11,138,298.39
Depreciation costs 1,154,623.72 1,045,218.56
Amortization of intangible assets 134,263.74 134,263.74
Travel expenses 158,517.27 227,364.90
Other 1,042,476.69 1,455,596.88
Total 16,634,871.51 14,748,476.51
66. Financial expenses
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Interest expenses 10,828,945.23 9,877,903.63
Less: Interest income 670,585.23 546,885.24
Exchange gains and losses 41,201.08 -12,261.65
Commission Charge and others -122,036.79 -901,896.09
Total 10,077,524.29 8,416,860.65
80
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
67.Other income
In RMB
Amount of the Current Term Amount of the Previous Term
Other sources of revenue
Stable post subsidies 89,224.87
R & D Subsidies 600,000.00 37,900.00
Three generations of fees 15,385.63 19,274.04
Subsidies from the District-level
Enterprise Technology Innovation Center
80,000.00
of the Finance Bureau of Jiulongpo
District, Chongqing City
Amount not to be paid 975,470.31
Group reward 195,000.00
Total 810,385.63 1,201,869.22
68.Investment income
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Long-term equity investment income
3,969,024.86 4,372,958.10
calculated by equity method
Total 3,969,024.86 4,372,958.10
Other note
69.Net exposure hedging income
70. Gains on the changes in the fair value
71. Credit impairment loss
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Loss of receivables 350,176.04 715,809.13
Total 350,176.04 715,809.13
72. Losses from asset impairment
73. Asset disposal income
In RMB
Amount of the Current Term Amount of the Previous Term
Source
Total profits of non-current assets
-10,025.19 39,860,952.30
disposal
Total -10,025.19 39,860,952.30
81
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
74. Non-operating income
In RMB
Amount of the Current Term Amount of the Previous Term Recorded in the amount of the
Items non-recurring gains and
losses
Other 79,114.42 135,599.04 79,114.42
Total 79,114.42 135,599.04 79,114.42
75. Non-operating expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term Carried to current contingent
gain/loss
Other 1,260.70 2,505.21 1,260.70
Total 1,260.70 2,505.21 1,260.70
76. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Current income tax expense 781.64
Deferred income tax expense -175,127.98 -175,127.98
Total -175,127.98 -174,346.34
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of the Current Term
Total profit -43,485,806.13
Income tax expenses -175,127.98
77. Other comprehensive income
Refer to the note
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest income 230,585.23 410,429.00
Government subsidy 600,000.00 737,900.00
82
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Deposit, petty funds 5,087,254.29 6,778,717.37
Total 5,917,839.52 7,927,046.37
(2) Other cash paid related to operation
In RMB
Items Amount of the Current Term Amount of the Previous Term
Deposits, petty cash and allotment 3,098,455.31 5,339,666.87
Expenses paid in cash during the period 6,399,501.59 7,244,093.34
Total 9,497,956.90 12,583,760.21
(3) Other cash received related to investment
(4) Other cash paid related to investment
(5) Other cash received related to financing
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest 145,373.08
Collection of financing 17,010,000.00
Total 17,155,373.08
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payment of due financing notes 33,830,011.06 117,420,000.00
Commission charge 57,849.36 22,081.48
Total 33,887,860.42 117,442,081.48
79. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows
In RMB
Amount of the Current Amount of the Previous
Supplementary information
Term Term
1. Net profit adjusted to cash flows from operating activities
Net profits -43,310,678.15 13,405,938.22
Add：Provision for assets impairment -350,176.04 -715,809.13
Depreciation of fixed assets, oil and gas assets and consumable biological 12,249,767.00 12,691,430.17
83
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
assets
Depreciation of Use right assets 0.00
Amortization of intangible assets 889,567.05 820,536.71
Amortization of Long-term deferred expenses 23,349.06 23,349.06
Loss on disposal of fixed assets, intangible assets and other long-term
10,025.19 -39,860,952.30
deferred assets
Fixed assets scrap loss 0.00
Loss on fair value changes 0.00
Financial cost -10,828,945.23 9,877,903.63
Loss on investment -3,969,024.86 -4,372,958.10
Decrease of deferred income tax assets 0.00
Increased of deferred income tax liabilities -175,127.98 -175,127.98
Decrease of inventories -9,876,343.99 31,747,487.89
Decease of operating receivables -215,177,091.26 154,269,985.67
Increased of operating Payable 291,293,457.57 -146,322,551.34
Other 0.00
Net cash flows arising from operating activities 20,778,778.36 31,389,232.50
II. Significant investment and financing activities that without cash flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents：
Ending balance of cash 64,636,658.94 64,871,780.20
Less: Beginning balance of cash equivalents 169,994,534.05 23,738,523.19
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent -105,357,875.11 41,133,257.01
(2) Net Cash paid of obtaining the subsidiary
(3) Net Cash receive of disposal of the subsidiary
(4) Component of cash and cash equivalents
In RMB
Items Closing balance Opening balance
I. Cash 64,636,658.94 169,994,534.05
Demand bank deposit 64,636,658.94 169,994,534.05
84
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
III. Balance of cash and cash equivalents at the
64,636,658.94 169,994,534.05
period end
80. Note of statement of changes in the owner's equity
81. The assets with the ownership or use right restricted
In RMB
Book value at the end of the reporting
Items Cause of restriction
period
Monetary funds 34,790,000.00 Guarantee deposit, fixed deposit
Receivable financing 7,408,705.89 Pledge
Total 42,198,705.89
82. Foreign currency monetary items
(1) Foreign currency monetary items
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √Not applicable
83. Arbitrage
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount included in current
Items Amount Project
profit and loss
Government subsidies related
600,000.00 Other income 600,000.00
to the benefits
（2）Government subsidy return
□ Applicable √ Not applicable
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
(2) Combined cost and goodwill
(3) The identifiable assets and liabilities of acquiree at purchase date
85
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other note:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
(2) Combination cost
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
3. Counter purchase
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
5. Changes in the merger scope for other reason
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Proportion of
Main shareholding
Registrati
Name operating Nature of business Way of gaining
on place Indir
place Directly
ectly
Production and sales
Chongqing Jianshe Automobile Chongqin of automobile air 100.00% Establishment
A/C Co., Ltd. Chongqing g conditioners by investment
Combination
Production and sales not under
100.00%
Chongqing Pingshan TK Chongqin of motorcycle common
Carburetor Co., Ltd. Chongqing g accessories control
86
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(2) Significant not wholly owned subsidiary
(3) The main financial information of significant not wholly owned subsidiary
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion of shareholding Accounting
treatment
Name of joint Domicile of
Registered methods for the
venture or primary Business nature
place Directly Indirectly investments in
associate operation
joint ventures
or associates
Assembly of
variable
Chongqing
displacement
Hanon Jianshe 50.00% Equity method
Thermal compressor and
Systems Co., production of core
Ltd. Chongqing Chongqing components
（2）Major joint ventures and associates
In RMB
Beginning balance / Amount of the
Ending balance / Current amount
previous period
Chongqing Hanon Jianshe Thermal Chongqing Hanon Jianshe Thermal
Systems Co., Ltd. Systems Co., Ltd.
Current assets 182,451,817.88 166,787,138.08
Including: cash and cash equivalents
Non-current assets 342,211,198.69 355,276,389.82
Total assets 524,663,016.57 522,063,527.90
Current liabilities 99,765,106.75 95,641,912.16
Non-current liabilities 9,313,692.45
Total liabilities 99,800,549.73 104,955,604.61
Minority equity
87
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Equity attributable to the shareholders of
424,862,466.84 417,107,923.29
parent company
Shares in net assets calculated according
212,431,233.40 208,553,961.65
to the shareholding ratios
Adjustment events
- Goodwill
- Unrealized profits of internal
transactions
- Others
The book values of equity investments in
214,081,345.90 210,112,321.04
joint ventures
The fair values of equity investments in
joint ventures with a public offer
Operating income 125,985,275.40 254,562,100.17
Financial expenses 1,331,208.98 4,586,867.43
Income tax expenses 1,995,799.13 1,799,442.01
Net profit 7,938,049.72 16,256,104.64
Net profit from termination
Other comprehensive income
Total comprehensive income 7,938,049.72 16,256,104.64
Dividends received from joint ventures
for the current
year
(3) Main financial information of significant associated enterprise
(4) Summary financial information of insignificant joint venture or associated enterprise
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
88
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Registered Shareholding ratio in Voting ratio in the
Business nature Registered capital
company place the Company (%) Company (%)
Military Investment in
Beijing 3,530,000.00 71.13% 71.13%
Equipment Group state-owned assets
2. Subsidiaries of the Company
See notes
89
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Jianshe Mechanical and Electric
Under the common control of the same party
Jianshe Industry
Under the common control of the same party
Military Finance Co.
Under the common control of the same party
Changan Auto
Under the common control of the same party
Changan Auto.Beijing Chanan Auto Company.
Under the common control of the same party
Chongqing Lingyao Auto An Joint venture a subsidiary of a controlling shareholder
Hefei Changan
Under the common control of the same party
Nanjing Changan
Under the common control of the same party
Baoding Changan Bus Manufacturing Co., Ltd.
Under the common control of the same party
Heifei Changan Auto
Under the common control of the same party
Chongqing Changan Auto Customer service Co., Ltd.
Under the common control of the same party
Chongqing Northern Jianshe Import & Export Co., Ltd.
Under the common control of the same party
Hafei Motor Under the common control of the same party
South Air International Conditioning Co., Ltd. Under the common control of the same party
Southwest Ordnance Chongqing Environmental Protection China Ordnance Equipment Group Commercial Factoring Co.,
Research Institute Co., Ltd. Ltd.
China Ordnance Equipment Group Commercial Factoring Co., China Ordnance Equipment Group Commercial Factoring Co.,
Ltd. Ltd.
Chongqing Jianshe Yamaha Motorcycle Co., Ltd. Joint venture of subsidiaries of CSGC
ChanganMinsheng APLL Logistics Co., Ltd. Joint venture of subsidiaries of CSGC
Chongqing JiansheLijue Industrial Co., Ltd. Associates of subsidiaries of CSGC
ChanganMinsheng APLL Logistics Co., Ltd. and its affiliates Controlled by the same party
Chongqing Changan Automobile Co., Ltd. and its affiliates Controlled by the same party
Luoyang North Enterprises Group Co., Ltd. Controlled by the same party
Norendar International Co., Ltd. Controlled by the same party
ZhuzhouJianshe Yamaha Motorcycle Co., Ltd. Associates of subsidiaries of CSGC
Yan Xuechuan Chairman
Fan Aijun Director and General Manager
XuWanming Secretary of the Discipline Inspection Commission
Dong Qihong Director
Shi Qinggong Director
90
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Zhou Yongqiang Deputy General Manager
Gu Xiaozhou Director
Li Jiaming Independent Director
XieFei Independent Director
Song Weiwei Independent Director
Liu Wei Independent Director
Lu Xianyun Chairman of the Board of Supervisors
Zhang Lungang Supervisor
Qiao Guoan Director
Liao Jian Employee Supervisors
Su Qiang Employee Supervisors
Tan Mingxian Chief Accountant
Li Yongjiang Deputy General Manager
Zhang Hushan Secretary of the Board of Directors
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Over the
Occurred Trading limit Occurred in
Related party Content trading limit
current term approved previous term
or not
Jianshe Industry Purchase energy 863,000.00 1,500,000.00 No 406,077.69
Jianshe Industry Part test 110,400.00 500,000.00 No 164,081.65
Changan Minsheng APLL
Logistics Co., Ltd. and its Warehousing 181,700.00 500,000.00 No 868,668.74
affiliated enterprises services
Southwest Ordnance
Chongqing Environmental
Service 0.00 1,500,000.00 No 731,490.58
Protection Research
Institute Co., Ltd.
Acceptance of
Cbangan Group and its repairing
47,600.00 1,000,000.00 No 311,859.53
Subsidiaries service
Sales of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Cbangan Group and its
Sales of goods 31,246,100.00 38,242,501.11
Subsidiaries
Chongqing Yamaha
Selling parts 4,752,700.00 2,662,841.04
Motorcycle Co., Ltd.
91
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Minsheng Logistics Selling parts 18,400.00
Jianshe HANON Selling parts 1,797,000.00 853,265.31
Jianshe Mechanical and
Energy fee 2,600.00 83,764.33
Electric
Jianshe HANON Energy fee 14,800.00 3,417,899.06
Jianshe Industry Energy fee 14,500.00 622,894.71
Chongqing Jianya Service 575,400.00
(2) Related trusteeship/contract
(3) Information of related lease
(4) Related-party guarantee
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
(8) Other related transactions
Deposit business
Related party Relationship Maximum Deposit Beginning The amount incurred
daily deposit interest rate balance
limitd（Ten range （Ten Total deposit Total amount Ending
thousand thousand amount of withdrawn in balance
yuan） yuan） the current the current （Ten
period（Ten period（Ten thousand
thousand thousand yuan）
yuan） yuan）
Military
Under same
Finance 30,000 0.35% 16,689.71 74922.52 85213.61 6398.64
control
Company
Loan business
Related party Relationship Beginning The amount incurred
balance
（Ten Total Ending
Loan limit Total loan
thousand repayment balance
（Ten amount for
Loant interest yuan） amount of （Ten
thousand rate range the current
this period thousand
yuan） period（Ten
（Ten yuan）
thousand
thousand
yuan）
yuan）
Military
Under same
Finance 45,000 3.915-4.35% 41,150 5600 12421 34329
control
Company
Credit extension or other financial services
Related party Relationship Business type Total amount(Ten Actual amount
thousand yuan) incurred(Ten thousand
yuan)
Military Finance
Under same control Credit 45000 15000
Company
Military Finance
Under same control Other 45000 15000
Company
92
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
6. Receivable and payables due with related parties
（1）Receivables
In RMB
At end of term At beginning of term
Project Related parties
Book balance Bad debt provision Book balance Bad debt provision
Accounts Baoding Changan Bus
2,664,923.58
receivable Manufacturing Co., Ltd.
Hefei Changan
4,872,284.73 2,846,630.18
Automobile Co., Ltd.
Hebei Changan
3,265,788.81 189,172.54 22,436.51
Automobile Co., Ltd.
Nanjing Changan
216,787.16 132,101.39
Automobile Co., Ltd.
Chongqing Changan
Minsheng Logistic Co., 20,836.30
Ltd.
Chongqing Changan
5,295,805.67 7,072,474.53
Automobile Co., Ltd.
Hafei Motor Co., Ltd. 3,999,944.43 3,999,944.43 3,999,944.43 3,999,944.43
Chongqing Jianshe
Yamaha Motorcycle 757,124.97 769,838.66
Co., Ltd.
Receivables Chongqing Changan
11,610,000.00 12,320,000.00
financing Automobile Co., Ltd.
Hefei Changan
2,985,318.75
Automobile Co., Ltd.
Hebei Changan
970,000.00
Automobile Co., Ltd.
Chongqing Jianshe
Other
Industry (Group) Co., 791,875.14 1,294,150.66
receivables Ltd.
Chongqing JiansheLijue
1,478,870.07 1,478,870.07 1,478,870.07 1,478,870.07
Industrial Co., Ltd.
（2）Payables
In RMB
Project Related Parties At end of term At beginning of term
China Military Equipment Group Commercial
Accounts payable 17,921,296.16 18,250,000.00
Factoring Co., Ltd.
Note payable China Military Equipment Group Finance Co., Ltd. 5,000,000.00 14,000,000.00
Other payable Chongqing Jianshe Industry (Group) Co., Ltd. 2,560.40 341,525.92
Luoyang North Enterprises Group Co., Ltd. 142,730.00 142,730.00
Chongqing Jianshe Lijue Industrial Co., Ltd. 57,200.00 57,200.00
Northern Engineering Design and Research 25,000.00 25,000.00
93
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Institute Co., Ltd
Chongqing HanonJianshe Thermal Systems Co.,
20,470.00 20,470.00
Ltd.
Contract liabilities Chongqing Lingyao Automobile Co., Ltd. 223,940.62 223,940.62
Chongqing Changan Automobile Co., Ltd.,
2,799.75 2,799.75
Changan Automobile (Beijing) Company
94
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Significant commitments
2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4. Notes of other significant events
95
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Closing balance Opening balance
Categor
Book balance Bad debt provision Book balance Bad debt provision
y Book Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on % on % on % on %
Of
which
Accrual
of bad 4,349,81 1,291,49 3,058,31 4,558,38 1,291,49 3,266,89
100.00% 29.69% 100.00% 28.33%
debt 1.46 6.94 4.52 6.94 6.94 0.00
provisio
96
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
n by
portfolio
Of
which
4,349,81 1,291,49 3,058,31 4,558,38 1,291,49 3,266,89
Total 100.00% 29.69% 100.00% 28.33%
1.46 6.94 4.52 6.94 6.94 0.00
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
account receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 3,058,314.52
Over 3 years 1,291,496.94
Over 5 years 1,291,496.94
Total 4,349,811.46
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the curent period
Category Opening balance Reversed or Closing balance
Accru Write-
collected Other
al off
amount
Accrual of bad debt provision by
1,291,496.94 1,291,496.94
portfolio
Total 1,291,496.94 1,291,496.94
(3) The actual write-off accounts receivable
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Amount Proportion(%) Bad debt provision
Chongqing Jianshe HANON Automobile Termal
2,159,685.72 49.65%
Management System Co., Ltd
Chongqing Yamaha Motorcycle Co., Ltd 757,124.97 17.41%
Wuhan Longchang Company Wujiao Market
473,539.96 10.89% 473,539.96
Department
China Aerospace Science and Technology
395,296.04 9.09% 395,296.04
Corporation long March Machinery Factory
Chongqing Chihai Machine Manufacturing Co.,Ltd 145,999.35 3.36% 145,999.35
Total 3,931,646.04 90.40%
97
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 1,534,570.26 1,345,740.08
Total 1,534,570.26 1,345,740.08
（1）Interest receivable
1) Category of interest receivable
2) Significant overdue interest
3）Bad-debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Dividend receivable
2) Significant dividend receivable aged over 1 year
3）Bad-debt provision
□ Applicable √ Not applicable
(3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash 138,305.51 51,589.42
Current account 7,078,762.07 6,976,647.98
Total 7,217,067.58 7,028,237.40
2）Provision for bad debts
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses
Bad Debt Reserves Expected credit loss Total
Expected credit losses for the entire duration
over life (no credit
over the next 12 months (credit impairment
impairment)
occurred)
98
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Balance as at January 1,
3,721,873.16 1,960,624.16 5,682,497.32
2023
Balance as at January 1,
2023 in current
Balance as at June 30,2023 3,721,873.16 1,960,624.16 5,682,497.32
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 1,534,570.26
2-3 years 1,223,146.45
Over 3 years 4,459,350.87
3-4 years 255,723.62
Over 5 years 4,203,627.25
Total 7,217,067.58
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Write-
Accrual collected Other
off
amount
Accrual single 1,960,624.16 1,960,624.16
Accrual
3,721,873.16 3,721,873.16
portfolio
Total 5,682,497.32 5,682,497.32
4) The actual write-off accounts receivable
5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Portion in total Bad debt provision
Name Nature Year-end balance Aging other of year-end
receivables(%) balance
Shenzhen Jianshe Motorcycle Current Over 5
3,013,664.00 41.76% 3,013,664.00
Co., Ltd. accounts years
Chongqing JiansheLijue Current 1,478,870.07 2-4 years 20.49% 1,478,870.07
Industrial Co., Ltd. accounts
Chongqing Jianshe Industry Current Within 1
791,875.14 10.97%
(Group) Co., Ltd. accounts year
Ningbo Jianshe Chongqing Current Over 5
692,035.31 9.59% 692,035.31
Office accounts years
Ningbo Jianshe Motorcycle Current Over 5
329,628.73 4.57% 329,628.73
Co., Ltd. accounts years
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Total 6,306,073.25 87.38% 5,514,198.11
6) Accounts receivable involved with government subsidies
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
3. Long-term equity investment
In RMB
Closing balance Opening balance
Provis Provis
Items ion for ion for
Book balance Book value Book balance Book value
impair impair
ment ment
Investments in
199,045,443.95 199,045,443.95 199,045,443.95 199,045,443.95
subsidiaries
Investments in
associates and 214,081,345.90 214,081,345.90 210,112,321.04 210,112,321.04
joint ventures
Total 413,126,789.85 413,126,789.85 409,157,764.99 409,157,764.99
（1） Investments in subsidiaries
In RMB
Increase /decrease
Withdra Closing
Opening Decre wn balance of
Investees Closing balance
balance Add ased impairm impairment
Other
investment invest ent provision
ment provisio
n
Chongqing Jianshe Automobile 160,000,000.0
160,000,000.00
A/C Co., Ltd. 0
Chongqing Pingshan TK
39,045,443.95 39,045,443.95
Carburetor Co., Ltd
199,045,443.9
Total 199,045,443.95
5
（2）Investments in associates and joint ventures
In RMB
Increases/decreases in the current year
Balance
Withdra Declara of
Openin Additi Other Change
Investe Decreas wn tion of Impair Closing provisi
g onal
e ed impair compre s in cash ment balance on for
Balance Other
investm investm ment hensive other dividen provisi impair
ent ent provisi income equity ds or on ment
on profits
1. Joint ventures
Jianshe 210,112 3,969,0 214,081
100
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
HANO ,321.04 24.86 ,345.90
N
Subtota 210,112 3,969,0 214,081
l ,321.04 24.86 ,345.90
2．Associates
210,112 3,969,0 214,081
Total
,321.04 24.86 ,345.90
（3） Other note
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Major business
148,167,978.93 149,841,973.33 121,003,695.74 125,811,724.28
turnover
Other business income 331,366.87 4,484,123.70 4,323,081.91
Total 148,499,345.80 149,841,973.33 125,487,819.44 130,134,806.19
Information related to performance obligations
According to the contract, the company delivers the goods to the agreed place or the third-party logistics company.
Each month, the customer issues a notice of account according to the actual consumption of the production. The
sales clerk issues an invoice according to the customer's notice of account, combined with the customer's
consumption, contract unit price, notice of account, etc. As the time point of control transfer, the sales revenue is
recognized. The credit period given by the company to customers is determined according to the credit risk of
customers, and there is no significant financing component.
Information related to the transaction price apportioned to the residual performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was 141,666.71 Yuan at the period-end, among which RMB141,666.71 Yuan was expected to
be recognized in 2023.
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income
3,969,024.86 4,372,958.10
calculated by equity method
Total 3,969,024.86 4,372,958.10
6.Other
XVIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □ Not applicable
In RMB
Items Amount Notes
101
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Financial Report 2023
Non-current asset disposal gain/loss -10,025.19
Government subsidy recognized in current gain and loss(excluding those closely
600,000.00
related to the Company’s business and granted under the state’s policies)
Switch back of provision for depreciation of account receivable and contractual
365,922.51
assets which were singly taken depreciation test
Operating income and expenses other than the aforesaid items
77,853.72
Other gains/losses in compliance with the definition of non-recurring gain/loss
210,385.63
Total 1,244,136.67 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
2. Rate of return on net assets and earnings per share
Earnings per share
Profit of the report period Net income on asset, weighted
Basic earnings per Diluted earnings per
share share
Net profit attributable to common
-48.16% -0.3628 -0.3628
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of non- -49.55% -0.3732 -0.3732
recurring gains/losses
3. Differences between accounting data under domestic and overseas accounting standards
（ 1 ） Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2） Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accountin
g standards. If the data that has been audited by an overseas audit institution is adjusted for differences, th
e name of the overseas institution should be indicated
4.Other
102
