Share’s code： 000550 Share’s Name： Jiangling Motors No.： 2024-004
200550 Jiangling B
Jiangling Motors Corporation, Ltd.
Public Announcement on Providing
Financial Assistance to a Holding Subsidiary
Jiangling Motors Corporation, Ltd. and its Board members undertake that the
information disclosed herein is truthful, accurate and complete and does not
contain any false statement, misrepresentation or major omission.
Important note:
1. Jiangling Motor Corporation., Ltd. (hereinafter referred to as “JMC” or the
"Company") intends to provide financial assistance in the form of borrowing to its
holding subsidiary Jiangling Ford Motor Technology (Shanghai) Co., Ltd.
(hereinafter referred to as "Jiangling Ford (Shanghai)") to meet the capital turnover
and daily operation needs of Jiangling Ford (Shanghai), the quota of which should
not exceed RMB 178.5 million. The fund usage fee shall be settled according to the
actual use of funds and the bank loan interest rate of the same period. The quota of
the financial assistance shall be valid from the date of approval at the shareholders’
meeting to December 31, 2026.
2. This financial assistance has been reviewed and approved at the paper Board meeting
of the Company held from January 10 to January 18, 2024. This financial assistance
is subject to approval by the shareholders’ meeting of the Company.
3. The object of this financial assistance is a holding subsidiary within the scope of the
Company's consolidated statements, over which the Company has substantial control
and influence. The Company is able to implement effective risk control on its
business and capital management, to ensure the safety of the Company’s funds. The
overall risk of this financial assistance is controllable, and this financial assistance
dose not hurt the interests of the Company and shareholders, especially minority
shareholders.
I. Brief Introduction of the Financial Assistance
The Board of Directors of the Company approved the Proposal on Providing Financial
Assistance to A Holding Subsidiary in form of paper meeting held from January 10 to
January 18, 2024, on which the Company agreed to provide financial assistance to
Jiangling Ford (Shanghai), a holding subsidiary of the Company, with its own funds in
the form of borrowing, to meet the cash-flow and daily operation needs of Jiangling
Ford (Shanghai). The quota of the financial assistance shall not exceed RMB 180
million, and the fund usage fee shall be settled according to the actual amount of the
used funds and the bank loan interest rate of the same period. The financial assistance
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quota shall be valid from the date of approval by the shareholders’ meeting to December
31, 2026.
The financial assistance will not affect the Company's normal business development
and use of funds, and does not belong to the situations, stipulated in the Rules
Governing Listing of Stock on Shenzhen Stock Exchange and the No. 1 of Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies - Standardized
Operation of Main Board Listed Companies, under which the financial assistances shall
not be provided.
When voting on the financial assistance, Director Shengpo Wu, Director Ryan
Anderson and Director Xiong Chunying withdrew from the voting, and all the other
Directors agreed with this proposal. Because the debt-to-asset ratio of Jiangling Ford
(Shanghai) exceeded 70 percent, according to the relevant regulations in the Rules
Governing Listing of Stock on Shenzhen Stock Exchange, the financial assistance is
subject to approval by the shareholders’ meeting of the Company.
II. Basic information of the funded subject
1. Basic information of Jiangling Ford (Shanghai)
Company Name: Jiangling Ford Motor Technology (Shanghai) Co., Ltd.
Legal representative: Anderson Liu
Registered capital: RMB 200 millions
Unify social credit code: 91310115MA7EX46E6U
Registered address: 33rd Floor, 211 Century Avenue, China (Shanghai) Pilot Free Trade
Zone
Established date: December 7, 2021
Enterprise Type: Engineering and technology research and experimental development,
sales of vehicles, new energy vehicles, auto parts, etc.
The Company has not provided financial assistance to Jiangling Ford (Shanghai), and
there were no cases where financial assistance was not repaid in time after maturity.
Jiangling Ford (Shanghai) has a good credit status and is not a person subject to
enforcement for trust-breaking.
Shareholding structure:
Shareholder Name Shareholding Percentage
Jiangling Motor Corporation, Ltd. 51%
Ford Motor Company 49%
Main financial data of Jiangling Ford (Shanghai)
Unit: RMB thousand
Item December 31, 2023 December 31, 2022
Assets 948,410.4 443,233.9
Liabilities 1,693,865.7 449,704.4
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Equity -745,455.3 -6,470.5
Total amount of - -
contingencies involved
Item Year 2023 Year 2022
Revenue 643.047.9 124,029.6
Net profit -838.984.8 -106,470.5
Note: the financial data for 2022 is audited, and the financial data for 2023 is unaudited.
III. Basic information and obligations of other shareholders of the funded subject
1. Basic information
Company Name: Ford Motor (China) Ltd.
Headquarter Location: Detroit, USA
Chairman: Bill Ford
Enterprise Type: a USA-based listed company
Business Scope: to design, manufacture, market, and service a full line of Ford cars,
trucks, sport utility vehicles (“SUVs”), electrified vehicles, and
Lincoln luxury vehicles, provide financial services through Ford
Motor Credit Company LLC.
The latest audited financial indexes of Ford Motor Company are as follows:
Unit: US$ million
Year 2022
Revenue 158,057
Net profit -1,981
December 31, 2022
Total assets 255,884
Total equity 43,167
After inquiry, Ford Motor Company is not a person subject to enforcement for trust-
breaking.
2. Obligations of other shareholders of the funded subject
Ford Motor Company, the minority shareholder of Jiangling Ford (Shanghai) and the
controlling shareholder of the Company, intends to provide financial assistance on the
same terms per the shareholding proportion.
IV The main contents of the financial assistance agreement
The Company intends to sign a borrowing agreement with Jiangling Ford (Shanghai),
the main terms of which are as follows:
1. Sponsor: Jiangling Motor Corporation, Ltd.
2. Funded subject: Jiangling Ford Motor Technology (Shanghai) Co., Ltd.
3. Borrowing amount: not exceed RMB 178.5 million
4. Borrowing term: the Date of approval by the shareholders’ meeting to December 31,
2026
5. Purpose of funds: to meet the cash-flow and daily operation needs of Jiangling Ford
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(Shanghai)
6. Borrowing rate: bank loan interest rate of the same period
7. Repayment method: repay the principal and interests at one time
8. Mortgage or guarantee: no mortgage or guarantee
The specific content is subject to the actual borrowing agreement.
V Risk analysis and risk control measures of financial assistance
The object of this financial assistance is a holding subsidiary within the scope of the
Company's consolidated statements, and the Company is able to implement effective
risk control over its business and cash management. After the approval of the
shareholders' meeting, the Company will sign a financial assistance agreement with
Jiangling Ford (Shanghai) and arrange the financial assistance according to the cash
needs of Jiangling Ford (Shanghai). In addition to providing financial assistance, the
Company will strengthen the daily operation management on the holding subsidiary,
pay close attention to its cash receipts and payments, assets and liabilities, and
strengthen the risk control of its finance and cash management to ensure the safety of
the Company's funds.
The above financial assistance amount accounts for a low proportion of the total assets
of the Company, and the overall risk is controllable, therefore, the financial assistance
will not damage the interests of the Company and all the shareholders, especially the
minority and medium shareholders, and will not have a significant impact on the daily
operation of the Company.
VI. Opinions from the Board of Directors
The Board of Directors of the Company agreed to provide the above-mentioned
financial assistance in order to further support the daily operation and business
development of the holding subsidiary and improve the profitability of the Company.
The object of this financial assistance is a holding subsidiary within the scope of the
Company's consolidated statements, and the financial risk is within the scope of the
Company's effective control, therefore, the Company providing financial assistance to
the subsidiary within the aforesaid quota and term will not damage the interests of the
Company and the shareholders.
VII. Cumulative amount of financial assistance provided and overdue amount
As of the disclosure date of the announcement, the Company has not provided external
financial assistance.
VIII. Documents for Reference
1. Resolutions of the Board of Directors of Jiangling Motors Corporation, Ltd.;
Board of Directors
Jiangling Motors Corporation, Ltd.
January 20, 2024
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