FAW JIEFANG GROUP CO., LTD.
Annual Report 2023
March 2024
Section I Important Notes, Contents and Definitions
The Board of Directors and Board of Supervisors, as well as directors, supervisors andsenior executives of the Company guarantee that the contents of the annual report are true,accurate and complete, there is no false record, misleading statement or major omission, andshall bear individual and joint legal responsibilities.Wu Bilei, the person in charge of the Company, Ji Yizhi, the person in charge ofaccounting, and Si Yuzhuo, the person in charge of the accounting organization (chiefaccountant) declare that they guarantee the authenticity, accuracy and completeness of thefinancial report in this annual report.Except for the following directors, other directors attended the board meeting to reviewthe annual report in person
| Names of Directors not Present in Person | Positions of Directors not Present in Person | Reasons for not Present in Person | Name of the Trustee |
| Wu Bilei | Chairman of the Board | Work | Li Sheng |
| Bi Wenquan | Director | Work | Liu Yanchang |
This annual report includes prospective statements, such as future plans, and does notconstitute a substantial commitment of the Company to investors. Investors and relevantpersons should maintain sufficient risk awareness of this and understand the differencesbetween plans, forecasts, and commitments.
The Company has described in detail the possible risks and countermeasures for itsfuture development in the section of Management Discussion and Analysis. Investors arekindly requested to pay attention to relevant contents. China Securities Journal, SecuritiesTimes and CNINFO (http://www.cninfo.com.cn) are the information disclosure media selectedby the Company. All information of the Company is subject to that published in the aboveselected media. Investors are kindly requested to pay attention to investment risks.The profit distribution plan approved by the Board of Directors of the Company is asfollows: Based on the 4,636,485,668 shares of the Company, a cash dividend of CNY 1.5 (taxinclusive) will be distributed to all shareholders for every 10 shares they hold. Additionally, nobonus shares (tax inclusive) will be distributed. The Company does not convert reserves intoshare capital.
Table of Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Company Profile and Main Financial Indicators ...... 6
Section III Management Discussion and Analysis ...... 16
Section IV Corporate Governance ...... 60
Section V Environmental and Social Responsibilities ...... 109
Section VI Important Matters ...... 124
Section VII Changes in Shares and Shareholders ...... 151
Section VIII Preferred Shares ...... 168
Section IX Bonds ...... 169
Section X Financial Report ...... 170
List of Documents for Future Reference
1. Financial statements signed and sealed by the person in charge of the Company,the person in charge of accounting and the person in charge of the accountingorganization (chief accountant).
2. The original Auditor’s Report sealed by Pan-China Certified Public AccountantsLLP and sealed and signed by Pan-China's CPAs
3. Originals of all company documents and announcements publicly disclosed onthe website designated by China Securities Regulatory Commission in the reportingperiod.
Interpretation
| Item | Refers to | Definition |
| Company, the Company, FAW Jiefang | Refers to | FAW JIEFANG GROUP CO., LTD |
| Jiefang Limited | Refers to | FAW Jiefang Automotive Co., Ltd. |
| FAW, FAW Group | Refers to | CHINA FAW GROUP CO., LTD. |
| FAW | Refers to | China FAW Co., Ltd. |
| FAW Car | Refers to | FAW Car Co., Ltd. |
| FAW Bestune | Refers to | FAW Bestune Car Co., Ltd. |
| Finance company | Refers to | First Automobile Finance Co., Ltd. |
| Board of Directors | Refers to | Board of Directors of FAW JIEFANG GROUP CO., LTD. |
| Shareholders’ meeting | Refers to | Shareholders’ Meeting of FAW JIEFANG GROUP CO., LTD. |
| Board of Supervisors | Refers to | Board of Supervisors of FAW JIEFANG GROUP CO., LTD. |
| SASAC | Refers to | State-owned Assets Supervision and Administration Commission of the State Council |
| Ministry of Finance | Refers to | Ministry of Finance of the People's Republic of China |
| CSRC | Refers to | China Securities Regulatory Commission |
| SZSE | Refers to | Shenzhen Stock Exchange |
| China Securities Depository and Clearing Corporation Limited (CSDC) | Refers to | Shenzhen Branch, China Securities Depository and Clearing Corporation Limited |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People's Republic of China |
| Articles of Association | Refers to | Articles of Association of FAW JIEFANG GROUP CO., LTD. |
| Reporting Period | Refers to | January 1, 2023-December 31, 2023 |
| CNY, CNY 10,000, CNY 100 million | Refers to | CNY, CNY 10,000, CNY 100 million |
Section II Company Profile and Main Financial Indicators
I. Company Information
| Stock abbreviation | FAW Jiefang | Stock code | 000800 |
| Stock exchanges on which shares are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | FAW JIEFANG GROUP CO., LTD | ||
| Chinese abbreviation of the Company | FAW Jiefang | ||
| English name of the Company | FAW JIEFANG GROUP CO., LTD | ||
| English abbreviation of the Company | FAW Jiefang | ||
| Legal representative of the Company | Wu Bilei | ||
| Registered address | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | ||
| Zip code of registered address | 130011 | ||
| History of changes in registered address of the Company | In 2020, the Company carried out major asset restructuring, and the registered address was changed from No. 4888 Weishan Road, High-tech Industrial Development Zone, Changchun City, Jilin Province to No. 2259 Dongfeng Street, Automobile Development Zone, Changchun City, Jilin Province. | ||
| Office address | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | ||
| Postal code of office address of the Company | 130011 | ||
| Company Website | www.fawjiefang.com.cn | ||
| faw0800@fawjiefang.com.cn | |||
II. Contact Person and Contact Information
| Secretary of the Board of Directors | Securities Affairs Representative | |
| Name | Wang Jianxun | Yang Yuxin |
| Address | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province |
| Tel. | 0431-80918881 0431-80918882 | 0431-80918881 0431-80918882 |
| Fax | 0431-80918883 | 0431-80918883 |
| faw0800@fawjiefang.com.cn | faw0800@fawjiefang.com.cn |
III. Information Disclosure and Keeping Location
| Website of the stock exchange disclosing annual report of the Company | http://www.szse.cn |
| Name and website of the media disclosing annual report of the Company | Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn) |
| Keeping location of the Annual Report of the Company | FAW Capital Operation Department |
IV. Changes in Registration
| Unified Social Credit Code | 91220101244976413E |
| Changes in main business since the company went public | In 2020, the Company completed major asset restructuring, and changed its main business from research, development, production, and sales of passenger cars to research, development, production, and sales of commercial vehicles. |
| Changes in controlling shareholders in the past | 1. In June 2011, FAW, the original controlling shareholder of the Company, carried out major business restructuring, and founded China FAW Co., Ltd. as the main sponsor in order to improve the corporate governance structure and establish a modern enterprise system. FAW transferred all its shares from the Company into FAW, and the two parties completed the equity registration and |
transfer procedures in April 2012. After the equity transfer, the totalshare capital of the Company did not change and remained at1,627,500,000 shares. FAW Car Co., Ltd. holds 862,983,689 sharesof the Company, accounting for 53.03% of the total shares, and isthe controlling shareholder of the Company. The actual controllerdoes not change and is still the SASAC.
2. In March 2020, the China Securities Regulatory Commissionapproved major asset restructuring project of the Company. TheCompany issued 2,982,166,212 shares directly to FAW to pay theprice difference for the major asset restructuring. After theissuance, the total share capital of the Company increased to4,609,666,212 shares. FAW Car Co., Ltd. holds 3,845,149,901shares of the Company, accounting for 83.41% of the total shares,and is the controlling shareholder of the Company. The Company'sactual controller is still SASAC.
V. Other Relevant DataAccounting firm hired by the Company
| Name of Accounting Firm | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Office address of the accounting firm | Scitech Place, No. 22 Jianguomenwai Avenue, Chaoyang District, Beijing, China |
| Name of the accountants | Wu Songlin, Yang Dongmin |
Sponsor institution employed by the Company to perform continuous supervision duties in thereporting period
□Applicable ?Not applicable
Financial consultant employed by the Company to perform continuous supervision duties in thereporting period
□Applicable ?Not applicable
VI. Main Accounting Data and Financial IndicatorsWhether the Company needs to retroactively adjust or restate the accounting data of previous years?Yes □NoReasons for the retroactive adjustment or restatement: Changes in accounting policies
| 2023 | 2022 | Increase or decrease compared to that of last year | 2021 | ||||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | |||
| Operating income (CNY) | 63,904,532,477.03 | 38,331,747,083.88 | 38,331,747,083.88 | 66.71% | 98,751,242,669.55 | 98,751,242,669.55 | |
| Net profit attributable to shareholders of the listed company (CNY) | 763,024,957.14 | 367,745,445.34 | 367,444,113.56 | 107.66% | 3,899,854,760.39 | 3,900,127,760.42 | |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses (CNY) | -83,315,836.30 | -1,714,242,885.11 | -1,714,544,216.89 | 95.14% | 3,581,266,777.71 | 3,581,539,777.74 | |
| Net cash flows from operating activities (CNY) | 4,201,717,721.52 | -5,135,243,969.35 | -5,135,243,969.35 | 181.82% | 15,203,123,279.16 | 15,203,123,279.16 | |
| Basic earnings per Share (CNY/share) | 0.1651 | 0.0735 | 0.0734 | 124.93% | 0.8412 | 0.8413 | |
| Diluted earnings per | 0.1651 | 0.0735 | 0.0734 | 124.93% | 0.8412 | 0.8413 | |
| Share (CNY/share) | ||||||
| Weighted average return on equity | 3.16% | 1.50% | 1.50% | Increased by 1.66% | 15.37% | 15.37% |
| End of 2023 | End of 2022 | Increase or decrease compared with that at the end of last year | End of 2021 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Total assets (CNY) | 65,873,387,927.31 | 56,772,860,616.12 | 56,792,504,497.01 | 15.99% | 69,765,943,932.81 | 69,792,186,974.11 |
| Net assets attributable to shareholders of the listed company (CNY) | 24,486,759,369.40 | 23,719,427,082.48 | 23,719,398,750.73 | 3.24% | 26,242,240,723.26 | 26,242,513,723.29 |
Causes of changes in accounting policies: In November 2022, the Ministry of Finance issued the Interpretation No. 16 of Accounting Standards forBusiness Enterprises (CK [2022] No. 31, hereinafter referred to as "Interpretation No.16"). Interpretation No.16 stipulates that for a single transactionthat is not a business combination and does not affect accounting profits or taxable income (or deductible losses) at the time of the transaction and thatthe initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences, suchtaxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities shall be recognized at thetime the transaction occurred as the corresponding deferred income tax liabilities and deferred income tax assets in accordance with relevant provisionssuch as the Accounting Standards for Business Enterprises No. 18 -Income Tax. The Company shall apply these provisions to transactions that occurredfrom the beginning of the earliest period of the financial statements for which the provisions are first applied until the Implementation Date of theInterpretation. The cumulative impact of these adjustments shall be used to adjust the opening retained earnings and other related financial statementitems for the earliest period in the presentation of financial statements. The above provisions on the accounting treatment have come into effect sinceJanuary 1, 2023.
The Company shall also adjust the taxable temporary difference and deductible temporary difference for lease liabilities and right-of-use assetsrecognized for the lease business in accordance with the provisions of Interpretation No. 16. Please see 34(1) in V "Significant Accounting Policies andAccounting Estimates" of Section X - Financial Report.
The lower net profit of the Company before or after the deduction of non-recurring profits and lossesin the last three fiscal years is negative, and the audit report of the most recent year shows that thegoing-concern ability of the Company is uncertain
□Yes ?No
The lower net profit before or after the deduction of non-recurring gains and losses is negative.?Yes □No
| Item | 2023 | 2022 | Remarks |
| Operating income (CNY) | 63,904,532,477.03 | 38,331,747,083.88 | Sales revenue of complete vehicles, parts and components, materials, and purchased semi-finished products, etc. |
| Deducted amount of operating income (CNY) | 11,310,091.46 | 30,729,859.27 | Rental income for the current period, rental income and entrusted operating income for the previous period |
| Amount after the deduction of operating income (CNY) | 63,893,222,385.57 | 38,301,017,224.61 | Deduct the rental income and entrusted operating income |
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to the international accounting standards and China accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to the international accounting standards and China accountingstandards.
2. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to foreign accounting standards and China accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to foreign accounting standards and China accounting standards.VIII. Seasonal Main Financial Indicators
Unit: CNY
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 14,037,665,296.82 | 18,976,996,617.31 | 15,108,308,697.92 | 15,781,561,864.98 |
| Net profit attributable to shareholders of the listed company | 61,785,210.95 | 339,551,091.40 | 11,070,373.79 | 350,618,281.00 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | -82,251,361.79 | 234,217,693.58 | -66,799,444.13 | -168,482,723.96 |
| Net cash flows from operating activities | 1,894,841,446.13 | 4,819,317,931.34 | 6,915,155,554.42 | -9,427,597,210.37 |
Is there any significant difference between the above financial indicators or the sum and the financialindicators in the quarterly and semi-annual financial reports disclosed by the Company?
□Yes ?No
IX. Items and Amounts of Non-recurring Profit and Loss?Applicable □Not applicable
Unit: CNY
| Item | Amount in 2023 | Amount in 2022 | Amount in 2021 | Description |
| Profits or losses on disposal of non-current assets (including the write-off part of the provision for impairment of assets made) | 192,669,498.68 | 871,031,108.06 | 458,484.79 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company’s normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 546,340,041.28 | 1,635,846,930.83 | 336,044,406.64 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 9,205,923.40 | 15,110,580.89 | 11,809,885.69 | It mainly refers to the reversal of impairment provision for receivables subject to separate impairment test. |
| Profits or losses from debt restructuring | 684,628.03 | Mainly the profits or losses from debt restructuring | ||
| Trustee fee earned from entrusted management | 864,779.87 | 471,698.11 | The trustee fee | |
| Non-operating income and expenses other than the above | 173,374,447.46 | 127,429,456.42 | 28,144,798.08 | They mainly refer to the net non-operating income and expenses |
| Other losses and profits conforming to the definition of non-recurring profit and loss | 100,996,378.33 | 117,055,384.99 | Other non-recurring profits and losses | |
| Less: amount affected by income tax | 176,245,495.71 | 568,294,525.62 | 176,081,303.65 | |
| Total | 846,340,793.44 | 2,081,988,330.45 | 318,587,982.68 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit andloss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit andloss for the Company.Explanation on defining the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items
□Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items.
Section III Management Discussion and AnalysisI. Industry of the Company in the Reporting PeriodThe Company shall meet the disclosure requirements for the automobile manufacturing industryspecified in the “No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision ofListed Companies - Industry Information Disclosure."In 2023, the macro-economy entered a phase of recovery, showing an upward trend, with anannual GDP growth rate of 5.2%. However, the transformation of economic drivers was exerting aweakened influence on the overall growth of the commercial vehicle industry, primarily due toreduced investment support and a negative export growth rate. The demand for commercial vehiclesexhibits significant cyclical fluctuations and is closely correlated with the macro-economy. Based onthe characteristics of the past industry demand and the product life cycle, these cyclical fluctuationsare expected to last for about 7-8 years. Consequently, the industry was recovering from the bottomof the cycle in 2023. Compared with 2022, the freight market has improved in 2023. Road cargotransportation volume rebounded slightly, up by 7.2% year on year. However, the profitability ofvehicle owners remained low due to the ongoing weakness in road transportation freight rates.Additionally, the demand for commercial vehicles was significantly suppressed due to obviouslyexcessive transportation capacity.According to statistics from the China Association of Automobile Manufacturers (CAAM), theproduction output and sales volume of commercial vehicles in 2023 were 4.037 million vehicles and
4.031 million vehicles, representing year-on-year growth rates of 26.8% and 22.1%, respectively.Among them, the annual demand for medium and heavy trucks reached 1.018 million vehicles, up by
32.5% year on year. FAW Jiefang achieved a sales volume of 205,000 medium and heavy trucks in2023, representing a year-on-year increase of 46.1%. The company also increased its industry marketshare to 20.1%, reflecting a year-on-year increase of 1.8%. FAW Jiefang's sales volume growthsignificantly outperformed the industry average.
Source of industry production and sales data in the figure: CAAMIn 2023, a pilot program for the overall electrification of vehicles in public transport wasformally launched. This program clarifies that scenarios such as urban public transport, sanitation,postal and express services, urban logistics distribution, and airports are the key areas of publictransport electrification, thus creating plenty of electrification substitution opportunities for theindustry. Moreover, the scope of industrial environmental classification has expanded from the ironand steel industry to include the cement and coking industry. Relevant policies explicitly require theuse of ultra-low emission vehicles, including China VI vehicles, clean energy vehicles, and new-energy vehicles, for material transportation. In certain scenarios, the use of new energy vehicles ismandatory. As a result of these national policies driving the use of new energy commercial vehiclesin specific scenarios, the sales volume of new energy commercial vehicles increased from 338,000vehicles in 2022 to 447,000 vehicles in 2023. FAW Jiefang experienced a significant increase in salesvolume, from 2,700 vehicles to 7,200 vehicles.
In 2023, there was explosive growth of natural gas heavy trucks due to reduced gas prices,improved gas filling convenience, and a stable gas supply. The industry's demand for natural gasheavy trucks increased from 37,000 vehicles in 2022 to 152,000 vehicles in 2023. Leveraging itscompetitive advantage, FAW Jiefang achieved significant growth in the sales volume of natural gasheavy trucks, from 12,000 vehicles in 2022 to 51,000 vehicles in 2023, making the largestcontribution to market growth.II. Main Businesses of the Company in the Reporting PeriodThe Company shall meet the disclosure requirements for the automobile manufacturing industry
Monthly Sales Volume of Commercial VehiclesJan.
| Jan. | Feb. | Mar. | Apr. | May. | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. | ||||||||
2021
| 2021 | 2022 | 2023 |
specified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision ofListed Companies - Industry Information Disclosure."The Company is a commercial vehicle manufacturer that produces heavy, medium and lighttrucks, and buses, as well as core components such as engines, transmissions and axles, and has acomplete manufacturing system covering raw materials, core components, key large assemblies andcomplete vehicles. The products of the Company are mainly used in market segments such astraction, cargo carrying, dumping, special purposes, highway passenger transport, bus passengertransport, etc., and the Company also provides standardized and customized commercial vehicleproducts. The Company is committed to becoming a "China's first and world-class" provider ofgreen and intelligent transportation solutions, focusing on the main production lines, insisting oninnovation-driven and reform-driven, and creating a leading trend. Main business, products, andbusiness model of the Company were not changed significantly in the reporting period.Relying on its five vehicle manufacturing bases, the Company has formed a capacity layout of"coordinated advancement of the main and auxiliary functions, with flexible complementaryroles."The Company's total annual production capacity amounts to 418,000 vehicles. Among them,the annual production capacity of each manufacturing base is as follows: Changchun, 153,000vehicles; Qingdao, 200,000 vehicles; Guanghan, 40,000 vehicles; Liuzhou, 20,000 vehicles andFoshan, 5,000 vehicles. In recent years, the Company has increased investment in technologicaltransformation continuously, accelerated the adjustment of production capacity structure, andimplemented continuous resource optimization and intelligent upgrading for high-end and newenergy products. It has formed a number of advanced manufacturing bases with industry-leadinglevels, and has obvious technical and capacity advantages in the commercial vehicle industry, layinga solid foundation to continue to lead the market.Manufacturing, production and operation of complete vehicle in the reporting period?Applicable □Not applicableProduction and sales of complete vehicles
| Production | Sales Qty | |||||
| This reporting period | Same Period of Last Year | Year-on-year Increase and Decrease | This Reporting Period | Same Period of Last Year | Year-on-year Increase and Decrease | |
| By vehicle type | ||||||
| Medium/Heavy | 214,256 | 123,011 | 74.18% | 205,162 | 140,384 | 46.14% |
| truck | ||||||
| Light-duty truck | 35,101 | 27,560 | 27.36% | 35,199 | 29,414 | 19.67% |
| Bus | 1,283 | 241 | 432.37% | 1,301 | 251 | 418.33% |
| Total | 250,640 | 150,812 | 66.19% | 241,662 | 170,049 | 42.11% |
Reasons for year-on-year change of more than 30%?Applicable □Not applicableIn the current context of recovering demand in the commercial vehicle market industry, theCompany continues to improve its product capabilities, strengthen its position in advantageousmarkets, actively expand overseas exports, and increase the sales volume of various types of vehicles.Construction of parts and components supporting systemIn terms of the construction of the parts and components supporting system, the Companycontinues to build the core competitiveness of the Jiefang supply chain. It focuses on understandingthe requirements of market customers and their demand for resources of various product lines, whilealso improving the construction of the resource platform. Currently, the Company independentlyproduces the three core assemblies of its main models, i.e. engine, transmission and axle. It alsofocuses on resource-oriented core parts and components in fields such as medium and heavy trucks,new energy vehicles, light vehicles, intelligent vehicle software and hardware, and intelligentconnected services. The Company actively participates in market-based competition by broadeningits resource access. It improves supplier relationship management and enhances collaborativecooperation with outstanding suppliers at home and abroad through various forms such as strategiccooperation and joint venture partnerships. Additionally, the Company ensures vehicle quality andreputation by controlling the purchase by implementing access evaluation of new suppliers,strengthening performance assessment and capability reviews of existing suppliers, and effectivelysupervising and controlling supplier processes, all while adhering to the principle of quality first.Production and operation of automobile parts and components in the reporting period
□Applicable ?Not applicable
Automobile finance business performed by the Company
□Applicable ?Not applicable
Business related to new energy vehicles performed by the Company?Applicable □Not applicableProduction and operation of complete new energy vehicles and parts & components
Unit: CNY
| Product category | Production Capacity | Production | Sales volume | Sales revenue |
| Commercial vehicles | 48,000 vehicles/year | 7,897 | 7,203 | 2,686,244,407.22 |
III. Analysis of Core CompetitivenessThe Company shall meet the disclosure requirements for the automobile manufacturing industryspecified in the "No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision ofListed Companies - Industry Information Disclosure."The Company adheres to the corporate vision of "being the most proud commercial vehicleenterprise and the most trustworthy commercial vehicle brand", the mission of "becoming China'sfirst and world-class provider of green and intelligent transportation solutions and building a moreprosperous society", and the brand concept of "being trustworthy, intelligent and courageous, andbenefiting the world"; takes products and services as the main task, customers and employees as thefoundation, innovation and reform as the driving force; focuses on industry trends and customerneeds, and improves product competitiveness and service level rapidly.
1. Product research and development: Four major fields: heavy, medium, and light trucks andpassenger vehicles, are covered. Heavy trucks include eight products: J7, J6P, J6V, J6E, Yingtu, JH6,JH5 and Han V2.0. Medium trucks include four products: J6G, J6L, JK6 and Long V. Light trucksinclude four products: LINKTOUR, Hu 6G, J6F and Hu V. Passenger vehicles include road vehicles,new energy buses, recreational vehicles, etc. New energy products cover all mainstream scenarios ofthe market segment. The Company has built a strong and complete independent R&D system inChina from foresight technology, engine, transmission and axle to complete vehicle, and formed anefficient and collaborative R&D team of more than 3,000 people. With its five core capabilities, theCompany has created five technical platforms encompassing low carbonization, informatization,intelligence, electrification and high quality, become one of the commercial vehicle enterprisesmastering the core technologies of world-class complete vehicles and three power assemblies, andpassed ISO9001, IATF16949 and GB9001B quality system certifications. It is also a national-levelindependent automobile product R&D and test certification base. In recent years, by accuratelygrasping the demands of the market segment, the Company has successfully built differentiatedproduct technology advantages such as traditional vehicle's system fuel saving, light weight,independent post processing and maintenance free, the leading product technology advantages such
as digital intelligent independent assembly of new energy vehicles, vehicle thermal management andvehicle energy management, and the pioneering product technology advantages such as smartdriving of intelligent connected vehicles, IoV big data and intelligent cockpit. Therefore, FAWJiefang always maintains an industry-leading position in the fierce market competition.
2. Marketing and procurement: Adhering to the customer value orientation, the Company hastaken the lead in establishing a marketing service system with complete functions. The marketingservice network of three sales companies (including Changchun Medium and Heavy-duty Vehicle,Qingdao Medium and Heavy-duty Vehicle and Light Trucks) composed of nearly 1,000 dealers,more than 1,800 service providers, more than 80 spare parts centers and more than 190 spare partsdealers covers more than 230 prefecture-level cities in China, with a coverage rate of 96.9% in citieswith a capacity of more than 1,000 vehicles. With a national average service radius of 48 kilometers,it is at the leading level in the industry and provides users with 24-hour efficient and high-qualityservices. The Company is committed to integrating global high-quality resources to provide a strongguarantee for the high reliability of Jiefang trucks. In recent years, the Company has becomestrategic partners with top enterprises at home and abroad successively, including Huawei, Knorr-Bremse, ZF, Shell, BOSCH, CATL, VOSS, China Unicom, and CATARC.
3. Production and manufacturing: The Company has the most complete manufacturingsystem in China from raw materials to core components, from key assemblies to complete vehicles,and its processing and manufacturing depth ranks the top in the industry. The Company has fivecomplete vehicle bases in Changchun, Qingdao, Guanghan, Liuzhou and Foshan, with an existingplanned production capacity of 418,000 vehicles. The Company also has three assembly bases inChangchun, Wuxi and Dalian. With its three product series, namely All-Win, Power-Win, and King-Win, the Wuxi Diesel Engine Factory has reached the world-class manufacturing level. Based on thebusiness such as commercial intelligent vehicles, post-market services, connected services, newenergy business model operations and fuel cell power systems, the Company has built six newbusiness bases in Suzhou, Nanjing, Tianjin, Shijiazhuang, Foshan and Wuxi.
4. Overseas export: The Company actively responds to the "Belt and Road" initiative,accelerates its presence in overseas markets, and creates new avenues of growth for its business. TheCompany accelerates the development of its commercial vehicle overseas business comprehensively,broadens the channels gradually and expands its brand's overseas influence continuously. Jiefang'sproducts are exported to over 80 countries and regions such as Southeast Asia, the Middle East, Latin
America, Africa and Eastern Europe, and the Company has more than 100 core dealers and nearly190 distributors in nearly 40 countries and regions around the world. Export products include modelssuch as J7, J6, JH6, and Hu V. Additionally, the Company leverages its system advantages based onreality, and through system collaboration, strives to build an overseas marketing platform of "talent+service+ automotive+ finance".
5. New energy: Its product portfolio covers five major lines: tractors, dump trucks, cargo trucks,SPVs and passenger cars. These product lines encompass three major technological routes: EVs,FCVs and hybrid vehicles, achieving full coverage of key segment markets for new energycommercial vehicles, such as steel mills, coal and slag. The goal of product development is to meetmarket demand and alleviate user pain points. It focuses on achieving the "three-low and one-high"core competitiveness, which refers to low cost, low self-weight, low energy consumption and highreliability. Additionally, the Company strives to differentiate its products through the attributes oflong endurance, low-temperature resistance, high intelligence, and high comfort. To achieve thesegoals, the Company undertakes continual iteration and upgrading of its products and technologies. Interms of core technology, the Company has achieved integration across three critical areas: vehiclearchitecture, vehicle control software, and assembly interface. This integration significantlyimproves development efficiency. The Company harnesses technologies such as efficient energyrecovery and scenario-based calibration to significantly reduce energy consumption. Moreover, theapplication of assembly technology incorporates a dual-wheel drive system that combinesindependent core assemblies with external high-quality social resources, enabling complementaryadvantages. By continuously exploring and applying new products, technologies and processes, theCompany aims to maintain a leading position in both new energy technology and new energyproducts in the market.IV. Analysis of Main Business
1. Overview
In 2023, although the demand for commercial vehicles bottomed out and rebounded, this periodrepresented the low point for this cycle compared to previous highs. Faced with sustained sluggishdemand, hardships in industry transformation and difficulties in market transition, all Jiefang staffdemonstrated their resilience by fearlessly confronting challenges and pushing forward under highpressure. They implemented various deployment requirements resolutely, focused on annual strategic
goals closely and advanced various tasks solidly and effectively, achieving satisfactory businessresults. As of December 31, 2023, the total assets of the Company reached CNY 65.873 billion, ayear-on-year increase of 15.99%. The net assets attributable to shareholders of the listed companyamounted to CNY 24.487 billion, representing a year-on-year increase of 3.24%. During the periodfrom January to December 2023, the Company generated a revenue of CNY 63.905 billion,representing a year-on-year increase of 66.71%; and achieved a net profit attributable to the parentcompany of CNY 763 million, reflecting a year-on-year increase of 107.66%. The Companyachieved sales of 241,700 vehicles, a year-on-year growth of 42.11%. Among these, 205,200medium and heavy trucks were sold, reflecting a year-on-year increase of 46.14%. The Companysold 7,200 new energy vehicles, indicating a year-on-year increase of 164.5%. Moreover, overseasexports reached 45,000 vehicles, showing a year-on-year increase of 60.7%.
Unit: CNY 100 million
In 2023, the Company successfully won the titles of "Creating a world-class professionalleading demonstration enterprise" and "Science and Technology Transformation Enterprise" by theSASAC and was nominated for the China Quality Award for the first time. It also maintained an Arating for information disclosure on the SZSE for three consecutive years. The Jiefang brand valuehas continued to lead the commercial vehicle industry for 12 consecutive years, while tractor salesmaintained their top position in the industry for 18 consecutive years.
In 2023, the Company's priorities are as follows:
| Total Assets | Net Assets | Operating Income | Net Profits |
2022
| 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
(1) Sales increase: Based in China, the Company has accelerated overseas expansion andmaintained its leading position in the market. The Company strengthened its strengths andtackled areas of weaknesses, accelerated breakthroughs in major strategic areas such as newenergy and overseas markets, and achieved balanced development in various segmentedmarkets, resulting in a significant increase in overall sales.Domestic market: The Company further implemented the concept of high-quality marketing,and in the face of severe market conditions, closely focused on terminal operations. It strategicallypositioned medium and heavy trucks to compete in markets such as NG tractors, high horsepowertractors, and large single-axle cargo trucks, with precise positioning and reasonable promotion. TheCompany strengthened customer development and engagement. It maintained a favorable reputationon the second-tier network and especially seized the opportunity of "oil to gas" explosive growth.The Company achieved a 33.6% market share in the NG segment and maintained its position as thetop tractor seller in the industry for 18 consecutive years. The sales terminal share of medium andheavy trucks was 26.3%, an increase of 0.6% year-on-year. The Company nurtured and improved itslight vehicle segment by implementing innovative marketing models and establishing a reputationfor high-end offerings. This resulted in annual sales of 35,000 vehicles, representing a year-on-yearincrease of 19.7%. The Company accelerated its strategic transformation towards new energy andlaunched a tough battle around five major scenarios: steel mills, power plants, slag mixing andsanitation, sand and gravel mines, fuel cells, and hybrid power. By focusing on these areas, theCompany achieved sales of 7,200 vehicles, marking a year-on-year increase of 164.5% and setting anew historical high.Overseas market: With deepening transformation as the main line, the Company continued towin four major battles, enhanced core capabilities, and accelerated the development of excellentoverseas iron army teams. By implementing a combination of strategies, the Company achievedsustained leapfrog growth in overseas sales and fully demonstrated the "Jiefang speed". Throughoutthe year, the Company sold 45,000 vehicles overseas, representing a year-on-year increase of 60.7%.The Company's products gained favor among overseas users, laying a solid foundation for it toaccelerate towards high-end products, an internationalized brand and global expansion.
(2) Product leadership: The Company has concentrated on the main line of productleadership and vigorously built robust product strength.
National VI products: Nearly 140 new products have been launched, with new product sales
accounting for over 60%, and product competitiveness has significantly improved. The J100 projectwas fully launched to complete the transformation into a solution provider. The Company continuedto carry out planning work for the J7 2026 product package and the development of the J167 product,aiming to create quasi-all-around products that could compete with international competitiveproducts and localized products. Seizing the opportunity presented by the rapid increase in demandfor high-end products in the Russian market, the Company planned to develop and introduce high-end products tailored to the differentiated requirements of users. By successfully entering the high-end traction segment market in Russia, the Company enhanced the Jiefang brand image in thecountry. The Company continued to enhance the competitiveness of light vehicles around "costreduction, quality improvement and performance enhancement". It launched new products such asLinkTour Lightweight and Hu6G. Additionally, the Company defined product package requirementsfor mini trucks and devised a robust product strategy to enter the pickup truck market, therebyaccelerating the expansion of its light vehicle product line.New energy products: The Company underwent a comprehensive transition to newarchitectures, which involved upgrading the driver's cab, motor, electronic control, etc., builtdifferentiated competitiveness in the "three-low and one-high" aspects of its products, and furtherreduced costs, weight and electricity consumption. Regarding charging products, the Companyintroduced nearly 60 upgraded products tailored to specific scenarios such as steel plant short barges,municipal works, and factory logistics. Among them, star products such as J6L ultra-lightweight,low-cost tractors and mixer trucks, and J6P slag dump trucks received widespread praise in themarket. More than 300 FCVs have been promoted in Tangshan, Shanghai, Chengdu and other places,serving as continuous demonstrations and leading the way. Furthermore, the Company announcedthe small-scale trial launch of hybrid products in user scenarios. More than 10 differentiated new carmodels were reserved simultaneously, further expanding the product lineup and enhancing thecompetitiveness of the Company's offerings.Intelligent IoV products: The J6V-L2 intelligent vehicle product underwent testing andoperation, with a cumulative operating mileage of 39,000 kilometers. The port ICV-L4 productcompleted line control debugging. In the environmental sanitation operation scenario, full coverageof expressways and main roads was achieved, with a cumulative operating mileage of 160,000kilometers. In respect of intelligent diagnosis and repair, core functions of remote regeneration andremote code clearing were developed and launched, serving users a total of 323,000 times. The new
energy IoV enabled the launch and operation of the Jiefangxing Lantu version APP. The digital keycompleted platform product development and functional adaptation on models such as J167. TheFOTA platform underwent system upgrades and completed pilot upgrades for over 5,000 vehicles.
(3) Technological innovation: Taking innovation as the primary driving force, theCompany has strengthened planning, implementation, technological breakthroughs, andresource investment, while adhering to the technology-leading strategy.The 2nd Science and Technology Conference was convened, refreshing the "13586" science andtechnology development plan and achieving 100% of the milestone of the "1025" Phase II Program.Throughout the year, the Company achieved breakthroughs in nearly a hundred industry-leading keycore technologies and maintained its position as the top-ranked company in the China CommercialVehicle Innovation Ranking for the seventh consecutive year. The Company has applied for over1,500 patents, including more than 1,200 invention patents. The Company has led/participated in thedevelopment of over 130 national, industry, and group standards, of which more than 20 standardswere led by the Company and more than 40 standards were successfully released in the same year.Traditional vehicle field: The Company has conquered the high compression ratio and fastcombustion technology in diesel engines, with a thermal efficiency exceeding 50.7%.The world'sfirst "ammonia-hydrogen fusion engine" was successfully ignited, reaching an internationally leadingtechnical level.
New energy vehicle field: The first domestically produced medium-sized electric drive bridgewith dual motors was industrially applied. The Starship China concept truck and the Starlightforward-looking FCV were released as a blockbuster, featuring breakthroughs in more than 30technologies such as wide temperature range sealing of fuel cell stacks, large flow injection ofhydrogen, and dual motor multi-mode control.
Intelligent IoV field: The official launch of the IPU brand marked the release of the world'sfirst IPU product, GD300. The "Star Chess" intelligent cockpit was the first to be launched in China,leading a new direction of intelligent experience for commercial vehicles. Significant breakthroughshave been made in more than 20 key core technologies, including high-speed L4 autonomous driving,low latency remote driving, and predictive intelligent diagnosis and repair.
(4) Digital and intelligent transformation: The Company has focused on improvingoperational efficiency through business-centric approaches and accelerating thetransformation process.
Centering on the "1143" digital transformation framework, the Company has focused onefficiency, benefits, quality and experience improvement. It has adhered to the principles of end-to-end process and business integration. The Company has comprehensively promoted the deepening ofbusiness design, optimization of 4A architecture, and construction of digital platforms. It has alsoenhanced digital capabilities such as big data, AI, independent development and network security,and continuously built a system to ensure capabilities in strategic operations, process operations,project operations, product operations, and other areas.
Business model innovation: The Company has deepened 8 digital products such as intelligentlocking and fleet management, and optimized and upgraded its network freight platform, resulting ina more than 50% improvement in system efficiency. In terms of digital project construction: TheCompany has built a digital system that covers the entire chain of research, production, supply, sales,and service of the Company. Over 30 systems, including CAD/CAE Phase II and new energy directsales platforms, have been constructed, and more than 20 system optimizations have been completed.The construction of big R&D and big marketing digital platforms have been coordinated and planned,significantly improving work efficiency in various fields.
Big data capacity building: The Company has accelerated the construction of datamanagement systems, deepened the application of data analysis, and promoted AI technologies suchas big models to empower business digital transformation. In terms of data governance, the Companyhas implemented a data management system and completed the sorting of L4/L5 assets for 100business objects in areas such as R&D and marketing. In respect of data analysis, nearly 20 projectsincluding IoV data governance and BOM change analysis were launched to support efficientbusiness decision-making. In terms of big models, the Company has created a "new energy policyinsight robot" that automatically crawls, processes and pushes policy data from over 40 websites,greatly enhancing information acquisition efficiency.
(5) Capital operation: The Company has strengthened compliance operation, attachedimportance to investment management, and actively planned capital operation.
The Company has conducted information disclosure efficiently and compliantly in strictaccordance with regulatory requirements for listed companies. A total of 175 announcements weredisclosed throughout the year. It has received an A rating for information disclosure from the SZSEfor three consecutive years. The Company has strengthened its investor relations management andorganized multi-level investor exchange activities, totaling 400 exchanges. The Company has
actively planned to launch a project to issue A-shares to specific targets, with a total plannedfundraising of no more than CNY 3.713 billion, to provide strong support for R&D in the new four-based (electrification, networking, intelligence and sharing) field. The Company has timely andcompliantly completed the unlocking, listing, repurchase and cancellation of over 300 related stocksin its equity incentive plan. The Company has enhanced the management of more than 10participating enterprises and achieved a total investment income of CNY 348 million throughout theyear. It has proactively promoted equity investment projects, offering robust support for the swiftimplementation of the Company's strategies in new energy, IoV, autonomous driving and aftermarket.
2. Revenues and costs
(1) Composition of operating income
Unit: CNY
| 2023 | 2022 | Year-on-year Increase and Decrease | |||
| Amount | Proportion in Operating Income | Amount | Proportion in Operating Income | ||
| Total operating income | 63,904,532,477.03 | 100% | 38,331,747,083.88 | 100% | 66.71% |
| By industries | |||||
| Automobile industry | 63,904,532,477.03 | 100.00% | 38,331,747,083.88 | 100.00% | 66.71% |
| By products | |||||
| Commercial vehicles | 58,781,305,472.90 | 91.98% | 33,483,232,308.59 | 87.35% | 75.55% |
| Spare parts and others | 5,123,227,004.13 | 8.02% | 4,848,514,775.29 | 12.65% | 5.67% |
| By regions | |||||
| Northeast China, North China, Northwest China and Southwest China | 35,412,537,135.12 | 55.41% | 19,888,808,283.34 | 51.89% | 78.05% |
| East China, South China and Central China | 28,491,995,341.91 | 44.59% | 18,442,938,800.54 | 48.11% | 54.49% |
(2) Information about industries, products, regions and sales model accounting for more than10% of the Company's operating income or operating profit?Applicable □Not applicableUnit: CNY
| Operating Income | Operating Costs | Gross Profit Rate | Increase/Decrease of Operating Income over the Same Period of Last Year | Increase/Decrease of Operating Cost over the Same Period of Last Year | Increase/Decrease of Gross Profit Rate over the Same Period of Last Year | |
| By industries | ||||||
| Automobile industry | 61,967,850,165.95 | 57,133,830,184.15 | 7.80% | 70.98% | 70.00% | Increased by 0.53% |
| By products | ||||||
| Commercial vehicles | 58,781,245,667.94 | 54,332,060,946.48 | 7.57% | 75.55% | 74.06% | Increased by 0.79% |
| Spare parts and others | 3,186,604,498.01 | 2,801,769,237.67 | 12.08% | 15.49% | 17.03% | Reduced by 1.15% |
| By regions | ||||||
| Northeast China, North China, Northwest China and Southwest China | 34,339,329,467.34 | 31,705,921,159.18 | 7.67% | 82.61% | 78.98% | Increased by 1.87% |
| East China, South China and Central China | 27,628,520,698.61 | 25,427,909,024.97 | 7.96% | 58.44% | 59.98% | Reduced by 0.89% |
The main business data of the Company adjusted at the end of the latest reporting period if thestatistical caliber of the Company's main business data is adjusted in the last year
□Applicable ?Not applicable
(3) Whether physical sales revenue of the Company is greater than the labor service revenue?Yes □No
| Industry classification | Item | Unit | 2023 | 2022 | Year-on-year Increase and Decrease |
| Automobile industry | Sales Qty | Vehicle | 241,662 | 170,049 | 42.11% |
| Production output | Vehicle | 250,640 | 150,812 | 66.19% | |
| Storage amount | Vehicle | 22,126 | 13,235 | 67.18% |
Reasons for the year-on-year change of relevant data by more than 30%?Applicable □Not applicable
In the current context of recovering demand in the commercial vehicle market industry, theCompany continues to improve its product capabilities, strengthen its position in advantageousmarkets, actively expand overseas exports, and increase the sales volume of various types of vehicles.
(4) Performance of major sales contracts and major procurement contracts signed by theCompany as of the reporting period
□Applicable ?Not applicable
(5) Composition of operating cost
Industry and product classificationUnit: CNY
| Industry classification | Item | 2023 | 2022 | Year-on-year increase and decrease | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
| Automobile industry | Material cost | 53,650,304,272.56 | 91.51% | 31,126,255,860.34 | 88.30% | 72.36% |
| Others | 4,979,331,438.99 | 8.49% | 4,125,915,026.19 | 11.70% | 20.68% | |
Unit: CNY
| Product Classification | Item | 2023 | 2022 | Year-on-year Increase and Decrease | ||
| Amount | Proportion in Operating Cost | Amount | Proportion in Operating Cost | |||
| Commercial vehicles | Commercial vehicles | 54,332,060,946.48 | 92.67% | 31,214,534,982.58 | 88.55% | 74.06% |
| Spare parts and others | Spare parts and others | 4,297,574,765.07 | 7.33% | 4,037,635,903.95 | 11.45% | 6.44% |
Note: None
(6) Whether the consolidation scope is changed in the reporting period?Yes □NoThe Company established a new subsidiary, FAW Jiefang UNI-D (Tianjin) Technology Co., Ltd., onApril 14, 2023.
(7) Significant changes or adjustments in business, products or services of the Company in thereporting period
□Applicable ?Not applicable
(8) Information about main customers and main suppliers
Information about main customers of the Company
| Total sales amount of the top five customers (CNY) | 20,306,447,061.24 |
| Proportion of total sales amount of the top five customers in total annual sales amount | 31.78% |
| Proportion of sales of related parties in total annual sales of the top five customers | 22.39% |
Information about the top 5 customers of the Company
| S/N | Customer name | Sales (CNY) | Proportion in Total Annual |
| Sales | |||
| 1 | CHINA FAW GROUP CO., LTD. | 11,861,365,832.71 | 18.56% |
| 2 | Customer 1 | 2,736,305,708.02 | 4.28% |
| 3 | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 2,446,872,744.97 | 3.83% |
| 4 | Customer 2 | 1,903,418,018.14 | 2.98% |
| 5 | Customer 3 | 1,358,484,757.40 | 2.13% |
| Total | -- | 20,306,447,061.24 | 31.78% |
Other information about main customers
□Applicable ?Not applicable
Information about main suppliers of the Company
| Total purchase amount of the top five suppliers (CNY) | 17,320,145,386.31 |
| Proportion of total purchase amount of the top five suppliers in total annual purchase amount | 28.73% |
| Proportion of the purchase amount of related parties in the total annual purchase amount of the top five suppliers | 7.38% |
Information about the top 5 suppliers of the Company
| S/N | Name of Supplier | Purchase Amount (CNY) | Proportion in Total Annual Purchase Amount |
| 1 | Supplier 1 | 10,924,862,616.15 | 18.12% |
| 2 | CHINA FAW GROUP CO., LTD. | 2,791,804,801.30 | 4.63% |
| 3 | Fawer Auto Parts Co., Ltd. | 1,659,607,907.68 | 2.75% |
| 4 | Supplier 2 | 980,210,553.71 | 1.63% |
| 5 | Supplier 3 | 963,659,507.47 | 1.60% |
| Total | -- | 17,320,145,386.31 | 28.73% |
Other information about main suppliers
□Applicable ?Not applicable
3. Cost
Unit: CNY
| 2023 | 2022 | Year-on-year Increase and Decrease | Description of Major Changes | |
| Sales expenses | 1,605,495,233.98 | 1,255,882,221.64 | 27.84% | |
| Administrative expenses | 1,931,279,477.64 | 2,040,339,354.62 | -5.35% | |
| Financial expenses | -915,389,862.57 | -1,052,600,813.17 | -13.04% | |
| R&D expenses | 2,982,257,879.16 | 2,895,655,097.73 | 2.99% |
4. R&D investment
?Applicable □Not applicable
| Name of Main R&D Projects | Project purpose | Project progress | Proposed Objectives | Expected Impact on the Company's Future Development |
| J7 series expanded models development project | Follow the "domestic first-class and world-class" enterprise development strategy, and develop domestic high-end benchmark heavy trucks independently to achieve a new level of domestic truck quality. | Development phase | Maintain the high-end positioning of products, pursue excellent quality, and improve product quality continuously in the efficient long-distance trunk express market, create greater value for users, expand the market capacity of high-end vehicle products year by year, realize double sales volume, and lead the industry development. | Support Jiefang's strategy of developing a "domestic first-class and world-class" enterprise, and contribute hard-core products to the product layout during the 14th Five-Year Plan period. |
| JH6 series expanded models development project | In the current situation where JH6 products have been on the market for eight years, it is urgent to upgrade the JH6 platform to ensure the leading competitivenes | Planning stage | Maintain the mid-to-high-end positioning of products in the six core markets such as general freight, express freight, green transport and urban construction muck, strengthen the advantages of highway vehicles in the mid-to-high-end market and renew the brand image of engineering vehicles by | Enhance the competitiveness of Jiefang's medium and heavy vehicle product line and major products, and contribute hard-core products to the product layout in the 14th Five-Year Plan period. |
| s of the Jiefang brand. | optimizing the complete vehicle reliability, comfort and TCO. | |||
| Light truck | Continuously improve the high-end attributes of Jiefang Light Truck and develop a new energy exclusive platform | Planning stage | Complete the development of a new energy exclusive platform in urban logistics, medium and short-distance transportation and other relevant markets, which covers both pure electric and hybrid routes, aiming to create an ultimate driving and riding experience while achieving an industry-leading electricity consumption level. | Lay the foundation for the overall realization of new energy transformation of Jiefang and assist in completing the 14th Five-Year Development Plan. |
| Fuel Cell Product Development Project | Develop fuel cell products, cover all the three major technical routes, meet the requirements of demonstration operation subsidies, and support the increase of new energy products. | Development phase | Cover typical scenarios of the three demonstration city clusters of fuel cells, develop a whole series of products such as fuel-electric traction, fuel-electric dump, special fuel-electric and fuel-electric logistics, and apply for demonstration operation projects together with mainstream fuel-electric system partners to realize the batch sales and operation of fuel-electric products. | Complete the layout of three major technical routes, reserve the fuel cell products development technology, support the research and development of independent fuel cell products, build a benchmark image for the new energy industry, and support Jiefang to lead the new energy industry continuously. |
| Jiefang intelligent driving product development project | Develop aided driving and restricted-region high-level intelligent driving commercial vehicle products based on customer needs, so as to help Jiefang realize the commercialization of the intelligent | Development phase | Develop intelligent vehicle series products, realize aided driving in trunk logistics scenarios and high-level intelligent driving in multiple restricted-region scenarios such as ports and sanitation, and develop full-stack intelligent driving software and hardware core technologies by itself to create independent core competitiveness. | Through the commercial operation of emerging industries in multiple scenarios, the Company's independent R&D capability and competitiveness in the intelligent driving field are improving continuously. The rapid accumulation of operational experience supports the Company's strategic transformation to become "China's first |
| vehicle industry in a short period. | and world-class" provider of green intelligent transportation solutions. | |||
| Jiefangxing APP IoV platform development project | The project is implemented to realize networking of the Company's off-line vehicles, so as to meet the regulatory requirements for monitoring and provide customers with remote functions or services such as remote vehicle control, intelligent diagnosis and repair, OTA upgrade, etc. In addition, IoV big data can be realized in the fields of research, production, marketing and service based on millions of connected vehicles, so as to support the layout of the Company in ecological services. | Iterative operation phase | The full-stack self-developed IoV platform series products cover three major sub-platforms, i.e. vehicle terminal, mobile terminal and cloud terminal, realize the digitalization of vehicle operation information at the vehicle terminal, and enable vehicle-cloud connection based on self-developed Tbox products. At the mobile terminal, the Company optimizes and iterates the mobile phone Jiefangxing APP continuously, and builds the exclusive in-vehicle OS for Jiefang commercial vehicles independently to enhance user experience. At the cloud terminal, it optimizes the IoV cloud platform continuously to improve stability, security and concurrency. The Company creates the first IoV brand in the commercial vehicle industry through the construction at vehicle terminal, mobile terminal and cloud terminal. | With continuous product iteration and service optimization of the IoV project, the achievements will improve the digital, networking and intelligent experience of Jiefang's commercial vehicle users significantly, solve user complaints, enhance product competitiveness and reduce service costs. They will also help the Company to lay out the field of commercial vehicle ecology, promote the digital transformation of products and services, and enter the commercial cycle of data-driven iteration. |
| Upgraded transmission product development project | Develop transmission products complying with noise regulations and | Development phase | Complete the development of drive axle and AMT products and improve the comprehensive competitiveness of assembly products. | Provide competitive drive axle and AMT transmission products for Jiefang's vehicle platform, improve the competitiveness of |
| fuel consumption regulations to improve the competitiveness of complete vehicles. | vehicle products, and support Jiefang to lead the industry continuously. | |||
| Research on 55% thermal efficiency power system technology of diesel engine | Break through 55% thermal efficiency technology of diesel engine. | Research phase | Break through high compression ratio fast dual-zone combustion system and other technologies to challenge the 55% thermal efficiency of commercial vehicle diesel engines. | Improve the effective thermal efficiency of diesel engines, achieve the goal of product low carbonization, and reserve technologies for complying with the fuel consumption regulations in the next stage. |
| Fuel cell system integration technology development | Break through the integration and control technology of commercial vehicle fuel cell system. | Research phase | Reach the system power of 100 kW. | Build the technical competitiveness of the Company's first-class fuel cell products and fill the technical gap of the independent fuel cell system. |
Information about R&D personnel of the Company
| 2023 | 2022 | Change ratio | |
| Number of R&D personnel (person) | 3,151 | 2,904 | 8.51% |
| Proportion of R&D personnel | 15.75% | 14.27% | 1.48% |
| Educational background structure of R&D personnel | |||
| Bachelor's degree | 2,059 | 1,907 | 7.97% |
| Master's degree | 1,027 | 943 | 8.91% |
| Doctor's degree | 49 | 36 | 36.11% |
| Junior college degree | 16 | 18 | -11.11% |
| Age structure of R&D personnel | |||
| Under 30 years old | 1,171 | 1,065 | 9.95% |
| 30-40 years old | 1,299 | 1,159 | 12.08% |
| 41-50 years old | 483 | 465 | 3.87% |
| 51-60 years old | 198 | 215 | -7.91% |
Information about R&D investment of the Company
| 2023 | 2022 | Change ratio | |
| Amount of R&D Investment (CNY) | 3,104,963,079.11 | 2,895,655,097.73 | 7.23% |
| Proportion of R&D Investment in Operation Income | 4.86% | 7.55% | -2.69% |
| Capitalization amount of R&D investment (CNY) | 122,705,199.95 | 0.00 | - |
| Proportion of capitalized R&D investment in total R&D investment | 3.95% | 0.00% | 3.95% |
Reasons and influence of major changes in the composition of the R&D personnel
□Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating incomecompared with the previous year
□Applicable ?Not applicable
Reasons for and the rationality of great change in the capitalization rate of R&D investment
□Applicable ?Not applicable
5. Cash flow
Unit: CNY
| Item | 2023 | 2022 | Year-on-year Increase and Decrease |
| Subtotal of cash inflows from operating activities | 62,308,904,099.97 | 44,778,021,694.80 | 39.15% |
| Subtotal of cash outflows from operating activities | 58,107,186,378.45 | 49,913,265,664.15 | 16.42% |
| Net cash flows from operating activities | 4,201,717,721.52 | -5,135,243,969.35 | 181.82% |
| Subtotal of cash inflows from | 404,944,067.84 | 1,715,798,644.98 | -76.40% |
| investment activities | |||
| Subtotal of cash outflows from investment activities | 2,798,293,719.39 | 3,345,556,203.30 | -16.36% |
| Net cash flows from investment activities | -2,393,349,651.55 | -1,629,757,558.32 | -46.85% |
| Subtotal of cash outflows from financing activities | 22,968,693.24 | 3,080,358,351.01 | -99.25% |
| Net cash flows from financing activities | -22,968,693.24 | -3,080,358,351.01 | 99.25% |
| Net increase in cash and cash equivalents | 1,786,174,827.41 | -9,845,007,165.71 | 118.14% |
Description on main factors influencing major changes in relevant data on a year-on-year basis?Applicable □Not applicable
(1) "Subtotal of cash inflows from operating activities" of this year increased by 39.15% comparedwith the previous year, which is mainly due to the recovery of demand in the commercial vehiclemarket, competition for overseas exports, increased sales of various vehicle models, and increasedsales receipts.
(2) "Net cash flows from operating activities" increased by 181.82% compared to the previous year,mainly due to the recovery of demand in the commercial vehicle market, competition for overseasexports, increased sales of various vehicle models, and increased sales receipts.
(3) "Subtotal of cash inflows from investment activities "of this year decreased by 76.40% comparedwith the previous year, mainly due to the adjustment of interest income and the decrease in cashreceived from the disposal of long-term assets.
(4) "Net cash flows from investment activities "of this year decreased by 46.85% compared to theprevious year, mainly due to the adjustment of interest income and the decrease in cash receivedfrom the disposal of long-term assets.
(5) "Subtotal of cash outflows from financing activities" of this year decreased by 99.25% comparedwith the previous year, mainly due to undistributed cash dividends for the year.
(6) "Net cash flows from financing activities "of this year increased by 99.25% compared with theprevious year, mainly due to undistributed cash dividends for the year.
(7) "Net increase in cash and cash equivalents" of this year increased by 118.14% compared to theprevious year, mainly due to the recovery of demand in the commercial vehicle market, increasedsales of various vehicle models, increased sales receipts, and increased net operating flow.Description on reasons for the significant difference between the net cash flows generated from theoperating activities in the reporting period and the net profit of this year?Applicable □Not applicableRefer to Section X - "Financial Report VII", Notes to Items in Consolidated Financial Statementsand Section 58 "Supplementary Information to Cash Flow Statement" for details.V. Analysis of Non-main Business
□Applicable ?Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
| End of 2023 | Early 2023 | Increase/Decrease in Proportion | Description of Major Changes | |||
| Amount | Proportion in Total Assets | Amount | Proportion in Total Assets | |||
| Monetary capital | 22,920,710,903.12 | 34.80% | 21,041,473,417.71 | 37.05% | -2.25% | |
| Accounts receivable | 1,989,386,169.77 | 3.02% | 867,090,338.42 | 1.53% | 1.49% | |
| Contract assets | 17,582,856.82 | 0.03% | 11,129,624.75 | 0.02% | 0.01% | |
| Inventories | 9,210,971,356.15 | 13.98% | 6,382,739,897.83 | 11.24% | 2.74% | |
| Investment properties | 47,049,995.53 | 0.07% | 80,647,597.48 | 0.14% | -0.07% | |
| Long-term equity investments | 5,469,591,970.26 | 8.30% | 4,692,648,635.84 | 8.26% | 0.04% | |
| Fixed | 11,380,286,165.58 | 17.28% | 9,612,922,810.28 | 16.93% | 0.35% | |
| assets | ||||||
| Project under construction | 816,484,299.18 | 1.24% | 1,902,143,354.11 | 3.35% | -2.11% | |
| Right-of-use assets | 138,989,886.70 | 0.21% | 198,220,342.59 | 0.35% | -0.14% | |
| Contract liabilities | 2,204,692,602.77 | 3.35% | 1,629,524,704.35 | 2.87% | 0.48% | |
| Lease liabilities | 30,494,014.13 | 0.05% | 54,814,603.06 | 0.10% | -0.05% |
High proportion of overseas assets
□Applicable ?Not applicable
2. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: CNY
| Item | Beginning balance | Profits and losses from changes in fair value for the current period | Accumulated changes in fair value through equity | Provision for impairment in the current period | Purchase amount in the current period | Sales amount in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Investment in other equity instruments | 480,780,000.00 | 480,780,000.00 | ||||||
| Total | 480,780,000.00 | 480,780,000.00 | ||||||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changes: noneWhether the measurement attribution of the Company's main assets within the Reporting Period wassignificantly changed or not
□Yes ?No
3. Restrictions on asset rights as of the end of the reporting periodFor details, please refer to Note 21"Assets with restricted ownership or use right" in Part VII "Notesto Items in Consolidated Financial Statements" of Section X - Financial Report.VII. Investment Analysis
1. Overall situation
?Applicable □Not applicable
| Investment Amount in the Reporting Period (CNY) | Investment Amount in the Same Period of Previous Year (CNY) | Variation range |
| 725,139,697.94 | 516,780,000.00 | 40.32% |
2. Major equity investments acquired in the reporting period
?Applicable □Not applicable
Unit: CNY
| Name of Investee Company | Main business | Investment method | Investment amount | Share proportion | Capital source | Partners | Investment horizon | Product type | Progress as of Balance Sheet Date | Estimated Revenue | Profit and Loss of Investment in the Current Period | Involved in Litigation or not | Date of Disclosure | Disclosure Index |
| Changchun Automotive Test Center Co., Ltd. | Automobile testing services, etc. | Capital increase | 670,872,897.94 | 14.63% | Own Funds | CHINA FAW GROUP CO., LTD. | Long-term | Testing services | Delivery completed | —— | 29,796,896.33 | No | December 16, 2022 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| Total | -- | -- | 670,872,897.94 | -- | -- | -- | -- | -- | -- | 0.00 | 29,796,896.33 | -- | -- | -- |
3. Major non-equity investments in progress in the reporting period
□Applicable ?Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable ?Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable ?Not applicable
The Company has no derivative investment in the reporting period.
5. Use of raised funds
□Applicable ?Not applicable
The Company does not use raised funds in the reporting period.VIII. Sale of Major Assets and Equity
1. Sale of major assets
?Applicable □Not applicable
| Counterparty | Assets Sold | Date of Sale | Transaction Price (CNY 10,000) | Net Profit Contributed by the Asset to the Listed Company from the Beginning of the Current Period to the Date of Sale (CNY 10,000) | Effect of Sale on the Company | Proportion of Net Profit Contributed by Asset Sales to the Listed Company in the Total Net Profit | Pricing Principle of Asset Sale | Related Party Transaction or Not | Relationship with the Counterparty | Whether All Property Rights of the Assets Involved Have been Transferred | Whether All Credits and Debts Involved Have been Transferred | Whether Implemented as Scheduled. If Not, Provide the Reasons and the Measures Taken by the Company | Date of Disclosure | Disclosure Index |
| Mashan Sub-district Office, Binhu District, Wuxi City | The house and land at No. 31, Mawei Bridge 7, Mashan Sub-district Office, Binhu District, Wuxi, with a floor area of 39,148.58 | December 28, 2023 | 24,363.46 | 17,717.94 | This reserve and consolidation will not affect the normal operation of the Company and will be conducive to optimizing the asset structure, revitalizing the stock | 23.22% | Asset appraisal pricing | No | N/A | Yes | No | Implemented as planned | August 31, 2023 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| square meters | assets, increasing the working capital, focusing on its own core business, improving the operation and management efficiency, meeting the needs of overall development strategy, and having a positive impact on the financial condition of the Company. |
2. Sale of major equity
□Applicable ?Not applicable
IX. Analysis on main holding and joint-stock companies?Applicable □Not applicableMajor subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY 10,000
| Company Name | Company Type | Main business | Registered Capital | Total Assets | Net Assets | Operating Income | Operating Profit | Net Profit |
| FAW Jiefang Automotive Co., Ltd. | Subsidiaries | Development, manufacturing and sales of vehicles and parts | 1,080,301.25 | 6,119,806.08 | 1,990,539.44 | 6,390,453.25 | -7,979.29 | 44,143.78 |
| First Automobile Finance Co., Ltd. | Joint-stock companies | Handling of financial business within the Group and other financial businesses approved by the People's Bank of China | 1,000,000.00 | 17,404,165.76 | 2,109,616.64 | 665,435.99 | 263,159.83 | 178,629.31 |
Acquisition and disposal of subsidiaries in the reporting period
□Applicable ?Not applicable
Description of main holding and joint-stock companies: none
X. Structured Entities Controlled by the Company
□Applicable ?Not applicable
XI. Outlook for Future Development of the Company
1. Competition pattern and development trend of the Company's industryIn the next three years, the commercial vehicle industry, especially medium and heavy trucks,will enter a period of deep adjustment, which will bring many unprecedented changes. The maincharacteristics are maintaining low demand, adjusting product structure, and intensifying stockcompetition.The macro-economy is moving towards a stage of high-quality development, with an expectedGDP growth rate of around 5%. The slowdown in economic growth will lead to low demand formedium and heavy trucks. Real estate investment is expected to remain sluggish, with limited growthin traditional infrastructure investment, low demand for transportation capacity in new infrastructure,and sluggish demand for engineering transport vehicles. However, at the same time, there will be anincrease in consumer-driven demand for road vehicles, effectively driving the increase in demand fortraction and freight vehicles, which is also an advantageous area of FAW Jiefang. Overall, industrydemand will remain low and difficult to recover to the high demand level during the 13th Five-YearPlan period.
The demand structure of medium and heavy trucks is facing deep adjustment. In the future,natural gas vehicles will continue to maintain high sales due to stable gas prices and an increase inthe "fuel-to-gas price ratio", resulting in their continued TCO advantage over traditional fuel vehicles.The significant trends in the industry include the adoption of high horsepower and AMT technology.Furthermore, there is an increasing demand for new energy vehicles, intelligent connectivity, andcomprehensive solutions. Although the growth momentum of export demand has slowed down, itwill remain at a high level. China will continue to promote a higher level of opening up to the outsideworld, optimize its international market layout, and improve its overseas service system. Exportdemand will still have a certain potential.
Stock competition is the main tone of future market competition, and the competition betweenenterprises will be further intensified. The battle for the status of traditional domestic OEMs isbecoming more intense; international leading enterprises launch domestically produced products to
lower the ceiling of domestic high-end products; new forces leverage capital to explore new modelsand expand new markets in the new energy and intelligent vehicle tracks, seeking to overtaketraditional enterprises on bends. In the future, it is expected that the concentration of the top 5 in themedium and heavy trucks industry will further increase.Based on the environment described above, FAW Jiefang will rely on its existing industryposition to expand its leading advantages in products, marketing, technology and other aspects, andcontinue to make efforts overseas, new energy and other business sectors to ensure its position as aleading enterprise in the medium and heavy truck market.
2. Development strategy and business plan of the Company
In 2024, the Company will comprehensively and thoroughly study and implement the guidingprinciples of the 20th CPC National Congress, continuously implement the guiding principles of theimportant speech made by General Secretary Xi Jinping at the time of inspecting FAW, andunswervingly uphold and strengthen the leadership of the Party. With a focus on high-qualitydevelopment, the Company will be committed to thoroughly implementing its strategy and annualkey requirements. It will adhere to the overarching concept of "creating a leading brand, focusing onthe leading mainline, adhering to innovation and reform drive, winning the four tough battles, andcarrying out the seven key tasks". Throughout the year, the Company will diligently undertakevarious tasks related to production and operation. By gathering momentum for leading, bravelycrossing the peak, gathering strength to win tough battles, and ambitioning to win a new journey, theCompany shall accelerate its relentless struggle towards becoming "China's first and world-class"green and intelligent transportation solutions provider, as well as a century-old national automobilebrand.
(1) Taking the brand as the leader, refreshing the brand core, and creating the leading brandstrength. Devoted to a century-old national automobile brand, the Company adheres to "inheritance"and "refreshment" to achieve the brand development of "modernization, substantiation, enrichment,internationalization and precision".
(2) Focusing on the leading mainline of products, comprehensively enhancing productcompetitiveness, and consolidating the leading position of FAW Jiefang. Adhere to the concept of"product is the priority", have insight into market trends and customer needs, develop and upgradethe product platform by focusing on traditional products, new energy, special equipment andpowertrain, and constantly reserve and create new advantages of the products of FAW Jiefang.
(3) Firmly adhering to innovation and reform drive, strengthening the core capabilities of theenterprise for facing the future, and creating a strong driving force for high-quality development. Interms of technological innovation, anchor the goal of "ranking first in the industry in scientific andtechnological innovation capability", grasp the cutting-edge technology of global commercialvehicles, strengthen the independent innovation capability, and support the products and solutions infields such as traditional vehicles, NEVs and intelligent connected vehicles to enter the world-classlevel. In terms of reform drive, further promote business process and integration reform, strive torealize the value of reform, create a world-class modern management system, and continuouslydeepen the "four-capability" reform, thereby meeting the needs of process-based organizationalreform.
(4) Resolutely winning the four tough battles and promoting the operation level to a new levelwith innovative thinking, precise policy implementation, strong system building and quick capabilitypromotion. Resolutely win the tough battle for the first rank of traditional vehicles in China, stick tothe "two-beyond" goal, and promote the absolute leading advantage of medium and heavy trucks inthe country; resolutely win the tough battle for the leapfrog growth of NEVs, and continuously digdeep into sales increment by focusing on typical scenarios, innovating marketing models andimplementing customized solutions; resolutely win the tough battle for catching up with the peers involume in overseas markets, continue to seize market opportunities, accelerate the pace ofinternationalization, and expand the overseas sales base; resolutely win the tough battle for costreduction, income increment and profit promotion, adhere to the idea of "increasing margin, reducingcost and increasing income", strengthen the pulling effect of budget, implement rolling forecasts,optimize economic operation analysis, and improve operation quality.
(5) Carrying out seven key tasks and providing strong support for improving the efficiency andeffect of enterprise operations. In terms of strategic management, strengthen strategic management toensure quick and effective implementation of the strategies of the Company, enhance joint venturecooperation, and make good use of external resources. In terms of quality management,unwaveringly adhere to the concept of "win with quality", innovate and deepen the four majorprojects, and accelerate the construction of world-class competitiveness in quality. In terms of digitalintelligent transformation, constantly create the "four-pillar" digital intelligent architecture, and buildthe main digital intelligent platform of FAW Jiefang in accordance with the principles of end-to-endprocess, business integration and urgent use first, thereby supporting the improvements in the
"benefit, efficiency, and quality" of the Company. In terms of supply chain security, persist inbuilding a ''world-class supply chain system", and steadily enhance the resilience and security of thesupply chain. In terms of manufacturing technology, inherit the 70 years of vehicle buildingexperience of FAW Jiefang and create the world-class process manufacturing technology capability.In terms of capital operation, build the first-class capital operation capability in the industry focusingon the "electrification, networking, intelligence and sharing" and globalization trend of commercialvehicles. In terms of safety and environmental protection & risk compliance & confidentiality,deeply implement the safety production responsibility system, keep an eye on the bottom line ofenvironmental compliance, continue to strengthen the construction of audit, compliance and risksystems, and prioritize the action of the "Year of Trade Secret Protection", thus realizing systemenhancement and work improvement.
(6) Aiming at the goals of various business sectors, cooperating with each other, improving theoperation efficiency, and supporting the overall transformation and development of FAW Jiefang.
3. Possible risks to the Company's operation
(1) International environment change risk
The stock competition will be maintained in the domestic heavy truck market for a long time,with product export representing one of the industrial development directions. During the reportingperiod, the quantity and proportion of the export products of the Company increased continuously.However, considering international environmental factors such as regional conflicts, tariff barriersand currency exchange rate fluctuations, coupled with the sustained high global inflation level andslower economic growth, the product export of the Company will face more challenges.
(2) Market structure change risk
In the context of propelling the stable promotion of investment scale and efficiency in China,there is a favorable investment situation in China, and the heavy truck industry shows a slightincrease in volume within the short term as affected by the policies. Also, with the constant change infactors such as gasoline and diesel prices, liquefied natural gas prices and new energy battery costs,the market structure will be further adjusted. These factors, coupled with the impact brought bypolicies including the "carbon peaking and carbon neutrality" strategy, will cause the Company toconfront the opportunities and challenges brought by market structure change. Moreover, due tomarket structure change, the market share of new energy products will continue to increase. However,
the intensified competition and disorder in the new energy market will also bring great risks to theoperation of the Company.
(3) Commodity price fluctuation risk
The production and operation of the Company involve three types of commodities, namelybasic raw materials, precious metals and energies. Although the supply and demand of raw materialssuch as steel are relatively stable in the short term, factors such as macro-economy, supply anddemand relationships, policies and regulations change continuously. Hence, there are still manyuncertainties in the prices of some precious metals and energies, and the price fluctuations will havea certain impact on the production cost of the Company.Based on the above risks, the Company has prepared the following solutions:
(1) Strengthening product investment and improving service level. Increase product researchand development, accurately launch new products, and continue to improve service level, therebymeeting customer needs, enhancing market competitiveness, and promoting brand image.
(2) Optimizing marketing network. Establish diversified sales channels by developing multiplemarket segments, shore up areas of weakness, expand advantages, comprehensively improvemarketing network capability, and seize market opportunities.
(3) Perfecting the quick response mechanism to cope with the rapid changes in the market.Continue to perfect and improve the response mechanism, give quick responses and adjust strategiesand policies in case of changes in the market situation, timely cope with the competition, and strivefor the market.
(4) Strengthening environment investigation and monitoring. Continuously conduct marketinvestigations and adverse factors assessment of the domestic and overseas political and economiclandscapes, aiming at timely adjustment of market strategies; establish a robust market monitoringmechanism, optimize the cost of raw materials, and constantly improve resources, thereby timelycoping with the challenges brought by market changes.XII. Reception, Investigation, Communication, Interview and Other Activities in the ReportingPeriod?Applicable □Not applicable
| Reception Time | Reception Location | Reception Mode | Type of Reception Object | Reception Object | Main Contents of | Index of Basic |
| Discussion and Information Provided | Information of Investigation | |||||
| February 04, 2023 | Meeting room of the company | Telephone communication | Organization | Zhejiang Zheshang Asset Management Co., Ltd., Sinosafe Asset Insurance, Huatai Asset Management, Hwabao Trust, KNIHT Investment, Bosera Funds, Sunsource Investment, Harfor Funds, Bohai Life, Nuode Fund, CITIC Securities, and Northeast Securities | Operation and development planning of the Company, no relevant information is provided | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800#research |
| February 17, 2023 | Meeting room of the company | Field Research | Organization | GF Securities, Proprietary Branch of Soochow Securities, Infore Capital, Xitai Investment, Zhejiang Jing'an Investment Management Co., Ltd., Visione Asset, PICC Pension, and CNIC Corporation Limited | ||
| February 23, 2023 | Meeting room of the company | Field Research | Organization | Caitong Securities | ||
| April 04, 2023 | Meeting room of the company | Telephone communication | Organization | Sino Life Asset, Great Wall Securities, Shanghai Chaser Asset, GF Securities, Oriental Holdings, Hua'an Securities, Kuwait Investment Authority, CITIC Securities CLSA Capital Partners, Eastmoney Securities, Kaiyuan Securities, Soochow Securities, CITIC Prudential Fund, Juming Investment, Harvest Forever Capital Management, New China Fund Management, CITIC Securities, JU Capital, Northeast Securities, Chentai Capital, Oriental Harbor Investment, Danlian Investment, CMB Wealth Management, Hezhong Yisheng, Bank Of China Investment Management, Nuode Fund, China Pacific Asset, Huatai-pinebridge, |
| Management, Huatai Asset Management, PRUDENCE INVESTMENT, Danyi Investment, Beijing Rongguang Investment, Gohedge Asset, Beijing Gaoshang Capital Management, FAW Equity, Qing Shui Yuan Investment, and Shangcheng Asset Management | ||||
| April 04, 2023 | Meeting room of the company | Network platform online communication | Others | Investors participating in FAW Jiefang 2022 Annual Performance Presentation |
| April 28, 2023 | Meeting room of the company | Telephone communication | Organization | China Post Securities, CITIC Securities, Proprietary Branch of CITIC Construction Investment, CITIC Prudential Asset Management, CITIC Prudential Fund, Zhong Ou Asset Management, Zhongke Richland Asset Management, CICC, Zheshang Securities, Changjiang Securities, Great Wall Securities, Oriental Holdings, CIB Research, Cinda Securities, Southwest Securities, Shangcheng Asset Management, Qianhai Gohedge, Silver Leaf Investment, LS Asset, Licheng Asset, Baixi Private Equity, Credit Suisse, Nuode Fund, Kaiyuan Securities, Jing'an Investment, Huaxi Securities, Huatai Securities, Huatai-pinebridge, Hua'an Securities, Xinghai Future Private Equity, HAITONG Securities, Haichuang Fund, Guolian Securities, GF Securities, ICBC-AXA Life Insurance, Eastmoney Securities, Northeast Securities, Caitong Securities, Golden Trust Investment, Founder Life Insurance, UBS, Prudence Investment, Petrel Capital |
| Greater CHINA FUND, JM GREAT, CHINA FUND, JM Capital, HGNH, International Asset, Grand Alliance Asset Management, Fenghe Asia, CLOUDALPHA MASTER FUND, China Galaxy Asset Management, Cathay Life Insurance, and BRILLIANCE - BRILLIANT PARTNERS FUND LP | ||||
| May 19, 2023 | Meeting room of the company | Field Research | Organization | Caitong Securities, Dapu Asset Management, Eastmoney Securities, Proprietary Branch of Donghai Securities, Soochow Securities, GF Securities, Sealand Securities, Guolian Securities, CNIC Corporation Limited, HAITONG Securities, Huatai Securities, BNB Wealth Management, Penghua Fund Management, Southwest Securities, Xinyuan Fund Management, Cinda Securities, Industrial Securities, CIB Wealth Management, New Insight Capital, Great Wall Securities, China Merchants Fund Management, CICC, Zhongtai Asset Management, CITIC Securities, China Post & Capital Fund Management |
| May 22, 2023 | Meeting room of the company | Network platform online communication | Others | Investors participating in the Online Collective Performance Presentation of Listed Companies within the Jurisdiction of Jilin |
| August 31, 2023 | Meeting room of the company | Telephone communication | Organization | ICBC International, Proprietary Branch of Essence Securities, Niuhu Asset Management, Proprietary Branch of CITIC Construction Investment, Zijin Venture Capital, China Post Life Insurance, CPIC, Southern Tianchen, PSBC Wealth Management, Bosc Asset Management, Nuode Fund, Great Wall Securities, Wuxi |
| Investment, Oriental Holdings, Zheshang Securities, Coast Horn , Sealand Securities, Neo-Criterion, Yinsheng Asset Management, Quanguo Fund, HGNH International Asset, Management (SG) PTE.LTD, Cinda Securities, Silver Leaf Investment, CIGNA & CMB, JM Capital, and CICC | ||||
| October 13, 2023 | Meeting room of the company | Field Research | Organization | Rongtong Fund Management and Shanxi Securities |
| October 31, 2023 | Meeting room of the company | Telephone communication | Organization | Springs Capital, Mingshi Partners Private Equity, BNB Wealth Management, Harvest Fund, Dongxing Securities, CITIC Prudential Fund, Invesco Great Wall, Shanghai Mingyu, Everbright Securities, Nuode Fund, CITIC Securities, Guohai Automobile, Quanguo Fund, Development Research Center, PICC, Truvalue Asset Management, Zhongke Richland, Taikang Funds, Zheshang Securities, JM Capital, JT Asset Management, Huatai-pinebridge, ETOCK Capital, Proprietary Branch of Industrial Securities, Northeast Securities, Great Wall Securities, Silver Leaf Investment, Taikang Pension, Ping An Asset Management, Bund Capltial, Topsperity Securities, UBS Securities, KNIHT Investment, Shangcheng Asset Management, New Insight Investmen t, Huaxi Securities, Guolian Securities, Hel Ved Capital Management Limited, Infore Capital, HAWTAI Motor, C&S Paper, and E Fund |
| November 08, 2023 | Meeting room of the company | Field Research | Organization | Essence Securities, Chasing Securities, Topsperity Securities, Eastmoney Securities, GF Securities, GH |
Shining Asset, Guotai JunanSecurities, Hubei SMEFinancial Service Center Co.,Ltd., Hua'an Securities, JiufuInvestment, Qingdao Botai,Shanxi Securities, CRRCZhuzhou Electric LocomotiveResearch Institute, CITIC Non-Banking, and CITIC Securities
XIII. Implementation of the "Improvement of Both Quality and Return" Action PlanWhether the Company disclosed the "Improvement of Both Quality and Return" action plan.?Yes □No
The "Improvement of Both Quality and Return" action plan is prepared in order to implementthe guiding ideologies of "activating the capital market and boosting investors' confidence" asproposed at the meeting of the Political Bureau of the Central Committee of the CPC and of"vigorously improving the quality and investment value of listed companies, taking more powerfuland effective measures, and focusing on market stability and confidence stability" as proposed in theexecutive meeting of the State Council, safeguard the interests of all shareholders, enhance theinvestors' confidence and promote the long-term sound and sustainable development of the Company.For details, please refer to the Announcement on the "Improvement of Both Quality and Return"Action Plan published by the Company in the Securities Times, China Securities Journal andCNINFO (http://www.cninfo.com.cn) on March 2, 2024.The company consistently prioritizes high-quality development as its core theme. It iscommitted to advancing its main business and aspires to establish itself as a leading brand. Thecompany places a strong emphasis on product leadership, continuously innovating and drivingreforms. It actively pursues the mastery of key core technologies, constantly striving to conquer newfrontiers. It is accelerating towards its goal of becoming "China's first and world-class" green andintelligent transportation solution provider, as well as a century-old national automobile brand. TheCompany constantly consolidates its corporate governance structure, improves its internal controlsystem, promotes the standardized and efficient operation of the "shareholders' meeting, Board ofDirectors and Board of Supervisors", and gives full play to the role of various governance subjects,thus ensuring scientific and effective decision-making. The Company strictly abides by laws,regulations and regulatory agency provisions, continuously improves the information disclosure
quality, highlights the importance and pertinence of information disclosure, fully demonstrates theintrinsic value of the Company, and provides investors with an objective decision-making basis.Through listing announcements, brokerage strategy meetings, investor exchanges, Interaction Easy,telephone, email and other channels, the Company ensures good communication with investors andbuilds an efficient and transparent communication platform.The Company strictly implements the shareholder dividend return plan and profit distributionpolicy and prepares the 2023 annual profit distribution plan based on its actual situation. The 2023annual profit distribution plan of the Company is as follows: Based on the 4,636,485,668 shares ofthe Company, a cash dividend of CNY 1.5 (tax inclusive) will be distributed to all shareholders forevery 10 shares they hold; the cash dividends to be distributed will reach CNY 695,472,850.20 (taxinclusive), and the remaining undistributed profits will be carried forward to the next accounting year.The Company does not convert its capital reserves into share capital. This distribution plan is subjectto the review and approval of the 2023 annual shareholders' meeting before implementation.
Section IV Corporate GovernanceI. Basic Information about Corporate Governance
In 2023, in strict accordance with relevant laws and regulations such as the Company Law, theSecurities Law, the Code of Corporate Governance for Listed Companies, the Rules Governing theListing of Shares on Shenzhen Stock Exchange, and the Self-regulatory Guidelines of ShenzhenStock Exchange for Listed Companies No.1 - Standardized Operation of Main Board ListedCompanies, as well as relevant normative documents of the China Securities RegulatoryCommission and the Shenzhen Stock Exchange (SZSE), and the Articles of Association, theCompany revised and updated the Articles of Association and the Special Management System forDirectors, Supervisors and Senior Executives to Hold, Buy and Sell Company Shares, perfected theinternal control system, constantly improved the corporate governance structure, promoted thestandardized operation of the Company, enhanced the information disclosure quality of the Company,actively conducted the investor relations management, and continuously propelled the improvementof corporate governance level. At present, the actual governance situation of the Company meetsrequirements of the China Securities Regulatory Commission's normative documents for thegovernance of listed companies.
1. Shareholders and shareholders' meeting
The Company normatively convenes and holds the shareholders' meetings in strict accordancewith the regulations and requirements of the Rules for Shareholders' Meeting of Listed Companies,the Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies No.1 -Standardized Operation of Main Board Listed Companies and the Articles of Association, etc. Theshareholders' meeting combines on-site and online voting, which effectively safeguards theparticipation of minority shareholders in relevant decision-making matters of the Company andenables them to fully exercise their rights as shareholders. When reviewing related transactionmatters at the shareholders' meeting of the Company, the procedure for voting avoidance of relatedshareholders is strictly performed, thus ensuring the fairness, justice and openness of the relatedtransactions. The Company employs professional lawyers to witness and provide legal opinions onthe convening of the meeting, so as to ensure standardized operation of the meeting.
2. Directors and the board of directors
The Company elects directors in strict accordance with the selection procedures stipulated in theCompany Law, the Articles of Association and the Rules of Procedure for the Board of Directors.The composition and qualifications of the Board members comply with relevant laws and regulations.In the reporting period, the Board of Directors of the Company convened and held the board meetingaccording to the duties assigned by laws and regulations. All directors of the Company, with aresponsible attitude towards all shareholders, actively attended the board meetings and theshareholders' meetings, carried out all tasks diligently and responsibly, and protected the interests ofthe Company and shareholders. The Board of Directors of the Company has three special committees,namely, the Strategy Committee, the Audit and Risk Control Committee and the Remuneration andAppraisal Committee, which can provide scientific and professional opinions and suggestions for thedecision-making of the Board of Directors, thus ensuring the rationality of the decision-making ofthe Board of Directors.
3. Supervisors and the Board of Supervisors
The Company elects supervisors in strict accordance with the selection procedures stipulated inthe Company Law, the Articles of Association and the Rules of Procedure for the Board ofSupervisors. The composition and qualifications of the members of the Board of Supervisors of theCompany comply with relevant laws and regulations. In the reporting period, the Board ofSupervisors of the Company convened and held the board meeting according to the duties assignedby laws and regulations. All supervisors of the Company can earnestly perform their duties, activelyattend relevant meetings, supervise regular reports, related transactions, major matters, and thefulfillment of duties directors and senior executives and other matters of the Company, protectlegitimate interests of the Company and shareholders, and promote the improvement of the corporategovernance level.
4. Relationship between controlling shareholders and listed companies
The Company has independent and complete business and independent operation capabilities,and is independent of controlling shareholders in terms of business, personnel, assets, organizationsand finance. Controlling shareholders of the Company can regularize their own behaviors accordingto the Code of Corporate Governance for Listed Companies, the No. 1 Guidelines for Self-disciplineSupervision of Listed Companies - Standardized Operation of Listed Companies on the Main Boardand the Articles of Association, and do not interfere with the operation and decision-making
activities of the Company directly or indirectly without obtaining the permission of the shareholders'meeting, or occupy non-operational funds of the Company, or obtain guarantee from the Company.
5. Information disclosure and transparency
The Company discloses relevant information truthfully, accurately, completely, timely andfairly in strict accordance with the Measures for the Administration of Information Disclosure byListed Companies, the Code of Corporate Governance for Listed Companies, the Rules Governingthe Listing of Shares on Shenzhen Stock Exchange, the No.1 Guidelines for Self-disciplineSupervision of Listed Companies - Standardized Operation of Listed Companies on the Main Boardand the Articles of Association, so as to provide equal opportunities for all investors to obtaininformation of the Company. The Company conducts the registration management of insidersaccording to the provisions of the Insiders Registration Management Policy, thereby safeguardingthe legitimate rights and interests of investors. The Company designates the special person to takecharge of investor relations management, and strengthens communication with investors throughinvestigations, telephones, emails, Interaction Easy and other channels, thereby ensuring that allshareholders have fair access to the relevant information of the Company.
6. Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of stakeholders,attaches importance to its communication and exchange with stakeholders, strives to coordinate andbalance the interests of shareholders, employees, society and other parties, protects the rights andinterests of stakeholders in accordance with the law, and promotes sustainable, stable and sounddevelopment of the Company together with them.Whether there is significant difference between the actual situation of corporate governance and laws,administrative regulations and the regulations on the governance of listed companies issued by theChina Securities Regulatory Commission
□Yes ?No
There is no significant difference between the actual situation of corporate governance and laws,administrative regulations and the regulations on the governance of listed companies issued by theChina Securities Regulatory Commission.
II. Independence of the Company from Controlling Shareholders and Actual Controllers inTerms of Guaranteeing the Company's Assets, Personnel, Finance, Organizations and BusinessThe Company has independent and complete business and operation capacity and is completelyindependent of controlling shareholders in terms of business, personnel, assets, organizations,finance, etc. Specific steps are as follows:
1. Business: The Company has independent business operation systems for procurement,production and sales, possesses independent operation capacity, and can organize and undertakeproduction and operation activities independently.
2. Personnel: The Company has an independent personnel management organization and system,and establishes an independent and complete salary management system. The senior executives ofthe Company are full-time employees and receive salary from the Company.
3. Assets: The ownership of the assets of the Company is clear and complete, and no asset of thecontrolling shareholders is relied on for production and operation. The Company has rights to own,control, dispose of, and obtain earnings from its assets. No asset of the Company is occupied bycontrolling shareholders.
4. Organization: The Company has an independent and complete organizational structure andproduction and business premises. The Board of Directors, the Board of Supervisors and otherinternal organizations operate independently and do not work together with controlling shareholders.
5. Finance: The Company has an independent and complete financial department, possesses aperfect financial management system and accounting system, opens an independent bank account,and pays taxes independently according to law.III. Horizontal Competition?Applicable □Not applicable
| Problem type | Type of Relationship with Listed Company | Company Name | Nature of company | Causes | Solutions | Work Progress and Follow-up Plan |
| Horizontal competition | Controlling shareholder | CHINA FAW GROUP CO., LTD. | Others | In 2020, the listed company completed major asset restructuring, | FAW Harbin Light Automobile Co., Ltd. (hereinafter referred to as | Perform as promised |
| and its main business was changed to the R&D, production and sales of commercial vehicles. FAW Harbin Light Automobile Co., Ltd. and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd., which are members of FAW Light Commercial Vehicle Co., Ltd., a subsidiary of FAW, are engaged in some light truck businesses. There is horizontal competition or potential horizontal competition between them and the listed company. | "Harbin Light Automobile") and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. (hereinafter referred to as "FAW Hongta") are in a state of discontinuation or loss currently, with heavy burden and unstable profitability. FAW promises that it will entrust all shares of Harbin Light Automobile and FAW Hongta under its actual control to Jiefang Limited for management, and inject the equities of Harbin Light Automobile and FAW Hongta under its actual control to listed companies in batches or at one time in an appropriate way, or transfer them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck related |
| businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. | ||||||
| Horizontal competition | Controlling shareholder | China FAW Co., Ltd. | Others | In 2020, the listed company completed major asset restructuring, and its main business was changed to the R&D, production and sales of commercial vehicles. FAW Harbin Light Automobile Co., Ltd. and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd., which are members of FAW Light | Harbin Light Automobile and FAW Hongta are in a state of discontinuation or loss currently, with heavy burden and unstable profitability. FAW promises that it will urge to entrust all shares of Harbin Light Automobile and FAW Hongta under its actual control to Jiefang Limited for management, and inject the | Perform as promised |
| Commercial Vehicle Co., Ltd., a subsidiary of FAW Car Co., Ltd., are engaged in some light truck businesses. There is horizontal competition or potential horizontal competition between them and the listed company. | equities of Harbin Light Automobile and FAW Hongta under its actual control to listed companies in batches or at one time in an appropriate way, or transfer them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. |
IV. Information on Annual Shareholders’ Meeting and Extraordinary Shareholders’ MeetingHeld in the Reporting Period
1. Shareholders' meeting in the reporting period
| Session | Meeting Type | Participation Ratio of Investors | Date | Date of Disclosure | Meeting Resolution |
| First extraordinary shareholders' meeting of 2023 | Extraordinary shareholders' meeting | 84.91% | March 02, 2023 | March 03, 2023 | The Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association, the Proposal on Estimated Daily Related Transaction Amount in 2023, the Proposal on Signing a Financial Service Framework Agreement with First Automobile Finance Co., Ltd., and the Proposal on Estimated Financial Business Amount with First Automobile Finance Co., Ltd. in 2023 were deliberated and approved. |
| 2022 Annual shareholders' meeting | Annual shareholders' meeting | 83.95% | April 24, 2023 | April 25, 2023 | The 2022 Work Report of the Board of Directors, the 2022 Work Report of the Board of Supervisors, the 2022 Financial Statements, the 2022 Annual Report and Summary Thereof, the 2022 Profit Distribution Plan, the Proposal on Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the First Release Period Reserved by the Phase I Restricted Share |
| Incentive Plan for Releasing the Restricted Sales and Repurchase and Cancellation of Some Restricted Shares, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association, the Proposal on Election of Non-employee Representative Supervisors of the 10th Board of Supervisors at the General Meeting of the Board of Supervisors, the Proposal on Election of Non-independent Directors of the 10th Board of Directors at the General Meeting of the Board of Directors, and the Proposal on Election of Independent Directors of the 10th Board of Directors at the General Meeting of the Board of Directors were deliberated and approved. | |||||
| Second Extraordinary Shareholders’ Meeting of 2023 | Extraordinary shareholders' meeting | 84.43% | July 18, 2023 | July 19, 2023 | Reviewed and approved the Proposal on the Company's Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company's Plan to Issue A Shares to Specific Objects in 2023, the Proposal on the Plan to Issue A Shares to Specific Objects in 2023, the Proposal on Demonstration and Analysis Report on the Plan to Issue A Shares to Specific Objects in 2023, the Proposal on the Report on Use of Previously Raised Funds, the Proposal on Feasibility Analysis Report on Use of Funds Raised by Issuing A Shares to Specific Objects in 2023, the Proposal on Diluting Return At Sight of the Company's |
| Issuance of A Shares to Specific Objects, Taking Filling Measures and Commitments of Relevant Subjects in 2023, the Proposal on Shareholders' Return Plan of the Company in the Next Three Years (2023-2025), and the Proposal on Requesting General Meeting of Shareholders of the Company to Authorize Board of Directors to Handle Specific Matters Related to Issuance of A Shares to Specific Objects | |||||
| Third Extraordinary Shareholders’ Meeting of 2023 | Extraordinary shareholders' meeting | 84.56% | September 28, 2023 | October 09, 2023 | Reviewed and approved the Proposal on Land and House Expropriation of Subsidiaries, the Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, the Proposal on Change of Registered Capital of the Company and the Proposal on Amending the Articles of Association |
| Fourth Extraordinary Shareholders’ Meeting of 2023 | Extraordinary shareholders' meeting | 84.82% | December 06, 2023 | December 07, 2023 | Reviewed and approved the Proposal on Electing Li Sheng as a Non-independent Director of the Company, the Proposal on Electing Yan Feng as the Supervisor of the Company, the Proposal on Renewing Engagement of Financial Audit Institution, the Proposal on Renewing Engagement of Internal Control Audit Institution, the Proposal on Increasing the Estimate of Daily Related Transactions in 2023, the Proposal on Repurchase and Cancellation of Partial Restricted Shares in the |
Phase I Restricted ShareIncentive Plan, the Proposalon Change of RegisteredCapital of the Company andthe Proposal on Amendingthe Articles of Association
2. Preferred shareholders with resumed voting rights request to convene an extraordinaryshareholders' meeting
□Applicable ?Not applicable
V. Directors, Supervisors and Senior Executives
1. Basic information
| Name | Gender | Age | Position | Employment Status | Start Date of Tenure | Ending Date of Tenure | Number of Shares Held at the Beginning of the Period (share) | Number of Shares Increased in the Current Period (share) | Number of Shares Reduced in the Current Period (share) | Other Increase/Decrease (share) | Number of Shares Held at the End of the Period (share) | Reasons for the Increase or Decrease of Shares |
| Hu Hanjie | Male | 59 | Chairman of the Board | Departure from office | April 23, 2023 | October 30, 2023 | 334,331 | 110,329 | 224,002 | Cancellation through repurchase | ||
| Wu Bilei | Male | 53 | Chairman of the Board | In-service | October 30, 2023 | April 23, 2026 | 228,552 | 75,422 | 153,130 | Cancellation through repurchase | ||
| Li Sheng | Male | 47 | Director | In-service | December 06, 2023 | April 23, 2026 | 192,778 | 63,617 | 129,161 | Cancellation through repurchase | ||
| Zhang Guohua | Male | 51 | Director | In-service | June 23, 2020 | March 08, 2024 | 228,493 | 75,403 | 153,090 | Cancellation through repurchase | ||
| Bi Wenquan | Male | 51 | Director | In-service | September 15, 2021 | April 23, 2026 | ||||||
| Li Hongjian | Male | 51 | Director | Departure from office | April 29, 2022 | October 30, 2023 | ||||||
| Liu Yanchang | Male | 60 | Director | In-service | September 16, 2022 | April 23, 2026 | ||||||
| Han | Male | 57 | Independe | In-service | April 22, | April 23, |
| Fangming | nt director | 2020 | 2026 | |||||||||
| Mao Zhihong | Male | 62 | Independent director | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Dong Zhonglang | Male | 59 | Independent director | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Wang Yanjun | Male | 60 | Chairman of Board of Supervisors | Departure from office | September 15, 2021 | October 30, 2023 | ||||||
| Yan Feng | Male | 57 | Chairman of Board of Supervisors | In-service | December 29, 2023 | January 17, 2024 | ||||||
| Xu Haigen | Male | 59 | Employee Supervisor | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Wang Lijun | Male | 55 | Employee Supervisor | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Duan Yinghui | Male | 53 | Employee Supervisor | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Ren Ruijie | Male | 40 | Employee Supervisor | In-service | April 22, 2020 | March 08, 2024 | ||||||
| Wu Bilei | Male | 53 | General Manager | Departure from office | September 17, 2021 | October 30, 2023 | ||||||
| Li Sheng | Male | 47 | General Manager | In-service | October 30, 2023 | April 23, 2026 | ||||||
| Li Sheng | Male | 47 | Deputy General Manager | Departure from office | October 19, 2022 | October 30, 2023 | ||||||
| Yu Changxin | Male | 51 | Executive Deputy | In-service | November 28, | April 23, 2026 |
| General Manager | 2022 | |||||||||||
| Ji Yizhi | Male | 54 | Deputy General Manager | In-service | October 19, 2022 | April 23, 2026 | 192,778 | 63,617 | 129,161 | Cancellation through repurchase | ||
| Tian Haifeng | Male | 51 | Deputy General Manager | In-service | October 19, 2022 | March 08, 2024 | 192,778 | 63,617 | 129,161 | Cancellation through repurchase | ||
| Wang Jianxun | Male | 40 | Secretary of the Board of Directors | In-service | July 23, 2020 | April 23, 2026 | 192,778 | 63,617 | 129,161 | Cancellation through repurchase | ||
| Total | -- | -- | -- | -- | -- | -- | 1,562,488 | 0 | 0 | 515,622 | 1,046,866 | -- |
Whether any director or supervisor during term of office leaves office or any senior executive is dismissed in the reporting period?Yes □No
(1) On October 31, 2023, the Company disclosed the Announcement on Changing the Chairman of the Board, Director, and General Manager of theCompany and the Announcement on Changing the Supervisor of the Company. Mr. Hu Hanjie applied to resign from his posts as the Chairman of the10th Board of Directors, the Director and a member of the Special Committee of the Board of Directors due to job arrangements. Mr. Li Hongjianapplied to resign from his posts as a director of the 10th Board of Directors and a member of the Special Committee of the Board of Directors due to jobchanges. Mr. Wang Yanjun applied to resign from his posts as the Chairman and Supervisor of the 10th Board of Supervisors due to reaching thestatutory retirement age. Mr. Wu Bilei applied to resign from his post as the General Manager of the Company due to job changes, and he will hold thepost of the Chairman of the Board after resigning.
(2) On January 18, 2024, the Company disclosed the Announcement on Changing the Supervisor of the Company. Mr. Yan Feng applied to resign fromhis posts as the Chairman and the Supervisor of the 10th Board of Supervisors of the Company due to personal reasons. On March 11, 2024, the
Company separately disclosed the Announcement on Resignation of Directors and Senior Executives and the Announcement on Resignation ofSupervisors. Mr. Zhang Guohua applied to resign from his post as a Director of the Company due to job changes. Mr. Ren Ruijie applied to resign fromhis post as the Supervisor of the Company due to job changes. Mr. Tian Haifeng applied to resign from his post as the Deputy General Manager of theCompany due to job changes.
For details, please refer to the announcements by the Company in the Securities Times, China Securities Journal and CNINFO(http://www.cninfo.com.cn).
Changes in Directors, Supervisors and Senior Management of the Company?Applicable □Not applicable
| Name | Position | Type | Date | Reason |
| Hu Hanjie | Chairman of the Board | Departure from office | October 30, 2023 | Job arrangements |
| Wu Bilei | Chairman of the Board | Elected | October 30, 2023 | |
| Li Sheng | Director | Elected | December 06, 2023 | |
| Li Hongjian | Director | Departure from office | October 30, 2023 | Job changes |
| Wang Yanjun | Chairman of Board of Supervisors | Departure from office | October 30, 2023 | Statutory retirement |
| Yan Feng | Chairman of Board of Supervisors | Elected | December 29, 2023 | Resigned on January 17, 2024 due to personal reasons |
| Wu Bilei | General Manager | Departure from office | October 30, 2023 | Job changes |
| Li Sheng | General Manager | Appointed | October 30, 2023 | |
| Li Sheng | Deputy General Manager | Departure from office | October 30, 2023 | Job changes |
2. Employment status
Professional background, main work experience and main responsibilities of current directors,supervisors and senior executives of the CompanyDirector:
Mr. Wu Bilei is currently the Chairman of the Board and Secretary of the Party Committee ofFAW Jiefang, the Executive Director and Secretary of the Party Committee of Jiefang Limited. Hehas served successively as the Deputy Chief Engineer of the Technical Center of China FAW GroupCorporation and Deputy Director of Product Management Department of Jiefang Limited, VicePresident of Commercial Vehicle R&D Institute of Technical Center of China FAW GroupCorporation and Deputy Director of Product Management Department of Jiefang Limited, VicePresident of Commercial Vehicle Development Institute of Jiefang Business Headquarters, VicePresident of Commercial Vehicle Development Institute of Jiefang Business Headquarters andDeputy Director of Product Management Department of Jiefang Business Headquarters (JiefangCompany). President and Secretary of the Party Committee of Commercial Vehicle DevelopmentInstitute of Jiefang Business Headquarters, President and Secretary of the Party Committee of
Commercial Vehicle Development Institute of Jiefang Limited, Deputy General Manager of FAWJiefang, the Director, General Manager and Deputy Secretary of the Party Committee of FAWJiefang, the General Manager and Deputy Secretary of the Party Committee of Jiefang Limited, andthe General Manager of the Medium and Heavy Vehicle Product Line of the Headquarters.Mr. Li Sheng is currently the General Manager and Deputy Secretary of the Party Committeeof FAW Jiefang, and the General Manager and Deputy Secretary of the Party Committee of JiefangLimited. He has served successively as the General Manager Assistant and Director of R&DDepartment of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Senior Manager of QingdaoVehicle Division (FAW Jiefang Qingdao Automobile Plant) of Jiefang Business Headquarters, theAssistant to President of Commercial Vehicle Development Institute of Jiefang Limited and theSenior Manager and Director of R&D Department of Qingdao Vehicle Division (FAW JiefangQingdao Automobile Plant), the Deputy General Manager of Qingdao Vehicle Division (FAWJiefang Qingdao Automobile Plant) of Jiefang Limited and Assistant to President of CommercialVehicle Development Institute, the Vice President of Commercial Vehicle Development Institute ofJiefang Limited and the Deputy General Manager and Director of R&D Department of QingdaoVehicle Division (FAW Jiefang Qingdao Automobile Plant), and the Executive Deputy GeneralManager of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited,Deputy General Manager of FAW Jiefang, Deputy General Manager of Jiefang Limited, GeneralManager and Secretary of Party Committee of Qingdao Vehicle Division (FAW Jiefang QingdaoAutomobile Plant), General Manager of the Medium and Heavy Vehicle Product Line of theQingdao Vehicle Division, and General Manager of the Light Vehicle Product Line, etc.
Mr. Zhang Guohua is currently the Deputy Secretary of the Party Committee and Chairman ofthe Labor Union of FAW Jiefang and the Deputy Secretary of the Party Committee and Chairman ofthe Labor Union of Jiefang Limited. He has served successively as the Senior Manager of theOrganization and Personnel Department and Director of the Senior Manager Management Office ofChina FAW Group Corporation, Senior Manager of the Organization and Personnel Department andSenior Manager of the Social Business Management Department of China FAW Group Corporation,Deputy General Manager (Deputy Director) of Human Resources Department (Party CommitteeCadre Department) of China FAW Group Corporation, etc.Mr. Bi Wenquan is currently the General Manager of Production Logistics Department of FAW.He has served successively as the Secretary of the Party Committee, Secretary of the Commission for
Discipline Inspection, Head of the Labor Union of Tianjin FAW Xiali Automobile Co., Ltd.,Executive Deputy Secretary of the Party Committee, Secretary of the Commission for DisciplineInspection and Chairman of the Labor Union of FAW Tianjin Business Division, Deputy GeneralManager of FAW Car, Deputy General Manager of FAW-Bestune, General Manager of FAWEngineering and Production Logistics Department, etc.Mr. Liu Yanchang is currently a full-time external director and convener/team leader of thesubsidiary of FAW Financial Management Department (Office of the Board of Directors). He hasserved successively as the Deputy Secretary of the Party Committee, Secretary of the Commissionfor Discipline Inspection and Chairman of the Labor Union of Jiefang Limited, Deputy Secretary ofthe Party Committee and Chairman of the Labor Union of FAW Jiefang, Deputy Secretary of theParty Committee, Head of the Labor Union and Chairman of the Labor Union of FAW-VolkswagenAutomobile Co., Ltd.Mr. Han Fangming is currently the President of the Chahar Institute, a think tank on foreignaffairs and international relations, and a senior consultant to the Board of Directors of TCLTechnology Group. He is also the Vice Chairman of China Overseas-educated ScholarsDevelopment Foundation, the Deputy Editor-in-Chief of Public Diplomacy Quarterly of CICG, theVice Chairman of China National Association For International Studies, the Vice Chairman of ChinaSoutheast Asian Research Association, the Director of the National Council of the Chinese People'sAssociation for Friendship with Foreign Countries, and the Director of Chinese People's Institute ofForeign Affairs. He has served successively as a member of the 10th, 11th, 12th and 13th CPPCC,Deputy Director of the CPPCC Foreign Affairs Committee, and Director, Executive Director andVice Chairman of TCL Group.
Mr. Mao Zhihong is currently the Director, Professor and Doctoral Supervisor of theDepartment of Accounting, School of Business and Management, Jilin University. He is also theVice President of Changchun Accounting Society. He has served as the Associate Professor of JilinUniversity of Finance and Trade (which was renamed Changchun University of Taxation, i.e. thecurrent Jilin University of Finance and Economics).Mr. Dong Zhonglang is currently the managing partner of Zhuhai Yinshan Capital EquityInvestment Management Co., Ltd. He has served successively as the Director of Linde (Xiamen)Forklift Co., Ltd., the General Manager of Shanghai Oulin Logistics Co., Ltd., the Logistics Directorof Weichai Power Group, and the partner of Eastern Bell Capital (Shanghai).
Supervisor:
Mr. Yan Feng has served successively as the Director of the Overseas Business Unit of FAWGroup, the Chairman of the Board and Secretary of the Party Committee of FAW Import and ExportCompany, the General Manager of the Overseas Business Unit of FAW Group and the Chairman ofthe Board and Secretary of the Party Committee of FAW Import and Export Company; the GeneralManager and Deputy Secretary of the Party Committee of FAW Import and Export Company, theSecretary of the Party Committee and Chairman of the Labor Union of FAW Group, the GeneralLegal Advisor and General Manager of the Audit and Legal Department of FAW Group, etc.Mr. Xu Haigen is currently a Senior Executive Manager of the Powertrain Division of JiefangLimited. He has served successively as the Deputy General Manager of the Wuxi Diesel EngineBranch of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Wuxi Diesel EngineFactory of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Engine Division ofJiefang Business Headquarters, and the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Engine Division ofJiefang LimitedMr. Wang Lijun is currently the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Qingdao VehicleDivision (FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited. He has served successivelyas the Deputy Secretary of the Party Committee (who is responsible for presiding over the work), theSecretary of the Commission for Discipline Inspection and the Chairman of the Labor Union of theDistribution Center of FAW Car, the Manager of the Distribution Plant of FAW-VolkswagenAutomobile Co., Ltd., the Director of the Powertrain Division of FAW-Volkswagen Automobile Co.,Ltd. and the Manager of the Changchun Distribution Plant, the Director of the Distribution Centerand Secretary of the Party Committee of FAW Car, and the Deputy Secretary of the Party Committee,Secretary of the Discipline Inspection Commission and Chairman of the Labor Union of theTransmission Division of Jiefang Limited, and the Deputy Secretary of the Party Committee,Secretary of the Commission for Discipline Inspection and Head of the Labor Union of QingdaoVehicle Division (FAW Jiefang Qingdao Automobile Plant).
Mr. Duan Yinghui is currently the Deputy General Manager of Qingdao Vehicle Division(FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited, the Manager of Qingdao Factory andthe Safety Director of FAW Jiefang (Qingdao) Automotive Co., Ltd.. He has served successively asthe Deputy General Manager of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Deputy Directorof FAW Jiefang Product Management Department, the Deputy Secretary of the Party Committee,Secretary of the Discipline Inspection Commission and Head of the Labor Union of Qingdao VehicleDivision (FAW Jiefang (Qingdao) Automotive Co., Ltd.) of FAW Jiefang Business Headquarters,and the Deputy Secretary of the Party Committee, Secretary of the Discipline InspectionCommission and Chairman of the Labor Union of FAW Jiefang Qingdao Vehicle Division (FAWJiefang (Qingdao) Automotive Co., Ltd.), and the Manager and Secretary of the Party Committee ofthe Truck Factory of Jiefang Limited.Mr. Ren Ruijie is currently the Director of the Party-Masses Work Department of FAWJiefang. He has served successively as the Acting Director and Director of the Party CommitteeOrganization Office of the Party Committee Work Department of Jiefang Limited, the OfficeDirector of the Management Department of Jiefang Limited, the Office Director of the ManagementDepartment of FAW Jiefang Business Headquarters (FAW Jiefang), the Director of Party BuildingOffice of Party-Masses Work Department of Jiefang Limited, and the Deputy Director of Party-Masses Work Department of Jiefang Limited (who is responsible for presiding over the work), etc.Senior executives other than directors and supervisors:
Mr. Yu Changxin is currently the Executive Deputy General Manager of FAW Jiefang. and theExecutive Deputy General Manager of Jiefang Limited. He has served successively as the DeputyGeneral Manager of the Marketing Headquarters (Sales Company) of FAW Jiefang BusinessHeadquarters (Jiefang Company), the Deputy General Manager of Qingdao Business Division andHead of Marketing Service Department of Jiefang Company, the Deputy Director of MarketingHeadquarters (Deputy General Manager of FAW Jiefang Automobile Sales Company) of JiefangLimited. and the Deputy General Manager of Qingdao Vehicle Division (FAW Jiefang QingdaoAutomobile Plant), the General Manager of the Commercial Vehicle Overseas MarketingDepartment of Jiefang Limited. and Deputy General Manager of China FAW Group Import &Export Co., Ltd., the General Manager and Deputy Secretary of the Party Committee of China FAWGroup Import & Export Co., Ltd., the Executive Deputy General Manager of FAW Jiefang, theDeputy General Manager of Jiefang Limited and the General Manager of the Overseas Product Line.
Mr. Ji Yizhi is currently the Deputy General Manager of FAW Jiefang, and the Deputy GeneralManager and General Counsel and CCO of Jiefang Limited. He has served successively as theExecutive Deputy General Manager of the Engine Division of Jiefang Limited and the GeneralManager and Secretary of the Party Committee of FAW Jiefang Dalian Diesel Engine Co., Ltd., theGeneral Manager and Secretary of the Party Committee of the Bus Division of Jiefang Limited (theManager and Secretary of the Party Committee of the Bus Factory), the General Manager andSecretary of the Party Committee of the Bus Division of Jiefang Limited (the Manager and Secretaryof the Party Committee of the Bus Factory) and the Deputy Director of the Marketing Headquarters(the Deputy General Manager of FAW Jiefang Sales Company), and the General Manager of NewEnergy Division and the General Manager of Bus Division of Jiefang Limited, the Deputy GeneralManager of FAW Jiefang, the Deputy General Manager, General Counsel and CCO of JiefangLimited, and the General Manager and Secretary of the Party Committee of New Energy VehicleProduct Line (New Energy Business Division), etc..Mr. Tian Haifeng is currently the Deputy General Manager of FAW Jiefang and the DeputyGeneral Manager of Jiefang Limited. He has served successively as the Director of the ProcurementDepartment of Jiefang Business Headquarters (Jiefang Limited), the Director of the ProcurementDepartment of Jiefang Limited, and the Deputy General Manager of Qingdao Vehicle Division(FAW Jiefang Qingdao Automobile Plant) and the Manager of Qingdao Factory of Jiefang Limited.Mr. Wang Jianxun is currently the Secretary of the Board of Directors and Director of theCapital Operation Department of FAW Jiefang. He has served successively as the Deputy OfficeDirector and Office Director of the Board of Directors of TCL Group Co., Ltd., the Deputy GeneralManager of Shenzhen Create Century Machinery Co., Ltd., etc.Status of post held in the firm of shareholders?Applicable □Not applicable
| Name of Employees | Name of Shareholder | Position in the Shareholder | Start Date of Tenure | Ending Date of Tenure | Whether Remuneration and Allowance are Received from the Shareholder |
| Bi Wenquan | CHINA FAW GROUP CO., LTD. | General Manager of Production Logistics Department | February 01, 2023 | Yes | |
| Liu Yanchang | CHINA FAW GROUP CO., | Full-time external director, convener/team | July 01, 2022 | Yes |
| LTD. | leader of subsidiary of Financial Management Department (Office of the Board of Directors) |
Position in other organizations?Applicable □Not applicable
| Name of Employees | Name of Other Organizations | Position in Other Organizations | Start Date of Tenure | Ending Date of Tenure | Whether Remuneration and Allowance are Received from Other Organizations |
| Han Fangming | Chahar Institute, a think tank on foreign affairs and international relations | President | October 01, 2009 | Yes | |
| Mao Zhihong | Jilin University | Director, Professor and Doctoral Supervisor of the Department of Accounting, School of Business and Management | November 01, 2000 | Yes | |
| Dong Zhonglang | Zhuhai Yinshan Capital Equity Investment Management Co., Ltd. | Managing Partner | May 01, 2017 | Yes |
Penalties imposed by securities regulatory authorities in the past three years on directors, supervisorsand senior executives currently in office or leaving office in the reporting period
□Applicable ?Not applicable
3. Remuneration of Company's Directors, Supervisors and Senior ExecutivesDecision-making procedure, determination basis and actual payment of remuneration for directors,supervisors and senior executives
| Decision-Making Process of Compensation of Directors, Supervisors and Senior Management | Only the remuneration for directors (excluding independent directors) and supervisors currently in office shall be paid, and the remuneration for directors and supervisors who have left the office shall be paid by their employers. The remuneration paid by the Company to relevant directors, supervisors and senior executives shall be determined by the |
| Board of Directors. | |
| Decision Basis of Compensation of Directors, Supervisors and Senior Management | For directors (except independent directors), supervisors and senior executives who receive remuneration from the Company, the annual salary system is implemented, mainly including annual base salary and annual performance salary. The annual performance salary is determined according to business performance, performance assessment and performance and other indicators of the Company in the reporting period. |
| Remuneration Paid to Directors, Supervisors and Senior Management | In the reporting period, a total of CNY 450,000 (tax inclusive) of allowances were paid to independent directors, and reasonable expenses (including travel expenses, office expenses, training expenses, etc.) required to attend the Company's board of directors, shareholders' meeting and exercise their functions and powers in accordance with relevant regulations can be reimbursed by the Company on actual circumstances. The remuneration paid to other directors, supervisors and senior executives other than the above personnel is CNY 15,575,900 (tax inclusive). |
Compensations of Directors, Supervisors and Senior Executives of the Company in the ReportingPeriodUnit: CNY 10,000
| Name | Gender | Age | Position | Employment Status | Total Pre-tax Compensation Received from the Company | Whether remuneration is obtained from related parties of the Company |
| Hu Hanjie | Male | 59 | Chairman of the Board | Departure from office | 161.98 | No |
| Wu Bilei | Male | 53 | Chairman of the Board | In-service | 129.09 | No |
| Li Sheng | Male | 47 | Director and General Manager | In-service | 151.24 | No |
| Zhang Guohua | Male | 51 | Director | In-service | 128.12 | No |
| Bi Wenquan | Male | 51 | Director | In-service | Yes | |
| Li Hongjian | Male | 51 | Director | Departure from office | Yes | |
| Liu Yanchang | Male | 60 | Director | In-service | Yes | |
| Han Fangming | Male | 57 | Independent director | In-service | 15 | No |
| Mao Zhihong | Male | 62 | Independent director | In-service | 15 | No |
| Dong Zhonglang | Male | 59 | Independent director | In-service | 15 | No |
| Wang Yanjun | Male | 60 | Chairman of Board of Supervisors | Departure from office | Yes | |
| Yan Feng | Male | 57 | Chairman of Board of Supervisors | In-service | Yes | |
| Xu Haigen | Male | 59 | Employee Supervisor | In-service | 105.58 | No |
| Wang Lijun | Male | 55 | Employee Supervisor | In-service | 118.36 | No |
| Duan Yinghui | Male | 53 | Employee Supervisor | In-service | 151.01 | No |
| Ren Ruijie | Male | 40 | Employee Supervisor | In-service | 110.24 | No |
| Yu Changxin | Male | 51 | Executive Deputy General Manager | In-service | 68.82 | No |
| Ji Yizhi | Male | 54 | Deputy General Manager | In-service | 135.32 | No |
| Tian Haifeng | Male | 51 | Deputy General Manager | In-service | 122.52 | No |
| Wang Jianxun | Male | 40 | Secretary of the Board of Directors | In-service | 175.31 | No |
| Total | -- | -- | -- | -- | 1,602.59 | -- |
Other situations
□Applicable ?Not applicable
VI. Performance of Duties by Directors in the Reporting Period
1. Information of the Board of Directors during the reporting period
| Session | Date | Date of Disclosure | Meeting Resolution |
| The 31st Meeting of the 9th Board of Directors | February 10, 2023 | February 11, 2023 | Reviewed and approved the Proposal on Estimating Daily Related Transaction Amount in 2023, the Proposal on Estimating the Amount of Financial Business with First Automobile Finance Co., Ltd. in 2023, the Proposal on Signing the Financial Services Framework Agreement with First Automobile Finance Co., Ltd. and the Proposal on Convening the First Extraordinary General Meeting of Shareholders in 2023. |
| The 32nd | March 31, | April 01, | Reviewed and approved the 2022 Business Summary |
| Meeting of the 9th Board of Directors | 2023 | 2023 | and 2023 Business Plan, the 2022 Work Report of the Board of Directors, the 2022 Final Financial Account and 2023 Financial Budget, the 2022 Annual Report and Its Summary, the Proposal on Asset Impairment Provision in 2022, the Asset Impairment Test Report on Major Asset Restructuring of the Company, the Report on the Risk Assessment of First Automobile Finance Co., Ltd., the 2022 Social Responsibility Report and ESG Report, the 2022 Profit Distribution Plan, the 2022 Internal Control Evaluation Report, the 2022 Work Report on Rule of Law Construction and Compliance Management, the 2022 Internal Audit Report, the 2022 Work Report on Internal Control Construction, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of Some Restricted Shares, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association, the Proposal on Amending Special Management System for Directors, Supervisors and Senior Executives to Hold and Buy Shares of the Company, the Proposal on Election of Non-independent Directors of the Tenth Board of Directors by the Board of Directors, the Proposal on Election of Independent Directors of the Tenth Board of Directors by the Board of Directors, the Proposal on Convening 2022 Annual Shareholders' Meeting, the Conveying Major Decision-making Arrangements and Guiding Principles of Important Meetings of the CPC Central Committee, the State Council and the SASAC, and listened to the Report on the Implementation of Resolutions of the Board of Directors, the Report on the Implementation of Authorization of the Board of Directors, the Report on the Implementation of Strategic Plans of the Company, the Report on Audit of Accounting Firm in 2022 and the Report on Work of Independent Directors in 2022. |
| The 1st Meeting of the 10th Board of Directors | April 24, 2023 | April 25, 2023 | Reviewed and approved the Proposal on Electing Chairman of the Company, the Proposal on Electing Members of the Strategy Committee of the Board of Directors, the Proposal on Electing Members of the Audit and Risk Control Committee of the Board of Directors, the Proposal on Electing Members of the Remuneration and Appraisal Committee of the Board of Directors, the Proposal on Appointing General Manager of the Company, the Proposal on Appointing Executive Deputy General Manager of the Company, |
| the Proposal on Appointing Deputy General Manager of the Board of Directors, the Proposal on Appointing Secretary of the Board of Directors and the Proposal on Appointing Securities Affairs Representative of the Company. | |||
| The 2nd Meeting of the 10th Board of Directors | April 25, 2023 | April 28, 2023 | Reviewed and approved the Report on the First Quarter of 2023, the Proposal on Releasing Restriction on Sales of Part of Restricted Shares, and the Conveying Major Decision-making Arrangements and Guiding Principles of Important Meetings of the CPC Central Committee, the State Council and the SASAC, and listened to the Report on Operation in the First Quarter of 2023 and the Report on the Implementation of Resolutions of the Board of Directors in the First Quarter of 2023. |
| The 3rd Meeting of the 10th Board of Directors | May 29, 2023 | Reviewed and approved the 2022 Performance Evaluation Results of Senior Executives, 2022 Performance Assessment and Remuneration Encashment Plan for Senior Executives, 2023 Total Salary and Labor Cost Plan, 2023 Performance Appraisal Indicator Plan, 2023 Performance Assessment Indicator Plan for Senior Executives, 2023 Base Salary Plan for Senior Executives, and Management Measures for Authorization of Board of Directors of FAW Jiefang Group Co., Ltd. (Trial). | |
| The 4th Meeting of the 10th Board of Directors | July 19, 2023 | June 20, 2023 | Reviewed and approved the Proposal on the Company's Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company's Plan to Issue A Shares to Specific Objects in 2023, the Proposal on the Plan to Issue A Shares to Specific Objects in 2023, the Proposal on Demonstration and Analysis Report on the Plan to Issue A Shares to Specific Objects in 2023, the Proposal on the Report on Use of Previously Raised Funds, the Proposal on Feasibility Analysis Report on Use of Funds Raised by Issuing A Shares to Specific Objects in 2023, the Proposal on Diluting Sight Return of the Company's Issuance of A Shares to Specific Objects, Taking Filling Measures and Commitments of Relevant Subjects in 2023, the Proposal on Shareholders' Return Plan of the Company in the Next Three Years (2023-2025), the Proposal on Requesting Shareholders' Meeting of the Company to Authorize Board of Directors to Handle Specific Matters Related to Issuance of A Shares to Specific Objects, and Proposal for Convening Shareholders' Meeting. |
| The 5th Meeting of the 10th Board of Directors | August 29, 2023 | August 31, 2023 | Reviewed and approved the Business Summary of First Half and Business Plan for Second Half of 2023, the Mid-year Adjustment Plan for Equity Investment Plan in 2023, the Mid-year Adjustment Plan for Fixed Assets Investment Plan in 2023, the Proposal on Land and House Expropriation of Subsidiaries, the Semi- |
| Annual Report of 2023 and Its Summary, the Proposal on Risk Assessment Report of First Automobile Finance Co., Ltd., the Proposal on Asset Impairment Provision in First Half of 2023, the Semi-Annual Work Report of Internal Audit in 2023, the Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association, the Proposal on Convening the Third Extraordinary Shareholders' Meeting in 2023, the Conveying Major Decision-making Arrangements and Guiding Principles of Important Meetings of the CPC Central Committee, the State Council and the SASAC, and listened to the Report on the Implementation of Resolutions of the Board of Directors, the Report on the Implementation of Authorization of the Board of Directors and the Report on the Implementation of Strategic Plans of the Company. | |||
| The 6th Meeting of the 10th Board of Directors | October 30, 2023 | October 31, 2023 | Reviewed and approved the Medium and Long-Term Development Plan of the Company (2024-2030), the Report of the Third Quarter of 2023, the Proposal on Electing Chairman of the Company, the Proposal on Electing Li Sheng as Non-independent Director of the Company, the Proposal on Appointing General Manager of the Company, the Conveying Major Decision-making Arrangements and Guiding Principles of Important Meetings of the CPC Central Committee, the State Council and the SASAC, and listened to the Report on Operation in the Third Quarter of 2023 and the Report on Implementing Resolutions of Meeting of the Board of Directors in the Third Quarter of 2023. |
| The 7th Meeting of the 10th Board of Directors | November 20, 2023 | November 21, 2023 | Reviewed and approved the Proposal on Renewing the Engagement of Financial Audit Institution, Proposal on Renewing the Engagement of Internal Control Audit Institution, the Proposal on Increasing the Estimate of Daily Related Transactions in 2023, the Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association and the Proposal on Convening the Fourth Extraordinary Shareholders' Meeting in 2023. |
| The 8th Meeting of the 10th Board of Directors | December 29, 2023 | December 30, 2023 | Reviewed and approved the Proposal on Increasing the Estimate of Daily Related Transactions in 2023. |
2. Attendance of Directors at the Meeting of the Board of Directors and Shareholders’ Meeting
| Attendance of Directors at the Meeting of the Board of Directors and the Shareholders’ Meeting | |||||||
| Name of Director | Number of Meetings of the Board of Directors to be Attended in the Reporting Period | Number of Meetings of the Board of Directors Attended in Person | Number of Meetings of the Board of Directors Attended via Communication | Number of Meetings of the Board of Directors Attended by Entrustment | Number of Absences from the Meeting of the Board of Directors | Failure to Attend the Meeting of the Board of Directors in Person for Two Consecutive Times or Not | Number of Shareholders’ Meetings Attended |
| Hu Hanjie | 8 | 4 | 4 | 0 | 0 | No | 2 |
| Wu Bilei | 10 | 4 | 6 | 0 | 0 | No | 5 |
| Li Sheng | 1 | 0 | 1 | 0 | 0 | No | 0 |
| Zhang Guohua | 10 | 3 | 6 | 1 | 0 | No | 4 |
| Bi Wenquan | 10 | 2 | 6 | 2 | 0 | No | 1 |
| Li Hongjian | 8 | 4 | 4 | 0 | 0 | No | 2 |
| Liu Yanchang | 10 | 4 | 6 | 0 | 0 | No | 5 |
| Han Fangming | 10 | 3 | 6 | 1 | 0 | No | 4 |
| Mao Zhihong | 10 | 4 | 6 | 0 | 0 | No | 5 |
| Dong Zhonglang | 10 | 4 | 6 | 0 | 0 | No | 4 |
Explanation on two consecutive absences from the Meeting of the Board of Directors in person: none
3. Objections Raised by Directors on Relevant Matters of the CompanyWhether the directors raise objections to relevant matters of the Company
□Yes ?No
In the reporting period, the directors did not raise any objection to the relevant matters of theCompany.
4. Additional Description of Performance of Duties by Directors
Whether the directors' relevant suggestions to the Company have been adopted?Yes □NoExplanation of Directors on Adoption or Failure to Adopt Relevant Suggestions to the CompanyIn 2023, all directors of the Company worked in strict accordance with the Company Law,Securities Law, the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and theArticles of Association and other laws and regulations, and performed their duties faithfully anddiligently in a responsible attitude towards all shareholders. Actively attended the meetings of theBoard of Directors and the Shareholders' Meeting, carefully reviewed proposals, and put forwardprofessional opinions and suggestions on the development strategy, regular reports, relatedtransactions and other matters during the reporting period, so as to safeguard the legitimate rights andinterests of the Company and shareholders and ensure the standard operation and sustainabledevelopment of the Company.VII. Conditions of Special Committees under the Board of Directors in the Reporting Period
| Name of Committee | Members | Number of Meetings Held | Date | Contents | Important Comments and Suggestions Put Forward | Other Performance of Duties | Details of Objections |
| Audit and Risk Control Committee | Mao Zhihong, Han Fangming, Liu Yanchang. | 3 | March 20, 2023 | Reviewed the 2022 Financial Audit Report of the Company, the 2022 Internal Control Evaluation Report, the 2022 Work Report on Rule of Law Construction and | All proposals were agreed. | N/A |
| Compliance Management, the 2022 Internal Audit Report and the 2022 Work Report on Internal Control Construction. | ||||||
| April 27, 2023 | Reviewed the First Quarter Report of 2023 and the First Quarter Report on Internal Audit of 2023. | All proposals were agreed. | N/A | |||
| August 25, 2023 | The 2023 Semi-annual Report and Its Summary and 2023 Semi-annual Work Report of Internal Audit were deliberated. | All proposals were agreed. | N/A | |||
| Mao Zhihong, Liu Yanchang and Han Fangming authorized Mao Zhihong to exercise voting rights on their behalf for work reasons. | 1 | October 27, 2023 | Reviewed the Third Quarter Report of 2023 and the Third Quarter Report on Internal Audit of 2023 | All proposals were agreed. | N/A | |
| Mao Zhihong, Han | 1 | November 20, 2023 | Reviewed the Proposal on | All proposals were | N/A |
Fangming, LiuYanchang.RenewingtheEngagementof theFinancialAuditInstitutionand theProposal onRenewingtheEngagementof InternalControlAuditInstitutions
| agreed. | |||||||
| Remuneration and Appraisal Committee | Dong Zhonglang, Mao Zhihong, Liu Yanchang. | 3 | March 31, 2023 | Reviewed the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of Some Restricted | Approved the proposal. | N/A |
| Shares | |||||||
| April 27, 2023 | Reviewed the Proposal on Releasing Restrictions on Sales of Part of Restricted Shares. | Approved the proposal. | N/A | ||||
| May 29, 2023 | The performance evaluation results of senior executives, performance assessment indicators of senior executives and other topics were deliberated. | All proposals were agreed. | N/A | ||||
| Strategy Committee | Hu Hanjie, Wu Bilei, Li Hongjian, Han Fangming, Dong Zhonglang. | 1 | June 19, 2023 | Reviewed the Proposal on the Company's Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company's Plan to Issue A Shares to Specific Objects in 2023, the Proposal on the Plan of FAW Jiefang Group Co., Ltd. to Issue A Shares to Specific Objects in 2023, the Proposal on | All proposals were agreed. | N/A |
| Subjects in 2023, the Proposal on Shareholders' Return Plan of the Company in the Next Three Years (2023-2025), and the Proposal on Requesting General Meeting of Shareholders of the Company to Authorize Board of Directors to Handle Specific Matters Related to Issuance of A Shares to Specific Objects. | |||||||
| Strategy Committee | Wu Bilei, Li Hongjian, Han Fangming and Dong Zhonglang. Hu Hanjie authorized Wu Bilei to exercise voting rights on his behalf for work reasons. | 1 | August 25, 2023 | The 2023 Mid-year Adjustment Scheme of Equity Investment Plan and 2023 Mid-year Adjustment Scheme of Fixed Assets Investment Plan were deliberated. | All proposals were agreed. | N/A | |
| Strategy Committee | Hu Hanjie, Wu Bilei and Dong | 1 | October 27, 2023 | Reviewed the Medium and Long-term | Approved the proposal. | N/A |
| Zhonglang. Li Hongjian and Han Fangming authorized Hu Hanjie and Dong Zhonglang to exercise voting rights on their behalf respectively for work reasons. | Development Plan of the Company (2024-2030). |
VIII. Working Condition of the Board of SupervisorsWhether the Board of Supervisors has found any risks in the Company's supervision activities in thereporting period
□Yes ?No
The Board of Supervisors has no objection to the supervision matters in the reporting period.IX. Employees of the Company
1. Number, Specialty Composition and Education Level of Employees
| Number of on-the-job employees of the parent company at the end of the reporting period (person) | 158 |
| Number of on-the-job employees of main subsidiaries at the end of the reporting period (person) | 19,846 |
| Total number of on-the-job employees at the end of the reporting period (person) | 20,004 |
| Total number of employees receiving compensation in the current period (person) | 20,983 |
| Number of retired employees whose expenses shall be borne by the parent company and major subsidiaries (person) | 15 |
| Specialty composition | |
| Category | Number (person) |
| Production personnel | 11,739 |
| Sales personnel | 1,079 |
| Technicians | 5,925 |
| Financial personnel | 340 |
| Administrative personnel | 921 |
| Total | 20,004 |
| Education background | |
| Category | Number (person) |
| Doctor's degree | 63 |
| Master's degree | 1,619 |
| Bachelor's degree | 8,129 |
| Junior college degree | 4,357 |
| High school and below | 5,836 |
| Total | 20,004 |
2. Compensation Policy
According to the requirements of relevant national labor laws, regulations and policies, theCompany adheres to the principle of "fairness, impartiality and openness" and combines the actualsituation of the Company to continuously improve and perfect the performance salary system of theCompany. In order to fully mobilize the enthusiasm of employees and improve their workperformance, based on the post contribution salary system and oriented by value creation, theCompany controls the total salary by "salary package", links the salary distribution to the Company’smonthly operating indicators and the employees’ performance, with a focus on the timeliness ofincentives and constraints and the matching between bonuses and contributions, and continuouslyimplements special rewards and annual rewards, effectively giving play to the leverage role of salaryincentives. In addition, the Company has signed labor contracts with employees in accordance withlaws and regulations, paid various social insurance such as basic endowment insurance, basicmedical insurance, work-related injury insurance and unemployment insurance as well as housingprovident funds, actively implemented supplementary endowment insurance and supplementarymedical insurance systems, established and improved welfare systems, thus protecting the legitimaterights and interests of employees in all aspects. All the expenses of retired employees are included inthe social security system.
3. Training Plan
In 2023, the Company's talent training and cultivation were carried out targetedly andsystematically, focusing on solving business pain points and difficulties and meeting the Company'sand employees' development needs, with the orientation towards supporting the Company's strategicdevelopment and the goal of achieving the annual operation targets. The Company completed a totalof 6,813 training sessions throughout the year, with 258 credits per person.
First, we focused on the improvement of the core competence of employees and carried outtraining according to different levels and types. In terms of leadership, we focused on the training ofmanagement cadres, the construction of grass-roots teams, and the rapid transformation of newmanagers, and continued to carry out standard leadership training plans such as the piloteerdevelopment plan, peak climber cultivation plan, "Sailing" and "Peiyuan", and the training onleadership improvement of China Business Executives Academy, Dalian, for more than 100 sessionsin total. For training on professional ability, we arranged professional training, technical lectures andother training targeting at business transformation and development of the Company and theemployees' job competence, for more than 5,000 sessions. For skill training, we provided more than700 training sessions on the improvement of job operation skills, on-site problem solving and on-sitemanagement ability, such as standardized empowerment of operation heads and team leaders,practice for basic skill improvement, quality defect identification, skill level identification, etc. Forcertification of professional skill levels, we completed the certification of more than 100 newcertification reviewers, 50 junior workers, 160 intermediate workers, 80 senior workers, 60technicians, and more than 20 senior technicians.Second, we focused on the strategic transformation and development of the Company andimplemented special empowerment. In terms of digital and intelligent transformation, we arrangedfull-time courses for training on transformation, targeting digital-related positions. We also providedmore than 70 training sessions on data governance, data analysis and application of digital tools. Interms of IPD reform, we arranged workshops on the role cognition and model of PDT managers, andthe training on product planning of PDT team resource pool, main process, project management, etc.for nearly 50 sessions. In terms of new energy, we provided nearly 40 training sessions on keytechnologies of new energy, and the engine, power battery and electric control of new energy, etc. Interms of overseas development, we provided more than 50 training sessions on international legalaffairs, finance and overseas security, overseas products and marketing strategies. In terms of
intelligent manufacturing, we provided more than 10 training sessions on intelligent factories,blockchain and combined optimization algorithms.
4. Labor Outsourcing
□Applicable ?Not applicable
X. Profit Distribution and Transfer from Capital Reserve to Share Capital of the CompanyProfit distribution policies in the reporting period, especially the formulation, implementation oradjustment of cash dividend policy?Applicable □Not applicable
On June 19, 2023, the 4th Meeting of the 10th Board of Directors of the Company reviewed andapproved the Proposal on Shareholders' Return Plan of the Company in the Next Three Years (2023-2025), which was reviewed and approved by the Second Extraordinary Shareholders' Meeting in2023 held on July 18, 2023. For details, please refer to the Shareholders' Return Plan of theCompany in the Next Three Years (2023-2025) published on June 20, 2023 on CNINFO(http://www.cninfo.com.cn).
| Special Description of Cash Dividend Policy | |
| Whether the provisions of the Articles of Association or the requirements of resolutions of the Shareholders’ Meeting are met: | Yes |
| Whether the dividend standard and proportion are definite and clear: | Yes |
| Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether the independent directors have fulfilled their duties and played their due roles: | Yes |
| In case no cash dividends are distributed, we shall disclose the specific reasons and the subsequent actions to be taken to improve the investor's return level: | Yes |
| Whether the minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected: | Yes |
| Whether the conditions and procedures are compliant and transparent when the cash dividend policy is adjusted or changed: | N/A |
The Company made profits in the reporting period and the parent company had a positive profitavailable for shareholders, but no cash dividend distribution plan was proposed
□Applicable ?Not applicable
Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting Period
?Applicable □Not applicable
| Number of bonus shares given per 10 shares (share) | 0 |
| Number of distributed dividends per 10 shares (CNY) (tax inclusive) | 1.50 |
| Share capital base for distribution plan (share) | 4,636,485,668 |
| Amount of cash dividends (CNY) (tax inclusive) | 695,472,850.20 |
| Amount of cash dividends paid by other means (such as share repurchase) (CNY) | 0.00 |
| Total amount of cash dividends (including by other means) (CNY) | 695,472,850.20 |
| Distributable profits (CNY) | 7,083,209,394.76 |
| Proportion of total amount of cash dividends (including by other means) in the total amount for profit distribution | 100% |
| Cash dividends | |
| Others | |
| Note on details of schedule of profit distribution or transfer of capital reserve to equity | |
| Grant Thornton Certified Public Accountants (Special General Partnership) confirmed after audit that the Company's parent company realized a net profit of CNY 321,587,144.29 in 2023, plus the undistributed profit of CNY 6,793,780,964.90 in the previous year, and less the provision for statutory surplus reserve of CNY 32,158,714.43 this year, the actual profit available for distribution for shareholders this year is CNY 7,083,209,394.76. The 2023 annual profit distribution plan of the Company is as follows: Based on the 4,636,485,668 shares of the Company, a cash dividend of CNY 1.5 (tax inclusive) will be distributed to all shareholders for every 10 shares they hold; the cash dividends to be distributed will reach CNY 695,472,850.20 (tax inclusive), and the remaining undistributed profits will be carried forward to the next accounting year. The Company does not convert its capital reserves into share capital. For any change to the total share capital of the Company due to the equity incentive plan before the implementation of the distribution plan, the cash dividend of CNY 1.50 (tax inclusive) will be distributed to all shareholders per 10 shares based on the total share capital registered on the date of record when the profit distribution plan is implemented in the future, and the specific amount will be subject to the actual distribution. This distribution plan is subject to the review and approval of the 2023 annual shareholders' meeting before implementation. | |
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Planor Other Employee Incentive Measures?Applicable □Not applicable
1. Equity incentive
(1) On November 13, 2020, the Company held the 9th meeting of the 9th Board of Directorsand the 8th meeting of the 9th Board of Supervisors respectively to deliberate and adopt theRestricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Abstract andother proposals. The relevant proposals were deliberated and adopted at the First ExtraordinaryShareholders’ Meeting of 2021 held by the Company on January 11, 2021.
(2) On January 15, 2021, the Company held the 12th Session of the 9th Meeting of the Board ofDirectors and the 11th Session of the 9th Meeting of the Board of Supervisors respectively, andreviewed and approved the Proposal on Adjusting the List of the First Batch of Incentive Objects andthe Number of Grants of the First Restricted Share Incentive Plan and the Proposal on GrantingRestricted Shares to the Incentive Objects of the First Restricted Share Incentive Plan for the FirstTime. On February 1, 2021, the Company disclosed the Announcement on the Completion of theFirst Grant Registration of Phase I Restricted Share Incentive Plan, in which the restricted shares inthe incentive plan were first granted to 319 persons, totaling 40,987,700 shares, with a grant price ofCNY 7.54 per share. The restricted shares granted were listed on February 5, 2021.
(3) On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors andthe 19th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the Proposal onGranting Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan toIncentive Objects, Proposal on Adjusting the Repurchase Price of Restricted Shares in the Phase IRestricted Share Incentive Plan, Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan and other relevant proposals. On January 6,2022, the Company disclosed the Announcement on Completion of Registration of Grant ofReserved Part of Restricted Shares in Phase I Restricted Share Incentive Plan, in which reserved partof restricted shares in the incentive plan were granted to 33 persons, totaling 3,721,600 shares, with agrant price of CNY 6.38 per share. The restricted shares granted were listed on January 10, 2022. OnJanuary 17, 2022, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares, in which all restricted shares granted to 2 incentive objectsbut not yet released, totaling 260,857 shares, with a repurchase price of CNY 7.04 per share.
(4) On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors andthe 23rd meeting of the 9th Board of Supervisors respectively to deliberate and adopt the Proposal onAdjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share Incentive Plan
and Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan. On September 16, 2022, the relevant repurchase and cancellation proposalswere deliberated and adopted at the Second Extraordinary Shareholders’ Meeting of 2022 held by theCompany. On November 14, 2022, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares, in which all or some restricted sharesgranted to 6 incentive objects but not yet released were repurchased and canceled, totaling 789,711shares, with a repurchase price of CNY 6.39/share.
(5) On October 28, 2022, the Company held the 28th Meeting of the 9th Board of Directors andthe 24th Meeting of the 9th Board of Supervisors respectively to deliberate and approve the Proposalon Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share IncentivePlan. The Proposal was subsequently deliberated and approved at the 3rd Extraordinary Shareholders’Meeting of the Company in 2022. It was agreed to repurchase and cancel a total of 1,359,247restricted stocks, either in full or in part, that were granted but not yet released from restrictions tothe original 11 incentive recipients; on January 17, 2023, The Company issued the Announcement onCompletion of Repurchase and Cancellation of Some Restricted Shares on CNINFO(http://www.cninfo.com.cn).
(6) On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directorsand the 26th meeting of the 9th Board of Supervisors respectively to deliberate and approve theProposal on the Achievement of Unlocking Conditions in the First Release Period of the RestrictedShares Firstly Granted in the Phase I Restricted Incentive Plan, agreeing that the Company handledthe unlocking of 13,042,347 shares of 311 incentive objects meeting the unlocking conditions duringthe first release period of restricted shares granted for the first time in accordance with the relevantprovisions of the restricted share incentive plan. On February 3, 2023, the Company disclosed theIndicative Announcement on Listing and Circulation of Unlocked Shares in the First Release Periodof the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan on CNINFO(http://www.cninfo.com.cn), and the unlocked restricted shares will be listed and circulated onFebruary 6, 2023. At the 30th Meeting of the 9th Board of Directors and the 26th Meeting of the 9thBoard of Supervisors, the Company reviewed and approved the Proposal on the Repurchase andCancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed torepurchase and cancel all or part of 723,435 restricted stock that had been granted to the original sixincentive targets but not lifted the restriction for sales. On April 28, 2023, the Company issued the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares onCNINFO (http://www.cninfo.com.cn).
(7) On March 31, 2023, the Company held the 32nd meeting of the 9th Board of Directors andthe 28th meeting of the 9th Board of Supervisors respectively, deliberated and approved the Proposalon Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase IRestricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the FirstRelease Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the RestrictedSales and Repurchase and Cancellation of Some Restricted Shares, agreeing to repurchase and cancel327 restricted shares of incentive objects that do not meet the release conditions. The total number ofshares repurchased was 13,909,890. The Proposal was deliberated and approved at the Company's2022 Annual Shareholders’ Meeting held on April 24, 2023. On June 30, 2023, the Company issuedthe Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares onCNINFO (http://www.cninfo.com.cn).
(4) On April 27, 2023, the Company held the 2nd meeting of the 10th Board of Directors andthe 2nd meeting of the 10th Board of Supervisors respectively to deliberate and approve the Proposalon Lifting the Trading Restrictions of Partial Restricted Shares. A total of 4 incentive objects met theconditions for lifting the trading restrictions this time, and 64,954 shares were lifted. On May 15,2023, the Company issued the Prompt Announcement on Lifting Sales Restrictions and ListingCirculation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn), and the unlockedrestricted shares were listed and circulated on May 16, 2023.
(9) On August 29, 2023, the Company held the 5th Meeting of the 10th Board of Directors andthe 4th Meeting of the 10th Board of Supervisors respectively, and deliberated and adopted theProposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan, which was reviewed and approved at the Third Extraordinary Shareholders'Meeting in 2023, and agreed to repurchase and cancel all or part of 333,855 restricted stocks that hadbeen granted to the original 8 incentive targets but had not been lifted the restriction for sales. OnNovember 29, 2023, the Company published the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(10) On November 20, 2023, the Company held the 7th Meeting of the 10th Board of Directorsand the 6th Meeting of the 10th Board of Supervisors respectively, and deliberated and adopted theProposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan, which was reviewed and approved at the Fourth Extraordinary Shareholders'Meeting in 2023, and agreed to repurchase and cancel all or part of 512,807 restricted stocks thathave been granted to 10 incentive targets but have not been lifted the restriction for sales. On March28, 2024, the Company published the Announcement on Completion of Repurchase and Cancellationof Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(11) On March 28, 2024, the Company held the 11th Meeting of the 10th Board of Directorsand the 10th Meeting of the 10th Board of Supervisors respectively, and reviewed and approved theProposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period ofRestricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved forGranting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of SomeRestricted Shares, and agreed to buy back and cancel the restricted stocks of 299 objects failing tofulfill the conditions for lifting the restriction for sales, 12,621,954 shares in total.For details of the above proposals, please refer to the relevant announcements published by theCompany in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
Equity Incentives Obtained by Directors and Senior Executives of the Company?Applicable □Not applicableUnit: share
| Name | Position | Number of Stock Options Held at the Beginning of the Year | Number of Newly Granted Stock Options in the Reporting Period | Number of Exercisable Shares in the Reporting Period | Number of Exercised Shares in the Reporting Period | Exercise Price of Exercised Shares in the Reporting Period (CNY/share) | Number of Stock Options Held at the End of the Period | Market Price at the End of the Reporting Period (CNY/share) | Number of Restricted Shares Held at the Beginning of the Period | Number of Unlocked Shares in the Current Period | Number of Newly Granted Restricted Shares in the Reporting Period | Grant Price of Restricted Shares (CNY/share) | Number of Restricted Shares Held at the End of the Period |
| Wu Bilei | Chairman of the Board | 8.50 | 228,552 | 75,422 | 7.54 | 77,708 | |||||||
| Li Sheng | General Manager | 8.50 | 192,778 | 63,617 | 7.54 | 65,544 | |||||||
| Zhang Guohua | Director | 8.50 | 228,493 | 75,403 | 7.54 | 77,687 | |||||||
| Ji Yizhi | Deputy General Manager | 8.50 | 192,778 | 63,617 | 7.54 | 65,544 | |||||||
| Tian | Deputy | 8.50 | 192,778 | 63,617 | 7.54 | 65,544 |
| Haifeng | General Manager | ||||||||||||
| Wang Jianxun | Secretary of the Board of Directors | 8.50 | 192,778 | 63,617 | 7.54 | 65,544 | |||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 1,228,157 | 405,293 | 0 | -- | 417,571 |
Evaluation mechanism and incentives of senior executivesThe Company has formulated corresponding plans for the evaluation and incentive mechanism of senior executives, and implemented a fair andtransparent performance management system. The remuneration of senior executives shall be combined with the Company's performance and individualperformance. The System and Reform Management Department of the Company shall be responsible for the daily evaluation, and the Remuneration andAppraisal Committee of the Board of Directors shall conduct a comprehensive evaluation.
2. Implementation of employee stock ownership plan
□Applicable ?Not applicable
3. Other employee incentives
□Applicable ?Not applicable
XII. Establishment and Implementation of Internal Control System in the Reporting Period
1. Construction and Implementation of Internal Control
During the reporting period, adhering to the structure guidance and based on transformationprojects, we optimized the process structure of R&D and marketing areas, and carried out thehierarchical construction based on the structural planning documents; interpreted the Basic Standardfor Enterprise Internal Control and 18 supporting guidelines and other related requirements, andidentified its implementation against the documents. We also promoted the company-wide processoperation, organized the review, updating and optimization of business processes and systems, andmonitored the implementation, to ensure the business is carried out according to the process, reducethe cost of rectification, and improve the operational efficiency, so that we can ensure theappropriateness, sufficiency and effectiveness of the internal control system construction, andimprove management and optimize the independent cycle of the system.
2. Specific information on major internal control deficiencies found during the reportingperiod
□Yes ?No
XIII. Management and Control of Subsidiaries by the Company in the Reporting Period
| Company Name | Integration Plan | Integration Progress | Problems in Integration | Solutions Taken | Resolution Progress | Follow-up Resolution Plan |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
| Disclosure Date of Full Text of Internal Control Evaluation Report | March 30, 2024 |
| Disclosure Index of Full Text | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=00080 |
| of Internal Control Evaluation Report | 0&orgId=gssz0000800&sjstsBond=false#latestAnnouncement | ||
| Proportion of the Total Assets of the Unit Included in the Evaluation Scope to the Total Assets in the Company's Consolidated Financial Statements | 100.00% | ||
| Proportion of the Unit Operating Income Included in the Evaluation Scope to the Operating Income in the Company's Consolidated Financial Statements | 100.00% | ||
| Deficiency Identification Standard | |||
| Category | Financial report | Non-financial Report | |
| Qualitative Criteria | Major deficiencies: The accounting firm issues the audit report with a disclaimer of opinion or an adverse opinion to the Company. Significant deficiencies: The accounting firm issues the auditor report with a qualified opinion to the Company; and the accounting firm issues the auditor report with a disclaimer of opinion or an adverse opinion to the Company. General deficiencies: The accounting firm issues the auditor report with a qualified opinion to the Company. | Major deficiencies: fraudulent behaviors of directors, supervisors or corporate leaders of the Company; serious violation of national laws, regulations or normative documents by the Company; violation of decision-making procedures by the Company, resulting in major decision-making errors. Significant deficiencies: fraudulent behaviors of the main responsible persons of each unit of the Company; serious violation of national laws, regulations or normative documents by the company; violation of decision-making procedures by the company, resulting in decision-making errors. General deficiencies: fraudulent behaviors of other personnel of the Company; other control deficiencies that do not constitute major or significant deficiencies. | |
| Quantitative Criteria | Identification criteria for internal control deficiencies related to assets and liabilities Major deficiencies: misstated (including potential) amount ≥ 5‰ of the total assets at the end of the consolidated balance sheet of the | It is determined based on the amount of asset losses caused by internal control failure, and the standards are as follows: Major deficiencies: causing asset | |
| previous year; Significant deficiencies: 3‰ of the total assets at the end of the consolidated balance sheet of the previous year ≤ misstated (including potential) amount < 5‰ of the total assets at the end of the consolidated balance sheet of the previous year; General deficiencies: other control deficiencies except for major and significant deficiencies. Identification criteria for internal control deficiencies related to profits Major deficiencies: misstated (including potential) amount ≥ 5‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company; Significant deficiencies: 3‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company ≤ misstated (including potential) amount < 5‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company; General deficiencies: other control deficiencies except for major and significant deficiencies. | losses of CNY 10,000,000 and more; Significant deficiencies: causing asset losses of less than CNY 10,000,000 and greater than or equal to CNY 5,000,000; Minor deficiencies: causing asset losses of less than CNY 5,000,000. | ||
| Number of Major Deficiencies in Financial Report (Nr.) | 0 | ||
| Number of Major Deficiencies in Non-financial Report (Nr.) | 0 | ||
| Number of Significant Deficiencies in Financial Report (Nr.) | 0 | ||
| Number of Significant Deficiencies in Non-financial Report (Nr.) | 0 | ||
2. Internal Control Audit Report
?Applicable □Not applicable
| Deliberations Paragraph in Internal Control Audit Report | |
| In our opinion, FAW Jiefang maintained effective internal control over financial reporting in all material aspects as of December 31, 2023 in accordance with the Basic Specification for Enterprise Internal Control and relevant regulations. | |
| Disclosure of Internal Control Auditor Report | Disclosure |
| Disclosure Date of Full Text of Internal Control Audit Report | March 30, 2024 |
| Disclosure Index of Full Text of Internal Control Audit Report | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latest |
| Announcement | |
| Opinion Type of Internal Control Audit Report | Standard unqualified opinion |
| Whether there are major deficiencies in the non-financial report | No |
Whether the accounting firm issues the internal control audit report with a non-standard opinion
□Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the Board of Directors?Yes □NoXV. Rectification of Problems Found in the Self-inspection of the Special Action for Governance ofListed Companies: none
Section V Environmental and Social ResponsibilitiesI. Major Environmental Protection IssuesWhether the listed company and its subsidiaries are key pollutant discharging entities announced bythe environmental protection authority?Yes □NoEnvironmental protection related policies and industry standards
The company strictly abides by the Environmental Protection Law of the People's Republic ofChina, the Law of the People's Republic of China on Environmental Impact Assessment, theRegulations on Environmental Protection Management of Construction Projects, the Law of thePeople's Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of thePeople's Republic of China on the Prevention and Control of Water Pollution, the Law of thePeople's Republic of China on the Prevention and Control of Noise Pollution, the Law of thePeople's Republic of China on the Prevention and Control of Environmental Pollution by SolidWastes, the Law of the People's Republic of China on the Prevention and Control of Soil Pollution,the Law of the People's Republic of China on the Promotion of Clean Production, the Measures forthe Administration of Pollutant Discharge Permits, the Environmental Protection Tax Law of thePeople's Republic of China, the Measures for the Administration of the List of Key Units ofEnvironmental Supervision, the Measures for the Administration of Legal Disclosure ofEnvironmental Information of Enterprises, the Measures for the Administration of Hazardous WasteTransfer and other relevant laws and regulations; and the Integrated Emission Standard of AirPollutants (GB16297-1996), the Integrated Wastewater Discharge Standard (GB8978-1996), theEmission Standard of Industrial Enterprises Noise at Boundary (GB12348-2008), the Standard forPollution Control on Hazardous Waste Storage (GB18597-2023), the Technical Guidelines forDeriving Hazardous Waste Management Plans and Records (HJ1259-2022), the TechnicalSpecifications for Acceptance of Environmental Protection Facilities for Completed ConstructionProjects - Automobile Manufacturing Industry (HJ 407-2021), and other national and industrystandards.Administrative licensing for environmental protection
The Company strictly implemented the system of "environmental impact assessment" and"simultaneous design, construction and operation" when implementing the projects. All key pollutantdischarging entities shall apply for pollutant discharge permits according to legal provisions, andstrictly implement the pollutant discharge permit system.
| S/N | Name of Unit | Application (Renewal) Date of Pollutant Discharge Permit | Pollutant Discharge Permit No. | Validity Period (Year) |
| 1 | Truck Factory of FAW Jiefang Automotive Co., Ltd | December 30, 2022 | 91220101743028725R001R | 5 |
| 2 | Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | July 16, 2022 | 91510114746407720B001V | 5 |
| 3 | Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | July 21, 2023 | 91510681MABQ7AKG4Y001V | 5 |
| 4 | Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | December 31, 2021 | 91220101571131661N001Q | 5 |
| 5 | Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | December 31, 2021 | 91220101571131661N002V | 5 |
| 6 | Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | January 09, 2023 | 91220108MA170MRB74001V | 5 |
| 7 | FAW Jiefang (Qingdao) Automotive Co., Ltd. | December 29, 2023 | 91370200163567343M001V | 5 |
| 8 | Engine Branch of FAW Jiefang Automotive Co., Ltd. | December 27, 2022 | 912201017561635719001Q | 5 |
| 9 | Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | October 05, 2021 | 91320200748159222H001Q | 5 |
| 10 | Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | June 19, 2023 | 91320206330969017N001C | 5 |
| 11 | FAW Jiefang Dalian Diesel Engine Co., Ltd. | October 09, 2022 | 91210213717880308K001U | 5 |
Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
| Name of Company or Subsidiary | Types of Main Pollutants and Specific Pollutants | Names of Main Pollutants and Specific Pollutants | Discharge Mode | Number of Discharge Outlets | Distribution of Discharge Outlets | Discharge concentration/intensity | Enforced pollutant discharge standard | Total Discharge | Total Approved Discharge | Excessive Discharge |
| Truck Factory of FAW Jiefang Automotive Co., Ltd | Wastewater | COD | Continuous or intermittent discharge | 4 | One for frame, cab and non-metal coating respectively, and one for general domestic sewage outlet | 137.6mg/L | 800mg/L | 24.6043 t | 630.104 t | No excessive discharge |
| Truck Factory of FAW Jiefang Automotive Co., Ltd | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 71 | Frame, cab, roof of non-metallic coating workshop | 2.59mg/m? | 120mg/m? | 92.6441 t | 335.4 t | No excessive discharge |
| Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Southeast of the Company | 41.97mg/L | 500mg/L | 0.6068 t | 21.3 t | No excessive discharge |
| Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 1 | Roof of coating workshop | 1.64mg/m? | 60mg/m? | 33.3849 t | 75.91 t | No excessive discharge |
| Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Northwest corner of the Company | 40.85mg/L | 500mg/L | 0.1537 t | 40.8469 t | No excessive discharge |
| Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 15 | Roof of Painting Workshop and General Assembly Workshop | 4.68mg/m? | 60mg/m? | 2.3869 t | 16.5208 t | No excessive discharge |
| Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 2 | One in the northwest corner of substation one workshop and one in the southwest corner of substation two workshop | 19mg/L | 500mg/L | 1.1134 t | 10 t | No excessive discharge |
| Transmission Branch (Transformation | Exhaust gas | Non-methane | Continuous | 5 | Four for No. 1 workshop and | 8.73mg/m? | 120mg/m? | 2.2615 t | -- | No excessiv |
| Factory) of FAW Jiefang Automotive Co., Ltd. | hydrocarbon | discharge during production | one for the south side outside No. 1 workshop | e discharge | ||||||
| Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 6 | Two for No. 1, No. 2 and No. 3 workshops respectively | 21mg/L | 500mg/L | 1.3774 t | -- | No excessive discharge |
| Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 20 | Eight for No. 1 workshop, seven for No. 2 workshop, and five for No. 3 workshop | 16.01mg/m? | 120mg/m? | 11.0669 t | -- | No excessive discharge |
| Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | South gate of sewage treatment station | 50mg/L | 500mg/L | 1.3724 t | 4.575 t | No excessive discharge |
| Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 12 | Roof of coating and welding workshop of the Company | 3.25mg/m? | 120mg/m? | 10.25 t | 49.5 t | No excessive discharge |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent | 6 | Outside the sewage treatment station of the | COD, 62.3mg/L Ammonia nitrogen, | COD, 500mg/L Ammonia nitrogen, | COD, 19.11 tons Ammonia nitrogen, | COD, 88.79 tons Ammonia nitrogen, | No excessive discharge |
| discharge | Company | 4.71mg/L | 45mg/L | 1.288 tons | 5.11 tons | |||||
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 87 | Roof of each workshop of the Company | 4.84mg/m? | 30mg/m? | 65.07 t | 164.98 t | No excessive discharge |
| Engine Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Intermittent discharge | 3 | Workshop roof | 1.84mg/m? | 120mg/m? | 0.0319 t | -- | No excessive discharge |
| Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 3 | One for west gate and two for south gate | 41mg/L | 500mg/L | 30.03 t | 243 t | No excessive discharge |
| Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 13 | Three for assembly workshop, five for the R&D Department, two for QA Department, two for processing workshop and one for hazardous waste warehouse | NOx, 89mg/m? Non-methane hydrocarbons, 1.13mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60mg/m? | NOx, 22.12 tons VOCs 0.74 tons | NOx, 27.2 tons VOCs 1.77 tons | No excessive discharge |
| Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 1 | North Gate 1 | 57mg/m? | 500mg/m? | 4.76 t | 79.15 t | No excessive discharge |
| Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 6 | Joint workshop | NOx, 79mg/m? Non-methane hydrocarbons, 1.89mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60mg/m? | NOx, 5.49 tons VOCs 0.67 tons | NOx, 26.137 tons VOCs 4.546 tons | No excessive discharge |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge | 1 | Outside the sewage treatment station of the Company | COD, 41mg/L Ammonia nitrogen, 4.8mg/L | COD, 300mg/L Ammonia nitrogen, 30mg/L | COD, 1.796 tons Ammonia nitrogen, 0.3534 tons | COD, 88.79 tons Ammonia nitrogen, 5.11 tons | No excessive discharge |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 5 | Roof of the Company's workshop | NOx, 88mg/m? Non-methane hydrocarbons, 0.33mg/m? | NOx, 240mg/m? Non-methane hydrocarbons, 120mg/m? | Nitrogen oxides: 1.163 t Non-methane hydrocarbons, 2.246 tons | Nitrogen oxides: 11.967 t Non-methane hydrocarbon 14.2 t | No excessive discharge |
Disposal of pollutants
(I) Wastewater treatment:
(1) The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatmentstations currently, namely, frame workshop sewage treatment station, coating workshop sewagetreatment station and non-metallic coating sewage treatment station. ① The frame sewage treatmentstation has a treatment capacity of 300 tons/day, and mainly treats wastewater before it enters theframe workshop; ②The cab coating workshop sewage treatment station has a treatment capacity of400 tons/day, and mainly treats the wastewater and painting wastewater before they enter theworkshop. ③ The non-metallic line sewage treatment station has a treatment capacity of 240tons/day and mainly treats the painting wastewater before it enters the production line. Thewastewater and domestic sewage pretreated by the above three sewage stations are discharged intothe FAW Integrated Sewage Treatment Plant and then discharged into the Changchun WesternSuburbs Sewage Treatment Plant after reaching the Class III standard in the Integrated WastewaterDischarge Standard (GB8978-1996).
(2) One sewage treatment station has been built in Chengdu Branch of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha total treatment capacity of 300 tons/day. The main treatment method is SBR process. All sewagestations can operate continuously and stably, and the sewage discharged up to standard enters theurban sewage treatment plant through the municipal pipe network for further treatment.
(3) The Sichuan Branch of FAW Jiefang Automotive Co., Ltd. has a wastewater treatmentstation that is used to treat the Company's production and domestic wastewater, has a total treatmentcapacity of 50 tons/hour, and adopts the physicochemical and biochemical treatment process. Thesewage station can operate continuously and stably. The industrial wastewater discharged aftermeeting the standard enters the urban sewage treatment plant through the municipal pipeline networkfor further treatment.
(4) The Transmission Branch (Transmission Factory) of FAW Jiefang Automotive Co., Ltd.uses the sewage treatment station in the Shaft Gear Park to treat the production wastewater of theCompany. The total treatment capacity of the sewage treatment station is 5 tons/hour, and it operatesstably. After being treated by the sewage station and reaching the standard, the industrial wastewateris discharged into the Changchun Western Suburbs Sewage Treatment Plant for further treatment.
(5) There is a sewage storage tank in each of the three workshops in the Transmission Branch(Axle Factory) of FAW Jiefang Automotive Co., Ltd., and the industrial wastewater of the No. 3Workshop is transferred to the sewage treatment station in Shaft Gear Park for treatment. The othertwo workshops signed a disposal contract with FAW to transfer the sewage by FAW tanks to thecomprehensive treatment workshop for complaint disposal every day.
(6) One sewage treatment station is built in Changchun Intelligent Bus Branch of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha treatment capacity of 300 tons/day. The physicochemical + biochemical treatment process isadopted, which can operate continuously and stably and discharge up to standard in real time. Thesewage discharged up to standard enters the urban sewage treatment plant through the municipal pipenetwork for further treatment.
(7) Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co., Ltd.They combine physicochemical process with biochemical process and are mainly used to treat thephosphating wastewater, electrophoresis wastewater and degreasing wastewater discharged fromdaily production of the coating workshop, as well as the daily domestic sewage of the Company. Thedesigned maximum daily treatment capacity of the station is 2160 tons/day. The treated wastewatermeets the index requirements of the Wastewater Quality Standards for Discharge to MunicipalSewers (GB/T31962-2015), and reaches the Reuse of Urban Recycling Water—Water QualityStandard for Urban Miscellaneous Use (GB/T18920-2020) after being further treated by the MBRimprovement equipment, thus reducing the sewage concentration significantly, increasing the reuseamount of recycled water, and saving water. The up-to-standard treated wastewater is discharged toJimo North Sewage Treatment Plant for advanced treatment through the sewage outlet.
(8) The industrial wastewater produced by the Engine Branch of FAW Jiefang Automotive Co.,Ltd. is transferred to the sewage treatment station of the Shaft Gear Park for treatment.
(9) One sewage treatment station is built in Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha total treatment capacity of 3,000 tons/day and 24-hour operation. The main treatment process isphysicochemical + biochemical treatment. The sewage station can operate continuously and stably,and realize real-time up-to-standard discharge. The up-to-standard discharged sewage enters theurban sewage treatment plant through the municipal pipe network for further treatment.
(10) One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory of FAWJiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater of theCompany, with a total treatment capacity of 1,000 tons/day and 24-hour operation. The maintreatment process is physicochemical + biochemical treatment. The sewage station can operatecontinuously and stably, and realize real-time up-to-standard discharge. The up-to-standarddischarged sewage enters the urban sewage treatment plant through the municipal pipe network forfurther treatment.
(11) One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co., Ltd. forthe treatment of production and domestic wastewater, with a total treatment capacity of 816 tons/dayand 24-hour operation. The main treatment processes are distillation pretreatment of productionwastewater and biochemical treatment of comprehensive wastewater. The sewage station can operatecontinuously and stably, and realize real-time up-to-standard discharge. The up-to-standarddischarged sewage enters the urban sewage treatment plant through the municipal pipe network forfurther treatment.
(II) Waste gas treatment:
(1) All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co., Ltd.can operate continuously and stably. The dust generated by the plasma cutting machine in thestamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. TheCO2 welding machine adopts a single-machine dust removal system, and the waste gas is dischargedlocally in the workshop after being treated by a single-machine dust collector. The waste gasgenerated by the treatment and drying process before entering the frame workshop is dischargedthrough a 15m exhaust pipe after being treated by a direct combustion device. The exhaust gas ofVOCs from cab coating and non-metallic coating is discharged after reaching the standard throughhydrocyclone + zeolite runner adsorption concentration + RTO (regenerative incineration).
(2) All waste gas treatment facilities of the Chengdu Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is dischargedafter reaching the standard through hydrocyclone + dry filtration + zeolite runner adsorption andconcentration + RTO (regenerative incineration). All welding fumes are discharged after reachingthe standard and being treated by centralized and mobile dust removal systems.
(3) All waste gas treatment facilities of the Sichuan Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is discharged
after reaching the standard through dry paper box + zeolite runner adsorption and concentration +RTO (regenerative incineration). All welding fumes are discharged after reaching the standard andbeing treated by centralized and mobile dust removal systems.
(4) All waste gas treatment facilities of the Transmission Branch (Transformation Factory) ofFAW Jiefang Automotive Co., Ltd. can operate continuously and stably. The painting waste gasgenerated from the coating line is discharged after reaching the standard and being treated byactivated carbon adsorption and desorption catalytic combustion devices. All welding fumes aredischarged after reaching the standard and being treated by centralized and mobile dust removalsystems.
(5) All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAWJiefang Automotive Co., Ltd. can operate continuously and stably, and all welding fumes aredischarged after reaching the standard and being treated by centralized and mobile dust removalsystems. The waste gas from the painting line is treated by zeolite runner +RCO device anddischarged after meeting the standard.
(6) Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. plans toimplement various centralized dust removal projects for welding fumes in 2023. The fumes weredischarged up to standard after treatment. This project is being carried out. The waste gas from thepainting process is treated by the pretreatment filtration system + zeolite concentration runner + RTOincineration treatment system and then discharged after reaching the standard.
(7) All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. canoperate continuously and stably. The painting waste gas generated by Painting Workshops 1 and 2,Non-metallic Painting Workshop and Assembly Workshops 1 and 2 is discharged after reaching thestandard and being purified by paint mist, adsorbed by zeolite concentration runner and treated by anRTO incineration device in the three workshops. The drying waste gas generated by the generalassembly workshop is burned with low nitrogen, and discharged after reaching the standard andbeing treated by the quaternary combustion device. The drying waste gas generated by the coatingworkshop is burned with low nitrogen and discharged after reaching the standard and receiving TNVthermal incineration. All welding fumes are discharged after reaching the standard and being treatedby a filter cartridge dust collector.
(8) The Engine Branch of FAW Jiefang Automotive Co., Ltd. has three quenching machinesgenerating waste gas and equipped with adsorption purification devices. After treatment, the wastegas is discharged up to standard.
(9) All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably. The painting waste gas generated fromcoating is discharged after reaching the standard and receiving activated carbon adsorption anddesorption + catalysis, and the waste gas generated from test run is discharged after reaching thestandard and being treated by SCR treatment device.
(10) All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably. The painting waste gas generated fromcoating is discharged after reaching the standard and receiving activated carbon adsorption anddesorption + catalysis, and the waste gas generated from test run is discharged after reaching thestandard and being treated by SCR treatment device.
(11) All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. canoperate continuously and stably. The painting waste gas generated from coating is discharged afterreaching the standard and being treated by water curtain paint mist treatment device + activatedcarbon adsorption, and the waste gas generated from test run is discharged after being treated bySCR post-treatment + alkali liquor washing exhaust gas treatment device and reaching the standard.
(III) Noise control:
All noise reduction and vibration reduction measures of branches and subsidiaries of theCompany can meet the requirements of national laws and regulations, and the noise within the plantboundary meets the requirements of national emission standards.
(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes toorganizations with hazardous waste transportation and disposal qualification for compliant transferand disposal in strict accordance with the requirements of national laws, regulations and standards.Emergency plan for environmental emergencies
We organized relevant departments to revise and improve the comprehensive plan, specialemergency plan and on-site disposal plan of the Emergency Response Plan for EnvironmentalEmergencies, conducted a detailed risk assessment on each risk point, clearly defined the work
responsibilities of each department, refined the emergency disposal procedures for unexpectedenvironmental events, supplemented and provided all kinds of emergency response materials, andtrained relevant personnel on the contents of the plan as required.We organized relevant departments to formulate the emergency response drill plan and carriedout the drills on the emergency plan, special emergency plan and on-site disposal plan for key areassuch as sewage treatment stations, hazardous waste stations and waste gas treatment facilities onschedule. The drills improved the awareness of relevant personnel for the emergency procedures, andtheir emergency response ability and coordination ability for emergencies, providing the actualpractice to the environmental emergency team and effectively improving the emergency responseability.Environmental self-monitoring planAll branches and subsidiaries of the Company have prepared their own monitoring plans accordingto the requirements of pollutant discharge permits and regulations, and organized qualifiedmonitoring organizations to monitor wastewater, waste gas, noise and soil in accordance with therequirements of the plans. The test report for 2023 shows that all monitoring indicators meet therequirements of all national emission regulations and standards.Investment in environmental governance and protection and payment of environmental protectiontaxesIn 2023, the Company paid a total of more than CNY 38 million including variousenvironmental governance and protection expenses and environmental protection taxes.Measures taken to reduce carbon emissions in the reporting period and their effects?Applicable □Not applicableThe Company pays close attention to energy conservation and carbon reduction and activelydocks with the government's preferential energy policies. In 2023, the amount of the green electricitytransaction was 46,393,400 kWh, and the PV clean energy projects implemented by Liuzhou Branch,FAW Jiefang (Qingdao) Automotive Co., Ltd. and other branches and subsidiaries were connected tothe grid to generate electricity, further reducing carbon emissions. In 2023, we initiated andimplemented 189 energy-saving and cost-reducing projects, with total annual savings of CNY 98.65million and 36,267t CO2.Administrative penalties due to environmental problems in the Reporting Period
| Name of | Cause for | Violations | Results of | Impact on Production | Rectification |
| Company or Subsidiary | Penalties | Penalties | and Operation of the Listed Company | Measures of the Company | |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information that shall be disclosedAll branches and subsidiaries of the Company have disclosed environmental information asrequired, been certified by the environmental management system (GB/T24001-2016), and carriedout cleaner production audits in strict accordance with the requirements. As a responsible centralenterprise, the Company strictly abides by the national requirements, has been practicing the conceptof scientific development, builds a clean and green enterprise, and is committed to becoming anecological civilization benchmarking environment-friendly enterprise of "energy conservation,consumption reduction, emission reduction and efficiency improvement".Other information related to environmental protection
In 2023, we revised 7 environmental protection management documents, refined theidentification and evaluation standards of environmental factors, improved the evaluation process,strictly standardized the "simultaneous design, construction and operation" management ofconstruction projects, clarified the management standards and spot inspection operation requirementsof environmental protection facilities, and increased the identification of laws and regulations.In order to improve the environmental responsibility awareness and working ability of managersand operators at all levels, the Company and its affiliates have formulated the environmentalprotection training plan, developed 9 professional environmental protection training courses, andconducted targeted training on important environmental protection laws and regulations. We alsoinvited industry experts with a high internal environmental management level and rich experience ininspection to share VOC compliance management in the Company. In 2023, we provided a total of 9company-level training, 42 training sessions in branches and subsidiaries and professional factoriesand 88 workshop-level training sessions, with a total of about 12,628 participants, laying a goodfoundation for the advancement of all tasks.In 2023, we organized a series of activities of "Environmental Protection Publicity Month", andcarefully prepared the Plan of Environmental Protection Publicity Month Activities for 2023. Duringthe month, we prepared and posted posters on the theme of "World Environment Day", collected theworks of "Short Video of Environmental Protection Publicity", publicized and promoted the "goldenidea" of environmental protection, arranged employees to participate in the environmental protection
knowledge contest of the Group, and selected outstanding environmental protection cases. Theemployees of all units actively participated in the activities, achieving satisfactory publicity results.II. Social Responsibility
For details of our performance of corporate social responsibilities, please refer to the 2023Environment, Society and Governance (ESG) Report published on CNINFO(http://www.cninfo.com.cn) on the same day.III. Consolidation and Expansion of Achievements in Poverty Alleviation and RuralRevitalizationThe company actively responds to the national rural revitalization strategy and the deploymentof targeted assistance work. It focuses on the needs of Fengshan County in Guangxi and ZhenlaiCounty in Jilin. With Party building as the guiding principle and the selection of competent officialsas the main approach, the Company has implemented various measures to solidly carry outassistance work in the dimensions of industrial development, livelihood infrastructure, ecologicalimprovement, education and employment, and consumer support. It continuously improves the well-being of local residents, effectively promotes comprehensive rural revitalization, and writes aliberating chapter on rural revitalization.
Section VI Important MattersI. Performance of Commitments
1. Commitments Made by the Company's Actual Controllers, Shareholders, Related Parties,Purchasers and the Company to Interested Parties that will be Fulfilled in the ReportingPeriod, and Commitments not Fulfilled by the End of the Reporting Period?Applicable □Not applicable
| Reasons for Commitment | Committed by | Commitment Type | Commitments | Date | Commitment Period | Performance |
| Commitments made in the Acquisition Report or Equity Change Report | China FAW Co., Ltd. | Shareholder Lock-up Commitment | To safeguard the interests of investors, FAW promises that after this acquisition is completed, the Company will continue to fulfill the commitments made by FAW Group during the equity division reform and strictly abide by the relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange on share transfer, equity changes and information disclosure of listed companies. | August 08, 2011 | Long-term validity | The locked shares were listed and circulated on April 10, 2023, and this commitment has been fulfilled. |
| Commitments made during asset restructuring | China FAW Co., Ltd. | Commitment on restricted shares | 1. The non-publicly issued shares of the listed company acquired by asset subscription in the restructuring will not be transferred in any way within 36 months from the date of issuance, including but not limited to public transfer through the securities market or transfer by agreement. However, the transfer permitted under applicable laws is exempt from the restrictions (including but not limited to share repurchase due to performance compensation). 2. If the closing price of the listed company's shares is lower than the issue price for 20 consecutive trading days within 6 months after the restructuring, or the closing price at the end of 6 months after | April 08, 2020 | The new shares in this restructuring will not be transferred in any way within 36 months from the date of issuance; the shares already held before the restructuring shall | Among them, the new shares in this restructuring were listed and circulated on April 10, 2023; the shares before the restructuring expired on October 9, 2021. This commitment has been fulfilled. |
| the restructuring is lower than the issue price, the shares of the listed company acquired by China FAW Co., Ltd. through asset subscription in this restructuring will be automatically extended for 6 months on the basis of the above lock-up period. 3. The shares of the listed company already held before the restructuring shall not be transferred within 18 months from the date of completion of the restructuring, but the transfer permitted under applicable laws is exempt from the restrictions. 4. After the restructuring, if the shares of the listed company enjoyed based on the restructuring are newly increased due to the issuance of bonus shares, conversion to share capital, etc., the aforementioned agreement on the restricted period shall also be observed. If the commitment on the restricted period of the shares obtained based on the restructuring is inconsistent with the latest regulatory opinions of the securities regulatory authorities, FAW Car Co., Ltd. will make corresponding adjustments based on the regulatory opinions of the relevant securities regulatory authorities. 5. After the expiration of the above restricted period, the shares of the listed company obtained shall be transferred according to the relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange. 6. FAW guarantees that it is willing to assume corresponding legal responsibilities in case of violation of the above commitments. | not be transferred within 18 months from the date of completion of the restructuring. | ||||
| China FAW Co., Ltd. | Commitment on regulating and reducin | 1. We will exercise shareholders' rights in strict accordance with the Company Law and other laws, administrative regulations, rules and normative documents (hereinafter referred to as "laws and | April 08, 2020 | Long-term validity | The matter is now in the normal process. |
| g related transactions | regulations") as well as the Articles of Association of FAW Car Co., Ltd. (hereinafter referred to as "Articles of Association"), and when the board of directors and the shareholders’ meeting vote on related transactions involving FAW Car Co., Ltd. matters, we will fulfill the obligation of avoiding voting. 2. We will commit to putting an end to all illegal occupation of the funds and assets of the listed company, and guarantee not to illegally transfer the funds and assets of the listed company or harm the interests of the listed company and other shareholders of the listed company by making use of relevant transactions. 3. We will try best to avoid or reduce related transactions with listed companies and enterprises controlled by them. For related transactions that cannot be avoided or exist with reasonable reasons, we will strictly follow the principles of fairness, impartiality and openness in the market, sign standardized related transaction agreements with listed companies according to law, and perform related transaction decision-making procedures in accordance with relevant laws and regulations and the Articles of Association. The price of related transactions shall be determined based on the market-oriented pricing principle to ensure its fairness, and to perform the information disclosure obligation of related transactions in accordance with relevant laws and regulations and the Articles of Association, and to ensure that the legitimate rights and interests of the listed company and other shareholders of the listed company will not be harmed through related transactions. 4. The above commitments on regulating related transactions will also apply to enterprises actually controlled by |
| FAW, and within the scope of legal shareholders' rights, FAW will urge its actually controlled enterprises to fulfill the obligations of regulating existing or possible related transactions with listed companies. We will make every effort to urge joint ventures or associated enterprises other than those actually controlled by FAW Car Co., Ltd. to fulfill the obligations to regulate related transactions that have occurred or may occur with listed companies. | |||||
| CHINA FAW GROUP CO., LTD. | Commitment on avoiding horizontal competition | 1. Upon completion of the restructuring, the main business of the listed company will be changed to the R&D, production and sales of commercial vehicles. 2. Upon completion of the restructuring, FAW and its holding enterprises other than listed companies (hereinafter referred to as "holding enterprises") shall not directly or indirectly engage in any business or activity that constitutes or may constitute substantial competition with the main business engaged in by listed companies and their holding enterprises in any form. 3. Upon completion of the restructuring, if FAW or its holding enterprises find any new business opportunities that constitute or may constitute a direct or indirect competition with the main business of the listed company or its holding enterprises (hereinafter referred to as "such new business opportunities"), FAW will immediately notify the listed company in writing and try its best to first provide such business opportunities to the listed company or its holding enterprises according to reasonable and fair terms and conditions. If the listed company or its holding enterprises decide to give up such new business opportunities, FAW or its holding | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. 6. From the date of issuance of the commitment letter, if FAW violates any of the above commitments, it will take positive measures in favor of the listed company to eliminate horizontal competition, including but not limited to injecting assets related to horizontal competition business into the listed company, terminating horizontal competition business or selling assets related to horizontal competition business to an unrelated third party. 7. The above commitments shall come into effect from the date of completion of the restructuring and shall remain valid and irrevocable during the period when FAW serves as the controlling shareholder or actual controller of the listed company. | |||||
| China FAW Co., Ltd. | Commitment on avoiding horizontal competition | 1. Upon completion of the restructuring, the main business of the listed company will be changed to the R&D, production and sales of commercial vehicles. 2. Upon completion of the restructuring, FAW and its holding enterprises other than listed companies (hereinafter referred to as "holding enterprises") shall not directly or indirectly engage in any business or activity that constitutes or may constitute substantial competition | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| restructuring and shall remain valid and irrevocable during the period when China FAW Co., Ltd. serves as the controlling shareholder or actual controller of the listed company. | |||||
| China FAW Co., Ltd. | Commitment on maintaining the independence of listed companies | (I) Ensure the personnel independence of the listed company: 1. Maintain personnel independence with the listed company, and ensure that the General Manager, Deputy General Manager, Financial Director, Secretary of the Board of Directors and other senior executives of the listed company do not hold positions other than directors and supervisors in FAW Car Co., Ltd. and its wholly-owned, holding or other enterprises and public institutions under actual control (hereinafter referred to as "subordinate units"), and do not receive salary from FAW Car Co., Ltd. and its subordinate units. 2. Ensure that the listed company has a complete and independent labor, human resources and salary management system, which is completely independent of FAW and its subordinate units. (II) Ensure the independence and integrity of the assets of the listed company: 1. Ensure that the listed company has independent and complete assets, all of which are under the control of the listed company, and are independently owned and operated by the listed company. 2. Ensure that FAW and its subordinate units currently do not and will not illegally occupy the funds and assets of the listed company. 3. FAW. will not use the assets of the listed company to guarantee its debts. (III) Ensure the financial independence of the listed company: 1. Ensure that the listed company continues to maintain an independent financial department | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| market. 3. Ensure that FAW does not interfere with the normal business activities of the listed company except for participating in the operation and management of the listed company by exercising shareholders' rights. | |||||
| China FAW Co., Ltd. | Commitment on pledging consideration shares | 1. We will make sure that the consideration shares obtained in the restructuring are given priority to fulfill the performance compensation commitment agreed in the Profit Forecast Compensation Agreement signed with the listed company, and we will not evade the compensation obligation by pledge of shares or other means. 2. When such consideration shares are pledged in the future, we will inform the pledgee in writing of the potential performance commitment compensation obligations of such shares according to the Profit Forecast Compensation Agreement, and make a clear agreement with the pledgee on the use of relevant shares for performance compensation in the Pledge Agreement. 3. In case of violation of the above commitments, we will compensate the listed company for any losses incurred thereby and bear the corresponding legal liabilities. | April 08, 2020 | April 30, 2023 | With the fulfillment of performance commitments and compensation arrangement commitments, this commitment has been fulfilled. |
| China FAW Co., Ltd. | Commitment on measures to fill diluted spot returns | 1. We will not interfere with the operation and management activities of the listed company beyond our authority and will not encroach on the interests of the listed company; 2. In this major asset restructuring, the listed company issued shares to FAW. to purchase assets, and signed the Profit Forecast Compensation Agreement attached with effective conditions with FAW., providing legally binding safeguard measures to avoid diluted spot returns in this transaction. | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| CHINA | Descrip | The production qualification and | April 08, | Long- | The |
| FAW GROUP CO., LTD. | tion on vehicle production qualification | product announcement of Jiefang Limited will be under the group management of FAW, that is, Jiefang Limited will use the production qualification of FAW vehicles, and its production qualification and product announcement declaration will be under the unified management of FAW. Upon completion of the restructuring, FAW will continue to maintain group management based on the actual needs of Jiefang Limited. Jiefang Limited can continue to use relevant production qualifications and keep the announcement of existing models unchanged. FAW will not hinder the continuous use of relevant qualifications by Jiefang Limited, and will cooperate with Jiefang Limited to maintain the validity of relevant qualifications. | 2020 | term validity | commitment is being fulfilled normally. |
| China FAW Co., Ltd. | Performance commitment and compensation arrangement | For some patents and proprietary technologies (hereinafter referred to as "performance commitment assets") in the purchased assets evaluated by the income approach, the income commitments of the audited performance compensation assets in the three accounting years (i.e. 2020, 2021 and 2022) after the transaction are as follows: CNY 655,889,000 in 2020, CNY 688,155,200 in 2021 and CNY 109,386,400 in 2022. During the performance commitment period, if as of the end of the current year, the accumulated realized income of the performance commitment assets is lower than the accumulated committed income, FAW will compensate the listed company year by year by share-based payment. | April 08, 2020 | April 30, 2023 | From 2020 to 2022, the share of the accumulative realized income of the Company's performance commitment assets was CNY 1,949,149,600, exceeding the commitment amount of CNY 495,719,000, and the performance commitment was completed. |
| China FAW Co., Ltd. | Commitment on defects of underlying assets | Jiefang Limited and its holding subsidiaries cannot obtain the house ownership certificate for some properties due to historical reasons such as government planning and adjustment, land expropriation, incomplete construction application procedures, and construction beyond the red line. The above properties account for 0.6% of the total area of house ownership of Jiefang Limited and its holding subsidiaries, which is relatively small and will not have a significant adverse impact on the normal production and operation of Jiefang Limited. As the counterparty of the restructuring, the Company promises that the failure to obtain the corresponding ownership certificate of the above properties will not adversely affect the normal production and operation of Jiefang Limited, and will not constitute a substantial obstacle to the restructuring. If the listed company or Jiefang Limited suffers any punishment or loss due to the failure to obtain the corresponding ownership certificate of the above properties, the Company promises to make full compensation to the listed company or Jiefang Limited in cash timely. | November 27, 2019 | Long-term validity | The commitment is being fulfilled normally. | |
| Commitment made upon initial public offering or refinancing | N/A | N/A | ||||
| Equity incentive commitment | N/A | N/A |
| Other commitments to minority shareholders of the Company | N/A | N/A | ||||
| Other commitments | N/A | N/A | ||||
| Whether the commitment is fulfilled on time | Yes | |||||
| If the commitment is not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail | N/A | |||||
2. If there is a profit forecast for the Company's assets or projects, and the reporting period isstill in the profit forecast period, the Company shall explain that the assets or projects reachingthe original profit forecast and the reasons
□Applicable ?Not applicable
II. Non-operating Occupation of Funds by Controlling Shareholders and Other Related Partiesto the Listed Company
□Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controllingshareholders and other related parties.III. Illegal External Guarantee
□Applicable ?Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Description of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable ?Not applicable
V. Description of the Board of Directors, the Board of Supervisors and Independent Directors(if any) on the "Non-standard Audit Report" of the Accounting Firm in the Reporting Period
□Applicable ?Not applicable
VI. Description of Changes in Accounting Policies and Accounting Estimates or Correction ofSignificant Accounting Errors Compared with the Financial Report of the Previous Year?Applicable □Not applicableInterpretation No. 16 of Accounting Standards for Business EnterprisesIn November 2022, the Ministry of Finance issued the Interpretation No. 16 of the AccountingStandards for Business Enterprises (CK [2022] No. 31) (hereinafter referred to as "Interpretation No.
16").Interpretation No.16 stipulates that for a single transaction that is not a business combination anddoes not affect accounting profits or taxable income (or deductible losses) at the time of thetransaction and that the initial recognition of assets and liabilities results in equal amounts of taxabletemporary differences and deductible temporary differences, such taxable temporary differences anddeductible temporary differences arising from the initial recognition of assets and liabilities shall berecognized at the time the transaction occurred as the corresponding deferred income tax liabilitiesand deferred income tax assets in accordance with relevant provisions such as the AccountingStandards for Business Enterprises No. 18 - Income Tax. The Company shall apply these provisionsto transactions that occurred from the beginning of the earliest period of the financial statements forwhich the provisions are first applied until the Implementation Date of the Interpretation. Thecumulative impact of these adjustments shall be used to adjust the opening retained earnings andother related financial statement items for the earliest period in the presentation of financialstatements. The above provisions on the accounting treatment have come into effect since January 1,2023.The Company shall also adjust the taxable temporary difference and deductible temporary differencefor lease liabilities and right-of-use assets recognized for the lease business in accordance with theprovisions of Interpretation No. 16.The enforcement of the above accounting policies has the following impact on the consolidatedbalance sheet on December 31, 2023 and the 2023 consolidated income statement:
Unit: CNY
| Items of consolidated balance sheet (December 31, 2023) | Amounts affected |
| Deferred Income tax assets | 12,975,866.73 |
| Deferred income tax liabilities | 12,560,241.88 |
| Undistributed profit at the end of the year | 415,624.85 |
| Items of consolidated income statement (Year 2023) | Amounts affected |
| Income tax expenses | -443,956.60 |
The enforcement of the above accounting policies has the following impact on the consolidatedbalance sheet on December 31, 2022 and the 2022 consolidated income statement:
Unit: CNY
| Items of consolidated balance sheet (December 31, 2022) | Before adjustment | Amount adjusted | After adjustment |
| Deferred Income Tax Assets | 2,131,349,905.21 | 19,643,880.89 | 2,150,993,786.10 |
| Deferred income tax liabilities | 430,369,867.93 | 19,672,212.64 | 450,042,080.57 |
| Undistributed profit at the end of the year | 5,460,939,601.36 | -28,331.75 | 5,460,911,269.61 |
| Items of consolidated income statement (Year 2022) | Before adjustment | Amount adjusted | After adjustment |
| Income tax expenses | -185,173,776.38 | 301,331.78 | -184,872,444.60 |
The enforcement of the above accounting policies has the following impact on the consolidatedbalance sheet on January 1, 2022.
Unit: CNY
| Items of consolidated balance sheet (January 01, 2022) | Before adjustment | Amount adjusted | After adjustment |
| Deferred Income Tax Assets | 1,650,296,511.26 | 26,243,041.30 | 1,676,539,552.56 |
| Deferred income tax liabilities | 374,185,114.15 | 25,970,041.27 | 400,155,155.42 |
| Undistributed profit at the end of the year | 8,434,403,352.08 | 273,000.03 | 8,434,676,352.11 |
Cumulative impact of changes in accounting policies during the current period
Unit: CNY
| Affected items | Current period | Previous period |
| Net assets at the beginning of the period | -28,331.75 | 273,000.03 |
| Including: Retained earnings | -28,331.75 | 273,000.03 |
| Net Profit | 443,956.60 | -301,331.78 |
| Capital reserves | ||
| Other comprehensive incomes | ||
| Special reserves | ||
| Net assets at the end of the period | 415,624.85 | -28,331.75 |
| Including: Retained earnings | 415,624.85 | -28,331.75 |
VII. Description of Changes in the Scope of Consolidated Statements Compared with theFinancial Report of the Previous Year?Applicable □Not applicableThe Company established a new subsidiary, FAW Jiefang UNI-D (Tianjin) Technology Co., Ltd., onApril 14, 2023.VIII. Appointment and Dismissal of Accounting FirmAccounting Firm Currently Hired
| Name of Domestic Accounting Firm | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Remuneration of Domestic Accounting Firm (CNY 10,000) | 95 |
| Consecutive Years of Audit Service Provided by Domestic Accounting Firm | 7 years |
| Name of Certified Public Accountant of Domestic Accounting Firm | Wu Songlin, Yang Dongmin |
| Consecutive Years of Audit Service Provided by Certified Public Accountant of Domestic Accounting Firm | Wu Songlin (1 year), Yang Dongmin (2 years) |
Whether to change to hire a new accounting firm in the current period
□Yes ?No
Employment of accounting firm, financial consultant or sponsor for internal control audit?Applicable □Not applicableAfter deliberation and adoption at the 7th meeting of the 10th Board of Directors and the FourthExtraordinary Shareholders’ Meeting of 2023, Grant Thornton Accounting Firm (special generalpartnership) was appointed as the internal control audit institution of the Company in 2023, with aninternal control audit fee of CNY 500,000.IX. Delisting after Disclosure of Annual Report
□Applicable ?Not applicable
X. Matters Related to Bankruptcy Reorganization
□Applicable ?Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.XI. Major Litigation and Arbitration Matters?Applicable □Not applicable
| Basic Information about Litigation (Arbitration) | Amount Involved (CNY 10,000) | Estimated liabilities formed or not | Progress of Litigation (Arbitration) | Litigation (Arbitration) Results and Impact | Implementation of Litigation (Arbitration) Judgment | Date of Disclosure | Disclosure Index |
| Summary of other litigation not reaching the major disclosure standard | 7,169.52 | Including estimated liabilities of CNY 732,1600 | Case not closed | No significant impact | Case not closed by the end of the reporting period | ||
| 4,035.19 | No | Case closed | No significant impact | Enforcement completed or a mediation agreement reached |
XII. Punishment and Rectification
□Applicable ?Not applicable
The company has no punishment or rectification in the reporting period.XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable ?Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operations
?Applicable □Not applicable
| Related Transaction Party | Correlation | Type of Related Transaction | Content of Related Transaction | Pricing Principle of Related Transaction | Price of Related Transaction | Amount of Related Transaction (CNY 10,000) | Proportion to the Amount of Similar Transactions | Approved Transaction Amount (CNY 10,000) | Whether it Exceeds the Approved Amount | Settlement Method of Related Transaction | Available Market Value of Similar Transactions | Date of Disclosure | Disclosure Index |
| Fawer Auto Parts Co., Ltd. | Other related parties | Goods purchase and reception of labor services | Goods purchase and reception of labor services | Market price | Market price | 165,960.79 | 2.75% | 168,436 | No | Cash + bill settlement | 165,960.79 | February 11, 2023 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party | Sales of goods | Sales of goods | Market price | Market price | 1,156,803.06 | 18.10% | 1,158,179 | No | Cash + bill settlement | 1,156,803.06 | November 21, 2023 | |
| FAW Jiefang | Associate | Sales of | Sales of | Market price | Market | 244,687.27 | 3.83% | 279,005 | No | Cash + bill | 244,687.27 | November 21, 2023 |
| Fujie (Tianjin) Technology Industry Co., Ltd. | d enterprise of the Company | goods | goods | price | settlement | ||||||||
| Total | -- | -- | 1,567,451.12 | -- | 1,605,620 | -- | -- | -- | -- | -- | |||
| Details of large sales returns | N/A | ||||||||||||
| Actual performance in the reporting period, if the total amount of daily related transactions to be incurred in the current period is estimated by category | For details about the actual performance of related transactions in the reporting period, please see Item XIV "Related Parties and Related Transactions" in Section X of this report. | ||||||||||||
| Reasons for large difference between transaction price and market reference price | N/A | ||||||||||||
2. Related transactions arising from the acquisition and sale of assets or equity
□Applicable ?Not applicable
The Company has no related transaction arising from the acquisition and sale of assets or equity inthe reporting period.
3. Related transactions of joint foreign investment
?Applicable □Not applicable
| Co-investor | Correlation | Name of the Invested Enterprise | Main Business of the Invested Enterprise | Registered Capital of the Investee | Total Assets of the Invested Enterprise (CNY 10,000) | Net Assets of the Invested Enterprise (CNY 10,000) | Net Profit of the Invested Enterprise (CNY 10,000) |
| CHINA FAW GROUP CO., LTD. | Ultimate controller of the Company | Changchun Automotive Test Center Co., Ltd. | Automobile testing service | CNY 11,714,400 | 368,415.05 | 341,211.16 | 22,084.31 |
| Progress of major projects under construction of the investee | N/A | ||||||
4. Related credit and debt transactions
?Applicable □Not applicableWhether there are non-operating related credit and debt transactions
□Yes ?No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with related finance companies
?Applicable □Not applicableDeposit Business
| Related Parties | Correlation | Maximum Daily Deposit Limit (CNY 10,000) | Deposit Interest Rate Range | Opening Balance (CNY 10,000) | Amount Incurred in Current Period | Ending Balance (CNY 10,000) | |
| Total Deposit Amount in the Current Period (CNY 10,000) | Total Withdrawal Amount in the Current Period (CNY 10,000) | ||||||
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | 3,000,000 | 0.35%-2.3% | 1,383,293.43 | 30,464,832.50 | 30,443,468.41 | 1,404,657.52 |
Credit Granting or Other Financial Businesses
| Related Parties | Correlation | Business Type | Total Amount (CNY 10,000) | Actual Amount Incurred (CNY 10,000) |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | Other financial businesses | 900,000 | 311,664.25 |
6. Transactions between finance companies controlled by the Company and related parties
□Applicable ?Not applicable
There is no deposit, loan, credit granting or other financial businesses between the finance companiescontrolled by the Company and related parties.
7. Other major related transactions
?Applicable □Not applicable
(1) On February 10, 2023, the 31st Meeting of the 9th Board of Directors of the Companyreviewed and approved the Proposal on Estimating the Amount of Financial Business with FirstAutomobile Finance Co., Ltd. in 2023, the Proposal on Signing the Financial Services FrameworkAgreement with First Automobile Finance Co., Ltd. and the Proposal on Estimating Daily Related
Transaction Amount in 2023, which were reviewed and approved by the First ExtraordinaryShareholders' Meeting of 2023 of the Company.
(2) On November 20, 2023, the 7th Meeting of the 10th Board of Directors of the Companyreviewed and approved the Proposal on Increasing the Estimate of Daily Related Transactions in2023, which was reviewed and approved at the Fourth Extraordinary Shareholders' Meeting of 2023of the Company.
(3) On December 29, 2023, the 8th Meeting of the 10th Board of Directors of the Companyreviewed and approved the Proposal on Increasing the Estimate of Daily Related Transactions in2023.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
| Name of Temporary Announcement | Disclosure Date of Temporary Announcement | Name of Temporary Announcement Disclosure Website |
| Announcement on estimated amount of daily related transactions in 2023 | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on Signing Financial Service Framework Agreement and Related Party Transactions with First Automobile Finance Co., Ltd. | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on estimated amount of financial business with First Automobile Finance Co., Ltd. in 2023 | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on Increasing the Estimate of Daily Related Transactions in 2023 | November 21, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on Increasing the Estimate of Daily Related Transactions in 2023 | December 30, 2023 | CNINFO (http://www.cninfo.com.cn) |
XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable ?Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable ?Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
?Applicable □Not applicableDescription of leaseFor details of the Company's operating lease, please refer to Note 14 "Investment real estate", Note15 "Fixed assets", and Note 17 "Right-of-use assets" in Notes to Items in VII "ConsolidatedFinancial Statements" of Section X "Financial Report", and Note 5 "Information of relatedtransactions" in XIV "Related parties and related transactions".Projects that bring about profits and losses exceeding 10% of the total profit of the Company in thereporting period
□Applicable ?Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the totalprofit of the Company in the reporting period.
2. Major guarantees
□Applicable ?Not applicable
The Company has no major guarantee in the reporting period.
3. Cash Assets Management Entrusted to Others
(1) Entrusted financial management
□Applicable ?Not applicable
The Company has no entrusted financial management in the reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
The Company has no entrusted loans in the reporting period.
4. Other major contracts
□Applicable ?Not applicable
The Company has no other major contracts in the reporting period.XVI. Other Major Matters to be Explained?Applicable □Not applicableThe 4th Meeting of the 10th Board of Directors and the 3rd Meeting of the 10th Board ofSupervisors held by the Company on June 19, 2023 reviewed and approved the Proposal on theCompany's Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company's Plan toIssue A Shares to Specific Objects in 2023 and other proposals, which were reviewed and approvedby the Company's 2023 Second Extraordinary Shareholders' Meeting of 2023 of the Company heldon July 18, 2023. On July 18, 2023, the Company disclosed the Announcement on Matters Relatedto the Issuance of A Shares to Specific Objects in 2023 Approved by China FAW Groups; on August3, 2023, the Company disclosed the Announcement on the Application for Issuance of A Shares toSpecific Objects in 2023 Accepted by the Shenzhen Stock Exchange. ; Oon October 13, 2023, theCompany disclosed the Announcement on Issuance of A Shares to Specific Objects in 2023Approved by Listing Audit Center of Shenzhen Stock Exchange.For details of the above matters, please refer to the Company’s relevant announcementspublished in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).XVII. Major Events of Subsidiaries
□Applicable ?Not applicable
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
| Before the Change | Increase/Decrease Made by the Change (+, -) | After the Change | ||||||||
| Qty. | Scale | Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | Qty. | Scale | ||
| I. Restricted shares | 3,241,570,824 | 69.66% | -3,227,137,281 | -3,227,137,281 | 14,433,543 | 0.31% | ||||
| 1. Shares held by the state | ||||||||||
| 2. Shares held by the state-owned legal person | 3,197,912,134 | 68.72% | -3,197,912,134 | -3,197,912,134 | ||||||
| 3. Shares held by other domestic enterprises | 43,658,690 | 0.94% | -29,225,147 | -29,225,147 | 14,433,543 | 0.31% | ||||
| Including: shares held by domestic legal person | ||||||||||
| Shares held by | 43,658,690 | 0.94% | -29,225,147 | -29,225,147 | 14,433,543 | 0.31% | ||||
| domestic natural person | |||||||||
| 4. Shares held by foreign enterprises | |||||||||
| Including: shares held by overseas legal person | |||||||||
| Shares held by overseas natural person | |||||||||
| II. Unrestricted shares | 1,411,754,078 | 30.34% | 3,210,810,854 | 3,210,810,854 | 4,622,564,932 | 99.69% | |||
| 1. CNY ordinary shares | 1,411,754,078 | 30.34% | 3,210,810,854 | 3,210,810,854 | 4,622,564,932 | 99.69% | |||
| 2. Foreign shares listed in China | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 4,653,324,902 | 100.00% | -16,326,427 | -16,326,427 | 4,636,998,475 | 100.00% |
Reasons for changes in shares?Applicable □Not applicableDuring the reporting period, the Company failed to achieve the performance assessmentobjectives set for the second release period first granted and the first release period reserved by theCompany's Phase I restricted share incentive plan, and a total of 16,326,427 shares were repurchasedand canceled due to organizational transfer, statutory retirement and personal reasons. After theaforesaid repurchase and cancellation, the total share capital of the Company was changed to4,636,998,475 shares.Approval of share changes?Applicable □Not applicable
(1) On October 28, 2022, the Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 28th Meetingof the 9th Board of Directors and the 24th Meeting of the 9th Board of Supervisors respectively, witha total number of 1,359,247 restricted shares repurchased and cancelled. On November 18, 2022, theProposal was deliberated and approved at the Company's third Extraordinary Shareholders' Meetingin 2022.
(2) On December 15, 2022, the Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 30th Meetingof the 9th Board of Directors and the 26th Meeting of the 9th Board of Supervisors respectively, witha total number of 723,435 restricted shares repurchased and cancelled. On March 2, 2023, theProposal was deliberated and approved at the Company's first Extraordinary Shareholders' Meetingin 2023.
(3) On March 31, 2023, the 32nd Meeting of the 9th Board of Directors and the 28th Meeting ofthe 9th Board of Supervisors of the Company deliberated and approved the Proposal on UnsuccessfulLifting of Conditions of the Second Release Period First Granted by the Phase I Restricted ShareIncentive Plan for Releasing the Restricted Sales and of Conditions of the First Release PeriodReserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales andRepurchase and Cancellation of Some Restricted Shares, with a total number of 13,909,890 restrictedshares repurchased and canceled. On April 24, 2023, the proposal was reviewed and approved at theCompany's 2022 Annual Shareholders’ Meeting.
(4) The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board ofDirectors and the 4th Meeting of the 10th Board of Supervisors on August 29, 2023. A total of333,855 restricted shares were repurchased and canceled. On September 28, 2023, the Proposal wasdeliberated and approved at the Company's third Extraordinary Shareholders' Meeting in 2023.Transfer of share changes?Applicable □Not applicable
(1) On January 06, 2023, the Company submitted relevant registration materials to CDSC for1,359,247 shares involved in equity incentive repurchase and cancellation. On January 16, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,651,965,655 shares.
(2) On April 20, 2023, the Company submitted relevant registration materials to CDSC for723,435 shares involved in equity incentive repurchase and cancellation. On April 27, 2023, CSDCissued the Confirmation of Securities Transfer Registration to the Company, and the total sharecapital of the Company was reduced to 4,651,242,220 shares.
(3) On June 20, 2023, the Company submitted relevant registration materials to CDSC for13,909,890 shares involved in equity incentive repurchase and cancellation. On June 29, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,637,332,330 shares.
(4) On November 22, 2023, the Company submitted relevant registration materials to CDSC for333,855 shares involved in equity incentive repurchase and cancellation. On November 28, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,636,998,475 shares.Impact of changes in shares on financial indicators such as basic earnings per share and dilutedearnings per share in the latest year and the latest period, and net assets per share attributable toshareholders with ordinary shares of the Company?Applicable □Not applicable
In the reporting period, the share capital of the Company decreased by 16,326,427 shares, whichhad little impact on the Company's financial indicators such as basic earnings per share, dilutedearnings per share, and net assets per share attributable to shareholders with ordinary shares of theCompany.
Other information disclosed as deemed necessary by the Company or required by the securitiesregulatory authority
□Applicable ?Not applicable
2. Changes in restricted shares
?Applicable □Not applicable
Unit: share
| Name of Shareholder | Number of Restricted Shares at the Beginning of the Period | Number of Restricted Shares Increased in the Current Period | Number of Restricted Shares Released in the Current Period | Number of Restricted Shares at the End of the Period | Reason for Restriction | Release Date |
| China FAW Co., Ltd. | 2,413,412,134 | 2,413,412,134 | Major asset restructuring | April 10, 2023 | ||
| FAW Bestune Car Co., Ltd. | 784,500,000 | 784,500,000 | Major asset restructuring | April 10, 2023 | ||
| Hu Hanjie | 334,331 | 110,329 | 224,002 | Equity incentives and post-resignation lock-up | Among them, 110,329 shares were released from the restriction on April 30, 2024; the remaining shares were implemented in accordance with the restricted share incentive plan. | |
| Wu Bilei | 228,552 | 132,560 | 95,992 | Equity incentive | Each year, 25% of the total shares held are released from restriction, and the | |
| Li Sheng | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Zhang Guohua | 228,493 | 132,526 | 95,967 | Equity incentive | ||
| Ji Yizhi | 192,778 | 111,812 | 80,966 | Equity |
| incentive | assessment objectives of the restricted share incentive plan are implemented. |
TianHaifeng
| Tian Haifeng | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Wang Jianxun | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Other core employees of senior director and above | 42,096,202 | 28,402,484 | 13,693,718 | Equity incentive | The restricted share incentive plan and assessment objectives are implemented. | |
| Total | 3,241,570,824 | 0 | 3,227,137,281 | 14,433,543 | -- | -- |
II. Issuance and Listing of Securities
1. Issuance of Securities (Excluding Preferred Share) in the Reporting Period
□Applicable ?Not applicable
2. Changes in the Total Number of Shares and Shareholder Structure, as well as Changes in theStructure of the Company's Assets and Liabilities?Applicable □Not applicableAccording to the Company's restricted share incentive plan, the Company repurchased andcanceled a total of 16,326,427 granted shares of incentive objects that failed to conform to therestricted share incentive plan. The total number of shares of the Company was changed from4,653,324,902 shares to 4,636,998,475 shares.
3. Existing Internal Employee Shares
□Applicable ?Not applicable
III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholdings of the Company
Unit: share
| Total Number of Shareholders with Ordinary Shares at the End of the Reporting Period | 85,973 | Total Number of Ordinary Shareholders at the End of the Last Month before the Disclosure Date of the Annual Report | 78,906 | Total Number of Shareholders with Preferred Share with Restored Voting Rights at the End of the Reporting Period | 0 | Total Number of Preferred Shareholders with Resumed Voting Rights at the End of the Last Month before the Disclosure Date | 0 | |
| Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding Shares Lent through Securities Refinancing). | ||||||||
| Name of Shareholder | Nature of Shareholders | Share proportion | Number of Shares Held at the End of the Reporting Period | Increase and Decrease in the Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | Pledge, Marking or Freezing | |
| Status of Shares | Qty. | |||||||
| China FAW Co., Ltd. | State-owned legal person | 66.00% | 3,060,649,901 | 0 | 0 | 3,060,649,901 | N/A | 0 |
| FAW Bestune Car Co., Ltd. | State-owned legal person | 16.92% | 784,500,000 | 0 | 0 | 784,500,000 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 1.35% | 62,814,959 | 7,974,647 | 0 | 62,814,959 | N/A | 0 |
| Lu Min | Domestic natural person | 0.78% | 36,096,590 | 0 | 0 | 36,096,590 | N/A | 0 |
| Chao Guo | Domestic natural person | 0.19% | 8,665,558 | 806,200 | 0 | 8,665,558 | N/A | 0 |
| Li Yan | Domesti | 0.17% | 7,660,000 | 0 | 0 | 7,660,000 | N/A | 0 |
| c natural person | ||||||||
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | Others | 0.14% | 6,440,000 | 2,814,000 | 0 | 6,440,000 | N/A | 0 |
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | Others | 0.12% | 5,549,500 | 0 | 0 | 5,549,500 | N/A | 0 |
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC | Others | 0.12% | 5,549,500 | 0 | 0 | 5,549,500 | N/A | 0 |
| Securities Financial Asset Management Plan | |||||||||||
| Jilin Province State-owned Capital | State-owned legal person | 0.12% | 5,345,916 | -8,367,000 | 0 | 5,345,916 | N/A | 0 | |||
| Strategic investors or general legal persons who become the top 10 shareholders due to the issuance of new shares | N/A | ||||||||||
| Description of correlation or concerted action of the above shareholders | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | ||||||||||
| Description of involvement of the above shareholders in entrusting/entrusted voting rights and waiving voting rights | N/A | ||||||||||
| Special description of the existence of repurchase special accounts among the top 10 shareholders | N/A | ||||||||||
| Shareholding of Top 10 Shareholders with Unrestricted Ordinary Shares | |||||||||||
| Name of Shareholder | Number of Unrestricted Shares Held at the End of the Reporting Period | Type of Shares | |||||||||
| Type of Shares | Qty. | ||||||||||
| China FAW Co., Ltd. | 3,060,649,901 | CNY ordinary shares | 3,060,649,901 | ||||||||
| FAW Bestune Car Co., Ltd. | 784,500,000 | CNY ordinary | 784,500,000 | ||||||||
| shares | |||
| Hong Kong Securities Clearing Company Ltd. | 62,814,959 | CNY ordinary shares | 62,814,959 |
| Lu Min | 36,096,590 | CNY ordinary shares | 36,096,590 |
| Chao Guo | 8,665,558 | CNY ordinary shares | 8,665,558 |
| Li Yan | 7,660,000 | CNY ordinary shares | 7,660,000 |
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | 6,440,000 | CNY ordinary shares | 6,440,000 |
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | 5,549,500 | CNY ordinary shares | 5,549,500 |
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC Securities Financial Asset Management Plan | 5,549,500 | CNY ordinary shares | 5,549,500 |
| Jilin Province State-owned Capital | 5,345,916 | CNY ordinary shares | 5,345,916 |
| Description of correlation or concerted action between the top 10 shareholders of unrestricted shares, and between the top 10 shareholders of unrestricted shares and the top 10 shareholders | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | ||
| Description of participation in financing bonds business of top 10 shareholders with ordinary shares | Lu Min, a domestic natural person, holds 36,096,590 shares of the Company through the guaranteed securities account for customer credit trading of CITIC Securities; Chao Guo, a domestic natural person, holds 8,646,400 shares of the Company through the guaranteed securities account for customer credit trading of Minsheng Securities; Li Yan, a domestic natural person, holds 7,660,000 shares of the Company through the guaranteed securities account for customer credit trading of Dongguan Securities. | ||
Share Lending of Top 10 Shareholders Participating in Refinancing Business
□Applicable ?Not applicable
Change of Top 10 Shareholders Compared with the Previous Period?Applicable □Not applicableUnit: share
| Change of Top 10 Shareholders Compared with the End of the Previous Period | |||||
| Name of Shareholder (Full Name) | New/Withdrawn during the Reporting Period | Number of Shares Lent at the End of the Period of Refinancing and Not Yet Returned | Quantity of Shares Held by Shareholders in Their Ordinary Accounts, Credit Accounts, and Shares Lent through Refinancing that have not yet been returned | ||
| Total Quantity | Proportion to Total Share Capital | Total Quantity | Proportion to Total Share Capital | ||
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | New | 0 | 0.00% | 0 | 0.00% |
| China Construction Bank Corporation - GF China Securities Auto Index-based Securities Investment Fund | Withdrawn | 0 | 0.00% | 0 | 0.00% |
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestrictedordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes ?No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinaryshares of the Company do not conduct agreed repurchase transactions in the reporting period
2. Information of Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holdingType of controlling shareholder: legal person
| Name of Controlling Shareholder | Legal Representative/Person in Charge | Date of Establishment | Organization code | Main Business |
| China FAW Co., Ltd. | Qiu Xiandong | June 28, 2011 | 91220101571145270J | Automobile manufacturing and remanufacturing, new energy vehicle manufacturing; design, development, manufacturing and sales of automobile parts and components such as engines and transmissions; metal casting and forging, mold processing; engineering technology research and test; professional technical services; computer and software services; thermal power generation and power supply; heat production and supply; water and gas supply; road freight transport; warehousing; sales of mechanical equipment, hardware and electrical equipment, electronic products and vehicle materials; lease of mechanical equipment; advertising design, production and release; business services; labor service; sales of vehicles and second-hand vehicles (prohibited by laws, regulations and decisions of the State Council. Items subject to approval according to the law can be operated only after being approved by relevant authorities) ** |
| Equity of Other Domestic and Foreign Listed Companies Controlled and Participated by Controlling Shareholders in the Reporting Period | N/A | |||
Changes in controlling shareholders in the reporting period
□Applicable ?Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.
3. Company's Actual Controllers and Persons Acting in Concert
Nature of actual controller: central state-owned assets management organizationType of actual controller: legal person
| Name of Actual Controller | Legal Representative/Person in Charge | Date of Establishment | Organization code | Main Business |
| State-owned Assets Supervision and Administration Commission of the State Council | N/A | N/A | N/A | |
| Equity of Other Domestic and Foreign Listed Companies Controlled by Actual Controllers in the Reporting Period | N/A | |||
Change of actual controller in the reporting period
□Applicable ?Not applicable
There is no change in the actual controller of the Company in the reporting period.Block Diagram of Property Right and Control Relationship between the Company and the ActualControllers
The actual controllers control the Company by trust or other asset management methods
□Applicable ?Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or thelargest shareholder and persons acting in concert accounts for 80% of the Company's sharesheld by them.
□Applicable ?Not applicable
5. Other Corporate Shareholders Holding More Than 10% of the Shares?Applicable □Not applicable
| Name of Corporate Shareholder | Legal Representative/Person in Charge | Date of Establishment | Registered Capital | Main Business or Management Activities |
| FAW Bestune Car Co., Ltd. | Yang Xiao | June 28, 2019 | CNY 8,425,232,426 | Development, manufacturing and sales of automobiles and parts (including new energy vehicles and their related batteries, motors, electronic controls, and excluding flammable and explosive hazardous chemicals), station wagons and their accessories, intelligent products and |
Block Diagram of Property Right and Control Relationship between the Company and the Actual Controllers
Block Diagram of Property Right and Control Relationship between the Company and the Actual Controllers
China FAW Group Corporation Co., Ltd.
China FAW Group Corporation Co., Ltd.State-owned Assets Supervision and Administration Commission of the State Council
State-owned Assets Supervision and Administration Commission of the State CouncilFAW Asset Management Co., Ltd.
FAW Asset Management Co., Ltd.China FAW Co., Ltd.
China FAW Co., Ltd.FAW JIEFANG GROUP CO., LTD.
FAW JIEFANG GROUP CO., LTD.FAW Bestune Car Co., Ltd.
FAW Bestune Car Co., Ltd.FAW Equity Investment (Tianjin) Co., Ltd.
design, agency;advertising production;advertisement release(non-radio stations, TVstations, newspapers andperiodicals publishers);labor service (excludinglabor dispatch); motorvehicle safety technologytesting service; artificialintelligence public dataplatform; data processingand storage supportservices; Internet dataservice; inspection andtesting services; generalcargo warehousingservices (excludinghazardous chemicals andother items requiringlicensing and approval);marketing planning; leaseof computer andcommunicationequipment; conference andexhibition services; leaseof mechanical equipment;Category I value-addedtelecommunicationsservices; Category IIvalue-addedtelecommunicationsservices; intellectualproperty services (itemssubject to approvalaccording to law can beoperated only after beingapproved by relevantauthorities).
6. Restricted Reduction of Shares Held by Controlling Shareholders, Actual Controllers,Restructuring Parties and Other Commitment Subjects
□Applicable ?Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting PeriodImplementation progress of share repurchase
□Applicable ?Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized Bidding
□Applicable ?Not applicable
Section VIII Preferred Shares
□Applicable ?Not applicable
The Company has no preferred shares in the reporting period.
Section IX Bonds
□Applicable ?Not applicable
Section X Financial ReportI. Audit Report
| Type of Audit Opinion | Standard unqualified opinion |
| Signing Date of Auditor Report | March 28, 2024 |
| Name of Audit Institution | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Audit Report No. | ZTSZ (2024) No. 110A005436 |
| Name of Certified Public Accountant | Wu Songlin and Yang Dongmin |
Text of Auditor ReportAll shareholders of FAW JIEFANG GROUP CO., LTD.:
I. Auditor’s OpinionWe have audited the financial statements of FAW Jiefang Group Co., Ltd. (hereinafter referredto as "FAW Jiefang"), including the Consolidated and the Company's Balance Sheets on December31, 2023, the Consolidated and the Company's Income Statements, the Consolidated and theCompany's Cash Flow Statements, and the Consolidated and the Company's Statements of Changesin Shareholders' Equity in 2023, and the Notes to Financial Statements for the year then ended.In our opinion, the attached financial statements were compiled as per the provisions ofAccounting Standards for Business Enterprises (ASBE) in all major aspects and can fairly presentthe consolidated and FAW Jiefang's financial status as of December 31, 2023, as well as theirbusiness performance and cash flows for the year then ended.II. Basis for OpinionWe have conducted our audit in accordance with the Auditing Standards for Certified PublicAccountants of China. The section in the Auditor’s Report titled “CPAs’ Responsibilities for theAudit of the Financial Statements” further describes our responsibilities under these standards. Weare independent of FAW Jiefang in accordance with the China Code of Ethics for Certified PublicAccountants and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, we consider to be mostsignificant to the audit of the financial statements for the period. These matters were addressed in thecontext of our audit for the entire financial statements and the formation of our opinions thereon. Wedo not declare a separate opinion on these matters.(I) Income RecognitionFor details of relevant information disclosure, refer to 26 in Note III and 43 in Note VII to thefinancial statements.
1. Description
The sales revenue of FAW Jiefang mainly comes from the vehicle sales business. In 2023,FAW Jiefang realized an operating income of CNY 63,904,532,500, of which the vehicle salesrevenue was CNY 58,781,305,500, accounting for 91.98%. According to the specific method ofincome recognition of FAW Jiefang, the income is recognized when the complete vehicle and itsaccessories have been delivered to the delivery location as agreed in the contract, and the customerhas accepted the goods and obtained control of the goods. The vehicle sales income has a significantimpact on the financial statements of FAW Jiefang, so we identified income recognition as a keyaudit matter.
2. Audit response
Our audit procedures mainly include:
(1) Understand the effectiveness of internal control design related to income recognition, andtest the effectiveness of key control implementation;
(2) Analyze the income and gross profit rate in combination with the product type, and comparethem with the data of the same industry to judge whether the income and gross profit rate in thecurrent period are abnormal;
(3) Interview with the management, check the terms of the sales contract, analyze and judge thetime point of the control right transfer of vehicle sales, and evaluate the rationality of the incomerecognition policy;
(4) Conduct the spot check on the supporting documents related to income recognition,including sales contracts, orders, sales invoices, product transportation documents, customer receipts,etc.;
(5) Execute transaction and correspondence confirmation for the sales business of major andnew customers;
(6) For the sales revenue recognized before and after the balance sheet date, check the basis forcustomer receipt confirmation, and evaluate whether the sales revenue is recorded in the appropriateperiod.
(II) Provision for Decline in Value of Inventories
For details of relevant information disclosure, refer to 13 in Note III and 7 in Note V to thefinancial statements.
1. Description
As of December 31, 2023, the book balance of inventory of FAW Jiefang was CNY9,601,592,300, and the balance of inventory depreciation reserves was CNY 390,620,900, of whichCNY 195,269,300 was provided in the current period. The provision amount for decline in value ofinventories is significant and requires significant judgment of the management, so we identified theprovision for decline in value of inventories as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the design and operational effectiveness of key internal controls related tothe provision for inventory depreciation reserves by the management;
(2) Obtain the Calculation Sheet of Inventory Depreciation Reserves of FAW Jiefang, conductinventory depreciation tests, analyze the changes in provision for inventory depreciation reservesmade in previous years and analyze whether the provision for inventory depreciation reserves in thecurrent period is sufficient;
(3) Check the quantity and status of inventories in combination with the inventory supervisionprocedures, focus on checking long-aged inventories, and analyze the adequacy of provision fordepreciation reserves of inventories with signs of impairment;
(4) Check the changes in the provision for inventory depreciation reserves made in previousyears in the current period, and analyze the rationality of the changes in the inventory depreciationreserves.(III) Provision for Product Quality Guarantee DepositFor details of relevant information disclosure, refer to 24 in Note III and 35 and 45 in Note V tothe financial statements.
1. Description
As of December 31, 2023, FAW Jiefang has provided a product quality deposit of CNY572,738,100 in the current year, and the balance of a product quality deposit in the estimatedliabilities is CNY 711,161,700. Based on the vehicle sales contract and relevant national laws andregulations, customers can obtain warranty services provided by FAW Jiefang within the warrantyperiod. The management of FAW Jiefang calculates the product quality deposit based on the relevantprovisions in the product type, warranty period and warranty obligation clauses. The provisionamount of product quality guarantee deposit is relatively large and involves significant estimationand judgment of the management, so we identified the provision for product quality guaranteedeposit as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the effectiveness of key internal control design and operation of keyinternal controls related to the provision for product quality deposit;
(2) Understand and evaluate whether the accounting policies related to the provision for productquality deposit are appropriate and consistently applied;
(3) Understand and evaluate the rationality of the method and calculation model adopted byFAW Jiefang for the provision for the product quality deposit according to laws, regulations andcontract terms;
(4) Perform recalculation procedures to verify the accuracy of the management's provision forproduct quality deposit.
IV. Other Information
The management of FAW Jiefang (hereinafter referred to as the management) is responsible forother information. Other information comprises the information included in the Annual Report ofYear 2023 of FAW Jiefang, but does not include the financial statements and our auditor’s reportthereon.Our audit opinion on the financial statements does not cover other information, and we do notexpress an assurance conclusion of any kind on other information.Based on our audit of the financial statements, our responsibility is to consider whether otherinformation has material inconsistency or seems to have material misstatement with the financialstatements or circumstances that we know during the audit while reading other information.
Based on the work we have performed, if we determine that other information is materiallymisstated, we should report that fact. In this regard, we have nothing to report.
V. Responsibilities of Management and Governance for the Financial Statements
The management of FAW Jiefang shall be responsible for preparing financial statements thatpresent fairly the data in accordance with the Accounting Standards for Business Enterprises, and fordesigning, implementing and maintaining the internal controls as the management deems necessaryto enable the preparation of financial statements free from material misstatement, whether due tofraud or error.
In preparation of the financial statement, the management is responsible for assessing FAWJiefang’s sustainable operation ability, disclosing the sustainable operation related items (ifapplicable) and applying sustainable operation assumptions, unless otherwise the management plansto liquidate FAW Jiefang, stop operation or it has no other practical choice.
The governance is responsible for supervising the financial reporting process of FAW Jiefang.
VI. CPAs’ Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as awhole are free from material misstatement caused by fraud or error, and to issue an Auditor’s Reportcontaining our opinions. Reasonable assurance is a high level of assurance, but it does not guaranteethat an audit conducted in accordance with auditing standards can always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in aggregate, they could reasonably be expected to influence the economicdecisions users would take on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism in carrying out ouraudit in accordance with the Auditing Standards. At the same time, we also:
(1) Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of failing todetect a material misstatement due to fraud is higher than that due to error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or overriding internal controls.
(2) Understand the internal controls related to the audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going-concern assumption.based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on FAW Jiefang's ability to continue as a going concern. Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on information available as of the date of theAuditor's Report. However, future events or conditions may cause FAW Jiefang to cease to continueas a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, andwhether the financial statements can fairly reflect the transactions and items.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entityor business activities within FAW Jiefang to express an opinion on the financial statements. We areresponsible for guiding, supervising, and performing the group audit, and assume all responsibilitiesfor our opinion.
We communicate with the Governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.
We also provide the governance with a statement regarding compliance with ethicalrequirements related to independence and communicate with the governance about all relationshipsand other matters that could reasonably be considered to affect our independence, as well as relatedprecautions (if applicable).
From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore thekey audit matters. We have described these matters in the Auditor’s Report, except that they areprohibited from being publicly disclosed as per the laws and regulations, or in the rare cases, if anegative result that may be caused by communicating some matter in the auditor’s report asreasonably expected exceeds the benefit generated by the public interest, we determine not tocommunicate such matter in the auditor’s report.II. Financial StatementsThe unit in the notes to the financial statement is CNY
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
December 31, 2023
Unit: CNY
| Item | December 31, 2023 | January 01, 2023 |
| Current assets: | ||
| Monetary capital | 22,920,710,903.12 | 21,041,473,417.71 |
| Settlement reserve fund | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 44,626,048.13 | 186,748,716.22 |
| Accounts receivable | 1,989,386,169.77 | 867,090,338.42 |
| Accounts receivable financing | 4,878,126,972.73 | 3,461,653,473.66 |
| Prepayments | 689,621,097.66 | 897,834,864.08 |
| Premiums receivable |
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 1,309,376,221.57 | 1,068,454,162.91 |
| Including: interests receivable | ||
| Dividends receivable | 2,608,000.00 | |
| Financial assets purchased under agreements to resell | ||
| Inventories | 9,210,971,356.15 | 6,382,739,897.83 |
| Contract assets | 17,582,856.82 | 11,129,624.75 |
| Held-for-sale assets | ||
| Current portion of non-current assets | 222,664,624.89 | 191,262,030.30 |
| Other current assets | 1,032,089,815.23 | 894,927,499.59 |
| Total current assets | 42,315,156,066.07 | 35,003,314,025.47 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | 132,031,253.27 | 121,606,587.43 |
| Long-term equity investments | 5,469,591,970.26 | 4,692,648,635.84 |
| Other equity instruments investments | 480,780,000.00 | 480,780,000.00 |
| Other non-current financial assets | ||
| Investment properties | 47,049,995.53 | 80,647,597.48 |
| Fixed assets | 11,380,286,165.58 | 9,612,922,810.28 |
| Project under construction | 816,484,299.18 | 1,902,143,354.11 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 138,989,886.70 | 198,220,342.59 |
| Intangible assets | 2,438,433,780.65 | 2,549,096,918.05 |
| Development expenditures | 109,873,830.59 | |
| Goodwill | ||
| Long-term deferred expenses | 130,439.66 | |
| Deferred income tax assets | 2,544,710,679.48 | 2,150,993,786.10 |
| Other non-current assets | ||
| Total non-current assets | 23,558,231,861.24 | 21,789,190,471.54 |
| Total assets | 65,873,387,927.31 | 56,792,504,497.01 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowing from the central bank | ||
| Placements from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 11,769,864,678.11 | 9,198,593,038.03 |
| Accounts payable | 16,495,571,442.45 | 10,033,608,668.06 |
| Advance receipts | 641,221.46 | 1,861,865.37 |
| Contract liabilities | 2,204,692,602.77 | 1,629,524,704.35 |
| Financial assets sold under agreement to repurchase | ||
| Deposits taking and interbank deposits | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 402,039,885.19 | 436,648,178.76 |
| Taxes payable | 129,222,373.32 | 301,211,845.51 |
| Other payables | 5,305,057,045.18 | 6,095,452,748.17 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | 27,171,195.40 | 32,998,374.87 |
| Other current liabilities | 214,456,037.00 | 133,584,259.07 |
| Total current liabilities | 36,548,716,480.88 | 27,863,483,682.19 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Lease liabilities | 30,494,014.13 | 54,814,603.06 |
| Long-term payables | ||
| Long-term employee compensation payable | 672,957,633.25 | 707,310,890.43 |
| Estimated liabilities | 735,710,304.03 | 875,468,804.10 |
| Deferred income | 2,983,678,367.53 | 3,121,985,685.93 |
| Deferred income tax liabilities | 415,071,758.09 | 450,042,080.57 |
| Other non-current liabilities | ||
| Total non-current liabilities | 4,837,912,077.03 | 5,209,622,064.09 |
| Total liabilities | 41,386,628,557.91 | 33,073,105,746.28 |
| Owner's equities: | ||
| Share capital | 4,636,485,668.00 | 4,651,965,655.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 10,343,418,951.73 | 10,451,088,236.74 |
| Less: treasury shares | 86,131,497.27 | 267,837,184.11 |
| Other comprehensive incomes | -8,514,110.10 | -5,399,120.81 |
| Special reserves | 319,314,527.85 | 370,420,291.86 |
| Surplus reserves | 3,090,408,316.87 | 3,058,249,602.44 |
| General risk provision | ||
| Undistributed profits | 6,191,777,512.32 | 5,460,911,269.61 |
| Total equity attributable to owners of the parent company | 24,486,759,369.40 | 23,719,398,750.73 |
| Minority equity | ||
| Total Owners' Equity | 24,486,759,369.40 | 23,719,398,750.73 |
| Total liabilities and owner's equities | 65,873,387,927.31 | 56,792,504,497.01 |
Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of the
accounting organization: Si Yuzhuo
2. Balance sheet of parent company
Unit: CNY
| Item | December 31, 2023 | January 01, 2023 |
| Current assets: | ||
| Monetary capital | 165,157,237.21 | 5,776,955.29 |
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Accounts receivable financing | ||
| Prepayments | 84,000.00 | |
| Other receivables | 219,864.00 | 224,132.76 |
| Including: interests receivable | ||
| Dividends receivable | ||
| Inventories | ||
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 261,636.19 | 141,004.41 |
| Total current assets | 165,722,737.40 | 6,142,092.46 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 25,594,049,970.19 | 25,580,280,570.19 |
| Other equity instruments investments | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | ||
| Project under construction | ||
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 25,594,049,970.19 | 25,580,280,570.19 |
| Total assets | 25,759,772,707.59 | 25,586,422,662.65 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 250,327.84 | 964,364.48 |
| Advance receipts | ||
| Contract liabilities | ||
| Employee compensation payable | ||
| Taxes payable | 3,368,528.10 | 3,264,343.98 |
| Other payables | 90,343,250.16 | 298,294,257.75 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 93,962,106.10 | 302,522,966.21 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 93,962,106.10 | 302,522,966.21 |
| Owner's equities: | ||
| Share capital | 4,636,485,668.00 | 4,651,965,655.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 12,171,693,342.10 | 12,278,939,213.88 |
| Less: treasury shares | 86,131,497.27 | 267,837,184.11 |
| Other comprehensive incomes | 863,137.93 | -480,794.77 |
| Special reserves | ||
| Surplus reserves | 1,859,690,555.97 | 1,827,531,841.54 |
| Undistributed profits | 7,083,209,394.76 | 6,793,780,964.90 |
| Total owners' equity | 25,665,810,601.49 | 25,283,899,696.44 |
| Total liabilities and owner's equities | 25,759,772,707.59 | 25,586,422,662.65 |
3. Consolidated profit statement
Unit: CNY
| Item | 2023 | 2022 |
| I. Total operating income | 63,904,532,477.03 | 38,331,747,083.88 |
| Including: operating income | 63,904,532,477.03 | 38,331,747,083.88 |
| Interest income | ||
| Premium earned | ||
| Handling charges and commission income | ||
| II. Total operating cost | 64,495,447,535.46 | 40,599,244,915.95 |
| Including: operating cost | 58,629,635,711.55 | 35,252,170,886.53 |
| Interest expense | ||
| Handling charges and commission expense | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities | ||
| Policy dividend expenditure | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 262,169,095.70 | 207,798,168.60 |
| Sales expenses | 1,605,495,233.98 | 1,255,882,221.64 |
| Administrative expenses | 1,931,279,477.64 | 2,040,339,354.62 |
| R&D expenses | 2,982,257,879.16 | 2,895,655,097.73 |
| Financial expenses | -915,389,862.57 | -1,052,600,813.17 |
| Including: interest expenses | 3,801,492.51 | 5,602,156.49 |
| Interest income | 768,570,466.66 | 949,854,588.85 |
| Add: Other incomes | 612,891,544.77 | 1,638,060,139.20 |
| Investment income (loss to be listed with “-”) | 282,328,848.08 | 236,918,218.51 |
| Including: income from investment in associates and joint ventures | 347,980,074.28 | 346,588,767.31 |
| Gains on derecognition of financial assets at amortized cost | ||
| Foreign exchange gains (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with “-”) | -53,553,998.32 | 919,157.09 |
| Asset impairment loss (loss to be listed with “-”) | -201,626,584.54 | -424,288,578.25 |
| Income from assets disposal (loss to be listed with “-”) | 192,669,498.68 | 871,031,108.06 |
| III. Operating profit (loss to be listed with "-") | 241,794,250.24 | 55,142,212.54 |
| Add: non-operating income | 197,837,768.23 | 153,997,194.43 |
| Less: non-operating expenses | 24,463,320.77 | 26,567,738.01 |
| IV. Total profit (loss to be listed with "-") | 415,168,697.70 | 182,571,668.96 |
| Less: income tax expenses | -347,856,259.44 | -184,872,444.60 |
| V. Net profit (net loss to be listed with "-") | 763,024,957.14 | 367,444,113.56 |
| (I) Classified by continuity of operation | ||
| 1. Net profit from continuing operations (net loss to be listed with "-") | 763,024,957.14 | 367,444,113.56 |
| 2. Net profit from discontinuing operations (net loss to be listed with "-") | ||
| (II) Classified by attribution of the ownership | ||
| 1. Net profit attributable to the parent company's shareholders | 763,024,957.14 | 367,444,113.56 |
| 2. Minority interests | ||
| VI. Net after-tax amount of other comprehensive income | -3,114,989.29 | 27,395,781.39 |
| Net after-tax amount of other comprehensive income attributable to the owners of the parent company | -3,114,989.29 | 27,395,781.39 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | -4,710,588.55 | 27,800,000.00 |
| 1. Changes arising from re-measurement of the defined benefit plan | -5,170,000.00 | 27,800,000.00 |
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 459,411.45 | |
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | 1,595,599.26 | -404,218.61 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | 871,354.25 | -784,908.08 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | 724,245.01 | 380,689.47 |
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributable to minority shareholders |
| VII. Total comprehensive income | 759,909,967.85 | 394,839,894.95 |
| Total comprehensive income attributable to the owners of parent company | 759,909,967.85 | 394,839,894.95 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (I) Basic income per share | 0.1651 | 0.0734 |
| (II) Diluted income per share | 0.1651 | 0.0734 |
In the case of a business combination under common control in the current period, the net profitrealized by the combined party before combination and that in the previous period are CNY 0.00.Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of theaccounting organization: Si Yuzhuo
4. Profit statement of parent company
Unit: CNY
| Item | 2023 | 2022 |
| I. Operating income | 0.00 | 0.00 |
| Less: operating costs | 0.00 | 0.00 |
| Taxes and surcharges | 93,606.12 | 112,763.40 |
| Sales expenses | ||
| Administrative expenses | 3,496,572.38 | 3,603,463.88 |
| R&D expenses | ||
| Financial expenses | 465,699.73 | 88,801.55 |
| Including: interest expenses | 644,156.98 | 338,917.37 |
| Interest income | 184,637.25 | 250,875.82 |
| Add: Other incomes | 344,768.40 | 528,150.13 |
| Investment income (loss to be listed with “-”) | 325,302,522.88 | 3,163,832,151.72 |
| Including: income from investment in associates and joint ventures | 325,302,522.88 | 364,182,151.72 |
| Gains on derecognition of financial assets at amortized cost (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with “-”) | -4,268.76 | -208,297.04 |
| Asset impairment loss (loss to be listed with “-”) | ||
| Income from assets disposal (loss to be listed with “-”) | ||
| II. Operating profit (loss to be listed with "-") | 321,587,144.29 | 3,160,346,975.98 |
| Add: non-operating income | 0.07 | |
| Less: non-operating expenses | ||
| III. Total profit (total loss to be listed with "-") | 321,587,144.29 | 3,160,346,976.05 |
| Less: Income Tax Expenses | ||
| IV. Net profit (net loss to be listed with "-") | 321,587,144.29 | 3,160,346,976.05 |
| (I) Net profit from continuing operations (net loss to be listed with "-") | 321,587,144.29 | 3,160,346,976.05 |
| (II) Net profit from discontinuing operations (net loss to be listed with "-") | ||
| V. Net after-tax amount of other comprehensive incomes | 1,343,932.70 | -784,908.08 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | 472,578.45 | |
| 1. Changes arising from re-measurement of the defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 472,578.45 | |
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | 871,354.25 | -784,908.08 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | 871,354.25 | -784,908.08 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 322,931,076.99 | 3,159,562,067.97 |
| VII. Income per share: | ||
| (I) Basic income per share | ||
| (II) Diluted income per share |
5. Consolidated cash flow statement
Unit: CNY
| Item | 2023 | 2022 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | 59,619,602,424.77 | 41,009,913,172.02 |
| Net increase in customer bank deposits and due to banks and other financial institutions |
| Net increase in borrowings from the central bank | ||
| Net increase in placements from other financial institutions | ||
| Cash from premium of original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interests, handling charges and commissions | ||
| Net increase in placements from banks and other financial institutions | ||
| Net increase in repurchase business capital | ||
| Net cash received from securities brokerage | ||
| Tax refunds received | 820,160,322.26 | 1,413,758,222.98 |
| Other cash received relating to operating activities | 1,869,141,352.94 | 2,354,350,299.80 |
| Subtotal of cash inflows from operating activities | 62,308,904,099.97 | 44,778,021,694.80 |
| Cash paid for goods and services | 49,371,210,891.85 | 42,672,008,807.22 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with central bank and other financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in loans to banks and other financial institutions | ||
| Cash paid for interests, handling charges and commissions | ||
| Cash paid for policyholder dividend | ||
| Cash paid to and on behalf of employees | 5,292,273,257.85 | 4,767,225,368.39 |
| Taxes paid | 1,730,516,426.89 | 979,329,590.98 |
| Cash paid for other operating activities | 1,713,185,801.86 | 1,494,701,897.56 |
| Subtotal of cash outflows from operating activities | 58,107,186,378.45 | 49,913,265,664.15 |
| Net cash flows from operating activities | 4,201,717,721.52 | -5,135,243,969.35 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 299,242,143.02 | 461,970,529.25 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 105,701,924.82 | 455,276,221.08 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | 798,551,894.65 | |
| Subtotal of cash inflows from investment activities | 404,944,067.84 | 1,715,798,644.98 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 2,251,350,615.06 | 2,828,776,203.30 |
| Cash paid to acquire investments | 529,266,800.00 | 516,780,000.00 |
| Net increase in pledged loans | ||
| Net cash paid to acquire subsidiaries and other business units |
| Other cash paid relating to investment activities | 17,676,304.33 | |
| Subtotal of cash outflows from investment activities | 2,798,293,719.39 | 3,345,556,203.30 |
| Net cash flows from investment activities | -2,393,349,651.55 | -1,629,757,558.32 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: cash received by subsidiaries absorbing minority shareholders' investments | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 3,025,174,498.45 | |
| Including: dividends and profits paid to minority shareholders by subsidiaries | ||
| Other cash paid relating to financing activities | 22,968,693.24 | 55,183,852.56 |
| Subtotal of cash outflows from financing activities | 22,968,693.24 | 3,080,358,351.01 |
| Net cash flows from financing activities | -22,968,693.24 | -3,080,358,351.01 |
| IV. Effects from change of exchange rate on cash and cash equivalents | 775,450.68 | 352,712.97 |
| V. Net increase in cash and cash equivalents | 1,786,174,827.41 | -9,845,007,165.71 |
| Add: opening balance of cash and cash equivalents | 20,697,669,726.18 | 30,542,676,891.89 |
| VI. Ending Balance of cash and cash equivalents | 22,483,844,553.59 | 20,697,669,726.18 |
6. Cash flow statement of parent company
Unit: CNY
| Item | 2023 | 2022 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | ||
| Tax refunds received | 735,000.75 | |
| Other cash received relating to operating activities | 100,021,565.10 | 3,050,893,952.65 |
| Subtotal of cash inflows from operating activities | 100,021,565.10 | 3,051,628,953.40 |
| Cash paid for goods and services | ||
| Cash paid to and on behalf of employees | 378,000.00 | 396,000.00 |
| Taxes paid | 99,071.82 | 96,728.40 |
| Cash paid for other operating activities | 226,723,494.82 | 3,276,840,147.92 |
| Subtotal of cash outflows from operating activities | 227,200,566.64 | 3,277,332,876.32 |
| Net cash flows from operating activities | -127,179,001.54 | -225,703,922.92 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 288,101,230.25 | 3,246,753,477.04 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from the disposal of subsidiaries and other business entities |
| Cash received from other investment activities | 250,875.82 | |
| Subtotal of cash inflows from investment activities | 288,101,230.25 | 3,247,004,352.86 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | ||
| Cash paid to acquire investments | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | ||
| Net cash flows from investment activities | 288,101,230.25 | 3,247,004,352.86 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 3,025,174,498.45 | |
| Other cash paid relating to financing activities | ||
| Subtotal of cash outflows from financing activities | 3,025,174,498.45 | |
| Net cash flows from financing activities | -3,025,174,498.45 | |
| IV. Effects from change of exchange rate on cash and cash equivalents | ||
| V. Net increase in cash and cash equivalents | 160,922,228.71 | -3,874,068.51 |
| Add: opening balance of cash and cash equivalents | 4,235,008.50 | 8,109,077.01 |
| VI. Ending Balance of cash and cash equivalents | 165,157,237.21 | 4,235,008.50 |
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: CNY
| Item | 2023 | ||||||||||||||
| Equity Attributable To Owners of the Parent Company | Minority Equity | Total Owners' Equity | |||||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Provision | Undistributed Profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| Add: changes in accounting policies | -28,331.75 | -28,331.75 | -28,331.75 | ||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,911,269.61 | 23,719,398,750.73 | 23,719,398,750.73 | ||||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -15,479,987.00 | -107,669,285.01 | -181,705,686.84 | -3,114,989.29 | -51,105,764.01 | 32,158,714.43 | 730,866,242.71 | 767,360,618.67 | 767,360,618.67 | ||||||
| (I) Total comprehensive income | -3,114,989.29 | 763,024,957.14 | 759,909,967.85 | 759,909,967.85 | |||||||||||
| (II) Invested and decreased capital of owners | -15,479,987.00 | -107,669,285.01 | -181,705,686.84 | 58,556,414.83 | 58,556,414.83 | ||||||||||
| 1. Ordinary shares invested | -15,479,987.00 | -82,470,046.45 | -97,950,033.45 | -97,950,033.45 |
| by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -24,775,825.33 | -24,775,825.33 | -24,775,825.33 | ||||||||||||
| 4. Others | -423,413.23 | -181,705,686.84 | 181,282,273.61 | 181,282,273.61 | |||||||||||
| (III) Profit distribution | 32,158,714.43 | -32,158,714.43 | |||||||||||||
| 1. Appropriation to surplus reserves | 32,158,714.43 | -32,158,714.43 |
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners' equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. |
| Transfer from surplus reserves to paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other |
| comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | -51,105,764.01 | -51,105,764.01 | -51,105,764.01 | ||||||||||||
| 1. Appropriation in the current period | 37,672,287.45 | 37,672,287.45 | 37,672,287.45 | ||||||||||||
| 2. Use in the current period | -88,778,051.46 | -88,778,051.46 | -88,778,051.46 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending Balance of the current period | 4,636,485,668.00 | 10,343,418,951.73 | 86,131,497.27 | -8,514,110.10 | 319,314,527.85 | 3,090,408,316.87 | 6,191,777,512.32 | 24,486,759,369.40 | 24,486,759,369.40 |
Amount of the Previous Period
Unit: CNY
Item
| Equity Attributable To Owners of the Parent Company | Minority Equity | Total Owners' Equity | ||||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Provision | Undistributed Profits | Others | Subtotal | ||||
| Preferred Shares | Perpetual Bond | Others | ||||||||||||
I. EndingBalanceof thepreviousyear
| 4,654,114,613.00 | 10,439,365,093.18 | 310,460,486.38 | -32,794,902.20 | 315,398,148.75 | 2,742,214,904.83 | 8,434,403,352.08 | 26,242,240,723.26 | 26,242,240,723.26 |
Add:
changesinaccounting policies
| 273,000.03 | 273,000.03 | 273,000.03 |
Correction of priorperioderrors
Others
II.OpeningBalanceof thecurrentyear
| 4,654,114,613.00 | 10,439,365,093.18 | 310,460,486.38 | -32,794,902.20 | 315,398,148.75 | 2,742,214,904.83 | 8,434,676,352.11 | 26,242,513,723.29 | 26,242,513,723.29 |
III.Increase/
| -2,148,958 | 11,723,143.56 | -42,623,3 | 27,395,781.39 | 55,022,143.11 | 316,034,697.61 | -2,973,765 | -2,523,114, | -2,523,114, |
decreasein amountof thecurrentperiod(decreaseto belistedwith "-")
| .00 | 02.27 | ,082.50 | 972.56 | 972.56 |
(I) Totalcomprehensiveincome
| 27,395,781.39 | 367,444,113.56 | 394,839,894.95 | 394,839,894.95 |
(II)Investedanddecreasedcapital ofowners
| -2,148,958.00 | 11,723,143.56 | -42,623,302.27 | 52,197,487.83 | 52,197,487.83 |
1.Ordinarysharesinvestedbyowners
| -2,148,958.00 | -11,582,883.62 | -13,731,841.62 | -13,731,841.62 |
2. Capital
contributed byholders ofotherequity
instruments
3.Amountsof share-basedpaymentsrecordedinowner'sequity
| 23,184,433.06 | 23,184,433.06 | 23,184,433.06 |
4. Others
| 121,594.12 | -42,623,302.27 | 42,744,896.39 | 42,744,896.39 |
(III)Profitdistribution
| 316,034,697.61 | -3,341,209,196.06 | -3,025,174,498.45 | -3,025,174,498.45 |
1.Appropriation tosurplusreserves
| 316,034,697.61 | -316,034,697.61 |
2.Appropriation togeneralriskreserves
3.Distributi
| -3,025,174 | -3,025,174, | -3,025,174, |
on toowners(orshareholders)
| ,498.45 | 498.45 | 498.45 |
4. Others
(IV)Internalcarryoverofowners'equity
1.Transferfromcapitalreserve topaid-incapital (orsharecapital)
2.Transferfromsurplusreservesto paid-incapital (orsharecapital)
3.
Recoveryof lossesbysurplusreserves
4.Retainedearningscarriedforwardfromchangesin definedbenefitplans
5.Retainedearningscarriedforwardfromothercomprehensiveincome
6. Others
(V)Specialreserves
| 55,022,143.11 | 55,022,143.11 | 55,022,143.11 |
1.Appropri
| 93,946,199.30 | 93,946,199.30 | 93,946,199.30 |
ation inthecurrentperiod
2. Use in
thecurrentperiod
| -38,924,056.19 | -38,924,056.19 | -38,924,056.19 |
(VI)Others
IV.EndingBalanceof thecurrentperiod
| 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,911,269.61 | 23,719,398,750.73 | 23,719,398,750.73 |
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the Current Period
Unit: CNY
| Item | 2023 | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Owners' Equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -15,479,987.00 | -107,245,871.78 | -181,705,686.84 | 1,343,932.70 | 32,158,714.43 | 289,428,429.86 | 381,910,905.05 | |||||
| (I) Total comprehensive income | 1,343,932.70 | 321,587,144.29 | 322,931,076.99 | |||||||||
| (II) Invested | - | - | - | 58,979,828.0 |
| and decreased capital of owners | 15,479,987.00 | 107,245,871.78 | 181,705,686.84 | 6 | ||||||||
| 1. Ordinary shares invested by owners | -15,479,987.00 | -82,470,046.45 | -97,950,033.45 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -24,775,825.33 | -24,775,825.33 | ||||||||||
| 4. Others | -181,705,686.84 | 181,705,686.84 | ||||||||||
| (III) Profit distribution | 32,158,714.43 | -32,158,714.43 | ||||||||||
| 1. Appropriation to surplus | 32,158,714.43 | -32,158,714.43 |
| reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves |
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of | 4,636,485,668.00 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 |
the currentperiod
Amount of the Previous Period
Unit: CNY
| Item | 2022 | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Owners' Equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending Balance of the previous year | 4,654,114,613.00 | 12,267,337,664.44 | 310,460,486.38 | 304,113.31 | 1,511,497,143.93 | 6,974,643,184.91 | 25,097,436,233.21 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,654,114,613.00 | 12,267,337,664.44 | 310,460,486.38 | 304,113.31 | 1,511,497,143.93 | 6,974,643,184.91 | 25,097,436,233.21 | |||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -2,148,958.00 | 11,601,549.44 | -42,623,302.27 | -784,908.08 | 316,034,697.61 | -180,862,220.01 | 186,463,463.23 | |||||
| (I) Total comprehensive income | -784,908.08 | 3,160,346,976.05 | 3,159,562,067.97 | |||||||||
| (II) Invested and decreased capital of owners | -2,148,958.00 | 11,601,549.44 | -42,623,302.27 | 52,075,893.71 | ||||||||
| 1. Ordinary shares invested by owners | -2,148,958.00 | -11,582,883.62 | -13,731,841.62 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based | 23,184,433.06 | 23,184,433.06 |
| payments recorded in owner's equity | ||||||||||||
| 4. Others | -42,623,302.27 | 42,623,302.27 | ||||||||||
| (III) Profit distribution | 316,034,697.61 | -3,341,209,196.06 | -3,025,174,498.45 | |||||||||
| 1. Appropriation to surplus reserves | 316,034,697.61 | -316,034,697.61 | ||||||||||
| 2. Distribution to owners (or shareholders) | -3,025,174,498.45 | -3,025,174,498.45 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or |
| share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others |
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of the current period | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 |
III. Company Profile
1. Overview
FAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liabilitycompany registered in Changchun City, Jilin Province.FAW Car was approved by the TGS <1997> No.55 document issued by the State Commission forRestructuring the Economic System in 1997, and was exclusively established by China FAW GroupCorporation. On June 18, 1997, FAW Car was approved by the China Securities RegulatoryCommission to issue shares publicly and listed on the Shenzhen Stock Exchange for circulation.On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into China FAW Co., Ltd.as its capital contribution to FAW, and received the Confirmation of Securities Transfer Registrationissued by China Securities Depository & Clearing Co., Ltd. Shenzhen Branch on the same day.On November 28, 2019, FAW Car held the 10th meeting of the 8th Board of Directors, and reviewedand approved the adjustment plan for major asset restructuring. After the adjustment, FAW Cartransferred all its assets and liabilities except the equity and some reserved assets of First AutomobileFinance Co., Ltd. and Sanguard Automobile Insurance Co., Ltd. to FAW Bestune, and then replaced100% equity of FAW Bestune Car Co., Ltd. with the equivalent part of 100% equity of FAW JiefangAutomotive Co., Ltd. (Jiefang Limited) held by FAW. At the same time, FAW Car purchased thedifference between the purchased assets and the sold assets from FAW by issuing shares and payingcash.On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring ofFAW Car Co., Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No.
352) issued by the China Securities Regulatory Commission, and China Securities RegulatoryCommission reviewed and approved the major asset replacement, share issuance and cash paymentfor assets purchase and related transactions of FAW Car.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm(special general partnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e.100% equity of Jiefang Limited, to be replaced by FAW Car to FAW by issuing shares had been
transferred to FAW Car. The industrial and commercial change registration procedures of JiefangLimited had been completed, all proposed assets, i.e. 100% equity of FAW Bestune, had beentransferred to FAW, and the industrial and commercial change registration procedures of FAWBestune had been completed. The registered capital of FAW Car is CNY 4,609,666,212.00 after thischange.In May 2020, the name of FAW Car was changed to "FAW JIEFANG GROUP CO., LTD." and thestock abbreviation was changed to "FAW Jiefang".On January 11, 2021, the Company held the First Extraordinary Shareholders' Meeting of 2021, andreviewed and approved the Proposal on the Restricted Share Incentive Plan of FAW JIEFANGGROUP CO., LTD. (Draft) and Its Abstract, the Proposal on the Regulations for the ImplementationAssessment of Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD., the Proposalon the Regulations for Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and theProposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to HandleMatters Related to the Company's Restricted Share Incentive Plan. On January 15, 2021, theCompany held the 12th meeting of the 9th Board of Directors, and reviewed and approved theProposal on Adjusting the List of the First Batch of Incentive Objects and the Number of Grants inthe Phase I Restricted Share Incentive Plan and the Proposal on Granting Restricted Shares to theIncentive Objects of the Phase I Restricted Share Incentive Plan for the First Time. Nine directorsand senior executives, including Hu Hanjie, Zhu Qixin, Zhang Guohua, Wang Ruijian, ShangXingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun, and 310 other core employees withthe title of senior director and above were granted to subscribe for 40,987,657 new shares of theCompany at an issue price of CNY 7.54 per share, and the registered capital of the Company waschanged to CNY 4,650,653,869.00. This change was verified by the Capital Verification Report(ZTYZ (2021) No. 110C000033) issued by Grant Thornton Certified Public Accountants (SpecialGeneral Partnership). On February 1, 2021, the Company disclosed the Announcement on theCompletion of the First Grant Registration of Phase I Restricted Share Incentive Plan.On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and the19th meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on GrantingReserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan to Incentive
Objects and the Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan respectively. Thirty-three core technicians and managementbackbones, including Wang Manhong, Zhang Yu and Qu Yi, subscribed for 3,721,601 new shares atan issue price of CNY 6.38/share, and 260,857 shares were repurchased at a price of CNY 7.04/sharefrom 2 employees who were no longer eligible for incentive objects. The registered capital of theCompany was changed to CNY 4,654,114,613.00. This change was verified by the CapitalVerification Report (ZTYZ (2021) No. 110C000927) issued by Grant Thornton Accounting Firm(special general partnership). On January 6, 2022, the Company disclosed the Announcement on theCompletion of Registration of the Grant of Reserved Part of Restricted Shares in the Phase IRestricted Share Incentive Plan. On January 17, 2022, the Company disclosed the Announcement onthe Completion of Repurchase and Cancellation of Some Restricted Shares.On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and the 23rdmeeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on Repurchaseand Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan. It wasagreed to repurchase 789,711 shares at a price of CNY 6.39/share from 6 employees who are nolonger qualified as incentive objects, and the registered capital of the Company was changed to CNY4,653,324,902.00. This change was verified according to the Capital Verification Report(XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special general partnership).On November 14, 2022, the Company disclosed the Announcement on Completion of Repurchaseand Cancellation of Some Restricted Shares.On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directors and the26th meeting of the 9th Board of Supervisors to deliberate and adopt the Proposal on Repurchase andCancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed torepurchase 1,359,247 shares from 11 employees who are no longer qualified as incentive objects at aprice of CNY 6.39 per share. The registered capital of the Company was changed to CNY4,651,965,655.00. This change was verified according to the Capital Verification Report(XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special general partnership).On January 17, 2023, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares.
On December 15, 2022, the Company held the 30th Meeting of the 9th Board of Directors and the26th Meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal on theAchievement of Unlocking Conditions in the First Release Period of the Restricted Shares FirstlyGranted in the Phase I Restricted Incentive Plan. The unlocking conditions in the first release periodof the restricted shares firstly granted in the phase I restricted incentive plan had been fulfilled. Theunlocking matters of the first restriction releasing period for restricted shares firstly granted werehandled in accordance with the restricted share incentive plan. There were a total of 311 incentiveobjects eligible for unlocking, and the number of restricted stocks unlocked this time was 13,042,347,and these shares were listed on May 16, 2023. On February 3, 2024, the Company disclosed theIndicative Announcement on the Listing and Circulation of Unlocked Shares in the First ReleasePeriod of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board ofDirectors and the 26th Meeting of the 9th Board of Supervisors on December 15, 2022. Theparticipant at the meeting agreed to repurchase and cancel all or some restricted shares granted to 6incentive objects but not yet released, totaling 723,435 shares, and the registered capital of theCompany was changed to CNY 4,651,242,220. This change was verified according to the CapitalVerification Report (XYZH/2023CCAA2B0103) issued by ShineWing Accounting Firm (specialgeneral partnership). On April 28, 2023, the Company disclosed the Announcement on Completionof Repurchase and Cancellation of Some Restricted Shares.On March 31, 2023, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in theSecond Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period ofReleasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan andRepurchase and Cancellation of Some Restricted Shares was reviewed and approved at the 32ndMeeting of the 9th Board of Directors and the 28th Meeting of the 9th Board of Supervisors. Theparticipants at the meeting agreed to repurchase and cancel all or some restricted shares granted to327 incentive objects but not yet released, totaling 13,909,890 shares, and the registered capital ofthe Company was changed to CNY 4,637,332,330. This change was verified according to the CapitalVerification Report (XYZH/2023CCAA2B017) issued by ShineWing Accounting Firm (special
general partnership). On June 30, 2023, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares.On April 27, 2023, the Company held the 2nd Meeting of the 10th Board of Directors and the 2ndMeeting of the 10th Board of Supervisors, respectively, and reviewed and approved the Proposal onReleasing Restriction on Sales of Part of Restricted Shares. The Board of Directors believed thatconditions for releasing restricted sales of restricted shares in the first restriction releasing period forincentive objects Hu Hanjie, Wu Bilei, Zhang Guohua and Wang Jianxun had been fulfilled, andagreed to release restricted sales of restricted shares in the first restriction releasing period for them,totaling 64,954 shares. and these shares were listed on May 16, 2023. On May 15, 2023, theCompany disclosed the Indicative Announcement on Sales Restriction Releasing and Listing andCirculation of Part of Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board ofDirectors and the 4th Meeting of the 10th Board of Supervisors on August 29, 2023. The participantsat the meeting agreed to repurchase and cancel all or some restricted shares granted to 8 incentiveobjects but not yet released, totaling 333,855 shares, and the registered capital of the Company waschanged to CNY 4,636,998,475.00. This change was verified according to the Capital VerificationReport (XYZH/2023CCAA2B0188) issued by ShineWing Accounting Firm (special generalpartnership). On November 29, 2023, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board ofDirectors and the 6th Meeting of the 10th Board of Supervisors on November 20, 2023. Theparticipants at the meeting agreed to repurchase and cancel all or some restricted shares granted tosome incentive objects but not yet released, totaling 512,807 shares, and the registered capital of theCompany was changed to CNY 4,636,485,668. This change was verified according to the CapitalVerification Report (XYZH/2024CCAA2B0020) issued by ShineWing Accounting Firm (specialgeneral partnership). On March 28, 2024, the Company disclosed the Announcement on Completionof Repurchase and Cancellation of Some Restricted Shares.
The Company establishes a corporate governance structure consisting of the Shareholders' Meeting,the Board of Directors and the Board of Supervisors, and has one wholly-owned subsidiary, JiefangLimited. Jiefang Limited has six wholly-owned subsidiaries, namely, FAW Jiefang (Qingdao)Automotive Co., Ltd., Wuxi Dahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd.,FAW Jiefang Austria R&D Co., Ltd., FAW Jiefang New Energy Automotive Sales Co., Ltd., andFAW Jiefang Younida (Tianjin) Technology Co., Ltd. It also has 11 associated companies, namely,First Automobile Finance Co., Ltd., Sanguard Automobile Insurance Co., Ltd., FAW ChangchunBaoyou Jiefang Steel Processing and Distribution Co., Ltd., FAW Changchun Ansteel SteelProcessing and Distribution Co., Ltd., Changchun Wabco Automotive Control System Co., Ltd.,Suzhou Zhito Technology Co., Ltd., FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd.,Smartlink Intelligent Technology (Nanjing) Co., Ltd., Foshan Diyiyuansu New Energy TechnologyCo., Ltd., Changchun Automotive Test Center Co., Ltd. and Diyi AESC New Energy PowerTechnology (Wuxi) Co., Ltd. It has 1 joint company, namely, FAW Jiefang-CATL New EnergyTechnology Co., Ltd.Business scope of the Company: R&D, production and sales of light, medium and heavy trucks,complete vehicles, buses, bus chassis, medium truck deformation vehicles, automobile assembliesand parts, machining, diesel engines and accessories (non-vehicle), mechanical equipment andaccessories, instruments, technical services, technical consultation, installation and maintenance ofmechanical equipment, lease of mechanical equipment and facilities, lease of houses and workshops,labor services (excluding foreign labor cooperation and domestic labor dispatch), sales of steel,automobile trunks, hardware & electrical equipment and electronic products, testing of internalcombustion engine, engineering technology research and testing, advertising design, production andrelease, import and export of goods and technologies (excluding publication import business andcommodities and technologies that are restricted or prohibited for import and export by the state);value-added telecommunications services; car rentals and second-handed car sales; (the followingitems are operated by the branch company) Chinese food production and sales, warehousing andlogistics (excluding flammable, explosive and precursor dangerous chemicals), automobile repair,tank manufacturing of chemical liquid tanker, automobile trunk manufacturing; operation of medicaldevices, Internet freight (excluding road transport of dangerous goods); road freight transport(excluding dangerous goods) (items subject to approval according to law can be operated only afterbeing approved by relevant authorities).
Registered address of the Company: No. 2259, Dongfeng Street, Changchun AutomobileDevelopment Zone, Jilin Province.The legal representative of the Company is Wu Bilei.The financial statements and notes to the financial statements were approved for issue by the Boardof Directors of the Company on March 28, 2024.
2. Scope of consolidated financial statements
In 2023, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in the scope ofconsolidation. For details, please refer to IX "Changes in Consolidation Scope" and X "Equity inOther Entities" of Section X - Financial Report.IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for BusinessEnterprises issued by the Ministry of Finance and its application guidelines, interpretations and otherrelevant provisions (hereinafter collectively referred to as "ASBE"). In addition, the Company alsodiscloses relevant financial information according to the Rules No. 15 for Preparing InformationDisclosure by Companies Offering Securities to the Public—General Provisions on FinancialReporting (2023 Revision) issued by China Securities Regulatory Commission.
2. Continuing operations
The financial statements are presented on continuing operations.The financial accounting of the Company is based on the accrual basis. The financial statements areprepared on a historical cost basis except for certain financial instruments. If the assets are impaired,the corresponding provision for impairment shall be made as specified.V. Significant Accounting Policies and Accounting EstimatesTips for specific accounting policies and accounting estimates: The Company determines thedepreciation of fixed assets, amortization of intangible assets, capitalization conditions of R&D
expenses and income recognition policies according to its own production and operationcharacteristics. For specific accounting policies, please see V "Significant Accounting Policies andAccounting Estimates" 21, 23 and 30 in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprisesThe financial statements prepared by the Company meet the requirements of ASBE and truly andfully reflect the consolidated and company’s financial position as of December 31, 2023 of theCompany and its information such as consolidated and company’s operating results and consolidatedand company’s cash flow for the year then ended.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The overseassubsidiaries of the Company determine EUR as the recording currency according to the currency inthe main economic environment in which they operate. The Company uses CNY to prepare thefinancial statements.
5. Methods for determining materiality criteria and selection basis?Applicable □Not applicable
| Item | Materiality Criteria |
| Receivables with significant provision for bad debts by individual item | 10% of the absolute value of net profit or 10% of similar business |
| Write-off of significant receivables in the current period | 10% of the absolute value of net profit or 10% of similar business |
| Significant changes in the book value of contractual assets | 10% of the absolute value of net profit or 10% of similar business |
| Major projects under construction | 10% of the absolute value of net profit or 10% of similar business |
| Significant capitalized R&D projects | 10% of the absolute value of net profit or 10% of similar business |
6. Accounting treatment method for business merger under common control and differentcontrol
(1) Business merger under common control
As to the business merger under common control, the assets and liabilities of the combined partyobtained by the combining party are calculated in the book value in the consolidated financialstatements of the ultimate controller by the combined party on the combination date. The capitalreserve (stock premium) is adjusted based on the difference between the book value of thecombination consideration and the book value of the net assets obtained in the combination. Theretained earnings are adjusted if the capital reserve (stock premium) is insufficient for offset.Business merger under common control realized step-by-step through multiple transactionsThe assets and liabilities of the combined party obtained by the combining party in the combinationare measured based on the book value of the ultimate controlling party in the consolidated financialstatements on the combination date. The capital reserve (share capital premium) is adjusted based onthe difference between the sum of the book value of the pre-combination investment and the bookvalue of the newly paid consideration on the combination date and the book value of the net assetsobtained in the combination. The retained earnings are adjusted if the capital reserve is insufficientfor offset. The long-term equity investment held before the acquisition of the combined party’scontrol by the combining party and the profit or loss, other comprehensive incomes and changes inother owners’ equities that have been recognized during the period from the date of acquisition of theoriginal equity, or the date of common control of the combining party and the combined entity(which is later) to the combination date shall offset against the retained opening earnings or currentprofit or loss respectively during the period of comparative statement.
(2) Business merger under different control
In case of business merger under different control, the combination cost is the fair value of assetspaid, liabilities incurred or assumed and equity securities issued on the acquisition date for acquiring
the control over the acquiree. The assets, liabilities and contingent liabilities of the acquiree obtainedare recognized as per the fair value on the acquisition date.Where the combination cost is greater than the fair value of identifiable net assets obtained from theacquiree, the difference shall be recognized as goodwill and subsequently measured by deducting theaccumulated depreciation provision by cost; Where the combination cost is less than the fair value ofidentifiable net assets obtained from the acquiree, the difference shall be included in current profitsand losses after review.Business merger not under common control realized step-by-step through multiple transactionsThe combination cost is the sum of the consideration paid on the acquisition date and the fair valueof the acquiree's equity already held before the acquisition date on the acquisition date. Theacquiree's equity held before the acquisition date shall be remeasured at the fair value of the equityon the acquisition date. The difference between the fair value and its book value shall be included inthe investment income for the current period. If the acquiree's equity held before the acquisition dateinvolves other comprehensive income, changes in other owner's equities shall be transformed intothe current profit on the acquisition date, except other comprehensive income generated due toremeasuring the change in net liabilities or net assets of the defined benefit plan (DBP) by theinvestee, and other comprehensive income related to a non-trading equity instrument investmentoriginally measured at fair value with its changes included in other comprehensive income.
(3) Disposal of related handling charges for business merger
The overhead for the business merger of the combining party, including the expenses for audit, legalservices, assessment, and other administrative expenses, shall be recorded in current profits andlosses when they occur. The transaction expenses of the equity securities or liability securities issuedas the consideration for the combination shall be recorded as the initial recognition amount of theequity securities or liability securities.
7. Criteria for control and preparation method of consolidated financial statements[Document No.15, Article XVI (VI), Criteria for control and preparation method of consolidatedfinancial statements]
(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers tothe power of the Company over the investee, with which the Company enjoys variable returnsthrough participating in related activities of the investee and is able to influence its amount of returnwith the power over the investee. The Company will carry out re-assessment when changes inrelevant facts and circumstances result in changes in elements involved in the definition of control.When determining whether to include structured entities in the consolidation scope, the Companyassesses whether to control the structured entity by comprehensively taking all facts andcircumstances into consideration, including assessing the purpose and design of the structured entity,identifying the types of variable returns, and assessing whether it assumes part or all of thevariability of the returns through its participation in related activities of the entity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financialstatements of the Company and its subsidiaries and with other relevant data. The major accountingpolicies and accounting periods adopted by the subsidiaries are defined as the same as those of theCompany during the preparation of the consolidated financial statements. The significanttransactions and balances between companies are offset.Where a subsidiary or business has been acquired through a business merger involving enterprisesunder common control in the reporting period, the subsidiary or business is deemed to be included inthe consolidated financial statements from the date they are controlled by the ultimate controllingparty. Their operating results and cash flows are respectively included in the consolidated incomestatement and consolidated cash flow statement from the date they are controlled by the ultimatecontrolling party.For the subsidiaries and businesses increased in the reporting period due to business merger underdifferent control, their earnings, expenses and profits from the acquisition date to the end of thereporting period are included in the consolidated profit statement, and their cash flows are includedin the consolidated cash flow statement.
The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listedseparately under the item “Shareholders’ Equity” in consolidated balance sheet as minorityshareholders’ equity. The portion of net profit or loss of subsidiaries in current period belonging tominority shareholders’ equity shall be listed separately under the item “Minority Shareholders’ Profitor Loss” in the consolidated income statement. If the loss of a subsidiary borne by minorityshareholders exceeds the amount of their shares of owners' equity in the subsidiary at the beginning,the balance shall offset the minority equity.
(3) Purchase of minority shareholders' equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on thedifference between the newly acquired long-term equity investment cost from the purchase ofminority equity and the share of net assets in the subsidiary calculated constantly from the purchasedate or combination date as per the newly increased shareholding proportion, and the differencebetween the disposal price obtained from the partial disposal of equity investment in the subsidiarywithout losing the right of control and the share of net assets in the subsidiary calculatedcontinuously from the purchase date or combination date corresponding to the disposed long-termequity investment. The retained earnings are adjusted if the capital reserve is insufficient for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equityinvestment or other reasons, the remaining equity shall be recalculated at fair value on the day whenthe control power is lost. The balance from the sum of consideration obtained from the disposal ofequity and the fair value of the remaining equity minus the sum of the share of net assets book valueand the goodwill of original subsidiaries calculated continuously starting from the purchase date asper the original shareholding ratio shall be included in current investment income at the loss ofcontrol.Other comprehensive income in connection with equity investment of the original subsidiaries shallbe subject to accounting method on the same basis as the original subsidiary's direct disposal ofrelevant assets or liabilities upon the loss of control. Other changes in owners' equity related to theoriginal subsidiary that are accounted by the equity method shall be transferred to the current profitsand losses upon the loss of control.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for JointOperationsJoint arrangement refers to an arrangement jointly controlled by two or more participants. Jointarrangements of the Company include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bearsrelated liabilities.The Company recognizes the following items related to the interest share in the joint operation andcarries out accounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per itsshares;E. Recognizing the expenses incurred separately and the expenses arising from joint operation as perits shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assetsof the arrangement.The Company conducts accounting for the investment of joint ventures according to provisions ofthe equity method accounting for long-term equity investments.
9. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cashequivalents refer to the short-term and highly liquid investments held by the Company that arereadily convertible into known amounts of cash and with low risk in value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency atthe exchange rate determined by systematic and reasonable methods.On the balance sheet date, the foreign currency monetary items are converted at the spot exchangerate on the balance sheet date. The exchange difference arising from the difference between the spotexchange rate on the balance sheet date and the spot exchange rate at the time of initial recognitionor on the previous balance sheet date is included in current profits and losses. Foreign currency non-monetary items measured at historical cost are still converted at the spot exchange rate on thetransaction date. Foreign currency non-monetary items measured at fair value are converted at thespot exchange rate on the date when the fair value is determined. The difference between theconverted recording currency amount and the original recording currency amount is included incurrent profits and losses or other comprehensive income according to the nature of the non-monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries aretranslated, the assets and liabilities of the balance sheet are translated to CNY using the spotexchange rate at the balance sheet date. Items of the shareholders’ equity, except for “undistributedprofits”, are translated at the spot exchange rate at the dates on which such items arose.The income and expense items in the profit statement are translated at the exchange rate determinedby systematic and reasonable methods.
All items in the cash flow statement are translated at the exchange rate determined by systematic andreasonable methods. As an adjustment item for influence amount of cash, exchange rate movement isindependently presented as "Influence of exchange rate movement to cash and cash equivalent" incash flow statement.Differences arising from the translation of financial statements are separately presented as “Othercomprehensive income” in the shareholders’ equity of the balance sheet.During the disposal of overseas operation and upon the loss of the right of control, the conversiondifference of foreign currency statements listed under the shareholders' equity items in the balancesheet and related to the overseas operation is transferred to the current profits and losses of disposalin full or as per the disposal proportion of the overseas operation.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party, and form financialliabilities or equity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to thecontract of the financial instrument.If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions forderecognition.If the current obligations of financial liability have been discharged in total or in part, derecognize allor part of it. The Company (the Debtor) signs an agreement with the Creditor to replace the existingfinancial liabilities with new financial liabilities; the existing financial liabilities are derecognizedand the new financial liabilities are recognized when the contractual terms of the new financialliabilities and those of the existing financial liabilities are different in essence.
Financial assets transacted in a conventional way are subject to accounting recognition andderecognition on the transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the businessmode of financial assets management and the contractual cash flow characteristics of financial assetsat the time of initial recognition: financial assets measured at amortized cost, financial assetsmeasured at fair value with their changes included in other comprehensive income, and financialassets measured at fair value with their changes included in the current profits or losses.Financial assets are measured at fair value upon initial recognition. For financial assets at fair valuethrough profit or loss, relevant transaction costs are directly included in current profits and losses; forother types of financial assets, relevant transaction costs are included in the initially recognizedamount. For receivables arising from the sale of products or the provision of services that do notinclude or take into account significant financing components, the Company takes the considerationamount entitled to receive in expectation as the initially recognized amount.Financial assets measured at amortized costThe Company classifies the financial assets that meet the following conditions but are not designatedto be measured at fair value and with the changes included in current profits or losses as the financialassets measured at amortized cost:
? The Company manages the financial assets in order to collect contractual cash flows;? The contract terms of the financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and the interest based on the outstanding principalamount.After initial recognition, such financial assets are measured at amortized cost using the effectiveinterest method. Any gains or losses on financial assets at amortized cost that are not part of thehedging relationship are charged to the current profit or loss at derecognition, amortization using theeffective interest method, or recognition of impairment.
Financial assets measured at fair value with their changes included in other comprehensiveincomeThe Company classifies financial assets that meet the following conditions and are not designated tobe financial assets at fair value with their changes included in current profit or loss as financial assetsat fair value with their changes included in other comprehensive incomes:
? The Company manages the financial assets in order not only to collect contractual cash flows
but also to sell the financial assets;
? The contract terms of the financial assets stipulate that the cash flow generated on a specificdate is only the payment of the principal and the interest based on the outstanding principalamount.After initial recognition, such financial assets are subsequently measured at fair value. Interests,impairment losses or gains and exchange gains and losses calculated with the effective interestmethod are included in the current profits and losses, and other gains or losses are included in othercomprehensive income. When the financial assets are derecognized, the accumulated profits or lossespreviously included in other comprehensive income are transferred out and included in the currentprofits and losses.Financial assets at fair value through profit or lossExcept for the above-mentioned financial assets measured at amortized cost and fair value throughother comprehensive income, the Company classifies all remaining financial assets as financialassets measured at fair value through profit or loss. At the time of initial recognition, in order toeliminate or significantly reduce accounting mismatch, the Company irrevocably designates somefinancial assets that should be measured at amortized cost or fair value through other comprehensiveincome as financial assets measured at fair value through current profits and losses.After initial recognition, such financial assets are subsequently measured at fair value, and the gainsor losses (including interest and dividend income) incurred are included in current profits and lossesunless they are part of a hedging relationship.
The business model of managing financial assets refers to how the Company manages financialassets to generate cash flows. The business model determines whether the cash flow of financialassets managed by the Company comes from collecting contractual cash flows, selling financialassets, or both. The Company determines the business model for managing financial assets on thebasis of objective facts and specific business objectives for managing financial assets decided by keymanagement personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determinewhether the contractual cash flow generated by relevant financial assets on a specific date is only thepayment of principal and interest based on the outstanding principal amount. Principal refers to thefair value of financial assets at initial recognition; interest includes consideration for the time valueof money, credit risk associated with the amount of principal outstanding over a specific period, andother underlying borrowing risks, costs and profits. In addition, the Company evaluates the contractterms that may cause changes in the time distribution or amount of contractual cash flows offinancial assets to determine whether they meet the requirements for the above-mentionedcontractual cash flow characteristics.Only when the Company changes its business model for managing financial assets, can all affectedrelated financial assets be reclassified on the first day of the first reporting period after the change inbusiness model; otherwise, financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets at fair valuethrough profit or loss, relevant transaction costs are directly included in current profits and losses; forother types of financial assets, relevant transaction costs are included in the initially recognizedamount. For accounts receivable arising from sales of products or provision of labor services that donot include or consider significant financing components, the consideration amount that theCompany is expected to be entitled to receive will be taken as the initially recognized amount.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profitor loss and financial liabilities measured at amortized cost upon initial recognition. For financialliabilities not classified as those measured at fair value through profit or loss, relevant transactioncosts are included in their initially recognized amounts.
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading andthose designated upon initial recognition to be measured at fair value through profit or loss. Suchfinancial liabilities are subsequently measured at fair value, and the gains or losses arising fromchanges in fair value as well as dividends and interest expenses related to such financial liabilities areincluded in current profits and losses.Financial liabilities measured at amortized costOther financial liabilities are subsequently measured at amortized cost using the effective interestmethod, and gains or losses arising from derecognition or amortization are included in current profitsand losses.Distinction between financial liabilities and equity instrumentsFinancial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties underpotentially adverse conditions.
③ A non-derivative instrument contract that must or can be settled with the enterprise's own equityinstruments in the future, and according to which the enterprise will deliver a variable number of itsown equity instruments.
④ A derivative contract that must or can be settled with the enterprise's own equity instruments inthe future, except for derivative contracts where a fixed amount of its own equity instruments isexchanged for a fixed amount of cash or other financial assets.An equity instrument refers to a contract that can prove the residual equity in the assets of anenterprise after all liabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cashor other financial assets, the contractual obligation meets the definition of financial liabilities.
If a financial instrument must or can be settled with the Company's own equity instruments, it isnecessary to consider whether the Company's own equity instruments used for settlement of suchinstruments are used as substitutes for cash or other financial assets or to enable the instrumentholder to enjoy residual equity in the assets of the issuer after deduction of all liabilities. If meets theformer condition, the financial instrument should be recognized as financial liabilities; If meets thelatter condition, the financial instrument is recognized as an equity instrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 35"Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X - FinancialReport.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items onthe basis of expected credit losses:
? Financial assets measured at amortized cost;? Receivables and debt investments at fair value through other comprehensive income;? Contract assets as defined in ASBE NO. 14 - Revenue;? Lease receivables;? Financial guarantee contracts (except for those measured at fair value through profit and loss,where the transfer of financial assets does not meet derecognition conditions or iscontinuously involved in the transferred financial assets).Measurement of expected credit lossesExpected credit loss refers to the weighted average of the credit losses of financial instruments thatare weighted by the risk of default. Credit loss refers to the difference between all contractual cashflows receivable according to the contract and discounted by the Company at the original effectiveinterest rate and all cash flows expected to be collected, that is, the present value of all cash shortages.The Company considers reasonable and reliable information about past events, current situation andforecast of the future economic situation, weighs the risk of default, calculates the probability
weighted amount of the present value of the difference between the cash flow receivable from thecontract and the cash flow expected to be received, and recognizes the expected credit loss.The Company measures the expected credit losses of financial instruments at different stagesrespectively. For financial instruments for which the credit risk has not significantly increased sinceinitial recognition, they are classified in Stage 1. The company measures the loss provision based onexpected credit losses over the next 12 months. For financial instruments in which the credit risk hassignificantly increased since initial recognition but no credit impairment has occurred, they areclassified in Stage 2. The company measures the loss provision based on the expected credit lossesover the entire remaining lifetime of the instrument. For financial instruments in which a creditimpairment has occurred since initial recognition, they are classified in Stage 3. The companymeasures the loss provision based on the expected credit losses over the entire remaining lifetime ofthe instrument.The Company assumes that the credit risk of the financial instruments with a low credit risk on thebalance sheet date has not increased significantly since the initial recognition, and measures theprovision for loss based on the expected credit loss in the next 12 months.The expected credit loss during the whole duration refers to the expected credit loss caused by alldefault events that may occur during the whole expected duration of financial instruments. Theexpected credit loss in the next 12 months refers to that caused by the possible default events of thefinancial instruments within 12 months after the balance sheet date (or the expected duration if theexpected duration of financial instruments is less than 12 months), which is a part of the expectedcredit loss in the whole duration.During the measurement of expected credit losses, the maximum term to be considered by theCompany is the maximum contract term of the enterprise facing credit risk (including the option torenew the contract).For financial instruments in the first and second stages and with low credit risk, the Companycalculates interest income according to the book balance before deducting impairment provision andthe actual interest rate. For financial instruments in the third stage, interest income is calculatedaccording to their book balance minus the amortized cost after impairment provision and theeffective interest rate.
Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable and contract assets, the Company always measures theirloss provision according to the amount equivalent to the expected credit loss in the whole duration nomatter whether there is any significant financing component.If the expected credit loss of a single financial or contractual asset cannot be evaluated at areasonable cost, the Company divides the notes receivable, accounts receivable and contractualassets into portfolios according to the credit risk characteristics based on the following, andcalculates the expected credit loss on the basis of the portfolios:
A. Notes receivable? Notes receivable portfolio 1: bank acceptance bills? Notes receivable portfolio 2: commercial acceptance billsB. Accounts receivable? Aging portfolioC. Contract assets
? Aging portfolio
The Company calculates the expected credit loss of the notes receivable and contract assets dividedinto portfolios by referring to the historical credit loss experience, combining the current situationand the forecast of the future economic situation, and based on the default risk exposure and theexpected credit loss rate for the whole duration.For accounts receivable divided into portfolios, the Company prepares a comparison table of accountreceivable aging/overdue days and expected credit loss rate for the whole duration with a referenceto historical credit loss experience and in combination with the current situation and forecast of thefuture economic situation, so as to calculate the expected credit loss. The aging of accountsreceivable is calculated from the date of recognition, and the number of days overdue from the creditexpiration date.
Other receivablesThe Company divides other receivables into several portfolios according to the credit riskcharacteristics based on the following, and calculates the expected credit loss according to theportfolios:
? Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund? Portfolio 2 of other receivables: aging portfolio
For other receivables divided into portfolios, the Company calculates the expected credit lossthrough default risk exposure and expected credit loss rate in the next 12 months or the wholeduration. The aging of other receivables divided into portfolios by aging is calculated from the dateof recognition.Long-term receivablesThe Company's long-term receivables include the receivables from sales of goods by installments.The Company divides the long-term receivables into several portfolios according to the credit riskcharacteristics based on the following, and calculates the expected credit loss on the basis of theportfolios:
Finance lease receivables
? Long-term receivables portfolio 1: receivables from sales of goods by installments? Long-term receivables portfolio 2: other receivables
The Company calculates the expected credit loss of the receivables from sales of goods byinstallments based on the default risk exposure and the expected credit loss rate for the wholeduration with a reference to the historical credit loss experience, the current situation and the forecastof the future economic situation.The Company calculates the expected credit loss of other receivables and long-term receivablesdivided into portfolios other than receivables from sales of goods by installments according to thedefault risk exposure and the expected credit loss rate in the next 12 months or the whole duration.
Debt investment and other debt investmentsFor debt investments and other debt investments, the Company calculates expected credit lossesaccording to the nature of the investment, various types of counterparties and risk exposures, defaultrisk exposures and expected credit loss rates in the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Company compares the risk of default of financial instruments on the balance sheet date with therisk of default on the initial recognition date so as to determine the relative change in the default riskof financial instruments in the expected duration and evaluate whether the credit risk of financialinstruments has increased significantly since the initial recognition.In determining whether the credit risk has increased significantly since initial recognition, theCompany considers reasonable and well-founded information (including forward-lookinginformation) that can be obtained without unnecessary additional costs or efforts. The information tobe considered by the Company is as follows:
? Failure of the debtor to pay the principal and interest on the due date of the contract;? Serious deterioration in the external or internal credit rating (if any) of the financial
instrument that has occurred or is expected;? Serious deterioration of the debtor's operating results that has occurred or is expected;? Changes in the technical, market, economic or legal environment that has occurred or is
expected and their potential material adverse effect on the repayment ability of the debtor to
the Company.According to the nature of financial instruments, the Company evaluates whether the credit risk hasincreased significantly on the basis of individual financial instruments or portfolios of financialinstruments. When evaluating on the basis of portfolios of financial instruments, the Company mayclassify the financial instruments based on common credit risk characteristics, such as overdueinformation and credit risk rating.If it is overdue for more than 30 days, the Company determines that the credit risk of financialinstruments has increased significantly.
Credit-impaired financial assetsThe Company evaluates on the balance sheet date whether credit impairment has occurred on thefinancial assets measured at amortized cost and on the creditor's debt investment measured at fairvalue through other comprehensive income. A financial asset becomes credit-impaired when one ormore events that have an adverse impact on its expected future cash flows occur. Evidence of creditimpairment of financial assets includes the following observable information:
? The issuer or the debtor is involved in serious financial difficulties;? The debtor breaches the contract, such as default on or overdue repayment of interest orprincipal;
? The Company, for economic or contractual reasons relating to the debtor’s financial difficulty,grants the debtor concessions that would not have been made in any other circumstances.
? There is a great possibility of bankruptcy or other financial restructuring of the debtor;? The financial difficulties of the issuer or debtor result in the disappearance of the active
market of such financial assets.Presentation of provision for expected credit lossIn order to reflect the changes in the credit risk of financial instruments since the initial recognition,the Company remeasures the expected credit loss on each balance sheet date; the increased orreversed amount of the loss provision arising therefrom shall be included in the current profits andlosses as impairment losses or gains. The loss provision of the financial assets measured at amortizedcost is used to offset their book value presented in the balance sheet. For the debt investmentmeasured at fair value with its changes included in other comprehensive income, the Companyrecognizes its loss provision in other comprehensive income, which will not offset the book value ofthe financial assets.Write-offThe Company writes down the book balance of the financial assets when it no longer reasonablyexpects that the contractual cash flow of the financial asset can be recovered in whole or in part.Such write-down constitutes the derecognition of related financial assets. This usually occurs whenthe Company determines that the debtor has no assets or sources of income that can generate
sufficient cash flows to repay the amount to be written down. However, the written-down financialassets may still be affected by the execution activities according to the Company's procedures forrecovering due amounts.Any financial assets that have been previously written off and subsequently recovered are recognizedas a reversal of impairment loss and recorded in the current period's income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party(transferee) other than the issuer of such financial assets.The financial asset is derecognized if the Company has transferred substantially all the risks andrewards of ownership of a financial asset to the transferee. The financial asset is not derecognized ifthe Company has retained substantially all the risks and rewards of ownership of a financial asset.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financialasset, it shall deal with them as follows: if the control over the financial asset is waived, the financialasset shall be derecognized and the assets and liabilities incurred shall be recognized; if the controlover the financial asset is not waived, the relevant financial asset shall be recognized to the extentthat it continues to be involved in the transferred financial asset, and the relevant liabilities shall berecognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount afteroffsetting each other when the Company has a legal right to offset the recognized financial assets andfinancial liabilities and the legal right can be exercised currently, and when the Company intendseither to settle on a net basis, or to realize the financial assets and pay off the financial liabilitiessimultaneously. In other cases, financial assets and financial liabilities are presented separately in thebalance sheet and are not offset against each other.
12 Notes receivableRefer to 11 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.13 Accounts receivableRefer to 11 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.14 Receivables financingRefer to 11 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.15 Other receivablesRefer to 11 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.16 Contract assetsThe Company presents the contract assets or contract liabilities in the balance sheet according to therelationship between the performance obligations and the customer's payment. The Companypresents the contract assets and liabilities under the same contract on a net basis after offsetting eachother.A contractual asset refers to a right to receive consideration for goods or services that have beentransferred to a customer, and the right depends on factors other than the passage of time.For the determination method and accounting method of the Company for the expected credit loss ofthe contract assets, refer to 11 "Financial instruments" in V "Significant Accounting Policies andAccounting Estimates" of Section X - Financial Report.
17. Inventories
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished productsand goods in process, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company's inventories are accounted for at the planned cost when acquired. The differencebetween the planned cost and the actual cost is accounted for through the cost variance account, andthe cost variance that should be borne by the inventories sent out is carried forward on schedule toadjust the planned cost to the actual cost.
(3) Basis and method for provision of inventory depreciation reservesOn the balance sheet date, inventories are measured at the lower of cost and net realizable value.When the net realizable value of the inventories is lower than their cost, a provision for inventorydepreciation reserves is made.Net realizable value refers to the difference of the estimated sale price of inventory less the cost toestimated be incurred until completion, estimated sales expenses and related taxes. The net realizablevalue of inventories is determined based on the unambiguous evidence obtained as well as theconsideration of the purpose of holding inventories and the impact of events after the balance sheetdate.The Company makes provision for inventory depreciation reserves on an individual inventory itembasis. Provision for inventory depreciation reserves is made by inventory category for inventorieswith large quantities and low unit prices.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) Amortization method of low-value consumables and packaging materialsLow-value consumables and packaging materials of the Company are amortized by one-off write-offmethod when acquired.
18. Long-term receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.
19. Long-term equity investments
Long-term equity investments include equity investments to subsidiaries, joint ventures andassociated enterprises. The investee which may be subject to significant influence of the Company isan associated enterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equityinvestment acquired from the business combination under common control, the investment costrefers to the share of the book value of the owner's equity of the combined party in the consolidatedfinancial statements of the ultimate controlling party on the combination date; for the long-termequity investment acquired from the business combination under different control, the investmentcost refers to the combination cost.For long-term equity investments acquired by other methods: For those acquired with cash payment,the actual purchase price shall be recognized as the initial investment cost; for those acquiredthrough the issuance of equity securities, the fair value of issued equity securities shall be recognizedas the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets theconditions for held-for-sale; investments to associated enterprises and joint ventures are accountedfor with the equity method.
For long-term equity investments calculated by cost method, except for the declared but not yetreleased cash dividends or profits included in the actual price or consideration paid when theinvestment is acquired, the distributed cash dividends or profits declared by the investee shall berecognized as investment income and included in current profits and losses.For the long-term equity investments accounted for with the equity method, the investment cost isnot adjusted if the initial investment cost exceeds the share of the fair value of the investee'sidentifiable net assets at the time of the investment; the book value of the long-term equityinvestment is adjusted and the difference is included in the current profits and losses if the initialinvestment cost is less than the share of fair value of the investee's identifiable net assets at the timeof the investment.For accounting with the equity method, the investment income and other comprehensive incomeshall be recognized respectively according to the share of the net profits and losses and othercomprehensive income realized by the investee that shall be enjoyed or shared. Meanwhile, the bookvalue of the long-term equity investments shall be adjusted. The part of due share shall be calculatedaccording to the distributed profit or cash dividend declared by the investee, and the book value ofthe long-term equity investment shall be reduced accordingly. For other changes in owners' equity ofthe investee except net profit and loss, other comprehensive income and profit distribution, the bookvalue of long-term equity investment shall be adjusted and included in capital reserve (other capitalreserve). The Company recognizes its share of the investee's net profits or losses based on the fairvalues of the investee's individual separately identifiable assets at the time of acquisition, aftermaking appropriate adjustments thereto in conformity with the accounting policies and accountingperiods of the Company.The sum of the fair value of the original equity and the new investment cost is taken as the initialinvestment cost calculated with the equity method on the date of conversion if it is possible to exertsignificant influence on or implement joint control but not constitute control over the investee due toadditional investment or other reasons. The cumulative changes in fair value originally included inother comprehensive income related to the original equity are transferred to retained earnings whenthe equity method is adopted if the original equity is classified as a non-trading equity instrumentmeasured at fair value through other comprehensive income.
In case the Company loses joint control of or the significant influence on the investee due to thedisposal of part of the equity investment, the residual equity after the disposal is accounted for inaccordance with the Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments on the date of losing the joint control or significant influence,and the difference between the fair value and the book value is included in the current profits andlosses. Other comprehensive income recognized from the original equity investment accounted withthe equity method shall be accounted for on the same basis as the direct disposal of relevant assets orliabilities of the investee when the equity method is terminated. Other changes in owner’s equityrelated to the original equity investment shall be transferred into current profit and loss.In case the Company loses the right of control over the investee due to the disposal of partial equityinvestment or other reasons, the equity method is applied, and it is deemed that the residual equity isadjusted with the equity method from the time of acquisition if the residual equity after disposal canexert joint control over or significant influence on the investee; the accounting is carried outaccording to the Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments, and the difference between the fair value and the book valueon the date of losing control is included in the current profits and losses if the residual equity afterdisposal cannot exert joint control over or significant influence on the investee.If the shareholding ratio of the Company decreases due to capital increase by other investors,resulting in loss of control but joint control over or significant influence on the investee, theCompany's share of net assets increased due to capital increase and share expansion of the investeeshall be recognized according to the new shareholding ratio, and the difference from the originalbook value of long-term equity investment corresponding to the decrease in shareholding ratio thatshall be carried forward shall be included in current profits and losses. Then, adjustments are madebased on the new shareholding ratio with the equity method as if it had been used since theacquisition of the investment.Unrealized gains and losses from internal transactions between the Company and its associatedenterprises and joint ventures that are attributable to the Company are calculated based on theshareholding ratio, and investment profits and losses are recognized based on the offsetting of thatportion. However, the unrealized loss from internal transactions incurred between the Company andits investee is not offset if it belongs to impairment loss from assets transferred.
(3) Basis for determining joint control and significant influence on the investeeJoint control refers to the control over certain arrangement under related agreements, and relatedactivities of the arrangement can only be determined with the unanimous consent of the partiessharing the control. During the judgment of joint control, it is required to determine whether thearrangement is controlled collectively by all participants or combinations of participants, and thendetermine whether decisions on activities related to the arrangement must be made with theunanimous consent of those participants who collectively control the arrangement. It is deemed thatall participants or a group of participants collectively control the arrangement if related activities ofan arrangement can be decided only with the concerted action of all participants or a group ofparticipants. If there are two or more combinations of parties that can collectively control anarrangement, this situation does not constitute joint control. For the determination of whether there isjoint control, protective rights are not taken into account.Significant influence refers to the power of the investor to participate in making decisions on thefinancial and operating policies of the investee, but cannot control or jointly control with otherparties over the preparation of these policies. The possibility of exerting significant influence on theinvestee is determined by considering the influence of the voting shares of the investee directly orindirectly held by the investor and the influence when it is assumed that the potential voting rightsexecutable for the current period held by the investor and other parties are converted into the equityof the investee, including the influence of the warrants, stock options and corporate bonds which canbe converted in the current period issued by the investee.It is generally considered that the Company has significant influence on the investee when theCompany directly holds more than 20% (inclusive) but less than 50% of the voting shares of theinvestee or holds indirectly through subsidiaries, unless there is clear evidence indicating that itcannot participate in the production and operation decisions of the investee under such circumstances,in which case it has no significant influence. It is generally not considered that the Company hassignificant influence on the investee when the Company owns less than 20% (exclusive) of thevoting shares of the investee, unless there is clear evidence indicating that it can participate in theproduction and operation decisions of the investee under such circumstances, in which case it hassignificant influence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision forasset impairment is described in 35 "Others" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.20 Investment propertiesMeasurement mode of investment properties: cost methodDepreciation or amortization methodInvestment properties refer to the properties held for earning rent or capital appreciation, or both.Investment properties of the Company include the land use rights that have already been rented, theland use rights held for transfer after appreciation, and the buildings that have been rented.Investment properties of the Company are initially measured as per the price upon acquisition anddepreciated or amortized on schedule as per relevant provisions on fixed assets or intangible assets.For the investment real estate which is subsequently measured with the cost mode, the method ofdrawing asset impairment is described in 35 "Others" in V "Significant Accounting Policies andAccounting Estimates" of Section X - Financial Report.The disposal income from the sale, transfer, retirement or damage of investment properties shall beincluded in current profits and losses after deducting its book value and relevant taxes.
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, renderingof services, the renting or operation and management, with a service life exceeding one accountingyear.The fixed assets can be recognized only when the economic benefits related to such fixed assets arelikely to flow into the enterprise and the cost of such fixed assets can be measured reliably.
Fixed assets of the Company are initially measured at the actual cost upon acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when therelated economic benefits are likely to flow into the Company and the costs can be reliably measured.The daily repair costs of fixed assets that do not meet the conditions for the subsequent expenditureof fixed assets capitalization are included in the current profits and losses or the costs of relevantassets based on the beneficiaries at the time of occurrence. For the replaced part, its book value isderecognized.
(2) Depreciation method
| Category | Depreciation Method | Depreciation Period | Residual Rate | Annual Depreciation Rate |
| Houses and Buildings | Straight-line method | 2020 | 3-5 | 4.85-4.75 |
| Machinery Equipment | Straight-line method | 10 years | 0-3 | 10.00-9.70 |
| Transportation Equipment | Straight-line method | 4-10 years | 0-5 | 25.00-9.50 |
| Electronic Equipment | Straight-line method | 3 years | 0-5 | 33.33-31.67 |
| Office Equipment | Straight-line method | 5 years | 3-5 | 19.40-19.00 |
| Others | Straight-line method | 5 years | 0-5 | 20.00-19.00 |
he Company uses the straight-line method for depreciation. The depreciation of fixed assets startswhen they reach the expected serviceable condition and stops when they are derecognized orclassified as non-current assets held for sale. Without taking into account the provision forimpairment, the Company determines the annual depreciation rate of various fixed assets accordingto the category, estimated service life and estimated residual value of fixed assets.Among them, for fixed assets with provision for impairment, the accumulated amount of provisionfor impairment shall also be deducted to calculate and determine the depreciation rate.
(3) For the impairment test methods and impairment provision methods of fixed assets, pleaserefer to 35 "Others" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.
(4) The Company reviews the service life, expected net residual value and depreciation methodof fixed assets at the end of each year.The service life of fixed assets shall be adjusted if the expected service life is different from theoriginal estimate, and the estimated net residual value shall be adjusted if the estimated net residualvalue is different from the original estimate.
(5) Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, therecognition of such fixed asset is terminated. The disposal income from the sale, transfer, retirementor damage of fixed assets shall be included in current profits and losses after deducting its bookvalue and relevant taxes.22 Construction in progressThe cost of construction in progress of the Company is recognized according to the actualconstruction expenditures, including various necessary construction expenditures incurred during theconstruction period, borrowing costs that shall be capitalized before the construction reaches theexpected condition for its intended use, and other relevant expenses.Construction in progress is transferred to fixed assets when it is ready for its intended use.For the method of provision for asset impairment of construction in progress, refer to 35 "Others" inV "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.23 Intangible Assets
(1) Service life and its determination basis, estimate, amortization method or review procedureIntangible assets of the Company include land use rights, software, non-patented technologies, etc.
Intangible assets are initially measured at cost and their service life is analyzed and judged at thetime of acquisition. Where the service life is limited, the intangible asset is amortized over itsexpected service life, from the time it is available, with an amortization method that reflects theexpected realization of the economic benefits associated with the asset. The straight-line method isadopted for amortization if the expected realization mode cannot be determined reliably. Intangibleassets with uncertain service life are not amortized.The amortization method for intangible assets with limited service life is as follows:
| Category | Service Life | Amortization Method | Remarks |
| Land Use Right | 50 years | Straight-line method | |
| Software | 2-10 years | Straight-line method | |
| Non-patented Technology | 5-10 years | Straight-line method |
The Company reviews the service life and amortization method of intangible assets with limitedservice life at the end of each year. If it is different from the previous estimate, the original estimateshall be adjusted and treated as a change in accounting estimates.The book value of an intangible asset is transferred into the current profits and losses in full if it isexpected that the asset cannot bring economic benefits to the enterprise in the future on the balancesheet date.For the method of provision for asset impairment of the intangible assets, refer to 35 "Others" in V"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accountingtreatment methodsThe Company's research and development expenditures are directly related to the Company'sresearch and development activities, including research and development labor costs, test expenses,depreciation costs, design fees, and trial production fees.The Company divides the expenditures of internal research and development projects intoexpenditures at the research stage and expenditures at the development stage.The expenditures at the research stage are included in current profits and losses when incurred.
Expenditures at the development stage can be capitalized only when the following conditions are metsimultaneously, namely, it is technically feasible to complete the intangible assets so that they can beused or sold; there is an intention to complete the intangible assets and use or sell them; the ways forintangible assets to generate economic benefits include proving that there is a market for the productsproduced by using the intangible assets or the intangible assets themselves, and proving theirusefulness if they are to be used internally; there are sufficient technical, financial and otherresources to support the development of the intangible assets and the ability to use or sell theintangible assets; the expenditure at the development stage of the intangible assets can be measuredreliably. The development expenditures failing to meet the above conditions are included in currentprofits and losses when they occur.The R&D projects of the Company enter the development stage after project approval by meeting theabove conditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures onthe balance sheet and are transferred into intangible assets from the date when the project realizes itsintended use.The capitalization conditions of specific research and development projects are as follows: TheCompany's research and development project ends with product planning, and the division point ofthe research and development stages lies in the fact that the overall plan of the development projectis prepared and adopted through deliberation and decision-making on the product project reviewmeeting (that is, project initiation). The expenses incurred in the planning stage before the projectinitiation are directly included in the current profits and losses, and those incurred after the projectinitiation are included in expenditures in the development stage.
24. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and jointventures, investment real estate subsequently measured by the cost model, fixed assets, projectsunder construction, right-of-use assets, intangible assets, etc. (except for inventories, deferred incometax assets and financial assets) is recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. Ifsuch a sign exists, the Company estimates the recoverable amount and conducts the impairment test.Impairment tests shall be carried out every year on goodwill resulting from business mergers,intangible assets with uncertain service life and intangible assets that are not available no matterwhether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposalexpenses or the present value of the expected future cash flow of the assets, whichever is higher. TheCompany estimates the recoverable amount based on a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group shall be determinedbased on the asset group to which the asset belongs. An asset group is determined based on the factthat the main cash inflows generated by the asset group are independent of the cash inflows of otherassets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Companywrites down its book value to the recoverable amount, and the write-down amount is included incurrent profits and losses, and the corresponding impairment provision of assets is made at the sametime.For the impairment test of goodwill, the book value of goodwill resulting from business merger isamortized to relevant asset groups with reasonable methods from the acquisition date, or amortizedto relevant asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant assetgroups or portfolios of asset groups are those that can benefit from the synergies of business mergerand are not greater than the reporting segment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwillduring the impairment test, the impairment test shall be carried out on the asset group or portfolio ofasset groups not including goodwill, and the recoverable amount shall be calculated to determine thecorresponding impairment loss. Then, an impairment test is carried out on the asset group orportfolio of asset groups including goodwill to compare its book value and recoverable amount, anddetermine the impairment loss of goodwill if the recoverable amount is lower than the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accountingperiods.
25 Long-term deferred expensesLong-term unamortized expenses of the Company shall be valued as per actual cost and averagelyamortized as per the expected benefit period. The amortized value of the long-term deferredexpenses that cannot benefit the future accounting period is included in the current profits and losses.
26. Contract liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to therelationship between the performance obligations and the customer's payment. The Companypresents the contract assets and liabilities under the same contract on a net basis after offsetting eachother.Contractual liability refers to an obligation to transfer goods or services to a customer for whichcustomer consideration has been received or receivable, such as payments received by an enterpriseprior to the transfer of promised goods or services.
27. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given byenterprises to obtain services provided by employees or to terminate labor relations. Employeecompensation includes short-term compensation, post-employment benefits, dismissal benefits andother long-term employee benefits. The benefits provided by the enterprise to employees' spouses,children, dependents, survivors of deceased employees and other beneficiaries also belong toemployee compensation.According to liquidity, employee compensation is listed in the "employee compensation payable"and "long-term employee compensation payable" items of the balance sheet.Short-term compensationIn the accounting period when employees provide services, the Company recognizes the employeewages, bonuses, social security contributions according to regulations such as medical insurance,
work injury insurance and maternity insurance as well as housing funds as liability, and includesthem in current profits and losses or relevant asset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. Thedefined contribution plan refers to the post-employment benefit plan that the enterprise will nolonger bear the payment obligation after paying fixed fees to independent funds. The defined benefitplan refers to the post-employment benefit plan other than the defined contribution plan.Defined contribution planThe defined contribution plan includes basic pension insurance, unemployment insurance andenterprise annuity plan.In the accounting period when employees provide services, the Company recognizes the amountpayable to a defined contribution plan as a liability, and includes it in the current profit or loss orrelevant asset cost.Defined benefit planThe defined benefit plan shows that an actuarial valuation is performed by an independent actuary onthe annual balance sheet date, and the benefit cost is determined with the expected cumulativebenefit unit method. The Company recognizes the following components of employee benefits costarising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses.Among them, the current service cost refers to the increase in the present value of the defined benefitplan obligations due to the provision of services by employees in the current period; the past servicecost refers to the increase or decrease in the present value of the defined benefit plan obligationsrelated to the employee services in the previous period due to the modification of the defined benefitplan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of planassets, interest expense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.The Company includes the above items ① and ② in the current profits and losses, unless otheraccounting standards require or allow the cost of employee benefits to be included in the cost ofassets; item ③ is included in other comprehensive income and will not be reversed back to profit orloss in subsequent accounting periods, and the part originally included in other comprehensiveincome within the equity scope is carried forward to undistributed profit when the original definedbenefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employeecompensation arising from dismissal welfare are recognized at the earlier of the following two datesand included in the current profit or loss: the Company cannot unilaterally provide the dismissalwelfare provided due to the labor relation termination plan or the layoff suggestions; the Companyrecognizes the costs or expenses related to the restructuring of termination benefits payment.If the early retirement plan is implemented, the economic compensation before the official retirementdate belongs to dismissal welfare. The wages proposed to be paid to the early retired employee andthe social insurance premiums to be paid are included in the current profits and losses in a lump sumfrom the date when the employee stops providing services to the normal retirement date. Economiccompensation after the official retirement date (such as normal pension) belongs to post-employmentbenefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying theconditions for classifying as a defined contributions plan are accounted for in accordance with theabove requirements relating to defined contribution plan. The benefits that meet the requirements ofthe defined benefit plan are treated in accordance with the provisions of the plan. However, the"changes caused by remeasurement of net liabilities or net assets of the defined benefit plan" inrelevant employee compensation costs are included in current profits and losses or relevant assetcosts.
28. Provisions
The Company recognizes the obligations related to contingencies as estimated liabilities if they meetall of the following conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of theCompany;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevantcurrent obligation, in comprehensive consideration of the risks, uncertainty, time value of money,and other factors pertinent to the Contingencies. The best estimate is determined by discounting therelevant future cash outflow if the time value of money has a significant impact. At the balance sheetdate, the book value of the estimated liabilities is reviewed and adjusted by the Company to reflectthe current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected tobe compensated by a third party or any other party, the amount of compensation shall be recognizedas assets separately only when it is basically sure that the amount can be obtained. The recognizedamount of compensation shall not exceed the book value of recognized liabilities.
29. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment andcash-settled share-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an activemarket according to the quotation of the active market. The Company recognizes the fair value ofequity instruments such as granted options without active market by using the option pricing model.
The following factors are considered in the selected option pricing model: A. exercise price ofoptions; B. validity period of options; C. current price of underlying shares; D. expected fluctuationratio of stock price; E. expected dividends of shares; F. risk-free interest rate within the validityperiod of options.
(3) Basis for determining the optimal estimate of vested equity instrumentsThe Company makes the optimal estimate based on the latest follow-up information such as changesin the number of vesting employees and corrects the expected number of vested equity instrumentson each balance sheet date within the vesting period. On the vesting date, the final estimated numberof vested equity instruments shall be consistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-
based payment planShare-based payments settled by equity are measured at the fair value of the equity instrumentsgranted to employees. Where the equity instrument can be vested immediately upon being granted,the share-based payment is included in relevant costs or expenses at the fair value of equityinstrument on the granting date and the capital reserve shall be increased accordingly. Where theequity instrument can not be vested until the vesting period comes to an end or until the specifiedperformance conditions are met, at each balance sheet date within the vesting period, the servicesobtained in the current period are, based on the optimal estimate of the number of vested equityinstruments, included in relevant costs or expenses and capital reserve at the fair value specified onthe granting date of equity instruments. After the vesting date, it shall make no adjustment to therelevant costs or expenses as well as the total amount of the owner's equities which have beenconfirmed.Share-based payments settled by cash are measured at the fair value of liabilities recognized basedon shares or other equity instruments assumed by the Company. Where the equity instrument can bevested immediately upon being granted, the payment shall be included in the relevant costs orexpenses at the fair value of the liabilities assumed by the Company on the granting date, and theliabilities shall be increased accordingly. Where the share-based payment settled by cash cannot bevested until the vesting period comes to an end or until the specified performance conditions are met,on each balance sheet date within the vesting period, the services acquired in current period are,
based on the optimal estimation of the vesting right, included in costs or expenses and correspondingliabilities at the fair value of the liabilities assumed by the Company. On each balance sheet date andthe settlement date prior to the settlement of the relevant liabilities, the fair value of the liabilitiesshall be re-measured, with its changes included in the current profits and losses.When the Company modifies the share-based payment plan, the increase in services obtained shallbe recognized based on the increase (if any) in the fair value of equity instruments; if the quantity ofgranted equity instruments is increased, the fair value of the increased equity instruments shall berecognized accordingly as the increase in the services obtained. The increase in the fair value ofequity instruments refers to the difference between the fair values of equity instruments before andafter modification on the modification date. If the total fair value of share-based payment is reducedin the modification or the terms and conditions of the share-based payment plan are modified in otherways unfavorable to employees, the accounting treatment on acquired services shall continue as ifthe change has never occurred, unless the Company has canceled part or all of the granted equityinstruments.If, during the vesting period, the granted instruments are canceled (except for those canceled becauseof failure to meet the non-market conditions of the vesting conditions), the Company shall acceleratethe vesting of the granted equity instruments, and immediately include the amount to be recognizedin the remaining vesting period in the current profit and loss, and determine the capital reserve in themeantime. In the event that the employees or other parties can choose to meet the non-vestingconditions but fail to meet such conditions during the vesting period, the Company shall treat it asthe cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and theincentive objects subscribe for the shares preferentially. If the unlocking conditions stipulated in theequity incentive plan are not met subsequently, the Company will repurchase the shares at the priceagreed in advance. If the restricted shares issued to employees have completed capital increaseprocedures such as registration as specified, the Company shall determine the share capital andcapital reserve (share premium) according to the share subscription money received from employees
on the granting date, and determine the treasury shares and other payables in terms of the repurchaseobligation.
30. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract,i.e., the customer has obtained the control rights of the relevant goods or services.If the contract contains two or more performance obligations, the Company shall, at the beginningdate of the contract, apportion the transaction price to each performance obligation according to therelative proportion of the individual selling price of the goods or services promised by eachperformance obligation, and measure the income according to the transaction price apportioned toeach performance obligation.In case one of the following conditions is met, the Company will perform the performanceobligations within a period of time. Otherwise, it will perform the performance obligations at a timepoint:
① The customer obtains and consumes the economic benefits brought by the performance of thecontract by the Company at the same time.
② The customer can control the goods under construction during the Company's performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Companyhas been entitled to receive payment for the performance accumulated so far throughout the term ofthe contract.For the performance obligations performed within a certain period of time, the Company shalldetermine the income within that period according to the performance progress. If the performanceprogress cannot be reasonably confirmed, and the costs incurred by the Company can be expected to
be compensated, the incomes shall be recognized according to the amount of costs incurred until theperformance progress can be reasonably confirmed.For performance obligations performed at a certain time point, the Company shall confirm theincome at the time point when the customer gains control rights of the relevant goods or services. Indetermining whether a customer has obtained the control rights of the goods or services, theCompany shall take the following signs into consideration:
① The Company enjoys the right to the current collection, i.e., the customer has the obligation topay immediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the customerowns the legal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., the customer has possessedthe goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods tothe customer, i.e., the customer has obtained the major risks and remuneration on the ownership ofthe goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.The right of the Company to receive the consideration due to the transfer of goods or services to thecustomer (and the right depends on factors other than the passage of time) is taken as a contractualasset, and the provision for impairment of the contractual assets are based on the expected creditlosses (please refer to 11 "Financial Instruments" in V "Significant Accounting Policies andAccounting Estimates" of Section X - Financial Report). The Company’s unconditional (subject onlyto the passage of time) right to collect consideration from customers shall be presented as receivables.The Company's obligations to transfer goods or services to the customer due to customerconsideration received or receivable shall be defined as contract liabilities.
Contract assets and contract liabilities under the same contract shall be presented in net amount. Ifthe net amount is the debit balance, it shall be presented in the item of "contract assets" or "othernon-current assets" according to its liquidity; if the net amount is the credit balance, it shall bepresented in the item of "contract liabilities" or "other non-current liabilities" according to itsliquidity.
(2) Specific methods
When the complete vehicles and their accessories and other goods are transported to the agreeddelivery location under the terms of the contract, the customer has accepted the goods and obtainedthe right to control over them, and the Company recognizes the income.31 Government subsidiesThe government subsidies shall be recognized when all the attached conditions can be satisfied andthe government subsidies can be received.The government subsidies considered as monetary assets are measured at the amount received orreceivable. The government subsidies considered as non-monetary assets are measured based on thefair value, or the nominal amount of CNY 1 if the fair value cannot be acquired reliably.Asset-related government subsidies refer to those obtained by the Company and used for acquiring orforming long-term assets in other ways; otherwise, they are regarded as income-related governmentsubsidies.For the government subsidies with the grant objects not expressly stipulated in the governmentdocuments, if they can be used to form long-term assets, the government subsidies corresponding tothe asset value are deemed as the government subsidies related to assets while the rest is deemed asthe one related to income; for the government subsidies that are difficult to differentiate, thegovernment subsidies as a whole are deemed as income-related government subsidies.Asset-related government subsidies are recognized as deferred income and included in profits orlosses by stages with a reasonable and systematic method within the service life of related assets. Forthe income-related government subsidies, they shall be included in the current profit and loss or writedown related costs if used to compensate for the incurred related costs or losses; if used to
compensate for the related costs or losses during future periods, they shall be included in the deferredincome, and included in the current profit and loss during the period when the related costs or lossesare recognized. Government subsidies measured at the nominal amount are directly included in thecurrent profit and loss. The Company adopts the same treatment for those transactions of similargovernment subsidies.The government subsidies related to daily activities shall be included in other incomes based on thesubstance of business transactions. Government subsidies irrelevant to daily activities are included innon-business income.If it is necessary to refund the government subsidies that have been recognized, the book value of theassets which has been offset at the time of initial recognition is adjusted; the book balance of thedeferred income concerned (if any) is offset, and the excess is included in the current profits andlosses; others are directly included in the current profits and losses.32 Deferred income tax assets and deferred income tax liabilitiesIncome tax includes current income tax and deferred income tax. The income tax shall be included inthe current profit and loss as income tax expenses, except that the deferred income taxes related tothe adjustment of goodwill due to business merger or the transactions or matters directly included inthe owner's equity are included in the owner's equity.The Company recognizes deferred income tax by the balance sheet liability method according to thetemporary difference between the book value of assets and liabilities on the balance sheet date andthe tax base.Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless thetaxable temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in atransaction that is neither a business combination nor affects the accounting profit or taxable incomeat the time of the transaction (except for individual transactions where the assets and liabilitiesinitially recognized result in equal amounts of taxable temporary differences and deductibletemporary differences);
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, jointventures and associated enterprises, the time of reversal of the temporary difference can becontrolled and the temporary difference is unlikely to be reversed in the foreseeable future.The Company recognizes a deferred tax asset for the carry-forward of deductible temporarydifferences, deductible losses and tax credits to subsequent periods, to the extent that it is probablethat future taxable profits will be available against which the deductible temporary differences,deductible losses and tax credits can be utilized, except for those incurred in the followingtransactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxableincome at the time of the transaction (except for individual transactions where the assets andliabilities initially recognized result in equal amounts of taxable temporary differences anddeductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary differenceassociated with investments in subsidiaries, associated enterprises and joint ventures meets all of thefollowing conditions: The temporary difference is likely to be reversed in the foreseeable future, andthe taxable income which is used to deduct the deductible temporary difference is likely to beobtained in the future.The Company measures the deferred income tax assets and deferred income tax liabilities at theapplicable tax rate during the expected period for recovering the assets or paying off the liabilities onthe balance sheet date and reflects the impact on income tax from assets recovery or liabilitysettlement on the balance sheet date.At the balance sheet date, the Company reviews the book value of a deferred income tax asset. If it islikely that sufficient taxable profits will not be available in future periods to deduct the benefit of thedeferred tax assets, the book value of the deferred tax assets is reduced. Any such write-down shallbe subsequently reversed where it becomes probable that sufficient taxable income will be available.At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presentedby net amount after set-off when both of the following conditions are satisfied:
(1) The taxpayer within the Company has the legal rights to settle the income tax assets and incometax liabilities in the current period by net amount;
(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxesimposed by the same taxation authority on the same taxpayer within the Company.
33. Lease
(1) Accounting treatment methods of lease with the Company as the lesseeIdentification of leaseOn the commencement date of the contract, the Company, as the lessee or lessor, evaluates whetherthe customer in the contract is entitled to obtain almost all economic benefits arising from the use ofthe identified assets during the use period, and is entitled to dominate the use of the identified assetsduring the use period. If one party to the contract abalienates the right to control the use of one ormore identified assets within a certain period of time in exchange for consideration, the Companydetermines that the contract is a lease or includes a lease.The Company acting as the lesseeAt the commencement of the lease term, the Company recognizes right-of-use assets and leaseliabilities for all leases, except for simplified short-term leases and low-value asset leases.For the accounting policies of the right-of-use assets, see 35 "Others" in V "Significant AccountingPolicies and Accounting Estimates" of Section X - Financial Report.Lease liabilities shall be initially measured at the present value calculated by the interest rate implicitin the lease according to the unpaid lease payment on the commencement date of the lease term. Ifthe interest rate implicit in lease cannot be determined, the incremental borrowing rate shall be usedas the discount rate. The lease payment includes: fixed payment and substantial fixed payment. Ifthere is a lease incentive, the amount related to the lease incentive shall be deducted; variable leasepayments depending on index or ratio; the exercise price of the purchase option, provided that thelessee reasonably determines that the option will be exercised; payments for exercising the option toterminate the lease, provided that the lease term reflects that the lessee will exercise the option to
terminate the lease; and the amount expected to be paid according to the guaranteed residual valueprovided by the lessee. The interest expenses of the lease liabilities within each lease term shall becalculated subsequently according to the fixed periodic rate, and included in the current profits andlosses. Variable lease payments not included in the measurement of lease liabilities are included inthe current profits and losses when they actually occur.Short-term leaseShort-term lease refers to a lease with a lease term of not more than 12 months on thecommencement date of the lease term, except for the lease containing the purchase option.The Company includes the lease payment for short-term lease into relevant asset costs or currentprofits and losses by the straight-line method at each period within the lease term.For short-term lease, the Company selects the above simplified treatment method for the itemsmeeting the short-term lease conditions in the following asset types according to the category ofleased assets.Low-value asset leaseLow-value asset lease refers to the lease in which the value of a single new leased asset is less thanCNY 40,000.The Company includes the payment of low-value asset lease into relevant asset costs or currentprofits and losses with the straight-line method in each period within the lease term.For low-value asset leases, the Company selects the above simplified treatment method according tothe specific conditions of each lease.Lease changeIf the lease changes and meets the following conditions at the same time, the Company takes thelease change as a separate lease for the accounting treatment: ① The lease change expands the leasescope by increasing the right to use one or more leased assets; and ② the increased consideration isequivalent to the amount by adjusting the separate price of the expanded lease scope according to thecontract.
If the lease change is not taken as a separate lease for accounting treatment, the Company will, on theeffective date of the lease change, reallocate the consideration of the changed contract, redeterminethe lease term, and remeasure the lease liabilities according to the changed lease payment and thepresent value calculated by the revised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change, the Company willcorrespondingly reduce the book value of right-of-use assets, and include relevant profits or losses ofpartial or complete termination of leasing in current profits and losses.If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust thebook value of the right-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related tothe ownership of the assets is recognized as a finance lease, and other leases than finance leases arerecognized as operating leases.Finance leaseIn financial lease, at the commencement of the lease term, the Company takes the net investment in alease as the entry value of the finance lease receivables, and the net investment in a lease is the sumof the unguaranteed residual value and the present value of the lease receipts not yet received at thecommencement of the lease term discounted at the interest rate implicit in lease. The Company, asthe lessor, calculates and recognizes interest income in each lease term at a fixed periodic rate. Thevariable lease payment obtained by the Company as the lessor and not included in the measurementof net lease investment is included in the current profits and losses when it actually occurs.Derecognition and impairment of finance lease receivables are accounted for according to the ASBENo. 22 - Recognition and Measurement of Financial Instruments and the ASBE No. 23 - Transfer ofFinancial Assets.Operating lease
Lease income from operating leases is included in current profits or losses by the Company as perthe straight-line method over the lease term. The occurred initial direct cost related to the operatinglease shall be capitalized, amortized within the lease term according to the same base with therecognition of rental income, and included in the current profits and losses by stages. The variablelease receipts obtained by the Company related to operating leases and not charged to the leasereceipts shall be charged to the current profit and loss when they actually occur.Lease changeIn case of any change in an operating lease, the Company carries out accounting treatment as it is anew lease since the effective date of the change, and the advance receipts and receivables related tothe lease before the change are deemed as the receipts of the new lease.If the financial lease changes and meets the following conditions, the Company takes the change as aseparate lease for accounting treatment: ① The change expands the lease scope by increasing theright to use one or more leased assets; and ② the increased consideration is equivalent to the amountby adjusting the separate price of the expanded lease scope according to the contract.If the change of finance lease is not taken as a separate lease for accounting treatment, the Companyshall treat the changed lease under the following circumstances respectively: ① If the change takeseffect on the commencement date of the lease and the lease will be classified as an operating lease,the Company will take it as a new lease for accounting treatment from the effective date of the leasechange, and take the net investment in the lease before the effective date of the lease change as thebook value of the leased asset. ② If the change takes effect on the commencement date of the leaseand the lease will be classified as a finance lease, the Company shall carry out accounting treatmentin accordance with the provisions of the Accounting Standards for Business Enterprises No. 22 -Recognition and Measurement of Financial Instruments on modifying or renegotiating the contract.
34. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
?Applicable □Not applicableInterpretation No. 16 of Accounting Standards for Business Enterprises
In November 2022, the Ministry of Finance issued the Interpretation No. 16 of the AccountingStandards for Business Enterprises (CK [2022] No. 31) (hereinafter referred to as "Interpretation No.16").Interpretation No.16 stipulates that for a single transaction that is not a business combination anddoes not affect accounting profits or taxable income (or deductible losses) at the time of thetransaction and that the initial recognition of assets and liabilities results in equal amounts of taxabletemporary differences and deductible temporary differences, such taxable temporary differences anddeductible temporary differences arising from the initial recognition of assets and liabilities shall berecognized at the time the transaction occurred as the corresponding deferred income tax liabilitiesand deferred income tax assets in accordance with relevant provisions such as the AccountingStandards for Business Enterprises No. 18 - Income Tax. The Company shall apply these provisionsto transactions that occurred from the beginning of the earliest period of the financial statements forwhich the provisions are first applied until the Implementation Date of the Interpretation. Thecumulative impact of these adjustments shall be used to adjust the opening retained earnings andother related financial statement items for the earliest period in the presentation of financialstatements. The above provisions on the accounting treatment have come into effect since January 1,2023.The Company shall also adjust the taxable temporary difference and deductible temporary differencefor lease liabilities and right-of-use assets recognized for the lease business in accordance with theprovisions of Interpretation No. 16.The enforcement of the above accounting policies has the following impact on the consolidated：
Unit: CNY
| Items of consolidated balance sheet (December 31, 2023) | Amounts affected |
| Deferred Income Tax Assets | 12,975,866.73 |
| Deferred income tax liabilities | 12,560,241.88 |
| Undistributed profit at the end of the year | 415,624.85 |
| Items of consolidated income statement (Year 2023) | Amounts affected |
| Income tax expenses | -443,956.60 |
The enforcement of the above accounting policies has the following impact on the consolidatedbala balance sheet on December 31, 2023 and the 2023 consolidated income statement:
Unit: CNY
| Items of consolidated balance sheet (December 31, 2022) | Before adjustment | Amount adjusted | After adjustment |
| Deferred Income Tax Assets | 2,131,349,905.21 | 19,643,880.89 | 2,150,993,786.10 |
| Deferred income tax liabilities | 430,369,867.93 | 19,672,212.64 | 450,042,080.57 |
| Undistributed profit at the end of the year | 5,460,939,601.36 | -28,331.75 | 5,460,911,269.61 |
| Items of consolidated income statement (Year 2022) | Before adjustment | Amount adjusted | After adjustment |
| Income tax expenses | -185,173,776.38 | 301,331.78 | -184,872,444.60 |
The enforcement of the above accounting policies has the following impact on the consolidatedbalance sheet on January 1, 2022.
Unit: CNY
| Items of consolidated balance sheet (January 01, 2022) | Before adjustment | Amount adjusted | After adjustment |
| Deferred Income Tax Assets | 1,650,296,511.26 | 26,243,041.30 | 1,676,539,552.56 |
| Deferred income tax liabilities | 374,185,114.15 | 25,970,041.27 | 400,155,155.42 |
| Items of consolidated balance sheet (January 01, 2022) | Before adjustment | Amount adjusted | After adjustment |
| Undistributed profit at the end of the year | 8,434,403,352.08 | 273,000.03 | 8,434,676,352.11 |
Cumulative impact of changes in accounting policies during the current period Unit: CNY
| Affected items | Current Period | Previous Period |
| Net assets at the beginning of the period | -28,331.75 | 273,000.03 |
| Including: Retained earnings | -28,331.75 | 273,000.03 |
| Net Profit | 443,956.60 | -301,331.78 |
| Capital Reserves | ||
| Other Comprehensive Incomes | ||
| Special Reserves | ||
| Net assets at the end of the period | 415,624.85 | -28,331.75 |
| Including: Retained earnings | 415,624.85 | -28,331.75 |
(2) Change in significant accounting estimates
□Applicable ?Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year afterthe first implementation of the new accounting standards since 2023
□Applicable ?Not applicable
35. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer ofliability by market participants in the orderly transaction on the measurement date.
he Company measures related assets or liabilities at fair value, assuming that the sale of an asset orthe transfer of liability is conducted in major markets for relevant assets or liabilities in an orderlytransaction. If the major market is not provided, the transaction shall be assumed to be performed inthe most favorable market for relevant assets or liabilities. Major markets (or most favorable markets)are the markets where the Company can enter on the measurement date. The Company uses theassumptions used by market participants to maximize their economic benefits when they price theasset or liability.Fair value of financial assets or financial liabilities with the active market is determined based onquotations in the active market by the Company. Fair value of financial instrument without an activemarket is determined through valuation techniques.When non-financial assets are measured at fair value, it is required to consider the ability of marketparticipants to use the asset for optimal purposes to produce economic benefits, or to sell the asset toother market participants that can use such assets for optimal purposes to produce economic benefits.The Company shall adopt the estimation technique that is applicable in the current conditions and issupported sufficiently by available data and other information. The relevant observable input valuesshall be used in priority during the application of estimation technique. Only when relevantobservable value cannot be obtained or can be obtained but is not feasible, the unobservable inputvalue can be used.For assets and liabilities measured or disclosed at fair value in the financial statements, the level towhich the fair value belongs is determined according to the lowest level input value that is ofsignificance for the whole fair value measurement: The input value for the first level refers to theunadjusted quotation of the same assets or liabilities in the active market that can be obtained on themeasurement date; the input value for the second level refers to the input value that can be directly orindirectly observed for relevant assets or liabilities other than that for the first level; and the inputvalue for the third level refers to the input value that cannot be observed for relevant assets orliabilities.The Company reassesses the assets and liabilities successively measured at fair value recognized infinancial statements on each balance sheet date to determine the transition among fair valuemeasurement levels.
(2) Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contractperformance cost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) thatwould not have occurred if the Company had not obtained the contract. If the cost is expected to berecovered, the Company recognizes it as a contract acquisition cost and an asset. Other expendituresincurred by the Company for obtaining contracts other than incremental costs that are expected to berecovered are included in current profits and losses when incurred.If the cost incurred for contract performance is not within the scope of other accounting standards forbusiness enterprises such as inventories and meets the following conditions at the same time, theCompany recognizes it as an asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, directmaterials, manufacturing costs (or similar costs), the costs clearly borne by the customer, and othercosts incurred only by the Contract;
② This cost increases the Company’s resources for performing the performance obligations in thefuture;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs(hereinafter referred to as "assets related to contract costs") are amortized on the same basis asrevenue recognition of goods or services related to the assets and are included in current profits andlosses.When the book value of the assets related to the contract cost is higher than the difference betweenthe following two items, the Company will make provision for the impairment of the excess andrecognize it as the asset impairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods orservices related to the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.
The contract performance cost recognized as an asset shall be listed in the "inventory" item if itsamortization period does not exceed one year or a normal operating cycle at initial recognition, andshall be listed in the "other non-current assets" item if its amortization period exceeds one year or anormal operating cycle at initial recognition.The contract acquisition cost recognized as an asset shall be listed in the item "Other current assets"if the amortization period at the time of initial recognition is not more than one year or one normaloperating cycle, and listed in the item "Other non-current assets" if the amortization period at thetime of initial recognition is more than one year or one normal operating cycle.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking themethod of excess regression based on the actual operating income of the previous year according tothe provisions of CZ [2022] No. 136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10million, 2.35% of work safety cost will be withdrawn; for the part of operating income between CNY10 million and CNY 100 million, 1.25% shall be withdrawn; for the part of the operating incomebetween CNY 100 million and CNY 1 billion, 0.25% will be withdrawn; for the part of the operatingincome between CNY 1 billion and CNY 5 billion, 0.1% will be withdrawn; for the part of theoperating income over CNY 5 billion, 0.05% will be withdrawn.For transportation enterprises, the work safety cost is withdrawn month by month in an averagemanner according to the following standards based on the actual operating income in the previousyear: 1% for ordinary freight business; 1.5% for passenger transportation, pipeline transportation,dangerous goods transportation and other special freight businesses. Work safety cost andmaintenance & renovation cost are included in the cost of relevant products or the current profit andloss when withdrawn, and are also included in the "special reserve" account.For the withdrawn work safety cost and maintenance & renovation cost used within the specifiedscope, those belong to expense expenditures are directly offset by specific reserves; those costincurred via collection under the item of “construction in progress” is recognized when the safetyproject completes and is ready for intended use. At the same time, the Company will offset thespecific reserves according to the cost that formed fixed assets and determine the accumulated
depreciation of the same amount. The fixed assets will no longer be depreciated in subsequentperiods.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled ortransferred, and all expenditures on repurchased shares are transferred to treasury share costs.Considerations in the payment for shares repurchase and reduced owner’s equity in transactionexpenses are not recognized as profits or losses during repurchase, assignment and write-off of theCompany's shares.The transferred treasury shares are included in the capital reserve based on the difference betweenthe amount actually received and the book value of the treasury shares. The surplus reserve andundistributed profits shall be offset if the capital reserve is insufficient to offset. The canceledtreasury shares are used to offset the capital reserve based on the difference between the bookbalance and the face value of the canceled treasury shares by reducing the share capital according tothe face value of the shares and the number of canceled shares. The surplus reserve and undistributedprofits shall be offset if the capital reserve is insufficient to offset.
(5) Significant accounting judgment and estimate
The Company continuously evaluates the significant accounting estimates and key assumptionsadopted based on historical experience and other factors, including reasonable expectations for futureevents. Significant accounting estimates and key assumptions that may lead to significant adjustmentrisk to the book value of assets and liabilities in the next accounting year are presented as follows:
Classification of financial assetsMajor judgments involved in determining the classification of financial assets include the analysis ofbusiness models and contractual cash flow characteristics.The Company determines the business model of managing financial assets at the level of financialasset portfolio, considering the way of evaluating and reporting financial asset performance to keymanagement personnel, the risks affecting the financial asset performance and their managementmethods, and the way for the relevant business management personnel to obtain the remuneration.
When evaluating whether the contractual cash flow of financial assets is consistent with the basicloan arrangement, the Company has the following main judgments: May the principal change in thetime distribution or amount in the duration due to prepayment and other reasons? Does the interestinclude only the time value of money, credit risk, other basic borrowing risks, and consideration forcosts and profits? For example, does the amount of prepayment only reflect the unpaid principal andinterest based on the outstanding principal, as well as reasonable compensation paid due to earlytermination of the contract?Measurement of expected credit losses on accounts receivableThe Company calculates the expected credit loss of accounts receivable through default riskexposure and expected credit loss rate of accounts receivable, and determines the expected credit lossrate based on default probability and loss given default. In determining the expected credit loss rate,the Company uses the internal historical credit loss experience and other data, and adjusts thehistorical data according to the current situation and forward-looking information. When theforward-looking information is considered, the indicators used by the Company include risks ofeconomic downturn, changes in external market environment, technological environment andcustomer conditions. The Company regularly monitors and reviews the assumptions related to thecalculation of expected credit losses.Development expendituresIn determining the capitalization amounts, the management must make assumptions on the expectedfuture cash flow generation of assets, discount rate to be adopted and expected benefit period.Deferred Income Tax AssetsThe deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highlyprobable that there will be sufficient taxable profits available for offsetting the losses. This requiresthe management to estimate the timing and amount of future taxable profit using large amounts ofjudgment and to determine the recognized amount of deferred tax assets by referring to the taxplanning strategy.Estimated liabilities
Expected liabilities are initially measured at the optimal estimate required to perform the relevantcurrent obligation, in comprehensive consideration of the risks, uncertainty, time value of money,and other factors pertinent to the Contingencies. The best estimate is determined by discounting therelevant future cash outflow if the time value of money has a significant impact. At the balance sheetdate, the book value of the estimated liabilities is reviewed and adjusted by the Company to reflectthe current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected tobe compensated by a third party or any other party, the amount of compensation shall be recognizedas assets separately only when it is basically sure that the amount can be obtained. The recognizedamount of compensation shall not exceed the book value of recognized liabilities.
(6) Right-of-use assets
① Recognition conditions of right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets withinthe lease term.At the commencement date of the lease term, the right-of-use assets are initially measured at cost.This cost includes the initial measurement amount of lease liabilities, lease payments made on orbefore the lease commencement date, from which any lease incentives enjoyed (if any) needed to bededucted, initial direct costs incurred by the Company as a lessee, and the estimated costs expectedto be incurred by the Company as a lessee for dismantling and removing the leased asset, restoringthe leased asset's site, or restoring the leased asset to the contractual conditions as stipulated in thelease agreement. The Company, as the lessee, recognizes and measures the cost of demolition andrestoration in accordance with the Accounting Standards for Business Enterprises No. 13 -Contingencies. Subsequent adjustments are made for any remeasurement of the lease liabilities.
② Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company, as the lessee, canreasonably confirm that it obtains the ownership of the leasing assets at the expiration of the leaseterm, the depreciation shall be drawn within the remaining service life of the leasing assets. In caseof a failure to determine the ownership of the leased assets reasonably at the end of the lease period,
the depreciation shall be drawn within the lease term or the remaining service life of leasing assets,whichever is shorter.
③ For the impairment test methods and impairment provision methods of right-of-use assets, pleaserefer to 35 "Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X -Financial Report.
(7) Asset impairment
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and jointventures, investment real estate subsequently measured by cost model, fixed assets, projects underconstruction, right-of-use assets, intangible assets, etc. (except for inventories, deferred income taxassets and financial assets) is recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. Ifsuch a sign exists, the Company estimates the recoverable amount and conducts the impairment test.Impairment tests shall be carried out every year on goodwill resulting from business mergers,intangible assets with uncertain service life and intangible assets that are not available no matterwhether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposalexpenses or the present value of the expected future cash flow of the assets, whichever is higher. TheCompany estimates the recoverable amount based on a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group shall be determinedbased on the asset group to which the asset belongs. An asset group is determined based on the factthat the main cash inflows generated by the asset group are independent of the cash inflows of otherassets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Companywrites down its book value to the recoverable amount, and the write-down amount is included incurrent profits and losses, and the corresponding impairment provision of assets is made at the sametime.For the impairment test of goodwill, the book value of goodwill resulting from business merger isamortized to relevant asset groups with reasonable methods from the acquisition date, or amortized
to relevant asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant assetgroups or portfolios of asset groups are those that can benefit from the synergies of business mergerand are not greater than the reporting segment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwillduring the impairment test, the impairment test shall be carried out on the asset group or portfolio ofasset groups not including goodwill, and the recoverable amount shall be calculated to determine thecorresponding impairment loss. Then, an impairment test is carried out on the asset group orportfolio of asset groups including goodwill to compare its book value and recoverable amount, anddetermine the impairment loss of goodwill if the recoverable amount is lower than the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accountingperiods.VI. Taxes
1. Main taxes and tax rates
| Tax Category | Tax Basis | Tax Rate |
| VAT | Taxable value-added tax (the tax payable is calculated by multiplying taxable sales by the applicable tax rate and then deducting input tax allowed to be deducted for the current period) | 13%, 9%, 6%, 5% |
| Urban maintenance and construction tax | Turnover tax actually paid | 7%, 5% |
| Corporate income tax | Taxable income | 25% |
| Education surcharges | Turnover tax actually paid | 3% |
| Local educational surcharges | Turnover tax actually paid | 2% |
| Land use tax | Land use area | CNY 9/m2, CNY 14/m2, etc. |
| Property tax | Property residual value and rental income | 1.2%, 12% |
Disclosure of different corporate income tax rates for taxable entities
| Name of Taxpayer | Income Tax Rate |
| The Company | 25% |
| Jiefang Limited | 15% |
| Wuxi Dahao Power Co., Ltd. | 25% |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 25% |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 15% |
| FAW Jiefang Austria R&D Co., Ltd. | 24% |
| FAW Jiefang New Energy Automotive Sales Co., Ltd. | 25% |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | 25% |
2. Tax preference
(1) Income tax
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise, with a validityperiod of three years and an income tax rate of 15% within the validity period according to the High-tech Enterprise Certificate (issued on October 16, 2023, with a certificate number ofGR202322000922) jointly issued by the Science and Technology Department of Jilin Province, theDepartment of Finance of Jilin Province and the Jilin Provincial Tax Service of State TaxationAdministration.FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-tech enterprise, with a validity period of three years and an income tax rate of 15% within thevalidity period according to the list of the third batch of high-tech enterprises (with a certificatenumber of GR202121200892) issued by Dalian on December 15, 2021.
(2) VAT
FAW Jiefang Automotive Co., Ltd. and FAW Jiefang Dalian Diesel Engine Co., Ltd. satisfy theconditions for advanced manufacturing enterprises and are allowed to add 5% of the currentdeductible input tax to offset the amount of VAT payable from January 1, 2023 according to theDocument No. 43 issued by the Ministry of Finance and the State Taxation Administration in 2023,Announcement on VAT Additional Tax Credit Policy for Advanced Manufacturing Enterprises.VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Bank deposit | 8,849,319,921.20 | 7,186,490,922.75 |
| Other monetary capital | 24,815,735.14 | 22,048,239.01 |
| Deposit in finance companies | 14,046,575,246.78 | 13,832,934,255.95 |
| Total | 22,920,710,903.12 | 21,041,473,417.71 |
| Including: total amount deposited abroad | 11,941,864.29 | 13,903,726.95 |
Other notes: Details of restricted monetary capital are as follows:
Unit: CNY
| Item | Ending Balance | Ending Balance of the previous year |
| Security deposit for three types of personnel | 27,839,503.40 | 27,077,797.58 |
| Housing maintenance fund | 22,103,193.44 | 22,048,239.01 |
| Court freezing | 725,230.81 | 1,541,946.79 |
| Total | 50,667,927.65 | 50,667,983.38 |
2 Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Commercial acceptance notes | 44,626,048.13 | 186,748,716.22 |
| Total | 44,626,048.13 | 186,748,716.22 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Including: | ||||||||||
| Notes receivable with provision for bad debts by portfolio | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
| Including: | ||||||||||
| Commercial acceptance bill | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
| Total | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
Provision for bad debts by portfolio: commercial acceptance bill
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Within 1 year | 44,841,286.30 | 215,238.17 | 0.48% |
| Total | 44,841,286.30 | 215,238.17 | |
Description of the basis for determining this portfolio:
If the provision for bad debts of notes receivable is withdrawn based on the general model ofexpected credit losses:
?Applicable □Not applicable
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 801,425.78 | 801,425.78 | ||
| Balance on January 1, 2023 in the current period | ||||
| Provision in the Current Period | -586,187.61 | -586,187.61 | ||
| Balance as at December 31, 2023 | 215,238.17 | 215,238.17 |
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Write-off | Others | |||
| Commercial acceptance bill | 801,425.78 | -586,187.61 | 215,238.17 | |||
| Total | 801,425.78 | -586,187.61 | 215,238.17 | |||
Important provision for bad debts recovered or reversed in the current period:
□Applicable ?Not applicable
3 Accounts receivable
(1) Disclosure by aging
Unit: CNY
| Aging | Ending Book Balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 1,841,405,361.88 | 786,514,528.13 |
| Including: 0-6 months | 1,761,474,596.90 | 702,938,136.01 |
| 7-12 months | 79,930,764.98 | 83,576,392.12 |
| 1-2 years | 61,551,354.54 | 61,407,181.73 |
| 2-3 years | 121,453,806.43 | 71,238,950.11 |
| Over 3 years | 137,477,637.42 | 93,337,325.53 |
| 3-4 years | 44,736,900.00 | 767,457.17 |
| 4-5 years | 454,999.94 | 58,697,500.75 |
| Over 5 years | 92,285,737.48 | 33,872,367.61 |
| Total | 2,161,888,160.27 | 1,012,497,985.50 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Accounts receivable with provision for bad debts on an individual basis | 89,811,549.22 | 4.15% | 89,811,549.22 | 100.00% | 82,039,650.69 | 8.10% | 82,039,650.69 | 100.00% | ||
| Including: | ||||||||||
| Accounts receivable with provisio | 2,072,076,611.05 | 95.85% | 82,690,441.28 | 3.99% | 1,989,386,169.77 | 930,458,334.81 | 91.90% | 63,367,996.39 | 6.81% | 867,090,338.42 |
| n for bad debts by portfolio | ||||||||||
| Including: | ||||||||||
| Total | 2,161,888,160.27 | 100.00% | 172,501,990.50 | 7.98% | 1,989,386,169.77 | 1,012,497,985.50 | 100.00% | 145,407,647.08 | 14.36% | 867,090,338.42 |
Provision for bad debts on an individual basisUnit: CNY
| Name | Opening Balance | Ending Balance | ||||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | Provision Proportion | Reasons for Provision | |
| Jiangsu Xinrui New Energy Vehicle Technology Co., Ltd. | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Hanglun Ligang Trading Co., Ltd. | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 100.00% | It is highly probable that the amounts will not be recovered |
| Putian New Energy Automotive (Shandong) Co., Ltd. | 8,156,900.00 | 8,156,900.00 | 100.00% | It is highly probable that the amounts will not be recovered | ||
| Dalian Qingfeng Bus Co., Ltd. | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 100.00% | It is highly probable that the amounts will not be recovered |
| Beijing Hotan Automobile Modification Co., Ltd. | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 100.00% | It is highly probable that the amounts |
| will not be recovered | ||||||
| Changchun Xiongtu New Energy Vehicle Co., Ltd. | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhonghe Shunyang Supply Chain Management (Jilin) Co., Ltd. | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Shuozhou Jinsheng Automobile Trading Co., Ltd. | 1,822,961.43 | 1,822,961.43 | 1,822,961.43 | 1,822,961.43 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 100.00% | It is highly probable that the amounts will not be recovered |
| Xinjiang Jingyang Optoelectronic Co., Ltd. | 1,179,590.41 | 1,179,590.41 | 1,179,590.41 | 1,179,590.41 | 100.00% | It is highly probable that the amounts will not be recovered |
| Yulin Jiayu | 971,012.59 | 971,012.59 | 971,012.59 | 971,012.59 | 100.00% | It is |
| Jiefang Automobile Sales Co., Ltd. | highly probable that the amounts will not be recovered | |||||
| Shenyang Jinbei Vehicle Manufacturing Co., Ltd. | 889,279.05 | 889,279.05 | 889,279.05 | 889,279.05 | 100.00% | It is highly probable that the amounts will not be recovered |
| Dalian Baofeng Automobile Sales Co., Ltd. | 496,200.00 | 496,200.00 | 496,200.00 | 496,200.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Jilin Zhuzhan Automobile Trading Co., Ltd. | 848,566.00 | 848,566.00 | 484,400.00 | 484,400.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Liangshan Huatai Trading Co., Ltd. | 349,190.00 | 349,190.00 | 349,190.00 | 349,190.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Baoding Automobile Sales Co., Ltd. | 80,035.12 | 80,035.12 | 80,035.12 | 80,035.12 | 100.00% | It is highly probable that the amounts will not |
| be recovered | ||||||
| Yancheng Zhongwei Bus Co., Ltd. | 13,599.99 | 13,599.99 | 13,599.99 | 13,599.99 | 100.00% | It is highly probable that the amounts will not be recovered |
| Qingdao Chengyun Yangguang Automobile Sales Services Co., Ltd. | 20,835.47 | 20,835.47 | ||||
| Total | 82,039,650.69 | 82,039,650.69 | 89,811,549.22 | 89,811,549.22 |
Bad debt provision made as per portfolio:
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Within 1 year | 1,841,405,361.88 | 5,230,492.48 | 0.28% |
| 1-2 years | 61,551,354.54 | 6,481,451.04 | 10.53% |
| 2-3 years | 121,453,806.43 | 34,286,409.56 | 28.23% |
| 3-4 years | 36,580,000.00 | 25,606,000.00 | 70.00% |
| Over 4 years | 11,086,088.20 | 11,086,088.20 | 100.00% |
| Total | 2,072,076,611.05 | 82,690,441.28 | |
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model ofexpected credit losses:
?Applicable □Not applicableUnit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 1,677,403.73 | 61,690,592.66 | 82,039,650.69 | 145,407,647.08 |
| Balance on January 1, 2023 in the current period | ||||
| Provision in the Current Period | 3,576,437.06 | 15,769,356.14 | 8,156,900.00 | 27,502,693.20 |
| Reversal in the Current Period | 385,001.47 | 385,001.47 | ||
| Other changes | 23,348.31 | 23,348.31 | ||
| Balance as at December 31, 2023 | 5,230,492.48 | 77,459,948.80 | 89,811,549.22 | 172,501,990.50 |
The basis of stage division and the proportion of provision for bad debts are as follows: Provision forbad debts is made by aging in the first and second stages, with a proportion of 0.28% for less than 1year, 10.53% for 1 to 2 years, 28.23% for 2 to 3 years, 70.00% for 3 to 4 years, and 100% for morethan 4 years, and the proportion of provision in the third stage is 100%.Description of significant changes in the book balance of accounts receivable with changes inprovision for loss in the current period: None
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Write-off | Others | |||
| Accounts receivabl | 145,407,647.08 | 27,502,693.20 | 385,001.47 | 23,348.31 | 172,501,990.50 | |
| e | ||||||
| Total | 145,407,647.08 | 27,502,693.20 | 385,001.47 | 23,348.31 | 172,501,990.50 |
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
| Name of Unit | Amount Recovered or Reversed | Reason for reversal | Recovery Method | Basis of determining the proportion of provision for original bad debts and its rationality |
| Jilin Zhuzhan Automobile Trading Co., Ltd. | 364,166.00 | Recovery of amounts due | Bank transfer | Provision by individual item |
| Qingdao Chengyun Yangguang Automobile Sales Services Co., Ltd. | 20,835.47 | Recovery of amounts due | Bank transfer | Provision by individual item |
| Total | 385,001.47 |
(4) Other accounts receivable and contractual assets from the top five borrowers classifiedbased on the ending balanceUnit: CNY
| Name of Unit | Ending Balance of Accounts Receivable | Ending balance of contractual assets | Ending balance of accounts receivable and contractual assets | Proportion in total ending balance of accounts receivable and contractual assets | Ending balance of bad debt provision for accounts receivable and impairment provision for contractual assets |
| China FAW Group Import & Export Co., | 565,045,453.53 | 565,045,453.53 | 25.92% | 1,438,890.29 |
| Ltd. | |||||
| FAW Harbin Light Automobile Co., Ltd. | 260,081,914.30 | 260,081,914.30 | 11.93% | 261,998.72 | |
| Customer 1 | 240,552,000.00 | 240,552,000.00 | 11.03% | 2,294,741.70 | |
| Jiefang Times New Energy Technology Co., Ltd. | 193,088,998.31 | 193,088,998.31 | 8.86% | 743,368.60 | |
| Customer 2 | 98,784,238.18 | 98,784,238.18 | 4.53% | 474,164.34 | |
| Total | 1,357,552,604.32 | 1,357,552,604.32 | 62.27% | 5,213,163.65 |
4 Contract assets
(1) Contractual assets
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |
| Contract Assets | 18,023,563.08 | 440,706.26 | 17,582,856.82 | 11,341,422.54 | 211,797.79 | 11,129,624.75 |
| Total | 18,023,563.08 | 440,706.26 | 17,582,856.82 | 11,341,422.54 | 211,797.79 | 11,129,624.75 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 | 11,341,422.54 | 100.00% | 211,797.79 | 1.87% | 11,129,624.75 |
| Total | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 | 11,341,422.54 | 100.00% | 211,797.79 | 1.87% | 11,129,624.75 |
Bad debt provision made as per portfolio:
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Within 1 year | 15,703,636.08 | 60,935.81 | 0.39% |
| 1-2 years | 1,939,927.00 | 250,988.45 | 12.94% |
| 2-3 years | 380,000.00 | 128,782.00 | 33.89% |
| Total | 18,023,563.08 | 440,706.26 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses?Applicable □Not applicableUnit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 34,255.92 | 177,541.87 | 211,797.79 | |
| Balance on January 1, 2023 in the current period | ||||
| Provision in the Current Period | 26,679.89 | 202,228.58 | 228,908.47 | |
| Balance as at December 31, 2023 | 60,935.81 | 379,770.45 | 440,706.26 |
The basis of stage division and the proportion of provision for bad debts are as follows: Provision forbad debts is made by aging in the first and second stages, with a proportion of 0.39% for less than 1year, 12.94% for 1 to 2 years, and 33.89% for 2 to 3 years.Description of significant changes in the book balance of contractual assets with changes inprovision for loss in the current period: None
(3) Provision for bad debts provided, recovered or reversed in the current periodUnit: CNY
| Item | Provision in the Current Period | Recovery or reversal in the current period | Charge-off/Write-off in the Current Period | Reason |
| Impairment provision for contractual assets | 228,908.47 | Risks in payment collection | ||
| Total | 228,908.47 | —— |
5 Receivables financing
(1) Presentation of receivables financing by category
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Bank acceptance bill | 4,878,126,972.73 | 3,461,653,473.66 |
| Total | 4,878,126,972.73 | 3,461,653,473.66 |
(2) Financing of receivables endorsed or discounted by the Company at the end of the periodand not yet due on the balance sheet dateUnit: CNY
| Item | Derecognized Amount at the | Amount not Derecognized at |
| End of the Period | the End of the Period | |
| Bank acceptance bill | 24,010,032,428.34 | |
| Total | 24,010,032,428.34 |
(3) Other notes
The Company classifies bank acceptance bills as financial assets measured at fair value and whosechanges are included in other comprehensive income and presents them as receivables financingaccording to the needs of daily fund management.The Company has no bank acceptance bills with the impairment provision by individual item. As ofDecember 31, 2023, the Company believes that the bank acceptance bills held have no materialcredit risk and do not bring material losses as a result of a bank default.The bank acceptance bills for discounting have a small risk of credit and deferred payment, and therisk of the interest rate related to the bills has been transferred to the bank, so it can be judged thatthe main risks and rewards of the bill ownership have been transferred, and the recognition is ended.6 Other receivablesUnit: CNY
| Item | Ending Balance | Opening Balance |
| Dividends receivable | 2,608,000.00 | |
| Other receivables | 1,309,376,221.57 | 1,065,846,162.91 |
| Total | 1,309,376,221.57 | 1,068,454,162.91 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
| Item (or Investee) | Ending Balance | Opening Balance |
| FAW Changchun Ansteel Steel | 2,608,000.00 |
| Processing and Distribution Co., Ltd. | ||
| Total | 2,608,000.00 |
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending Book Balance | Beginning Book Balance |
| Current account | 1,191,301,022.21 | 915,540,688.63 |
| Claim payment | 192,151,504.78 | 197,953,339.79 |
| Margin, deposit | 41,422,562.20 | 38,966,301.99 |
| Reserve fund | 621,409.08 | 10,164,463.79 |
| Total | 1,425,496,498.27 | 1,162,624,794.20 |
2) Disclosure by aging
Unit: CNY
| Aging | Ending Book Balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 571,985,195.12 | 1,063,615,196.21 |
| Including: 0-6 months | 556,407,667.28 | 1,062,285,764.54 |
| 7-12 months | 15,577,527.84 | 1,329,431.67 |
| 1-2 years | 764,590,667.17 | 1,441,092.04 |
| 2-3 years | 1,331,719.31 | 4,041,713.73 |
| Over 3 years | 87,588,916.67 | 93,526,792.22 |
| 3-4 years | 3,713,565.73 | 8,377,324.28 |
| 4-5 years | 149,607.62 | 39,525,093.62 |
| Over 5 years | 83,725,743.32 | 45,624,374.32 |
| Total | 1,425,496,498.27 | 1,162,624,794.20 |
3) Disclosure by the method of provision for bad debts
?Applicable □Not applicableUnit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Provision for bad debts made by individual item | 59,879,639.41 | 4.20% | 59,879,639.41 | 100.00% | 68,723,091.34 | 5.91% | 68,723,091.34 | 100.00% | ||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 1,365,616,858.86 | 95.80% | 56,240,637.29 | 4.12% | 1,309,376,221.57 | 1,093,901,702.86 | 94.09% | 28,055,539.95 | 2.56% | 1,065,846,162.91 |
| Including: | ||||||||||
| Total | 1,425,496,498.27 | 100.00% | 116,120,276.70 | 8.15% | 1,309,376,221.57 | 1,162,624,794.20 | 100.00% | 96,778,631.29 | 8.32% | 1,065,846,162.91 |
Provision for bad debts on an individual basisUnit: CNY
| Name | Opening Balance | Ending Balance | ||||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | Provision Proportion | Reasons for Provision | |
| Changchun Finance Bureau | 38,378,100.00 | 38,378,100.00 | 37,820,100.00 | 37,820,100.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| The People's Government of Dalian Municipality | 20,500,000.00 | 20,500,000.00 | 20,500,000.00 | 20,500,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Qingdao Automotive Research Institute of China FAW Co., Ltd | 8,227,110.28 | 8,227,110.28 | 100.00% | |||
| Wuxi Large Cargo Port Lifting and Transportation Co., Ltd. | 542,293.00 | 542,293.00 | 542,293.00 | 542,293.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jingye Automobile Co., Ltd. | 199,194.30 | 199,194.30 | 199,194.30 | 199,194.30 | 100.00% | It is highly probable that the amounts will not be recovere |
| d | ||||||
| Beijing Torchstar Automation Technology Co., Ltd. | 198,000.00 | 198,000.00 | 198,000.00 | 198,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Chongqing Jinhua Automobile Brake Corporation | 154,539.47 | 154,539.47 | 154,539.47 | 154,539.47 | 100.00% | It is highly probable that the amounts will not be recovered |
| Nanjing Xinpu Electromechanical Equipment Manufacturing Co., Ltd. | 135,000.00 | 135,000.00 | 135,000.00 | 135,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Hunan Changji Technology Development Co., Ltd. | 119,600.00 | 119,600.00 | 119,600.00 | 119,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Others | 269,254.29 | 269,254.29 | 210,912.64 | 210,912.64 | 100.00% | It is highly probable that the amounts will not be recovered |
| Total | 68,723,091.34 | 68,723,091.34 | 59,879,639.41 | 59,879,639.41 |
Bad debt provision made as per portfolio:
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Aging portfolio | 1,365,616,858.86 | 56,240,637.29 | 4.12% |
| Total | 1,365,616,858.86 | 56,240,637.29 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected Credit Losses over the Entire Duration (no Credit Impairment) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 3,002,964.74 | 25,052,575.21 | 68,723,091.34 | 96,778,631.29 |
| Balance on January 1, 2023 in the current period | ||||
| -- Transfer to stage II | -1,352,495.38 | 1,352,495.38 | ||
| Provision in the Current Period | 11,290,818.64 | 16,894,278.70 | 28,185,097.34 | |
| Reversal in the Current Period | 8,820,921.93 | 8,820,921.93 | ||
| Write-off in the current period | 22,530.00 | 22,530.00 | ||
| Balance as at December 31, 2023 | 12,941,288.00 | 43,299,349.29 | 59,879,639.41 | 116,120,276.70 |
Significant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Provision, recovery, or reversal of bad debts in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Charge-off or write-off | Others | |||
| Other receivables | 96,778,631.29 | 28,185,097.34 | 8,820,921.93 | 22,530.00 | 116,120,276.70 | |
| Total | 96,778,631.29 | 28,185,097.34 | 8,820,921.93 | 22,530.00 | 116,120,276.70 | |
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
| Name of Unit | Amount Recovered or Reversed | Reason for reversal | Recovery Method | Basis of determining the proportion of provision for original bad debts and its rationality |
| Qingdao Automotive Research Institute of China FAW Co., Ltd | 8,227,110.28 | Recovered | Bank deposit | It is highly probable that the amounts will not be recovered |
| Changchun Finance Bureau | 558,000.00 | Recovered | Bank deposit | It is highly probable that the amounts will not be recovered |
| Triangle Tyre Co,. Ltd. | 24,131.00 | Recovered | Bank deposit | It is highly probable that the amounts will not be recovered |
| Yangzhou Lianxin Machinery Manufacturing Co., Ltd. | 11,680.65 | Recovered | Offset against the Company's payables | It is highly probable that the amounts will not be recovered |
| Total | 8,820,921.93 |
(5) Other receivables written off in the current period
Unit: CNY
| Item | Amount Written off |
| Other receivables actually written off | 22,530.00 |
Write-off of other important receivables:
Unit: CNY
| Name of Unit | Nature of Other receivables | Amount Written off | Reason for Write-off | Write-off Procedures Performed | Whether the Payment Arises from Related transactions |
| Huai'an Yongfeng Tire Co., Ltd. | Payment for goods | 22,530.00 | The counterparty declared bankruptcy without executable property | General manager's meeting for decisions | No |
| Total | 22,530.00 |
Notes on write-off of other receivables:
6) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending Balance | Aging | Proportion in Total Ending Balance of Other Receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Funds for land purchase and reserve | 660,862,800.00 | 1-2 years | 46.36% | 660,862.80 |
| Customer 2 | New energy vehicle sales subsidies | 160,683,500.00 | Less than 1 year or more than 5 years | 11.27% | 50,850,396.20 |
| Customer 3 | Funds for land purchase and reserve | 146,634,578.00 | Within 1 year | 10.29% | 4,472,354.63 |
| Customer 4 | New energy vehicle sales subsidies | 49,557,522.13 | 1-2 years | 3.48% | 12,543,008.85 |
| Customer 5 | New energy subsidy | 48,318,584.07 | 0-6 months | 3.39% | 1,473,716.81 |
| Total | 1,066,056,984.20 | 74.79% | 70,000,339.29 |
7. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
| Aging | Ending Balance | Opening Balance | ||
| Amount | Scale | Amount | Scale | |
| Within 1 year | 438,665,956.06 | 63.60% | 683,392,293.37 | 76.12% |
| 1-2 years | 155,704,502.78 | 22.58% | 179,765,899.07 | 20.02% |
| 2-3 years | 75,007,663.59 | 10.88% | 17,802,947.31 | 1.98% |
| Over 3 years | 20,242,975.23 | 2.94% | 16,873,724.33 | 1.88% |
| Total | 689,621,097.66 | 897,834,864.08 |
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
| Name of Debtor | Book balance (CNY) | Proportion in Total Advance Payment (%) | Reason for non-settlement |
| China FAW Group Import & Export Co., Ltd. | 140,342,314.89 | 20.35 | Undue settlement period |
| RiseSun MGL | 44,887,053.39 | 6.51 | Undue settlement period |
| FAW Mold Manufacturing Co., Ltd. | 9,872,745.36 | 1.43 | Undue settlement period |
| Zhongqi Jiaojian Group Co., Ltd. | 9,100,600.00 | 1.32 | Undue settlement period |
| Dalian Haosen Intelligent Manufacturing Co., Ltd. | 5,200,000.00 | 0.75 | Undue settlement period |
Total
| Total | 209,402,713.64 | 30.36 | —— |
(2) Top five ending balances of advance payments classified by advance payment objectsThe advance payments with the top five ending balances classified by the prepaid parties in thecurrent period are CNY 411,005,632.12, accounting for 59.60% of the total ending balance ofadvance payments.
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
| Item | Ending balance | Opening Balance | ||||
| Book Balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | Book Balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | |
| Raw material | 346,085,168.15 | 33,387,013.66 | 312,698,154.49 | 351,801,254.38 | 34,595,186.53 | 317,206,067.85 |
| Goods in process | 449,087,779.38 | 14,783,370.86 | 434,304,408.52 | 564,240,295.08 | 3,741,307.32 | 560,498,987.76 |
| Goods in stock | 6,221,152,433.69 | 178,277,353.30 | 6,042,875,080.39 | 3,281,304,875.32 | 183,152,615.52 | 3,098,152,259.80 |
| Revolving material | 96,527,196.36 | 1,940,234.71 | 94,586,961.65 | 92,939,661.90 | 2,463,306.64 | 90,476,355.26 |
| Others | 2,488,739,701.04 | 162,232,949.94 | 2,326,506,751.10 | 2,509,560,166.91 | 193,153,939.75 | 2,316,406,227.16 |
| Total | 9,601,592,278.62 | 390,620,922.47 | 9,210,971,356.15 | 6,799,846,253.59 | 417,106,355.76 | 6,382,739,897.83 |
(2) Impairment provision of inventories and contract performance costsUnit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance | ||
| Provision | Others | Reverse or Charge-off | Others | |||
| Raw material | 34,595,186.53 | 371,972.55 | 1,580,145.42 | 33,387,013.66 | ||
| Goods in process | 3,741,307.32 | 12,506,479.15 | 1,464,415.61 | 14,783,370.86 | ||
| Goods in stock | 183,152,615.52 | 159,362,064.05 | 164,237,326.27 | 178,277,353.30 | ||
| Revolving material | 2,463,306.64 | 523,071.93 | 1,940,234.71 | |||
| Others | 193,153,939.75 | 23,028,781.84 | 53,949,771.65 | 162,232,949.94 | ||
| Total | 417,106,355.76 | 195,269,297.59 | 221,754,730.88 | 390,620,922.47 | ||
9. Long-term receivables due within 1 year
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Long-term receivables due within 1 year | 222,664,624.89 | 191,262,030.30 |
| Total | 222,664,624.89 | 191,262,030.30 |
(1) Debt investments due within one year
□Applicable ?Not applicable
(2) Other debt investments due within one year
□Applicable ?Not applicable
10. Other current assets
Unit: CNY
| Item | Ending balance | Opening Balance |
| Input VAT | 398,062,687.06 | 510,325,627.83 |
| Input VAT to be certified | 625,978,432.77 | 384,601,871.76 |
| Prepaid income tax | 8,048,695.40 | |
| Total | 1,032,089,815.23 | 894,927,499.59 |
Other description: none11 Investment in other equity instrumentsUnit: CNY
| Project Name | Ending Balance | Opening Balance | Gains included in other comprehensive incomes in the current period | Losses included in other comprehensive incomes in the current period | Cumulative gains included in other comprehensive incomes at the end of the current period | Cumulative losses included in other comprehensive incomes at the end of the current period | Dividend income recognized in the current period | Reason for being designated as being measured at fair value and changes included in other comprehensive incomes |
| REFIRE | 480,780,000.00 | 480,780,000.00 | ||||||
| Total | 480,780,000.00 | 480,780,000.00 |
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plansto hold for a long time for strategic purposes, so the Company designates it as a financial assetmeasured at fair value and whose changes are included in other comprehensive incomes.
12. Long-term receivables
(1) Long-term receivables
Unit: CNY
| Item | Ending Balance | Opening Balance | Discount Rate Range | ||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | ||
| Sales of goods by installment | 365,224,533.59 | 10,528,655.43 | 354,695,878.16 | 315,738,954.37 | 2,870,336.64 | 312,868,617.73 | |
| Long-term receivables due within 1 year | -232,504,099.49 | -9,839,474.60 | -222,664,624.89 | -193,577,418.87 | -2,315,388.57 | -191,262,030.30 | |
| Total | 132,720,434.10 | 689,180.83 | 132,031,253.27 | 122,161,535.50 | 554,948.07 | 121,606,587.43 | |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 365,224,533.59 | 100.00% | 10,528,655.43 | 2.88% | 354,695,878.16 | 315,738,954.37 | 100.00% | 2,870,336.64 | 0.91% | 312,868,617.73 |
| Including: | ||||||||||
| Total | 365,224,533.59 | 100.00% | 10,528,655.43 | 2.88% | 354,695,878.16 | 315,738,954.37 | 100.00% | 2,870,336.64 | 0.91% | 312,868,617.73 |
Bad debt provision made as per portfolio:
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Long-term receivables | 365,224,533.59 | 10,528,655.43 | 2.88% |
| Total | 365,224,533.59 | 10,528,655.43 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 2,870,336.64 | |||
| Balance on January 1, 2023 in the current period | ||||
| Provision in the Current Period | 7,658,318.79 | |||
| Balance as at December 31, 2023 | 10,528,655.43 |
Basis for stage division and proportion of bad debt provision
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Charge-off or write-off | Others | |||
| Long-term receivables | 2,870,336.64 | 7,658,318.79 | 10,528,655.43 | |||
| Total | 2,870,336.64 | 7,658,318.79 | 10,528,655.43 | |||
13. Long-term equity investment
Unit: CNY
| Investee | Opening Balance (Book Value) | Opening balance of impairment provision | Increase/Decrease in the Current Period | Ending Balance (Book Value) | Ending Balance of Impairment Provision | |||||||
| Additional Investment | Reduced Investment | Investment Gains or Losses Recognized under the Equity Method | Adjustment to Other Comprehensive Income | Changes in Other Equity | Cash Dividends and Profits Declared to Pay | Impairment Provision | Others | |||||
| I. Joint ventures | ||||||||||||
| Jiefang Times New Energy Technology Co., Ltd. | 45,000,000.00 | -3,471,017.33 | 41,528,982.67 | |||||||||
| Subtotal | 45,000,000.00 | -3,471,017.33 | 41,528,982.67 | |||||||||
| II. Associated enterprises | ||||||||||||
| First Automobile Finance Co., Ltd. | 4,270,037,969.59 | 350,854,530.91 | 181,610.33 | 283,265,352.38 | 4,337,808,758.45 | |||||||
| Changchun Automotive Test | 670,872,897.94 | 29,796,896.33 | -13,167.00 | 700,656,627.27 | ||||||||
| Center Co., Ltd. | ||||||||||||
| Sanguard Automobile Insurance Co., Ltd. | 201,021,162.24 | -25,552,008.03 | 1,162,322.37 | 4,835,877.87 | 171,795,598.71 | |||||||
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 87,066,229.18 | 2,939,935.88 | -423,413.23 | 1,640,000.00 | 87,942,751.83 | |||||||
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 43,856,468.58 | 6,500,530.62 | 6,892,912.77 | 43,464,086.43 | ||||||||
| FAW Jiefang | 37,092,567.41 | 339,936.08 | -449,647 | 36,982,856.24 |
| Fujie (Tianjin) Technology Industry Co., Ltd. | .25 | |||||||||||
| Foshan Diyiyuan New Energy Technology Co., Ltd. | 36,000,000.00 | -2,785,254.92 | 33,214,745.08 | |||||||||
| Changchun Wabco Automotive Control System Co., Ltd. | 17,288,166.13 | -1,090,602.55 | 16,197,563.58 | |||||||||
| SmartLink | 286,072.71 | 9,266,800.00 | -9,552,872.71 | |||||||||
| Suzhou Zhito Technology Co., Ltd. | ||||||||||||
| Subtotal | 4,692,648,635.84 | 680,139,697.94 | 351,451,091.61 | 1,330,765.70 | -423,413.23 | 296,634,143.02 | -449,647.25 | 5,428,062,987.59 |
| Total | 4,692,648,635.84 | 725,139,697.94 | 347,980,074.28 | 1,330,765.70 | -423,413.23 | 296,634,143.02 | -449,647.25 | 5,469,591,970.26 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in theimpairment test or external information in the previous year: NoneReason for apparent discrepancies between the information used in the Company's impairment test ofthe previous year and the actual situation in the current year: None14 Investment properties
(1) Investment properties measured at cost
?Applicable □Not applicable
Unit: CNY
| Item | Houses and Buildings | Land use right | Project under Construction | Total |
| I. Original book value | ||||
| 1. Opening balance | 145,745,882.84 | 7,364,400.94 | 153,110,283.78 | |
| 2. Increase in the current period | 4,203,714.28 | 134,362.50 | 4,338,076.78 | |
| (1) Purchase | ||||
| (2) Transfer from inventories/fixed assets/construction in progress | 4,203,714.28 | 134,362.50 | 4,338,076.78 | |
| (3) Increase due to business combination | ||||
| 3. Decrease in the current period | 77,134,264.17 | 24,710.62 | 77,158,974.79 | |
| (1) Disposal | 2,927,421.41 | 2,927,421.41 | ||
| (2) Other transfer-out | ||||
| (3) Reversal of intangible assets | 24,710.62 | 24,710.62 | ||
| (4) Transferred to fixed assets | 74,206,842.76 | 74,206,842.76 | ||
| 4. Ending balance | 72,815,332.95 | 7,474,052.82 | 80,289,385.77 |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 71,218,610.71 | 1,244,075.59 | 72,462,686.30 | |
| 2. Increase in the current period | 8,802,717.85 | 162,017.35 | 8,964,735.20 | |
| (1) Provision or amortization | 5,934,794.67 | 151,716.09 | 6,086,510.76 | |
| (2) Transfer-in of intangible assets | 10,301.26 | 10,301.26 | ||
| (3) Transfer-in of fixed assets | 2,867,923.18 | 2,867,923.18 | ||
| 3. Decrease in the current period | 48,176,354.66 | 11,676.60 | 48,188,031.26 | |
| (1) Disposal | 1,430,556.04 | 1,430,556.04 | ||
| (2) Other transfer-out | ||||
| (3) Reversal of intangible assets | 11,676.60 | 11,676.60 | ||
| (4) Transferred to fixed assets | 46,745,798.62 | 46,745,798.62 | ||
| 4. Ending balance | 31,844,973.90 | 1,394,416.34 | 33,239,390.24 | |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 40,970,359.05 | 6,079,636.48 | 47,049,995.53 | |
| 2. Beginning book value | 74,527,272.13 | 6,120,325.35 | 80,647,597.48 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in theimpairment test or external information in the previous year: None
Reason for apparent discrepancies between the information used in the Company's impairment test ofthe previous year and the actual situation in the current year: None
(2) Investment properties measured at fair value
□Applicable ?Not applicable
15. Fixed assets15. Fixed assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Fixed assets | 11,372,570,486.81 | 9,604,636,127.53 |
| Disposal of fixed assets | 7,715,678.77 | 8,286,682.75 |
| Total | 11,380,286,165.58 | 9,612,922,810.28 |
(1) Details of fixed assets
Unit: CNY
| Item | Houses and Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | Total |
| I. Original book value | |||||||
| 1. Opening balance | 5,725,009,716.16 | 15,656,156,281.82 | 163,214,691.23 | 662,116,184.02 | 60,661,288.33 | 1,331,905,071.36 | 23,599,063,232.92 |
| 2. Increase in the current period | 878,397,801.60 | 2,589,928,596.28 | 13,083,054.49 | 80,085,124.91 | 7,011,481.27 | 89,196,790.93 | 3,657,702,849.48 |
| (1) Purchase | 639,968.24 | 42,247,110.60 | 15,147,109.35 | 73,959.09 | 20,033,135.60 | 78,141,282.88 | |
| (2) Transfer from construction in progress | 803,550,990.60 | 2,547,681,485.68 | 13,083,054.49 | 64,609,269.07 | 6,937,522.18 | 50,873,773.07 | 3,486,736,095.09 |
| (3) Increase due to business combination | |||||||
| (4) Other increases | 74,206,842.76 | 328,746.49 | 18,289,882.26 | 92,825,471.51 | |||
| 3. Decrease in the current period | 295,635,117.11 | 337,218,586.32 | 10,091,707.76 | 19,935,570.80 | 4,288,751.73 | 45,344,683.28 | 712,514,417.00 |
| (1) Disposal or retirement | 149,204,619.96 | 287,004,494.29 | 9,783,654.76 | 19,935,570.80 | 4,121,995.09 | 44,738,691.15 | 514,789,026.05 |
| (2) Other decreases | 146,430,497.15 | 50,214,092.03 | 308,053.00 | 166,756.64 | 605,992.13 | 197,725,390.95 | |
| 4. Ending balance | 6,307,772,400.65 | 17,908,866,291.78 | 166,206,037.96 | 722,265,738.13 | 63,384,017.87 | 1,375,757,179.01 | 26,544,251,665.40 |
| II. Accumulated depreciation | |||||||
| 1. Opening balance | 2,311,008,528.82 | 9,948,863,333.22 | 116,715,194.87 | 483,841,486.87 | 44,160,940.50 | 1,059,255,698.93 | 13,963,845,183.21 |
| 2. Increase in the current period | 333,059,711.11 | 1,110,379,571.35 | 17,840,014.96 | 103,959,743.58 | 4,335,860.61 | 117,970,335.75 | 1,687,545,237.36 |
| (1) Provision | 290,886,383.05 | 1,110,379,571.35 | 17,840,014.96 | 103,879,846.72 | 4,335,860.61 | 113,397,865.19 | 1,640,719,541.88 |
| (2) Other increases | 42,173,328.06 | 79,896.86 | 4,572,470.56 | 46,825,695.48 | |||
| 3. Decrease in the current period | 159,134,951.72 | 266,215,486.42 | 9,330,910.01 | 19,873,121.82 | 3,905,513.57 | 46,534,126.01 | 504,994,109.55 |
| (1) Disposal or retirement | 90,186,225.06 | 238,743,884.62 | 9,330,910.01 | 19,873,121.82 | 3,897,191.27 | 46,311,563.25 | 408,342,896.03 |
| (2) Other decreases | 68,948,726.66 | 27,471,601.80 | 8,322.30 | 222,562.76 | 96,651,213.52 | ||
| 4. Ending balance | 2,484,933,288.21 | 10,793,027,418.15 | 125,224,299.82 | 567,928,108.63 | 44,591,287.54 | 1,130,691,908.67 | 15,146,396,311.02 |
| III. Impairment provision | |||||||
| 1. Opening balance | 12,344.37 | 28,361,635.01 | 2,207,942.80 | 30,581,922.18 | |||
| 2. Increase in the current period | 5,270,226.00 | 43,047.04 | 815,105.44 | 6,128,378.48 | |||
| (1) Provision | 5,270,226.00 | 43,047.04 | 815,105.44 | 6,128,378.48 | |||
| 3. Decrease in the current period | 11,343,136.93 | 82,296.16 | 11,425,433.09 | ||||
| (1) Disposal or retirement | 11,343,136.93 | 82,296.16 | 11,425,433.09 | ||||
| 4. Ending balance | 12,344.37 | 22,288,724.08 | 43,047.04 | 2,940,752.08 | 25,284,867.57 | ||
| IV. Book value | |||||||
| 1. Ending book value | 3,822,826,768.07 | 7,093,550,149.55 | 40,981,738.14 | 154,337,629.50 | 18,749,683.29 | 242,124,518.26 | 11,372,570,486.81 |
| 2. Beginning book value | 3,413,988,842.97 | 5,678,931,313.59 | 46,499,496.36 | 178,274,697.15 | 16,500,347.83 | 270,441,429.63 | 9,604,636,127.53 |
(2) Temporary idle fixed assets
Unit: CNY
| Item | Original book value | Accumulated depreciation | Impairment Provision | Book Value | Remarks |
| Machinery equipment | 167,855,198.00 | 156,621,801.12 | 2,534,067.63 | 8,699,329.25 | |
| Transportation equipment | 1,114,399.95 | 1,073,633.27 | 40,766.68 | ||
| Electronic equipment | 964,301.14 | 951,911.86 | 12,239.28 | 150.00 | |
| Office equipment | 48,321.58 | 46,871.94 | 394.96 | 1,054.68 | |
| Others | 16,060.00 | 15,578.20 | 481.80 | ||
| Total | 169,998,280.67 | 158,709,796.39 | 2,546,701.87 | 8,741,782.41 |
(3) Fixed assets without property ownership certificates
Unit: CNY
| Item | Book Value | Reasons for failure to obtain the certificate |
| Guanghan base project | 378,438,870.12 | The property ownership certificate will be applied for after the final account audit upon completion of the project |
| Project of exiting the city and entering the industrial park | 273,843,584.05 | It is a new plant, and the information is incomplete and currently being processed. |
| Equipment and plant project | 72,844,318.59 | The property ownership certificate has not yet been applied for |
| Total | 725,126,772.76 |
Other description: none
(4) Impairment testing of fixed assets
□Applicable ?Not applicable
(5) Disposal of fixed assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Houses and Buildings | 44,864.97 | 283,806.99 |
| Machinery equipment | 5,776,946.67 | 7,759,672.33 |
| Means of transport | 125,020.45 | 113,084.68 |
| Electronic equipment | 12,316.70 | 77,126.05 |
| Office equipment | 132,249.55 | 45,702.70 |
| Others | 1,624,280.43 | 7,290.00 |
| Total | 7,715,678.77 | 8,286,682.75 |
Other description: none16 Construction in progress
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Project under Construction | 816,484,299.18 | 1,902,143,354.11 |
| Total | 816,484,299.18 | 1,902,143,354.11 |
(1) Construction in progress
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book Balance | Impairment Provision | Book Value | Book Balance | Impairment Provision | Book Value | |
| New and reconstructed investment project | 109,030,761.94 | 1,945,416.12 | 107,085,345.82 | 230,889,214.48 | 1,945,416.12 | 228,943,798.36 |
| Technical transformation investment project | 709,454,450.55 | 55,497.19 | 709,398,953.36 | 1,673,255,052.94 | 55,497.19 | 1,673,199,555.75 |
| Total | 818,485,212.49 | 2,000,913.31 | 816,484,299.18 | 1,904,144,267.42 | 2,000,913.31 | 1,902,143,354.11 |
(2) Changes in important construction in progress in the current period
Unit: CNY
| Project Name | Budget | Opening balance | Increase in the Current | Amount transferred | Other Decrea | Ending balance | Proportion of | Project | Cumulative | Including: | Capitalization rate | Capital |
| Period | to fixed assets in the current period | ses in the Current Period | accumulated investment in constructions to budget | Progress | amount of capitalized interest | Capitalized interest amount during the current period | of interest in current period | source | ||||
| Technical transformation project of integrated heavy duty AMT gearbox | 898,000,000.00 | 7,939,826.14 | 227,319,303.89 | 2,951,908.86 | 232,307,221.17 | 26.20% | 47.90% | Others | ||||
| R&D capacity improvement project of FAW Jiefang Qingdao Base | 639,844,440.00 | 49,273,323.85 | 167,445,979.50 | 216,719,303.35 | 33.87% | 47.70% | Others | |||||
| Axle base construction project and heavy replacement axle technology upgrade | 989,859,950.93 | 421,427,528.84 | 268,808,556.88 | 575,031,535.48 | 115,204,550.24 | 67.22% | 67.22% | Others |
| (phase I) | ||||||||||||
| FAW Jiefang south new energy base project | 413,800,000.00 | 41,677,157.08 | 10,264,756.39 | 3,047,927.57 | 48,893,985.90 | 48.35% | 48.35% | Others | ||||
| Project 3 | 667,780,000.00 | 102,315,208.39 | 408,744,263.11 | 477,229,461.42 | 33,830,010.08 | 76.53% | 86.30% | Others | ||||
| Upgrading project of a single first vacuum side stream of Axle Factory of Transmission Division | 54,506,567.00 | 28,941,540.00 | 28,941,540.00 | 53.10% | 53.10% | Others | ||||||
| New energy product introduction and smart logistics upgrade project | 79,820,000.00 | 20,357,026.83 | 35,199,589.22 | 45,234,492.16 | 10,322,123.89 | 69.60% | 69.60% | Others | ||||
| Engine power | 1,227,430,000.00 | 302,528,245.34 | 237,226,067.57 | 537,223,848.98 | 2,530,463.93 | 71.64% | 98.59% | Others |
| enhancement project | ||||||||||||
| FAW Jiefang commercial vehicle Guanghan base project | 999,970,000.00 | 620,489,096.96 | 274,701,414.87 | 893,013,520.68 | 2,176,991.15 | 89.52% | 89.52% | Others | ||||
| Thin plate stamping capacity expansion project of Jimo factory | 198,000,000.00 | 85,791,504.96 | 80,379,715.18 | 165,493,148.86 | 678,071.28 | 83.58% | 83.92% | Others | ||||
| Total | 6,169,010,957.93 | 1,651,798,918.39 | 1,739,031,186.61 | 2,699,225,844.01 | 691,604,260.99 |
(3) Impairment testing of projects under construction
□Applicable ?Not applicable
17 Right-of-use assets
(1) Right-of-use assets
Unit: CNY
| Item | Houses and Buildings | Machinery equipment | Land | Total |
| I. Original book value | ||||
| 1. Opening balance | 203,880,616.59 | 54,778,761.06 | 23,719,044.14 | 282,378,421.79 |
| 2. Increase in the current period | 1,030,358.64 | 1,030,358.64 | ||
| Lease-in | 1,030,358.64 | 1,030,358.64 | ||
| 3. Decrease in the current period | 31,063,939.34 | 6,458,400.85 | 37,522,340.19 | |
| (1) Lease expiration | 31,063,939.34 | 31,063,939.34 | ||
| (2) Other decreases | 6,458,400.85 | 6,458,400.85 | ||
| 4. Ending balance | 173,847,035.89 | 54,778,761.06 | 17,260,643.29 | 245,886,440.24 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 71,135,818.41 | 13,022,260.79 | 84,158,079.20 | |
| 2. Increase in the current period | 44,352,856.31 | 10,955,752.21 | 4,284,095.64 | 59,592,704.16 |
| (1) Provision | 44,352,856.31 | 10,955,752.21 | 4,284,095.64 | 59,592,704.16 |
| 3. Decrease in the current period | 31,063,939.34 | 5,790,290.48 | 36,854,229.82 | |
| (1) Disposal | ||||
| (1) Lease expiration | 31,063,939.34 | 31,063,939.34 | ||
| (2) Other decreases | 5,790,290.48 | 5,790,290.48 | ||
| 4. Ending balance | 84,424,735.38 | 10,955,752.21 | 11,516,065.95 | 106,896,553.54 |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period |
| (1) Disposal | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 89,422,300.51 | 43,823,008.85 | 5,744,577.34 | 138,989,886.70 |
| 2. Beginning book value | 132,744,798.18 | 54,778,761.06 | 10,696,783.35 | 198,220,342.59 |
18. Intangible assets
(1) Details of intangible assets
Unit: CNY
| Item | Land use right | Patent rights | Non-patented technology | Total |
| I. Original book value | ||||
| 1. Opening balance | 2,638,198,126.04 | 607,046,360.09 | 367,511,725.92 | 3,612,756,212.05 |
| 2. Increase in the current period | 24,710.62 | 100,197,021.70 | 140,201,607.38 | 240,423,339.70 |
| (1) Purchase | 74,400,773.05 | 74,400,773.05 | ||
| (2) Internal R&D | 4,738,321.49 | 8,093,047.87 | 12,831,369.36 | |
| (3) Increase due to business combination | ||||
| (4) Other increases | 24,710.62 | 21,057,927.16 | 132,108,559.51 | 153,191,197.29 |
| 3. Decrease in the current period | 43,927,477.44 | 142,049,300.02 | 185,976,777.46 | |
| (1) Disposal | 42,710,875.82 | 7,179,133.67 | 49,890,009.49 | |
| (2) Invalid and derecognized portion | 2,761,606.84 | 2,761,606.84 | ||
| (3) Other decreases | 1,216,601.62 | 132,108,559.51 | 133,325,161.13 | |
| 4. Ending balance | 2,594,295,359.22 | 565,194,081.77 | 507,713,333.30 | 3,667,202,774.29 |
| II. Accumulated amortization | ||||
| 1. Opening balance | 553,533,325.53 | 206,764,960.99 | 303,361,007.48 | 1,063,659,294.00 |
| 2. Increase in the current period | 56,323,022.78 | 107,811,934.93 | 34,639,828.98 | 198,774,786.69 |
| (1) Provision | 56,311,346.18 | 107,633,120.95 | 23,889,537.23 | 187,834,004.36 |
| (2) Other increases | 11,676.60 | 178,813.98 | 10,750,291.75 | 10,940,782.33 |
| 3. Decrease in the current period | 13,072,874.59 | 20,592,212.46 | 33,665,087.05 | |
| (1) Disposal | 11,858,124.00 | 7,080,313.87 | 18,938,437.87 |
| (2) Invalid and derecognized portion | 2,761,606.84 | 2,761,606.84 | ||
| (3) Other decreases | 1,214,750.59 | 10,750,291.75 | 11,965,042.34 | |
| 4. Ending balance | 596,783,473.72 | 293,984,683.46 | 338,000,836.46 | 1,228,768,993.64 |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 1,997,511,885.50 | 271,209,398.31 | 169,712,496.84 | 2,438,433,780.65 |
| 2. Beginning book value | 2,084,664,800.51 | 400,281,399.10 | 64,150,718.44 | 2,549,096,918.05 |
The intangible assets not resulting from internal research and development of the Company accountsfor 0.35% of the balance of intangible assets at the end of the current period.
(2) Impairment testing of intangible assets
□Applicable ?Not applicable
19 Long-term deferred expenses
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Amortization amount in the current period | Other decreases | Ending balance |
| Maintenance, fire protection transformation and supporting expenses | 130,439.66 | 130,439.66 |
| Total | 130,439.66 | 130,439.66 |
Other description: none20 Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of assets | 677,552,365.56 | 118,050,995.83 | 633,651,664.00 | 111,898,550.65 |
| Unrealized profits of internal transactions | 173,759,629.21 | 43,439,907.30 | 11,827,733.38 | 2,956,933.35 |
| Deductible losses | 8,023,847,062.56 | 1,401,699,212.71 | 5,145,166,718.01 | 927,446,279.03 |
| Estimated liabilities | 643,639,504.01 | 105,676,319.80 | 794,067,908.68 | 132,797,620.71 |
| Employee compensation payable | 89,862,914.88 | 15,035,569.66 | 118,991,183.21 | 20,016,363.56 |
| Accrued expenses | 2,823,814,796.43 | 668,864,711.49 | 3,175,125,774.27 | 742,710,859.21 |
| Deferred income | 498,058,268.35 | 105,908,875.92 | 538,046,593.82 | 108,889,119.49 |
| Contract liabilities | 477,559,638.17 | 73,059,220.04 | 539,407,507.24 | 84,634,179.21 |
| Lease liabilities | 59,027,119.45 | 12,975,866.73 | 92,700,901.72 | 19,643,880.89 |
| Total | 13,467,121,298.62 | 2,544,710,679.48 | 11,048,985,984.33 | 2,150,993,786.10 |
(2) Deferred income tax liabilities not offset
Unit: CNY
| Item | Ending balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Depreciation of fixed assets with amortization period longer than tax preference period | 1,905,769,976.37 | 344,383,021.84 | 2,206,140,811.13 | 386,257,051.99 |
| Accrued interest income | 386,198,421.88 | 58,128,494.37 | 293,135,708.15 | 44,112,815.94 |
| Right-of-use assets | 57,431,098.06 | 12,560,241.88 | 93,026,784.76 | 19,672,212.64 |
| Total | 2,349,399,496.31 | 415,071,758.09 | 2,592,303,304.04 | 450,042,080.57 |
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
| Item | Ending Mutual Offset Amount of Deferred Tax Assets and Liabilities | Ending balance of deferred tax assets or liabilities after offset | Opening mutual offset amount of deferred tax assets and liabilities | Opening balance of deferred tax assets or liabilities after offset |
| Deferred income tax assets | 2,544,710,679.48 | 2,150,993,786.10 | ||
| Deferred income tax liabilities | 415,071,758.09 | 450,042,080.57 |
(4) Details of unrecognized deferred tax assets
Unit: CNY
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 577,137,993.79 | 619,818,965.27 |
| Deductible losses | 433,079,936.50 | 429,045,708.22 |
| Total | 1,010,217,930.29 | 1,048,864,673.49 |
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
| Year | Ending amount | Beginning balance | Remarks |
| 2026 | 1,441,940.00 | 1,441,940.00 | |
| 2027 | 3,524,136.57 | 3,524,136.57 | |
| 2028 | 201,247,514.48 | 197,213,286.20 | |
| 2029 | 28,041,132.70 | 28,041,132.70 | |
| 2032 | 198,825,212.75 | 198,825,212.75 | |
| Total | 433,079,936.50 | 429,045,708.22 |
Other description: none21 Assets with restricted ownership or use right
Unit: CNY
| Item | Ending | Beginning | ||||||
| Book balance | Book Value | Restriction type | Restriction | Book balance | Book Value | Restriction type | Restriction | |
| Monetary capital | 50,667,927.65 | 50,667,927.65 | 50,667,983.38 | 50,667,983.38 | Housing maintena | |||
| nce fund, security deposit for three types of personnel and frozen funds | ||||||||
| Total | 50,667,927.65 | 50,667,927.65 | 50,667,983.38 | 50,667,983.38 |
Other description: none22 Notes payable
Unit: CNY
| Category | Ending balance | Opening balance |
| Bank acceptance bill | 11,769,864,678.11 | 9,198,593,038.03 |
| Total | 11,769,864,678.11 | 9,198,593,038.03 |
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
23. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
| Item | Ending balance | Opening balance |
| Payment for goods | 15,746,874,454.72 | 9,297,168,020.86 |
| Project and equipment payment | 71,355,989.71 | 11,953,792.66 |
| Expenses and others | 677,340,998.02 | 724,486,854.54 |
| Total | 16,495,571,442.45 | 10,033,608,668.06 |
(2) Significant accounts payable with aging over one year or overdue
Unit: CNY
| Item | Ending balance | Reasons for not being repaid or carried over |
| Beijing SinoHytec Co., Ltd. | 73,244,235.95 | Undue settlement period |
| Tangshan Qianchen New Energy Development Co., Ltd. | 28,659,999.04 | Undue settlement period |
| Jiangsu Tianmu Construction Group Co., Ltd. | 3,041,335.60 | No acceptance |
| Jiangsu Liance Electromechanical Technology Co., Ltd. | 2,699,000.00 | No acceptance |
| Jilin Shihao Logistics Co., Ltd. | 2,169,554.34 | At the legal adjudication stage, accounts are frozen and payments are stopped |
| Total | 109,814,124.93 |
Other description: none
24. Other payables
Unit: CNY
| Item | Ending balance | Opening balance |
| Dividends payable | 171,500.02 | 171,500.02 |
| Other payables | 5,304,885,545.16 | 6,095,281,248.15 |
| Total | 5,305,057,045.18 | 6,095,452,748.17 |
(1) Dividends payable
Unit: CNY
| Item | Ending balance | Opening balance |
| Ordinary stock dividends | 171,500.02 | 171,500.02 |
| Total | 171,500.02 | 171,500.02 |
Other notes, including the disclosure of the reasons for not paying the significant dividends payablefor more than 1 year: None
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
| Item | Ending balance | Opening balance |
| Expenses payable | 3,421,359,290.16 | 3,371,722,694.19 |
| Margin, deposit | 310,785,014.96 | 311,219,645.69 |
| Project funds payable | 1,296,325,132.82 | 1,524,956,021.50 |
| Repurchase obligations of restricted shares | 86,131,497.27 | 267,837,184.11 |
| Current accounts payable and others | 190,284,609.95 | 619,545,702.66 |
| Total | 5,304,885,545.16 | 6,095,281,248.15 |
2) Other significant payables with aging over 1 year or overdue
Unit: CNY
| Item | Ending balance | Reasons for not being repaid or carried over |
| Eisenmann (Shanghai) Co., Ltd. | 15,722,294.45 | Project not completed |
| Chongqing Sino-German Smart | 6,934,929.70 | Project not completed |
| Factory Solutions Co., Ltd. | ||
| Anhui HangDa Intelligent Technology Co., Ltd. | 6,686,939.00 | Project not completed |
| Hefei Metalforming Intelligent Manufacturing Co., Ltd. | 5,584,000.00 | Project not completed |
| SCIVIC Engineering Corporation | 5,263,200.00 | Project not completed |
| Total | 40,191,363.15 |
3) Other payables of top five counterparties classified based on the ending balanceThe other payables with the top five ending balances classified by the other payable parties in thecurrent period are CNY 418,658,290.40, accounting for 7.89% of the total ending balance of otherpayables.
25. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
| Item | Ending balance | Opening balance |
| Rental fee | 641,221.46 | 1,861,865.37 |
| Total | 641,221.46 | 1,861,865.37 |
26. Contract liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Payment for goods | 1,863,445,370.73 | 1,155,321,169.46 |
| Others | 555,703,269.04 | 607,787,793.96 |
| Contract liabilities included in other current liabilities | -214,456,037.00 | -133,584,259.07 |
| Total | 2,204,692,602.77 | 1,629,524,704.35 |
27. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Short-term compensation | 273,674,313.00 | 4,636,492,681.51 | 4,613,442,548.51 | 296,724,446.00 |
| II. Post-employment benefits - defined contribution plan | 62,829,341.18 | 593,969,874.87 | 640,514,666.65 | 16,284,549.40 |
| III. Dismissal welfare | 46,184,524.58 | 53,920,936.95 | 61,684,571.73 | 38,420,889.80 |
| IV. Other benefits due within one year | 53,960,000.00 | 57,482,173.91 | 60,832,173.92 | 50,609,999.99 |
| Total | 436,648,178.76 | 5,341,865,667.24 | 5,376,473,960.81 | 402,039,885.19 |
(2) Presentation of short-term compensation
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 3,316,146,420.15 | 3,316,146,420.15 | ||
| 2. Employee welfare expenses | 216,947,971.17 | 216,947,971.17 |
| 3. Social insurance premiums | 5,214,934.60 | 334,953,880.49 | 336,241,502.56 | 3,927,312.53 |
| Including: medical insurance premiums | 3,961,154.86 | 313,535,630.04 | 313,569,472.37 | 3,927,312.53 |
| Work-related injury insurance premiums | 1,253,779.74 | 16,558,475.67 | 17,812,255.41 | |
| Maternity insurance premium | 4,859,774.78 | 4,859,774.78 | ||
| 4. Housing provident fund | 884.00 | 464,408,428.48 | 464,409,312.48 | |
| 5. Labor union funds and employee education funds | 268,458,494.40 | 117,526,901.11 | 93,188,262.04 | 292,797,133.47 |
| 6. Other short-term compensated absence | 186,509,080.11 | 186,509,080.11 | ||
| Total | 273,674,313.00 | 4,636,492,681.51 | 4,613,442,548.51 | 296,724,446.00 |
(3) Presentation of defined contribution plan
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Basic endowment insurance | 49,474,178.04 | 416,800,791.86 | 452,365,357.71 | 13,909,612.19 |
| 2. Unemployment insurance premiums | 3,838,010.94 | 17,184,129.89 | 18,647,203.62 | 2,374,937.21 |
| 3. Payment of enterprise annuity | 9,517,152.20 | 159,984,953.12 | 169,502,105.32 | |
| Total | 62,829,341.18 | 593,969,874.87 | 640,514,666.65 | 16,284,549.40 |
Other description: none
28. Taxes payable
Unit: CNY
| Item | Ending balance | Opening balance |
| VAT | 33,868,153.98 | 142,544,438.56 |
| Corporate income tax | 12,652,169.68 | 73,697,911.27 |
| Individual income tax | 44,332,949.39 | 45,190,640.96 |
| Urban maintenance and construction tax | 1,563,765.87 | 8,789,299.91 |
| Property tax | 12,070,417.66 | 7,910,979.72 |
| Land use tax | 4,302,440.45 | 4,512,474.49 |
| Education surcharges | 3,588,461.26 | 8,830,240.70 |
| Other taxes | 16,844,015.03 | 9,735,859.90 |
| Total | 129,222,373.32 | 301,211,845.51 |
Other description: none
29. Non-current liabilities due within one year
Unit: CNY
| Item | Ending balance | Opening balance |
| Lease liabilities due within one year | 27,171,195.40 | 32,998,374.87 |
| Total | 27,171,195.40 | 32,998,374.87 |
Other description: none
30. Other current liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Taxes to be written off | 214,456,037.00 | 133,584,259.07 |
| Total | 214,456,037.00 | 133,584,259.07 |
31. Lease liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Lease payment | 61,122,271.61 | 94,353,447.57 |
| Unrecognized financing charges | -3,457,062.08 | -6,540,469.64 |
| Lease liabilities due within one year | -27,171,195.40 | -32,998,374.87 |
| Total | 30,494,014.13 | 54,814,603.06 |
Other notes: The interest of lease liabilities accrued in 2023 is CNY 3,063,600.
32. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
| Item | Ending balance | Opening balance |
| I. Post-employment welfare - net liabilities of defined benefit plan | 667,280,000.00 | 694,320,000.00 |
| II. Dismissal welfare | 94,708,523.04 | 112,469,743.86 |
| Long-term employee compensation payable due within one year | -89,030,889.79 | -99,478,853.43 |
| Total | 672,957,633.25 | 707,310,890.43 |
33. Estimated liabilities
Unit: CNY
| Item | Ending balance | Opening balance | Reason |
| Pending litigation | 7,321,618.04 | 32,195,157.32 | Product quality disputes |
| Product quality assurance | 711,161,690.70 | 826,046,651.49 | Expenses for return, replacement and repair |
| Others | 17,226,995.29 | 17,226,995.29 | Labor social security |
| Total | 735,710,304.03 | 875,468,804.10 |
Other description, including important assumptions and estimation descriptions related to importantestimated liabilities:
34. Deferred income
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Reason |
| Government subsidies | 3,121,985,685.93 | 173,629,410.22 | 311,936,728.62 | 2,983,678,367.53 | |
| Total | 3,121,985,685.93 | 173,629,410.22 | 311,936,728.62 | 2,983,678,367.53 | -- |
Other description: none
35. Share capital
Unit: CNY
| Opening balance | Increase/Decrease (+/-) | Ending balance |
| Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | |||
| Total shares | 4,651,965,655.00 | -15,479,987.00 | -15,479,987.00 | 4,636,485,668.00 |
Other notes: The share capital is decreased by CNY 15,479,987.00 in the current period, which iscaused by the repurchase and cancellation of restricted shares of the Company. For details, refer toIII "Company Profile" of Section X - Financial Report.
36. Capital reserves
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Capital premium (stock premium) | 9,373,398,263.61 | 50,594,181.86 | 82,470,046.45 | 9,341,522,399.02 |
| Other capital reserves | 1,077,689,973.13 | 75,793,420.42 | 1,001,896,552.71 | |
| Total | 10,451,088,236.74 | 50,594,181.86 | 158,263,466.87 | 10,343,418,951.73 |
Other description, including increase/decrease in the current period and reasons for change:
(1) The capital reserve (share premium) is increased by CNY 50,594,181.86 in the current period,which is caused by the unlocking of restricted shares in the Company's equity incentive plan.
(2) The capital reserve (share premium) is decreased by CNY 82,470,046.45 in the current period,which is caused by the repurchase and cancellation of the Company's equity incentive plan.
(3) The capital reserve (other capital reserves) is decreased by CNY 75,793,420.42. The decrease ofCNY 50,594,181.86 is caused by the unlocking of restricted shares in the Company's equityincentive plan, the decrease of CNY 24,775,825.33 by the repurchase of restricted shares due to thenon-achievement of performance appraisal objectives set for the second restriction releasing periodfirstly granted and the first restriction releasing period reserved in the phase I restricted shareincentive plan, and the decrease of CNY 423,413.23 by the recognition of changes in other owner'sequity of the investee in proportion to its equity, other than net profit or loss, other comprehensiveincome and profit distribution.37 Treasury shares
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Treasury shares | 267,837,184.11 | 181,705,686.84 | 86,131,497.27 | |
| Total | 267,837,184.11 | 181,705,686.84 | 86,131,497.27 |
Other description, including increase/decrease in the current period and reasons for change:
(1) The treasury share is decreased by CNY 97,950,033.45 in the current period, which is caused bythe repurchase and cancellation recognized by the Company in the equity incentive plan.
(2) The treasury share is decreased by CNY 83,755,653.39 in the current period, which is caused bythe repurchase of restricted shares due to the non-achievement of performance appraisal objectivesset for the second restriction releasing period firstly granted and the first restriction releasing periodreserved in the phase I restricted share incentive plan.38 Other comprehensive incomes
Unit: CNY
| Item | Opening balance | Amount Incurred in Current Period | Ending balance | |||||
| Amount incurred before | Less: Current Profits or Losses Transferred from | Less: Current Retained Earnings Transferred from | Less: income tax expenses | After-tax amount attributable to parent company | After-tax amount attributable to minority sharehol | |||
| income tax in the current period | Other Comprehensive Income Recorded in the Previous Period | Other Comprehensive Income Recorded in the Previous Period | ders | |||||
| I. Other comprehensive incomes that cannot be reclassified into profits or losses | -4,024,777.80 | -4,710,588.55 | -8,735,366.35 | |||||
| Including: changes arising from re-measurement of the defined benefit plan | -4,040,000.00 | -5,170,000.00 | -9,210,000.00 | |||||
| Other comprehensive incomes that cannot be reclassified into profit or loss under the equity method | 15,222.20 | 459,411.45 | 474,633.65 | |||||
| II. Other comprehensive incomes that will be reclassified into profits or losses | -1,374,343.01 | 1,595,599.26 | 221,256.25 |
| Including: other comprehensive incomes that can be reclassified into profits or losses under the equity method | -496,016.97 | 871,354.25 | 375,337.28 | |||||
| Translation difference in foreign currency financial statements | -878,326.04 | 724,245.01 | -154,081.03 | |||||
| Total other comprehensive incomes | -5,399,120.81 | -3,114,989.29 | -8,514,110.10 |
Other description, including the adjustment of the effective part of cash flow hedging profit or losstransferred to the initially recognized amount of the hedged item:
39 Special reserves
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Work safety cost | 370,420,291.86 | 37,672,287.45 | 88,778,051.46 | 319,314,527.85 |
| Total | 370,420,291.86 | 37,672,287.45 | 88,778,051.46 | 319,314,527.85 |
Other description, including increase/decrease in the current period and reasons for change:
40 Surplus reserves
Unit: CNY
| Item | Opening balance | Increase in the | Decrease in the | Ending balance |
| Current Period | Current Period | |||
| Statutory surplus reserve | 2,760,723,110.73 | 32,158,714.43 | 2,792,881,825.16 | |
| Discretionary surplus reserves | 297,526,491.71 | 297,526,491.71 | ||
| Total | 3,058,249,602.44 | 32,158,714.43 | 3,090,408,316.87 |
Explanation of surplus reserve, including changes in increase and decrease in the current period, andreasons for changes: According to the provisions of the Company Law and the Articles ofAssociation, the Company withdraws the statutory surplus reserve at 10% of the net profit. If theaccumulated amount of statutory surplus reserve is more than 50% of the registered capital of theCompany, it may not be withdrawn any more.41 Undistributed profits
Unit: CNY
| Item | Current period | Previous period |
| Undistributed profits at the end of the previous period before adjustment | 5,460,939,601.36 | 8,434,403,352.08 |
| Total amount of opening undistributed profit adjusted ("+" for increase, "-" for decrease) | -28,331.75 | 273,000.03 |
| Undistributed profits at the beginning of the current period after adjustment | 5,460,911,269.61 | 8,434,676,352.11 |
| Add: net profit attributable to owners of parent company in the current period | 763,024,957.14 | 367,444,113.56 |
| Less: withdrawal of statutory surplus reserve | 32,158,714.43 | 316,034,697.61 |
| Common stock dividends payable | 3,025,174,498.45 | |
| Undistributed profits at the end of the period | 6,191,777,512.32 | 5,460,911,269.61 |
Details of adjustment to undistributed profits at the beginning of period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant
new regulations impacts the opening undistributed profit by CNY 0.00.
2) The changes in accounting policies impact the opening undistributed profit by CNY -28,331.75.
3) The correction of major accounting errors impacts the opening undistributed profit by CNY 0.00.
4) The change in combination scope caused by the same control impacts the opening undistributedprofit by CNY 0.00.
5) Other adjustments affect the opening undistributed profit by CNY 0.00 in total.42 Operating income and operating cost
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main business | 61,967,850,165.95 | 57,133,830,184.15 | 36,242,318,100.83 | 33,608,683,181.19 |
| Other business | 1,936,682,311.08 | 1,495,805,527.40 | 2,089,428,983.05 | 1,643,487,705.34 |
| Total | 63,904,532,477.03 | 58,629,635,711.55 | 38,331,747,083.88 | 35,252,170,886.53 |
Whether the audited lower net profit before and after the deduction of non-recurring profit or loss isnegative?Yes □No
Unit: CNY
| Item | Current Year | Specific Deductions | Previous Year | Specific Deductions |
| Amount of operating income | 63,904,532,477.03 | Sales revenue of complete vehicles, parts and components, materials, and purchased semi-finished products, etc. | 38,331,747,083.88 | Sales revenue of complete vehicles, parts and components, materials, and purchased semi-finished products, etc. |
| Total amount of | 11,310,091.46 | Rental income | 30,729,859.27 | Rental income |
| operating income deduction items | for the current period, rental income and entrusted operating income for the previous period | and entrusted operating income | ||
| Proportion of total amount of operating income deduction items in operating income | 0.02% | 0.08% | ||
| I. Business income irrelevant to main business | ||||
| 1. Other business income other than normal operation. Income from leasing of fixed assets, intangible assets, packaging materials, sales of materials, exchange of non-monetary assets with materials, operation of trusteeship management business, etc., and income that is included in the main business income but belongs to income other than the normal operation of listed companies. | 11,310,091.46 | Rental income | 30,729,859.27 | Rental income and entrusted operating income |
| Subtotal of business income irrelevant to main business | 11,310,091.46 | Rental income | 30,729,859.27 | Rental income and entrusted operating income |
| II. Income without commercial substance | ||||
| Subtotal of income without commercial substance | 0.00 | N/A | 0.00 | N/A |
| III. Other incomes irrelevant to main business or without | 0.00 | N/A | 0.00 | N/A |
| commercial substance | ||||
| Amount of operating income after deduction | 63,893,222,385.57 | Deducting the rental income | 38,301,017,224.61 | Deduct the rental income and entrusted operating income |
Information related to the transaction price apportioned to the remaining performance obligation: Atthe end of the reporting period, the income corresponding to the performance obligations that havebeen signed but have not been performed or fulfilled is CNY 555,703,269.04, of which CNY555,703,269.04 is expected to be recognized in 2024.43 Taxes and surcharges
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Urban maintenance and construction tax | 55,161,168.21 | 47,145,522.88 |
| Education surcharges | 36,481,730.95 | 33,829,961.36 |
| Property tax | 70,287,308.66 | 46,965,136.96 |
| Land use tax | 35,743,310.23 | 36,781,212.64 |
| Vehicle and vessel use tax | 153,731.13 | 142,115.38 |
| Stamp duty | 62,802,256.11 | 40,861,476.54 |
| Environmental protection tax | 284,890.41 | 624,447.37 |
| Others | 1,254,700.00 | 1,448,295.47 |
| Total | 262,169,095.70 | 207,798,168.60 |
Other description: none44 Administrative expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 1,157,311,260.41 | 1,301,448,789.79 |
| Repair cost of fixed assets | 224,243,903.80 | 211,593,916.90 |
| Depreciation cost | 134,769,137.70 | 121,826,644.98 |
| Amortization of intangible assets | 89,058,627.23 | 89,587,242.31 |
| Information system service fee | 44,974,632.15 | 57,041,277.43 |
| Labor outsourcing fee | 43,425,300.04 | 59,607,050.45 |
| Kinetic energy and workshop heating cost | 30,230,843.03 | 27,302,410.38 |
| Rental fee | 29,006,964.88 | 18,459,511.78 |
| Travel expense | 24,573,092.55 | 9,765,368.99 |
| Sewage charge | 24,116,561.43 | 19,168,854.12 |
| Test and inspection fee | 16,225,280.86 | 15,517,955.33 |
| Publicity fee | 14,480,896.95 | 17,836,870.27 |
| Environmental improvement fee | 13,230,455.08 | 11,838,305.85 |
| Amortization of low value consumables | 9,810,114.81 | 25,465,015.78 |
| Security deposit for the disabled | 7,933,560.44 | 8,575,779.84 |
| Office expenses | 7,141,007.61 | 7,352,183.57 |
| Property insurance | 6,167,238.74 | 6,560,789.79 |
| Authentication fee | 4,222,384.21 | 6,494,147.27 |
| Others | 50,358,215.72 | 24,897,239.79 |
| Total | 1,931,279,477.64 | 2,040,339,354.62 |
Other description: none45 Sales expenses
Unit: CNY
| Item | Amount Incurred in Current | Amount Incurred in the |
| Period | Previous Period | |
| Employee compensation | 538,874,991.03 | 484,204,274.83 |
| Product quality assurance fee | 572,738,063.59 | 317,822,200.89 |
| Storage fee | 121,382,744.57 | 115,093,555.63 |
| Packing cost | 98,493,329.64 | 72,593,424.84 |
| Travel expense | 91,651,756.85 | 74,320,500.71 |
| Rental fee | 41,481,137.84 | 50,722,637.92 |
| Business publicity fee | 33,684,506.07 | 44,003,511.80 |
| Sales service fee | 24,268,028.17 | 35,005,162.00 |
| Advertising expenses | 19,189,345.23 | 19,878,977.32 |
| Promotion fee | 9,754,960.71 | 19,429,048.84 |
| Consultation expenses | 6,454,232.79 | 5,241,472.53 |
| Exhibition fees | 5,510,100.63 | 542,242.96 |
| Depreciation cost | 5,187,005.62 | 5,710,292.12 |
| Customer training fee | 2,255,558.39 | 1,938,138.40 |
| Insurance premium | 2,067,679.11 | 4,668,488.93 |
| Office expenses | 1,920,969.19 | 1,886,628.35 |
| Business entertainment expenses | 1,196,812.68 | 1,442,401.26 |
| Others | 29,384,011.87 | 1,379,262.31 |
| Total | 1,605,495,233.98 | 1,255,882,221.64 |
Other description: none46 R&D expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Labor cost | 1,636,551,834.14 | 1,583,140,010.50 |
| Material cost | 466,540,598.59 | 398,861,686.79 |
| Test fee | 316,626,655.94 | 306,593,980.19 |
| Depreciation amortization expense | 254,417,232.35 | 229,336,754.97 |
| Water, electricity and gas charges | 84,675,033.97 | 54,383,428.21 |
| Technical development cost | 58,499,726.43 | 144,758,268.44 |
| Others | 164,946,797.74 | 178,580,968.63 |
| Total | 2,982,257,879.16 | 2,895,655,097.73 |
Other description: none47 Financial expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest expense | 3,801,492.51 | 5,602,156.49 |
| Interest income | -768,570,466.66 | -949,854,588.85 |
| Exchange gain or loss | 7,140.40 | -245,058.21 |
| Cash discount | -173,364,601.86 | -131,070,726.61 |
| Net actuarial interest | 22,534,650.42 | 22,530,846.13 |
| Fees and other charges | 201,922.62 | 436,557.88 |
| Total | -915,389,862.57 | -1,052,600,813.17 |
Other description: none48 Other income
Unit: CNY
| Sources of other income | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies | 546,340,041.28 | 1,635,846,930.83 |
| Service charges of individual income tax withholding | 2,021,584.31 | 2,213,208.37 |
| Additional tax credit of VAT | 64,529,919.18 | |
| Total | 612,891,544.77 | 1,638,060,139.20 |
49. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Income from long-term equity investments accounted for using the equity method | 347,980,074.28 | 346,588,767.31 |
| Others | -65,651,226.20 | -109,670,548.80 |
| Total | 282,328,848.08 | 236,918,218.51 |
Other description: none50 Credit impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bad debt losses of notes receivable | 586,187.61 | -729,878.89 |
| Bad debt losses of accounts receivable | -27,117,691.73 | 4,879,276.36 |
| Bad debt losses of other receivables | -19,364,175.41 | -1,635,328.06 |
| Bad debt losses of long-term receivables | -7,658,318.79 | -1,594,912.32 |
| Total | -53,553,998.32 | 919,157.09 |
Other description: none
51 Asset impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| I. Inventory falling price loss and contract performance cost impairment loss | -195,269,297.59 | -418,448,406.89 |
| II. Loss from fixed assets impairment | -6,128,378.48 | -10,230,753.57 |
| III. Loss from contractual asset impairment | -228,908.47 | 4,390,582.21 |
| Total | -201,626,584.54 | -424,288,578.25 |
Other description: none52 Income from assets disposal
Unit: CNY
| Sources of income from assets disposal | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Gains from disposal of fixed assets | 8,227,813.84 | 118,681,219.23 |
| Gains from disposal of intangible assets | 184,441,684.84 | 752,349,888.83 |
| Total | 192,669,498.68 | 871,031,108.06 |
53. Non-operating income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and |
| losses | |||
| Unpayable amount recognized | 110,679,101.87 | 135,470,008.26 | 110,679,101.87 |
| Income from compensation, liquidated damages and penalties | 25,287,277.01 | 14,867,839.76 | 25,287,277.01 |
| Gains from damage and retirement of non-current assets | 891,307.00 | 1,172,055.53 | 891,307.00 |
| Others | 60,980,082.35 | 2,487,290.88 | 60,980,082.35 |
| Total | 197,837,768.23 | 153,997,194.43 | 197,837,768.23 |
Other description: none
54. Non-operating expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and losses |
| Donation | 12,050,000.00 | 19,050,000.00 | 12,050,000.00 |
| Losses from damage and retirement of non-current assets | 4,685,419.26 | 3,340,608.37 | 4,685,419.26 |
| Expenditure of liquidated damages and penalties | 7,432,783.52 | 4,057,445.84 | 7,432,783.52 |
| Others | 295,117.99 | 119,683.80 | 295,117.99 |
| Total | 24,463,320.77 | 26,567,738.01 | 24,463,320.77 |
Other description: none
55 Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Current income tax expenses | 80,830,956.42 | 239,694,863.79 |
| Deferred income tax expense | -428,687,215.86 | -424,567,308.39 |
| Total | -347,856,259.44 | -184,872,444.60 |
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period |
| Total profits | 415,168,697.70 |
| Income tax expense calculated at statutory/applicable tax rate | 103,792,174.43 |
| Effect of different tax rates applied to subsidiaries | -9,358,155.34 |
| Effect of adjustment to income tax of previous periods | -9,037,550.37 |
| Effect of non-taxable income | -613,904.59 |
| Effect of non-deductible costs, expenses and losses | 25,193,214.47 |
| Profit or loss of joint ventures and associated enterprises calculated by equity method | -83,798,418.78 |
| Tax effect of R&D expenses plus deduction (to be listed with "-") | -379,834,777.17 |
| Tax effect of unrecognized deductible losses and deductible temporary difference | 7,413,887.82 |
| Others | -1,612,729.91 |
| Income tax expenses | -347,856,259.44 |
Other description: none56 Other comprehensive incomesSee 38 in Note VII.57 Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bank interest | 661,686,448.23 | |
| Collection and payment | 591,395,448.15 | 399,036,119.74 |
| Government subsidies received | 494,635,558.37 | 1,869,848,621.04 |
| Deposits received | 25,639,855.20 | 1,912,903.41 |
| Rental fee received | 20,310,385.96 | 36,296,614.49 |
| Fines and indemnities received | 6,771,123.26 | 7,810,168.36 |
| Recovery of reserve funds | 3,864,873.02 | 2,240,229.10 |
| Refund of handling fees | 788,831.31 | 1,523,773.84 |
| Other current accounts | 64,048,829.44 | 35,681,869.82 |
| Total | 1,869,141,352.94 | 2,354,350,299.80 |
Description of other cash received related to operating activities: NoneOther cash paid related to operating activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Out-of-pocket expenses | 1,286,692,773.25 | 992,021,968.62 |
| Current account | 414,443,028.61 | 483,929,928.94 |
| Donations | 12,050,000.00 | 18,750,000.00 |
| Total | 1,713,185,801.86 | 1,494,701,897.56 |
Description of other cash paid related to operating activities: None
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest received | 798,551,894.65 | |
| Total | 798,551,894.65 |
Description of other cash received related to investing activities: NoneOther cash paid related to investing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Cash attached to the invested business | 17,676,304.33 | |
| Total | 17,676,304.33 |
Description of other cash paid related to investing activities: None
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Amount paid to repay lease liabilities | 22,968,693.24 | 55,183,852.56 |
| Total | 22,968,693.24 | 55,183,852.56 |
Description of other cash paid related to financing activities: NoneChanges in liabilities arising from financing activities
□Applicable ?Not applicable
58 Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
| Supplementary information | Amount in the Current Period | Amount of the Previous Period |
| 1. Reconciliation of net profit to cash flows from operating activities | ||
| Net Profit | 763,024,957.14 | 367,444,113.56 |
| Add: impairment provision of assets | 255,180,582.86 | 423,369,421.16 |
| Depreciation of fixed assets, depletion of oil and gas assets and productive biological assets | 1,646,806,052.64 | 1,529,451,202.97 |
| Depreciation of right-of-use asset | 59,592,704.16 | 52,841,739.81 |
| Amortization of intangible assets | 187,834,004.36 | 172,902,609.68 |
| Amortization of long-term deferred expenses | 130,439.66 | 204,158.64 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (incomes to be listed with "-") | -192,669,498.68 | -871,031,108.06 |
| Loss from retirement of fixed assets (incomes to be listed with “-”) | 4,685,419.26 | 2,168,552.84 |
| Loss from changes in fair value (incomes |
| to be listed with “-”) | ||
| Financial expenses (incomes to be listed with “-”) | -383,675,996.41 | -944,252,432.36 |
| Investment losses (incomes to be listed with “-”) | -448,976,452.61 | -346,588,767.31 |
| Decrease of deferred income tax assets (increase to be listed with "-") | -393,716,893.38 | -474,454,233.54 |
| Increases of deferred income tax liabilities (decrease to be listed with “-”) | -34,970,322.48 | 49,886,925.15 |
| Decrease in inventories (increase to be listed with "-") | -3,023,500,755.91 | 2,466,932,226.53 |
| Decrease in operating receivables (increase to be listed with "-") | -1,777,558,924.80 | 2,956,699,661.76 |
| Increase in operating items payable (decrease to be listed with “-”) | 7,728,945,488.12 | -11,224,753,054.89 |
| Others | -189,413,082.41 | 703,935,014.71 |
| Net cash flows from operating activities | 4,201,717,721.52 | -5,135,243,969.35 |
| 2. Major investment and financing activities not related to cash deposit and withdrawal: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds within one year | ||
| Fixed assets acquired under financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Ending balance of cash | 22,483,844,553.59 | 20,697,669,726.18 |
| Less: opening balance of cash | 20,697,669,726.18 | 30,542,676,891.89 |
| Add: ending balance of cash equivalents | ||
| Less: opening balance of cash equivalents |
| Net increase in cash and cash equivalents | 1,786,174,827.41 | -9,845,007,165.71 |
(2) Composition of cash and cash equivalents
Unit: CNY
| Item | Ending balance | Opening balance |
| I. Cash | 22,483,844,553.59 | 20,697,669,726.18 |
| Bank deposits readily available for payment | 22,483,844,553.59 | 20,697,669,726.18 |
| II. Ending balance of cash and cash equivalents | 22,483,844,553.59 | 20,697,669,726.18 |
59 Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
| Item | Foreign Currency Balance at the End of the Period | Exchange rate | Ending Balance Converted into CNY |
| Monetary capital | |||
| Including: USD | |||
| EUR | 1,519,475.81 | 7.8592 | 11,941,864.29 |
| HKD | |||
| Accounts receivable | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Long-term loans | |||
| Including: USD |
| EUR | |||
| HKD |
Other description: none
(2) Description of overseas operating entities, including the disclosure of main overseasbusiness place, recording currency and selection basis, or changes in the recording currency (ifany) for important overseas operating entities.?Applicable □Not applicableThe main business place of FAW Jiefang Austria R&D Co., Ltd., a subsidiary of the Company, isSteyr, Austria, with a registered capital of EUR 2 million and a recording currency of EUR.
60. Lease
(1) The Company acting as the lessee
?Applicable □Not applicableVariable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease expenses for simplified short-term leases or low-value asset leases?Applicable □Not applicableThe Company simplifies the short-term lease and low-value asset lease, and does not recognize theright-of-use assets and lease liabilities. The short-term lease, low-value assets and variable leasepayments not included in the lease liabilities measurement are included in the expenses in the currentperiod as follows:
| Item | Amount Incurred in Current Period |
| Short-term lease expense | 25,207,735.42 |
| Low-value asset lease expense |
| Item | Amount Incurred in Current Period |
| Variable lease payments not included in the measurement of lease liabilities | |
| Total | 25,207,735.42 |
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable ?Not applicable
Financing lease with the Company acting as the lessor
□Applicable ?Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable ?Not applicable
VIII. R&D Expenditures
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Including: Expensed R&D expenditure | 2,982,257,879.16 | 2,895,655,097.73 |
| Capitalized R&D expenditure | 122,705,199.95 |
1. R&D projects eligible for capitalization
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | ||
| Internal | Oth | Recognized as | Transf | |||
| development expenditures | ers | intangible assets | erred to current profits and losses | |||
| A2205 | 5,393,345.15 | 5,393,345.15 | ||||
| A2206 | 12,831,369.36 | 12,831,369.36 | - | |||
| A2207 | 9,870,532.29 | 9,870,532.29 | ||||
| A2208 | 12,756,268.51 | 12,756,268.51 | ||||
| A2209 | 26,396,041.18 | 26,396,041.18 | ||||
| A2305 | 12,547,492.73 | 12,547,492.73 | ||||
| A2306 | 16,094,984.19 | 16,094,984.19 | ||||
| A2307 | 2,723,108.10 | 2,723,108.10 | ||||
| A2308 | 12,945,847.92 | 12,945,847.92 | ||||
| T2208 | 8,944,559.08 | 8,944,559.08 | ||||
| T2209 | 2,201,651.44 | 2,201,651.44 | ||||
| Total | 122,705,199.95 | 12,831,369.36 | 109,873,830.59 |
Significant capitalized R&D projects
| Item | R&D progress | Expected completion time | Expected generation method of economic benefits | Time point of capitalization starting | Specific basis for capitalization starting |
| A2207 | A round of reliability validation/production approval for launching/TR4A stage | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2208 | A round of reliability validation/production approval for launching/TR4A stage | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the |
| project review meeting | |||||
| A2205 | A round of reliability validation/production approval for launching/TR4A stage | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2206 | Completed | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2209 | Completion of bench validation, and the launch of complete vehicle validation and trial production | May 31, 2024 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2308 | A-prototype development stage | March 31, 2026 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2306 | A-prototype development stage | December 31, 2024 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2307 | A-prototype development stage | February 28, 2026 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2305 | A-prototype development stage | February 28, 2026 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2208 | Closing of design scheme completed, trial production of A-prototype under the way | March 31, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2209 | B-axle review completed, B-axle development under the way | December 31, 2024 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
IX. Changes in Consolidation Scope
1. Changes in consolidation scope for other reasons
A change in consolidation scope for other reasons (establishment of new subsidiaries, liquidation ofsubsidiaries, etc.) and its related information are detailed below: A new subsidiary, FAW JiefangYounida (Tianjin) Technology Co., Ltd., was added within the consolidation scope in the currentperiod, which was incorporated and wholly owned by the Company on April 14, 2023, with theregistered capital of CNY 90 million, registered address: Room 202, Office Section of InspectionWarehouse, No. 6262 Aozhou Road, Tianjin Free Trade Pilot Zone (Dongjiang ComprehensiveBonded Port Area) (Tianjin Dongjiang Business Secretary Service Co., Ltd. Free Trade Zone Branch,Trusteeship No. 8279), and unified social credit code: 91120118MACFM74D3H.X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: CNY
| Name of subsidiary | Registered Capital | Principal business place | Registered address | Nature of business | Share proportion | Way of acquisition | |
| Direct | Indirect | ||||||
| Jiefang Limited | 10,803,012,510.01 | Changchun | Changchun | Vehicle manufacturing | 100.00% | Business merger under common control | |
| FAW Jiefang (Qingdao) Automoti | 802,000,000.00 | Qingdao | Qingdao | Vehicle manufacturing and sales | 100.00% | Business merger under common control | |
| ve Co., Ltd. | |||||||
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 1,400,000,000.00 | Dalian | Dalian | Automotive engine manufacturing | 100.00% | Business merger under common control | |
| Wuxi Dahao Power Co., Ltd. | 38,094,059.61 | Wuxi | Wuxi | Manufacturing of automotive components and accessories | 100.00% | Business merger under common control | |
| FAW Jiefang Austria R&D Co., Ltd. | 15,765,000.00 | Austria | Austria | Technology research and development | 100.00% | Business merger under common control | |
| FAW Jiefang New Energy Automotive Sales Co., Ltd. | 200,000,000 | Changchun | Changchun | Vehicle sales | 100.00% | Establishment by investment | |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | 90,000,000.00 | Tianjin | Tianjin | Technical services and other services | 100.00% | Establishment by investment |
Description of the fact that the shareholding proportion in subsidiaries is different from theproportion of voting rights: noneBasis for holding half or less of the voting rights but still controlling the investee, and for holdingmore than half of the voting rights but not controlling the investee: noneBasis for control of important structured entities included in the consolidation scope: noneBasis for determining whether the Company is an agent or a principal: noneOther description: none
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
| Name of Joint Ventures or Associated Enterprises | Principal business place | Registered address | Nature of business | Share proportion | Accounting Treatment Method for Investment in Joint Ventures or Associated Enterprises | |
| Direct | Indirect | |||||
| First Automobile Finance Co., Ltd. | Changchun | Changchun | Financial services | 21.84% | Equity method | |
| Sanguard Automobile Insurance Co., Ltd. | Changchun | Changchun | Financial insurance | 17.50% | Equity method | |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 40.00% | Equity method | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 21.81% | Equity method | |
| Changchun Wabco Automotive Control System Co., Ltd. | Changchun | Changchun | Manufacturing of automotive components and accessories | 40.00% | Equity method | |
| Suzhou Zhito Technology Co., Ltd. | Suzhou | Suzhou | Research and experimental development | 25.68% | Equity method | |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., | Tianjin | Tianjin | Software and information technology services | 10.00% | Equity method | |
| Ltd. | ||||||
| SmartLink | Nanjing | Nanjing | Software and information technology services | 35.00% | Equity method | |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Foshan | Foshan | Manufacturing and technical services | 45.00% | Equity method | |
| Changchun Automotive Test Center Co., Ltd. | Changchun | Changchun | Technical services | 14.63% | Equity method | |
| Jiefang Times New Energy Technology Co., Ltd. | Shijiazhuang | Shijiazhuang | Technical services and other services | 50.00% | Equity method | |
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | Wuxi | Wuxi | Engineering and technology research and experiment development | 49.00% | Equity method |
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises isdifferent from the proportion of voting rights: there is no difference between the shareholdingproportion and the proportion of voting rights.Basis for holding less than 20% of voting rights but with significant influence, or holding 20% ormore of voting rights but without significant influence: The Company holds 17.50% of the shares ofSanguard Automobile Insurance Co., Ltd., but it sends one director to the latter according to theArticles of Association of the latter, so the Company can exert significant influence on SanguardAutomobile Insurance Co., Ltd. The Company holds 10.00% of the shares of Jiefang Fujie (Tianjin)Technology Industry Co., Ltd., but it sends three directors to the latter according to the Articles ofAssociation of the latter, so the Company can exert significant influence on Jiefang Fujie (Tianjin)Technology Industry Co., Ltd. The Company holds 14.63% of the shares of Changchun AutomotiveTest Center Co., Ltd., but it sends one director to the latter according to the Articles of Association ofthe latter, so the Company can exert significant influence on Changchun Automotive Test Center Co.,Ltd.
(2) Main financial information of important joint ventures
Unit: CNY
| Ending Balance/Amount Incurred in Current Period | Opening Balance/Amount Incurred in Previous Period | |
| Jiefang Times New Energy Technology Co., Ltd. | ||
| Current assets | 106,516,730.29 | |
| Including: Cash and cash equivalents | ||
| Non-current assets | 180,155,847.21 | |
| Total assets | 286,672,577.50 | |
| Current liabilities | 225,396.83 | |
| Non-current liabilities | 203,389,215.33 | |
| Total liabilities | 203,614,612.16 | |
| Minority equity | ||
| Equity attributable to shareholders of the parent company | 83,057,965.34 | |
| Shares of net assets calculated as per the shareholding proportion | 41,528,982.67 | |
| Adjustments | ||
| --Goodwill | ||
| --Unrealized profits from internal transactions | ||
| --Others | ||
| Book value of equity investment to joint ventures | 41,528,982.67 | |
| The fair value of equity investment in joint ventures with a public offer | ||
| Operating Income | 23,610,012.53 | |
| Financial expenses | -786,426.54 | |
| Income tax expenses | 283.87 | |
| Net Profit | -6,942,034.66 | |
| Net profit from discontinued operations | ||
| Other comprehensive incomes | ||
| Total comprehensive income | -6,942,034.66 | |
| Dividends received from joint |
ventures in the current year
Other notes: None of the ratios of ending balance/amount incurred in the current period in the abovetable have been audited.
(3) Main financial information on important associated enterprises
Unit: CNY
| Ending Balance/Amount Incurred in Current Period | ||||||||||
| First Automobile Finance Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuan New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | |
| Current assets | 60,775,261,687.53 | 1,702,254,232.36 | 269,973,515.28 | 34,757,850.89 | 357,052,308.05 | 435,005,995.30 | 2,019,060,250.13 | 175,926,690.46 | 74,360,794.55 | 1,905,889,144.98 |
| Non-current assets | 113,266,395,863.62 | 876,220,650.46 | 61,635,140.40 | 24,179,782.51 | 49,442,981.99 | 86,241,055.85 | 845,687,497.81 | 183,160,633.97 | 1,980,391.85 | 1,778,261,365.48 |
| Total | 174,041,657,551.15 | 2,578,474,882.82 | 331,608,655.68 | 58,937,633.40 | 406,495,290.04 | 521,247,051.15 | 2,864,747,747.94 | 359,087,324.43 | 76,341,186.40 | 3,684,150,510.46 |
| assets | ||||||||||
| Current liabilities | 152,572,057,589.80 | 409,136,482.45 | 111,751,776.05 | 18,443,724.53 | 205,065,072.99 | 127,443,900.05 | 2,188,704,666.79 | 286,751,551.15 | 2,530,641.78 | 148,517,574.12 |
| Non-current liabilities | 373,433,560.68 | 1,187,649,264.86 | 2,108,533.06 | 905,831,430.48 | 301,718,046.26 | 90,779,279.56 | 123,521,374.14 | |||
| Total liabilities | 152,945,491,150.48 | 1,596,785,747.31 | 111,751,776.05 | 18,443,724.53 | 207,173,606.05 | 1,033,275,330.53 | 2,490,422,713.05 | 377,530,830.71 | 2,530,641.78 | 272,038,948.26 |
| Net Assets | 21,096,166,400.67 | 981,689,135.51 | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -18,443,506.28 | 73,810,544.62 | 3,412,111,562.20 |
| Minority Equity | 1,212,589,189.69 | -1,056,387.18 | 448,669,357.62 | |||||||
| Equity attributable to shareholders of | 19,883,577,210.98 | 981,689,135.51 | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -17,387,119.10 | 73,810,544.62 | 2,963,442,204.58 |
| the parent company | ||||||||||
| Shares of net assets calculated as per the shareholding proportion | 4,342,434,077.83 | 171,795,598.71 | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | -131,488,862.14 | 37,432,503.49 | -6,085,491.68 | 33,214,745.08 | 433,551,594.53 |
| Adjustments | -4,625,319.38 | 131,488,862.14 | -449,647.25 | 6,085,491.68 | 267,105,032.74 | |||||
| --Goodwill | ||||||||||
| --Unrealized profits | -449,647.25 |
| from internal transactions | ||||||||||
| --Others | -4,625,319.38 | 131,488,862.14 | 6,085,491.68 | 267,105,032.74 | ||||||
| Book value of equity investment in associated enterprises | 4,337,808,758.45 | 171,795,598.71 | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | 36,982,856.24 | 33,214,745.08 | 700,656,627.27 | ||
| Fair value of equity investment in |
| associated enterprises with public offer | ||||||||||
| Operating Income | 6,654,359,858.29 | 847,730,093.47 | 628,235,851.66 | 58,341,332.83 | 1,648,271,059.88 | 146,454,823.25 | 3,084,484,599.82 | 419,681,174.18 | 669,737,782.82 | |
| Net Profit | 1,786,293,119.83 | -145,922,318.21 | 7,349,839.74 | -2,726,506.37 | 29,810,742.99 | -237,673,409.93 | 23,691,687.78 | 1,271,971.81 | -6,189,455.38 | 220,843,105.36 |
| Net profit from discontinued operations | ||||||||||
| Other | 830,716.24 | 6,641,842.0 | -90,000.00 |
| comprehensive incomes | 9 | |||||||||
| Total comprehensive income | 1,787,123,836.07 | -139,280,476.12 | 7,349,839.74 | -2,726,506.37 | 29,810,742.99 | -237,673,409.93 | 23,691,687.78 | 1,271,971.81 | -6,189,455.38 | 220,753,105.36 |
| Dividends received from associated enterprises in the current year | 283,265,352.38 | 4,835,877.87 | 1,640,000.00 | 6,892,912.77 |
Other notes: None of the ratios of ending balance/amount incurred in the current period in the above table have been audited.
| Opening Balance/Amount Incurred in Previous Period | ||||||||
| SmartLink | FAW Jiefang | Suzhou Zhito | FAW | Changchun | FAW | Sanguard | First Automobile | |
| Fujie (Tianjin) Technology Industry Co., Ltd. | Technology Co., Ltd. | Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Wabco Automotive Control System Co., Ltd. | Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Automobile Insurance Co., Ltd. | Finance Co., Ltd. | ||
| Current assets | 157,591,221.86 | 931,332,176.60 | 638,977,641.34 | 427,768,781.91 | 19,053,367.45 | 231,520,871.50 | 2,172,822,754.87 | 34,615,907,095.53 |
| Non-current assets | 7,744,508.63 | 293,708,044.88 | 64,737,895.14 | 62,831,909.92 | 27,097,843.55 | 66,900,185.87 | 732,633,048.50 | 107,957,446,335.83 |
| Total assets | 165,335,730.49 | 1,225,040,221.48 | 703,715,536.48 | 490,600,691.83 | 46,151,211.00 | 298,421,057.37 | 2,905,455,803.37 | 142,573,353,431.36 |
| Current liabilities | 164,518,379.90 | 672,380,337.39 | 346,619,144.05 | 286,304,062.71 | 2,930,795.76 | 80,755,484.41 | 510,326,378.57 | 120,256,125,824.02 |
| Non-current liabilities | 181,734,209.97 | 633,398,618.35 | 3,175,522.27 | 1,246,437,069.12 | 1,561,324,948.51 | |||
| Total liabilities | 164,518,379.90 | 854,114,547.36 | 980,017,762.40 | 289,479,584.98 | 2,930,795.76 | 80,755,484.41 | 1,756,763,447.69 | 121,817,450,772.53 |
| Net Assets | 817,350.59 | 370,925,674.12 | -276,302,225.92 | 201,121,106.85 | 43,220,415.24 | 217,665,572.96 | 1,148,692,355.68 | 20,755,902,658.83 |
| Minority equity | 1,182,641,203.70 | |||||||
| Equity attributable to shareholders of the parent company | 817,350.59 | 370,925,674.12 | -276,302,225.92 | 201,121,106.85 | 43,220,415.24 | 217,665,572.96 | 1,148,692,355.68 | 19,573,261,455.13 |
| Shares of net assets | 286,072.71 | 37,092,567.41 | -74,380,559.22 | 43,856,468.58 | 17,288,166.13 | 87,066,229.18 | 201,021,162.24 | 4,274,663,288.97 |
| calculated as per the shareholding proportion | ||||||||
| Adjustments | 74,380,559.22 | -4,625,319.38 | ||||||
| --Goodwill | ||||||||
| --Unrealized profits from internal transactions | ||||||||
| --Others | 74,380,559.22 | -4,625,319.38 | ||||||
| Book value of equity investment in associated enterprises | 286,072.71 | 37,092,567.41 | 43,856,468.58 | 17,288,166.13 | 87,066,229.18 | 201,021,162.24 | 4,270,037,969.59 | |
| Fair value of equity investment in associated enterprises with public offer | ||||||||
| Operating Income | 183,253,178.35 | 1,272,122,747.15 | 110,953,140.73 | 1,393,101,224.13 | 2,799,151.03 | 386,986,775.78 | 705,195,878.73 | 6,570,745,844.89 |
| Net Profit | -80,823,617.88 | 11,260,966.79 | -233,424,185.08 | 32,174,554.00 | -7,532,897.41 | 9,105,377.20 | 34,541,984.81 | 1,806,213,013.58 |
| Net profit from |
| discontinued operations | ||||||||
| Other comprehensive incomes | -3,924,304.00 | -448,924.02 | ||||||
| Total comprehensive income | -80,823,617.88 | 11,260,966.79 | -233,424,185.08 | 32,174,554.00 | -7,532,897.41 | 9,105,377.20 | 30,617,680.81 | 1,805,764,089.56 |
| Dividends received from associated enterprises in the current year | 6,300,012.21 | 8,567,040.00 | 17,920,972.75 | 429,182,504.29 |
(4) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
| Name of Joint Ventures or Associated Enterprises | Unrecognized Losses Accumulated in Prior Periods | Unrecognized Losses in the Current Period (or Net Profit Shared in the Current Period) | Accumulated Unrecognized Losses at the End of the Current Period |
| Suzhou Zhito Technology Co., Ltd. | 89,276,907.14 | 42,211,955.00 | 131,488,862.14 |
| SmartLink | 6,085,491.68 | 6,085,491.68 |
Other description: noneXI. Government subsidies
1. Government subsidies recognized at the receivable amount at the end of the reporting period
□Applicable ?Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected timepoint
□Applicable ?Not applicable
2. Liability items with government subsidies
□Applicable ?Not applicable
3. Government subsidies included in the current profit or loss
?Applicable □Not applicable
Unit: CNY
| Account item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies | 610,869,960.46 | 1,704,587,805.78 |
Other description: noneXII. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The main financial instruments of the Company include monetary capital, notes receivable, accountsreceivable, receivables financing, other receivables, non-current assets due within one year, othercurrent assets, long-term receivables, notes payable, accounts payable, other payables, non-currentliabilities due within one year, and lease liabilities. Details of each financial instrument have beendisclosed in relevant notes. The risks related to these financial instruments and the risk managementpolicies adopted by the Company to reduce these risks are described below. The management of theCompany manages and monitors these risk exposures to ensure that the above risks are controlledwithin a limited range.
(1) Risk management objectives and policies
The Company carries out risk management to achieve an appropriate balance between risks andbenefits, minimize the negative impact of risks on the Company's business performance, andmaximize the interests of shareholders and other equity investors. The Company, based on the riskmanagement objectives, adopts the basic risk management strategy of determining and analyzingvarious risks faced by the Company, establishing an appropriate baseline for risk tolerance andcarrying out risk management, and supervising various risks in a timely and reliable manner tocontrol the risks within a limited range.Main risks caused by financial instruments of the Company include credit risk, liquidity risk andmarket risk (including exchange rate risk and interest rate risk).? Credit riskCredit risk refers to the risk of financial loss to the Company caused by the counterparty's failure toperform its contractual obligations.
The Company manages credit risks by portfolio classification. Credit risk mainly arises from bankdeposits, notes receivable, accounts receivable, other receivables, long-term receivables, etc.The Company's deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks and First Automobile Finance Co., Ltd., and the Company does not expectsignificant credit risks in its bank deposits.The Company makes relevant policies to control the credit risk exposure for notes receivable,accounts receivable, other receivables and long-term receivables. The Company evaluates the creditqualification of customers and sets the credit period based on their financial conditions, creditrecords and other factors such as current market situations. The Company monitors the credit recordsof customers regularly, and take measures such as written reminders, shortening of credit period orcancellation of credit period for customers with poor credit records, so as to ensure that the overallcredit risk is within a controllable range.The debtors of the Company's accounts receivable are customers distributed in different industriesand regions. The Company carries out continuous credit assessment on the financial condition ofaccounts receivable and purchases credit guarantee insurance when appropriate.The maximum credit risk exposure borne by the Company is the book value of each financial asset inthe balance sheet. The Company does not provide any other guarantee that may expose the Companyto credit risk.For the accounts receivable of the Company, the accounts receivable of the top five clients accountfor 62.80% of the Company's total accounts receivable (63.06% in 2022); for other accountsreceivable of the Company, the amounts owed by the five biggest debtors account for 74.79% of thetotal other accounts receivable (72.86% in 2022).
? Liquidity riskLiquidity risk refers to the risk of capital shortage when the Company performs its obligations ofsettlement by delivering cash or other financial assets.The Company maintains and monitors cash and cash equivalents deemed adequate by themanagement during liquidity risk management to meet the Company's operating needs and reduce
the impact of fluctuations in cash flows. The management of the Company monitors the use of bankloans and ensures compliance with the loan agreements. Meanwhile, the Company obtainscommitments from major financial institutions to provide sufficient reserve funds to meet short-termand long-term funding needs.The sources of the Company's working capital include funds generated from operating activities,bank loans and other loans. As of December 31, 2023, the unused bank credit line of the Companywas CNY 17.203 billion (CNY 20.75 billion at the end of the previous year).
? Market riskMarket risk of financial instruments refers to the risk of fluctuation in fair value or future cash flowof financial instruments due to the changes in market price, including interest rate risk, exchange raterisk and other price risks.Interest rate riskThe risk of changes in cash flow of financial instruments caused by changes in interest rates of theCompany is mainly related to bank loans with floating interest rates. It is the policy of the Companyto maintain floating interest rates on these loans.Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in marketinterest rates affect interest income or expenses on variable rate financial instruments.The Company had no interest-bearing debts such as bank loans as of December 31, 2023.Exchange rate riskExchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financialinstruments due to change in foreign exchange rate. Exchange rate risk may come from financialinstruments denominated in a foreign currency other than the recording currency.The foreign exchange risk borne by the Company is mainly related to euros. Main business activitiesof the Company are settled in CNY, except that the subsidiary established in Austria holds assetssettled in EUR. The balance of Company's assets and liabilities were all in CNY as of December 31,
2023, except a small amount of monetary capitals including the balance in EUR. Therefore, theCompany does not believe that the exchange rate risk faced is significant.
(2) Capital management
The Company prepares capital management policy to ensure continuous operation of the Company,thus providing returns to shareholders, benefiting other stakeholders, and maintaining the best capitalstructure to reduce capital costs.In order to maintain or adjust the capital structure, the Company may adjust the financing method,adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new sharesand other equity instruments, or sell assets to reduce debt.The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilitiesdivided by total assets). As at December 31, 2023, the asset-liability ratio of the Company is 62.83%(58.23% at the end of the previous year).
2. Financial assets
(1) Classification of transfer methods
□Applicable ?Not applicable
(2) Financial assets derecognized due to transfer
□Applicable ?Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable ?Not applicable
XIII. Disclosure of Fair Value
1. Basis for determination of market prices for continuous and non-continuous level Imeasurement items at fair valueAccording to the lowest level input that is significant to the fair value measurement as a whole, thefair value level can be divided into:
Level I: Quotations for the same assets or liabilities in active markets (unadjusted).
2. Valuation techniques and qualitative and quantitative information about key parameters ofitems subject to continuous and non-continuous level II fair value measurementLevel II: Observable input values other than market quotations for assets or liabilities in the firstlevel are used directly (i.e. price) or indirectly (i.e. derived from price).
3. Valuation techniques and qualitative and quantitative information about key parameters ofitems subject to continuous and non-continuous level III fair value measurementLevel III: Any input value (non-observable input value) not based on observable market data is usedfor assets or liabilities.The Company's financial assets and financial liabilities measured at amortized cost mainly includemonetary capital, notes receivable, accounts receivable, other receivables, notes payable, accountspayable, other payables, etc.XIV. Related Parties and Related Party Transactions
1. Parent company of the Company
| Name of Parent Company | Registered address | Nature of business | Registered Capital (CNY 10,000) | Shareholding Proportion of the Parent Company in the Company | Proportion of Voting Rights of the Parent Company in the Company |
| FAW | Changchun | Production and sales of automobiles and parts | 7,800,000.00 | 66.00% | 66.00% |
Description of the parent company of the Company: The ultimate controlling party of the Companyis FAW Group.Other description: The registered capital of the parent company has not changed during the reportingperiod.
2. Subsidiaries of the Company
For details of subsidiaries of the Company, please refer to Article 1 in X "Equity in Other Entities" ofSection X - Financial Report.
3. Information on joint ventures and associated enterprises of the CompanyFor details of joint ventures or associated enterprises of the Company, please refer to Article 2 in X"Equity in Other Entities" of Section X - Financial Report.Other joint ventures or associated enterprises that have related party transactions with the Companyin the current period or in the previous period, resulting in balance, are as follows:
| Name of Joint Ventures or Associated Enterprises | Relationship with the Company |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Changchun Automotive Test Center Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| Changchun Wabco Automotive Control System | Associated enterprise of the Company |
| Co., Ltd. | |
| Suzhou Zhito Technology Co., Ltd. | Associated enterprise of the Company |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Associated enterprise of the Company |
| SmartLink | Associated enterprise of the Company |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Associated enterprise of the Company |
| Jiefang Times New Energy Technology Co., Ltd. | Associated enterprise of the Company |
Other description:
4. Information on other related parties
| Names Of Other Related Parties | Relationship between Other Related Parties and the Company |
| FAW Bestune Car Co., Ltd. | The same ultimate controlling party |
| FAW Harbin Light Automobile Co., Ltd. | The same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | The same ultimate controlling party |
| FAW Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Foshan) Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Qingdao) Co., Ltd. | The same ultimate controlling party |
| FAW (Dalian) International Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Foundry Co., Ltd. | The same ultimate controlling party |
| FAW Forging (Jilin) Co., Ltd. | The same ultimate controlling party |
| FAW Mold Manufacturing Co., Ltd. | The same ultimate controlling party |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party |
| Qiming Information Technology Co., Ltd. | The same ultimate controlling party |
| Dalian Qiming Haitong Information Technology Co., Ltd. | The same ultimate controlling party |
| Jilin Qiming Anxin Information Security Technology Co., Ltd. | The same ultimate controlling party |
| FAW Asset Management Co., Ltd. | The same ultimate controlling party |
| Changchun FAW International Tendering Co., Ltd. | The same ultimate controlling party |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | The same ultimate controlling party |
| Changchun Faw Service Trade Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Automobile Trading Service Co., Ltd. | The same ultimate controlling party |
| Wuxi Sawane Spring Co., Ltd. | The same ultimate controlling party |
| FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | The same ultimate controlling party |
| Changchun Automotive Test Center Co., Ltd. | The same ultimate controlling party |
| Hainan Tropical Automobile Test Co., Ltd. | The same ultimate controlling party |
| FAW-Volkswagen Automotive Co., Ltd. | The same ultimate controlling party |
| Changchun FAW Automobile Culture Communication Co., Ltd. | The same ultimate controlling party |
| FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | The same ultimate controlling party |
| Chengdu Qiming Chunrong Information Technology Co., Ltd. | The same ultimate controlling party |
| Changchun Chengxin Second-hand Vehicles Distribution Co., Ltd. | The same ultimate controlling party |
| Cinda FAW Commercial Factoring Co., Ltd. | Other related parties |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Other related parties |
| FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | Other related parties |
| FAW Changchun Ansteel Steel Processing and | Other related parties |
| Distribution Co., Ltd. | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Other related parties |
| Changchun Wabco Automotive Control System Co., Ltd. | Other related parties |
| Suzhou Zhito Technology Co., Ltd. | Other related parties |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Other related parties |
| SmartLink | Other related parties |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Other related parties |
| Jiefang Times New Energy Technology Co., Ltd. | Other related parties |
| Changchun FAW United Casting Company | Other related parties |
| Changchun Yidong Clutch Co., Ltd. | Other related parties |
| Fawer Auto Parts Co., Ltd. | Other related parties |
| China Unicom Intelligent Network Technology Co., Ltd. | Other related parties |
| Changchun FAWSN Group Co., Ltd. | Other related parties |
| FAW Changchun Communication Technology Co., Ltd. | Other related parties |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Other related parties |
| Changchun FAWAY Automobile Components Co., Ltd. | Other related parties |
| FAW Jilin Automobile Co., Ltd. | Other related parties |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Other related parties |
| FAW Jingye Engine Co., Ltd. | Other related parties |
| Wuxi CRRC New Energy Automobile Co., Ltd. | Other related parties |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Other related parties |
| FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | Other related parties |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Other related parties |
| FAW Changchun Industrial Sodis Management Service Co., Ltd. | Other related parties |
| Shandong Pengxiang Automobile Co., Ltd. | Other related parties |
| FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | Other related parties |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Qingdao) Co., Ltd. | Other related parties |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Other related parties |
| Changchun FAW Pratt Technology Co., Ltd. | Other related parties |
| Harbin FAW Transmission Co., Ltd. | Other related parties |
| Jilin CNPC Hongrun Energy Development Co., Ltd. | Other related parties |
| Jilin Checheng Garden Hotel Co., Ltd. | Other related parties |
Other description:
5. Related transactions
(1) Related transactions of purchasing or selling goods and providing or receiving laborservicesStatement of goods purchase/reception of labor services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Approved Transaction Amount | Is the Transaction Amount Exceeded | Amount Incurred in the Previous Period |
| Fawer Auto Parts Co., Ltd. | Goods purchase and reception of labor services | 1,659,607,907.68 | 1,684,360,000.00 | No | 1,040,303,880.14 |
| FAW Foundry Co., Ltd. | Goods purchase and reception of labor services | 719,806,260.27 | 847,650,000.00 | No | 520,403,729.13 |
| Shandong Pengxiang Automobile Co., Ltd. | Goods purchase and reception of labor services | 639,215,809.17 | 664,900,000.00 | No | 333,494,286.96 |
| Changchun FAWSN Group Co., Ltd. | Goods purchase and reception of labor services | 477,587,989.87 | 678,380,000.00 | No | 285,115,158.83 |
| Changchun FAWAY Automobile Components Co., Ltd. | Goods purchase and reception of labor services | 468,240,684.46 | 850,690,000.00 | No | 320,827,961.46 |
| FAW Forging (Jilin) Co., Ltd. | Goods purchase and reception of labor services | 457,919,812.83 | 509,050,000.00 | No | 296,850,949.41 |
| FAW Logistics Co., Ltd. | Goods purchase and reception of labor services | 382,993,131.18 | 400,000,000.00 | No | 242,651,156.76 |
| FAW Changchun Ansteel Steel Processing and | Goods purchase and reception | 377,742,520.02 | 317,090,000.00 | Yes | 191,014,909.94 |
| Distribution Co., Ltd. | of labor services | ||||
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Goods purchase and reception of labor services | 369,253,850.87 | 356,370,000.00 | Yes | 118,225,857.01 |
| FAW | Goods purchase and reception of labor services | 334,754,422.65 | 427,900,000.00 | No | 248,344,825.51 |
| FAW Logistics (Qingdao) Co., Ltd. | Goods purchase and reception of labor services | 312,669,087.26 | 426,000,000.00 | No | 247,090,559.60 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Goods purchase and reception of labor services | 229,686,526.22 | 150,000,000.00 | Yes | 12,230,604.49 |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Goods purchase and reception of labor services | 204,289,200.11 | 348,760,000.00 | No | 280,744,044.56 |
| SmartLink | Goods purchase and reception of labor services | 201,735,640.71 | 141,240,000.00 | Yes | 113,917,493.08 |
| Changchun Yidong Clutch Co., Ltd. | Goods purchase and reception of labor services | 200,320,876.60 | 193,030,000.00 | Yes | 165,424,937.00 |
| Qiming Information | Goods purchase | 157,507,467.25 | 143,800,000.00 | Yes | 150,551,880.46 |
| Technology Co., Ltd. | and reception of labor services | ||||
| Changchun Automotive Test Center Co., Ltd. | Goods purchase and reception of labor services | 120,524,077.09 | 134,240,000.00 | No | 68,056,015.91 |
| FAW Harbin Light Automobile Co., Ltd. | Goods purchase and reception of labor services | 109,010,564.50 | 120,000,000.00 | No | 30,836,252.96 |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | Goods purchase and reception of labor services | 75,055,638.23 | 80,000,000.00 | No | 57,890,606.84 |
| Changchun Wabco Automotive Control System Co., Ltd. | Goods purchase and reception of labor services | 50,209,527.83 | 70,000,000.00 | No | 2,474,003.64 |
| FAW Changchun Communication Technology Co., Ltd. | Goods purchase and reception of labor services | 36,244,311.07 | 40,000,000.00 | No | 10,715,872.47 |
| Sanguard Automobile Insurance Co., Ltd. | Goods purchase and reception of labor services | 23,753,449.15 | 30,000,000.00 | No | 16,947,602.02 |
| FAW (Dalian) International Logistics Co., Ltd. | Goods purchase and reception of labor services | 22,123,885.88 | 30,000,000.00 | No | 20,212,557.25 |
| China FAW Group Import & Export Co., Ltd. | Goods purchase and reception | 25,285,761.48 | 156,060,000.00 | No | 175,338,956.45 |
| of labor services | |||||
| FAW Jilin Automobile Co., Ltd. | Goods purchase and reception of labor services | 17,773,899.93 | 195,530,000.00 | No | 12,574,740.22 |
| FAW Mold Manufacturing Co., Ltd. | Goods purchase and reception of labor services | 14,470,053.09 | 17,000,000.00 | No | 56,026,450.00 |
| FAW Group | Goods purchase and reception of labor services | 13,627,907.80 | 20,000,000.00 | No | 1,014,319.61 |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Goods purchase and reception of labor services | 6,269,917.66 | 8,000,000.00 | No | 8,500,177.30 |
| Wuxi Sawane Spring Co., Ltd. | Goods purchase and reception of labor services | 5,795,996.05 | 7,000,000.00 | No | 3,885,303.33 |
| FAW Changchun Automobile Trading Service Co., Ltd. | Goods purchase and reception of labor services | 9,359,470.16 | 11,000,000.00 | No | 4,426,582.97 |
| Hainan Tropical Automobile Test Co., Ltd. | Goods purchase and reception of labor services | 4,471,020.41 | 7,000,000.00 | No | 9,359,403.67 |
| FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | Goods purchase and reception of labor services | 3,333,481.77 | 5,000,000.00 | No | 6,792,968.69 |
| FAW Changchun Industrial Sodis Management Service Co., Ltd. | Goods purchase and reception of labor services | 2,981,286.13 | 5,000,000.00 | No | 6,643,236.02 |
| Wuxi CRRC New Energy Automobile Co., Ltd. | Goods purchase and reception of labor services | 2,951,329.20 | 5,000,000.00 | No | 3,652,485.85 |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Goods purchase and reception of labor services | 2,480,191.44 | 5,000,000.00 | No | 4,221,956.56 |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Goods purchase and reception of labor services | 1,901,350.79 | 3,000,000.00 | No | 504,696.88 |
| Suzhou Zhito Technology Co., Ltd. | Goods purchase and reception of labor services | 1,769,496.50 | 2,000,000.00 | No | 1,488,321.73 |
| Changchun Faw Service Trade Co., Ltd. | Goods purchase and reception of labor services | 1,646,126.01 | 2,000,000.00 | No | 5,847,490.52 |
| FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | Goods purchase and reception of labor services | 1,575,945.99 | 2,000,000.00 | No | 3,997,546.96 |
| Changchun FAW United Casting Company | Goods purchase and reception | 1,561,241.13 | 2,000,000.00 | No | 2,061,592.32 |
| of labor services | |||||
| FAW Asset Management Co., Ltd. | Goods purchase and reception of labor services | 1,350,856.25 | 2,000,000.00 | No | 919,804.06 |
| Dalian Qiming Haitong Information Technology Co., Ltd. | Goods purchase and reception of labor services | 679,245.27 | 1,000,000.00 | No | 986,233.96 |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Goods purchase and reception of labor services | 530,977.43 | 1,000,000.00 | No | 1,407,288.17 |
| Changchun FAW International Tendering Co., Ltd. | Goods purchase and reception of labor services | 352,288.66 | 500,000.00 | No | 28,766.98 |
| Jilin Qiming Anxin Information Security Technology Co., Ltd. | Goods purchase and reception of labor services | 208,000.00 | 500,000.00 | No | |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | Goods purchase and reception of labor services | 157,699.08 | 500,000.00 | No | |
| China Unicom Intelligent Network Technology Co., Ltd. | Goods purchase and reception of labor services | 65,672.64 | 200,000.00 | No | 95,449.06 |
| FAW Logistics (Foshan) Co., Ltd. | Goods purchase and reception of labor services | 4,050.00 | 200,000.00 | No |
| Grammer Vehicle Parts (Qingdao) Co., Ltd. | Goods purchase and reception of labor services | No | 53,513,930.54 | ||
| FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | Goods purchase and reception of labor services | No | 552,191.07 | ||
| Chengdu Qiming Chunrong Information Technology Co., Ltd. | Goods purchase and reception of labor services | No | 264,150.96 | ||
| Changchun FAW Automobile Culture Communication Co., Ltd. | Goods purchase and reception of labor services | 82,355.84 | 200,000.00 | No | 145,434.85 |
| Jilin CNPC Hongrun Energy Development Co., Ltd. | Goods purchase and reception of labor services | No | 58,203.77 | ||
| Jilin Checheng Garden Hotel Co., Ltd. | Goods purchase and reception of labor services | No | 15,300.00 |
Statement of goods sales/rendering of services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | Sales of goods | 11,568,030,597.11 | 5,921,179,357.98 |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Sales of goods | 2,446,872,744.97 | 842,004,381.84 |
| Jiefang Times New Energy Technology Co., Ltd. | Sales of goods | 298,543,205.58 | |
| FAW Harbin Light Automobile Co., Ltd. | Sales of goods | 230,480,872.70 | 8,285,242.45 |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Sales of goods | 205,149,077.38 | 139,052,616.83 |
| SmartLink | Sales of goods | 107,773,406.53 | |
| FAW | Sales of goods | 17,191,730.77 | 223,777,186.60 |
| FAW Changchun Automobile Trading Service Co., Ltd. | Sales of goods | 15,048,966.05 | 12,035,398.26 |
| FAW Asset Management Co., Ltd. | Sales of goods | 8,792,475.43 | 11,266,794.44 |
| Suzhou Zhito Technology Co., Ltd. | Sales of goods | 8,676,773.64 | 47,059,399.63 |
| Changchun Faw Service Trade Co., Ltd. | Sales of goods | 17,192,553.61 | 190,597,521.42 |
| Changchun Yidong Clutch Co., Ltd. | Sales of goods | 2,620,014.69 | 315,024.68 |
| Qiming Information Technology Co., Ltd. | Sales of goods | 1,730,374.32 | |
| Shandong Pengxiang Automobile Co., Ltd. | Sales of goods | 1,310,470.28 | 1,179,878.53 |
| Changchun Automotive Test Center Co., Ltd. | Sales of goods | 2,443,809.58 | 5,364,922.47 |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Sales of goods | 1,056,155.96 | |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Sales of goods | 883,287.65 | 817,250.62 |
| Fawer Auto Parts Co., Ltd. | Sales of goods | 719,960.37 | 925,014.61 |
| FAW Logistics Co., Ltd. | Sales of goods | 218,688.15 | 492,920.35 |
| Cinda FAW Commercial Factoring Co., Ltd. | Sales of goods | 189,390.03 | 155,115.86 |
| FAW Logistics (Qingdao) Co., Ltd. | Sales of goods | 141,854.72 | 10,787,369.81 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Sales of goods | 106,470.00 | |
| FAW Changchun Communication Technology Co., Ltd. | Sales of goods | 93,577.97 | 15,596.36 |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Sales of goods | 80,254.07 | |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | Sales of goods | 63,448.12 | 868,938.00 |
| FAW Forging (Jilin) Co., Ltd. | Sales of goods | 57,933.33 | |
| Wuxi Sawane Spring Co., Ltd. | Sales of goods | 14,150.94 | 10,377.36 |
| FAW Foundry Co., Ltd. | Sales of goods | 11,614.68 | 4,843,899.93 |
| FAW Bestune Car Co., Ltd. | Sales of goods | 10,211.32 | 176,415.09 |
| Changchun FAWAY Automobile Components Co., Ltd. | Sales of goods | 7,673.40 | |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Sales of goods | 7,562.98 | 39,774.12 |
| Changchun FAWSN Group Co., Ltd. | Sales of goods | 6,086.49 | |
| FAW Jilin Automobile Co., Ltd. | Sales of goods | 1,938.32 | 132,278.36 |
| FAW-Volkswagen Automotive Co., Ltd. | Sales of goods | 104,603.78 | |
| Changchun Chengxin Second-hand Vehicles Distribution Co., Ltd. | Sales of goods | 52,256.64 | |
| FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | Sales of goods | 19,099,950.39 |
Description of related transactions of purchasing or selling goods and providing or receiving laborservices:
Among related parties from which the Company purchased goods and received services in 2023, theamounts actually incurred from the Changchun Baoyou Jiefang Steel Processing and DistributionCo., Ltd., Changchun Yidong Clutch Co., Ltd., FAW Changchun Ansteel Steel Processing andDistribution Co., Ltd., Grammer Vehicle Parts (Harbin) Co., Ltd., and SmartLink exceed theexpected amounts, but the excess portions do not meet the disclosure standards; the amount incurredby purchasing goods and receiving services from Qiming Information Technology Co., Ltd. exceedsthe expected amount, but the actual amount incurred is not beyond the approved total trading limit asthis internal institution of FAW is managed as a related party on a unified basis.
(2) Related lease
The Company, as the lessor:
Unit: CNY
| Name of Lessee | Type of Leased Assets | Lease Income Recognized in the Current Period | Lease Income Recognized in the Previous Period |
| Changchun Automotive Test Center Co., Ltd. | Houses, buildings and land | 1,288,392.96 | 5,356,513.01 |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution | Houses and Buildings | 1,056,155.96 | 1,056,155.96 |
| Co., Ltd. | |||
| FAW | Houses and Buildings | 1,017,306.92 | 3,437,949.10 |
| Shandong Pengxiang Automobile Co., Ltd. | Houses and Buildings | 767,705.50 | 754,700.92 |
| Fawer Auto Parts Co., Ltd. | Houses and Buildings | 395,405.52 | 395,405.52 |
| FAW Changchun Communication Technology Co., Ltd. | Houses, buildings and land | 93,577.97 | 99,999.97 |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Houses and Buildings | 75,391.68 | |
| FAW Group | Houses and Buildings | 173,884.11 |
The Company, as the lessee:
Unit: CNY
| Name of lessor | Type of Leased Assets | Rental expenses for simplified short-term leases or low-value asset leases | Variable lease payments not included in the measurement of lease liabilities | Rent Paid | Interest Expense on Lease Liabilities Incurred | Increased right-of-use assets | |||||
| Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| FAW | Houses and Buildings | 11,954,237.52 | 11,426,735.79 | 623,377.44 | 1,319,118.67 | 629,506.67 | |||||
| Changchun Automotive Test Center Co., Ltd. | Houses and Buildings | 2,335,846.88 | 93,731.36 | ||||||||
| FAW Changchun Automobile Trading Service Co., Ltd. | Vehicle | 4,509,955.99 | |||||||||
| Hongqi Intelligent Mobility | Vehicle | 1,122.88 | |||||||||
| Technology (Beijing) Co., Ltd. | |||||||||||
| FAW Group | Land | 3,913,647.70 | 3,913,647.70 | 302,739.30 | 482,040.75 | ||||||
| FAW Asset Management Co., Ltd. | Houses and Buildings | 157,096.00 |
Description of related leases
(3) Remuneration of key management personnel
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Remuneration of key management personnel | 16,025,900.00 | 23,496,500.00 |
(4) Other related transactions
Interest income and interest expense
| Related Parties | Content of Related Transaction | Amount incurred in the current period (CNY) | Amount incurred in the previous period (CNY) |
| First Automobile Finance Co., Ltd. | Interest income | 96,844,475.31 | 305,093,442.72 |
Deposits and interests in finance companies
| Project name | Related Parties | Transaction content | Ending balance (CNY) | Ending balance of the previous year (CNY) |
| Monetary capital | First Automobile Finance Co., Ltd. | Deposits and interests of finance company included in bank deposits | 14,046,575,246.78 | 13,832,934,255.95 |
Discount business
| Related Parties | Correlation | Amount incurred in the current period (CNY) | Amount incurred in the previous period (CNY) |
| First Automobile Finance Co., | Discount expense | 494,444.40 |
Ltd.
Equity investment
| Item | Amount incurred in the current period (CNY) | Amount Incurred in the Previous Period |
| Changchun Automotive Test Center Co., Ltd. | 670,872,897.94 |
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
| Project Name | Related Parties | Ending balance | Opening balance | ||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | ||
| Accounts receivable | China FAW Group Import & Export Co., Ltd. | 565,045,453.53 | 1,438,890.29 | 320,294,820.43 | 410,938.55 |
| Accounts receivable | FAW Harbin Light Automobile Co., Ltd. | 260,081,914.30 | 261,998.72 | 3,787.60 | 15.91 |
| Accounts receivable | Jiefang Times New Energy Technology Co., Ltd. | 193,088,998.31 | 743,368.60 | ||
| Accounts receivable | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 54,814,238.73 | 11,781,810.57 | 61,683,343.69 | 7,544,307.53 |
| Accounts receivable | SmartLink | 5,106,986.20 | 5,106.99 | ||
| Accounts receivable | FAW | 2,150,000.00 | 10,320.00 | 880,188.52 | 3,696.78 |
| Accounts receivable | FAW Asset Management Co., Ltd. | 454,999.94 | 454,999.94 | 469,957.39 | 455,062.76 |
| Accounts receivable | United Fuel Cell System R&D (Beijing) Co., Ltd. | 210,717.10 | 1,011.44 | 200,233.26 | 840.98 |
| Accounts receivable | Qiming Information | 131,897.06 | 633.11 | ||
| Technology Co., Ltd. | |||||
| Accounts receivable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 116,052.30 | 557.05 | ||
| Accounts receivable | FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 |
| Accounts receivable | FAW Changchun Comprehensive Utilization Co., Ltd. | 24,427.35 | 117.25 | ||
| Accounts receivable | Changchun Yidong Clutch Co., Ltd. | 15,885.93 | 76.25 | ||
| Accounts receivable | Shandong Pengxiang Automobile Co., Ltd. | 13,086.18 | 62.81 | ||
| Accounts receivable | Changchun FAWAY Automobile Components Co., Ltd. | 8,670.94 | 41.62 | ||
| Accounts receivable | FAW Logistics (Qingdao) Co., Ltd. | 3,233,572.00 | 13,581.00 | ||
| Accounts receivable | Changchun Automotive Test Center Co., Ltd. | 2,919,274.52 | 12,260.95 | ||
| Accounts receivable | FAW-Volkswagen Automotive Co., Ltd. | 110,880.00 | 465.70 | ||
| Accounts receivable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 105,367.99 | 11,453.28 | ||
| Prepayments | China FAW Group Import & Export Co., Ltd. | 291,602,226.68 | 287,527,616.69 | ||
| Prepayments | Changchun Automotive Test Center Co., Ltd. | 26,426,263.51 | |||
| Prepayments | FAW Mold Manufacturing Co., Ltd. | 12,268,345.36 | 13,751,495.26 | ||
| Prepayments | FAW Jilin Automobile Co., Ltd. | 12,256,098.84 | 646,730.48 |
| Prepayments | SmartLink | 5,473,400.00 | 2,283,555.30 | ||
| Prepayments | Qiming Information Technology Co., Ltd. | 2,083,957.10 | 6,853,106.60 | ||
| Prepayments | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 600,000.00 | 12,786,400.00 | ||
| Prepayments | FAW Foundry Co., Ltd. | 20,532.03 | |||
| Prepayments | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 20,604,798.36 | |||
| Prepayments | FAW | 9,862,836.98 | |||
| Prepayments | FAW Changchun Communication Technology Co., Ltd. | 639,459.98 | |||
| Prepayments | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 537,315.00 | |||
| Other receivables | SmartLink | 7,597,737.61 | 231,731.00 | ||
| Other receivables | FAW Asset Management Co., Ltd. | 3,124,921.61 | 93,785.11 | 135,550.51 | 787.06 |
| Other receivables | FAW Logistics Co., Ltd. | 55,370.79 | 1,688.81 | 146,367.32 | 1,346.58 |
| Other receivables | FAW Forging (Jilin) Co., Ltd. | 23,548.67 | 718.23 | 55,563.56 | 511.19 |
| Other receivables | FAW Mold Manufacturing Co., Ltd. | 19,983.53 | 609.50 | 49,165.85 | 452.33 |
| Other receivables | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 1,219.65 | 37.20 | 5,086.11 | 46.79 |
| Other receivables | FAW | 8,453,593.02 | 8,229,193.92 |
| Other receivables | FAW Group | 189,533.68 | 1,743.71 | ||
| Other receivables | China FAW Group Import & Export Co., Ltd. | 50,623.62 | 172.12 | ||
| Other receivables | Changchun FAWAY Automobile Components Co., Ltd. | 16,388.62 | 68.83 | ||
| Other receivables | Changchun Automotive Test Center Co., Ltd. | 231.00 | 0.23 |
(2) Payables
Unit: CNY
| Project name | Related Parties | Ending book balance | Beginning Book Balance |
| Accounts payable | Fawer Auto Parts Co., Ltd. | 321,637,528.00 | 144,154,473.17 |
| Accounts payable | Changchun FAWAY Automobile Components Co., Ltd. | 142,502,192.54 | 79,486,373.63 |
| Accounts payable | FAW Logistics (Qingdao) Co., Ltd. | 104,662,732.36 | 91,101,620.88 |
| Accounts payable | Shandong Pengxiang Automobile Co., Ltd. | 95,007,782.33 | 34,193,762.56 |
| Accounts payable | FAW Logistics Co., Ltd. | 80,290,107.51 | 32,265,403.36 |
| Accounts payable | FAW Forging (Jilin) Co., Ltd. | 76,891,932.23 | 18,898,210.68 |
| Accounts payable | FAW Harbin Light Automobile Co., Ltd. | 65,513,752.89 | 16,170,855.51 |
| Accounts payable | Changchun Yidong Clutch Co., Ltd. | 52,247,878.28 | 21,092,492.24 |
| Accounts payable | FAW Foundry Co., Ltd. | 44,286,964.68 | 51,984,437.61 |
| Accounts payable | Changchun FAWSN Group Co., Ltd. | 33,612,267.32 | 14,386,006.95 |
| Accounts payable | Qiming Information Technology Co., Ltd. | 32,857,375.09 | 20,174,791.43 |
| Accounts payable | SmartLink | 18,624,052.12 | 14,489,906.15 |
| Accounts payable | FAW | 29,476,172.06 | 34,214,102.32 |
| Accounts payable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 10,120,909.07 | 701,342.31 |
| Accounts | FAW Logistics (Changchun Lushun) | 8,629,745.71 | 11,426,277.60 |
| payable | Storage and Transportation Co., Ltd. | ||
| Accounts payable | FAW (Dalian) International Logistics Co., Ltd. | 6,942,812.41 | 3,851,730.60 |
| Accounts payable | Changchun Automotive Test Center Co., Ltd. | 6,851,687.59 | 316,400.00 |
| Accounts payable | Changchun Wabco Automotive Control System Co., Ltd. | 5,414,883.93 | 272,712.00 |
| Accounts payable | Sanguard Automobile Insurance Co., Ltd. | 2,822,789.08 | 1,074,463.94 |
| Accounts payable | China FAW Group Import & Export Co., Ltd. | 2,678,724.16 | |
| Accounts payable | FAW Changchun Automobile Trading Service Co., Ltd. | 2,609,565.02 | 1,479,550.69 |
| Accounts payable | FAW Changchun Comprehensive Utilization Co., Ltd. | 2,361,868.60 | 2,905,411.90 |
| Accounts payable | FAW Group | 2,212,607.00 | 14,133.00 |
| Accounts payable | Hainan Tropical Automobile Test Co., Ltd. | 1,625,476.03 | 31,977.00 |
| Accounts payable | FAW Mold Manufacturing Co., Ltd. | 1,133,423.20 | 1,121,206.34 |
| Accounts payable | Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | 451,864.50 | 630,751.44 |
| Accounts payable | Wuxi Sawane Spring Co., Ltd. | 377,207.77 | 233,647.89 |
| Accounts payable | Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | 326,523.80 | 121,039.88 |
| Accounts payable | Dalian Qiming Haitong Information Technology Co., Ltd. | 240,000.00 | 248,852.00 |
| Accounts payable | FAW Asset Management Co., Ltd. | 226,180.17 | |
| Accounts payable | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 178,081.90 | 8,891.97 |
| Accounts payable | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 117,304.27 | 4,937,649.97 |
| Accounts payable | FAW Changchun Communication Technology Co., Ltd. | 61,517.85 | 233,570.95 |
| Accounts payable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 51,837.99 | 715,521.31 |
| Accounts payable | Changchun FAW United Casting Company | 39,972.52 | 521,726.80 |
| Accounts payable | China Unicom Intelligent Network Technology Co., Ltd. | 30,249.00 | 54,880.00 |
| Accounts payable | Changchun FAW International Tendering Co., Ltd. | 26,778.00 | |
| Accounts payable | FAW Zhixing Technology (Nanjing) Co., Ltd. | 16,200.00 | |
| Accounts | FAW Changchun Industrial Shuixing | 15,197.33 | 184,682.20 |
| payable | Rubber and Plastic Products Co., Ltd. | ||
| Accounts payable | Suzhou Zhito Technology Co., Ltd. | 10,237.07 | 1,011,118.95 |
| Accounts payable | FAW Logistics (Foshan) Co., Ltd. | 4,293.00 | |
| Accounts payable | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 15,646,652.24 | |
| Accounts payable | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 4,551,929.99 | |
| Accounts payable | Grammer Vehicle Parts (Qingdao) Co., Ltd. | 3,402,836.35 | |
| Accounts payable | FAW Changchun Industrial Sodis Management Service Co., Ltd. | 2,149,473.72 | |
| Accounts payable | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 1,751,774.48 | |
| Accounts payable | Changchun Faw Service Trade Co., Ltd. | 849,829.54 | |
| Accounts payable | Wuxi CRRC New Energy Automobile Co., Ltd. | 757,023.75 | |
| Accounts payable | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 111,795.54 | |
| Accounts payable | Changchun FAW Automobile Culture Communication Co., Ltd. | 82,778.99 | |
| Accounts payable | Changchun FAW Pratt Technology Co., Ltd. | 17,236.96 | |
| Accounts payable | FAW Bestune Car Co., Ltd. | 5,100.00 | |
| Accounts payable | FAW Jilin Automobile Co., Ltd. | 13.33 | |
| Accounts received in advance | FAW Changchun Comprehensive Utilization Co., Ltd. | 38,791.52 | |
| Accounts received in advance | Shandong Pengxiang Automobile Co., Ltd. | 210,381.00 | |
| Accounts received in advance | Fawer Auto Parts Co., Ltd. | 107,748.00 | 107,748.00 |
| Accounts received in advance | Changchun Automotive Test Center Co., Ltd. | 1,530,824.16 | |
| Accounts received in advance | FAW Changchun Communication Technology Co., Ltd. | 17,431.19 | |
| Contract liabilities | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 309,314,130.28 | 68,040,782.38 |
| Contract liabilities | Changchun Faw Service Trade Co., Ltd. | 28,117,018.95 | 15,663,935.13 |
| Contract | FAW Changchun Comprehensive | 2,463,687.98 | 547,549.31 |
| liabilities | Utilization Co., Ltd. | ||
| Contract liabilities | China FAW Group Import & Export Co., Ltd. | 4,057,439.29 | 2,676,797.47 |
| Contract liabilities | Shandong Pengxiang Automobile Co., Ltd. | 492,721.62 | 436,111.40 |
| Contract liabilities | Suzhou Zhito Technology Co., Ltd. | 334,400.00 | 1,181,411.98 |
| Contract liabilities | FAW Changchun Automobile Trading Service Co., Ltd. | 26,830.00 | |
| Contract liabilities | FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | 8,060.00 | 7,132.74 |
| Contract liabilities | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 36,704.04 | |
| Contract liabilities | FAW Asset Management Co., Ltd. | 20,698.19 | |
| Contract liabilities | Harbin FAW Transmission Co., Ltd. | 119.16 | |
| Contract liabilities | FAW Logistics Co., Ltd. | 9.88 | |
| Other payables | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 134,832,393.40 | 831,560.00 |
| Other payables | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 94,265,971.56 | 170,438,828.71 |
| Other payables | FAW | 95,802,940.17 | 2,792,527.37 |
| Other payables | Changchun Automotive Test Center Co., Ltd. | 26,847,716.00 | 42,616.35 |
| Other payables | Qiming Information Technology Co., Ltd. | 21,046,660.22 | 31,377,721.05 |
| Other payables | FAW Mold Manufacturing Co., Ltd. | 17,227,387.87 | 32,192,507.66 |
| Other payables | Fawer Auto Parts Co., Ltd. | 10,095,378.21 | 429,040.30 |
| Other payables | FAW Harbin Light Automobile Co., Ltd. | 8,241,822.24 | |
| Other payables | China FAW Group Import & Export Co., Ltd. | 3,485,617.92 | 2,264,521.88 |
| Other payables | FAW Changchun Communication Technology Co., Ltd. | 3,062,361.99 | 3,483,543.17 |
| Other payables | SmartLink | 1,876,477.00 | 182,000.00 |
| Other payables | Shandong Pengxiang Automobile Co., Ltd. | 1,040,000.00 | 1,040,000.00 |
| Other payables | Changchun Faw Service Trade Co., Ltd. | 320,000.00 | 629,405.00 |
| Other payables | Sanguard Automobile Insurance Co., Ltd. | 77,800.00 | |
| Other payables | Suzhou Zhito Technology Co., Ltd. | 10,000.00 | 10,000.00 |
| Other payables | FAW Group | 371,435.96 | |
| Other payables | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 20,050,000.00 | |
| Other payables | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 4,361,315.10 | |
| Other payables | Hainan Tropical Automobile Test Co., Ltd. | 97,185.18 | |
| Other payables | FAW Asset Management Co., Ltd. | 3,925.62 | 3,925.62 |
XV. Share-based Payment
1. General conditions of share-based payments
?Applicable □Not applicable
Unit: CNY
| Grantee category | Shares granted in the current period | Shares exercised in the current period | Shares unlocked in the current period | Shares invalidated in the current period | |||||
| Qty. | Amount | Qty. | Amount | Qty. | Amount | Qty. | Amount | ||
| Manager | 13,107,301.00 | 50,594,181.86 | 15,479,987.00 | 97,950,033.45 | |||||
| Total | 13,107,301.00 | 50,594,181.86 | 15,479,987.00 | 97,950,033.45 | |||||
Stock options or other equity instruments outstanding at the end of the current period
□Applicable ?Not applicable
Other description:
2. Equity-settled share-based payment
?Applicable □Not applicable
Unit: CNY
| Measures for | Restricted shares are determined according to the closing price on the |
| determining the fair value of equity instruments on the grant date | grant date, and stock options are determined according to the B-S option pricing model. |
| Important parameters of fair value of equity instruments on the grant date | Quoted prices in active markets |
| Basis for determining the number of exercisable equity instruments | The Company determines the number according to the Proposal on the Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Summary, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD., the Proposal on the Regulations for Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the Company's Restricted Share Incentive Plan. |
| Reasons for significant differences between current estimates and previous estimates | N/A |
| Aggregate amount of equity-settled share-based payment charged to the capital reserve | 53,116,758.44 |
| Total expenses recognized by equity-settled share-based payment in the current period | -24,775,825.33 |
Other description:
3. Cash-settled share-based payment
□Applicable ?Not applicable
4. Share-based payment expenses in the current period
?Applicable □Not applicable
Unit: CNY
| Grantee category | Equity-settled share-based payment expenses | Cash-settled share-based payment expenses |
| Manager | -24,775,825.33 | |
| Total | -24,775,825.33 |
Other description:
5. Modification and termination of share-based payment: None
XVI. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet dateThe Company has no other commitments that should be disclosed as of December 31, 2023.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject Amount | Case Progress |
| Bai Haitao | FAW Jiefang New Energy Automotive Sales Co., Ltd. | Product liability cases | Dalateqi People's Court of Inner Mongolia | 19,899,350.00 | First instance of retrial |
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject Amount | Case Progress |
| Jilin Branch of Sanguard Automobile Insurance Co., Ltd. | Chengdu Baojinyang Vehicle Parts Co., Ltd., third party: FAW Jiefang New Energy Automotive Sales Co., Ltd. | Other contract dispute cases | Chengdu Intermediate People's Court | 18,543,550.66 | Second instance |
| Zheng Siyou, Wang Yanqin | Jiefang Limited, Jilin Huaang Construction Engineering Co., Ltd., and Li Jie | Construction case | Changchun Intermediate People's Court | 1,494,402.70 | Second instance |
| Zhang Fei and Bi Shu | Kunshan Haohai Automobile Sales Service Co., Ltd. and China FAW Group Corporation | Product quality disputes | Xianning District People's Court in Xianning, Hubei Province | 724,948.00 | First instance |
| Handan Yicheng Automobile Trade Co., Ltd. | Handan Huacheng Automobile Trade Co., Ltd. and China FAW Group Corporation | Product liability cases | Fuxing District People's Court of Handan | 390,192.70 | First instance |
| Wang Gensheng | Lianyungang Suxin Automobile Sales Service Co., Ltd. and Jiefang Limited | Product liability cases | Haizhou District People's Court of Lianyungang | 150,000.00 | First instance |
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject Amount | Case Progress |
| Cao Haipeng | FAW Jiefang (Qingdao) Automotive Co., Ltd. | Labor dispute | Jimo District People's Court | 110,684.20 | First instance |
As of December 31, 2023, the Company has no contingencies other than those mentioned above thatshould be disclosed.
(2) Explanation is also required when the Company has no important contingencies to bedisclosedThe Company has no important contingencies to be disclosed.
(3) Other information required by the industry information disclosure guidelinesThe Company shall meet the disclosure requirements for the automobile manufacturing industryspecified in the “No. 3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision ofListed Companies - Industry Information Disclosure."The sales amount of mortgage sales, financial leases and other modes accounts for more than 10% ofthe operating income.
□Applicable ?Not applicable
The Company's guarantee to dealer
□Applicable ?Not applicable
XVII. Events after the Balance Sheet Date
1. Profit distribution
| Dividends to be distributed per 10 shares (CNY) | 1.50 |
| Dividends per 10 | 1.50 |
| shares declared upon deliberation and approval (CNY) | |
| Profit distribution scheme | The cash dividends of CNY 1.50 (tax inclusive) will be paid for every 10 shares to all shareholders based on the 4,636,485,668 shares, the cash dividends to be distributed will reach CNY 695,472,850.20 (tax inclusive), and the remaining undistributed profits will be carried forward to the next accounting year. The Company does not convert its capital reserves into share capital. For any change to the total share capital of the Company due to the equity incentive plan before the implementation of the distribution plan, the cash dividend of CNY 1.50 (tax inclusive) will be distributed to all shareholders per 10 shares based on the total share capital registered on the date of record when the profit distribution plan is implemented in the future, and the specific amount will be subject to the actual distribution. This distribution plan is subject to the review and approval of the 2023 annual shareholders' meeting before implementation. |
2. Notes on other events after the balance sheet date
The Company had no events after the balance sheet date to be disclosed as of March 28, 2024.XVIII. Other Significant Matters
1. Annuity plan
The Company decided to participate in the enterprise annuity plan implemented by FAW Groupfrom January 1, 2010, and 5 other companies implemented self-defined enterprise annuity plansaccording to the Labor Law of the People's Republic of China, the Trust Law of the People'sRepublic of China, the Trial Measures for Enterprise Annuity (Order No. 20 of the Ministry of Laborand Social Security) and other laws and regulations, and in combination with actual situation of theCompany.Main contents of annuity plan are as follows:
(1) "Enterprise annuity" mentioned in this plan refers to the enterprise supplementary endowmentinsurance system voluntarily established by the enterprise and its employees according to nationalpolicies and regulations on the basis of purchasing the basic endowment insurance and fulfilling the
payment obligation according to law, and is an integral part of the enterprise employee compensationand welfare system.
(2) Organization, management and supervision: Enterprise representatives and employeerepresentatives establish the FAW Enterprise Annuity Council (hereinafter referred to as the AnnuityCouncil) through collective negotiation. The Annuity Council is composed of enterprise andemployee representatives, of which not less than one third are employee representatives. TheAnnuity Council, as the trustee of this plan, is responsible for the operation and management ofFAW Group's enterprise annuity fund.
(3) Fund raising and payment methods: The expenses required for enterprise annuity are jointly paidby the enterprise and employees.
(4) Account management: The enterprise annuity fund implements a full accumulation system and ismanaged by personal accounts. At the same time, enterprise accounts are established to collectunvested rights and interests.
(5) Fund management: The enterprise annuity fund consists of the following items: ① Enterprise'spayment; ② Employees' payment; ③ Investment and operation income. The enterprise annuity fundis entrusted to the Annuity Council for management. The enterprise and employee representativesentrust the Company to sign the enterprise annuity fund entrusted management contract with theAnnuity Council through collective negotiation, and entrust the Annuity Council for managementand market-oriented operation of the enterprise annuity fund collected by this plan.
(6) Benefit planning and distribution: The employee's payment and its investment income belong tothe employee; the part of enterprise's payment distributed to the individual account and itsinvestment income belong to the employee as specified, and the part not belonging to the individualis transferred to the enterprise account.
(7) Payment method of enterprise annuity: ① For the retired employee and the employee completingthe retirement procedures, the balance of the annuity personal account can be received at one time(or monthly, in several times or at one time based the balance of the individual account, theindividual income tax burden, etc.); ② For the dead, the balance of the individual account of theenterprise annuity can be collected by the legal successor at one time; ③ For the overseas residents,the balance of the personal account of the enterprise annuity may be paid to them at one timeaccording to their requirements.
XIX. Notes to Major Items of Parent Company’s Financial Statements1 Other receivables
Unit: CNY
| Item | Ending balance | Opening balance |
| Other receivables | 219,864.00 | 224,132.76 |
| Total | 219,864.00 | 224,132.76 |
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending book balance | Beginning Book Balance |
| Current account | 459,006.26 | 459,006.26 |
| Total | 459,006.26 | 459,006.26 |
2) Disclosure by aging
Unit: CNY
| Aging | Ending book balance | Beginning Book Balance |
| 1-2 years | 459,006.26 | |
| 2-3 years | 459,006.26 | |
| Total | 459,006.26 | 459,006.26 |
3) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | |||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | ||||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | ||||
| Including: | |||||||||||
| Provision for bad debts made by portfolio | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 | 459,006.26 | 100.00% | 234,873.50 | 51.17% | 224,132.76 | |
| Including: | |||||||||||
| Aging portfolio | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 | 459,006.26 | 100.00% | 234,873.50 | 51.17% | 224,132.76 | |
| Total | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 | 459,006.26 | 100.00% | 234,873.50 | 51.17% | 224,132.76 | |
Bad debt provision made as per portfolio:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Provision for bad debts made by portfolio | 459,006.26 | 239,142.26 | 52.10% |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 01, 2023 | 234,873.50 | 234,873.50 | ||
| Balance on January 1, 2023 in the current period | ||||
| Provision in the current period | 4,268.76 | 4,268.76 | ||
| Balance as at December 31, 2023 | 239,142.26 | 239,142.26 |
Basis for stage division and proportion of bad debt provisionSignificant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Provision, recovery, or reversal of bad debts in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Others | |||
| Current account | 234,873.50 | 4,268.76 | 239,142.26 | |||
| Total | 234,873.50 | 4,268.76 | 239,142.26 | |||
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Current account | 459,006.26 | 2-3 years | 100.00% | 239,142.26 |
| Total | 459,006.26 | 100.00% | 239,142.26 |
2. Long-term equity investment
Unit: CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment Provision | Book Value | Book balance | Impairment Provision | Book Value | |
| Investment in subsidiaries | 21,084,445,613.03 | 21,084,445,613.03 | 21,109,221,438.36 | 21,109,221,438.36 | ||
| Investment in associated enterprises and joint ventures | 4,509,604,357.16 | 4,509,604,357.16 | 4,471,059,131.83 | 4,471,059,131.83 | ||
| Total | 25,594,049,970.19 | 25,594,049,970.19 | 25,580,280,570.19 | 25,580,280,570.19 |
(1) Investment in subsidiaries
Unit: CNY
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book Value) | Ending balance of impairment provision | |||
| Additional Investment | Reduced Investment | Impairment Provision | Others | |||||
| FAW Jiefang Automotive Co., Ltd. | 21,109,221,438.36 | 24,775,825.33 | 21,084,445,613.03 | |||||
| Total | 21,109,221,438.36 | 24,775,825.33 | 21,084,445,613.03 | |||||
(2) Investment in associated enterprises and joint ventures
Unit: CNY
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book Value) | Ending balance of impairment provision | |||||||
| Additional Investment | Reduced Investment | Investment gains or losses recognized under the equity method | Adjustment to other comprehensive income | Changes in other equity | Cash dividends and profits declared to pay | Impairment Provision | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associated enterprises | ||||||||||||
| First Automobile Finance Co., Ltd. | 4,270,037,969.59 | 350,854,530.91 | 181,610.33 | 283,265,352.38 | 4,337,808,758.45 | |||||||
| Sanguard Automobile Insurance Co., Ltd. | 201,021,162.24 | -25,552,008.03 | 1,162,322.37 | 4,835,877.87 | 171,795,598.71 | |||||||
| Subtotal | 4,471,059,131.83 | 325,302,522.88 | 1,343,932.70 | 288,101,230.25 | 4,509,604,357.16 | |||||||
| Total | 4,471,059,131.83 | 325,302,522.88 | 1,343,932.70 | 288,101,230.25 | 4,509,604,357.16 | |||||||
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
3. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Long-term equity investment income calculated with cost method | 2,799,650,000.00 | |
| Income from long-term equity investments accounted for using the equity method | 325,302,522.88 | 364,182,151.72 |
| Total | 325,302,522.88 | 3,163,832,151.72 |
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
?Applicable □Not applicable
Unit: CNY
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets | 192,669,498.68 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company’s normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 546,340,041.28 | |
| Reversal of impairment provision for | 9,205,923.40 | It mainly refers to |
| receivables subject to separate impairment test | the reversal of impairment provision for receivables subject to separate impairment test. | |
| Non-operating income and expenses other than the above | 173,374,447.46 | They mainly refer to the net non-operating income and expenses |
| Other losses and profits conforming to the definition of non-recurring profit and loss | 100,996,378.33 | Other non-recurring profits and losses |
| Less: amount affected by income tax | 176,245,495.71 | |
| Total | 846,340,793.44 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit andloss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit andloss for the Company.Explanation on defining the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items
□Applicable ?Not applicable
2. Return on net assets and earnings per share
| Profit for the Reporting Period | Weighted average return on equity | Earnings per Share | |
| Basic earnings per share (CNY/share) | Diluted earnings per share (CNY/share) | ||
| Net profit attributable to ordinary | 3.16% | 0.1651 | 0.1651 |
| shareholders of the Company | |||
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | -0.35% | -0.0180 | -0.0180 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to the international accounting standards and China accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to foreign accounting standards and China accounting standards
□Applicable ?Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreignaccounting standards shall be given, and where data audited by an overseas audit authorityhas been adjusted based on the differences, the name of the overseas institution shall beindicated.