江铃B：2024年半年度报告(英文版)

Jiangling Motors Corporation, Ltd.

2024 Half-year Report

2024-08

Chapter I Important Notes, Contents and Abbreviations

Important NoteThe Board of Directors and its members, the Supervisory Board and itsmembers, and the senior executives are jointly and severally liable for thetruthfulness, accuracy and completeness of the information disclosed in theReport and confirm that the information disclosed herein does not contain anyfalse statement, misrepresentation or major omission.

Chairman Qiu Tiangao, CFO Joey Zhu and Chief of Finance Department, HuHanfeng, confirm that the Financial Statements in this Half-year Report aretruthful, accurate and complete.

All the Directors were present at the Board meeting to review this Half-yearReport.

Future plans, development strategies and other forward-looking statements inthis report do not constitute a substantial commitment of the Company toinvestors. Investors are advised to pay attention to investment risks.

The Company's possible risks and countermeasures are described in Section3 of this report, "Management Discussion and Analysis". Please investors topay attention to the relevant content.

Neither cash dividend nor stock dividend was distributed. The Board decidednot to convert capital reserve to share capital this time.

The Half-year Report is prepared in Chinese and English. In case ofdiscrepancy, the Chinese version will prevail.

Contents

Chapter I Important Notes, Contents and Abbreviations ...... 2

Chapter II Brief Introduction and Operating Highlight ...... 5

Chapter III Management Discussion and Analysis ...... 8

Chapter IV Corporate Governance Structure ...... 18

Chapter V Environment and Social Responsibilities ...... 20

Chapter VI Major events ...... 24

Chapter VII Share Capital Changes & Shareholders ...... 28

Chapter VIII Preferred Shares ...... 31

Chapter IX Bond related Information ...... 32

Chapter X Financial Statements ...... 33

Catalogue on Documents for Reference

1. Originals of 2024 Half-year financial statements signed by Chairman, Chief

Financial Officer and Chief of Finance Department.

2. Originals of all the documents and public announcements disclosed in

newspapers designated by CSRC in the first half of 2024.

3. Chinese version of the Half-year Report prepared per the China GAAP.

Abbreviations:

CSRC China Securities Regulatory CommissionJMCG Jiangling Motors Group Co., Ltd.Ford Ford Motor CompanyJIC Nanchang Jiangling Investment Co., Ltd.JMC or the Company Jiangling Motors Corporation, Ltd.JMCH JMC Heavy Duty Vehicle Co., Ltd.EVP Executive Vice PresidentCFO Chief Financial OfficerVP Vice President

Chapter II Brief Introduction and Operating Highlight

1. Company’s information

Share’s name	Jiangling Motors, Jiangling B	Share’s Code	000550, 200550
Place of listing	Shenzhen Stock Exchange
Company’s Chinese name	江铃汽车股份有限公司
English name	Jiangling Motors Corporation, Ltd.
Abbreviation	JMC
Company legal representative	Qiu Tiangao

2. Contact person and method

	Board Secretary	Securities Affairs Representative
Name	Xu Lanfeng	Quan Shi
Address	No. 2111, Yingbin Middle Avenue, Nanchang City, Jiangxi Province, P.R.C	No. 2111, Yingbin Middle Avenue, Nanchang City, Jiangxi Province, P.R.C
Tel	86-791-85266178	86-791-85266178
Fax	86-791-85232839	86-791-85232839
E-mail	[e-mail]	[e-mail]

3. Other

I. Contact methodsChanges of registered address, headquarter address, postal code, websiteand e-mail in the reporting period

□Applicable ?Not Applicable

The Company's registered address, headquarter address, postal code,website and e-mail remain unchanged during the reporting period.For details, please refer to the 2023 Annual report.

II. Changes of newspapers and website for information disclosure, and placefor achieving half-year report in the reporting period

□Applicable ?Not Applicable

There is no change of names of the medias and website of Stock Exchangefor publication of the Company’s Half-year Report and the place for achievingthe Company’s Half-year Report in the reporting period. Please refer to 2023Annual Report for details.

III. Other Relevant InformationWhether other relevant information has changed during the reporting period

□Applicable ?Not Applicable

4. Main accounting data and financial ratios

Unit: RMB

	Reporting period (2024 first half)	Same period last year	Change (%)
Revenue	17,920,065,801	15,429,372,309	16.14%
Profit Attributable to the Equity Holders of the Company	895,480,117	729,387,557	22.77%
Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Profit or Loss	811,172,488	417,729,211	94.19%
Net Cash Generated From Operating Activities	733,329,677	1,657,148,337	-55.75%
Basic Earnings Per Share (RMB)	1.04	0.84	22.77%
Diluted Earnings Per Share (RMB)	1.04	0.84	22.77%
Weighted Average Return on Equity Ratio	8.29%	7.59%	up 0.7 percentage points
	At the end of the reporting period	At the end of the previous year	Change (%)
Total Assets	29,874,677,888	29,141,187,886	2.52%
Shareholders’ Equity Attributable to the Equity Holders of the Company	10,655,967,834	10,350,145,738	2.95%

5. Accounting data difference between China GAAP and IFRS

I. Differences in net profit and net assets in financial statements between inaccordance with international accounting standards and Chinese accountingstandards

□Applicable ?Not Applicable

II. Differences in net profit and net assets in financial statements between inaccordance with overseas accounting standards and Chinese accountingstandards

□Applicable ?Not Applicable

6. Non-recurring profit and loss items and amounts

?Applicable □Not Applicable

Unit: RMB

Details of other profit and loss items that meet the definition of non-recurringprofit and loss

□Applicable ?Not Applicable

There is no any other profit and loss items that meet the definition of non-recurring profit and loss in the Company.The description of that the non-recurring profit and loss items listed inCorporate Information Disclosure of Public Issuing Securities No.1 are definedas recurring profit and loss items

□Applicable ?Not Applicable

The Company does not have a situation in which the non-recurring profit andloss items listed in No.1 of Corporate Information Disclosure AnnouncementNo.1 are defined as recurring profit and loss.

	Reporting period (2024 first half)
Profit and loss of non-current assets disposal (including the charge-off part of the asset impairment provision)	10,591,898
Government subsidies included in the current profit and loss	76,378,976
In addition to the effective hedging business related to the normal operating business of the Company, holding the gains and losses of fair value changes arising from trading financial assets and trading financial liabilities, as well as the investment income obtained from the disposal of trading financial assets, trading financial liabilities and available for sale financial assets	13,584,473
Capital occupation fee charged for non-financial enterprises included in the current profit and loss	3,230,604
Other non-operating income and expenses except the above	-4,020,858
Other profit and loss items that meet the definition of non-recurring profit and loss	-523,093
Less: Income tax impact amount	15,639,039
Influence of minority shareholders' equity	-704,668
Total	84,307,629

Chapter III Management Discussion and Analysis

1. Company’s Core Business During the Reporting Period

In 2024, the automotive industry continued to develop positively under thecombined effect of the stable domestic economy, the continuous developmentof the automotive old-for-new activities, the successive introduction of localsupporting policies, and the continuous listing of new models in the marketsuperimposed on the semiannual node of the volume, etc. In the first half ofthe year, the total production and sales of automobiles were 13,891 thousandand 14,047 thousand, with YOY growth of 4.9% and 6.1% respectively.Among them, the production and sales of passenger cars were 11,886thousand and 11,979 thousand, with YOY growth of 5.4% and 6.3%respectively, while those of ccommercial vehicles were 2,005 thousand and2,068 thousand, with YOY growth of 2% and 4.9% respectively. New energyvehicles continue the momentum of rapid growth, and their production andsales in the first half of the year were 4,929 thousand and 4,944 thousand,with YOY growth of 30.1% and 32% respectively, and the market share was

35.2%.

During the reporting period, the Company's main business is the productionand sale of commercial vehicles, SUVs and related components. The mainproducts include JMC light truck, Pickup, light bus, Ford-branded light bus,MPV, Pickup and other commercial vehicles and SUV products. JMC alsoproduces engines, frame, axle, and components. The Company takes highquality development as the main line, focuses on value, lean operation, andtransforms from scale expansion development to lean value growth.

In the first half of 2024, JMC continued to increase its technological reservesand investment in new products, intelligent connection network, new energyand lightweighting, and strengthened its digital operation capability to realizethe transformation of “four online”, including “products online”, “customersonline”, “processes online” and “employees online”. Through digitaltechnology, the Company improved operational efficiency, optimize businessprocesses and innovative business models, and focused on customer-centered integration of the whole value chain. Meanwhile, JMC activelyexpanded its transport capacity operation and used car business, integratedintelligent technology into its service system, and gradually formed acustomer-centered commercial vehicle ecosystem to focus the entire life cycleof automobiles and provided customers with all-around solutions. JMCactively laid out the RV business and off-road pickup and modified car marketto create unique products and lead the market trend; at the same time, theCompany accelerated the demonstration operation of mass production ofintelligent driving and created industry-leading automatic driving solutionsthrough close cooperation with its partners.

2. Core Competitiveness Analysis

The Company is a modern Sino-foreign joint venture that integratesautomobile research and development, manufacturing and sales. It is apioneer in the Chinese auto industry that provides excellent products andsolutions for the intelligent logistics field by relying on the market leadershipand advanced technology of light commercial vehicles. It owns the titles ofNational High-tech Enterprise, National Innovation Pilot Enterprise, NationalEnterprise Technology Center, National Industrial Design Center, NationalIntellectual Property Demonstration Enterprise, and National Vehicle ExportBase. It has been ranking among the top 100 most valuable automobilebrands in the world for many consecutive years. In the first half of 2024, JMClight bus ranked No.1 in the segment, Pickup ranked No.2 in the segment,and light truck ranked No.6 in the segment. JMC export sales have madesustained growth, with sales of 52,989 units, a year -on -year increase of

5.9%.

JMC always takes customers as the center, and provides customizedintegrated solution based on customer use scenarios. For customers in thefield of medical and health care, the Company has launched more than 10kinds of "big health" product series, including isolation transfer vehicle,medical checkup medical vehicle, medical waste transfer vehicle, disinfectionand epidemic prevention vehicle, etc., contributing JMC's power to thenational’s big health. At the same time, the Company continues to empowersmart logistics, design integrated solutions for the needs of large logisticscustomers to increase efficiency and reduce cost, and provide C2Bcustomized product services, end-to-end logistics solutions and overalllogistics capacity platform services.

The Company is a full scenario solution provider for light commercial vehicles.JMC light bus has an insight into customers’ needs and the light bus operationscenarios, and has launched high-quality, excellent and cost-effective lightbus product portfolios, achieving the full coverage of scenarios like freight,and passenger transport. At the same time, it also continues to hold the firstplace in the market in light passenger conversion scenarios such as traveling,money transportation and ambulance. Relying on the leading technology line,JMC light truck has built the Qingyun Architecture, which combines five majortechnology platforms, including intelligent driving, intelligent Internetconnection, advanced electrical architecture, diversified power and high-performance chassis, bringing users a more intelligent and comfortable,lightweight and energy-saving vehicle experience. JMC launched "JMCDadao", a new Pickup product, positioning "Chinese pickup expert of fullscenarios", covering the market of mid-to-high commercial and passenger

dual-use and passenger off-road Pickups whose price are more than RMB100,000. JMC has established the coexistence strategy of the three series ofPickup products and completed the full price and product matrix layout in thePickup segment.

The Company adheres to the dual-brand strategy of Self-owned and Ford,giving full play to its own advantages while deeply integrating Ford's globalsystem. In terms of technology research and development, with the help ofFord's global platform, the Company has gradually formed the corecompetitiveness of independent research and development, established anindependent research and development system, built an advanced globaldigital design platform, and jointly develops, designs and launches specificnew products with Ford. The Company has been an industry-leadingtechnology center and industrial design center in terms of brand channels, theCompany currently has more than 700 tier 1 dealers, with a total of more than2,000 dealers, and has established a modern marketing system through thefour-in-one franchise model of sales, accessories, service and information. Atthe same time, with the ultimate powerful off-road product portfolio,personalized customized modification and the abundant community activitiesas the pillars, more than 100 Ford Beyond experience centers have been builtacross the country, and the star product, Ford Bronco, has caused a hugesensation in the industry and achieved a very good market response as soonas it was listed. In terms of manufacturing management, the Company hasvehicle production bases such as Xiaolan Plant and Fushan Plant, coveringstamping, welding, painting, diesel engines, gasoline engines and otheradvanced manufacturing technology, to create a highly intelligent, highlyflexible smart manufacturing center. The Company is a demonstrationenterprise in Jiangxi Province for integration of informatization andindustrialization. In terms of autonomous driving, the Company has beenworking with strategic partner WeRide on commercialization practice, and hasbeen approved to carry out "purely unmanned test" and "cargo test" for self-driving urban freight vehicles in Guangzhou, which is the first purelyunmanned remote test permit for L4-class autonomous driving freight vehiclesunder urban open road scenarios in China. This is China's first purelyunmanned remote test license for L4-class self-driving freight vehicles inurban open road scenarios. In the future, the Company will use lightcommercial vehicles as carriers, and deeply plough into the development andoperation of self-driving in urban freight transportation and park logisticsscenarios. In terms of new energy, JMC has launched various new energyproducts such as E Lu Da, Da Dao EV and E-Transit, released the newenergy transportation brand "JMC Fun-to-Drive" which expanded thetransportation and leasing business of the Company, and committed toproviding customers with systematic solution of "full-scene product coverage,full-scene customer service, and full-scene ecological construction" from aholistic perspective to create the greatest value for users from a practical pointof view. In terms of export business, the Company has entered into aFramework Agreement on Vehicle Export Opportunities with Ford. Relying onFord’s mature global business layout and network, both parties intend toprocure the Company to become an export product engineering and

manufacturing center based in China and supporting Ford’s global salesnetwork.

3. Core Business Analysis

SummaryRefer to the relevant content of “1. the Company’s Core Business During theReporting Period”.

Year-over-Year Changes of Main Financial Data

Unit: RMB

	2024 1H	2023 1H	YOY change（%）	Reason
Revenue	17,920,065,801	15,429,372,309	16.14%
Cost of sales	15,489,880,688	13,282,569,929	16.62%
Distribution costs	617,075,751	529,719,611	16.49%
Administrative expenses	460,505,827	520,114,941	-11.46%
Finance expense	-87,655,467	-93,306,361	6.06%
Income tax expense	-56,969,254	-91,534,142	-37.76%	Mainly the effect of changes in profits.
Research and Development Expenditure	802,077,814	1,084,212,021	-26.02%
Net cash generated from operating activities	733,329,677	1,657,148,337	-55.75%	Mainly due to the increase in cash paid for operating activities compare with the same period last year.
Net cash used in investing activities	-688,756,260	-658,303,311	-4.63%
Net cash used in financing activities	-823,411,831	-283,374,696	-190.57%	Due to reduction in borrowings during the current period.
Net increase/(decrease) in cash and cash equivalents	-778,838,414	715,470,330	-208.86%	Mainly due to lower cash flows from operating activities during the current period.

Significant changes in the composition or source of profits during the reportingperiod

□Applicable ?Not Applicable

There was no significant change in the composition or source of profits in theperiod.

Composition of Core Business

Unit: RMB

	2024 First Half		2023 First Half		YOY change （%）
	Amount	Proportion (%)	Amount	Proportion (%)
Revenue	17,920,065,801	100%	15,429,372,309	100%	16.14%
By Industry
Automobile Industry	17,920,065,801	100.00%	15,429,372,309	100.00%	16.14%
By Products
Vehicle	16,234,132,009	90.59%	13,332,827,137	86.41%	21.76%
Components	858,699,049	4.79%	1,810,283,833	11.73%	-52.57%
Automobile Maintenance services, etc.	343,013,155	1.91%	60,945,176	0.40%	462.82%
Material & Others	484,221,588	2.71%	225,316,163	1.46%	114.91%
By region
China	17,920,065,801	100.00%	15,429,372,309	100.00%	16.14%

Reach to 10% of Revenue or Profit by Industry, Product or Region?Applicable □Not Applicable

Unit: RMB

	Turnover	Cost	Gross Margin	Y-O-Y turnover change (%)	Y-O-Y Cost Change (%)	Y-O-Y gross margin change (points)
By Industry
Automobile Industry	17,920,065,801	15,489,880,688	13.56%	16.14%	16.62%	-0.35%
By Products
Vehicle	16,234,132,009	14,124,912,768	12.99%	21.76%	22.04%	-0.20%
By Region
China	17,920,065,801	15,489,880,688	13.56%	16.14%	16.62%	-0.35%

If the Company’s core business scope is adjusted during the reporting period,the Company’s core business data of last year need to be adjusted per thescope in this year

□Applicable ?Not Applicable

4. Non-core business analysis

□Applicable ?Not Applicable

5. Analysis of Assets and Liabilities

I. Major changes

Unit: RMB

Asset item	June 30, 2024		December 31, 2023		YOY
					Proportion change
	Amount	Proportion	Amount	Proportion	(Points)
Cash and cash equivalents	11,043,905,115	36.97%	11,830,560,675	40.60%	-3.63%
Accounts receivables	4,711,811,192	15.77%	4,401,826,022	15.11%	0.66%
Inventories	2,118,012,490	7.09%	1,560,259,511	5.35%	1.74%
Long-term equity investments	227,134,693	0.76%	233,798,348	0.80%	-0.04%

Fixed assets	5,469,283,281	18.31%	5,389,645,152	18.49%	-0.18%
Construction in progress	586,821,753	1.96%	464,431,412	1.59%	0.37%
Right-of-use asset	190,820,207	0.64%	194,836,028	0.67%	-0.03%
Short-term borrowings	500,000,000	1.67%	1,300,000,000	4.46%	-2.79%
Contract liabilities	341,737,019	1.14%	243,740,992	0.84%	0.30%
Long-term borrowings	1,166,732	0.00%	1,391,414	0.00%	0.00%
Lease liabilities	90,195,237	0.30%	138,005,943	0.47%	-0.17%

II. Main Overseas Assets

□Applicable ?Not Applicable

III. The fair value of the assets and liabilities.?Applicable □Not Applicable

Unit: RMB

Item	financial assets	1.Trading financial assets (excluding derivative financial assets)	2. Derivative financial assets	financial assets Subtotal	Financing receivables	Subtotal	Financial liabilities
Beginning of the period		200,604,877	0	200,604,877	123,170,062	323,774,939	0
Loss/profit in fair value in the period		-21,425	4,510,945	4,489,520		4,489,520
Cumulative changes in fair value recorded into equity
Impairment in the period
Purchase in the period		400,000,000		400,000,000	1,163,432,307	1,563,432,307
Sell in the period		400,000,000		400,000,000	1,011,825,137	1,411,825,137
Other changes
End of the period		200,583,452	4,510,945	205,094,397	274,777,232	479,871,629	0

Other changeNone.

Whether there is a significant change in the measurement attributes of theCompany's main assets during the reporting period

□Applicable ?Not Applicable

IV. Restriction on Assets Rights as of the End of the Reporting Period

		Unit: RMB
Items	Book value at the end of the period	Cause for restriction
Cash and cash equivalents	18,760,506	Frozen funds for litigation.

6. Investment Analysis

I. Summary

□Applicable ?Not Applicable

II. Obtained Major Equity Investment during the Reporting Period

□Applicable ?Not Applicable

III. Ongoing Major Non-Equity Investment during the Reporting Period

□Applicable ?Not Applicable

IV. Financial Assets Investment(a) Stock Investment

□Applicable ?Not Applicable

There was no stock investment on the reporting period.

(b)Derivative Investment

□Applicable ?Not Applicable

There was no derivative investment on the reporting period.

V. Usage of Raised Fund

□Applicable ?Not Applicable

There was no usage of raised fund on the reporting period.

7. Sales of Major Assets and Equity

I. Sales of Major Assets

□Applicable ?Not Applicable

No Major Assets were sold during the reporting period.

II. Sales of Major Equity

□Applicable ?Not Applicable

8. Analysis of major shareholding companies

?Applicable □Not ApplicableOperating Results of Main Subsidiaries and Joint-Stock Companies whoseimpact on JMC’s net profit more than 10%

Unit: RMB

Name of companies	Jiangling Motors Sales Corporation, Ltd	JMC Heavy Duty Vehicle Co., Ltd.	Jiangling Ford Motor Technology (Shanghai) Co., Ltd.
Type of companies	Subsidiary	Subsidiary	Holding subsidiary
Main business	Sales of vehicles and service parts.	Production and sales of automobiles, engines and other automotive parts.	Engineering and technology research and experimental development, sales of vehicles, new energy vehicles, auto parts, etc.
Registered capital	50,000,000	1,323,793,174	200,000,000
Total assets	4,903,754,988	382,869,556	904,961,583
Net assets	208,684,076	352,816,966	-1,326,262,052
Turnover	9,736,398,321	179,025	2,085,240,315
Operating profit	-60,871,513	-13,711,429	-772,460,050
Net profit	-45,956,961	-13,425,806	-580,806,710

Acquisition and disposal of the subsidiaries

□Applicable ?Not Applicable

Description of the main holding and participating companiesNone.

9. Structured Entities Controlled by JMC

□Applicable ?Not Applicable

10. Potential Challenges and Solutions

In 2024, China is in a critical period of economic recovery and transformationand upgrading. Despite the complexity, severity and uncertainty of theexternal environment is obviously rising, and the domestic structuraladjustment continues to deepen, which bring new challenges, the economicgrowth in the first half of this year is generally stable, and the foundation of theeconomic upturn is relatively solid, based on accelerating the cultivation ofnew quality productivity, and continue to stimulate the new kinetic energy, thefundamentals of China's economy in the long term to the good have notchanged. Changes in the automotive industry in terms of electrification,internet connectivity, intelligence and sharing are accelerating, and the scaleof China's automotive exports continues to expand, while price competition in

the industry is becoming increasingly fierce. In order to maintain steadygrowth, JMC will focus on the following aspects:

(1) To adhere to the customer-centric concept, gain in-depth insight intocustomer needs and changes in the market environment, explore newbusiness growth points, and get in on the ground floor in the disruptiveindustry changes;

(2) To continuously expanding brand reputation, strengthening brandoperation, enriching product matrix and enhancing product competitiveness;

(3) To continuously promote the Ford Beyond transformation, stimulatechannel vitality, improve the quality of community activities, and create a newoff-road experience ecosystem;

(4) To accelerate the research and development and launch of new energyproducts, continue to promote the construction of new energy channels,optimize the operation and management of transport capacity, and strengthenthe risk management and control of asset operations;

(5) To developing overseas business capacity, improving overseas servicelevel, accelerating export product development, enhancing the internationalcompetitiveness of export products, deepening export business cooperationwith shareholders, and expanding new market opportunities;

(6) To accelerating the Company's digital transformation, exploring theapplication of AI big models, continuing to enhance customer experience andthe digital competitiveness of the Company, and improving operationalefficiency;

(7) To strengthen product quality control, establish a culture of "qualityleadership", and improve the level of after-sales service capabilities;

(8) To continuously promote cost reduction, expenses control and efficiencyenhancement, meanwhile, strengthen the management and control ofoperating cash flow to improve the quality of operations;

(9) To strengthen corporate governance, strictly comply with national laws andregulations, and improve risk assessment and control mechanisms.

JMC will follow the customer-centric concept, focus on light commercialvehicles, deepen the marketing system reform, promote brand building andchannel rejuvenation, consolidate the core competitiveness of lightcommercial vehicles, and consolidate and enhance the market position of lightcommercial vehicles. The Company will attach equal importance to passengercars and commercial vehicles, promote the Ford Beyond channel construction,operate a high-end off-road brand image, enhance product market awareness,increase the scale of passenger car sales. The Company will accelerate thetransformation of new energy business, launch new energy products withmarket competitiveness, promote the healthy development of transportcapacity operation business, gain insight into overseas markets, and explorenew overseas markets and expand export sales.

The Company will continue to achieve “stable development with solidfoundation and additive energy for emerging business”, deeply promote sci-tech innovation and industrial transformation, and taking the newindustrialization, information technology application, urbanization, andagricultural modernization as well as digital transformation as the lead,accelerate the cultivation of new quality productivity. At the same time, JMCwill continue to implement the strategy of quality leadership, optimize the coststructure, promote cost reduction and efficiency enhancement, improveprofitability and create sufficient cash flow to support the Company’s high-quality development.

11. Implementation of the action plan of "Double Enhancement of Quality andReturn"Whether the Company has disclosed the action plan of "Double Enhancementof Quality and Return".

□Yes ?No

Chapter IV Corporate Governance Structure

1. Introduction of the Shareholders’ Meetings Held in the Reporting PeriodI. Index of the Shareholders’ Meetings in the reporting periodIn the first half of 2024, the Company has hold three Shareholders’ Meetings,and the relevant contents are as follows:

(1) Session of the meeting：2024 First Special Shareholders’ MeetingThe meeting type: special shareholders’ meetingInvestor participation ratio: 78.02%Convening date: February 6, 2024Disclosure date: February 7, 2024The meeting resolutions:

1. approve the Proposal on Providing Financial Assistance to a HoldingSubsidiary;

2. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with JMCG Finance Company;

3. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and itssubsidiaries;

4. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangling Motor Group Co., Ltd. and its subsidiaries;

5. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Ford and its subsidiaries;

6. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Magna PT Powertrain (Jiangxi) Co., Ltd.;

7. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Nanchang Jiangling Huaxiang Auto Components Co., Ltd.;

8. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;

9. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with China South Industries Group Co., Ltd. and its subsidiaries;

10. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangxi Jiangling Lear Interior System Co., Ltd.;

11. approve the Proposal on the Y2024 Routine Related Party TransactionFramework with Faurecia Emissions Control Technologies (Nanchang) Co.,Ltd.;

(2) Session of the meeting：2024 Second Special Shareholders’ MeetingThe meeting type: special shareholders’ meetingInvestor participation ratio: 75.62%Convening date: April 11, 2024Disclosure date: April 12, 2024The meeting resolutions:

1. approve the Proposal on Retaining of External Auditor and C-SOX Auditor;

2. approve the Proposal on Electing Ms. Zhong Junhua as a Director on theEleventh Board of Directors of JMC.

(3) Session of the meeting：2023 Annual Shareholders’ MeetingThe meeting type: annual shareholders’ meetingInvestor participation ratio: 76.73%Convening date: June 25, 2024Disclosure date: June 26, 2024The meeting resolutions:

1. approve the 2023 Work Report of the Board of Directors of JMC;

2. approve the 2023 Work Report of the Supervisory Board of JMC;

3. approve the 2023 Annual Report of JMC and the Extracts from such AnnualReport;

4. approve the 2023 Financial Statements of JMC;

5. approve the Proposal on JMC Profit Distribution for Year 2023.

II. Special Shareholders’ Meeting convened by preferred-shareholders whosevoting rights were restored

□Applicable ?Not Applicable

2. Changes of Directors, Supervisors and senior management

?Applicable □Not Applicable

3. Proposal on profit distribution and converting capital reserve to sharecapital for the reporting period

□Applicable ?Not Applicable

The Company planned that neither cash dividend nor stock dividend wasdistributed, and not to convert capital reserve to share capital for the first halfof 2024.

4. Implementation of Equity Incentive Plan, Employee Stock Ownership Planand Other Employee Incentive Method

□Applicable ?Not Applicable

There was neither equity incentive plan or ESOP, nor other employeeincentive method during the reporting period.

Name	Position	Status	Date	Reason
Zhong Junhua	Director	Elected	2024.04.11	Work need
Jin Wenhui	Ex-Director	Leave	2024.04.11	Work rotation.
Zhong Junhua	EVP	Employment	2024.03.26	Appointment due to work need.
Jin Wenhui	Ex-EVP	Leave	2024.03.26	Work rotation.

Chapter V Environmental and Social Responsibility

1.Major Environmental issues

(1) Environmental protection

Whether the Company and affiliates is the key pollution discharge unitpublished by environmental protection administration??Yes □No

Environmental protection related policies and industry standardsIn the first half of 2024, the Ministry of Ecology and Environment of the PRCupdated the Measures for the Administration of Sewage Discharge Permits,and the Department of Ecology and Environment of Jiangxi Province issuedthe Measures for the Law Enforcement and Supervision of Ecological andEnvironmental Classification in Jiangxi Province. The Company organizedrelevant personnel to study and master the latest regulations, policies andindustry standards, and took comprehensive and systematic measures toensure that the Company's environmental management work meets therequirements of national and local laws and regulations.

Situation of administrative permit for environmental protectionIn the first half of 2024, the application for extension of the discharge permit ofthe Fushan plant was passed, the discharge permit of the Xiaolan plant hasbeen passed the re-application, and the discharge permits of the other plantsare within the validity period; the Company’s frame welding line technologyimprovement project has obtained the approval of the environmentalassessment.

Industry emission standards and specifics of pollutant emissionsinvolved in production and business activities

Name of company or subsidiary	JMC	JMC
Kind of principal pollutant and specific pollutant	Wastewater discharge pollutant	Exhaust emission pollutant
Name of principal pollutant and specific pollutant	COD, NH-N	SO2, NOx, NMHC
Mode of discharge	Continuous discharge	Continuous discharge
Number of discharge outlet	5	150
Distribution of discharge outlet	1 in Fushan Site, 2 in Xiaolan Site, 1 in Cast Plant and 1 in Axle	38 in Fushan Site, 81 in Xiaolan Site, 28 in Cast Plant and 3 in Axle Plant

	Plant
Discharge concentration	COD: 27.06-83.95mg/L; NH-N: 0.33-5.17mg/L	NOx: 3-159mg/m?; NMHC: Xiaolan Plant 10.09g/m2; Fushan Plant 5.38g/m2;
Applicable standard for pollutant discharge	Gan EIA [2015] No. 144; Integrated Wastewater Discharge Standard (GB 8978-1996)	Emission Standards for Atmospheric Pollutants from Boilers (GB13271-2014); Volatile Organic Compounds Emission Standards - Part 5: Auto Manufacturing (DB36/1101.5-2019); Emission Standard of Air Pollutants for Foundry Industry (GB 39726—2020)
Total amount of discharge	COD: 18.97t; NH-N: 1.02t	NOx: 28.44t NMHC: Xiaolan Plant 94t, Fushan Plant 32t
Total amount of discharge audited	COD≤517.39t; NH-N≤24.795t	NOx≤95.59t NMHC≤1882.4t
Excessive discharge	Meet Standard	Meet Standard

Treatment of pollutantsIn the first half of 2024, about 360 thousand tons of wastewater were treated,and the treated wastewater steadily met the national discharge standards. In2024, Fushan Plant and Xiaolan Plant were awarded the 2024 first batch ofVOCs performance A & B level enterprises of key industries in heavy pollutionweather in Jiangxi Province. At the same time, the Company formulated the"VOCs Online Monitoring Compliance Rate Enhancement Program" to stablyoperate the waste gas treatment facilities. JMC smart environmentalprotection supervision platform monitors in real time to ensure the stable up-to-standard discharge of VOC data. In terms of the waste management, theCompany has taken measures to unify the standardization of visualizationstandards and other measures to enhance the management of hazardouswaste sites, and implemented a project to enhance the intelligentmanagement system for hazardous waste. continuously adopted intelligentmanagement system to further standardize the refined management ofhazardous waste. And by means of source control, brainstorming, digging intothe internal potential, the Company has actively adopted various types ofwaste reduction and fee reduction measures such as painting and cleaningprocess improvement, and the amount of hazardous waste disposed of by asingle unit in the first half of 2024 decreased by 23.7% compared with that of2023.

Emergency plan on emergency environmental incidents

The Company did not experience any sudden environmental emergencies inthe first half of 2024. In order to dilute or prevent environmental risks, JMCestablished an emergency preparation and response procedure and specificenvironmental emergency plans which has been filed with the EnvironmentalProtection Bureau. The Company has formulated the control methods forpotential accidents and emergences occurred or that may probably occur, andorganized emergency drills every year to ensure the effectiveness of the plan.

Relevant information of investment in environmental governance andprotection and payment of environmental protection taxIn the first half of 2024, the Company invested approximately RMB 10.44million in environmental remediation, operation and maintenance, of which,RMB 1.76 million for operation of the wastewater treatment stations, RMB

2.84 million for disposal of solid wastes, RMB 520 thousand for environmentalmonitoring and online operation, RMB 220 thousand for upgrading automaticmonitoring equipment and facilities, , RMB 100 thousand for upgrading theHazardous Waste Intelligent Management System, and specially, RMB 5million for the implementation of the transformation project of Fushan Plantpainting topcoat robot cleaning machine. In the first half of 2024, JMC paid atotal of approximately RMB 97 thousand for environmental protection tax.

Remarks: The exhaust gas treatment facilities were not counted separately forthe operating expenses due to the overall operation with the productionfacilities.

Environmental self-monitoring schemeThe Company carries out self-monitoring in strict accordance with therequirements of the state. The monitoring schemes, monitoring results, andannual monitoring report on pollution sources were disclosed on thegovernment platform. In the first half of 2024, the reporting rate of self-monitoring data of the Company's four plants on the national monitoringplatform is 100%.

Administrative punishment for environmental problems during thereporting periodNone.

Other environmental information that should be disclosedNone.

Measures and effects taken to reduce carbon emissions during thereporting period?Applicable □Not Applicable

In the first half of 2024, the Company used 29.69 million kWh of green electricpower, saving 8479.46 tons of standard coal and reducing 21,139.29 tons ofCO

emissions.

By renovating and upgrading the original station air conditioning, 279,000 Nm

of natural gas was saved, 338.7 tons of standard coal was saved, and 844.38tons of carbon dioxide emissions were reduced in the first half of 2024.

Other environmental protection related informationNone.

2. Social responsibility

JMC deeply implemented the decision arrangement of the CPC CentralCommittee on consolidating our gains in poverty elimination and advancingrural revitalization across the board, and offered paired assistance toHongxing Village of Liuhu Town of Honggutan New District of Nanchang City,and Luoyang Village of Dafen Town of Suichuan County of Ji’an Cityaccording to the requirements of the CPC Jiangxi Provincial Committee andPeople’s Government of Jiangxi Province, and under the leadership of JMCG.

The Company take industrial revitalization as a channel, by means of talentdispatching, consumption assistance, etc., to deeply promote ruralrevitalization work. In the first half of 2024, the Company purchased morethan 4,000 jin of rapeseed oil, 43,000 jin of yellow peaches, and 4,000 jin ofpasta from the assisted villages, which increased the village’s collectiveincome of more than RMB 47,000 by the “1 RMB program”.

In the first half of 2024, JMC donated RMB 2 million to China Foundation forRural Development to implement the “JMC Xiqiao Project”. The "Build aBridge together JMC Xiqiao Monthly Donor Program" was launched on theofficial public fundraising platform of the China Rural Development Fund,"Public Welfare for All". Through JMC Smart Drive APP, millions of JMCvehicle owners link with the JMC Xiqiao Project to drive more forces for ruralrevitalization.

Chapter VI Major Events

1. Commitments of actual controlling parties, shareholders, related parties,acquirers and the Company finished in the reporting period or overdueunfinished by the end of the reporting period

□Applicable ?Not Applicable

There is no commitment of actual controlling parties, shareholders, relatedparties, acquirers and the Company finished in the reporting period oroverdue unfinished by the end of the reporting period.

2. Non-operating funding in the Company occupied by controlling shareholderand its affiliates

□Applicable ?Not Applicable

There was no non-operating funding in the Company occupied by controllingshareholder and its affiliates.

3. Illegal outside guarantee

□Applicable ?Not Applicable

The Company had no illegal outside guarantee during the reporting period.

4. Appointment or Dismissal of Accounting Firm

Whether the 2024 half-year report is audited?

□Yes ?No

JMC 2024 half-year report is not audited.

5. Explanation of the Board of Directors, the Supervisory Board to abnormalopinions from accounting firm for the reporting period

□Applicable ?Not Applicable

6. Explanation of the Board of Directors to abnormal opinions from accountingfirm in 2023 report

□Applicable ?Not Applicable

7. Related Matters regarding Bankruptcy

□Applicable ?Not Applicable

There was no matter involving bankruptcy during the reporting period.

8. Litigation or arbitration

Major Litigation or Arbitration

□Applicable ?Not Applicable

There was no major litigation or arbitration during the reporting period.

Other litigation

□Applicable ?Not Applicable

9. Punishment

□Applicable ?Not Applicable

10. Honesty and credit of JMC and its controlling shareholder or actualcontrolling party

□Applicable ?Not Applicable

11. Major related transactions

I. Routine related party transactions?Applicable □Not ApplicablePlease refer to the note 7 “Related party Transactions” to the financialstatements in the Chapter X Financial Statements for details.

II. Major related party transaction concerning transfer of assets or equity

□Applicable ?Not Applicable

There was no major related party transaction concerning transfer of assets orequity in the reporting period.

III. Related party transaction concerning outside co-investment

□Applicable ?Not Applicable

There was no outside co-investment during the reporting period.

IV. Related credit and debt?Applicable □Not ApplicableIs there non-operating related credit and debt?

□Yes ?No

The Company had no non-operating related credit and debt in the reportingperiod.

V. Transaction with related financial companies or financial companies thatthe company holds?Applicable □Not ApplicableDeposit business

Related party	The related relationship	Maximum daily deposit limit	Deposit rate	Balance at the beginning of the period(RMB thousands)	Current amount		Balance at the end of the period (RMB thousands)
					Deposit amount (RMB thousands)	Take out the amount (RMB thousands)
JMCG Finance Company	Wholly-owned Subsidiary of JMCG	*	1.35%-2.25%	1,092,870	8,038,310	7,847,350	1,283,830

* Note: JMC applies the consolidated deposit limit in JMCG Finance Companyat the end of each month to the lower of the following: 1) 25% of JMCGFinance Company absorbing deposit in prior year end; or 2) 12% of JMC’sconsolidated total cash reserve.

Loan business

Related party	The related relationship	loan limit (RMB thousands)	Loan rate range	Balance at the beginning of the period (RMB thousands)	Current amount		Balance at the end of the period (RMB thousands)
					Loan amount (RMB thousands)	Repayment amount (RMB thousands)
JMCG Finance Company	Wholly-owned Subsidiary of JMCG	1,300,000	0%	0	0	0	0

Granting credit or other financial business

Related party	The related relationship	Type of business	Total (RMB thousands)	Actual amount (RMB thousands)
JMCG Finance Company	Wholly-owned Subsidiary of JMCG	Granting credit	1,300,000	0

VI. The transactions between the financial company controlled by thecompany and its related parties

□Applicable ?Not Applicable

The Company has no controlling financial company.

VII. Other major related party transactions

□Applicable ?Not Applicable

The Company has no other major related party transaction in the reportingperiod.

12. Major Contracts and Execution

(1) Entrustment, contract or lease

a. Entrustment

□Applicable ?Not Applicable

There was no entrustment in the reporting period.

b. Contract

□Applicable ?Not Applicable

There was no contract in the reporting period.

c. Lease?Applicable □Not ApplicablePlease refer to the Note 4 (16), note 4 (31) and note 7 (5) (b) of the financialstatements in the Chapter X Financial Statements for details.

Project of which the profit and loss brought for the company reaches morethan 10% of the total profit of the company during the reporting period

□Applicable ?Not Applicable

There was no leasing project of which the profit and loss brought for theCompany reached more than 10% of the total profit of the Company duringthe reporting period.

II. Major guarantee

□Applicable ?Not Applicable

The Company had no outside guarantee in the reporting period.

III. Entrusted financial management

□Applicable ?Not Applicable

There was no entrusted financial management in the reporting period.

IV. Other Major Contracts

□Applicable ?Not Applicable

There was no other major contract in the reporting period.

13. Other major events

□Applicable ?Not Applicable

There was no other major event in the reporting period.

14. Major event of JMC subsidiary

□Applicable ?Not Applicable

Chapter VII Share Capital Changes & Shareholders

1. Changes of shareholding structure

I. Table of the changes of shareholding structure

	Before the change		Change (+, -)					After the change
	Shares	Proportion of total shares (%)	New shares	Bonus Shares	Reserve- converted shares	Others	Sub-total	Shares	Proportion of total shares (%)
I. Limited tradable A shares	750,840	0.09%						750,840	0.09%
1. Other domestic shares	750,840	0.09%						750,840	0.09%
Including:
Domestic legal person shares	745,140	0.09%						745,140	0.09%
Domestic natural person shares	5,700	0.00%						5,700	0.00%
II. Unlimited tradable shares	862,463,160	99.91%						862,463,160	99.91%
1. A shares	518,463,160	60.06%						518,463,160	60.06%
2. B shares	344,000,000	39.85%						344,000,000	39.85%
III. Total	863,214,000	100.00%						863,214,000	100.00%

Causes of shareholding changes

□Applicable ?Not Applicable

Approval of changes of shareholding structure

□Applicable ?Not Applicable

Shares Transfer

□Applicable ?Not Applicable

Progress in the implementation of share repurchase

□Applicable ?Not Applicable

The implementation progress of reducing the buyback shares by means ofcentralized bidding

□Applicable ?Not Applicable

Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’equity attributable to the equity holders of the Company, generated fromshares transfer

□Applicable ?Not Applicable

Others to be disclosed necessarily or per the requirements of securitiesregulator

□Applicable ?Not Applicable

II. Changes of limited A shares

□Applicable ?Not Applicable

2. Securities issuance and listing

□Applicable ?Not Applicable

3. Shareholders and shareholding status

Total shareholders (as of June 30, 2024)	JMC had 29,904 shareholders, including 24,401 A-shareholders, and 5,503 B-shareholders.
Top ten shareholders
Shareholder Name	Shareholder Type	Shareholding Percentage (%)		Shares at the End of Year		Change (+,-)	Shares with Trading Restriction		Shares due to mortgage or mark or frozen
Nanchang Jiangling Investment Co., Ltd.	State-owned legal person	41.03%		354,176,000		0	0		0
Ford Motor Company	Foreign legal person	32.00%		276,228,394		0	0		0
Hong Kong Securities Clearing Company Ltd. (HKSCC)	Foreign legal person	4.01%		34,636,448		422,620	0		0
Jin Xing	Domestic natural person	0.72%		6,204,200		-1,341,900	0		0
China Merchants Securities (HK) Co., Ltd.	Foreign legal person	0.56%		4,818,133		3,565,177	0		0
Guangfa Wen Xin Capital Preservation Hybrid	Domestic non-State-owned legal persons	0.39%		3,370,480		3,370,480	0		0
Guangfa Ruixuan Three Months Regularly Open Mixed Initiating Securities Investment Fund	Domestic non-State-owned legal persons	0.29%		2,511,500		2,511,500	0		0
Guangfa Shengjing Mixed Securities Investment Fund	Domestic non-State-owned legal persons	0.27%		2,359,060		2,359,060	0		0
Li Yifeng	Domestic natural person	0.26%		2,227,500		-703,400	0		0
MORGAN STANLEY & CO. INTERNATIONAL PLC.	Foreign legal person	0.25%		2,157,624		1,516,021	0		0
Strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares			None.
Notes on association among above-mentioned shareholders			Guangfa Wen Xin Capital Preservation Hybrid, Guangfa Ruixuan Three Months Regularly Open Mixed Initiating Securities Investment Fund, Guangfa Shengjing Mixed Securities Investment Fund are in custody of GF FUND MANAGEMENT CO.,LTD. Shareholders holding more than 5% are not related.
Description of the above shareholders' entrusted / entrusted voting rights and waived voting rights			None.
A special description of the special repurchase account among the top 10 shareholders			None.
Top ten shareholders holding unlimited tradable shares
Shareholder Name					Shares without Trading Restriction			Share Type
Nanchang Jiangling Investment Co., Ltd.					354,176,000			A share
Ford Motor Company					276,228,394			B share
Hong Kong Securities Clearing Company Ltd. (HKSCC)					34,636,448			A share
Jin Xing					6,204,200			B share
China Merchants Securities (HK) Co., Ltd.					4,818,133			B share

Guangfa Wen Xin Capital Preservation Hybrid		3,370,480	A share
Guangfa Ruixuan Three Months Regularly Open Mixed Initiating Securities Investment Fund		2,511,500	A share
Guangfa Shengjing Mixed Securities Investment Fund		2,359,060	A share
Li Yifeng		2,227,500	B share
MORGAN STANLEY & CO. INTERNATIONAL PLC.		2,157,624	A share
Explanation of the association or concerted action between the top 10 unlimited tradable shareholders, and between the top 10 unlimited tradable shareholders and the top 10 shareholders	Guangfa Wen Xin Capital Preservation Hybrid, Guangfa Ruixuan Three Months Regularly Open Mixed Initiating Securities Investment Fund, Guangfa Shengjing Mixed Securities Investment Fund are in custody of GF FUND MANAGEMENT CO.,LTD. Shareholders holding more than 5% are not related.
Description of Shareholders Participating in Financing and Securities Financing Business	None.

Participation of Shareholders holding more than 5% of shares, top 10shareholders and top 10 shareholders with unlimited shares in the lending ofshares in the refinancing business

□Applicable ?Not Applicable

Change in the top 10 shareholders of the Company and the top 10shareholders with unlimited shares from the previous period due tolending/repatriation of refinancing business

□Applicable ?Not Applicable

Stock buy-back by top ten shareholders or top ten shareholders holdingunlimited tradable shares in the reporting period

□Applicable ?Not Applicable

The top 10 common shareholders of the Company and the top 10 commonshareholders with unlimited conditions of sale did not conduct agreedrepurchase transactions during the reporting period.

4. Changes of shares held by Directors, Supervisors and senior management

□Applicable ?Not Applicable

There was no change of shares held by Directors, Supervisors and seniormanagement in the reporting period. Please refer to 2023 annual report fordetails.

5. Change of controlling shareholders or actual controlling partiesChange of controlling shareholders

□Applicable ?Not Applicable

There was no change of controlling shareholders during the reporting period.

Change of actual controlling parties

□Applicable ?Not Applicable

There was no change of actual controlling parties during the reporting period.

Chapter VIII Preferred Shares

□Applicable ?Not Applicable

JMC had no preferred shares in the reporting period.

Chapter IX Bond related Information

□Applicable ?Not Applicable

Chapter X Financial Statements

JIANGLING MOTORS CORPORATION, LTD.

FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2024

[English translation for reference only. Should there be any inconsistency betweenthe Chinese and English versions, the Chinese version shall prevail.]

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 30 JUNE 2024(All amounts in RMB Yuan unless otherwise stated)

Assets	Note	30 June 2024 Consolidated*	31 December 2023 Consolidated	30 June 2024 Company*	31 December 2023 Company
Current assets
Cash and cash equivalents	4(1)	11,043,905,115	11,830,560,675	8,762,470,742	8,697,182,460
Financial assets held for trading	4(2)	200,583,452	200,604,877	-	-
Derivative financial assets	4(3)	4,510,945	-	4,510,945	-
Notes receivable	4(4)	-	14,621,337	500,000,000	700,000,000
Accounts receivable	4(5)、13(1)	4,711,811,192	4,401,826,022	5,865,100,512	4,594,376,160
Financing receivables	4(6)	274,777,232	123,170,062	12,598,753	17,979,578
Advances to suppliers	4(7)	115,585,832	204,358,759	115,585,832	204,358,759
Other receivables	4(8)、13(2)	90,616,478	75,319,848	90,027,657	71,813,906
Inventories	4(9)	2,118,012,490	1,560,259,511	2,110,559,732	1,558,685,526
Current portion of non-current assets	4(11)	16,828,704	15,749,806	14,828,932	14,495,736
Other current assets	4(10)	1,307,258,115	951,659,556	1,008,289,892	731,819,005
Total current assets		19,883,889,555	19,378,130,453	18,483,972,997	16,590,711,130
Non-current assets
Long-term receivables	4(12)	17,082,583	22,775,696	9,224,157	16,699,348
Long-term equity investments	4(13)、13(3)	227,134,693	233,798,348	779,788,623	786,452,278
Fixed assets	4(14)	5,469,283,281	5,389,645,152	5,145,233,915	5,176,956,698
Construction in progress	4(15)	586,821,753	464,431,412	529,955,912	438,083,465
Right-of-use assets	4(16)	190,820,207	194,836,028	178,136,399	183,725,741
Intangible assets	4(17)	1,736,954,077	1,691,021,121	1,518,077,008	1,469,907,538
Development expenditures	4(18)	224,666,128	283,738,155	224,666,128	283,738,155
Goodwill	4(21)	-	-	-	-
Deferred tax assets	4(19)	1,528,691,458	1,472,003,554	30,100,335	185,190,368
Other non-current assets	4(20)	9,334,153	10,807,967	9,334,153	10,807,967
Total non-current assets		9,990,788,333	9,763,057,433	8,424,516,630	8,551,561,558
TOTAL ASSETS		29,874,677,888	29,141,187,886	26,908,489,627	25,142,272,688

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED AND COMPANY BALANCE SHEETS (CONT'D) AS AT 30 JUNE 2024(All amounts in RMB Yuan unless otherwise stated)

note：* Unaudited financial indexes

Liabilities and equity	Note	30 June 2024 Consolidated*	31 December 2023 Consolidated	30 June 2024 Company*	31 December 2023 Company
Current liabilities
Short-term borrowings	4(22)	500,000,000	1,300,000,000	500,000,000	1,300,000,000
Derivative financial liabilities	4(3)	-	459,306	-	459,306
Accounts payable	4(23)	10,503,654,457	9,476,215,223	10,497,008,493	9,475,904,232
Contract liabilities	4(24)	341,737,019	243,740,992	477,791,775	29,190,915
Employee benefits payable	4(25)	697,285,331	890,051,287	616,877,395	788,409,476
Taxes payable	4(26)	120,374,397	118,399,765	116,006,960	97,718,547
Other payables	4(27)	6,461,271,467	5,944,976,093	2,941,278,412	2,377,082,577
Current portion of non-current liabilities	4(28)	102,500,086	93,383,898	94,089,564	86,713,258
Other current liabilities	4(29)	391,701,548	373,948,630	91,638,568	36,085,601
Total current liabilities		19,118,524,305	18,441,175,194	15,334,691,167	14,191,563,912
Non-current liabilities
Long-term borrowings	4(30)	1,166,732	1,391,414	1,166,732	1,391,414
Lease liabilities	4(31)	90,195,237	138,005,943	86,063,597	134,081,724
Provisions	4(32)	332,686,679	315,700,263	1,234,439	-
Deferred income	4(33)	65,025,145	67,601,361	65,025,145	67,601,361
Long-term employee benefits payable	4(34)	50,956,050	52,891,000	50,627,050	52,562,000
Deferred tax liabilities	4(19)	18,971,266	19,256,890	-	-
Other non-current liabilities	4(35)	191,053,046	120,293,201	-	-
Total non-current liabilities		750,054,155	715,140,072	204,116,963	255,636,499
Total liabilities		19,868,578,460	19,156,315,266	15,538,808,130	14,447,200,411
Equity
Share capital	4(36)	863,214,000	863,214,000	863,214,000	863,214,000
Capital surplus	4(37)	839,442,490	839,442,490	839,442,490	839,442,490
Other comprehensive income	4(38)	(20,572,000)	(20,572,000)	(20,979,000)	(20,979,000)
Special reserve		4,601,980	3,821,625	4,601,980	3,821,625
Surplus reserve	4(39)	431,607,000	431,607,000	431,607,000	431,607,000
Retained earnings	4(40)	8,537,674,364	8,232,632,623	9,251,795,027	8,577,966,162
Total equity attributable to shareholders of the Company		10,655,967,834	10,350,145,738	11,369,681,497	10,695,072,277
Minority interests		(649,868,406)	(365,273,118)	-	-
Total equity		10,006,099,428	9,984,872,620	11,369,681,497	10,695,072,277
TOTAL LIABILITIES AND EQUITY		29,874,677,888	29,141,187,886	26,908,489,627	25,142,272,688

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR 2024 FIRST HALF-YEAR(All amounts in RMB Yuan unless otherwise stated)

Item	Note	2024 First Half-year Consolidated*	2023 First Half-year Consolidated*	2024 First Half-year Company*	2023 First Half-year Company*
Revenue	4(41)、13(4)	17,920,065,801	15,429,372,309	17,885,950,058	15,449,037,934
Less: Cost of sales	4(41)、4(47)、13(4)	(15,489,880,688)	(13,282,569,929)	(15,176,367,555)	(12,870,083,505)
Taxes and surcharges	4(42)	(673,383,353)	(440,363,547)	(651,112,639)	(434,553,879)
Selling and distribution expenses	4(43)、4(47)	(617,075,751)	(529,719,611)	(63,278,732)	(64,683,930)
General and administrative expenses	4(44)、4(47)	(460,505,827)	(520,114,941)	(420,738,982)	(470,830,812)
Research and development expenses	4(18)、4(45)、4(47)	(617,237,727)	(748,135,775)	(617,237,727)	(748,135,775)
Financial expenses	4(46)	87,655,467	93,306,361	61,810,235	60,804,106
Including: Interest expenses		(13,395,131)	(17,531,522)	(13,169,162)	(17,378,308)
Interest income		116,562,375	116,473,977	90,256,996	83,081,729
Add: Other income	4(50)	379,965,220	358,643,954	379,781,774	356,955,122
Investment income	4(51)、13(5)	6,108,391	(13,413,788)	3,455,680	(12,981,958)
Including: Share of profit of associates and joint ventures		(2,527,255)	(3,893,639)	(2,527,255)	(3,893,639)
Gains on changes in fair value	4(52)	4,948,826	4,250,063	4,970,251	4,114,063
Credit impairment losses	4(49)	2,387,703	(2,335,878)	(184,716)	(2,164,265)
Asset impairment losses	4(48)	4,296,473	-	4,296,473	-
Gains on disposal of assets	4(53)	10,657,596	(293,630)	10,372,755	(236,732)
Operating profit		558,002,131	348,625,588	1,421,716,875	1,267,240,369
Add: Non-operating income	4(54)	1,134,539	7,042,517	205,746	6,143,130
Less: Non-operating expenses	4(55)	(5,221,095)	(585,439)	(2,565,347)	(536,187)
Total profit		553,915,575	355,082,666	1,419,357,274	1,272,847,312
Less: Income tax expenses	4(56)	56,969,254	91,534,142	(155,090,033)	(125,395,973)
Net profit		610,884,829	446,616,808	1,264,267,241	1,147,451,339
Classified by continuity of operations
Net profit from continuing operations		610,884,829	446,616,808	1,264,267,241	1,147,451,339
Net profit from discontinued operations		-	-	-	-
Classified by ownership of the equity
Minority interests		(284,595,288)	(282,770,749)	-	-
Attributable to shareholders of the Company		895,480,117	729,387,557	1,264,267,241	1,147,451,339
Other comprehensive income, net of tax		-	-	-	-
Attributable to shareholders of the Company
Other comprehensive income items which will not be reclassified to profit or loss
Changes arising from remeasurement of defined benefit plan	4(36)	-	-	-	-
Attributable to minority interests		-	-	-	-
Total comprehensive income		610,884,829	446,616,808	1,264,267,241	1,147,451,339
Attributable to shareholders of the Company		895,480,117	729,387,557	1,264,267,241	1,147,451,339
Attributable to minority		(284,595,288)	(282,770,749)	-	-

interests
Earnings per share
Basic earnings per share (RMB Yuan)	4(57)	1.04	0.84	——	——
Diluted earnings per share (RMB Yuan)	4(57)	1.04	0.84	——	——

note：* Unaudited financial indexes

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR 2024 FIRST HALF-YEAR(All amounts in RMB Yuan unless otherwise stated)

Item	Note	2024 First Half-year Consolidated*	2023 First Half-year Consolidated*	2024 First Half-year Company*	2023 First Half-year Company*
Cash flows generated from operating activities
Cash received from sales of goods or rendering of services		18,941,092,268	17,406,530,446	18,741,276,443	16,222,462,727
Refunds of taxes		164,581,363	304,302,316	164,581,363	304,302,316
Cash received relating to other operating activities	4(58)	118,884,525	405,291,238	95,504,577	387,595,895
Sub-total of cash inflows		19,224,558,156	18,116,124,000	19,001,362,383	16,914,360,938
Cash paid for goods and services		(14,491,870,430)	(12,996,163,395)	(13,973,193,906)	(12,477,732,638)
Cash paid to and on behalf of employees		(1,478,169,089)	(1,214,500,391)	(1,350,502,965)	(1,096,589,996)
Payments of taxes and surcharges		(1,462,969,310)	(1,103,139,617)	(1,420,869,779)	(1,073,581,827)
Cash paid relating to other operating activities	4(58)	(1,058,219,650)	(1,145,172,260)	(642,894,199)	(744,011,957)
Sub-total of cash outflows		(18,491,228,479)	(16,458,975,663)	(17,387,460,849)	(15,391,916,418)
Net cash flows generated from operating activities	4(59)	733,329,677	1,657,148,337	1,613,901,534	1,522,444,520
Cash flows used in investing activities
Cash received from disposal of investments	4(58)	400,000,000	-	-	-
Cash received from returns on investments		6,789,112	-	4,136,400	-
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		9,005,122	795,730	7,544,579	1,676,649
Cash received from disposal of subsidiaries and other business units		-	36,000,000	-	36,000,000
Cash received relating to other investing activities	4(58)	128,144,704	103,235,093	103,696,833	76,225,119
Sub-total of cash inflows		543,938,938	140,030,823	115,377,812	113,901,768
Cash paid to acquire fixed assets, intangible assets and other long-term assets		(832,578,865)	(698,245,427)	(835,883,605)	(696,001,267)
Cash paid to acquire investments	4(58)	(400,000,000)	(100,000,000)	-	(53,167,203)
Cash paid relating to other investing activities		(116,333)	(88,707)	(116,333)	(88,707)
Sub-total of cash outflows		(1,232,695,198)	(798,334,134)	(835,999,938)	(749,257,177)
Net cash flows used in investing activities		(688,756,260)	(658,303,311)	(720,622,126)	(635,355,409)
Cash flows used in financing activities
Cash received from absorbing investments		-	49,000,000	-	-
Including: cash received by the subsidiary from absorbing minority shareholders' investment		-	49,000,000	-	-
Cash received from borrowings		995,542,778	2,586,819,167	995,542,778	2,091,194,167
Cash received from other financing activities		661,625	-	-	-
Sub-total of cash inflows		996,204,403	2,635,819,167	995,542,778	2,091,194,167
Cash repayments of borrowings		(1,802,237,020)	(2,406,409,044)	(1,802,237,020)	(2,406,409,044)
Cash payments for distribution of dividends, profits or interest expenses		(4,455,249)	(3,335,711)	(4,455,249)	(3,335,711)

Cash paid relating to other financing activities	4(58)	(12,923,965)	(509,449,108)	(8,831,429)	(5,865,317)
Sub-total of cash outflows		(1,819,616,234)	(2,919,193,863)	(1,815,523,698)	(2,415,610,072)
Net cash flows used in financing activities		(823,411,831)	(283,374,696)	(819,980,920)	(324,415,905)
Effect of foreign exchange rate changes on cash and cash equivalents		-	-	-	-
Net (decrease)/increase in cash and cash equivalents	4(59)	(778,838,414)	715,470,330	73,298,488	562,673,206
Add: Cash and cash equivalents at beginning of year	4(59)	11,746,518,615	8,543,193,654	8,648,791,242	6,863,577,337
Cash and cash equivalents at end of period	4(59)	10,967,680,201	9,258,663,984	8,722,089,730	7,426,250,543

note：* Unaudited financial indexes

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024(All amounts in RMB Yuan unless otherwise stated)

First half of 2024

Item	Note	Attributable to shareholders of the parent company						Minority interests	Total equity
		Share capital	Capital surplus	Other comprehensive income	Special reserve	Surplus reserves	Retained earnings
Balance at 1 January 2024		863,214,000	839,442,490	(20,572,000)	3,821,625	431,607,000	8,232,632,623	(365,273,118)	9,984,872,620
Movements for the six months ended 30 June 2024*		-	-	-	780,355	-	305,041,741	(284,595,288)	21,226,808
Total comprehensive income
Net profit/(loss)		-	-	-	-	-	895,480,117	(284,595,288)	610,884,829
Other comprehensive income		-	-	-	-	-	-	-	-
Total comprehensive income for the year		-	-	-	-	-	895,480,117	(284,595,288)	610,884,829
Capital contributed by owners and capital decreases
Capital invested by shareholders		-	-	-	-	-	-	-	-
Profit distribution
Distribution to shareholders	4(40)	-	-	-	-	-	(590,438,376)	-	(590,438,376)
Special reserves
Provided		-	-	-	12,307,442	-	-	-	12,307,442
Ultilized		-	-	-	(11,527,087)	-	-	-	(11,527,086)
Balance at 30 June 2024*		863,214,000	839,442,490	(20,572,000)	4,601,980	431,607,000	8,537,674,364	(649,868,406)	10,006,099,428

JIANGLING MOTORS CORPORATION, LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024 (CONT’D)(All amounts in RMB Yuan unless otherwise stated)

First half of 2023

Item	Note	Attributable to shareholders of the parent company						Minority interests	Total equity
		Share capital	Capital surplus	Other comprehensive income	Special reserve	Surplus reserves	Retained earnings
Balance at 1 January 2023		863,214,000	839,442,490	(13,484,250.00)	-	431,607,000	7,123,038,093	(3,170,549)	9,240,646,784
Movements for the six months ended 30 June 2023*		-	-	-	9,394,050	-	363,384,821	(233,770,749)	139,008,122
Total comprehensive income
Net profit/(loss)		-	-	-	-	-	729,387,557	(282,770,749)	446,616,808
Other comprehensive income		-	-	-	-	-	-	-	-
Total comprehensive income for the year		-	-	-	-	-	729,387,557	(282,770,749)	446,616,808
Capital contributed by owners and capital decreases
Capital invested by shareholders		-	-	-	-	-	-	49,000,000	49,000,000
Profit distribution
Distribution to shareholders	4(40)	-	-	-	-	-	(366,002,736)	-	(366,002,736)
Special reserves
Provided		-	-	-	12,877,704	-	-	-	12,877,704
Ultilized		-	-	-	(3,483,654)	-	-	-	(3,483,654)
Balance at 30 June 2023*		863,214,000	839,442,490	(13,484,250)	9,394,050	431,607,000	7,486,422,914	(236,941,298)	9,379,654,906

note：* Unaudited financial indexes

JIANGLING MOTORS CORPORATION, LTD.COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024(All amounts in RMB Yuan unless otherwise stated)

First half of 2024

Item	Note	Share capital	Capital surplus	Other comprehensive income	Special reserve	Surplus reserves	Retained earnings	Total equity
Balance at 1 January 2024		863,214,000	839,442,490	(20,979,000)	3,821,625	431,607,000	8,577,966,162	10,695,072,277
Movements for the six months ended 30 June 2024*		-	-	-	780,355	-	673,828,865	674,609,220
Total comprehensive income
Net profit		-	-	-	-	-	1,264,267,241	1,264,267,241
Other comprehensive income		-	-	-	-	-	-	-
Total comprehensive income for the year		-	-	-	-	-	1,264,267,241	1,264,267,241
Profit distribution
Distribution to shareholders	4(40)	-	-	-	-	-	(590,438,376)	(590,438,376)
Special reserves
Provided		-	-	-	12,307,442	-	-	12,307,442
Ultilized		-	-	-	(11,527,087)	-	-	(11,527,086)
Balance at 30 June 2024*		863,214,000	839,442,490	(20,979,000)	4,601,980	431,607,000	9,251,795,027	11,369,681,497

JIANGLING MOTORS CORPORATION, LTD.COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024 (CONT’D)(All amounts in RMB Yuan unless otherwise stated)

First half of 2023

Item	Note	Share capital	Capital surplus	Other comprehensive income	Special reserve	Surplus reserves	Retained earnings	Total equity
Balance at 1 January 2023		863,214,000	839,442,490	(13,844,250)	-	431,607,000	7,025,176,443	9,145,595,683
Movements for the six months ended 30 June 2023*		-	-	-	9,394,050	-	781,448,603	790,842,653
Total comprehensive income
Net profit		-	-	-	-	-	1,147,451,339	1,147,451,339
Other comprehensive income		-	-	-	-	-	-	-
Total comprehensive income for the year		-	-	-	-	-	1,147,451,339	1,147,451,339
Profit distribution
Distribution to shareholders	4(40)	-	-	-	-	-	(366,002,736)	(366,002,736)
Special reserves
Provided		-	-	-	12,877,704	-	-	12,877,704
Ultilized		-	-	-	(3,483,654)	-	-	(3,483,654)
Balance at 30 June 2023*		863,214,000	839,442,490	(13,844,250)	9,394,050	431,607,000	7,806,625,046	9,936,438,336

note：* Unaudited financial indexes

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

1	General information
	Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors Manufacturing Factory on 16 June 1992. The registration number of the enterprise business license is No. 913600006124469438. The registered address of the Company and the address of its headquarters are both Nanchang City, Jiangxi Province of the People’s Republic of China (“the PRC”).
	On 23 July 1993, with the approval of the China Securities Regulatory Commission (hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of 25,214,000 shares were distributed for the 1993 dividend distribution programme with the approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Office Fu [1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998, with the approval of CSRC (Zheng Jian Fa Zi [1998] No. 19), the Company issued additional 170,000,000 B shares.
	According to the resolution of the shareholders’ meeting regarding the split share structure reform on 11 January 2006, the Company implemented the Scheme on Split Share Structure Reform on 13 February 2006. After the implementation, the Company’s total paid-in capital remains the same. Related details are disclosed in Note 4(36).
	As at 30 June 2024, the Company’s paid-in capital totalled RMB863,214,000, with par value of RMB1 per share.
	The actual principal business scope of the Company and its subsidiaries (hereinafter “the Group”) includes production and sales of automobile assemblies such as automobiles, special (modified) vehicles, engines and chassis and other automobile parts, and provision of related after-sales services; retail and wholesale of imported FORD E series automobiles of Ford Motor (China) Co., Ltd. as the dealer; import and export of automobiles and parts; dealership of used cars; provision of enterprise management and consulting services related to production and sales of automobiles.
	Subsidiaries included in the consolidation scope for the current period are detailed in Note 5.
	These financial statements were authorised for issue by the Company's Board of Directors on 28 August 2024.
2	Summary of significant accounting policies and accounting estimates
	The Group determines specific accounting policies and estimates based on the features of its production and operation, which mainly comprise the measurement of expected credit losses (“ECL”) on receivables (Note 2(8)), valuation of inventories (Note 2(9)), depreciation of fixed assets and amortisation of intangible assets and right-of-use assets (Note 2(11), (14), (22)), criteria for capitalisation of development expenditures (Note 2(14)), impairment of long-term assets (Note2(15)), recognition and measurement of revenue (Note 2(19)), government subsidies (Note2(20)), etc. Key judgements and critical accounting estimates and key assumptions applied by the Group on the determination of significant accounting policies are set out in Note 2(25).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(1)	Basis of preparation
	The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, specific accounting standards and relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereinafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by CSRC. These financial statements have been prepared on a going concern basis.
(2)	Statement of compliance with the Accounting Standards for Business Enterprises
	The financial statements of the Company for for the Six Months Ended 30 June 2024 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and company’s financial position of the Company as at 30 June 2024 and their financial performance, cash flows and other information for the period then ended.
(3)	Fiscal year
	The Company’s fiscal year starts on 1 January and ends on 30 June.
(4)	Recording currency
	The recording currency of the Company and its subsidiaries is Renminbi (“RMB”). The financial statements are presented in RMB.
(5)	Preparation of consolidated financial statements
	The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
	Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(5)	Preparation of consolidated financial statements (Cont’d)
	In preparing the consolidated financial statements, where the accounting policies or the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
	All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ shareholders' equity and the portion of subsidiaries’ net profits and losses and comprehensive income for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive income attributed to minority interests and presented separately in the consolidated financial statements under shareholders' equity, net profits and total comprehensive income respectively. If the subsidiaries’ loss for the current period attributed to the minority shareholders exceeds their share in the opening shareholder’s equity, the excess will be deducted against the minority interests. Unrealised profits and losses resulting from the sales of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of the parent. Unrealised profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary. If the accounting treatment of a transaction is inconsistent in the financial statements at the Group level and at the Company or its subsidiary level, adjustment will be made from the perspective of the Group.
	The Group remeasure the remaining investment held at its fair value in the consolidated statement of financial position when the control is lost because of the partially disposal of the equity or other reasons. The difference between the consideration of the disposal as well as the fair value of the remaining investment and the share of net assets of the former subsidiary calculated based on the original share since the acquisition date as well as the good will is recognised in investment income in the period of control lost. In addition, the other comprehensive income and other changes in owner's equity related to the investment of the former subsidiary, are reclassified to profit or loss when the control is lost, except for the changes arising from remeasurement of net liabilities or net assets of defined benefit, the accumulated changes in fair value from the equity instruments not held for trading and designated as financial assets at fair value through other comprehensive income by the investee.
(6)	Cash and cash equivalents
	Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(7)	Foreign currency translation
	Foreign currency transactions
	Foreign currency transactions are translated into recording currency using the exchange rates prevailing at the dates of the transactions.
	At the balance sheet date, monetary items denominated in foreign currencies are translated into recording currency using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

(8)	Financial instruments
	A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument.
(a)	Financial assets
(i)	Classification and measurement
	Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, financial assets are classified as: (1) financial assets at amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.
	The financial assets are measured at fair value at initial recognition. Related transaction costs that are attributable to the acquisition of the financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss, the related transaction costs of which are recognised directly in profit or loss for the current period. Accounts receivable or notes receivable arising from sales of products or rendering of services (excluding or without regard to significant financing components) are initially recognised at the consideration that is entitled to be charged by the Group as expected.
	Debt instruments
	The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of the issuer, and are measured in the following three ways:

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

	Measured at amortised cost:
	The objective of the Group’s business model is to hold the financial assets to collect the contractual cash flows, and the contractual cash flow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates to the contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financial assets is recognised using the effective interest method. Such financial assets mainly include cash at bank and on hand, notes receivable, accounts receivable, other receivables and long-term receivables, etc. The Group presents long-term receivables that are due within one year from the balance sheet date (including one year) as non-current assets due within one year.

	Measured at fair value through other comprehensive income:
	The objective of the Group’s business model is to hold the financial assets to both collect the contractual cash flows and sell such financial assets, and the contractual cash flow characteristics are consistent with a basic lending arrangement. Such financial assets are measured at fair value through other comprehensive income, except for the impairment gains or losses, foreign exchange gains and losses, and interest income calculated using the effective interest method which are recognised in profit or loss for the current period. Such financial assets mainly include financing receivables, etc.
	Measured at fair value through profit or loss:
	Debt instruments held by the Group that are not divided into those at amortised cost, or those measured at fair value through other comprehensive income, are measured at fair value through profit or loss. At initial recognition, the Group does not designate a portion of financial assets as at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Financial assets that are due in more than one year as from the balance sheet date and are expected to be held for over one year are included in other non-current financial assets, and the others are included in financial assets held for trading.

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(8)	Financial instruments (Cont’d)
(a)	Financial assets (Cont’d)
(i)	Classification and measurement (Cont’d)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(8)	Financial instruments (Cont’d)
(a)	Financial assets (Cont’d)
(ii)	Impairment
	Loss provision for financial assets at amortised cost and receivables financing at fair value through other comprehensive income is recognised on the basis of ECL.
	Giving consideration to reasonable and supportable information that is related to past events, current conditions and forecasts of future economic conditions and is available without undue cost or effort at the balance sheet date, as well as the default risk weight, the Group recognises the ECL as the probability-weighted amount of the present value of the difference between the cash flows receivable from the contract and the cash flows expected to collect.
	For notes receivable, accounts receivable and financing receivables arising from sales of goods and rendering of services in the ordinary course of operating activities, the Group recognises the lifetime ECL regardless of whether there exists a significant financing component.
	Except for the above-mentioned notes receivable, accounts receivable and financing receivables, as at each balance sheet date, the ECL of financial instruments at different stages are measured respectively. 12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase in credit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instruments in Stage 3 that have had credit impairment since initial recognition.
	For the financial instruments with low credit risk on the balance sheet date, the Group assumes there is no significant increase in credit risk and identifies it in Stage 1 since initial recognition and recognises the 12-month ECL provision.
	For the financial instruments in Stage 1 and Stage 2, the Group calculates the interest income by applying the effective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument in Stage 3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of the impairment provision from the gross carrying amount).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(8)	Financial instruments (Cont’d)
(a)	Financial assets (Cont’d)
(ii)	Impairment (Cont’d)
	The credit risk characteristics of various financial assets where the ECL is calculated individually are significantly different from those of other financial assets in this category. In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable cost, the Group divides the receivables into certain groupings based on credit risk characteristics and calculates the ECL for the groupings. Basis for determining groupings and related provision methods are as follows:
	Grouping - Bank acceptance notes	State-owned banks and joint stock banks
	Grouping - Trade acceptance notes	Customers purchasing using trade acceptance notes
	Grouping - Domestic sales of general automobiles	Domestic customers of general automobiles, with the aging calculated from the overdue date
	Grouping - Export sales of general automobiles	Overseas customers of export general automobiles, with the aging calculated from the overdue date
	Grouping - Sales of new energy automobiles	Customers of new energy automobiles, with the aging calculated from the overdue date
	Grouping - Sales of automobile parts	Customers of automobile parts, with the aging calculated from the overdue date
	Grouping - Other receivables	Other receivables with the same nature
	For accounts receivable classified as a portfolio and notes receivable and financing receivables resulting from daily operating activities such as sale of goods and provision of services, the Group calculates the ECL with reference to historical credit losses experience, current conditions and forecasts of future economic conditions, and based on the exposure at default and the lifetime ECL rate. For other notes receivable, financing receivables and other receivables classified into groupings, the Group calculates the ECL with reference to the historical credit loss experience, current conditions and forecasts of future economic conditions, and based on the exposure at default and the 12-month or lifetime ECL rate.
	The Group recognises the loss provision made or reversed into profit or loss for the current period. For debt instruments held at fair value through other comprehensive income, the Group adjusts other comprehensive income while the impairment loss or gain is recognised in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(8)	Financial instruments (Cont’d)
(a)	Financial assets (Cont’d)
(iii)	Derecognition
	A financial asset is derecognised when: (i) the contractual rights to the cash flows from the financial asset expire, (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee, or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset. When a financial asset is derecognised, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that are previously recognised directly in other comprehensive income is recognised in profit or loss for the current period.
(b)	Financial liabilities
	Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at initial recognition. Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, including notes payable, accounts payable, other payables, borrowings, etc. Such financial liabilities are initially recognised at fair value, net of transaction costs incurred, and subsequently measured using the effective interest method. Financial liabilities that are due within one year (inclusive) are classified as current liabilities; those with maturities over one year but are due within one year (inclusive) as from the balance sheet date are classified as current portion of non-current liabilities. Others are classified as non-current liabilities.
	A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged. The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(8)	Financial instruments (Cont’d)
(c)	Determination of fair value of financial instruments
	The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation, the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other information, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available or feasible, unobservable inputs are adopted.

(9)	Inventories
(a)	Classification
	Inventories include raw materials, work-in-process, finished goods, low-value consumables, materials in transit and materials on consignment, etc., and are measured at the lower of cost or net realizable value.
(b)	Costing of inventories
	Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials, direct labour and systematically allocated production overhead based on the normal production capacity.
(c)	Basis for determining net realisable value of inventories and method for making provision for inventories
	Provision for inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion, estimated contract fulfilment costs and estimated costs necessary to make the sale and related taxes. The provision for decline in the value of inventories relating to inventories that are produced and sold in the same region and with the same or similar end uses or purposes, is determined on an aggregate basis. The Group makes provision for decline in the value of inventories based on factors including sales.
(d)	The Group adopts the perpetual inventory system.
(e)	Amortisation method of low value consumables
	Low value consumables are amortised into expenses in full when issued for use.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(10)	Long-term equity investments
	Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its associates.
	Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has a significant influence on their financial and operating decisions.
	Investments in subsidiaries are presented using the cost method in the Company’s financial statements, and adjusted to the equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity method.
(a)	Determination of investment cost
	For long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at the combination date; for long-term equity investments acquired through a business combination not involving enterprises under common control, the investment cost shall be the combination cost. For long-term equity investments acquired not through a business combination, such as long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued.
(b)	Subsequent measurement and recognition of profit or loss
	Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividend or profit distribution declared by an investee is recognised as investment income into profit or loss for the current period.
	For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at that cost. Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(10)	Long-term equity investments (Cont’d)
(b)	Subsequent measurement and recognition of profit or loss (Cont’d)
	For long-term equity investments accounted for using the equity method, the Group recognises the investment income or losses according to its share of net profit or loss of the investee. The Group does not recognise further losses when the carrying amounts of the long-term equity investment together with any long-term interests that, in substance, form part of the Group’s net investment in investees are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions are satisfied, the Group continues recognising the investment losses and the provisions at the amount it expects to undertake. The Group’s share of the changes in investee’s owner's equity other than those arising from the net profit or loss, other comprehensive income and profit distribution is recognised in capital surplus with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by the investees. Unrealised gains or losses on transactions between the Group and its investees are eliminated to the extent of the Group’s equity interest in the investees, based on which the investment income or losses in the Company’s financial statements are recognised. When preparing consolidated financial statements, for the portion of unrealised gains and losses of internal transaction attributable to the Group arising from downstream transactions in which the Group invests in or sells assets to the investees, the Group shall, on the basis of offsetting the Company's financial statements, offset the portion of unrealised revenue and costs or asset disposal gains and losses attributable to the Group, and adjust investment income accordingly; for the unrealised gains and losses of internal transaction attributable to the Group arising from the upstream transactions in which the investees invest in or sell assets to the Group, the Group shall, on the basis of offsetting the Company's financial statements, offset the portion of unrealised gains and losses of internal transaction included in the carrying amount of the relevant assets, and adjust the carrying amount of long-term equity investments accordingly. Any losses resulting from transactions between the Group and its investees, which are attributable to asset impairment losses are not eliminated.
(c)	Basis for determining existence of control and significant influence over investees
	Control is the power over investees that can bring variable returns through involvement in related activities of investees and the ability to influence the returns by using such power over investees.
	Significant influence is the power to participate in making decisions on financial and operating policies of the investee but is not control or joint control over making those policies.
(d)	Impairment of long-term equity investments
	The carrying amounts of long-term equity investments in subsidiaries and associates is reduced to the recoverable amounts when the recoverable amounts are below their carrying amount (Note 2(15)).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(11)	Fixed assets
(a)	Recognition and initial measurement of fixed assets
	Fixed assets comprise buildings, machinery and equipment, vehicles, moulds, and electronic and other equipment.
	Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. The fixed assets contributed by the state-owned shareholders upon the restructuring of the Company are recorded at the valued amount determined by the state-owned asset administration department.

	Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b)	Depreciation methods of fixed assets
	Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated net residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
	The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:
		Estimated useful lives	Estimated net residual values	Annual depreciation rates
	Buildings	35 to 40 years	4%	2.4% to 2.7%
	Machinery and equipment	10 to 15 years	4%	6.4% to 9.6%
	Vehicles	2 to 10 years	4% - 20%	9.6% to 42.2%
	Moulds	5 years	-	20%
	Electronic and other equipment	5 to 7 years	4%	13.7% to 19.2%
	The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed and adjusted as appropriate at each year-end.
(c)	The carrying amount of a fixed asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(15)).
(d)	Disposal of fixed assets
	A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(12)	Construction in progress
	Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(15)).
(13)	Borrowing costs
	The borrowing costs that are directly attributable to acquisition and construction of an asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
	The capitalised amount of specific borrowings intended to be used for the acquisition and construction of qualifying assets is determined by the interest expenses incurred in the current period less interest income of the unused borrowings deposited at banks or investment income from temporary investments.
	The capitalised amount of general borrowings intended to be used for the acquisition or construction of qualifying assets is determined by the weighted average of the excess of accumulated capital expenditure over capital expenditure of the special borrowings multiplied by the weighted average effective interest rate of the utilised general borrowings. The effective interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
(14)	Intangible assets
	Intangible assets include land use rights, software use fees, non-patent technologies and after-sales service management mode, are measured at cost.
(a)	Land use rights
	Land use rights are amortised on the straight-line basis over their approved use period of 50 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(14)	Intangible assets (Cont’d)
(b)	Software use fees
	Software use fees are amortised on a straight-line basis over the estimated useful life of 5 years.
(c)	Non-patent technologies
	Non-patent technologies are amortised on the straight-line basis over the estimated useful life of 5 to 7 years.
(d)	Periodical review of useful life and amortisation method
	For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made appropriately.
(e)	Research and development
	The expenditure on research and development of the Group mainly include materials consumed for research and development activities, employee benefits of research and development departments, depreciation and amortisation of assets such as equipment and software used for research and development, research and development design fees and research and development testing expenses.
	Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique of automobile products is recognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase related to the design and testing phase in regard to the final application of manufacturing technique of automobile products is capitalised only if all of the following conditions are satisfied: ? the development of manufacturing technique of automobile products has been fully demonstrated by technical team; ? management intends to complete the development of manufacturing technique of automobile products, and use or sell it; ? the research and analysis of preliminary market survey indicate that products manufactured with manufacturing technique of automobile products are marketable; ? adequate technical and financial supports are available for development of manufacturing techniques of automobile products and subsequent mass production; and ? expenditure on development of manufacturing techniques of automobile products can be reliably collected.
	Other expenditures on the development phase that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development expenditures previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development expenditures in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(14)	Intangible assets (Cont’d)
(f)	Impairment of intangible assets
	The carrying amounts of intangible assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(15)).
(15)	Impairment of long-term assets
	Fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful lives and long-term equity investments in subsidiaries and associates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible assets that are not yet available for their intended use are tested for impairment at least once a year, irrespective of whether there is any indication of impairment. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less disposal costs and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
	Goodwill that is separately presented in the financial statements is tested at least once a year for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying amount of goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill.
	Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
(16)	Employee benefits
	Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship, which include short-term employee benefits, post-employment benefits, termination benefits, etc.
(a)	Short-term employee benefits
	Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance, housing funds, union running costs and employee education costs, short-term paid absences, etc. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary benefits are measured at fair value.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(16)	Employee benefits (Cont'd)
(b)	Post-employment benefits
	The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, premiums or contributions on basic pensions and unemployment insurance paid for employees belong to defined contribution plans; supplementary retirement benefits for employees are defined benefit plans.
(i)	Defined contribution plans
	Basic pensions
	The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resources and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
(ii)	Defined benefit plans
	The Group also provides employees with supplementary retirement benefits in addition to the insurance system prescribed by the State. Such supplementary retirement benefits belong to defined benefit plans. The defined benefit liabilities recognised on the balance sheet represent the present value of defined benefit obligations less the fair value of the plan assets. The defined benefit obligations are calculated annually by an independent actuary using projected unit credit method at the interest rate of treasury bonds with similar obligation term and currency. Service costs related to supplementary retirement benefits (including current service costs, historical service costs and settled gains or losses) and net interest are recognised in profit or loss for the current period or the cost of related assets, and changes arising from remeasurement of net liabilities or net assets of defined benefit plans are recognised in other comprehensive income.
(c)	Termination benefits
	The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(16)	Employee benefits (Cont'd)
(c)	Termination benefits (Cont’d)
	Early retirement benefits
	The Group offers early retirement benefits to those employees who accept early retirement arrangements. The early retirement benefits refer to the salaries and social security contributions to be paid to and for the employees who accept voluntary retirement before the normal retirement date prescribed by the State, as approved by the management. The Group pays early retirement benefits to those early retired employees from the early retirement date until the normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits, in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period. The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefit standards are recognised in profit or loss in the period in which they occur.
	The termination benefits expected to be settled within one year since the balance sheet date are classified as employee benefits payable.
(17)	Dividend distribution
	Cash dividends are recognised as liabilities in the period in which the dividends are approved at the shareholders’ meeting.
(18)	Provisions
	Provisions for product warranties, compensation to suppliers, etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.
	A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors on a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.
	The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
	The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(19)	Revenue
	The Group sells automobiles and automobile parts to distributors or end customers. In addition, the Group also provides customers with auto maintenance and additional quality warranty services. The Group recognises revenue at the amount of the consideration that is entitled to be charged by the Group as expected when the customer obtains control over relevant goods or services.
	Where two or more obligations are included in a contract between the Group and the customers, at the beginning date of the contract, the Group allocates the transaction price to individual obligation in the relative proportion to the individual selling prices of products or services committed in each individual obligation. When the individual selling price is unobservable, the Group makes reasonable estimates on the individual selling price with comprehensive consideration to all available information, and by using market adjustment method, cost plus method, etc.
(a)	Sale of automobiles and automobile parts to distributors and end customers
	The Group sells automobiles and automobile parts to distributors and end customers. According to the contract, the delivery is completed after the products are delivered at the contracted delivery location and acceptance by both parties. The Group recognises the revenue at the timing of delivery completion. The credit periods granted by the Group to distributors and end customers are generally within one year, which is consistent with the industry practice, and there is no significant financing component. The Group provides product warranties for automobiles and automobile parts as required by laws and regulations and recognises the corresponding provisions (Note 2(18)). The Group provides distributors and end customers with sales discounts based on sales volume, and related revenue is recognised at contract consideration net of the discount amount estimated based on historical experience and using the expected value method.
(b)	Rendering of services
	The Group provides customers with automobile transportation, automobile maintenance and additional quality warranty services, and the revenue is recognised based on the progress of service provision within a certain period. According to the nature of the service provided, the performance progress is determined in accordance with the value of the labour provided to the customer.
	When the Group recognises revenue based on the stage of completion, the amount with unconditional collection right obtained by the Group is recognised as accounts receivable, and the rest is recognised as contract assets. Meanwhile, loss provision for accounts receivable and contract assets are recognised on the basis of ECL (Note 2(8)). If the contract price received or receivable exceeds the amount for the completed service, the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(20)	Government grants
	Government grants refer to the monetary or non-monetary assets obtained by the Group from the government at no consideration, including support funds for enterprise development, financial subsidies, etc.
	Government grants are recognised when the grants can be received, and the Group can comply with all attached conditions. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will be measured at its nominal amount.
	Government grants related to assets refer to government grants which are obtained by the Group for the purposes of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to the government grants other than those related to assets.
	Government grants related to assets are recorded as deferred income and recognised in profit or loss on a reasonable and systemic basis over the useful lives of the assets. Government grants related to income that compensate future costs, expenses or losses are recorded as deferred income and recognised in profit or loss in reporting the related expenses; government grants related to income that compensate incurred costs, expenses or losses are recognised in profit or loss directly in the current period.
	The Group applies the presentation method consistently to the similar government grants in the financial statements.
	Government grants that are related to ordinary activities are included in operating profit, otherwise, they are recorded in non-operating income.
	The Group recorded at the actual amount of borrowings when received the loans at policy-based preferential interest rates received and the related borrowing costs are calculated on the basis of the principal amount borrowed and the preferential interest rate under the policy.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(21)	Deferred tax assets and deferred tax liabilities
	Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for a temporary difference arising from the initial recognition of assets or liabilities due to a transaction other than a business combination where the initial recognition of assets or liabilities does not result in equal taxable temporary differences and deductible temporary differences, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
	Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
	Deferred tax liabilities are recognised for taxable temporary differences arising from investments in subsidiaries and associates, except where the Group is able to control the timing of reversal of such temporary differences, and it is probable that the temporary differences will not reverse in the foreseeable future. When it is probable that the deductible temporary differences arising from investments in subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the deductible temporary differences can be utilised, the corresponding deferred tax assets are recognised.
	Deferred tax assets and deferred tax liabilities are offset when: ? the deferred tax assets and deferred tax liabilities are related to the same taxpayer within the Group and the same taxation authority; and ? that taxpayer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
(22)	Leases
	A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(22)	Leases (Cont’d)
	The Group as the lessee
	At the commencement date, the Group shall recognise the right-of-use asset and measure the lease liabilities at the present value of the lease payments that are not paid at that date. Lease payments include fixed payments, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease if the lessee exercises an option to terminate the lease. Variable lease payments in proportion to sales are excluded from lease payments and recognised in profit or loss as incurred. Lease liabilities that are due within one year (inclusive) as from the balance sheet date are included in the current portion of non-current liabilities.
	The Group's right-of-use assets represent leased buildings. Right-of-use assets are measured initially at cost which comprises the amount of the initial measurement of lease liabilities, any lease payments made at or before the commencement date and any initially direct costs, less any lease incentives received. If it is reasonably probable that the Group will obtain ownership of the underlying asset by the end of the lease term, the asset is depreciated over its remaining useful life; otherwise, the asset is depreciated over the shorter of the lease term and its remaining useful life. The carrying amounts of the right-of- use assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(15)).
	For short-term leases with a term of 12 months or less and leases of an individual asset (when new) of low value, the Group may, instead of recognising right-of-use assets and lease liabilities, recognise the lease payments in the cost of the underlying assets or in profit or loss for the current period on a straight-line basis over the lease term.
	The Group shall account for a lease modification as a separate lease if both: (1) the modification extends the scope of the lease by adding the right to use one or more underlying assets; (2) the increased consideration is equivalent to the amount of the individual price of the expanded part of the lease scope adjusted according to the contract conditions.
	For a lease modification that is not accounted for as a separate lease, the Group shall redetermine the lease term at the effective date of the lease modification and remeasure the lease liability by discounting the revised lease payments using a revised discount rate, except for the contract changes that may apply the simplified method as specified by the Ministry of Finance. For a lease modification which narrows the scope of the lease or shortens the lease term, the Group decreases the carrying amount of the right-of-use asset and recognises in profit or loss any gain or loss relating to the partial or full termination of the lease. For other changes which lead to the remeasurement of lease liabilities, the Group correspondingly adjusts the carrying amount of the right-of-use asset.
	For the qualified rental waivers on existing lease contracts, the Group applies the simplified method, records the undiscounted waivers in profit or loss and adjusts lease liability when the agreement is reached to dismiss the original payment obligation.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(22)	Leases (Cont'd)
	The Group as the lessor
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. An operating lease is a lease other than a finance lease.
(a)	Operating lease
	The Group leases out self-owned buildings and vehicles under operating leases, rental income is recognised on a straight-line basis over the lease term.
(b)	Finance lease
	At the commencement date of the lease term, the Group recognizes finance lease receivables and derecognizes the related assets for finance lease. The Group presents finance lease receivables as long-term receivables and finance lease receivables collected within one year (including one year) from the balance sheet date as non-current assets due within one year.

(23)	Specific reserve
	According to the decision of the State Council on Further Strengthening the work of production safety (Guo Fa [2004] No. 2), the Circular of the State Council on Further Strengthening the Work of Enterprise Production Safety (Guo Fa [2010] No. 23 ) and the Measures for the Administration of the Extraction and Use of Enterprise Production Safety Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency Response in December 2022, the Group extracted safety production costs at a certain percentage of its operating revenue in the previous year, which is specifically used for safety costs.
	The Group's production safety expenses, which are extracted in accordance with the aforementioned national regulations, are included in the cost of relevant products or current profit or loss and are also included in special reserves.
	When the safety fund is subsequently used for revenue expenditure, the specific reserve is reduced accordingly. On utilisation of the safety fund for fixed assets, the specific reserve is reduced as the fixed assets are recognised, which is the time when the related assets are ready for their intended use; in such cases, an amount that corresponds to the reduction in the specific reserve is recognised in accumulated depreciation with respect to the related fixed assets. As a consequence, such fixed assets are not depreciated in subsequent periods.

(24)	Segment information
	The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(24)	Segment information (Cont’d)
	An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. Two or more operating segments that have similar economic characteristics and satisfy certain conditions can be aggregated into one single operating segment.
(25)	Critical accounting estimates and judgements
	The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a)	Critical judgements in applying the accounting policies
(i)	Classification of financial assets
	Significant judgements made by the Group in the classification of financial assets include business models and analysis on contractual cash flow characteristics.
	The Group determines the business model for financial assets management on the group basis, and factors to be considered include the methods for evaluating the financial assets performance and reporting such performance to key management personnel, the risks relating to the financial asset’s performance and corresponding management methods, the ways in which related business management personnel are remunerated, etc.
	When assessing whether contractual cash flow characteristics of financial assets are consistent with basic lending arrangement, key judgements made by the Group include: the possibility of changes in time schedule or amount of the principal during the lifetime due to reasons such as repayment in advance; whether interest only includes time value of money, credit risks, other basic lending risks and considerations for costs and profits. For example, whether the repayment in advance only reflects the principal outstanding and corresponding interest and reasonable compensation paid for early termination of the contract.
(ii)	Judgement on significant increase in credit risk and occurrence of credit impairment
	When the Group distinguishes the different stages of financial instruments, its judgement on significant increase in credit risk and occurrence of credit impairment is as follows:
	Judgement made by the Group for significant increase in credit risk is mainly based on whether the overdue days exceed 30 days, or whether one or more of the following indicators change significantly: business environment of the debtor, internal and external credit rating, significant changes in actual or expected operating results, significant decrease in value of collateral or credit rate of guarantor, etc.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(25)	Critical accounting estimates and judgements (Cont’d)
(a)	Critical judgements in applying the accounting policies (Cont’d)
(ii)	Judgement on significant increase in credit risk and occurrence of credit impairment (Cont’d)
	Judgement made by the Group for the occurrence of credit impairment is mainly based on whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or more of the following conditions is/are satisfied: the debtor is suffering significant financial difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes bankrupt, etc.
(iii)	Judgement on capitalisation of development expenditures
	Development expenditures are capitalised when the criteria in Note 2(14)(e) are fulfilled. The assessments on whether the criteria for capitalisation of development expenditures have been met involve judgements of the Group, including the technical feasibility of the project, the likelihood of the project generating sufficient future economic benefits and the timing to start capitalisation particularly. The Group makes the judgements on the capitalisation of development expenditures and records the process in meeting minutes based on feasibility analysis, regular review on the development project phase, etc.
(iv)	Timing of revenue recognition
	The Group sells automobiles and automobile parts to distributors or end customers. According to the contract, the delivery is completed after the products are delivered at the contracted delivery location and acceptance by both parties. Thereafter, the distributors or end customers own the products, have the right to set prices independently, and bear the risks from price fluctuation or damage of the products. The distributors or end customers have obtained the control of the products after accepting the products. The Group recognises the revenue at the timing of the delivery completion.
(v)	Sales with product warranties
	The Group provides statutory warranty for automobiles and automobile parts, and the periods and terms of such warranty comply with the requirements of laws and regulations related to the products. The Group does not provide any significant additional service or additional warranty for this purpose; thus this kind of warranty cannot be identified as a separate performance obligation. In addition, the Group also offers additional warranty other than the requirements of laws and regulations, which is identified as a separate performance obligation. The Group recognises the revenue of the additional warranty over time during the period when services are rendered.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(25)	Critical accounting estimates and judgements (Cont’d)
(b)	Critical accounting estimates and key assumptions
	The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year are outlined below:
(i)	Measurement of ECL
	The Group calculates ECL through default risk exposure and ECL rate and determines the ECL rate based on default probability and default loss rate or aging matrix. In determining the ECL rate, the Group uses data such as internal historical credit loss experience, etc., and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information, the Group takes different macroeconomic scenarios into consideration. For the six months ended 30 June 2024, the weights of “base”, “bad” and “good” are 68%, 16% and 16% (2023: 68%, 16% and 16%) under three economic scenarios respectively for the consideration of forward-looking information. The Group regularly monitors, and reviews important macroeconomic assumptions and parameters related to the calculation of ECL rate, including the risks of economic downturn, external market environment, changes of technological environment and customer, gross domestic product, consumer price index, broad money supply and nominal interest rate. For the six months ended 30 June 2024, the Group has considered the uncertainty under different macroeconomic scenarios and updated relevant assumptions and parameters accordingly. The key macroeconomic parameters used in each scenario are listed as follows:
		Scenarios
		Base	Bad	Good
	Broad money supply	8.58%	8.06%	9.11%
	Consumer price index	5.08%	2.83%	7.34%
	Nominal interest rate	0.11%	0.23%	-0.01%

	In the first half of 2024, the key macroeconomic parameters used in each scenario are listed below:
		Scenarios
		Base	Bad	Good
	Gross domestic product	4.56%	2.02%	7.11%
	Consumer price index	3.45%	-33.12%	40.02%

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(25)	Critical accounting estimates and judgements (Cont’d)
(b)	Critical accounting estimates and key assumptions (Cont’d)
(ii)	Accounting estimate on provision for impairment of long-term assets
	When the Group performs impairment tests for long-term assets if there is any indication that the long-term assets may be impaired, if the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is the higher of the fair value less the cost of disposal and the present value of the future cash flows expected to be derived from the asset. These calculations require the use of estimates (Note 4(13), Note 4(14), Note 4(17) and Note 13(3)). When the Group uses the present value of estimated future cash flows to determine the recoverable amount, as there are uncertainties about the development of economic environment in which the relevant region is situated, the revenue growth rate, the gross profit margin rate and the pre-tax discount rate used in calculating the present value of estimated future cash flows are also subject to uncertainties. If management revises the growth rate, the gross margin rate and the pre-tax discount rate that is used in the calculation of the future cash flows of related asset groups, and the revised rate is lower than the current rate, the Group would need to recognise further impairment against related assets. If the actual growth rate, the gross profit margin rate are higher than management’s estimates or the actual pre-tax discount rate is lower than management’s estimates, the impairment loss of related assets previously recognised is not allowed to be reversed by the Group.
	When the Group uses the fair value less disposal costs to determine the recoverable amount, the recoverable amount is determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly attributable to the disposal of the asset. Where there is no sales agreement but there is an active market of assets, the amount is determined by the market price less the costs that are directly attributable to the disposal of the asset. The market price of assets is determined by the considerations provided by the buyer. Where there is no sales agreement or active market of assets, the amount of an asset’s fair value less disposal costs was determined based on the best information available.
	Disposal costs include legal cost, taxes and handling fee related to asset disposal, and direct costs incurred to bring the assets to a saleable state.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(25)	Critical accounting estimates and judgements (Cont’d)
(b)	Critical accounting estimates and key assumptions (Cont’d)

(iii)	Income tax and deferred income tax (Cont’d)
	The Group is subject to enterprise income tax in multiple regions. There are some transactions and events for which the ultimate tax treatment is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes in each of these regions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
	As stated in Note 3(2), the Company is a high-tech enterprise. The “High-Tech Enterprise Certificate” is effective for three years. Upon expiration, application for high-tech enterprise assessment should be submitted again to the relevant government authorities. Based on the past experience of reassessment for high-tech enterprise upon expiration and its actual conditions, the Company considers that it is able to obtain the qualification for high- tech enterprises in the next three years, and therefore a preferential tax rate of 15% is used to calculate the corresponding deferred income tax. If the Company cannot obtain the qualification for high-tech enterprise upon expiration, then the Company is subject to a statutory tax rate of 25% for the calculation of income tax, which further influences the recognised deferred tax assets, deferred tax liabilities and income tax expenses.
	Deferred tax assets are recognised for the deductible tax losses that can be carried forward to subsequent years to the extent that it is probable that taxable profit will be available in the future against which the deductible tax losses can be utilised. Taxable profit that will be available in the future includes the taxable profit that will be realised through ordinary course of business and the taxable profit that will be increased upon the future reversal of taxable temporary differences incurred in prior periods. Judgements and estimates are required to determine the time and amounts of taxable profit in the future. Any difference between the reality and the estimate may result in adjustment to the carrying amount of deferred tax assets.
(iv)	Provisions
	The Group undertakes after-sales repair or replacement obligations for automobiles sold based on the after-sales service agreement. Management estimates related provisions based on historical after-sales service data, including the repair and replacement provided as well as current trends. Factors that may impact the estimation of warranty costs include improvement of the Group’s productivity and production quality, as well as changes in related parts and labour costs. Any increase or decrease in provisions will have impact on profit or loss of the Group in the future.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2	Summary of significant accounting policies and accounting estimates (Cont’d)
(25)	Critical accounting estimates and judgements (Cont’d)
(b)	Critical accounting estimates and key assumptions (Cont’d)

(v)	Provision for decline in the value of inventories
	The Group's inventories are stated at the lower of cost and net realisable value. Net realisable value of inventories is the amount of the estimated selling price in the ordinary course of business, less the estimated costs to completion, estimated contract performance costs, estimated costs necessary to make the sales and related taxes.
	If the management revises the estimated selling price of the inventory, the estimated costs to be incurred by the time of completion, and the estimated selling and distribution expenses and related taxes, the revised estimated selling price is lower than the currently adopted estimated selling price, or the revised until The estimated costs, estimated contract performance costs, sales expenses, and related taxes and fees at the completion of the project are higher than the currently adopted estimates, the Group needs to make provision for decline in the value of inventory.
	If the actual selling prices, costs to completion, estimated contract performance costs, selling and distribution expenses and related taxes are higher or lower than management’s estimates, the Group shall recognise the relevant differences in the consolidated income statement during the corresponding accounting period.

(26)
						Impact amount
						Six months ended 30 June, 2023
						the Company
						(7,777,286)
						7,777,286

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

3	Taxation
(1)	The main categories and rates of taxes applicable to the Group are set out below:
	Category	Taxation basis	Tax rate
	Enterprise income tax (a)	Taxable income	15% and 25%
	Value-added tax (“VAT”) (b)	Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible input VAT of the current period)	13%, 9% and 6%
	Consumption tax (c)	Taxable sales amount	3%, 5% and 9%
	City maintenance and construction tax (d)	The payment amount of VAT and consumption tax	5% and 7%
(a)	Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by the State Taxation Administration and relevant regulations, during the period from 1 January 2018 to 30 June 2024, the cost of newly purchased equipment with the original cost less than RMB5 million can be fully deducted against taxable profit in the next month after the asset is put into use, instead of being depreciated annually for tax filing.
(b)	Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform (Announcement [2019] No. 39) and relevant regulations jointly issued by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs, the Group’s taxable products sales revenue is subject to the VAT at the rate of 13%. The Group's real estate leasing business is subject to the VAT at the rate of 9% and revenue from provision of technical service to external parties is subject to VAT at the rate of 6%.
(c)	Pursuant to the Interim Regulations of the People's Republic of China on Consumption Tax promulgated by the State Council (Order No. 539 of the State Council of the People's Republic of China) and the Notice of Ministry of Finance and State Taxation Administration on Adjusting Consumption Tax Policies for Passenger Cars (Cai Shui [2008] No. 105), the consumption tax rates of the Group's taxable products are 3%, 5% and 9%.
(d)	Pursuant to the Circular of the State Council on Unifying the Collection of City Maintenance and Construction Tax and Educational Surcharge on Domestic and Foreign-Owned Enterprises and Individuals (Guo Fa [2010] No. 35) issued by the State Council, the Group is subject to city maintenance and construction tax at the rates of 5% and 7%.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

3	Taxation (Cont’d)
(2)	Tax preference
(a)	Pursuant to the Circular on the Announcement of the First Batch of High-Tech Enterprises of Jiangxi Province for the year 2021 (Gan Gao Qi Ren Ban [2021] No. 8), the Company is certified as a high-tech enterprise, and the valid term is three years. During the period from 1 January 2021 to 31 December 2023, the Company was subject to enterprise income tax at the rate of 15%. At present, the company is re-identified as a high-tech enterprise.
	In the first half year of 2024, except for the Company, the Company’s wholly-owned companies, including JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New Energy Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of 25% (2023: 25%).
(b)	Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry of Finance and the State Taxation Administration, the Company, as an advanced manufacturing enterprise, is allowed to offset against the VAT payable by the 1.05 times amount of input tax deductible in the current period from 1 January 2023 to 31 December 2027.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements
(1)	Cash at bank and on hand
		30 June 2024		31 December 2023
	Cash at bank	9,683,853,944		10,653,646,811
	Cash at finance company (a) (Note 7(6))	1,283,826,257		1,092,871,804
	Other cash and cash equivalents (b)	18,760,506		20,854,424
	Interest receivable	57,464,408		63,187,636
		11,043,905,115		11,830,560,675
(a)	As at 30 June 2024, the group's bank deposit with Jiangling Automobile Group Finance Co, Ltd. was RMB1,283,826,257. The Group's bank deposits placed with Jiangling Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of 1.35% - 2.25% (31 December 2023: 0.455% - 2.25%) on RMB deposits for the same period. JMCF, a wholly-owned subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking financial institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co., Ltd. (“JIC”), a main shareholder of the Company.
(b)	Other cash and cash equivalents of RMB18,760,506 (December 31 2023: RMB 20,854,424) were the frozen funds of the Group's litigation.
(2)	Financial assets held for trading
		30 June 2024		31 December 2023
	Structural deposits	200,583,452		200,604,877

(3)	Derivative financial assets and derivative financial liabilities
		30 June 2024		31 December 2023
	Derivative financial assets -
	Forward exchange contracts	4,510,945		-
	Derivative financial liabilities -
	Forward exchange contracts	-		459,306

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(4)	Notes receivable
		30 June 2024			31 December 2023
	Trade acceptance notes	-			14,638,901
	Less: Provision for bad debts	-			(17,564)
		-			14,621,337
(a)	As at 30 June 2024, there were no notes receivable pledged.
(b)	Provision for bad debts
	For notes receivable arising from sales of goods and rendering of services in the ordinary course of operating activities, the Group measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component.
	The provision for bad debts of notes receivable is analysed by category as follows:
		30 June 2024
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the grouping basis (i)	-	-		-	-

		31 December 2023
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the grouping basis (i)	14,638,901	100%		(17,564)	0.12%

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(4)	Notes receivable (Cont’d)
(b)	Provision for bad debts (Cont’d)
(i)	The amount of bad debt provision reversed during the period was RMB17,564.
(ii)	There was no provision for bad debts actually written off during the period.
(5)	Accounts receivable
		30 June 2024		31 December 2023
	Accounts receivable	4,837,351,925		4,529,566,682
	Less: Provision for bad debts	(125,540,733)		(127,740,660)
		4,711,811,192		4,401,826,022

(a)	The aging of accounts receivable was analysed as follows:
		30 June 2024		31 December 2023
	Within 1 year	4,696,609,247		4,354,838,862
	1 to 2 years	7,293,905		28,667,064
	Over 2 years	133,448,773		146,060,756
		4,837,351,925		4,529,566,682

As at 30 June 2024, accounts receivable with individually significant amounts and aged over three years were analyzed as follows:

		Balance		Reasons and risk of collection
	Company 1	72,230,000		As the debtor had difficulties in operation and was involved in several lawsuits, the Group considered that the receivable was difficult to be recovered and therefore a provision for bad debts had been made in full.
	Company 2	37,924,214		The Group considered that the new energy subsidy amount was difficult to be recovered from relevant subsidy distribution departments over a long period of time and therefore a provision for bad debts had been made in full.
	Company 3	17,812,503		Due to the cash flow arrangement of the debtor, the accounts receivable had a long aging, but the debtor has a good historical collection situation and still has normal business dealings with the Group, and the Group considered that the receivables were likely to be recovered, so a provision for bad debts was made in the grouping - sales of general automobiles.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(5)	Accounts receivable (Cont’d)

(b)	As at 30 June 2024, the top five accounts receivable ranked by the balances of the debtors are analysed as follows:
			Balance			Amount of provision for bad debts				% of total balance
	The total accounts receivable of the top five balances		3,592,272,912			(79,350,975)				74%
(c)	Provision for bad debts
	For accounts receivable, the Group measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component.
	The provision for bad debts of accounts receivable was analysed by category as follows:
		30 June 2024
		Book balance						Provision for bad debts
		Amount		% of total balance				Amount			Provision ratio
	Provision for bad debts on the individual basis (i)	110,154,214		2%				(110,154,214)			100.00%
	Provision for bad debts on the grouping basis (ii)	4,727,197,711		98%				(15,386,519)			0.33%
		4,837,351,925		100%				(125,540,733)			2.60%

		31 December 2023
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	110,154,214	2%		(110,154,214)	100.00%
	Provision for bad debts on the grouping basis (ii)	4,419,412,468	98%		(17,586,446)	0.40%
		4,529,566,682	100%		(127,740,660)	2.82%

(i)	Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows:

			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	New energy subsidies receivable		37,924,214		100%		(37,924,214)
	Receivables for automobiles		72,230,000		100%		(72,230,000)
			110,154,214				(110,154,214)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(5)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)
(i)	Accounts receivable for which the provision for bad debts is provided on the individual basis are analysed follows (Cont’d):

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	New energy subsidies receivable		37,924,214		100%		(37,924,214)
	Receivables for automobiles		72,230,000		100%		(72,230,000)
			110,154,214				(110,154,214)

	As at 30 June 2024 and 31 December 2023, The Group assessed the expected credit losses on the related accounts receivable, the Group considered the receivables cannot be collected, therefore, full provision was made for those receivables. The related amount was RMB110,154,214.
(ii)	Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows:
	Grouping - Domestic sales of general automobiles:
			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		1,093,439,577		0.11%		(1,197,131)
	Overdue for 1 to 30 days		58,707,229		0.11%		(63,080)
	Overdue for 31 to 60 days		10,136,087		1.92%		(194,375)
	Overdue for 61 to 90 days		12,137,184		3.14%		(381,510)
	Overdue over 90 days		53,559,804		4.60%		(2,464,869)
			1,227,979,881				(4,300,965)

Grouping - Export sales of general automobiles:

			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		3,112,760,619		0.20%		(6,225,521)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(5)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)

(ii)	Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

	Grouping - Sales of general automobiles (Cont’d):
			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		1,330,216,018		0.12%		(1,651,582)
	Overdue for 1 to 30 days		41,413,325		0.18%		(74,476)
	Overdue for 31 to 60 days		24,216,867		2.28%		(553,239)
	Overdue for 61 to 90 days		32,435,370		3.34%		(1,083,923)
	Overdue over 90 days		76,187,716		5.18%		(3,948,751)
			1,504,469,296				(7,311,971)

Grouping - Export sales of general automobiles:

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		2,647,787,903		0.20%		(5,295,576)

Grouping - Sales of new energy automobiles:

			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Overdue over 90 days		4,123,260		80.00%		(3,298,608)

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Overdue over 90 days		5,123,260		80.00%		(4,098,608)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(5)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)
(ii)	Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

	Grouping – Automobile parts:
			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		332,794,702		0.30%		(998,384)
	Overdue for 1 to 30 days		32,463,269		0.30%		(97,390)
	Overdue for 31 to 60 days		5,578,160		0.50%		(27,891)
	Overdue for 61 to 90 days		3,116,610		0.60%		(18,700)
	Overdue over 90 days		8,381,210		5.00%		(419,060)
			382,333,951				(1,561,425)

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		242,349,099		0.30%		(727,047)
	Overdue for 1 to 30 days		16,195,486		0.30%		(48,586)
	Overdue for 31 to 60 days		728,660		0.50%		(3,643)
	Overdue for 61 to 90 days		839,164		0.60%		(5,035)
	Overdue over 90 days		1,919,600		5.00%		(95,980)
			262,032,009				(880,291)

(iii)	The amount of provision for bad debts reversed for the period was RMB2,199,927.
(d)	There was no provision for bad debts actually written off during the period.
(e)	As at 30 June 2024 and 31 December 2023, there were no accounts receivable pledged.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(6)	Financing receivables
			30 June 2024			31 December 2023
	Bank acceptance notes		274,777,232			123,170,062
	The Group endorses the bank acceptance notes as required by daily fund management, which also met the criteria for derecognition, and therefore classified those the bank acceptance notes as financial assets at fair value through other comprehensive income. For the six months ended 30 June 2024, the Group endorsed and discounted bank acceptance notes, and almost all risks and rewards of ownership have been transferred to other parties, accordingly, the carrying amounts of bank acceptance notes that were derecognised by the Group were RMB419,555,238 and RMB511,589,299.
	As at 30 June 2024 and 31 December 2023, as the credit risk characteristics of these bank acceptance notes were similar, no provision for impairment was made individually. In addition, the Group considered that its bank acceptance notes were not exposed to significant credit risk and the probability of default of these banks was very low.
	As at 30 June 2024 and 31 December 2023, the Group had no pledged bank acceptance notes receivable presented in financing receivables.
	As at 30 June 2024, the Group's bank acceptance notes had been endorsed or discounted but not yet matured were RMB663,468,224, which had been derecognised.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(7)	Advances to suppliers
(a)	The aging of advances to suppliers is analysed as follows:
		30 June 2024				31 December 2023
		Amount		% of total balance		Amount		% of total balance
	Within 1 year	115,585,832		100%		204,358,759		100%

(b)	As at 30 June 2024, the top five advances to suppliers by the balances of the debtors are analysed as follows:
		Amount		% of total balance
	Total prepayments of the top five balances	115,475,759		99.9%
(8)	Other receivables
		30 June 2024		31 December 2023
	Import working capital	30,000,000		7,000,000
	Advance payment of gas expenses	13,850,672		12,769,141
	Receivables from disposal of land and above-ground buildings	13,111,456		-
	Receivables from refund of social insurance	7,242,084		23,958,000
	Guarantees	5,308,676		6,974,616
	Others	21,351,271		25,021,075
		90,864,159		75,722,832
	Less: Provision for bad debts	(247,681)		(402,984)
		90,616,478		75,319,848

	The Group did not have any fund deposited at other parties under the centralised fund management and represented in other receivables.
(a)	The aging of other receivables is analysed as follows:
		30 June 2024		31 December 2023
	Within 1 year	86,389,541		67,035,160
	Over 1 year	4,474,618		8,687,672
		90,864,159		75,722,832

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(8)	Other receivables (Cont’d)

(b)	Provision for losses and changes in book balance statements:
	The provision for bad debts of other receivables is analysed by category as follows:

		30 June 2024
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	20,353,540	22%		-	-
	Provision for bad debts on the grouping basis (i)	70,510,619	78%		(247,681)	0.35%
		90,864,159	100%		(247,681)	0.27%

		31 December 2023
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	23,958,000	32%		-	-
	Provision for bad debts on the grouping basis (i)	51,764,832	68%		(402,984)	0.78%
		75,722,832	100%		(402,984)	0.53%

			Stage 1
			12-month ECL (grouping)			12-month ECL (individual)			Total
			Book balance	Provision for bad debts		Book balance	Provision for bad debts		Provision for bad debts
	31 December 2023		51,764,832	(402,984)		23,958,000	-		(402,984)
	Decrease in the current period		-	—		(3,604,460)	—		—
	Increase in the current period		18,745,787	—		-	—		—
	Provision for bad debts reversed during the period		—	155,303		—	-		155,303
	30 June 2024		70,510,619	(247,681)		20,353,540	-		(247,681)

As at 30 June 2024 and 31 December 2023, the Group had no other receivables at Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:

(i)	As at 30 June 2024, the Group’s other receivables with provision for bad debts were analysed below:

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(8)	Other receivables (Cont’d)

(b)	Provision for losses and changes in book balance statements (Cont’d):

		Book balance		12-month ECL rates		Provision for bad debts		Reason
	Provision on the individual basis: i)
	Receivables from disposal of land and above-ground buildings	13,111,456		-		-		ECL
	Receivables from refund of social insurance	7,242,084		-		-		ECL
	Provision on the grouping basis:
	Import working capital	30,000,000		0.35%		(105,380)		ECL
	Advance payment of gas expenses	13,850,672		0.35%		(48,653)		ECL
	Guarantees	5,308,676		0.35%		(18,648)		ECL
	Others	21,351,271		0.35%		(75,000)		ECL
		90,864,159				(247,681)

(i)	As at 31 December 2023, the Group’s other receivables with provision for bad debts on the grouping basis are analysed as follows:
		Book balance		12-month ECL rates		Provision for bad debts		Reason
	Provision on the individual basis: i)
	Receivables from refund of social insurance	23,958,000		-		-		ECL
	Provision on the grouping basis:
	Advance payment of gas expenses	12,769,141		0.78%		(99,406)		ECL
	Import working capital	7,000,000		0.78%		(54,494)		ECL
	Guarantees	6,974,616		0.78%		(54,297)		ECL
	Receivables from platform utilization	4,757,270		0.78%		(37,035)		ECL
	Receivables from disposal of assets	4,604,745		0.78%		(35,847)		ECL
	Others	15,659,060		0.78%		(121,905)		ECL
		75,722,832				(402,984)
	i)The Group assessed the receivables from refund of social insurance and receivables from disposal of land and above-ground buildings individually and based on the judgment of credit risk, the receivables were not subject to significant credit risk and were not overdue and impaired.
(c)	The provision for bad debts reversed in the current period amounted to RMB155,303.
(d)	There was no provision for bad debts actually written off during the period.

(e)	As at 30 June 2024, the top five other receivables by the balances of the debtors are listed as follows:
		Nature		Balance		Aging		% of total balance		Provision for bad debts
	Company 1	Import working capital, etc.		31,727,323		within 1 year		35%		(111,046)
	Company 2	Advance payment of gas expenses		13,850,672		within 1 year		15%		(48,653)
	Company 3	Receivables from disposal of land and above-ground buildings		13,111,456		within 1 year		14%		-
	Company 4	Receivables from refund of social insurance		7,242,084		within 1 year		8%		-
	Company 5	Receivables from disposal of assets		3,206,042		within 1 year		4%		(11,262)
				69,137,577				76%		(170,961)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(9)	Inventories
(a)	Inventories were summarised by category as follows:

		30 June 2024						31 December 2023
		Book balance		Provision for decline in the value of inventories		Carrying amount		Book balance		Provision for decline in the value of inventories		Carrying amount
	Raw materials	1,066,984,459		(79,499,203)		987,485,256		802,679,074		(130,036,719)		672,642,355
	Finished goods	421,327,623		-		421,327,623		497,244,891		-		497,244,891
	Work in progress	294,185,452		(816,091)		293,369,361		194,945,039		(816,091)		194,128,948
	Low value consumables	81,044,386		(2,830,181)		78,214,205		83,217,698		(2,830,181)		80,387,517
	Materials in transit	276,214,935		-		276,214,935		71,613,700		-		71,613,700
	Materials consigned for processing	61,401,110		-		61,401,110		44,242,100		-		44,242,100
		2,201,157,965		(83,145,475)		2,118,012,490		1,693,942,502		(133,682,991)		1,560,259,511

(b)	Provision for decline in the value of inventories was analysed as follows:

		31 December 2023		Increase in the current period		Decrease in the current period				30 June 2024
				Provision		Reversal		Write-off
	Raw materials	(130,036,719)		-		4,296,473		46,241,043		(79,499,203)
	Low value consumables	(2,830,181)		-		-		-		(2,830,181)
	Work in progress	(816,091)		-		-		-		(816,091)
		(133,682,991)		-		4,296,473		46,241,043		(83,145,475)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(9)	Inventories (Cont’d)

(c)	Provision for decline in the value of inventories was analysed as follows:
			Specific basis for determining net realisable value		Reason for current period reversal or write-off of provision for decline in the value of inventories
	Raw materials/Work in progress/Low value consumables		Based on the estimated selling price, less the estimated costs to completion, estimated contract performance costs and selling and distribution expenses and related taxes		Increase in the net realisable value of the provision for decline in the value of inventories had been made in prior years or sales realised

(10)	Other current assets
		30 June 2024		31 December 2023
	Taxes prepaid, input VAT to be deducted and to be verified	1,307,258,115		951,659,556
(11)	Current portion of non-current assets
		30 June 2024		31 December 2023
	Current portion of long-term receivables (Note 4(12))	16,828,704		15,749,806
(12)	Long-term receivables
		30 June 2024		31 December 2023
	Long-term receivables	36,949,258		41,919,493
	Less: Unearned financing income	(2,927,122)		(3,268,233)
	Provision for bad debts	(110,849)		(125,758)
	Current portion of long-term receivables (Note 4(11))	(16,828,704)		(15,749,806)
		17,082,583		22,775,696

As at 30 June 2024, the Group's long-term receivables were generated by instalment collections from disposal of fixed assets, which will be recovered from 2024 to 2026.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(13)	Long-term equity investments
													30 June 2024										31 December 2023
	Associates
	- Shanxi Yunnei Power Co., Ltd. (“The Power Company”)												198,361,679										202,327,605
	- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”)												28,773,014										31,470,743
	Less: Provision for impairment of long-term equity investments												-										-
													227,134,693										233,798,348
	Associates
				Movements for the current period																				Impairment provision
		31 December 2023		Increase/ Decrease in investment		Share of net profit/(loss) under equity method		Cash dividends declared		Provision for impairment		30 June 2024			Shareholding (%)				Voting rights (%)					30 June 2024		31 December 2023
	The Power Company	202,327,605		-		(3,965,926)		-		-		198,361,679			40%				40%
	Hanon Systems	31,470,743		-		1,438,671		(4,136,400)		-		28,773,014			19.15%				33.33%					-		-
	Total	233,798,348		-		(2,527,255)		(4,136,400)		-		227,134,693												-		-

Related information of equity in associates is set forth in Note 5(2).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(14)	Fixed assets
		30 June 2024		31 December 2023
	Fixed assets (a)	5,469,172,608		5,389,534,479
	Fixed assets pending for disposal (b)	110,673		110,673
		5,469,283,281		5,389,645,152
(a)	Fixed assets

.		Buildings	Machinery and equipment	Vehicles	Moulds	Electronic and other equipment	Total
	Cost
	31 December 2023	2,226,158,780	3,226,527,648	513,121,037	4,121,429,291	4,340,265,136	14,427,501,892
	Increase in the current period
	Transfers from construction in progress	102,085,625	70,786,373	150,697,583	163,789,193	87,505,411	574,864,185
	Decrease in the current period
	Disposal or retirement	(2,890,778)	(59,796,892)	(10,938,202)	(136,278,214)	(33,903,313)	(243,807,399)
	Others	-	-	-	-	(4,317,418)	(4,317,418)
	30 June 2024	2,325,353,627	3,237,517,129	652,880,418	4,148,940,270	4,389,549,816	14,754,241,260
	Accumulated depreciation
	31 December 2023	(475,073,634)	(1,960,756,439)	(321,764,940)	(2,761,763,523)	(2,919,832,565)	(8,439,191,101)
	Increase in the current period
	Provision	(32,065,249)	(96,575,597)	(29,597,100)	(148,239,386)	(178,743,982)	(485,221,314)
	Decrease in the current period
	Disposal or retirement	1,952,940	55,891,086	3,961,513	136,111,103	31,806,321	229,722,963
	Others	-	-	-	-	3,822,585	3,822,585
	30 June 2024	(505,185,943)	(2,001,440,950)	(347,400,527)	(2,773,891,806)	(3,062,947,641)	(8,690,866,867)
	Provision for impairment
	31 December 2023	(172,020,613)	(28,233,307)	(6,552,525)	(339,692,238)	(52,277,629)	(598,776,312)
	Increase in the current period
	Provision	-	-	-	-	-	-
	Decrease in the current period
	Disposal or retirement	-	3,338,313	23,500	101,412	1,111,302	4,574,527
	30 June 2024	(172,020,613)	(24,894,994)	(6,529,025)	(339,590,826)	(51,166,327)	(594,201,785)
	Carrying amount
	30 June 2024	1,648,147,071	1,211,181,185	298,950,866	1,035,457,638	1,275,435,848	5,469,172,608
	31 December 2023	1,579,064,533	1,237,537,902	184,803,572	1,019,973,530	1,368,154,942	5,389,534,479

	For the six months ended 30 June 2024, depreciation charged to fixed assets amounted to RMB485,221,314 (the six months ended 30 June 2023: RMB442,918,223), of which the depreciation expenses charged in the cost of sales, selling and distribution expenses, general and administrative expenses and research and development expenses were RMB413,536,440, RMB3,897,033, RMB29,315,200 and RMB38,472,641 (the six months ended 30 June 2023: RMB364,837,796, RMB1,135,033, RMB46,055,032 and RMB30,890,362), respectively.
	The costs of fixed assets transferred from construction in progress amounted to RMB574,864,185 (the six months ended 30 June 2023: RMB506,249,913).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(14)	Fixed assets(Cont’d)
(a)	Fixed assets (Cont’d)
(i)	Temporarily idle fixed assets
	As at 30 June 2024, the fixed assets with a carrying amount of approximately RMB177,687,914 (a cost of RMB1,352,405,897) (31 December 2023: a carrying amount of approximately RMB179,453,179 and a cost of RMB1,324,043,538) were idle due to the termination of the equity transfer transaction of JMCH and the change of product process of the Group. The analysis was as follows:
			Cost				Accumulated depreciation				Provision for impairment			Carrying amount
	Buildings		409,162,422				(108,122,281)				(172,020,613)			129,019,528
	Machinery and equipment		167,746,540				(124,246,537)				(22,701,574)			20,798,429
	Vehicles		56,434,194				(47,190,430)				(6,502,390)			2,741,374
	Moulds		418,889,062				(106,287,067)				(312,553,501)			48,494
	Electronic and other equipment		300,173,679				(228,130,482)				(46,963,108)			25,080,089
			1,352,405,897				(613,976,797)				(560,741,186)			177,687,914
(ii)	Fixed assets with pending certificates of ownership:
				Carrying amount						Reason for not obtaining certificates of ownership
	Buildings			3,092,373						Pending procedures
(b)	Fixed assets pending for disposal
					30 June 2024							31 December 2023
	Electronic and other equipment				85,891							85,891
	Machinery and equipment				24,782							24,782
					110,673							110,673

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(15)	Construction in progress

		30 June 2024						31 December 2023
		Book balance		Provision for impairment		Carrying amount		Book balance		Provision for impairment		Carrying amount
	Projects for commercial vehicles	320,238,064		(1,284,000)		318,954,064		176,425,357		(1,284,000)		175,141,357
	Projects for passenger vehicles	109,210,448		(4,460,314)		104,750,134		192,375,226		(4,460,314)		187,914,912
	Projects for automobile parts factory	48,479,817		-		48,479,817		28,037,073		-		28,037,073
	Projects for automobiles factory	21,082,317		-		21,082,317		17,752,703		-		17,752,703
	Others	94,247,067		(691,646)		93,555,421		56,277,013		(691,646)		55,585,367
		593,257,713		(6,435,960)		586,821,753		470,867,372		(6,435,960)		464,431,412

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(15)	Construction in progress (Cont’d)
(a)	Movement of significant projects of construction in progress

	Project name	Budget (In RMB0’000)		31 December 2023		Increase in the current period		Transfer to fixed assets in the current period		Transfer to intangible assets in the current period		30 June 2024		% of project investment in budget		Progress of project		Accumulative capitalised borrowing costs		Including: Borrowing costs capitalised in the current period		Source of fund
	Projects for commercial vehicles	293,659		176,425,357		192,463,305		(48,650,598)		-		320,238,064		60%		60%		-		-		Self-owned funds
	Projects for passenger vehicles	106,046		192,375,226		120,162,720		(203,327,498)		-		109,210,448		58%		58%		-		-		Self-owned funds
	Projects for automobile parts factory	13,175		28,037,073		23,064,740		(2,621,996)		-		48,479,817		39%		39%		-		-		Self-owned funds
	Projects for automobiles factory	311,994		17,752,703		173,255,508		(169,925,894)		-		21,082,317		79%		79%		-		-		Self-owned funds
	Others			56,277,013		192,827,191		(150,338,199)		(4,518,938)		94,247,067						292,897		-		Self-owned funds and borrowings
				470,867,372		701,773,464		(574,864,185)		(4,518,938)		593,257,713						292,897		-

	The Group's Project for passenger vehicles and Projects for automobiles factory reached its intended design requirements and was available for its intended use after installation, commissioning and acceptance for the six months ended 30 June 2024 and was transferred to fixed assets accordingly.
(b)		Provision for impairment of construction in progress
			31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
Projects for passenger vehicles			(4,460,314)		-		-		(4,460,314)
Projects for commercial vehicles			(1,284,000)		-		-		(1,284,000)
Other miscellaneous and pending installation projects			(691,646)		-		-		(691,646)
			(6,435,960)		-		-		(6,435,960)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)

(16)	Right-of-use assets

			Buildings
	Cost
	31 December 2023		369,902,195
	Increase in the current period
	New lease contracts		37,552,314
	Decrease in the current period
	Expiration of lease contract		(16,852,582)
	30 June 2024		390,601,927
	Accumulated depreciation
	31 December 2023		(175,066,167)
	Increase in the current period
	Provision		(41,568,134)
	Decrease in the current period
	Expiration of lease contract		16,852,581
	30 June 2024		(199,781,720)
	Provision for impairment
	31 December 2023		-
	Increase in the current period		-
	Decrease in the current period		-
	30 June 2024		-
	Carrying amount
	30 June 2024		190,820,207
	31 December 2023		194,836,028

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(17)	Intangible assets
		Land use rights	Software use fees	Non-patent technologies	After-sales services management mode	Others	Total
	Cost
	31 December 2023	628,964,157	394,046,217	1,839,778,636	36,979,184	1,599,516	2,901,367,710
	Increase in the current period
	Transfers from construction in progress	-	4,518,938	-	-	-	4,518,938
	Internal research and development	-	-	243,912,114	-	-	243,912,114
	Decrease in the current period
	Disposal	(3,664,831)	-	-	-	-	(3,664,831)
	30 June 2024	625,299,326	398,565,155	2,083,690,750	36,979,184	1,599,516	3,146,133,931
	Accumulated amortisation
	31 December 2023	(153,225,333)	(235,386,600)	(730,739,330)	(36,979,184)	(1,599,516)	(1,157,929,963)
	Increase in the current period
	Provision	(6,599,907)	(24,611,218)	(169,576,002)	-	-	(200,787,127)
	Decrease in the current period
	Disposal	1,953,862	-	-	-	-	1,953,862
	30 June 2024	(157,871,378)	(259,997,818)	(900,315,332)	(36,979,184)	(1,599,516)	(1,356,763,228)
	Provision for impairment
	31 December 2023	-	-	(52,416,626)	-	-	(52,416,626)
	Increase in the current period
	Provision	-	-	-	-	-	-
	30 June 2024	-	-	(52,416,626)	-	-	(52,416,626)
	Carrying amount
	30 June 2024	467,427,948	138,567,337	1,130,958,792	-	-	1,736,954,077
	31December2023	475,738,824	158,659,617	1,056,622,680	-	-	1,691,021,121

	As at 30 June 2024, the intangible assets developed by the Group accounted for 59% (31 December 2023: 56%) of the carrying amount of intangible assets.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(18)	Expenditure on research and development

The Group's total expenditure on research and development activities For the six months ended 30 June 2024 and 2023 is presented by nature as follows:

				Six months ended 30 June
				2024		2023
	Employee benefits			371,085,867		351,747,851
	Design fee			195,801,929		291,839,084
	Consumed materials			95,215,493		96,920,894
	Depreciation and amortisation			42,867,809		138,004,437
	Others			97,106,716		205,699,755
				802,077,814		1,084,212,021
	Wherein expenditure on research and development on the research phase (Note 4(45))			617,237,727		748,135,775

(a)	The changes in the Group's development expenditures eligible for capitalisation For the six months ended 30 June 2024 is analysed as follows:

		31 December 2023		Increase in the current period		Transfer to intangible assets in the current period		30 June 2024
	Projects for passenger vehicles(i)	283,738,155		97,273,552		(243,912,114)		137,099,593
	Projects for commercial vehicles(ii)	-		87,566,535		-		87,566,535
		283,738,155		184,840,087		(243,912,114)		224,666,128

(i)	The capitalisation of Project for passenger vehicles started when the relevant products are ready and the relevant research data is frozen, and it has passed the internal technical review meeting of the Group. Upon completion of the development of the project, it is expected to be used for mass production of product SUV that is competitive in the market. The project progress of the main product as of June 30 2024 is 70%, and the completion point of the Project is expected to be the second half year of 2024.
(ii)	The capitalisation of Project for commercial vehicles started when the relevant products are ready and the relevant research data is frozen, and it has passed the internal technical review meeting of the Group. Upon completion of the development of the project, it is expected to be used for mass production of product LT、PK、LCBV that is competitive in the market. The project progress of the main product as of June 30 2024 is 24%, and the completion point of the Project is expected to be the first half year of 2025.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(18)	Expenditure on research and development (Cont’d)
	For the six months ended 30 June 2024, there was no impairment of the Group's projects under development expenditures (the six months ended 30 June 2023: Nil).
(19)	Deferred tax assets and deferred tax liabilities
(a)	Deferred tax assets before offsetting
		30 June 2024				31 December 2023
		Deductible temporary differences and deductible losses		Deferred tax assets		Deductible temporary differences and deductible losses			Deferred tax assets
	Accrued expenses and provisions	6,098,136,912		1,413,715,912		5,860,011,327			1,364,811,520
	Recoverable losses	2,179,314,945		421,911,685		2,443,729,567			389,836,053
	Provision for asset impairment	1,135,035,531		174,790,345		1,192,154,407			183,615,437
	Non-patent technology	371,978,395		81,988,457		304,526,218			63,692,824
	Lease liability	181,378,686		33,547,805		218,076,092			34,258,049
	Employee education funds unpaid	80,096,978		12,533,212		81,356,938			12,728,702
	Deferred income	65,025,145		9,753,772		67,601,361			10,140,204
	Retirement benefits plan	9,907,962		2,081,294		10,515,000			2,172,350
	Others	243,763,612		32,194,904		186,761,227			28,046,234
		10,364,638,166		2,182,517,386		10,364,732,137			2,089,301,373
	Including:
	Expected to be recovered within 1 year (inclusive)			1,724,502,483					1,615,927,125
	Expected to be recovered after 1 year			458,014,903					473,374,248
				2,182,517,386					2,089,301,373

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(19)	Deferred tax assets and deferred tax liabilities (Cont’d)
(b)	Deferred tax liabilities before offsetting
		30 June 2024				31 December 2023
		Taxable temporary differences		Deferred tax liabilities		Taxable temporary differences		Deferred tax liabilities
	Depreciation of fixed assets	2,973,697,695		587,918,966		2,912,652,979		556,699,442
	Right-of-use assets	190,820,207		30,069,711		194,836,028		30,336,433
	Equity transactions between parent and subsidiary	146,200,000		21,930,000		125,800,000		18,870,000
	Differences between the fair value of the identifiable net assets and carrying amount arising from business combinations involving enterprises not under common control	75,885,063		18,971,266		77,027,559		19,256,890
	Amortisation of intangible assets	83,724,412		13,222,538		73,907,060		11,171,829
	Others	4,175,785		684,713		1,064,183		220,115
		3,474,503,162		672,797,194		3,385,287,809		636,554,709
	Including:
	Expected to be recovered within 1 year (inclusive)			120,434,326				111,712,132
	Expected to be recovered after 1 year			552,362,868				524,842,577
				672,797,194				636,554,709

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(19)	Deferred tax assets and deferred tax liabilities (Cont’d)
(c)	Deductible temporary differences and deductible losses for which no deferred tax asset was recognised were analysed as follows:
			30 June 2024					31 December 2023
	Deductible temporary differences		2,013,038,585					2,020,124,206
	Deductible losses		296,066,641					276,440,468
			2,309,105,226					2,296,564,674
(d)	Deductible losses for which no deferred tax asset was recognised will be expired in following years:
			30 June 2024					31 December 2023
	2024		109,336,011					109,336,011
	2025		-					-
	2026		-					-
	2027		93,001,631					93,001,631
	2028		74,184,911					74,102,826
	2029		19,544,088					-
			296,066,641					276,440,468
(e)	The net balances of deferred tax assets and deferred tax liabilities after offsetting were as follows:
		30 June 2024				31 December 2023
		Offsetting amount		Balance after offsetting		Offsetting amount			Balance after offsetting
	Deferred tax assets	(653,825,928)		1,528,691,458		(617,297,819)			1,472,003,554
	Deferred tax liabilities	(653,825,928)		18,971,266		(617,297,819)			19,256,890

(20)	Other non-current assets
		30 June 2024		31 December 2023
	Prepayment for molds	9,334,153		10,807,967

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(21)	Provision for asset impairment and losses

		31 December 2023		Increase in the current period		Decrease in the current period				30 June 2024
						Reversal		Write-off /Disposal
	Provision for bad debts of notes receivable (Note 4(4))	17,564		-		(17,564)		-		-
	Provision for bad debts of accounts receivable (Note 4(5))	127,740,660		-		(2,199,927)		-		125,540,733
	Including: Provision for bad debts on the individual basis	110,154,214		-		-		-		110,154,214
	Provision for bad debts on the grouping basis	17,586,446		-		(2,199,927)		-		15,386,519
	Provision for bad debts of other receivables (Note 4(8))	402,984		-		(155,303)		-		247,681
	Provision for bad debts of long-term receivables (Note 4(12))	125,758		-		(14,909)		-		110,849
	Sub-total	128,286,966		-		(2,387,703)		-		125,899,263
	Provision for decline in the value of inventories (Note 4(9))	133,682,991		-		(4,296,473)		(46,241,043)		83,145,475
	Provision for impairment of fixed assets (Note 4(14))	598,776,312		-		-		(4,574,527)		594,201,785
	Provision for impairment of construction in progress (Note 4(15))	6,435,960		-		-		-		6,435,960
	Provision for impairment of goodwill (i)	89,028,412		-		-		-		89,028,412
	Provision for impairment of intangible assets (Note 4(17))	52,416,626		-		-		-		52,416,626
	Sub-total	880,340,301		-		(4,296,473)		(50,815,570)		825,228,258
		1,008,627,267		-		(6,684,176)		(50,815,570)		951,127,521
(i)	As at 31 December 2019, the Group had made full provision for impairment of goodwill.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(22)	Short-term borrowings
			30 June 2024			31 December 2023
	Credit loan		500,000,000			1,300,000,000
	As at 30 June 2024, the Group had no overdue short-term borrowings and the interest rates was 1.73% (31 December 2023: 1.73% to 2.40%).
(23)	Accounts payable
		30 June 2024				31 December 2023
	Payable for automobile parts	10,151,169,323				9,094,393,825
	Payable for raw and auxiliary materials	352,485,134				381,821,398
		10,503,654,457				9,476,215,223
	As at 30 June 2024, accounts payable with aging over one year amounted to RMB471,470,280 (31 December 2023: RMB408,228,798), which mainly represented payables for materials for which a settlement price had not yet been determined, and such payables had not been finally settled yet.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(24)	Contract liabilities

		30 June 2024		31 December 2023
	Advances for maintenance and warranty services, etc.	366,074,110		226,857,269
	Advances for automobiles and automobile parts	166,715,955		137,176,924
		532,790,065		364,034,193
	Less: Contract liabilities carried forward to revenue after 1 year (Note 4(35))	(191,053,046)		(120,293,201)
		341,737,019		243,740,992

(25)	Employee benefits payable
		30 June 2024		31 December 2023
	Short-term employee benefits payable (a)	679,695,547		882,869,951
	Defined contribution plans payable (b)	12,226,608		1,818,160
	Defined benefit plans payable (c)	2,865,000		2,865,000
	Termination benefits payable (d)	2,498,176		2,498,176
		697,285,331		890,051,287

(a)	Short-term employee benefits
		31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Wages and salaries, bonus, allowances and subsidies	738,660,904		1,002,486,715		(1,212,722,880)		528,424,739
	Staff welfare	56,932,663		42,596,523		(41,722,061)		57,807,125
	Social security contributions	152,685		67,176,666		(60,386,762)		6,942,589
	Including: Medical insurance	121,642		61,744,770		(55,099,088)		6,767,324
	Work injury insurance	31,043		5,431,896		(5,287,674)		175,265
	Housing funds	28,935		95,002,808		(94,942,995)		88,748
	Labour union funds and employee education funds	87,094,764		24,013,381		(24,675,799)		86,432,346
	Other short-term employee benefits	-		2,792,616		(2,792,616)		-
		882,869,951		1,234,068,709		(1,437,243,113)		679,695,547

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(25)	Employee benefits payable (Cont’d)

(b)	Defined contribution plans
		31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Basic pensions	1,761,709		130,670,009		(120,593,221)		11,838,497
	Unemployment insurance	56,451		4,130,573		(3,798,913)		388,111
		1,818,160		134,800,582		(124,392,134)		12,226,608

(c)	Defined benefit plans
		31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Post-retirement benefits payable (Note 4(34))	2,865,000		1,327,912		(1,327,912)		2,865,000

(d)	Termination benefits payable
		30 June 2024		31 December 2023
	Early retirement benefits payable (Note 4(34))	1,160,000		1,160,000
	Other termination benefits (i)	1,338,176		1,338,176
		2,498,176		2,498,176
(i)	For the six months ended 30 June 2024, other termination benefits paid by the Group for termination of the employment relationship were RMB908,195 (the six months ended 30 June 2023: RMB10,806,089).

(26)	Taxes payable
		30 June 2024		31 December 2023
	Consumption tax payable	94,498,766		73,794,904
	Land use tax payable	4,755,390		4,831,953
	Unpaid VAT	1,468,053		637,391
	Enterprise income tax payable	-		18,702,207
	Others	19,652,188		20,433,310
		120,374,397		118,399,765

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(27)	Other payables
		30 June 2024		31 December 2023
	Promotion expenses	2,912,661,031		2,978,276,681
	Research and development project expenses	1,157,163,197		968,699,606
	Ordinary share dividends payable	596,974,420		6,463,836
	Construction payment	426,265,008		539,487,510
	Transportation expenses	233,033,589		148,140,843
	Guarantees	118,150,088		124,132,883
	Advertising and new product planning fees	115,858,701		166,568,934
	Trademark license fee	32,125,080		17,037,453
	Consulting fees	20,626,057		31,808,406
	Technological transformation project expenses	15,720,891		23,333,420
	Others	832,693,405		941,026,521
		6,461,271,467		5,944,976,093

As at 30 June 2024, other payables with aging over one year of RMB2,176,347,731 (31 December 2023: RMB1,967,233,887) mainly comprised guarantees collected from distributors and repair stations, payables for promotion, payables for research and development expenses and payables for construction projects. Such payables had not been finally settled yet in view of the continuing business transactions with distributors and service providers, and engineering projects and research and development projects that had not yet been accepted and completed.

(28)	Current portion of non-current liabilities
			30 June 2024		31 December 2023
	Current portion of lease liabilities (Note 4(31))		91,183,449		80,070,149
	Current portion of long-term borrowings (Note 4(30))		11,316,637		13,313,749
			102,500,086		93,383,898

(29)	Other current liabilities
		30 June 2024		31 December 2023
	Provisions expected to be settled within 1 year (Note 4(32))	370,028,474		356,115,630
	Others	21,673,074		17,833,000
		391,701,548		373,948,630

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(30)	Long-term borrowings
		30 June 2024		31 December 2023
	Guaranteed loans(a)	1,633,424		1,855,219
	Credit loans(b)	10,849,945		12,849,944
	Less: Current portion of long-term borrowings (Note 4(28))	(11,316,637)		(13,313,749)
		1,166,732		1,391,414

(a)

As at 30 June 2024, the above guaranteed loans were long-term borrowings amounting to USD 229,195 guaranteed by JMCF (note7(c)), borrowed from Industrial and Commercial Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year and the principal paid in instalments between 10 December 2007 and 27 October 2027.

Starting date

Maturity date

Currency

Interest rate (%)

30 June 2024

31 December 2023

Amount in foreign currency

RMB equivalent

Amount in foreign currency

RMB equivalent

ICBC Nanchang Ganjiang Sub - branch

27 February 1998

27 October 2027

USD

1.5%

229,195

1,633,424

261,937

1,855,219

(b)	As at 30 June 2024, the principal amount of bank credit borrowings is repayable in installments during 2024.
(c)	As at 30 June 2024, the Group had no overdue long-term borrowings and the Group’s interest rates ranged from 1.5% to 2.5% (31 December 2023: 1.5% to 2.5%).

(31)	Lease liabilities
			30 June 2024		31 December 2023
	Lease liabilities (a)		181,378,686		218,076,092
	Less: Current portion of non- current liabilities (Note 4(28))		(91,183,449)		(80,070,149)
			90,195,237		138,005,943
(a)	As at 30 June 2024, the Group had no leases that were not included in lease liabilities but will result in potential future cash outflows.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(32)	Provisions
		31 December 2023	Increase in the current period		Decrease in the current period		30 June 2024
	Product warranties (a)	658,386,726	169,166,499		(138,267,239)		689,285,986
	Provisions for contract fulfilment	13,429,167	-		-		13,429,167
		671,815,893	169,166,499		(138,267,239)		702,715,153
	Less: Provisions expected to be settled within 1 year (Note 4(29))	(356,115,630)					(370,028,474)
		315,700,263					332,686,679

(a)	Product warranties are expenses expected to be incurred during the warranty period from free after-sales services, product warranty and other services for the vehicles sold.
(33)	Deferred income
				31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Government grants			67,601,361		2,300,000		(4,876,216)		65,025,145
(a)	Government grants

		31 December 2023		Increase in the current period		Decrease in the current period
						Recognised in other income		30 June 2024
	Government grants related to assets	8,724,703		-		(805,357)		7,919,346
	Government grants related to income	58,876,658		2,300,000		(4,070,859)		57,105,799
		67,601,361		2,300,000		(4,876,216)		65,025,145

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)

(34)	Long-term employee benefits payable
		30 June 2024		31 December 2023
	Supplementary retirement benefits and early-retirement benefits eligible for recognition of provisions	54,981,050		56,916,000
	Less: Payable within 1 year	(4,025,000)		(4,025,000)
		50,956,050		52,891,000
	The retirement and early-retirement benefits payable within one year are included in employee benefits payable (Note 4(25)(c), Note 4(25)(d)).
	For retired and early-retired employees, the Group provides them with a certain amount of supplementary benefits during their retirement or early-retirement period. The amount of benefits depends on the employee’s position, length of service and salary at the time of retirement or early-retirement, and is adjusted in accordance with inflation rate and other factors. The Group’s obligations for supplementary retirement and early-retirement benefits as at the balance sheet date were calculated using projected unit credit method and were reviewed by an external independent actuary.

(a)	Movements of retirement and early-retirement benefits of the Group are as follows:
			Present value of the obligations of the defined benefit plan
			30 June 2024		31 December 2023
	Opening balance		56,916,000		55,374,000
	Cost of defined benefit plans recognised in profit or loss for the current period
	- Current service cost		-		1,141,000
	- Past service cost		-		-
	- Actuarial losses recognised immediately		-		(331,000)
	- Net interest		-		1,610,000
	Remeasurement of net liabilities for defined benefit plans
	- Actuarial losses		-		2,593,000
	Other movements
	- Benefits paid		(1,934,950)		(3,471,000)
	Ending balance		54,981,050		56,916,000

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)

(34)	Long-term employee benefits payable (Cont’d)

(b)	The major actuarial assumptions used to determine the present value of defined benefit plan obligations of the Group
			30 June 2024		31 December 2023
	Discount rate		2.50%		2.50%
	Inflation rate		2.00%		2.00%
	Salaries and benefits growth rates		0%-6%		0%-6%
	Future mortality assumptions were determined based on the China Life Insurance Mortality Table (2010-2013), which is publicly available statistical information for the Chinese region.

(35)	Other non-current liabilities
		30 June 2024		31 December 2023
	Contract liabilities carried forward to revenue after 1 year (Note 4(24))	191,053,046		120,293,201

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(36)	Share capital
		31 December 2023		Movements for the current period										30 June 2024
				Shares newly issued		Bonus share		Transfer from capital surplus		Others		Sub-total
	Shares subject to trading restriction -
	Other domestic shares
	Including: Shares held by domestic non-state-owned legal persons	745,140		-		-		-		-		-		745,140
	Shares held by domestic natural persons	5,700		-		-		-		-		-		5,700
		750,840		-		-		-		-		-		750,840
	Shares not subject to trading restriction -
	Ordinary shares denominated in RMB	518,463,160		-		-		-		-		-		518,463,160
	Domestically listed foreign shares	344,000,000		-		-		-		-		-		344,000,000
		862,463,160		-		-		-		-		-		862,463,160
		863,214,000		-		-		-		-		-		863,214,000
	Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 30 June 2024, there were 750,840 shares currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(36)	Share capital (Cont’d)
		31 December 2022		Movements for the current period										31 December 2023
				Shares newly issued		Bonus share		Transfer from capital surplus		Others		Sub-total
	Shares subject to trading restriction -
	Other domestic shares
	Including: Shares held by domestic non-state-owned legal persons	745,140		-		-		-		-		-		745,140
	Shares held by domestic natural persons	5,700		-		-		-		-		-		5,700
		750,840		-		-		-		-		-		750,840
	Shares not subject to trading restriction -
	Ordinary shares denominated in RMB	518,463,160		-		-		-		-		-		518,463,160
	Domestically listed foreign shares	344,000,000		-		-		-		-		-		344,000,000
		862,463,160		-		-		-		-		-		862,463,160
		863,214,000		-		-		-		-		-		863,214,000

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(37)	Capital surplus
		31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Share premium	816,609,422		-		-		816,609,422
	Other capital surplus	22,833,068		-		-		22,833,068
		839,442,490		-		-		839,442,490
		31 December 2022		Increase in the current period		Decrease in the current period		31 December 2023
	Share premium	816,609,422		-		-		816,609,422
	Other capital surplus	22,833,068		-		-		22,833,068
		839,442,490		-		-		839,442,490

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(38)	Other comprehensive income
		Other comprehensive income in the balance sheet				Other comprehensive income in the income statement for the six months ended 30 June 2024
		31 December 2023	Attributable to the parent company after tax	30 June 2024		Amount incurred before income tax for the current period	Less: Transfer-out of previous other comprehensive income in the current period	Less: Income tax expenses	Attributable to the parent company after tax	Attributable to the subsidiary after tax
	Other comprehensive income that will not be reclassified to profit or loss
	Actuarial gains on defined benefit plans	(20,572,000)	-	(20,572,000)		-	-	-	-	-
		Other comprehensive income in the balance sheet				Other comprehensive income in the income statement for the year ended 31 December 2023
		31 December 2022	Attributable to the parent company after tax	31 December 2023		Amount incurred before income tax for the current period	Less: Transfer-out of previous other comprehensive income in the current period	Less: Income tax expenses	Attributable to the parent company after tax	Attributable to the subsidiary after tax
	Other comprehensive income that will not be reclassified to profit or loss
	Actuarial gains on defined benefit plans	(13,484,250)	(7,087,750)	(20,572,000)		(2,593,000)	-	(4,494,750)	(7,087,750)	-

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(39)	Surplus reserve

		31 December 2023		Increase in the current period		Decrease in the current period		30 June 2024
	Statutory surplus reserve	431,607,000		-		-		431,607,000

		31 December 2022		Increase in the current period		Decrease in the current period		31 December 2023
	Statutory surplus reserve	431,607,000		-		-		431,607,000
	In accordance with the Company Law of the People’s Republic of China, the Company’s Articles of Association and the resolution of the Board of Directors, the Company should appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than 50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the share capital upon approval from the appropriate authorities. As the accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered capital, no appropriation was made in the current period (2023: Nil).
	The Company reserves the discretionary surplus reserve after the shareholders’ meeting approves the proposal from the Board of Directors. The discretionary surplus reserve can be used to compensate for the losses incurred in prior years or increase the share capital upon approval from appropriate authorities.

(40)	Retained earnings
		Six months ended 30 June
		2024		2023
	Retained earnings at the beginning of the year	8,232,632,623		7,123,038,093
	Add: Net profit attributable to shareholders of the parent company for the current period	895,480,117		729,387,557
	Less: Ordinary share dividends payable (a)	(590,438,376)		(366,002,736)
	Retained earnings at the end of the year	8,537,674,364		7,486,422,914

(a)	According to the resolution of the meeting of Board of Directors on 28 Mar 2024, the Board of Directors proposed to distribute cash dividends of RMB0.684 per share to all shareholders of the Company, calculated on the basis of 863,214,000 issued shares, for a total of RMB590,438,376 , and the proposal was approved by the shareholders' meeting on 25 June 2024.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(41)	Revenue and cost of sales
		Six months ended 30 June
		2024		2023
	Revenue from main operations	17,435,844,213		15,204,056,146
	Revenue from other operations	484,221,588		225,316,163
		17,920,065,801		15,429,372,309

		Six months ended 30 June
		2024		2023
	Cost of sales from main operations	15,079,623,428		13,075,685,660
	Cost of sales from other operations	410,257,260		206,884,269
		15,489,880,688		13,282,569,929

(a)	Revenue and cost of sales from main operations
		Six months ended 30 June
		2024			2023
		Revenue from main operations	Cost of sales from main operations		Revenue from main operations	Cost of sales from main operations
	Sales of automobiles	16,234,132,009	14,124,912,768		13,332,827,137	11,574,416,648
	Sales of automobile parts	858,699,049	615,732,277		1,810,283,833	1,443,434,830
	Automobile maintenance services, etc.	343,013,155	338,978,383		60,945,176	57,834,182
		17,435,844,213	15,079,623,428		15,204,056,146	13,075,685,660

(b)	Revenue and cost of sales from other operations
		Six months ended 30 June
		2024			2023
		Revenue from other operations	Cost of sales from other operations		Revenue from other operations	Cost of sales from other operations
	Sales of materials	326,730,729	312,885,452		175,794,567	159,216,134
	Others	157,490,859	97,371,808		49,521,596	47,668,135
		484,221,588	410,257,260		225,316,163	206,884,269

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(41)	Revenue and cost of sales (Cont’d)
(c)	The breakdown of the Group’s revenue by product and service transfer time was as follows:
		Six months ended 30 June 2024
		Automobiles	Automobile parts	Automobile maintenance services, etc.	Materials and others	Total
	Revenue from main operations	16,234,132,009	858,699,049	343,013,155	-	17,435,844,213
	Including: Recognised at a time point	16,234,132,009	858,699,049	-	-	17,092,831,058
	Recognised within a certain period	-	-	343,013,155	-	343,013,155
	Revenue from other operations (i)	-	-	-	484,221,588	484,221,588
		16,234,132,009	858,699,049	343,013,155	484,221,588	17,920,065,801

		Six months ended 30 June 2023
		Automobiles	Automobile parts	Automobile maintenance services, etc.	Materials and others	Total
	Revenue from main operations	13,332,827,137	1,810,283,833	60,945,176	-	15,204,056,146
	Including: Recognised at a time point	13,332,827,137	1,810,283,833	-	-	15,143,110,970
	Recognised within a certain period	-	-	60,945,176	-	60,945,176
	Revenue from other operations (i)	-	-	-	225,316,163	225,316,163
		13,332,827,137	1,810,283,833	60,945,176	225,316,163	15,429,372,309

(i)	The Group's revenue from other operations includes sales of materials and technical service provided. Revenue from sales of materials is recognised at a certain time point, and revenue from technical service provided is recognised within a certain period.
	As at 30 June 2024, the amount of revenue corresponding to the performance obligations that the Group had contracted but had not commenced or completed was RMB532,790,065, of which the Group expects that RMB166,715,955 and RMB175,021,064 will be recognised as revenue from the sales of automobiles and parts and revenue from the sales of automobile maintenance services respectively in 2024, RMB191,053,046 will be recognised as revenue from automobile maintenance services from 2025 to 2029.
(42)	Taxes and surcharges
		Six months ended 30 June
		2024		2023
	Consumption tax	524,126,267		373,711,792
	City maintenance and construction tax	49,997,854		18,963,390
	Educational surcharge	49,882,499		18,884,757
	Stamp tax	29,026,562		8,613,872
	Land use tax	10,228,561		10,305,123
	Real estate tax	9,909,327		9,680,483
	Others	212,283		204,130
		673,383,353		440,363,547

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(43)	Selling and distribution expenses
		Six months ended 30 June
		2024		2023
	Promotion expenses	279,009,783		227,249,175
	Employee benefits	119,214,306		117,185,212
	Advertising and new product planning fees	54,490,620		70,042,801
	Storage expenses	24,921,332		25,782,982
	Packaging material expenses	15,610,119		15,619,732
	Depreciation and amortisation expenses	8,566,421		3,849,137
	Others	115,263,170		69,990,572
		617,075,751		529,719,611

(44)	General and administrative expenses
		Six months ended 30 June
		2024		2023
	Employee benefits	257,247,147		305,643,416
	Depreciation and amortisation expenses	60,085,504		74,160,233
	Trademark license fee	52,181,119		32,535,858
	Repair expenses	10,219,241		10,861,777
	Consulting fees	7,170,257		6,821,567
	General office expenses	5,334,911		6,348,243
	Others	68,267,648		83,743,847
		460,505,827		520,114,941

(45)	Research and development expenses
		Six months ended 30 June
		2024		2023
	Employee benefits	300,676,533		256,836,007
	Design fee	124,951,201		118,103,150
	Materials expenses	82,212,567		85,363,612
	Depreciation and amortisation expenses	42,867,809		138,004,437
	Others	66,529,617		149,828,569
		617,237,727		748,135,775

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(46)	Financial expenses
		Six months ended 30 June
		2024		2023
	Interest costs	8,911,864		12,140,837
	Add: Interest costs on lease liabilities	4,483,267		5,390,685
	Interest expenses	13,395,131		17,531,522
	Less: Interest income from cash at bank	(112,657,246)		(108,590,767)
	Other interest income	(3,905,129)		(7,883,210)
	Interest income	(116,562,375)		(116,473,977)
	Exchange gains or losses	15,075,445		4,937,885
	Others	436,332		698,209
		(87,655,467)		(93,306,361)

(47)	Expenses by nature
	The cost of sales, selling and distribution expenses, general and administrative expenses and research and development expenses in the income statement are listed as follows by nature:
		Six months ended 30 June
		2024		2023
	Changes in inventories of finished goods and work in progress	(23,323,145)		294,331,743
	Consumed raw materials and low value consumables, etc.	13,585,276,006		11,856,243,351
	Employee benefits	1,371,712,445		1,356,861,864
	Depreciation of fixed assets	485,221,314		442,918,223
	Amortisation of intangible assets	200,787,127		132,580,119
	Depreciation of right-of-use assets	41,568,134		36,087,214
	Transportation expenses	312,941,991		259,830,610
	Promotion expenses	279,009,783		227,249,175
	Warranties	169,166,499		126,130,480
	Design fee	124,951,201		118,103,150
	Advertising and new product planning fees	54,490,620		70,042,801
	Technology development expenses	112,555,295		75,714,080
	Fixed asset repair and maintenance expenses (a)	51,950,328		54,578,826
	Others	418,392,395		29,868,620
		17,184,699,993		15,080,540,256

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(47)	Expenses by nature (Cont’d)
(a)	The Group includes daily maintenance expenses ineligible for the capitalisation of fixed assets regarding the production and processing of inventories into cost of inventories, which will be carried forward to cost of sales, and those regarding the R&D Department, Administrative Department, and Sales Department are included in research and development expenses, management expenses and selling and distribution expenses respectively.
(48)	Asset impairment losses
		Six months ended 30 June
		2024		2023
	Losses on decline in the value of inventories	(4,296,473)		-

(49)	Credit impairment losses
		Six months ended 30 June
		2024		2023
	Losses on bad debts of accounts receivable	(2,199,927)		2,770,236
	Losses on bad debts of other receivables	(155,303)		(92,558)
	Losses on bad debts of notes receivable	(17,564)		(318,280)
	Losses on bad debts of long-term receivables	(14,909)		(23,520)
		(2,387,703)		2,335,878

(50)	Other income
			Six months ended 30 June			Asset related/
			2024		2023	Income related
	Government grants
	- Supporting funds by government		50,000,000		350,200,000	Income related
	- Research and development activities related subsidies		13,820,858		2,192,354	Income related
	- Equipment purchasing-related subsidies		805,357		805,357	Asset related
	- Other subsidies related with daily operation		11,752,761		5,446,243	Income related
	Additional deduction of input VAT, etc.		303,586,244		—	—
			379,965,220		358,643,954

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)

(51)	Investment income
		Six months ended 30 June
		2024		2023
	Losses on discount of financing receivables eligible for derecognition (Note 4(6))	-		(12,045,045)
	Losses on long-term equity investments under equity method	(2,527,255)		(3,893,639)
	Investment income from forward exchange settlement	5,982,935		2,524,896
	Investment income from financial assets held for trading	2,652,711		-
		6,108,391		(13,413,788)
	There is no significant restriction on the remittance of investment income of the Group.
(52)	Gains on changes in fair value
		Six months ended 30 June
		2024		2023
	Derivative financial assets and derivative financial liabilities -
	Gains on forward exchange contracts	4,970,251		4,114,063
	Financial assets at fair value through profit or loss -
	Structural deposits	(21,425)		136,000
		4,948,826		4,250,063

(53)	Gains on disposal of assets
		Six months ended 30 June				Amount recognised in non-recurring profit or loss For the six months ended 30 June 2024
		2024		2023
	Gains/ (Losses) on disposal of assets	10,657,596		(293,630)		10,657,596

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(54)	Non-operating income
		Six months ended 30 June				Amount recognised in non-recurring profit or loss For the six months ended 30 June 2024
		2024		2023
	Penalty income and Others	1,134,539		7,042,517		1,134,539

(55)	Non-operating expenses
		Six months ended 30 June						Amount recognised in non-recurring profit or loss For the six months ended 30 June 2024
		2024			2023
	Losses on scrapping of assets	65,698			462,383			65,698
	Donations	2,792,688			5,050			2,792,688
	Others	2,362,709			118,006			2,362,709
		5,221,095			585,439			5,221,095
(56)	Income tax expenses
			Six months ended 30 June
			2024				2023
	Current income tax calculated based on tax law and related regulations		4,274				(173,134,972)
	Deferred income tax		(56,973,528)				81,600,830
			(56,969,254)				(91,534,142)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(56)	Income tax expenses (Cont’d)

	The reconciliation from income tax calculated based on the applicable tax rates and total profit presented in the consolidated income statement to the income tax expenses is listed as follows:
		Six months ended 30 June
		2024		2023
	Total profit	553,915,575		355,082,666
	Income tax calculated at applicable tax rates	83,087,336		(38,901,653)
	Effect of different applicable tax rates	(71,290,587)		20,382,054
	Additional deductions	(72,828,094)		(90,087,306)
	Deductive loss and temporary differences of the unrecognised deferred tax asset in the current period	3,135,138		12,742,388
	Non-deductible investment losses	379,088		584,046
	Costs, expenses and losses not deductible for tax purposes	547,865		3,746,329
	Income tax expenses	(56,969,254)		(91,534,142)
(57)	Earnings per share
(a)	Basic earnings per share
	Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company by the weighted average number of outstanding ordinary shares of the parent company:
		Six months ended 30 June
		2024		2023
	Consolidated net profit attributable to ordinary shareholders of the parent company	895,480,117		729,387,557
	Weighted average number of ordinary shares outstanding issued by the Company	863,214,000		863,214,000
	Basic earnings per share	1.04		0.84
(b)	Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of outstanding ordinary shares of the Company. As there were no dilutive potential ordinary shares for the six months ended 30 June 2024 (the six months ended 30 June 2023: Nil), diluted earnings per share equalled to basic earnings per share.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(58)	Notes to the cash flow statement
	The Group does not present cash flows on a net basis, and the significant cash flow items are presented as follows:
(a)	Cash received relating to other operating activities
		Six months ended 30 June
		2024		2023
	Government grants	75,117,834		362,576,242
	Guarantees	18,017,968		22,162,178
	Others	25,748,723		20,552,818
		118,884,525		405,291,238

(b)	Cash paid relating to other operating activities
			Six months ended 30 June
			2024		2023
	Research and development expenses		279,544,973		468,474,355
	Promotion expenses		262,782,714		209,100,546
	Advertising expenses		106,878,573		79,645,485
	Maintenance expenses		34,102,249		43,587,238
	Trademark royalties		32,447,757		27,447,499
	Guarantees		29,075,464		33,126,160
	Consulting fees		24,608,124		25,157,593
	Others		288,779,796		258,633,384
			1,058,219,650		1,145,172,260
(c)		Cash received from disposal of investments
			Six months ended 30 June
			2024		2023
		Cash receipts on maturity from structural deposits	400,000,000		-

(d)	Cash paid to acquire investments
		Six months ended 30 June
		2024		2023
	Cash paid to purchase structural deposits	400,000,000		100,000,000

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(58)	Notes to the cash flow statement (Cont’d)
(e)	Cash received relating to other investing activities
		Six months ended 30 June
		2024		2023
	Interest from cash at bank	118,380,474		94,653,202
	Other interest	9,764,230		8,581,891
		128,144,704		103,235,093

(f)	Cash paid relating to other financing activities

		Six months ended 30 June
		2024			2023
	Payments of lease liabilities	12,923,965			9,449,108
	Payment of deposit on a bank acceptance bill	-			500,000,000
		12,923,965			509,449,108
(59)	Supplementary information to the cash flow statement
(a)	Supplementary information to the cash flow statement
	Reconciliation from net profit to cash flows from operating activities
			Six months ended 30 June
			2024				2023
	Net profit		610,884,829				446,616,808
	Add: Asset impairment losses (Note 4(48))		(4,296,473)				-
	Credit impairment losses (Note 4(49))		(2,387,703)				2,335,878
	Depreciation of fixed assets (Note 4(14))		485,221,314				442,918,223
	Amortisation of intangible assets (Note 4(17))		200,787,127				132,580,119
	Depreciation of right-of-use assets (Note 4(16))		41,568,134				36,087,214
	(Gains)/Losses on disposal of long-term assets		(10,591,898)				755,894
	Financial income		(88,092,019)				(94,004,623)
	Investment (Gains)/Losses(Note 4(51))		(6,108,391)				13,413,788
	Gains on changes in fair value (Note 4(52))		(4,948,826)				(4,250,063)
	Increase in deferred tax assets		(56,687,904)				(35,963,252)
	Decrease in deferred tax liabilities		(285,624)				(340,693)
	(Increase) /Decrease in inventories		(788,821,169)				308,145,911
	Increase/(Decrease) in provisions		30,899,260				(11,244,035)
	(Increase) /Decrease in operating receivables		(719,744,780)				694,355,906
	Increase/(Decrease) in operating payables		1,043,839,882				(233,209,908)
	Decrease/(Increase) in other cash and cash equivalents		2,093,918				(41,048,830)
	Net cash flows generated from operating activities		733,329,677				1,657,148,337

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(59)	Supplementary information to the cash flow statement (Cont’d)

(a)	Supplementary information to the cash flow statement (Cont’d)

	Net increase/(decrease) in cash and cash equivalents
		Six months ended 30 June
		2024		2023
	Cash and cash equivalents at the end of the year	10,967,680,201		9,258,663,984
	Less: Cash and cash equivalents at the beginning of the year	(11,746,518,615)		(8,543,193,654)
	Net (decrease)/increase in cash and cash equivalents	(778,838,414)		715,470,330

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(59)	Supplementary information to the cash flow statement (Cont’d)
(b)	Changes in liabilities arising from financing activities

	Bank borrowings (including the current portion)			Other accounts payable (including the current portion)		Lease liabilities (including the current portion)		Long-term receivables (including the current portion)		Total
31 December 2023	1,314,705,163			6,468,514		218,076,092		38,651,260		1,577,901,029
Cash inflows from financing activities	995,542,778			-		-		661,625		996,204,403
Cash outflows from financing activities	(1,806,527,811)			(164,458)		(12,923,965)		-		(1,819,616,234)
Interest accrued in the current period	8,748,014			163,850		4,483,268		-		13,395,132
Dividends accrued in the current period	-			590,438,376		-		-		590,438,376
Changes that do not involve cash receipts and payments	15,225			72,209		(28,256,709)		(5,290,749)		(33,460,024)
30 June 2024	512,483,369			596,978,491		181,378,686		34,022,136		1,324,862,682

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

4	Notes to the consolidated financial statements (Cont’d)
(59)	Supplementary information to the cash flow statement (Cont’d)
(c)	Cash and cash equivalents
		30 June 2024		31 December 2023
	Cash at bank available for payment at any time	9,683,853,944		10,653,646,811
	Cash at finance company available for payment at any time	1,283,826,257		1,092,871,804
		10,967,680,201		11,746,518,615

(i)	As in Note 4(1), other cash and cash equivalents of RMB18,760,506 as at 30 June 2024(31 December 2023: RMB20,854,424) was not included in cash and cash equivalents.
(60)	Foreign currency monetary items
		30 June 2024
		Amounts in foreign currencies		Translation exchange rate		Amounts in RMB
	Long-term borrowings -
	USD	229,195		7.1268		1,633,424
	Other payables -
	USD	14,701,984		7.1268		104,778,103
	EUR	33,288		7.6617		255,043
						105,033,146

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

5	Equity in other entities
(1)	Equity in subsidiaries
	Structure of the Group
	Subsidiaries	Main place of business		Place of registration	Registered capital	Nature of business	Shareholding (%)		Method of acquisition
							Direct	Indirect
	JMCS	Nanchang, Jiangxi		Nanchang, Jiangxi	50,000,000	Retail, wholesale and lease of automobiles	100%	-	Set up by investment
	JMCH	Taiyuan, Shanxi		Taiyuan, Shanxi	1,323,793,174	Manufacture and sales of automobiles	100%	-	Business combinations involving enterprises not under common control
	SZFJ	Shenzhen, Guangdong		Shenzhen, Guangdong	10,000,000	Retail, wholesale and lease of automobiles	100%	-	Set up by investment
	GZFJ	Guangzhou, Guangdong		Guangzhou, Guangdong	10,000,000	Retail, wholesale and lease of automobiles	100%	-	Set up by investment
	Jiangling Ford (Shanghai)(a)	Shanghai		Shanghai	200,000,000	Sales of automobiles, technical and business information consultation	51%	-	Set up by investment

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

5

Equity in other entities (Cont’d)

(1)

Equity in subsidiaries (Cont’d)

(a)

Subsidiaries with significant minority interests

The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders in the Group’s consolidated net profit, as follows:

Subsidiaries

Shareholding of minority shareholders

Total profit or loss attributable to minority shareholders for the year ended 30 June 2024

Dividends paid to minority shareholders for the year ended 30 June 2024

Minority interests as at 30 June 2024

Jiangling Ford (Shanghai)

49%

(284,595,288)

-

(649,868,406)

Key financial information of the above significant non-wholly owned subsidiaries is presented below.

As at June 30 2024

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Jiangling Ford (Shanghai)

379,335,434

525,626,149

904,961,583

2,217,698,379

13,525,255

2,231,223,634

		The six months ended 30 June 2024
		Revenue		Net loss		Total comprehensive loss		Cash flows from operating activities
	Jiangling Ford (Shanghai)	2,085,240,315		(580,806,710)		(580,806,710)		(316,803,331)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

5	Equity in other entities (Cont’d)
(2)	Equity in associates
(a)	General information of significant associates
	The Group determines the significant joint ventures and associates by taking into account factors such as whether the joint ventures and associates are listed companies, the proportion of their carrying amounts to the Group’s consolidated total assets, and the proportion of the investment income from long-term equity investments under equity method to the Group’s consolidated net profit, as set out below:

			Place of registration			Shareholding (%)
						Direct				Indirect
	Associate -
	The Power Company		Taiyuan, Shanxi			40%				-
(b)	Summarised financial information for significant associates
				30 June 2024				31 December 2023
				The Power Company				The Power Company
	Current assets			185,760,750				194,206,175
	Non-current assets			440,017,930				443,606,551
	Total assets			625,778,680				637,812,726
	Current liabilities			146,812,859				147,988,407
	Non-current liabilities			39,594				74,039
	Total liabilities			146,852,453				148,062,446
	Minority interests			191,570,491				195,900,112
	Equity attributable to shareholders of the parent company			287,355,736				293,850,168
	Share of net assets based on shareholding (i)			191,570,491				195,900,112
	Adjustments
	- Unrealised profits arising from internal transactions			(14,062,135)				(14,425,830)
	- Others (ii)			20,853,323				20,853,323
	Carrying amount of equity investments in associates			198,361,679				202,327,605

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

5	Equity in other entities (Cont’d)
(2)	Equity in associates (Cont’d)
(b)	Summarised financial information for significant associates (Cont’d)
		The six months ended 30 June
		2024		2023
		The Power Company			The Power Company
	Revenue	27,275,105			23,975,774
	Net loss	(10,982,624)			(12,707,406)
	Other comprehensive income	-			-
	Total comprehensive loss	(10,982,624)			(12,707,406)
	Dividends received from associates by the Group	-			-
(i)	The Group calculated the shares of net assets in proportion of the shareholdings and based on the amount attributable to the parent company of the associates in their consolidated financial statements. The amount in the consolidated financial statements of associates considers the fair value of identifiable assets and liabilities at the time of acquisition of the investments and the impact of adjustments to uniform accounting policies. None of the assets involved in transactions between the Group and associates contribute to business.
(ii)	Other adjustments were mainly the remeasurement of fair value of remaining equity in the consolidated financial statements, which resulted from the loss of control over the original subsidiary due to the disposal of part of the equity investment.

(c)	Summarised information of insignificant associates
		The six months ended 30 June
		2024		2023
	Aggregated carrying amount of investments	28,773,014		35,979,511
	Aggregate of the following items based on shareholding
	Net profit/(loss) (i)	1,438,671		(1,447,622)
	Other comprehensive income (i)	-		-
	Total comprehensive income/(loss)	1,438,671		(1,447,622)

(i)	Net profit and other comprehensive income have taken into account the fair value of identifiable assets and liabilities at the time of acquisition of the investments and the impact of adjustments to uniform accounting policies.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

6	Segment information
	Revenue and profits of the Group mainly arise from production and domestic sales of automobiles, and the primary assets of the Group are all located in China. Management of the Group assesses the operating performance of the Group as a whole. Therefore, no segment report is prepared for the current period. For the six months ended 30 June 2024, the revenue obtained from a single customer of the Group accounted for more than 10% of the Group’s revenue, amounting to RMB5,056,371,717 (the six months ended 30 June 2023: RMB4,775,490,540 ), or 28.22% (the six months ended 30 June 2023: 30.95% ), of the Group’s revenue.

7	Related parties and related party transactions
(1)	Information of major shareholders
(a)	General information of major shareholders
		Type of enterprise	Place of registration	Legal representative	Nature of business	Code of organisation
	JIC	State-owned enterprise	Nanchang, China	Qiu Tiangao	Investment and asset management	91360125MA38LUR91F
	Ford	Foreign enterprise	United States	William Clay Ford, Jr.	Manufacture and sales of automobiles	N/A
(b)	Registered capital and changes in major shareholders

		31 December 2023		Increase in the current period	Decrease in the current period			30 June 2024
	JIC	1,000,000,000		-	-			1,000,000,000
	Ford	USD 42,000,000		-	-			USD 42,000,000
(c)	The percentages of shareholding and voting rights in the Company held by major shareholders
			30 June 2024				31 December 2023

		Shareholding (%)	Voting rights (%)		Shareholding (%)	Voting rights (%)
	JIC	41.03%	41.03%		41.03%	41.03%
	Ford	32%	32%		32%	32%

(2)	Information of subsidiaries
	The general information and other related information of subsidiaries are set out in Note 5(1).
(3)	Information of associates
	The information of associates is set out in Note 4(13).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(4)	Information of other related parties
		Relationship with the Group
	JMCG	Shareholder of JIC
	Chongqing Changan Automobile Co., Ltd.(hereinafter referred to as “Chongqing Changan”)	Shareholder of JIC
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	Wholly-owned Subsidiary of JMCG
	Jiangxi Lingrui Recycling Resources Development Corporation	Wholly-owned Subsidiary of JMCG
	Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd.	Wholly-owned Subsidiary of JMCG
	Jiangxi JMCG Industry Co., Ltd.	Wholly-owned Subsidiary of JMCG
	JMCG Property Management Co.	Wholly-owned Subsidiary of JMCG
	JMCG Jingma Motors Co., Ltd.	Wholly-owned Subsidiary of JMCG
	Nanchang Gear Forging Co.,Ltd.	Wholly-owned Subsidiary of JMCG
	JMCF	Wholly-owned Subsidiary of JMCG
	Jiangxi Jiangling Chassis Co., Ltd.	Wholly-owned Subsidiary of JMCG
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	Wholly-owned Subsidiary of JMCG
	Nanchang JMCG Shishun Logistics Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi Mingfang Auto Parts Industry Co., Ltd.	Holding Subsidiary of JMCG
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi Jiangling Lear Interior System Co., Ltd.	Holding Subsidiary of JMCG
	Nanchang Unistar Electric & Electronics Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi ISUZU Engine Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi ISUZU Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi JMCG Specialty Vehicles Co., Ltd.	Holding Subsidiary of JMCG
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	Holding Subsidiary of JMCG
	Ford Motor Co. Thailand Ltd.	Wholly-owned Subsidiary of Ford
	Ford Global Technologies,LLC	Wholly-owned Subsidiary of Ford
	Ford Motor Research & Engineering (Nanjing) Co., Ltd.	Wholly-owned Subsidiary of Ford
	Ford Motor (China) Co., Ltd.	Wholly-owned Subsidiary of Ford
	Ford Trading Company, LLC	Wholly-owned Subsidiary of Ford
	Auto Alliance (Thailand) Co., Ltd.	Holding Subsidiary of Ford
	Ford Otomotiv Sanayi A.S.	Holding Subsidiary of Ford
	Ford Vietnam Limited	Holding Subsidiary of Ford
	Ford Electric Mach Technology (Nanjing) Co., Ltd	Holding Subsidiary of Ford
	Changan Ford Automobile Co., Ltd.	Joint venture of Ford
	Jiangling Material Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd.	Subsidiary under indirect control of JMCG
	Nanchang JMCG Xinchen Auto Component Co., Ltd.	Subsidiary under indirect control of JMCG
	Nanchang Lianda Machinery Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi JMCG Boya brake system Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangling Aowei Automobile Spare Part Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi JMCG Shangrao Industrial Co.,Ltd.	Subsidiary under indirect control of JMCG
	JMCG Jiangxi Engineering Construction Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	Subsidiary under indirect control of JMCG
	Nanchang Hengou Industry Co., Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	Subsidiary under indirect control of JMCG
	Jiangxi JMCG Motorhome Co.,Ltd.	Subsidiary under indirect control of JMCG
	China Changan Group Tianjin Sales Co., Ltd.	Group Subsidiary of Chongqing Changan
	Chongqing Anfu Vehicle Marketing Co., Ltd.	Group Subsidiary of Chongqing Changan
	Guizhou Wanfu Vehicle Sales & Service Co., Ltd.	Group Subsidiary of Chongqing Changan

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(4)	Information of other related parties (Cont'd)
		Relationship with the Group
	Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd.	Group Subsidiary of Chongqing Changan
	Chengdu Wanxing Vehicle Sales & Service Co., Ltd.	Group Subsidiary of Chongqing Changan
	Dali Wanfu Vehicle Sales & Service Co., Ltd.	Group Subsidiary of Chongqing Changan
	Guizhou Wanjia Automobile Sales and Service Co. LTD	Group Subsidiary of Chongqing Changan
	Beijing Beifang Changfu Vehicle Sales & Service Co., Ltd.	Group Subsidiary of Chongqing Changan
	Chongqing Anbo Vehicle Sales Co., Ltd.	Group Subsidiary of Chongqing Changan
	Nanchang Yinlun Heat-exchanger Co., Ltd.	Joint venture of JMCG
	Dibao transportation equipment (Nanchang) Co., Ltd	Associate of JMCG
	Magna PT Powertrain (Jiangxi) Co., Ltd.	Associate of JMCG
	Nanchang Baojiang Steel Processing Distribution Co., Ltd.	Associate of JMCG
	Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.	Associate of JMCG
	Jiangxi Lingyun Automobile Industry Technology Co., Ltd	Associate of JMCG
	Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.	Associate of JMCG
	Jiangxi Jiangling Group Special Vehicle Co., Ltd.	Associate of JMCG
	Jiangling Motor Holdings Co., Ltd.	Associate of JMCG

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions
(a)	Purchase and sales of goods, provision and receipt of services
	Purchase of goods:
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Ford	Purchase of automobile parts	780,177,730		70,921,401
	Magna PT Powertrain (Jiangxi) Co., Ltd.	Purchase of automobile parts	600,584,838		612,879,253
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	Purchase of automobile parts	590,768,738		573,081,318
	Nanchang Baojiang Steel Processing Distribution Co., Ltd.	Purchase of raw materials	405,780,356		338,563,188
	Jiangxi Jiangling Chassis Co., Ltd.	Purchase of automobile parts	393,178,316		298,114,886
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	Purchase of automobile parts	377,760,824		296,110,915
	Jiangxi Jiangling Lear Interior System Co., Ltd.	Purchase of automobile parts	347,400,376		354,855,203
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	Purchase of automobile parts	264,589,567		262,668,568
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	Purchase of automobile parts	177,941,031		134,266,900
	Nanchang Unistar Electric & Electronics Co., Ltd.	Purchase of automobile parts	116,897,654		141,928,577
	Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.	Purchase of automobile parts	108,646,612		184,385,384
	Jiangxi Lingyun Automobile Industry Technology Co., Ltd	Purchase of automobile parts	97,543,965		100,142,856
	Nanchang JMCG Shishun Logistics Co., Ltd.	Purchase of automobile parts	87,848,436		94,684,781
	Ford Motor Co. Thailand Ltd.	Purchase of automobile parts	68,314,885		1,056,616
	Changan Ford Automobile Co., Ltd.	Purchase of automobile parts	68,157,110		16,978,981
	Hanon Systems	Purchase of automobile parts	66,928,237		78,188,938
	Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.	Purchase of automobile parts	60,847,557		56,603,368
	Nanchang Yinlun Heat-exchanger Co., Ltd.	Purchase of automobile parts	58,593,286		59,390,004
	Dibao transportation equipment (Nanchang) Co., Ltd	Purchase of automobile parts	35,165,670		26,955,832

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Purchase of goods (Cont’d):
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.	Purchase of automobile parts	33,360,233		35,681,186
	Jiangxi JMCG Specialty Vehicles Co., Ltd.	Purchase of automobile parts	28,757,183		9,438,144
	Jiangxi Jiangling Group Special Vehicle Co., Ltd.	Purchase of automobile parts	23,270,189		19,397,071
	JMCG	Purchase of automobile parts	22,525,005		2,515,904
	Jiangxi Lingrui Recycling Resources Development Corporation	Purchase of raw materials	16,477,867		15,092,027
	Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd.	Purchase of raw materials	15,562,142		4,674,040
	Nanchang Lianda Machinery Co., Ltd.	Purchase of automobile parts	15,348,196		19,699,255
	Jiangxi JMCG Shangrao Industrial Co.,Ltd.	Purchase of automobile parts	13,577,892		419,588
	Jiangxi JMCG Boya brake system Co., Ltd.	Purchase of automobile parts	11,236,000		9,926,780
	Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd.	Purchase of automobile parts	10,743,777		6,039,341
	Jiangxi Mingfang Auto Parts Industry Co., Ltd.	Purchase of automobile parts	5,908,983		3,910,008
	Jiangling Aowei Automobile Spare Part Co., Ltd.	Purchase of automobile parts	5,562,150		5,647,036
	Nanchang JMCG Xinchen Auto Component Co., Ltd.	Purchase of automobile parts	3,127,958		3,920,960
	Auto Alliance (Thailand) Co., Ltd.	Purchase of automobile parts	2,915,565		12,302,972
	Jiangling Motor Holdings Co., Ltd.	Purchase of automobile parts	1,126,880		2,613,788
	Nanchang Gear Forging Co.,Ltd.	Purchase of automobile parts	1,061,737		937,224
	JMCG Jingma Motors Co., Ltd.	Purchase of automobile parts	1,038,886		-
	Jiangling Material Co., Ltd.	Purchase of raw materials	-		9,453,368
	Jiangxi ISUZU Engine Co., Ltd.	Purchase of automobile parts	40,104		5,843,600
	Ford Otomotiv Sanayi A.S.	Purchase of automobile parts	952,875		3,709,077
	Other related parties	Purchase of automobile parts	230,563		941,523
			4,919,949,373		3,873,939,861

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Purchase of goods (Cont’d):
	The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic parts. ? The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties; ? The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation between the two parties, and is adjusted regularly.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Receipt of services:
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Nanchang JMCG Shishun Logistics Co., Ltd.	Transportation, removal fee, etc.	147,357,676		138,271,507
	Ford Global Technologies,LLC	Trademark management fees, technology development	130,437,253		105,294,784
	JMCG Jiangxi Engineering Construction Co., Ltd.	Engineering construction	117,416,875		4,494,827
	Ford Motor Research & Engineering (Nanjing) Co., Ltd.	Design fee, Personnel costs	73,479,037		102,360,446
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	Cartage fee, storage fee, etc.	45,941,842		42,263,367
	Ford	Technical services and personnel costs	27,438,900		16,941,345
	Ford Motor (China) Co., Ltd.	Design fee, Personnel costs, etc.	27,098,764		25,690,619
	Jiangxi JMCG Industry Co., Ltd.	Meals	16,543,562		15,784,854
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	Agency fee, advertising fee, etc.	9,290,495		7,490,617
	JMCG Property Management Co.	Property fees, labour costs, etc.	7,073,104		5,496,458
	Chongqing Anfu Vehicle Marketing Co., Ltd.	Warranty and promotion	1,604,135		941,548
	Chongqing Changan Automobile Co., Ltd.	Personnel costs	1,287,423		1,165,327
	Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	Promotion	1,180,264		107,509
	JMCG	Labour fee, rental fee, etc.	349,520		9,035,774
	Ford Otomotiv Sanayi A.S.	Technical services and technical development	430,426		4,048,186
	Changan Ford Automobile Co., Ltd.	Service fee, labour costs, etc.	703,553		2,659,578
	Magna PT Powertrain (Jiangxi) Co., Ltd.	Design fee, experimental costs	190,790		1,728,126
	China Changan Group Tianjin Sales Co., Ltd.	Warranty and promotion	500,867		1,184,253

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Receipt of services (Cont’d):
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	Design fee, experimental costs	-		1,000,000
	Other related parties		4,364,219		4,476,521
			612,688,705		490,435,646
	The Group’s pricing on services received from related parties is based on the agreed price by both parties.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Sales of goods and provision of services:
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	Sales of vehicles and accessories, etc.	5,042,910,917		4,771,391,370
	JMCG Jingma Motors Co., Ltd.	Sales of vehicles and accessories	67,278,640		66,150,936
	Chongqing Anfu Vehicle Marketing Co., Ltd.	Sales of vehicles and accessories	55,047,669		28,322,195
	Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	Sales of vehicles	49,551,991		96,069,902
	China Changan Group Tianjin Sales Co., Ltd.	Sales of vehicles and accessories	45,621,776		21,666,937
	Chongqing Anfu Vehicle Marketing Co., Ltd.	Sales of vehicles and accessories	43,979,176		25,855,442
	Jiangxi JMCG Specialty Vehicles Co., Ltd.	Sales of vehicles and accessories	35,660,121		36,125,691
	Jiangxi Lingrui Recycling Resources Development Corporation	Sales of waste materials, etc.	33,437,495		29,443,114
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	Sales of accessories	33,330,915		448,728
	Guizhou Wanfu Vehicle Sales & Service Co., Ltd.	Sales of vehicles and accessories	25,337,145		27,313,444
	Jiangxi Jiangling Chassis Co., Ltd.	Sales of accessories	17,336,576		21,409,740
	Jiangxi ISUZU Engine Co., Ltd.	Sales of accessories	16,335,938		14,870,252
	Dali Wanfu Vehicle Sales & Service Co., Ltd.	Sales of vehicles and accessories	14,599,239		18,605,372
	Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.	Sales of accessories	14,319,726		9,072,055
	Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd.	Sales of vehicles and accessories	11,027,317		11,354,377
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	Sales of accessories	10,562,548		1,324,600
	Jiangxi Jiangling Lear Interior System Co., Ltd.	Sales of accessories	8,935,487		10,950,458
	Nanchang Hengou Industry Co., Ltd.	Sales of accessories and labor costs	8,697,566		4,772,985
	Jiangxi ISUZU Co., Ltd.	Sales of accessories	8,510,068		10,806,891
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	Sales of accessories	8,093,548		3,427,362

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(a)	Purchase and sales of goods, provision and receipt of services (Cont’d)
	Sales of goods and provision of services (Cont’d):
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Guizhou Wanjia Automobile Sales and Service Co. LTD	Sales of vehicles and accessories	7,248,862		10,915,251
	Beijing Beifang Changfu Vehicle Sales & Service Co., Ltd.	Sales of vehicles and accessories	4,420,133		10,989,264
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	Sales of vehicles and accessories	2,800,546		6,367,741
	Jiangxi JMCG Industry Co., Ltd.	Sales of accessories and waste materials	1,704,763		1,388,357
	Dali Wanfu Vehicle Sales & Service Co., Ltd.	Sales of vehicles and accessories	140,934		13,177,316
	Chongqing Anbo Vehicle Sales Co., Ltd.	Sales of vehicles and accessories	1,657		6,332,539
	JMCG	Sales of accessories and labor costs	8,415		1,722,665
	Other related parties		2,866,316		3,175,327
			5,569,765,484		5,263,450,311
	The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(b)	Leases

(i)	The lease income recognised in the current period with the Group as the lessor:
			Six months ended 30 June
	Name of the lessee	Type of the leased asset	2024		2023
	Jiangling Motor Holdings Co., Ltd.	Buildings	14,727		-
	Jiangxi JMCG Motorhome Co., Ltd.	Buildings	-		2,945
			14,727		2,945

(ii)	Increase of right-of-use assets in the current period with the Group as the lessee
			Six months ended 30 June
	Name of the lessor	Type of the leased asset	2024		2023
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	Buildings	37,552,314		-

(iii)	Interest costs on lease liabilities in the current period with the Group as the lessee:
				Six months ended 30 June
			Type of the leased asset	2024		2023
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.		Buildings	426,978		162,032
	JMCG		Buildings	301,701		114,569
				728,679		276,601

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)

(c)	Guarantee received
	Guarantor	Guaranteed amount	Starting date	Ending date	Fully performed or not
	JMCF	1,633,424	5 March 2001	30 October 2029	Not fully performed

For the six months ended 30 June 2024, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD2,282,123. As at 30 June 2024, JMCF provided borrowing guarantee to the bank borrowing of USD229,165, equivalent to RMB1,633,424 (31 December 2023: USD261,937, equivalent to RMB1,855,219) for the Group.

(d)	Transfer of assets
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	JMCG Jingma Motors Co., Ltd.	Sales of fixed assets	44,381		-
	Jiangxi JMCG Industry Co., Ltd.	Sales of fixed assets	4,442		-
	Jiangxi Lingrui Recycling Resources Development Corporation	Sales of fixed assets	-		121,707
			48,823		121,707
	The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(e)	Purchase of assets
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	Purchase of fixed assets	11,714,950		21,138,257
	JMCG Jingma Motors Co., Ltd.	Purchase of fixed assets	3,928,253		-
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	Purchase of fixed assets	2,140,583		9,584,000
	Jiangxi Jiangling Lear Interior System Co., Ltd.	Purchase of fixed assets	2,079,737		535,980
	Magna PT Powertrain (Jiangxi) Co., Ltd.	Purchase of fixed assets	738,376		2,800,000
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	Purchase of fixed assets	-		4,009,591
	Jiangxi JMCG Specialty Vehicles Co., Ltd.	Purchase of fixed assets	-		456,637
			20,601,899		38,524,465
	The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)
(f)	Provision of technology sharing and distribution service
			Six months ended 30 June
		Nature of related party transactions	2024		2023
	Ford Motor (China) Co., Ltd.	Distribution and technical service	12,653,421		5,784,640
	Ford Electric Mach Technology (Nanjing) Co., Ltd	Technical service	55,406,177		-
	Ford Motor Research & Engineering (Nanjing) Co., Ltd.	Technical service	19,141,233		19,180,000
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	Technical service	13,958,000		4,099,170
	Ford Vietnam Limited	Technical service	7,250,000		5,100,000
	Ford Trading Company, LLC	Technical service	2,450,000		1,509,518
	Ford	Technical service	-		3,283,725
	Jiangxi ISUZU Co., Ltd.	Technical service	-		2,274,000
			110,858,831		41,231,053
	The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(5)	Related party transactions (Cont’d)

(g)	Remuneration of key management
		Six months ended 30 June
		2024		2023
	Remuneration of key management	9,376,278		7,593,376
(h)	Interest income
		Six months ended 30 June
		2024		2023
	JMCF	8,461,182		7,308,840
	Cash at bank of the Group deposited with JMCF was calculated based on the bank annual interest rate for RMB deposit of 1.35% to 2.25% over the same period (the six months ended 30 June 2023: 1.35% to 2.25%).
(i)	Interest expenses
		Six months ended 30 June
		2024		2023
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	120,000		120,000
	Nanchang JMCG Shishun Logistics Co., Ltd.	30,000		30,000
		150,000		150,000

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(6)	Receivables from and payables to related parties
		30 June 2024				31 December 2023
		Amount		Provision for bad debts		Amount		Provision for bad debts
	Accounts receivable
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	3,164,810,120		(6,563,795)		2,681,807,388		(5,431,789)
	JMCG Jingma Motors Co., Ltd.	35,808,509		(89,645)		32,388,453		(106,014)
	Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	18,520,425		(55,561)		304,992		(915)
	Jiangxi JMCG Specialty Vehicles Co., Ltd.	11,985,421		(13,362)		39,985,715		(48,790)
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	6,973,091		(20,919)		1,275,203		(3,826)
	Ford Motor (China) Co., Ltd.	6,683,318		(20,050)		4,507,064		(13,521)
	Jiangxi ISUZU Co., Ltd.	6,361,320		(19,084)		11,507,006		(34,521)
	Jiangxi ISUZU Engine Co., Ltd.	5,656,047		(16,968)		9,873,973		(29,622)
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	3,601,881		(10,806)		2,938,482		(8,815)
	Jiangxi Jiangling Lear Interior System Co., Ltd.	3,100,951		(9,303)		3,792,069		(11,376)
	Chongqing Anfu Vehicle Marketing Co., Ltd.	2,871,945		(3,112)		137,378		(412)
	Guizhou Wanfu Vehicle Sales & Service Co., Ltd.	1,295,493		(1,627)		312,271		(937)
	Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	-		-		7,564,961		(9,076)
	Jiangxi Jiangling Group Special Vehicle Co., Ltd.	-		-		5,471,828		(6,565)
	Ford Vietnam Limited	-		-		5,320,000		(15,960)
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	10,657		(32)		2,827,718		(144,662)
	Nanchang Hengou Industry Co., Ltd.	235,533		(1,015)		2,114,644		(6,344)
	Other related parties	3,093,854		(36,762)		3,013,670		(10,711)
		3,271,008,565		(6,862,041)		2,815,142,815		(5,883,856)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(6)	Receivables from and payables to related parties (Cont’d)
		30 June 2024				31 December 2023
		Amount		Provision for bad debts		Amount		Provision for bad debts
	Other receivables
	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	31,727,323		(111,046)		8,636,151		(67,362)
	JMCG Jingma Motors Co., Ltd.	19,289		(68)		4,614,745		(35,995)
	Other related parties	142,282		(498)		245,356		(1,914)
		31,888,894		(111,612)		13,496,252		(105,271)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(6)	Receivables from and payables to related parties (Cont’d)
			30 June 2024		31 December 2023
	Advances to suppliers	Nanchang Baojiang Steel Processing Distribution Co., Ltd.	102,559,416		144,390,937
	Advances for engineering	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	1,400,293		-
	Financing receivables	Jiangxi JMCG Specialty Vehicles Co., Ltd.	62,457,410		43,000,000
		JMCG Jingma Motors Co., Ltd.	15,695,681		11,000,000
		Jiangxi ISUZU Engine Co., Ltd.	3,796,669		1,264,651
		Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	1,412,700		-
		Jiangxi ISUZU Co., Ltd.	-		3,950,000
			83,362,460		59,214,651
	Cash at bank	JMCF	1,283,826,257		1,092,871,804
	Transactions with JMCF	JMCF	8,029,846,798		13,982,325,897
	For the six months ended 30 June 2024, the amount of sales and other transactions settled by JMCF was RMB8,029,846,798 (the six months ended 30 June 2023: RMB6,450,656,589), of which the Group didn’t have sales amount settled through the buyer-paid interest discounting business of electronic commercial notes (the six months ended 30 June 2023: Nil). As at 30 June 2024, the Group didn’t have trade acceptance notes discounted but unmatured arising from the above business (31 December 2023: Nil). The Group has transferred almost all the risks and rewards of ownership of electronic commercial notes, which have been therefore derecognised.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(6)	Receivables from and payables to related parties (Cont’d)
			30 June 2024		31 December 2023
	Accounts payable	Ford	609,543,518		86,590,606
		Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	519,316,782		526,325,735
		Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	469,838,629		393,207,678
		Jiangxi Jiangling Lear Interior System Co., Ltd.	387,303,612		365,099,029
		Jiangxi Jiangling Chassis Co., Ltd.	280,118,513		251,320,872
		Magna PT Powertrain (Jiangxi) Co., Ltd.	197,131,812		271,344,575
		Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	194,276,764		194,714,700
		Nanchang JMCG Liancheng Auto Component Co., Ltd.	173,450,088		202,046,109
		Nanchang JMCG Shishun Logistics Co., Ltd.	98,381,564		89,401,630
		Hanon Systems	84,617,019		28,561,752
		Jiangxi Lingyun Automobile Industry Technology Co., Ltd	72,860,526		46,765,963
		Changan Ford Automobile Co., Ltd.	58,855,075		5,740,862
		Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.	51,757,077		62,653,105
		Nanchang Unistar Electric & Electronics Co., Ltd.	42,568,572		64,278,792
		Nanchang Yinlun Heat-exchanger Co., Ltd.	40,336,392		33,494,753
		Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.	37,973,665		34,028,487
		Jiangxi JMCG Specialty Vehicles Co., Ltd.	31,845,359		22,470,866
		Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.	25,482,365		33,447,909
		JMCG	21,249,491		1,812,893
		Dibao transportation equipment (Nanchang) Co., Ltd	21,125,839		28,378,407
		Jiangxi Jiangling Group Special Vehicle Co., Ltd.	20,876,373		10,453,228
		Jiangxi Lingrui Recycling Resources Development Corporation	14,540,189		19,443,919
		Ford Motor Co. Thailand Ltd.	13,848,074		2,269,745
		Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd.	11,935,808		1,485,717
		Nanchang Lianda Machinery Co., Ltd.	8,053,983		13,769,421
		Jiangxi JMCG Boya brake system Co., Ltd.	7,854,139		8,114,273
		Jiangxi JMCG Shangrao Industrial Co.,Ltd.	7,690,548		3,108,061
		Jiangling Motor Holdings Co., Ltd.	7,256,556		6,295,798
		Jiangxi Mingfang Auto Parts Industry Co., Ltd.	6,322,560		3,734,394
		Jiangling Aowei Automobile Spare Part Co., Ltd.	6,050,276		6,868,703
		Nanchang JMCG Xinchen Auto Component Co., Ltd.	2,553,480		3,571,782
		JMCG Jingma Motors Co., Ltd.	1,926,000		887,114
		Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd.	1,422,987		2,102,733
		Other related parties	2,339,595		2,651,442
			3,530,703,230		2,826,441,053

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(6)	Receivables from and payables to related parties (Cont’d)
			30 June 2024		31 December 2023
	Other payables	Ford	71,311,805		91,949,142
		Ford Global Technologies,LLC	57,425,174		66,643,015
		Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	49,812,222		44,553,591
		Ford Motor Research & Engineering (Nanjing) Co., Ltd.	32,861,632		33,884,078
		Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	26,418,240		23,662,480
		JMCG Jiangxi Engineering Construction Co., Ltd.	24,946,943		64,113,619
		Ford Motor (China) Co., Ltd.	12,496,140		16,138,211
		Nanchang JMCG Shishun Logistics Co., Ltd.	12,001,215		10,400,985
		Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	9,870,130		10,086,404
		JMCG Property Management Co.	7,005,448		6,473,088
		JMCG Jingma Motors Co., Ltd.	5,229,684		351,539
		Jiangxi JMCG Specialty Vehicles Co., Ltd.	4,851,666		5,072,940
		Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	4,493,407		4,420,456
		Nanchang JMCG Liancheng Auto Component Co., Ltd.	4,011,339		8,149,662
		Jiangxi Zhonglian Intelligent Logistics Co., Ltd.	3,925,744		2,724,194
		Jiangxi JMCG Industry Co., Ltd.	2,743,422		3,100,412
		JMCG	2,445,557		2,445,557
		Chongqing Changan Automobile Co., Ltd.	1,287,423		2,394,350
		Hanon Systems	1,283,100		1,283,100
		Jiangxi Jiangling Group Special Vehicle Co., Ltd.	1,144,925		2,565,523
		Jiangxi Jiangling Lear Interior System Co., Ltd.	1,009,469		55,243
		Guizhou Wanfu Vehicle Sales & Service Co., Ltd.	214,002		1,696,615
		Ford Otomotiv Sanayi A.S.	517,159		1,425,533
		Changan Ford Automobile Co., Ltd.	206,904		1,010,529
		Other related parties	6,086,524		6,754,911
			343,599,274		411,355,177
	Contract liabilities	Ford Electric Mach Technology (Nanjing) Co., Ltd	55,113,623		-
		Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.	4,742,349		-
		Ford Motor Research & Engineering (Nanjing) Co., Ltd.	4,616,981		23,208,214
		Ford Vietnam Limited	2,920,000		-
		Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	2,538,000		-
		Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	2,341,635		-
		Chengdu Wanxing Vehicle Sales & Service Co., Ltd.	1,202,447		1,350,217
		Guizhou Wanfu Vehicle Sales & Service Co., Ltd.	1,007,193		6,142,607
		Chongqing Anbo Vehicle Sales Co., Ltd.	19,545		1,098,689
		Other related parties	2,802,328		2,683,591
			77,304,101		34,483,318
	Lease liabilities	Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.	36,843,890		1,390,961
		JMCG	11,418,895		17,016,922
			48,262,785		18,407,883

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

7	Related parties and related party transactions (Cont’d)
(7)	Commitments in relation to related parties

	Capital commitments
		30 June 2024				31 December 2023
	JMCG Jiangxi Engineering Construction Co., Ltd.	4,971,108				19,956,147
	Nanchang Jiangling HuaXiang Auto Components Co., Ltd.	-				15,677,612
	Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.	-				11,091,570
	Nanchang JMCG Liancheng Auto Component Co., Ltd.	-				4,678,200
	Magna PT Powertrain (Jiangxi) Co., Ltd.	-				791,000
		4,971,108				52,194,529
	Guarantee of commitments in relation to related parties is set out in Note 7(5)(c).
8	Contingencies
	As at 30 June 2024, the Group had no contingencies that needed to be disclosed in the notes to the financial statements.
9	Commitments
	Capital expenditure commitments
	Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the balance sheet as at the balance sheet date are as follows:
			30 June 2024				31 December 2023
	Buildings, machinery and equipment		679,031,000				636,424,000

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

10	Financial instrument and risk
	The Group’s activities expose it to a variety of financial risks, which mainly comprise market risk (primarily including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The above financial risks and the Group’s risk management policies to mitigate the risks are as follows: The Board of Directors is responsible for planning and establishing the Group’s risk management framework, formulating the Group’s risk management policies and related guidelines, and supervising the implementation of risk management measures. The Group has established risk management policies to identify and analyse the risks faced by the Group. These risk management policies specify the risks such as market risk, credit risk and liquidity risk management. The Group regularly evaluates the market environment and changes in the Group’s operating activities to determine whether to update the risk management policies and systems or not. The Group’s risk management is carried out by the Risk Management Committee under policies approved by the Board of Directors. The Risk Management Committee works closely with other business departments of the Group to identify, evaluate and avoid relevant risks. The internal audit department of the Group conducts periodical audit to the controls and procedures for risk management and reports the audit results to the Audit Committee of the Group.

(1)	Market risk
(a)	Foreign exchange risk
	The Group’s major operational activities are carried out in the mainland China and a majority of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to USD. The Group continuously monitors the amount of assets and liabilities, and transactions denominated in foreign currencies to minimise the foreign exchange risk. As at 30 June 2024, the Group’s borrowings denominated in foreign currencies were USD229,195, equivalent to RMB1,633,424. The Group signed forward exchange contracts to mitigate the foreign exchange risk(Note 4(3), Note 4(30)).

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

10	Financial instrument and risk (Cont’d)
(1)	Market risk (Cont’d)
(a)	Foreign exchange risk (Cont’d)
	The financial assets and financial liabilities denominated in foreign currencies, which were held by the Group, were expressed in RMB as at 30 June 2024 and 31 December 2023 as follows:
				30 June 2024
				USD		EUR		Total
	Financial assets denominated in foreign currency -
	Derivative financial assets			4,510,945		-		4,510,945
	Financial liabilities denominated in foreign currency -
	Current portion of long-term borrowings			466,692		-		466,692
	Long-term borrowings			1,166,732		-		1,166,732
	Other payables			104,778,103		255,043		105,033,146
				106,411,527		255,043		106,666,570

			31 December 2023
			USD		EUR		Total
	Financial liabilities denominated in foreign currency -
	Derivative financial liabilities		459,306		-		459,306
	Current portion of long-term borrowings		463,805		-		463,805
	Long-term borrowings		1,391,414		-		1,391,414
	Other payables		143,725,731		261,617		143,987,348
			146,040,256		261,617		146,301,873

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

10	Financial instrument and risk (Cont’d)
(1)	Market risk (Cont’d)
(a)	Foreign exchange risk (Cont’d)

As at 30 June 2024, for the financial assets and liabilities dominated in foreign currencies, if the RMB had strengthened/weakened by 10% against the USD while all other variables had been held constant, the Group’s net profit would have been approximately RMB8,618,385 (31 December 2023: approximately RMB12,370,525) higher/lower.

(b)	Interest rate risk
	The Group’s interest rate risk mainly arises from interest-bearing debts such as short-term borrowings and long-term borrowings. The financial liabilities of floating interest rate expose the Group to cash flow interest rate risk, and the financial liabilities of fixed interest rate expose the Group to fair value interest rate risk. The Group determines the relative proportions of fixed-rate and floating-rate contracts based on the prevailing market environment. As at 30 June 2024, the Group’s short-term borrowings of RMB500,000,000 (31 December 2023: RMB1,300,000,000) were fixed-rate borrowings, and long-term borrowings of USD229,195 (31 December 2023: USD261,937) were fixed-rate contracts, long-term borrowings of RMB10,849,945 (31 December 2023: RMB12,849,944) were fixed-rate contracts, therefore there was no significant cash flow interest rate risk.
	The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new borrowing and the interest costs with respect to the Group’s outstanding floating rate borrowings, and therefore could have a material adverse effect on the Group’s financial performance. Management makes adjustments timely with reference to the latest market conditions and may enter into interest rate swap agreements to mitigate its exposure to interest rate risk. During the first half of 2024 and 2023, the Group did not enter into any interest rate swap agreements.
	As at 30 June 2024 and 31 December 2023, there was no significant difference between the fair value and the carrying amount of the Group’s bank borrowings with fixed rates.
(2)	Credit risk
	The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable, accounts receivable, financing receivables, other receivables, long-term receivables and derivative financial assets at fair value through profit or loss that are not included in the impairment assessment scope. The carrying amount of the Group’s financial assets reflects its maximum credit exposure at the balance sheet date.
	The Group expects that there is no significant credit risk associated with cash at bank and on hand since they are deposited at state-owned banks and other large or medium size banks with good reputation and high credit rating. The Group does not expect that there will be significant losses from non-performance by these banks.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

10	Financial instrument and risk (Cont’d)
(2)	Credit risk (Cont’d)

	The Group has policies to limit the credit exposure on notes receivable, accounts receivable, financing receivables, other receivables and long-term receivables. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
	As at 30 June 2024, the Group had no significant collateral or other credit enhancements held as a result of the debtor’s mortgage (31 December 2023: Nil).

(3)	Liquidity risk
	Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity requirements to ensure it has sufficient cash, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.

As at the balance sheet date, the financial liabilities of the Group were analysed by their maturity date below at their undiscounted contractual cash flows:

			30 June 2024
			Within 1 year		1 to 2 years		2 to 5 years		Over 5 years		Total
	Short-term borrowings		500,000,000		-		-		-		500,000,000
	Accounts payable		10,503,654,457		-		-		-		10,503,654,457
	Other payables		6,461,271,467		-		-		-		6,461,271,467
	Lease liabilities		97,707,702		81,386,193		11,806,277		-		190,900,172
	Long-term borrowings		11,343,490		482,443		710,540		-		12,536,473
			17,573,977,116		81,868,636		12,516,817		-		17,668,362,569

			31 December 2023
			Within 1 year		1 to 2 years		2 to 5 years		Over 5 years		Total
	Short-term borrowings		1,304,453,333		-		-		-		1,304,453,333
	Derivative financial liabilities		459,306		-		-		-		459,306
	Accounts payable		9,476,215,223		-		-		-		9,476,215,223
	Other payables		5,944,976,093		-		-		-		5,944,976,093
	Lease liabilities		87,312,608		76,170,689		66,393,248		-		229,876,545
	Long-term borrowings		13,361,423		482,936		945,003		-		14,789,362
			16,826,777,986		76,653,625		67,338,251		-		16,970,769,862

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

10	Financial instrument and risk (Cont’d)
(3)	Liquidity risk (Cont’d)
(i)	As at 30 June 2024, the Group did not have lease contracts that had been signed but had not yet been performed.
11	Fair value estimates
	The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement:
	Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
	Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
	Level 3: Unobservable inputs for the asset or liability.

(1)	Assets and liabilities measured at fair value on a recurring basis
	As at 30 June 2024, the assets measured at fair value on a recurring basis by the above three levels were analysed below:
		Level 1		Level 2		Level 3		Total
	Financial assets
	Financial assets held for trading – Structured deposits	-		200,583,452		-		200,583,452
	Derivative financial assets -
	Forward foreign exchange contracts	-		4,510,945		-		4,510,945
	Financing receivables -
	Notes receivable	-		-		274,777,232		274,777,232
		-		205,094,397		274,777,232		479,871,629
	As at 30 June 2024, the group didn’t have liabilities measured at fair value on a recurring basis.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

11	Fair value estimates (Cont’d)
(1)	Assets and liabilities measured at fair value on a recurring basis (Cont'd)

	As at 31 December 2023, the assets measured at fair value on a recurring basis by the above three levels were analysed below:
			Level 1			Level 2		Level 3		Total
	Financial assets
	Financial assets held for trading –
	Structured deposits		-			200,604,877		-		200,604,877
	Financing receivables -
	Notes receivable		-			-		123,170,062		123,170,062
			-			200,604,877		123,170,062		323,774,939
	As at 30 June 2024, the liabilities measured at fair value on a recurring basis by the above three levels were analysed below:
		Level 1			Level 2			Level 3		Total
	Financial liabilities
	Derivative financial assets - Forward foreign exchange contracts	-			459,306			-		459,306

	The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There was no transfer between Level 1 and Level 2 for the six months ended 30 June 2024.
	The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and market comparable corporate model. The inputs of valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spreads, liquidity premium, EBITDA multiplier and liquidity lack discount.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

11	Fair value estimates (Cont’d)
(1)	Assets and liabilities measured at fair value on a recurring basis (Cont'd)
	The changes in Level 3 assets were analysed below:
			31 December 2023			Increase		Decrease			30 June 2024		Gains recognised in profit or loss (a)		Changes in unrealised gains or losses included in profit or loss For the six months ended 30 June 2024 with respect to assets still held as at 30 June 2024 - gains/(losses) on changes in fair value
	Financing receivables -
	Notes receivable		123,170,062			1,163,432,307		(1,011,825,137)			274,777,232		-		-

		31 December 2022		Increase		Decrease			31 December 2023		Gains recognised in profit or loss (a)		Changes in unrealised gains or losses included in profit or loss in 2022 with respect to assets still held as at 31 December 2023 - gains/(losses) on changes in fair value
	Financing receivables -
	Notes receivable	376,662,817		3,737,982,954		(3,991,475,709)			123,170,062		-		-

(a)	Gains recognised in profit or loss are recognised in investment income in the income statement.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

11	Fair value estimates (Cont’d)
(2)	Assets measured at fair value on a non-recurring basis
	As at 30 June 2024 and 31 December 2023, the Group had no assets measured at fair value on a non-recurring basis.
(3)	Assets and liabilities not measured at fair value but for which the fair value is disclosed
	The Group’s financial assets and liabilities measured at amortised cost mainly comprise notes receivable, accounts receivable, other receivables, long-term receivables, short-term borrowings, payables, lease liabilities and long-term borrowings.
	The carrying amount of the Group’s financial assets and liabilities not measured at fair value is a reasonable approximation of their fair value.
	The fair value of long-term borrowings and lease liabilities is the present value of the contractually determined stream of future cash flows discounted at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, and categorised within Level 3 of the fair value hierarchy.

12	Capital management
	The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount ofdividends paid to shareholders, refund capital to shareholders, issue new shares or sellassets to reduce debts.

	The Group's total capital is calculated as “shareholders’ equity” as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of equity ratio.
	As at 30 June 2024 and 31 December 2023, the Group’s equity ratio was as follows:
		30 June 2024		31 December 2023
	Total borrowings	512,483,369		1,314,705,163
	Total shareholders’ equity	10,006,099,428		9,984,872,620
	Equity ratio	5%		13%

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements

(1)	Accounts receivable
		30 June 2024		31 December 2023
	Accounts receivable	5,945,358,107		4,674,277,592
	Less: Provision for bad debts	(80,257,595)		(79,901,432)
		5,865,100,512		4,594,376,160

(a)	The aging of accounts receivable was analysed as follows:
		30 June 2024		31 December 2023
	Within 1 year	5,758,544,769		4,490,861,735
	Over 1 year	186,813,338		183,415,857
		5,945,358,107		4,674,277,592

As of December 31, 2023, accounts receivable with significant individual amounts and aging exceeding three years was analysed as follows:

		Balance		Reason and collection risk
	SZFJ	74,049,026		The Company evaluates the receivables from its subsidiary, SZFJ, on an individual basis. Based on the judgment of credit risk, these receivables were not subject to significant credit risk and were not overdue and impaired.
	Company1	72,230,000		Due to the operating difficulties of the defaulting company and several lawsuits involved, the Company considered that the receivables were difficult to collect and had therefore made full provision for bad debts.

(b)	As at 30 June 2024, the top five accounts receivable ranked by the balances of the debtors were analysed as follows:
		Balance		Amount of provision for bad debts		% of total balance
	The total amount of accounts receivable in the top five	5,595,081,173		(78,674,815)		94%

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements

(1)	Accounts receivable (Cont’d)

(c)	Provision for bad debts
	For accounts receivable, the Company measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component.

	The provision for bad debts of accounts receivable was analysed by category as follows:
		30 June 2024
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	2,318,187,762	39%		(72,230,000)	3.12%
	Provision for bad debts on the grouping basis (ii)	3,627,170,345	61%		(8,027,595)	0.22%
		5,945,358,107	100%		(80,257,595)	1.35%

		31 December 2023
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	1,722,220,010	37%		(72,230,000)	4.19%
	Provision for bad debts on the grouping basis (ii)	2,952,057,582	63%		(7,671,432)	0.26%
		4,674,277,592	100%		(79,901,432)	1.71%

(i)	Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows:

30 June 2024

			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Provision for bad debts
	Receivables from related parties within the Group i)		2,245,957,762		-		-
	Receivables for automobiles ii)		72,230,000		100%		(72,230,000)
			2,318,187,762				(72,230,000)

				31 December 2023
				Book balance		Provision for bad debts
				Amount		Lifetime ECL (%)		Provision for bad debts
		Receivables from related parties within the Group i)		1,649,990,010		-		-
		Receivables for automobiles ii)		72,230,000		100%		(72,230,000)
				1,722,220,010				(72,230,000)
		i) As at 30 June 2024, the Company’s accounts receivable from subsidiary Jiangling Ford (Shanghai), SZFJ and GZFJ were RMB1,892,627,333, RMB346,370,129 and RMB6,960,300 (31 December 2023, the Company’s accounts receivable from subsidiary Jiangling Ford (Shanghai), SZFJ and JMCS were: RMB1,393,390,720, RMB148,630,266 and RMB107,969,024). The Company assessed the receivables from subsidiaries individually and based on the judgment of credit risk, the receivables from subsidiaries were not subject to significant credit risk and were not overdue and impaired.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(1)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)
(i)	Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows (Cont’d):
	ii) As at 30 June 2024 and 31 December 2023, the Company assessed the ECL on the related accounts receivable, and did not consider that they could be collected, therefore, full provision was made. The related amount was RMB72,230,000.
(ii)	Accounts receivable for which provision for bad debts was made on the grouping basis were analysed as follows:

	Grouping – Domestic sales of general automobiles:
			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		233,683,025		0.12%		(273,339)
	Overdue for 1 to 30 days		6,901,852		0.11%		(7,416)
	Overdue for 31 to 60 days		164,256		2.10%		(3,451)
	Overdue for 61 to 90 days		-		—		-
	Overdue over 90 days		1,624,600		5.04%		(81,802)
			242,373,733				(366,008)

Grouping – Export sales of general automobiles:

			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		3,112,760,619		0.20%		(6,225,521)

Grouping - Domestic sales of general automobiles:

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		107,010,139		0.14%		(154,326)
	Overdue for 1 to 30 days		14,613,810		0.29%		(42,323)
	Overdue for 31 to 60 days		-		—		-
	Overdue for 61 to 90 days		2,949,660		0.60%		(17,698)
	Overdue over 90 days		6,048,500		5.64%		(341,368)
			130,622,109				(555,715)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(1)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)
(ii)	Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

Grouping - Export sales of general automobiles:

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		2,647,787,903		0.20%		(5,295,576)

	Grouping - Sales of new energy automobiles:
			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Overdue over 90 days		563,760		80.00%		(451,008)
	Grouping - Sales of new energy automobiles (Cont’d):

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Overdue over 90 days		1,563,760		80.00%		(1,251,008)

Grouping – Automobile parts:

			30 June 2024
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		229,568,523		0.30%		(688,706)
	Overdue for 1 to 30 days		32,453,302		0.30%		(97,360)
	Overdue for 31 to 60 days		5,575,863		0.50%		(27,879)
	Overdue for 61 to 90 days		513,964		0.60%		(3,084)
	Overdue over 90 days		3,360,581		5.00%		(168,029)
			271,472,233				(985,058)

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(1)	Accounts receivable (Cont’d)
(c)	Provision for bad debts (Cont’d)
(ii)	Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

			31 December 2023
			Book balance		Provision for bad debts
			Amount		Lifetime ECL (%)		Amount
	Not overdue		168,672,852		0.30%		(506,019)
	Overdue for 1 to 30 days		1,575,377		0.30%		(4,726)
	Overdue for 31 to 60 days		190,620		0.50%		(953)
	Overdue for 61 to 90 days		563,937		0.60%		(3,384)
	Overdue over 90 days		1,081,024		5.00%		(54,051)
			172,083,810				(569,133)

(iii)	The provision for bad debts in the current period amounted to RMB356,163, of which none was collected or reversed.
(d)	There was no provision for bad debts actually written off during the period.

(e)	As at 30 June 2024 and 31 December 2023, there were no accounts receivable pledged.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)

(2)	Other receivables

		30 June 2024		31 December 2023
	Import working capital	30,000,000		7,000,000
	Receivables from disposal of land and above-ground buildings	13,111,456		-
	Advance payment of gas expenses	13,850,672		12,769,141
	Receivables from JMCH	9,679,410		9,679,410
	Receivables from refund of social insurance	7,242,084		23,958,000
	Others	16,359,468		18,770,714
		90,243,090		72,177,265
	Less: Provision for bad debts	(215,433)		(363,359)
		90,027,657		71,813,906

	The Company did not have any fund deposited at other parties under the centralised fund management and represented in other receivables.
(a)	The aging of other receivables was analysed as follows:
		30 June 2024		31 December 2023
	Within 1 year	78,214,248		54,408,692
	Over 1 year	12,028,842		17,768,573
		90,243,090		72,177,265

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(2)	Other receivables (Cont’d)
(b)	Provision for losses and changes in book balance statements

	The provision for bad debts of other receivables were analysed by category as follows:
		30 June 2024
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	30,032,950	33%		-	-
	Provision for bad debts on the grouping basis (ii)	60,210,140	67%		(215,433)	0.36%
		90,243,090	100%		(215,433)	0.24%

		31 December 2023
		Book balance			Provision for bad debts
		Amount	% of total balance		Amount	Provision ratio
	Provision for bad debts on the individual basis (i)	33,637,410	47%		-	-
	Provision for bad debts on the grouping basis (ii)	38,539,855	53%		(363,359)	0.94%
		72,177,265	100%		(363,359)	0.50%

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(2)	Other receivables (Cont’d)
(b)	Provision for losses and changes in book balance statements (Cont’d):

			Stage 1
			12-month ECL (grouping)			12-month ECL (individual)			Total
			Book balance	Provision for bad debts		Book balance	Provision for bad debts		Provision for bad debts
	31 December 2023		38,539,855	(363,359)		33,637,410	-		(363,359)
	Decrease in the current period		-	—		(3,604,460)	—		—
	Increase in the current period		21,670,285	—		-	—		—
	Bad debt provision reversed in the current period		-	147,926		-	-		147,926
	30 June 2024		60,210,140	(215,433)		30,032,950	-		(215,433)

	As at 30 June 2024 and 31 December 2023, the Company did not have any other receivables at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i)	As at 30 June 2024 and 31 December 2023, the Company’s other receivables with provision for bad debts on the individual basis were analysed below:
		30 June 2024
	Stage 1	Book balance		12-month ECL rates		Provision for bad debts	Reason
	Receivables from disposal of land and above-ground buildings	13,111,456				-	i)
	Receivables from JMCH	9,679,410		-		-	ii)
	Receivables from refund of social insurance	7,242,084		-		-	i)
		30,032,950				-

		31 December 2023
	Stage 1	Book balance		12-month ECL rates		Provision for bad debts	Reason
	Receivables from refund of social insurance	23,958,000		-		-	i)
	Receivables from JMCH	9,679,410		-		-	ii)
		33,637,410				-

	i)The Company assessed the receivables from refund of social insurance individually and receivables from disposal of land and above-ground buildings and based on the judgment of credit risk, the receivables were not subject to significant credit risk and were not overdue and impaired.
	ii) The Company assessed the receivables from subsidiaries individually and based on the judgment of credit risk, the receivables from subsidiaries were not subject to significant credit risk and were not overdue and impaired.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(2)	Other receivables (Cont’d)
(b)	Provision for losses and changes in book balance statements (Cont’d):
(ii)	As at 30 June 2024 and 31 December 2023, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below:
	Other receivables with provision on the grouping basis at Stage 1:

As at 30 June 2024, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below:

		Book balance		12-month ECL rates		Provision for bad debts		Reason
	Provision on the grouping basis:
	Import working capital	30,000,000		0.35%		(105,380)		ECL
	Advance payment of gas expenses	13,850,672		0.35%		(48,653)		ECL
	Others	16,359,468		0.38%		(61,400)		ECL
		60,210,140				(215,433)

As at 31 December 2023, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below:

		Book balance		12-month ECL rates		Provision for bad debts		Reason
	Provision on the grouping basis:
	Advance payment of gas expenses	12,769,141		0.78%		(99,406)		ECL
	Import working capital	7,000,000		0.78%		(54,494)		ECL
	Receivables from disposal of assets	4,604,745		0.78%		(35,847)		ECL
	Others	14,165,969		1.23%		(173,612)		ECL
		38,539,855				(363,359)

	As at 30 June 2024 and 31 December 2023, the Company had no other receivables at stage 2 or stage 3.
(c)	The provision for bad debts reversed in the current period amounted to RMB147,926.

(d)	There was no provision for bad debts actually written off during the period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(2)	Other receivables (Cont’d)
(e)	As at 30 June 2024, the top five other receivables ranked by remaining balances were analysed as follows:

		Nature		Balance		Aging		% of total balance		Provision for bad debts
	Company 1	Import working capital, etc.		31,727,323		within 1 year		35%		(111,046)
	Company 2	Advances classified as expenses		13,850,672		within 1 year		15%		(48,653)
	Company 3	Receivables from disposal of land and above-ground buildings		13,111,456		within 1 year		15%		-
	Company 4	Receivable from subsidiary		9,679,410		over 1 year		11%		-
	Company 5	Receivables from refund of social insurance		7,242,084		within 1 year		8%		-
				75,610,945				84%		(159,699)

(3)	Long-term equity investments
		30 June 2024		31 December 2023
	Subsidiaries (a)	2,858,943,493		2,858,943,493
	Associates (b)	222,285,683		228,949,338
		3,081,229,176		3,087,892,831
	Less: Provision for impairment of long-term equity investments for subsidiaries (c)	(2,301,440,553)		(2,301,440,553)
	Provision for impairment of long-term equity investments for associates	-		-
		(2,301,440,553)		(2,301,440,553)
		779,788,623		786,452,278

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(3)	Long-term equity investments (Cont’d)

(a)	Subsidiaries

					Movements for the current period
			31 December 2023		Additional investments		30 June 2024		Ending balance of provision for impairment		Cash dividends declared this year		30 June 2024
			Gross amount				Gross amount						Carrying amount
	JMCH		2,686,943,493		-		2,686,943,493		(2,301,440,553)		-		385,502,940
	JMCS		50,000,000		-		50,000,000		-		-		50,000,000
	SZFJ		10,000,000		-		10,000,000		-		-		10,000,000
	GZFJ		10,000,000		-		10,000,000		-		-		10,000,000
	Jiangling Ford (Shanghai)		102,000,000		-		102,000,000		-		-		102,000,000
			2,858,943,493		-		2,858,943,493		(2,301,440,553)		-		557,502,940

(b)	Associates

				Movements for the current period														Impairment provision
		31 December 2023		Increase in the current period		Share of net profit/(loss) under equity method		Cash dividends declared		Provision for impairment		30 June 2024		Shareholding (%)		Voting rights (%)		30 June 2024		31 December 2023
	The Power Company	197,478,595		-		(3,965,926)		-		-		193,512,669		40%		40%		-		-
	Hanon Systems	31,470,743		-		1,438,671		(4,136,400)		-		28,773,014		19.15%		33.33%		-		-
	Total	228,949,338		-		(2,527,255)		(4,136,400)		-		222,285,683						-		-

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(4)	Revenue and cost of sales
		Six months ended 30 June
		2024		2023
	Revenue from main operations	16,828,092,423		14,581,518,843
	Revenue from other operations	1,057,857,635		867,519,091
		17,885,950,058		15,449,037,934

		Six months ended 30 June
		2024		2023
	Cost of sales from main operations	14,766,862,877		12,668,859,996
	Cost of sales from other operations	409,504,678		201,223,509
		15,176,367,555		12,870,083,505

(a)	Revenue and cost of sales from main operations
		Six months ended 30 June
		2024			2023
		Revenue from main operations	Cost of sales from main operations		Revenue from main operations	Cost of sales from main operations
	Sales of automobiles	16,001,794,796	14,131,205,491		12,803,883,870	11,226,199,599
	Sales of automobile parts	787,392,775	596,752,534		1,777,634,973	1,442,660,397
	Automobile services	38,904,852	38,904,852		-	-
		16,828,092,423	14,766,862,877		14,581,518,843	12,668,859,996

(b)	Revenue and cost of sales from other operations
		Six months ended 30 June
		2024			2023
		Revenue from other operations	Cost of sales from other operations		Revenue from other operations	Cost of sales from other operations
	Sales of materials	326,770,645	312,926,556		176,010,823	159,438,315
	Others	731,086,990	96,578,122		691,508,268	41,785,194
		1,057,857,635	409,504,678		867,519,091	201,223,509

NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

13	Notes to the Company’s financial statements (Cont’d)
(4)	Revenue and cost of sales (Cont’d)
(c)	The breakdown of the Company’s revenue by product and service transfer time was as follows:
		Six months ended 30 June 2024
		Automobiles	Automobile parts	Automobile services.	Materials and others	Total
	Revenue from main operations	16,001,794,796	787,392,775	38,904,852	-	16,828,092,423
	Including: Recognised at a time point	16,001,794,796	787,392,775	-	-	16,789,187,571
	Recognised within a certain period	-	-	38,904,852	-	38,904,852.00
	Revenue from other operations (i)	-	-	-	1,057,857,635	1,057,857,635
		16,001,794,796	787,392,775	38,904,852	1,057,857,635	17,885,950,058

		Six months ended 30 June 2023
		Automobiles	Automobile parts	Automobile services	Materials and others	Total
	Revenue from main operations	12,803,883,870	1,777,634,973	-	-	14,581,518,843
	Including: Recognised at a time point	12,803,883,870	1,777,634,973	-	-	14,581,518,843
	Recognised within a certain period	-	-	-	-	-
	Revenue from other operations (i)	-	-	-	867,519,091	867,519,091
		12,803,883,870	1,777,634,973	-	867,519,091	15,449,037,934

(i)	The Company’s revenue from other operations includes sales of materials and technical service provided. Revenue from sales of materials is recognised at a certain time point, and revenue from technical service provided is recognised within a certain period.
	As at 30 June 2024, the amount of revenue corresponding to the performance obligations that the Company had contracted but had not commenced or completed was RMB477,791,775, which the Company expected that would be recognised as revenue in 2024.
(5)	Investment income
		Six months ended 30 June
		2024		2023
	Investment gain from forward exchange settlement	5,982,935		2,524,895
	Losses on discount of financing receivables eligible for derecognition	-		(11,613,214)
	Losses on long-term equity investments under equity method	(2,527,255)		(3,893,639)
		3,455,680		(12,981,958)
	There is no significant restriction on the remittance of investment income to the Company.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

1	Statement of non-recurring profit or loss for six months ended 30 June 2024
		Six months ended 30 June 2024
	Government grants recognised in profit or loss for the current period, except those that are closely related to ordinary activities and conform to the national policies and regulations, and are granted in accordance with certain standards and have a continuous impact on the Company’s profit or loss	76,378,976
	Gains or losses on disposal of non-current assets	10,591,898
	Fund occupation fees received from non-financial institutions	3,230,604
	Gains or losses arising from changes in fair value of financial assets and liabilities held, and gains or losses on disposal of related financial assets and liabilities, except for the effective hedging business related to the normal operation	13,584,473
	Net amount of other non-operating income and expenses	(4,020,858)
	One-off expenses incurred due to discontinuation of related business activities	(523,093)
		99,242,000
	Effect of income tax	(15,639,039)
	Effect of gains or losses on minority interests (net of tax)	704,668
		84,307,629
(1)	Basis for preparation of statement of non-recurring profit or loss for six months ended 30 June 2024
	For the six months ended 30 June 2024, the CSRC issued the Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised For the six months ended 30 June 2024) (hereinafter “2023 Explanatory Announcement No. 1”), which came into effect from the date of promulgation. The Group have prepared the statement of non-recurring profit or loss for 2023 in accordance with the requirements in the 2023 Explanatory Announcement No. 1. Under the requirements in the 2023 Explanatory Announcement No. 1, non-recurring profit or loss refers to those arises from transactions and events that are not directly relevant to ordinary activities, or that are relevant to ordinary activities, but are extraordinary and not expected to happen frequently that would have an influence on the financial statements users’ making economic decisions based on the financial performance and profitability of an enterprise.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024

(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

2		Statement of non-recurring profit or loss for six months ended 30 June 2023
				Six months ended 30 June 2023
			Government grants recognised in profit or loss for the current period	358,643,954
			Gains or losses on disposal of non-current assets	(755,894)
			Fund occupation fee received from non-financial institutions	6,890,293
			Gains or losses arising from changes in fair value of financial assets and liabilities held at fair value through profit or loss, and investment losses on disposal of related financial assets and liabilities	6,774,959
			Net amount of other non-operating income and expenses	6,919,342
			Reversal of provision for impairment of receivables tested individually	-
			Other items of profit or loss conforming to the definition of non-recurring profit or loss	(9,062,423)
				369,410,231
			Effect of income tax	(57,720,416)
			Effect of gains or losses on minority interests (net of tax)	(31,469)
				311,658,346
	(1)		Basis for preparation of statement of non-recurring profit or loss for six months ended 30 June 2023
			The Group prepared the statement of non-recurring profit or loss for the first half of 2023 in accordance with the provisions of the 2008 Explanatory Announcement No. 1.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 June 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]

3	Return on net assets and earnings per share
		Weighted average return on net assets (%)		Earnings per share
				Basic earnings per share		Diluted earnings per share
		Six months ended 30 June
		2024	2023	2024	2023	2024	2023
	Net profit attributable to ordinary shareholders of the Company	8.29%	7.59%	1.04	0.84	1.04	0.84
	Net profit attributable to ordinary shareholders of the Company, net of non-recurring profit or loss	7.51%	4.35%	0.94	0.48	0.94	0.48